SP Plus Corporation Announces Fourth Quarter and Full-Year 2020 Results
SP Plus Corporation (Nasdaq:SP) reported its fourth quarter and full year 2020 results, highlighting a net loss of $172.8 million, with a gross profit decrease to $30.4 million from $228.1 million in 2019. Operating cash flow stood at $40.2 million, while free cash flow reached $28.7 million. The company reinstated its full-year 2021 guidance, expecting gross profit between $140 million and $160 million, alongside G&A expenses of $75 million to $85 million. Despite pandemic-related challenges, SP Plus aims to leverage technology solutions to expand market share and meet anticipated travel demand.
- Generated $40.2 million in operating cash flow for 2020.
- Reinstated full-year guidance for 2021 gross profit of $140 - $160 million.
- Reduced G&A expenses in 2020 by $23.6 million, or 22%.
- Net loss of $172.8 million in 2020 compared to net income of $48.8 million in 2019.
- Gross profit dropped significantly from $228.1 million in 2019 to $30.4 million in 2020.
-- Full-Year 2020 Operating Cash Flow of
-- Reinstates Full-Year Guidance; Expects 2021 Gross Profit of
Fourth Quarter Highlights
- Business Activity In Line With Expectations
- Certain Compensation Programs Had an Outsized Impact on G&A Costs
- Technology Leadership and Scale Continue to Drive New Business
- Strong Operating Cash Flow and Free Cash Flow
CHICAGO, Feb. 17, 2021 (GLOBE NEWSWIRE) -- SP Plus Corporation (Nasdaq:SP), a leading provider of technology-driven mobility solutions for aviation, commercial, hospitality and institutional clients throughout North America, today announced its fourth quarter and full year 2020 results.
Commentary
Marc Baumann, Chief Executive Officer, stated, “Our business model continued to demonstrate its resilience in the fourth quarter, as increased holiday travel offset reduced activity in certain geographies due to the resurgence of COVID-19 infections. As a result, gross profit remained steady on a sequential basis, after adjusting for the previously disclosed early termination fees that benefitted the third quarter. The sequential increase in reported G&A was due to increased compensation costs, including restoration of the previously announced pay reductions as well as the impact of other compensation programs that normally would have been spread across several quarters.
“Our scale, client-centric culture and industry-leading technology strengthened our ability to navigate difficult, pandemic-driven business conditions throughout 2020. We had many new business wins, adding over 200 new locations in our Commercial Segment, while new business activity in our Aviation Segment was at its highest level in several years. At existing locations, many of our clients have expanded the scope of our services.
“At the same time, we made structural changes that improved our visibility and reduced our costs for the long-term. We exited 117 leases in the Commercial segment and converted almost 50 leases to management contracts, which tend to have greater predictability, and have considerably reduced our G&A run-rate.
“Our technology leadership has been a key driver of our ability to gain new business. We are a single-source provider of a suite of technology solutions that enable frictionless mobility. These solutions include prepaid reservations, on-demand payment and mobile point of sale capabilities, along with remote and on-site parking management. We also have a suite of services geared toward aviation, cruise and hospitality clients that aim to Make Travel Easier®. While we have focused on providing our technology solutions to existing clients, these solutions can also be used on a stand-alone basis, which substantially expands the addressable market for our Sphere™Technology by SP+ offerings.”
Financial Summary
| In millions except per share | Three Months Ended December 31, 2020 | Three Months Ended December 31, 2019 | |||||||
| Reported | Adjusted (1) | Reported | Adjusted (1) | ||||||
| Gross profit (2) | |||||||||
| General and administrative expenses (2) | |||||||||
| Net income attributable to SP Plus(2) | |||||||||
| Net income per share (EPS) (2) | |||||||||
| EBITDA (1),(2) | NA | NA | |||||||
| Net cash provided by operating activities | NA | NA | |||||||
| Free cash flow (1) | NA | NA | |||||||
| In millions except per share | Twelve Months Ended December 31, 2020 | Twelve Months Ended December 31, 2019 | |||||||
| Reported | Adjusted (1) | Reported | Adjusted (1) | ||||||
| Gross profit (2) | |||||||||
| General and administrative expenses (2) | |||||||||
| Net (loss) income attributable to SP Plus(2) | ( | ||||||||
| Net (loss) income per share (EPS) (2) | ( | ||||||||
| EBITDA (1),(2) | NA | NA | |||||||
| Net cash provided by operating activities | NA | NA | |||||||
| Free cash flow (1) | NA | NA | |||||||
(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) Adjusted gross profit, adjusted general and administrative expenses, adjusted net income attributable to SP Plus, adjusted earnings per share attributable to SP Plus (“adjusted EPS”), and adjusted earnings before interest, income taxes, depreciation and amortization (“adjusted EBITDA”) are all non-GAAP financial measures that exclude, for the periods presented, (a) restructuring, acquisition and integration related costs, including severance costs resulting from COVID-19, (b) impairment charges, (c) the amortization of acquired intangible assets, (d) gain/loss on termination of joint ventures, and (e) non-routine tax items. 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 2020 was
Reported general and administrative (“G&A”) expenses for the 2020 fourth quarter were
Reported net income attributable to SP Plus was
Full Year Operating Results
Reported full year 2020 gross profit was
Reported G&A expenses for full year 2020 were
Reported net loss attributable to SP Plus and reported net loss per share was
The Company generated solid net cash from operations and free cash flow in fiscal 2020 of
2021 Outlook
Mr. Baumann concluded, “We appreciate the dedication of our leadership team and all employees, as well as the support of our clients and their customers, all of which enabled us to remain operational throughout the pandemic and provide services at all active locations. This was one of the most challenging periods in our Company’s history, and we appreciate the collaborative ways in which we were able to work internally and with clients to achieve the best possible outcomes.
“While we expect that COVID-19 will continue to impact our clients and our business in 2021, improved visibility leads us to reinstate annual guidance on gross profit and G&A expenses. Based on our current outlook, we expect gross profit for full-year 2021 to range between
“At the onset of the pandemic, we increased our credit line by
“We see significant growth opportunities on the horizon that we believe will continue in 2021 and beyond. First, our ability to facilitate mobility in ways that eliminate inefficiencies, reduce friction and alleviate congestion is of critical importance during this health crisis, and we expect they will remain top of mind for clients and consumers for the foreseeable future.
“Second, because many experts believe there is significant pent-up demand for leisure travel, we expect that the need and desire to maintain safe distancing, alleviate congestion, and engage in touch-free transactions will be more important than ever when significant leisure travel resumes. This will play right into our sweet spot, as we have the programs and tools in place to accommodate the returning travelers.
“Third, the pandemic has driven consumer behavior change as it relates to shared-mobility and car ownership. We believe that for the foreseeable future, the preference will be for commuters to use their personal vehicles, which will increase the need for off-street parking and more actively managed on-street parking.
“Finally, many of our competitors have struggled financially or been operationally distracted during the pandemic. We believe this presents an opportunity to gain market share as we strengthen our national account relationships, leverage our differentiated technology offerings, and promote our marketing programs and revenue optimization capabilities. These capabilities become ever more important in sectors that were especially hard hit by the pandemic as our clients look to rapidly increase their revenues and recapture customers. SP+ is well suited to meet this challenge.”
Conference Call
The Company’s quarterly earnings conference call will be held at 4:00 p.m. (CT) on February 17, 2021 and will be available live and in replay to all analysts and investors through a webcast service. To listen to the live call, individuals are directed to the Company’s Investor Relations page at http://ir.spplus.com at least 15 minutes early to register and download and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be available shortly after the call on the SP Plus website and can be accessed for 30 days after the call.
About SP+
SP+ facilitates the efficient movement of people, vehicles and personal belongings with the goal of enhancing the consumer experience while improving bottom line results for our clients. The Company provides professional parking management, ground transportation, remote baggage check-in and handling, facility maintenance, security, event logistics, and other technology-driven mobility solutions to aviation, commercial, hospitality, healthcare and government clients across North America. 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, including the statements under the caption “2021 Outlook”, expectations regarding gross profits, G&A, revenue volatility, actions to limit discretionary spending, impacts of COVID-19 on our business, 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”, “could”, “should”, “estimate”, “intend”, “may”, “plan”, “guidance”, “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 impact of the COVID-19 pandemic or other contagious illnesses on global economic conditions, on the aviation, commercial, hospitality and institutional industries in general and on the financial position and operating results of our company in particular; intense competition; changing consumer preferences and legislation; ability to preserve client relationships; the Company’s ability to successfully effect its strategic growth plan; 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; risk management and safety programs do not have the intended effect; risks relating to the Company’s acquisition strategy; risks associated with management type contracts and lease type contracts; deterioration in general economic and business conditions or changes in demographic trends; information technology disruption, cyber-attacks, cyber-terrorism and security breaches; labor disputes; catastrophic events such as natural disasters, pandemic outbreaks and military or terrorist attacks could disrupt business; seasonal fluctuations and the impact of weather-related trends; 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; 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; the phase-out of the London Interbank Offered Rate (“LIBOR”) could affect interest rates under our existing credit facility agreement, hedging activity, as well as our ability to seek future financing or otherwise satisfy our liquidity needs; goodwill impairment charges or impairment of long-lived assets; the effectiveness of the actions we have taken to address our liquidity needs and reduce costs; 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; and actions of activist investors.
For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements presented in accordance with U.S. GAAP, the Company considers certain financial measures that are not prepared in accordance with U.S. GAAP. Certain non-GAAP measures, such as adjusted gross profit, adjusted general and administrative expenses (adjusted G&A), adjusted net income attributable to SP Plus (adjusted net income), adjusted net income per share attributable to SP Plus (adjusted EPS), and adjusted EBITDA exclude items that management does not consider indicative of its core performance. Such adjustments include, among other things: (i) restructuring, acquisition and integration related costs, including severance costs resulting from COVID-19; (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; and (viii) non-routine tax items. Pre-tax adjustments are tax affected at a statutory tax rate of
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 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, 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 operating activities, less cash used for investing activities (exclusive of cash used for acquisitions and net after-tax cash proceeds from the sale of businesses or joint venture related assets), less distribution to non-controlling interest, 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 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, net income, EPS, or net cash provided by 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.
| Contact: | |
| Connie Jin | Vicky Nakhla |
| SVP, Corporate Development | ADVISIRY PARTNERS |
| (312) 274-2105 | (212) 750-5800 |
| cjin@spplus.com | vicky.nakhla@advisiry.com |
| SP Plus Corporation | ||||||||
| Consolidated Balance Sheets | ||||||||
| December 31, | ||||||||
| (millions, except for share and per share data) | 2020 | 2019 | ||||||
| Assets | (unaudited) | |||||||
| Cash and cash equivalents | $ | 13.9 | $ | 24.1 | ||||
| Notes and accounts receivable, net | 111.2 | 162.3 | ||||||
| Prepaid expenses and other current assets | 26.8 | 24.7 | ||||||
| Total current assets | 151.9 | 211.1 | ||||||
| Leasehold improvements, equipment and construction in progress, net | 53.3 | 47.9 | ||||||
| Right-of-use assets | 235.1 | 431.7 | ||||||
| Goodwill | 526.6 | 586.0 | ||||||
| Other intangible assets, net | 63.1 | 152.2 | ||||||
| Equity investments in unconsolidated entities | 10.1 | 10.2 | ||||||
| Deferred taxes | 63.8 | 10.6 | ||||||
| Other noncurrent assets, net | 33.8 | 29.9 | ||||||
| Total noncurrent assets | 985.8 | 1,268.5 | ||||||
| Total assets | $ | 1,137.7 | $ | 1,479.6 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Accounts payable | $ | 97.8 | $ | 115.3 | ||||
| Accrued and other current liabilities | 112.7 | 121.4 | ||||||
| Short-term lease liabilities | 82.1 | 115.2 | ||||||
| Current portion of long-term obligations under Senior Credit Facility and other long-term borrowings | 25.0 | 17.9 | ||||||
| Total current liabilities | 317.6 | 369.8 | ||||||
| Long-term borrowings, excluding current portion | 337.1 | 351.1 | ||||||
| Long-term lease liabilities | 243.4 | 327.7 | ||||||
| Other noncurrent liabilities | 58.2 | 57.1 | ||||||
| Total noncurrent liabilities | 638.7 | 735.9 | ||||||
| Total liabilities | $ | 956.3 | $ | 1,105.7 | ||||
| Stockholders’ equity | ||||||||
| Preferred Stock, par value | $ | — | $ | — | ||||
| Common stock, par value | — | — | ||||||
| Treasury stock at cost, 2,034,742 and 1,640,767 shares at December 31, 2020 and 2019, respectively | (70.6 | ) | (55.3 | ) | ||||
| Additional paid-in capital | 261.4 | 262.6 | ||||||
| Accumulated other comprehensive loss | (4.4 | ) | (2.7 | ) | ||||
| (Accumulated deficit) retained earnings | (3.3 | ) | 169.5 | |||||
| Total SP Plus Corporation stockholders’ equity | 183.1 | 374.1 | ||||||
| Noncontrolling interest | (1.7 | ) | (0.2 | ) | ||||
| Total stockholders’ equity | 181.4 | 373.9 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,137.7 | $ | 1,479.6 | ||||
| SP Plus Corporation | ||||||||||||||
| Consolidated Statements of Income | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| (millions, except for share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Services revenue | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Lease type contracts | $ | 39.0 | $ | 101.3 | $ | 189.4 | $ | 408.9 | ||||||
| Management type contracts | 80.0 | 130.6 | 359.6 | 526.0 | ||||||||||
| 119.0 | 231.9 | 549.0 | 934.9 | |||||||||||
| Reimbursed management type contract revenue | 125.7 | 189.6 | 537.9 | 728.8 | ||||||||||
| Total services revenue | 244.7 | 421.5 | 1,086.9 | 1,663.7 | ||||||||||
| Cost of services | ||||||||||||||
| Lease type contracts | 37.3 | 92.4 | 195.0 | 366.9 | ||||||||||
| Management type contracts | 47.1 | 85.2 | 226.5 | 339.9 | ||||||||||
| 84.4 | 177.6 | 421.5 | 706.8 | |||||||||||
| Reimbursed management type contract expense | 125.7 | 189.6 | 537.9 | 728.8 | ||||||||||
| Lease impairment | 2.6 | — | 97.1 | — | ||||||||||
| Total cost of services | 212.7 | 367.2 | 1,056.5 | 1,435.6 | ||||||||||
| Gross profit | ||||||||||||||
| Lease type contracts | 1.7 | 8.9 | (5.6 | ) | 42.0 | |||||||||
| Management type contracts | 32.9 | 45.4 | 133.1 | 186.1 | ||||||||||
| Lease impairment | (2.6 | ) | — | (97.1 | ) | — | ||||||||
| Total gross profit | 32.0 | 54.3 | 30.4 | 228.1 | ||||||||||
| General and administrative expenses | 23.5 | 28.2 | 85.4 | 109.0 | ||||||||||
| Depreciation and amortization | 5.7 | 7.6 | 29.3 | 29.4 | ||||||||||
| Impairment of goodwill and intangible assets | — | — | 135.3 | — | ||||||||||
| Operating (loss) income | 2.8 | 18.5 | (219.6 | ) | 89.7 | |||||||||
| Other expense (income) | ||||||||||||||
| Interest expense | 6.1 | 4.2 | 21.5 | 18.9 | ||||||||||
| Interest income | (0.2 | ) | — | (0.5 | ) | (0.3 | ) | |||||||
| Other expenses | (0.1 | ) | — | 0.1 | — | |||||||||
| Gain on sale of other investments | — | — | (0.3 | ) | — | |||||||||
| Total other expenses (income) | 5.8 | 4.2 | 20.8 | 18.6 | ||||||||||
| (Loss) earnings before income taxes | (3.0 | ) | 14.3 | (240.4 | ) | 71.1 | ||||||||
| Income tax (benefit) expense | (3.8 | ) | 4.8 | (67.5 | ) | 19.4 | ||||||||
| Net (loss) income | 0.8 | 9.5 | (172.9 | ) | 51.7 | |||||||||
| Less: Net (loss) income attributable to noncontrolling interest | 0.3 | 0.7 | (0.1 | ) | 2.9 | |||||||||
| Net (loss) income attributable to SP Plus Corporation | $ | 0.5 | $ | 8.8 | $ | (172.8 | ) | $ | 48.8 | |||||
| Common stock data | ||||||||||||||
| Net (loss) income per common share | ||||||||||||||
| Basic | $ | 0.02 | $ | 0.41 | $ | (8.21 | ) | $ | 2.21 | |||||
| Diluted | $ | 0.02 | $ | 0.41 | $ | (8.21 | ) | $ | 2.20 | |||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 21,053,049 | 21,490,882 | 21,056,061 | 22,080,025 | ||||||||||
| Diluted | 21,165,377 | 21,600,568 | 21,056,061 | 22,208,032 | ||||||||||
| SP Plus Corporation | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| Twelve Months Ended December 31, | ||||||||
| (millions) | 2020 | 2019 | ||||||
| Operating activities | (unaudited) | |||||||
| Net (loss) income | $ | (172.9 | ) | $ | 51.7 | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
| Impairments | 234.0 | — | ||||||
| Depreciation and amortization | 29.3 | 29.3 | ||||||
| Non-cash stock-based compensation | 0.5 | 4.9 | ||||||
| Provisions for credit losses on accounts receivable | 6.4 | 1.1 | ||||||
| Deferred income taxes | (52.5 | ) | 4.2 | |||||
| Gain on sale of equity method investment | — | — | ||||||
| Other | 2.0 | 0.5 | ||||||
| Changes in operating assets and liabilities | ||||||||
| Notes and accounts receivable | 44.6 | (12.7 | ) | |||||
| Prepaid and other current assets | (2.1 | ) | (6.9 | ) | ||||
| Accounts payable | (17.5 | ) | 5.2 | |||||
| Accrued liabilities and other | (31.6 | ) | (1.3 | ) | ||||
| Net cash provided by operating activities | 40.2 | 76.0 | ||||||
| Investing activities | ||||||||
| Purchase of leasehold improvements and equipment | (8.4 | ) | (10.2 | ) | ||||
| Cost of contracts purchased | (2.6 | ) | (2.6 | ) | ||||
| Proceeds from sale of other investments and equipment | 1.2 | 0.3 | ||||||
| Proceeds from sale of equity method investment | — | — | ||||||
| Noncontrolling interest buyout | (1.7 | ) | — | |||||
| Acquisition of business, net of cash acquired | — | — | ||||||
| Net cash used in investing activities | (11.5 | ) | (12.5 | ) | ||||
| Financing activities | ||||||||
| Proceeds from credit facility revolver | 484.1 | 455.6 | ||||||
| Payments on credit facility revolver | (488.4 | ) | (470.6 | ) | ||||
| Proceeds from credit facility term loan | — | — | ||||||
| Payments on credit facility term loan | (11.3 | ) | (11.3 | ) | ||||
| Payments of debt issuance costs | (1.7 | ) | — | |||||
| Payments on other long-term borrowings | (5.0 | ) | (2.3 | ) | ||||
| Distributions to noncontrolling interest | (1.4 | ) | (3.2 | ) | ||||
| Repurchases of common stock | (15.3 | ) | (47.6 | ) | ||||
| Net cash (used in) provided by financing activities | (39.0 | ) | (79.4 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 0.1 | 0.1 | ||||||
| (Decrease) in cash and cash equivalents | (10.2 | ) | (15.8 | ) | ||||
| Cash and cash equivalents at beginning of year | 24.1 | 39.9 | ||||||
| Cash and cash equivalents at end of year | $ | 13.9 | $ | 24.1 | ||||
| Supplemental Disclosures | ||||||||
| Cash paid during the period for | ||||||||
| Interest | $ | 18.8 | $ | 17.9 | ||||
| Income taxes | $ | 2.4 | $ | 15.3 | ||||
| SP Plus Corporation | ||||||||||||||||
| Supplemental Financial Information - Reconciliation of Adjusted Gross Profit, Adjusted G&A, Adjusted Net Income, and Adjusted Net Income Per Share | ||||||||||||||||
| (millions, except for share and per share data) (unaudited) | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
| Gross profit | ||||||||||||||||
| Gross profit, as reported | $ | 32.0 | $ | 54.3 | $ | 30.4 | $ | 228.1 | ||||||||
| Add: COVID-19 related severance and other restructuring and integration costs | — | — | 1.1 | — | ||||||||||||
| Add: Non-cash impairment charges | 2.6 | — | 97.1 | — | ||||||||||||
| Adjusted gross profit | $ | 34.6 | $ | 54.3 | $ | 128.6 | $ | 228.1 | ||||||||
| General and administrative expenses | ||||||||||||||||
| General and administrative expenses, as reported | $ | 23.5 | $ | 28.2 | $ | 85.4 | $ | 109.0 | ||||||||
| Subtract: COVID-19 related severance and other restructuring and integration costs | (0.6 | ) | — | (6.5 | ) | (1.3 | ) | |||||||||
| Subtract: Non-cash impairment charges | (0.3 | ) | — | (1.6 | ) | — | ||||||||||
| Other, rounding | (0.1 | ) | — | — | — | |||||||||||
| Adjusted G&A | $ | 22.5 | $ | 28.2 | $ | 77.3 | $ | 107.7 | ||||||||
| Net income (loss) attributable to SP Plus | ||||||||||||||||
| Net income (loss) attributable to SP Plus, as reported | $ | 0.5 | $ | 8.8 | $ | (172.8 | ) | $ | 48.8 | |||||||
| Add: COVID-19 related severance and other restructuring and integration costs | 0.6 | — | 7.6 | 1.3 | ||||||||||||
| Add: Non-cash impairment charges | 2.9 | — | 234.0 | — | ||||||||||||
| Add/Subtract: Other expenses | (0.1 | ) | — | 0.1 | — | |||||||||||
| Subtract: Gain on sale of other investments | — | — | (0.3 | ) | — | |||||||||||
| Add: Amortization of acquired intangibles | 2.2 | 3.8 | 13.2 | 15.1 | ||||||||||||
| Net tax effect of adjustments | (1.5 | ) | (1.0 | ) | (68.7 | ) | (4.4 | ) | ||||||||
| Non-routine tax | (4.2 | ) | 0.1 | (3.8 | ) | (0.3 | ) | |||||||||
| Other, rounding | 0.1 | 0.1 | — | — | ||||||||||||
| Adjusted net income attributable to SP Plus | $ | 0.5 | $ | 11.8 | $ | 9.3 | $ | 60.5 | ||||||||
| Net income per share, as reported | ||||||||||||||||
| Basic | $ | 0.02 | $ | 0.41 | $ | (8.21 | ) | $ | 2.21 | |||||||
| Diluted | $ | 0.02 | $ | 0.41 | $ | (8.21 | ) | $ | 2.20 | |||||||
| Adjusted net income per share | ||||||||||||||||
| Basic | $ | 0.02 | $ | 0.55 | $ | 0.44 | $ | 2.74 | ||||||||
| Diluted | $ | 0.02 | $ | 0.55 | $ | 0.44 | $ | 2.73 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 21,053,049 | 21,490,882 | 21,056,061 | 22,080,025 | ||||||||||||
| Diluted | 21,165,377 | 21,600,568 | 21,056,061 | 22,208,032 | ||||||||||||
| Diluted (applicable for adjusted) | 21,165,377 | 21,600,568 | 21,157,728 | 22,208,032 | ||||||||||||
| SP Plus Corporation | ||||||||||||||
| Supplemental Financial Information - Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||
| (millions) (unaudited) | ||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||
| Net income (loss) attributable to SP Plus, as reported | $ | 0.5 | $ | 8.8 | $ | (172.8 | ) | $ | 48.8 | |||||
| Add (subtract): | ||||||||||||||
| Income tax (benefit) expense | (3.8 | ) | 4.8 | (67.5 | ) | 19.4 | ||||||||
| Interest expense, net | 5.9 | 4.2 | 21.0 | 18.6 | ||||||||||
| Gain on sale of other investments | — | — | (0.3 | ) | — | |||||||||
| Other expenses | (0.1 | ) | — | 0.1 | — | |||||||||
| Depreciation and amortization expense | 5.7 | 7.6 | 29.3 | 29.4 | ||||||||||
| Non-cash impairment charges | 2.9 | — | 234.0 | — | ||||||||||
| COVID-19 related severance and other restructuring and integration costs | 0.6 | — | 7.6 | 1.3 | ||||||||||
| Other, rounding | 0.1 | — | — | — | ||||||||||
| Adjusted EBITDA | $ | 11.8 | $ | 25.4 | $ | 51.4 | $ | 117.5 | ||||||
| SP Plus Corporation | ||||||||||||||||
| Free Cash Flow | ||||||||||||||||
| (millions) (unaudited) | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||
| Net cash provided by operating activities | $ | 12.3 | $ | 21.0 | $ | 40.2 | $ | 76.0 | ||||||||
| less: Net cash (used in) investing activities | (2.5 | ) | (4.2 | ) | (11.5 | ) | (12.5 | ) | ||||||||
| plus/minus: Gain/Loss on termination of joint ventures | — | — | 1.4 | — | ||||||||||||
| less: Distribution to noncontrolling interest | (0.3 | ) | (0.9 | ) | (1.4 | ) | (3.2 | ) | ||||||||
| plus/minus: Effect of exchange rate changes on cash and cash equivalents | 0.4 | 0.1 | 0.1 | 0.1 | ||||||||||||
| Other, rounding | (0.1 | ) | — | (0.1 | ) | (0.1 | ) | |||||||||
| Free cash flow | $ | 9.8 | $ | 16.0 | $ | 28.7 | $ | 60.3 | ||||||||
| SP Plus Corporation | |||||
| Commercial Segment Facilities | |||||
| December 31, 2020 | December 31, 2019 | December 31, 2018 | |||
| Leased facilities | 445 | 609 | 628 | ||
| Managed facilities | 2,539 | 2,560 | 2,514 | ||
| Total facilities | 2,984 | 3,169 | 3,142 | ||
FAQ
What were SP Plus's Q4 2020 financial results?
What is SP Plus's guidance for 2021 gross profit?
How did the pandemic impact SP Plus's financial performance?
What were the total operating cash flow and free cash flow for SP Plus in 2020?
Did SP Plus see any changes in their G&A expenses for 2020?
