SP Plus Corp (SP) Announces Record Gross Profit in Q3 2023
SP Plus Corp (NASDAQ:SP) reported a record gross profit in Q3 2023, reflecting positive momentum across the Commercial and Aviation segments.
The company added 108 net new locations, marking the tenth consecutive quarter of net location growth.
SP Plus Corp (NASDAQ:SP) continues to gain traction with its technology solutions, experiencing considerable demand from the gaming industry.
The company's acquisition by Metropolis Technologies, Inc. for $1.5 billion is expected to close in 2024.
SP Plus Corp (NASDAQ:SP), a leading technology and operations management provider of mobility services, announced its third quarter 2023 results on November 1, 2023. The company reported a record gross profit, reflecting increased client demand for its unique ability to deliver industry-leading technology solutions and best-in-class onsite services at scale.
Financial Highlights
SP Plus Corp (NASDAQ:SP) reported a total services revenue of $228.4 million for Q3 2023, up from $207.1 million in Q3 2022. The company's gross profit increased to $64.2 million, up from $54.8 million in the same period last year. Net income attributable to SP Plus was $9.2 million, down from $14.3 million in Q3 2022. The company's net income per share (EPS) was $0.46, compared to $0.68 in Q3 2022.
For the first nine months of 2023, the company reported a total services revenue of $666.0 million, up from $588.0 million in the same period in 2022. The gross profit for this period was $181.5 million, up from $159.4 million in 2022. Net income attributable to SP Plus for the first nine months of 2023 was $29.9 million, down from $40.4 million in the same period in 2022. The company's net income per share (EPS) for this period was $1.50, down from $1.90 in 2022.
Company Performance and Future Outlook
SP Plus Corp (NASDAQ:SP) experienced a record quarter across key financial and operating metrics. The company added 108 net new locations in Q3 2023, marking the tenth consecutive quarter of net location growth. The company's technology solutions continue to gain traction, with considerable demand from the gaming industry.
Despite the strong performance, the company has suspended its financial guidance for 2023 and its target metrics for longer-term performance due to the pending acquisition by Metropolis Technologies, Inc. The acquisition, announced on October 5, 2023, is expected to close in 2024, subject to receipt of required regulatory approvals and approval of SP+s stockholders, as well as other customary closing conditions.
SP Plus Corp (NASDAQ:SP) remains committed to delivering industry-leading technology solutions and best-in-class onsite services at scale, and looks forward to continuing its growth trajectory in the coming quarters.
Explore the complete 8-K earnings release (here) from SP Plus Corp for further details.
This article first appeared on GuruFocus.
