Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Very good to see the net location growth accelerating in Commercial |
| 2023 first quarter adjusted gross profit, which excludes depreciation, restructuring and integration costs, increased 14% year-over-year to $58.4 million, driven by significant growth at same locations, new business wins, and the deployment of technology solutions |
| We're seeing very strong demand at airport parking |
| We're working together with AeroParker on developing joint offerings and have made progress in this area recently that gives us confidence that we'll be able to capture the significant revenue synergies on the horizon |
| Gross profit increased at a double-digit rate in both our Commercial and Aviation segments, demonstrating the traction we're gaining across the three strategic objectives we outlined last quarter |
| Pacing wise, we believe Q1 adjusted G&A is a fairly good run rate for the remainder of the year and expect to leverage our G&A investment throughout the year, thus increasing our gross profit to EBITDA conversion or said in other way, improve our EBITDA margin |
| Our Commercial segment gross profit increased 14% in the first quarter, underpinned by strong metrics that align with our strategic goals |
| Notably, same location gross profit in our Commercial segment increased considerably in the first quarter, reflecting success in deploying our Sphere technology solutions across our existing locations, cross-selling and adding new services |
| And the other thing that's also very encouraging is that the cruise lines have now come back to full strength post-pandemic and so whereas last year, we had a partial cruise season in Alaska and Seattle |
| So, I think that will show in the form of good demand for our services and what we can bring to bear in those environments |
| And we were very successful in bringing on new business, adding 71 net new locations in the Commercial segment in the first quarter and reinforcing our market leadership by differentiating our offerings through technology solutions and superior service levels |
| The results are very, very positive |
| As airports and airlines deal with record levels of travel and strong demand for international travel in the midst of infrastructure improvements, our solutions that optimize parking utilization and rates and improve the traveler experience are more important than ever |
| The level of proposal activity for parking management solutions and luggage handling services, such as curbside concierge and remote airline check-in services is stronger than it has been in recent memory |
| We executed very well in the first quarter and continue to be very encouraged by the growth prospects we see on the horizon |
| So, 165 on a TTM basis is a really strong number for us |
| Our strong cash generation, together with our $600 million credit facility, provides us with ample flexibility to fund our capital allocation priorities of investing for organic growth, acquisitions and share repurchases |
| First quarter results represented a strong start to 2023, and we made significant progress in a number of areas that support both our full year guidance, as well as our longer-term expectations for accelerated growth |
| First, we strengthened our leadership position in the first quarter by doing exactly what we said we would do, namely bringing innovative technology solutions and superior operations to existing and new clients |
| So, I think that is illustrating to us early on that there's a strong demand and interest in AeroParker by the existing portfolio of airport clients in North America, and we expect to continue to see additional decisions made to bring AeroParker into that existing client base |
| In addition to supporting our ability to achieve our full-year 2023 guidance, we believe SP Plus' first quarter performance demonstrated our new growth trajectory, one that we expect to continue beyond 2023 |
| Additionally, technology is poised to double its contribution to gross profit in 2023, compared to 2022, and this puts us on track to achieve our goal for technology solutions to contribute more than 10% of our gross profit by 2025 |
| In summary, we're very pleased with our first quarter performance and our execution on the strategic objectives we laid out a few months ago |
| Our past and current investments in technology and excellent on-site service levels have enabled us to gain share and to significantly expand our addressable market, two areas that support our expectations for 2023 and beyond |
| I am pleased to report on our strong start to 2023, which positions us to achieve our guidance for the full-year |
| So, I think we're seeing strong demand for those capabilities and we're expecting to see that continue as we look forward to the end of this year and into next year |
| This strong performance was broad-based as evidenced by double-digit growth in both our Commercial and Aviation segments |
| So, we feel good with where we're landing for Q1 |
| I think also – and I didn't comment on this necessarily in the [prearranged remarks] [ph], but I would say is that we have a really strong new business pipeline |
| We have the scale, capabilities, and commitment to capture the substantial opportunities in front of us, which supports our confidence in growing gross profit at a high single-digit rate beyond 2023 and increasing EBITDA and EPS at a greater rate |
| Statement |
|---|
| I mean, I noticed that your typical seasonal trend in the first quarter is to have a sequential decline in gross profit from the fourth quarter |
| Now, what's separately is happening and this has surprised us a little bit and that's a number of airports are becoming so concerned about congestion themselves that they're in conversations with us now about the sponsored model |
| And so, I think you're going to continue to see that seasonality be a little more muted because of the growth that we're expecting in the business |
| And of course, leisure travel is back to pre-pandemic levels |
| I was just curious |
| Actual results, performance and achievements could differ materially from those expressed or implied due to a variety of risks, uncertainties, or other factors, including those described in the company's earnings release issued earlier this afternoon, which is incorporated by reference for purposes of this call and available on the SP Plus website and the risk factors in the company's annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with the SEC |
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