Standard Parking Corporation Reports Solid Second Quarter Growth; Updates 2010 Outlook
"We are updating our outlook for the year by adjusting our full year earnings per share guidance to a range of $1.05 - $1.10. We're making this change for several reasons. First, we project that we will incur more legal expenses than originally expected over the remainder of the year to close out a few lingering prior year legal matters that haven't resolved themselves as quickly as anticipated. In addition, we're expecting a significant reduction in the scope of services at one of our upcoming Gameday events, and we're being affected by a change in expectations as to currency exchange rates from our growing Canadian business. For free cash flow, we're still expecting to generate from $20 - $25 million.
"Long term, we remain confident that our core business performance, our ongoing investment in technology and resources and the increasing traction that we're gaining with our expanded service offerings, all bode well for strengthening our position as an industry leader as the economy recovers."
Second Quarter Results
Revenue for the second quarter, excluding reimbursement of management contract expense, of $76.2 million increased 4% over the same period last year. Management contract revenue grew 13%, offsetting a 4% decrease in revenue at leased locations.Gross profit in the quarter increased by 13% to $22.7 million from $20.1 million a year ago as legal-related expenses that adversely impacted the second quarter of 2009 were much less of a factor in this year's second quarter. Growth at same locations, along with the addition of new airport and transportation contracts at Atlanta-Hartsfield, Reagan and Dulles airports and the acquisition of the Gameday Management Group, were key contributors to the year-over-year growth in gross profit. General and administrative expense ("G&A") increased by 18% to $12.2 million from $10.3 million a year ago. Fifteen percentage points of this increase, however, was attributable to the Company's restoration in 2010 of its performance-based compensation programs, as compared to the 2009 second quarter, in which the Company decided to eliminate its 2009 bonuses and thus completely reversed its year-to-date accrual.
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