SP Plus Corp - Quarter Report: 2011 June (Form 10-Q)

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

Commission file number: 000-50796

 

STANDARD PARKING CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware		16-1171179
(State or Other Jurisdiction of		(I.R.S. Employer Identification No.)
Incorporation or Organization)

900 N. Michigan Avenue, Suite 1600
Chicago, Illinois 60611-1542
(Address of Principal Executive Offices, Including Zip Code)

(312) 274-2000
(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NO o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES þ NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o		Accelerated filer þ		Non-accelerated filer o		Smaller reporting company o
				(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES o NO þ

As of August 3, 2011, there were 15,875,251 shares of common stock of the registrant outstanding.

 

 

STANDARD PARKING CORPORATION

FORM 10-Q INDEX

Part I. Financial Information
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets as of June 30, 2011 (Unaudited) and December 31, 2010			3
Condensed Consolidated Statements of Income (Unaudited) for the three months ended June 30, 2011 and 2010 and the six months ended June 30, 2011 and 2010			4
Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2011 and 2010			5
Notes to Condensed Consolidated Interim Financial Statements			6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3. Quantitative and Qualitative Disclosures about Market Risk			29
Item 4. Controls and Procedures			30
Part II. Other Information
Item 1. Legal Proceedings			31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			31
Item 6. Exhibits			32
Signatures			33
Index to Exhibits			34
EX-31.1
EX-31.2
EX-31.3
EX-32.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

STANDARD PARKING CORPORATION

		June 30, 2011				December 31, 2010
		(Unaudited)				(see Note)
ASSETS
Current assets:
Cash and cash equivalents		$	11,785			$	7,305
Notes and accounts receivable, net			47,681				52,167
Prepaid expenses and supplies			3,026				2,312
Deferred taxes			2,314				2,314
Total current assets			64,806				64,098
Leasehold improvements, equipment and construction in progress, net			16,703				16,839
Advances and deposits			5,062				5,172
Long-term receivables, net			12,959				12,789
Intangible and other assets, net			9,608				8,910
Cost of contracts, net			14,763				15,628
Goodwill			132,372				132,196
Total assets		$	256,273			$	255,632
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	48,534			$	43,984
Accrued and other current liabilities			33,883				39,982
Current portion of long-term borrowings			695				673
Total current liabilities			83,112				84,639
Deferred taxes			11,114				9,637
Long-term borrowings, excluding current portion			85,676				97,229
Other long-term liabilities			30,025				27,324
Standard Parking Corporation’s stockholders’ equity:
Preferred stock, par value $.01 per share; 5,000,000 shares authorized and no shares issued			—				—
Common stock, par value $.001 per share; 50,000,000 shares authorized; 15,853,251 and 15,775,645 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively			16				16
Treasury stock, at cost, 27,803 shares as of June 30, 2011 and no shares as of December 31, 2010			(431	)			—
Additional paid-in capital			98,967				97,291
Accumulated other comprehensive income			82				103
Accumulated deficit			(52,210	)			(60,532	)
Total Standard Parking Corporation stockholders’ equity			46,424				36,878
Noncontrolling interest			(78	)			(75	)
Total equity			46,346				36,803
Total liabilities and stockholders’ equity		$	256,273			$	255,632

See Notes to Condensed Consolidated Interim Financial Statements.

STANDARD PARKING CORPORATION

		Three Months Ended								Six Months Ended
		June 30, 2011				June 30, 2010				June 30, 2011				June 30, 2010
Parking services revenue:
Lease contracts		$	37,193			$	34,162			$	72,398			$	67,278
Management contracts			42,343				42,081				88,297				82,156
			79,536				76,243				160,695				149,434
Reimbursed management contract revenue			100,126				100,757				201,250				206,812
Total revenue			179,662				177,000				361,945				356,246
Cost of parking services:
Lease contracts			34,286				31,217				67,785				62,988
Management contracts			23,215				22,278				50,707				44,542
			57,501				53,495				118,492				107,530
Reimbursed management contract expense			100,126				100,757				201,250				206,812
Total cost of parking services			157,627				154,252				319,742				314,342
Gross profit:
Lease contracts			2,907				2,945				4,613				4,290
Management contracts			19,128				19,803				37,590				37,614
Total gross profit			22,035				22,748				42,203				41,904
General and administrative expenses (1)			11,597				12,218				22,779				23,778
Depreciation and amortization			1,677				1,570				3,210				3,030
Operating income			8,761				8,960				16,214				15,096
Other expenses (income):
Interest expense			1,180				1,398				2,349				2,888
Interest income			(113	)			(52	)			(173	)			(105	)
			1,067				1,346				2,176				2,783
Income before income taxes			7,694				7,614				14,038				12,313
Income tax expense			3,066				3,021				5,545				4,868
Net income			4,628				4,593				8,493				7,445
Less: Net income attributable to noncontrolling interest			85				85				171				92
Net income attributable to Standard Parking Corporation		$	4,543			$	4,508			$	8,322			$	7,353
Common stock data:
Net income per share:
Basic		$	0.29			$	0.29			$	0.53			$	0.48
Diluted		$	0.28			$	0.28			$	0.52			$	0.46
Weighted average shares outstanding:
Basic			15,834,622				15,531,726				15,812,910				15,461,904
Diluted			16,164,114				15,877,258				16,155,272				15,841,713

See Notes to Condensed Consolidated Interim Financial Statements.

STANDARD PARKING CORPORATION

		Six Months Ended
		June 30, 2011				June 30, 2010
Operating activities:
Net income		$	8,493			$	7,445
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization			3,238				2,998
(Gain) loss on sale and abandonment of assets			(36	)			37
Amortization of debt issuance costs			304				319
Non-cash stock-based compensation			1,313				1,237
Excess tax benefit related to stock option exercises			(220	)			(968	)
Provisions (reversal) for losses on accounts receivable			95				(55	)
Deferred income taxes			1,477				1,034
Change in operating assets and liabilities			3,838				(10,044	)
Net cash provided by operating activities			18,502				2,003
Investing activities:
Purchase of leasehold improvements and equipment			(1,836	)			(1,560	)
Cost of contracts purchased			(272	)			(121	)
Proceeds from sale of assets			79				—
Capitalized interest			(36	)			(71	)
Contingent purchase payments			(231	)			(104	)
Net cash used in investing activities			(2,296	)			(1,856	)
Financing activities:
Proceeds from exercise of stock options			143				1,069
Repurchase of common stock			(431	)			—
Tax benefit related to stock option exercises			220				968
Payments on senior credit facility			(11,200	)			(1,700	)
Distribution to noncontrolling interest			(174	)			(85	)
Payments on long-term borrowings			(67	)			(63	)
Payments on capital leases			(264	)			(276	)
Net cash used in financing activities			(11,773	)			(87	)
Effect of exchange rate changes on cash and cash equivalents			47				(34	)
Increase in cash and cash equivalents			4,480				26
Cash and cash equivalents at beginning of period			7,305				8,256
Cash and cash equivalents at end of period		$	11,785			$	8,282
Supplemental disclosures:
Cash paid during the period for:
Interest		$	2,105			$	2,691
Income taxes			3,692				3,032

See Notes to Condensed Consolidated Interim Financial Statements.

STANDARD PARKING CORPORATION

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Standard Parking Corporation have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.

In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation of the financial position and results of operations have been included. Operating results for the six-month period ended June 30, 2011 are not necessarily indicative of the results that might be expected for any other interim period or the fiscal year ending December 31, 2011. The financial statements presented in this report should be read in conjunction with the consolidated financial statements and footnotes thereto included in our 2010 Annual Report on Form 10-K filed March 11, 2011, as amended on March 22, 2011.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and variable interest entities in which the Company is the primary beneficiary. Noncontrolling interest recorded in the consolidated statement of income is the interest in consolidated VIEs which are not controlled by the Company. We have interests in twelve joint ventures and one limited liability company. The twelve joint ventures each operate between one and thirty-three parking facilities. The limited liability company was formed to collect and distribute parking facility data for a fee. Of the thirteen variable interest entities, seven are consolidated into our financial statements, and six are single purpose entities where the Company is not the primary beneficiary as power is shared. Investments in variable interest entities where the Company is not the primary beneficiary are accounted for under the equity method. All significant intercompany profits, transactions and balances have been eliminated in consolidation.

Financial Instruments

The carrying values of cash and cash equivalents, notes and accounts receivable and accounts payable are reasonable estimates of their fair value due to the short-term nature of these financial instruments. Long-term debt, including capital lease obligations, has a carrying value that approximates fair value because these instruments bear interest at market rates.

Interest Rate Caps

We do not enter into derivative instruments for any purpose other than cash flow hedging purposes.

On February 22, 2010, we entered into interest rate cap agreements with Wells Fargo Bank N.A. (“Wells Fargo”) and Fifth Third Bank (“Fifth Third”), allowing us to limit our exposure on a portion of our borrowings under our senior credit facility (“Rate Cap Transactions”). Pursuant to two separate letter agreements between the Company and Wells Fargo and Fifth Third, respectively, we will receive payments from Wells Fargo and Fifth Third each quarterly period to the extent that the prevailing three month LIBOR during that period exceeds our cap rate of 3.25%. The Rate Cap Transactions became effective March 31, 2010, and settle each quarter on a date that is intended to coincide with our quarterly interest payment dates under our senior credit facility. The Rate Cap Transactions cap our LIBOR interest rate on a notional amount of $50,000 at 3.25% for a total of 39 months. These Rate Cap Transactions are classified as a cash flow hedge, and we calculate the effectiveness of the hedge on a quarterly basis. The ineffective portion of the cash flow hedge is recognized in current period earnings as an increase of interest expense. The fair value of the interest rate cap at June 30, 2011 is $32 and is included in prepaid expenses.

2. Stock-Based Compensation

We measure share-based compensation expense at the grant date, based on the fair value of the award, and the expense is recognized over the requisite employee service period (the vesting period) for awards expected to vest (considering estimated forfeitures).

The Company has an amended and restated Long-Term Incentive Plan that was adopted in conjunction with our initial public offering. On April 22, 2008, our shareholders approved an amendment to our Long-Term Incentive Plan that increased the maximum number of shares of common stock available for awards under the Long-Term Incentive Plan from 2,000,000 to 2,175,000 and extended the Plan’s termination date. The Plan now terminates twenty years from the date of such approval, or April 22, 2028. Forfeited and expired options under the Plan become generally available for reissuance. At June 30, 2011, 121,493 shares remained available for award under the Plan.

Stock Options and Grants

We use the Black-Scholes option pricing model to estimate the fair value of each option grant as of the date of grant. The volatilities are based on the 90-day historical volatility of our common stock as of the grant date. The risk free interest rate is based on zero-coupon U.S. government issues with a remaining term equal to the expected life of the option. For options granted prior to 2008, the expected life for options was calculated using the simplified method. The simplified method was calculated as the vesting term plus the contractual term divided by two.

There were no options granted during the six months ended June 30, 2011 and 2010.

The Company recognized no stock-based compensation expense related to stock options for the six months ended June 30, 2011 and 2010 as all options previously granted were fully vested. As of June 30, 2011, there were no unrecognized compensation costs related to unvested options.

On April 29, 2011, we authorized vested stock grants to certain directors totaling 14,009 shares. The total value of the grant was $245 and is included in general and administrative expenses.

Restricted Stock Units

In March 2008, the Company’s Compensation Committee and the Board of Directors authorized a one-time grant of 750,000 restricted stock units that subsequently were awarded to members of our senior management team on July 1, 2008. In November 2008, an additional 5,000 restricted stock units were awarded. The restricted stock units vest primarily in one-third installments on each of the tenth, eleventh and twelfth anniversaries of the grant date. The restricted stock unit agreements provide for accelerated vesting upon the recipient reaching their retirement age.

The fair value of restricted stock units is determined using the fair value of our common stock on the date of the grant, and compensation expense is recognized over the vesting period. In accordance with the guidance related to share-based payments, we estimated forfeitures at the time of the grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We use historical data to estimate pre-vesting forfeitures and record stock-based compensation expense only for those awards that are expected to vest.

During the first six months of 2011, 68,400 restricted stock units vested and 17,600 restricted stock units were forfeited. The forfeited units were returned to the pool of shares generally available for future use under the Long-Term Incentive Plan as of June 30, 2011.

The Company recognized $572 and $1,068 of stock-based compensation expense related to the restricted stock units for the three and six months ended June 30, 2011, respectively, which is included in general and administrative expenses. The Company recognized $509 and $1,017 of stock based compensation expense related to the restricted stock units for the three and six months ended June 30, 2010, respectively, which is included in general and administrative expenses. As of June 30, 2011, there was $6,567 of unrecognized stock-based compensation costs, net of estimated forfeitures, related to the restricted stock units that are expected to be recognized over a weighted average remaining period of approximately 6.8 years.

3. Net Income Per Common Share

Companies are required to present basic and diluted earnings per share. Basic net income per share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per share is based upon the weighted daily average number of shares of common stock outstanding for the period plus dilutive potential common shares, including stock options and restricted stock units using the treasury-stock method.

A reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding is as follows (unaudited):

		Three Months Ended June 30								Six Months Ended June 30
		2011				2010				2011				2010
Weighted average common basic shares outstanding			15,834,622				15,531,726				15,812,910				15,461,904
Effect of dilutive stock options and restricted stock units			329,492				345,532				342,362				379,809
Weighted average common diluted shares outstanding			16,164,114				15,877,258				16,155,272				15,841,713
Net income per share:
Basic		$	0.29			$	0.29			$	0.53			$	0.48
Diluted		$	0.28			$	0.28			$	0.52			$	0.46

There were 9,534 and 19,068 anti-dilutive options excluded in the computation of diluted earnings per share for the three and six months ended June 30, 2011 and 2010, respectively, because the options’ exercise prices were greater than the average market price of the common stock.

There are no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share, other than those disclosed.

4. Recently Issued Accounting Pronouncements

Accounting Standards Net Yet Adopted

In December 2010, the Financial Accounting Standards Board (“FASB”) issued updated accounting guidance related to the disclosure of supplementary pro forma information for business combinations to specify that if a company presents comparative financial statements, it should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current period, occurred at the beginning of the comparable prior annual reporting period. This guidance is effective prospectively for business combinations for which the acquisition date in, on or after the beginning of the first annual reporting period beginning on or after December 15, 2010. Early adoption is permitted. The Company does not expect the provisions of this update to have a material effect on its consolidated financial statements.

In December 2010, the FASB issued updated accounting guidance to modify Step 1 of the goodwill impairment test; requiring companies with reporting units with zero or negative carrying amounts to perform Step 2 of the goodwill impairment analysis if it is more likely than not that a goodwill impairment exists. This guidance is effective for fiscal years beginning after December 15, 2010. Early adoption is not permitted. This guidance is not expected to have a material impact on the Company.

In May 2011, the FASB issued updated accounting guidance related to amendments to achieve common fair value measurement and disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2011. Early adoption is not permitted. We are currently evaluating how we will adopt this new guidance and the impact, if any, the adoption will have on our future results of operations and financial condition.

In June 2011, the FASB issued updated accounting guidance related to the presentation of comprehensive income; requiring companies to replace the statement of net income with a statement of comprehensive income. This guidance is effective for fiscal years beginning after December 15, 2011. Early adoption is not permitted. The adoption of this update will impact the presentation and disclosure of the Company’s financial statements but will not impact the Company’s results of operations, financial position, or cash flows.

5. Acquisitions

2010 Acquisitions

On December 8, 2010, the Company acquired Expert Parking, Inc. and Expert Parking Management, Inc. in a stock purchase transaction for a purchase price in the amount of $5,977 net of cash acquired, of which $3,597 was paid in cash, and $2,380 of estimated earn-out payments to be paid over five years, which are contingent upon achieving certain financial performance targets. Expert Parking, based in Philadelphia, Pennsylvania, operates and manages garages in Pennsylvania and New Jersey.

The net cash paid at the time of the acquisition of $3,597 consisted of accounts receivable of $569, intangible assets with finite lives of $3,150 and goodwill of $3,489, offset by accounts payable of $580, accrued expenses of $757 and long term liabilities of $2,274.

The acquisition represents an acquisition of a business and was accounted for using the purchase method of accounting. The purchase price allocation is based on preliminary estimates of goodwill. These estimates are subject to revision after the Company completes its fair value analysis. The Company financed the acquisition through additional term borrowings under the senior credit facility and existing cash. The results of operations of this acquisition are included in the Company’s consolidated statement of income from the date of acquisition.

The Company expensed acquisition related costs of $10 in 2011 and $207 in 2010. These costs are included in general and administrative expenses in the income statement. The amount of goodwill that is expected to be deductible for tax purposes is $1,396.

6. Leasehold Improvements, Equipment and Construction in Progress, Net

A summary of leasehold improvements, equipment, and construction in progress and related accumulated depreciation and amortization is as follows:

		Ranges of Estimated
		useful life		June 30, 2011				December 31, 2010
		(Unaudited)
Equipment		2-10 years		$	35,949			$	30,982
Leasehold improvements		Shorter of lease term
		or economic life up to
		10 years			10,027				9,642
Construction in progress					2,100				6,025
					48,076				46,649
Less accumulated depreciation and amortization					(31,373	)			(29,810	)
Leasehold improvements, equipment and construction in progress, net				$	16,703			$	16,839

Depreciation expense was $1,016 and $1,947 for the three and six months ended June 30, 2011, respectively, and $946 and $1,865 for the three and six months ended June 30, 2010, respectively. Depreciation includes gains on sale and abandonment of leasehold improvements and equipment of $47 and $36 for the three and six months ended June 30, 2011, respectively, and losses on the sale and abandonment of leasehold improvements and equipment of $19 and $37 for the three and six months ended June 30, 2010, respectively.

7. Cost of Contracts, Net

Cost of contracts represents the contractual rights associated with providing parking services at a managed or leased facility. Cost consists of either capitalized payments made to third parties or the value ascribed to contracts acquired through acquisition. Cost of contracts is amortized over the estimated life of the contracts, including anticipated renewals and terminations.

The balance of cost of contracts is comprised of the following:

		June 30, 2011				December 31, 2010
		(Unaudited)
Cost of contracts		$	23,545			$	23,273
Accumulated amortization			(8,782	)			(7,645	)
Cost of contracts, net		$	14,763			$	15,628

Amortization expense related to cost of contracts was $570 and $1,137 for the three and six months ended June 30, 2011, respectively, and $450 and $806 for the three and six months ended June 30, 2010 respectively. The weighted average useful life is 9.5 years for 2011 and 2010.

8. Goodwill

Goodwill is assigned to reporting units based upon the specific Region where the assets are acquired and associate goodwill resided.

The following table reflects the changes in the carrying amounts of goodwill by reported segment for the six months ended June 30, 2011 (unaudited).

		Region				Region				Region				Region
		One				Two				Three				Four				Total
Balance as of January 1, 2011		$	65,664			$	8,714			$	35,241			$	22,577			$	132,196
Foreign currency translation			—				176				—				—				176
Balance as of June 30, 2011		$	65,664			$	8,890			$	35,241			$	22,577			$	132,372

9. Long-Term Receivables, Net

		Amount Outstanding
		June 30, 2011				December 31, 2010
		(Unaudited)
Bradley International Airport
Deficiency payments		$	12,240			$	12,070
Other Bradley related, net			3,203				3,203
Valuation allowance			(2,484	)			(2,484	)
Total long-term receivables, net		$	12,959			$	12,789

Agreement

We entered into a 25-year agreement with the State of Connecticut that expires on April 6, 2025, under which we operate the surface parking and 3,500 garage parking spaces at Bradley International Airport located in the Hartford, Connecticut metropolitan area. The Company manages the facility for which it is expected to receive a management fee.

The parking garage was financed on April 6, 2000 through the issuance of $53,800 of State of Connecticut special facility revenue bonds, representing $47,700 non-taxable Series A bonds and a separate taxable issuance of $6,100 Series B bonds. The Series B bonds were retired on July 1, 2006 according to the terms of the indenture. The Bradley agreement provides that we deposit with a trustee for the bondholders all gross revenues collected from operations of the surface and garage parking, and from these gross revenues, the trustee pays debt service on the special facility revenue bonds outstanding, operating and capital maintenance expenses of the surface and garage parking facilities excluding our management fee discussed below, and specific annual guaranteed minimum payments to the State. Principal and interest on the Bradley special facility revenue bonds increase from approximately $3,600 in lease year 2002 to approximately $4,500 in lease year 2025. Annual guaranteed minimum payments to the State will increase from approximately $8,300 in lease year 2002 to approximately $13,200 in lease year 2024. The annual minimum guaranteed payment to the State by the trustee for the six months ended June 30, 2011 and 2010 was $5,028 and $4,925, respectively.

All of the cash flow from the parking facilities is pledged to the security of the special facility revenue bonds and is collected and deposited with the bond trustee. Each month the bond trustee makes certain required monthly distributions, which are characterized as “Guaranteed Payments.” To the extent the monthly gross receipts generated by the parking facilities are not sufficient for the trustee to make the required Guaranteed Payments, we are obligated to deliver the deficiency amount to the trustee. Additionally, the Guaranteed Payments are required to be paid before we are reimbursed for deficiency payments or management fees.

The following is the list of Guaranteed Payments:

•

Garage and surface operating expenses,

•

Principal and interest on the special facility revenue bonds,

•

Trustee expenses,

•

Major maintenance and capital improvement deposits, and

•

State Minimum Guarantee.

However, to the extent there is a cash surplus in any month during the term of the lease, we have the right to be repaid the principal amount of any and all deficiency payments previously made, together with actual interest expenses and a premium, not to exceed 10% of the initial deficiency payment. We calculate and record interest income and premium income in the period the associated deficiency payment is received from the trustee.

Deficiency Payments

To the extent that monthly gross receipts are not sufficient for the trustee to make the required payments, we are obligated pursuant to our agreement to deliver the deficiency amount to the trustee within three business days of being notified. We are responsible for these deficiency payments regardless of the amount of utilization for the Bradley parking facilities. The deficiency payments represent contingent interest bearing advances to the trustee to cover operating cash flow requirements. To the extent sufficient funds are available in the appropriate fund, the trustee is then directed by the State to reimburse us for deficiency payments up to the amount of the calculated surplus.

In the six months ended June 30, 2011, we made deficiency payments (net of repayments received) of $170. In addition we received $54 in premium income on deficiency payments from the trustee and we did not record or receive any interest income on deficiency repayments from the trustee. In the six months ended June 30, 2010, we made deficiency payments of $1,726 and we did not record or receive any interest and premium income related to deficiency repayments from the trustee. The receivable from the trustee for interest and premium income related to deficiency repayments was $0 as of June 30, 2011 and June 30, 2010.

The deficiency payments, if any, are recorded as a receivable by us for which we are reimbursed from time to time as provided in the trust agreement. As of June 30, 2011 and December 31, 2010, we have a receivable of $12,240 and $12,070, respectively, compromised of cumulative deficiency payments to the trustee, net of reimbursements. We believe these advances to be fully recoverable and therefore have not recorded a valuation allowance for them. We do not guarantee the payment of any principal or interest on any debt obligations of the State of Connecticut or the trustee.

The Construction, Financing and Operating Special Facility Lease Agreement, which governs reimbursement of Guarantor Payments, places no time restriction or limits on our right to reimbursement.

The following table reconciles the beginning and ending balance of the receivable for each period presented:

		June 30, 2011				December 31, 2010
		(Unaudited)
Deficiency payments:
Balance at beginning of period		$	12,070			$	9,606
Deficiency payments made			549				2,724
Deficiency repayment received			(379	)			(260	)
Balance at end of period			12,240				12,070
Other Bradley related			3,203				3,203
Valuation allowance			(2,484	)			(2,484	)
Total long-term receivables		$	12,959			$	12,789

Compensation

In addition to the recovery of certain general and administrative expenses incurred, our agreement provides for an annual management fee payment which is based on three operating profit tiers calculated for each year during the term of the agreement. The management fee is further apportioned 60% to us and 40% to an un-affiliated entity. To the extent that funds are available for the trustee to make a distribution, the annual management fee is paid when sufficient cash is paid after the Guaranteed Payments (as defined in our agreement), and after the repayment of all deficiency payments, including accrued interest and premium. However, our right to the management fee accrues each year during the term of the agreement and is paid when sufficient cash is available for the trustee to make a distribution.

The annual management fee is paid after the repayment of all deficiency payments, including accrued interest and premium. Therefore, due to the existence and length of time for repayment of the deficiency amounts to the Company, no management fees have been recognized. Management fees will be recognized in accordance with SAB 104 when “collectability is reasonably assured.”

Cumulative management fees of $5,100 have not been recognized as of June 30, 2011 and no management fee income was recognized during the six months ending June 30, 2011 and 2010.

10. Borrowing Arrangements

Long-term borrowings, in order of preference, consist of:

		Amount Outstanding
		Due Date				June 30, 2011				December 31, 2010
		(Unaudited)
Revolving senior credit facility		June 2013				$	84,000			$	95,200
Capital lease obligations		Various					1,260				1,525
Obligations on seller notes and other		Various					1,111				1,177
							86,371				97,902
Less current portion							695				673
						$	85,676			$	97,229

Senior Credit Facility

On July 15, 2008, we amended and restated our credit facility.

The $210,000 revolving senior credit facility will expire June 29, 2013. In addition, the revolving senior credit facility includes a letter of credit sub-facility with a sublimit of $50,000 and a swing line sub-facility with a sublimit of $10,000. The $50,000 letter of credit sub-facility does not limit the maximum actual borrowings on the revolving senior credit facility.

This revolving senior credit facility bears interest, at our option, at either (1) LIBOR plus an applicable LIBOR margin of between 2.00% and 3.50% depending on the ratio of our total funded indebtedness to our EBITDA from time to time (“Total Debt Ratio”) or (2) the Base Rate (as defined below) plus an applicable Base Rate Margin of between 0.50% and 2.00% depending on our Total Debt Ratio. We may elect interest periods of one, two, three or six months for LIBOR based borrowings. The Base Rate is the greater of (i) the rate publicly announced from time to time by Bank of America, N.A. as its “prime rate”, or (ii) the overnight federal funds rate plus 0.50%.

Certain financial covenants limit the Company’s capacity to fully draw on its $210,000 revolving credit facility. Our senior credit facility includes a fixed charge ratio covenant, a total debt to EBITDA ratio covenant, a limit on our ability to incur additional indebtedness, issue preferred stock or pay dividends, and certain other restrictions on our activities. We are required to repay borrowings under our senior credit facility out of the proceeds of future issuances of debt or equity securities and asset sales, subject to certain customary exceptions. Our senior credit facility is secured by substantially all of our assets and all assets acquired in the future (including a pledge of 100% of the stock of our existing and future domestic guarantor subsidiaries and 65% of the stock of our existing and future foreign subsidiaries).

We are in compliance with all of our financial covenants as of June 30, 2011.

The weighted average interest rate on our senior credit facility at June 30, 2011 and December 31, 2010 was 2.5% and 2.6%, respectively. The rate includes all outstanding LIBOR contracts, interest rate cap effect and letters of credit. The weighted average interest rate on outstanding borrowings, not including letters of credit, was 2.5% and 2.6% at June 30, 2011 and December 31, 2010, respectively.

At June 30, 2011, we had $16,773 of letters of credit outstanding under the senior credit facility, borrowings against the senior credit facility aggregated $84,000, and we had $59,279 available under the senior credit facility.

11. Business Unit Segment Information

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by our chief operating decision maker, in deciding how to allocate resources. Our chief operating decision maker is the Company’s President and Chief Executive Officer.

Each of the operating segments is directly responsible for revenue and expenses related to their operations including direct regional administrative costs. Finance, information technology, human resources, and legal are shared functions that are not allocated back to the four operating segments. The CODM assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest, taxes, and depreciation and amortization, but does not evaluate segments using discrete asset information. There are no inter-segment transactions and the Company does not allocate interest and other income, interest expense, depreciation and amortization or taxes to operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

Our business is managed based on regions administered by executive vice presidents. The following is a summary of revenues (excluding reimbursed management contract revenue) and gross profit by regions for the three and six months ended June 30, 2011 and 2010. Information related to prior periods has been recast to conform to the current region alignment.

The Company has provided this business unit segment information for all comparable prior periods. Segment information is summarized as follows (in thousands):

		For the three months ended																For the six months ended
		June 30,				Gross				June 30,				Gross				June 30,				Gross				June 30,				Gross
		2011				Margin				2010				Margin				2011				Margin				2010				Margin
Revenues:
Region One
Lease contracts		$	20,649							$	18,309							$	39,591							$	35,344
Management contracts			13,340								12,000								26,595								23,906
Total Region One			33,989								30,309								66,186								59,250
Region Two
Lease contracts			682								561								1,340								1,307
Management contracts			3,911								4,825								12,658								12,931
Total Region Two			4,593								5,386								13,998								14,238
Region Three
Lease contracts			5,809								5,171								11,498								10,126
Management contracts			12,847								12,876								24,953								25,319
Total Region Three			18,656								18,047								36,451								35,445
Region Four
Lease contracts			10,048								10,110								19,963								20,485
Management contracts			12,025								12,325								23,772								19,873
Total Region Four			22,073								22,435								43,735								40,358
Other
Lease contracts			5								11								6								16
Management contracts			220								55								319								127
Total Other			225								66								325								143
Reimbursed revenue			100,126								100,757								201,250								206,812
Total revenues		$	179,662							$	177,000							$	361,945							$	356,246
Gross Profit
Region One
Lease contracts		$	1,741				8	%		$	1,610				9	%		$	2,295				6	%		$	1,762				5	%
Management contracts			7,420				56	%			7,126				59	%			14,130				53	%			13,354				56	%
Total Region One			9,161								8,736								16,425								15,116
Region Two
Lease contracts			49				7	%			58				10	%			152				11	%			133				10	%
Management contracts			1,211				31	%			1,518				31	%			2,957				23	%			3,722				29	%
Total Region Two			1,260								1,576								3,109								3,855
Region Three
Lease contracts			599				10	%			432				8	%			1,160				10	%			800				8	%
Management contracts			6,145				48	%			6,476				50	%			11,930				48	%			12,231				48	%
Total Region Three			6,744								6,908								13,090								13,031
Region Four
Lease contracts			656				7	%			856				8	%			1,230				6	%			1,522				7	%
Management contracts			4,009				33	%			4,265				35	%			8,156				34	%			7,883				40	%
Total Region Four			4,665								5,121								9,386								9,405
Other
Lease contracts			(138	)			(2,760	)%			(11	)			(100	)%			(224	)			(3,733	)%			73				456	%
Management contracts			343				156	%			418				760	%			417				131	%			424				334	%
Total Other			205								407								193								497
Total gross profit			22,035								22,748								42,203								41,904
General and administrative expenses			11,597								12,218								22,779								23,778
General and administrative expense percentage of gross profit			53	%							54	%							54	%							57	%
Depreciation and amortization			1,677								1,570								3,210								3,030
Operating income			8,761								8,960								16,214								15,096
Other expenses (income):
Interest expense			1,180								1,398								2,349								2,888
Interest income			(113	)							(52	)							(173	)							(105	)
			1,067								1,346								2,176								2,783
Income before income taxes			7,694								7,614								14,038								12,313
Income tax expense			3,066								3,021								5,545								4,868
Net income			4,628								4,593								8,493								7,445
Less: Net income attributable to noncontrolling interest			85								85								171								92
Net income attributable to Standard Parking Corporation		$	4,543							$	4,508							$	8,322							$	7,353

Region One encompasses operations in Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Region Two encompasses our Canadian operations, event planning and transportation, and our technology-based parking and traffic management systems.

Region Three encompasses operations in Arizona, California, Colorado, Hawaii, Louisiana, Minnesota, Nevada, Ohio, Texas, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Other consists of ancillary revenue that is not specifically identifiable to a region and insurance reserve adjustments related to prior years.

The CODM does not evaluate segments using discrete asset information.

12. Comprehensive Income

Comprehensive income consists of the following components, net of tax (unaudited):

		For the three months ended								For the six months ended
		June 30, 2011				June 30, 2010				June 30, 2011				June 30, 2010
Net income		$	4,628			$	4,593			$	8,493			$	7,445
Revaluation of interest rate cap			(39	)			(201	)			(68	)			(360	)
Effect of foreign currency translation			(46	)			(176	)			47				(34	)
Comprehensive income			4,543				4,216				8,472				7,051
Less: comprehensive income attributable to noncontrolling interest			85				85				171				92
Comprehensive income attributable to Standard Parking Corporation		$	4,458			$	4,131			$	8,301			$	6,959

13. Income Taxes

For the three months ended June 30, 2011, the Company recognized income tax expense of $3,066 on pre-tax earnings of $7,694 compared to $3,021 income tax expense on pre-tax earnings of $7,614 for the three months ended June 30, 2010. For the six months ended June 30, 2011, the Company recognized income tax expense of $5,545 on pre-tax earnings of $14,038 compared to $4,868 income tax expense on pre-tax earnings of $12,313 for the six months ended June 30, 2010. Income tax expense is based on a projected effective tax rate of approximately 39.5% for the six months ended June 30, 2011 compared to approximately 39.5% for the six months ended June 30, 2010. The Company’s effective tax rate did not change compared to the six months ended June 30, 2010.

As of June 30, 2011, the Company has not identified any uncertain tax positions that would have a material impact on the Company’s financial position. The Company recognizes potential interest and penalties related to uncertain tax positions, if any, in income tax expense.

The tax years that remain subject to examination for the Company’s major tax jurisdictions at June 30, 2011 are shown below:

2004 — 2009		United States — federal income tax
2004 — 2009		United States — state and local income tax
2006 — 2009		Canada

14. Legal Proceedings

We are subject to litigation in the normal course of our business. The outcomes of legal proceedings and claims brought against us and other loss contingencies are subject to significant uncertainty. We accrue a charge against income when our management determines that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. In addition, we accrue for the authoritative judgments or assertions made against us by government agencies at the time of their rendering regardless of our intent to appeal. In determining the appropriate accounting for loss contingencies, we consider the likelihood of loss or impairment of an asset or the incurrence of a liability, as well as our ability to reasonably estimate the amount of loss. We regularly evaluate current information available to us to determine whether an accrual should be established or adjusted. Estimating the probability that a loss will occur and estimating the amount of a loss or a range of loss involves significant judgment.

15. Fair Value Measurement

The Company applies the accounting standards for fair value measurements and disclosures for its financial assets and financial liabilities. The guidance requires disclosures about assets and liabilities measured at fair value. The Company’s financial assets relate to the interest rate cap of $32 and the Company’s financial liabilities relate to contingent earn-out payments of $6,484 as of June 30, 2011.

The accounting guidance for fair value measurements and disclosures includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels:

•		Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.
•		Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data.
•		Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

The significant inputs used to derive the fair value of the amounts due to seller include financial forecasts of future operating results, the probability of reaching the forecast and the associated discount rate. The probability of the contingent consideration ranges from 20% to 95%, with a weighted average discount rate of 13%. The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis and the basis of measurement at June 30, 2011:

		Total Fair Value
		Measurement				Level 1				Level 2				Level 3
Assets:
Interest Rate Cap		$	32			$	—			$	32			$	—
Liabilities:
Due to seller		$	6,484			$	—			$	—			$	6,484

The following table provides a reconciliation of the beginning and ending balances for the liabilities measured at fair value using significant unobservable inputs (Level 3):

		Due to Seller
Balance at December 31, 2010		$	6,807
Contingent earn-out payments-payments made to seller			—
Contingent earn-out payments-change in fair value			(323	)
Balance at June 30, 2011		$	6,484

For the six months ended June 30, 2011, the Company recorded adjustments to the original contingent consideration obligation recorded upon the acquisition of Gameday Management Group U.S. The adjustments were the result of using revised forecasts and updated fair value measurements that adjusted the Company’s potential earn-out payments related to the purchase of this business.

For the three and six months ended June 30, 2011, the Company recognized a benefit of $207 and $323, respectively, which is included in general and administrative expenses in the statement of income due to the change in fair value measurements using a level three valuation technique.

16. Stock Repurchases

2011 Stock Repurchases

In June 2011, our Board of Directors authorized us to repurchase shares of our common stock, on the open market, up to $20,000 in aggregate and cancelled a prior authorization from 2008.

During the second quarter of 2011, we repurchased 27,803 shares from third party shareholders at an average price of $15.52 per share, including average commissions of $0.03 per share, on the open market. The total value of the second quarter transactions was $431. At June 30, 2011, 27,803 shares were held as treasury stock. In July 2011 we returned the shares to authorized and unissued.

As of June 30, 2011, $19,569 remained available for repurchase under the June 2011 authorization by the Board of Directors.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our results of operations should be read in conjunction with the consolidated financial statements and the notes thereto contained in this Quarterly Report on Form 10-Q and the consolidated financial statements and the notes thereto included in our Annual Report on our Form 10-K, as amended, for the year ended December 31, 2010.

Overview

Our Business

We manage parking facilities in urban markets and at airports across the United States and in four Canadian provinces. We do not own any facilities, but instead enter into contractual relationships with property owners or managers.

We operate our clients’ properties through two types of arrangements: management contracts and leases. Under a management contract, we typically receive a base monthly fee for managing the facility, and we may also receive an incentive fee based on the achievement of facility performance objectives. We also receive fees for ancillary services. Typically, all of the underlying revenue and expenses under a standard management contract flow through to our clients rather than to us. However, some management contracts, which are referred to as “reverse” management contracts, usually provide for larger management fees and require us to pay various costs. Under lease arrangements, we generally pay to the property owner either a fixed annual rent, a percentage of gross customer collections or a combination thereof. We collect all revenue under lease arrangements and we are responsible for most operating expenses, but we are typically not responsible for major maintenance, capital expenditures or real estate taxes. Margins for lease contracts vary significantly, not only due to operating performance, but also due to variability of parking rates in different cities and varying space utilization by parking facility type and location. As of June 30, 2011, we operated approximately 90% of our locations under management contracts and approximately 10% of our locations under leases. For the six months ended June 30, 2011, we derived approximately 89% of our gross profit under management contracts and approximately 11% of our gross profit under leases.

In evaluating our financial condition and operating performance, management’s primary focus is on our gross profit, total general and administrative expenses and general and administrative expenses as a percentage of our gross profit. Although the underlying economics to us of management contracts and leases are similar, the manner in which we are required to account for them differs. Revenue from leases includes all gross customer collections derived from our leased locations (net of parking tax), whereas revenue from management contracts only includes our contractually agreed upon management fees and amounts attributable to ancillary services. Gross customer collections at facilities under management contracts, therefore, are not included in our revenue. Accordingly, while a change in the proportion of our operating agreements that are structured as leases versus management contracts may cause significant fluctuations in reported revenue and expense of parking services, that change will not artificially affect our gross profit. For example, as of June 30, 2011, we operated approximately 90% of our locations under management contracts, and for the six months ended June 30, 2011, we derived approximately 89% of our gross profit under management contracts. Only approximately 55% of total revenue (excluding reimbursed management contract revenue), however, was from management contracts because under those contracts the revenue collected from parking customers belongs to our clients. Therefore, gross profit and total general and administrative expenses, rather than revenue, are management’s primary focus.

General Business Trends

We believe that sophisticated commercial real estate developers and property managers and owners recognize the opportunity for parking and related services to be a profit generator rather than a cost center. Often, the parking experience makes both the first and the last impressions on their properties’ tenants and visitors. By outsourcing these services, they are able to capture additional profit by leveraging the unique operational skills and controls that an experienced parking management company can offer. Our ability to consistently deliver a uniformly high level of parking and related services and maximize the profit to our clients improves our ability to win contracts and retain existing locations. Our location retention rate for the twelve-month period ended June 30, 2011 was approximately 91%, compared to approximately 89% for the twelve-month period ended June 30, 2010, which also reflects our decision not to renew, or to terminate, unprofitable contracts.

For the six months ended June 30, 2011 compared to the six months ended June 30, 2010, average gross profit per location increased by 3.2% from $19.3 thousand to $19.9 thousand due primarily to an increase in same location gross profit..

Summary of Operating Facilities

We focus our operations in core markets where a concentration of locations improves customer service levels and operating margins. The following table reflects our facilities operated at the end of the periods indicated:

		June 30, 2011				December 31, 2010				June 30, 2010
Managed facilities			1,913				1,907				1,966
Leased facilities			211				212				210
Total facilities			2,124				2,119				2,176

Revenue

We recognize parking services revenue from lease and management contracts as the related services are provided. Substantially all of our revenue comes from the following two sources:

•

Parking services revenue—lease contracts. Parking services revenue related to lease contracts consist of all revenue received at a leased facility, including parking receipts (net of parking tax), consulting and real estate development fees, gains on sales of contracts and payments for exercising termination rights.

•

Parking services revenue—management contracts. Management contract revenue consists of management fees, including both fixed and performance-based fees, and amounts attributable to ancillary services such as accounting, equipment leasing, payments received for exercising termination rights, consulting, developmental fees, gains on sales of contracts, as well as insurance and other value-added services with respect to managed locations. We believe we generally purchase required insurance at lower rates than our clients can obtain on their own because we effectively self-insure for all liability and worker’s compensation claims by maintaining a large per-claim deductible. As a result, we have generated operating income on the insurance provided under our management contracts by focusing on our risk management efforts and controlling losses. Management contract revenue does not include gross customer collections at the managed locations as this revenue belongs to the property owner rather than to us. Management contracts generally provide us with a management fee regardless of the operating performance of the underlying facility.

Conversions between type of contracts (lease or management) are typically determined by our client and not us. Although the underlying economics to us of management contracts and leases are similar, the manner in which we account for them differs substantially.

Reimbursed Management Contract Revenue

Reimbursed management contract revenue consists of the direct reimbursement from the property owner for operating expenses incurred under a management contract, which is reflected in our revenue.

Cost of Parking Services

Our cost of parking services consists of the following:

•

Cost of parking services—lease contracts. The cost of parking services under a lease arrangement consists of contractual rental fees paid to the facility owner and all operating expenses incurred in connection with operating the leased facility. Contractual fees paid to the facility owner are generally based on either a fixed contractual amount or a percentage of gross revenue or a combination thereof. Generally, under a lease arrangement we are not responsible for major capital expenditures or real estate taxes.

•

Cost of parking services—management contracts. The cost of parking services under a management contract is generally the responsibility of the facility owner. As a result, these costs are not included in our results of operations. However, our reverse management contracts, which typically provide for larger management fees, do require us to pay for certain costs.

Reimbursed Management Contract Expense

Reimbursed management contract expense consists of direct reimbursed costs incurred on behalf of property owners under a management contract, which is reflected in our cost of parking services.

Gross Profit

Gross profit equals our revenue less the cost of generating such revenue. This is the key metric we use to examine our performance because it captures the underlying economic benefit to us of both lease contracts and management contracts.

General and Administrative Expenses

General and administrative expenses include salaries, wages, payroll taxes, insurance, travel and office related expenses for our headquarters, field offices, supervisory employees, and board of directors.

Depreciation and Amortization

Depreciation is determined using a straight-line method over the estimated useful lives of the various asset classes or in the case of leasehold improvements, over the initial term of the operating lease or its useful life, whichever is shorter. Intangible assets determined to have finite lives are amortized over their remaining useful life.

Results of Operations

Segments

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by our chief operating decision maker, in deciding how to allocate resources. Our chief operating decision maker is our president and chief executive officer.

Our business is managed based on regions administered by executive vice presidents. The following is a summary of revenues (excluding reimbursed management contract revenue) by region for the three and six months ended June 30, 2011 and 2010. Information related to prior years has been recast to conform to the new region alignment.

Region One encompasses operations in Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin.

Region Two encompasses our Canadian operations, event planning and transportation, and our technology-based parking and traffic management systems.

Region Three encompasses operations in Arizona, California, Colorado, Hawaii, Louisiana, Minnesota, Nevada, Ohio, Texas, Utah, Washington, and Wyoming.

Region Four encompasses all major airport and transportation operations nationwide.

Other consists of ancillary revenue that is not specifically identifiable to a region and insurance reserve adjustments related to prior years.

The following tables present the material factors that impact our financial statements on an operating segment basis.

Three Months ended June 30, 2011 Compared to Three Months ended June 30, 2010

Segment revenue information is summarized as follows:

		Three Months Ended June 30,
		Region One								Region Two								Region Three								Region Four								Other								Total								Variance
		2011				2010				2011				2010				2011				2010				2011				2010				2011				2010				2011				2010				Amount				%
		(in millions)
Lease contract revenue:
New location		$	2.9			$	0.1			$	—			$	—			$	0.8			$	0.2			$	—			$	—			$	—			$	—			$	3.7			$	0.3			$	3.4				1133.3
Contract expirations			—				0.8				—				—				—				0.1				—				0.3				—				—				—				1.2				(1.2	)			(100.0	)
Same location			17.8				17.0				0.7				0.6				5.0				4.9				10.0				9.9				—				—				33.5				32.4				1.1				3.4
Conversions			—				0.3				—				—				—				—				—				—				—				—				—				0.3				(0.3	)			(100.0	)
Total lease contract revenue		$	20.7			$	18.2			$	0.7			$	0.6			$	5.8			$	5.2			$	10.0			$	10.2			$	—			$	—			$	37.2			$	34.2			$	3.0				8.8
Management contract revenue:
New location		$	1.4			$	0.1			$	0.3			$	—			$	0.9			$	0.1			$	0.6			$	0.3			$	—			$	—			$	3.2			$	0.5			$	2.7				540.0
Contract expirations			0.2				1.7				—				2.0				0.1				1.1				—				0.2				—				—				0.3				5.0				(4.7	)			(94.0	)
Same location			11.7				10.2				3.6				2.8				11.9				11.7				11.4				11.9				0.2				—				38.8				36.6				2.2				6.0
Conversions			—				—				—				—				—				—				—				—				—				—				—				—				—				—
Total management contract revenue		$	13.3			$	12.0			$	3.9			$	4.8			$	12.9			$	12.9			$	12.0			$	12.4			$	0.2			$	—			$	42.3			$	42.1			$	0.2				0.5