Standard Parking Corporation Reports Solid Second Quarter Growth; Updates 2010 Outlook
As a result, operating income for the second quarter was $9.0 million, an increase of 7% as compared with the 2009 second quarter. Pre-tax income increased 9% to $7.6 million. Net income attributable to the Company was $4.5 million for the second quarter, an increase of 7% as compared with $4.2 million for the same period of 2009. On a per-share basis, second quarter earnings grew 4%, to $0.28 from $0.27 in the year-ago quarter as a result of a 2% increase in the Company's weighted average outstanding share count due to the exercise of stock options.
Cash taxes paid during the second quarter of 2010 increased by $0.8 million to $2.0 million from $1.2 million paid in the same period last year. The cash tax rate (cash taxes as a percent of pre-tax income) increased from 17% in the second quarter of 2009 to 27% in the second quarter of 2010 due to limitations on the Company's use of NOLs in any single year.
The Company did not generate any free cash flow (negative $1.4 million) during the 2010 second quarter, as compared with $6.0 million of free cash flow generated in the second quarter of 2009. The year-on-year difference is attributable to increases in accounts receivable balances at several large airports. These receivable balances, which have been reduced significantly since the end of the second quarter, are expected to revert to normal levels by the end of 2010. As a result, the Company is reiterating its free cash flow guidance of $20 million to $25 million for the year. The Company's free cash flow for the twelve months ended June 2010 was $12.7 million, which was used to pay down total indebtedness.
Recent DevelopmentsDuring the second quarter, the Company began parking management operations at the garage serving the Chicago Loop's Block 37 development. The Block 37 re-development encompasses an entire city block and includes an office tower, a 285,000 square feet retail center and a planned luxury residential and hotel complex.
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