Business Unit Segment Information

3 Months Ended

Mar. 31, 2013

Business Unit Segment Information

Business Unit Segment Information

13. Business Unit Segment Information

Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which separate financial information is available and evaluated regularly by our CODM in deciding how to allocate resources and in assessing performance.

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 CODM. Our CODM 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 summary of revenues (excluding reimbursed management contract revenue) and gross profit by regions for the three months ended March 31, 2013 and 2012 with information related to prior periods recast to conform to the current regional alignment (unaudited):

	Three Months Ended March 31, 2013			Gross Margin %		Three Months Ended March 31, 2012			Gross Margin %
	(Restated)					(Restated)
Revenues(a):
Region One
Lease contracts	$	75,040				$	17,142
Management contracts (b)	25,886					12,065
Total Region One	100,926					29,207
Region Two
Lease contracts	1,326					—
Management contracts	10,226					7,102
Total Region Two	11,552					7,102
Region Three
Lease contracts	12,289					5,417
Management contracts	18,141					13,535
Total Region Three	30,430					18,952
Region Four
Lease contracts	9,214					10,837
Management contracts	27,410					12,011
Total Region Four	36,642					22,848
Region Five
Lease contracts	23,267					4,148
Management contracts	9,057					3,067
Total Region Five	32,324					7,215
Other
Lease contracts	(51		)			—
Management contracts	(643		)			184
Total Other	(694		)			184
Reimbursed management contract revenue	159,477					103,937
Total revenues	370,657					189,445
Gross Profit
Region One
Lease contracts	5,154			7	%	629			4	%
Management contracts	11,243			43	%	6,490			54	%
Total Region One	16,397					7,119
Region Two
Lease contracts	266			20	%	—			—
Management contracts	2,287			22	%	1,198			17	%
Total Region Two	2,553					1,198
Region Three
Lease contracts	781			6	%	436			8	%
Management contracts	6,851			38	%	5,636			42	%
Total Region Three	7,632					6,072
Region Four
Lease contracts	(1,918		)	(21	)%	760			7	%
Management contracts	8,200			30	%	3,182			26	%
Total Region Four	6,282					3,942
Region Five
Lease contracts	4,668			20	%	357			9	%
Management contracts	3,779			42	%	1,449			47	%
Total Region Five	8,447					1,806
Other
Lease contracts	16			31	%	(25		)	—
Management contracts	(1,002		)	(156	)%	738			401	%
Total Other	(986		)			713
Total gross profit	40,325					20,850
General and administrative expenses	27,948					15,045
General and administrative expense percentage of gross profit	69		%			72		%
Depreciation and amortization	7,493					1,728
Operating income	4,884					4,077
Other expenses (income):
Interest expense	4,840					1,130
Interest income	(111		)			(70		)
	4,729					1,060
Income before income taxes	155					3,017
Income tax expense	(154		)			1,215
Net income	309					1,802
Less: Net income attributable to noncontrolling interest	569					72
Net income (loss) attributable to Standard Parking Corporation	$	(260	)			$	1,730

(a) Excludes reimbursed management contract revenue.

(b) Includes a net gain of $2,700 related to the sale of rights associated with certain contracts.  There were no similar payments received in 2012.

Region One encompasses operations in Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Virginia, West Virginia and Wisconsin.

Region Two encompasses event planning and transportation, our acquired valet business and our technology-based parking and traffic management systems.

Region Three encompasses operations in Canada, Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Region Five encompasses Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Puerto Rico, Tennessee, and Texas.

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

Our CODM does not evaluate segments using discrete asset information.