Central Parking Corporation Reports Fiscal 2006 Third Quarter Results

Central Parking Corporation (NYSE:CPC) today announced earnings from continuing operations for its third fiscal quarter ended June 30, 2006, of $8.6 million, or $0.27 per diluted share, compared with $0.2 million, or $0.01 per diluted share earned in the third quarter of the previous year. Included in these results are pre-tax property related gains of $4.5 million in the third quarter of 2006 compared with a pre-tax property-related loss of $1.1 million in the prior year period. Operating earnings excluding property-related gains increased to $11.7 million in the third quarter of fiscal 2006 compared with $5.6 million in the same period last year.
Net earnings (loss), which includes property related gains and losses and discontinued operations, for the third quarter of fiscal 2006 were ($1.1 million), or ($0.03) per diluted share, compared with ($5.3 million), or ($0.14) per diluted share, in the prior year period. Net earnings (loss) for the third quarter of fiscal 2006 were impacted by pre-tax charges to discontinued operations of $12 million resulting from the Company's previously announced plans to exit certain unprofitable transportation contracts in the United Kingdom. Total revenues increased 1.3% to $281 million, while revenues excluding reimbursed management expenses were flat. Proceeds from property sales and cash flow from operations were used to reduce debt during the quarter by $10.4 million.

Earnings from continuing operations for the nine months ended June 30, 2006, were $25.1 million, or $0.77 per diluted share, compared with $11.6 million, or $0.32 per diluted share in the year earlier period. Pre-tax property related gains totaled $26.3 million for the first nine months of fiscal 2006, compared with $15.5 million for the first nine months of fiscal 2005. Net earnings for the first nine months of fiscal 2006 were $18.8 million, or $0.58 per diluted share, compared with $5.1 million, or $0.14 per diluted share. Total revenues increased 0.4% to $827 million, while revenues excluding reimbursed management expenses declined 2.1% to $482 million.

"Operating earnings excluding property-related gains more than doubled for the third quarter of fiscal 2006 compared to the same period last year," said Emanuel J. Eads, President and Chief Executive Officer. "This substantial increase was driven in part by the continued successful execution of our strategic plan through the implementation of cost reduction initiatives, especially in our medical, liability and worker's compensation programs. During the quarter, costs related to the managed portion of our business decreased $1.7 million or 12% compared to the same period last year and costs in our leased and owned business also decreased $1.7 million or 1.4%. Importantly, our cost reduction initiatives also reduced general and administrative expenses by approximately $2.8 million, or 12.7%.

"We continue to make good progress in executing other aspects of our strategic plan. Our increased focus on national accounts and other high growth markets received a significant boost during the third quarter as we were awarded the Southern California parking portfolio of Trizec Properties, one of the nation's largest owners and managers of premier commercial properties. This prestigious portfolio of commercial properties, which includes eight garages with more than 6,000 spaces, increases the total number of facilities we operate for Trizec to 38 garages with approximately 30,000 spaces. Our relationship with Trizec has expanded steadily as we have continually demonstrated our ability to deliver outstanding customer service while at the same time increasing revenues and profits at their parking facilities.

"Our expansion into the municipal market continued as we were awarded the contract to operate the parking facility for the Port of New Orleans cruise terminal complex, which serves more than 700,000 passengers a year. The Port of San Francisco selected us to operate two additional parking facilities, bringing to four the number of facilities we operate for the authority. We also signed contracts to operate the Mecklenburg Government Center in Charlotte, North Carolina and the Jefferson Civic Center in Birmingham, Alabama. Our efforts to target the hospital and university market continued to make progress as we were awarded contracts to operate parking facilities at St. Joseph's and Piedmont hospitals in Atlanta and contract renewals at St. Barnabas Hospital in New York and Rutgers University. In addition, we continued to capitalize on residential development in New York, adding the 200 Chambers condominium to our growing portfolio of residential properties. In the hospitality segment, we added the prestigious Hotel Triton in San Francisco.

"Our program of exiting marginal and low growth markets continued on track as we divested our operations in Roanoke, Virginia, and our partnership interest in Germany, bringing the total number of domestic markets divested to ten and the number of international markets divested to three. During the quarter, we also completed our previously announced plans to exit the London transit business and more recently we divested several additional transportation contracts in the U.K., which will enable us to focus on our core business in this market."

Eads added, "Earnings from continuing operations for the first three quarters of the year substantially exceeded our earlier guidance, with operating results remaining firmly on plan and property-related gains well in excess of our expectations. As we enter the fourth quarter of fiscal 2006, we remain focused on executing our strategic plan, which is beginning to show very positive results."
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