Standard Parking Corporation, one of the nation's largest providers of parking management services, announced third quarter 2006 revenue (excluding reimbursed management contract expense) and gross profit grew approximately 4% and 10%, respectively, as compared with the third quarter of 2005. Pre-tax income increased by 55%. Third quarter earnings per share were $0.44, an increase of 10% over the 2005 third quarter.
Third Quarter Highlights- Revenue (excluding reimbursed management contract expense) and gross profit growth of 4% and 10%, respectively
- Operating income up more than 30%
- 55% increase in pre-tax income
- Free cash flow of $9.5 million or $0.93 per share
- Redemption of remaining 9.25% senior subordinated notes 2006 Year Guidance Reaffirmed
- EPS expectation of $1.60 - $1.70
- Pre-tax income per share expectation of $1.84 - $1.94
- Free cash flow expectation of $20 million or higher
James A. Wilhelm, President and Chief Executive Officer, said, "We are very pleased with this quarter's results as the business continues to execute on all levels. We added 23 net new locations during the quarter and now exceed 2,000 total locations. At the same time, we maintained our 92% retention rate for existing business for the twelve months ended September 30, 2006."
Recent DevelopmentsSignificant contract activity during the third quarter includes the following:
- Calgary Health Region awarded the Company a contract to manage the parking operations at its four hospitals and 36 satellite clinics in Calgary, Alberta, Canada. The parking operations comprise 11,000 parking spaces that serve a 25,000 person staff and their patients. The Company began its relationship with Calgary Health Region in 2005 with the management of a single garage at the Foothills Hospital. With this most recent contract award, the Company now manages all of the Calgary Health Region's parking operations.
- Standard Parking was awarded a contract to manage over 1,100 spaces in four separate facilities at Arizona State University's new downtown Phoenix campus.
- The Long Island Railroad division of the New York Metropolitan Transit Authority awarded Standard Parking a contract to manage the parking at the Mineola, New York commuter rail station. The new self park facility contains over 1,000 spaces and serves one of the railroad's busiest commuter centers.
- Vornado Trust Realty, one of the nation's largest real estate owners and managers, selected Standard Parking to manage its 1,300-space self-park facility at Rego Park Mall, located in Queens, New York.
- The signing by one of the Company's competitors of a lease to become a major tenant of the City National Plaza located in downtown Los Angeles. As part of the lease negotiation, the landlord agreed to transfer management of that property's parking facility to the Company's competitor, as a result of which the Company's operation of the facility ended as of October 31, 2006.
Mr. Wilhelm commented, "New business activity remains strong, and continues to outpace lost business. We are particularly pleased to expand our relationship with the Calgary Health Region, which is experiencing significant growth and has chosen to leverage our expertise as a dedicated parking management company to manage the growth and financial potential of its parking operations. In addition, we continue to make significant inroads in establishing new core geographic markets in New York and southern Florida. Both of those areas hold significant potential, and we are pleased that our operations in those areas have progressed so expeditiously."