SP Plus Corp [SP] Filings

10-Q 1 sp-20230930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-50796

SP Plus Corporation

(Exact Name of Registrant as Specified in Its Charter)


Delaware		16-1171179
(State or Other Jurisdiction of		(I.R.S. Employer Identification No.)
Incorporation or Organization)

200 E. Randolph Street, Suite 7700

Chicago, Illinois 60601-7702

(Address of Principal Executive Offices, Including Zip Code)

(312) 274-2000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	SP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):


Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class	Outstanding at November 1, 2023
Common Stock, $0.001 par value per share	19,649,611	Shares

Table of Contents

SP PLUS CORPORATION

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION	2
Item 1. Financial Statements	2
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Income	3
Condensed Consolidated Statements of Comprehensive Income	4
Condensed Consolidated Statements of Stockholders' Equity	5
Condensed Consolidated Statements of Cash Flows	7
Notes to Condensed Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures about Market Risk	32
Item 4. Controls and Procedures	33

PART II. OTHER INFORMATION	34
Item 1. Legal Proceedings	34
Item 1A. Risk Factors	34
Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	35
Item 3. Defaults Upon Senior Securities	35
Item 4. Mine Safety Disclosures	35
Item 5. Other Information	35
Item 6. Exhibits	36

Signatures	37

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SP Plus Corporation

Condensed Consolidated Balance Sheets


(millions, except for share and per share data)	September 30, 2023			December 31, 2022
	(unaudited)
Assets
Cash and cash equivalents	$	38.5		$	12.4
Accounts receivable, net		184.4			167.7
Prepaid expenses and other current assets		13.1			16.7
Total current assets		236.0			196.8
Property and equipment, net		66.0			60.2
Right-of-use assets		173.7			166.9
Goodwill		544.2			543.2
Other intangible assets, net		62.3			68.9
Deferred income taxes		42.5			44.4
Other noncurrent assets		43.6			41.0
Total noncurrent assets		932.3			924.6
Total assets	$	1,168.3		$	1,121.4
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	142.7		$	133.4
Accrued and other current liabilities		128.9			137.6
Short-term lease liabilities		56.4			60.2
Current portion of long-term borrowings		14.7			12.4
Total current liabilities		342.7			343.6
Long-term borrowings, excluding current portion		345.1			331.8
Long-term lease liabilities		154.9			158.5
Other noncurrent liabilities		73.5			61.8
Total noncurrent liabilities		573.5			552.1
Total liabilities	$	916.2		$	895.7
Stockholders’ equity
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized as of September 30, 2023 and December 31, 2022, respectively; no shares issued or outstanding	$	—		$	—
Common stock, par value $0.001 per share; 50,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 23,444,353 and 19,649,611 shares issued and outstanding as of September 30, 2023, respectively, and 23,276,329 and 19,767,287 shares issued and outstanding as of December 31, 2022, respectively		—			—
Treasury stock, at cost; 3,794,742 and 3,509,042 shares as of September 30, 2023 and December 31, 2022, respectively		(130.5	)		(120.0	)
Additional paid-in capital		281.1			274.2
Accumulated other comprehensive loss		(2.0	)		(1.8	)
Retained earnings		103.5			73.6
Total SP Plus Corporation stockholders’ equity		252.1			226.0
Noncontrolling interests		—			(0.3	)
Total stockholders’ equity		252.1			225.7
Total liabilities and stockholders’ equity	$	1,168.3		$	1,121.4

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

SP Plus Corporation

Condensed Consolidated Statements of Income


	Three Months Ended					Nine Months Ended
(millions, except for share and per share data) (unaudited)	September 30, 2023		September 30, 2022			September 30, 2023			September 30, 2022
Services revenue
Management type contracts	$	153.5	$	134.9		$	446.6		$	382.6
Lease type contracts		74.9		72.2			219.4			205.4
		228.4		207.1			666.0			588.0
Reimbursed management type contract revenue		232.3		197.3			662.2			547.2
Total services revenue		460.7		404.4			1,328.2			1,135.2
Cost of services (exclusive of depreciation and amortization)
Management type contracts		99.9		89.9			295.8			252.7
Lease type contracts		60.9		59.0			178.4			166.9
		160.8		148.9			474.2			419.6
Reimbursed management type contract expense		232.3		197.3			662.2			547.2
Total cost of services (exclusive of depreciation and amortization)		393.1		346.2			1,136.4			966.8
General and administrative expenses		37.6		27.2			100.0			78.4
Depreciation and amortization		9.0		7.2			26.2			20.5
Operating income		21.0		23.8			65.6			69.5
Other expense (income)
Interest expense		7.4		3.9			21.5			12.2
Interest income		—		(0.1	)		(0.2	)		(0.4	)
Total other expenses		7.4		3.8			21.3			11.8
Earnings before income taxes		13.6		20.0			44.3			57.7
Income tax expense		3.5		4.9			11.6			15.0
Net income		10.1		15.1			32.7			42.7
Less: Net income attributable to noncontrolling interests		0.9		0.8			2.8			2.3
Net income attributable to SP Plus Corporation	$	9.2	$	14.3		$	29.9		$	40.4
Common stock data
Net income per common share
Basic	$	0.47	$	0.69		$	1.52		$	1.92
Diluted	$	0.46	$	0.68		$	1.50		$	1.90
Weighted average shares outstanding
Basic		19,649,611		20,744,813			19,660,930			21,054,095
Diluted		19,910,308		20,977,667			19,874,165			21,223,982

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

SP Plus Corporation

Condensed Consolidated Statements of Comprehensive Income


	Three Months Ended						Nine Months Ended
(millions) (unaudited)	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Net income	$	10.1		$	15.1		$	32.7		$	42.7
Reclassification of de-designated interest rate collars		—			—			—			0.5
Foreign currency translation loss		(0.9	)		(0.6	)		(0.2	)		(0.7	)
Comprehensive income		9.2			14.5			32.5			42.5
Less: Comprehensive income attributable to noncontrolling interests		0.9			0.8			2.8			2.3
Comprehensive income attributable to SP Plus Corporation	$	8.3		$	13.7		$	29.7		$	40.2

See Notes to Condensed Consolidated Financial Statements.

Table of Contents

SP Plus Corporation

Condensed Consolidated Statements of Stockholders' Equity


	Common Stock
(millions, except share data) (unaudited)	Number of Shares Issued		Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Noncontrolling Interests			Total
Balance at January 1, 2023		23,276,329	$	—	$	274.2		$	(1.8	)	$	73.6		$	(120.0	)	$	(0.3	)	$	225.7
Net income		—		—		—			—			8.4			—			0.9			9.3
Foreign currency translation		—		—		—			0.2			—			—			—			0.2
Issuance of restricted stock units		148,806		—		(0.4	)		—			—			—			—			(0.4	)
Non-cash stock-based compensation		—		—		2.2			—			—			—			—			2.2
Noncontrolling interests buyout		—		—		(0.7	)		—				—		—			—			(0.7	)
Repurchases of common stock		—		—		—			—			—			(10.5	)		—			(10.5	)
Distributions to noncontrolling interests		—		—		—			—			—			—			(0.5	)		(0.5	)
Balance at March 31, 2023		23,425,135	$	—	$	275.3		$	(1.6	)	$	82.0		$	(130.5	)	$	0.1		$	225.3
Net income		—		—		—			—			12.3			—			1.0			13.3
Foreign currency translation		—		—		—			0.5			—			—			—			0.5
Issuance of restricted stock units		558		—		—			—			—			—			—			—
Issuance of stock grants		18,660		—		0.6			—			—			—			—			0.6
Non-cash stock-based compensation		—		—		2.6			—			—			—			—			2.6
Distributions to noncontrolling interests		—		—		—			—			—			—			(0.9	)		(0.9	)
Balance at June 30, 2023		23,444,353	$	—	$	278.5		$	(1.1	)	$	94.3		$	(130.5	)	$	0.2		$	241.4
Net income		—		—		—			—			9.2			—			0.9			10.1
Foreign currency translation		—		—		—			(0.9	)		—			—			—			(0.9	)
Non-cash stock-based compensation		—		—		2.7			—			—			—			—			2.7
Noncontrolling interests buyout		—		—		(0.1	)		—			—			—			—			(0.1	)
Distributions to noncontrolling interests		—		—		—			—			—			—			(1.1	)		(1.1	)
Balance at September 30, 2023		23,444,353	$	—	$	281.1		$	(2.0	)	$	103.5		$	(130.5	)	$	—		$	252.1

See Notes to Condensed Consolidated Financial Statements.

Table of Contents


	Common Stock
(millions, except share data) (unaudited)	Number of Shares Issued		Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Loss			Retained Earnings		Treasury Stock			Noncontrolling Interests			Total
Balance at January 1, 2022		23,224,459	$	—	$	267.5	$	(2.8	)	$	28.4	$	(70.6	)	$	(0.4	)	$	222.1
Net income		—		—		—		—			10.7		—			0.6			11.3
Foreign currency translation		—		—		—		0.1			—		—			—			0.1
Reclassification of de-designated interest rate collars		—		—		—		0.4			—		—			—			0.4
Issuance of restricted stock units		37,235		—		—		—			—		—			—			—
Non-cash stock-based compensation		—		—		1.8		—			—		—			—			1.8
Distributions to noncontrolling interests		—		—		—		—			—		—			(0.5	)		(0.5	)
Balance at March 31, 2022		23,261,694	$	—

SP Plus Corp [SP] Filings
SP Plus Corp [CRLKP] Filings
10-Q	[2023-11-02]
10-Q	[2023-08-03]
10-Q	[2023-05-04]
10-K	[2023-02-24]
10-Q	[2022-11-03]
10-Q	[2022-08-04]
10-Q	[2022-05-05]
10-K	[2022-02-28]
10-Q	[2021-10-28]
10-Q	[2021-07-30]
10-Q	[2021-04-29]
10-K	[2021-02-22]
10-Q	[2020-11-09]
10-Q	[2020-08-07]
10-Q	[2020-05-11]
10-K	[2020-02-20]
10-Q	[2019-10-31]
10-Q	[2019-08-01]
10-Q	[2019-05-06]
10-K	[2019-02-27]
10-Q	[2018-11-01]
10-Q	[2018-08-01]
10-Q	[2018-05-03]
10-K	[2018-02-22]
10-Q	[2017-11-02]
10-Q	[2017-08-02]
10-Q	[2017-05-03]
10-K	[2017-02-24]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-04]
10-K	[2016-03-01]
10-Q	[2015-11-05]
10-Q	[2015-08-06]
10-Q	[2015-05-07]
10-K	[2015-03-06]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-03-13]
10-Q	[2013-11-18]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-18]
10-Q	[2012-11-09]
10-Q	[2012-08-09]
10-Q	[2012-05-10]
10-K	[2012-03-15]

SP Plus Corp [SP] Filings

SP Plus Corp [CRLKP] Filings