Earnings call transcript Q4 2022

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Operator

Thank you for standing by. And welcome to the Q4 2022 SP Plus Corporation Earnings Conference Call. At this time, all participants are in listen only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]

conference being today’s reminder, a call recorded. is As conference host, Mr. will now your the turn I to Kris Financial Roy, Chief Officer. Please begin.

Kris Roy

Thank you, everyone. Valerie, and good afternoon,

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

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

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

In during They to informational the the an supplemental only. operations way addition, is concerning provides company’s results the the call. financial for with information investors and information non-GAAP of non-GAAP believes company’s presentation appropriate Management are ongoing will provided evaluate performance. discuss management purposes useful

Plus A tab comparable reconciliations presented the of in under other full non-GAAP call, measures will GAAP in reconciliation financial G earnings SP the comparable of To measure Relations were non-GAAP to extent the the financial discussed be section the measures Regulation the financial measures to the release. tables accompanying GAAP are Investor posted website. on

days replay Plus be is today. broadcast call after being end website available will of for being live on call recorded. this Internet note XX SP available Please and be over and the from the shortly the is will A the

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

Marc Baumann

initiatives of a strong you, afternoon, share Kris, substantial everybody. targets. good a am to growth pleased discuss from new for the and support SP Thank finish Plus double-digit trends highlights our year to to that and Hey. growth and I business

fourth leadership year To the financial across in growth of begin, metrics. all our demonstrated kept performance and key our considerable a quarter year-on-year industry

growing on to was retention year, and winning continued accelerating profit effectively geographies. the saw strategy execute gross and broad-based business, improving solutions. this of by the Sphere and outstanding We our while across full robust existing new rate verticals our contracts, fourth quarter our strong deployment AeroParker and our award-winning segments, performance growth in technology We and our also

gross XX% office In profit the Sphere. venue year growth segment, quarter and led favorable trends ongoing and in of adjusted and the verticals, and return successful our to XX% activity adoption of rollout increased and large was the reflecting Commercial by hospitality leisure for Commercial the

profit results record XXXX fact, In gross adjusted level our reflect of Commercial in segment. a

and In in the was quarter the airports fourth in of and growth served XX% number increase Aviation an the uptick year XX% segment, of the function in of adjusted a a activity. profit travel for significant gross

hit new We our pieces and of segments levels buses processed parking clients, reflecting gross billion and passengers year. luggage and record $X handles lease a our combined our checked is of last reach million management on if measures XX shuttle this over in XXXX. scale lastly, in it’s And behalf from both on of million contract. facilities our We revenues, transported X.X

X,XXX XXX which locations is locations, reflects XX Our net over Commercial comprised segment new last the added over months. the

was achieved in retention our the over XX%. level Commercial consecutive growth new last the to location have approved second achieved seven and in from Gross further highest profit our net location demonstrating the quarters our ever market we success rate segment growing fact, In share. we business

with Services XX airports in a where our expanded at not have have previously airports two of including and to SP either XX our our did Plus new Concierge for XX Curbside net unique On are the we acquisition from in side, or we airlines are AeroParker. airports Bags Aviation to the These airports. airports airports presence XXXX, portfolio global presence now and providing we XXX

If you so have where of out done Investor check you presentation might vertical investor want these haven’t to out just market. our Relations by that published some metrics website the we have size already, we updated on broken

terms trajectory. momentum positive XXXX an and of is This in growth marks inflection continuing in point our

positioned growth and innovation. over well Plus a work has years by the several of capture we last leader the as now industry presented helped the opportunities SP Our position transformation our technology to are in digital our

noted G&A we profit gross AeroParker growth percentage for reflects foundation expect which XX% that set release, which the at adjusted in XXXX acquisition will full additional in approximately strong our we also believe we growth guidance year with growth. expected X midpoint of is and points our the another our XXXX gross achieving profit of of earnings EBITDA As in XX% range anticipates adjusted the growth, midpoint, impact at in of of investments accelerated year the

several we technology have solutions the making we last been years, edge today. the have leading Over build investments to

to addition significantly with strategic position internal XXXX efforts, two In our acquisitions. our we development enhanced in technology

XX well Aviation traditional poised our technology. and acquisition capabilities as relationships as is cross-selling realize suite entire services technology AeroParker’s business, This grow expanded and and industry portfolio recurring as leading AeroParker’s parking to worldwide. Bags leverage now we generate provides at of transportation SaaS airports to opportunities to across synergies platform revenues our

AeroParker client in we KMP acquired space. of an outside As also part of Aviation the an marketing both award digital the Digitata, and impressive winning with acquisition, base agency

as acquired us of along establishment Lab a as the foundation Technology since this part accelerate solutions platform, SP we just believe the importantly, which for our based XXXX we technology will our Plus lay technology acquisition India, deployed the whose enable partner Sphere’s to of in progress we Divrt roadmap. Innovation With

synergies addressable acquisitions; and strengthening one, two, leadership and from strategy, technology. our includes; into we XXXX, advantage which of position; revenue on recent executing taking multifaceted leverage to our head expanding our As our gaining three, our substantial opportunities and we are monetize growth market

to uniquely innovative clients or improving and enable are meet those position, positioned consumer the whether to objectives bottomline, operational in Plus experience between. moving respect to prospective solutions SP objectives, to blend With and the to their expertise current anything varied our is technology leadership superior

is people new compelling Our last business a operating technology infrastructure, solutions two element reducing enable years. key assets trends parking the existing provide optimize to in to And clients major preferences consumer upgrade many and the operate that if also, the of making with in our know-how expenditures, align success technology over proposition winning without their while cases, and has there an highly costs. we value This been trained to infrastructure. and use capital of

existing increased footprint we the Additionally, of stickiness believe services, continue benefit to which deployment across our our of the rate. our our will has technology retention

suite software-as-a-service terms addressable the realizing solutions revenue In that our platform-as-a-service synergies, of expanding Plus includes whether technology and market is can SP options be deployed or operator. our of or not

the gives global also owner by traditionally of presence. and of pricing the parking is their revenues free dynamic SP to value asset solution parking optimize converting assets to techniques Plus maximize acquisition Our enabling a paid AeroParker recent or to employing

and resources have synergies. we SP with the to and to to further will industry drive their opportunities has leading now leverage technology Together position Plus, support expand its premier AeroParker cross-selling

advantage our XXXX offerings important the we deployment future to leverage substantial take our beyond an monetize comprehensive portfolio technology, which profit is accelerating focus will key in And and believe of technology our of to finally, of opportunities of and a component growth. be

entertainment deployed technology processing transactions broad locations, month all and of size platforms currently operating across airports, meet and to Plus-enabled complexes Unlike on SP fits per million retail to like. range technology situations X off solutions adaptable and street other options both parking venues, consumer client our the digital are needs. are on and We one a event

at is XXXX single-digit today While gross these that less for support given by technology our we least and Plus the profit, strategic grow profit high believe objective growth gross position subsequent our of years. SP XXXX. to profit X% XX% in guidance We solutions of gross achieve our three initiatives have to contribute to than

have SP playing in we development use look mobility an ahead, important further assets multi hubs. we increasingly smart capability become And of see parking the if the cities as Plus role to

early increase cities evolves. smart our will with work technology the cohesively clients industry-leading enable to roadmap capabilities While the still that value to of very for we as believe in their our us stages, assets parking

At I’d the over like back this point, review. turn to to call Kris financial a for

Kris Roy

for for retention quarter We winning will strong improving gross of growth fourth this effectively, our and profit growing drove the our strong executed I year in performance, factors XX% discuss new our business. Marc. XXXX. Several growth XXXX. rates operating year-over-year you, outlook quarter our our contracts, existing full team Thank already and adjusted financial in the year for XXXX, with performance the exited and and fourth

business year-over-year was G&A beyond. adjusted resources quarter XXXX share EBITDA growth expenses due capture technology earnings decision make largely to investments will XX% the Fourth $X.XX, and the per XXXX support adjusted in accelerated believe and to QX year-over-year. that development, adjusted increased higher to ago by we enable us and XX% year Resulting XX% quarter in XXXX over other up were and were which strategic

adjusted in full contracts our reflecting gross technology-only by business and locations technology. success made up environment including the XXXX Sphere XX% possible improved summarizing performance, profit new year Now was adding year-over-year, our our

for strategic growth. decision primarily to XXXX in expenses year-over-year, G&A capital make adjusted early year Full to our increased investments XX% reflecting

XXXX year adjusted XX% earnings year-over-year was share per $X.XX. adjusted and ahead EBITDA XX% XXXX Full of to increased

full flow, increased cash year year-over-year. cash flow XXXX XX% to Switching

from federal prior refund, free the higher cash XXXX reminder, a As flow offset U.S. which million income compared $XX.X tax capital to expenditures year. a benefited

December, credit million end $XXX of facility. had availability At our the under we over senior of

shares of $XX XXXX. authorization. to spent approved XXXX XX, During repurchase our the $XX million over XXXX, share $XX.X repurchase million Board authorization week, a leaving million just new remaining May additional as under million Last X.X December we

debt growth, shareholder cash and strategy flexibility us pursue additional organic while repurchases, goal our free to to the share with capital a gives includes investments of financial support that the levels, Our all value. creating managing acquisitions flow allocation

our for in laid and and beyond. several years the XXXX XXXX have our growth accelerated foundation technology investments over significant in last in performance Our the

a year the profit gross As full from which XX%. at expect midpoint to $XXX year-over-year adjusted range $XXX XXXX to million, we of growth million approximately represents result,

$X.XX EPS, share, per to of ahead the levels at XX% million XXXX also be XXXX midpoint expect the $XXX expect a above $XXX EBITDA $X.XX to We million midpoint. adjusted approximately of share adjusted per and to X% range for we at

per million tax $XX per million XXXX also the to income of federal $X.XX be free above if midpoint cash share to $X expected XX% or flow XXXX anticipate million flow approximately We $XX.X refund. to is cash share. the XXXX free $XX you exclude as

additional purposes. modeling some for our share to on wanted I insights business aspects of Additionally, other

to being continued our seasonality we to quarters some the expect First, typically see QX, and strongest year. QX of with

reflected is XXXX which our XXXX, in investments significant fourth made have quarter in we front, G&A the On results.

QX some early good So XXXX you pretty rate is layer run if XXXX. a investments in also of incremental in additional

currently our year interest in $XX In X.X% an expense interest corresponding interest maintain basis and is We rate terms million SOFR. at resulting full of all-in above expense, to senior approximately $XX rates XXX points at priced anticipate X.XX% to and million. peak and in of debt of XXXX, interest

Additionally $XX given to million our expected includes the D&A and of is $XX impact levels of to expenditures in accounting the XXXX recent the XXXX, million, related to acquisitions. which capital purchase range from

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

Marc Baumann

XXXX beyond. up, XXXX we our are Kris. strong our even and by pleased performance you, more Thank for encouraged in To prospects sum with growth Hey. and

beginning we and them We growth support growth made accelerated investments have expect to XXXX moderates. leverage strategic to in our SG&A

breadth years growth that of XX SP my front we today. in seen the I of Plus, In have never have opportunities at us

moment all every make as Now seek for about we go. matter world to it’s the on a execution

our XXXX XXXX and building confident successfully that Commercial are momentum beyond. of to Aviation lead achieve accelerated teams the and growth President We from their sustainable new in will on in

call the now I’d open to Valerie, like to questions.

Operator

Our first William Tim question of Mulrooney Instructions] from [Operator comes you. Thank Blair.

is line Your open.

Marc Baumann

Tim. morning, Good

Kris Roy

Hi, Tim.

Tim Mulrooney

pretty you a in mean want and have X% X% Kris, typically growth level Plus I growth target And I congrats you profit outlook long-term Marc here, questions nice your high confidence outlook, I one to in afternoon. what but you walk gross your rate. component, get which that the in and my where about SP taking up for talk taken good single-digit think quarter healthy dramatically us in Marc, for the is about and Thanks range, the but factors range, could we you that target? start. is on are through how that a pretty up of that to target essentially other maybe implies to Can discussed know primary outlook? also step sustainability around technology curious you and doubling your

Marc Baumann

Sure. yet I’d And over be glad profit the that target that a to you we for growth long put of for course, time. pre-pandemic, and of recall, we rate out X% talked XXXX, have the as quite in growth terms and of to performance we Tim, was a gross and our company about growth X% X% record XXXX. achieved in of rates

the as as at course, we has But what we of a out and forward. growth of pandemic of going And evaluate coming look lot it, means faster we it have XXXX experienced recovered. fog and have created

think details. it’s some worth drilling on in I little the bit a of

capabilities, our operating fact mentioned our a fundamental a ever I best best that segment, Commercial and As of are represented up that I lot for -- was new really we offering my business of are those in prepared XXXX capabilities. an remarks, think the of reflection array second year

we forward. very, to opportunities strong we new business who just saying, bring not going I we And the pipeline competitors. Plus on marketplace, bringing of look can what as looking SP are its additional we we to are and are base a to believe am look as continue that client very over at one of we They have and a into forward choose technology

down And often operating decision couple with a thing opportunities bring has do technology that, bring might we as as we talk making it’s along might about our and us. technology-only with a technology, of is talk for we technology might a and we of or road something in the conversation doing the other offering, expertise about an client the technology part

might One replaced are many saying is, the be aging costs. more of infrastructure. them can revenue are the going In route that of upfront, cost to them, bring to offering sort we aging help technology of reduce more and an to have be capture awful or to are something you solutions to existing technology cost to traditional their anything not and we clients their needs clients instead capital spending cases, going lot we effective to that replace

indicated the think technology parking as I I opportunity in that And my free parking. also places had in pace us, offers to bring remarks,

that and So expanding there are about prior the door often talked locations a to the we that little we addressable where In have charge premium to near hotels parking, shopping places, but are calls, really have people pay willing are other retail great for market. it. no center, some a park

think within the go really more could utilizing honestly Commercial for lots to I show clients deploy and friction So the edge but going opportunities there’s to have we their I on to people of on, segment, solutions that technology capture the are cutting to transactions services. that reduce and

and know, that. I great One things over Bags is are flip Plus Bags the of corner the a interest of and to there’s we SP you the to prior client we turn acquired in couple into started to pandemic, lot operating on. that XXXX, a really When Aviation, had base we introducing worth as technology capabilities airports and you commenting as the we think,

course, are to a pandemic some about clients, it start we on deploy just all put the new as our these that. of solutions And of then hold to along came to of and

we so clients reintroduce the have us capabilities from the recovered to And clients. from airport our as the pandemic, an recovered to opportunity it the pandemic, Bags gives

the into equation acquisition And bring with can as recent we of that the course, AeroParker, with well.

example, Plus is for in meaning services. Bags -- SP without of airports XX America, airports and SP providing services seven North those are Plus so, and And at AeroParker there provide legacy AeroParker

be have airports talking through own is them AeroParker. we its to means Plus of XX there Bags clients SP So those what and the relationships with that operations airport can airport capabilities about where really that, or are through

the flip discussions other in base a SP technologies bundle over almost and or side, of too. client in the the America, has of U.K. since On based their outside Plus they North airports is because numerous, their of the the AeroParker position some now their Bags conversation in in -- XX capabilities maybe with to are

we growth. of between lots So as the see at and look traditional cross-selling for think for us opportunity Plus gross SP Bags, business, I the we AeroParker synergy

perceived technology those but expertise, to solutions, minds be And space marketing same investments prospective in time revenue America now to within lagging also I the we the cutting clients with airport have the technology, to at should just some operations -- in edge for they clients in you both of competitive clients in not have North competitors, or say, are say, the to are and in airport coming drive we who have receptive into strategies who airports. someone made for them not what is seeing operating Aviation, made finally the are

So our clip at a really give us business things those future. we faster to as look expect I of to the all the think confidence into grow

Tim Mulrooney

I on right. and the That’s Thanks. cross-selling in mean the it’s market really side. some maybe All Aviation technology gains helpful. share competitive

prepared the during in curious appreciate and that $XX how implies in gave million million how XXXX and SG&A your placed your but during you much guide expense XXXX. am I XXXX? that you layer gears, of actually to $XX all in said of higher, I was expect Kris, commentary just understood some much there. was So the do remarks, of color Switching but you appreciate

Kris Roy

Yeah.

certainly started started those investments. the investments, we those make, at into some in we of QX, say, we to I’d look QX to you If made make additional and late

run certainly think good rate. rate you pretty if QX, that’s look I a that in at run

I additional would early investments so some make see XXXX in to that. going are and We

of G&A it that, quarter to, a QX, and let’s in QX, first on a bit you that probably terms see top it QX. would of look at QX kind say, will you and If little then of above slightly and relates be bump as of

you spend look earnings in XXXX. think was mentioned $XXX into overall if So some approximately to commentary million additional XXXX bring was $XX and in our of we the at there G&A we kind in about that, that going release, I million an

you in is how $XXX I think terms what cadence we little give are million we trying G&A. are terms G&A color you a that gives that about at of of just do So to XXXX. And for the of in looking

Tim Mulrooney

is of And for acquisitions contribution much contribute Yeah. profit but queue. profit much the hop the how one back Perfect. in me your gross I here, for to gross in quarter Lots did did in and then they how and what -- expectation last XXXX? then will acquisition from fourth questions

Kris Roy

say at would in given little I the that year, a say, is, that I we of KMP, into synergies terms if in in look it also present that acquisitions I excited you say, Yeah. Marc market acquisitions opportunities both QX, What a but about were wouldn’t of think, the contributed I the Sphere, QX. mentioned. are would later really the revenue meaningful these in was terms

terms kind be and percentage of of say, X% X about a at, might terms say, mean might terms points growth, you of I’d in of I what would If in profit XXXX of gross related of in it inorganic, acquisitions that you kind our out profit. look to perspective look it’s let’s from say, would gross

it So I necessarily what it’s think in XXXX. not is

to common are as it’s opportunities be can we I continue years at in and KMP there. it look the think what outer these that

Marc Baumann

Yeah.

that mean XX% at XXXX, but sort it’s said gross has guiding you the Kris midpoint saying single-digit. look the well then and you think remarks the that I high profit both growth of of we we beyond if are to are in made, us it back I

full clearly from of XXXX, those acquisitions. So the effect get a little in we blip year

Tim Mulrooney

organic ended with all basically because that consistent outlook, makes right line profit it -- long-term sense, single-digit right. in But then Yeah. your gross high growth that’s so

Marc Baumann

Right.

Kris Roy

Yeah.

Tim Mulrooney

I queue. great. will all back for hop that’s Well, the in color. Thanks the

Marc Baumann

Thanks, Tim.

Kris Roy

Tim. Thanks

Operator

Thank you. please. moment One

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

open. is line Your

Unidentified Analyst

This Hi. is…

Marc Baumann

Dan. Hi,

Kris Roy

Hello.

Unidentified Analyst

and in for well Oh! SP fared Sorry. was XXXX Dan say and a aggressively just -- signals there your mixed Rob in Hi. storm? of [ph] in where This recessions How say XXXX. SP is end contracts? an is has and you your customers your weather Moore. would macroeconomic I would affects contracts wondering place and you always has economic renegotiated to that kind view There markets you lot been from overall how of the positioned

Marc Baumann

touch really those, look pandemic you people Sure. the back don’t vary I I’d miles sorry, would to think that driven But of and – past of if glad recessionary be I by in number is unusual very you what was varies that. one the only period, recession, a on mean event. call recessions a X%. about typical varies, at

is those of miles So people people are geography driving discretionary because recessionary kind to -- don’t the across our places, is trips because if will take. driven few other of we slowdown seen be in that and I broad-based But in haven’t activity. think of even are going verticals, maybe do, time are a there clearly recession, there businesses we broad-based business vary a across little impact generally a some

management The fee. to I’d getting is we the are remind like facilities, our of bulk other you consequently, of the generally Commercial the the our directly to we management utilization thing within contracts our of are that, not portfolio, segment, tied and parking

Now a will if recession clearly that’s there to and slowdown our and travel some leisure, see component were services. leisure present impact travel within Aviation, and definitely a in is there

talk in service the vertical or have and that get array the or do so environment growth we market think is, share thing any and recessionary in additional provide even already small of for and the size, that clients. can growth The operate go our ways is we we internally location really increase of any we one a penetration either with we our get services very despite the at get out we about a team we of I

often are in costs. reduce create a to new of to And clients demand technology clients a recession, innovation, that’s prospective of are pressures using when or efficiency their and ideas, lot receptive drive new own feeling times they financial or

performs all to I a prefer have recession, that think, well not have while business we model recessionary in So nice a would we environments.

Unidentified Analyst

so for be could you the alternative? in are to uses So a cheaper you say heavy you efficiencies capabilities that customers, many that technology create their guys new would cases alternative

Marc Baumann

component I technology. think, of be, as there’s We to might mean, imagine, could lots you well I

One we the of managing expanded more is managing we day some at that parking and facilities a the the we facilities we before so it are point remotely things this pandemic, where remotely that’s lot, probably did part. or expanded monitoring around XXX and there in

clients reduce staffing And do past. might to, let’s levels, other the you more mobile so say, levels for with have option necessarily period let’s remote the more one is drilling need and the in with the needed management, you technology point-of-sale technologies don’t staffing that recessionary our

I it technologies. of their think, so, mitigate And deploying the those but the to us for growth clients effects utilization recession get of also deployment technology acceleration our the and that the of way from business, a of is on to enable

Unidentified Analyst

least help clients at mitigate a makes sense. lot in situation. costs You or That that of your labor

Marc Baumann

Absolutely.

Unidentified Analyst

And guess… I

Marc Baumann

Absolutely.

Unidentified Analyst

to any of say, … made penetration in gained guys really excited a have their clients that businesses the you to last plethora technology that pulling you couple there’s really really would guys if of are or are rolled kind and about on attracted clients? out thread, years quickly acquisitions over new you excited that offerings is have of your making

Marc Baumann

a couple they certain financial are is, could a nature, there, objectives interested things their experience in in are -- on think, comment Well, Sure. I I often directly also of Rob, clients customers. their but for one providing there’s

consumer is experience, and some about most part, to problems and friction looking cares the the client reduce For is complaints. has the

from and technologies app of download mobile a scan the to you now to very deploy. you transaction actually create using with friction code and to have to our smartphone, some a credential, And or it that’s and in for easy on so cell your can mobile us we or QR text we by thing are are simply somebody very, that really a a we the a reducing deploying pay don’t conduct phone are inexpensive our transaction where app making the

very, And of think makes these that offerings, I very attractive. some so

from know might out And proportion costs, operate time be years made equipment a a of or years We technicians our that lot lot more. own problems, aging at and and sometimes five to six offering maintenance clients bring and software of we ago just and to to solution a is in XX sometimes cost and coming really that XX older investments or last this high hardware a months fix it technology, that’s many ability some to come no and address are this low requires clients. that the us our technology have support to they in years, lot of to of our costs, our have skilled able of the replace equipment part offer cases, that

of time have really have facility. funds are the to say, lower having as of and drive costs looking environment your going capture a upgrade, going we traditional, for lot penny, got can in me don’t operating let to the you make deploy come us I So same and solutions opposed a for every costing it that problem, I is am we to more to a and our money, revenue the capital their avoid that are to make outlay. are I at it’s And recessionary we

Unidentified Analyst

makes That lot it. Got of sense.

refurbishment takeaways knew minimize costs there. help Got key guys and by you customers it. appreciate seamlessly out I and are So I guess you the reduce maintenance also technologies. labor really rolling costs color deploy that can

Marc Baumann

Absolutely.

Unidentified Analyst

going am on hop I to you. queue. back the Thank

Marc Baumann

you. Rob. Okay, Thank

Operator

Thank you. Barrington. [Operator Instructions] Our next Steinke of from comes the of Kevin question line

open. line Your is

Kevin Steinke

Hey. afternoon… Good

Marc Baumann

Kevin. Hi,

Kris Roy

Hi, Kevin.

Kevin Steinke

… wanted I to… Marc and Kris.

Marc Baumann

afternoon. Good

Kevin Steinke

on one portfolio offerings remarks of to technology exactly of and or the efforts maybe accomplish synergies of color when there XXXX capitalize focus steps on you from more offerings little be accelerate comprehensive technology Good to sort of AeroParker. release and key deployment deployment be then the you a any phrase on detail I to will synergies had realize objectives? on a will afternoon investments and said and in wanted revenue behind in the those Can accelerating on the give detail just those your and our consumer prepared trends taking to you industry you focus to capitalize you. press revenue

Marc Baumann

have I a glad and Commercial our distinguish Aviation useful Kevin. between business. be In our think, Again, large business, it’s probably will I we business the Sure. to, to footprint. Commercial

As over we we X,XXX now. have about, locations operate talked

for way to equipment Rob offerings. what is question to one technology really explaining and our so just technology the was with deploy on our And replacing aging last I us that’s

bringing more the transactions. through would some of But if that’s in that will software, we to that fee hardware and you off other in and cases many that consumers would efficient and way means allow just that are And cases, paid equipment in we the all the with to parking we to idea capture able there. and friction some bring that plug in of cases, hardware we a with will, those transact existing lower way consumer off transaction get in,

being So able as in we see drive growth by to those Commercial bringing capabilities segment in. the ourselves

can -- call also as have where consumer and again for parking solutions that and my expanding through the fees. don’t free as no market. can I the are our There’s on We primarily generate places to ourselves, it’s we our earlier, for prepared these bring remarks, where revenue low of we we at lots client we commented cost or addressable client an in question, talked technology revenue and earlier have the now

within footprint of we growth established Commercial of a opportunity think So within see lot our X,XXX locations. I

have offerings over the really are their a clients And we of segment get offered. have control better it have being revenue new our of are Commercial improve the general we a resonating from to go with pipeline potential of was out business year ever robust looking there. the better in likewise, I that indicated, as environment the the seeing in expertise, new experience clearly, are of opportunities our we second of clients, our Now technology gain point customers, to very the best who operating and to combination for services view and and

within we those So I think ways all that that growth ourselves are getting see of segment.

make our travel looking Aviation, of to we solutions I reduce AeroParker clients provide look an to and people tell traveling additional it’s line to provide advance, because AeroParker for we that think the for would are some arrangements but in do, you to other we for is reservation, can have and it have we those in same provide, functionality like some can gone about can to the to a the had can we clients additive again make we it service e-commerce that and said, convenience, to friction, better experience where have story, airport and we recently lot of that, people want other established have clients, them. bring what now, an who it airport

And of Plus America those Bags, out selling we airports can versa at introduce I its very well to in us. to forces with clients in is AeroParker But as to think there’s or planning to AeroParker a of joining its operate services where has very, look SP prior I be those receptivity we that. airports either own XX now we on all North think done Europe. been vice lot and

bring can services, So that capabilities I that winning also cross-sell it’s you have deals, the synergies the platforms, we think same additional time, thing, comes was acquiring in having and at and will, these clients. cross-sell Aviation, as from three we to on new if the same different

Kevin Steinke

contributing discussing could just those G&A? that touch think you beyond just Okay. other Great. also up of going objectives were XXXX just making investments investments you are what’s in or that you set some the maybe either you growth for or maybe on, accomplish help million increase $XX in And are of in XXXX and yeah, to to you to if rate that faster

Kris Roy

into Kevin, I really as of growth. everything ROI business and and on to the accelerate doing how really what we that it, pace at to you our look the can relates G&A looking mean, I we our terms G&A in I our as think we businesses, think, are say Yeah. in accelerate deploy that the on of bringing we the focus so can want growth what’s can we is that those to costs, costs our it costs and

think Commercial both I bringing individuals side, of would help at our support technology organization the as solutions the So it Aviation on you the the the that deployment as segment, segment. into well can technology look across

us profit of relationship lastly that terms can to to that further individuals profit support functions growth and had with maybe not, then deeper we then individuals I grow maybe in that us grow growth. to can allow clients, maybe the in we the a relationship before have overall think, bringing before and that a at or gross can allow had support business business continue same into get had bit new little gross bringing new us level we haven’t development haven’t the help and in

Marc Baumann

to development only platform, the behind Sphere would of sort and mean, I development add thing I view Bags, saying now. from is AeroParker of that the us the the what Kris is peak is point of the of

to have. edge, sure others over while once strategy the are products us on started and have by how continue capabilities few develop don’t that seen have will years demonstrating these this investing cutting ramp business You the win past we new make we we need that to at that to we that’s up

lot in focus have the we deployment. the main and to technology to growth and deployment, we Our in XXXX those you growth before capabilities. made have pandemic our see single-digit will we see the we into developing and more already G&A deployment move in the kind a is key that during of leverage that investments on and our done of on focus that XXXX basis even we of this pandemic, capabilities is focus as being get execution accelerate of really that way lot gross is try by and on a of the really an focus while profit continued the That’s and our is ongoing XXXX was a

know which that’s scale one some you in investor our I have metric, as that our as other important, and think well airport introduced reach is footprint, a really around data to we new thing several global is let are or our mind, of it’s the services. one almost service. XXX a to cases, some some service to in bear thing airports, we in but providing kind cases In But another a lot presentation. it’s of

by may providing have where within are or only or services. deploying where operating we two we services technology So operating or simply technology be only one growth we additional opportunities additional Aviation

us. to know additional and already within see know we our we the going getting provide and without airports services, even of So who opportunities growth clients to that portfolio sustained create

Kevin Steinke

Okay. single-digit growth will color. in in leverage gross growth ask, in lead your release, Great. -- the wanted and XXXX of future, referenced leverage, growth to operating in of the rate think I beyond press and EPS. high to accelerated That’s profit guess, also And significant you I EBITDA helpful you terms

know profit you feel grows line I guided guidance you investment beyond? about that, as then strategically in with in year think not to XXXX you is of you where it kind more like EBITDA you are operating So it providing beyond XXXX beyond XXXX, and start see just gross but of and an like more do of to leverage

Kris Roy

answer Kevin, the short this yes. is is Kris. answer I would the -- say

of we year as So bit terms there little I some certainly look XXXX, faster it’s -- investment can organization generate additional that of the into resources is think in a growth. an at support bringing and

if were that that ratio to historically think look we of you out G&A ratio I of G&A GP kind to GP ratio to or are kind at.

look million have at look where little at if of G&A releases G&A kind of and XX% in been, this which expect to in XX% we you profit GP at $XX where million we terms $XXX we bit to [ph] said additional earnings relative our of of look and gross that just million, a of of gives is sense about we and ratio. at If and you $XXX the you of you are -- what terms $XXX at midpoint cost a gives of million a in it’s

you at year around right to XXXX we XX%, kind XX%. were Now on are back right if We same that of pre-COVID a go levels. basis,

been think outsized I we been I to in investments while our of we lot made G&A, where So historically. have a don’t think have it’s kind of

Kevin Steinke

Right.

more I Okay. question have got one here.

technology I it’s X% of to exactly know by into your what the XXXX just define referring just and infused you solutions number from? XX% you about where fees, by is the your mean of of solutions, kind that gross your services is a technology transaction about only Can you solutions. and but talked now. goal comes You are recurring specifically XX% lot a from technology profit coming of those

Marc Baumann

operating talking it Kevin, it technology hardware be might I to we trying in I Yes. about and nutshell, And that monetizing hardware, mean we our software, fee might in think be software. might the be capture are for technology and a our say, call as are and or pay intertwined or the is some convenience a to of sort it also very for fee, fee but fee, fee see benefit of that processing prepared modest consumer businesses a we service. you convenience so, a

these that. fees charging we getting see the fees We others now. like are marketplace we see so And in

where and already we comes meant that that readily can that I consumers So so the know and area really what developed the plan. we executing as growth of have against that’s that and technology grow an back accept see that about we we on the deploying

those that kind We need have do so fees. that don’t of capture things. can technology do to additional the We can significant we those developments,

Now and be to we the position into job fees there much as capture the is really those to in possible to out a go as marketplace get forward. it as

Kevin Steinke

over. it All taking will right. I turn for the you Great. questions. Thank

Marc Baumann

Kevin. Thanks, Okay.

Kris Roy

Thanks, Kevin.

Operator

Thank you. One moment please.

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

Your line open. is

Marc Baumann

Marc. afternoon, Good

Kris Roy

Hello.

Marc Riddick

everyone. evening, Good

you bit. have a covered know I quite So

detail expectations bit remarks, maybe little for seeing prepared to specifically around a wondering I as the picture was all, the return -- you maybe trends you all in thank XXXX maybe big you more how working and the could that of both office with in you if to well First the as have through talk the is what and into want provided guidance I that your working are through commentary? slides.

Marc Baumann

as every Okay. as work, least in area Sure. to, pre-pandemic. everybody my of Marc. commute glad the because at significant the were they must be is time And if at generally I will any Chicago actual back commute back bit office are the course, be indicator, to

they are of to edge prepared four because coming monthly days, offer a to or a unique looking our lot to people hybrid optimize scenario have days there lot we know what technology client office companies parking, requires most people base there’s for and only hybrid clearly But of consumers even data have model do three in a out into week. days revenue because settled two are solutions a that model for that aren’t the a buy if can cutting forward,

our the of can and platforms that transactions, other to technology attract us our of those locations And client serve. types enable we marketing digital can so and to enable services marketing course, parkers

additional pretty dead office feel a major expect XX%, like really be actually than don’t office XX% very based days see most cities and return might it environment on peak seeing about good in beyond certainly more we to It’s -- on So it’s significant and Thursday, are now. Friday. like certain and even we and the Monday to what that Wednesday,

to in almost new we this as But And -- terms growth in of properties did growth, the we XXXX within our that and Commercial. just us managers me at of office owners going capabilities, think capabilities saw indicates look property any location of in many that of clients to say, terms the offices I as my that and help new these out are asset. optimize our we vertical operating technology probably value our in brought our we and

Marc Riddick

-- you it what into though you -- maybe expect certainly a seeing level been could area you seems more can a to maybe talk you feeling about that’s certainly makes of because manage labor the control, a able sort the of that bit sense. you from That perfect comfortable little have right. there and are see sort though fairly there, are going because to maybe comfort? as it under So XXXX? gives this talk about as about that but around certainly environment, you what though despite as throughout post-pandemic the from seems the you inflationary environment maybe of the you seeing you of All labor I a was kind talk little then concept if wondering it seems bit had are inflation bit you what little but can And of entire

Kris Roy

Yeah. is Marc, this Kris.

and… I think you go back if

Marc Riddick

Kris. Hi,

Kris Roy

in try kind and a how have people demand talked workforce. looked labor of look in ago, do as operational folks, of what at you market we a of the know we quarters organization, terms of and our approach, the into on what is that about is terms the couple our kind more a market-by-market help it We this did really take look we of at that at get on I market, really workforce. but

pressures inflationary work a through I us. some pandemic feeling pocket or the think at is pension kind behind more given becoming little happened individuals bit as have comfortable to return with either of you that in their books of of look the

think are seeing I get you back into folks labor force. the

rate. down think that year more opportunities that’s the labor well terms in in in as pressure up tamp folks of of kind I that certainly And into inflationary as kind to opening earlier bring organization, saw the of we

think, I all well. seemed So, in all, be things to pretty going

in I they think participation. a us, historically for are spot we well but I from pretty think have good gone a labor

Marc Riddick

spending and something funding kind funding of your seeing benefit benefit big municipalities may you then And being just are forecast of Are see to Are that activity be other them what the as sort beginning or eventually with availabilities? wondering was there you from Great. if that part about more down another of infrastructure thoughts to type do or the another -- may not current I a thinking picture road? you maybe yet of from any question, Okay. could see that it’s you if of forecast. as seeing something and more or am you I that’s of that are or

Marc Baumann

just are services, them including a definitely the municipalities as the obligations financial in we Well, lot for know and all have those and cities in we on pressures live like. the pension of demand

to municipal and more to think, clearly, to generate way. so, so in options improve revenue effective and for And an looking do leaders are I

we so Orleans would Los that on municipalities Angeles provide New and and like And be services cities Georgia. Atlanta, the or street where XX approximately it’s

technologies the compliance well, am of high. revenue, -- do very scan-to-pay client it your so rate device easy so We cutting-edge bringing mobile capture levels it’s higher low to like, And solutions, to able same facilitate the it to using again a the those or bear, when pay, your we a and are bring almost I are are because make to text-to-pay, friction what things transaction. experiences people

except do opportunities on and traditional X,XXX is like throughout there street out there country a there’s to still and is do so meters if can huge them parking, definitely have there coins cities that their simply about renewed And and somebody single what the we they that interest operation parking many, cities outsource for have to many there us. and

We technology. can we bring do can We tickets. can parking do We all. write So enforcement. it can the

of whole are there. Our array services

in effect year, some But this, you these we space same Toledo backers were with privatization looking some yet, we really municipality issues mentioned PX – -- we but are at hasn’t and in -- at same for the University financing are or resumed a other of it financial and partnered in the universities seeing options last at from upfront which university the payment. well the higher that’s also about but revenue plus and of stream an ongoing where investors, this capturing stream previously have bringing has exceptionally revenue and technology, more they sharing was our gone increased flow getting brought so by than they us revenue both been upfront cash an had

a And success stories I world, there couple think -- be these others once clamoring you there’s out thing. will, going to in the being get the you of in do the same if known to

are it who you needed same prospective but partner get almost bit stream we I doing I upfront from can So universities your was me to revenue myself. the needed need, too, also working other see cake value, that before like have a it’s now actively talk had a I I having maybe financial can that when higher little to that help I with can something funds with the

Marc Riddick

last me, up the that an the bit from we customers if wondering what the hour. consumer as one to you been are of of guidance? talk was Thanks. maybe may promise, out going, I seeing both your setting that pricing thoughts customers, I the probably, dynamic maybe about I those Great. and new are with into some, And how against XXXX little into have we because know then a played existing sort price play increases sort of you then

Marc Baumann

for clients you demonstrate them, about value the if hardware money you their who digital that form They create to we would solutions if you marketing in think, that the bringing the both software are I their those that. prepared and assets a them mean, and the or can show strategies, of to a more better expertise, Sure. fee fair pay also can experience people when clearly, digital people Well, talk, like operate and bottomline. that strategies, we to I assets as to operating for consumers talk manage own

-- the that so business services. we asset be to paid have the for we provide a the solutions low be we solution able those to never people for if are started as cost we and try to we that and be And to do that find that, always then owners. thought value fairly have creates most And

car. to I that in lot inflationary parking their yet in comfortable also respect not gotten past by lot are on itself, and folks mass fact of the mass and to being had maybe has public transit for have writing think, been so most they rates in of there’s passes the They the often transit. driven increases been a a in that monthly cities With on of a lot used

or and definitely of is lot as at work is there facilities so are And parking other before, higher and cards to often Uber is higher more there commuting gone the travel monthly and than and to for consequence, parking Lyft, more parking parking by But as was monthly a time ability parking. to the and course, a same have places of times so waiting rates raise rates. there discounted parking, daily the to opposed convert

the where we parkers in clients, the daily advantage leased bring operating ourselves of and advantage we bottomline for So can actually from from point are parkers, we more monthly profit those point facilities. more of can generate fewer locations, if

we and now. we out pandemic around going changes the have still ourselves or operate leased there are in pricing are a our where tools locations. were we recommend for dynamics leveling us to that increases that’s we big but that inflation, parking our to those of scraping, developed to facilities rates clients competitive enables the at our economy, So on, off generally web like But coming have

ourselves. rates constantly So for monitoring we very generate more and clients more and opportunities to carefully it profit for increase and for bottomline parking are

Marc Riddick

Excellent. Thank you very much.

Marc Baumann

Marc. Thanks,

Kris Roy

Thanks Marc.

Marc Baumann

You too.

Operator

call turn over am Thank for time. back any showing questions Marc no at you. further Baumann the to this I closing I remarks.

Marc Baumann

and today. thank you all us Well, of you thanks Great. for joining to

you how Take so and can are bringing for have we working panning update to after better metrics evening. idea in out future, May. some good we about have new to tried look we targets excited prospects of that a We are another the a get early see and we on lay QX care things our and forward what and out you

Operator

all Thank you. and for you does gentlemen, Ladies today’s conclude this Thank conference. participating.

disconnect. may You day. Have a now great

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 22 Feb 232022 Q4 Earnings call transcript