-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BtJpAg9X+6FovdFcScNMK7TIrDcp8d8M85mrlxrJoxIRfJXgfpsWQWxIGerYP45w UDCUCCqqRVRSpmv5ItV96A== 0001157523-07-002454.txt : 20070308 0001157523-07-002454.hdr.sgml : 20070308 20070307180324 ACCESSION NUMBER: 0001157523-07-002454 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070307 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20070308 DATE AS OF CHANGE: 20070307 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STANDARD PARKING CORP CENTRAL INDEX KEY: 0001059262 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTO RENTAL & LEASING (NO DRIVERS) [7510] IRS NUMBER: 161171179 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50796 FILM NUMBER: 07678839 BUSINESS ADDRESS: STREET 1: 900 N. MICHIGAN AVENUE CITY: CHICAGO STATE: IL ZIP: 60611-1542 BUSINESS PHONE: 2185220700 MAIL ADDRESS: STREET 1: 900 N. MICHIGAN AVENUE CITY: CHICAGO STATE: IL ZIP: 60611-1542 FORMER COMPANY: FORMER CONFORMED NAME: APCOA STANDARD PARKING INC /DE/ DATE OF NAME CHANGE: 20011126 FORMER COMPANY: FORMER CONFORMED NAME: APCOA INC DATE OF NAME CHANGE: 19980407 8-K 1 a5350741.txt STANDARD PARKING CORPORATION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section l3 and l5(d) of the Securities Exchange Act of l934 March 7, 2007 -------------- Date of report (date of earliest event reported) STANDARD PARKING CORPORATION ---------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware -------- (State or Other Jurisdiction of Incorporation) 000-50796 16-1171179 --------- ---------- (Commission File Number) (IRS Employer Identification No.) 900 N. Michigan Avenue, Suite 1600, Chicago, Illinois 60611 ----------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (312) 274-2000 -------------- (Registrant's Telephone Number, Including Area Code) Not Applicable -------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition Item 7.01. Regulation FD Disclosure The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and Item 7.01, "Regulation FD Disclosure." On March 7, 2007, Standard Parking Corporation issued a press release setting forth its fourth quarter and fiscal 2006 earnings. A copy of SPC's press release is attached hereto as Exhibit 99 and is hereby incorporated by reference. Exhibit Index 99 Press release, dated March 7, 2007, issued by Standard Parking Corporation SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. STANDARD PARKING CORPORATION Date: March 7, 2007 By: /s/ G. MARC BAUMANN --------------------------- G. Marc Baumann, Chief Financial Officer EX-99 2 a5350741ex99.txt EXHIBIT 99 Exhibit 99 Standard Parking Corporation Reports Record 2006 Fourth Quarter and Full-Year; Pre-Tax Earnings up 27% and 42% Respectively Expects Momentum to Continue in 2007 CHICAGO--(BUSINESS WIRE)--March 7, 2007--Standard Parking Corporation (NASDAQ: STAN), one of the nation's largest providers of parking management services, today announced pre-tax earnings for the 2006 fourth quarter of $6.1 million compared with $4.8 million for the 2005 fourth quarter, an increase of 27%. For the full year 2006, pre-tax earnings were $20.9 million compared with $14.7 million for 2005, an increase of 42%. In addition, the Company reversed its valuation allowance for deferred tax assets in the fourth quarter of 2006, recognizing a net income tax benefit of $17.8 million. Including this non-cash reduction of income tax expense results in earnings per share of $3.49 for the full year compared with $1.39 in 2005. Excluding the impact of the net reduction in valuation allowance for deferred tax assets in both 2005 and 2006, earnings per share would have increased by 34% to $1.76 for 2006. 2006 Highlights -- Revenue (excluding reimbursed management contract expense) and gross profit growth of 5% and 9%, respectively -- Operating income up 23% -- 42% increase in pre-tax earnings -- Free cash flow of $26.6 million or $2.59 per share -- $20.0 million share repurchase -- Net benefit of $17.8 million recognized due to net reversal of valuation allowance for deferred tax assets 2007 Guidance -- EPS expected to be in a range of $1.40 - $1.50, using a 40% effective tax rate (cash taxes are expected to be less than 5%) -- Pre-tax earnings per share expected to be in the range of $2.30 - $2.50 -- Free cash flow expected to be in the range of $20.0 million to $25.0 million -- Board authorization to repurchase up to $20.0 million of common stock James A. Wilhelm, President and Chief Executive Officer, said, "We are pleased to report record revenue, gross profit, pre-tax earnings and earnings per share for 2006, whether including or excluding the $17.8 million net reversal of the valuation allowance for deferred tax assets. For the year, the addition of 72 net new locations, maintenance of our 91% location retention rate and the continuing improvement in our New Orleans operations were key drivers of this performance. While we are disappointed that we completed only one acquisition during 2006 despite the considerable time and resources we devoted to such matters, we continue to believe that deals can get done at the right price, and we will continue our efforts towards that end in 2007. "Our focus in 2007 will remain on increasing our location retention rate and adding new locations. We would like to see significant long term growth in our ancillary support sectors, and expect those to be a major area of focus during the coming year. We are well-positioned to strive for higher earnings in 2007 as our excellent cash generation capability and low net debt to EBITDA leverage of 2.3 times at year-end 2006 enable us to use our forward momentum to continue our organic growth while actively pursuing acquisitions." Fourth Quarter Operating Results Revenue for the fourth quarter of 2006, excluding reimbursed management contract expense, increased by approximately 6% to $65.7 million from $62.0 million a year ago. Excluding New Orleans, revenue from same locations (locations open more than one year) increased by 7% compared with the fourth quarter of 2005. Gross profit in the quarter was relatively flat, increasing to $19.1 million from $18.9 million in the 2005 fourth quarter. Fourth quarter 2005 gross profit, however, reflected $1.6 million in favorable insurance loss experience relating to previous quarters of 2005 that did not recur during the fourth quarter of 2006. Fourth quarter 2006 gross profit includes $0.2 million realized from the Sound Parking portfolio that was acquired in early 2006, a $0.7 million increase in gross profit from our New Orleans operations (compared with 2005) and a reduction of costs attributable to the receipt of $0.3 million in net insurance proceeds related to our Katrina-related insurance claim. On a same location basis, excluding New Orleans, gross profit increased by 5% during the 2006 fourth quarter compared with 2005. General and administrative expense decreased in the quarter by more than 5% to $10.1 million from $10.7 million a year ago due primarily to $0.5 million in acquisition-related costs incurred in the 2005 fourth quarter. The ratio of G&A to gross profit was 53.0% for the 2006 fourth quarter, down from 56.6% in the fourth quarter of 2005. Decreases in general and administrative expense and depreciation and amortization expense contributed to an 18% increase in operating income for the fourth quarter, to $7.7 million, versus $6.5 million in the year ago quarter. Free cash flow for the 2006 fourth quarter was $6.3 million as compared with $9.2 million a year ago. Free cash flow, in conjunction with additional borrowings on the revolving credit facility, was used to repurchase shares of the Company's outstanding common stock totaling $14.0 million during the fourth quarter of 2006 at an average price of $37.90 per share. Total debt at the end of the 2006 fourth quarter was $85.7 million, down $6.4 million from $92.1 million a year ago. The reduced borrowing level, combined with lower interest rates under the amended credit agreement signed at the end of the second quarter, resulted in fourth quarter interest expense of $1.8 million, a decrease of $0.6 million from a year ago. Accordingly, pre-tax income for the 2006 fourth quarter increased by 27% to $6.1 million, or $0.60 per share, up from $4.8 million, or $0.46 per share, last year. The Company reversed its valuation allowance for deferred tax assets in the fourth quarter of 2006, recognizing a $17.8 million net income tax benefit during the quarter. In 2007, the Company expects its effective tax rate to be approximately 40%, although the Company expects cash taxes paid for 2007 to be less than 5%. Net income for the 2006 fourth quarter was $23.1 million, or $2.28 per share, versus $4.1 million, or $0.39 per share, a year ago. Excluding the net reduction of the valuation allowance for deferred tax assets, earnings per share would be $0.52 per share, an increase of 33%. Recent Developments Significant contract activity during the fourth quarter includes new contract awards in key areas of the business. On the airport side of the business, the Company won a multi-year contract to manage 3,500 parking spaces at the El Paso International Airport. On the special event and arena front, the Company added parking management contracts for several new locations during the fourth quarter, including the Sears Centre, a new 11,000 seat stadium near Chicago, Illinois, Kansas City Live, a premier entertainment and convention district in Kansas City, Missouri and the Orlando Centroplex, a multi-venue sports and entertainment complex in Orlando, Florida. Recent additions of premier office properties include Westchester One in White Plains, New York and Tower Burbank in Burbank, California. The Tower Burbank property was won in a competitive bid against a 20-year incumbent operator. Other notable recent wins include Waterfront Plaza, serving a large office / shopping / restaurant complex in downtown Honolulu, Hawaii and Metro Health System, one of the largest health care providers in Northeastern Ohio, for which the Company will operate four garages, two surface lots and a valet service. Conversely, the Company no longer operates the Grant Park and Monroe Street garages that were sold by the City of Chicago to an investor group. Full Year 2006 Results Fiscal 2006 revenue, excluding reimbursed management contract expense, increased by approximately 5% to $259.9 million from $248.0 million in fiscal 2005. Gross profit for 2006 increased 9% to $75.9 million from $69.8 million a year ago. The Sound Parking contract portfolio in Seattle, acquired in early 2006, generated $0.8 million of gross profit during 2006. General and administrative expense for the year increased by 6% to $41.2 million from $38.9 million in 2005, partially due to on-going general and administrative expenses related to the Sound Parking operations of $0.6 million and the adoption of FAS 123R, which resulted in $0.5 million in non-cash stock compensation expense in 2006. Excluding these two items, 2006 general and administrative expense would have increased 3% over 2005. Aside from due diligence costs recognized in the third quarter of 2006 related to a contemplated acquisition, general and administrative expense was flat for the final nine months of 2006. General and administrative expense as a percentage of gross profit for 2006 was 54.3%, down from 55.7% in 2005. The Company expects that ratio to decline further in 2007 as the Company continues to pursue its goal of achieving a ratio of 50% or less. Operating income for the full year 2006 increased 23% to $29.0 million from $23.6 million in the year ago period. Interest expense decreased by $1.1 million to $8.3 million for the full year 2006 due to lower applicable interest rates and a $6.4 million reduction in outstanding borrowings. Pre-tax income in 2006 was $20.9 million, an increase of 42% compared with the same period last year. The Company recorded a benefit for income taxes of $14.9 million for the full year 2006 compared with a benefit of $14,000 for the full year 2005. In 2006, the Company recognized a $17.8 million net reduction in its valuation allowance for deferred tax assets versus $0.9 million recognized in 2005. Net income for 2006 was $35.8 million, or $3.49 per share as compared with $14.7 million, or $1.39 per share, for 2005. Excluding the impact of the reduction in valuation allowance for deferred tax assets in both periods, earnings per share would have increased by 34% to $1.76 for 2006. The Company generated $26.6 million of free cash flow during 2006, matching 2005's free cash flow of $26.5 million. Due to the reduction in outstanding shares, this translates to an increase of 3% in free cash flow per share to $2.59 in 2006 from $2.51 in 2005. Financial Outlook Pre-tax income per share for fiscal year 2007 is expected to be in the range of $2.30 - $2.50, an increase of 13% or more over 2006. After-tax earnings per share for fiscal year 2007 are expected to be in the range of $1.40 - $1.50. This guidance reflects income tax expense at an expected rate of approximately 40% in 2007. Amounts paid for income taxes are expected to remain below 5% for 2007 primarily due to the continued utilization of net operating loss carryforwards. These guidance estimates assume approximately ten million diluted shares outstanding and do not include the impact of any acquisitions or mergers that might be completed during 2007. Also excluded are any additional insurance proceeds that may be received relating to our approximately $3.0 million insurance claim for business interruption losses resulting from Hurricane Katrina. The Company anticipates capital expenditures of approximately $6 million during 2007, an increase of $4 million over 2006 spending. Consequently, free cash flow, after capital expenditures, is expected to be in the range of $20 million to $25 million in 2007. The Company's priorities for the use of such free cash flow remain: -- Fund additional growth, including acquisitions -- Return value to shareholders -- Maintain appropriate debt levels After evaluating the Company's leverage levels, potential cash needs and expected 2007 free cash flow, the Board has authorized the Company to expend up to $20 million, or approximately 6% of current market capitalization, to return value to its shareholders through stock repurchases. The Company intends to repurchase shares in open market transactions from time to time. In addition, the Company may purchase shares on a pro-rata basis from its majority shareholder at the same price paid by the Company in each open market purchase. Conference Call The Company's earnings conference call will be held at 10:00 am (CST) on Thursday, March 8, 2007, and will be available live and in replay to all analyst/investors through a webcast service. To listen to the live call, individuals are directed to the Company's investor relations page at www.standardparking.com or www.earnings.com at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be available shortly after the call on either website and can be accessed for 30 days after the call. Standard Parking is a leading national provider of parking facility management services. The Company provides on-site management services at multi-level and surface parking facilities for all major markets of the parking industry. The Company manages approximately 2,000 facilities, containing over one million parking spaces in more than 300 cities across the United States and Canada, including parking-related and shuttle bus operations serving approximately 60 airports. More information about Standard Parking is available at www.standardparking.com. You should not construe the information on this website to be a part of this report. Standard Parking's annual reports filed on Form 10-K, its periodic reports on Form 10-Q and 8-K and its Registration Statement on Form S-1 (333-112652) are available on the Internet at www.sec.gov and can also be accessed through the Investor Relations section of the Company's website. DISCLOSURE NOTICE: The information contained in this document is as of March 7, 2007. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. This document and the attachments contain forward-looking information about the Company's financial results that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" and similar terms and phrases in connection with any discussion of future operating or financial performance. These forward looking statements are made based on management's expectations and beliefs concerning future events affecting the Company and are subject to uncertainties and factors relating to the operations and business environment, all of which are difficult to predict and many of which are beyond management's control. These uncertainties and factors could cause actual results to differ materially from those matters expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from forward-looking statements: the loss, or renewal on less favorable terms, of management contracts and leases; our ability to form and maintain relationships with large real estate owners, managers and developers; our ability to renew our insurance policies on acceptable terms, the extent to which our clients choose to obtain insurance coverage through us and our ability to successfully manage self-insured losses; our indebtedness could adversely affect our financial health; availability, terms and deployment of capital; integration of future acquisitions in light of challenges in retaining key employees, synchronizing business processes and efficiently integrating facilities, marketing and operations; the ability of our majority shareholder to control our major corporate decisions and a majority of our directors are not considered "independent"; the ability to obtain performance bonds on acceptable terms to guarantee our performance under certain contracts; extraordinary events affecting parking at facilities that we manage, including emergency safety measures, military or terrorist attacks and natural disasters; changes in federal and state regulations including those affecting airports, parking lots at airports or automobile use; the loss of key employees; changes in general economic and business conditions or demographic trends; and development of new, competitive parking-related services. A further list and description of these risks, uncertainties, and other matters can be found in the Company's Annual Reports on Form 10-K and in its periodic reports on Forms 10-Q and 8-K. STANDARD PARKING CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except for share and per share data) December 31 ------------------- 2006 2005 --------- --------- ASSETS Current assets: Cash and cash equivalents $8,058 $10,777 Notes and accounts receivable, net 40,003 40,707 Prepaid expenses and supplies 2,221 2,217 Deferred income taxes 8,290 1,961 --------- --------- Total current assets 58,572 55,662 Leaseholds and equipment: Equipment 25,097 24,835 Leasehold improvements 13,588 17,782 Leaseholds 34,410 36,513 Construction in progress 2,663 2,514 --------- --------- 75,758 81,644 Less accumulated depreciation and amortization (58,856) (64,228) --------- --------- 16,902 17,416 Other assets: Long-term receivables, net 5,131 4,953 Advances and deposits 1,493 1,330 Goodwill 119,078 118,781 Intangible and other assets, net 3,105 3,211 Deferred income taxes 8,247 -- --------- --------- 137,054 128,275 --------- --------- Total assets $212,528 $201,353 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $33,167 $31,174 Accrued rent 5,168 6,178 Compensation and payroll withholdings 9,132 8,041 Property, payroll and other taxes 1,956 1,933 Accrued insurance 3,390 3,973 Accrued expenses 9,441 10,028 Current portion of obligations under credit agreements and other 205 977 Current portion of capital lease obligations 2,561 2,786 --------- --------- Total current liabilities 65,020 65,090 Deferred income taxes -- 1,561 Long-term borrowings, excluding current portion: Obligations under credit agreements 77,050 82,938 Capital lease obligations 4,288 3,460 Other 1,561 1,947 --------- --------- 82,899 88,345 Other long-term liabilities 23,356 21,944 Convertible redeemable preferred stock, series D 18%, par value $100 per share, none issued and outstanding as of December 31, 2006 and 10 shares issued and outstanding as of December 31, 2005 -- 1 Common stockholders' equity: Common stock, par value $.001 per share; 12,100,000 shares authorized; 9,621,799 shares issued and outstanding as of December 31, 2006, and 10,126,482 shares issued and outstanding in 2005 10 10 Additional paid-in capital 169,633 187,616 Accumulated other comprehensive income 139 419 Treasury stock, at cost, 16,100 shares (647) -- Accumulated deficit (127,882) (163,633) --------- --------- Total common stockholders' equity 41,253 24,412 --------- --------- Total liabilities and common stockholders' equity $212,528 $201,353 ========= ========= STANDARD PARKING CORPORATION CONSOLIDATED STATEMENTS OF INCOME (in thousands, except for share and per share data) Three Months Ended Twelve Months Ended ------------------------- ------------------------- December 31, December 31, December 31, December 31, 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Parking services revenue: Lease contracts $38,105 $37,573 $153,336 $154,099 Management contracts 27,555 24,397 106,554 93,876 ------------ ------------ ------------ ------------ 65,660 61,970 259,890 247,975 Reimbursement of management contract expense 88,203 85,991 346,055 338,679 ------------ ------------ ------------ ------------ Total revenue 153,863 147,961 605,945 586,654 Costs and expenses: Cost of parking services: Lease contracts 34,612 34,790 139,043 141,037 Management contracts 11,997 8,310 44,990 37,101 ------------ ------------ ------------ ------------ 46,609 43,100 184,033 178,138 Reimbursed management contract expense 88,203 85,991 346,055 338,679 ------------ ------------ ------------ ------------ Total cost of parking services 134,812 129,091 530,088 516,817 Gross profit: Lease contracts 3,493 2,783 14,293 13,062 Management contracts 15,558 16,087 61,564 56,775 ------------ ------------ ------------ ------------ Total gross profit 19,051 18,870 75,857 69,837 General and administrative 10,101 10,681 41,228 38,922 Depreciation and amortization 1,230 1,656 5,638 6,427 Valuation allowance related to long- term receivables - - - 900 ------------ ------------ ------------ ------------ Total costs and expenses 146,143 141,428 576,954 563,066 Operating income 7,720 6,533 28,991 23,588 Other expenses (income): Interest expense 1,755 2,317 8,296 9,398 Interest income (173) (624) (552) (841) ------------ ------------ ------------ ------------ 1,582 1,693 7,744 8,557 Income before minority interest and income taxes 6,138 4,840 21,247 15,031 Minority interest 65 56 376 326 Income tax (benefit) expense (16,981) 660 (14,880) (14) ------------ ------------ ------------ ------------ Net income $23,054 $4,124 $35,751 $14,719 ============ ============ ============ ============ Common Stock Data: Net income per common share: Basic $2.34 $0.41 $3.58 $1.43 Diluted $2.28 $0.39 $3.49 $1.39 Weighted average common shares outstanding: Basic 9,857,878 10,126,482 9,983,643 10,265,785 Diluted 10,122,808 10,450,360 10,246,260 10,560,415 STANDARD PARKING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except for share and per share data) Year Ended December 31, ----------------------- 2006 2005 ----------- ----------- Operating activities Net income $35,751 $14,719 Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 5,270 5,782 Loss on sale of assets 368 645 Amortization of deferred financing costs 525 764 Amortization of carrying value in excess of principal (109) (179) Non-cash stock-based compensation 480 -- Valuation allowance related to long term receivables -- 900 Write off of debt issuance costs 416 -- Write off of carrying value in excess of principal related to the 9 1/4 senior subordinated notes (352) -- Provision (reversal) for losses on accounts receivable (181) 533 Deferred income taxes (15,743) (400) Changes in operating assets and liabilities: Notes and accounts receivable 707 (5,168) Prepaid assets (296) 240 Other assets (145) 358 Accounts payable 1,993 5,068 Accrued liabilities 122 8,092 ----------- ----------- Net cash provided by operating activities 28,806 31,354 Investing activities Purchase of leaseholds and equipment (2,162) (4,762) Proceeds from the sale of assets 213 29 Contingent purchase payments (301) (316) ----------- ----------- Net cash used in investing activities (2,250) (5,049) Financing activities Proceeds from exercise of stock options 506 14 Repurchase of common stock (20,010) (5,963) Repurchase series D convertible redeemable preferred stock (1) -- Proceeds from long-term borrowings -- 360 Proceeds from (payments on) senior credit facility 43,450 (16,400) Payments on long-term borrowings (383) (213) Payments on joint venture borrowings (758) (618) Payments of debt issuance costs (737) (126) Payments on capital leases (2,477) (3,118) Repurchase 9 1/4% senior subordinated notes (48,877) -- =========== =========== Net cash used in financing activities (29,287) (26,064) Effect of exchange rate changes on cash and cash equivalents 12 176 ----------- ----------- (Decrease) increase in cash and cash equivalents (2,719) 417 Cash and cash equivalents at beginning of year 10,777 10,360 ----------- ----------- Cash and cash equivalents at end of year $8,058 $10,777 =========== =========== Cash paid for: Interest $9,303 $8,670 Income taxes 572 400 Supplemental disclosures of non-cash activity: Debt issued for capital lease obligations $3,631 $2,644 STANDARD PARKING CORPORATION FREE CASH FLOW (in thousands) Three Months Ended Twelve Months Ended December 31, December 31, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Operating income $7,720 $6,533 $28,991 $23,588 Depreciation and amortization 1,230 1,656 5,638 6,427 Valuation allowance related to long-term receivables - - - 900 Non-cash stock-based compensation 77 - 480 - Income tax paid (277) (38) (572) (400) Minority interest (65) (56) (376) (326) Change in assets and liabilities 577 3,573 3,960 10,011 Capital expenditures and contingent purchase payments (1,217) (1,521) (2,250) (5,049) --------- --------- --------- --------- Operating cash flow $8,045 $10,147 $35,871 $35,151 Cash interest paid (1,782) (922) (9,303) (8,670) --------- --------- --------- --------- Free Cash Flow (1) $6,263 $9,225 $26,568 $26,481 Decrease (Increase) in cash and cash equivalents 598 2,773 2,719 (417) --------- --------- --------- --------- Free cash flow, net of change in cash $6,861 $11,998 $29,287 $26,064 (Uses)/Sources of cash: Proceeds from (Payments on) senior credit facility and 9.25% Notes $8,050 ($11,400) ($5,427) ($16,400) (Payments) on long-term borrowings (898) (590) (3,618) (3,589) (Payments) of debt issuance costs (5) (8) (737) (126) Proceeds from exercise of stock options 5 - 506 14 (Repurchase) of common stock (14,013) - (20,010) (5,963) (Repurchase) of series D preferred stock - - (1) - --------- --------- --------- --------- Total (uses) of cash ($6,861) ($11,998) ($29,287) ($26,064) (1) Reconciliation of Free Cash Flow to Consolidated Statements of Cash Flow Twelve Months Nine Months Three Months Ended Ended Ended December 31, September 30, December 31, 2006 2006 2006 ------------- ------------- ------------- Net cash provided by operating activities $28,806 $21,279 $7,527 Net cash (used in) investing activities (2,250) (1,033) (1,217) Effect of exchange rate changes on cash and cash equivalents 12 59 (47) ------------- ------------- ------------- Free cash flow $26,568 $20,305 $6,263 Twelve Months Nine Months Three Months Ended Ended Ended December 31, September 30, December 31, 2005 2005 2005 ------------- ------------- ------------- Net cash provided by operating activities $31,354 $20,590 $10,764 Net cash (used in) investing activities (5,049) (3,528) (1,521) Effect of exchange rate changes on cash and cash equivalents 176 194 (18) ------------- ------------- ------------- Free cash flow $26,481 $17,256 $9,225 STANDARD PARKING CORPORATION EBITDA AND NET DEBT RECONCILIATION Twelve months ended December 31, 2006 ----------------- Net Income $35,751 Add (subtract): Interest expense, net 7,744 Income tax benefit (14,880) Depreciation and amortization 5,638 EBITDA (1) $34,253 Long-term borrowings, excluding current portion $82,899 Current portion of long-term borrowings 2,766 less: Cash and cash equivalents (8,058) Net Debt $77,607 Net Debt to EBITDA multiple 2.3x (1) EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by accounting principles generally accepted in the United States (GAAP), and the Company's calculations thereof may not be comparable to that reported by other companies. EBITDA is calculated above as it is a basis upon which the Company assesses its liquidity position and because we believe that this presents useful information to investors regarding a company's ability to service and/or incur indebtedness. This belief is based upon the Company's negotiations with its lenders who have indicated that the amount of indebtedness it will be permitted to incur will be based, in part, on measures similar to its EBITDA. EBITDA does not take into account the Company's working capital requirements, debt service requirements and other commitments and, accordingly, is not necessarily indicative of amounts that may be available for discretionary use. STANDARD PARKING CORPORATION LOCATION COUNT December 31, 2006 December 31, 2005 ----------------- ----------------- Managed facilities 1,733 1,643 Leased facilities 245 263 ----------------- ----------------- Total facilities 1,978 1,906 CONTACT: Standard Parking Corporation G. MARC BAUMANN Executive Vice President and Chief Financial Officer (312) 274-2199 mbaumann@standardparking.com -----END PRIVACY-ENHANCED MESSAGE-----