SP Plus Stock

SP Plus Corporation, through its subsidiaries, develops and integrates technology with operations management and support to deliver mobility solutions that enable the efficient and time-sensitive movement of people, vehicles and personal travel belongings. The company is committed to providing solutions that make every moment matter for a world on the go while meeting the objectives of its diverse client base in North America and Europe, which includes aviation, commercial, hospitality and institutional clients. The company typically enter into contractual agreements with property owners or managers as opposed to owning facilities.

Acquisitions

On July 25, 2023, the company acquired certain assets of Roker Inc. (Roker), a United States based provider of fully-integrated parking solutions that simplify permit, violation and enforcement management for organizations and municipalities. Roker's operations are included in the Commercial segment.

Operations

The company develops and integrates technology with operations management and support to deliver mobility solutions that enable the efficient and time-sensitive movement of people, vehicles and personal travel belongings. The company serves a variety of industries and have industry vertical specific specialization.

The company’s Commercial segment serves clients in commercial real estate, residential communities, hotels and resorts, healthcare facilities, municipalities and government facilities, retail operations, large event venues, colleges and universities.

The company’s Aviation segment primarily serves clients in the aviation industry (i.e. airports, airlines, cruise lines, certain hospitality clients and certain commercial clients within Europe that utilize its AeroParker technology).

The company typically enters into contractual relationships with property owners or managers as opposed to owning facilities. The company primarily operates under two types of arrangements: management type contracts and lease type contracts.

The company’s revenue is derived from a broad and diverse group of clients, industry vertical markets and geographies. The company’s clients include some of North America's largest private and public owners, municipalities and governments, managers and developers of major office buildings, residential properties, commercial properties, shopping centers and other retail properties, healthcare facilities and medical centers, sports and special event complexes, hotels and resorts, airlines and cruise lines. In addition, through its acquisition of KMP, it services multiple airports and other clients in Europe. The company has built a diverse geographic footprint that spans operations in 45 states, the District of Columbia and Puerto Rico, 4 Canadian provinces and multiple countries within Europe. The company’s strategy focuses on building scale and leadership positions in large, strategic markets in order to leverage the advantages of scale across a larger number of clients in a single market. The company’s acquisitions of KMP, DIRVT and Roker have been accounted for as business combinations.

Services

As a professional service and technology solutions provider, the company provides comprehensive, turn-key service and technology-enabled offering packages to its clients. Under a typical management type contract structure, the company is responsible for providing and supervising all personnel necessary to facilitate daily operations, which may include porters, baggage handlers, valet attendants, managers, bookkeepers, cashiers and a variety of ground transportation services, maintenance, marketing, customer service, and accounting and revenue control functions.

In addition to the conventional management services, the company offers an expanded range of ground transportation services, baggage delivery and handling services, technology enabled solutions and other ancillary services.

Segments

The company operates through Commercial and Aviation segments.

Commercial

This segment includes an online and mobile application consumer platform through parking.com; applying curb management strategies and technologies to effectively allocate the use of curb space in urban environments; on-street parking meter collection and other forms of parking enforcement services; asset management and revenue management services for owners of parking assets; remote monitoring services using technology that enables it to monitor parking operations from a remote, off-site location and provide 24-hour-a-day customer assistance (including remedying equipment malfunctions); shuttle bus vehicles and the drivers to operate them; ground transportation services, such as taxi and livery dispatch services, as well as concierge-type ground transportation information and support services for passengers with transportation network companies; valet services, including vehicle staging, doorman/bellman services and valet tracking systems with SMS capabilities; innovative and environmentally compliant facility maintenance services, including power sweeping and washing, painting and general repairs, as well as cleaning and seasonal services; multi-platform marketing services, including SP+ branded websites which offer clients a unique platform for marketing their facilities, mobile applications, search marketing, email marketing and social media campaigns; patient transport services for healthcare clients; and large event transportation logistics, planning and implementation.

Aviation

This segment includes baggage services, including delivery of delayed luggage and baggage handling services; remote airline check-in services; wheelchair assist services at airports and to airline passengers; baggage repair and replacement services; shuttle bus vehicles and the drivers to operate them, such as on-airport car rental operations and private off-airport parking locations; ground transportation services, such as taxi and livery dispatch services, as well as concierge-type ground transportation information and support services for passengers with transportation network companies; valet services, including vehicle staging and valet tracking systems with SMS capabilities; innovative and environmentally compliant facility maintenance services, including power sweeping and washing, painting and general repairs, as well as cleaning and seasonal services; comprehensive security services including the training and hiring of security officers and patrol, as well as customized services and technology that are efficient and appropriate for the property involved; online and mobile application consumer platforms through its AeroParker technology and parking.com; multi-platform marketing services including SP+, AeroParker and KMP Digitata branded websites which offer clients a unique platform for marketing airport facilities, mobile applications, search marketing, email marketing and social media campaigns; and revenue management services.

Strategy

The key elements of the company’s strategy are to grow its business through technology investments; grow its business in existing geographic markets; increase penetration in its current industry vertical markets; expand and cross-sell additional services to drive incremental revenue; expand its geographic platform; and pursue opportunistic, strategic acquisitions.

Business Development

The company places a specific focus on marketing and relationship efforts that pertain to those clients or prospective clients having a large regional, national or international presence. Accordingly, the company assigns dedicated executives to these existing or prospective clients to manage the overall relationship, as well as to reinforce existing account relationships and to develop new relationships, as well as to take any other action that may further its business development interests.

Support Operations

The company maintains regional and city offices throughout the United States, Canada, Puerto Rico, the United Kingdom and India. These offices serve as the centralized locations through which the company provides the employees to staff its professional services, as well as the on-site and support management staff to oversee those operations. The company’s administrative staff is primarily based in those same offices and facilitate the efficient, accurate and timely production and delivery of client deliverables, such as monthly reporting and invoicing.

The company’s overall basic corporate functions in the areas of finance, human resources, risk management, legal, purchasing, general administration, strategy, and product and technology development are primarily based in its Chicago corporate office, as well as the Nashville support office. The company also performs product and technology development at its subsidiary in India.

Intellectual Property

SP Plus, SP+ and the SP+ logo, SP+ GAMEDAY, Sphere, Sphere Technology by SP+, Parking.com and the Parking.com logo, AeroParker, MetroParker, KMP Digitata, Standard Parking and the Standard Parking logo, Central Parking System, Central Parking Corporation, USA Parking, the Bags logo, and Making Every Moment Matter for a World on the Go, are some of the important trademarks and service marks utilized in the company’s business. The company invented the Multi-Level Vehicle Parking Facility Musical Theme Floor Reminder System. The company has also registered the copyright in its proprietary software, such as Client View, Hand Held Program, License Plate Inventory Programs and ParkStat with the United States Copyright Office. The company also owns the URLs parking.com, spplus.com, and maketraveleasier.com.

Regulation

In connection with ground transportation services and certain airline and cruise line transportation, baggage services and remote airline check-in services provided to the company’s clients, the U.S. Department of Transportation, including the Transportation Security Administration (the TSA), the Federal Aviation Administration (the FAA) and Department of Homeland Security, and various federal and state agencies, exercise broad powers over these certain transportation services, including shuttle bus operations, baggage delivery services, remote airline check-in, licensing and authorizations, safety, training and insurance requirements. The company’s employees must also comply with the various safety and fitness regulations promulgated by the U.S. Department of Transportation and other federal agencies, including those related to minimum training hours and requirements, drug and alcohol testing and service hours.

The company is also subject to consumer credit laws and credit card industry rules and regulations relating to the processing of credit card transactions, including the Fair and Accurate Credit Transactions Act and the Payment Card Data Security Standard. These laws and industry standards impose substantial financial penalties for non-compliance.

History

The company was founded in 1929. The company was incorporated in 1981. It was formerly known as Standard Parking Corporation and changed its name to SP Plus Corporation in 2013.