Central Parking Corporation Reports Results for the Third Fiscal Quarter

NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 12, 2003--Central Parking Corporation (NYSE: CPC) today announced a net loss of $5.1 million, or $0.14 per diluted share, for the third quarter ended June 30, 2003. This compares with net earnings for the third quarter ended June 30, 2002 of $10.0 million, or $0.27 per diluted share. Revenues (excluding reimbursed management costs) increased 1.3 percent for the third quarter of 2003 to $182.8 million compared with $181.0 million in the year-earlier period.
cpc.jpgAs previously announced, third quarter earnings were reduced by severance costs and property-related impairment costs. Severance costs for the quarter totaled $6.2 million and property-related impairment costs were $4.3 million. Earnings were also affected by higher general and administrative costs due to increases in insurance, legal and other expenses.

For the nine-month period ended June 30, 2003, the company reported a net loss of $7.4 million, or $0.21 per diluted share compared with net earnings of $29.3 million, or $0.81 per diluted share in the year-earlier period. Revenues (excluding reimbursed management costs) for the first nine months of fiscal 2003 were $539.5 million compared with $532.1 million in the year-earlier period.

"The results for the quarter reflect continued weakness in the economy in a price sensitive competitive environment," said Monroe J. Carell, Jr., Chairman and Chief Executive Officer. "Partially offsetting the higher costs is the impact of our cost reduction initiatives. We continue to renegotiate leases, exit under-performing properties and eliminate positions not essential to our daily operations.

"The current results also overshadow a number of positive developments in our operations. Earlier we announced the successful completion of the amendment to our $350 million senior secured credit facility under terms that we believe are very satisfactory to the company. We believe the renegotiation of this agreement and its terms demonstrate the confidence our lenders have in the future of our business. Also earlier this week we announced that Mark Shapiro will be joining the company as Senior Vice President and Chief Financial Officer on August 18. Filling this position with a person with Mark's broad-based experience and capabilities was one of my top priorities when I resumed the leadership of this corporation in May. We are confident Mark will make a major contribution to our success.

"We have also continued to win new business including the previously announced multi-year contract to manage the parking and shuttle services at Toronto Pearson International Airport, which began May 1, 2003 and a similar contract to manage the parking at the new Toyota Tundra Arena servicing the Houston Rockets, effective September 1, 2003. Following the end of the third quarter we announced a renewable three-year contract to manage revenue collection for the Orange County, California public toll road system. In total our new-to-lost business ratio for the third quarter and the nine months was 2.67 and 1.96 respectively.

"Looking ahead we will continue to focus on cost reduction, debt repayment, reduction of receivables and strategies to improve the results of all of our properties. We have reduced capital expenditures to invest in only those projects that will improve efficiency and reduce costs."

Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading global provider of parking and transportation management services. The Company operates approximately 3,800 parking facilities containing more than 1.6 million spaces at locations in 39 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Mexico, Chile, Peru, Colombia, Venezuela, Germany, Switzerland, Poland, Spain and Greece.

This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with 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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