Standard Parking Corporation, one of the nation's leading providers of parking management, ground transportation and other ancillary services, today announced third quarter 2011 results. The quarter's earnings per share was $0.37, an increase of 23% from the 2010 third quarter. Year-to-date earnings per share was $0.89, an increase of 16% from the first nine months of 2010.
CommentsJames A. Wilhelm, President and Chief Executive Officer, said, "I'm pleased to report a strong third quarter with results that were ahead of expectations. Revenues were up 2% overall and paid exits at same leased locations were also up 2%, metrics that continue to head in the right direction. The quarter's 5% increase in same location gross profit, coupled with a favorable adjustment in insurance loss reserve estimates, resulted in an overall 8% increase in third quarter gross profit. Our location retention improved slightly to 92% and operating profit retention remained steady at 96%. On the expense side, our G&A expense for the quarter increased slightly, by 2% over the third quarter of 2010. But for somewhat higher professional fees, the quarter's G&A would have been in line with the run rate for the first half of the year.
"Based on our nine-month results and expectations for the fourth quarter, we're raising the lower end of our full year guidance range, and now expect full year earnings per share to be in the range of $1.15 to $1.20. While this guidance range already reflects $0.03 per share of acquisition-related costs incurred to date, it excludes the impact of any prospective acquisitions on the fourth quarter."
Wilhelm concluded by stating, "Finally, in terms of free cash flow, we generated $8.8 million for the first nine months of the year. While increases in accounts receivable balances at several large airports have impacted free cash flow, these balances have been reduced significantly since the end of the third quarter and are expected to revert to normal levels by the end of the year. Accordingly, we continue to expect the year's free cash flow to exceed $20 million."
Recent DevelopmentsThird quarter new business highlights include:
- Standard Parking of Canada Ltd. has been awarded a contract to be CBRE Ltd.'s parking asset manager in Northern and Southwestern Ontario. With this award, which entails the management of approximately 3,000 parking spaces in more than a dozen government facilities, Standard Parking of Canada's operations will expand into eight new cities across Ontario.
- SP Plus Municipal Services was recently awarded the contract to provide parking facility management services at the City of Milwaukee's public parking garages in the downtown central business district. These garages are fully automated, cashierless facilities that contain almost 4,000 parking spaces.
- The City of Fort Worth, Texas selected the Company's SP Plus Maintenance service line to provide and install a state-of-the-art Parking Access and Revenue Control System. The $1.5 million project will modernize the parking experience at the historic Will Rogers Memorial Center complex, a multi-purpose entertainment complex spread over 85 acres in the heart of the Fort Worth Cultural District that hosts 2.5 million visitors at a variety of events each year.
- The City of New Orleans, Louisiana extended its contract with Standard Municipal Parking Joint Venture II to manage over 4,000 of the City's on-street parking spaces. The operation includes procurement, maintenance and repair of over 400 automated pay stations, along with collections, repairs and maintenance of more than 900 single post meters. As part of the Company's duties, its SP Plus Municipal Services division staffs and operates a call center that provides customer service assistance to the City's on-street parking consumers.
- The University of Washington selected SP Plus Transportation to operate the University's NightRide and South Lake Union shuttle bus programs. The NightRide program provides after-hours service to transport students, staff and faculty to their residences. The South Lake Union program transports employees traveling from South Lake Union facilities to the University of Washington Medical Center and to the Harborview Medical Center.
- SP Plus Transportation was selected to provide shuttle services to transport guests on a 24 hour / 365 day basis to and from the Wyndam Hotel and the Philadelphia International Airport.
- SP Plus Maintenance enters the Hawaii market by providing porter services for the garage at Pacific Guardian Center for PM Realty.
For the year-to-date through the end of October, the Company has repurchased $7.0 million of its common stock.
Nine-Month ResultsGross profit for the first nine months of 2011 increased by 3% to $66.4 million from $64.3 million for the same period of 2010, as same location gross profit growth of 6% was offset in part by certain anticipated location terminations.
G&A expense in the first nine months of 2011 decreased 2% to $34.6 million from $35.3 million a year earlier. Excluding acquisition-related costs, yearto-date G&A would have decreased by 4% from the year-ago period.
Net income attributable to the Company for the first nine months of 2011 increased by 17% to $14.3 million as compared with $12.2 million in the same period of 2010. On a per share basis, the year-over-year increase was 16%, up from $0.77 in 2010 to $0.89 in 2011.
Updated 2011 OutlookBased on year-to-date results, the Company is narrowing its full-year earnings per share guidance to a range of $1.15 to $1.20 from $1.10 to $1.20. The Company continues to expect full year free cash flow in excess of $20 million. This guidance excludes the prospective impact of any future acquisitions on the fourth quarter.
The Company expects full-year 2011 earnings per share to be in the range of $1.15 to $1.20. The Company generated $8.8 million of free cash flow in the first nine months of 2011, as compared to $12.8 million generated in the first nine months of 2010. The Company continues to expect full year free cash flow in excess of $20 million.