Central Parking Corporation Reports Fiscal 2007 First Quarter Results
Central Parking Corporation (NYSE:CPC) announced that operating earnings before property-related gains for its first fiscal quarter ended December 31, 2006, increased to $15.4 million compared with $7.7 million earned in the first quarter of the previous fiscal year.
Earnings from continuing operations, which include property-related gains for the first quarter of fiscal 2007, totaled $8.4 million compared with $16.4 million in the year-earlier period. Pre-tax property-related gains totaled $0.4 million in the first quarter of fiscal 2007 compared with $22.9 million in the first quarter of last year.
Net earnings, which include property-related gains and discontinued operations for the first quarter of fiscal 2007, were $9.3 million, or $0.28 per diluted share, compared with $18 million, or $0.54 per diluted share, in the year earlier period. Total revenues for the first fiscal quarter were $281.7 million compared with $272.5 million in the first quarter of fiscal 2006. Excluding reimbursed management expenses, revenues in the first quarter of fiscal 2007 were $160.8 million compared with $160.0 million in the prior year period.
"The on-going execution of our strategic plan continues to drive improvements in operating results," said Emanuel J. Eads, President and Chief Executive Officer. "The first quarter of fiscal 2007 marks the fourth consecutive quarter we have recorded substantial, year-over-year gains in operating earnings. Same store sales increases of 5.8 percent and reduced costs improved margins in our leased and owned segment to 11.4 percent, compared with 8.7 percent in the first quarter of last year. Management contract margins improved to 62.0 percent compared with 61.3 percent in the first quarter of 2006 while general and administrative costs decreased by $3.3 million, or 15.7 percent.
"We continue to make good progress in executing other aspects of our strategic plan as well. Our Operational Excellence initiative, which is focused on increasing profits at the location level, gained momentum during the quarter as we expanded the program to Los Angeles and Washington, D.C., and initiated a "jumpstart" program to introduce Operational Excellence concepts company-wide. Our efforts to capitalize on the burgeoning downtown residential market were rewarded with three new contracts: a long-term lease to operate a 360 space garage serving the Millennium Center in Chicago and management agreements to operate a 400 space garage at 1500 Locust in Philadelphia and a 388 space garage in Wilmington, Delaware.
"We also have had success across other market segments, as evidenced by the award of a multiple facility contract by Oregon Health & Science University in Portland, Oregon. This contract, which became effective October 1, includes a garage, two surface lots, two valet operations and a shuttle operation. We also continue to add profitable, new business in our international markets. The most significant recent example is the addition of a lease to operate a 900 space facility in Calgary, Alberta. Our focus on the high-end hospitality market continues to yield positive results as we signed leases to operate the Marriott San Diego and the Hyatt La Jolla. We also signed a contract to manage Phoenix Plaza, one of the largest office developments in Phoenix, Arizona," Eads concluded.
The Company has made the determination that due to the strategic review process it announced on November 28, 2006, it will not hold a conference call to discuss first quarter results.
Net earnings, which include property-related gains and discontinued operations for the first quarter of fiscal 2007, were $9.3 million, or $0.28 per diluted share, compared with $18 million, or $0.54 per diluted share, in the year earlier period. Total revenues for the first fiscal quarter were $281.7 million compared with $272.5 million in the first quarter of fiscal 2006. Excluding reimbursed management expenses, revenues in the first quarter of fiscal 2007 were $160.8 million compared with $160.0 million in the prior year period.
"The on-going execution of our strategic plan continues to drive improvements in operating results," said Emanuel J. Eads, President and Chief Executive Officer. "The first quarter of fiscal 2007 marks the fourth consecutive quarter we have recorded substantial, year-over-year gains in operating earnings. Same store sales increases of 5.8 percent and reduced costs improved margins in our leased and owned segment to 11.4 percent, compared with 8.7 percent in the first quarter of last year. Management contract margins improved to 62.0 percent compared with 61.3 percent in the first quarter of 2006 while general and administrative costs decreased by $3.3 million, or 15.7 percent.
"We continue to make good progress in executing other aspects of our strategic plan as well. Our Operational Excellence initiative, which is focused on increasing profits at the location level, gained momentum during the quarter as we expanded the program to Los Angeles and Washington, D.C., and initiated a "jumpstart" program to introduce Operational Excellence concepts company-wide. Our efforts to capitalize on the burgeoning downtown residential market were rewarded with three new contracts: a long-term lease to operate a 360 space garage serving the Millennium Center in Chicago and management agreements to operate a 400 space garage at 1500 Locust in Philadelphia and a 388 space garage in Wilmington, Delaware.
"We also have had success across other market segments, as evidenced by the award of a multiple facility contract by Oregon Health & Science University in Portland, Oregon. This contract, which became effective October 1, includes a garage, two surface lots, two valet operations and a shuttle operation. We also continue to add profitable, new business in our international markets. The most significant recent example is the addition of a lease to operate a 900 space facility in Calgary, Alberta. Our focus on the high-end hospitality market continues to yield positive results as we signed leases to operate the Marriott San Diego and the Hyatt La Jolla. We also signed a contract to manage Phoenix Plaza, one of the largest office developments in Phoenix, Arizona," Eads concluded.
The Company has made the determination that due to the strategic review process it announced on November 28, 2006, it will not hold a conference call to discuss first quarter results.
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