SP - Earnings call transcript Q3 2021 | Central Parking Finance Trust PFD TR CV SECS

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Operator

Good day and thank you for standing by. Welcome to the SP Plus Corporation Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today Kristopher Roy, Chief Financial Officer. ahead. go Please

Kris Roy

and Victor, everyone. Thank good you, afternoon,

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

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

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

Marc Baumann

you, report on Plus' strong Thank We're to quarter afternoon, third results. good Kris, and pleased everybody. SP

driving and Our reopening performance occupancy the our recovery travel the to track continues to all mass specifically led demand personal and their rideshare transit in options our uplift from services. a for broad-based economy, versus business ongoing cost of for conditions progressive benefits and structure, in vehicles the preferences have hotel and consumer air streamlined improving

profit which as gross comparable strong parking overall well was given see what air as quarter the adjusted travel basis. growth XXXX it net was reduced was is pre-pandemic. our two third XX% time with a up quarter on reached that at activity of in showing, EBITDA, cost adjusted for XX% of we benefited costs adjusted hotel levels. years quarter substantial the what remain Results at this ago lower Third sequential XXXX, structure, which occupancy same XX% rates quarter than it in our a as and locations, below G&A from The result

the the value believe to we is sustainable, model, technology As much reposition onset our for see currently technology success we a been grow as competitors to increase, track able is is invest continue have line we while providing top recovery continues G&A new up We maintaining service will in and improved all proven locations and we the in in not record third our XX offering to of solutions. strengthen ability to the believe Plus' position work expectations. of we proposition leverage this SP segment, start and up and our new been Commercial increase, the growth. clients, to of of gains restructuring long-term well-positioned our Plus that believe costs servicing offerings, can portfolio, new believe Sphere some demand to Commercial of and leases profit. our win our has an that SP an contracts services to and for leadership both our exiting began or our technology reducing reduction expect locations we certain and that business future initiatives From Aviation the during unprofitable function quarter. gross for pandemic, share for organization innovative underway. expect superior continuing With our our quickly, industry-leading performed segments. our support you points that cost to we've to to G&A In we And but The

And stability Given the our now owners that at have given October, Toledo spaces. than in under University versus XX as not and commenced included clients its Plus referenced. operations private are see that how public locations in We're of day-to-day particularly provider the just we to may innovations, new I have during past. that is these we lots parking we helped the competitors with the management, to the XX,XXX operations of for navigate service SP choice more surface PX award-winning commenced in clarify, financial locations considered recently together other pandemic customer partnership and pleased our just they XX believe us for who responsible ParkUToledo. our have maintenance representing

XX% for September higher be Complimenting in the in business new was growth we PX, particularly approximately robust success education. ended retention Commercial believe XXXX. segment, location also for strong public at the will With of enthusiasm there XX months renewed partnerships, private the this XXth,

its continues of Our and Commercial segment recover wins. share new to see nicely

were cars the offerings and venue commercial that profit for locations people healthcare labor as that also the return vertical return our While recovery or a recognize and as of solve all Gross generating bottom levels. win-win slow, purchased for or wins of levels and has inflation near gross products. our time staffing locations of their office challenges the a can tightening returned recovered offer direct Plus, large reduce enhanced some on seen resulting wage solutions, have to, investment during pre-pandemic We market around. have clients clients the even result needs solutions technology we've our been residential at profit a of in to the technology technology from has boosting line first pre-pandemic exceed at SP and more as a or attractive healthy Many pandemic. new new can

Aviation. been recovery at suggesting running to potential. XX% passenger XX% have TSA of XXXX Turning screenings about Since levels, July to significant additional

multiple services parking wins, XX Our existing continues and valet enhanced also Xst where including market We've and by Francisco we recent International at our & the at parking our at spaces further parking operations Reagan and County been shuttle and Dulles International started National grow XX,XXX buses. expand to we've out expect service year-end. in Sonoma Airport operation contract Sphere's both launched position to service which Curbside provide Airports, Last XX October new has Airport, for added shuttle May, allow Curbside to cover and Bags airline client already Curbside locations management to San parking which Concierge and program, by Concierge combines services. quarter, spoke passengers fee. XX another about point-of-sale us one service airlines Since rolled to mobile this airports system we on with check-in and we offering our us from other

all customer's and we experiences, reducing congestion other in airlines, discussions airport with Additionally, terminal and in several their reducing given the improving operating costs. interest their while

installation, XXX end, that to up facilities running XXX year. rapidly And by goal our least to operating and now continue on-demand we by We deploy XXX closing XXX have technology fully and and just is installed the to the will our either we gateway of or of we currently expect end in Deployment at on-demand our and offerings. year-end. solution with our locations gated that is up solution have ramp starting locations pending have

Parking.com result QX. as group QX that of of of over products point-of-sale was Innovative SP solutions. that industry was a gated which third Organization is honored its brand operators counts XXX% and The a members. these in solutions, this I be quarter as in strength quarter well over the to our function Sphere of even recognized on their to XX% a up the and is increased Year Parking technology recognition other numerous of leading up pleased Association, deployment transaction Plus the reservation mobility of This was sophistication parking growth large The and on providers mobile note by and a the XXXX National of as activity, greater the third gateway part of award solution year. As transactions platforms, as technology

to also that previously offerings as new win business. to existing ability invest our incremental at as new reduce in our had strengthening well costs, position provider. the forefront services were Sphere and earned and to that for outside us for fees clients, transaction incremental SP to technology addition In We'll an continue business by they Plus enables being capture

costs Lastly, to gross we $XXX our XXXX at we million. end expect our of the at to million high guidance of $XX And in $XXX of G&A end to to million be full million of expect year profit the lower range. the $XX be our range

pleased the we'll further fully service Kris to as continue $XX XXXX, uplifting million, to outsourcing in few ranges of clients behind a pandemic up to cash to forward more our operating We're recovery growth by flow overall call to looking ramping quarter. and very and a in cash XXXX. in new business our levels now and we with hopefully performance turn us the date us, opportunities. And addition, financial we're the free review see minutes. more In flow to Kris guidance and over capture I'm which our discuss for going put we're

Kris Roy

business and you and Thank adjusted based will forward expectations on remarks you also you, going My third that XXXX Marc on just with update a shared the results, Marc. today trends developments quarter ago. our moment cover

you measures afternoon. results our earnings and the release reconciliation For who our are can listening GAAP to measures GAAP non-GAAP time, of a earlier call full those in our find for this issued to first all

of quarter X% year-over-year. adjusted profit to improved XXXX $XX.X gross million, and a year-over-year and Third sequentially XX% a sequentially increase increased

increase million started year XX% overall aviation XXXX performance improving third ago the benefit a base to in but termination G&A reasons, of $XX.X expenses business mainly million were included that to the the an Just quarter. quarter third Adjusted compared fee Marc recover, the for our a that to the of $XX.X were we restored This at spoke that. a $X.X onset year-over-year was and XXXX salaries number once due the the certain reduced definitely from business reminder crisis. our related conditions, reflects million quarter about to of contracts. COVID-XX early number

was which we quarter XXXX, is it compensation, long-term normalized XX% compare to year’s more and this to not a levels. performance-based If those of third XXXX, G&A factor the addition pre-pandemic In below levels. in back third is quarter adjusted

portion these increase sustainable, activity. While our expect we cost of growing as invest believe savings large will a and we business support G&A we that in are do

very third from XXXX, to are from and year-to-date and million. $XX operations cash free report was $X.X months free we flow year the compared and nine pleased $X.X the in flow. a million million cash $XX.X flow company third million $XX.X free quarter to In XXXX generated strong flow operating ago. of of Additionally, million cash and operations and respectively first quarter cash cash cash million was $XX.X

taxes of payment Act. that $XX.X the This million for the quarter's were payroll deferred of XXXX CARES as cash reflect part flows

million million. to both financial As million XXXX Free compared is guidance based at operating now flow now the or million, contemplated in cash cash of be XX% ranges $XX we representing midpoint $XX going million be fourth $XX $XX to a uplifting XX% to the flow which at our date levels $XX increase XXXX performance year expectation is refund on quarter above in range midpoint. are levels. XXXX $XX be forecast cash to our Embedded To tax the is to Marc exact, flow full trends we to for cash expected our for and of by was that the and of measures we guidance. flow majority business collect million already expected our year original XXXX. The outlook stated, our in a forward, income the of will the in operating full provided range free when

truly the now is With ready. we So conditions the our increase turn of that, in expectations session. flow business I'll cash the a operator begin back call are the over function to Q&A improving. Operator, to

Operator

Mulrooney Tim first the line Our come Instructions] [Operator question you. from William Blair. from of Thank will

You may begin.

Tim Mulrooney

Marc, Kris, good afternoon.

Marc Baumann

Hi, Tim.

Kris Roy

Tim. Hey,

Tim Mulrooney

flattish first to your would be of quarter little profit, profit gross quarter sequentially bit the down gross question, maybe implied the your a EBITDA for So, kind implies fourth and third guess sequentially. guidance from I guidance

be is so be economy be or improvement, still mitigating other might I have I some would the holidays for you recovering, some maybe then Now, there circumstances, seasonality us. highlight with thought thought sequential but might there'd to able the that

Kris Roy

Tim, Yeah. this Kris. is

think business say a kind majority the quarter. So, would large the that base I you if happens at I pre-COVID, seasonality of just the look first quarter and fourth our in both of

that's I So, some performance at for happening, you the some certainly think seasonality but look of in also have have that's you business terms as QX, you recovery in that. offset

of factors we've at both you implied, guidance. as So, G&A, look going at contemplated I think as and gross both and profit our think been full year have looked the I you're those --

Tim Mulrooney

Okay. than facilities? labor their as availability me, as Is an just some my continue right you primary automated suspected. is highlighting you guys, I concerns case in issue companies And technology Thanks, more more of also or are what integrate it That's your the to for of one Kris. less now. inflation, services from one labor of this

Marc Baumann

think challenges it to exception we're not most hourly to and most like no But say have has -- filling our deliver ability I'd positions been I open there's companies results. that business Well, workers, inhibited our our and certainly that. in

own opportunity that those have to on I of and there we're in be because going talent. attract going many to what And and put So, rates would maybe bus clearly I for on to other were to have is that those of in do factor. remarks, far our if our where those some is in up say as an need a that, that, we in jobs order part. are parking the rates case positions. putting I filling on that the are to and open to that really drivers of automation, costs. we've and able behalf locations up be most locations, automation as is valet attendants do is open we my on then costs in And to been certainly client the we we're that so going -- but either increased now, be as particularly labor can't to goal jobs And that introduce cases, and the to going shortages now, for reduce passed lease also And to recover management have our indicated base positions increased able recognize

So, I it's we we're well. feel right for but it challenge navigating through pretty think like a businesses now, most

Tim Mulrooney

taking Thanks my Great. for questions.

Operator

line will Moore next Daniel the of question come CJS Our from Securities. from

begin. may You

Daniel Moore

Kris. Thanks afternoon. Marc. Good Thanks

middle in of with Let disagreements. approaching me still that reopening of a but some of talk this Bags are -- I'm profit XX% maybe specifically, start be with pre-pandemic little may phase. squishy, levels, the about and areas business gross thinking that your

type it the of get in levels? would of XXX% this terms to locations, gross back mentioned You to take profit just macro environment pre-pandemic what --

Marc Baumann

-- if we our everything levels segments Office added the particular, that Sure. think are back Commercial -- events of at segment, I indicated, of besides as lagging. And not a ones pre-pandemic we there you they think buildings be verticals couple -- touched and the constantly, to we imagine quarter, and like maybe hotel which they're are back large certainly, and levels would resumed bags, of they're clients Well, first a talk about I I residential airports much look but while pre-pandemic in of venues, might number And on new now. hotels is our are still them comments, normal to pretty growing the we've of that during number sort are in other levels. in activities and sporting large activity. our

schedule, people and think but full a into hotels to And start both to a definitely clearly there's that, on I to a hybrid people few So, are business leisure segment. not we're those getting think, the verticals that offices least going time, see in have as also and And still Commercial travel, help. back at travel the travel like up. ways fill I more, come will

not a been the relative the I really with to summer XXXX. there's school, numbers. segment. Aviation of It's level over leisure rebound Turning on. referenced TSA the little has that's of falling going a gone function people in travel that to a Clearly, travel back strong but to bit, as back fallen back have

travel leisure business. as earlier not on is now, We, a it's has travel. travel Business come and much it's -- XXXX couple travel business leisure that's take to leisure really less our the there's pretty while in same rebound a back more come sustained to lagging, was So, fully relationship and months now bags toward going focused to going it the back ago. the are as is obviously, what for

are I make really expecting that maybe think in if someplace over is about They're go and they're -- people excited reconnections capacity family the fourth the on to with good those members putting get holidays quarter. the colder warm want a news to or climate. really airlines

So, levels. a before that to the see levels to I I own recovery XXXX. back to the really to get think And Aviation continue XXXX see to what that but in it we'll travel in has -- we our improve need was think go there's business returned that's ways to segment,

Daniel Moore

to reasonable Very do looks the a that we run about annual G&A? around reopening, And how for rate like, a quarterly good of or comments whatever appreciate more When G&A. get back [ph]. do full think we

Kris Roy

is Dan, Kris. this

out we've at Certainly, taken processes try as incremental I full early business. the out a around kind the of really to lot little probably some drive a and give costs the structurally looked that. to costs of business think of perspective it's we've of

kind as season. as you investments I I to business, results it's of give making you at technology, guidance. look think as of think the And through frame probably a quarter more around Sphere development growth able and go business budgeting activities on announce of of our around early, little kind XXXX let and fourth perspective just the that I think our the alike, we'll the we're be us a our we we that little not some but just up on

Daniel Moore

below that to and Got changes it. Safe on you've assume based be structural the to levels. alluded would it made XXXX

Kris Roy

I mean, much to but how that that is, want less don't think of I the think G&A I that's to than year's be expectation G&A. certainly XXXX commit next kind I be case. the would would

Daniel Moore

And more contracts obviously, of and of last lastly, path At Perfect. this them underperforming year permanent months, you to benefit are Thank of even might -- sense you've be work you get a to in there's like -- maybe or just so. would where are reopening, some the if on the work and percentage what from are agreements your contracts off trying XX next based rolling done more ton both on or temporary where leases I'm renegotiating the be, over basis. expiring stage, you there to you. done, a or lingering

Marc Baumann

Sure. Yeah.

very there still. then and are think we levels being quite said, or deals. some That XXXX certainly that with leases. principally are few over XXX performing well. to And beyond, and have leases a I of have large back many portfolio done It's are a renegotiating that underperforming are we're we

that of of COVID. some is And because

that that affect And some of because is other of location. factors it

through revenue, driving costs to become attention. technology other either ways their cases, more going continue And to those all platform in things. will our those if doing can locations to renegotiating performance, we're or take we those get out to So, Sphere lease drive by our or improve be find

make in count into do the to past a we been leases flexibility very that leases that over you're see to have way leases. talked we've to the our entered that radical we about sure no think of lease don't We're change have before willing do I the them. out to XX long terms going we need. willing go and to months just We've prudent forward. more try the fact were that We've very, we So, as in than not

think before We've and between So, a lease and that five our seven portfolio fact got portfolio years. the the we've place. good remaining I is in talked about the term

we off so, that And part, if to and and haven't fix, drop period, the during able to most time going away been there we all going for burn they're they're are that any have to for sure. underperforming that

Daniel Moore

for I'll Thanks right. the follow-ups. All jump color. any with back

Marc Baumann

right, Thank All you. Dan.

Kris Roy

Thanks, Dan.

Operator

Marc next [Operator Instructions] question Sidoti. Our of comes Riddick line from the from

begin. may You

Marc Riddick

Hi, evening. good

Marc Baumann

Hi, Marc.

Kris Roy

Hi, Marc.

Marc Riddick

that, circle benefits put it mentioned and remarks, but wanted that put might might little because things how as Sphere inflation to for could wonder back offerings. -- talk forward. wonder you'd of around the helping wage forward prepared might was bit it heard sense, you the seems technology one breakthrough So, and if more make that going it it sort I of which how if I I you if about little in to a though I would on some that a driver on your the of service something correctly, be a of be

Marc Baumann

think you conduct cases friction, capabilities, Sphere at I many mobile some to your if of transaction. enabling the device we're Well, in using entire your low look

to interact parking leaving. only not the don't your window of and you're car, entering the you the you're have roll you cashier don't when with have roll down to facility, window when down So a

of the And for need those cashier, about increased capabilities, type so, that. of doubt the reduce no penetration

is, manage. that productivity The needs have have other is to we thing we that

We manage people to wheelchairs. pushing have

who manage away customers. attendants valet out putting are to We cars getting cars and have for

at and they're bus they're We their have what are to routes. -- drivers in they where and manage know where

part those that one marketplace jobs that's clearly, model, indicated can some other management those productive. more help why to And so jobs the -- still put by that could the passed I Even for to in that's is wages. And mean, feature are clients. as up a where extent can costs and just improve I that. we automation, are cases people. those to in organizations, way our we those of of we are with the our to people technology, though contracts hourly deploy replaced we which be that in on really the -- business. just particular And have around your competing And be no can like of not in business we're of there's productivity workers in we questions, predominantly

Marc Riddick

Right. I And swing could you it. if I wonder, around, little Right. a back and bit appreciate

think I the around the processes. offerings earlier into on the the and of one timing questions spending of budgetary technology going

a of been year? when the well-received that now wonder you some thought So, little you you first that I are what maybe that sales? of could by versus there or offerings maybe scope if bit that about you getting talk technology customers the maybe the a the what the of at you're -- have have year, during looking course Sphere of beginning driven was the new long is has evolved introduced? the lines Or have What the sense of

Marc Baumann

Sphere a for Sphere think, Like And place XX% for remotely locations in I been example, we're to Remote, facilities. have we the pandemic. substantially where here up some Sphere XXX during and on aspects of while. up Remote, least that's manage at now over Well, can

to continue on reduces and need demand saying, to hours, off the weekends, who at we as it don't that's staff pressure particularly at the I facility, are have saving from cost and a labor well. nights availability so, And see what, clients

but is locations, service we'll our a that providing. grow. that go And that I generally in, we when we're So we bring continue -- we're And speaking, we expect of there's -- lot mean, more this management number a to at. client. this an continuing sizeable from fee typical service becomes additive it's can earn to that that's a

we're there Sphere on work some solution, places many go. about, XXX that in locations, equipment. to technology, Now, revenue are talked not primarily are have have those with surface and locations. clients, had gateless making more to them that into of the things the to going we've that locations been we we with management terms indicated, we've other but those Clearly, range many, enable control the sure of as And lots And go still lease focused capabilities. are if deployed to there we've in

Sphere I engaging We're bit at not was standing will next the the at But with in us over and the really can for for of still, that looking so there that functionality what places So, to deployment to we're of same it the choice want you'll capabilities the quite become looking Parking.com people a see are do think, still. app XX what that we be add the -- -- can time, are to park. it months. --

Marc Riddick

for guess I up guess then, circle fit if and maybe last it could me, if I could two, well, And I I in. -- to wanted I just could with we -- come the but thing -- see

was I the out. things. and being if maybe more that timing saw was in in mention timing was there these in of driving for of a greater was there You wondering particular, if was pandemic And call do interest that public/private I better to anything anything -- function it's partnership activity. out a of particular position wondering be that Or recently and/or to you coming to or, the of customers activity

Marc Baumann

There right look deal you call a talked worked the last let's parking. about the out And to worked been and out XX maybe structure was there've there's at Chicago back a it as so maybe privatizing just not been been some people, I many Well, if dozen of a haven't years studies, case think history Sure. over and okay. the that haven't taxpayers way -- get that. work the for that didn't being meters that like one really well. really here lot The having some have

sources revenue, in obligations have assets. optimizing we -- universities savings to growing alike. all new there. wants And away of wait someone to they So, structure or that see they're and if to of to their or of sort and cost service find parking building. when about find underlying sort a has, are still pressures of mean, happen, everybody whether the pension better ways Those additional government read But those idea. own local find they're to backs operating things fact, try there's a I

part it. government it's but so flow. for these and additional not to the I by whether down that with player, operations the performance is generate of or get to doing some find there's And provided That's no -- is have performance. to a paths provides. of for PX would there's any think go that demand the cash institution, doubt going optimized cash those it SP the us, then out who's to university, PX, right financial infusion ongoing who We local need a going And to get and the optimize Plus opportunity the want us, by chute

I just a big the a they strong not comfortable in to few go And So, chance that of these when think need we that people taking that's but down they're a a case, paths. there's gets too marketplace. what successes see

So, is the demand think there. I

I the what success make of wonderful it the hopefully then, many a we'll do -- will case become next see to ParkUToledo others and over work. to coming And think study along how months.

Marc Riddick

Sounds very you good. Thank much.

Marc Baumann

Thank you.

Operator

And line Kevin from our comes Research. Barrington Steinke the next question of from

begin. may You

Kevin Steinke

afternoon. good Hey,

Marc Baumann

Hi, Kevin.

Kevin Steinke

So, the Aviation in momentum business new the you some of clearly segment. highlighted

two that close of you're kind Was that's final what in two meant You that the the now? with you of negotiations earnings just negotiations also just mentioned going status to to release right those -- that, renewal those like or are indicate currently in feel you're major airports.

Marc Baumann

retain general, our don't much airport We Yeah. really highest in of but our the in do I group part Kevin, with in everything, our business more than highest. It's rate retention is mean, always so general. we the I say generally business. would our

can for be shuttle competitors. parking opportunities the a as by management parking but Francisco the at probably completely be a years, couple services. -- We've for think business those, focus But nice opportunities. of new we're indicating new that We'll we're in about Dulles, our about provided time. of fund obviously some is just talking was before that legacy such operated curb stages of So, winning of talked we're our new can one the we've renewed on additional times we it main quite and San deals that I We've at some the be Reagan many over it getting And or completion have long. the and airport renewing. and

our we're at we portfolio And have scope win history so current of around than company. we we're were ever And contract of to more what the doing. the running that our where enhances ability now in looking airport really airports the

opportunities their already And opportunities also, the that's go our will bid obviously Sphere already So, because airport we with current operator. for really new watching those and we're we're us us digital brand something familiar offering plenty I airport operations. qualified by to making said, of to marketing And for to to competitors is And locations marketplace. services they're could SP and think the hearing programs, what those particularly take, our and new bid we technology are us add on them we're view have unique the that at that that's that airports list the that under and form we clients looking from as us other because and management, differentiated why or to up choosing of Plus airport bidder. technology, we being in for a continue from there provided that our would parking of continued out have go some out are for operate, clients switch decisions

Kevin Steinke

to good hear. That's Okay.

to that piece on just be just term? mean, aggregators or or, business of are your mentioned of of going looks like comments what there, of that toolkit you're seeing going I also the to in you growth continue view to a might any is the a to you the So, some that model What the continue is displace nice that third fees model in you gone thoughts Parking.com, really longer you're have role third-party parties otherwise through that your in and forward? do past. in transactions your number capturing kind

Marc Baumann

go I thing. that, before Well, one Sure. to let clarify me

the opportunities on a the for So, of when we assess capabilities solutions new bring to service. to in players. us we We're we some talk really cost or have what case out Parking.com, about those to enter customer. are that transaction of person, are fees, the our more parking not partners that transactions maybe and fee with And can and of gate it's to provide -- Sphere Sphere capabilities have effective type that through that about to third better build Parking.com. talking lower a to identified into what arrangements new those technology lower gateless parties in-house fees relied platform And the of service the supported

we income And on so making That's parties, bringing by from thing. revenue as going monetization cases, us is And have capture costs some changes would we the streams from operating that doing in a invest the to the not unique reducing people the new technology but others capabilities, in-house. do in Other vehicles, are -- we their or those to additional some fee us. an third parking it those stream can also for revenue, both are people been of same so, generating capture that's key to of those the costs platforms if providing focus so.

parking, technology convenience low it, a enabling off. modest to people paying recognize some think is -- transaction I a fee worthwhile friction So, have trade

built all are out we as our own selling the aggregators, identify places have parking. far of As we capabilities to that

a at parkers. we're parking facility, And selling monthly ramp, selling obviously are so, given the parking, to on we

We are selling are in mobile app, those cases Parking.com our to selling useful all parking aggregators. we're And parking many through channels. and

channels -- who some realize, management would anybody others. some more Now, at are looks like than channel profitable like

Some some are -- lower can costs. have and costs some have higher

that's at we And at allocate revenue going for least will with that's that we're the revenue client's And management to so, a us enable digital tools that to revenue. optimize we're view inventory our optimizing we our benefit. built if optimize location, benefit, the for if

doesn't And revenue that digital we we the be then it they with to that. in And and so, that's inventory made that. put inventory place to then for decisions to equation If see allocation those do will is facility, enable can clients that to our be optimizing of channels. to aggregator analytics. an those if part recommendations -- various doing so tools to the decisions and we're sorts we've a us if not of using sense, the has make allocating that share our -- not analytics And make doesn't to but around aggregator, allocating going a team an change, data really of that need some not

Kevin Steinke

and it. there. color Okay. Thanks the clarification the for Got

a lastly, kind recently the don't pre-pandemic. things when targets, Obviously things has trajectory lot term, Just of kind But obviously, your bouncing now. know rethink, you chance a longer pandemic had wrench revisit we I if a in changed back business of or longer to thrown temporarily. of you think your just had term growth and about the

profit with to or think to here? talking you kind what's pandemic mean, still about early You've X% that? managing been think are long-term we X% going that is is valid for something target. I gross on the kind about is of term the You just it of too is, should longer of

Kris Roy

actually range. Yeah. the pandemic. that when growth with, Well, of consistent then that was fairly through and I profit. went in And and was exceeded think we X% I X% top in view we we I out my talked has been gross long-term for objective of this think it the our fact, -- XXXX, sort When to pre-pandemic. about And

above objective. up. now be some range. some like, the long-term raise years, we people And range. me, years, to it's well, other will In to And that maybe I'm in we'll be were it And is that saying well, time a

virtually clearly in in measures. financial a to to where year now right we're Now, were which the a get we was XXXX, for record back all recovery company on

until to my view that -- for the should at faster hasn't all. we grow to we able our get level. that's that But back changed long-term, So, -- than be ultimately that

That And we sustainable. locations need to faster clients us and do existing growing ago. benefits few penetration give they existing our comfortable enabled our we services capture umbrella they that's players We technology It from capture to base. think technology need offerings. the income means become services our to to speaking And more of with as see our our like than CPI. to about was to rollout new and increase new continue a that, share I of client with I -- to what more market means and get need streams, us. the through that minutes other us

the And pandemic see we why So, in airport, that to think really -- unrealistic a that people from changed A I don't I whether going expectation. B, anything. has why don't Pre-pandemic it's car is couldn't an to are or at their bus get They a don't like people mobile transaction congestion. an They done. they use to everything. want with interact other to friction. a to like device reduce want don't or for They

think, at ecosystem of to invest accelerated away, fears when to a these low experience by technology ultimately entire continuing our the people when And pandemic. that I the the put going go center as And during of around want -- A back company. things we've We B. concerns in a still from to am some distancing social friction are and I have I

that. I we grow poised And of so, well reason haul. long can't at take we're And think of sort levels there's to over advantage the why no those

Kevin Steinke

had. all That's Thanks. Fantastic. I Okay.

Kris Roy

you. Kevin, Okay. thank

Operator

remarks. not Thank to for queue. I'd Baumann Marc any questions turn to further closing the over any showing call you. like the in And I'm

Marc Baumann

Thank of about XXXX. looking better early when year in out thrilled the we Victor. are brighter is certainly Things we're today. us. for a out how and journey you, for did thanks us the than And to up on set the all of lot panning Obviously, you joining year they

So, anyway, in and here thank we'll interest being time. your look And next for you today again to forward talking us. you to

Operator

conference participating. This Thank call. concludes for you today's

You may now disconnect.

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 28 Oct 212021 Q3 Earnings call transcript