JACKSON, Miss., July 20 /PRNewswire-FirstCall/ -- PARKWAY PROPERTIES, INC. has received a formal notice from the Area Director of the Occupational Safety and Health Administration ("OSHA"), that former Chief Financial Officer, J. Mitchell Collins, has withdrawn the Sarbanes-Oxley complaint that Collins filed with OSHA on April 20, 2010, where Collins alleged that he was wrongfully terminated; that the Company's 2010 financial guidance was inaccurate; and that the events surrounding his February 5, 2010 separation were communicated inaccurately. Despite dropping his Sarbanes-Oxley complaint, however, Mr. Collins served Parkway a Hinds County (Mississippi) personal injury suit making claims essentially the same as in the withdrawn OSHA/Sarbanes-Oxley complaint. Mr. Collins has also threatened other actions against the Company, its directors and officers based on the same allegations as set forth in his personal injury suit. The Company has carefully reviewed the complaint and has concluded that it is without basis in fact or law. The Company has filed its answer to Collins' suit and will defend itself vigorously.
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Management believes the final outcome of these proceedings will not have a material adverse effect on the Company's financial statements and that the Company carries adequate amounts of applicable employment practices insurance to cover such matters. During the first quarter of 2010, the Company recorded a $545,000 reserve, which represents the sum of the insurance deductibles under the applicable insurance policies, if needed.
The Company's 2010 financial guidance was provided in the form of a conservative range and was based on an internal budget, entirely consistent with the prior year's practice, both during and prior to Collins' tenure as CFO. Parkway reported results for the first quarter of 2010 in excess of its internal projections. The Company takes this opportunity to re-affirm its guidance as detailed in the press release dated February 8, 2010 and updated and reaffirmed on May 3, 2010. The Company will provide detail to support its reaffirmation in its second quarter 2010 earnings release on August 2, 2010 and conference call on August 3, 2010.
Leland R. Speed, Chairman of the Board of Parkway and Steven G. Rogers, President and Chief Executive Officer jointly stated, "We are disappointed in the behavior and actions of Mr. Collins. We were deliberately succinct in our disclosure on this matter in our February 9, 2010 and May 4, 2010, investor conference calls in an effort to treat this matter with confidentiality. We are taking appropriate legal actions to defend the Company against these false claims. We now believe that all of our constituencies should be aware of the facts and circumstances surrounding Mr. Collins' departure, which are outlined clearly and in detail in the answer to the complaint."
About Parkway Properties
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 64 office properties located in 11 states with an aggregate of approximately 13.2 million square feet of leasable space at July 20, 2010. Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 29.3% of the portfolio. Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 2.8 million square feet for third-party owners at July 20, 2010.
Parkway Properties, Inc.'s press releases and additional information about the Company are available at http://www.pky.com/.
Forward Looking Statement
Certain statements in this release that are not in the present or past tense or discuss the Company's expectations (including the use of the words anticipate, believe, forecast, intends or project) are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company's properties for rental purposes; the amount and growth of the Company's expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties; risks associated with joint venture partners; the risks associated with the ownership and development of real property; the failure to acquire or sell properties as and when anticipated; and other risks and uncertainties detailed from time to time on the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements. The Company does not undertake to update forward-looking statements.
CONTACT: STEVEN G. ROGERS PRESIDENT & CHIEF EXECUTIVE OFFICER RICHARD G. HICKSON IV CHIEF FINANCIAL OFFICER MANDY M. POPE CHIEF ACCOUNTING OFFICER (601) 948-4091
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Parkway Properties, Inc.
CONTACT: Steven G. Rogers, President & Chief Executive Officer, Richard
G. Hickson IV, Chief Financial Officer, or Mandy M. Pope, Chief Accounting
Officer, all of Parkway Properties, Inc., +1-601-948-4091
Web Site: http://www.pky.com/
