Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2023 SP Plus Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference call over to your speaker for today, Kris Roy, Chief Financial Officer. ahead. go Please

Kris Roy

and Felicia, everyone. Thank good you, afternoon,

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

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

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

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

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

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

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

Marc Baumann

and afternoon, Thank you, Kris, everyone. good

as at essence, technology-related segments, rate our well our to across toward in both pivot results quarter. guidance, growth In as demonstrating progress growth. increased outlined Commercial of the number expectations for we're we support three Aviation XXXX, that we working. both our the strong made quarter longer-term traction and gaining full First Gross a accelerated double-digit areas significant a start profit represented objectives year a strategic in our last is and

And now. let for me those you recap

First, bringing what the we innovative position said strengthened our in and quarter superior first existing doing leadership and operations solutions do, would clients. by to namely technology new exactly we we

metrics profit increased quarter, align Our the XX% strong by with underpinned gross Commercial goals. strategic segment that first in our

profit deploying in office in reflecting segment adding the technology cross-selling At success verticals, time, considerably services. as vertical, and increased our our well retail solutions existing includes we quarter, business residential Notably, parking Commercial stand-alone same our increased locations, gross new and same hospitality, first activity buildings, in location our of particularly across the Sphere which as business commerce the also saw complexes, mixed-use facilities. and many across

locations in and reinforcing superior quarter believe we new technology segment We a the leadership in bringing business, location the which XX%, And by best of our Commercial successful our through industry. on retention offerings adding XX first new in is we market were differentiating and service maintain the our solutions very rate levels. net in

as we're travel Aviation international rather to services our activity behaviors is increase driving passengers are airports is of more longer, segment profit rideshares XX% as utilizing and taxis average or length increased gross as seeing of favor consumer utilization travel returning. than Our Namely, the continues and stay travelers the to travel.

parking of airports utilization solutions are traveler deal in improve As experience ever. more levels that travel and travel of record for rates midst than our important infrastructure optimize airlines and and with the and demand international strong improvements, the

curbside as management parking for services, than such airline check-in and it concierge has The level activity memory. in is proposal been of and recent remote solutions stronger services handling luggage

our continue we cross-selling synergies. and addressable our expanding realizing to market in objective of make progress Second,

the deployments of XX% indication perform opened our investments stand-alone the ground, for last In completed international first In that in without substantially increased our October boots the Plus how technology Sphere of which our technology acquisition, have offerings we in increased our market number solutions Aviation, the airports addressable our any represented of quarter, at segment of of on locations added Commercial and our SP a AeroParker in the market. clear appeal which and was services. the we year, of up new

progress able on to with in made joint this significant the capture horizon. developing and confidence that working that have on recently us revenue the We're area AeroParker gives offerings together be we'll synergies

about our we monetize is technology on the leverage us have call Plus investments. technology digital third objective transformation and our the last and clear competitive of industry leading to was edge. a spoke provided The our in parking investments with SP

of airports, locations, the technology on adaptable meet across Plus broad a both range and client XXXX deployed are million like, situations enabled more and from up venues processed the XX% needs. in quarter first quarter than to And and of off-street XXXX. solutions on We SP technology platforms and transactions that's of X consumer fourth parking operating to event the our

more goal is to profit to us for double technology compared and our gross in XX% solutions our by track poised puts XXXX, to achieve on XXXX, its technology XXXX. gross than profit contribute to of Additionally, this to contribution

our first the summary, execution a out and we're performance laid strategic on months ago. with quarter our few pleased very we objectives In

share significantly support beyond. that current past and addressable areas for to our to have in two levels market, expectations XXXX Our service and our investments and excellent technology expand gain on-site us enabled and

the review. to financial Kris? turn call for over a back now Kris I'll

Kris Roy

on I our strong to for to us start Thank report our you, am XXXX, positions full-year. Marc. the to which pleased guidance achieve

segments. and will business restructuring of technology integration the and GAAP depreciation, first deployment presented wins, locations, XX% strong my by our both solutions. year-over-year costs, Aviation million, results significant quarter our performance profit, are increased in to at which by double-digit custom. This on evidenced broad-based driven as Given $XX.X usual the in is I our and financials was growth adjusted same gross as new that release, Commercial elaborate excludes XXXX adjusted growth

noted we costs to well investments XXXX strategic as XXXX. in innovations quarter, million As support high been beyond quarter single-digit expectation technology $XX.X and last and integration, G&A, our This to led our first first million, profit adjusted sustainable for $XX.X quarter the restructuring, growth, excluding this in of initiatives to as compared year. making we've gross be growth other to

the to interest quarter mostly First XXXX earnings higher from in $X.XX year first quarter, primarily capital investments, technology. and adjusted were $X.XX D&A to compared higher in ago share rates per due

free the $XXX,XXX XXXX year quarter flow quarter. $XX.X First to cash compared was million ago in

tax federal a reminder, As a the benefited first from refund the million. receipt $XX.X of quarter XXXX of income

quarter XXXX So cash flow first historical is consistent more with free our trends.

to approximately the above free For in share. ]$X.XX free to [ph] flow invest per million to is tax refund. flow million cash XXXX for capital free higher cash XXXX or of the anticipates levels guidance full-year, $XX continue we'll share] $X.XX at expenditures, we of as $XX cash XX% adjusting technology. This flow anticipate per levels midpoint the also

our together generation, capital us acquisitions repurchases. provides $XXX with cash fund ample strong facility, to and growth, flexibility with Our organic investing million share for allocation credit priorities of our

on first XX% full-year we full-year to visibility, gross to guidance. reaffirm million. that from midpoint. during our the XXXX expect we we're range current profit at end, XXXX still our repurchased level $XXX the of shares More specifically, XXXX, to $XXX To quarter million, pleased Based million adjusted totaling the $XX.X above

our XX% at million from expected to per to million range EBITDA And or approximately EPS adjusted range midpoint. the share at $XXX levels to the share, $XXX midpoint. Adjusted expect of ahead $X.XX continue to XXXX the per in above the XXXX is of X% $X.XX we

how the guide year, help and the in we to keep seeing the of following you details. are Now, mind rest

locations, solutions the First, as year, trends. successfully business seasonality pronounced experienced, seasonality our we are our technology-enabled deploy half existing we both in gross expect we see a historical second in from in to of our than historically is at less departure more with progressive which profit that new to continue increases have the and

expect have our as believe growth, XXXX profit previously margin. to reflecting mentioned. to continue front, adjusted XXXX, QX G&A we to gross G&A wise, we good for Pacing remainder the on approximately the and or be the discussed, year accelerated higher our G&A of Second, than conversion rate our as our support we leverage investment increasing in to is $XX million to run G&A our a expect EBITDA other fairly EBITDA investments thus year, improve said the throughout way,

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

Marc Baumann

Thanks, executed very growth horizon. Kris. be the to quarter very we encouraged on and continue the see in the well by prospects first We

that one Plus' SP full-year In we guidance, performance beyond supporting demonstrated continue our ability achieve to believe addition growth to our new trajectory, XXXX our first quarter expect XXXX. to we

in at a capture our scale, commitment single-digit profit opportunities the and capabilities, at and confidence rate. a supports have front which of to We EPS substantial and gross in us, XXXX greater growing the increasing beyond EBITDA rate high

turn up I'll that, to over the operator With Q&A. the to the call open

Operator

first Instructions] Blair. open. your line question Mulrooney the from line comes Our Time, you. Tim [Operator William Thank of is from

Tim Mulrooney

afternoon. Marc, Kris, good

Kris Roy

afternoon, Good Tim.

Tim Mulrooney

being the I'm Just the to make that about about improve being profit back of sequentially quarter in dollars talking versus expect the the the gross sure you seasonality. second correctly gross highest half Are the saying year the year? year throughout on were that kind to of that you rates profit or last point, growth you higher understanding throughout that guidance, your just Kris,

Kris Roy

points on comment I'll Yes, think maybe touch I I two One, is Tim, there. think right. first your

we the I a in being of contribution or of I look back little terms as year see at contribution. year, profit the gross rest GP the of think part the would heavier

business seasonality think that you you're I as to our think going expect, see gross a growth I and less we the perspective. at from profit look

quarter. you'll I maybe think typically, strongest our see so, being QX And

some as terms I see think we just and thinking shift continue can in our in accomplish grow growth. of that we're may improvements what business of we out to terms

it year. So, sequentially, ramping think at up you kind the I of rest I of the look would see over if that

Tim Mulrooney

higher helpful, of business driving so recurring or becoming and that a is what's And technology more I of understand, That's change? the just deploying that that and function Kris. a piece

Kris Roy

Yes. a coming. say bit that I muted little would technology technology maybe fees is are being seasonality that the and the by

strong think have business necessarily I this the comment really on new would that pipeline. also I is say but we a remarks] – didn't [ph], and in I [prearranged

of see some the rest new out of wins, through we as XXXX. business kind I robust continue So,

Tim Mulrooney

Sphere locations, the point, or those, impact That’s how a Sticking the commercial parking helpful. contract. stand-alone modeling as you they the standpoint thoughts Sphere so dollar in new XX without Any model? management would I profit technology I'm financial Can could gross a provide on on business, really might you. out Just the additional guess, Okay. or lower those thinking about margin? technology those quarter contracts, Thank the where in you've broader are deployed are higher on talk particular, helpful? about be solutions you

Marc Baumann

we of I'll Hey, Tim, maybe that and fees reason We've that couple number last earn the we Marc. measures is to the is our know, through you around illustrate platform. SP two make that the this modes transactions from transactions processing And one did comments is introduced of that. designed around platform. that other on quarter, from is the is And other the Plus as the a pivot

– larger are some smaller clients. fees, create and some of for them our fees are Plus, create some benefiting fees, transactions And of SP those primarily some

more penetration a really of it's toward the and pivot So, technology. measure digital

QX and talking how than And broadly. it's so, when transactions XX% that's about we're million that last really more talking X about of the year,

talk that's what about in our generated as platform gross we can comments a to in our clearly And and expect XXXX. be technology X% that when investments on technology Plus. fees reflection of drive we last XXXX, those Now monetizing our quarter, of about for focus the we and indicated fees, and profit technology in we in XX% about SP

that's clearly even percentage growing well. as of grow, to be gross company a though going profit, as overall will the So

comments, remarks And it XXXX nice fee XX% us, clearly, about gross what we've double into by they the were in that. us expect that's my to my – going in think, that going that's we to fees And on to that I dollars XXXX. seen profit the we're in So than to to that down get were profit in gross contributor prepared going was that be progress in the XXXX XXXX, level XXXX. illustrates be I think to larger a really in going track which

Tim Mulrooney

count Got it. Thank you. And give your location could solutions? update an for guys gateless the you and gated on

Marc Baumann

our in talked, we breakout don't new as gated No, we had and which have didn't. if that we we are segment, clearly locations which we obviously, But – I And don't gateless. with know think Commercial we are XXX between, added a I us, we but

Tim Mulrooney

the just more No me for One curious. worries. I on was tech.

you U.S. deploying here as is Just highlight you'd advanced here be popular any curious that solution I the to time, with had acquisition, able here their thinking know reservation but early in Europe, if with AeroParker success maybe? more that well, in the deploy that over

Marc Baumann

Sure.

has using platform and the to was decision where client along presented a we not and that and forward that the the team, think technology the client's you with have the services, I with made already, we that, Plus we airports comments, may opportunities were a where course, noticed AeroParker go of existing in our use, to we've and Sphere the in AeroParker. AeroParker client about talked parking handful have with capabilities was already providing have management AeroParker where SP of

that to its clients expect on AeroParker existing necessarily add portfolio additional airports in us hope although America, is early to base. to the AeroParker client not in same demand would into that to there's At continue – SP bring the and So, we where as to within North in America, made the Europe own is existing I expects of airport to that future. Plus, as AeroParker that well illustrating interest and we North RFPs see strong we be to by think and responding a in on time, decisions the operator, are

Tim Mulrooney

questions. much for it. Got Thanks my so taking

Kris Roy

Tim. you, Thank

Operator

Daniel of CJS Daniel, from Securities. comes One open. next is moment question line question. The the your line Moore for now from the next

Daniel Moore

for you. Thanks Thank the questions. taking and Marc Good Kris. afternoon

Kris Roy

Hi, Dan.

Daniel Moore

in Appreciate see the to you concerned. new And far as as accelerating Commercial. good business alluded color the the Very Kris, well expecting as cadence wins. is location strong to net growth

going of terms to good I'm new are this there's normal? wondering quarter being customers, the think where forward. is Thanks. business, trying verticals, it from in aside it's the really new net that Was percentage, any common high a signings? a So, Just sort of in if Sphere particularly particular about there resonating? themes geographies,

Kris Roy

Yes.

Okay, record Dan. has reaffirmed in high XXXX single which can than year guidance for much faster and XXXX, even and we XXXX. in for our belief did the expectations normal. reiterated at us that new we growing gross Well, guidance certainly a clearly today we a our hope was gross the confidence that mean, profit I clip gave it's XXXX grow company, we beyond we've our we the profit and for digits in

to driven of the So, expect being we have need have we that's technology a locations to it normal but a services. technology through together operating our our existing our bundling expanded market, and new normal, bringing with offerings to by and addressable new also operating

beyond. – think, So, belief expectations that's we're this and I for year and our

office Retail are it's of what think that surprisingly, terms we and to continuation verticals, hotels In the locations. again, where last I a quarter. saw of we buildings adding places and mixed-use see continue

Sphere experiences the staffing and they're optimize enable that to are efficiencies I and revenue reduce, when some hybrid people and as the good reduce friction resonating the as to of in a the appeal of with facilities think have create technology think, mode people working. cases, to using continue I way way,

also – opportunities place We've the growth and both universities see as areas hospital well. in taking

really for solutions not those think to some which is fits gaining optimize but our broad-based all, clients is individual I provide designed So, help to a one platform, size traction. verticals are

Marc Baumann

only add Dan, for good XX, would a net thing us other number from basis. a the is really that's I

metric we I a on locations. up basis, have TTM we're couple but before, at given times XXX – think if you of this a look

the in times. that probably more recent best I've So, seen that's

was was of XXX couple that ago. best we a just had the think quarters after that I

on basis a is really for a number us. XXX strong TTM So,

Daniel Moore

No doubt.

switching Maybe gears Okay. a little.

Thanks. and consumer call I'll that then displayed talk of, I terms is airports uptake offered. the talk level and there that and but with prominently is being rates a In pay the deployed markets it in pretty about you're other basis, it where in How saw bags, curbside about general Chicago just being customers? dialogues concierge additional anecdotally accepted, of on seeing?

Marc Baumann

Well, us couple are about some we think things there's are on it. pivoting do which that interesting Sure. exciting more direction I than a quarter Glad it. in, initially a of for when talked ago going a to and of

First product, think, curbside I we of now, over the we all, paying, XX at is concierge to airlines. for where the airports or the maybe now with just consumer close original are

The are positive. So results that's way a expected. we beyond very penetration what that's very,

people inside whether that able to And not to measures is free? for the of bag going check the pay they of to One be that Are happening. at their check curb? to is have bags their

our So that the the of customers we're is clearly providing the proprietary of of and travelers factor that the service technology and curb with quality airline. convenience at resonating

has convenient. are second hopeful same it very, soon we're pilot service that It's the is paying airports. additional and surveys met make very encouraging, roll customer very to it that and well. that The a will out let and now that, right A piloting airline airline People finding that are to are gone decision expectations. for us

and ways recover it is products was then Now, that model. and might sold so these this which back airports pre-pandemic, with what's sponsored the about they becoming separately surprised has the us themselves. pay number now airport of that were airlines the us airlines conversations bit that's would that about in are happening individual a is in a little they're way for themselves congestion from charge And the other it concerned and or

traveler. so, consortium a consumer, we model it to free which it's we'll the the by And sponsored model, that paid not but is is call now have a service a, a

another think, way. I there the at one one up, is that on started now We've maybe and

on be might friction the out pandemic where think, that curb and might reducing coming that for checking felt solely of the future I pay in we consumer model. the So, have

I we're the think seeing depending circumstances place both we're going now circumstances. to see where on taking

And the back have a is so your sponsored a whereas now are season handling providing to baggage. and come Florida, we'll the they're Seattle. also other will lines full cruise at at the we full for Seattle. in strength, Port cruise Alaska encouraging And cruise baggage be last help year's be thing planning this lines be back very we're season that's the full post-pandemic partial year, going to the we to and saying, in and cruise going cruise that That's handling need model strength season year, in now of had next and as

So, and I strong that and we're for look forward seeing to capabilities into next this of think those demand as see year. continue expecting we're year to the we end

Daniel Moore

that, sneak last Marc. in up critical you discussions X terms How jump the organically ago? years, is Really in pricing customers and Maybe the demanding, potential maybe and Thanks and again. with that is that know I'll helpful, you to introducing is one terms But list also one X today of variable what just capabilities in out. they're acquired, it cetera? how new of in compared years are pulling, moving et

Marc Baumann

if decision those an parking, I'm be park influenced price based I ahead to trip, is about talking interest to I'm a that on park that's that. one airport going been planning Well, think their just definitely what take And whether incented of for where in a management, to day learned that park to it's there's to for the we're people can certainly people make yield basic you're – optimize in are where about the things to and increased think, somewhere for Sure. is. the going pricing, seeing ability the to I or

experience develop the facility. airline that what us our recommend be think and to put models should pricing their industries position have and clients, we us in help a hotel analytical team in do model tools to optimal that, quantitative the So, extensive for to and particular

to assuming that's I'm if to be too. about. But if you're So, remarks, clarify asking what will you want I not, Dan, my glad clarify,

Daniel Moore

any but they're you've critical jump that of seeing how was out little generic follow-ups. a But those I'll bit it's really helpful capabilities, a with that just question, got of becoming. and more No,

Marc Baumann

Sure.

when maybe management a think out digital parking to on, people technology for what add that certainly increasingly, for out people bid bids So, it's are seeing alongside start I we're marketing whether we're – services. putting, and just or seeing operation putting

they in particularly of And municipal commercial digital the are marketing so space, the that also space aviation recognizing many clearly, think, I in strategy. our with and but larger clients,

to to make optimize drive can demand particular financial The and a ability in a the facility the and huge performance there. revenue difference outcomes

of time, bear I create where the looking same our friction that technology to convenient and client but technology, at some to people think facility. are those also very through is to a really So for moving But base marketing reduce service our the And digital the that's help used clearly, is drive revenue come sell demand. expertise services. us to and our

Operator

question comes line Steinke open. Associates. now the Kevin, Our next Barrington Kevin of line from you from Research is

Kevin Steinke

good and Marc Hey Kris. afternoon Thanks.

Kris Roy

Hi, Kevin.

Marc Baumann

Hi, Marc.

Kevin Steinke

beyond I this just just seasonality is trying year? of do to or that the wanted to this say you follow-up comments with another in to you question sustainable Are that's specific more the trend or seasonal made. change think muted you XXXX about seasonality

Kris Roy

it's Kevin, I wouldn't just Kris. specific to year. this it's say

is thoughts at more at foreseeable the term think our achieve here we high for just immediate the as we and digits. expectations single I around what our growth can in future look

going the that because be expecting we're little a think continue in business. I of so, you're And that to more to seasonality the see growth muted

Kevin Steinke

mean, in your the gross trend have profit Okay. to decline is quarter. that sequential in seasonal quarter Yes. noticed typical fourth a I I first the from

that trend reversed You here.

you but you So, too the think to kind quarter with you grow through that? seasonality of first associated early maybe could some would it's expect tell, or still

Kris Roy

the still – in most see impact Typically, that's a American North regions. terms going think I it's the of of of probably you're timeframe the colder seasonality QX. to kind

continue think, see the see going we But I patterns. you're of think And the typically the travel so, kind less grow year, as of rest to trend, see to you I year. to kind continue throughout of that

go-forward basis. less just a on And that muted seasonality so, see you'll of

a contribution I if I of think could a were say bit, that kind just QX profit to perspective. – look be quarter as down pin our strongest gross you of would, we kind strong maybe think a me what I little from to

Kevin Steinke

Thank good color. Okay. you. That's

Just know types also there. technology were standalone you're the could if examples Sphere of deployments deployed to doing locations you where you added of up wanted I solutions. give standalone, some the that follow on that you don't us

talked of in example the parking You've code. signs as as about predominant pay past variances consumer standalone for QR kind via simple other solution examples basis? that solutions the something solution, type retail just technology a deploy of directing parking a you're you're able lot, rolling a out? in to or type on Or of of a Is the any to a standalone up putting in

Marc Baumann

option sure, Yes. the signs fairly makes putting to view, QR a of to convenience a people and point code from sense or deploy. to it's a Well, pay up and of easy scan text and lot inexpensive for giving

we've So, parking. can that talked free We're signs, that saturating places is before, as something market in had that deployed we that because continue a to opportunity be push way on. those have from long

gate put at door that in willing to spaces is DIVRT we've environments move those talked acquiring we And to a thing something to years in a prior But access, to many more for or little we other to with last they're worked want those year to that track and the that people where they're people providing be have that used a would for need is really out. company up access solution acquiring and we're pay convenient in it, that of a simply where the as place before maybe moving a get spaces. and to are can down were order down in in control gated we close

credential many And pay out going out smartphone a that's cashier now be was And that own of session able use there. equipment it beginning out, is deploy different pulling opened gate a it obviously, open handing pay offering a a the a parking to their as well. that using we option, parking start enables traditionally, then either to Often, station. to or their are done that to our can to people and be to is what a of gate, people technology on as and ticket to equipment would types be the one of ticketless and way

They'll the when leaving, enter And so up. anything. they they and they will the future cases, as up using they're you that That have low recognized be many go in possibly go to LPR gate will simply will people their the will up drive up is will in friction don't and And drive and card as they about in get. after we're information, credit situations and gate leave. can enter

that phases it cost, equipment that up in receive to in deploy to some and that are for marketplace view of deploy So, equipment. low very low from many of a we at the to the in cases, early the transactions a in starting are very our some clients, we of client. a point the of cost-benefit are able and technology to And cases, a transaction fee commitment potential generated well very off stacks

has ground the as to standalone that particular locations sign growth that well option expect boots we we and have think run, we that beginning. we talked to in don't about on using as the way environment So, a gated in to continue at drive a where technology technology, the long

Kevin Steinke

Okay. Great. That's good color.

most been this answered my point. think of at questions I have

turn So, over. Thanks. I it will

Kris Roy

you, Thank Kevin.

Marc Baumann

Thanks, Kevin.

Operator

Marc open. line line next comes of of is from Sidoti. Our Instructions] question Marc, now the Riddick [Operator your

Marc Riddick

everyone. afternoon good Hi,

Kris Roy

Hi, good afternoon.

Marc Baumann

Marc. Hi,

Marc Riddick

priorities. know on So, also wanted some maybe bit and at of players? talked acquisition what at Thanks. the are a months also some ago? little looking months, just looking to appetite technology lot But wondering can touch And offerings. us that. been is already like, I there appetite give there? maybe X I Are was I my to update maybe you've far emerging about maybe on a have of asked. you questions relative that valuations the dynamic there X look any as opportunities as maybe regional competitive maybe if

Kris Roy

Yes, Marc. This Kris. is

opportunities think that look keep continuing we're in there's eyes think, just – and you ears our acquisition from are terms the side, I if an of to open I at certainly, there marketplace. out in

could be on advance the as and need are think side to what to technology I at solution. that look our the things technology that continue to we we either do

could opportunities be some there there. Certainly,

that, of part buy we I it you what always versus As build. how think a think evaluate about in is, do

and technology, how from use at do but the perspective. for that look best ROI generate an try so, it highest and And also we

So, bunch there's a there. considerations of

kind operating continue to, keep and relates certainly, eyes we businesses, open. to it As of look our just

we're we've from an think open acquisitions. that always acquisition I to side, said always

keep terms think kind our just, eyes of to said Xx where really to, is, our that landed in we've to spot of debt. kind And So, is of continue to we've spot. then capital ears of a and always that. relative Xx kind sweet And allocation, open EBITDA on good I

where good feel for we we're landing QX. So, with

I opportunity good of if capital that as debt look to mentioned, at share deploy buybacks kind acquisitions, allocation of of perspective, looking to certainly, to think at maintaining an coverage I've priorities, you back kind potential in terms from EBITDA shareholders. capital

of think continues. are I deployment, of that So, we've that I table think the capital those on strategies terms in still mentioned all

Marc Riddick

thing. space seems particularly, hovering Great. of sort of far stuck operating wondering the work as that then if in have of us you as could that you particular of little the kind But guess. if of of there any and occupancy thoughts we're about seeing talk relatively a to what to I'm your was expectations XX%, what just, maybe give that now of seems sort But a the maybe certainly And It that? It was maybe maybe could you of – are and and forward environment. update I a favorable in though pace an I the kind quick be office talking on building activity. operating bit and about of follow-up, nationally, going return range sort kind wondering and you're as as Thanks. on on, I

Marc Baumann

experience we environment, down in new little and I friction, that the I I environment costs that's that and they And feel I keeps creates recognized state we're you clearly normal, of for office that, it the maybe an reduces those employing technology that cutting-edge both as that have now adding and we're that building clients remarks, overhead maybe that as great implied a think which Well, environment, think, better earlier low I'll hybrid in as because the in tenants Marc, think we really minimizes is my feel and a visitors possible. be buildings. commuting in, believe more a that's

I in continued, to can bring the taking those we think return So, to be seems think to form that bear for that will environments. show services I good office do in what a sort of our and place. there of demand

the kind recognition other So, coming of business. competitive of while think I from is the pandemic can to one having a to during a there out a give extreme together and that it, we've gone advantage live people

can more more on solving. interactions, more They problem have creativity, to going They're move initiatives. new faster

the seem talking be time the if anything, to the in not we're people office so, direction about pointing And more in of less. and

we're one the varies it seeing a of occupancy think by office office that also, and, it good things of for our that in a course, city. – only may I for plus for it's be that us, general. clients, driver will of demand I XX% is So, a be think office But in buildings

People And Uber have on not what returned mass transit. not pre-pandemic. ridesharing rates they were are to and

commuting gotten used to they're by so, what car, have continuing And and do. to that's people

reached And are at function fact volume car. but I the of of a facilities exceeds are likely that's thing the also airports. more just It's of that to same a the prepared in in think go cars talked about back So work, people our by to remarks pre-pandemic many has or that at we people work the levels.

very certainly But volumes travel business other quite back at parking. pre-pandemic ahead parking of leisure in travel rather levels the is of to people because think back And there. than seeing demand airport to airport don't coming strong pre-pandemic levels. forms. course, are is the of I taking We're car

Marc Riddick

very It Thank you, is helpful. Marc.

Marc Baumann

Marc. Thanks,

Operator

it I At Chief this over Marc to back to would like Baumann, time, Executive Officer. turn

Marc Baumann

appreciate in your And Take to with now. quarter. for look next speaking and interest SP Plus joining you. care again want Thank Okay. of you us We I really you thank to forward just today. all

Operator

conference. program. participation conclude you does Thank in for your This today's the

now may You disconnect.

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 3 May 232023 Q1 Earnings call transcript