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Standard Parking Corp. Reports Operating Results (10-Q)

November 09, 2009 | About:
10qk

10qk

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Standard Parking Corp. (STAN) filed Quarterly Report for the period ended 2009-09-30.

Standard Parking Corporation is a national leader in parking management service. They tailor their parking solutions to the needs of their clientsoperating facilities under both management contracts and lease arrangements. They also provide consulting services for the parking component of real estate development projects. Standard Parking Corp. has a market cap of $258.89 million; its shares were traded at around $16.94 with a P/E ratio of 16.13 and P/S ratio of 0.37.

Highlight of Business Operations:

Parking services revenuelease contracts. Lease contract revenue decreased $3.0 million, or 7.8%, to $35.6 million in the three months ended September 30, 2009, compared to $38.6 million for the three months ended September 30, 2008. The decrease resulted primarily from a decrease in same location short-term and monthly parking revenue, conversions, and contract expirations, which was partially offset by increases from our acquisitions and new locations. Same location revenue for those facilities, which as of September 30, 2009 are the comparative periods for the two years presented, decreased 4.0%. Revenue associated with contract expirations relates to contracts that expired during the current period.

Parking services revenuemanagement contracts. Management contract revenue increased $2.4 million, or 6.5%, to $39.3 million for three months ended September 30, 2009, compared to $36.9 million for the three months ended September 30, 2008. The increase resulted primarily from same location revenue, new locations and acquisitions, partially offset by decreases in revenue from contract expirations. Same locations revenue for those facilities, which as of September 30, 2009 are the comparative for the two years presented, increased 6.3%.

Reimbursed management contract expense. Reimbursed management contract expense decreased $4.4 million, or 4.3%, to $97.5 million for the three months ended September 30, 2009, compared to $101.9 million for the three months ended September 30, 2008. This decrease resulted from a reduction in reimbursed costs incurred on behalf of owners.

Cost of parking serviceslease contracts. Cost of parking services for lease contracts decreased $2.6 million, or 7.3%, to $32.9 million for the three months ended September 30, 2009, compared to $35.5 million for the three months ended September 30, 2008. The decrease resulted primarily from decreases in costs related to contract expirations, same locations and conversions, partially offset by increases in costs related to new locations and acquisitions. Same locations costs for those facilities which as of September 30, 2009 are the comparative for the two years presented, decreased 3.7%. Same location rent expense for lease contracts decreased primarily as a result of contingent rental payments on the decrease in revenue for same locations.

Cost of parking servicesmanagement contracts. Cost of parking services for management contracts increased $4.2 million, or 25.5%, to $20.7 million for the three months ended September 30, 2009, compared to $16.5 million for the three months ended September 30, 2008. The increase resulted primarily from increases in costs related to same locations, new locations and acquisitions, partially offset by decreases in costs related to contract expirations. There was no impact on costs for those management contracts which converted to a lease contract. Same location costs for those facilities, which as of September 30, 2009 are the comparative period for the two years presented, increased 20.8%. Same location increase in operating expenses for management contracts primarily result from negative fluctuations in prior years insurance reserve adjustments, increases in costs associated with reverse management contracts and the cost of providing management services.

Reimbursed management contract expense. Reimbursed management contract expense decreased $4.4 million, or 4.3%, to $97.5 million, for the three months ended September 30, 2009, compared to $101.9 million for the three months ended September 30, 2008. This decrease resulted from a reduction in reimbursed cost incurred on the behalf of owners.

Read the The complete ReportSTAN is in the portfolios of John Keeley of Keeley Fund Management.

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