BEEP - Earnings call transcript Q2 2024 | Mobile Infrastructure Corp

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Operator

Good afternoon, and welcome to the Mobile Infrastructure Corporation Second Quarter 2024 Earnings 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 second afternoon, you us for review Good With Chavez, Hogue, CEO; today and us from Stephanie President. Mobile are Manuel statements of In the second hear we a XXXX. management moment, quarter of company's as operations results of the will about

today's forward-looking those events, financial begin, includes from business vary and trends business would in or or Actual affected report update risks today's no does we and results by significantly not SEC, on projections forward-looking the comment and this Form we in Mobile recent to remind press annual industry and obligation including including and Before that may be call. has on XX-K estimates results. may everyone on release statements assumes like discussion most statements, of its those future its the filings or or identified statements Mobile to Form recent intend made quarterly identified Mobile's on most report with XX-Q.

of report most a earnings recent and most these a to uses the to considered Today's be provide results. These measures. not discussion reasons Form should of for, directly list measures quarterly also contains the a provide XX-Q reconciliation comparable release GAAP or and non-GAAP measures those substitute its the non-GAAP financial information on as to useful measures GAAP that isolation investors. from, believes in why Mobile's Mobile measures references Mobile

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

Manuel Chavez

discuss of our was operating and we for the our On and call, quarter review thanks company. will our all to Thank performance This progress second another business outlook. and participants. you, Casey, quarter financial today's

we net show in business highlighted considering to. that continued XX% our manage the noteworthy many of key portfolio that challenging This operating metric asset by a solid increase growth improvements, particularly NOI is markets. which the is income, in to environment Our year-on-year persists

in portfolio same yields, initiatives by expect growth. the working executed on we as effectively increase that time, the while long-term team Our evidenced at accelerate will

properties, parking of and Southwest consists transportation. the assets portfolio main surface Midwest garages XX are XX XX the asset driving These of Our mode were parking primarily located and in lots.

maintain of We year, And have properties. we from who converted providers this with the portion of contracts beginning parking a at our leases contracts. management service large contracts these to

This strategic ways. shift has in key a difference three made significant

visibility us greater that given has This demand we utilization. to long maximize metrics. and growth. and pricing usage employ it enable data to techniques us which to enables to First, increase improved utilization, should over are marketing the of access We adjustments now accelerate the leveraging parking have to us term,

Second, transparency helped management has control us at us the and level, efficiently. provide to greater asset deploy with which more expenses resources manage contracts

have we the of quarter. to and been contracts, already assets of the assets management XX converted quarter, our have end second the X third additional As of converted during

Third, management contracts arise. marketplace improved and has flexibility insight into they take to the to as of advantage the us unique opportunities conversion given the

ability to locations. For other request increase and existing we of to the reorganize blocks spaces, in if large example, nearby parking an have parkers see them ship for we

Taking monthly a asset. detailed quarter and into transient to at closer to us business look drill at each management contracts results. The allows our performance conversion second

believe share us there and/or transient assets redeployment strategic our increasing opportunities environment year economic the seems market. While data We market in for portfolio the the analyzing specifically on more relationships and within parking, to current to the of targeted focus are utilization throughout a than allowed rate be ago, micro challenging expanding has improvement. through

We marginal NOI believe rate drive can single-digit rates evolve. by micro transient declines. second to In contributed initiatives improvement improved as volume adjusting continue these markets the offset quarter, team low our a that to

has witnessed and in market. residential Midwest team business central our most and monthly service in municipal for medical parking demand the While continued continues remained Geographically, social offices sluggish, strength our locations. districts strongest be facilities, to

are near-term materializing Despite early of XXXX. we demand that uncertainty, expect in we economic signs in seeing a to begin pickup

First conversion new in into since office is The as a multiyear Class conversions sales apartment currently of has is proposition. of offer are our living the of of that space part units keen of and developers there several parking B this of pace these and foremost, underway beginning the to markets. accelerated residential these year, their residential

these has and on developers. relationships discussions are into we expertise engaged and spaces provided early Our pricing number in in with actively opportunities, market required micro insight of

as X:XX for could a.m. a access commercial company. for result the new X-day increase significant and X:XX to of utilization us a the from shift important previous p.m. a a XX/X parking revenue usage in our in demand is in parking to This week, driver a access

Additionally, mandates uncertainty our the current to appears economic enhancing the be return-to-office markets. in

call a inbound from to returning not We to parking unemployment trend. days get our underway. more corporates it from which that to regular be are week or to long inquiries a up require contract enough X,XXX, often ticking shift early too indicates space. higher, may But are X,XXX X%, but maybe a starting this to X actually are despite the office, parkers It's overdue anticipating employees return-to-office

a operating our Hogue, Now President, call Stephanie? turn and I our quarter business of second will detailed results. review who provide the more Stephanie to over will

Stephanie Hogue

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

dive press today, financial disclosing Before our metric calculation, evaluate note that our which into you we I we our an internal included to I want business, important NAV have quarter, are help earnings to release. the in

track industry NAV value per $X.XX to our months average method outstanding to preferred The capitalization be operating that weighted our metric equity XX a national in financial sheet. valuation to assuming and periodically to was plan progress. capital then was rates portfolio update rate provide We and history. adjusted an the based an for fair debt, of on of with is balance consistent cap working our this calculated investors effort divestiture additional with was share. income, net on trailing This BEEP's NAV Our

our factors stock. believe and in of undervalues stock materially We that our the result a today influencing a Mobile price assets is few

company are through small a and spent improvements publicly the traded year positioning we foremost, for this operational and First refinancing. and growth debt company have

are of In and of of now addition, return to real starting temporarily office estate nature to many markets. time benefits commercial disrupted redevelopment of a see uses. to in has normalization of the and our the only post-pandemic reoccurring we taken parking demand alternative This

which while equity to prior for conversion Finally, over performance months. overhang inherent company of the value, will believe and help on greatest company, and XX our have attention stock created the preferred that garner the our additional an the common we is our issues may stock, facing its one results

created current While pressure shares have of these date, our on many float in newly stock. preferred stock as common created highly equity have the the dilutive. into conversions preferred acquired of of At to the have shareholders promptly their are common conversions also market trading they these stock sold price, selling additional

As such, management the in we moving discussing further the to and address stock, near forward our are details to preferred look term. Board and

Now turning to the quarter.

benefited from additional conversion on management traffic. in of increased is from results directly million cash of which Second quarter XXXX. contracts million We indication The in to XX which business assets operators, during the recognize is revenue view, year-over-year contracts second of always a revenue or higher better the contracted from including accrual in management parking based we and, doesn't transient revenue rates recognition revenue in volumes correlate rather to of our collections of $X.X X from leases, as underlying $X.X second quarter based from than the our quarter, XX% trends.

management to third As over completed and our a reminder, X and quarter XXXX. we in converted remainder working to been have facilities more contracts the to more be in convert have with leases roll XXXX of as the

have more treatment. million were The the and the control related second to resulted readily reprioritize and year's quality $X.X without expenses the our enhance to of compared contracts overall from quarter. sacrificing in the management to time $X.X operating million contracts, we shifting By management parking in discretionary expense ability items experience to real the increase assets. expenses to to primarily shift accounting Property last

these $X.X last successful NOI, X ago. recognition from XX.X% $X.X we $X.X up Net second readily in $X.X were was or We to quarter. income, operating more have toward year's shift expenses Property million in million been taxes million, million, year timing from slightly management contracts. as revenue up

the in shift Importantly, our second of bulk business the underscoring of locations, the came NOI growth from managed model. XX% XXXX revenue. represented NOI quarter

$X.X head count of in and million second company of the up technology the $X.X General last expenses of noncash administrative compared with well expense quarter. million quarter. current additional compensation in costs, million noncash prior year as reflected in as $X.X quarter million This comp year's $X.X and year were public from

the built and model support Said we expect as and infrastructure our we EBITDA to expect grows and another up grow last significant $X.X leverage both million larger margin inorganically. Adjusted year, not find from we as million, well. significant EBITDA business, XX.X%. was revenue revenue As our growth, have was G&A XX.X% do $X.X adjusted would a we business scales contribution margin operating via way, base to organically

balance Infrastructure debt end in down million quarter. Mobile $XXX at and outstanding cash modestly year-end sheet. million, Looking Total XXXX. was the from second the our $XX.X of restricted had at cash

our say work have continue over the debt on on refinancing to and with maturities this actively lenders to months. more few We expect to upcoming next

that earlier have through revolver line our on XXXX. and June extended we reminder, a As this year currently flexibility

of variety options and with working are for sheet. the a We continue balance maturities refinancing solution to upcoming balance BEEP's evaluate to best

million we as from Star, prior XXXX the revenue $XX.XX we in well $XX expect of NOI continue strong which organic the our to to benefit reaffirming the mid-single-digit to management of to of Given million growth North continue NOI year-to-date million. to performance, implies leases is range $XX million, our expect operational our $XX.X and and are shift contracts. guidance as

growth the XXXX. of from midpoint, this Assuming implies X.X%

we While favorable pipeline with to stay the conditions prevail. to to we acquisitions more currently until sidelines the on regard potential plan acquisitions, continue market of on build

call the And with over turn closing will that, remarks. Manuel to back I for

Manuel Chavez

Stephanie. Thanks,

I these Mobile exception. a few no we shareholder M&A, existing the observations share our last delivering stock want believe in Q&A, opportunities and Mobile's Considering over the to call accretive confidence our to drive through price material and strategy is materially assets minute is stocks performed creation stock managing have understand actively to price. about long-term undervalued. years, our I our value Before poorly turn take to and X a over We

Mobile district flow opportunities Mobile's approximate to we of shared, on stock to pressure outsized replacement significant be value. that Mobile Stephanie and the on greater improvement. for an ], live extremely captive As growth even XX% we discount is portfolio preferred touched an trading central to price real resulted [ convertible estate stock. outstanding have and in also that stock margin business Stephanie has assets, cash believe recent discount a and valuable owns believe at

While to nothing we is addressing convert this focused our Board share on overhang. have today, actively

sum the guidance performance our ability track to in we year challenging reach are and us and on a value effectively with puts team's up, to demand demonstrate create operate To pleased year-to-date as environment. XXXX it full

know, As industry. our is you a in the to choice parking long-term become acquirer fragmented vision of

acquisitions, and pipeline to more sizable a favorable conditions. we have until remain we of While see disciplined potential we patient intend financial

Operator, call to please questions. open the

Operator

question Instructions] Our will come Maher Riley. first Bryan [Operator from with B.

Bryan Maher

today. really start per about bit per me you the time got push spots parking with for coming dig year it? the can quarter where going bit call, supplying we property of numbers to time going be trailing maybe a on to help to little closed to have some we we've kind little few We so kind information or the us of can a supplemental utilization? a market But little back look month worth per a data see of sold we the talking at actual X:XX. a it guys out much or or can Are Maybe lot bit. per off day on two's into didn't forward, after Just model

was kind second to changed that since actual of owned of you management that available as And even what question, guys revenue over lot per the the years? to the you've X the contracts part past you structure have do leases from

Manuel Chavez

question. good really a That's Yes.

Consolidating real-time one would revenue and different concept systems controls, our of [ is I pay myriad a would the still is parking revenue here. because assets in across is be different progress. of which a as ], But sort come things two on per get that space. people there's we've So available with portfolio. for Number a effort an our hit ways up of per placeholder utilization RevPAS what the

speak. you And of And so that inputs we now give an a it continuing average are blended so rate we'll utilization, to share. economic sort the to of And back and that be gives the into on granted would sort two certainly utilization. can't that that. But both two, something that's go

Bryan Maher

type Yes. to calculated out numbers, model into of see to I your NAV. to you hearing The doing can X starts of what stock upon Street can of based feel and been But a minimum then where a at Look, I or data, out is tell your price trends relative years, once having think those for sort model we're the I we seeing. XX pain this your future year historical that

think I the just to stock get the view imperative kind on to of investment in that, kind my to us of out get is that. to that's work community

at so, moment, active and are of know are but on, you cap I guys Moving marketplace? assets And what at see if in in the the you're not the what markets to you market seeing starting rates? out kind in transaction trade?

Manuel Chavez

Yes.

of seeing you're a lot trade So yet. assets not

to office starting assets tied see are that towers. You're to

turned see to be back starting into lenders. those You're

to around starting opportunities some see that. You're

So we're out get lot not build just continues The a on and there. expand pipeline, tell seeing done. actually deals what's you, potentially of to of sort it I'll

Bryan Maher

then determine this in developers it -- to of further talked several a pricing at here, prepared talked getting residential. your in And to you're you engaged access." you of earnings what are with kind Can in markets and you about in is have release, office our And your -- there? kind statement Okay. already in define "We you prepared your comments,

Manuel Chavez

Yes.

of parking, contractual Monday XX/X there. types through different X-to-X parking, when unreserved, out There's Friday, reserved So you're There's kind access. parking. selling there's product

And so residential differently. those a bring pricing products you in you're when component,

those need. so we're so far them tailor they sort the as then understand what to what And is menu for of an array And tenants. prospective doing options they we're provide a their that down fitting options sitting developer thinks can as that of to of

Bryan Maher

And just Okay. me. last for

you take along to us like steps maybe that the What preferred is? Stephanie, talked and far go? sales. subsequent conversion more common about I lot think how you then to to process Is a there you tell Can can slow that pain?

Stephanie Hogue

Bryan, Yes. a question. good it's

we're So on right that now. working

about I through think talked in with we Board. our that working remarks,

share date, forward. but commenting will So on it going be nothing definitive to we to

converted think to I of XX% it's about that's the date. pref

when they converting. And noted Manuel to so -- the pref sell choose remarks, the prepared as -- it's the of at just end are is when holders they're

about of when ago. outstanding think, million year So we pref listed about still, there's I XX a million was today. There XX

So it's XX% to roughly XX%.

Operator

[Operator Instructions] with question from next will come Our Riddick Marc Sidoti.

Marc Riddick

commentary. could it a little wondering you could a if how certain was about up, dynamics So I a days Is And what of the go can And is of back to there the about what you into -- certain maybe is seeing matter talk play return-to-office looks if might little date? it mix maybe it then like. days picking bit talk you're you to that that week? bit involved? pricing

Manuel Chavez

Right.

and that Monday extended. different -- So have in than We're U.S. week across seeing the and Tuesday, holiday. are Wednesday still are seeing Holidays Thursday and certainly, Friday, really a markets like we're that's

So the days used us the take Monday take whereas X off. just we're and people on off seeing weekend, them X-day to X really

it's And So us. it back switching sort is that's pandemic, really see to pretty to X starting see X starting of days people remained people week. week, we're the to downtown. first What in and and actually a bring of since for consistent not though starting the days for a course X we're time is packages

during they utilize sort our that And options need. time we're for can that so of so they that them creating assets

employees. back from which back. online, starting Courthouses around Municipal seeing certain I of a courthouses. we've industries, assets to are number of employees coming Around we're still would are lot got hospitality come a demand say,

not still -- are some amenitized we're We seeing to movement upgrading tenants properties. more seeing of that are

take So watching to Class our we're more keenly that towers. really that when to of sort readily and positioned A office assets trying are amenitized those advantage of

Marc Riddick

that the as now kind customizing traffic. of in commentary the and you're about a a you're that return-to-office packages those about fit rate talk and And what of little Can you're changes you with flow? pricing sort then the Great. How offerings return-to-office Okay. is seeing end year-over-year of bit how better that might similar? you, should consumer for think is compare about packaging to pricing the fit margins? rate? it Or better how the to it And far we as that

Manuel Chavez

Right.

So have it's and a tried it's two-step that's good provoke for experience, power. because parking, process in or they trials, a our been us have it's after to we to have oftentimes facilitate But pricing discount when rate. we actually us to

trying in So right we drive in volumes our are to parking. phase of now, contract the

of discounting just where aka did, of and down parkers point utilization revenue to maybe into rate first the those are the reaches using definitely what and we're there is we're you of back in goal of which day and for rates our where in discounted we even get out we're that getting you're up day. level help groups moving to rates a so industry, to is driving a management, historically depending And with which on where time volume the phase that. But of week starting

Marc Riddick

to us One with guess, all up you end that the the [indiscernible] bit wanted that discussions sort me. to through part of and shift of see time [indiscernible] from a of Can that little of you? you I might early over being just stages about, of sort of the benefit that. I when of being to maybe sort a walk frame

Manuel Chavez

the there. but I missed questions. about I'm of and out you half sorry faded in

Marc Riddick

I'm sorry.

be would for can converting be as that with benefit you? positive residential about think do maybe a how As it to planning they're far talk assets, as you before those process, are it that begins to the timing working you around long

Manuel Chavez

it pick some part up to got well. XXXX, and will and see we've visibility really the out steam No, as this of benefit in going beyond that into Yes. year, latter we're

Operator

the It for back Manuel further closing appears our there Chavez would question-and-answer like I over session. are no turn any concludes to to This questions. conference remarks.

Manuel Chavez

today's Thank participation you your all call. in for

Operator

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

You may disconnect. now

Mobile Infrastructure (BEEP) 13 Aug 242024 Q2 Earnings call transcript