Central Parking Corporation Announces Fourth Quarter Developments
Central Parking Corporation Extends Its Dutch Auction Tender Offer to 5:00 P.M. September 30, 2005. Central Parking Corporation announced an extension of its "Dutch Auction" tender offer for up to 4,400,000 shares of its common stock.
The tender offer, which was previously scheduled to expire on September 14, 2005, has been extended until 5:00 p.m. New York City time on September 30, 2005. The Company has extended the tender offer to provide shareholders with additional time to consider certain developments in the Company's fourth fiscal quarter ending September 30, 2005.
The Company continues to make progress in executing its previously announced strategic plan designed to streamline operations and focus on core competencies and key markets with the greatest potential for growing profits. In connection with this process, the Company has reached tentative agreement to sell its fifty percent interest in its joint venture in Mexico, which is expected to result in a non-cash loss on the sale of approximately $1.7 million in the fourth fiscal quarter. The Company would receive a cash payment at closing of $325,000 and a secured promissory note of approximately $3.7 million in repayment of the joint venture's indebtedness to the Company. This transaction is subject to the negotiation and execution of a definitive agreement, and there can be no assurance that the transaction will be completed or that it will be completed on the terms described above.
The Company has become aware of issues concerning certain related party transactions and accounts receivables in its United Kingdom operations. The Company is investigating this situation and believes that there may be a negative financial impact relating to these matters. The Company currently cannot provide an estimate of the financial impact of these matters. The United Kingdom operations generated approximately 2.7% of the Company's revenues through the first three quarters of the current fiscal year.
The Company conducts operations in the geographic region impacted by Hurricane Katrina, including New Orleans, Louisiana, which operations have been adversely affected. The Company is in the process of evaluating the impact of Hurricane Katrina, and currently anticipates that its earnings will be reduced by approximately $200,000 in the fourth quarter as a result of the storm.
The Company anticipates that it will provide additional information on the foregoing matters prior to the expiration date of the tender offer.
The Company's "Dutch Auction" tender offer is extended to 5:00 p.m. New York City time on September 30, 2005, unless the Company elects to further extend the tender offer. This extension was made in order to ensure that the information contained herein and in an amendment to the Company's Schedule TO being filed today is available to shareholders for a sufficient period of time prior to the expiration of the self-tender. All terms and conditions of the Offer to Purchase and related material distributed to shareholders, as amended today and on August 29, 2005, continue to apply to the tender offer, as extended.
The Company continues to make progress in executing its previously announced strategic plan designed to streamline operations and focus on core competencies and key markets with the greatest potential for growing profits. In connection with this process, the Company has reached tentative agreement to sell its fifty percent interest in its joint venture in Mexico, which is expected to result in a non-cash loss on the sale of approximately $1.7 million in the fourth fiscal quarter. The Company would receive a cash payment at closing of $325,000 and a secured promissory note of approximately $3.7 million in repayment of the joint venture's indebtedness to the Company. This transaction is subject to the negotiation and execution of a definitive agreement, and there can be no assurance that the transaction will be completed or that it will be completed on the terms described above.
The Company has become aware of issues concerning certain related party transactions and accounts receivables in its United Kingdom operations. The Company is investigating this situation and believes that there may be a negative financial impact relating to these matters. The Company currently cannot provide an estimate of the financial impact of these matters. The United Kingdom operations generated approximately 2.7% of the Company's revenues through the first three quarters of the current fiscal year.
The Company conducts operations in the geographic region impacted by Hurricane Katrina, including New Orleans, Louisiana, which operations have been adversely affected. The Company is in the process of evaluating the impact of Hurricane Katrina, and currently anticipates that its earnings will be reduced by approximately $200,000 in the fourth quarter as a result of the storm.
The Company anticipates that it will provide additional information on the foregoing matters prior to the expiration date of the tender offer.
The Company's "Dutch Auction" tender offer is extended to 5:00 p.m. New York City time on September 30, 2005, unless the Company elects to further extend the tender offer. This extension was made in order to ensure that the information contained herein and in an amendment to the Company's Schedule TO being filed today is available to shareholders for a sufficient period of time prior to the expiration of the self-tender. All terms and conditions of the Offer to Purchase and related material distributed to shareholders, as amended today and on August 29, 2005, continue to apply to the tender offer, as extended.
This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any shares of the Company's stock. The Company's offer is only being made pursuant to the Offer to Purchase and related material distributed to shareholders, as amended today and on August 29, 2005. Shareholders may obtain a copy of the Offer to Purchase and related materials for free at the Securities and Exchange Commission's web site, www.sec.gov, or from D.F. King & Co., Inc., the Company's information agent for the offer, by calling (800) 431-9642. Shareholders are urged to carefully read these materials prior to making any decision with respect to the offer. Shareholders may still use the original Letter of Transmittal that was mailed to shareholders on August 12, 2005 to tender their shares. Shareholders who have already tendered their shares do not need to take any further action if they wish to remain tendered. Shareholders who do not wish to tender shares but rather remain investors in the Company do not need to return any paperwork. Shareholders who have previously tendered shares and wish to withdraw shares previously tendered should follow the procedures described in the Offer to Purchase.
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