Standard Parking Continues to Execute Acquisition Strategy, Announces Two Acquisitions; Four Completed in Third Quarter

Standard Parking Corporation announced that it has completed the acquisition of certain assets of Downtown Parking, LLC, aand announced its completion of the acquisition of certain assets of Alliance International Security, Inc.
These two acquisitions bring to four the total number of acquisitions the Company has completed in the 2007 third quarter. Earlier in the quarter, the Company completed the purchase of 13 contracts in Honolulu and the purchase of five contracts in Los Angeles. The up-front consideration for all four third-quarter acquisitions totals $6.5 million, with an estimated $1.4 million to be paid over time based upon projected future financial performance. The four acquisitions are expected to generate approximately $1.5 million in gross profit in 2007, including a $0.6 million one-time gain related to the sale of a contract right in conjunction with one of the acquisitions. The Company expects these four acquisitions to generate approximately $3.6 million in gross profit and $2.3 million in EBITDA on an annualized basis. While transaction and integration costs may result in a minimal dilutive impact to earnings per share in 2007, the transactions are expected to be accretive for calendar 2008.

James A. Wilhelm, Standard Parking's President and Chief Executive Officer, said, "We have previously indicated that we are looking at a number of acquisition opportunities, which we continue to do. Our announcement is an indication that we are successfully executing our planned acquisition strategy. Downtown Parking has an impressive contract portfolio that services many of the premier hotels in the downtown Chicago area, which complements our existing operations portfolio. We continue to believe in the excellent growth potential of our parking business, and intend to focus our acquisition efforts primarily on parking companies.

"Based on feedback from our clients over the past several years, we have also identified additional services, including security, that we might offer them. Our goal is to cautiously evaluate the growth potential of any new services that are compatible with our organizational capabilities and our clients' needs. The Alliance security acquisition enables us to add critical mass and additional expertise to our own small security services business that we have been developing gradually in the Los Angeles area over the past three years."

In commenting on the combined effect of the four acquisitions, Wilhelm stated, "After all is said and done, we expect to achieve a realized total purchase price multiple for these acquisitions that is slightly better than our target range of 4 to 6 times EBITDA. These acquisitions will add significant dollars to gross profit, EBITDA and free cash flow, although the net income impact will be tempered by the amortization of the purchases. We believe there are additional acquisition opportunities available in this valuation range, and we will continue to apply our disciplined valuation and evaluation criteria and approach to selectively pursue the most desirable opportunities."

About Standard Parking Corporation

Standard Parking is a leading national provider in the United States of parking facility management services. The Company provides on-site management services at multi-level and surface parking facilities for all major markets of the parking industry. The Company manages approximately 2,000 facilities, containing over one million parking spaces in more than 320 cities across the United States and Canada, including parking-related and shuttle bus operations serving approximately 60 airports.
  • Join our community for FREE today!

  • Create and share your own profile

  • Join the discussions

  • Publish your own items

  • Subscription to our Weekly eNewsletter

your benefits?

Get connected with parking professionals worldwide

Create your account

Sign in with LinkedIn Close

FREE membership benefits

  • * create and share your own profile
  • * join the discussions
  • * publish your own items on parking-net.commanage news, jobs, tenders, companies, events, showcases, educations, associations and literature.
  • * subscribe to our weekly eNewsletter
Add news yourself

Comments

There are no comments yet for this item

Join the discussion

You can only add a comment when you are logged in. Click here to login