Business Unit Segment Information

3 Months Ended

Mar. 31, 2012

Business Unit Segment Information

Business Unit Segment Information

10. Business Unit Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by our chief operating decision maker, in deciding how to allocate resources. Our chief operating decision maker is the Company’s President and Chief Executive Officer.

Each of the operating segments is directly responsible for revenue and expenses related to their operations including direct regional administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the four operating segments. The CODM assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest, taxes, and depreciation and amortization, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate interest and other income, interest expense, depreciation and amortization or taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

Our business is managed based on regions administered by executive vice presidents. The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by regions for the three months ended March 31, 2012 and 2011. Information related to prior periods has been recast to conform to the current region alignment.

The Company has provided this business unit segment information for all comparable prior periods. Segment information is summarized as follows (in thousands):

	For the three months ended
	March 31, 2012			GrossMargin		March 31,2011			GrossMargin
Revenues:
Region One
Lease contracts	$	19,618				$	18,943
Management contracts	13,128					13,256
Total Region One	32,746					32,199
Region Two
Lease contracts	1,162					658
Management contracts	10,401					8,758
Total Region Two	11,563					9,416
Region Three
Lease contracts	5,927					5,689
Management contracts	12,298					12,134
Total Region Three	18,225					17,823
Region Four
Lease contracts	10,837					9,916
Management contracts	12,011					11,692
Total Region Four	22,848					21,608
Other
Lease contracts	––					(1		)
Management contracts	126					114
Total Other	126					113
Reimbursed revenue	103,937					101,124
Total revenues	$	189,445				$	182,283
Gross Profit
Region One
Lease contracts	$	668		3	%	$	554		3	%
Management contracts	6,876			52	%	6,670			50	%
Total Region One	7,544					7,224
Region Two
Lease contracts	26			2	%	103			16	%
Management contracts	2,584			25	%	1,769			20	%
Total Region Two	2,610					1,872
Region Three
Lease contracts	607			10	%	562			10	%
Management contracts	5,382			44	%	5,785			48	%
Total Region Three	5,989					6,347
Region Four
Lease contracts	904			8	%	574			6	%
Management contracts	4,082			34	%	4,161			36	%
Total Region Four	4,986					4,735
Other
Lease contracts	(48		)	(100	)%	(87		)	(8,700	)%
Management contracts	548			435	%	77			68	%
Total Other	500					(10		)
Total gross profit	21,629					20,168
General and administrative expenses	15,045					11,182
General and administrative expense percentage of gross profit	70		%			55		%
Depreciation and amortization	1,728					1,533
Operating income	4,856					7,453
Other expenses (income):
Interest expense	1,130					1,169
Interest income	(70		)			(60		)
	1,060					1,109
Income before income taxes	3,796					6,344
Income tax expense	1,528					2,479
Net income	2,268					3,865
Less: Net income attributable to noncontrolling interest	72					86
Net income attributable to Standard Parking Corporation	$	2,196				$	3,779

Region One encompasses operations in Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Region Two encompasses our Canadian operations, event planning and transportation, and our technology-based parking and traffic management systems.

Region Three encompasses operations in Arizona, California, Colorado, Hawaii, Louisiana, Nevada, Texas, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Other consists of ancillary revenue that is not specifically identifiable to a region and insurance reserve adjustments related to prior years.

The CODM does not evaluate segments using discrete asset information.