Business Unit Segment Information

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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										For the six months ended
	June 30,2012			GrossMargin		June 30,2011			GrossMargin		June 30,2012			GrossMargin		June 30,2011			GrossMargin
Revenues:
Region One
Lease contracts	$	20,957				$	20,649				$	40,576				$	39,591
Management contracts	13,843					13,340					26,916					26,595
Total Region One	34,800					33,989					67,492					66,186
Region Two
Lease contracts	1,142					682					2,304					1,340
Management contracts	3,744					3,911					14,147					12,658
Total Region Two	4,886					4,593					16,451					13,998
Region Three
Lease contracts	9,613					5,809					15,539					11,498
Management contracts	14,452					12,847					26,804					24,953
Total Region Three	24,065					18,656					42,343					36,451
Region Four
Lease contracts	10,702					10,048					21,539					19,963
Management contracts	12,213					12,025					24,224					23,772
Total Region Four	22,915					22,073					45,763					43,735
Other
Lease contracts	—					5					—					6
Management contracts	120					220					245					319
Total Other	120					225					245					325
Reimbursed revenue	104,160					100,126					208,097					201,250
Total revenues	$	190,946				$	179,662				$	380,391				$	361,945
Gross Profit
Region One
Lease contracts	$	1,439		7	%	$	1,741		8	%	$	2,220		5	%	$	2,295		6	%
Management contracts	7,679			55	%	7,420			56	%	14,536			54	%	14,130			53	%
Total Region One	9,118					9,161					16,756					16,425
Region Two
Lease contracts	82			7	%	49			7	%	108			5	%	152			11	%
Management contracts	1,093			29	%	1,211			31	%	3,676			25	%	2,957			23	%
Total Region Two	1,175					1,260					3,784					3,109
Region Three
Lease contracts	923			10	%	599			10	%	1,529			10	%	1,160			10	%
Management contracts	5,959			41	%	6,145			48	%	11,262			42	%	11,930			48	%
Total Region Three	6,882					6,744					12,791					13,090
Region Four
Lease contracts	809			8	%	656			7	%	1,568			7	%	1,230			6	%
Management contracts	4,324			35	%	4,009			33	%	8,285			34	%	8,156			34	%
Total Region Four	5,133					4,665					9,853					9,386
Other
Lease contracts	1,161			—	%	(138		)	(2,760	)%	1,146			—	%	(224		)	(3,733	)%
Management contracts	1,299			1,083	%	343			156	%	2,067			844	%	417			131	%
Total Other	2,460					205					3,213					193
Total gross profit	24,768					22,035					46,397					42,203
General and administrative expenses	14,868					11,597					29,913					22,779
General and administrative expense percentage of gross profit	60		%			53		%			64		%			54		%
Depreciation and amortization	1,807					1,677					3,535					3,210
Operating income	8,093					8,761					12,949					16,214
Other expenses (income):
Interest expense	1,132					1,180					2,262					2,349
Interest income	(135		)			(113		)			(205		)			(173		)
	997					1,067					2,057					2,176
Income before income taxes	7,096					7,694					10,892					14,038
Income tax expense	2,856					3,066					4,384					5,545
Net income	4,240					4,628					6,508					8,493
Less: Net income attributable to noncontrolling interest	85					85					157					171
Net income attributable to Standard Parking Corporation	$	4,155				$	4,543				$	6,351				$	8,322

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.