2. Revisions to Previously Issued Consolidated Financial Statements

We have revised our previously issued consolidated financial statements to reflect (a) the finalization of purchase accounting and (b) a change in our accounting for our contract related to the Bradley Airport as described in Note 11 (the “Bradley Agreement”) and certain other adjustments.

Purchase Accounting Finalization

As described in Note 3 of these consolidated financial statements, we purchased KCPC Holdings, Inc. (“KCPC”) on October 2, 2012. During September 2013 we finalized the purchase price allocation (“PPA”) for this acquisition. We have recast our previously issued consolidated financial statements to reflect the impact of the final purchase allocation as if it was completed at the date of acquisition. The impact of the finalization of the purchase price allocation is reflected in the table shown below.

Restatement of Accounting

We have restated our consolidated financial statements to correct the accounting for certain transactions. The restatement is primarily related to the accounting for the agreement under which we operate the Bradley International Airport.

We account for the Bradley Agreement, which is described in detail in Note 11 of these consolidated financial statements, as a management agreement. We have historically recognized an accounts receivable for deficiency payments that we have made under the Bradley Agreement as we believed based on the Bradley Agreement that we will ultimately receive these amounts. However, while we continue to believe that these amounts are ultimately collectible we have concluded that the collection of these amounts represent a contingency related to the contract and should be recorded when received. The impact of the restatement is reflected in the table shown below.

Impact of the Revisions

The following tables summarize the most significant impacts of the changes described above.

	As originally reported	Impact of Purchase Price Allocation Finalization	As Recast for Purchase Price Allocation Finalization	Impact of Restatement		As Revised

BALANCE SHEET
As of June 30, 2013
Total current assets	172,997	788	173,785	441		174,226
Long-term receivables, net	14,989	—	14,989	(14,989	)	—
Intangible assets, net	160,231	20,494	180,725	—		180,725

Goodwill	433,877		5,418		439,295		—		439,295
Total assets	867,413		26,802		894,215		(14,520	)	879,695
Total current liabilities	249,959		3,011		252,970		—		252,970
Unfavorable lease contracts	37,622		29,104		66,726		—		66,726
Deferred tax liabilities	28,043		(3,822	)	24,221		5,560		18,661
Accumulated deficit	(36,134	)	(1,491	)	(37,625	)	(8,959	)	(46,584	)
Total Standard Parking Corporation stockholders’ equity	203,159		(1,491	)	201,668		(8,959	)	192,709
Total liabilities and shareholders’ equity	867,413		26,802		894,215		(14,520	)	879,695

INCOME STATEMENT
For six months ended June 30, 2013
Total cost of parking services	653,932		1,066		654,998		(417	)	654,581
Total gross profit	86,369		(417	)	85,952		417		86,369

Operating income	16,293		(780	)	15,513		295		15,808
Income before income taxes	6,822		(780	)	6,042		402		6,444
Income tax (benefit) expense	2,095		(327	)	1,768		143		1,911
Net income	4,727		(453	)	4,274		259		4,533

For six months ended June 30, 2012
Parking services revenue:
Total cost of parking services	333,994	—	333,994	832		334,826
Total gross profit	46,397	—	46,397	(832	)	45,565
Operating income	12,949	—	12,949	(832	)	12,117
Income before income taxes	10,892	—	10,892	(917	)	9,975
Income tax (benefit) expense	4,384	—	4,384	(368	)	4,016
Net income	6,508	—	6,508	(549	)	5,959

For three months ended June 30, 2013

Total cost of parking services	324,621	448		325,069	(820	)	324,249
Total gross profit	45,672	(448	)	45,224	820		46,044
Operating income	10,729	(625	)	10,104	820		10,924
Income before income taxes	6,154	(625	)	5,529	760		6,289
Income tax (benefit) expense	2,049	(262	)	1,787	278		2,065
Net income	4,105	(364	)	3,741	483		4,224

For three months ended June 30, 2012
Total cost of parking services	166,178	—		166,178	53		166,231
Total gross profit	24,768	—		24,768	(53	)	24,715
Operating income	8,093	—		8,093	(53	)	8,040

Income before income taxes	7,096	—	7,096	(138	)	6,958
Income tax (benefit) expense	2,856	—	2,856	(55	)	2,801
Net income	4,240	—	4,240	(83	)	4,157

We had a $0.02 and $0.01 increase to our net income per share-basic and diluted, respectively, as a result of the restatement of accounting for the Bradley Agreement and a $0.02 reduction to our net income per share-basic and diluted for the purchase price finalization for KCPC for the six months ended June 30, 2013. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC, was $0.13, compared to $0.15, as originally reported. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement was $0.15 and $0.14, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported.

We had a $0.04 and $0.03 reduction to our net income per share-basic and diluted, respectively, as a result of our restatement of accounting for the Bradley Agreement for the six months ended June 30, 2012. Our net income per share-basic and diluted for the same period, after giving effect to the restatement of accounting for the Bradley Agreement was $0.37, compared to $0.41 and $0.40, respectively, as originally reported.

We had a $0.02 increase to our net income per share-basic and diluted, as a result of the restatement of accounting for the Bradley Agreement and a $0.01 and $0.02 reduction to our net income per share-basic and diluted, respectively, for the purchase price finalization for KCPC for the three months ended June 30, 2013. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC, was $0.14 and $0.13, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement was $0.16 and $0.15, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported.

We had a $0.01 reduction and $nil effect to our net income per share-basic and diluted, respectively, as a result of our restatement of accounting for the Bradley Agreement for the three months ended June 30, 2012. Our net income per share-basic and diluted for the same period, after giving effect to the restatement of accounting for the Bradley Agreement was $0.26, compared to $0.27 and $0.26, respectively, as originally reported.

Net income attributable to Standard Parking Corporation, within the Consolidated Statements of Income, and other comprehensive income and comprehensive income attributable to Standard Parking Corporation, within the Consolidated Statements of Comprehensive Income, was only effected by the change in net income as a result of the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement for the three and six- months ended June 30, 2013 and the restatement of accounting for the Bradley Agreement for the three and six- months ended June 30, 2012.

The effect of the restatement had no impact to our net cash provided by operating activities, net cash provided by (used in) investing activities or net cash used in financing activities, within the Consolidated Statements of Cash Flows, for the three and six- months ended June 30, 2013 and 2012.

The notes to these consolidated financial statements have been revised, as needed, to reflect the impact of the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement, as previously discussed above.