SP - Earnings call transcript Q3 2020 | Central Parking Finance Trust PFD TR CV SECS

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q3 2020 SP Plus Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Kris Roy, Chief Financial Officer. you. Thank sir. ahead, go Please

Kris Roy

you, Teresa, afternoon, and good everyone. Thank

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

available and During Actual the remarks or be issued outlook the could the and website risk those or earlier Form forward-looking uncertainties by and future achievements considered strategies, SP for to and described will factors results, XXXX release which including financial the as company's regarding other of annual operations that on plans, a reports in from afternoon, XX-K, the company's statements XX-Q company's may and materially statements, impact is with those today, Form due incorporated call implied earnings management and of performance including report variety filings make on factors, COVID-XX, this SEC. quarterly performance. purposes and risks, expected on reference Plus in other of for the differ statements intentions, expressed the call to the this

internet website. In accompanying under Investor results in SP section non-GAAP Relations' of on information Management way replay investors G tables of in the of call measures other will presentation broadcast to and financial are comparable the tab discussed Plus measure non-GAAP this Regulation earnings comparable is the being believes to A the will useful note, being the non-GAAP recorded. informational the over reconciliation company's will is posted measures Reconciliations live the turn are GAAP the is be evaluate full for financial website Please will were A days the measures be today. provided addition, presented I the the to available shortly now during the be end Executive only. ongoing call. will the purposes from discuss non-GAAP financial Marc our Officer. to Plus after release. supplemental financial Baumann, GAAP of call. XX extent, for available the operations Chief on company's call SP concerning management appropriate the over call with and and the provides information an They performance. To

Marc Baumann

you, us Hey, to from takeaways third results review Kris thank There performance for to key you all four thank quarter and and third today quarter business like our that joining our discuss highlight. I'd are outlook. our

the standstill. came caused implement low First, related from QX virtual lockdowns to point when our to businesses a business travel and protocols substantially pandemic recovered of work-from-home

actions the resulted are us that to challenging these already benefited in Plus took changes will the conditions long-term. mitigate SP Second, to we business working in continue have and benefit have and structural

believe Commercial managed modes believe SP to driven showing With over and parking some up COVID-XX urban persist cities business, strong transportation than some at technology situation locations our and performance our profit of become Plus environment. is operations more one are The in for volumes Aviation business months. finally, the us mobility at a fact time. This last businesses. third our and have a mass during was of we commuter-centric today's that environment. And XX difficult have due within the for in business improvement position million a airports to is major profit and within to transit QX such scale expected uncertain are $XX.X at and pace stronger other an differentiating options higher reflected shared to pickup the marketplace. this providing new We're X,XXX attractive that year. receiving new and likely leased as a increasingly scale, are even in leadership investments end We're our locations less steadily gross Transient requests. in that role as number significant be important it's our quarter, last quickly by new And inbound locations us we report Aviation have which clients adjusted the Third, and from was reputation already has on industry of business requests to is have in of pleased what to our existing in played for the increased we which many our and gross leaders services. from And compared clients, in we recover getting well than business over several as Commercial enabling sequential of the winning as the a would of levels, times. us we are whom

difficult So operational to supporting by our time. how clients Ultimately, excellence. deliver well me their services. radar our the in opportunity performance our for scale to And employees fact, field commend during going entire this expectations dedication this clients' matters perfect and our gives staff beyond as above our does and

offices, a importance gross believe contributing new some demonstrates of factor business playbook in and Our we favorable equipment received basis. services, we EBITDA sequential clients, a current recent a businesses market to comprehensive at our what competitors COVID effort and advantage screenings, cleaning been of effective health are in and signage our enhanced facilities consumers it's staff, a extremely has portfolio demand our cost to a return difficulty of profit clients wide Early increased on for only the predictable recovery our require. developed well the emphasizing our their customers. been a quarter, as operating our safety structure. protocols and wins. array some the of and been if the protective personal more our has reopened within is overall our ability in by mix of This where limited the services deliver for playbook, our business and pandemic, distancing, successfully key In clients having in third increased optimize level to our The providing our and climate, service and social

have as and that renegotiations to technology took touch-free relevant distancing Our environment. have mitigate and congestion, support Also, place combination lower third obligations. predictability. of in social to to natural is as rent with increasingly a we've leases in contracts, fixed of tend become now been to quarters, comprised and second consumers the convert through now solutions And some and portfolio which reconfigured that expirations essentially greater and management able operating this our enable clients also well transactions fewer we visibility have leases,

XX% expense side, year-over-year. XX% G&A sequentially On the adjusted and our decreased

appropriately as and leading model, process that key flow. industry for enabled differentiator digital temporary that and ultimately certain were the onset we we difficult Through to able March We Some believe reservation clear we Sphere improvement and to expenses. pandemic. improve, driver additional nature, But further initiatives. of remained factors which will our in contactless the resume which reduction our measures. our reduced slowdown our decisions, workforce costs from In and us consistent. are to after as believe face Also, quarter, cash marketplace sizable reductions effective achieve see offerings, include Xst. demand reductions to the performance our that have us transformation aligned in in COVID-XX during pandemic base our a conditions dramatically, the invest of been there cost and to We costs safety commitment our but rapid free October salary positive is be to cost the I of to adjust see in the we it long-term all are reduce reinstated including of in to technology payment that business business of with scale is we contributed and definitely What has increased major the of potential permanent flexibility a were structure related business is growth. a that our third scale in continue continue the quickly pursue has our this, expect business our made the of for options our April. Technology we

end, more have solution by gateless parking is to we on other operator. any our believe on-demand expect We XXX than which more year locations than significantly

in new success solutions Our to business. technology winning contributing are our

offerings to airport new touchless this where was in stronger our contracts than winning key Specifically, business activity recent were technology several year, memory.

some during were maintain this previously service able brought quarter, XX on perhaps levels competitors, not to managed by business under the smaller by side, locations pandemic. who which On third new the pivot we were to Commercial conditions added the of challenging

reduction see this As who you With certain impairment for unique Bags' hospitality business saw our that of we took and Kris believe we in service matter. long-term back large where in important we in reduced to will and Roy, Aviation financial intangibles Aviation concerns. offerings, activity and a CFO, COVID-XX business We're unique service using the our provide and business. clients third earnings potential in That our being third by value business to that and has I'll the restrictions the a increasingly our release, Bags' around the proposition a with of charges clients turn result due discussions quarter as quarter. become technology the have post-pandemic in and continue service distancing travel experienced said, This existing social was our and goodwill specifically to driver. congestion review world call offerings in

Kris Roy

Thank Marc. you,

to full As to non-GAAP adjusted after Please reconciliation their today always, issued a the I refer market for to GAAP release all our measures. earnings nearest our will measures talk financials. close of

million better we profit non-cash reported line and we million year-over-year challenging also in gross and in lease well $XX.X we business excluding $XXX,XXX non-cash early well This from COVID-XX. excluded as Please $X.X restructuring, began for reflects is reflects in improving was contracts. a to Sequentially impairment to states million those was lease in well financial judge mentioned. XX%, gross $XX.X partially environment. adjusted G&A at Adjusted adjusting reduced a Sequentially, termination ago activity terminations results reopen. for due with in closely in activity of to as fee employees the quarter, lease base which sequential costs. will levels third quarter increased $XXX,XXX basis, business the For the compared compensation million look are return due April, G&A have way by related pandemic related $X.X to million in expectations profit think as On and communities that gross $XX.X contract charge, and $XX.X in XX% termination some spending overall to management in light our year enacted quarter note the salaries fee, to to early as contracts, down affected as to as XXXX year's which conversions expectation, how lease to a result a forward, overall benefited going reduction mainly quarter, pay our third reductions contract to manage adjusted addition reinstated charge. impairment by certain we our expenses this profit as the to comparison This Aviation offset number an of from costs, XXXX efforts as pre-pandemic largely million adjusted to by third our lower costs, the Marc million. decreased discretionary restructuring and as G&A as $X.X a

management and related excludes to earnings although declines, that we non-cash to eliminated, a we permanently was reported of million as stage versus $X.XX unprofitable. current profitability on expiration, from came adjusted as our quarter very However, leases were quarter ago $XX.X cost other company to the million million free share and expense which from flow. restructuring year-over-year us of we return our a we costs, the free of impairment cash business were result acquisition. same business significant we from XXXX. flow efforts, report $XXX.X were period. operations quarter Adjusted per as from Adjusted $XX.X of benefited the third year-to-date $X.XX a the in the operations in million well portion lower to earnings year their of The XXXX. with compared cost the charge. $XX.X for our are in Bags $XX.X setting an sequentially. of an million pleased many natural period Aviation cash the generated cash are basis. overall are environment, Again, the we to for And basis operate several pleased our Year-to-date, this factors, to G&A impairments to primarily compared third million cash Among that positive in contractual net Considering $X.X

how to Now, is I our of share the respect like to would with some shaping quarter fourth thinking up.

gross see quarter, profit We expect contract trends benefit to from the compared year's fee. $X.X improving to excluding business incremental termination third million the early of this

results. quarter rent unlikely quarter. gross fourth Therefore, will some our quarter reduce to of further the Additionally, expiration potential likely abatements profit fourth exceed in is third the

implemented our senior that number With into reinstatement approximately for at Based generate over the credit in we $X.X under reasons, year comments. call we the And of had to sequentially higher continue have COVID-XX ample the base the this XXXX, our to visibility, and back have the we the cash current some October, to were remain this positive end million flow for salary uncertain $XXX for a flexibility year, costs G&A manage including of to free in fourth onset quarter and the at facility. crisis. reductions on these turn closing we confident Marc remainder of financial earlier addition, will times. through that, I'll expect million In of that capacity of and finally, of

Marc Baumann

Hey, thanks, Kris.

emerged you business company. this every can a questions. line profitable which from over continue for to of to Teresa, thrive and reporting look size, business additional business, scale the while expect hard in And forward move our from of have we clients. us. we day our we advantages believe the We've last next And shown value While adding we think and times, as see We we're manage open worst we well behind through we have to are and months leaner that nimble few progress and here. challenging are grow can to to stronger the forward few our continued numbers, business years. our for beyond. let's and win technology, the our our positioned XXXX as in work been months to Adding

Operator

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

Daniel Moore

Marc, Thanks Kris, taking for good afternoon. questions.

Marc Baumann

Yep. Hello.

Daniel Moore

how, helpful. it's cadence talk about gross appreciate a just and any helpful. revenue profit, of kind on October gross the sequential And really sense those September through are the profit extremely the into know, August, into cadence recovered QX, you July, basis, visibility The incremental Maybe how periods? for more of of

Marc Baumann

the that I that one the what is Well, subsequent was than been news before. anticipated think month, essentially better that, and low the be saw would good Yep. and month, we every has April

early the it into we recovery And there's as the we've was nice, gotten a October, months. through of press. spike seeing COVID, obviously, as see steady those So been same, we're in in slow, a more reported

the to least at seeing we know that that we're whether today, pattern to October observed. information you change we've have we don't going a strong know, so that And relative But is based on September.

Daniel Moore

of that EBITDA of of come $XX think non-recurring sort a I basis, you to great and profit just I there range. million out it? higher Are helpful. rate QX an of have adjusted take a know, items? if we'll the rate is on for level run out gross other on $XX million run on baseline, a back with, $X.X that a Extremely fees want adjust set, you the it. likely the any as a G&A and job did right we Is But way million the termination

Kris Roy

how what able track takes the terms in there thinking kind terms there, of I expectations QX. to think in in been kind and of terms puts of about we've the for of the you're Dan, on give you of, you're know, you right

I we going it's of had in to think continue with as we're what mentioned, QX. we kind unlikely

and fee from of terms the about kind way think the way in So about right thinking I perspective termination is add it. backing out of EBITDA an G&A additional to it think you're back the

Daniel Moore

operating we about then, the the for and, cetera. think COVID, how gross economy and start improves, every much how we've et somewhere that you emerges recovers, adjust world know, leverage revised generate, we travel a In seasonality, et around Very so profit do know, recovers, other And helpful. And that it profit, as incremental gross is you you if to here? dollar EBITDA base expect from for do we of restructuring think, activities, and words, portfolio you how got cetera? from incremental net-net the would know,

Marc Baumann

that You we know, XXXX, cost permanently that, profit operating is did and we probably you some it generate know, can our the cost brought compensation, incremental thing XXXX. we've because brought gross from growth is we've like, I and know, down, to what going in than year you in But temporary, leverage down ways talked don't base certainty ways we going look visibility and the this gross are say also with into think our more like. the about XXXX base in have cuts, some so profit is curve enough to

sort grows, of too to what But to very, going need good premature costs, we're DNA back. carefully gross do And for precise we're as that to about judiciously. very it's to us G&A so going since profit at require, bring think might know, controlling we're get clearly some you I and

Daniel Moore

Last for by on-demand locations and hand helpful. Very XXX you're pace on I'll over, me, end. for year gateless it but

do You overall beyond? else if And revenue gross profit and of a differential see Just the revenue gross Thanks. get trying as facility, an that all sense gateless we going 'XX know, for equal? what's attended facility where and a percentage of versus to differential? and/or differential profit the portfolio there's a in

Marc Baumann

take glad Yeah, that to on.

and It save, going do more know, need have costs, facilitates have capture activity they you to so someone pay your had to have labor of You lots draw, know, you're not And to from places is what to capability is and be potentially the unattended talking And better are places and like got and to amount going to station, to that already because reduces need still gates other that. you parkers there you is station it. able doing know, of enforcement technology a transaction a before. deployed of don't course, I processing options, some efficiency a have payment But be gateless pay in what don't an to who environment it's efficient do means a do about to places. I used to primarily technology to pay. send what tend huge to more prefer somebody now. be lots mostly don't that to you what and think you to think there certainly go for surface our this people you'll go going have go we're you their other that to does, we you much and use in pay device easier may But to

you so I in imagine, meaningful reduction locations first that costs. or of XXX part locations. in on of right we're on staff a able a do gated do And that And know, really year Commerce know, what that technology have, a more drive the individually yet, about those there a of the really facilities more update, of gated or like. equipment and that's haven't next go that half deploying of where to by lot you you enforcement want year, at you is do offers other there and of other The now opportunity efficient access will we're solution, hand while become number reconciliations solution, facilities. do don't would give have facilities. we the operate to for out we'll to deploying gated talking solution control someone end. And type full Sphere during things you to you around we deploy And little is start expect where to And to to to operation send it preponderance parking just the have our the know, that the parks' on be of and the and on put is you

locations, they monitor and our Remote that leases facility. meaningful benefit, our clients, cost nurse management if management Now, we where benefits the those that if remotely reduction that it it we Sphere we particularly, combine in at at with if deploy to deploy can

or know, level could the facility. maybe You go different level traditional compared to staffing you a staffing much to parking no

Daniel Moore

Very helpful, perfect.

again. color the for you thank Okay,

Marc Baumann

Yep.

Operator

of William with question Mulrooney And the from comes your Tim line Blair. next

Marc Baumann

Hey, Tim.

Kris Roy

Hey, Tim.

Tim Mulrooney

guys Hey, Marc. Kris. How Hey, doing? are you

Marc Baumann

well. Doling well. Doing

Tim Mulrooney

questions few for a just Yeah me.

much you activity savings first, of And reductions can kind consider temporary we more annualized about reduction little to to your business until you of move cost be, bit more of in the guess, much would the So quarter? $XX comes talk SG&A would million I structural think as would as how being How a in consider what you back? into XXXX? be we cost

Kris Roy

Tim, were I overall structure, you the as think kind of little temporary we of of kind at it's probably look those of certainly a for saw bit some cost what in difficult, terms QX.

mentioned on we the know, You call. as

of QX is look I and this of through of lot into think kind we we as XXXX. to kind on think move like early a really curve the going depends what

on in depending think to curve into we'll G&A. terms how necessary investments I that business additional the have is, the of make

know, as lot our I mentioned, think think certainly, permanent. Now this to be is G&A I we overall a look going at of structure, you we

are there XXXX, opportunities kind driving cost. our some in terms but think about QX of additional of and think I go we as we of as some down and through kind initiatives additional

as to nature. we it's to kind percentage I kind what permanent the think look Because can we change say, think I in that business, of invest the time. think need and challenging I over of business, this is at in

Tim Mulrooney

I'll Okay, all leave there. right. Thanks, Kris. that

is location remaining quarter? another Do a the have? in XX you the might contract location feel maybe second fourth the to pretty more your fluid XX maybe count to lease well third leased locations, about this Or positioned facility I expect reduced close quarter. down location you that in quarter, step the with counts, by Moving and think you've still situation? you're And we now, that that in in

Marc Baumann

we sets there opposite of changes going have two in think directions. I Well,

but now, least you know, management XX second we we quarter. in in You we at new added know, quarter. the locations the exact the added can't as And I remember XX talk, number

management locations. those leases, those conversions adding we're aren't from new are locations, So

time, to for expiration contract growth you or and in their in conditions growth course come So the than and leases of those at have we our in more of new portfolio we looking terms We're probably the locations renegotiate change talked in have same continues. we're we've whether enable that the as at rent. terms quarter, up or getting leases quite recent last times. they that a us management to bit in normal terms either and But

know, to all that a those lease reduce terms of enabled things. certainly our we're on has You trigger commitments. have And COVID doing those provided some us

And so that's happened.

know that generate next their follow We activity I leases makes leases we're us year. renewing doing going go. think say that good is terms terms XX so can we by And that expire at can the thing disciplines don't those them have only to that our on another, only sure you profit and I renew that we'll for of then sense have. to we the business can't, level of if let And for

a could our continued in decline you So lease count. see

think that I year-to-date, down year the where may you know, end, we're in for we XX% goes many at risk us, know, to generating are of leases that justify know, about well enough But, sort down I not those have? leases our from think commitments. for how about You were go you further. it's do profit with It's their we us leases whether

Tim Mulrooney

and absolutely sense. that Yeah, makes

gain made times. know, are market share, tough seen everyone yours a certain their in with sheet, way company a where want trying the I I'm management touch like bankruptcy your obviously, comment the had if to a this in some struggling. through recently, year. about second guess, opportunities is and figure just the wondering some new just industry to Marc, on competitors that larger regions I because we've seeing these industry parking You is But balance ago, you to announcements the wins you've And of

Marc Baumann

look look is that's know, taken look of like, two the the than years, new away I in think think have just of past they but being of They think the I group probably details they we've know couple somebody more any we down in from And we a sign definitely clients mean, us, in to the the what safety. our that if at migrating also quarters all say know, sheet, You couple our at, you you look are, know, strong were I won? you case. else. last to that, if they're you commercial quarters I one added run some at let's balance effect are locations your and, when able what our our facility where I and out. And a the today of them our manage operating is saw and under by company note to capabilities, data and we take how know, working with where But prospective do from one very umbrella you is can actually Remote focuses get just technology parking. being guys, that with our we with costs possibility - we are us. served about our of the to on analytics contactless of at can client technology and payments it's Sphere a out still Sphere Sphere the excited client IQ competitors. that's remotely they explain viewing

investments the potentially able really retain to technology think we're struggle some made the competitors in is a clients going that smaller so haven't going drive make think, future. the in that where I to technology I are And to of to world

Tim Mulrooney

that. like I

that parking management company, You're not company a does tech you're a parking.

or more just So for maybe two me. one

many they managed contracts, versus your of reimbursement? structured for share could the how to fixed was understanding helpful fee be I various even of I what different or versus in you roughly would respond revenue ways. hoping share can this contracts directionally quarters might know So in be know your coming investors And managed scenarios? your macroeconomic in percent the are I business management So think you really

Marc Baumann

all you much. needle to think moves don't that although can know, You help try I that we

of isn't that are fixed something the shows an to said we've that example a fee, some roughly portfolio do. time what our you know, but dynamics of give half for fixed management of You contract we're it able just I'll fee. But

been kept contracts costs is that of a and So drop hotel, a are is rev the also typically hospitality imagine, of which the us share the has within that as as given there's cover and percentage operating a collected percentage in a the the our to of drop profit. revenue industry deals, a to you a parking is by the And make travel, by Well, the for suffered can to bit hotel. hospitality revenue. industry, in us means

happens And April a these revenue, we management know, unprofitable contracts. so can. when some contracts us, become much we to that and drop we May, see immediately in But big back in and as and March in, you though of now expenses they're our even down as scale

work and it, you so your can need to further we're immediately you cut we that's alternatively go to us back we we the percentage that's to to going tradeoff guests. affect that the make, happy to how clients revenue to our our And you'd service on and And money. enable have a to us or to we levels with and between to do make costs like if and share adjust say,

so spent portfolio strong in September summer entire clients we very, a result. that as we and hospitality our of the had And doing very a

I carrying The and down now other you're prior they of in is and that, well at are the of times you October know it's stays sort September, in actual level. occupancy, XX% Whereas, capacity. in XX% to normal think on year you be thing XX% that's places room overnight of helping know, many seeing might

or at be car car. are time people the of people or more is bringing people to of where they're more bringing the sometimes and XX% so You the even know, periods, are a XX% we're Tim, seeing time driving XX% and a going normal maybe half

that you taking are room being an the place is more that's cars handled. that of there's stays mitigator know, important so sort of And downward,

of many And down actually and And much. compared pre-COVID cars our not that that all hotels times. of were overnight to were parking the number so

Tim Mulrooney

that's great So a Marc. example,

the back at to What when they're starts staying drive? hotel, hotel people continuing everyone to but but often. the going fewer all driving a the more to that's So happens hotel,

Marc Baumann

Well, park to problem have a would nice have, more that'd be we'll be to it great, even cars.

to So, clients look, don't you seeing our do what know, more and and feel them we I have a and know technology you well our to efficiently, see people hotels, and all and think that the as our us. those are trying We going in, to valet more our hotel that to are for. deliveries because as think, know, in increases of they flexible I bring hotel service with generates looking all driving we operations. traveling We're to it's XXXX dashboards arrangement that work and the levels. comfortable latest when But manage both clients, source revenue a try And to pleased we everything at more everybody's of of to volume. else with the benefits reopening they're

Tim Mulrooney

me. Yeah, the give And on quarter? for apologize, because I rate jumped Last late, but your for you all one did retention right. I

Marc Baumann

We didn't.

think was XX%. I probably if we're serves, know, it I memory think XX% You and or my

of but still So environment down this. we're some on from bit course, locations strong in quarter, leased looking a like includes, maybe that very close that work to last that. you an of And our little and know, actively,

Tim Mulrooney

you, your thank much very for you Got time.

Marc Baumann

All Thanks. right, Tim.

Kris Roy

Thanks, Tim.

Operator

[Operator with from Steinke Kevin Instructions] Barrington comes Your Research. next question

Kevin Steinke

afternoon. good Hey,

Marc Baumann

Kevin. afternoon, Good

Kris Roy

Hi, Kevin.

Kevin Steinke

verticals you it that the So was you? calls talked know, the Board? existing there in about or potential from you market. any trend industry clients are in if I wondering kind clients strong in is inbound again higher Or of your prospective the the that the customers, of, are position coming across just terms to given and are in noticeable was

Marc Baumann

people people are fans other and There's there definitely be there's and lot at people may a inbound staff of on there of know, though are sporting planning a space, place. of are events there from lot healthcare or for you university or be course, coming And you know, there And active, even not a reduced universities. are, obviously, to verticals activities. where calls students and fans moving, these taking be they're basis, needs hospitals, back may at because logistics

or concerns covers COVID it's no building a those client those address have, any now. a is safe verticals. I playbook that I How enables reassure a touchless an transactions technology that prepared with early trying in figure my the safely whether how what do be? reopen? I to really right in know, might of needs that comes mixed-use developed our out, of the that have frankly, perfect These customers has are is playbook what to know, about everybody on, And everybody quite lot you my calls or along office to it's we remarks, you? all this you and contact getting talked place do And property, But combination that back good we're protocols. So that a to

of parking know, the see ability out to vertical is And strong, about relates but somebody other a garages it's And and about you from They I struggling necessarily reaching regional and so I say, getting And us sort in pay protocols. bit, concerned may marketplace, a it lot having competitor well, is have freestanding are clients across strong inbound balance do you would are as the think care. know, those concerned interests we're rent. not very where where a it of to properties. health we or little also the elite client their sheet a clients COVID of to some

Kevin Steinke

interesting. I potentially that penetrate could guess. in ability those been lead That's to institutional sort markets acceleration this of mean, perhaps some you've I targeting, to your

Marc Baumann

talked but hoping I'm about That's so continued the the government for of part, with is one have know, that, that processes. know, other on talking sphere, and, what you haven't today, their about most you course, things somewhat airports we're we they interesting find normal now, I in

contracts. So there's going processes the bid renewal if opportunity to new on. are up us on that's for renewal, given contracts And

that staff on additional that and we retain extension year, also in our an of now far, the we're at that the of a was renewals clients. this Fort I start we've have so were ago, thing or move a an and this Myers, driving just that other providing Miami deals which will either airports buses and be Salt had major new to that airfield, driving there, as growth X shuttle we our think We're up up. also any are contract really started the airport year airport this deals later side to years, going year-to-date opportunity contract we several City have new before of janitorial that see for airports XX able And around airfield the something have parking that on starting new either to started to we have weeks it. is and is are started passengers couple than Lake And services rebid at we're of year, year, or can more going terms airside talk year added at was to

Kevin Steinke

trend kind yet? materialized too. you or seeing I know, mean on so up? renewals really has these that an coming not pricing? Well structure Or that's are any up? meaningful as these Are of when of interesting Or opportunities fee you are coming pushback

Marc Baumann

because sort process, Airport is people a about there's contracting of the transparency the space, public a in qualified always are Well, of fierce competition incumbents there's between a and government bidders who lot deal.

those what the because you part potential COVID, deals the a can not come happen. up on that's just feature, to of you no. And is So side, Commercial know, new and call retrade renewal it. they know, can we for the that's that you answer But parcel of when have

just fees out, can your revenue as facilities, So And I playbook a what our that costs what we've in think talked there's I small a a about, working concern of come parking? COVID prepared or you can are whether percentage I to that before, the they're because and they're on bigger deploy? clients how handled. the our focus, technology you where safe do know, are use what public you the have my main is, is, talked ensure operation and drive

new been hearing and solutions when compelling that. could that's asked you know, decisive up other the for we to of reduce not time COVID the the And efficiency Sphere technologies for with operation, operation than, know, enable well, your one So technology or seeing you you a you? keep in like is it's the again, of we won little more two really you cost deal. fees? what has on you can like, argument, And both? or have or that's come time So the that most capabilities no, sort client, playbook Remote your as But we know, Sphere that we're either technology and clients. And a that, feedback things it that matters

Kevin Steinke

to on place existing you space and relationships, about in their that's Okay, ability guess, you? just drive healthcare already for account national growth progress terms great. ones I have location in What commercial the the the space, of in any

Marc Baumann

way and And, now, are and know, other I important us, social out we've to sending you out national links places out, media. our that think follow know, we're talk expanded you - this about continues see are social on rely capabilities rolling becomes other that very rather our Sphere and to capabilities. of on you'll to some than sending LinkedIn to that And it clients And our one of just things on focus, some be we're LinkedIn an Kevin. easy account been them. a on be media and those

that they about can a and data is think look which over the IQ, into have. Sphere all So their since XX operations to give because have, all technology for individual days see can locations they our can The analytics up on past with more our dashboard package. national or existing main I focus of it's roll the of these visibility more analysis the by us, they And locations they Sphere, is of more course, our we rolling safe out properties. their say talk enhance we our the do what to really clients, to launched capabilities,

look array tools delivering positioned I well momentum a we And And we we there's we're think all And everybody's along runs right so And for it again, of just, track, forward. making I the our effectively them? potential communicating national as you capabilities? at I base? is, of are once but but some they know, those Are control for and existing you account that national building. thing what can think decide, decision to have not we account, process, effective know, do I

Kevin Steinke

or that in out, Okay, quarter side know, are the I see yeah Or for stalled level? seeing of into as a you Has a you progressed kind did on of terms guess improvement lower October? Aviation the kind at great. just, lastly you know, recovery? me what you of any just

Marc Baumann

I well travel Yeah, improvements we're think in volumes. seeing modest

over went If just which at third, were million And now, April, data puts XX% X maybe a passengers out, TSA XXXX. that is XX%. you maybe passengers the in screened the know, know, look down the down down from XX% you screened you day, it's to back

still XX% of it's below So pre-COVID.

beginning So started airport travel seeing of to our embark we're facility our airport that, major already or are continues embarking come experiencing back, have clients to many programs. as upgrade either clients on

to put kind be going really needs from passengers so check-in about our of We're far is of on. concerned, people a multi-year shoots lobby having our services remote And are enable the may a move for buses around COVID on lot outside the know, airline some check-in either with or terms to portfolio think to to as of in see activity. use shuttle plans are discussions Because, construction Bags stop those. or And business there green starting to we're forward as they're that. you didn't going I and that, Bags these

lines. You no know, sale cruise government the has the order on lifted

so I do sometime that expecting are so. to in sailing are be think And XXXX to companies plans making cruise and

there. the of handling So we're and having conversations them check-in baggage about restarting some with activities remote

airline move our a are services to We're because wheelchair skycap again, like. or in with the and volumes think uptick I up starting clients once seeing restarting an either bit.

what can I But be with think like. track to of you that that the along a the That's level sort that at know. don't going it's I number So say whether recovery like? screened. to tracks what curve passengers of curve looks looks going being

Kevin Steinke

here. thanks nice results and rebound and congratulations on the Okay,

Marc Baumann

lot, Kevin. a Thanks

Kris Roy

you. Thank

Marc Baumann

Appreciate it.

Operator

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

Marc Riddick

Hi, good evening.

Marc Baumann

evening, Marc. Hey. Good

Kris Roy

Marc. Hi,

Marc Riddick

bit of So was technology an there it. sort programs detail really what - quite been we're and on give if you've has I preferred the a their and offerings? the maybe progress I on around around wondered covered and wondering appreciate all the and you update pacing how commentary vendor color

Marc Baumann

mean, we're especially a as that, think seeing it healthcare, to of activity. Yeah, relates lot I I

be that's can I level minutes our indicated you now. other on I'm don't And a the know, have of discussions of encouraged I interests by my very, have can But they we number the the I for sure than these of very a to that busier the together responses so we're probably know, we're lot vertical But, number right you ever new getting making taken services. as probably healthcare you know, partners, few organizations putting rattle healthcare think place, into a an us from been any type off you is than proposals. we're decision-making for where, terms activity for of of of top process and the of you. long, in proposals that purchasing of group that back steer incentive So just, know, list the wins I for space, requests have know, to healthcare you their if look need we're of more at the ago, have a head they

Marc Riddick

one what the major activity - then forward smaller York, know, thing. traffic And was I you there far New not to of as was markets, for cities of that going and last as you great. look And a years ago? experiencing as maybe know, what that it Okay, curious me, mix Thanks. what maybe whether versus was you're of couple of sort differentiation kind of or and what much versus, of a Chicago, like in might business particularly between

Marc Baumann

once portfolio, Sure. probably the where all leases have know, which, again, I major more mean, our lease Yeah. visibility you we in have on I markets.

know, know, is the for is So negative revenue markets range quarter, the up on And, some plus us - seen quarter, numbers growth from, our increases in gives to quarter it just a very we in idea, give barometer have markets. on. that over you to of leases. lease on XX% second an in the what XXX% a location portfolio, bit other a big in what's of lease third revenue you know, you But ranges same going positive leases amount same the you

there's variation around you So, the definitely, know, country. know, you wide

tend markets are leases have the we up. Fortunately, where more to be

And you mobility now know, shared work that the many drive. attribute coming beneficial. very places early they're birds, we, we were in above to And been seen year. the York, actually that's either coming example, in choosing and in prior in fact past, and so some on the morning, in New are And for people we've to into volumes know, people transit, you the that, many, that or mass

also strong. some for other because both and markets, in opportunities parking In for transient So demand way. the increases, monthly there's is that it's other parking, rate markets,

softness And so bit there's of on. going a

depend relative continue across to But be indicated rebound upward as know, few plays definite are we're on good we'll we're other here. nice COVID the October look that. think in September, was revenue, to way. we at It major a in that a the the I leased locations whether at So call, But, month-to-month going a know, will how might most earlier whatever to continues, expect itself, out lot pretty where rate hoping third in of you you markets. to see there quarter, seeing the it's that trajectory, see there maintain improvement I

Marc Riddick

That's you much excellent very for Thank to the hear. color.

Marc Baumann

right, All Marc. you. Thank

Kris Roy

Thanks, Marc.

Operator

from a you Moore have CJS follow-up Daniel And question Securities. with

Daniel Moore

Thank you.

that combination Just a technical was Bags' other one impairment, or two. of entirely or assets? The Bags and aviation

Kris Roy

at because you look Bags' kind know, of to Bags' you that Bags acquisition. our think, of collectively what's we but I out and kind that certainly, Dan break business was business, latest as it's look not I hard at exactly think,

certainly goodwill of went large that there's And there. so into a amount

from of our some as just certainly air general, out that's as see market happened I the start look you we the shift segment kind to it to that think puts travel, business. some as shift that at relates travel, to particular around of that kind a and and perspective, travel of the in of pressure start leisure

Daniel Moore

early million, lease the the termination, And $X.X that early termination benefit? quarter benefit was cash Perfect. in

Kris Roy

I'd have all a that was less here that cash, no, then in wouldn't quarter. of received And we'll was than half of bit about say during the have would - little fourth that that quarter. I probably little of cash through not a come been the

Daniel Moore

full amount received wasn't think that all benefit. in way Is is it Right, to right But but about it? QX? a the cash the

Kris Roy

to it. about That's think the right way

Daniel Moore

you right, Thank helpful. All again. very

Marc Baumann

Dan. Thanks,

Kris Roy

Thanks, Dan.

Operator

call turn I will there And the now back are no further to questions. Baumann. Marc

Marc Baumann

we talk Teresa. And look to thank And business speaking us you our for Be taking today. and forward really you hear time. with the next about to the time you well. us We quarter. all thanks, Hey, joining appreciate

Operator

that today's for call. participating. conference Ladies you concludes Thank and gentlemen,

disconnect. now may You

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 8 Nov 202020 Q3 Earnings call transcript