SP Plus Corporation Announces Fourth Quarter and Full-Year 2022 Results
SP Plus Corporation (Nasdaq:SP) reported strong fourth quarter and full-year 2022 results, finishing the year with a 7% increase in gross profit and a 16% rise in adjusted gross profit. The company's aviation segment saw a remarkable 25% growth in Q4, driven by new contracts and increased travel activity. Despite a net income decrease in Q4 to $4.8 million, adjusted EPS rose to $0.56. SP+ anticipates continued growth in 2023, projecting double-digit increases in gross profit and adjusted EBITDA while investing $15 million more in expenses for technology and personnel. A new $60 million share repurchase program reflects confidence in future growth.
- Fourth quarter gross profit rose 7% to $48.6 million.
- Adjusted gross profit in Q4 increased by 16% to $57.0 million.
- Aviation segment gross profit rose 25% in Q4 due to new contracts.
- Full-year gross profit increased 24% to $207.9 million.
- Adjusted EPS increased 10% in Q4, reaching $0.56.
- 2023 guidance anticipates double-digit gross profit and EBITDA growth.
- Net income in Q4 dropped to $4.8 million from $8.9 million year-over-year.
- General and administrative expenses rose significantly to $30.7 million in Q4.
-- Fourth Quarter Gross Profit and Adjusted Gross Profit Increased
-- G&A Investments to Drive Accelerated Growth --
-- 2023 Guidance Anticipates Another Year of Strong Growth --
-- Technology-Enabled Addressable Market Expansion and Leadership Position Provide Pathway to High Single-Digit Gross Profit Growth Beyond 2023 --
CHICAGO, Feb. 22, 2023 (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 and Europe, today announced its fourth quarter and full-year 2022 results.
Management Commentary
Marc Baumann, Chairman and Chief Executive Officer, said, “Strong performance in the fourth quarter capped a year of substantial double-digit growth across all key financial metrics, notably gross profit, EBITDA, and EPS. We continue to effectively execute on our strategy by growing our existing contracts, maintaining our outstanding retention rates and winning new business as we accelerate the deployment of our award-winning SphereTM and AeroParkerTM technology solutions.
“Fourth quarter reported gross profit in the Commercial segment was essentially flat year-over-year due to a lease impairment charge, while adjusted gross profit increased
“SP+ is leading the digital transformation of the parking industry, and technology continues to be an important competitive differentiator for us. We’re processing one million digital transactions per month on SP+ enabled technology platforms. Our gated and gateless parking solutions continue to receive positive client response. Our suite of technology solutions has been further enhanced by the fourth quarter acquisitions of AeroParker and Divrt and the creation of our technology innovation lab in India. During 2022, we made the strategic decision to increase our investments in people and technology to accelerate future growth. In 2023, a key focus will be accelerating the deployment of our comprehensive portfolio of technology offerings in order to capitalize on evolving industry and consumer trends and realize revenue synergy opportunities resulting from the AeroParker acquisition. We believe we are well positioned to capture substantial growth opportunities.”
Financial Summary
| In millions except per share | Three Months Ended December 31, 2022 | Three Months Ended December 31, 2021 | |||||||
| GAAP | Adjusted/ Non-GAAP (1) | GAAP | Adjusted/ Non-GAAP (1) | ||||||
| Gross profit (2),(3) | |||||||||
| General and administrative expenses (3) | |||||||||
| Operating income (3) | |||||||||
| Net income attributable to SP Plus(3) | |||||||||
| Net income per share (EPS) (3) | |||||||||
| EBITDA (1),(3) | NA | NA | |||||||
| Net cash provided by operating activities | NA | NA | |||||||
| Free cash flow (1) | NA | N/A | |||||||
| In millions except per share | Twelve Months Ended December 31, 2022 | Twelve Months Ended December 31, 2021 | |||||||
| GAAP | Adjusted/ Non-GAAP (1) | GAAP | Adjusted/ Non-GAAP (1) | ||||||
| Gross profit (2),(3) | |||||||||
| General and administrative expenses (3) | |||||||||
| Operating income (3) | |||||||||
| Net income attributable to SP Plus(3) | |||||||||
| Net income per share (EPS) (3) | |||||||||
| EBITDA (1),(3) | NA | NA | |||||||
| Net cash provided by operating activities | NA | NA | |||||||
| Free cash flow (1) | NA | N/A | |||||||
(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 updated to include 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, restructuring, integration and other costs; (b) impairment charges; (c) the amortization of acquired intangible assets; (d) with respect to adjusted gross profit, depreciation and amortization expense; 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 2022, which included a
Fourth quarter 2022 reported general and administrative (“G&A”) expenses were
Fourth quarter 2022 reported net income attributable to SP Plus was
Full-Year Operating Results
Full-year 2022 reported gross profit was
Full year reported G&A expenses were
2022 full-year reported net income attributable to SP Plus was
Full-year 2022 cash flow from operations totaled
2023 Outlook
Mr. Baumann concluded, “2022 was a year of strong performance for SP+ as well as a period in which we completed two strategically important technology acquisitions that we believe will help drive future growth. As we head into 2023, we are executing on the many facets of our growth strategy, which include:
- strengthening our leadership position by bringing innovative technology solutions and superior operations to existing and new clients;
- increasing our addressable market and realizing revenue synergies through our recent acquisitions; and
- leveraging and monetizing our technology investments to further accelerate gross profit growth.
“Our 2023 outlook anticipates double-digit gross profit and adjusted EBITDA growth, at the midpoints, reflecting some benefit from the full-year impact of the recent acquisitions. Our guidance contemplates approximately
“SP+ is at an inflection point with respect to our growth trajectory. We believe the continued success of our multi-faceted growth strategy, coupled with consumer trends that favor technology-driven solutions, support our ability to achieve our 2023 outlook and high single-digit gross profit growth beyond 2023, which we believe will lead to significant operating leverage and accelerated growth in EBITDA and EPS. To that end, we expect technology to play a key role, as our goal is for technology solutions to generate more than
| Reported | Adjusted / Non-GAAP | |
| Gross Profit | ||
| EBITDA | NA | |
| Net Income | ||
| EPS | ||
| Free Cash Flow | NA |
Conference Call
The Company's quarterly earnings conference call will be held at 4 p.m. (CT) on February 22, 2023 and will be available live and in replay to all analysts and investors through a webcast service. To listen to the live call, individuals are directed to the Company's Investor Relations page at http://ir.spplus.com at least 15 minutes early to register and download and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be available shortly after the call on the SP Plus website and can be accessed for 30 days after the call.
About SP+
SP+ blends industry-leading technology and best-in-class operations to deliver mobility solutions that enable the efficient movement of people, vehicles and personal belongings. The Company is committed to elevating the consumer experience while meeting the objectives of its diverse clients across North America and Europe. 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 " 2023 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”, “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; 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; the impact of the COVID-19 pandemic or other contagious illnesses on global economic conditions; labor disputes; catastrophic events such as natural disasters, pandemic outbreaks and military or terrorist attacks could disrupt business; risks associated with operations outside of North America; risk that state and municipal government clients sell or enter into long-term lease type contracts with the Company's competitors or clients for parking-related assets; risks associated with joint ventures; adverse litigation judgments or settlements; risks associated with operating in a highly regulated environment and the impact of public and private regulations or governmental orders; the impact of Federal health care reform; adverse changes in tax laws or rulings; goodwill impairment charges or impairment of long-lived assets; risks due to the Company's substantial indebtedness, including failure to comply with credit facility covenants or meet payment obligations which may accelerate repayment of the Company's indebtedness; lack of availability of adequate capital, financing, or revenues to grow the Company's business or satisfy liquidity needs; financial difficulties or bankruptcy of major clients; the Company’s ability to obtain performance bonds; failure to attract and retain senior management and other qualified personnel; the long-term impact of climate change on our business; and actions of activist investors.
For a detailed discussion of factors that could affect the Company's future operating results, please see the Company's filings with the Securities and Exchange Commission, including the disclosures under "Risk Factors" in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.
Use of Non-GAAP Financial Measures
To supplement its consolidated financial statements presented in accordance with U.S. GAAP, the Company considers certain financial measures that are not prepared in accordance with U.S. GAAP. Certain non-GAAP measures, such as adjusted gross profit, adjusted general and administrative expenses (adjusted G&A), adjusted operating income, adjusted net income attributable to SP Plus (adjusted net income), adjusted net income per diluted share attributable to SP Plus (adjusted EPS), and adjusted EBITDA exclude items that management does not consider indicative of its core performance. Such adjustments include, among other things: (i) acquisition, 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
The Company defines Adjusted EBITDA, a non-GAAP financial measure, as U.S. GAAP net income attributable to the Company before (i) interest expense net of interest income, (ii) provision (benefit) for income taxes, (iii) depreciation and amortization, (iv) gain on sale of a business or contribution of a business to an unconsolidated entity, (v) gain/loss on termination of joint ventures or sale of other investments, and (vi) other items that management does not consider indicative of its core performance, as defined per above. The Company believes that the presentation of adjusted EBITDA provides useful information regarding the Company’s operating performance and are useful measures to facilitate comparisons to our historical and future operating results. The Company's definition of adjusted EBITDA may not be comparable to similarly titled measures presented by other companies.
The Company defines free cash flow as net cash provided by (used in) operating activities, less cash used for investing activities (exclusive of cash used for acquisitions or the purchase of intangible assets and net after-tax cash proceeds from the sale of businesses or joint venture related assets), less distributions to non-controlling interests, plus the effect of exchange rate changes on cash and cash equivalents. The Company believes that the presentation of free cash flow provides useful information regarding its ability to generate cash flow from business operations after funding capital expenditures, that can be used to, among other things, repay debt, fund strategic acquisitions, and return value to shareholders. The Company's definition of free cash flow may not be comparable to similarly titled measures presented by other companies.
The Company uses these non-GAAP financial measures, in addition to U.S. GAAP financial measures, to evaluate its operating and financial performance and to compare such performance to that of prior periods and to the performance of its competitors. Additionally, the Company uses these non-GAAP financial measures in making operational and financial decisions and in the Company’s budgeting and planning process. The Company believes that providing these non-GAAP financial measures to investors helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance and consistent with guidance previously provided by the Company. Adjusted gross profit, adjusted G&A, adjusted operating income, adjusted net income, adjusted EPS, adjusted EBITDA, and free cash flow should not be considered in isolation of, or as alternatives to or more meaningful indicators of, the Company's operating performance or liquidity than gross profit, G&A, operating income, net income, EPS, or net cash provided by (used in) operating activities, as determined in accordance with U.S. GAAP. In addition, the Company's calculation of these non-GAAP measures may not be comparable to similarly titled measures presented by other companies.
For reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, see the accompanying tables to this release.
The summary consolidated financial statements presented below reflect a combination of certain line items from our consolidated financial statements and should be read in conjunction with the financial statements and notes set forth in our Annual Report on Form 10-K and quarterly filings with the SEC.
| SP Plus Corporation | ||||||||||||||||
| Summary Consolidated Statements of Income | ||||||||||||||||
| (millions, except for share and per share data) | Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Total services revenue | $ | 418.3 | $ | 343.2 | $ | 1,553.5 | $ | 1,177.2 | ||||||||
| Total cost of services (exclusive of depreciation and amortization) | 365.0 | 294.2 | 1,331.8 | 997.4 | ||||||||||||
| General and administrative expenses | 30.7 | 24.1 | 109.1 | 88.2 | ||||||||||||
| Depreciation and amortization | 9.2 | 6.6 | 29.7 | 25.1 | ||||||||||||
| Operating income | 13.4 | 18.3 | 82.9 | 66.5 | ||||||||||||
| Total other expenses, net | 5.5 | 4.9 | 17.3 | 20.7 | ||||||||||||
| Earnings before income taxes | 7.9 | 13.4 | 65.6 | 45.8 | ||||||||||||
| Income tax expense | 2.5 | 4.0 | 17.5 | 10.5 | ||||||||||||
| Net income | 5.4 | 9.4 | 48.1 | 35.3 | ||||||||||||
| Less: Net income attributable to noncontrolling interest | 0.6 | 0.5 | 2.9 | 3.6 | ||||||||||||
| Net income attributable to SP Plus Corporation | $ | 4.8 | $ | 8.9 | $ | 45.2 | $ | 31.7 | ||||||||
| Common stock data | ||||||||||||||||
| Net income per common share | ||||||||||||||||
| Basic | $ | 0.24 | $ | 0.42 | $ | 2.17 | $ | 1.50 | ||||||||
| Diluted | $ | 0.24 | $ | 0.41 | $ | 2.15 | $ | 1.48 | ||||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 20,083,147 | 21,189,041 | 20,809,363 | 21,166,323 | ||||||||||||
| Diluted | 20,364,402 | 21,423,838 | 21,007,068 | 21,379,983 | ||||||||||||
| 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, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| Lease type contracts | ||||||||||||||||
| Service revenue | $ | 70.3 | $ | 62.3 | $ | 275.7 | $ | 215.6 | ||||||||
| Subtract: Cost of services (exclusive of depreciation and amortization) | (58.9 | ) | (47.8 | ) | (225.8 | ) | (170.6 | ) | ||||||||
| Lease type gross profit, before depreciation and amortization expense | $ | 11.4 | $ | 14.5 | $ | 49.9 | $ | 45.0 | ||||||||
| Management type contracts | ||||||||||||||||
| Service revenue | $ | 136.1 | $ | 107.7 | $ | 518.7 | $ | 385.9 | ||||||||
| Subtract: Cost of services (exclusive of depreciation and amortization) | (90.5 | ) | (73.2 | ) | (343.2 | ) | (247.5 | ) | ||||||||
| Management type gross profit, before depreciation and amortization expense | $ | 45.6 | $ | 34.5 | $ | 175.5 | $ | 138.4 | ||||||||
| Other revenue and cost of services | ||||||||||||||||
| Reimbursed management type contract revenue | $ | 211.9 | $ | 173.2 | $ | 759.1 | $ | 575.7 | ||||||||
| Subtract: Reimbursed management type contract expense | (211.9 | ) | (173.2 | ) | (759.1 | ) | (575.7 | ) | ||||||||
| Subtract: Lease impairment | (3.7 | ) | — | (3.7 | ) | (3.6 | ) | |||||||||
| Other gross profit, before depreciation and amortization expense | $ | (3.7 | ) | $ | 0.0 | $ | (3.7 | ) | $ | (3.6 | ) | |||||
| 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, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| Total services revenue | $ | 418.3 | $ | 343.2 | $ | 1,553.5 | $ | 1,177.2 | |||||||||
| Subtract: Total cost of services (exclusive of depreciation and amortization) | (365.0 | ) | (294.2 | ) | (1,331.8 | ) | (997.4 | ) | |||||||||
| Gross profit, before depreciation and amortization expense | 53.3 | 49.0 | 221.7 | 179.8 | |||||||||||||
| Subtract: Depreciation and amortization | (4.7 | ) | (3.5 | ) | (13.7 | ) | (12.5 | ) | |||||||||
| Gross profit, GAAP (1) | 48.6 | 45.5 | 208.0 | 167.3 | |||||||||||||
| Add: Depreciation and amortization | 4.7 | 3.5 | 13.7 | 12.5 | |||||||||||||
| Add: Acquisition, restructuring and other costs | — | 0.2 | 0.1 | 2.0 | |||||||||||||
| Add: Non-cash impairment charges | 3.7 | — | 3.7 | 3.6 | |||||||||||||
| Other, rounding | — | 0.1 | — | 0.1 | |||||||||||||
| Adjusted gross profit | $ | 57.0 | $ | 49.3 | $ | 225.5 | $ | 185.5 | |||||||||
| (1) GAAP gross profit updated to include depreciation and amortization expense | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| General and administrative expenses | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| General and administrative expenses, GAAP | $ | 30.7 | $ | 24.1 | $ | 109.1 | $ | 88.2 | |||||||||
| Subtract: Acquisition, restructuring and other costs | (1.9 | ) | (0.2 | ) | (3.7 | ) | (1.2 | ) | |||||||||
| Other, rounding | (0.1 | ) | — | — | — | ||||||||||||
| Adjusted G&A | $ | 28.7 | $ | 23.9 | $ | 105.4 | $ | 87.0 | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Operating income | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| Operating income, GAAP | $ | 13.4 | $ | 18.3 | $ | 82.9 | $ | 66.5 | |||||||||
| Add: Acquisition, restructuring and other costs | 1.9 | 0.4 | 3.8 | 3.2 | |||||||||||||
| Add: Non-cash impairment charges | 3.7 | — | 3.7 | 3.6 | |||||||||||||
| Add: Amortization of acquired intangibles | 2.9 | 2.2 | 9.9 | 8.7 | |||||||||||||
| Other, rounding | 0.1 | — | — | 0.1 | |||||||||||||
| Adjusted operating income | $ | 22.0 | $ | 20.9 | $ | 100.3 | $ | 82.1 | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Net income attributable to SP Plus | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| Net income attributable to SP Plus, GAAP | $ | 4.8 | $ | 8.9 | $ | 45.2 | $ | 31.7 | |||||||||
| Add: Acquisition, restructuring and other costs | 1.9 | 0.4 | 3.8 | 3.2 | |||||||||||||
| Add: Non-cash impairment charges | 3.7 | — | 3.7 | 3.6 | |||||||||||||
| Subtract: Other income | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
| Add: Amortization of acquired intangibles | 2.9 | 2.2 | 9.9 | 8.7 | |||||||||||||
| Net tax effect of adjustments | (2.3 | ) | (0.7 | ) | (4.7 | ) | (4.2 | ) | |||||||||
| Non-routine tax | 0.4 | 0.2 | 0.4 | (1.8 | ) | ||||||||||||
| Other, rounding | 0.1 | — | 0.1 | 0.1 | |||||||||||||
| Adjusted net income attributable to SP Plus | $ | 11.5 | $ | 10.9 | $ | 58.4 | $ | 41.2 | |||||||||
| Adjusted net income per share | |||||||||||||||||
| Basic | $ | 0.57 | $ | 0.52 | $ | 2.80 | $ | 1.95 | |||||||||
| Diluted | $ | 0.56 | $ | 0.51 | $ | 2.78 | $ | 1.93 | |||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| Adjusted EBITDA | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||||
| Net income attributable to SP Plus, GAAP | $ | 4.8 | $ | 8.9 | $ | 45.2 | $ | 31.7 | |||||||||
| Add (subtract): | |||||||||||||||||
| Income tax expense | 2.5 | 4.0 | 17.5 | 10.5 | |||||||||||||
| Interest expense, net | 5.5 | 5.0 | 17.3 | 20.8 | |||||||||||||
| Other income | — | (0.1 | ) | — | (0.1 | ) | |||||||||||
| Total depreciation and amortization expense | 9.2 | 6.6 | 29.7 | 25.1 | |||||||||||||
| Acquisition, restructuring and other costs | 1.9 | 0.4 | 3.8 | 3.2 | |||||||||||||
| Non-cash impairment charges | 3.7 | — | 3.7 | 3.6 | |||||||||||||
| Other, rounding | — | — | — | — | |||||||||||||
| Adjusted EBITDA | $ | 27.6 | $ | 24.8 | $ | 117.2 | $ | 94.8 | |||||||||
| SP Plus Corporation | ||||||||||||||||
| Selected Segment Data (millions, unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Commercial Segment | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||
| Gross Profit, GAAP (1) | $ | 36.0 | $ | 35.4 | $ | 156.5 | $ | 129.9 | ||||||||
| Add: Depreciation and amortization | 2.4 | 2.1 | 7.9 | 7.9 | ||||||||||||
| Add: Non-cash impairment charges | 3.7 | — | 3.7 | 3.5 | ||||||||||||
| Add: Acquisition, restructuring and other costs | — | 0.3 | 0.1 | 1.5 | ||||||||||||
| Other, rounding | (0.1 | ) | 0.1 | — | — | |||||||||||
| Adjusted Gross Profit | $ | 42.0 | $ | 37.9 | $ | 168.2 | $ | 142.8 | ||||||||
| General and administrative expenses, GAAP | $ | 8.2 | $ | 6.1 | $ | 29.3 | $ | 23.0 | ||||||||
| Subtract: Acquisition, restructuring and other costs | (0.1 | ) | (0.1 | ) | (0.8 | ) | (0.2 | ) | ||||||||
| Other, rounding | — | — | — | — | ||||||||||||
| Adjusted G&A | $ | 8.1 | $ | 6.0 | $ | 28.5 | $ | 22.8 | ||||||||
| Operating income, GAAP | $ | 26.3 | $ | 27.7 | $ | 122.0 | $ | 101.3 | ||||||||
| Add: Amortization of acquired intangibles | 1.4 | 1.6 | 4.6 | 5.1 | ||||||||||||
| Add: Non-cash impairment charges | 3.7 | — | 3.7 | 3.5 | ||||||||||||
| Add: Acquisition, restructuring and other costs | 0.1 | 0.4 | 0.9 | 1.7 | ||||||||||||
| Other, rounding | — | (0.1 | ) | — | (0.1 | ) | ||||||||||
| Adjusted Operating Income | $ | 31.5 | $ | 29.6 | $ | 131.2 | $ | 111.5 | ||||||||
| (1) GAAP gross profit updated to include depreciation and amortization expense | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| Aviation Segment | December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||
| Gross Profit, GAAP (1) | $ | 12.6 | $ | 10.1 | $ | 51.5 | $ | 37.4 | ||||||||
| Add: Depreciation and amortization | 2.3 | 1.4 | 5.8 | 4.6 | ||||||||||||
| Add: Non-cash impairment charges | — | — | — | 0.1 | ||||||||||||
| Add: Acquisition, restructuring and other costs | — | (0.1 | ) | — | 0.5 | |||||||||||
| Other, rounding | 0.1 | 0.1 | — | 0.1 | ||||||||||||
| Adjusted Gross Profit | $ | 15.0 | $ | 11.5 | $ | 57.3 | $ | 42.7 | ||||||||
| General and administrative expenses, GAAP | $ | 3.9 | $ | 3.2 | $ | 12.6 | $ | 11.8 | ||||||||
| Subtract (Add): Acquisition, restructuring and other costs | — | — | 0.4 | (0.8 | ) | |||||||||||
| Other, rounding | (0.1 | ) | (0.1 | ) | — | (0.1 | ) | |||||||||
| Adjusted G&A | $ | 3.8 | $ | 3.1 | $ | 13.0 | $ | 10.9 | ||||||||
| Operating income, GAAP | $ | 7.2 | $ | 6.2 | $ | 33.5 | $ | 21.8 | ||||||||
| Add: Amortization of acquired intangibles | 1.5 | 0.7 | 5.3 | 3.7 | ||||||||||||
| Add: Non-cash impairment charges | — | — | — | 0.1 | ||||||||||||
| Add (Subtract): Acquisition, restructuring and other costs | — | — | (0.4 | ) | 1.4 | |||||||||||
| Other, rounding | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
| Adjusted Operating Income | $ | 8.8 | $ | 7.0 | $ | 38.5 | $ | 27.1 | ||||||||
| (1) GAAP gross profit updated to include depreciation and amortization expense | ||||||||||||||||
| SP Plus Corporation | ||||||||
| Summary Consolidated Balance Sheets | ||||||||
| (millions, except for share and per share data) | December 31, 2022 | December 31, 2021 | ||||||
| Assets | (unaudited) | |||||||
| Cash and cash equivalents | $ | 12.4 | $ | 15.7 | ||||
| Accounts and notes receivable, net | 167.7 | 139.6 | ||||||
| Prepaid expenses and other current assets | 16.7 | 32.2 | ||||||
| Total current assets | 196.8 | 187.5 | ||||||
| Property and equipment, net | 60.2 | 48.9 | ||||||
| Right-of-use assets | 166.9 | 201.2 | ||||||
| Goodwill | 543.2 | 526.6 | ||||||
| Other intangible assets, net | 68.9 | 54.4 | ||||||
| Other assets, net | 85.4 | 97.6 | ||||||
| Total noncurrent assets | 924.6 | 928.7 | ||||||
| Total assets | $ | 1,121.4 | $ | 1,116.2 | ||||
| Liabilities and stockholders' equity | ||||||||
| Accounts payable | $ | 133.4 | $ | 118.5 | ||||
| Accrued and other current liabilities | 137.6 | 123.3 | ||||||
| Short-term lease liabilities | 60.2 | 65.4 | ||||||
| Current portion of long-term borrowings | 12.4 | 25.6 | ||||||
| Total current liabilities | 343.6 | 332.8 | ||||||
| Long-term borrowings, excluding current portion | 331.8 | 298.4 | ||||||
| Long-term lease liabilities | 158.5 | 200.3 | ||||||
| Other noncurrent liabilities | 61.8 | 62.6 | ||||||
| Total noncurrent liabilities | 552.1 | 561.3 | ||||||
| Total SP Plus Corporation stockholders' equity | 226.0 | 222.5 | ||||||
| Noncontrolling interest | (0.3 | ) | (0.4 | ) | ||||
| Total stockholders' equity | 225.7 | 222.1 | ||||||
| Total liabilities and stockholders' equity | $ | 1,121.4 | $ | 1,116.2 | ||||
| SP Plus Corporation | ||||||||
| Summary Consolidated Statements of Cash Flows | ||||||||
| (millions) | Twelve Months Ended | |||||||
| December 31, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| Net cash provided by operating activities | $ | 93.3 | $ | 53.4 | ||||
| Net cash used in investing activities | (54.0 | ) | (9.1 | ) | ||||
| Net cash used in financing activities | (42.4 | ) | (42.4 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (0.2 | ) | (0.1 | ) | ||||
| (Decrease) increase in cash and cash equivalents | (3.3 | ) | 1.8 | |||||
| Cash and cash equivalents at beginning of year | 15.7 | 13.9 | ||||||
| Cash and cash equivalents at end of period | $ | 12.4 | $ | 15.7 | ||||
| Supplemental disclosures | ||||||||
| Cash paid (received) during the period for | ||||||||
| Interest | $ | 16.9 | $ | 19.4 | ||||
| Income taxes, net | $ | (7.1 | ) | $ | 0.5 | |||
| SP Plus Corporation | |||||||||||||||
| Free Cash Flow | |||||||||||||||
| (millions) (unaudited) | Three Months Ended | Twelve Months Ended | |||||||||||||
| December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||
| Net cash provided by operating activities | $ | 17.7 | $ | 23.3 | $ | 93.3 | $ | 53.4 | |||||||
| Net cash used in investing activities | (35.9 | ) | (1.7 | ) | (54.0 | ) | (9.1 | ) | |||||||
| plus: Acquisition of businesses and other intangible assets, net of cash acquired | 30.5 | — | 32.3 | — | |||||||||||
| Distributions to noncontrolling interests | (0.8 | ) | (0.6 | ) | (2.8 | ) | (2.3 | ) | |||||||
| Effect of exchange rate changes on cash and cash equivalents | 0.5 | (0.1 | ) | (0.2 | ) | (0.1 | ) | ||||||||
| Other, rounding | — | (0.1 | ) | — | (0.1 | ) | |||||||||
| Free cash flow | $ | 12.0 | $ | 20.8 | $ | 68.6 | $ | 41.8 | |||||||
| SP Plus Corporation | |||||
| December 31, 2022 | December 31, 2021 | ||||
| Commercial Segment Facilities | |||||
| Leased facilities | 421 | 423 | |||
| Managed facilities | 2,709 | 2,601 | |||
| Total Commercial Segment facilities | 3,130 | 3,024 | |||
| Aviation Segment – Airports served | |||||
| North America | 100 | 89 | |||
| Europe | 58 | — | |||
| Total Airports | 158 | 89 | |||
| SP Plus Corporation | ||||
| Reconciliation of forward-looking non-GAAP measures to their comparable GAAP measures | ||||
| 2023 Outlook (1) | ||||
| Gross profit, GAAP (2) | ||||
| plus: Depreciation and amortization | ||||
| Adjusted Gross Profit | ||||
| Net income attributable to SP Plus, GAAP | ||||
| plus: Income tax expense | ||||
| plus: Interest expense, net of interest income | ||||
| plus: Total depreciation and amortization expense | ||||
| plus: Restructuring | Approximately | |||
| Adjusted EBITDA | ||||
| Per Share (3) | ||||
| Net income attributable to SP Plus, GAAP | ||||
| plus: Amortization of acquired intangibles, after tax | Approximately | |||
| plus: Restructuring, after tax | Approximately | |||
| Adjusted net income attributable to SP Plus | ||||
| Net cash from operating activities | ||||
| less: Capital expenditures, net | ||||
| less: Distributions to noncontrolling interests | ||||
| Free cash flow | ||||
| (1) 2023 Outlook does not contemplate additional acquisitions | ||||
| (2) GAAP gross profit updated to include depreciation and amortization expense | ||||
| (3) Assumes approximately 20 million fully diluted weighted average shares outstanding in 2023 | ||||
FAQ
What were SP Plus Corporation's Q4 2022 gross profit figures?
How did SP Plus perform in 2022 overall?
What is the projected growth for SP Plus in 2023?
What were SP Plus's adjusted earnings per share for Q4 2022?
What investments is SP Plus making for future growth?
