SP Plus reports Q4 EPS 56c, consensus 74c

Reports Q4 gross profit in the fourth quarter of 2022, which included a $3.7M non-cash lease impairment charge, increased 7% year-over-year to $48.6M. Excluding depreciation and amortization, impairment charge and restructuring costs, adjusted gross profit was up 16% to $57M as a result of effectively expanding existing relationships, improving our already strong location retention rate and winning new business. Fourth quarter reported gross profit in the Commercial segment was essentially flat year-over-year due to a lease impairment charge, while adjusted gross profit increased 11% in the fourth quarter and 18% for the full year. This growth was led by higher demand across most verticals, in particular, large venues, hospitality and commercial, as well as the continued rollout and adoption of Sphere. The fourth quarter also marked the seventh consecutive quarter of net new location growth in the Commercial segment. Gross profit in the Aviation segment increased 25% in the fourth quarter and 38% for the full year, reflecting recent new contract wins and increased activity within the travel industry. We continue to win new business in our Aviation segment and pursue cross-sell opportunities across 158 global airports in our portfolio, including 65 unique airports added via the October 2022 acquisition of AeroParker and its industry-leading SaaS platform. In addition to considerably expanding our addressable market, we believe this acquisition will serve as a technology growth platform for SP+ globally.