SP Plus (SP) Tops Q2 EPS by 18c

SP Plus (NASDAQ: SP) reported Q2 EPS of $0.42, $0.18 better than the analyst estimate of $0.24.

Marc Baumann, Chairman and Chief Executive Officer, stated, “Business conditions continued to improve in the second quarter as the COVID-19 vaccine became more widely available and government restrictions were further lifted, which released pent-up demand for our services. This positive impact on our financial performance was strengthened by the actions we took last year to become a leaner organization while maintaining our superior service levels, and to invest in technology and other growth initiatives. Although gross profit has not yet recovered to pre-pandemic levels, we are able to report robust EBITDA performance, driven in part by G&A costs that were 20% lower than second quarter 2019 pre-pandemic levels.

“We are working closely with clients during this recovery period, finding heightened interest in bringing back previously suspended services as well as expanding current relationships. For example, during the second quarter, we announced that Bags® was chosen to handle delayed baggage for Hawaiian Airlines’ entire system in 22 markets, and we were awarded new contracts and renewals by several large airport and airline clients, in many cases with an expanded scope of services. Additionally, we are working closely with our hospitality clients to ramp up operations to accommodate returning leisure and business travelers. The steady return of people to workplaces, retail centers and central business districts, as well as the increase in first-time car ownership and decrease in shared mobility and mass-transit usage, have all been positive factors for our mobility operations.

“The Sphere™ suite of technology solutions continues to gain traction. Our on-demand gateless solution is currently in use at over 400 locations, with additional opportunities to deploy as a stand-alone technology solution. We’ve also made good progress deploying our gated solution and are well on our way toward having 150 locations “live” by the end of the year. Finally, we are seeing robust growth in the number of transactions processed on our proprietary Parking.com™ and Mobile POS platforms, as well as increased demand for our Sphere Custom solutions. These innovative tools are reinforcing our leadership role in the digital transformation of our industry.”

For earnings history and earnings-related data on SP Plus (SP) click here.

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