BEEP - Earnings call transcript Q1 2024 | Mobile Infrastructure Corp

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Operator

Good day, and welcome to the Mobile Infrastructure Corporation First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Casey Kotary, Investor Relations Representative. Please go ahead.

Casey Kotary

Thank you, operator. thank XXXX joining performance. and Mobile's to everyone, quarter first afternoon, you us for review Good With Chavez, Hogue, CEO; today and us from Stephanie President Mobile and are Manuel CFO.

XXXX, assist we our results about performance. to release events I discussions risks These press to and forward-looking conference that management's subject future will refer are differ our number those this understanding Mobile of materially, SEC call, statements During May our you and to filings a you statements could in expectations actual XX, make and to of cause for risks.

light. during specifically call change. may, of to so. developments disclaim elect point, statements but our addition, the at views that do cause our will based Please as consider In statements some We future We anticipate made update this today, that to any are the views on forward-looking to information our obligation today. in presented

over first Chavez, turn Manuel to the CEO, will XXXX I quarter call now Mobile's the performance. discuss to Manuel?

Manuel Chavez

and Casey, for the portfolio results call review outlook thank all you, of context is parking newcomers, diversified XX Thank are which owner garages assets, between and today's Mobile for service quarter a discuss our to Infrastructure our and To of participating to split provide first in XXXX. you lots.

located drive their destinations. to an are average million whom of MSA in with assets XX markets X.X Our most population of people, about

underlying national an Thus, asset operating our In services valued income XXXX, by XX%. a by $XXX And independent increased approximately substantial. are is while small-cap financial this since asset was our has portfolio firm. base million we XXXX, company, net at

demonstrate markets. sporting are progress other in in with key events concerts the quarter results are period, is first areas. several typically The we said, and of which slowest the quarter for events, That our pleased continued year there as fewer our our

net our further levels, growth revenue compared increase asset double-digit in performance to we portfolio operating First, and year-ago the of improved income. considerable posting

to to the in actions convert our tied quarter to were of results these agreements. XX the leases early we closely Second, management took from assets parking

First from was drive was focus actively the utilization those contracts. of to in quarter managing income operating organic our mid-single-digit to converted on ability And team's contracts. that the benefited revenue on net increased attributable comprised faster expenses growth growth on growth our

And across lastly, positive we build in throughout we momentum year. to the key several quarter saw markets end expect first the that

increased, and which look revenue is both quarter results, growth which that closer a comes we pleased revenue, from absence softness in at light rates sluggish to Taking are retail picked up we our mitigated our destinations. the parking first events, Also, due this first Transient to our parking attached progressively from revenue, volume, period. see in in contract commercial particularly parking tenants average while garages derive business to quarter transient year, the category. this but of monthly the year-on-year the are always it in throughout the was which

And locations. respect and residential in to strength the as facilities, to from strongest we medical in growth remained parking end market. as well Midwest our service offices geographically, municipal see hotel monthly social With continued markets, parking and

In and our a Our across enable data pricing ability key unique differentiator us at and models a to giving locations other we trends tools technology the on marketplace, utilization is customize into us asset out portfolio. implement insights systems sophisticated infrastructure real-time providing which parking us track continued build basis, revenue to to our will to with our offerings. first in the quarter, the

asset performance work our to our strengthen of fourth conference As call, as existing discussed base. year a be XXXX on accelerate quarter operational improvements XXXX will we to the we plan we

represented step direction. Our a good first that quarter results in

Stephanie at strength after Finance CECO announced, Gohr a of have will at on President. this Accounting Environmental. of who Monday so bench joined CFO, role as years named officially Chief her concentrate responsibilities and our Paul expand President release on and new we a Corporate Vice many can us as she level we have as the Additionally, executive Officer

Paul's and his management are leadership support member team we public record excellence his impressive our a player of as track and ambitious attributes experience, growth accounting company our a him reputation welcome change plans. of as team. And important that key

I for remain like to until her CFO right financial position. would I found a And to to thank for the we her the for call turn review. role over the now willingness in would this like person to Stephanie

Stephanie Hogue

quarter provide Thank you, performance. first on Manuel, additional and good our I am to financial details pleased XXXX afternoon, everyone.

the of organic from was mid-single-digit growth leases. locations XX% revenue million This from our XXXX. of quarter across First first year-over-year from our strong contracts increased XX activity from parking comprised our increased assets of of of in $X.X quarter performance $X.X to conversion million and management revenue

which reminder, closely more our this on performance. business the moved standardized As more shift a converted with a aligns revenue assets recognition the recognition, underlying accrual to

analytics, pleased are the in our traffic Using organic with able the to locations. our it and demonstrates first achieved our quarter been of have customize additional strategy. drive to We management we proprietary offerings the as benefits asset active growth our

management assets gives better Property in control to the operating to XX revenue generation. us the managed million projected of in to $X.X expenses which year's This spending were our treatment first as more quarter. align enables portfolio, over and shift from increase us $X.X with accounting repairs staffing, the shift The with marketing million, areas primarily contracts. the expenses last such in compared resulted associated

taxes Property $X.X million slightly X million, from $X.X were up ago. year

operating million, expenses XX.X% represented XX% $X.X year. last revenue. NOI resulted revenue of from higher up XXXX of impact first quarter income net The our in net operating of NOI or and

expenses million G&A General platform is ahead On scale. million, reflecting technology a of and year, cash compensation $X.X of $X.X which $X.X company noncash $X.X were basis, is similar last to and expense million, period the and administrative was costs, public well-positioned million. our

can business meaningfully revenue believe G&A We with parking very OpEx our corporate and incremental grow expect to ramps. little carefully as manage

operating would we significant via show result, leverage drive margin revenue. a contribution over time to expect we as incremental As

was was million, XX%. up million $X.X last EBITDA EBITDA adjusted year, from margin Adjusted $X.X X.X% and

we few to of converted with lease take months year, several management we locations XXXX base will to contracts, and this building first on ongoing of remain the rollovers, locations term, which convert near the in remaining place locations. In the and our managed others requiring discussions focused in have We XX XXXX.

Total had balance million, was million Mobile our the million to $XX.X similar outstanding restricted Turning XXXX. end $XXX to debt quarter, at of the sheet. the cash first At end of cash. of and $XXX Infrastructure the

million balance completed our XXXX, our options of debt successfully quarter extension refinance we credit had of facility, providing extension June at are end, actively to lenders year, $XX this working maturities. revolving which and through an upcoming an Earlier outstanding our with

plan on XXXX we our the provided Our full and first support released guidance year XXXX results. quarter when results we were

to For and the $XX management $XX growth full year our mid-single-digit million of revenue benefit and reflecting prior million, XXXX, continue to to the expect leases we of from guidance contracts. are reaffirming organic shift

net is North reminder, Star. income a operational our As operating

NOI of at growth the XXXX indicating $XX.X expect million, to $XX.XX million midpoint. We from of X.X%

NOI liquidity management the have stock, assets. ability offer ability these be proven our benefit to As on an will tax-advantaged technology of improve any capability, the many pipeline these to for where and scale We immediately potential together owners, of strong acquisitions active of deferred for gain to offers assets the buy have and Manuel mentioned, operations. services, family-owned we which

call, our in dependent our reasonable noted as on valuation. I to use for As achieving currency more ability acquisitions stock last our a is equity

With closing the for call will remarks. that, I turn back Manuel to

Manuel Chavez

of did full results mandates include in first material in we business. sum To growth the these quarter pleased up, our Stephanie. markets. from would guidance quarter XXXX, year early a Return-to-Office the tailwind achieve The benefit second point anticipate to for our to the for for that are you, the indications put provided continued strengthening XXXX metrics be that and on any our track us. Thank growth not us for we we Improvements

Looking ahead, vision parking our acquirer choice to is the become industry. in of the long-term

We to to its carefully interest value. materially have and undervalued while of intend fragmented work owner is single unfavorable create relationships an sizable price we to navigate potential in continue a and that interest have stock That is shareholder a pipeline attracted environment, asset what technology inherent relative believe infrastructure we'll to experience, Our value. acquisitions, we rate said, hard traditionally substantial our asset industry. and

I'd to open like now call Operator, the for questions.

Operator

[Operator Riley from B. Instructions] with Securities. Bryan question Maher comes The first today

Bryan Maher

it doing up few there for I acquisition think know but anything? give and Stephanie, upon a on of the don't think have like or touched of million it volunteered $XXX a out if you. we quarter you your number Just today. so I in if are us have last that does prepared me close your don't mentioned you price forget might into you But you to kind an you moving pipeline if you solely comments, were us it gave there. at I pulled that you us cash? stock let update rely assets. Can Or you to tap looking in

Stephanie Hogue

Yes. largely his stock No, we the price. it I it. we're said watching great and comments, mean Bryan, it's for question, really that asking No, thanks in Manuel undervalued. believe

And so today, using not accretive. really is stock to acquire

we or would that accretive makes that cap do to that's seeing high today. I money cash not that. something rate, But far we're saw it if we look very in a to sense the think execute substantially something to

Bryan Maher

a at somewhere that million hundred you in the dollar is few looking couple say Would you that pipeline that to opportunities of are still area?

Stephanie Hogue

million absolutely. It's $XXX to closer still. Yes,

Bryan Maher

give Okay. your quarter seasonality are or the slowest. a it world? Stephanie with And and the your about how strongest. of I the bit idea think, of us Could the seasonality about prepared are in being in is What you an the XQ comments talked little think lodging, first modeling to you the XQ and the in XQ of weakest business, the XQ, Manuel,

Stephanie Hogue

Sure.

is a XX% the of in over year certainly I'd say We the second first in last, second half to portfolio, the always the the years. X this ramp quarter the last XX% weakest. it's of quarter. see generally full So over

is quarter then and fourth Third strong. first very is the of the quarter half always strong,

you've all third second and So the first strong, back strongest and at those and of the half kind is fourth, if kind quarters together, are front of look equally quarter the half, the always you of that and slowest. got being

Bryan Maher

are I Okay. mean, the management to there your one now Or a And do people? maybe of hire you last the can but you is conversion same it there people? own of And a when And are actual XX going management mechanics those? work people, how the contracts new it's about me, people lease? new of through to us if it the why after walk who it's then contracts, talk them? not just contract, you before not is working for get

Stephanie Hogue

part, with questions, it first Bryan. start the is which the I'll All people. is same great

difference. So there's day-to-day a not

difference the way notice If all. same is were not is are at you into you the reflected just parking garage, largely the the It Same paid. going revenue expenses people, would process. and

So that and large, the is asset, or cetera. the performing well by not ] But we so capped when a operator the is to we by asset will being not same et an if a.k.a. and paying an consumer. isn't R&M operators, change attention you [ if is up, find experience people, large, are

Bryan Maher

And you Okay. lastly, you are any in trends? pursue those are how successful appealing And in maybe change seeing you do appeals? just property when tax

Manuel Chavez

Yes. depends market We a really there. uptick slight to It in saw market.

aggressive right auditors authorities, success the the we our -- I in tend We over if NOI work, kind the is taxing It's growth. reflecting past would to return years, have decent. decent. we're CBD now lack to that outpacing of cores mood sort on not of just is cetera. increase if et couple overall of it's been appeal Our based say, like feel of --

Operator

Riddick Sidoti Marc Company. The from next with question & comes

Marc Riddick

talk bit attribution and seeing first any of maybe what guide if into if a maybe improvement in markets better could remarks, others was wondering your growth? of necessarily on was is of you whether but you're part some I little know organic not that a thread mentioned your could I is that maybe inferring, quarter -- some little that you're we than in about continue markets your you bit. sort seeing prepared a Return-to-Office perform what

Manuel Chavez

and a spend of good we question, on. something lot No, time that's Yes. a

hotel we've have not it our into These in of then We are But residential. representing monthly the something if not you has and is focused parking. dive been are correlated been been seen that it on. increase is parking, primarily contract and that, which because corporate contracts good an or monthly monthly it's medical because industries

Marc Riddick

to any Okay. maybe far to a has more the are conversations the gears in I particular sort there. or shift growth the of whether pipeline? geographic or maybe Great. and as that that changed coming pockets X last wanted table months fit of you the And seeing to around as little property as attractive be that any then Are the acquisition And future a pipeline or others, plans than so? some type

Manuel Chavez

Yes. and to with that to a as I office going see it's you, are market. towers on But to not parking surprise their office driver, that risk. that those tower sole as are sort starting come of those assets mean to we're to comes attached the come demand reliant

are We demand on the pull us blocks. it's really adjacent focused to multiple And gives on having drivers different opportunity levers. what

fact hasn't focus cetera. et office, clinics, still programs, can on Return-to-Office that hotels, we So residential, materialized, despite the validation medical

redeveloped that et and towers of those cetera. being reliance a the then that there. we So us. are sort aren't for foresee ones garages following kind these attached those tower the opportunity real office is The to of some at those is into residential, we're looking office ones of to on sort us maybe continued vacant the much of less interesting hotel, sort are where Return-to-Office, And of

Marc Riddick

you. to have the pricing bring forecast up us the to guess for how date environment you're that? in and you one then as Got last me, maybe into can your to pricing of I what maybe sort seeing and you plays maybe as what baked in And

Manuel Chavez

question. good a that's No, Yes.

So us, sticky perpetual, right? pricing trial, parking for business. it's a use to facilitate is Because very a we very

consumer oftentimes to park parking the Your same end in same parking not prefer space. parking the like in facility, the they park only

in them that that secure demand them the driver get convenient and that's clean, show then to once downtown, keep their bringing we're we for we them and tend and safe So can is we business.

either discount price surge we see so we if of monthly to demand, of potential a that pricing trial on change And an was Any meaning we or a our or customer. mark the down daily new for aggressively drive will pricing changed opportunity first. in

financials our So QX and performance. it's baked into

in or drivers As start the materialize or to fill pricing of dynamics spaces. use throughout these we up of demand year, the events to sort will down

Operator

our This remarks. any management the for question-and-answer back turn like concludes session. to over closing I conference to would

Manuel Chavez

for the you. the thank year. time. thank of forward We're as want your I to you looking remainder And to all always,

Operator

The you attending conference Thank presentation. concluded. has now for today's

now disconnect. may You

Mobile Infrastructure (BEEP) 15 May 242024 Q1 Earnings call transcript