Central Parking Corporation Reports Results for Second Fiscal Quarter; Eads Named President and Chief Operating Officer

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 7, 2003--Central Parking Corporation (NYSE: CPC) announced today a net loss of $9.2 million, or $0.25 per diluted share, for the quarter ended March 31, 2003. This compares to reported net earnings for the quarter ended March 31, 2002, of $12.9 million or $0.36 per diluted share. Revenues (excluding reimbursed management costs) for the second quarter of fiscal 2003 were $175.8 million compared to $177.3 million in the year-earlier period.
CPS.jpgAs previously announced, second quarter earnings were impacted significantly by unusually severe winter weather, which reduced operating income by approximately $7 million through a combination of lower revenues and higher snow removal costs, increased legal and professional expenses of approximately $2.9 million and $1.6 million in costs associated with the refinancing of its $350 million credit facility. Second quarter results also were affected by impairment charges of approximately $5.4 million.

For the six-month period ended March 31, 2003, the company reported a net loss of $2.3 million or $0.06 per diluted share. This compares to net earnings of $19.2 million or $0.53 per fully diluted share in the comparable prior year period. Revenues (excluding reimbursed management costs) for the first six months of fiscal 2003 were $357.0 million compared to $352.3 million for the first six months of fiscal 2002.

Cash flow from operating activities totaled $5.3 million for the second quarter and $12.2 million for the first half of fiscal 2003. This compares to cash flow from operating activities of $14.4 million and $44.3 million in the respective prior year periods.

"Second quarter results were affected by several factors, including the continued weak economy and the worst winter weather in more than a decade," said Mr. Carell. "Winter storms impacted our operations from Texas to Boston, with our operations in the Northeast particularly hard hit. The quarter also was affected by impairment charges resulting primarily from the company's review of underperforming locations and the exiting of certain locations. This combination of factors resulted in the company's noncompliance with the leverage ratios in its $350 million credit facility as of the end of the second quarter. As a result, the credit facility principal balance of $238.5 million is reflected as current debt on the company's March 31, 2003 balance sheet. We are working closely with our agent bank, Bank of America, and our other lenders to secure a waiver for the quarter prior to May 15, 2003. Despite the disappointing results for the quarter and the first half of the year, cash flow remained strong and our new-to-lost business ratio for the quarter and first six months was 1.0 and 1.7, respectively."

The Company also announced the appointment of Emanuel J. Eads as president and chief operating officer. Mr. Eads, age 51, has served the company in a variety of positions of increasing responsibility since joining the company in 1974. From 1985 to 1998, Mr. Eads served as senior vice president, during which time he launched the company's international expansion and stadium/arena segment. In 1998, he was named executive vice president with responsibility for several regions of the United States. In October 2001, he became President of Business Development with responsibility for marketing, branding, national accounts, technology and the company's rapidly expanding airports, national parks and on-street segment. Under his leadership, the company added eight major airport parking contracts and nine on-street contracts in less than two years. Mr. Eads' appointment follows the announcement earlier this week that Monroe J. Carell, Jr., the founder and chairman of the company, has been named chief executive officer, replacing William J. Vareschi, Jr.

"I am especially pleased to have Emanuel Eads assume the role of president and chief operating officer. On a combined basis, Mr. Eads and I have some 65 years of experience in the parking industry, and we will be leading the most experienced and professional management team in the business." Mr. Carell added, "Looking ahead, we will accelerate the cost reduction program already underway. We have already identified reductions in general and administrative costs totaling 7%, and we are taking steps to reduce the cost of parking by renegotiating leases, exiting underperforming locations and eliminating positions. We will reduce capital spending and use our free cash flow to pay down debt. We will refocus the business on the basics required to provide total value to our customers. We will also emphasize the importance of relationships with our landlords, management account clients and key vendors. Our immediate goal is to return this business to profitability and, over the longer term, our goal is to provide our shareholders with consistent, above-average earnings growth."

Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading provider of parking and transportation services. The Company operates approximately 3,900 parking facilities containing approximately 1.6 million spaces at locations in 39 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Chile, Germany, Switzerland, Mexico, Poland, Spain, Venezuela and Greece.

This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934. These projections and statements reflect the Company's current views with the respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.
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