SP - Earnings call transcript Q1 2020 | Central Parking Finance Trust PFD TR CV SECS

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 SP Plus Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your speaker today, Kris Roy, Chief Financial Officer. Thank you. Please go ahead.

Kris Roy

good and Christy, you, afternoon, everyone. Thank

said, SP Plus. Christy release our earnings. I'm call Kris of Officer of XXXX quarter Financial Chief first Welcome the Roy, following As to conference our

management the including performance. future for operations, plans, statements, to XXXX, will During statements as today, make that the considered statements COVID-XX, may of impact financial intentions, regarding and remarks the and expected forward-looking be outlook strategies, call company's

to earnings by website those on on reports Actual XX-Q variety results, those XX-K call this could achievements uncertainties or in other of which and a performance and earlier Form due or SP Form differ with the materially other risks, afternoon, the reference risk the expressed described purposes implied Plus report SEC. the from factors incorporated in release of and factors, annual and this quarterly available for is including the issued filings in on company's company's

non-GAAP GAAP operations of information the are information an with financial In addition, results evaluate the of financial investors way during appropriate full believes is management ongoing company's call. A informational company's measures the in reconciliation tables useful concerning were provides supplemental measures to purposes earnings the to only. for provided release. presented They performance. comparable non-GAAP the presentation and financial discuss the will Management non-GAAP accompanying

the end Plus will and call for is will of this be be the reconciliations section Regulation website. days extent website the are GAAP note, shortly being is other G available call, recorded. Relations being internet the on the today. to will call comparable A from in live SP the of Investor XX available the be To and non-GAAP Plus after over measures under tab financial measure Please the replay the posted SP the on disclosed broadcast

the Executive Chief turn Officer. to Marc call now will I over Baumann, our

Marc Baumann

quarter tracking momentum. of to in were first as joining to our us XXXX national our performance entered positive you This February, key plan. current discuss that our implemented accounts. and today We Thank business have verticals everyone And contracts for as activities, and for January part thank year significant conditions. results you Chris and well and with we our won as we ahead prioritize last strategies of cross-selling reflected XXXX

of travel us with By business our activity actions virus we've and these and impact the as rapid the taken began responded the significantly middle impact This mandates. to March, pandemic to general the in times. stay-at-home COVID-XX to business however, of states to brings spread address of the COVID-XX the broad unprecedented

To of safety for and clear information, recommendations, educated including infected been from for in to the virus-related end, First protocols that our distancing, strict has to social keeping implemented safety on on primary facilities those the foremost, to health consistent instruction work and isolation remain with concern. that access can employees for and clean, anyone CDC home need remotely. employees our work guidelines to functions we shift

services our the place much ensuring support and while clients' for our continue and and needs in orders liquidity shelter-in-place of financial dramatically, down Canada With demand across preserving we flexibility. U.S. to adequate

various differing spend on I the arrangements. based time over little has contractual worthwhile on impact think COVID-XX us a it's going our to operating

are lease Rent and revenues responsible the Easiest combination or be the payroll structured both. of agreements, variable fixed, rent. [indiscernible] for to from our all including these a operating understand can Under costs, is as arrangements. and operation

profit unless gross of as revenues For decrease accordingly. able reduce contract, will to we're this costs decrease, type

We have leases, in about division. XXX commercial primarily the

an to facility's Plus fixed provide speaking, be with management the hourly management transaction month, fee. the or an amount incentive operating percentage rate of client fee the rate, Management combination the SP above, type a have a a per or profit, without fee variability, a of structural generally more The contracts services. per but pays revenue can or

the some certain SP in Plus cases, how is To is responsible but can most contract of the payroll, our operating the including operating are client, are operating pass-throughs add costs, cases, additional on to costs arrangement. for profitability situations, In costs. dependent costs. for also we complexity, contractual under responsible on SP Plus effectively In vary management a those depending these the contracts manage

us A some profit an of business downturn. the management generally from fee is SP not management fee protection and in activity have historically is large gross generated type of economic Plus Where measure the fixed our does portion the contracts, those impact that level of a amount, provided earns.

remains So long to Plus continue its SP as fee. operational, should facility earn the management

to fee management some exposure other volume revenue arrangements, we reductions. have or For

of prolonged our period activity could on business a have negative reduced business. contract So, management impact

restrictions revenues were transaction speak able are react to to or address Now, we our to lifted payroll expense operations, activity largest began current generally while level the our frontline some we activity, business our let to volumes of me of about as the At quickly steps and we've up resumes. and either the collected flexibility, costs, as taken financial remain quickly ready ramp operating the reduce maintain to line decline. situation

the payroll Given clients. reimbursed is our operating concentration management much of type cost our arrangements, contractual by of

into to So their our take actions desires consideration objectives. and had

others minimum maintain levels to to staffing approach, wait-and-see and immediately a while levels. to cut staffing decided wanted clients take Some

put XX% hours pre-pandemic as a To actions recent perspective, in period to workforce most for we've pay our for were the baseline. compared approximately the down paid hourly taken,

respond activity work our clients to ramp to to business closely with up. continue back very their also while accommodate to starts needs, quickly prepared We being once

top in salaried furloughs, curtailed sustained gross included to impacted for our as enacted it We've be that functions the reductions reductions period a tiered also also profit support pay line across discretionary These clear spending. time. and more going reduced our actions was workforce. became hours significantly cost of We outright

looking which further reduce us won't As be as fully expenditures will for competitors. costs, only authorizing already we're technology G&A actions, $X investments that costs. we've our a We until result results to such of G&A our capital our monthly out million reflected ways apart approximately set essential these cut are our from help investments back in May, and and taken in

ample we've crisis. able we'll We the taken the of us capital, And Finally, flexibility $XX lender and worked of to facility $XXX and we financial be to preserve of revolving cash by arise. the to access existing liquidity, through capital additional actions million. our as million. believe believe stock with credit a under our facility substantial give to We have group suspended that need yesterday, we repurchases our that availability sources upsize manage should we plus had over

not as Plus emerge strength a things able position we've know project environment, crisis, recovery, XXXX with in in and will we pace our building of of the guidance. the new the broader in out year a leader What SP we start market position to leisure Given this of particular. a in to for different we to withdrawn timing we as were our and but post-COVID from do be see the a normal back the When mobility uncertainty at is recovery the the economy of that in we're travel management.

we we demands. believe not preferences and will investments critical technologies meeting have cut technology As for be part back forward, other capabilities of and as online remote tools touch-free management, changing moving to facilitate our consumer

to and them. more options path their among we a will clients one. to most be and for creative likely very pandemic, by It to than more ever work impacted this aviation be cost-effective is that the together important recovery Our long is find outsourcing

employee to help and the of of drive mass way points reduced our leading but and to now transportation, focusing signage. protocols previously we measures marketing safety modes operating enhanced choose documented touch themselves with also them physical parkers on that near alternative screenings, are distancing, to clients, park We're safety sanitizing workplace and concerns. attract all to prioritize effective plans and For business their may for due reopen practices, used transits that

We can companies plans very help a receiving the We've have been and sharing from capitalized well challenges been potential face ahead. to our also calls better begun where like with clients SP shift them inbound received. considering Plus who these clients, they've

Kris take now quarter financial through you first results. will our

Kris Roy

results, Thank focus you, quarter results. today the adjusted first on discussing we Marc. will comments When our

GAAP all find earnings can in of to measures the full the today's release. measures accompanying reconciliation tables nearest You a non-GAAP

XXXX $X.X XX% quarter by of or in business, starting in COVID-XX year-over-year slowdown adjusted the XXXX. to gross in March million profit light half crisis declined due of to First second $XX.X the million, the

to Our adjusted results reductions exclude charge. for as the a well severance lease for as costs first COVID-XX, to impairment of XXXX $XX.X noncash related response million in quarter headcount $XXX,XXX

circumstances indicate recoverable. a a the to assets accounting in As the change January required asset value for basis carrying a to on required not XXXX, on are be result events X, adopted determine whether or we that may periodic of evaluate lease our we impairment of that lease

The facility COVID-XX entered on of charge with rather leases related acquisition of but first or the arrangements have to XXXX our York the impairment our taken related impact New purchase, lease market. of leases, in lease It to the the impairment in our not is to majority into any quarter expected reflects we relates a overtime.

primarily compared our be due reflected quickly for not combined, position, from to million the our XXXX our will until the action lower structure these to and million accruals long-term we of fully XXXX which not quarter compensation for and $X year, are $X.X benefit until adjusted strengthen tangible in first first May. results quarter performance-based took most cost the financial was down program XX%, to last programs, Nonetheless, of While incentive reduce actions still and April year-over-year. our our G&A of down or

repurchases be year to expect increased by Adjusted added stock from will The share XXXX of lower $X.XX. COVID-XX. from We both adjusted $X.XX resulting EPS. the EPS quarter to X% count these programs impacted quarter ago first substantially

flow in a For free improvements. of quarter, flow March capital free quarter, is quarter, due ago year to of cash a which primarily million, $X.X improvement cash lowest flow our cash a to $XX.X free million we compared million year-on-year $XX.X working historically the of generated negative

hard and duration a additional Looking shelter-in-place the possibility pandemic for to of mandates. what might that wave of the this predict mean and ahead, is it second

is we have position. as challenging, our taken financial improve visibility already actions discussed, strategically Marc Although to

we point the know greatest in efficient the business Based may the but on second manage Further ourselves. crisis this leaner, with be of felt more improvement low line, the emerge crisis through our to that from second have flexibility we on financial the half year. liquidity today, what warranted the a be other that we we on the impact of and pandemic-related expect progressive side, and actions version to this believe during quarter, of down

I'll back Marc. that, call to over turn With the

Marc Baumann

Thanks, Kris.

Plus, the As future think optimistic. we about of SP remain we

Of but and plans their local progress as governors course, of there the are signs climate challenging, restart today states economies. announced is to

to travel we in for we will that time While like to opportunity particularly the expect it prior potential for levels, us. the of recession, return a some take with set front

positioned we mentioned, already As and better leader think to inbound I respond seeing will that as new business to industry opportunities. an we're activity be

We is assist also signage, Valet they where while Parking.com, and This in emphasizing and make cleanliness acclimate remote to the maintaining for building see management overall important technologies our contact-free physical our clients the Insight including distancing, normal, the having consumers. be we proposition clients. relevant improve and are to factors out, clear will enabling new our post-COVID new more as value transactions environment opportunities to us

our more pleased the with such to well continue the pause. normalized the are ready. profitability up ways move for when believe as we partners, time their and evaluated care handle we'll to clients at key how they In force and to importance, potential and to national than on to return ourselves, operations ready We from increase full are we as the ever, soon effectively focus is health every a as help interim, as continue find we're counts. as accounts to and in patterns will hospitality dollar travel value more as stand and Now chain returns manage our clients

not are for for company, challenging and On right be and our good where dedication would of their time. a without our to commitment. want final customers our continued clients I this we thank working the our during employees note, now We

Christy, the I'll open now questions. like call up to for

Operator

[Operator comes question Instructions] from Securities. CJS Our Moore Daniel with first

Daniel Moore

and taking Marc and Chris color questions. good for afternoon. the the Thanks

Kris Roy

afternoon. Good Yes.

Daniel Moore

Maybe with G&A. start

sense cost what $XX.X pretty You May, you've of how taken for already in embedded for million The guys $X a get trying run cost QX, additional to adjusted mitigation monthly much there? we look reasonable obviously. a – some steps, Just would or like? was the million saved once G&A quarterly monthly get rate significant to

Kris Roy

Yes. Dan, this is Kris.

mid get a COVID this the how probably the look business, March, we started of you terms of bit March. of kind as what mean March in little in and think of came I at to part through to might this

there's the – we and and we go little, is quarter, thought to I sitting it a I the reacted there in say time which mentioned impacts through that opening some thing think this we What March if did would The in reversals savings I which were that the one frame, levers the pull month. quickly prudent. the of the PVC so million. relates kind March quantified started And would is probably that be to is remarks to that that say LTIP X.X the full programs and in we about as any,

Daniel Moore

Okay.

benefit million of $X.X includes $XX.X reversals? that million So those

Kris Roy

relates the I'm to sorry, kind year of impact. that Dan, and it full was $X.X really million,

them. have the a to also kind programs for LTIP, relates period that These So programs year also reversals. cycle but of prior three-year to current

So the in of XXXX March. an additional that in accrued then there's expenses we of we of first fully quarter year-end years reversed here quarter would have two and through that kind the

Daniel Moore

Alright.

Just beat rate to to reduction sort kind but – run would of normalized looking a G&A to cost the When announced? May, for not on be try the page. to at get post monthly same and get what just we everybody horse, of you've activities additional dead

Kris Roy

Yes.

be mark month of G&A. kind the million $X in of I think terms full we'll right around

Daniel Moore

That's it. Perfect.

there? sense Any April to Any for gross level profit or in you'd of color far thus kind of quarter-to-date year-over-year experienced Okay. in be share QX? willing the decline

Marc Baumann

April Not haven't yet, closed – we Dan. yet. We don't

beginning that of So now. the process in we're

that be expect fairly would it I So will substantial.

think expecting be in at the low profit second very level quarter. I gross to very, we're a

Daniel Moore

Marc, of Understood. great color, – And various contracts. in the of terms in terms types

of of fixed Just the in terms of of variable? management mix within versus kind sense fee that any bucket,

Marc Baumann

half I deals, are reverse think our we the in wide share management roughly that we filings. And our a of variety talked of the and about revenue are fixed the man-hour to in fee other can allude sort within portfolio, contracts. types management contracts deals, descriptions of then that various deals, our public half

that what ask clients hard on but of us ones our of the because contracts, not performance to are the course, we those are to and do, depends So, very what predict model individual only do.

all we think currently remarks, our of of brought and in airports. out we're And the I don't it our XX% at operating prepared about but commercial locations virtually

opted of have of point. down level activity this low, at So, very least very shut operations, while the few at clients is their our to actually

Daniel Moore

Perfect. That's helpful.

coming of Lastly, recessions on you the having will you be of for as some you the there to a opportunities obviously that share may coming of of out gain or be again this. Can elaborate of prior maybe this? share opportunities result Thank some some – color. out dialogues examples

Marc Baumann

about talked that on in we for it, Sure. in Dan. is I important Well, I we've bit the out curtailed remarks, we've not prepared that and in our up the And pointed technology do our Sure, key problems think offering that to people believe our also thing differentiated and want time build to in the offer to future, and other investments most solve current can't long technology. a of clients a to glad our period do. any up little solutions that a technological is fact success, both the for we that to that

and functionality. talked new about And Parking.com, we've so before, as we are adding particularly

that and now pay will be more beta make in functionality people of parking right parking. fact, enables the for a and for tested to being full-functioning In Parking.com find online really additional tool to live next couple is weeks us going

time your where are over. won't time all parking, in and use incentivized beta over use that limits to people And remain you to again enable your Parking.com again. start you and as that back impediment create you before time you'll for set every own find to in in the you now guest that up a One a tool. come the to that permanent capabilities guest because is that of credentials test and wanting huge that it And to to that's come to have had credentials actually it, the to way, had wanted pay be

we're want kind anything. is the to to to want part people, don't They and going are human solutions of things distancing lot our for that. other – of to months if for looking ways everybody probably about daily social many interact we're to I have touch technological those come. with think to And a as our routines enable people And I behavior, don't you think think of do So, that doing. they

And we'll have client be the technology there right an facilities, investment be We'll the parking anything. the without has at into to able online and so to monthly able where in office. buy conduct parking to come touching made transactions not

We and they're And I also be interacting not are think but clients, in Bags, for just for social touchless we've the future And actually – the we baggage of what the offer over more that the delayed in up or it's that people environment low also deployed, with. but technologies remote a options that to technologies can public, about programs. solutions. check the our distancing careful traveling friction services have, whether number management, of course, delivery at delayed support going – drive

these have a curb in reality opposed new with look like airports in team a is what going people in things, so as can to contact to check not inside maintain long and about distances, to our touching to And technologies ongoing how and the the be to airlines we queue now use social enable to Bags been terminal. at

in XXXX, we of of X/XX, air happened slower to economy, given XXXX, a think well perhaps but curve provide. try because in just after the of what share investments parts our a in larger a technology. in services happened the recession share have And small will think I travel to terms we're that recovery that other market than have Now, positioned we capture of some what the very recognize we of I

Daniel Moore

will queue out and Kris. with and follow-ups. Very I jump any helpful. you Marc Thank

Kris Roy

you. Thank

Operator

Your comes Tim Mr. next question from Mulrooney. Mulrooney?

Tim Mulrooney

Hello?

Marc Baumann

Tim? Hello,

Tim Mulrooney

Can Marc? hear Yes. me, you

Marc Baumann

We can Go ahead. now.

Tim Mulrooney

Okay.

know there. I a what cut happened, Sorry, out don't

So you can now? hear okay me

Marc Baumann

can. We Yes.

Tim Mulrooney

Right.

increased Marc. I spaces shift mass potential prepared I afternoon. how more toward demand an shift you you appreciate are thought Good for guys for that and transit a guess parking again. individuals about are driving hadn't secular about remarks, And Okay. world? I your from secular internally? the post-COVID a enough thinking away yourselves in for positioning How

Marc Baumann

Well, indications are seeing mass avoiding think some that transit. that already I people we're

that So, it's transit What – we're in of speculate to in it's car, do especially have now, And do will going cities, for think going cars. in own is some might maybe we are if people not cities option be what generally true mass I whether operations commuters of right the that we big have future. that that have is I'm suburban saying, or New the my other York in that. do who seeing

see clearly, I of uptick think capacity that. was a And there people so limitations places. think, we'll in in And because don't look, an most I driving

think are, there have parking In where that parking capacity. up ample will rates. think or drive probably most fact, that general, in I cities are there if I major But

who Now them. one infection our is in to a and don't transits potentially office employers bring large that's inbound we're to from come in employees of want of getting on mass our because cities happening that requests the things saying, they're going we with are number

And way every as there's including to everybody want of do arrange not of might we the this, want for to are to this, we course, imagine, so want driving might them pay employees nuances be all that to we going want to to sorts we our in you day. we in. And parking for. And that facilitate

you but days of more monthly some So we share pay than week. we'll and that, let on for to to a access we'd space parking like one person that want rate spaces, the different

enabled So of fortunately, for technology our developed fully activities. all kind of that is we those

going will monthly parking, the people say, rate. I come see want don't will want some well, think I in – don't daily I'm to to but not we'll people every also so day, I that pay

a enable parking at XX again, sort passes at some me I would to enables of that buy have once. that. that all would there that be technology maybe could bundle pricing once the discount a So, And have we

positioned of I expected sort we're consumer changes those in for well changes So behavior. think –

Tim Mulrooney

need will months. switch guys, If That that That's parking little of interesting. an in gears in understanding between I second, coming for all here? talk still all airlines, some increased Bags how breakdown get unclear hotels a acquisition really the end to profile big could future. of be think out was a market what just the management I can plays ships, you for the is the business pretty investors about at and It's Bags. interesting so It is? but a for overall about cruise exposure Can what the are you a better we kind the see

Marc Baumann

Sure. do that. We can

– base And think of you to delivery, prime their managing then include get to also out airlines. bag I it primarily, client could array to. they luggage to service the the your of services are airlines. doesn't needs come They it office you, the baggage that business which baggage serve go need then if get the only means carousel, XX are delayed

of and and check-in they airlines. for move the kind their front airlines the for also wheelchairs individual that's They do for so skycap curb airlines, people services legacy part business. at main of in And

activities there's primarily airports. focus a of at that for sort airline-centric take So, an

other they terminals is bags between move ship and airports they The thing cruise do resorts. or

planes, with like of be, business And people although the just whether going will so I what them. people part or few airline are are the we're very most would part or resorts reopening. obviously, cruises say sailing on be on And seeing impacted part, that, on airlines are are based cruises the for is flying that will

no now. and lines a resorts scaled lot and right cruise of sailing back there's of closed, temporarily – have the course, Now or

the they're at at travel service, drive new deal of model their cabin. expecting some cost working of being our and recovery actually furlough, clients are said, for sanitation people despite an most part, for in eager we all for to are they're these And preparing most have, challenges not I what the are the airlines the the very client increased because think the cleaning with need and – to is ways in restart what down airline that now people explore organizations for and providing the leisure like. That that looks

And actually so some with conversations some services. having providing airlines we're the of those about

They're also saying elements want to the There that cabin. it luggage discourage things are the slows now the in may going be carry-on we cleaning involved cabin because and down already enough process. to new into you bring

So, service X there may means some under baggage functions baggage, checked to for airlines. will be will be talking and as or that services; be that in about to contract provide of need those We're more services such we so wheelchair delayed that an baggage multiple increase even there these offices can airlines delivered. consolidating

because can cost costs of us your our down ones in drive the to or, in So, there's that client the lower these outsourcing and for base, weren't receptivity that arrangements, about cost way their thing going to realize you contractual technology was case, going deliver doing themselves. X of think were to And, all down. by they leisure, it one not product be a is considered where own drive that's sure, new things us activities before a just that everybody a to like is like high-quality in we how to somebody into enabled business. way individual I course, outsourcing is been a this travel and somebody are thinking entering at Bags, than Number way And

Tim Mulrooney

coronavirus the the business? you parking not new side on the opportunities for baggage handling creating So, also pandemic, management within just but

Marc Baumann

the to I proposition. levels thinking is how at a certainly I to, it – it have everybody there we ramp-up the was leisure, last the XXXX, call was not XXXX a it were especially be just multiyear potentially, of be fast year, in X/XX. and Because period, you after I mean might the ramp-up all navigate of – Exactly. travel do going think about it, in let's challenges

So, you And an impact a any be going on surprising. there's be time it recession, have I to wouldn't think travel.

like talked That impact about people we've hospitality the and being the how and cars. number it's ridesharing space parking of the of reduce hospitality and said, that before

And that but we across impact scale so need that hotels level I on hotels our at America, services. with know, have, has SP operations and there's operate to Plus, XXX individual hotel, XXX the an of North that an don't X,XXX we

And or across board occur one there's all. same a in locations or one lots skycap impacts for we may We space. airport any airline the locations other at to the And or we might skycap might but do same for their of provide in some the we of so provide for true the at that at skycap provide reports that and airline, of airline two don't is while for other airline places only some services at other not have airports. vertical, at don't service even the we that

consolidation airlines, drive can actually the think, opportunity I a down there's cost. of So, activity for which here,

their some The are their obligations other some of away clients. our side of deals, this of from – are fulfilling is competitors have that walked their to not

Y, getting people ‘hey, Z you will Company some the X, in?’ is requests so come And job, guys from we're up And walked saying, of answer those yes. just inbound the

say, once strength – operator again think parking financial I concerned people or have we So, the now. – I'm other I have of calling, about not I'm the

– And to some talk you some services so providing I'd doing to about to like us.

stay-at-home ourselves be we're are think economy, out as been draconian move we've position period. of to runs trying its So advantage of way the of negatives for are through while also of opportunities to that pandemic these but plenty to we there about talking we sort growth, able take kind that our this various as now of there

Tim Mulrooney

investors. a implications has – just and if could terms for Yes. This Marc, I talk could your but consideration, more I particularly my contracts ask dive bit your your little I structured. into how more. one managed contract if want think color on Maybe that's model, we specifically longer-term are good for to great about

that facility think management a – are down? the your by this now? closed, So, is us of still help just how Thank this through be is about during of contract you a is enforcement Or us managed collecting facilities to for duration contract what's shutdown? completely not, to these some If your managed can revenue? period And you during Can if If structure the shut – now. the fee? you. where extended periods is walk you approach lost would contracts contract

Marc Baumann

they're Sure. in I that Right. mind, in or the of shut. only are locations XX% mean, might And Well, imagine. commercial the actually so the bear Tim, you ones group, that

stadiums things are them say mind, the like days the about the activity times I sports literally, all. where most contract tremendously, on hotels I've client would centers, notice. and that, XX they for the of part; but in thing are same management terminable bear by places and One contracts on at many And structures, no said going there's convention vary

the mean, business time. long of were And I provide long, look working relationship. at we're so a that's we services And our we in description it in been our a written and disclosures a compensated. provide locked describes as client what how we contract what much for not in; and it's and locked and

‘Hey, make a sense restructure says, What look in when under there? we comes to operate makes Are to to us, financial it I that need going I'm and is, we a and contract where my restructure money? can we clearly, duress, So at client us contract.’ still way for to

leaders. not – we're do We into loss

period some contract a try to of work saying, sense. clients that the location, of And in means time management if reopen. request, to makes suspend to whether this, accommodate we're and them We're close do see need are can the it. restructure I so I to the that fee for course, until client's to we and I a going And going with my like time

oh, clients the want incurring but want sometimes keep I a you we that. do suspend And well, I like, Now can't like, to to fee, we're costs.

the – So, to what is think answer them. is and I say this we

from management start-up, and all Because or scratch. it We to and do at might when available. that? Look, lose facility. not we may want have then set effect, be but of the may team be the you have time comes And capabilities infrastructure the in not starting really hourly down a to that people there a scaled cultivated we're workers,

that, think that management and capture clients I organization things sense our of to be business makes lot and when our are most a fee So, that back. because there maintaining the come prepared want our us, they realize structure, opportunities they reopen of get to

Tim Mulrooney

Marc. as appreciate, all Okay, color the you. Thanks, always. Thank

Marc Baumann

welcome. You’re

Operator

comes Our next question from Steinke with Research. Kevin Barrington

Kevin Steinke

Hi, good afternoon.

Kris Roy

Kevin. Hi,

Kevin Steinke

over So, quarter. that here of first four last the the terms you've new really managed continued quarters added some established locations in momentum in

those national maybe relationships can mean to in wondering the quarter? did national other well? Just tie that there locations as relationships? I to a much you that we were you account through account your sources locations Or first continue add how had through

Marc Baumann

can that Yes, it Yes, And to we business I when actually the low about, at of that's look a was did. quarter XX%. new – question, an new great XXXX, and in a we I compare say little we it increase don't over first sort business Kevin. had know, in

year the this of March in the business wasn't our that new quarter the latter did than we account fact and good. takes group in first into more generated last half quarter so of actually year commercial that first the we So, in

increase So of with described all – we're now, relationships. we've that national you, coming is business new new but business our conversation just from course, and adding in in as

Now our that absolutely that these focus thing – indicated remarks, – and accounts, have strategic large will I it's is the restarting. prepared my think most in the do because national demanding for I on to right complex the organizations standards as

want what records about protocols ill you checks parking and special it's their extra are capabilities they distancing, like the or whether in employees sanitation to determining and around protocols that think things, social those signage. do, public special temperature lobbies, employee, want cleaning do if so, not, deploying facilities, other whether protocols, to including protocols in cleaning keeping for and for And spaces have, elevators about of proper around having and and they

we've very the includes created of places are request multipage, very they're complex starting that plans eager these to reopening facility, in our that protocols. and the our their we're now. mean, are desires inbound we're And larger I implement have kind And that of for parking. national which us of their from operation those to getting some implement, clients address

where them it making currently us working is serve I we that somebody simply think locations on like with to so of those basis And sense. broader lot than a them conveys a

our on and will response some that manage of to this hoping that I'm actually these they opportunities our more through creativity as them clients. So, helping with to see this lead national

Kevin Steinke

Great. Okay.

some So, new Or developing of it relationships? existing is national national expansion of relationships like this this to impediment there to even in sounds relationships account national and environment? new even or those account environment, in pursue develop to can you sort existing still continue account continue

Marc Baumann

interesting Well, that's question. an

fact our from maybe set working live really would highly you that ago, even what I a from – on eye-opening or productive of way it's have hearing And including of home, I negative because working do using, new home we "Wow, would been video be like, we've would what great." them, had valuable. we're of is not me where do were or as can I to ask think I people think and or are this have be it all the great experiences whatever pitching I they're really because they Zoom it people Google many working a with important of And that idea aren't whether lot would remotely. to Meet even clients around two the can't? if months from that that meetings think an It's we're productive all it. meetings deals, now of having thought tool everyone

surprised services the with to see and than processes – new time way. ever are in how that And more RFP so deliver actually makes like clients either get to going feel during that clients I these prospective they sense I'm really more think to or creative because this ideas a ahead we're cost-effective maybe number on actually current of a

proposals So, now number national-type hopefully, clients, development of be actually for successful some we and in in right have them. we'll a landing of

Kevin Steinke

discussion impacts, the negative obviously, going handling. And near-term was – on here, interesting. baggage really around some the bags opportunities were that about That's as Okay. you but you maybe mentioned

a there so increase line think, check-in I reduce touch conversations having going And have distancing, remote service ways, the the that be because in with all interest that's would, clients, bags. you social you're won't thought, some points given check in in Because even airport to more forward? people service I standing would

perhaps momentum there check-in so this And for of some environment? coming is out remote

Marc Baumann

like think I passengers passenger will being And I volumes pandemic period. very percent there low. mean get available that be, that I but data screened TSA once we is pre-COVID-XX the puts – think from publicly are out. trailing is again, the data XX-plus down travel very,

So, the traveling very number is of low. passengers

not obviously, the terminals. And distancing important saying, at so check-in be remote congested think these an the is areas. things will come people back, that But type just have of as not start great check-in for because, need are arrangements the in a social or giant other airlines lot there's the I we ingredient even can't check-in look, moment to because

through will be some screening. to because of And on where that discourage I to congestion. TSA sort – is want and being even what want to buzz discussions able this is there security we board, people to around right of baggage of are TSA, a I have maybe think we it indicated course, the carry-on through need lot luggage processed brought don't earlier, We

to people screened. not And that has easy if luggage so which do be is lots to – have of

VIP, Bags in or at alleviating in at checking garage the So, where remotely curb pick can up to home to or of area, has to the other clients service the they expertise where I they're – returning travelers they a their claim to trip. think or baggage luggage or the in it They have, this if it also individual because and at obviously, pay some from both on baggage delivered in claim their has house. take terms a parking that traveler's place, Bags also the take the congestion from also a have bag traveler front inbound called or a Bags

my that use traveling, have all for It's I'm to I pay wait the don't something for so I time luggage. to when check

for these generating solutions helping good us think, And an out appetite that sponsored there's – model, social hopefully, of people be terms their there'll around and volumes. also of models sorts maintain because their journey. way for So things, our in the I in way on distancing of on on that's lots and best the for

Kevin Steinke

interesting color. taking That’s Thanks Okay. the questions. for

Kris Roy

welcome. Okay Kevin, you’re

Operator

Our the Marc next Riddick with comes of Sidoti. question from line

Marc Riddick

afternoon good Hi, everyone.

Kris Roy

good Marc, afternoon. Hi,

Marc Riddick

something at to before, want we was account. a a think national as I I percentage you did point? Good give wanted ballpark? if little a I are been share just mentioned updated something revenue or that that's touch update see bit is – you afternoon. if been I to if could wondering had of this this where follow-up that's on could an to as

Marc Baumann

there we confident – No. It's that available, and pretty we have before. we not really that have readily something never haven't I'm put out

account One XX before is call, when would candidates that see that national that were can they facility. data that national does I've data about so dashboard relationship. a what challenges the That thought on performance for, the that mentioned I talked of a I that means drill their we And this of can mean? about account we either down I what offer know our identified aggregated focus, or we organizations

quarterly obviously, hold and focused now been the a there And and serve attention, places metrics reviews because those months into special really business creative our of that give relationship organizations, ideas XX And we probably marketing from it national a us. relationship can well. them might performance is relationship review very and that what that's the more identified worked that's ago, country. has turn And with that very, that take organization close footprint are of with to a type larger already teams was a with to a exist We want with view somewhere that to in we a do when out organizations a strategy. across and couple commensurate them it we XX

serve don't we of serve number for of that that a new for other lots have in where are space, opportunities them. lots We've purchasing space, led there but – that We've gotten we us also that made locations the progress. and of course, health lot wins. of talked has some And group we've the care organizations, which of about into organizations in a to big our

even universe potential is candidates more. account And there's than that or more XX, national so XXX really, probably the maybe of way

goal somebody goal. have still of essence our the – designating account, so we national of And in course, and the same in

cultivating and that approach. clients basis. relationships. level, understanding every And larger we is need in at type new end adding with using a those because local for One people local the has who's on of national our organizations on cultivate our go with locations is of and the services market other comes them of our all account type working in our two-pronged level And teams and that a or from local new operate where services, organization the in the success the relationships who is a of then

Kevin Steinke

with that since signed, only with? it Okay. originally I are has about – probably in wondering but it's arrangement I kind dealing taken them. – That's your little very if what bit as was helpful. a of share and was members mean of few question turn so the given like the if and the – talk their Premier, bit And could bit expand day-to-day answer given different more the beard particular function. I on just maybe wonder wonder been into to engagement in certainly a I what how is, you what my actually, with part you could a what evolved next has months if the a a of been dialogue they're you dealing little what with that's little could

Marc Baumann

Sure. other hospitals patients, are cities certain accepting not amount mean COVID-XX models had a And for lot a that days. on activity, and I in obviously, in them many – dedicated long other And logistics accepting and there's a it's place hospitals are upending tremendous it of is have these not patients. to that are of And hospitals visitors. going a hospitals – not are hospitals other time, then allowing patients. in COVID-XX they're

hospital some And medical you in those groups, same will, or of if are the groups. center

the And doctors between employee and campuses. so and staff, patients there's others other need to move –

XXX gotten now. around. we are increase for of health we've bus been think, – an we've to activity. as cases, move surge hospitals for at, additional with in many in activity seeing people before, we're talked operate shuttle So, in requests Most them Obviously, because care, seeing request I a we've about staffing

more so to asking send us And staff. they're

the some meet have care in maybe activity, of staff we a seen in that to or that that reduction places needed wasn't health to So, as over redeployed busy need. the wasn't

ago. are I mentioned array conducting same think, And from of I So, now minutes Premier, a hospitals that honestly, mean the for our that specific right RFPs I point services. reason of few it's

While seeing are lot them patients hospitals a canceled in surge which a they're elective been activity, or of surge may Medicare, or rates seeing have there financially. surgeries be And Medicaid postponed. are lower in insurance. a have on either A pressure on that than lot reimbursement – private

has me poised drive model And upside might oh of somebody CEO I my is And need have time, a we hospitals their changing think, those the I activity. are to this well gosh, may pandemic. old going because what manage provide in, that's been at cost me the but business disrupted. really of is help stand, of so of costs logistics services financial in I CFOs of the have surge types and hospital going, same services. help because even my – this And model I the bring technologies providing world, my the down to more down. also those

Kevin Steinke

are to for ago I the me of there wondering And Great. to than get that. list or priorities vis-a-vis a I shifting that on anything and maybe so it color the if at six appreciate then that focus kind thing like are done was later? sooner top of goes to investments which one as going, projects the on that months what that rather to you Thanks. want or has the been back of technology last

Marc Baumann

a you're great of those know that's times, good Yes, sometimes sometimes question. it's you're and lucky. one And you

to to win one that's right going been we've no what ago, technology Insight in can of the drive X.X array which front. lucky investments for whole clients have that capabilities a differentiated are this managing these where Because And we're that about either, good on because think that Valet, both new Parking.com, investments are years valet up else for dashboards make things clients keep us that that and a, cutting-edge do. offering are we used and/or said, we I help can is us operations.

management low-friction can We transaction capabilities center no-touch – where have in processing. our and facilities. we We've monitor transaction remotely remote that processing indeed, made investments for

close now. really technology working for on of that for that's strategy XX focus been these So, past been all months the probably were – our part we've our to

I those good and indicated because are the And things to projects lot are needed the things, to news be earlier. are a now, we able those decided begin that of going those completion, of so these, as to exactly we're to some do and coming deploying right is

part technology to driving tends be other our The of out our business. cost investment around of

We transactions millions a have of a of day. transactions, lot

over We have place. all of thousands the and thousands of clients, employees thousands

And of we so speed processing. accuracy can more more can the out automate we that greater there's take faster the we things, of the steps the things do, manual and that

kind initiatives we of so drive have that underway those efficiencies And in number now. are a the And business. those of underway again, designed to are

say, few I A this. change new up all really from So, technology there is popped of point view. need to would have things of our no because no, a priorities of

– the it, always going we and the about right our laid to things it's But and pop address as in that executing new perfectly when come that think say, ago. I'd We're what's we're the I times we're so out for strategy to do making XX we business well aligned months And those, on sure we up. technology next.

Kevin Steinke

one last for just then more me, I one, a And Great. Okay. promise.

of Given point. due a that opportunistic the seeing to maybe about the folks their financial you're with to Thank be possibilities worried some of – come I challenges at about appear were that on bit structure they're to you and accelerated and this stress you. potential you be touched and worked that have competitors acquisitions, thinking we're the the you seeing? was might wondering how they if all competitors,

Marc Baumann

is I we're seeing I seeing going what's competitors on question. us that that certain dropping competitors the fact given We're ball want giving opportunity the on, never but to are think in. talented going places come mean and great are some shutting you the say people. to a That's never, in

would our some at we take to better a operations away help more this which pick do, want on, is us? there normally able there that up way any the realistically, think is we do compelling proposition and point, that grow and could are – organically I with to to that the are Or talent just in somebody value – it than to people So, that or say, can we is offer you're we now. focus

given think in sort several least these now, next to – on next at time I the that main right going focus be for uncertain we're is our that months. So, the of

Marc Riddick

Okay. color Marc. you the Great. very Thank much for all

Marc Baumann

You’re you. Thank welcome.

Operator

follow-up We with Moore CJS do a have from Securities. Daniel

Daniel Moore

of an maybe you intensity two updated to but my with, talked follow Thank you you. follow-ups – but a my just of view for just obviously, covered, the low about controlling expenses, have, Most of very begin business full OpEx capital were year?

Kris Roy

Yes.

much focused really but we're think come I more technology-related significantly ramp investments as trying start the to making to earlier technology, in and we say think kind and release with focused continuing at was I down will we're and the that today, I this we'll look make to CapEx investments. on on I of that we're CapEx. this mentioned strategically up say – Marc from be sure the in pretty on and CapEx, year, continue would that would

Daniel Moore

you the Thank Alright. Perfect. for color. again

Kris Roy

real May, at just G&A would Dan, clear to real but G&A just clarified wanted it it case from then, make quick, there, I And that run a look I just to as just in clarify – wanted that. sure to didn't I for I across million. $X rate come relates

Daniel Moore

That did. Thanks was It perfect. Kris.

Operator

any there time, to the back call further are over remarks. this Baumann closing questions. At no like now Marc to I for would turn

Marc Baumann

you Christy, of you time Thanks, in listening and very just interest Be to quarter. us Thank next you. all our you during for We'll We safe, talk very, thanks joining today times. your to us in wish company, healthy. to be all well. and unusual these and appreciate

Operator

participating. Ladies thank you for and gentlemen,

You may now disconnect.

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 10 May 202020 Q1 Earnings call transcript