SP Plus Corporation

Adjusted gross profit was $66 million in the second quarter, up 12% year over year. Adjusted EBITDA was $34.4 million, up from $31.7 million a year ago, and adjusted EPS was $0.78 versus $0.81 last year. Second quarter adjusted G&A excluding acquisition integration and other costs was $30.6 million versus $26.3 million last year. Year-to-date operating cash flow was $21 million and free cash flow was $8.3 million; management noted 2022 included a one-time $20.5 million federal tax refund, and adjusted for that, first-half operating cash flow was up 38% and free cash flow up 66%. Full-year guidance was reaffirmed: adjusted gross profit of $240 million to $260 million, adjusted EBITDA of $125 million to $135 million, adjusted EPS of $2.70 to $3.20, and free cash flow of $60 million to $70 million, or about $3 to $3.50 per share. Management also said 2023 G&A should be about $15 million higher than 2022 due to technology-related investments, and reiterated a $600 million credit facility for capital allocation.

Marc Baumann framed the quarter as evidence that SP Plus is executing its long-term strategy of combining technology with operating strength. He emphasized record results, broader service offerings, and market-share gains across commercial and aviation, while pointing to 126 net new locations in the first half and a 94% retention rate as signs that the company’s offerings are becoming more compelling. His tone was upbeat and confident, especially around curbside concierge, Sphere, and acquisitions that expand the platform.

Kris Roy focused on the financial performance and reiterated that the company sees no change to its full-year outlook. He cited $66 million of adjusted gross profit, $34.4 million of adjusted EBITDA, $0.78 adjusted EPS, and $30.6 million of adjusted G&A, and said the business continues to invest in G&A and capital expenditures to support technology-led growth. He also highlighted cash generation, with $21 million of year-to-date operating cash flow and $8.3 million of free cash flow, and said the company plans to use cash plus its $600 million credit facility for organic growth, acquisitions, and share repurchases.

Analysts pressed management on the Roker acquisition, SG&A and CapEx levels, retention, pricing, labor, and whether sequential gross profit growth could slow in the second half. Management said Roker is an early-stage capability add-on, not a meaningful P&L contributor near term, and that it should speed deployment of digital permitting and enforcement features within Sphere. On costs, Kris Roy said the higher SG&A is investment-related rather than structural, and he expects some operating leverage later this year and into next; he also said CapEx should likely come down a bit over time, though the company will still pursue growth-supporting investments. On retention and pricing, Marc Baumann said technology should make SP Plus stickier, pricing pressure has not materially changed, and labor conditions have improved versus a year or two ago. Regarding curbside concierge, management said the service is now on eight airlines representing 96% of domestic travel, with growing interest from both airlines and sponsored airport models.