--Record 2023 Gross Profit Performance--
--Eleventh Consecutive Quarter of Net Location Growth; Maintains High Location Retention Rate of 94%--
--Increased Penetration of Technology Solutions Driving Accelerated Growth--
--SP+ Stockholders Approved Merger with Metropolis Technologies, Inc.--
CHICAGO, Feb. 27, 2024 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year 2023 results.
Management Commentary
Marc Baumann, Chairman and Chief Executive Officer, said, "Fourth quarter results capped a record year for SP+ in 2023. Full-year reported gross profit increased 15%, adjusted gross profit increased 13% and adjusted EBITDA increased 10%, reflecting excellent execution of our growth strategy by our SP+ team members who strengthened our industry leadership position by bringing both innovative technology solutions and superior operations to existing and new clients.
"Both our Commercial and Aviation segments experienced double-digit gross profit growth in 2023, as strong demand across the majority of our verticals led to a continued increase in our addressable market through new business wins. Commercial segment reported gross profit increased 14% and adjusted gross profit increased 11% for the year, reflecting robust location growth and increased activity and services at existing locations. We ended 2023 with 3,384 commercial locations, representing year-on-year growth of 8% and 11 consecutive quarters of net location growth, while maintaining a high location retention rate of 94%. Also contributing to our record 2023 results was the continuing success of our Sphere technology offerings which gained further traction with existing clients and enabled us to add 120 new standalone deployments at locations not currently utilizing any SP+ services. Aviation segment reported gross profit increased 19% and adjusted gross profit increased 17% year-on-year, as results continued to benefit from recent airport contract wins, high travel volumes and recent strategic technology acquisitions.
Mr. Baumann concluded by noting, "The Company was honored with two important recognitions in early 2024. SP+ was named as one of America's Greatest Workplaces for Diversity for 2024 by Newsweek and Plant-A Insights Group and for the second year in a row was included in the Forbes list of America's most successful Small-Cap companies. These recognitions acknowledge the hard work and dedication of our people as well as our corporate culture, which harnesses our diverse perspectives to create a better SP+."
Financial Summary
| In millions except per share | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | |||||||||||
| GAAP | Adjusted/ Non-GAAP(1) | GAAP | Adjusted/ Non-GAAP(1) | ||||||||||
| Total services revenue (before reimbursed management type contract revenue) | $217.2 | NA | $206.4 | NA | |||||||||
| Gross profit(2),(3) | $58.1 | $62.6 | $48.6 | $57.0 | |||||||||
| General and administrative expenses(3) | $40.4 | $30.2 | $30.7 | $28.7 | |||||||||
| Operating income(3) | $11.9 | $25.5 | $13.4 | $22.0 | |||||||||
| Net income attributable to SP Plus(3) | $1.2 | $11.9 | $4.8 | $11.5 | |||||||||
| Net income per share (EPS)(3) | $0.06 | $0.60 | $0.24 | $0.56 | |||||||||
| EBITDA(1),(3) | NA | $31.5 | NA | $27.6 | |||||||||
| Net cash provided by operating activities | $2.3 | NA | $17.7 | NA | |||||||||
| Free cash flow(1) | NA | ($2.3) | NA | $12.0 | |||||||||
| In millions except per share | Fiscal Year Ended December 31, 2023 | Fiscal Year Ended December 31, 2022 | |||||||||||
| GAAP | Adjusted/ Non-GAAP(1) | GAAP | Adjusted/ Non-GAAP(1) | ||||||||||
| Total services revenue (before reimbursed management type contract revenue) | $883.2 | NA | $794.4 | NA | |||||||||
| Gross profit(2),(3) | $239.6 | $254.7 | $208.0 | $225.5 | |||||||||
| General and administrative expenses(3) | $140.4 | $122.1 | $109.1 | $105.4 | |||||||||
| Operating income(3) | $77.5 | $108.5 | $82.9 | $100.3 | |||||||||
| Net income attributable to SP Plus(3) | $31.1 | $54.6 | $45.2 | $58.4 | |||||||||
| Net income per share (EPS)(3) | $1.57 | $2.76 | $2.15 | $2.78 | |||||||||
| EBITDA(1),(3) | NA | $129.0 | NA | $117.2 | |||||||||
| Net cash provided by operating activities | $55.8 | NA | $93.3 | NA | |||||||||
| Free cash flow(1) | NA | $31.2 | NA | $68.6 | |||||||||
(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) impairment charges; (c) the amortization of acquired intangible assets; and (d) 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.
Fourth Quarter Operating Results
Reported gross profit in the fourth quarter of 2023 increased 20% year-over-year to $58.1 million. Excluding depreciation, acquisition-related, restructuring and other costs, adjusted gross profit was up 10% to $62.6 million, as a result of increased parking activity, new contract wins and the benefit of high location retention.
Fourth quarter 2023 reported general and administrative ("G&A") expenses were $40.4 million, compared to $30.7 million in the year ago quarter. Adjusted G&A expenses for the fourth quarter of 2023, which exclude acquisition-related, restructuring and other costs, were $30.2 million, compared to $28.7 million in the fourth quarter of 2022, reflecting investments in technology offerings as well as other growth-related initiatives.
Fourth quarter 2023 reported net income attributable to SP Plus was $1.2 million, or $0.06 per diluted share, compared to $4.8 million, or $0.24 per diluted share in the year ago quarter. Fourth quarter 2023 adjusted earnings per share were $0.60, compared to adjusted earnings per share of $0.56 for the fourth quarter of 2022.
Full Year Operating Results
Full-year 2023 reported gross profit was $239.6 million, 15% more than $208.0 million in 2022. Excluding depreciation and amortization, impairment charges and acquisition-related, restructuring and other costs, adjusted gross profit increased 13% to $254.7 million from $225.5 million in 2022, reflecting underlying growth in same store locations, increased travel activity, new business wins and Sphere technology-only location implementation.
Full year reported G&A expenses were $140.4 million, compared to $109.1 million in 2022. Excluding acquisition-related, restructuring and other costs, adjusted G&A expenses in 2023 were $122.1 million, compared to $105.4 million in the year ago period, reflecting increased investments in business development, technology and growth initiatives
2023 full year reported net income attributable to SP Plus was $31.1 million, or $1.57 per share, compared to $45.2 million, or $2.15 per diluted share in 2022. Adjusted earnings per share were $2.76 in 2023, slightly below the $2.78 reported in 2022.
Full-year 2023 cash flow from operations totaled $55.8 million and free cash flow was $31.2 million, compared to $93.3 million and $68.6 million, respectively, in 2022. In 2023, growth in the business was offset by a cash use of $21.7 million related to acquisition and restructuring costs. These items combined with the receipt of a one-time $20.5 million federal income tax refund in 2022 drove the year-over-year decrease in free cash flow.
Recent Events
On February 12, 2024, SP+ announced that at its special meeting of stockholders on February 9, 2024, SP+ stockholders voted to approve the previously announced Agreement and Plan of Merger with Metropolis Technologies, Inc. (the "Merger"). The Merger remains subject to the satisfaction or waiver of certain other closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"). As previously disclosed, on February 5, 2024, SP+ and Metropolis each received a request for additional information and documentary material, often referred to as a "Second Request," from the Antitrust Division of the Department of Justice (the "DOJ"), which extends the waiting period under the HSR Act until 30 days after SP+ and Metropolis have each substantially complied with the Second Request, unless the waiting period is extended voluntarily by the parties or is earlier terminated by the DOJ. SP+ and Metropolis will continue to cooperate fully with the DOJ in its review. The Company continues to expect the Merger to close in 2024.
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 fourth quarter 2023 results.
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 (as defined in the Merger agreement) 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; (xvii) the outcome of the Second Request under the HSR Act and (xviii) 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 | Twelve Months Ended | ||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||
| Total services revenue | $454.1 | $418.3 | $1,782.3 | $1,553.5 | |||||||||
| Total cost of services (exclusive of depreciation and amortization) | 391.9 | 365.0 | 1,528.3 | 1,331.8 | |||||||||
| General and administrative expenses | 40.4 | 30.7 | 140.4 | 109.1 | |||||||||
| Depreciation and amortization | 9.9 | 9.2 | 36.1 | 29.7 | |||||||||
| Operating income | 11.9 | 13.4 | 77.5 | 82.9 | |||||||||
| Interest expense, net of interest income | 7.5 | 5.5 | 28.8 | 17.3 | |||||||||
| Earnings before income taxes | 4.4 | 7.9 | 48.7 | 65.6 | |||||||||
| Income tax expense | 2.4 | 2.5 | 14.0 | 17.5 | |||||||||
| Net income | 2.0 | 5.4 | 34.7 | 48.1 | |||||||||
| Less: Net income attributable to noncontrolling interest | 0.8 | 0.6 | 3.6 | 2.9 | |||||||||
| Net income attributable to SP Plus Corporation | $1.2 | $4.8 | $31.1 | $45.2 | |||||||||
| Common stock data | |||||||||||||
| Net income per common share | |||||||||||||
| Basic | $0.06 | $0.24 | $1.58 | $2.17 | |||||||||
| Diluted | $0.06 | $0.24 | $1.57 | $2.15 | |||||||||
| Weighted average shares outstanding | |||||||||||||
| Basic | 19,700,554 | 20,083,147 | 19,670,918 | 20,809,363 | |||||||||
| Diluted | 19,873,605 | 20,364,402 | 19,781,388 | 21,007,068 | |||||||||
| SP Plus Corporation | ||||||||||||||||
| Revenue and Gross Profit, before depreciation and amortization expense - by Contract type | ||||||||||||||||
| (millions) (unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Management type contracts | ||||||||||||||||
| Service revenue | $143.4 | $136.1 | $590.0 | $518.7 | ||||||||||||
| Subtract: Cost of services (exclusive of depreciation and amortization) | (92.8 | ) | (90.5 | ) | (388.6 | ) | (343.2 | ) | ||||||||
| Management type gross profit, before depreciation and amortization expense | $50.6 | $45.6 | $201.4 | $175.5 | ||||||||||||
| Lease type contracts | ||||||||||||||||
| Service revenue | $73.8 | $70.3 | $293.2 | $275.7 | ||||||||||||
| Subtract: Cost of services (exclusive of depreciation and amortization) | (62.2 | ) | (58.9 | ) | (240.6 | ) | (225.8 | ) | ||||||||
| Lease type gross profit, before depreciation and amortization expense | $11.6 | $11.4 | $52.6 | $49.9 | ||||||||||||
| Other revenue and cost of services | ||||||||||||||||
| Reimbursed management type contract revenue | $236.9 | $211.9 | $899.1 | $759.1 | ||||||||||||
| Subtract: Reimbursed management type contract expense | (236.9 | ) | (211.9 | ) | (899.1 | ) | (759.1 | ) | ||||||||
| Subtract: Lease impairment | - | (3.7 | ) | - | (3.7 | ) | ||||||||||
| Other gross profit, before depreciation and amortization expense | $0.0 | ($3.7 | ) | $0.0 | ($3.7 | ) | ||||||||||
| SP Plus Corporation | |||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||
| (millions, except for share and per share data) (unaudited) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Gross profit | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Total services revenue | $454.1 | $418.3 | $1,782.3 | $1,553.5 | |||||||||||||
| Subtract: Total cost of services (exclusive of depreciation and amortization) | (391.9 | ) | (365.0 | ) | (1,528.3 | ) | (1,331.8 | ) | |||||||||
| Subtract: Depreciation and amortization | (4.1 | ) | (4.7 | ) | (14.4 | ) | (13.7 | ) | |||||||||
| Gross profit, GAAP (1) | 58.1 | 48.6 | 239.6 | 208.0 | |||||||||||||
| Add: Depreciation and amortization | 4.1 | 4.7 | 14.4 | 13.7 | |||||||||||||
| Add: Acquisition-related, restructuring and other costs | 0.3 | - | 0.6 | 0.1 | |||||||||||||
| Add: Non-cash impairment charges | - | 3.7 | - | 3.7 | |||||||||||||
| Other, rounding | 0.1 | - | 0.1 | - | |||||||||||||
| Adjusted gross profit | $62.6 | $57.0 | $254.7 | $225.5 | |||||||||||||
| (1) GAAP gross profit includes depreciation and amortization expense | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| General and administrative expenses | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| General and administrative expenses, GAAP | $40.4 | $30.7 | $140.4 | $109.1 | |||||||||||||
| Subtract: Acquisition-related, restructuring and other costs | (10.2 | ) | (1.9 | ) | (18.3 | ) | (3.7 | ) | |||||||||
| Other, rounding | - | (0.1 | ) | - | - | ||||||||||||
| Adjusted G&A | $30.2 | $28.7 | $122.1 | $105.4 | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Operating income | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Operating income, GAAP | $11.9 | $13.4 | $77.5 | $82.9 | |||||||||||||
| Add: Acquisition-related, restructuring and other costs | 10.5 | 1.9 | 18.9 | 3.8 | |||||||||||||
| Add: Non-cash impairment charges | - | 3.7 | - | 3.7 | |||||||||||||
| Add: Amortization of acquired intangibles | 3.0 | 2.9 | 12.0 | 9.9 | |||||||||||||
| Other, rounding | 0.1 | 0.1 | 0.1 | - | |||||||||||||
| Adjusted operating income | $25.5 | $22.0 | $108.5 | $100.3 | |||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Net income attributable to SP Plus | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Net income attributable to SP Plus, GAAP | $1.2 | $4.8 | $31.1 | $45.2 | |||||||||||||
| Add: Acquisition-related, restructuring and other costs (1) | 10.7 | 1.9 | 19.1 | 3.8 | |||||||||||||
| Add: Non-cash impairment charges | - | 3.7 | - | 3.7 | |||||||||||||
| Add: Amortization of acquired intangibles | 3.0 | 2.9 | 12.0 | 9.9 | |||||||||||||
| Net tax effect of adjustments | (3.7 | ) | (2.3 | ) | (8.4 | ) | (4.7 | ) | |||||||||
| Non-routine tax | 0.7 | 0.4 | 0.7 | 0.4 | |||||||||||||
| Other, rounding | - | 0.1 | 0.1 | 0.1 | |||||||||||||
| Adjusted net income attributable to SP Plus | $11.9 | $11.5 | $54.6 | $58.4 | |||||||||||||
| Adjusted net income per share | |||||||||||||||||
| Basic | $0.60 | $0.57 | $2.78 | $2.80 | |||||||||||||
| Diluted | $0.60 | $0.56 | $2.76 | $2.78 | |||||||||||||
| (1) Includes interest expense related to carrying cost of acquisition related expenses | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Adjusted EBITDA | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||
| Net income attributable to SP Plus, GAAP | $1.2 | $4.8 | $31.1 | $45.2 | |||||||||||||
| Add (subtract): | |||||||||||||||||
| Income tax expense | 2.4 | 2.5 | 14.0 | 17.5 | |||||||||||||
| Interest expense, net | 7.5 | 5.5 | 28.8 | 17.3 | |||||||||||||
| Total depreciation and amortization expense | 9.9 | 9.2 | 36.1 | 29.7 | |||||||||||||
| Acquisition-related, restructuring and other costs | 10.5 | 1.9 | 18.9 | 3.8 | |||||||||||||
| Non-cash impairment charges | - | 3.7 | - | 3.7 | |||||||||||||
| Other, rounding | - | - | 0.1 | - | |||||||||||||
| Adjusted EBITDA | $31.5 | $27.6 | $129.0 | $117.2 | |||||||||||||
| SP Plus Corporation | ||||||||||||||||
| Selected Segment Data(millions, unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Commercial Segment | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
| Gross Profit, GAAP (1) | $43.0 | $36.0 | $178.4 | $156.5 | ||||||||||||
| Add: Depreciation and amortization | 2.2 | 2.4 | 8.3 | 7.9 | ||||||||||||
| Add: Non-cash impairment charges | - | 3.7 | - | 3.7 | ||||||||||||
| Add: Acquisition-related, restructuring and other costs | 0.3 | - | 0.6 | 0.1 | ||||||||||||
| Other, rounding | 0.1 | (0.1 | ) | 0.1 | - | |||||||||||
| Adjusted Gross Profit | $45.6 | $42.0 | $187.4 | $168.2 | ||||||||||||
| General and administrative expenses, GAAP | $9.3 | $8.2 | $36.6 | $29.3 | ||||||||||||
| Subtract: Acquisition-related, restructuring and other costs | (1.7 | ) | (0.1 | ) | (3.7 | ) | (0.8 | ) | ||||||||
| Adjusted G&A | $7.6 | $8.1 | $32.9 | $28.5 | ||||||||||||
| Operating income, GAAP | $32.0 | $26.3 | $135.0 | $122.0 | ||||||||||||
| Add: Amortization of acquired intangibles | 1.6 | 1.4 | 6.2 | 4.6 | ||||||||||||
| Add: Non-cash impairment charges | - | 3.7 | - | 3.7 | ||||||||||||
| Add: Acquisition-related, restructuring and other costs | 2.0 | 0.1 | 4.3 | 0.9 | ||||||||||||
| Other, rounding | - | - | 0.1 | - | ||||||||||||
| Adjusted Operating Income | $35.6 | $31.5 | $145.6 | $131.2 | ||||||||||||
| (1) GAAP gross profit updated to include depreciation and amortization expense | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Aviation Segment | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
| Gross Profit, GAAP (1) | $15.1 | $12.6 | $61.2 | $51.5 | ||||||||||||
| Add: Depreciation and amortization | 1.9 | 2.3 | 6.1 | 5.8 | ||||||||||||
| Add: Restructuring, acquisition, integration, and other costs | - | - | - | - | ||||||||||||
| Other, rounding | - | 0.1 | - | - | ||||||||||||
| Adjusted Gross Profit | $17.0 | $15.0 | $67.3 | $57.3 | ||||||||||||
| General and administrative expenses, GAAP | $4.5 | $3.9 | $17.2 | $12.6 | ||||||||||||
| Add (Subtract): Acquisition-related, restructuring and other costs | (0.8 | ) | - | (2.0 | ) | 0.4 | ||||||||||
| Other, rounding | - | (0.1 | ) | - | - | |||||||||||
| Adjusted G&A | $3.7 | $3.8 | $15.2 | $13.0 | ||||||||||||
| Operating income, GAAP | $9.1 | $7.2 | $37.9 | $33.5 | ||||||||||||
| Add: Amortization of acquired intangibles | 1.4 | 1.5 | 5.8 | 5.3 | ||||||||||||
| Add: Non-cash impairment charges | - | - | - | - | ||||||||||||
| Add (Subtract): Acquisition-related, restructuring and other costs | 0.8 | - | 2.0 | (0.4 | ) | |||||||||||
| Other, rounding | - | 0.1 | - | 0.1 | ||||||||||||
| Adjusted Operating Income | $11.3 | $8.8 | $45.7 | $38.5 | ||||||||||||
| (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) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | (unaudited) | |||||||
| Cash and cash equivalents | $19.1 | $12.4 | ||||||
| Accounts receivable, net | 180.5 | 167.7 | ||||||
| Prepaid expenses and other current assets | 12.6 | 16.7 | ||||||
| Total current assets | 212.2 | 196.8 | ||||||
| Property and equipment, net | 68.3 | 60.2 | ||||||
| Right-of-use assets | 179.4 | 166.9 | ||||||
| Goodwill | 544.6 | 543.2 | ||||||
| Other intangible assets, net | 59.7 | 68.9 | ||||||
| Other assets, net | 87.7 | 85.4 | ||||||
| Total noncurrent assets | 939.7 | 924.6 | ||||||
| Total assets | $1,151.9 | $1,121.4 | ||||||
| Liabilities and stockholders' equity | ||||||||
| Accounts payable | $136.6 | $133.4 | ||||||
| Accrued and other current liabilities | 128.1 | 137.6 | ||||||
| Short-term lease liabilities | 56.2 | 60.2 | ||||||
| Current portion of long-term borrowings | 16.5 | 12.4 | ||||||
| Total current liabilities | 337.4 | 343.6 | ||||||
| Long-term borrowings, excluding current portion | 335.6 | 331.8 | ||||||
| Long-term lease liabilities | 158.0 | 158.5 | ||||||
| Other noncurrent liabilities | 70.2 | 61.8 | ||||||
| Total noncurrent liabilities | 563.8 | 552.1 | ||||||
| Total liabilities | 901.2 | 895.7 | ||||||
| Total SP Plus Corporation stockholders' equity | 250.8 | 226.0 | ||||||
| Noncontrolling interest | (0.1 | ) | (0.3 | ) | ||||
| Total stockholders' equity | 250.7 | 225.7 | ||||||
| Total liabilities and stockholders' equity | $1,151.9 | $1,121.4 | ||||||
| SP Plus Corporation | |||||||
| Summary Condensed Consolidated Statements of Cash Flows | |||||||
| (millions) (unaudited) | |||||||
| Twelve Months Ended | |||||||
| December 31, 2023 | December 31, 2022 | ||||||
| Net cash provided by operating activities | $55.8 | $93.3 | |||||
| Net cash used in investing activities | (26.6 | ) | (54.0 | ) | |||
| Net cash used in financing activities | (22.3 | ) | (42.4 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents | (0.2 | ) | (0.2 | ) | |||
| Increase (decrease) in cash and cash equivalents | 6.7 | (3.3 | ) | ||||
| Cash and cash equivalents at beginning of year | 12.4 | 15.7 | |||||
| Cash and cash equivalents at end of period | $19.1 | $12.4 | |||||
| Supplemental disclosures | |||||||
| Cash paid (received) during the period for | |||||||
| Interest | $27.7 | $16.9 | |||||
| Income taxes, net | $10.0 | ($7.1 | ) | ||||
| SP Plus Corporation | |||||||||||||||
| Free Cash Flow | |||||||||||||||
| (millions) (unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||
| Net cash provided by operating activities | $2.3 | $17.7 | $55.8 | $93.3 | |||||||||||
| Net cash used in investing activities | (4.2 | ) | (35.9 | ) | (26.6 | ) | (54.0 | ) | |||||||
| plus: Acquisition of business, net of cash acquired | - | 30.5 | 3.1 | 30.5 | |||||||||||
| plus: Acquisition of other intangible assets | - | - | - | 1.8 | |||||||||||
| plus: Noncontrolling interest buyout | 0.1 | - | 2.4 | - | |||||||||||
| Distributions to noncontrolling interests | (0.9 | ) | (0.8 | ) | (3.4 | ) | (2.8 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 0.3 | 0.5 | (0.2 | ) | (0.2 | ) | |||||||||
| Other, rounding | 0.1 | - | 0.1 | - | |||||||||||
| Free cash flow | ($2.3 | ) | $12.0 | $31.2 | $68.6 | ||||||||||
| SP Plus Corporation | ||||
| December 31, 2023 | December 31, 2022 | |||
| Commercial Segment Facilities | ||||
| Managed facilities | 2,979 | 2,709 | ||
| Leased facilities | 405 | 421 | ||
| Total Commercial Segment facilities (1) | 3,384 | 3,130 | ||
| Aviation Segment - Airports served | ||||
| North America | 101 | 100 | ||
| Europe | 58 | 58 | ||
| Total Airports | 159 | 158 | ||
| (1) The increase as of December 31, 2023 included 22 unique locations added as a result of the acquisition of Roker | ||||
Contact:
David Gold
ADVISIRY PARTNERS
(212) 661-2220
david.gold@advisiry.com
