Shareholders of Chicago-based Standard Parking will vote Tuesday to approve the company's planned acquisition of Central Parking, which was worth about $350 million when it was announced in March. That prompted to take a look through the Standard's proxy to see how Nashville-based Central Parking has changed since May of 2007, when a trio of private-equity firms took control of the parking giant. The short answer is that it's a smaller, much less indebted company but one that still isn't making money: Through the first six month of its current fiscal year, total revenues came in at $394 million, about 10 percent less on an annualized basis than in its first fiscal year after going private. The company has lost $190 million in the last four and half of years, the vast majority of which was from impairment charges in fiscal 2010 and 2011. The company's debt load, which stood at almost $660 million in 2007, has shrunk by more than two-thirds.
Away from the balance sheet, two other indicators struck us as interesting. Central Parking's employee base stood at roughly 14,000 this spring, down from almost 19,000 in the fall of 2006 — a small piece of that is due to the sale of its Canadian operations in early 2008 — and the company's portfolio of facilities has held steady in recent years as the sale of owned facilities was offset by more managed contracts. But the total number of facilities being handled by Central Parking employees is down 35 percent from 2004.
The joint venture between Central Parking and Global Parking Systems has gotten a stamp of approval from San Francisco International Airport officials. The company has received a five-year extension to its parking management contract, which started in 2007.
A partnership between Central Parking and Morgan Stanley has been cleared to submit bids to buy or lease a group of parking lots and garages that comprise almost three-quarters of all public spaces in Harrisburg, Pa. Pennsylvania's insolvent capital is looking to raise millions to help it manage its debts. Morgan Stanley and Central Parking are up against more than 10 other bidders ranging from pure-play parking management companies to investment firms.
In Chicago, a different Morgan Stanley venture may reap $9.58 billion in profit over a 75-year lease of city parking facilities, based on documents from the group. The bank, joined by the Abu Dhabi Investment Authority and Allianz Capital Partners, set up a venture to lease the Chicago operations in 2008. The profit was estimated based on projections in a 2010 offering document.
Central Parking System, Inc., has sold its wholly owned New York City property subsidiary PropCo properties.
In the first of two transactions, Nashville-based Central completed the sale of six parking garages located in Manhattan to affiliates of Extell Development Company. As part of the transaction, Central will continue to manage the parking garage properties for Extell. Financial terms of the deal were not disclosed.
Proceeds of the transaction were utilized to retire all of PropCo’s outstanding debt.
Central also announced that it has agreed to sell the remaining properties in its PropCo subsidiary. The sale is scheduled to close during the company’s second fiscal year quarter.
Central Parking System announced today that it has promoted Renee Dowell to the position of senior vice president of client services. In her new role, Dowell will take the helm of the newly formed Client Services Group, which will handle the company's client communication program and focus on improving client service levels.