Business Unit Segment Information

9 Months Ended

Sep. 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 nine months ended September 30, 2012 and 2011.

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

	For the three months ended										For the nine months ended
	September 30,2012			GrossMargin		September 30,2011			GrossMargin		September 30,2012			GrossMargin		September 30,2011			GrossMargin
Revenues:
Region One
Lease contracts	$	22,028				$	21,118				$	62,603				$	60,709
Management contracts	13,631					13,989					40,605					40,702
Total Region One	35,659					35,107					103,208					101,411
Region Two
Lease contracts	1,100					883					3,404					2,224
Management contracts	9,752					3,841					23,596					16,543
Total Region Two	10,852					4,724					27,000					18,767
Region Three
Lease contracts	9,349					5,885					24,889					17,383
Management contracts	13,697					13,254					40,603					38,482
Total Region Three	23,046					19,139					65,492					55,865
Region Four
Lease contracts	10,491					9,584					32,030					29,547
Management contracts	11,965					11,960					36,147					35,617
Total Region Four	22,456					21,544					68,177					65,164
Other
Lease contracts	1					31					1					36
Management contracts	181					215					611					212
Total Other	182					246					612					248
Reimbursed revenue	100,958					106,365					309,055					307,615
Total revenues	$	193,153				$	187,125				$	573,544				$	549,070
Gross Profit
Region One
Lease contracts	$	1,601		7	%	$	1,898		9	%	$	3,830		6	%	$	4,193		7	%
Management contracts	7,375			54	%	7,945			57	%	22,033			54	%	22,214			55	%
Total Region One	8,976					9,843					25,863					26,407
Region Two
Lease contracts	28			3	%	53			6	%	136			4	%	205			9	%
Management contracts	2,067			21	%	1,228			32	%	5,474			23	%	4,229			26	%
Total Region Two	2,095					1,281					5,610					4,434
Region Three
Lease contracts	575			6	%	571			10	%	2,105			8	%	1,730			10	%
Management contracts	5,868			43	%	5,770			44	%	17,251			42	%	17,995			47	%
Total Region Three	6,443					6,341					19,356					19,725
Region Four
Lease contracts	719			7	%	707			7	%	2,287			7	%	1,937			7	%
Management contracts	3,769			32	%	4,092			34	%	12,054			33	%	12,148			34	%
Total Region Four	4,488					4,799					14,341					14,085
Other
Lease contracts	(62		)	(6,200	)%	223			719	%	1,074			107,400	%	—			—	%
Management contracts	(262		)	(145	)%	1,735			807	%	1,831			300	%	1,774			837	%
Total Other	(324		)			1,958					2,905					1,774
Total gross profit	21,678					24,222					68,075					66,425
General and administrative expenses	13,846					11,814					43,759					34,593
General and administrative expense percentage of gross profit	64		%			49		%			64		%			52		%
Depreciation and amortization	1,723					1,683					5,258					4,893
Operating income	6,109					10,725					19,058					26,939
Other expenses (income):
Interest expense	1,093					1,197					3,355					3,546
Interest income	(61		)			(297		)			(266		)			(470		)
	1,032					900					3,089					3,076
Income before income taxes	5,077					9,825					15,969					23,863
Income tax expense	2,623					3,760					7,007					9,305
Net income	2,454					6,065					8,962					14,558
Less: Net income attributable to noncontrolling interest	75					89					232					260
Net income attributable to Standard Parking Corporation	$	2,379				$	5,976				$	8,730				$	14,298

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.