SP® Plus Corporation (Nasdaq:SP), a best-in-class technology and
operations management provider of mobility services for aviation,
commercial, hospitality, and institutional clients throughout North
America and Europe, today announced its second quarter 2023
results.
Management Commentary
Marc Baumann, Chairman and Chief Executive Officer, said,
“Second quarter results again demonstrated how well aligned our
solutions and services are with emerging trends in market demand.
The artful combination of people and technology is yielding strong
returns, differentiating SP+ in the marketplace and underpinning a
record pace of new business wins.
“In our Commercial segment, high single-digit gross profit
growth was led by increased demand for our services across a broad
range of verticals, particularly health care, municipal, and large
event venues. We added 55 net new locations, the ninth
consecutive quarter of net location growth, and we improved our
trailing twelve-month retention to 94%, the highest in recent
memory. Aviation segment gross profit increased at a double-digit
rate, representing both acquisition and organic growth, and
benefitting from cross-selling additional services across our
airport locations.
“In the first half of 2023, adjusted gross profit increased by
13% and revenues excluding reimbursed expenses were up 15%. Based
on our increased gross profit contribution from high margin
technology services and a greater proportion of management fee
contracts, we expect this close correlation of revenue and gross
profit trends to continue.
“Technology solutions continued to increase in the second
quarter and the full-year contribution is on track to double 2022
levels, as a percentage of gross profit. Our Sphere technology
solutions offer a major upgrade from the parking systems in place
at many locations, often without requiring significant upfront
capital investment by our clients. Of the year-to-date new
locations added in our Commercial segment, 36% represented
standalone Sphere technology deployments, without other SP+
services. This is a clear indication of the compelling value
proposition of our technology solutions, and how these offerings
are further expanding our addressable market.
“Last week, we completed the acquisition of certain technology
assets of Roker Inc. to enhance our existing Sphere offerings,
particularly to municipal, university and healthcare clients. This
tuck-in acquisition marked the third technology-related transaction
we’ve completed in the last twelve-months, demonstrating our
commitment to leading the digital transformation of our industry
and strengthening our position as a provider of innovative
solutions dedicated to making every moment matter for a world on
the go.”
Financial Summary
In millions except per share |
Three Months Ended June 30, 2023 |
|
Three Months Ended June 30, 2022 |
|
GAAP |
Adjusted/ Non-GAAP (1) |
|
GAAP |
Adjusted/ Non-GAAP (1) |
Total services revenue (before reimbursed management type contract
revenue) |
$221.3 |
NA |
|
$196.5 |
NA |
Gross profit (2),(3) |
$62.2 |
$66.0 |
|
$56.1 |
$58.8 |
General and administrative expenses (3) |
$31.8 |
$30.6 |
|
$26.7 |
$26.3 |
Operating income (3) |
$25.3 |
$29.6 |
|
$25.6 |
$28.1 |
Net income attributable to SP Plus(3) |
$12.3 |
$15.4 |
|
$15.4 |
$17.3 |
Net income per share (EPS) (3) |
$0.62 |
$0.78 |
|
$0.72 |
$0.81 |
EBITDA (1),(3) |
NA |
$34.4 |
|
NA |
$31.7 |
Net cash provided by operating activities |
$13.3 |
NA |
|
$9.3 |
NA |
Free cash flow (1) |
NA |
$8.0 |
|
NA |
$1.7 |
In millions except per share |
Six Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2022 |
|
GAAP |
Adjusted/ Non-GAAP (1) |
|
GAAP |
Adjusted/ Non-GAAP (1) |
Total services revenue (before reimbursed management type contract
revenue) |
$437.6 |
NA |
|
$380.9 |
NA |
Gross profit (2),(3) |
$117.3 |
$124.4 |
|
$104.6 |
$110.3 |
General and administrative expenses (3) |
$62.4 |
$59.9 |
|
$51.2 |
$50.7 |
Operating income (3) |
$44.6 |
$53.3 |
|
$45.7 |
$51.2 |
Net income attributable to SP Plus(3) |
$20.7 |
$27.0 |
|
$26.1 |
$30.2 |
Net income per share (EPS) (3) |
$1.04 |
$1.36 |
|
$1.22 |
$1.41 |
EBITDA (1),(3) |
NA |
$62.6 |
|
NA |
$58.1 |
Net cash provided by operating activities |
$21.0 |
NA |
|
$35.7 |
NA |
Free cash flow (1) |
NA |
$8.3 |
|
NA |
$25.5 |
(1) Refer to the disclosure regarding use of non-GAAP financial
measures and the accompanying financial tables for a reconciliation
of all non-GAAP financial measures to U.S. GAAP.
(2) GAAP gross profit includes depreciation and amortization
expense. Please refer to the table accompanying this release for a
reconciliation of GAAP gross profit.
(3) Adjusted gross profit, adjusted general and administrative
expenses, adjusted operating income, adjusted net income
attributable to SP Plus, adjusted net income per diluted share
attributable to SP Plus (“adjusted EPS"), and adjusted earnings
before interest, income taxes, depreciation and amortization
(“adjusted EBITDA") are all non-GAAP financial measures that
exclude, for the periods presented, (a) restructuring, acquisition,
integration, and other costs; (b) the amortization of acquired
intangible assets; and (c) with respect to adjusted gross profit,
depreciation and amortization expense. Please refer to the
accompanying financial tables for a reconciliation of these
adjusted measures to U.S. GAAP.
Second Quarter Operating Results
Reported gross profit in the second quarter of 2023 increased
11% year-over-year to $62.2 million. Excluding depreciation,
acquisition, and restructuring costs, adjusted gross profit was up
12% to $66.0 million, driven by strong year-over-year growth at
same locations and net new business wins.
Second quarter 2023 reported general and administrative
(“G&A”) expenses were $31.8 million, compared
to $26.7 million in the year ago quarter. Adjusted
G&A expenses for the second quarter of 2023, which
exclude restructuring, acquisition, integration and other
costs, were $30.6 million, compared to $26.3 million in the
second quarter of 2022, mainly due to continued investments to
support our business development and technology deployment and
other growth initiatives.
Second quarter 2023 reported net income attributable to SP
Plus was $12.3 million, or $0.62 per diluted share, compared
to $15.4 million, or $0.72 per diluted share in the year ago
quarter. Second quarter 2023 adjusted earnings per share
were $0.78, compared to adjusted earnings per share
of $0.81 for the second quarter of 2022.
Year-to-date 2023 cash flow from operations totaled $21.0
million and free cash flow was $8.3 million, compared to $35.7
million and $25.5 million, respectively, in the year-ago period,
due primarily to the receipt of a $20.5 million federal income tax
refund in the first half of 2022.
2023 Outlook
Mr. Baumann concluded, “Record first-half gross profit and
EBITDA results reflected the successful execution of our growth
strategy within a business environment where commercial, retail,
and travel activity is on the rise, and where there is substantial
demand for solutions and services that reduce congestion and
provide low-friction transaction options. Year-to-date our
Commercial and Aviation segments have continued to drive increased
new business, aligned with our objectives of expanding our market
leadership position, creating revenue synergies and monetizing our
investments in technology. We continue to invest in strengthening
our technology platform and expanding our portfolio to position SP+
to capture the substantial growth opportunities we see ahead.
“Based on our year-to-date performance and current visibility,
we are pleased to re-affirm our guidance for significant growth in
2023, and remain confident in our positive longer-term
outlook.”
|
Reported |
Adjusted / Non-GAAP |
Gross Profit |
$225 - $245 million |
$240 - $260 million |
EBITDA |
N/A |
$125 - $135 million |
Net Income |
$43 - $53 million |
$54 - $64 million |
EPS |
$2.15 - $2.65 |
$2.70 - $3.20 |
Free Cash Flow |
N/A |
$60 - $70 million |
Conference Call
The Company's quarterly earnings conference call will be held at
4 p.m. (CT) on Wednesday, August 2, 2023 and will be available live
and in replay to all analysts and investors through a webcast
service. To listen to the live call, individuals are directed to
the Company's Investor Relations page at http://ir.spplus.com at
least 15 minutes early to register and download and install any
necessary audio software. For those who cannot listen to the live
broadcast, replays will be available shortly after the call on the
SP Plus website and can be accessed for 30 days after the call.
About SP+
SP+ (www.spplus.com) develops and integrates
industry-leading technology with best-in-class operations
management and support to deliver mobility solutions that enable
the efficient and time-sensitive movement of people, vehicles, and
personal travel belongings. With over 20,000 team members located
throughout North America and Europe, SP+ is
committed to providing solutions that make every moment matter for
a world on the go.
You should not construe the information on those websites to be
a part of this release. SP Plus Corporation’s annual reports filed
on Form 10-K, its quarterly reports on Form 10-Q, and its current
reports on Form 8-K are available on the Internet at www.sec.gov
and can also be accessed through the Investor Relations section of
the SP Plus website.
Cautionary Note Regarding Forward-Looking
Statements This release and the attached tables contain
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995, including the statements under the
caption " 2023 Outlook ”, expectations regarding gross profits,
G&A, revenue volatility, actions to limit discretionary
spending, and other statements regarding expectations, beliefs,
plans, intentions and strategies of the Company. The Company has
tried to identify these statements by using words such as “expect”,
“anticipate”, “believe”, “confident”, “could”, “should”,
“estimate”, “intend”, “may”, “plan”, “guidance”, “pathway”, “will”,
and similar terms and phrases, but such words, terms and phrases
are not the exclusive means of identifying such statements. These
forward-looking statements are made based on management's
expectations and beliefs concerning future events affecting
the Company and are subject to uncertainties and factors
relating to operations and the business environment. Actual
results, performance and achievements could differ materially from
those expressed in, or implied by, these forward-looking statements
due to a variety of risks, uncertainties and other factors,
including, but not limited to, the following: the Company's ability
to successfully effect its strategic growth plan; intense
competition; changing consumer preferences and legislation; ability
to preserve client relationships; difficulty obtaining insurance
coverage or obtaining insurance coverage at a reasonable cost;
volatility associated with high deductible and high retention
insurance programs; risk that insurance reserves are inadequate;
losses not covered by insurance; risks relating to the Company's
acquisition strategy and ability to successfully integrate such
acquisitions; information technology disruption, cyber-attacks,
cyber-terrorism and security breaches; risk management and safety
programs do not have the intended effect; risks associated with
management type contracts and lease type contracts; deterioration
in general economic and business conditions, including inflation or
rising interest rates, or changes in demographic trends; labor
disputes; catastrophic events such as natural disasters, pandemic
outbreaks and military or terrorist attacks could disrupt business;
risks associated with operations outside of North America; risk
that state and municipal government clients sell or enter into
long-term lease type contracts with the Company's competitors or
clients for parking-related assets; risks associated with joint
ventures; adverse litigation judgments or settlements; risks
associated with operating in a highly regulated environment and the
impact of public and private regulations or governmental orders;
the impact of Federal health care reform; adverse changes in tax
laws or rulings; goodwill impairment charges or impairment of
long-lived assets; risks due to the Company's substantial
indebtedness, including failure to comply with credit facility
covenants or meet payment obligations which may accelerate
repayment of the Company's indebtedness; lack of availability of
adequate capital, financing, or revenues to grow the Company's
business or satisfy liquidity needs; financial difficulties or
bankruptcy of major clients; the Company’s ability to obtain
performance bonds; failure to attract and retain senior management
and other qualified personnel; the long-term impact of climate
change on our business; and actions of activist investors.
For a detailed discussion of factors that could affect the
Company's future operating results, please see the Company's
filings with the Securities and Exchange Commission, including the
disclosures under "Risk Factors" in those filings. Except as
expressly required by the federal securities laws, the Company
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, changed
circumstances or future events or for any other reason.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements presented in
accordance with U.S. GAAP, the Company considers certain financial
measures that are not prepared in accordance with U.S. GAAP.
Certain non-GAAP measures, such as adjusted gross profit,
adjusted general and administrative expenses (adjusted G&A),
adjusted operating income, adjusted net income attributable to
SP Plus (adjusted net income), adjusted net income per diluted
share attributable to SP Plus (adjusted EPS), and adjusted
EBITDA exclude items that management does not consider
indicative of its core performance. Such adjustments include,
among other things: (i) restructuring, acquisition,
integration and other costs; (ii) impairment charges; (iii)
non-routine settlements; (iv) the amortization of acquired
intangible assets; (v) the impact of non-routine asset sales
or dispositions; (vi) the net loss or gains and the financial
results related to sold businesses; (vii) gain/loss on
termination of joint ventures or sale of other investments; (viii)
non-routine tax items; and (ix) with respect to adjusted gross
profit, depreciation and amortization expense. Pre-tax adjustments
are tax affected at a statutory tax rate of 27% for adjusted
net income and adjusted EPS purposes.
The Company defines Adjusted EBITDA, a non-GAAP financial
measure, as U.S. GAAP net income attributable to the Company before
(i) interest expense net of interest income, (ii) provision
(benefit) for income taxes, (iii) depreciation and amortization,
(iv) gain on sale of a business or contribution of a business to an
unconsolidated entity, (v) gain/loss on termination of joint
ventures or sale of other investments, and (vi) other items that
management does not consider indicative of its core performance, as
defined per above. The Company believes that the presentation of
adjusted EBITDA provides useful information regarding the Company’s
operating performance and are useful measures to facilitate
comparisons to our historical and future operating
results. The Company's definition of adjusted EBITDA may not
be comparable to similarly titled measures presented by other
companies.
The Company defines free cash flow as net cash provided by (used
in) operating activities, less cash used for investing activities
(exclusive of cash used for acquisitions or the purchase of
intangible assets and net after-tax cash proceeds from the sale of
businesses or joint venture related assets), less distributions to
non-controlling interests, plus the effect of exchange rate changes
on cash and cash equivalents. The Company believes that the
presentation of free cash flow provides useful information
regarding its ability to generate cash flow from business
operations after funding capital expenditures, that can be used to,
among other things, repay debt, fund strategic acquisitions, and
return value to shareholders. The Company's definition of free
cash flow may not be comparable to similarly titled measures
presented by other companies.
The Company uses these non-GAAP financial measures, in addition
to U.S. GAAP financial measures, to evaluate its operating and
financial performance and to compare such performance to that of
prior periods and to the performance of its competitors.
Additionally, the Company uses these non-GAAP financial measures in
making operational and financial decisions and in the Company’s
budgeting and planning process. The Company
believes that providing these non-GAAP financial measures to
investors helps investors evaluate the Company’s operating
performance, profitability and business trends in a way that is
consistent with how management evaluates such performance and
consistent with guidance previously provided by the
Company. Adjusted gross profit, adjusted G&A, adjusted
operating income, adjusted net income, adjusted EPS, adjusted
EBITDA, and free cash flow should not be considered in isolation
of, or as alternatives to or more meaningful indicators of, the
Company's operating performance or liquidity than gross profit,
G&A, operating income, net income, EPS, or net cash provided by
(used in) operating activities, as determined in accordance with
U.S. GAAP. In addition, the Company's calculation of these non-GAAP
measures may not be comparable to similarly titled measures
presented by other companies.
For reconciliations of these non-GAAP financial measures to the
most directly comparable U.S. GAAP financial measures, see the
accompanying tables to this release.
The summary consolidated financial statements presented below
reflect a combination of certain line items from our consolidated
financial statements and should be read in conjunction with the
financial statements and notes set forth in our Annual Report on
Form 10-K and quarterly filings with the SEC.
SP Plus Corporation |
|
|
|
|
|
|
|
|
Summary Condensed Consolidated Statements of
Income (millions, except for share and per share
data) (unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Total services revenue |
|
$442.2 |
|
$381.0 |
|
$867.5 |
|
$730.8 |
Total cost of services (exclusive of depreciation and
amortization) |
|
|
376.3 |
|
|
322.2 |
|
|
743.3 |
|
|
620.6 |
General
and administrative expenses |
|
|
31.8 |
|
|
26.7 |
|
|
62.4 |
|
|
51.2 |
Depreciation and amortization |
|
|
8.8 |
|
|
6.5 |
|
|
17.2 |
|
|
3.3 |
Operating income |
|
|
25.3 |
|
|
25.6 |
|
|
44.6 |
|
|
45.7 |
Interest
expense, net of interest income |
|
|
7.2 |
|
|
3.4 |
|
|
13.9 |
|
|
8.0 |
Earnings before income taxes |
|
|
18.1 |
|
|
22.2 |
|
|
30.7 |
|
|
37.7 |
Income tax expense |
|
|
4.8 |
|
|
5.9 |
|
|
8.1 |
|
|
10.1 |
Net income |
|
|
13.3 |
|
|
16.3 |
|
|
22.6 |
|
|
27.6 |
Less: Net income attributable to noncontrolling interest |
|
|
1.0 |
|
|
0.9 |
|
|
1.9 |
|
|
1.5 |
Net income attributable to SP Plus Corporation |
|
$12.3 |
|
$15.4 |
|
$20.7 |
|
$26.1 |
Common
stock data |
|
|
|
|
|
|
|
|
Net income per common share |
|
|
|
|
|
|
|
|
Basic |
|
$0.63 |
|
$0.73 |
|
$1.05 |
|
$1.23 |
Diluted |
|
$0.62 |
|
$0.72 |
|
$1.04 |
|
$1.22 |
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
19,631,772 |
|
|
21,195,819 |
|
|
19,666,684 |
|
|
21,211,299 |
Diluted |
|
|
19,839,953 |
|
|
21,356,464 |
|
|
19,853,900 |
|
|
21,347,442 |
SP Plus Corporation |
|
|
|
|
|
|
|
|
Revenue and Gross Profit, before depreciation and
amortization expense - by Contract type (millions)
(unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Lease type contracts |
|
|
|
|
|
|
|
|
Service revenue |
|
$76.3 |
|
|
$70.6 |
|
|
$144.5 |
|
|
$133.2 |
|
Subtract: Cost of services (exclusive of depreciation and
amortization) |
|
|
(62.3 |
) |
|
|
(55.9 |
) |
|
|
(117.5 |
) |
|
|
(107.9 |
) |
Lease type gross profit, before depreciation and amortization
expense |
|
$14.0 |
|
|
$14.7 |
|
|
$27.0 |
|
|
$25.3 |
|
|
|
|
|
|
|
|
|
|
Management type contracts |
|
|
|
|
|
|
|
|
Service
revenue |
|
$145.0 |
|
|
$125.9 |
|
|
$293.1 |
|
|
$247.7 |
|
Subtract: Cost of services (exclusive of depreciation and
amortization) |
|
|
(93.1 |
) |
|
|
(81.8 |
) |
|
|
(195.9 |
) |
|
|
(162.8 |
) |
Management type gross profit, before depreciation and amortization
expense |
$51.9 |
|
|
$44.1 |
|
|
$97.2 |
|
|
$84.9 |
|
|
|
|
|
|
|
|
|
|
Other revenue and cost of services |
|
|
|
|
|
|
|
|
Reimbursed management type contract revenue |
|
$220.9 |
|
|
$184.5 |
|
|
$429.9 |
|
|
$349.9 |
|
Subtract: Reimbursed management type contract expense |
|
|
(220.9 |
) |
|
|
(184.5 |
) |
|
|
(429.9 |
) |
|
|
(349.9 |
) |
Other gross profit, before depreciation and amortization
expense |
|
$0.0 |
|
|
$0.0 |
|
|
$0.0 |
|
|
$0.0 |
|
SP Plus Corporation |
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures |
|
|
|
|
|
|
|
|
(millions, except for share and per share data) (unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Gross profit |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Total services revenue |
|
$442.2 |
|
|
$381.0 |
|
|
$867.5 |
|
|
$730.8 |
|
Subtract: Total cost of services (exclusive of depreciation and
amortization) |
|
|
(376.3 |
) |
|
|
(322.2 |
) |
|
|
(743.3 |
) |
|
|
(620.6 |
) |
Subtract: Depreciation and amortization |
|
|
(3.7 |
) |
|
|
(2.7 |
) |
|
|
(6.9 |
) |
|
|
(5.6 |
) |
Gross
profit, GAAP (1) |
|
|
62.2 |
|
|
|
56.1 |
|
|
|
117.3 |
|
|
|
104.6 |
|
Add: Depreciation and amortization |
|
|
3.7 |
|
|
|
2.7 |
|
|
|
6.9 |
|
|
|
5.6 |
|
Add: Restructuring, acquisition, and other costs |
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Other, rounding |
|
― |
|
|
(0.1 |
) |
|
― |
|
― |
Adjusted gross profit |
|
$66.0 |
|
|
$58.8 |
|
|
$124.4 |
|
|
$110.3 |
|
|
|
|
|
|
|
|
|
|
(1) GAAP gross profit includes depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
General and administrative expenses |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
General
and administrative expenses, GAAP |
|
$31.8 |
|
|
$26.7 |
|
|
$62.4 |
|
|
$51.2 |
|
Subtract: Restructuring, acquisition, integration, and other
costs |
|
|
(1.3 |
) |
|
|
(0.3 |
) |
|
|
(2.6 |
) |
|
|
(0.5 |
) |
Other, rounding |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
― |
Adjusted
G&A |
|
$30.6 |
|
|
$26.3 |
|
|
$59.9 |
|
|
$50.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Operating income |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Operating
income, GAAP |
|
$25.3 |
|
|
$25.6 |
|
|
$44.6 |
|
|
$45.7 |
|
Add: Restructuring, acquisition, integration and other costs |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
2.8 |
|
|
|
0.6 |
|
Add: Amortization of acquired intangibles |
|
|
3.0 |
|
|
|
2.1 |
|
|
|
6.0 |
|
|
|
4.9 |
|
Other, rounding |
|
|
(0.1 |
) |
|
― |
|
|
(0.1 |
) |
|
― |
Adjusted operating income |
|
$29.6 |
|
|
$28.1 |
|
|
$53.3 |
|
|
$51.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Net income attributable to SP Plus |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Net
income attributable to SP Plus, GAAP |
|
$12.3 |
|
|
$15.4 |
|
|
$20.7 |
|
|
$26.1 |
|
Add: Restructuring, acquisition, integration, and other costs |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
2.8 |
|
|
|
0.6 |
|
Add: Amortization of acquired intangibles |
|
|
3.0 |
|
|
|
2.1 |
|
|
|
6.0 |
|
|
|
4.9 |
|
Net tax effect of adjustments |
|
|
(1.2 |
) |
|
|
(0.7 |
) |
|
|
(2.4 |
) |
|
|
(1.5 |
) |
Other, rounding |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Adjusted net income attributable to SP Plus |
|
$15.4 |
|
|
$17.3 |
|
|
$27.0 |
|
|
$30.2 |
|
|
|
|
|
|
|
|
|
|
Adjusted
net income per share |
|
|
|
|
|
|
|
|
Basic |
|
$0.79 |
|
|
$0.82 |
|
|
$1.37 |
|
|
$1.42 |
|
Diluted |
|
$0.78 |
|
|
$0.81 |
|
|
$1.36 |
|
|
$1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Adjusted EBITDA |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Net
income attributable to SP Plus, GAAP |
|
$12.3 |
|
|
$15.4 |
|
|
$20.7 |
|
|
$26.1 |
|
Add
(subtract): |
|
|
|
|
|
|
|
|
Income tax expense |
|
|
4.8 |
|
|
|
5.9 |
|
|
|
8.1 |
|
|
|
10.1 |
|
Interest expense, net |
|
|
7.2 |
|
|
|
3.4 |
|
|
|
13.9 |
|
|
|
8.0 |
|
Total depreciation and amortization expense |
|
|
8.8 |
|
|
|
6.5 |
|
|
|
17.2 |
|
|
|
13.3 |
|
Restructuring, acquisition, integration and other costs |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
2.8 |
|
|
|
0.6 |
|
Other, rounding |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
― |
Adjusted EBITDA |
|
$34.4 |
|
|
$31.7 |
|
|
$62.6 |
|
|
$58.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
|
|
|
|
Selected Segment Data (millions,
unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Commercial Segment |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Gross Profit, GAAP (1) |
$47.0 |
|
|
$43.7 |
|
|
$88.1 |
|
|
$79.6 |
|
Add: Depreciation and amortization |
|
2.2 |
|
|
|
1.6 |
|
|
|
4.1 |
|
|
|
3.4 |
|
Add: Restructuring, acquisition, and other costs |
|
0.1 |
|
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Adjusted Gross Profit |
$49.3 |
|
|
$45.4 |
|
|
$92.4 |
|
|
$83.1 |
|
|
|
|
|
|
|
|
|
General
and administrative expenses, GAAP |
$9.3 |
|
|
$7.8 |
|
|
$17.5 |
|
|
$13.9 |
|
Subtract: Restructuring, acquisition, integration, and other
costs |
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.8 |
) |
|
|
(0.7 |
) |
Adjusted G&A |
$8.9 |
|
|
$7.2 |
|
|
$16.7 |
|
|
$13.2 |
|
|
|
|
|
|
|
|
|
Operating
income, GAAP |
$36.1 |
|
|
$34.7 |
|
|
$67.3 |
|
|
$63.3 |
|
Add: Amortization of acquired intangibles |
|
1.6 |
|
|
|
1.1 |
|
|
|
3.1 |
|
|
|
2.1 |
|
Add: Restructuring, acquisition, integration, and other costs |
|
0.5 |
|
|
|
0.7 |
|
|
|
1.0 |
|
|
|
0.8 |
|
Adjusted Operating Income |
$38.2 |
|
|
$36.5 |
|
|
$71.4 |
|
|
$66.2 |
|
|
|
|
|
|
|
|
|
(1) GAAP
gross profit includes depreciation and amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Aviation Segment |
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Gross
Profit, GAAP (1) |
$15.2 |
|
|
$12.4 |
|
|
$29.2 |
|
|
$25.0 |
|
Add: Depreciation and amortization |
|
1.5 |
|
|
|
1.1 |
|
|
|
2.8 |
|
|
|
2.2 |
|
Other, rounding |
|
― |
|
|
|
― |
|
|
|
0.1 |
|
|
|
― |
|
Adjusted Gross Profit |
$16.7 |
|
|
$13.5 |
|
|
$32.1 |
|
|
$27.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses, GAAP |
$4.0 |
|
|
$2.9 |
|
|
$7.9 |
|
|
$5.6 |
|
Subtract: Restructuring, acquisition, integration, and other
costs |
|
(0.3 |
) |
|
|
0.5 |
|
|
|
(0.5 |
) |
|
|
0.4 |
|
Other, rounding |
|
― |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Adjusted G&A |
$3.7 |
|
|
$3.3 |
|
|
$7.3 |
|
|
$5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income, GAAP |
$9.6 |
|
|
$8.5 |
|
|
$18.2 |
|
|
$16.6 |
|
Add: Amortization of acquired intangibles |
|
1.4 |
|
|
|
1.0 |
|
|
$2.9 |
|
|
|
2.8 |
|
Add: Restructuring, acquisition, integration, and other costs |
|
0.3 |
|
|
|
(0.5 |
) |
|
$0.5 |
|
|
|
(0.4 |
) |
Other, rounding |
|
― |
|
|
|
0.1 |
|
|
|
― |
|
|
|
― |
|
Adjusted Operating Income |
$11.3 |
|
|
$9.1 |
|
|
$21.6 |
|
|
$19.0 |
|
|
|
|
|
|
|
|
|
(1) GAAP gross profit includes depreciation and amortization
expense |
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
|
Summary Condensed Consolidated Balance
Sheets(millions, except for share and per share data) |
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
Assets |
|
(unaudited) |
|
|
Cash and cash equivalents |
|
$24.6 |
|
$12.4 |
|
Accounts receivable, net |
|
|
179.0 |
|
|
167.7 |
|
Prepaid expenses and other current assets |
|
|
13.2 |
|
|
16.7 |
|
Total current assets |
|
|
216.8 |
|
|
196.8 |
|
Property and equipment, net |
|
|
65.2 |
|
|
60.2 |
|
Right-of-use assets |
|
|
170.7 |
|
|
166.9 |
|
Goodwill |
|
|
543.6 |
|
|
543.2 |
|
Other intangible assets, net |
|
|
63.5 |
|
|
68.9 |
|
Other assets, net |
|
|
86.5 |
|
|
85.4 |
|
Total noncurrent assets |
|
|
929.5 |
|
|
924.6 |
|
Total assets |
|
$1,146.3 |
|
$1,121.4 |
|
Liabilities and stockholders' equity |
|
|
|
|
Accounts payable |
|
$136.6 |
|
$133.4 |
|
Accrued and other current liabilities |
|
|
117.7 |
|
|
137.6 |
|
Short-term lease liabilities |
|
|
57.3 |
|
|
60.2 |
|
Current portion of long-term borrowings |
|
|
13.5 |
|
|
12.4 |
|
Total current liabilities |
|
|
325.1 |
|
|
343.6 |
|
Long-term borrowings, excluding current portion |
|
|
352.2 |
|
|
331.8 |
|
Long-term lease liabilities |
|
|
156.3 |
|
|
158.5 |
|
Other noncurrent liabilities |
|
|
71.3 |
|
|
61.8 |
|
Total noncurrent liabilities |
|
|
579.8 |
|
|
552.1 |
|
Total SP Plus Corporation stockholders' equity |
|
|
241.2 |
|
|
226.0 |
|
Noncontrolling interest |
|
|
0.2 |
|
|
(0.3 |
) |
Total stockholders' equity |
|
|
241.4 |
|
|
225.7 |
|
Total liabilities and stockholders' equity |
|
$1,146.3 |
|
$1,121.4 |
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
|
Summary Condensed Consolidated Statements of Cash
Flows |
|
|
|
|
(millions) (unaudited) |
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, 2023 |
|
June 30, 2022 |
Net cash
provided by operating activities |
|
$21.0 |
|
|
$35.7 |
|
Net cash used in investing activities |
|
(13.5 |
) |
|
|
(10.7 |
) |
Net cash
provided by (used in) financing activities |
|
4.7 |
|
|
|
(26.0 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
― |
|
|
|
(0.1 |
) |
Increase
(decrease) in cash and cash equivalents |
|
12.2 |
|
|
|
(1.1 |
) |
Cash and
cash equivalents at beginning of year |
|
12.4 |
|
|
|
15.7 |
|
Cash and cash equivalents at end of period |
|
$24.6 |
|
|
$14.6 |
|
Supplemental disclosures |
|
|
|
|
Cash paid
(received) during the period for |
|
|
|
|
Interest |
|
$13.6 |
|
|
$7.8 |
|
Income taxes, net |
|
$4.0 |
|
|
($12.7 |
) |
|
|
|
|
|
SP Plus CorporationFree Cash
Flow |
|
|
|
|
|
|
|
(millions) (unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2023 |
|
June 30, 2022 |
|
June 30, 2023 |
|
June 30, 2022 |
Net cash
provided by operating activities |
$13.3 |
|
|
$9.3 |
|
|
$21.0 |
|
|
$35.7 |
|
Net cash used in investing activities |
|
(4.7 |
) |
|
|
(8.5 |
) |
|
|
(13.5 |
) |
|
|
(10.7 |
) |
plus:
Acquisition of other intangible assets |
|
― |
|
|
|
1.8 |
|
|
|
― |
|
|
|
1.8 |
|
plus:
Noncontrolling interest buyout |
|
0.1 |
|
|
|
― |
|
|
|
2.2 |
|
|
|
― |
|
Distributions to noncontrolling interests |
|
(0.9 |
) |
|
|
(0.7 |
) |
|
|
(1.4 |
) |
|
|
(1.2 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
0.2 |
|
|
|
(0.2 |
) |
|
|
― |
|
|
|
(0.1 |
) |
Free cash flow |
$8.0 |
|
|
$1.7 |
|
|
$8.3 |
|
|
$25.5 |
|
SP Plus Corporation |
|
|
|
|
|
|
June 30, 2023 |
|
December 31, 2022 |
|
June 30, 2022 |
Commercial Segment Facilities |
|
|
|
|
|
Leased facilities |
414 |
|
421 |
|
428 |
Managed facilities |
2,842 |
|
2,709 |
|
2,660 |
Total Commercial Segment facilities |
3,256 |
|
3,130 |
|
3,088 |
|
|
|
|
|
|
Aviation Segment - Airports served |
|
|
|
|
|
North America |
102 |
|
100 |
|
90 |
Europe |
58 |
|
58 |
|
―- |
Total Airports (1) |
160 |
|
158 |
|
90 |
|
|
|
|
|
|
(1) The increase as of December 31, 2022 included 65 unique
airports added as a result of the acquisition of KMP |
SP Plus Corporation |
|
|
|
Reconciliation of forward-looking non-GAAP measures to
their comparable GAAP measures |
|
|
|
|
|
|
|
2023 Outlook (1) |
|
|
|
|
|
|
Gross
profit, GAAP (2) |
$225 - $245 million |
|
|
plus: Depreciation and amortization |
$13 - $15 million |
|
|
Adjusted
Gross Profit |
$240 - $260 million |
|
|
|
|
|
|
|
|
|
|
Net
income attributable to SP Plus, GAAP |
$43 - $53 million |
|
|
plus: Income tax expense |
$17 - $21 million |
|
|
plus: Interest expense, net of interest income |
$25 - $27 million |
|
|
plus: Total depreciation and amortization expense |
$34 - $36 million |
|
|
plus: Restructuring, acquisition, integration, and other costs |
Approximately $4 million |
|
|
Adjusted
EBITDA |
$125 - $135 million |
|
|
|
|
|
|
|
|
|
Per Share (3) |
Net
income attributable to SP Plus, GAAP |
$43 - $53 million |
|
$2.15 - $2.65 |
plus: Amortization of acquired intangibles, after tax |
Approximately $9 million |
|
|
plus: Restructuring, acquisition, integration, and other costs,
after tax |
Approximately $3 million |
|
|
Adjusted
net income attributable to SP Plus |
$54 - $64 million |
|
$2.70 - $3.20 |
|
|
|
|
|
|
|
|
Net cash
from operating activities |
$80 - $95 million |
|
|
less: Capital expenditures, net |
$17 - $21 million |
|
|
less: Distributions to noncontrolling interests |
$3 - $4 million |
|
|
Free cash
flow |
$60 - $70 million |
|
|
|
|
|
|
|
|
|
|
(1) 2023 Outlook does not contemplate additional acquisitions |
(2) GAAP gross profit includes depreciation and amortization
expense |
(3) Assumes approximately 20 million fully diluted weighted average
shares outstanding in 2023 |
|
|
|
|
SP Plus (NASDAQ:SP)
Historical Stock Chart
From Apr 2024 to May 2024
SP Plus (NASDAQ:SP)
Historical Stock Chart
From May 2023 to May 2024