025-2009 City Parking Contracts (Miguel Corral) - Updater-. ~.. /~ r- , , ~ r
F.
m MIAMI BEACH ~~ - ` ~~ ~ ~ ~ ' ~~
City of Miam{ Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miomibeachfl.gov
MEMORANDUM
n~.ozs-zoo9
TO: Jerry Libbin, City Commissioner
FROM: Jorge M. Gonzalez, City Manager
DATE: April 29, 2009
SUBJECT: CITY PARKING CONTRACTS iMIGUEL CORRALI -UPDATE
In response to your request to investigate issues raised in Mr. Corral's letter to you dated
March 9, 2009, the City's Parking Department investigated Mr. Corral's allegations and
the following are the results.
The City's Parking Department conducted an inspection of Standard Parking's meter
collection vans, employees, and equipment on Friday, March 20, 2009. The following were
the results:
1. Standard Parking is required to have an alarm system with sirens to protect their
vehicles.
The City confirmed that all vans have an alarm system.
2. Each van is required to have an enclosed caged compartment to protect, enclose,
and distinguish the coin buckets, canisters, and bill hoppers from one another.
The City confirmed the following:
• One (1) out of the four vans (three in use and one spare) for collection was properly
outfrtted to carry bill hoppers and multi-space meter coin canisters; however, it was
not properly outfitted for the single space meter sealed coin collection buckets.
• Two (2) vans were outfitted to carry the sealed single space meter coin collection
buckets: however, they were not outfitted for the multi-space meter bill hoppers and
coin buckets.
• One of the vans (the RFP requires three vehicles -there is a fourth vehicle which
acts as a spare) was not properly equipped to carry any of the collection coin
buckets, bill hoppers, etc.
3. The bulkhead separating the driver from the back of the van is supposed to have an
opening to allow the driverto have a clear view at all times of the back compartment.
The City confirmed that all vans have a bulkhead separating the driverfrom the back
compartment with a metal cage that allows the driverto have a clear view of the back
compartment. It was noted that one of the vans had apass-through in the cage.
4. Each van is required to have a drop safe on the passenger side of each van for the
purpose of securing equipment and monies.
The City confirmed that none of the vans have a drop safe for equipment on the
passenger's side of the bulkhead.
5. Each collection van's operator is required to have a cellular phone ortwo-way radio
to communicate with Parking Department Staff.
Each Collector was equipped with a personal cellular phone. In addition, a two-way
radio was provided, by the City's Parking Department, to each collection vehicle.
6. It is also a requirement of the RFP that all employees of the parking meter collection
service wear uniforms.
Not alt Collectors wear uniforms al! the time.
All of the aforementioned items are requirements contained in Request for Proposals No.
17-05106 to Provide Parking Meter Collection Services for the City of Miami Beach Parking
System (RFP). Furthermore, Standard Parking's proposal for said RFP included a
commitment to comply with any and all requirements contained in the RFP.
Items Nos. 2, 4, and 6 above, were found to have varying levels of deficiencies; however,
said deficiencies were not found to be substantive.
As a result, the City's Parking Department sent Standard Parking notification of said findings
(see attached). Mr. David Hoyt, Vice-PresidenVRegional Manager for Standard Parking
responded that Standard Parking would corect these findings.
On April 17, 2009, afollow-up inspection was conducted to confirm the correction of Items 2,
4, and 6 above. The inspection confirmed that all requirements have been fully satisfied.
Please let me know if you have any questions or if you would like to discuss further
Attachment
C: Mayor and City Commissioners
Tim HemsVeet, Assistant City Manager
Hilda Fernandez, Assistant City Manager
Robert Middaugh, Assistant City Manager
Robert Parcher, City Clerk
Saul Frances, Parking Director
JMG/S~F
Attachment
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City of Miami Beath, ' ~.. _. +.-'ipr Ce~'er :~ a..Vt m~~ 9e::c-. F oi'ca :° °'~ wwv. ~nicm.c. r_hi'~~
April 20. 2009
Iv1r. Dav9d Hoyt. CPFfv1
Vice President Regional P;larager
Standard Parking, Inc.
901 South Miami A•,enue. Suite 303
Miami. Florida 33130
RE: PARKING METER COLLECTION SERVICES
Dear Ntr. Hoyt:
Pursuard to an .nspection of the parking meter collection vans and of your employees conducted
on Fnday, Aprl 17. 2009. the `bllowing are the results:
1. Standard Parking is required to have an alarm system with sirens to protect their vehicles.
The City confirmed that all vans have an alann system.
2. Each van is required to have an enclosed caged compartment to protect. enclose, and
distinguish the ccin buckets. canisters. and bill hoppers from one another.
The City confirmed that said required compartments are in place and satisfactory.
3 The bulkhead separating the driver from the back of the van is supposed to have an
opening to allow the Criver to have a clear view at all times of the back Compartment.
Tne City confirmed that all vans have a bulkhead separating the driver from the back
comparment evith a metal cage that alloevs the driver to have a clear view of the back
compartment. It was noted that one of the vans had apass-through it the cage.
4 Each van is required to have a drop safe on the passenger side of each van for the
purpose of securing equipment and monies.
The City confirmed that all vans have a drop safe for equipment on the passenger's side
of the bulkhead.
5, Each collection vans operator is required to have a cellular phcre cr hvo-way radio to
communicate with Parking Department Staff.
Each Collector was equipped with a personal cellular phone In add:Lon. a hvo-~.vay radio
was provided. by the City s Parking Department, to each ccllecUOn vehicle.
6 I( is also a requirement of the RFP that all emp~oyees of the parking meter collection
service •orear uni`orms.
Atl Cclleclors were in uniform.
This correspondence senses to confirm that items 2. 4. anC 6 are now in comp~iance- 'vlie
appredate your prorcpt a~ten;:cn to :his matter. If you should ha+;e any further Guestiors. pease
contact me via ercail a[ saulfrances;c')miamibeach`I ov cr at (3C5i &73-7~3C0, extension 6483.
Smcere~y.
~+
Saul Frances, _
Parking Director
c. Jorge PA. Gonzalez, City Manager
Tim Hemstreet, Assistant City 1,9anager
Raul Aquila, Deputy City Attorney
Fai-~ ~c,n
3C4 23°' Srae~. Su'e 2:~
n~eNING ~V•~a-~ 3eoc~. F.::? 13.
Cify of Miami Beach, ~ 70C Convenricn Center Crva. Micml ?ecch, Floride 73' Via, •wor.. -iomicecchFl.~cv
P,aRKING DE~ARTAAcV:
?alp 305 673.750, Fo:' 3C5 "_7? 7?53
March 25, 2009
Mr. David Hoyt, CPFM
Vice President Regional A.tanager
Standard Parking, Inc.
901 South Mliami Avenue. Suite 303
Miami, Florida 33130
RE: PARKING METER COLLECTION SERVICES
Dear Mr. Hoyt:
Pursuant to an inspection of the parking meter collection vans and of your employees conducted
on Friday, March 20, 2009, the following are the results:
1. Standard Parking is required to have an alarm system with sirens to protect their vehicles.
The City confirmed that all vans have an alarm system.
2. Each van is required to have an enclosed caged compartment to protect, enclose, and
distinguish the coin buckets. canisters, and bill hoppers from one another.
The City confirmed the following:
• One (t)out of the four vans (three in use and one spare) for collection was properly
outfitted to carry bill hoppers and multi-space meter coin canisters; however, it was not
properly outfitted for the single space meter sealed coin collection buckets.
• Two (2) vans were outfitted to carry the sealed single space meter coin collection
buckets; however, they were not outfitted for the multi-space meter bill hoppers and coin
buckets.
• One of the vans was not properly equipped to carry any of the collection coin buckets: bill
hoppers, etc.
3. The bulkhead separating the driver from the back of the van is supposed to have an
opening to allow the driver to have a clear view at all times of the back compartment.
The City confirmed that all vans have a bulkhead separating the driver from the back
compartment with a metal cage that allows the driver to have a clear view of the back
compartment. It was noted that one of the vans had apass-through in the cage.
4. Each van is required to have a drop safe on the passenger side of each van for the
purpose of securing equipment and monies.
The City confirmed thaF none of the vans have a drop safe for equipment on the
passenger's side of the bulkhead.
5. Each collection van's operaior is required to have a cellular phone or two-way radio to
communicate with Parking Department Staff.
Each Coltectorwas equipped+uith a personal cellular phone. In additicn, a hvc-way radio
was provided, by the City s Parking Department, tc each collet:ion veh~c;e.
6. It is also a requirement of the RFP that all employees of the parking meter collection
service wear uniforms.
Not all Collectors wear uniforms all the time.
As you may recall.. the aforementioned items are requirements contained in Request for
Proposals No. 17-05106 to Provide Parking Meter Collection Services for the Cibj of btiami Beach
Parking System (RFPj. Furthermore, the Standard Parking proposal for said RFP included a
commitment to comply with any and all requirements contained in the RFP.
Therefore. Standard Parking, Inc. is [o comply with Items Nos. 2, 4, and 6 above, as required in
the RFP and stated in Standard Parking's proposaliresponse to the RFP. Please provide my
office +.vri:ten confinnation of Standard Parking's intent to comply with said requirements.
If ycu should have any further questions, please Contact me via email at
saulfrances!a~miamibeachfl.gov or at (305j 673-7000, extension 6483.
Sincerely,
,_J ~; .
-.
Saul Frances, I
Parking Director ._-
c: Jorge h1. Gonzalez, City Manager
Tim Hemstreet, Assistant City Manager
Raul Aguila, Deputy City Attorney
~~ ",;im escort
?09 23 ` Shoes. S~.ilo 2GG
wxKivc n.nloml ?axh, =L 33' 3a
'March 9, 2009
The ?Ionorable Jerry Libben
Commissioner, City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
RE: City Parking Contracts
Dear Commissioner Libben:
1 am told that you are leading an effort to have the City Commission consider
cancelling the management and labor contract for the City's parking lots and
garages. [would like you to know that I commend you for being a watchdog over
the companies wha perform important functions for the City. Although I have not
experienced any problems at any of the City tots or garages since the new company
took over last year, your oversight is appreciated.
I am writing to alert you to some issues that I have discovered regarding Standard
Parking and the services that they provide for the parking meter collection contract.
I have noticed Standard recklessly collecting money from the City's parking meters.
for some time, and when I was made aware of issues you raised with the parking
lots and garages contract, I decided to take the time to document what 1 have
observed in the past and look into the Standard contract.
It appears from the attached documents that Standard is routinety violating their
contract on a daily basis. They have numerous security and collection requirements
that are not being followed. As a result, the City's parking meter monies are at
serious risk of being lost, stolen or misplaced. For your convenience I have attached
a copy of the Standard Contract along with a list of Ciry documented violations and
pictures noting the violations I have discovered, which are outlined below.
Some of the violations I have discovered are as follows:
1. Standard is supposed to have an alarm system with sirens to protect the
vehicles in which monies are kept while being collected. It does not appear
this is the case.
2. Standard is supposed to be enclosed cages compartments to protect, enclose
and distinguish from one another the coin buckets and canisters and bill
hoppers. This does not appear to be occurring from the pictures attached.
3. The bulkhead separating the driver from the back of the van is supposed to
have an opening to allow the driver to have a clear view at ail times of the
back compartment and the money contained there. This does not appear to
be the case.
4. Standard is supposed to be a safe on the passenger side of each van for the
purpose o` securing equipment and monies. I question whether each of
Standard's collection vans contain such a safe.
5. Each Standard collection operator van is supposed to have a cellular phone
or two-way radio to provide communication between the collection vans and
City staff. The attached pictures certainly raise a question as to whether this
requirement is being followed.
6. It is also a requirement that the Standard collection operators where
uniforms. The attached pictures do not show any uniform being worn by
Standard employees.
In addition to the above violations I, I have also attached a list of complaints cited by
staff which, include, among other things, allegations of missing money, which, I must
say, does not surprise me in light of the security type violations I have discovered.
Commissioner L:bben, I hope you will take the time and diligence to look into the
Standard contract and the apparent reckless operations that are taking place in
collecting the Cit}ls parking meter money. These appear to be serious violations on
the part of Standard and should be given the same consideration as the matters
being discussed by you and your Commission colleagues that pertain to the contract
for the City's parking lots and garages.
Again, thank your for our consideration and keep up the good work
Since ely, I'
"_ _ 1/v
Miguel Corral
6969 Collins Avenue, #308
cc: The Honorable Matti Herrera Bower, Mayor
The Honorable Jonah Wolfson, Vice Mayor
The Honorable Saul Gross, Commissioner
The Honorable Victor Diaz, Commissioner
The Honorable Edward Tobin, Commissioner
The Honorable Deede ~Neithorn, Commissioner
on
a and
Standard Pa:lang ti4eter Collector at David's Caf6 lot is Lincoln Rd on 2/20/09. No
uaiform and no radios of any kind, as stipulated in their contract.
Standazd Pazking's Collection Van - 02/20/09. Florida tag 631 HRK -Registered to
STANDARD PARKING. City Velricle assigned the duty of tailing collection vehicle for
this day is 4266.
Standard Pazking's collector at the David's Cafe lot on Lincoln Road. No tiniform of nay
kind. 0220/09
St8ndard PaJ'king° Financial Stability
Standard Parking Corporation (NASDAQ: STAN) operates approximately
1,900 parking facilities duroetgltont the United States and Canada. We
manage the patJCing facilities in propeRies of sli katds (office, mixed-use,
retail, residential, .sports stadium, specie( event, manicipai, hospital,
airport, commercial). Jn total, we oversx more than one million parking
spacers in over 300 cities. At the and of this section yon will fmd our
Consolidated Financial Statements years ended December 31. 2004, 2003,
and 2002 and below you wilt Emil our Fourth Quartet Operating Results
Press Release:
STANDARD PART~iG CORPORATION BEPORTS SOLID
FOURTH QIIARTER;
I FULIrYEAR 2005 EPS OF $1.39 B%CEEDS PRIOR GUIDANCE;
COMPANY EXPECTS ANOTHER STRONG PERFORMANCE IN
2006
CffiCAGO, 'TL -March 8, 2006 -Standard Parking Corporation
(NASDAQ: ST.4SI), one of the nation's largest providers of parking
menegemmt services, today amounted its results for the fourth quarter
end full-year 2005. A solid fourth quarter capped a strong 5scal 2005,
vieldin¢ CulFvear net income of $14.7 million and earnings per share of
20fl5 HiEhli¢hts I • ~,m~ (excluding reimbursed management conhact expanse) and
gross profit growth of 7% and 9%, respectively.
• EPS of $1.39, exceeded guidance of $1.27 - $1.32.
• Free cash flow of $26.5 million, or $2.51 per share.
• Total debt reduction of $17.6 million; net debt! EBITDA reduction from
3.3x to 2.'x.
• Sham repurchase of $6 million.
2006 GUldanee • EPS expected to be in a range of $1.50 - $1.60. o
• Pra-tsx income expected to increase more than 25 /o over 2005.
• Free cash flow expected to be $20 million or higher.
• Board authorization to repurohasc up to $7.5 million of common stock.
James A. Wilhelm, President error Chief Executive Officer, said, "We aze
Commenfsrv pleased to report 2005 earnings per spars that exceeded prior guidance.
As we started 2005, we were confident that the successful IPO end the
subsequent momentum from 2004 would carry us to our bast year ever.
Wa achieved this despite two significant challenges. Over the course of
the year, we recognized a $1.2 nu7lion loss, or ($0.11) per share, related to
a contract in Minnesota. In the second half of the year, we had to rebuild
our New Or!eeas parking operations is the aftermath of Humcane Katrina,
which impacted EPS by ($O.I6) per share. Despite these challenges, in
Request for Proposnls (R.FP) No. 19-05106
Clh' oCyliaml Beach
m MIAMlBEACH
® Standard Parkfng°
Financial Stabilin~
irtl year as a public company we achieved earnings per share. of
mpued with $0.42 in the prior year, which ex.:eeded our most
idance range of $1.27 - $132, Bode our actual results and our
reflect the use of our substantial NOls to shield from tax all of
book income. Our location retention rate for dre year improved
om 88% a year sga, and we had a net h~crease of 201ocations.
the year, wa also entered the last phase of Sarbaoes-Oxley
radon and testing of our internal controls, costing ($0.08) par
Fourtl- Ottarter I Gmss profit for the fourd quarter increased by 12% to $189 miUioa from
Ot)eratina Results $16.9 million a year ago. Excluding the $0.9 milfion ¢npaot ofHurricaae
Katrina sad $1.6 million is favorable insurance loss experience relating to
previous quarters is the current year, gross profit in the fourth qunrter
inrreased by 8%, driven by strong same Location revenue increases of boih
lease sad management iocations.
` General and ~*+t~+~tive expenses increased by $2,2 million or 26%
~ over the 2004 fourth quarter. General and administrative expenses iu the
fourth quarter of 2005 included SO.S million fur expenses roIated to the
Sound Perking acquisition and tetminafian of the planned acquisition of
, System Parking, and $0.2 million for ouGide consultants and auditors
related to Sarbancs-Oxley compliance.
Net inwme for lira 2005 fourth quarter was 54.1 million, or $039 per
i diluted share, as compared with S43 million, or 50.40 per diluted share, a
,, Year ago. F,anungs per share for the 2005 fourth quarter was impacted by
i ' Hurricane Katrina by ($0.10) per share, acquisition-related expenses of
($0.05) per shet'e and deferred tax expense of ($0.05) per share. Offsetting
these negative factors was $0.07 per share attributable to premium and
' interest income resulting from the partial repayment of a long-farm
receivable related to Bradley Airport, and $0.15 per share etnibutable ib
favorable insurance loss experience rotating to previous quarters in the
anrcot year.
Given the complexity of the Company's tax situation due to the large
amount of net operating foss canyfrnwards, a more meauingfhl measure of
year-over-year growd: is pre-tax income. Pre-tax income for the feurth
i quarter of 2005 was $0.46 per share, an increase of 28% over the fourth
Regaest for Proposals (t2F~ No. 17-05/06
City of MMiami Beach
m MIAMlBEACH
~
® Standard Parking'
Recent Developments
Financial Stability
quarter of 2004
Total revenue for the quarter, excluding reimbursement of management
contract oxpense, was up by 2% to $G2.0 million from S60.6 million a year
ago. Reimbursement of management contract expense is excluded
because its timing and etrtourt fluctuate substantially for reasons unrelated
to the Company's parking services revenie. Strong 15% growth in
management contract revenue was offset by a 5% decrease in lease
revenue, primarily due to lost business in New Orleans. Excluding Nets
Orleans, same location revenue increased 7% for lease contracts and
almost 16% for management oontraets.
Cash and cash equivalents at December 31, 2005 of $10.8 million wero
rolativc[y unchanged from a yeaz ago. Net of the change in, cash, free cash
flow of $12.0 million was generated during the quarter, all of wfiich was
used to pay down debt. Comegtteatly, despite an increase in prevailing
intarst rates, the Compauy was able to hold interest expense relatively flat
year-to-yeaz.
having made 50.2 million in net deficiency paymertB a year ago. For the
year, net reimbursement of deficiency payments totaked $1.5 million
comparod with the Company's having made $2:0 million of net deficiency
[n January 2006, the Company consummated its previously announced
acquisition of the 2 shuWe operations and 55 parking locations operated
by Sound Parking. Provisions in long-berm employment contracts L`tat the
Company entered into with Sound's fomaer principals incentlvize them to
retain the Company's existing contracts and to expand the Company's
presence in the States of Washingtrnr, Oregon, Idaho and Alaska.
Commenting on the Sound acquisition, Mr. Wilhelm said, "T'he
acquisition of Sound Perking gives us a solid anchor in the Pacific
Nordrwes[, and adding the principals of Sound Perking will enhance our
understanding of that marketplace. Working together, Standard Parking
can provide the capital, experience and resources to pursue some of the
estate developers and REITs. The Company's strong
Request for Proposals (ftFPj ~o. r7-US/U6
City Of Miami Beocb
~ MIAMIBEACH ~
i
Standard Parking°
Financial Stability
tivitb major real estate concerns such as Crescent, Hines, Tishman Speyer
and Prime Grroup Realty Tmst has eaabied rt to win tuw contracts or
renew existing contracts at:
Fountain Place, Dallas (Crescent Rea] Estate Equities) - an T.M. Pei
designed landmark building, comprising over 1.2 million square fat and
],200 parking spaces.
• One 1BM Plaza, Chicago (Prince Group Realty} - A premier building
designed by renowned architect Mies Van Der Rohe. The property
contains over 15 million square feet of office space end 850 parking
spaces.
• 200 Pack Avenge (the MetLife Building), New York (Tishman Speyer)
- a prime office building in midtown Manhatiam. The operating lease was
renewed fo- s multi year form.
One South Dearborn, Chicago (Hines) -anew office building
containing over 800,000 square feet of space and a 160 space garage,
Other notable contract developments during the quarter include:
• The Company wag awarded a contract to operate two valet locations, as
well es visitor and guest parking, at file Grand Flvatt is New York City, as
~ entry into the New York premier hotel market.
• Bank of America, an existing client for which Standard Parking operates
! over 125 properties, selected the Compete to operate its I,os Angeles
slmttle program. This program transports Bank of America emplo}reos
betweentinion Station and the Bank's various offices.
Full Year 2005 Results Grose profit for the fait year 2005 increased 9% to $69.8 million as
compered with $639 million for 2004 due to solid growth in same
location profit from both lease and management locations.
m MI~MIBEACH
General and administrative expetues for the year increased by l6% over
the samc peiod lest year due primanly to the additional costs of being a
public company, including $0.8 million related to Sarbaoes-Oxley
compliance, as well as $0.6 million in acquisition-related expenses. More
stguificant from a long term perspective, during the year the Company
invested significant resources to support growth initiatives.
I Operating income for the year was up by almost 20% to $23.6 million
from. $19 ~ mt7lion a year ear][er, although the mid-year 2004 IPO dces
not pwmit a clear year over year compariscn.
Request Col' Proposals (RFP) T•(o. !7.05/06
City of MFam[ Beach
® 5"tandartf Parking' Financial Stahilit)~
Cotaf revenue, exclud'mg reimbursed management contract expense, also '
acreased year over year by almost 7% to $248.0 mi0iomm in 2005 from '~
5232.5 million in 2(104. At the end of 2005, the Company operated 1,906
.ovations, a net increase of 20 during the year. The Ccmpany's retention
seta for the full year 2005 was 91%, compared with 88% in 2004, The
~eteMion race represents the percentage of locations retained for a tweWe
nonth period.
:spite! expenditures totaled $4.8 million in 2005, and the Company also
entered into $2.6 million of new capital lease obligations mended
primarrly ib fund the purchase of ~tuttle busses.
Free cash flow of $26.5 million was generated during 2005 of which $6A
million was used to repurchase shame and $20.5 million was used to pay
down debt. Approximately $8.6 million of this free cash flow was due to
Eluctuatione in working capital, tong-torn receivables end reserves,
resulting in underlying free cash flow generated by the business of
approximately 537.9 million. Net debt (total debt less cash) of $8L.3
million et year-and was below floe range of $85 - $95 million projected at
the beginning of the year.
Wdhotm concluded, "The Company's results for 2005 roflect that we era
performing as we set forth at the tic of the IPO. FJe am meeting the key
metrics by wf>ich we are meaeared -growth in gross profit sad
maintaining or increasing our retention rate. We ere signing new business
at a rate that exceeds lost business, and our new contracts on a per location
basis are more profitable than bnsinass we have not renewed. Our
performance has resulted in both EPS and cash flow increases that have
exceeded ow guidance range.
exceeds what vro had set forth at the lima of the IPO but because iL has
enabled us to pay down debt, realm value to shareholders, position
ourselves to oppornmistically pucsuv acgnisitions and invest in strategic
~ `"These shatagiv initiatives include the incubation of follow-0n services as
a means to increase carne location sales in the futures to the past we have
bean successful in developing transpaRation as an auxiliary busiuess and
i ~ we're reaping the benefits of that. We continue to look at other services
that will help oar clients control then costs and enable us to solidify our
clienerelationships across a broader base."
~ 2006 FfIIancial Outlook ~ Eammgs Per sham for fiscal year 2006 are expected to be in the range of
$1.50 - $1.60. This gnidaace reflects improving results in Now Orleans of
~ $0.06 per share. Offsetting the recovery in New Orleans will be the
ReQuest for Proposals (mCN'Y) rvo. r i-umuo
City of Miami Beach
m MiAMIBEACH
® standard ->g•
Financial Stability
Ilion compensation expense recognized in
t, estimated m be the equivalent of a ($0.04) per
income per share is expected to be in the range
re of 25°/a or more over 2005.
expects to record a $2.0 million, or ($0.? 9) per
.e resuttiog from the deduction of goodwill for
substantial reductions in the valuation allowance On Its
iet in fbture quartets. The Company expects its cash tax
;low 5% in 2006.
These guidance estimates assume 10.5 million diluted shares outstanding
and do not include the impact of any acquisitions or mergers that might be
completed during the year.
The Company articipates capital expenditores of $4 - $5 million during
2006.
Brea cash flow, after capital expenditures, is expected to be $20 million or
higher in 2006. The Company expects to continue using free cash flow to:
• Fuud additional growth
• Pay down deM
• Return value to shateholders
After evaluating the $26.5 million of free cash flow that fhe Company
generated in 2005, the Board has decided to authorize the Company to
expend up to 57.5 million in 2006 to return value bo its shareholders
ttuough stock repurchases, sub}act to lenders' consent and the Company's
compliance with applicable covenants and tests. Stock repurchases under
this program will partially offset the EPS impact of the charge incurred by
reason of the Company's adoption of FAS 1238.
iQ, or 2b%, of
tax and other
city ~•anted in
Request for proposals (I2Fp) No. 17-OS/OG
City of Miatni Beatb
m MIAMIBEACH
® Standard Parking°
Financial Stability
used a portion of its free cash flow to reduce
which lowered net debt W fiBITDA from 3.3x
to 2006 would result is a further de-levering
teatiai that its net debt to EBITDA ratio could
Ix by the end of 2006. Consequently, tbe
explore eltematives for re.5aancing ail or a
A.e nart of tlsia nrncx_ca. the Cmm~anv will
Coafarence Call ~ The Company's quarterly earnings cottference call will be held at 10:00
am (CST) on Thursday, Match 9, 2006 and will be available live and in
replay to all amlyst/investors through a webcast service. To listen to the
live call, individuals are directed to the Company's investor relations page
of tv„~v.staudardkarkina.cotn or ww,v.earnin¢SCOID at least IS miantes
prior lc the call is order to register, download and install any accessary
audio software. For those who cannot listen to the live broadcast, replays
will be available shortly after the call on either wabsite and can be
accessed for 30 days after the call
Standard Yarning is a leading aatioaal prodder of parking facility
management services. The Company provides an-site management
seevicess at multi-level aad surface parldag facilities for alt major
markets of the parking industry. The Company manages over 1,900
parking facilttiea, wntaining over one trillion parking spaces In close
to 300 cities across the United States and Canada, IacludEng parking-
related and shuttle bus operations setv[rg more than 60 tirporb.
•+set
More i>?lorntaNon about Standard Pinking is available at
vnan stnnrlnrdnnrkino.cnnt. You should not consA2fE the b1)'arntah07J~071
fe on the
htvestor
DISCLOSIJRE NOTICE: The information contained in tftis document is
as of March 8, 2006. The Company assumes no obligation to update any
forward-looking statements contained in this document as a result of new
information or furore events or developments.
This document and dte attachments coataia forward-looking information
about the Company's financial results that involve sabstatltiai risks and
uncertainties. You can identify these statements by the fact that tltey use
wotd$ such es "alttlClpate,° "eStllnate,n n~~,~n nproject;' °Intend,"
"plan," "believe;' "outlook," and outer words and terms of similar
Request for Proposals (Rl+'P) No. (7.05/06
City otMiaml Bcach
m MIAMiBEACH
® Stenda/d Pa//dng' Financial Stability
connection with any discussion of future operating or financial
x. Among the faetnlS diet could cause actual results to differ
are dte follovnng: an increase in owner-operated parking
hanger in pertains of air travel or automobile usage, including
which the Company's clients purchase iasnrance through us and the
Company's ability W saccessfnlly .menage self-insured losses; the
Company's ability to form end maintain relationships with large real estate
owners, managers aad developers; the Company's ability to provide
peaformance bonds on acceptable terms do gua:aatee rho Company's
performance under certain conracts; the loss of key employees; the
Company's ability to develop, deploy and utilize information technology;
the Company's ability to refinance the Company's indebtedness; the
Company's ability to consummate transactions and integrate newly
acquired contracts into the Company's operations; availability, burns and
deployment of capital; the amount of net operating losses, if any, the
Company may utilize in any year and the ability of Steamboat
Industries LI,C and its subsidiary to control dte Company's major
corporate decisions. A farther list and description of these risks,
uncertainties, and other matters can be ford in the Company's Annual
:report on Form LO-K for the fiscal year ended December 31, 2004, in its
poriodic roports on Forms 10-Q and 8-K, and in its Registration Statement
on Form S-1 (333-112652).
d###
Request for Proposals (I2FP) No.17-05!06
~ MiAMIBEACH Ciq•ofMiamiBeach
Consolidated Financial Statements
Standard Panting Corporation
Pears ended December 31, 2004, 2003 and 2002
With Report oflndependent Auditors
Standard Parking Corporation
ConsoIIdated Financial Statements
Years Ended December 31, 2004, 2003 and 2002
Contents
Report of Independeat Auditors 1
Consolidated Financial Statments
Consolidated Balance Sheets 2
Consolidated Statements of Operations 3
Consolidated Statements of Common Stockhoklers' Deficit 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Staiements 6
ERNST ~ YOU,NG • EfnSl $ 1MII,It (iY H 1`hJCr: ;5' 2 3:7'4,!:/:1:)
L•tx.ylya I! srr~ Wl,n4 n Wi
Rvpor( oflnAapandaN Raglstt:red Public Accounthig Finn
Bmrd of Directors
Slandmd parking Cwporotinn
We have aixlitatl the xccnmpanying consolidated balance sheets of Starnlard Parking CotporaUon (Otc
'Y:umpauy") as oCDeceniber 3t, 206M1 and 2003, alas the related consolidated statcnunts of gxtwkuw,
swckholrkrs` deficit aieA rash flows for each of Ihc three years in tha period arded Decembw a 1, 2004.Our atidila
also included the financial statanan schedule listed in flu index nr Item IS(n). 77tese fiaeneinl stacmatts and
sclt~Ylule are the responsibility of tho Confirm%'s tnnnaganent. Otu' responcihility is to express nn gpinion on these
6iinncial smrantents and sdsctlulc bawd on rnu audits.
14e contluctcd our audits ut accortlwwe with Ihc stmxlards oCtlte PtUilie Conrpauy Atxounling Oversiglu
board (llnited Stntas). 71u>sc standards require that wr plau wid pafArm the audit to obmin rcnsotwble asstuentt
about wttethar tha Grnncial statements arc IFec of mnlcrial misatnlanent. An ntulh inchrdcs considctnlion of iutental
etmrrol truer fiuancial reporting as a basis for dasiytritrg audit procedures t)tat ere npprnpriuu in the circumstances,
but nor For the purpose of esprcssing nn npinian ul'tfu: clTedivtauss of the Company's internal control over
financial reporting. Aceortlingly, \ve express mt such sminion. An audit includes examining, on a tear basis,
evidetux: supporting the atnonms and discltuurcs in We financial statements, usocslrrg Ux accounting principles
naeA and signlficxnt cstitnates :Wade by mm~agcmait, and evaluating Aic meroll financial smtament presentation.
We believe thm our audits provitk a reomrubla basis for our opinion.
ht our opinion, the consolidated fiiranclal staunruerus rc[e[red to above prescin fairly, in all maurixl
reapecLs, thn anisalldated financial pasitian of Uu C:orq>Any at December 3l, 2004 atui 2003, and Uu consolidated
results of its ap~rtifoos and its conxolidamd cash J1ows for arch of the tlrrco years in tlw period ended Tkcember 31,
2DD4, in cmikmnity e•iUt U.S. generally accepted accounting principks. Alm, in our opinion, the related finairciai
statenwnt sclwdule, when considered in rotation to-0u boric Rtmstcinl statemerna taker as a whole, presents fairly, in
all material rsupl:cts, the inCormatimr act forUi Utcrein.
~~~ n.
.Y ~,,,~ L i, ~'
(]ticago, ai
March I M1, 2005
•\ ..\L~nhrr Yna lirr of il:"1 w Yr.:m~ CLdwl
STANDARD PARKING CORPORATION
CONSOLIDATED BALA.~ICE SHEETS
(ix thoxsmrdss exreptJors/lore arApuslrore dMOj
]'kceaber 3l, _
2004 1001
A891iTS
LLrrtM esselc S 10,360 f 8,470
Cuh sod eesh equlvstuls 34,608 30,923
Notu end ecmuma seeelvsble, net
lk 2330 1,436
s
Vrepeid expmsu end eopp
47$98 10,829
Taal mrnatanets
Lasdsolds and equipment. 23.735 20,804
Equipment 17,657 17,730
Itmehold impmvemmts 34,815 34.835
Lnttholde 2.355 560
Coutructkon is pro8mx 71,622 71,949
Lm acmm0lom deprechl3on and enwrflsalbn (62,141) ST O)
959
:6,451 15,
Olbu mete: 7,317 3,43[
Lmd'npn rwelrebles, mt 1,816 2,090
i Adveeces end depesl3s 118,342 117,390
Omdwlli 3,&6 ! 7yEE6
intaogf0te end o0sas estttr, ne3
131,323 172,797
S 195,102 S 189315
7onlmW
LTARRdTIB'S A.tlD STOCIOiOLDERS' EQNTY (IISSICI3)
Cupcm habddl°'
i S 26,107 S 2A971
Aemuetr payable 4,871 3,748
Au~Rt`s A,593 6,959
Coespcnat[oe and pyro0 wi8dwldiags 1,760 2,289
i Pragerty. pV'mll and otbu tote 10,32A 7,957
Acwm inuumse and experuu
Il 2A8 1,268
l
Amrum spaniel cheriu
Qurern poNmr of ohllgetloacvndo credit apwnenn sad other 773
2
739 690
2
130
Caams portion of capitol lute o1dlEs3ims , ,
55,4t3 50.072
Tohl mrtmtlkDJilies
I,eaB•term borrowing, esduNoBcurrtal portion: 99,3]7 131,SEb
Obliestlon undo crmReiceaneob 4.120 2,268
I Cepinl Iasse oblfialdona ~ 2,601 3.385
Other
106,238 158,239
' Odnt long-term Oab8ltks IE,III
I 19,77b
56$99
Cmvesllbls ndeanebb preform slink saluD 60389
Rmeuuble prefertm aleck, solo C - 10,712
' Common Brook subject to putlgll d;A1s; 3.01 sFiras iYUed sad ounnndurS
Couundaatockbo[daa' squid (defioitx
Conmm asock po value f.003 pcr share; {2,000,300 shoes wthorittd; 10.46?,003 sherca beam and oWnenNnB
W
as ofDecember 3t, 2004, em comrmn Weis pvvalae 51.00 pct sMn, 3,ODD sherea wtboriaed; IG3 aNro issu 1
~ 10
and ouWnding in 2x03 393,563 ]5,222
Addit6uml paid-bs upin! fl6 (233)
M.cumsisnd dho comprehensive Income(loss)
E it78,352) (380992)
[
Aeeurmntm deOo
Tent conunoo sloc3maidars'agnhy (da6cil) 13339 ~ 1166.002)
Tool IaMlitiee end eammon stoekholden' egmsy (da0nit) S 195,102 S 189,585
SeeNotes to Consolidated Fint3ncial Ststemenu,
STANDARD PARIQA'G CORPORATION
CONSOLIDATED STATLtMENTS OF OP7TRATIONS
Rn thausnnds, except jdr chars and per share data)
YnnLoded Deecmber 3l ,
z6w zoo3 xa6x
Arlrin6 senlees nuance:
Lase eontmeh S 148,712 S U8,68I S 142,376
Mnmigemeatnonhecie S3,7J2 76,613 7&029
Itolnibtusaneai of matngemrntcmtreG ezpuse 331,171 370,247 3x6,(46
Total rcvmun 363,631 341537 S1655L
Cos¢ end oxpdues:
Cost o[pulling swixc:
].nse manage 134,348 121,153 128,871
Management mnimcr 34,029 29A39 33,201
pilmbataedinoegaaenl mnhaet expeaae 331,17L 330,243 326,U6
Total muofputing ecrviw 499,748 484,835 490j18
Uroac proN
Lesm mntracr F4~04 13528 1350.5
Mactaeeomt mehAgs 49,683 47,17/ 4x,626
Toml gross profit 41,887 60,702 36,133
6anuel and admialstntive 33,470 32y07 30,309
DeptaiM(m and emcAbetlon 4,937 7,501 7314
SpeeW chergca - - [,033 1,897
Maeegemesit 9eapermtoonipmy 1.300 3,000 1.900
Non.;esb stink opfioa mmpemMloo sxpense(L) 2,299 - -
VNuaNott dlp~nme nlerod b bng-rrm wcivahks - 2,610 -
Torl msr etid expenem 54],974 131,948 333,978
Opentiog income !9,661 13,589 12,373
other ezpeoses (tocomek
lateteu expense 13369 16,797 16,246
fakrmlinmate (334) (238) (281)
Qein on actinguithmcntofdebl cad oaKr (3,832) (1.737) -
9,003 14,802 13,965
Oeln(lou)bePom mimrNy inrnuaad income tutus 10,61E (1,211) (3,192) '
341aority iatrxrt 349 317 l80
LMame lac expmw(bmeilt) (1125 411 252
I4e1 income (bas) be6ve pse}brrcd conk divldmde end iracase in vatueoPmmmon Hoek
Jubjectm puVu¢ 10,121 (1,981) (3.824)
Pnkrrcd stack d'rvid:ada (7243) 115,630) (13,140)
Imreese is vdueofcotweoo smckwbjee[to pvVeell (536) (1102f (970)
Nd Jomtm (!or) S 2,640 S 118,853) S (18,334)
Common 91oek Ilan:
Na lonmr per oomman where:
Bas's S 0.40 S - S -
Dilnted S 0.42 S - S -
1Yelghud avenge mimooa flares oulehrAin~
Basec . 6,w0,389 - -
DiMed ~ 6,289,591 - -
(I) Non-cash stock option compratsa5o¢ expense of 52,299 reletcs entirely ro genetat and admi nistrative expense
See Notes to Coasolidated Financial Statements.
3
STANIDARD PARKIIVG CORPORATION
CONSOLIDATED STATEMENTS OF COALYION STOG70i0LDERS' (DEF7CTi') EQUITY
(!n iliousnndf, ercepi jot slfare and per stare Anin)
Ae<eaolhlNl
l Oth
b
er.
AJdlt
na
Pald-Ia Compreheuive
A<enmolatcd
Gplfd ~Lotz}incomc DeOdt Total
Gnomon Stock
Number of
T002
1 Shat<z YarVeWe
3 S I S 11,422 (E03)
26
S (143,EOS) S
(133,181)
,
BNeabe (dafidt)atluwary .
Notbws before preScrted slack
divldmds hod tneresae In value of (3 gp,4) {3,824)
mrman stock aebjat b po4t+li
FOroign CORenay V&CI<ISOn
adjushtveb
159
139
(3,663)
Compmhemira loss
Preferred sbrk dlvi0aods (13,140) (13,340)
Inetnasa fa value ofcommon stork (970) (970)
snbjeetto putkall
Exohenge ofstrin CPnRrtcd bYock
ck
m
St 3.806 3,800
o
brides D Pm
rsed
Octants (d<Odl)atIleem,ha 31, 2002 26.3 1 f4222 (6M) (!62,139) (141,560)
Net loo before ptelhtred stork
dividends end lnrsease in vNne of (l,ggl) (1,981)
oommoa stook aubleer b pu7ee8
Poreigo artanlyitmKiellon
adjastroenu 411 411
(1,570)
Comprr3cos(vc loos
Yre&rted stock divideede (f 5,630) (15,630)
lncrenaeLvhlue otcotnrwn stock (1242) !1242)
aobjcctlo ptd/aU
31
2003
D
3 S 15,T22 (233)
Tb
(180,99T)
(164002)
,
camba
}]stance (de11ai0N .
Nat Incama bebm prdevad stook
dtaldertdsaod loclnueklvalue of 10,42! 10,42[
eatmwn atak mb}aU ro prN/cali
Fo<elgo nnseecy IraedaHon
349
349
s4(nalmems
Comprthemive bttomh 10,770
Pmtsrtad atockd(viBends 7,N3 (7,243) -
Increuc Ia valoo of eoawoo atoll
' (138) (3383
subjeG ro pua
dl
RsdarMlEon o(sonverObb redemable
36
398
56
198
pmfemd ztoek, amlw D , ,
andempilon of redeemable preferteb 60
189 60,389
Rock, attics C ,
Noto murrcd by onr parent aomlany
rtlated ro n+pwchaao of comroonnod:
3
000 5,000
wbject!o pat/all rlgMz ,
2
299 2,299
NeMCash stoek~dlzed compemefian ,
Rademptiou of~nnnon roeL• (26.3) (1) i -
Itsneeaofcaraoanatook 5,456,:92 3 - 1
Nct pta<eds @wo Initial public
699
OCO 1 d6
S
000
46,204
oftb+ing ,
,
,
T14
4
Lwaem ofstadc 8ranrs ISA4
-
1fA 100
ezereiae of#od options
P
cecde f 15,7GT -
ro
rom
Balance(deficBS atI)ea,abar 31, T004 :0.478,003 S 10 S 193.363 S H6 S (178,352) S 15.139
See Notes to Consolidated Financial Statements.
4 ~
STANDARD PARKtNG CORPORATION
CONSOLIDATED STATE~NTS OF CASH FLOW5
(ta tlidadrmd9, crept forshare dad pa Skdrr AdG+I
Y<nrBndndD<tt mber 31,
3004 3003 2082
S 10,431 S (1,98.) 8 (3.624)
6,957 7,301 7,334
379 3,267 3,049
lPls 1,199 616
2,313 - -
- 3.650 -
2,381 - -
(6707) (1,172) -
464 (1,029) 799
- (383) -
(6.075) (134Q 7706
(694) 163 Hen
([6Y) 1,640 (63261
1,(76 568 (14317)
~RI2 3.804 8.290
Helodr provldcd by opmatin6acOviOw 11,370 p,601 3,613 I i
3mwtlM utlvltla
(1,376)
(1,E12)
(1,846)
Purrt+em o[lewelroldimd nquiprlbat
d (644) (709) (612)
a
i Caalogenl purchwe pryow
linlush nand Mitawtdoien)vi6a (3,0331 (7321) [.;416) .
]nna^dnB eeMNlw 46,709 - -
NctprouedsAOmv~0)dpihllco7laioi 1W ._ - I
Paassda Iran s%crebe o[rtook opdvm
t
/
)Id (6,330) - ~
-
iht
w
6eporcbmofmam°a sack euttjncl to put 332 -
PrOnesda from antlann boaowipa 34356 4.300 1,000
Proceadsfrom woior uedll Scidry (40.630) - -
pgmeNS On eenioren:d118etiCNy (143) (54) (394) '
~Paymams oa lone~tum Doaoainec (333) (687) (883) i
hyrttnls on)dnt rescue 6ortovrio8s 11,409) (3.967) (119)
Pgaenbofdcbllwmcsceala (3873) 0994) 09u71
9aymnsa a.aWlLL lawn
S'spachwn vt l4%wnlaraahordleaad ee~ond Ocn row (37.734) ([2.413) (230D)
Rsdemplion ofprefeusd abck
1kt Whnasd la llnwdo6 eelWhiw _ (7,807) (9,318} (2,675)
ulr
leots
ah 349 411 139
M
a
EReetoP eachstBe swtstlwBnan cwh wad e4
)auseas(desrwse)in a46 and cwh egvlvaants
p
wr
i
( 1,890
8,470 331]
6,153 (1,4441
7,800
i
eiion
nec
Y
i Cashwdcwh eyutvalmuel
i
f f 10,360 f 8,470 S 6.133
a
yar
Csah ndesfh equlvslrnbsten
(Asti pall f°r° S 14,796 f 14y01 Y 16,6.36 ~ '
islamal 140 723 370 I
In°emetsxw
S°P4lrmaal8l diulmurts of mm-ruh ulivity: f 3,076' S 1,412 5 6,SA7
Dem iawed ex opitnl ;ewe abli6alioro (60,369) - (8,800)
Ikdemplloa oPrtdevioe6le peC<md sloei~aerlesC 396)
(16 - -
6edanp0on of canwrtlDla radeembin psefe~red smelt erawD ,
Nae momcd by oa persal corvp<7y rHelW to apafchaw ofMmolm staksebjeG to 7nucW 000 - -
r181w
i
D
f
aed a
al• 3,
- - 3,000 i
es
pre
e
l
Gawscs aF lB%senier arnvnAbfa redamsble asr - - (91,173)
Sedemptwn o! 9 1/4% ae°gr rvbadianled nolw
373
3,747
6L,606
Gauwee oPl4%amio: snhwdiaeled neccod lien roar - 33A00
Iaswnce oC 1 B%w+da tonwnibk ;sdmmebm mrlw D prtfened amai: - - 16,676
principal, mleled :o dsDt rwplalwiion
~, Cen7in6 vdue b excw of
See Notes to Consoli6atcd Flnnncisl Statements.
5
STANDARD PARKIIVG CORPORATION
NOTES TO CONSOLIDAT70D FWANCIAL STATEMENTS
Years Ended December 32, 2004, 2003 artd 2002
(In tJiousanAs exnpt sknre anAper shore Ante)
Note A. SignitinnE Accounting Policies
Standard perking Corporation ("Standud" or "the Company', and its subsidiaries and affiliates manage, operate and deve]op
parking properties Ououghout the United States and Canada. The Company is amajority-owned subsidiary of Steamboat
Holdings. 'the Company provides an-site managemrnt sesvicas at multi-lava) end surfbw facilities for ail major markets of the
parking industry. The Competrymanages approximately 1,896 parking facilities, containing approximately 1,026,336 parkhtg
spaces in 298 cities across tba United States and Cazreda.
PrJnclptrs ofConsolidatian
The consolidated fmsncial atatemrnts include the accotints of the Company, its wholly owned subsidiaries, and joint vanturss
in which the Company has more than 50% ownership interost. Minority interest recorded in the corrsolldated statement of
operations is the joint venture paAner'snon-controlling interest in wnsolidatad jaini vaMnres. lnvestmente in join[ ventures
whore the Company has a 50% or lass non-cmntrolling ownership interact ere reported on the equity method. Ali significant
intercompany profits, trensactions and balances have barn eliminated in consolideioa.
ParkfirgRevenue
The Company recognizes gross receipts from loosed locations management fees and amounts attributable to ancillary aervicas
earned from management contract properties as parking revenue es the related services are provided. Also included in parking
revenue are gains art sales of parking contracts and development fees.
Cast afParking Sarvlces
The Company recognizes costs for leases and noo-reiminnsed costs from managed faciGtiw es case of parking services. Cost of
perking services consists primarily of rent and payroll related cosh
AdvertlsingCas#
Advertising costs are expensed as inetmrd and are included in general and administrative expenses. Advertising expenses
aggregated 5456, 5412 end S2g6 for 2004, 2003 and 2002 rrspeotivaly.
Stock Bored Comperuatlon
The Company has elected ro follow Acernmting Principles Board Opinion No. 2i, AcooaMtngfor Stoeklssued to Employees,
end rotated interprdations in accounting for the crock options granted to employees and directors. Acwrdingly, employee and
director compensation expense is recognized only for those options which price is less then fair market value atthe
measurement date. The Compatry has adopted the disclosure-only provisions of SFAS No, 123, Accounting jar Stcc,E-Based
Compansotlon
Cash acrd Carp Egrrivolantr
Leah equivalarts reprosent funds tempo roximates marttdrvamlua rrrarkd latmrments with maturities of owe to five days. Cash
equivalents are stated at cost, which app
Atlowana, for Dorrbtfut Accounts
Accomu receivable, net of the allovrence for doubtfltl accomts, represents our estimate of Ore amount that utlimately wifl be
realized in ash. ?vfarlagrrnent reviews the adequacy of its eilowance for doubff6l aceounts on an ongoing basis, using
historic! collection trends, aging of receivahks, and a review of specific acoomrts, and makes adjustmems in the allowance sa
necessary. Changes in economic cwtdidom or other circumstances could have an impact on the collection of existlrtg
receivable balanrxs or fidare allowance ceasiderations. As ofDecember 31, 2004 wad 2003, the Company's allowance for
doubtful atxxwnu was $3.1 million and 53.3 million, resptxtively
Leaseholds and i>qutpme+rt
Leaseholds, equipment and iesaehold improvements aro stated et coat. Leaseholds (cost of parking cenhads) am amortized on
a straight-line basis over the average contract ]ifs of 10 ycare. Equipment is depreciated on ells straight-line basis over the
estimated »seful rives of approximately 5 yrsra on avuaga Leasehold improv~errts are amortized on the shaighFlina basis
over the terms of the respective lasses or the service lives of the improvements, whichever is shorter (average ofapproximately
7 years). Asseq under apical leases are amortized an the sraight-line basis over the terms of the rapectiva leases or the
service lives of the easel. Depcecietion end amortization includes losses (gains) on abandonmatts of leaseholds end equipment
of $89, $364 end SO in 2004, 2003 and 2002, respatrvaly. Deprecladcn expense was 55,801, 56914 end 56,983 br 2004, 2003
end 2002 respecively.
Goodwll
On 7enuary 1, 2002, the Company adopted Statement ofFinancial Aeeomting Standards ("SFAS'~ No. 142, Goodwill and
Other fitarrgible.lssets, which eliminates the amortization of goodwill and Instead roquira that goodwill ba tested for
impairment at least atmually. The traasifioael impairment test ~ 2002 and the annual Impairment test of goodwill made by the
company in the 6otuth quarter Sor the yarn coded 2004, 2003 and 2002, respadively, did not require welt ustmanf to the carrying
value of our goodwill.
Longlived and Finite-Livedlntangibladssets
Long-lived assets sad identifiable i¢ttengibles with finite iives aro reviowed for intpaimrent whenever Quarts or changes is
circurnstemas indicate that the carrying amount of an asset may sot be rewverable. Recoverability of assots io be held end
used is masured by a comparison of the carrying amount of nn asset a<group of resets to future und'itconnted ttet cash flows
expected m be gattaated by the asset a group of assets. Jf such assets are considered to be impaired, the impairment
recegnized it measured by the emourd by which the carrying amoum of the assets aaceads the fair vahte of the assets. Assets to
be disposed of ere reported at the lower of the arrylag amount or fair value less costs to self,
par rho provisions of SFAS No. I42, the Company's finite ]ived intangible assets, wnsistiag primarily of non•compete
agreements, are asoRized on a straight line basis over the term ofthe respective agreements whiclt range lion 5 to 10 years.
(Sae Note B}
Deb! Lssr+mtca Cons
11te costs of obtaining fmanciag aro apitalized and amortized as interest expanse over the teen of the respective fmancing
using a mahod which approximates the itttaest method. Debt issuance costs of $1930, $3,920 and $2,132 at Deccmba 31,
2004, 2003 and 2002, respectively, are included in intangibles and other assets in the consolidated balance sheeU surd ere
reflected eat of accumulated amortization of 54,004, $3,9i 1 end $3,659 at December 31, 2004, 2003 wad 2002, respectively.
' ---I
Flnoncia! Insrrronexts
Tha carrying values of cash, accouns receivable end accounts payable ere reasonable estimatae ofthev fair value due to the
short-tens nature ofthese financial insnwnents. Tho Company's 9'/A/o Senior Snbordinsted Notes arc included in'he
Consolidated Balance Sheet at $48,877, which repmseers d'z aggregate face value of the rotes. Bstimerod market value at
December 31,2004 approximates fete value for the 9%,°/. notes. t30tet long-temt dab[ has a carrying value flint approximates
fair value because dtese instruments bear interest at market ntes.
Foretgx Curnncy T1'arnlaliox
The functional cuneacy ofthe Company's foreign opemtiona is the local carreney. Accordingly, assets and liabilities of the
Company's foreign operations are translated from fomign currencies into U.S. dollars at the rtes in effect on the balance sheet
data while income and expenses era translated at the wtighted•average exchange rates forthe year. Adjustintrds resulting from
the tnreslations of foreign currmcY financial statements era accumulated and classified as a separate component of
stackttolders' deficit.
Interest rate caps
VJa use a variable rate senior cradlt kcility to finance our operations. This facility exposes us m variability in iatcrnst
Payments due to changes inurterest rates, if iturrest raps i>xrease, interest expense increases end commsaly, if interestrates
decrease, interest expense also decreases. We beiieve that it is prudent to limit the axposum of an increase in interest rates.
To mast Otis abjectivq we entered into two interest rata cap haosactious with LeSaEe Bank National Association ("LaSatle'~,
allowing us to continue to telce advantage of LIBOR based prising under our Gledit Agreement while hedging our interest rate
exposnro on a portion of our boanwinga order the CYedit Agreement ("Rate Cap Transactions'. Urtder each Rate Cap
Transaction, vin wit I receive paymeMa from LaSalle et the end of each quarterly period to the extent that the prevailing three
month LIBOR during that period exceeds our cap rate of2S°r6. The first Rate Cap lransaCflon ceps our interact rate on a 530.0
million priwipsf balance at 2S% for s total of 18 months. The second Rate Cap ltansacflan caps av interest rata on a $I5.0
million principal balance at 2.5% for a total of nine months. Each Rate Cap Transaction will begin as of Jmuery I2, 2005 and
wilt scale each quarter on a date that coincides with our quartmrly iruuest payment dates under the credit agreement. The
uuderlyiog terms of the lnteraet rate cap, including the notional amounts, the duration and reset dates am identical m the
associated deM ir>smrments and therofore hedging rosulta in no Inef&ctiveness. The interratnte caps am reported at their feu
values and are included es prcpeid and other assets on the face of the consolidated belmea sheet.
Usa of FsMmates
The preperatioa of financial statements in conformity with accounting prinaples generally accepted in the United Stales
reouira management to matte estimates end assumptions Ebel effect the amoums reported m tfie financial statements and
socomparrying Woks. Actual results could differ from those estimates.
Insurance Reserwzr
The Company purdtasas comprehensive liability Insurance covering certain claims ffiat occur at parking ibcilities the Company
leases or menages. Tn addition, the Company purchases umbrella/excess liability wverage. The Company's various liability
insurance policies have deductible of up ro $250,000 that must 6e tnG before the insurance companies ate required to
reimburse the Canpany for costs ivcu[red relating ro covered claims. As a result, roe Company is, in affect, self-insured for ell
claims up to the deductible levels. The Company applies the provisions of SFAS No. 5, Accovnt(ngfor Contingencies, in
determining the timing and amount of expense recognition associaed with claims against the Compmy. The expense
recognition is based upon the Company's dettrtnination of en anfavorabla outcome of a claim being deemed as probable and
capable of being reasonably estimateJ, as definod in SFAS No. 5. This daknainaaon requires the use of judgment In both the
estimation of probability and the amount to be recognized as an expense. The Company utilizes historical claims experience
along with regular input from tltvd party insurance advisors in determining the rcgatred level of insurance reserves. lhttnre
information regarding hisrorical loss mcperience may require changes to the ravel of insurance reserves and could rault in
increased expense recognition is the firture.
Lllfga!(on
The Company is subject to litigation io the normal aurae of our business The Company applies fha provisions of SFAS
No. 5, "Accauating for Continganeias". in deetmin{ng the timing end amomrt of expense recognition associated with regal
claims against us Management uses guidance from latamal and extetaeJ legal wrmael on the potential outcome of litigation in
determining the need to record liabilities for potential losses and the disclosure of pending legal claims. (SeeNote In.
Recen! RceotmNug i'ronororcemenls
1n December 2004, the F'utearael Aaounting Standards Board (FASB) issued FASB Statemetd No. 123 (revised 2004). Sharo-
Based Paymmrt, which is a rovision of FASB Statement No. 123, ,iccounlfngfor Stoc,~Based Compantartan. Statement 123(8)
supersedes APB Opinion No. 25, RccounHngfor Stocklssnad !o Employees, rnd amends FASB Statement No. 95, Statement of
Cash Flows. Gencrelly, the approach in Statement 123(8) is similar to the approach described in Statemem 123. Aoweva,
Stakmem 123(8) ragalres all share-based payments ro employo~, including grants of employee atocir options, m be
recn8rized in the income statamerd based on ffieu fair values Pro fomta ducJosuro is no longer an aRemative. Siakmrnt
123(8) must be adopkd no Inter than Jufy 1, 2005. P!e expect ro adopt Statement 123(R) on July 1, 2005.
We plan ro adopt Statement 123 using the modified-prospective method. Arxordingly, the adoption of Statement 123 (R )'s
fhir valna method wilt have a significant impact ou our results of operations, sltluough it will have no overall impact on nor
financial position. The impact of adoption of Statemrnt 123 (R) cannot ha predicted at this tuna beause it will depend on
levels of share-based payments granted in the fulcra However, based upon rho current share based peymems the impact wavid
equate to apptroximekly 5320 in additional cosk on en annual basis.
i
~ I
__ ~--'
StocbBased Compensation
We are required undo SFAS No. 123, to disclose pm forma information regard`1g option granffi made to our employees based
on speci5c valuation iccluilques that moduee asdmated compemetion charges Tha pro Pomta information is as follows (in
thousands, aoccept pet-ahara amounts):
Drc<mber 3l _
2COd 2003 1002
(la Nouuo ds exapt for p<r ahsre fists)
Nd income (loss)-as reported S 2,640 $ (18,853) S (18,334)
Add: Non-cash stock option compensation expense included in -
the reported nd income, net of related tax effects 2299 -
DeducC Smelt-based employee compensation expense using the
>eir value method net of related tax effects 2 495
$ 2 444 -
S (18 853) 8 (18,334)
Pro-forma net income (loss)
Basic net income pu carunon ahara sa reported $ .44 S - $
Basic pto-forma net income per comrnoir sham $ .4l
42 S - $ -
$ - S
Dihrtednet income per common sharo- as reported $ .
3 $ - $ -
Diluted pro-forma net income per common sham 9
S .
The estimated weighted average fiir value of the options granted was $6A2 for 2004 option grants, using the Black-Scholes
option pricing model with rho foltowiag assumptions: weightod average dividend yield was Oo/a, weighted average volatility of
SOYo wm wed based upon companus in our Industry as our stock v newly issued, weighrod nvengo risk free intuwt based on
zero-coupon U.S. govrmment issues with a remaining term equal m the expected life of the option of 2.77Yo, and a weiglttyd
avenge expected term of 7 years.
We issued stock grants totaling 15,044 shares to our outside Direcmrs. On Juno 2, 2004, 8,696 shares were issued in
conjmction with our initial public o1&atrg et the NASDAQ market closing price of $13.09 per shah. On December 27, 2044,
we issued 6,348 shares at the NASDAQ market closing price of S IS.76 per share The total value of the grants, $2I4 thousand,
was retarded as compensation and is included in our general and administrative expanses for the year ended December 3l,
2004•
ReclnaslJ7caAarrs
Certain amounts previously presented in the fmanciat statements of prior puieds have been reelaasifred to conform m current
Peer presentation.
10
Note B. Net Tacoma Per Commoa Shwa
Tn accordance with SFAS No.128, "Earnings Per Share," basic net income per sham is computed by dividing net income by the
weighted daisy average member of shams of common stack outstanding during the period. Tha weighted daily average munbcr
of shahs ofcotnmon smek excludes shares that have been exercised prior to vesting and aro subjtct to repw-chase by us,
Diluted net irwome per share is based upon the weighted daily average mmber of shares of common static Dutstanding for the
period plus dilutive potential common shercs, including stock options using the treasury-stock medlod.
The following table sets forth the computation of basic asd diluted Dat income per share:
Ycnr Ended
Daember7I, Drcenber 3l, Ikernber 3l,
1001 2ad7(11 Iaar (1)
(In tbouaaods escepr for aWre aaU per abate UaNJ
Numuator:
Net income (loss} $ 2,640 $ (18,853) $ (18,334)
Denominator:
Denominator for basic net income per common share:
V/eighted average basic abates mtstand ing 6,040,389 - -
Weightedaverageofdilutedaharcsoutstanding 6,289,591 - -
Basicnetincomepercommoasllam $ 0.44 $ - $ -
Dilutivenet Income par common sham $ 0.42 $ - $ -
(1) Earnings per share was not calan[sted for 2003 end 2002 as the number of oubtanding shares were nominal
Note C. Non-Cash Stock Compensation E=peose
In accardenea with the 2001 Option Plan, outstanding options to purchase 503.86 shares of Series D preferred stuck
immediaroly became fully vested and exercisable upon complatiwl of our IPO. The vested Series D pmferred stock options
were thm converted mto options m purchase an aggregate of 444,836 shares ofour common stock which became IUDy vested
upon completion of onr IPO.
We recorded $23 million innon-cash stock compensation expense which represented the difference between the feirmarket
value of $1 I.50 per sham (the IPO price per sham) and the exercise pricy of $6.34 plu sham on the 444,836 shares converted to
our common stock. Lz addition, we issued 4,414 options at m exorcise price of $11.50, which ware immedisteIy vested, on
October 29, 2004 when the fair market value was $12.89 per share and wa recorded the difference as compmsation axpmsa
11 i
Note D. Spoclal Charges
Nconsopl{dnted sfat~emarrt oof operations [ the years ended Docembnr 3I,~2003 and 1A02 are the fo~IlowinB C~PC21~~~~ ~
unless otherwise stated):
Costs related to Ote exchange offering
Coats related to refiuandng
Employee severance costs
Retroactive prior period iDSUrance adjuahneDts
Provision (reverse[) for lteadquerters reorganization
Incmnentai integration costa and other
Parent company expenses
Total special charges
a003 2002
tla taousaad+)
$ - $ 9B2
343 -
156 391
- 2l5
(320)
256 1,329
300 300
$ 1,055 $ 2.897
Supplemental Dlselosure--Spedal Charges
Accnrcd at begin.'u°g ofyear
Paid during year
Accrued at end ofyear {1)
For Taa ]tar $adut Du<mber 3t.
zee zoos zoez
(In awua<aar)
$ 1268 $ 1602 $ (l0,/S7)
(2zH) ._~_)
$ 1,040 $ 1,268 $ 1,870
(1) 'Ric 2004 yearvend balance includes $792 which is included in oar long-tent liabilities and consists of fufuro tent
obligations owed for en abandoned facility.
Tn 2003, cools of 5343 wero incumd rotated to evaluation ofreGDancing eltemativesveran0oeeosts of $IS~ ~ the ~~
oorrrpagy, 5256 in legal costs inctured on r;ontects terminated in prior Yeas
In 2002, oasts of $982 wero incurred for the registration of the 14°k senior subordinated secoDd lien notes, $391 in severance
for key menagemant personnel and rogional administrative persooxi and$2l5 for insurance costs in accordance with SRISA
requirements. The $1,329 of iocrementel integration costs and other consists of 5816 in legal and sattlemeot costs incurred o0
contacts terminated iu prior years and $513 m prior period rent end other costs~d~S a00es theme actual costs i~ r cd were less
tympany. The $(320) is a partial reversal of a provision for heedquartats reoig
then anticipated
12
Note 1;. Nat Geln ffom Eztingni8mrent ofDebf and Other
Tire net gain from extinguishment of debt consists of the following (in d]ousandty.
(LOSS) gain:
Prepayment Fenalty on former senior credit facility
Professional fens routed to extmguishmmt of debt
Additional premimn an 14°h?~Iotes
Purchase of common stodr options
Wclte-off of debt issuance costs raleted to former senior
credit facility
Write-offal carrying value in excess ofprincipaf elated
to 14°kNates
Gain an repurehasc of 14°k Notes
Net gain from extingoishment of debt snd other
Note F. Borrowing Arrangements
Long-term borrowings, fn order of preference, consist of
Senior CreditFnciltry
Senior Subordinated Second L1enNotro
Senior Subordinated Notes
Carrying value is excess of principal
Joffit vcnturo debuaures
Capital lease obligafwtts
Obligations on Seller notes and other
Less arrant portion
pecember]i, Drttmber 3l,
rgpd 2003
(Ie tbouaod~)
$ (640) $ -
(310) -
(740) -
(300) -
(2,385) -
8,207 L,172
585
$ 3,832 $ 1,757
Amount Oenhadiae
Iemrot
RatrGl nu Data Decrmher31.2004 December ]h 3007
Qa thoogaN)
Various Jane 2007 $ 50,000 $ 36,100
f4
00% Decembet2006 - 57,455
.
9'/°% )yfereh2008 48,877 48,877
Variotty Various 640 10,155
00
11 Various 1,308 1.~
.
Various Various 6,859 4,418
Various Various 2,066 2,211
109,750 161,079
3,512 2,840
$ IOb.238 $ 158,239.
In cmrjunction with our initial public oflerlDg, or. June 2 20~. we rope O0t outstanding 14% Senior Subordinated
Seoond Lien :Motes ("14%Notea'~ for S57.7 million. The 14% Notes were issued in January 2002. Interost auaved at the rate
of 14%per armum and was payablasemi-snnuatly in a combination of cash and additional regtatered notes (the "PIIC Notes'.
in arrears on June 15 and December 1 S, commencing on Juae 15, 2002. Interest in the emovat of 10°~~ to the holders of m
cash, and interest in rho amount of 4% par annrtm was paid bt PIK Notes. Wa made each interest pay
record on the immediately preceding Jwte 1 and December I. PIK Notes warn itstred in denominations of 5100 principal
amount and integral multiples of $ 100. The amotuu of PIK Notes issaed was rotmded down to fhe nearest $100 with a~
fiBCtlonal amount refunded to the holder as cash.
The 9'/,% Senfar Subordinated Notes (the "9'1,% Notes' were issued in Septambar of 1998 end era due in March of 2008
I
i3
-- - . ..-I
The 9'/.%Notes and senior credit facility centein eovenaMS that limit us from incurtstg additional indebtedness end issuing
prefemd stock, restrict dividend payments, limittreosactions with affiliates and rwtrictcetfain odtertransactions Sabstandelly
all of ow net assets are restricted tinder these provisions and covarulrts (Sea Note Q).
Aroll-forward schedule of iha 14%Notes, 9 `i.% Notes and carrying value in excess of principal is as follows:
Cartyl°g
vslut
to exwrof
11°.6lTOfes 9'/,%Nores orlaetaal
(Ie ro°wana°)
Balance atDecember31,2003 $ 57,455 $ 48,877
- S 10,155
(1,308)
Alnortizationofcenyingvalue
PIKNotes issued 279 - -
Repurchase of l4Y° Senior Subordinated Second Lien Notes
8
2
and write off of cartying value in excess of principal (57.734) - ,
0 / )
(
2004
cercba31
tD
l $ - S 48,877 S 640
,
encxe
e
Ba
We entered inro a new senior credit agreement as of Tune 2, 2004 with LaSalle Beak National Asvociadott, as agent and Wells
Pargo Bank, N.A., as syndicedon agent. LaSalle and Wells Fargo have subsequently assigned a portion of thew loans and
rights as Ienrkr to Frith Third Bank Chicago end U.S. Bank National Association.
The revolving senior aredlt facility consists of a $90.0 million revolving credit facility that will expire on June 2, 2007. The
aed{t facility icehrdea a letter of credit sub•fecility with a sublimit of $30.0 million provided by Walla Fargo and a swing Tina
sub-facility with s subtimit of fS.0 »tillion.
the revolving credit facility bears interest, et our option, at either (1) LIBOR plus tlw applicable LIBOR Margie ranging
betwawt 250% and 3.25% depending on rho ratio of aw total funded indebtedness to ow EBl^.DA from time to dine (`°Jotal
Debt Rado"} or (2) the Base Rate (es defined blow) plus the applicable Base Rate Margin raging between 1.0056 and 1.75%
depmlding on our Total Debt Ratio. We may elect interest periods of one, two, three or six months for LIDOR based
borrowings. The Base Rate is the groeter of (t~ the rate publicly announced from dine to dins by LaSalle as its "prima rate", or
Vii) the ovemigbt federal funds rate pits OSO%.
The senior credit facility fncludes the following covenants; fixed charge ratio, senior debt to BBITDA ratio, total debt to
BBTTDA ratio and a Limit on net annual capital expenditures, and limit sat ow ability to htcur additional indebtedness, issue
prefetrad stock or pay dividends and ceotafn certain other restrictions on ow acdvitiw. Wa aro required to repay borrowings
under the senior credit facility out of the proceeds of fuhua issuances of debt or equity seeurldea and asset sates, enbjed to
certain exceptions. The new senior credit facility is encored by a 5rst Sien on substantially ail of ow asseu and any
subsequently acquired assets (including a pledge of 100% of the stock of ow existing and futwe domestic gunranror
subsidiaries and 65Ye of the stock of our existing end futuro foroign subsidlariea). At December 31, 2004 we were in
compliance with all of the covetants.
At December 31, 2004, we had $23.5 million of letters of credit ontstandirtg under the savior credit facility, borrowings against
the senior credit facility aggregated $50.0 mt7(ion, and we had S1 ti.5 million available under the senior credit facility.
Consalidettd joint ventures have entered into four agreements for eland-alone development projects providing nomecotusa
funding, These joint vecnue debentures aro collateraliaed by the specific contracts that were funded and approximate the net
book value of the related assess.
We have entered inro various financing agreements, which were used far the purchase of equipment.
14
Reduauble Preferred Stock, Series C
In connection with our 80, we exabanged a portion of our 1 I ''/.9'n Redeemebla Preferred Stock ~fha "Series C preferred
stocY'), that was owned by Steamboat industries L1.C fcr 5,789,499 shares of ow common stock. lhtr remaining Series C
preferred stock was wntributed tons by our parent as a capital contribution. As ofDecembu 31, 2004, there ere no'
outstanding shares of Series C preferreA stock.
The Series C prnferred stock had an initial liquidation preference equal to S1.0 million par share or 540.7 nilllion in the
aggregate The Series C preferred atorlc accrued divldcnds on a cumulative basis at 11'/,% per year. Conversion was 5zed by
resolution of the Board of Dirnctors and the shares have no vofiag rig`1ta except ea to alterations dr changes that may adversely
effad the boldero of the Series C preferred stock.
Tn January 2002, we redeemed 51.5 million and $0. J rtvllfon of the Series' C prefetred stock held by AP Holdings in two
separete transactions for cash of $1.6 million. On Jnna 17, 2002, we redeemed an additicnal $0.9 million of Series C preferred
stock held by AP Holdings for $0.9 million in cash. Qn~S d ~ evolved by AP Ho dings were used by it to mpurcltasa, d'Iruetly or
Serlw C prefrared stack held by AP Holdings. The p
indlrecNy, its outstanding Il'/,% senior discourttnotw.
SaAr~ C prafarrtd afock 114,%
Bar lEe ee(ad coded
DsremAer 71, 200 Decen6er311DD3
9harea Vaba SEam Vatur
(In niomandaeseeptfor rearcdata)
Beginning balance 31.9004 $ 60,389 33.2194 $ 56$47
2,876 6,455
Dividendsaecumulated D1~004) (63,265) (1319) ~ (2,413)
Exchange for common stock -
_ $ 31.9004' $ 60,389
Ending balance
Convarllble Redumablc Preferred Stock, Series D
IA connection with ovr IPO, Steamboat Indostriw LLC and its wholly owned subsidiary, Steamboat Industrial N. V, acquired
all but tut shares of our outstanding 18°/a Senior Convemble Redumable Series D Preferred Stock {thc°Suiw D prnfetred
soocl~. Steamboat Indu ~ ~ sto ~ tri~buted to ~ ~ now have only tan shams of Series D preferred stock oatstand gad
all shares of Series D pro eY to $100 abate or $1,000 iD the aggregate.
The Suiw D prnfrrred stock has an initial liquidation pfeference aN Pof
~ ~
I
IS
_ ~_J
Prior tc our IPO and, in connection with ovr~~c cgtml to $10,000 par share or S35 0 million m the aggregate. The
Fiducia, Ltd. that had an initial liquidation p ca of an IPO
Series D preferred stock e~NCedand the shams badnoivoting rights except~as m creation of arty lasso sarl~~ +ares ranking
at a rate related W the IPO pi fired to redean Series D preferred stock at 13te election of the holder say
senior m the Series D preferred stock Vle were requ
time on or after Jima 15, 2008. Tile number of shares of Series D prefcaed stock anthorifed for issuance was 17,500.
9rrln D prrlerred stack 18%
For Mc akJ n~dsd
Dettmher31, 100f Dsecmher312003
Vahe 9Yarea Valae
(is IYo+ssndr ecccpt far snare d+b)
4,000 $ 56,399 4,000 S 47,224
Beginning balance _ 4,367 - 9,175
Divideadselxumuleted (3,990) {60,761)
Retirement
LO $ 1 4,000 $ 56,399
Ending balance -'~-"
Note G. LleolaeTaxes
Ai Dectxllber 31, 2004 the Comperly had 5723 million of federal net operating lees (1•IOLs) carry forwards and $5.6 million of
net cumulative temporary differences whioh will provide future tax dedltc6oos. Assuming a 390/0 tax rat0. the AIOLs and net
temporary differences create a deferred tax asset of $30.9 million Due to ~ alstorioga lncial ~ ~~ der of$7l3
aliowanceluls beenrecorded on thaw s ~ ~~ ~ydrr~ ~~ ~ 2~.
million for federal income tax pulp
As a result of ttu initial public offering completed in Juno of 2004, an ownership ellang8 occumd tmda lntemai Revenue
Code Section 382 which limits our ability to wepre-change NOI.s to reduce futtae taxable income.
A reconciliation of dte Company's mporied income tax expense, (beDefit) to the azaount computed by mulHplyiny
income!{lou) befnra income taxes by the affeotiva federal income tax rate is as fogows:
200` 3DD3 3002
(In tYoosands)
3,505 $ (534) $ (1'286)
Statutory provision (benefit) 5 32 187
Pemranmt differences j 20 l3
State taxes, set of federal benefit 88 64 {44)
Bffoct of forotgn t®c rates 449
Reduction offoreigataxresecves 3,179 (264) (2,160)
(3,291.) 675 1,412
Change in valuation allrnvance
$ {112) $ 411 $ 252
incosnatax,(beneid) expense
income tax, (bcuefit} expense coaslsts of the following: I
aeoe :003 I
3ooz i
(la lYaosands) ~
Current: $ {116) $ 38! $ 232
Foreign 4 30 20
State
$ l12
S 4l!
S 252 I
Income tax (benefit) expense I
I
16
--
-- -- I ~
-- - - -- - i. _;
Deferred iacometsxes ores and the amount used fops inc~ama~tax purposes. 9 gni5 ant components of the Compaaly's dttefeered
financial reporting In?Ip
tax assets and liabi]Ihas es ofDeoember 3l, 2004 end 21103 are es follows:
zee war
(le laouanas)
$ 28,]89 S 25,730
Net opemtirl8 loss carry tortverds 7,752 7,734
Accrued escpenses 250 3,960
Carrying value in access ofprincipal 4,ti97 2,500
Accrued compmaatioa 712 1,094
Tax credit carry forwards 379 437
Reserves for special charges
41y79 41,488
11041 (7,226)
Tmc over book depreciation and amortization
30,938 34,229
Net deferred tax assns betnrc valuation allowance 30 38 (34,229)
t,ess: valuation allowance for deferred tax assets
$ - 5 '_
Net deferred tax assets
For financial reportia8 PmPoses, a valuation allowance for net deferred tax assets will continue to be raordad until rwlization
of such assets is more likely than not. Taxes paid. which reline to xRam states and foreign jurisdicdons, ware SI40, $323 and
5370 is 2004, 2003 md?A02, respecively.
Note R. Benefit Plana
The Company offers defend compensation arrangements for certain key executives cad sponsors an employees' savings and
retirement plan in which certain employees are eligible to pazticipate. Subject m thew continued employment by the Compatry,
certain employees offered supplemental pension aQengetotats will reooive a defined monthly benefit apon attaining age 65. At
December 31,2004, 2003 snd 2002, the Company has accrued 52,652, 52,b14 and 52,509, respectively, representing the
present value ofthe futraa benefit payments.
pertieipanb in the savings and retirement plan may elect to~ ~airod ~ ~ P ea E~eraes reel ud to these pllans ameotulted to
Company, contributes an amount in cash or other pmperiy teq
5817, 5784, and $872 in 2C04, 2003 end 2002, reapeaivoly.
TMa Company also contributes to two multi-employer defitud contribution cad Hires mufti-employer defined bane6t plans
which cover certain uniwr employees.>~cpenses related to theca plans were $483, $566 and 51, 119 in 2004, 2003 and 2002,
rrspxtivaly.
17
-~ ._I
The following mbk stmrmarizes the transactions pursuant to our stock option plans for the last three years ended December 31
Numberor w~aaasms. ~
Secna Lrcrciac price
Outstanding at December 3l, 2001 503.86 $ 5,600.00
Granted - -
Exercised
kd
C - -
ance 503.86 $ 5,600.00
Outstanding at December 3l, 2002 - -
Oranted - -
Exeroised
l
d - -
Cance
e 503.86 $ 5,600.00
Outstanding atDeoember 31,2003 605,771 S 7.71
Omnted (15,767) S 634
Exercised (503.86) $ 5,600.00
Canceled
590,004 S 7.71
Outstanding at December 31,2004
At Deoemba 31,2004, optiau m purchase 433,483 shares of common stuck were acaaisable e<a weighted average price of
56.39 per share. ,
Note I. Leases and Contingencies
The Comparry operates parking facllides under operating leases expiring on various dates, generally priorto 2017. Certain of
flse leases comacr options>d renew at the Company's discredon.
Tots1 fuhne annual rent expatse is sot detetmlrable due ro the spill lcation of percentage factors based on ravenuea. At
December 31, 2004, the Company's minimum rental commltmams, excluding rnntiogantrmt provisions wider all aon-
cancelable leaseawith remaining terms of moro then one year, ere as follows:
(io laovaanda)
f 22,408
2005 19,285
2006 17,069
2007 !3$ l2
2008 LO,liS
2009 2j403
2010 and tbereatiet, X992
Rent expense, including contingent rents, was 5102,300, 594,105 and $96,682 in 2004, 2003 and 2002, respectively
Contmgedtt rent expense was $79,892, 573,558 and 576,088 in 2004, 2003 end 2002, respectively
In the normal course of busiaess, the Company is involved in disputes, generally regardmg the terms of lease agreements. In
the opinion of managantent, the outcome of these diaputd and lltiga:ion will not have a material adverse affect on the
consolidated financial position or operating results of the Company.
I
t8 '
Note J. Management Contracts and Related Arrangements with Affiiates
1Ve have management connects to operate two sorlnce parking lots in Chicago. Steven A. Warshauer and Michael K. Wolf
own membership interests in a limited Iiabifily company that is a member of the limited liability companies that own those Iota.
We received a mtel of 539,800 in 2004, $39,200 in 2003 and $38,300 In 2002 under the applicable management conhacis.
We entered into a management agreement with DdtE Parking, Inc., a cornpeny in which two of our officers have an inta'est. Tn
consideration of the services provided by DBcE, we paid D&E an anneal base fee of 5364,600 in 2004, $358,000 in 2003 and
5325,000 bs 2002. On December 3l, 2000, we entered into m agreementm sell, at fair market valne, certaut contrast assets to
D&E Padring, Ina We continue to operate the parking facilities and receive management fees and Tcbnburaement for support
services in cotmection with the operation of the parking faciities. We received a mtal of 571,900 in 2004, 5133,000 in 2003
and 5116,000 m 2002 under this arrangement. Standard Pedring pmvidas property management services to Elmwood Villas, a
residential aparhnant complex in Las Vegas and Paxton Plau, a shopping center in Los Angeles. 13oth of tbese properties are
controlled by entities at'fillated with D&B. We axpedm expand our property management services for entities controlled by
DBcE.
We entered 1Tdo a management egrament dated as of September 19, 2000, with Circle Line Sightseeing Yachts, Jac. to
martage and operate certain parking facilities located along the Audson River and Piers located in Now York City and under fire
wnhol of Circle Line. Circle Line is approximately 41.2595 indirectly owned by John V. Holten's immediate family. Mr.
Holton was previously a Director ofNew Yodt Cruise Lines, Inc., whirb owned all of the outstandlog stack of Csrale Lana,
from 1990 to February 200s'. We received a total of 571,400 m 2004, 5131,404 in 2003 end 566,000 in 2002 under this
artarrgemertt. Additionally, Circle Lino has the right ro require us m temporarily advance to Circle Lino on or before each
December 31 st and Apnllst the anticipated net proEt is increments of 5100,000 each. We made an advanx of 5200,000 iD
20{14 and a iota! of $100,000 eemains outstanding. We anticipate eollecring this amour: prior to Juna 2005.
Note K Legal proceedings
We are subject m various claims and legal proceedmgs filet consist principally of lease and contract disputes. Plc consider
these claims and legal procxdings m be Tontine and incidental to our business, and in the opadan of management, the ultimam
liability with respect m these proceedings and claims will not materially affect our financial positron, operations or iignidity.
Note L. capital Leases
property under capital leases included within equipment is as follows: (in thousands}
Deecmaer 31
ta04 l0a3
Service velticlas S 8,42s 5 s,776
Computer equipment 2,537 997
Parking equipment 1,698 1,388
12,660 8,159
Less: Accumulated depreciation 5,009 3,4s0
$ 7,651 5 4,709
Future minimum lease payments under capital lessee at December 31, 2004 together with the present value of thelninimum
lease payments an es follows:
S 2,917
2005 2,471
2006 1,261
2007 819
2008 237
2009 7,305
Total minimum payments
est
;
te
ti (446)
n
r
ng
Less; Amounts represen 6,859
plesrnt value of minimum payments (2,739)
Less: Current portion $ 4,120
Total long-temt por[on
Note M. Goodwgl and Intangible Assets
As of December 31, 2004, 2003 end 2002, the Company's finite lived intangible assets amounted eo 556, 52,244 and S2,SI5,
taapoc/ively, net of acctrnuleted amortization of S676, 53,544 and $3,242, respeetivaly, which primarily consist ofnon-
oompe[e agteemelds amortized aver their useful lives.
A r+oIl forward oPgoodw7Il far the periods prtaeltted is as follows: (in thousands)
Bar tDe fear Sadcd DeeemDer3l,
2004 1003
Balance at beginning ofyear $ 117,390 S 115,944
Effect of foreign curreacY translation 308 T37
Contingency payments tdeted W prior acqu'ISitions 644 709
Balance at end of year $ 118,342 $ 117,390
Amortization expense for intangible assets during the year rndod December 31,2004 was $4%. Estbaated amortirstion
expense for natatgible assets for the Year ended 2005 is $56.
On October 3, 2004, s Consulting Agreemrnt dated March 20, 1998 between us and Sidney Warshauar, a Former owner of
Duty, was terminated by Its terms es a result of Mr. Warshaue~s death. We recorded a onetime non-cash charge to
amottlzation expanse in the fourth 9uaROr of2004 reflecting the writeoff of the net unalnorHzed balance of Mr. Warahauer's
covenant not to compete of $570,000,
Noh N. Long-term Receivables
Long-ism receivables, net, oonsiss ofthe following:
AnwnntOrhhndliK
ileremaer31.1004 Drermber ]l, 2dU
(ia IDruandsl
Brndley Intematioaat Airport $ 6,473 S 4,471
Ouaramor payments 2,491 2,611
OtherBradleyreieted,ad (2.484) (2,650)
Valuation allowance 6 480 4,432
AIet amount related to Bradley 836 999
Other long-ttrm receiwbles, net $ 7,3 ] 6 $ 5,431
Total long-term receivables, net
20
We aro the lessee under a 25-yeaz lease with the Site of Connecticut that expires on April 6, 2025, under which wa lease the
surface parking and 3,500 geroge perking spaces at Bradley Infemational Airport loeakd in the Hartford, Connecticut
metropolitan area, The parking garage was financed on April 6, 2000 through the iuuance of $47.7 mitfion of State of
Coanecicut special faoility rovenua bonds. lye Bradley Ieasa provides that wa deposit with a trustee for the bmdholders all
gross revenues collected from operations of the nuface and garage parking, and from these gross revenues, the hosted pays
debt service on the special facihty revenue bonds, operating and capital maintenance wcponses of the surface and garage
parkirag facilities and specific anrmal g<~aranteed minimum payments ro rho State. Principal and interest on the Bradley specie]
racility rovenue bonds increase from approxinraroiy $3.6 million in lease year 2002 m approximately 54.5 million in lease year
2025. Oar annual guaranteed minimum payartenta to Ora State inereasa from approximately 58.3 million in lease yesr2002 ro
approximately S132 miflioa in lease year 2023.
To the extent that montyly gross receipts ere not sufficient for fhe trvstee ro make Ora required payments we are obligated,
pursuant m oar guaranty agreemamt, to deliver the deficiency amount to the trustee within three business days of being notified
We aro rosponsibk for these deficiency payments regardless of the amount of utilisation far the Bradley parking facilities. Wa
made deficiency paymonts of $2.0 million ~ of ropayments of 50.1 million in the puiod ended Decembu 31,2004 and
$3.3 miIIion In the year ended December 31, 2003 end 51,2 million in fire year-ended December 31, 2002.
We rocorded 52.7 million as a valuation allowance rotated ro tang-term receivables daring the year ended December 31,2003.
Tye arreowtt was su[ficieat ro cover all net receivables rotated m Bradley Airport other then dte guarantor payments. There was
no additional allowance rewrded in the period ended Decembu 31, 2004. Tt is anticipated that wa will continue to reflect a
valuation allowance egamst these receivable until the coliectibility becomes moro assured. In Septembu 2004, we received
payment of approximately S02 million which reduced the athu Bradley related amount end we reversed an equal amount of
the valuation allowance
Note O. 1!altlal Publle Offering
Lt June 2004, we closed our initial public ofiiuing and sak of 4,666,667 shares of common stock, includ'mg Ote underwriters'
exucise of an over-allomteat option, at a prig of 511.50 pu stare. A total of 553.7 million br gross proceeds was raised from
this offuiag. After deducting the underwriting discount of 53.8 million, and offering exputses of 53.2 million, net proceeds m
us woe S46.7 million. In cogjunction wilt this offering, eve entered into a new 590.0 mrlGon senior credit facility and
redeeaned ow 14%Notes in Ore amount of SS7.7 million. In addition, va paid $1.6 million of interest premium on Oto 14%
Notes, 50.8 million of interest previously defeoed on the rum loan for the old senior creek facility, 56.6 million to purchase
the cotntnar stock subject to put/call rights and any remaining existing stock options of fire conunon stock (plus a $5.0 million
note assumed by our parent company), $ L4 mlliion in debt issuance costs for the stew senior credit facility and $0.3 million for
professional fees related m the exchange of debt.
Note P. Domestic end foreign oparationa
Our business activities consist of domestic and foroiga operations. Poroign operations aro conducted in Canada. Ravuuae
attributable to foreign operations woe less than 10% of consolidated revenues for each of the years ended Docembu 31, 2004,
2003 and 2002. ,
21
A summery of information about our foroign and domestic opetafions is as follows (in thousands):
Y<~r mded Deccmbcr3l
SOOd 2003 2001
Total revenues, cxcludicg refmbursanent of management contract
expenses:
Domestic
Foreign
Consolidated
Operating income:
Domestic
Foreign
Consolidated
Net income (loss) before minority interest and income taxes:
Domestic
Foreign
Consolidated
Ident~able assets:
Domestic
Foreign
Consolidated
$ 229,915 S 213,148 S 217,88]
2,549 2,146 2,524
S 232,464 S 2l 5,294 $ 220,405
$ 17,971 $ 12,027 $ 10,814
1,690 1,562 1,759
S 19,661 S L3,589 S 12,573
S 8,946 S f2,389) $ (5,089)
1,712 ],176 1,697
$ 10,658 $ (I,Z13) S (3,392)
S i8S,095 S 179,737
10,007 9,848
$ 195,102 $ 189,585
22
Note Q. 5ubaldhry Gaannton
Substantialty ail of the Company's direct or indirect wholly owned activo domestic subsidiaries, fully, unconditionally, jointly
and severalty guarantee rho Senior Subordinated Nobas discussed in Note F. Separate 5nencial statements ofthe guarantor
subsidiaries are not separately presented because, in rho opinion of managoment, such financial statements tree rro~ ~ ~al~tor
investors. Thenon-guarantor subsidiaries include joint ventures, wholly owned subsidiaries of the Compatry org
tht laws of foreign jurisdictions and inactivasttbsidiaries, e11 of which are included in fire consolidated financial statements
The follmving is summarized combining 5nenaal information for Standard, the guarantor subsidiaries of the Company and flee
non-guarenwr subsidiaries of the Company:
December 31, 2004
Balavice 3hect Data:
CSnrent assets:
l.BSh and Caah CQU17alenta
Notts and accounts receivable, nef
Prepaid expenses and supplies
Tofat current assets
Leaseholds and equipment, net
Long term receivables. net
Advaoees and deposits
Goodwill
Intangible sad other
lpvesunent in subsidiaries
Guanstor Noo•Guarnnmr
Standard Sabaldlarin Subddtnrld Elimloaltnos ToMI
$ g 262 $ $ 2,098 - 10,360
608
27
841 590 6>i77 - 34,
,
2,290
393
38 29
619 I1
8,286 -
- 2,330
47,298
.
14y00 263 1,318 - 16,461
7,317 - - - 7,317
816
1
1,590
637
110 -
3>585 226
4,120 -
- ,
118,342
,
3,509 48 291 3,848
11,319 - - ~)
5 4
515 14
241 I! 314 !45,102
187,66 . . _
306
24 215 1,586 - 26,]07
,
826
22 1,Otl 1,957 - 25,794
,
706
2 - 804 - 3 512
,
49,840 1,226 4,347 - 55,413
105,153 10 1,075 - 106,238
1
332
17 - 7'79 - 18,11
,
1 - - - 1
10 -
2 -
I -
- 10
196,565
193,562 - 116 116
(178,233) 3,277 T,923 (11,319) 178 52)
15 39
15,339 3,279 8,040 I1 19
665 4
515 14,241 11 319) 195,102
187, ,
Shndard Oannoror
Seluldiulu Nea-Gannulor
See,ldhda Sllndnadoar
Touf
Ineoma Statemeat Data:
Peridng services revenue: 115,241 21,993 t 1,518 - 148,752
Lease C0°tre~ 954
78 L60 4,598 - 83,712
Maneg~entcontrects ,
195
194 22,153 16,116 232,464
ense
t connect ex ,
331.171
-
335,171
p
Reimbursement of lnarregemen 53
2 116 -
16 563,635
Total rovena 525,366 2
,1 ,
Coat of perking services: 104
374 20,147 10,027 - 134,548
Leasccontracts ,
105
32 64 1,860 - 34,029
Management ~~~ ,
479
(36 20,21 I 11,887 - 168,577
Reimbursement of managementcomractexpense ,
331,171
-
11
2 -
-
887
11 331,171
499,748
Totaloostofpaddngservices 467,650 0,2 ,
(boss profit: 10,867 1,846 [,491 - 14,204
Lease contracts
ils 46,849 96 2,738 - 49,683
Management contra 57
716 1,942 4,229 - 63,887
Total gross profit ,
32
655 - 815 - 33,470
Qeneral and administrative expenses ,
6
110 2IS 632 - 6,957
pepreciation and amortlzetion ,
500
1 - - - I,S00
Management fro-parent company
se
i ,
299
2 _ .^ - 2.299
on expen
Non-cash stock option compensat
erating income
O .
14,882
1,727 -
2,782 19,391
p
ether expenses (income): 13
171 1 197 - L3,369
Interestarpense ,
(450) - Cg4) - (534)
Interestinoome
ain ftom extinguishment of debt
Nat 832
~ 9 - - - (3,632)
003
9
g 1 3 l3 - ,
Income before minority interest and Income taxes
6 1,726 2,669 -
186 - L0,658
349
Minority interest 163
10 -
- (122) - (112)
Income tax expense (benefit) 4
331 - - 4 331 -
Erprity in etvnings of aubsidieries .
Net income before preferred stock dividends and
increase in value of common stock subject to
10
42f
1,726
2,605 (4,331) 10,421
putlcallrlghts ,
7
243 - - - 7,243
prefrrred stock dividends ,
Increase in value of common stock subject to - - 538
538 -
put/callrigbts 2
640 1,726 2,fi05 4,331) 2,640
Net income (loss) ,
24
Cnnnnror Non~iuurauror
$taM1dald $nfutdiM1dV $UUtIdIBrte6 Ylln+lauflmu ToeM1l
S 10,421 $ 1,726 S 2,605 $ (4,331) $ 10,421
6
I l0 215 632 - 6,957
,
279 - - - 279
1,015 - - - 1,015
(1,308) - - - (1,308}
2,513 - - - 2,513
408 28 28 - ~
2,385 - - - 2,385
(8,207) - - - (8,207)
(sao) (200) 2109) - ~~3149)
70
-
12,776 1,769 1,156 (4,331) 11,3
(1,378} - - - (1,378)
(644) -- - - 644
(2,022) - - - (2,022)
46.709 - - - 46,709
100 - - - 100
(6,250) - - - (6,250)
13
900 - - - 13,900
,
(101) - (44) - (145)
- (555) - (555)
(1.409) - - - (1,409)
(2,423) - - - (2,423 )
en
5 _ 54 734)
~
?Jet cash used in 5nancing activities 7. 08)
( - (599)
49 ' - }
349
es _ 3
Effeet of exchange rate chang
l
ts 546
3 1,769 906 (4,331) 890
en
Tncrease in cash and cash oquiva
h and cash equivalents at beginning of period
C ,
6,660 78
1,732
33
360
S 10
as
uivalents et end ofperiod
d
h
h $ 10,206 $ 1,847 8 2,638 1)
8 4 .
cas
eq
an
Cas
25
Cnenolor Noo•Gosrmtor
Stmdird SulaldtaAta 3ntplel~rtrs ltltodnalloai Tntd
$ 6,660 $ 78 $ 1,732 $ - S 8,470
25,889 842 4,492 -
0~
1,421
!5 _
6
33,970 620 6,239 - 40,829
!3,518 381 2,060 - 15,959
5,431 - - - 5,431
S,8I0 - 280 - 2,090
110,032 3,545 3,8I3 - 117,390
7,544 119 223 - 7,886
8,573 - - 8,573 -
S 180,878 S 4,665 $ 12,615. S 8 73 S !89,585
23,2p 1 321 1,449 - 24,971
I&828 661 2,773 - 22,261
1.922 - 916 2,840
43,948 984 5,140 - 50,072
156,325 20 1,894 - L58,239
19,107 - 669 - 19,776
56,399 - - - 56,399
60,389 - - - 60,389
!0,712 - - - 10,712
1 -- - - 1
15,221 = X33) _ 15~n)
181 27,4 3,661 5,144 8 73 180 92
1( 66,002) _ 3,661 4,912 (8,573) I( 66,002)
S 180,878 $ 4,665 $ 12,615 S (8,873)$ 189>585
26
December 31, 2003
Balance Sbeet Data:
Cutrwlt assets:
Cash and cash equivalents
Notes end nccoums receivable, net
Plepeid expenses end supplies
Total currant assets
Leaseholds and equipment, nei
Long term receivables, net
Advances and deposits
t3oodwill
Intangible and other
btvesbnent in subsidiaries
Guarantor Noa•Goarpntor
9taodard Snbddl~rlet Subai<aaNp F1lminanooa TeW
13
106,378 22,114 10,189 - 138,661
72,410 181 4,022 - 76,613
3301243 -. - - 330,243
509,031 22,295 14,211 - 545,537
96,130 20,158 8,865 - 125,153
28,063 53 1,323 - 29,439
330,243 - - - 330,243
454,0.36 20,2If 10,188 484,835
10,248 1,95b 1,324 - 13,528
44,347 125 2,699 - 47,174
54,595 2,084 4,023 - 60,702
General end administrative expanses 32,084 -
3 610
880 - 32,694
501
7
Depreciation. and amortization 6,408 21 189 ,
=
1
055
~~ ~~~ 666 _ ,
-
3
000
Manegementfee-parontwmpanY 3,000 ,
Vahudon allowance related to long-teem - 650
- 2
2
650 - ,
rxeivable ,
9
587
1,871
2,344 13,802
-
Operating income ,
Otherexpenses (income):
16
531
1
265 -
16,797
Interestexpense ,
(141) - (97) - (238)
Interest income
uishment of debt
extin
fr 1.757 - - - ~)
om
g
Net gain
Income before minority interest and income taxes (5,056} 1,870 2,176 _ (1,000)
57
206 3
~~~ interest 240 - 384 -
624
Income tax expense
Bqutty in earnings ofs<tbsidiades 3,456 - 3.456)
Net (loss} income before preferred stock dividends
and increase in vetoe of common stock subject to
1
0
586
1
981)
(3
456) (1
patUcdlrights (1,981)
1
6
0 ,87
- ,
- ,
,
630)
- { 15
prafierrad stock dividends 5,
3
)
( ,
Increase in value of common stock subject to
)
-
- 1,242
- ~
)
puUcall rights
i ~
18 853 1,870 7,566 '-
456) (18,853)
ncome
Net (loss)
27
SraaE~rd Guanntar
3ubdd~da Noo~Cunnnror
SuWld{nrW YIlm4+atloua
Tohl
S (1.981) S 1,870 $ 1,586 $ (3,456) $ (1,981)
6,408 2i3 880 - 7,501
3,263 - - - 3,263
1,199 - - - 1,199
(2,854) - - - (2,854)
2,650 - - - 2,650
(1,172) - - - (1,172)
(907) (61) (61) - (1,029)
) 585
(
10.723 CL'al) (2,029) - 6
653
16,744 (19) 376 (3,456) 13,645
(1,812) - (~
(709)
-
-
- 09)
(2,521) - - - (2.521)
- - 332 - 332
4,500 - - - 4,500
(?1)
- (687) - (687)
(2,987) - - - (2.987)
(1,994) - - - (1,994)
(5,9L5) - - - (5915)
(2,413) - - - (2,413}
(8,830} - (388) - (9,218)
41I 411
5,393 (19) 399 (3,456) 2,317
4,723 97 1,333 6,L53
$ 10,116 S 78 S 1,732 $ 3 456} $ 8,470
28
notes
Provision (reversal) for losses on aaaunta
rcceivable
SGadard Caaranfor Non-Gnarxntor
3ubtid3arlo Snbaldtarig
EDmloatloor Tohl
13
55,743 71,074 15,559
077 - 142,376
029
- 78
72,782 170 5,
- ,
- 326,146
326,14b
454,671 -
71y14 20,636 - 546,551
19,153 55,788 13,930
13 - 125,871
- 35
20L
32,033 55 3,E
- ,
6,146
32
326,146
dI7,332 -
55,843 17,043 -
490,218
(3,140) 15,286
tE 1,b29
964
1 - 13,305
- 42,828
40,749
37,339 5
15,401 .
3,593 - 56,333
4
032 25,839 262 - 30,133
GanerelandadmintstiativeexPatses ,
4,528 1,868 1,158 - 7,554
Depreciation and amori~zetion 2 831 - 66 - 2,897
Special Charges
m
en 3,D00 - - - _ 3,000
p
y
Mmaganent~parentco
22,948
(12,306) 2,107 - E2,749
Opeating Income
ether expaises (income): 15
868 (19) 397 - 16.246
lnterestaxpetBe
Intaest income ,
(208)
15,660 (73)
19 -
324 (281)
- 15,965}
16
Encome beforo miaority invest and iacame taxes
7 12,287)
( - 1,264
49 )
- (3.2
- 180
Miaotity interest 131
179 - 249 - 428
Income tax expense 1321 - - 11,321 -
Squity in earnings of subsidiaries 1
__~__~~
Net income beforo preferred stock dividends and
inereese in valve of common stock subject to (3,824) (12,287) 966 11,321 (3,824;
putlcall rights (13,540) - "- '^ -
Prefened stook dividends
Inrxease invelue of common stock subject ro -
Qut/callrights 970
18 34) 12287 966' 11,321 (18,334
Net (loss) become
29
Cuh Flow Data:
Operatlog activities:
Nat (loss) income
Adjustments to reooncde net (loss) Income to net
cash (used'm) provided by operating activities
Depreciation and amortization
Non•cash interest expense
,gmortiaaNon of deferred financing costa
Amortizatim of carrying vsltu in excess of
principal
Provision (reversal) for losses oa aoeourus
...,.t...ti,;.
Guorootor Noe•Gnarnotor
9fnndnrd gunddMria SoWldtariu Eamlotaaeer ToMI
S (3,824) $ (12,287) S 966 $ 11,321 S (3,824)
528-
4 1,868 1,158 - 7,554
,
3
049 - - - 3,049
,
836 - - - 836
(2,G55) - - - (2.655)
351 24 24 - 399
(13,064) - 13,832 ~) - 1674
5
(10,779) 3,437 (294) 11,321 3,68
(1,843) - (3) - (1(
(612)
2
455
-
~)
- 612)
(2,458)
)
(
,
3,000 - -
- -
- 3,000
(394)
(394)
_ -
_
(8~) 882
(L59) - - (159)
(19~) _. - - 0900)
(z,soo)
(8
) -
- (2,soo)
(2,835)
(1,953)
_ _ 9 - L59
(15,187) 3,437 (1,020) 11,321 (1,449)
8,589 ~ 2.353 - 7,602
$ !6,598) $ 97 $ 1,333 S E1 21 $ 6,153
30
® Standard Parkfng°
Qualifications of Proposer's Team
that insures harmony is all aspects of meter
organized, and experienced maoagement team.
vleter Collection Supervisor and also designates an
,.......°,..~ n,r narh rnlla.~:tinn seam or vehicle. T11e
City of Miami Beach
Meter Collections
Organizational Chart
Request for Proposals (12PP) Na. i7-05/06
m M4AMIBEACH ~`t,'atMlami9eaea
]nl]nirle3, aS rOLlnlred, with the Llry or rvuamt ncauu rut+uu~ .+a+~~w., ~~•
his dasignea. ]a addition m that staff, our molar collection team receivrd
immediate support from our Senior Managemont Staff (highlighted
below), all with a complete under standing of the City of Miami Beach's
Meter Collections.
Standard Park/ng°
Qnatitications of Proposer's Team
stated in our Operating Plao, our success with our meter collection
s has been our attitude to approach this project with a "partnership
.,. » :., ...,..aa;,,. m,r cervices. Over the last five years, we Have
of Miami Beach. Por that mason, the top sateen o: our t~rganr~x,.ruu
Chart highlights the City of Miami Beach.
Providing direct executive support to the Project is Tom Hagerman and
Executtive S4Uport gruceKubena.
Mr. Hagerman was appointed as our Executive Vice President-
' Operations for the Cannel Division in June 2004. He had served as Senior
Vice President-Operations for the Cannel Division since March of 1998;
after joining the company in 1997 in the capacity of market president•
Tom Hagerman nrbau properties. Mr. Hagerman is a graduate of Ohio State University,
Executive Vice President end began his career in the perking industry in 1992. He is an active
member of ere AIational Parking Association, Internafional Perking
Institute and member of Building and Owners Management Association
Prior to his appointrrrent W Executive Vice President, Tom wa:
Brace ICubena, Senior Vice President of Operations, is r+esponsibla for
numerous properties in Houston, Austin, Dallas, Fart Worth, Atlanta,
Orlando end Mramd. In his role, Mr. Kubena overseas all of the
Bruce Knbena operatrona4 5nencral and marketing functions of his properties. Bruce has
worked with Standard Parking since 1996 and hat experience es perking
Senior Vice President professional since 1989. He is a member of the Building Owners Br
Besod out of our Regional Office that is located on Miami Beach, our
LOCa{ SnpFOCt meter collections staff has support that next door and attentive to thca
needs.
Standard Parking and Prank Pintado 1 VIP's Parking Systems Inc. entered
into a successful Joint V entwce Partnership throughout the State of Florida
Brank Piutado in 1999. Prior to this agreement, Mr. Pintado was the President and owner
of VIP's Parking Systems, Inc. VIP's Parking Systems, Inc. began
PartneY operations in 1974 and successfully owned and / or operated parking
operations tluoughout Miami / Dade County and specia]izing in Miami
Beach.
Request for Yroposak (IiFP) No. 17-05/06
m MIAMIBEACH cityerMisarlseaeh
Data of incident Type of Issue
1/14/2008 No Supervisor on D
1123/XC9 Not followin procedure
1/30/2008 missing machines. Not
Following proper
rocedure.
1/31/2008 missing machines. Not
following proper
procedure.
2/19/2008 Not followin procedure
2122/2008 No-show and No-call by
main su ervisor.
5!30/2008 Insubordination to the
City /Not property
trained.
6/1712008 Dama in Cit ro ert
7/29/2008 Dama in Ci pro e
7/30/2008 No-show and Nocall by
two Employees on two
different da s.
8/8/2008 Dama in C' roperry
8/1 212 0 0 8 No-show and No-call by a
Collector.
8/18/2008 No-show and No-call by a
Collector.
8/1472008 No Supervisor on Duty!
No Replacement
8/1472008 No support from Lacai
Office.
8114/2008 Lack of trained
ersonnel.
8114!2008 Late in Getting out to
their Zones.
8/21/2008 Not followin rocedure
9/1972008 Cama ing CI ro e
12/5l2C08 Not followin rocedure
12!512008 Missing City Pro e
1!1212009 Short in staff
1/15/X09 Dama in Ci ro e