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 third quarter 2023 results.
On October 5, 2023, SP announced the acquisition of SP Plus
Corporation for $1.5 billion by Metropolis Technologies, Inc. The
acquisition is expected to close in 2024, subject to receipt of
required regulatory approvals and approval of SP+’s stockholders,
as well as other customary closing conditions.
Management Commentary
Marc Baumann, Chairman and Chief Executive Officer, said, “This
was a record quarter for SP+ across key financial and operating
metrics, reflecting increased client demand for our unique ability
to deliver industry leading technology solutions and best-in-class
onsite services at scale. Market conditions remained robust as
back-to-office trends and travel volumes continued to be
favorable.
“Double-digit gross profit growth in our Commercial segment
reflected increased demand for our services from a broad range of
verticals and geographies. We experienced notable strength from the
office, hospitality, municipal, and healthcare verticals, each
posting double-digit year-on-year growth. In the third quarter, we
added 108 net new locations, the tenth consecutive quarter of net
location growth, and we maintained our trailing twelve-month
retention rate of 94%. This strong performance underscores the
benefits clients and consumers see from our combined offerings that
join innovative technology solutions with superior service.
“Our Aviation segment gross profit also increased at a
double-digit rate, benefiting from organic and acquisition growth,
as well as revenue synergies. Building on our significant new
contract wins in 2022, we were recently awarded a five-year
contract to manage all public and employee parking facilities and
the employee shuttle service at Nebraska’s largest airport, Eppley
Airport in Omaha. Additionally, we began providing our Bags®
branded Remote Airline Check-in at Charleston International Airport
in South Carolina, enabling travelers to check-in for their flight,
receive boarding passes and check their luggage at the curb,
parking garage or rental car return center, thereby reducing
congestion at airline ticket counters. During the third quarter, we
also went live with AeroParker’s online reservation system on-site
at four additional airports, demonstrating the success of our
cross-selling programs to existing clients.
“Technology solutions remained a key selling point in the third
quarter, supporting our ability to add new locations, while
enabling our clients to upgrade the consumer experience without a
significant upfront capital investment. In the third quarter, we
experienced considerable demand from the gaming industry, which
places substantial value on the data analytics our technology
provides. Our technology platform is being adopted by several
marquee hotels in both Las Vegas and Atlantic City, while our
Remote Airline Check-In service will be implemented at the Harry
Reid International Airport in Las Vegas, positioning us to gain
additional share in this dynamic vertical.”
Financial Summary
In millions except per share |
Three Months Ended September 30, 2023 |
|
Three Months Ended September 30, 2022 |
|
GAAP |
Adjusted/ Non-GAAP (1) |
|
GAAP |
Adjusted/ Non-GAAP (1) |
Total services revenue (before reimbursed management type contract
revenue) |
$228.4 |
NA |
|
$207.1 |
NA |
Gross profit (2),(3) |
$64.2 |
$67.7 |
|
$54.8 |
$58.2 |
General and administrative expenses (3) |
$37.6 |
$32.0 |
|
$27.2 |
$26.0 |
Operating income (3) |
$21.0 |
$29.7 |
|
$23.8 |
$27.1 |
Net income attributable to SP Plus(3) |
$9.2 |
$15.6 |
|
$14.3 |
$16.8 |
Net income per share (EPS) (3) |
$0.46 |
$0.79 |
|
$0.68 |
$0.80 |
EBITDA (1),(3) |
NA |
$34.9 |
|
NA |
$31.5 |
Net cash provided by operating activities |
$32.5 |
NA |
|
$39.9 |
NA |
Free cash flow (1) |
NA |
$25.2 |
|
NA |
$31.1 |
In millions except per share |
Nine Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2022 |
|
GAAP |
Adjusted/ Non-GAAP (1) |
|
GAAP |
Adjusted/ Non-GAAP (1) |
Total services revenue (before reimbursed management type contract
revenue) |
$666.0 |
NA |
|
$588.0 |
NA |
Gross profit (2),(3) |
$181.5 |
$192.1 |
|
$159.4 |
$168.5 |
General and administrative expenses (3) |
$100.0 |
$91.9 |
|
$78.4 |
$76.7 |
Operating income (3) |
$65.6 |
$83.1 |
|
$69.5 |
$78.3 |
Net income attributable to SP Plus(3) |
$29.9 |
$42.7 |
|
$40.4 |
$46.9 |
Net income per share (EPS) (3) |
$1.50 |
$2.15 |
|
$1.90 |
$2.21 |
EBITDA (1),(3) |
NA |
$97.5 |
|
NA |
$89.6 |
Net cash provided by operating activities |
$53.5 |
NA |
|
$75.6 |
NA |
Free cash flow (1) |
NA |
$33.5 |
|
NA |
$56.6 |
(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) acquisition-related,
restructuring 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.
Third Quarter Operating Results
Reported gross profit in the third quarter of 2023 increased 17%
year-over-year to $64.2 million. Excluding depreciation,
acquisition-related, and restructuring costs, adjusted gross profit
was up 16% to $67.7 million, as a result of new contracts, growth
at same locations, and strong location retention.
Third quarter 2023 reported general and administrative
(“G&A”) expenses were $37.6 million, compared
to $27.2 million in the year ago quarter. Adjusted
G&A expenses for the third quarter of 2023, which exclude
acquisition-related, restructuring and other costs, were $32.0
million, compared to $26.0 million in the third quarter of 2022,
reflecting continued investments in business development,
technology deployment and growth initiatives.
Third quarter 2023 reported net income attributable to SP
Plus was $9.2 million, or $0.46 per diluted share, compared to
$14.3 million, or $0.68 per diluted share in the year ago quarter.
Third quarter 2023 adjusted earnings per share were $0.79,
compared to adjusted earnings per share of $0.80 for the third
quarter of 2022.
Year-to-date 2023 cash flow from operations totaled $53.5
million and free cash flow was $33.5 million, compared to $75.6
million and $56.6 million, respectively, in 2022, due primarily to
the receipt of a $20.5 million federal income tax refund in the
first half of 2022.
Summary
Mr. Baumann concluded, “Year-to-date results reflect the
successful execution of our growth strategy amid favorable market
conditions and growing demand for blending technology solutions and
services that reduce congestion and provide frictionless
transaction options. Our strong performance in the first nine
months of 2023 is a direct result of the drive, commitment and
dedication of our leadership team and team members, who have worked
diligently to build and deliver our industry-leading solutions and
services. We appreciate their tremendous contribution to the
success of SP+.”
In light of the pending acquisition by Metropolis Technologies,
Inc., and as is customary during such transactions, SP+ will not
host an earnings conference call for its third quarter 2023
results. For the same reason, the Company has suspended its
financial guidance for 2023 and its target metrics for longer term
performance.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. For more information, visit
www.spplus.com.
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. 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.
Important risk factors relating to the pending acquisition by
Metropolis Technologies, Inc., (the “Transaction”) that also may
cause a difference between actual results and forward-looking
statements include, but are not limited to: (i) the completion of
the Transaction on anticipated terms and timing, including
obtaining required stockholder and regulatory approvals, and the
satisfaction of other conditions to the completion of the
Transaction; (ii) the ability of Parent to obtain the necessary
financing arrangements set forth in the commitment letters received
in connection with the Transaction; (iii) potential litigation
relating to the Transaction that could be instituted against
Parent, the Company or their respective directors, managers or
officers, including the effects of any outcomes related thereto;
(iv) the risk that disruptions from the Transaction will harm the
Company’s business, including current plans and operations; (v) the
ability of the Company to retain and hire key personnel; (vi)
potential adverse reactions or changes to business relationships
resulting from the announcement or completion of the Transaction;
(vii) continued availability of capital and financing and rating
agency actions; (viii) legislative, regulatory and economic
developments affecting the Company’s business; (ix) general
economic and market developments and conditions; (x) potential
business uncertainty, including changes to existing business
relationships, during the pendency of the Transaction that could
affect the Company’s financial performance; (xi) certain
restrictions during the pendency of the Transaction that may impact
the Company’s ability to pursue certain business opportunities or
strategic transactions; (xii) unpredictability and severity of
catastrophic events, including but not limited to acts of
terrorism, pandemics, outbreaks of war or hostilities, as well as
the Company’s response to any of the aforementioned factors; (xiii)
significant transaction costs associated with the Transaction;
(xiv) the possibility that the Transaction may be more expensive to
complete than anticipated, including as a result of unexpected
factors or events; (xv) the occurrence of any event, change or
other circumstance that could give rise to the termination of the
Transaction, including in circumstances requiring the Company to
pay a termination fee or other expenses; (xvi) competitive
responses to the Transaction; and (xvii) the risks and
uncertainties pertaining to the Company’s business, including those
set forth in Part I, Item 1A of the Company’s most recent Annual
Report on Form 10-K and Part II, Item 1A of the Company’s
subsequent Quarterly Reports on Form 10-Q, as such risk factors may
be amended, supplemented or superseded from time to time by other
reports filed by the Company with the SEC.
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) acquisition-related, restructuring 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 condensed 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 |
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Total services revenue |
$460.7 |
|
$404.4 |
|
$1,328.2 |
|
$1,135.2 |
Total cost of services (exclusive of depreciation and
amortization) |
|
393.1 |
|
|
346.2 |
|
|
1,136.4 |
|
|
966.8 |
General
and administrative expenses |
|
37.6 |
|
|
27.2 |
|
|
100.0 |
|
|
78.4 |
Depreciation and amortization |
|
9.0 |
|
|
7.2 |
|
|
26.2 |
|
|
20.5 |
Operating income |
|
21.0 |
|
|
23.8 |
|
|
65.6 |
|
|
69.5 |
Interest
expense, net of interest income |
|
7.4 |
|
|
3.8 |
|
|
21.3 |
|
|
11.8 |
Earnings before income taxes |
|
13.6 |
|
|
20.0 |
|
|
44.3 |
|
|
57.7 |
Income tax expense |
|
3.5 |
|
|
4.9 |
|
|
11.6 |
|
|
15.0 |
Net income |
|
10.1 |
|
|
15.1 |
|
|
32.7 |
|
|
42.7 |
Less: Net income attributable to noncontrolling interest |
|
0.9 |
|
|
0.8 |
|
|
2.8 |
|
|
2.3 |
Net income attributable to SP Plus Corporation |
$9.2 |
|
$14.3 |
|
$29.9 |
|
$40.4 |
Common
stock data |
|
|
|
|
|
|
|
Net income per common share |
|
|
|
|
|
|
|
Basic |
$0.47 |
|
$0.69 |
|
$1.52 |
|
$1.92 |
Diluted |
$0.46 |
|
$0.68 |
|
$1.50 |
|
$1.90 |
Weighted average shares outstanding |
|
|
|
|
|
|
|
Basic |
|
19,649,611 |
|
|
20,744,813 |
|
|
19,660,930 |
|
|
21,054,095 |
Diluted |
|
19,910,308 |
|
|
20,977,667 |
|
|
19,874,165 |
|
|
21,223,982 |
SP Plus Corporation |
|
|
|
|
|
|
|
Revenue and Gross Profit, before depreciation and
amortization expense - by Contract type |
|
|
|
|
|
|
|
|
|
(millions) (unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Management type contracts |
|
|
|
|
|
|
|
Service revenue |
$153.5 |
|
|
$134.9 |
|
|
$446.6 |
|
|
$382.6 |
|
Subtract: Cost of services (exclusive of depreciation and
amortization) |
|
(99.9 |
) |
|
|
(89.9 |
) |
|
|
(295.8 |
) |
|
|
(252.7 |
) |
Management type gross profit, before depreciation and amortization
expense |
$53.6 |
|
|
$45.0 |
|
|
$150.8 |
|
|
$129.9 |
|
|
|
|
|
|
|
|
|
Lease type contracts |
|
|
|
|
|
|
|
Service
revenue |
$74.9 |
|
|
$72.2 |
|
|
$219.4 |
|
|
$205.4 |
|
Subtract: Cost of services (exclusive of depreciation and
amortization) |
|
(60.9 |
) |
|
|
(59.0 |
) |
|
|
(178.4 |
) |
|
|
(166.9 |
) |
Lease type gross profit, before depreciation and amortization
expense |
$14.0 |
|
|
$13.2 |
|
|
$41.0 |
|
|
$38.5 |
|
|
|
|
|
|
|
|
|
Other revenue and cost of services |
|
|
|
|
|
|
|
Reimbursed management type contract revenue |
$232.3 |
|
|
$197.3 |
|
|
$662.2 |
|
|
$547.2 |
|
Subtract: Reimbursed management type contract expense |
|
(232.3 |
) |
|
|
(197.3 |
) |
|
|
(662.2 |
) |
|
|
(547.2 |
) |
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 |
|
Nine Months Ended |
Gross profit |
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Total
services revenue |
$460.7 |
|
|
$404.4 |
|
|
$1,328.2 |
|
|
$1,135.2 |
|
|
Subtract: Total cost of services (exclusive of depreciation and
amortization) |
|
(393.1 |
) |
|
|
(346.2 |
) |
|
|
(1,136.4 |
) |
|
|
(966.8 |
) |
|
Subtract: Depreciation and amortization |
|
(3.4 |
) |
|
|
(3.4 |
) |
|
|
(10.3 |
) |
|
|
(9.0 |
) |
Gross profit, GAAP (1) |
|
64.2 |
|
|
|
54.8 |
|
|
|
181.5 |
|
|
|
159.4 |
|
|
Add: Depreciation and amortization |
|
3.4 |
|
|
|
3.4 |
|
|
|
10.3 |
|
|
|
9.0 |
|
|
Add: Acquisition-related, restructuring and other costs |
|
0.1 |
|
|
|
– |
|
|
|
0.3 |
|
|
|
0.1 |
|
Adjusted gross profit |
$67.7 |
|
|
$58.2 |
|
|
$192.1 |
|
|
$168.5 |
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP gross profit includes depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
General and administrative expenses |
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
General
and administrative expenses, GAAP |
$37.6 |
|
|
$27.2 |
|
|
$100.0 |
|
|
$78.4 |
|
|
Subtract: Acquisition-related, restructuring and other costs |
|
(5.6 |
) |
|
|
(1.3 |
) |
|
|
(8.2 |
) |
|
|
(1.8 |
) |
|
Other, rounding |
|
– |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
Adjusted G&A |
$32.0 |
|
|
$26.0 |
|
|
$91.9 |
|
|
$76.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
Operating income |
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Operating
income, GAAP |
$21.0 |
|
|
$23.8 |
|
|
$65.6 |
|
|
$69.5 |
|
|
Add: Acquisition-related, restructuring and other costs |
|
5.7 |
|
|
|
1.3 |
|
|
|
8.5 |
|
|
|
1.9 |
|
|
Add: Amortization of acquired intangibles |
|
3.0 |
|
|
|
2.1 |
|
|
|
9.0 |
|
|
|
7.0 |
|
|
Other, rounding |
|
– |
|
|
|
(0.1 |
) |
|
|
– |
|
|
|
(0.1 |
) |
Adjusted operating income |
$29.7 |
|
|
$27.1 |
|
|
$83.1 |
|
|
$78.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
Net income attributable to SP Plus |
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Net
income attributable to SP Plus, GAAP |
$9.2 |
|
|
$14.3 |
|
|
$29.9 |
|
|
$40.4 |
|
|
Add: Acquisition-related, restructuring and other costs |
|
5.7 |
|
|
|
1.3 |
|
|
|
8.5 |
|
|
|
1.9 |
|
|
Add: Amortization of acquired intangibles |
|
3.0 |
|
|
|
2.1 |
|
|
|
9.0 |
|
|
|
7.0 |
|
|
Net tax effect of adjustments |
|
(2.4 |
) |
|
|
(0.9 |
) |
|
|
(4.7 |
) |
|
|
(2.4 |
) |
|
Other, rounding |
|
0.1 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Adjusted net income attributable to SP Plus |
$15.6 |
|
|
$16.8 |
|
|
$42.7 |
|
|
$46.9 |
|
|
|
|
|
|
|
|
|
|
Adjusted
net income per share |
|
|
|
|
|
|
|
|
Basic |
$0.80 |
|
|
$0.81 |
|
|
$2.17 |
|
|
$2.23 |
|
|
Diluted |
$0.79 |
|
|
$0.80 |
|
|
$2.15 |
|
|
$2.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
Adjusted EBITDA |
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Net
income attributable to SP Plus, GAAP |
$9.2 |
|
|
$14.3 |
|
|
$29.9 |
|
|
$40.4 |
|
Add
(subtract): |
|
|
|
|
|
|
|
|
Income tax expense |
|
3.5 |
|
|
|
4.9 |
|
|
|
11.6 |
|
|
|
15.0 |
|
|
Interest expense, net |
|
7.4 |
|
|
|
3.8 |
|
|
|
21.3 |
|
|
|
11.8 |
|
|
Total depreciation and amortization expense |
|
9.0 |
|
|
|
7.2 |
|
|
|
26.2 |
|
|
|
20.5 |
|
|
Acquisition-related, restructuring and other costs |
|
5.7 |
|
|
|
1.3 |
|
|
|
8.5 |
|
|
|
1.9 |
|
|
Other, rounding |
|
0.1 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Adjusted EBITDA |
$34.9 |
|
|
$31.5 |
|
|
$97.5 |
|
|
$89.6 |
|
|
|
|
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
|
|
|
|
Selected Segment Data(millions,
unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
Commercial Segment |
September 30,2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Gross
Profit, GAAP (1) |
$47.3 |
|
|
$40.9 |
|
|
$135.4 |
|
|
$120.5 |
|
|
Add: Depreciation and amortization |
|
2.0 |
|
|
|
2.1 |
|
|
|
6.1 |
|
|
|
5.5 |
|
|
Add: Acquisition-related, restructuring and other costs |
|
0.1 |
|
|
|
– |
|
|
|
0.3 |
|
|
|
0.1 |
|
Adjusted Gross Profit |
$49.4 |
|
|
$43.0 |
|
|
$141.8 |
|
|
$126.1 |
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses, GAAP |
$9.8 |
|
|
$7.2 |
|
|
$27.3 |
|
|
$21.1 |
|
|
Subtract: Acquisition-related, restructuring and other costs |
|
(1.2 |
) |
|
|
– |
|
|
|
(2.0 |
) |
|
|
(0.7 |
) |
|
Other, rounding |
|
– |
|
|
|
0.1 |
|
|
|
– |
|
|
|
0.1 |
|
Adjusted G&A |
$8.6 |
|
|
$7.3 |
|
|
$25.3 |
|
|
$20.5 |
|
|
|
|
|
|
|
|
|
|
Operating
income, GAAP |
$35.7 |
|
|
$32.4 |
|
|
$103.0 |
|
|
$95.7 |
|
|
Add: Amortization of acquired intangibles |
|
1.5 |
|
|
|
1.1 |
|
|
|
4.6 |
|
|
|
3.2 |
|
|
Add: Acquisition-related, restructuring and other costs |
|
1.3 |
|
|
|
– |
|
|
|
2.3 |
|
|
|
0.8 |
|
Adjusted Operating Income |
$38.5 |
|
|
$33.5 |
|
|
$109.9 |
|
|
$99.7 |
|
|
|
|
|
|
|
|
|
|
(1) GAAP
gross profit updated to include depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
Aviation Segment |
September 30,2023 |
|
September 30, 2022 |
|
September 30, 2023 |
|
September 30, 2022 |
Gross
Profit, GAAP (1) |
$16.9 |
|
|
$13.9 |
|
|
$46.1 |
|
|
$38.9 |
|
|
Add: Depreciation and amortization |
|
1.4 |
|
|
|
1.3 |
|
|
|
4.2 |
|
|
|
3.5 |
|
Adjusted Gross Profit |
$18.3 |
|
|
$15.2 |
|
|
$50.3 |
|
|
$42.4 |
|
|
|
|
|
|
|
|
|
|
General
and administrative expenses, GAAP |
$4.8 |
|
|
$3.1 |
|
|
$12.7 |
|
|
$8.7 |
|
|
Add (Subtract): Acquisition-related, restructuring and other
costs |
|
(0.6 |
) |
|
|
– |
|
|
|
(1.2 |
) |
|
|
0.4 |
|
|
Other, rounding |
|
– |
|
|
|
0.1 |
|
|
|
– |
|
|
|
– |
|
Adjusted G&A |
$4.2 |
|
|
$3.2 |
|
|
$11.5 |
|
|
$9.1 |
|
|
|
|
|
|
|
|
|
|
Operating
income, GAAP |
$10.6 |
|
|
$9.7 |
|
|
$28.8 |
|
|
$26.3 |
|
|
Add: Amortization of acquired intangibles |
|
1.5 |
|
|
|
1.0 |
|
|
|
4.4 |
|
|
|
3.8 |
|
|
Add (Subtract): Acquisition-related, restructuring and other
costs |
|
0.6 |
|
|
|
– |
|
|
|
1.2 |
|
|
|
(0.4 |
) |
|
Other, rounding |
|
– |
|
|
|
(0.1 |
) |
|
|
– |
|
|
|
(0.1 |
) |
Adjusted Operating Income |
$12.7 |
|
|
$10.6 |
|
|
$34.4 |
|
|
$29.6 |
|
|
|
|
|
|
|
|
|
|
(1) GAAP
gross profit updated to include depreciation and amortization
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
Summary Condensed Consolidated Balance Sheets |
|
|
|
(millions, except for share and per share data) |
|
|
|
|
|
|
September 30,2023 |
|
December 31,2022 |
Assets |
(unaudited) |
|
|
Cash and cash equivalents |
$38.5 |
|
$12.4 |
|
Accounts receivable, net |
|
184.4 |
|
|
167.7 |
|
Prepaid expenses and other current assets |
|
13.1 |
|
|
16.7 |
|
Total current assets |
|
236.0 |
|
|
196.8 |
|
Property and equipment, net |
|
66.0 |
|
|
60.2 |
|
Right-of-use assets |
|
173.7 |
|
|
166.9 |
|
Goodwill |
|
544.2 |
|
|
543.2 |
|
Other intangible assets, net |
|
62.3 |
|
|
68.9 |
|
Other assets, net |
|
86.1 |
|
|
85.4 |
|
Total noncurrent assets |
|
932.3 |
|
|
924.6 |
|
Total assets |
$1,168.3 |
|
$1,121.4 |
|
Liabilities and stockholders' equity |
|
|
|
Accounts payable |
$142.7 |
|
$133.4 |
|
Accrued and other current liabilities |
|
128.9 |
|
|
137.6 |
|
Short-term lease liabilities |
|
56.4 |
|
|
60.2 |
|
Current portion of long-term borrowings |
|
14.7 |
|
|
12.4 |
|
Total current liabilities |
|
342.7 |
|
|
343.6 |
|
Long-term borrowings, excluding current portion |
|
345.1 |
|
|
331.8 |
|
Long-term lease liabilities |
|
154.9 |
|
|
158.5 |
|
Other noncurrent liabilities |
|
73.5 |
|
|
61.8 |
|
Total noncurrent liabilities |
|
573.5 |
|
|
552.1 |
|
Total SP Plus Corporation stockholders' equity |
|
252.1 |
|
|
226.0 |
|
Noncontrolling interest |
|
– |
|
|
(0.3 |
) |
Total stockholders' equity |
|
252.1 |
|
|
225.7 |
|
Total liabilities and stockholders' equity |
$1,168.3 |
|
$1,121.4 |
|
|
|
|
|
SP Plus Corporation |
|
|
|
Summary Condensed Consolidated Statements of Cash
Flows |
|
|
|
(millions) (unaudited) |
|
|
|
|
Nine Months Ended |
|
September 30, 2023 |
|
September 30, 2022 |
Net cash
provided by operating activities |
$53.5 |
|
|
$75.6 |
|
Net cash used in investing activities |
|
(22.4 |
) |
|
|
(18.1 |
) |
Net cash
used in financing activities |
|
(4.5 |
) |
|
|
(54.1 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(0.5 |
) |
|
|
(0.7 |
) |
Increase
in cash and cash equivalents |
|
26.1 |
|
|
|
2.7 |
|
Cash and
cash equivalents at beginning of year |
|
12.4 |
|
|
|
15.7 |
|
Cash and cash equivalents at end of period |
$38.5 |
|
|
$18.4 |
|
|
|
|
|
Supplemental disclosures |
|
|
|
Cash paid
(received) during the period for |
|
|
|
Interest |
$20.7 |
|
|
$11.6 |
|
Income taxes, net |
$7.1 |
|
|
($9.8 |
) |
|
|
|
|
SP Plus Corporation |
|
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
|
|
|
(millions) (unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30,2023 |
|
September 30,2022 |
|
September 30,2023 |
|
September 30,2022 |
Net cash
provided by operating activities |
$32.5 |
|
|
$39.9 |
|
|
$53.5 |
|
|
$75.6 |
|
Net cash used in investing activities |
|
(8.9 |
) |
|
|
(7.4 |
) |
|
|
(22.4 |
) |
|
|
(18.1 |
) |
plus:
Acquisition of business |
|
3.1 |
|
|
|
– |
|
|
|
3.1 |
|
|
|
– |
|
plus:
Acquisition of other intangible assets |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
1.8 |
|
plus:
Noncontrolling interest buyout |
|
0.1 |
|
|
|
– |
|
|
|
2.3 |
|
|
|
– |
|
Distributions to noncontrolling interests |
|
(1.1 |
) |
|
|
(0.8 |
) |
|
|
(2.5 |
) |
|
|
(2.0 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(0.5 |
) |
|
|
(0.6 |
) |
|
|
(0.5 |
) |
|
|
(0.7 |
) |
Free cash flow |
$25.2 |
|
|
$31.1 |
|
|
$33.5 |
|
|
$56.6 |
|
|
|
|
|
|
|
|
|
SP Plus Corporation |
|
|
|
|
|
|
September 30, 2023 |
|
December 31, 2022 |
|
September 30, 2022 |
Commercial Segment Facilities |
|
|
|
|
|
Leased facilities |
411 |
|
421 |
|
426 |
Managed facilities |
2,953 |
|
2,709 |
|
2,664 |
Total Commercial Segment facilities (1) |
3,364 |
|
3,130 |
|
3,090 |
|
|
|
|
|
|
Aviation Segment - Airports served |
|
|
|
|
|
North America |
101 |
|
100 |
|
91 |
Europe |
58 |
|
58 |
|
– |
Total Airports (2) |
159 |
|
158 |
|
91 |
|
|
|
|
|
|
(1) The
increase as of September 30, 2023 included 22 unique locations
added as a result of the acquisition of Roker |
|
(2) The increase as of December 31, 2022 included 65 unique
airports added as a result of the acquisition of KMP |
|
Contact: |
|
David Gold |
Vicky Nakhla |
ADVISIRY PARTNERS |
ADVISIRY PARTNERS |
(212) 661-2220 |
(212) 750-5800 |
david.gold@advisiry.com |
vicky.nakhla@advisiry.com |
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