Earnings call transcript Q2 2023

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Operator

Good day and thank you for standing by. Welcome to the Second Quarter 2023 SP Plus Corporations 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 over to your speaker today, Kris Roy, Chief Financial Officer. ahead. go Please

Kris Roy

and Catherine, everyone. Thank good you, afternoon

Catherine of SP said, Kris I'm Officer Financial Chief Roy, Plus. As just

Welcome to our second conference call following the earnings. quarter release XXXX of our

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

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

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

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

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

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

Marc Baumann

combining profit first the everyone. levels and quarter afternoon, and were our adjusted innovative to growth By Plus. highly year. for quarter expand SP is workforce, Kris, half effectively this we Adjusted second with in market, you, strategy. record for a thank Hey, both strong on long-term adjustable and another trained execute gross technology of EBITDA This good advantages, at solutions build and competitive continue our our

net profit growth our quarter for a up segment, driven year's quarter. largely almost is strong which scope by record expanding in up in due second as the well locations. provide Plus SP rate, double-digit growth success last existing services second continued at XX% of reaching solid Adjusted growing performance which to commercial at new our segment, above and This X% a was increased both winning was new aviation our locations, year-on-year, business, we

profit XX% the the we XXXX our we the capabilities Commercial healthcare, positioning of nearly Plus achieved all of segment bring during added recent venues. hospitality, and to adjusted by event net digital in We half the our leader XXX new At transformation of with XX locations a as succeeded verticals first new same the quarter consecutive is highest location retention The gross second our industry. locations quarter, net growth. in memory. large time, SP to led across breadth increasing clients ninth in rate growth was added exceptional, location of new net in

this anticipate to to program expectations traction. rollout and with concierge The service performing we service airports we second organic services, and renewals, and to we wind gain near well reflecting continues contract Notably, adjusted with benefited this increased our QX year-over-year, as expanded airports. launched Turning term. additional in at profit global is aviation, provided XX% we new XXX gross both growth from airline airline curbside a the above as acquisition as pilot

to experience. Gross grow airlines to in Also, enhance XXXX solutions we continued ease congestion and provides double as are to quarter, the from expect additional of the a the cost-effective percentage a second way XXXX. contribution on onto profit adjusted other we the quarter to and do year illustrating travel we bring technology which Sphere our our the gross track program, for the for SP market. new deployments, locations a during were provide added currently technology More and full standalone Plus not appeal way than they're quarter where the services solutions, addressable the the of second of expanding profit

performance, In effectively addition growth in our second to achieving in succeeded we strategy the long-term on strong executing quarter. financial

to the technology solutions is First, which a as city transactions as this strengthened and example by Sphere position in resulted outdated already we A implemented We leadership technology Virginia. equipment Richmond, we operations for our of existing revenue. clients. in with replaced new and our innovative solutions, of has significant well boost the bringing superior great overhaul technology increased

Other former was a large benefits paper to scale performance, a project into operating a hub. reduced include that a development operating an plan shopping completely vibrant In for to SP digital transform Plus chosen and industrial consumer experience need Baltimore, parking eliminates ambitious and and frictionless improved tech-forward for costs, port entertainment tickets. the design

solutions Also, positive street awarded XX the programs contract the business. on we an operate needs our We're facilities city. momentum in the consisting city parking similar us structures, in and meter aviation the one experiencing lots largest of add-on the manage demonstrating the to services of where additional are of for off Los how and United of already an our surface well parking meeting street Angeles, States recently

and Recent Detroit renewals Francisco, airports Palm were include in at Airports. Omaha secured aviation segment and new San Beach and contract Buffalo Metropolitan, awards West the

In started to an Coast. at begin at we're remote Airport, shortly airline regain on destination Orlando service. West to the addition, we'll and remote major check-in tourist traction recently a serving services operations provide with sponsored airport our the beginning airline check-in up We

domestic our of travel. our XX% be to eight available addition account on this additional are call. hope check-in about We services more you to talk now to of able passengers with which And one the airline, to remote win next airlines, traveling for on

SP second operations. continue manage to PXs Secondly, their monetize revenue role our working universities or and partnerships are to Plus market helping public-private achieve together their with addressable our we that parking to in being with increase bring is synergies assets quarter. the

program The university replicate in campus. to large successful another the expand Ohio us on in so state has university upon that their at and has it one asked been

area faculty, we're the visitors continue on enable is Our by or of to opportunity to technology to we inbound our Based strong staff, phone, success, success grow. pay expect students, text. deployment, the and designed to to QR activity initial code, PX via and this of replicate seeing

services. launched with colleagues our gain and SP parking combined where to to expertise leverage Hobby revenue our working Arrow recently With Houston's respect Intercontinental relationships our system Plus to We're further at together Arrow synergies. Parker online Airports, already synergies providing management reservation we parking additional Parker and was

and check-in both consumer street indicate technology services and are curbside the XX% well These on-demand Third, venues parking, and remote December, transactions concierge. second are investments. payment we quarter, at up in reservations on X.X and Plus for off over These preferences. platforms transactions technology on for examples Transactions as million and to processed XXXX. client airline our with and transactions processing as we almost continue sequentially. leverage well demand June up large how aligned SP In monetize include XX% our

acquisition comprehensive provider to believe this solutions municipalities. SP integrated solution applications, the announced and on the helps of clients smart leverage for of and we demand management will and clients Plus advantage digitize from permit university looking from violation take certain mobility that that for campuses. them to a permitting their organizations simplify common complex parking transaction enable Roker, that We of municipal fully week enforcement last finally, assets And requirements of healthcare city a the and are

technology third our deployment, cutting continued element nine the offerings, made growth. acquisition the we've our commitment technology is a which the last to of of months demonstrating is This pace in accelerate key of edge

to Now, Kris to I'm over turn the going financial Kris? review. for back call

Kris Roy

year us you, Strong our and the Thank on about guidance. results. second our reaffirm we'll enabling comments performance quarter, quarters, continued Consistent our momentum prior adjusted financial in Mark. to focus outlook, with full business

Adjusted year at gross as to solutions business over attributable excludes in the and successful Adjusted at number locations. record both profit, a same enabled profitability deployment million year integration increased restructuring quarter. of new wins as locations, existing were and $XX costs factors, at second levels adjusted gross namely profit XX% increased of which technology and and depreciation well to EBITDA new

increased given profit us we impressive EBITDA in to million million to record in that continue $XX.X particularly to compared $XX.X gross to same position support is Adjusted to G&A sustainable solutions X% the long-term growth. year. invest This last period technology deliver

a the was $XX.X and comments Second run our earnings This G&A million compared in of acquisition second excluding on for last remainder that quarter million adjusted consistent this QX was call with level last with $XX.X to was last during quarter. rate Note, earnings call. consistent was comments costs level the other G&A on year's our the adjusted year. integration good

unchanged remains balance the for of year. Our the expectation

a year and compared in bringing higher $X.X from respectively. interest adjusted earnings to cash related year This million another quarter capital $X.XX As operating and $X.XX per period last in flow was to cash cash our of the of quarter compared XX were flow result to million second technology expenses and second date G&A generation, growth the free solid flow million rates investments, of quarter million $XX.X increased to year. share to XX.X XXXX

free million for the the to for anticipation XXXX reminder, the free first income adjusting $X tax million. of of flow was into XX% XX above cash the visibility levels tax cash technology XXXX refund a XX% or related is reaffirm for to flow second one-time this XX% our and of receipt federal year. over cash per flow a share, half we year Based increased expenditures, Adjusting of included refund. investments As $XX million, in which $XX.X gains up and at our half approximately continued the operating midpoint $X.XX our capital on

flows include allocation growth, share facility and deploy capital expect our our coupled priorities, acquisitions $XXX to cash which to repurchases. million our We healthy fund with credit organic

of of $XXX the share, in at million at XXXX all year are midpoint. levels expectations With Adjusted to is metrics. our range the are to above million, XX% X% on the forecasting profit for XXXX regard above $XXX level EPS approximately our million at $X.XX to $X.XX expected $XXX XXXX, reaffirming is per to midpoint. ahead gross $XXX adjusted be guidance to million, above from range midpoint, we XX% full expected EBITDA XXXX we're the and to Adjusted range to from

As contribution reimbursed XX%. trend gross you gross to contracts, increased margin gross and close I revenue technology models, profit excluding Based we fee to want and greater profit XX%, do management point that and of of year-to-date increased on increased correlation a out higher contract management our this update proportion expenses expect from your profit adjusted revenues services continue.

primarily approximately XXXX be million investments than we higher related to growth. XX Additionally, that technology forecast G&A future still to XXXX, support due

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

Marc Baumann

Hey, Kris. thanks,

visibility a results current half that record XXXX performance. for SP gross adjusted year and EBITDA together Plus First will with of our be our underpin adjusted profit terms confidence in

to continues and consumers seeking we our where congestion increasing, that continue strategy, support growth clients commercial, and friction its and build While activity environment to market a multifaceted SP and travel make where business transaction options. Plus leadership investments and services offer within reduce is retail, are solutions to low

transformation investments our in and technology we're digital solutions to considerable providing ahead, the Plus industry of our SP ongoing a positioning people, world go. moment every Through and make capture matter growth the for opportunities leading to innovative on the

line for open the let's Operator, questions.

Operator

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

is Your open. line

Daniel Moore

would've bit Roker. start of believe Maybe -- maybe anything Marc, purchase that it rate to run with opportunity, disclose difficult the model revenue price to more -- it's if more they in the and, can build you been little terms the table are what that but I me Let talk bring importantly, of there's that a kind pronounced you exact capabilities pronounced maybe, would more revenue, in-house. and

Marc Baumann

Roker I'd mean, for time. SP been and areas you at in working some as have the happy do No, it that be we Plus to, have Sure. we right about I talked and

to acquiring told when of platform. there quickly And that municipal DIVRT, like is last clients, market have to acquiring really gives Roker more We functionality what additional we would what ability that add and you clients in were accelerate would functionality some is found a before. things have the out bit the have some there we and the we like, university to to we those we than many Sphere cases year others. deployment us bring And

is early-stage around an were the platform, citations of acquiring Mostly, and some is platform. requirements areas the really and our current capability to the some to add permitting, complexity This of in And weren't it company. met we the Sphere digital by client enforcements.

platform. Sphere the into roll will this So,

market Sphere the certainly to sell to more proposing will the meaningfully short integrate expect out be additional place It functionality. and not this us in making compelling We big the fairly more our to acquisition. It's platform doesn't contribute it P&L enable a in on quickly, marketplace. It's anything opportunities that about in run. this

Daniel Moore

Maybe Maybe talk examples bit that Are use or can little kind helpful. changing opportunities, a contract perhaps. negotiating come incremental about an Sphere specific positioning these renewals gears of the as extension leveraging services Very is cross-selling and example McCormick there your you're Place in and of switching recent winning up? renewals. as how

Marc Baumann

a their renewal. Well, key you Place many, the very complex It's extension very, we they operate we've sure point facilities and client served efficiently, operation, Yes. in ingredient five-year and out, a for I'm as many that McCormick Chicago. in us get recognize a It's a did really we for years. with that was very

friction. are convention But just the center, from clients whether where for around away movement in an in or a either through venue everyday and technology actually And and McCormick a airports problem Place public. general in Sphere can or and bags solving that's bring of solutions people congestion we're curbs in event like reduce traveling to the looking we

in those for a not And activity is it's really clients consideration what the big people we've before getting before people large over. learned having venues starts leave in and

transactions, technology, tools check is but it more And people in easy quickly the that a lot credentials our it than process to making course, out to to have out. in simple business, and of It's as to get operating actually do as get So before. with people and of that. with and legacy we for

Daniel Moore

traction. out concierge me, Excellent. jump I'll significant Last like is and sounds queue, for back in to curbside starting gain

again. kind airports, alluded as to those the additional also critical on think but of pace coming conversations? of more additional probably detail Any in the I quarters. Thanks you months, airline expect some agreements

Marc Baumann

garages in be airlines instead I proprietary and had over tool, And offers of in the we've which Yes, address remote commented, to at that from check-in some as checked the airlines. now that. airport, particularly facilities to glad eight Sure. you can know, curb. seven cases also And years I'd in conversations away represents parking of or but the deployments the ability accommodate the people domestic think from I other as the of lots the pre-pandemic other XX% curb get parking

through about it's So congestion reducing technology.

ask to model the airports And model. lines or business to prior to the pandemic, them was or a sponsor cruise to and ports go

of that our that's behalf stakeholders service? recognized be or consumer that model is. team pandemic, pay in provide from the coming sponsor the there's concierge cases, behalf works free to of what of Do on pay to do public. service the on be a out and curbside the other So but want that this pay a many was, for traveling was the benefiting tool, in And leadership that the a I lot public? so want beg concern consumer there's And facing of interest I really in, really might

And airports one airline. it we've out with XX to rolled

back, And having airlines congestion for airline believe levels. model's with mentioned are the airports go the on can be of But pilot we second it and to travel way remarks, just to airports going successful time in or are have service the inbound from volumes for beyond sponsored them this to on, there's in. build and many a there. volumes provided. coming additional first are continues because to like also particularly doesn't and the But this prepared pre other that pre-pandemic join the that pandemic we adding above offered that airline, to cost a verge levels seeing, the period, this interest would anything free that some the we're getting be construction the we're as travel We I

the And model. idea so, the they're willing to again, entertain, once sponsored of

an only public, behalf so, the hybrid on for to is might or airline case. be it it's And now us, paying the whether of for by fortunately pays out either potentially it's And those of the whether as the client the of airport even couple public we're in But an going technology model or it, a the bringing rest. subsidized well. same pay then the and for question public where a

we us for So, marketplace. right check-in confident the very for I congestion, what's is models we to experience. in tool think think are the that traction have now gaining feel exciting I reducing And see the both pricing

Operator

Thank William with from you. next question Mulrooney And Tim our comes Blair.

open. Your line is

Tim Mulrooney

appreciate is, look I at as the XX% well pre but first a looking to gave we to 'XX, My XX%, XX%. the a like X%, cost short it's that, levels is I'm remain above and if a XXXX, technology question or I year? the percent XX% just pandemic been around color structural and structure? SG&A, investments this you you should term the SG&A increase in back the half for to change I your in of expect Like, due SG&A around gave, step to this of levels at Kris, all has that guide sales, similar temporary in there XX% like but of beyond

Kris Roy

mean, no. is that I is short Yes, Tim, answer this the --

on growth, business opportunities don't where terms seen immediately terms those some of day investments I to of new wins contribute think, really technology, want investments. we Those of have make to in we one. gross in profit

us in growth to And single term. so able these the think we deliver are be terms long high are of that that things digit out for of providing to there kind in

that some this year will next into latter and are the of pay year. investments part year there this So, in off

forward investments. next year. dump to as the move So, operating we're that this that's going some leverage to P&L to is through to with going and into a see there's year think this trend not I kind and we G&A continue We be going don't where of continue

Tim Mulrooney

kind CapEx in now, should on percentage question go your million, you're that going investments be I Is the of look a down here? Same back time? like P&L but to X SG&A, another then story I million structurally as situation Or making I XXXX. XX in see the that X same this with million, million, XX a million, It's different of CapEx. see, year. sales million we XX at over as are and XX

Kris Roy

we've certainly some investments I last year. think, made large

if 'XX, to of it think year. Certainly, around as CapEx. we're was look it year you kind on getting terms basis, it CapEx of relates around I this uh, there that same point at this a 'XX, right trend to in

I kind think part to the the so in back terms we range. in schedules, of million million XX said of XX of or a

think for this I range that's good year. a

there that things also you're we of I CapEx, don't that and think sustaining think think bit. focused slightly, allow upper think I And say while I take kind we these future to want don't there so, benefit years. as down But to develop opportunities I can it and couple through I come probably certainly, that faster look see we are will want can is, would Marc maybe us off growth. faster? see come to next are to down that table mentioned before, clients to this CapEx a we expect things, to investments grow we going facilitate at those has the I on be really make the levels,

Tim Mulrooney

makes you sense. either. do wouldn't that We That Understood. to want

seen. on your tangible really solutions too Do mean, and for levels, solutions about to execution? on I is near think say we've your a technology more having it ever retention it's more your high XX%, just early services those impact make rates stickier retention are one highest the that Just it's I or me

Marc Baumann

so of easier one-stop have that do those client that a will a we fewer they stickier. more do Well, options I for client services. the for have is they terms everything. nothing make to The successfully, elsewhere than And provide think in looking us and our to provide a things thesis shop there's they

various or the needs where not just above are parking garage, parking we needs ground verticals we're or in lot wants a needs, all the whether it, technology both, and surface a and really but permutations simple And of people providing so on there client parking. provide to it are boots scenario

think in make from I our more-sticky the bring think and operationally, the manage to of does so, in think, that also invested situation fact client to aren't to some And I complex ability environments us benefiting, the are requires, there's not base. have technology really struggling and I others that's We're along technology, delivering competitors what many our the and who technology and lagging client. value if are

wins about business, were new objectives, who And thinking clients SP and is of that thinking when there reflection my to existing so, the are best deliver Plus. a positioned our I retention our think business against they're

Operator

with our Thank next come Marc you. Sidoti. Riddick [Operator And question from Instructions] will

Your line is open.

Marc Riddick

was you're that as far new net good. the bit contributions, So, sort dynamics question, retention you wins pricing maybe a seeing renewals, you if the new if about certainly obviously and XX% appreciate certainly as the I contributions wins. of on because stretching as really on wondering color and talk to maybe really, providing is Spears you talk as, the What, could of well some technology little out

So the maybe talk a up, of into about little realities. sort segue they inflationary as maybe pricing environment when and renewals labor Thanks. bit the then talk, dynamic maybe well, come could and you

Marc Baumann

really charging pricing amount that as their long for opposed a a percentage are would revenue. I to services bring the a client a time. that as solutions to what say that's in I what Sure. our much is we're talking partly the I is the about charge reality And hasn't we of competitive we or consumer technology what long, And small think and the facility pays. dynamic pricing changed of mean, manage very for

technology the going friction at value the looking looking, and experience, at that poised execute low client's I a to services, who so, the it's to updated a they're who's think looking is best when is whether really provide consumer And client maximizing or deliver profit.

pricing competitive And environment that don't changed so think has that I much.

platform, are it companies that the no the transaction Sphere things for those we're lower that we're lot than some or of as to And a cost clients traditional charging transactions. offer a equipment One new that's to at that's volumes locations the fee. transaction cost to for parking of we pay able a have if high have maybe asking upfront us and of little developed is the are the don't consumer because

and prospective or the upgrade we tech a and capital antiquated ability capture have in And not revenue to not their that pressures more client and of client course, higher to a to our important it, as feel they having outlays has have. the an or lot technology, and people might both more platform, financial have so priority for as clients And interest make reliability current make clients. a rates like, of and the is outlays of prospective capital

there's those they labor in that significantly drivers trajectories. some I significantly. big think demand the delivery wage terms reset in rates of went pandemic, think there of and a coming many the terms places. in on growth of rose out plateaued the have like, workforce of Obviously And moderated of was weren't people industries, in the a have for course I lot their of challenges

affect it's condition our P&L labor fixed type is labor know, to much heavily attraction that so, on business fee skewed finding of And or in directly. they as don't are it was we on ago. you course, passed costs year that contracts contracts. are But in the another toward where the increases client, and model being management And so in our general two a the we're better of years market say than said

Marc Riddick

lot the if bringing is though maybe maybe as vertical touch but or as well you active bring wondering geographies sort and I on, was any any you're a it that the prepared there wondering shoots, you seeing could comes others, particular was I us broad if date could areas seeing little are greener a than seeing gears. that as in that green there based from new like. seems then there's as we industry And on that than activity of are wins, It strength the are if us when the as sort it release more up to any business shift Great. are customers are quite little of that to press the far wondering remarks of seems you're others?

Marc Baumann

Yes, point. that's great no, a

You and normal. activity become based. model has, it's know, hybrid course, strong part new I seeing of the broad there's fairly the everywhere I most think, mean, for I'd say the economic we're working

there's certain a days work the week that of serve days certainly have the demand of week as for demand. lot there's parking so at as traveling of and have their the people have that that businesses. those, looked And less people other But

They're residential office a properties. now daily retail, use so, buildings, costs are drive really business Do interestingly fact mixed lot and technology have do know, out and to innovative commercial growth new my I new And saying, deal of and more parkers operation? with in monthly bring our where can solutions the parkers? of I is there locations technology are you that hotels, fewer that coming from,

the operating and yield experts of and and we creative priced our and are parking we operate. tools management tools, be able marketing scraping to able on have that technology, about to we to demand costs parking these programs, drive what really and through digital the facilities to clients for analysts we ensure out maybe web the that are So, the our to how parking.com drive through do able, do digital our rates parking advise app, I business, are we think that optimal are should solutions drive optimally take efficiency people mobile super with the excited are our course of our how

growth and And base. our that portfolio. normal same seeing think, I much to behind markets, about nice reflection economic the pretty markets and major in legacy uptick are, a because a New Southeast of the And big now these we're just base pandemic in focal even people that's it's lot, many across that our store of migration. are York The is But we're Obviously, prospective and experiencing others a times taking point seeing places returned Southwest and place or people. out some have have like of our are fact us. more client in for client our had congestion the

Marc Riddick

the me, the then think was preview And think, notes. our of one the for like I did last after I we day announcement Roker acquisition

to seeing though but acquisition ask but what the though, and little as valuations bit looks if is out of technology pipeline want a if sort it to of certainly date sort of us up certainly priority did and seeing I one of what So talk I to the up you you're pipeline grow out as there. as wonder there, areas, as there's It's kind of there. the potential maybe date of you you're could sort key kind about seems to far like bring what to us more you on bring room

Marc Baumann

some have finding I one Well, long that actually technology companies a the technology the broadly. comment that what at it's But and clients space, certainly, early-stage more of is seeing that sell time. But are functionality go definitely we're useful been is there Chris maybe what comment they're we -- developed marketplace. in slog a a to Yes. slow I'll is can that have on number think

to the that so property sell I industry to their come activity That we're "Hey, in technology, that they large very quite business the people we're management our seeing this. bit and out a and to so are innovation, challenge footprint, somebody is order market geographic already to them around in us get of think need value ownership going fragmented, of some with inbound a like realistically, saying, has of because to and their are really is realizing the or the

have for looking business, selling discipline our is we're have because So say, road we a map growth. accelerate really going and we our to tech to this unfortunately, at the business, our

to other mean looking we the then sense, that a of operating in acquisition provide That not at provide own capabilities people acquire can accelerate the platform, that well. capabilities Sphere can't provide, it we businesses as of our for value. good can ensure We're we're get interested but deployment if sake, an Sphere technology not its that makes it doesn't the platform, can

would that create valuations value in and dynamic But and open for us to enable Certainly, to market of we our opportunities business there. eyes changing opportunities technology keep over that acquisition, year really the by seen shareholders operating our the we've side, I making businesses of think at this I out are terms acquire say continue to on that past because ears

don't who I think is an we to do of slow-growing is prior this acquire that business a what calls version of that mentioned on we've kind operating are. want we

leveraged What deployment to solutions that to grow that continue maybe the our want think is or technology and and there opportunities through are could speed maybe be we I or that can technology really that where business single-digit basis, so into find hasn't as high opportunities. of the at available, there up business operating that our we some

We continue look continue to for to eyes we keep open. and and ears our those,

Operator

question. next our for move We'll

question from Research Kevin We Steinke Barrington with have a Associates.

Kevin Steinke

modest the a if profit gross gross range growth So growth sequential in on the XX%, a XXXX. to growth the profit gross pretty a high conference gross basis with of in call, we two to and next in the I you quarter expecting guidance I significant talked end second quarter grow think or second little of on XXXX, throughout quarters, just profit of really XXXX, about for your assume above nice it's half and first here quarterly sequential profit led about end had the high sequential bit more here over adjusted in your sequential so

bit XXXX? any flattening be just the comparisons and that sequential the the of there should reason as out of maintain may is think mean, little I is guidance? about kind fact we Or into second half get we you there conservatism a So that of

Kris Roy

Chris. Yes, Kevin, this is

at our and our business relates to it we as as I the well think QX, had look some as new location strong strongest of we quarter, have robust that's certainly, technology. a And typically certainly, operating traditional wins lot same-store you growth. if

in of is certainly, say pull I that new forward So we business that of in a bit of terms contributing to back some part it. little the there's would year. maybe the expected

growth business what in in on be business. growth that over the would be the that would to some the by continued we think mentioned overshadowed call would I I the is seasonality the see QX expect

strongest and at the look QX you to be this were think our look mentioned I QX at gross still if is you I profit. think call, to quarter, -- going if on I

year. at QX how two quarter you typically we're generally slower is if and of going kind up think QX of one. the to maybe remainder QX is sequence the number always is us. I So a number look for

So of about a it I sequence basis, of think terms in if I terms think you think in that would help. that

Kevin Steinke

the Okay. expenses the lease on similar given year half profit Great. a But would does pace some similar. growing management contract profit expect about adjusted will revenue very continue, rate. I different the switch Normally, sort the be both stabilization of in your to helpful, that dynamics from of even and in That's might the at trend similar and growing you I that gross -- for a fee though and at down wanted go types, to reimbursed the guess, the there, when comments excluding follow to a revenue a very based base contract first contract, gross imply up or revenue that lease recognition you just recognition, just on

that if seen if stabilization wondering, of side. sense sort on just So or lease the makes you've some

Kris Roy

Yes.

-- Kevin, are. think think I we I

terms you I kind in of XXX lease static to It's numbers, locations if number. that in been quarters. has location the look that of somewhat last think leases XXX been at a certainly for few of the

feel of kind definitely I So feel I definitely would that's like static. --

into revenue gives management in We come on how certainly the contracts, business. we're visibility momentum have of nice I seeing increased think us our and terms that the

like what how color of and revenue think necessarily a but look guidance that mature I some we gross to profit. seeing giving around not evolve is SP, provide little for I to trying here do of that time think get to trying the what bit revenue, growth time, revenue guiding in questions around and does trend we're the we're into business and to link the terms around from

correlation management that somewhat technology for So technology a to there, of that that's number the revenue have, contributions I we and to I perspective the locations and of think due gross is static terms the it's profit contracts. in is -- we from and the think have. primarily close our lease portfolio

Kevin Steinke

to And their long-term pipeline and gross your development in the business Great. single-digit look growth point Does talked outlook. I wins how like? start and about your high imply that profit release, you Or some visibility, you robust to Okay. better decent that new do could are you visibility business guess, supporting year-to-date get into mentioned earnings get year? at starting XXXX into what you're visibility what the next

Kris Roy

I case. at said deliver we I us. that's gross go-forward in still profit I really would digits and think think what it's the on if we the year in think look digits high terms double good is low growth for mean this year, a a certainly, and I you of single basis,

think I at. our good we're really we business with of where in terms feel

the terms I the would high reiterate feel think into in with horizon, of still out really single-digit that I as growth gross business. we comfortable growth look we profit in

Operator

showing I'm I'd no back in to for queue. turn to questions Baumann the Mr. Marc other the like remarks. closing call

Marc Baumann

delivered rate you, ever joining thank fastest organic growth and and as management for Catherine, our particularly reflect QX results about the very Thank us. you, we've for they obviously everyone, We're excited because team. a

again that quarter. look about you. forward and you and the to talking excited next a very year, Thank we're successful prospects for So we to

Operator

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

You may now disconnect.

Central Parking Finance Trust PFD TR CV SECS (CRLKP) 2 Aug 232023 Q2 Earnings call transcript