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 EndedDecember 31, 2023 |
|
Three Months EndedDecember 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 EndedDecember 31, 2023 |
|
Fiscal Year EndedDecember 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 |
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|
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 |
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Aviation Segment - Airports served |
|
|
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North America |
101 |
|
100 |
|
Europe |
58 |
|
58 |
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Total Airports |
159 |
|
158 |
|
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|
(1) The increase as of December 31, 2023 included 22 unique
locations added as a result of the acquisition of Roker |
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Contact:David
GoldADVISIRY PARTNERS(212)
661-2220david.gold@advisiry.com
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