SP Plus Corporation Announces Third Quarter And Year-to-Date 2016 Results

CHICAGO, Nov. 02, 2016 (GLOBE NEWSWIRE) -- SP Plus Corporation (Nasdaq:SP), a leading national provider of parking, ground transportation and related products and services to commercial, institutional and municipal clients throughout North America, today announced its results for the third quarter of 2016.

G Marc Baumann, President and Chief Executive Officer, stated, "We are very pleased with our strong bottom-line performance in the third quarter as evidenced by a double-digit increase in EPS and EBITDA which was driven by our on-going disciplined cost management.  We achieved growth at same operating locations across many of our markets and increased new business, which was offset by the cumulative impact of some contract terminations as well as a smaller favorable change in prior-year casualty loss reserve estimates this year.  Our location retention rate remained strong for the third quarter of 2016.  Finally, we continue to generate strong year-to date free cash flow which has increased significantly over last year.  

Mr. Baumann concluded, "We've made good progress on our key priorities during the course of the year, most notably those related to cost improvement and safety.  We remain focused on executing long-term strategic initiatives to further drive growth and shareholder value."

Financial Summary
In millions except per share Three Months Ended September 30, 2016   Three Months Ended September 30, 2015
  Reported Adjusted (3)   Reported Adjusted (3)
Gross profit (1) $ 43.9   $ 44.7     $ 42.8   $ 44.7  
General and administrative expenses (1) $ 20.3   $ 19.3     $ 23.7   $ 21.8  
EBITDA (1),(3) $ 22.9   $ 24.7     $ 18.3   $ 22.1  
Net income attributable to SP Plus (1) $ 7.0   $ 8.3     $ 3.7   $ 5.9  
Earnings per share (EPS) (1) $ 0.31   $ 0.37     $ 0.16   $ 0.26  
Free cash flow (2),(3) $ 4.8   $ 5.4     $ 5.9   $ 11.3  
       
In millions except per share Nine Months Ended September 30, 2016   Nine Months Ended September 30, 2015
  Reported Adjusted (3)   Reported Adjusted (3)
Gross profit (1) $ 129.3   $ 129.9     $ 130.5   $ 133.3  
General and administrative expenses (1) $ 67.0   $ 63.6     $ 74.2   $ 69.7  
EBITDA (1),(3) $ 60.1   $ 64.1     $ 54.3   $ 61.6  
Net income attributable to SP Plus (1) $ 13.5   $ 18.2     $ 14.8   $ 15.3  
Earnings per share (EPS) (1) $ 0.60   $ 0.81     $ 0.66   $ 0.68  
Free cash flow (2),(3) $ 18.0   $ 19.4     $ 7.9   $ 16.8  

(1) Adjusted gross profit, adjusted general and administrative expenses, adjusted earnings before interest, income taxes, depreciation and amortization (adjusted "EBITDA"), adjusted net income attributable to SP Plus and adjusted earnings per share (adjusted "EPS") are all non-GAAP financial measures that exclude, among other things, (a) restructuring, merger and integration costs, (b) non-routine asset sales or dispositions, (c) non-routine settlements, (d) ongoing costs related to non-routine structural and other repairs at legacy Central Parking lease locations, (e) our equity method earnings in Parkmobile, and (f) the historical financial results of the security business (primarily operating in the Southern California market) sold in August 2015.  Please refer to the accompanying financial tables for a reconciliation of these adjusted items.

(2) Adjusted free cash flow, a non-GAAP measure, excludes cash used for non-routine structural and other repairs at legacy Central Parking lease locations.

(3) Refer to accompanying financial tables for a reconciliation of all non-GAAP financial measures to GAAP.

Third Quarter Operating Results

Reported gross profit in the third quarter of 2016 was $43.9 million, compared to $42.8 million in the same quarter of 2015, an increase of $1.1 million or 3%.  On an adjusted basis, third quarter adjusted gross profit was flat as compared to the same period of 2015.  While gross profit at same operating locations and new business both increased, this was largely offset by the cumulative impact of some contract terminations as well as a smaller favorable change in prior-year casualty loss reserve estimates in the third quarter of 2016 relative to the third quarter of last year.

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