10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-50796

SP Plus Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware	16-1171179
(State or Other Jurisdiction of	(I.R.S. Employer Identification No.)
Incorporation or Organization)

200 E. Randolph Street, Suite 7700

Chicago, Illinois 60601-7702

(Address of Principal Executive Offices, Including Zip Code)

(312) 274-2000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	SP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class	Outstanding at August 2, 2023
Common Stock, $0.001 par value per share	19,649,611	Shares

SP PLUS CORPORATION

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	2
Item 1. Financial Statements	2
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Income	3
Condensed Consolidated Statements of Comprehensive Income	4
Condensed Consolidated Statements of Stockholders' Equity	5
Condensed Consolidated Statements of Cash Flows	6
Notes to Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures about Market Risk	31
Item 4. Controls and Procedures	31
PART II. OTHER INFORMATION	33
Item 1. Legal Proceedings	33
Item 1A. Risk Factors	33
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3. Defaults Upon Senior Securities	34
Item 4. Mine Safety Disclosures	34
Item 5. Other Information	34
Item 6. Exhibits	35
Signatures	36

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

SP Plus Corporation

Condensed Consolidated Balance Sheets

(millions, except for share and per share data)	June 30, 2023			December 31, 2022
	(unaudited)
Assets
Cash and cash equivalents	$	24.6		$	12.4
Accounts receivable, net		179.0			167.7
Prepaid expenses and other current assets		13.2			16.7
Total current assets		216.8			196.8
Property and equipment, net		65.2			60.2
Right-of-use assets		170.7			166.9
Goodwill		543.6			543.2
Other intangible assets, net		63.5			68.9
Deferred taxes		42.9			44.4
Other noncurrent assets		43.6			41.0
Total noncurrent assets		929.5			924.6
Total assets	$	1,146.3		$	1,121.4
Liabilities and stockholders’ equity
Liabilities
Accounts payable	$	136.6		$	133.4
Accrued and other current liabilities		117.7			137.6
Short-term lease liabilities		57.3			60.2
Current portion of long-term borrowings		13.5			12.4
Total current liabilities		325.1			343.6
Long-term borrowings, excluding current portion		352.2			331.8
Long-term lease liabilities		156.3			158.5
Other noncurrent liabilities		71.3			61.8
Total noncurrent liabilities		579.8			552.1
Total liabilities	$	904.9		$	895.7
Stockholders’ equity
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; no shares issued or outstanding	$	—		$	—
Common stock, par value $0.001 per share; 50,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 23,444,353 and 19,649,611 shares issued and outstanding as of June 30, 2023, respectively, and 23,276,329 and 19,767,287 shares issued and outstanding as of December 31, 2022, respectively		—			—
Treasury stock, at cost; 3,794,742 and 3,509,042 shares as of June 30, 2023 and December 31, 2022, respectively		(130.5	)		(120.0	)
Additional paid-in capital		278.5			274.2
Accumulated other comprehensive loss		(1.1	)		(1.8	)
Retained earnings		94.3			73.6
Total SP Plus Corporation stockholders’ equity		241.2			226.0
Noncontrolling interests		0.2			(0.3	)
Total stockholders’ equity		241.4			225.7
Total liabilities and stockholders’ equity	$	1,146.3		$	1,121.4

See Notes to Condensed Consolidated Financial Statements.

2

SP Plus Corporation

Condensed Consolidated Statements of Income

	Three Months Ended						Six Months Ended
(millions, except for share and per share data) (unaudited)	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Services revenue
Lease type contracts	$	76.3		$	70.6		$	144.5		$	133.2
Management type contracts		145.0			125.9			293.1			247.7
		221.3			196.5			437.6			380.9
Reimbursed management type contract revenue		220.9			184.5			429.9			349.9
Total services revenue		442.2			381.0			867.5			730.8
Cost of services (exclusive of depreciation and amortization)
Lease type contracts		62.3			55.9			117.5			107.9
Management type contracts		93.1			81.8			195.9			162.8
		155.4			137.7			313.4			270.7
Reimbursed management type contract expense		220.9			184.5			429.9			349.9
Total cost of services (exclusive of depreciation and amortization)		376.3			322.2			743.3			620.6
General and administrative expenses		31.8			26.7			62.4			51.2
Depreciation and amortization		8.8			6.5			17.2			13.3
Operating income		25.3			25.6			44.6			45.7
Other expense (income)
Interest expense		7.3			3.5			14.1			8.3
Interest income		(0.1	)		(0.1	)		(0.2	)		(0.3	)
Total other expenses		7.2			3.4			13.9			8.0
Earnings before income taxes		18.1			22.2			30.7			37.7
Income tax expense		4.8			5.9			8.1			10.1
Net income		13.3			16.3			22.6			27.6
Less: Net income attributable to noncontrolling interests		1.0			0.9			1.9			1.5
Net income attributable to SP Plus Corporation	$	12.3		$	15.4		$	20.7		$	26.1
Common stock data
Net income per common share
Basic	$	0.63		$	0.73		$	1.05		$	1.23
Diluted	$	0.62		$	0.72		$	1.04		$	1.22
Weighted average shares outstanding
Basic		19,631,772			21,195,819			19,666,684			21,211,299
Diluted		19,839,953			21,356,464			19,853,900			21,347,442

See Notes to Condensed Consolidated Financial Statements.

3

SP Plus Corporation

Condensed Consolidated Statements of Comprehensive Income

	Three Months Ended					Six Months Ended
(millions) (unaudited)	June 30, 2023		June 30, 2022			June 30, 2023		June 30, 2022
Net income	$	13.3	$	16.3		$	22.6	$	27.6
Reclassification of de-designated interest rate collars		—		0.1			—		0.5
Foreign currency translation gain (loss)		0.5		(0.2	)		0.7		(0.1	)
Comprehensive income		13.8		16.2			23.3		28.0
Less: Comprehensive income attributable to noncontrolling interests		1.0		0.9			1.9		1.5
Comprehensive income attributable to SP Plus Corporation	$	12.8	$	15.3		$	21.4	$	26.5

See Notes to Condensed Consolidated Financial Statements.

4

SP Plus Corporation

Condensed Consolidated Statements of Stockholders' Equity

	Common Stock
(millions, except share data) (unaudited)	Number of Shares Issued		Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Retained Earnings			Treasury Stock			Noncontrolling Interests			Total
Balance at January 1, 2023		23,276,329	$	—	$	274.2		$	(1.8	)	$	73.6		$	(120.0	)	$	(0.3	)	$	225.7
Net income		—		—		—			—			8.4			—			0.9			9.3
Foreign currency translation		—		—		—			0.2			—			—			—			0.2
Issuance of restricted stock units		148,806		—		(0.4	)		—			—			—			—			(0.4	)
Non-cash stock-based compensation		—		—		2.2			—			—			—			—			2.2
Noncontrolling interests buyout		—		—		(0.7	)		—				—		—			—			(0.7	)
Repurchases of common stock		—		—		—			—			—			(10.5	)		—			(10.5	)
Distributions to noncontrolling interests		—		—		—			—			—			—			(0.5	)		(0.5	)
Balance at March 31, 2023		23,425,135	$	—	$	275.3		$	(1.6	)	$	82.0		$	(130.5	)	$	0.1		$	225.3
Net income		—		—		—			—			12.3			—			1.0			13.3
Foreign currency translation		—		—		—			0.5			—			—			—			0.5
Issuance of restricted stock units		558		—		—			—			—			—			—			—
Issuance of stock grants		18,660		—		0.6			—			—			—			—			0.6
Non-cash stock-based compensation		—		—		2.6			—			—			—			—			2.6
Distributions to noncontrolling interests		—		—		—			—			—			—			(0.9	)		(0.9	)
Balance at June 30, 2023		23,444,353	$	—	$	278.5		$	(1.1	)	$	94.3		$	(130.5	)	$	0.2		$	241.4

	Common Stock
(millions, except share data) (unaudited)	Number of Shares Issued		Par Value		Additional Paid-In Capital		Accumulated Other Comprehensive Loss			Retained Earnings		Treasury Stock			Noncontrolling Interests			Total
Balance at January 1, 2022		23,224,459	$	—	$	267.5	$	(2.8	)	$	28.4	$	(70.6	)	$	(0.4	)	$	222.1
Net income		—		—		—		—			10.7		—			0.6			11.3
Foreign currency translation		—		—		—		0.1			—		—			—			0.1
Reclassification of de-designated interest rate collars		—		—		—		0.4			—		—			—			0.4
Issuance of restricted stock units		37,235		—		—		—			—		—			—			—
Non-cash stock-based compensation		—		—		1.8		—			—		—			—			1.8
Distributions to noncontrolling interests		—		—		—		—			—		—			(0.5	)		(0.5	)
Balance at March 31, 2022		23,261,694	$	—	$	269.3	$	(2.3	)	$	39.1	$	(70.6	)	$	(0.3	)	$	235.2
Net income		—		—		—		—			15.4		—			0.9			16.3
Foreign currency translation		—		—		—		(0.2	)		—		—			—			(0.2	)
Reclassification of de-designated interest rate collars		—		—		—		0.1			—		—			—			0.1
Issuance of stock grants		14,635		—		0.4		—			—		—			—			0.4
Non-cash stock-based compensation		—		—		2.2		—			—		—			—			2.2
Repurchases of common stock		—		—		—		—			—		(5.6	)		—			(5.6	)
Distributions to noncontrolling interests		—		—		—		—			—		—			(0.7	)		(0.7	)
Balance at June 30, 2022		23,276,329	$	—	$	271.9	$	(2.4	)	$	54.5	$	(76.2	)	$	(0.1	)	$	247.7

See Notes to Condensed Consolidated Financial Statements.

5

SP Plus Corporation

Condensed Consolidated Statements of Cash Flows

	Six Months Ended
(millions) (unaudited)	June 30, 2023			June 30, 2022
Operating activities
Net income	$	22.6		$	27.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		17.2			13.3
Non-cash stock-based compensation		5.4			4.4
Provisions (reversals) for credit losses on accounts receivable		0.7			(0.1	)
Deferred income taxes		1.8			2.8
Other		(1.7	)		1.3
Changes in operating assets and liabilities
Accounts receivable		(11.9	)		(13.4	)
Prepaid expenses and other current assets		3.5			10.3
Accounts payable		3.1			9.7
Accrued liabilities and other		(19.7	)		(20.2	)
Net cash provided by operating activities		21.0			35.7
Investing activities
Purchases of property and equipment		(11.3	)		(9.1	)
Acquisition of other intangible assets		—			(1.8	)
Proceeds from sale of equipment		—			0.2
Noncontrolling interest buyout		(2.2	)		—
Net cash used in investing activities		(13.5	)		(10.7	)
Financing activities
Proceeds from credit facility revolver		256.8			173.2
Payments on credit facility revolver		(232.9	)		(198.2	)
Proceeds from credit facility term loan		—			17.2
Payments on credit facility term loan		(2.5	)		(4.2	)
Payments of debt issuance costs		—			(2.5	)
Payments on other long-term borrowings		(3.8	)		(5.4	)
Payments of withholding taxes on share-based compensation		(0.4	)		—
Distributions to noncontrolling interests		(1.4	)		(1.2	)
Repurchases of common stock		(11.1	)		(4.9	)
Net cash provided by (used in) financing activities		4.7			(26.0	)
Effect of exchange rate changes on cash and cash equivalents		—			(0.1	)
Increase (decrease) in cash and cash equivalents		12.2			(1.1	)
Cash and cash equivalents at beginning of year		12.4			15.7
Cash and cash equivalents at end of period	$	24.6		$	14.6
Supplemental disclosures
Cash paid (received) during the period for
Interest	$	13.6		$	7.8
Income taxes, net	$	4.0		$	(12.7	)

See Notes to Condensed Consolidated Financial Statements.

6

SP Plus Corporation

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Significant Accounting Policies and Practices

The Company

SP Plus Corporation (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 is committed to providing solutions that make every moment matter for a world on the go while meeting the objectives of the Company's diverse client base in North America and Europe, which includes aviation, commercial, hospitality and institutional clients. The Company typically enters into contractual agreements with property owners or managers as opposed to owning facilities.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the financial statements have been condensed or omitted as permitted by such rules and regulations.

All adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation have been included. Operating results during the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any other interim period or the fiscal year ending December 31, 2023. The financial statements presented in this report should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 filed on February 24, 2023 with the Securities and Exchange Commission.

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and Variable Interest Entities ("VIEs") in which the Company is the primary beneficiary. The Company is the primary beneficiary of a VIE when the Company has the power to direct activities that most significantly affect the economic performance of the VIE. If the Company is not the primary beneficiary in a VIE and has significant influence, the Company accounts for the investment in the VIE as an equity method investment. As of June 30, 2023 and December 31, 2022, assets related to consolidated VIEs were $58.6 million and $57.1 million, respectively, which were primarily related to right-of-use (“ROU”) assets and property and equipment, net. As of June 30, 2023 and December 31, 2022, liabilities related to consolidated VIEs were $46.6 million and $50.9 million, respectively, which were primarily related to operating and finance lease liabilities. All intercompany profits, transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $0.6 million as of June 30, 2023 and December 31, 2022, and were included in Cash and cash equivalents within the Condensed Consolidated Balance Sheets.

Allowance for Doubtful Accounts

Accounts receivable, net of the allowance for doubtful accounts, represents the Company’s estimate of the amount that ultimately will be realized in cash. The Company reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and records adjustments to the allowance as necessary. The Company’s allowance for doubtful accounts, which was included in Accounts receivable, net, within the Condensed Consolidated Balance Sheets, was $4.1 million and $4.0 million as of June 30, 2023 and December 31, 2022, respectively.

Property and Equipment, Net

Property and equipment includes the Company's equipment, internal-use software, vehicles, leasehold improvements and construction/development in process. Property and equipment are stated at cost, less accumulated depreciation and amortization, whenever applicable.

Certain costs incurred in the planning and evaluation stage of internal-use software projects are recorded to expense as incurred. Costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and included as Software in Property and equipment, net, within the Condensed Consolidated Balance Sheets. When the internal-use software is ready for

7

its intended use, it is amortized on a straight-line basis over the estimated useful life of the internal-use software, which is typically 3 years.

Equipment and vehicles are depreciated on a straight-line basis over estimated useful lives ranging from 1 to 10 years. Expenditures for major renewals and improvements that extend the useful life of property and equipment, other than internal-use software, are capitalized. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or the useful lives of the improvements, whichever is shorter.

Equity Investments in Unconsolidated Entities

The Company has ownership interests in 25 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 19 are consolidated under the VIE or voting interest models and 6 are unconsolidated where the Company’s ownership interests range from 30-50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and the Company’s underlying share of each investee’s equity of $12.2 million and $11.9 million as of June 30, 2023 and December 31, 2022, respectively, was included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments were included in Services revenue - lease type contracts within the Condensed Consolidated Statements of Income. The equity earnings in these related investments were $0.6 million for the three months ended June 30, 2023 and 2022, and $1.3 million and $1.5 million during the six months ended June 30, 2023 and 2022, respectively.

Other Noncurrent Assets

Other noncurrent assets consisted of equity investments of unconsolidated entities, advances, deposits and cost of contracts, net, as of June 30, 2023 and December 31, 2022.

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of insurance, accrued rent, compensation, contingent consideration, payroll withholdings, property, payroll and other taxes and other accrued expenses as of June 30, 2023 and December 31, 2022.

Noncontrolling Interests

Noncontrolling interests represent the noncontrolling holders’ percentage share of income (losses) from the subsidiaries in which the Company holds a controlling interest, but less than 100 percent, ownership interest. The results of these subsidiaries are consolidated and included within the Condensed Consolidated Financial Statements.

During the six months ended June 30, 2023, the Company recorded a $1.0 million liability related to its estimate of additional consideration (“contingent consideration") due to a former minority partner that formerly held a noncontrolling interest in a joint venture with the Company. The Company purchased the minority partner’s interest in the joint venture in 2020. The contingent consideration is contingent on the performance of the operations of the Bradley International Airport. The contingent consideration is not capped and, if any amount is due, would be payable to the former minority partner in April 2025. The $1.0 million was determined based on a probability weighting of potential payouts and recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $0.3 million related to the contingent consideration during the six months ended June 30, 2023, which was recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. The Company will continue to evaluate the criteria for making these payments in the future and adjust the liability when deemed necessary.

Additionally, during the six months ended June 30, 2023, the Company paid a former minority partner $2.2 million per the terms of an agreement between the Company and the former minority partner. The Company purchased the former minority partner’s entire noncontrolling interest in a joint venture with the Company as of December 31, 2022. Per the terms of the agreement, the Company will be required to make additional payments to the former minority partner over a ten-year period, amounting to a total of $4.5 million. The $2.2 million that was paid during the six months ended June 30, 2023 was included in Accrued and other current liabilities within the Condensed Consolidated Balance Sheets as of December 31, 2022.

Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired. In accordance with the Financial Accounting Standards Board's ("FASB") authoritative accounting guidance on goodwill, the Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. The Company has elected to assess the impairment of goodwill annually on October 1 or at an interim date if there is an event or change in circumstances indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or the Company’s business strategy, and significant negative industry or economic trends.

8

The Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. If the Company determines impairment is present, the Company would need to perform a quantitative assessment. The determination of fair value of a reporting unit utilizes cash flow projections that assume certain future revenue and cost levels, comparable marketplace data, comparable company market valuations, assumed discount rates based upon current market conditions and other valuation factors, all of which involve the use of significant judgment and estimates. The Company also assesses critical areas that may impact its business, including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel.

Other Intangible Assets, net

Other intangible assets represent assets with finite lives that are amortized on a straight-line basis over their estimated useful lives. The Company evaluates other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. In addition, other intangible assets are reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Assumptions and estimates about future values and remaining useful lives of intangible assets are complex and subjective, and can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company's business strategy and forecasts. Although the Company believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results.

Long-Lived Assets

The Company evaluates long-lived assets, including ROU assets, leasehold improvements, equipment and construction/development in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection that demonstrates continuing losses associated with the use of a long-lived asset or asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset or asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If the asset or asset group is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset or asset group exceeds its fair value.

Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets or asset groups and could result in impairment charges. Future events that may result in impairment charges include economic volatility or other factors that could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs.

Foreign Operations

The Company has foreign operations in Canada, Puerto Rico, the United Kingdom and India. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the rate in effect on the respective balance sheet date, while income and expenses are translated at the average rates during the respective periods. Translation adjustments resulting from the fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss in stockholders’ equity within the Condensed Consolidated Balance Sheets, while transaction gains and losses are recorded within the Condensed Consolidated Statements of Income. Deferred taxes are not recorded on cumulative foreign currency translation adjustments when the Company expects the foreign earnings to be permanently reinvested.

2. Acquisitions

On October 11, 2022, the Company acquired K M P Associates Limited ("KMP"), a United Kingdom based software and technology provider serving aviation and commercial parking clients, primarily through its Aeroparker technology, throughout the United States and Europe, for approximately $13.8 million, less cash acquired of $0.9 million, and assumed KMP's debt of $0.3 million. Immediately following the acquisition, the Company repaid all of the debt assumed. KMP's operations are included in the Aviation segment.

On November 10, 2022, the Company acquired certain assets of DIVRT, Inc. ("DIVRT"), a developer of innovative software and technology solutions that enables frictionless parking capabilities, for approximately $17.6 million. In addition, the Company may be required to pay the former owner of DIVRT a maximum amount of $7.0 million in contingent consideration if certain targets related to the number of the Company's locations using the DIVRT technology are met by October 31, 2025. Based on a probability weighting of potential payouts, the Company accrued $4.0 million in projected contingent consideration as of the acquisition date, which was determined to be Level 3 under the fair value hierarchy. The Company's estimate of the potential payout increased to $4.3 million from $4.1 million as of June 30, 2023 and December 31, 2022, respectively. The increases were due to the changes in the present value of the estimated payout. The Company recorded $0.1 million and $0.2 million of operating expense within the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023, respectively, related to the change in the present value of the contingent consideration. The Company will continue to evaluate the potential payouts in the

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future and adjust the contingent consideration for any changes in the estimated fair value each reporting period. DIVRT's operations are included in the Commercial segment.

Both acquisitions enhance the Company's position as a global provider of frictionless technology solutions that are independent of the Company's legacy parking management and transportation related operations. The acquisitions of KMP and DIVRT have been accounted for as business combinations, and the assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition dates. Goodwill was measured as the excess of the consideration over the assets acquired, including other intangible assets, less liabilities assumed, based on their estimated fair values at the acquisition dates. Tax deductible goodwill related to the acquisitions was $10.1 million. The results of each acquisition's operations are reflected in the Condensed Consolidated Financial Statements from the date of acquisition.

During the three and six months ended June 30, 2023, the acquisitions contributed $1.6 million and $3.2 million, respectively, of services revenue and losses before income taxes of $0.8 million and $1.7 million, respectively, primarily due to the amortization related to the acquired other intangible assets.

The Company believes the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, however, the provisional measurements of fair value for the other intangible assets and goodwill of KMP and DIVRT are subject to change. As a result, during the measurement period, which may be up to one year from the acquisition dates, adjustments to assets and liabilities assumed will be recorded with corresponding adjustments to goodwill. The Company expects to complete the purchase price allocations for the KMP and DIVRT acquisitions as soon as practicable but no later than one year from the acquisition dates.

The estimated fair values of the assets acquired and liabilities assumed based on the information that was available as of the acquisition dates were as follows:

(millions)
Cash and cash equivalents	$	0.9
Accounts receivable		0.7
Prepaid expenses and other current assets		0.1
Other intangible assets		21.7
Goodwill		16.3
ROU asset		0.1
Accounts payable		(0.1	)
Accrued and other current liabilities		(1.5	)
Deferred tax liability		(2.5	)
Other long-term borrowings		(0.3	)
Net assets acquired and liabilities assumed		35.4
Less: cash and cash equivalents acquired		0.9
Less: contingent consideration payable		4.0
Net cash paid	$	30.5

In addition to the acquisitions discussed above, on April 18, 2022, the Company acquired certain other intangible assets for a purchase price of $1.8 million.

As discussed above, during the year ended December 31, 2022, the Company recorded additions to other intangible assets of $23.5 million. The other intangible assets acquired were recorded at their estimated fair value on the acquisition dates as follows:

(millions)	Estimated Life	Estimated Fair Value
Proprietary know how	7.4 Years	$	17.3
Customer relationships	5.8 Years		3.2
Trade names	13.2 Years		1.8
Covenant not to compete	4.2 Years	1.2
Estimated fair value of identified intangible assets		$	23.5

The fair values of other intangible assets acquired were determined to be Level 3 under the fair value hierarchy. The fair value estimate for all identifiable intangible assets is based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset.

The estimated fair values of Proprietary know how were determined using the multi-period excess earnings method under the income approach utilizing projected financial information for each technology that was acquired. The estimated fair value of the customer relationships was determined using the distributor method and excess earnings method under the income approach. The estimated fair values of the trade names were determined using the relief from royalty savings method under the income approach. The Company considered the return on assets and market comparable methods when estimating an appropriate royalty rate for the trade names.

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3. Leases

The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within leased parking facilities.

As discussed in Note 1. Significant Accounting Policies and Practices, the Company tests ROU assets when impairment indicators are present.

The components of ROU assets and lease liabilities and the classification within the Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022 were as follows:

(millions)	Classification	June 30, 2023		December 31, 2022
Assets
Operating	Right-of-use assets	$	170.7	$	166.9
Finance	Property and equipment, net		23.7		24.4
Total leased assets		$	194.4	$	191.3
Liabilities
Current
Operating	Short-term lease liabilities	$	57.3	$	60.2
Finance	Current portion of long-term borrowings		7.1		7.2
Noncurrent
Operating	Long-term lease liabilities		156.3		158.5
Finance	Long-term borrowings, excluding current portion		15.7		16.0
Total lease liabilities		$	236.4	$	241.9

The components of lease cost and classification within the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

		Three Months Ended				Six Months Ended
(millions)	Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating lease cost (a)(b)	Cost of services - lease type contracts	$	15.2	$	14.6	$	29.0	$	29.7
Short-term lease (a)	Cost of services - lease type contracts		5.3		5.3		10.2		10.4
Variable lease	Cost of services - lease type contracts		22.8		18.8		41.0		33.3
Operating lease cost			43.3		38.7		80.2		73.4
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.7		1.4		3.3		2.7
Interest on lease liabilities	Interest expense		0.3		0.3		0.6		0.5
Net lease cost		$	45.3	$	40.4	$	84.1	$	76.6

(a)Included expense related to leases for office space recorded in General and administrative expenses within the Condensed Consolidated Statements of Income of $0.9 million and $1.9 million during the three and six months ended June 30, 2023 and 2022, respectively.

(b)Included rent concessions amounting to $1.2 million and $2.5 million during the three and six months ended June 30, 2023, respectively, and $1.5 million and $3.7 million during the three and six months ended June 30, 2022, respectively.

Sublease income was $0.5 million and $0.3 million during the three months ended June 30, 2023 and 2022, respectively, and $1.0 million and $0.6 million during the six months ended June 30, 2023 and 2022, respectively.

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Maturities, lease term and discount rate information of lease liabilities as of June 30, 2023 (unaudited) were as follows:

(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2023	$	35.8		$	4.4		$	40.2
2024		59.1			7.0			66.1
2025		46.5			5.1			51.6
2026		35.6			3.8			39.4
2027		22.8			2.1			24.9
After 2027		48.7			3.1			51.8
Total lease payments		248.5			25.5			274.0
Less: Imputed interest		34.9			2.7			37.6
Present value of lease liabilities	$	213.6		$	22.8		$	236.4
Weighted-average remaining lease term (years)		5.2			4.2
Weighted-average discount rate		5.4	%		5.1	%

Future sublease income for the above periods shown was excluded, as the amounts are not material.

Supplemental cash flow information related to leases during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Six Months Ended
(millions)	June 30, 2023		June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	44.2	$	46.7
Operating cash outflows related to interest on finance leases		0.5		0.5
Financing cash outflows related to finance leases		3.8		5.4
Leased assets obtained in exchange for new operating liabilities		31.2		5.8
Leased assets obtained in exchange for new finance lease liabilities		3.5		4.9

4. Revenue

The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services.

Contracts with customers and clients

The Company accounts for a contract when it has the approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Once a contract is identified, the Company evaluates whether the contract should be accounted for as more than one performance obligation. Substantially all of the Company’s revenues come from the following two types of arrangements: Lease type and Management type contracts.

Lease type contracts

Lease type contract revenue includes gross receipts (net of local taxes), consulting fees, e-commerce technology fees, customer convenience fees, gains on sales of contracts and payments for exercising termination rights. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. Under lease type arrangements, the Company pays the property owner a fixed base rent, percentage rent that is tied to the facility’s financial performance, or a combination of both. The Company operates the parking facility and is responsible for most operating expenses, but typically is not responsible for major maintenance, capital expenditures or real estate taxes. Certain expenses, primarily rental expense for the contractual arrangements that meet the definition of service concession arrangements, are recorded as a reduction of Service revenue – lease type contracts.

Management type contracts

Management type contract revenue consists of management fees, including both fixed and performance-based fees, and in some cases e-commerce technology fees, customer convenience fees and monthly subscription fees related to the use of the Company's technology solutions. In exchange for this consideration, the Company may have a bundle of integrated services that comprise one performance obligation and include services such as managing the facility, as well as ancillary services such as accounting, equipment leasing, consulting, insurance and other value-added services. Management type contract revenues do not include gross customer collections at the managed facilities as these revenues belong to the property owners rather than the Company. Management type contracts generally provide the Company with management fees regardless of the operating performance of the underlying facilities. Revenue is recognized over time as the Company provides services.

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Service concession arrangements

Certain expenses (primarily rental expense), as well as depreciation and amortization, related to service concessions arrangements for lease type contracts, are recorded as a reduction of Service revenue – lease type contracts.

The Company recorded cost concessions related to service concession arrangements (recognized as an increase to revenue) of $2.7 million and $5.6 million during the three and six months ended June 30, 2023, respectively, and $2.9 million and $6.1 million during the three and six months ended June 30, 2022, respectively.

Disaggregation of revenue

The Company disaggregates its revenue from contracts with customers by type of arrangement for each of the reportable segments. The Company has concluded that such disaggregation of revenue best depicts the overall economic nature, timing and uncertainty of the Company's revenue and cash flows affected by the economic factors of the respective contractual arrangement. See Note 13. Segment Information for further information on disaggregation of the Company's revenue by segment.

Performance obligations

As of June 30, 2023, the Company had $199.2 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. This amount excludes variable consideration primarily related to contracts where the Company and customer share the gross revenues or operating profit for the location and contracts where transaction prices include performance incentives that are constrained at contract inception. These performance incentives are based on measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception by the Company. The Company applies the practical expedient that permits exclusion of information about the remaining performance obligations that have original expected durations of one year or less.

The Company expects to recognize the remaining performance obligations as revenue in future periods as follows:

(millions) (unaudited)	Remaining Performance Obligations
2023	$	40.5
2024		58.8
2025		37.2
2026		28.6
2027		17.1
2028 and thereafter		17.0
Total	$	199.2

Contract balances

Contract assets and liabilities are reported on a contract-by-contract basis and are included in Accounts receivable, net, and Accrued and other current liabilities, respectively, within the Condensed Consolidated Balance Sheets.

The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of June 30, 2023 (unaudited) and December 31, 2022:

(millions)	June 30, 2023			December 31, 2022
Accounts receivable	$	180.6		$	169.9
Contract asset		2.5			1.8
Contract liabilities		(12.3	)		(17.4	)

Changes in contract assets, which include the recognition of additional consideration due from the client, are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract assets during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	1.8		$	2.3
Additional contract assets		2.5			—
Reclassification to accounts receivable		(1.8	)		(2.3	)
Balance, end of period	$	2.5		$	—

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Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liabilities during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	(17.4	)	$	(15.7	)
Additional contract liabilities		(12.3	)		(8.3	)
Recognition of revenue from contract liabilities		17.4			15.7
Balance, end of period	$	(12.3	)	$	(8.3	)

Cost of contracts, net

Cost of contracts expense related to service concession arrangements and certain management type contracts are recorded as a reduction of revenue. Cost of contracts expense during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included as a reduction to Services revenue – management type contracts within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Cost of contracts expense	$	0.3	$	0.3	$	0.5	$	0.5

As of June 30, 2023 (unaudited) and December 31, 2022, cost of contracts, net of accumulated amortization, included in Other noncurrent assets within the Condensed Consolidated Balance Sheets was $2.7 million and $2.9 million, respectively.

5. Legal and Other Commitments and Contingencies

The Company is subject to claims and litigation in the normal course of its business, including those related to labor and employment, contracts, personal injury and other related matters, some of which allege substantial monetary damages and claims. Some of these actions may be brought as class actions on behalf of a class or purported class of employees. While the outcomes of claims and legal proceedings brought against the Company are subject to uncertainty, the Company believes the final outcome will not have a material adverse effect on its financial position, results of operations or cash flows.

6. Other Intangible Assets, net

The components of other intangible assets, net, as of June 30, 2023 (unaudited) and December 31, 2022, were as follows:

			June 30, 2023							December 31, 2022
(millions)	Weighted Average Life (Years)		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net
Covenant not to compete		3.4	$	2.9	$	(1.8	)	$	1.1	$	2.9	$	(1.4	)	$	1.5
Trade names and trademarks		12.0		3.0		(0.9	)		2.1		2.8		(0.7	)		2.1
Proprietary know how		6.4		22.0		(4.4	)		17.6		21.7		(2.7	)		19.0
Management contract rights		6.0		81.0		(55.4	)		25.6		81.0		(52.9	)		28.1
Customer relationships		8.1		24.9		(7.8	)		17.1		24.8		(6.6	)		18.2
Other intangible assets, net		6.8	$	133.8	$	(70.3	)	$	63.5	$	133.2	$	(64.3	)	$	68.9

Amortization expense related to other intangible assets during the three and six months ended June 30, 2023 and 2022, (unaudited), respectively, which was included in Depreciation and amortization within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Amortization expense	$	3.0	$	2.1	$	6.0	$	4.9

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7. Goodwill

The changes in the carrying amount of goodwill during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Commercial		Aviation			Total
Net book value as of December 31, 2022
Goodwill	$	387.0	$	215.7		$	602.7
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.0	$	156.2		$	543.2
Foreign currency translation		0.1		0.3			0.4
Net book value as of June 30, 2023
Goodwill	$	387.1	$	216.0		$	603.1
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.1	$	156.5		$	543.6

8. Borrowing Arrangements

Long-term borrowings, as of June 30, 2023 (unaudited) and December 31, 2022, in order of preference, were as follows:

	Amount Outstanding
(millions)	June 30, 2023			December 31, 2022
Senior Credit Facility, net of original discount on borrowings(1)	$	343.9		$	322.3
Other borrowings(2)		23.9			24.3
Deferred financing costs		(2.1	)		(2.4	)
Total obligations		365.7			344.2
Less: Current portion of long-term borrowings		13.5			12.4
Total long-term borrowings, excluding current portion	$	352.2		$	331.8

(1)Included discount on borrowings of $1.1 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively.

(2)Included finance lease liabilities of $22.8 million and $23.2 million as of June 30, 2023 and December 31, 2022, respectively. See Note 3. Leases for further discussion.

Senior Credit Facility

On April 21, 2022 (the “Fifth Amendment Effective Date”), the Company entered into a fifth amendment (the “Fifth Amendment”) to the Company’s credit agreement (as amended prior to the Fifth Amendment Effective Date, the “Credit Agreement”; the Credit Agreement, as amended by the Fifth Amendment, the “Amended Credit Agreement”) with Bank of America, N.A. (“Bank of America”), as Administrative Agent, swing-line lender and a letter of credit issuer; certain subsidiaries of the Company, as guarantors; and the lenders party thereto (the “Lenders”), pursuant to which the Lenders have made available to the Company a senior secured credit facility (the “Senior Credit Facility”). The Senior Credit Facility permits aggregate borrowings of $600.0 million consisting of (i) a revolving credit facility of up to $400.0 million at any time outstanding, which includes a letter of credit facility that is limited to $100.0 million at any time outstanding, and (ii) a term loan facility of $200.0 million. The maturity date of the Senior Credit Facility is April 21, 2027.

As of June 30, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement.

As of June 30, 2023, the Company had $39.1 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $345.0 million.

The weighted average interest rate on the Senior Credit Facility was 6.5% and 3.3% during the six months ended June 30, 2023 and 2022, respectively. That rate included the letters of credit for both years and interest rate collars during the three months ended June 30, 2022. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 7.0% and 3.4% during the six months ended June 30, 2023 and 2022, respectively.

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Subordinated Convertible Debentures

The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the October 2, 2012 acquisition of Central Parking Corporation. As of October 2, 2012, the Convertible Debentures were no longer redeemable for shares. The Convertible Debentures mature April 1, 2028 at $25 per share. The Convertible Debenture holders have the right to redeem the Convertible Debentures for $19.18 per share upon acceleration or earlier repayment of the Convertible Debentures. There have been no redemptions of the Convertible Debentures during the periods ended June 30, 2023 and December 31, 2022. The approximate redemption value of the Convertible Debentures outstanding as of June 30, 2023 and December 31, 2022 was $1.1 million.

9. Stock Repurchase Program

On February 14, 2023, the Company's Board of Directors (the "Board") authorized the Company to repurchase, on the open market, shares of the Company's outstanding common stock in an amount not to exceed $60.0 million. No shares have been repurchased under this program.

In May 2022, the Board authorized the Company to repurchase, on the open market, shares of the Company’s outstanding common stock in an amount not to exceed $60.0 million in aggregate. During the six months ended June 30, 2023, 285,700 shares were repurchased at an average price of $36.53 per share under this program. As of June 30, 2023, $0.2 million remained available for repurchase under this program.

Stock repurchase activity under the May 2022 stock repurchase program during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

(millions, except for share and per share data)	June 30, 2023		June 30, 2022
Total number of shares repurchased		285,700		176,500
Average price paid per share	$	36.53	$	31.51
Total value of common stock repurchased	$	10.4	$	5.6

No stock repurchases were made during the three months ended June 30, 2023 or the three months ended March 31, 2022.

The Company recorded $0.1 million in additional paid-in capital within the Condensed Consolidated Balance Sheets during the six months ended June 30, 2023, related to the excise tax on net repurchases of common stock that was a provision of the Inflation Reduction Act of 2022.

The remaining authorized repurchase amount under the May 2022 and February 2023 stock repurchase programs as of June 30, 2023 (unaudited), was as follows:

(millions)	June 30, 2023
Total authorized repurchase amount	$	120.0
Total value of shares repurchased		59.8
Total remaining authorized repurchase amount	$	60.2

10. Stock-Based Compensation

Stock Grants

The Company granted 18,660 and 14,635 shares of common stock to the Board during the six months ended June 30, 2023 and 2022, respectively. The Company recognized $0.6 million and $0.4 million of stock-based compensation expense related to stock grants during the three and six months ended June 30, 2023 and 2022, respectively.

Restricted Stock Units

During the six months ended June 30, 2023, the Company granted 126,931 restricted stock units to certain executives that vest over three years. During the six months ended June 30, 2022, the Company granted 1,057 and 135,054 restricted stock units to certain executives and employees that vest over one and three years, respectively.

Nonvested restricted stock units as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited) were as follows:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		338,448		$	33.28
Granted		126,931			34.57
Vested		(8,426	)		35.95
Nonvested as of June 30, 2023		456,953		$	33.62

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The Company's stock-based compensation expense related to the restricted stock units during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.4	$	1.5	$	2.5	$	2.8

As of June 30, 2023, there was $8.2 million of unrecognized stock-based compensation expense related to restricted stock units that are expected to be recognized over a weighted average remaining period of approximately 2.0 years.

Performance Share Units (“PSUs”)

During the six months ended June 30, 2023 and 2022, the Company granted 126,921 and 132,304 PSUs, respectively, to certain executives. The performance target is based on the achievement of a certain level of operating income, excluding depreciation and amortization, as well as certain other discretionary adjustments by the Board, over a three-year performance period. The ultimate number of shares issued could change depending on the Company’s results over the performance period. The maximum amount of shares that could be issued for the PSU's granted in 2023 ("2023 PSUs"), the PSU's granted in 2022 ("2022 PSUs") and the PSU's granted in 2021 ("2021 PSUs") are 253,842, 258,114 and 97,096, respectively. The Company is currently recognizing expense for the 2023 PSUs based on a payout of 130,729 shares, the 2022 PSUs based on a payout of 197,457 shares, and the maximum payout of 97,096 shares for the 2021 PSUs.

Nonvested PSUs as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited), were as follows:

	Shares		Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		177,605	$	31.94
Granted		126,921		34.57
Nonvested as of June 30, 2023		304,526	$	33.04

The Company's stock-based compensation expense related to PSUs during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.2	$	0.7	$	2.3	$	1.2

As of June 30, 2023, there was $7.8 million of unrecognized stock-based compensation expenses related to PSUs that are expected to be recognized over a weighted average remaining period of approximately 1.9 years. In addition, the Company could recognize additional future stock-based compensation expense of $4.3 million and $1.9 million for the 2023 PSUs and the 2022 PSUs, respectively, if the maximum performance target is achieved for each award.

11. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per common share is based upon the weighted daily average number of shares of common stock outstanding during the period plus all potentially dilutive stock-based awards, including restricted stock and performance share units, using the treasury-stock method. Unvested performance share units are excluded from the computation of weighted average diluted common shares outstanding if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the period.

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Basic and diluted net income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding during the three and six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Three Months Ended				Six Months Ended
(millions, except share and per share data)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income attributable to SP Plus Corporation	$	12.3	$	15.4	$	20.7	$	26.1
Basic weighted average common shares outstanding		19,631,772		21,195,819		19,666,684		21,211,299
Dilutive impact of share-based awards		208,181		160,645		187,216		136,143
Diluted weighted average common shares outstanding		19,839,953		21,356,464		19,853,900		21,347,442
Net income per common share
Basic	$	0.63	$	0.73	$	1.05	$	1.23
Diluted	$	0.62	$	0.72	$	1.04	$	1.22

There were no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per common share, other than those disclosed.

12. Comprehensive Income (Loss)

The components of other comprehensive income (loss) and the income tax benefit allocated to each component during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(millions)	Before Tax Amount		Income Tax		Net of Tax Amount		Before Tax Amount		Income Tax		Net of Tax Amount
Translation adjustments	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7
Other comprehensive income	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7

	Three Months Ended June 30, 2022								Six Months Ended June 30, 2022
(millions)	Before Tax Amount			Income Tax		Net of Tax Amount			Before Tax Amount			Income Tax		Net of Tax Amount
Translation adjustments	$	(0.2	)	$	—	$	(0.2	)	$	(0.1	)	$	—	$	(0.1	)
De-designation of interest rate collars		0.1			—		0.1			0.7			0.2		0.5
Other comprehensive income (loss)	$	(0.1	)	$	—	$	(0.1	)	$	0.6		$	0.2	$	0.4

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	(1.8	)	$	(1.8	)
Other comprehensive income before reclassification		0.7			0.7
Balance as of June 30, 2023	$	(1.1	)	$	(1.1	)

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2022 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Interest Rate Collars			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2021	$	(2.3	)	$	(0.5	)	$	(2.8	)
Other comprehensive loss before reclassification		(0.1	)		—			(0.1	)
Amounts reclassified from accumulated other comprehensive loss		—			0.5			0.5
Balance as of June 30, 2022	$	(2.4	)	$	—		$	(2.4	)

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Reclassifications from accumulated other comprehensive loss during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

(millions)	Three Months Ended June 30				Six Months Ended June 30				Classification in the Condensed Consolidated Statements of Income
Interest Rate Collars:	2023		2022		2023		2022
Net realized loss	$	—	$	0.1	$	—	$	0.7	Other expenses
Reclassifications before tax		—		0.1		—		0.7
Income tax benefit		—		—		—		0.2
Reclassifications, net of tax	$	—	$	0.1	$	—	$	0.5

13. Segment Information

Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. The CODM is the Company’s chief executive officer.

Each of the operating segments are directly responsible for revenue and expenses related to their operations, including direct segment general and administrative expenses. The CODM assesses the performance of each operating segment using information about operating income (loss) as its primary measure of performance, but does not evaluate segments using discrete asset information. Therefore, assets are not presented at the segment level. There were no inter-segment transactions during the three and six months ended June 30, 2023, and the Company does not allocate other expense (income), interest expense (income) or income tax expense (benefit) to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

The Company’s operating segments are Commercial and Aviation:

•Commercial encompasses the Company's services in healthcare facilities, municipalities, including meter revenue collection and enforcement services, government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as providing technology-based mobility solutions, shuttle and ground transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services.

•Aviation encompasses the Company's services in aviation (i.e., airports, airline and certain hospitality clients with baggage and parking services) as well as ancillary services, which include shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services, as well as providing technology-based mobility solutions.

The Other segment includes costs related to the Company’s operational support teams and costs related to common and shared infrastructure, including finance, accounting, information technology, human resources, procurement, legal and corporate development.

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Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended						Six Months Ended
(millions)	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Services revenue
Commercial
Lease type contracts	$	72.4		$	67.1		$	137.0		$	126.3
Management type contracts		75.2			65.8			155.0			137.8
Total Commercial		147.6			132.9			292.0			264.1
Aviation
Lease type contracts		3.9			3.5			7.5			6.9
Management type contracts		69.8			60.1			138.1			109.9
Total Aviation		73.7			63.6			145.6			116.8
Reimbursed management type contract revenue		220.9			184.5			429.9			349.9
Total services revenue	$	442.2		$	381.0		$	867.5		$	730.8
Operating income (loss)
Commercial	$	36.1		$	34.7		$	67.3		$	63.3
Aviation		9.6			8.5			18.2			16.6
Other		(20.4	)		(17.6	)		(40.9	)		(34.2	)
Total operating income	$	25.3		$	25.6		$	44.6		$	45.7
General and administrative expenses
Commercial	$	9.3		$	7.8		$	17.5		$	13.9
Aviation		4.0			2.9			7.9			5.6
Other		18.5			16.0			37.0			31.7
Total general and administrative expenses	$	31.8		$	26.7		$	62.4		$	51.2
Depreciation and amortization
Commercial(1)	$	3.8		$	2.8		$	7.4		$	5.8
Aviation(2)		3.1			2.1			5.9			5.0
Other		1.9			1.6			3.9			2.5
Total depreciation and amortization	$	8.8		$	6.5		$	17.2		$	13.3

(1)Included depreciation and amortization expenses related to cost of services activities of $2.2 million and $1.6 million during the three months ended June 30, 2023 and 2022, respectively, and $4.1 million and $3.4 million during the six months ended June 30, 2023 and 2022, respectively.

(2)Included depreciation and amortization expenses related to cost of service activities of $1.5 million and $1.1 million during the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.2 million during the six months ended June 30, 2023 and 2022, respectively.

14. Subsequent Event

On July 25, 2023, the Company acquired certain assets of Roker Inc., a United States based provider of fully-integrated parking solutions that simplify permit, violation and enforcement management for organizations and municipalities, for approximately $3.1 million. The Company utilized borrowings under its Senior Credit Facility and cash on hand to fund the acquisition.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of SP Plus Corporation’s (“we”, “us” or “our”) results of operations should be read in conjunction with the condensed consolidated financial statements and the notes thereto contained in this Quarterly Report on Form 10-Q and the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Important Information Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q is being filed by us with the Securities and Exchange Commission (“SEC”) and contains forward-looking statements. These statements are typically accompanied by the words “expect,” “estimate,” “intend”, “will,” “predict,” “project,” “may,” “should,” “could,” “believe,” “would,” “might,” “anticipate,” or similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. These expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as enacted under the Private Securities Litigation Reform Act of 1995. These forward looking statements are made based on our expectations, beliefs and projections concerning future events and are subject to uncertainties and factors relating to operations and the business environment, all of which are difficult to predict and many of which are beyond our control. These forward-looking statements are not guarantees of future performance and there can be no assurance that our expectations, beliefs and projections will be realized. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

Our actual results, performance and achievements could be materially different from those expressed in, or implied by, our forward-looking statements. Important factors which could cause or contribute to our actual results, performance or achievements being different from those expressed in, or implied by, our forward-looking statements include, but are not limited to, those discussed in Part I, Item 1A. Risk Factors of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and other documents we file with the SEC, which should be read in conjunction with the forward-looking statements in this report. Forward-looking statements speak only as of the date they are made, and except as expressly required by the federal securities laws, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, changes in circumstances, future events or for any other reason.

Overview

Acquisitions

On October 11, 2022, we acquired K M P Associates Limited ("KMP"), a United Kingdom based software and technology provider serving aviation and commercial parking clients, primarily through its AeroParker technology, throughout the United States and Europe, for approximately $13.8 million, less cash acquired of $0.9 million, and assumed KMP’s debt of $0.3 million. Immediately following the acquisition, we repaid all of the debt assumed. KMP’s operations are included in the Aviation segment.

On November 10, 2022, we acquired certain assets of DIVRT, Inc. ("DIVRT"), a developer of innovative software and technology solutions that enables frictionless parking capabilities, for approximately $17.6 million. In addition, we may be required to pay the former owner of DIVRT a maximum amount of $7.0 million in contingent consideration if certain targets related to the number of our locations using the DIVRT technology are met by October 31, 2025. Based on a probability weighting of potential payouts, we accrued $4.0 million in projected contingent consideration as of the acquisition date. Our estimate of the potential payout increased to $4.3 million as of June 30, 2023, due to the changes in the present value of the estimated payout. We will continue to evaluate the potential payouts in the future and adjust the contingent consideration for any changes in the estimated fair value each reporting period. DIVRT’s operations are included in the Commercial segment.

As discussed in Note 14. Subsequent Events within the notes to the Condensed Consolidated Financial Statements, we recently acquired Roker Inc.

The acquisitions noted above enhance our position as a global provider of frictionless technology solutions that are independent of our legacy parking management and transportation related operations.

Our Business

We develop and integrate 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. We are committed to providing solutions that make every moment matter for a world on the go while meeting the objectives of our diverse client base in North America and Europe, which includes aviation, commercial, hospitality and institutional clients.

We typically enter into contractual relationships with property owners or managers as opposed to owning facilities. We primarily operate under two types of arrangements: management type contracts and lease type contracts.

•Under a management type contract, we typically receive a fixed and/or variable monthly fee for providing our services, and may receive an incentive fee based on the achievement of certain performance objectives. We also receive fees for ancillary services such as accounting support services, equipment leasing and consulting. Typically, all of the underlying revenue and expenses under a standard management type contract flow through to our client rather than to us. However,

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some management type contracts, which are referred to as “reverse” management type contracts, usually provide for larger management fees and require us to pay various costs.

•Under a lease type contract, we generally pay our clients either a fixed base rent or fee, percentage of rent that is tied to the financial performance of the operation, or a combination of both. We collect all revenue and are responsible for most operating expenses, but typically are not responsible for major maintenance, capital expenditures or real estate taxes. Margins for lease type contracts vary significantly, not only due to operating performance, but also due to variability of parking rates in different cities and varying space utilization by parking facility type and location.

As of June 30, 2023, in our Commercial segment, we operated approximately 87% of our locations under management type contracts and 13% under lease type contracts, while in our Aviation segment, we served 160 airports across North America and Europe.

In evaluating our financial condition and operating performance, our primary area of focus is on our operating income. Revenue from lease type contracts includes all gross customer collections derived from our leased locations (net of local taxes), whereas revenue from management type contracts only includes our contractually agreed upon management fees and amounts attributable to ancillary services. Gross customer collections at facilities under management type contracts, therefore, are not included in our revenue. Accordingly, while a change in the proportion of our operating agreements that are structured as lease type contracts may cause significant fluctuations in reported revenue and cost of services, our operating income under lease type contracts will be comparable to the operating income under management type contracts.

General Business Trends

We believe that sophisticated clients recognize the potential for technology-driven mobility solutions, parking services, parking management, ground transportation services, baggage handling services and other ancillary services to be a profit generator and/or a service differentiator to their customers. By outsourcing these services, our clients are able to capture additional profit and improve customer experiences by leveraging the unique technology, operational skills and controls that an experienced services and technology solutions provider can offer. Our ability to consistently deliver a uniformly high level of services to our clients, including the use of various technology solutions and enhancements, allows us to maximize the profit and/or customer experience for our clients and improves our ability to win contracts and retain existing clients. Our focus on customer service and satisfaction is a key driver of our high retention rate, which was approximately 94% and 91% for the twelve-month periods ended June 30, 2023 and 2022, respectively, for our Commercial segment facilities.

Commercial Segment Facilities

The following table reflects our Commercial facilities (by contractual type) operated on the dates indicated:

	June 30, 2023		December 31, 2022		June 30, 2022
Leased facilities		414		421		428
Managed facilities		2,842		2,709		2,660
Total Commercial segment facilities		3,256		3,130		3,088

Aviation Segment - Airports Served

The following table reflects the number of airports where at least one of our services was provided as of dates indicated:

	June 30, 2023		December 31, 2022		June 30, 2022
North America		102		100		90
Europe		58		58		—
Total Airports		160		158		90

The increase as of December 31, 2022 included 65 unique airports added as a result of the acquisition of KMP.

Revenue

We recognize services revenue from our contracts and certain fees for using our technology-driven mobility solutions as the related services are provided. Substantially all of our revenue comes from the following sources:

Lease type contracts. Consists of all revenue received at lease type locations, including gross receipts (net of local taxes), consulting and real estate development fees, e-commerce technology fees, customer convenience fees, gains on sales of contracts and payments for exercising termination rights. As discussed in Note 4. Revenue in the notes to the Condensed Consolidated Financial Statements, revenue from lease type contracts includes a reduction for certain expenses (primarily rent expense) related to service concession arrangements.

Management type contracts. Consists of management fees, including fixed, variable and/or performance-based fees, and in some cases e-commerce technology fees, customer convenience fees and monthly subscription fees related to the use of the

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Company’s technology solutions and amounts attributable to ancillary services such as accounting, equipment leasing, baggage services, payments received for exercising termination rights, consulting, developmental fees, gains on sales of contracts, insurance and other value-added services. We believe we generally can purchase required insurance at lower rates than our clients can obtain on their own because we effectively self-insure for all liability, worker’s compensation and health care claims by maintaining a large per-claim deductible. As a result, we generate operating income on the insurance provided under our management type contracts by focusing on our risk management efforts and controlling losses. Management type contract revenues do not include gross customer collections, as those revenues belong to the client rather than to us. Management type contracts generally provide us with a management fee regardless of the operating performance of the underlying facility. In addition, management type contract revenue includes revenue related to our other aviation services. Other aviation services include our baggage delivery services, curbside concierge services, remote airline check-in services and other miscellaneous services provided to our airport and airline clients.

Reimbursed Management Type Contract Revenue. Consists of the direct reimbursement from the client for operating expenses incurred under a management type contract.

Cost of Services (Exclusive of Depreciation and Amortization)

Our cost of services consists of the following:

Lease type contracts. Consists of contractual rents or fees paid to the client and all operating expenses incurred in connection with operating the leased facility. Contractual rents or fees paid to the client are generally based on either a fixed contractual amount, a percentage of gross revenue or a combination thereof. Generally, under a lease type arrangement, we are not responsible for major capital expenditures or real estate taxes.

Management type contracts. Expenses under a management type contract are generally the responsibility of the client. As a result, these costs are not included in cost of services. However, “reverse” management type contracts, which typically provide for larger management fees, do require us to pay for certain costs, which are included in cost of services. In addition, certain costs related to providing our other aviation and ancillary services are included in cost of services.

Reimbursed Management Type Contract Expense. Consists of directly reimbursed costs incurred on behalf of a client under a management type contract.

Gross Profit

Gross profit equals our revenue less the cost of generating such revenue (“cost of services”) and depreciation and amortization expenses related to cost of services activities.

General and Administrative Expenses

General and administrative expenses include salaries, wages, incentive compensation, stock-based compensation, payroll taxes, insurance, travel and office related expenses for our headquarters, field offices and supervisory employees. Additionally, acquisition-related expenses are included in general and administrative expenses.

Depreciation and Amortization

Depreciation is determined using a straight-line method over estimated useful lives of the various asset classes, or in the case of leasehold improvements, over the term of the operating lease or its useful life, whichever is shorter. Intangible assets determined to have finite lives, usually acquired through the acquisition of businesses, are amortized over their remaining estimated useful life.

Operating Income

Operating income represents revenue less cost of services, general and administrative expenses and depreciation and amortization. This is the key metric our Chief Operating Decision Maker (“CODM”) uses for making decisions, assessing performance and allocating resources to our Operating Segments, Commercial and Aviation.

Segments

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. Our CODM is our chief executive officer. The CODM uses this separate discrete financial information by segment to allocate resources and assess performance, primarily based on operating income.

Our operating segments are Commercial and Aviation, which are described below.

•Commercial encompasses our services in healthcare facilities, municipalities, including meter revenue collection and enforcement services, government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as providing technology-driven mobility solutions, shuttle and ground

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transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services.

•Aviation encompasses our services in aviation (e.g., airports, airline and certain hospitality clients with baggage and parking services), as well as ancillary services, which includes shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services, as well as providing technology-driven mobility solutions.

The Other segment includes costs related to our operational support teams and costs related to common and shared infrastructure, including finance, accounting, information technology, human resources, procurement, legal and corporate development.

Analysis of Results of Operations

New business relates to contracts that started during the current period. Contract terminations relate to contracts that have expired or terminated early during the current period but where we were operating the business in the comparative period presented. Conversions relate to contracts that were converted from lease type contracts to management type contracts after the prior year period.

Restructuring, integration and other costs include compensation expenses related to organizational changes within our Company, integration expenses related to our recent acquisitions, and severance and other costs primarily related to workforce reductions.

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

Consolidated results during the three months ended June 30, 2023 and 2022, respectively, included the following notable items:

	Three Months Ended				Variance
(millions) (unaudited)	June 30, 2023		June 30, 2022		Amount			%
Services revenue	$	442.2	$	381.0	$	61.2			16.1	%
Cost of services (exclusive of depreciation and amortization)		376.3		322.2		54.1			16.8	%
General and administrative expenses		31.8		26.7		5.1			19.1	%
Depreciation and amortization		8.8		6.5		2.3			35.4	%
Operating income		25.3		25.6		(0.3	)		(1.2	)%
Interest expense		7.3		3.5		3.8			108.6	%
Income tax expense		4.8		5.9		(1.1	)		(18.6	)%
Net income		13.3		16.3		(3.0	)		(18.4	)%

Services revenue increased by $61.2 million, or 16.1%, attributable to the following:

•Services revenue for lease type contracts increased $5.7 million, or 8.1%, primarily due to an increase in transient and monthly parking revenue as a result of the continued recovery in travel and fewer restrictions on mobility, as well as new business, partially offset by terminations and lower cost concessions related to service concession arrangements of $2.7 million during the three months ended June 30, 2023 as compared to $2.9 million during the three months ended June 30, 2022.

•Services revenue for management type contracts increased $19.1 million, or 15.2%, primarily due to an increase in volume related to our baggage delivery businesses and volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility, as well as increased volume related to other aviation services, new business and revenue from acquisitions of $1.1 million, partially offset by terminations.

•Reimbursed management type contract revenue was $220.9 million and $184.5 million during the three months ended June 30, 2023 and 2022, respectively. The increase in reimbursed management type contract revenue was primarily due to the continued recovery in travel and fewer restrictions on mobility, new business and revenue from acquisitions of $0.5 million, partially offset by terminations.

Cost of services (exclusive of depreciation and amortization) increased by $54.1 million, or 16.8%, attributable to the following:

•Cost of services (exclusive of depreciation and amortization) for lease type contracts increased $6.4 million, or 11.4%, primarily due to higher operating costs as a result of the continued recovery in travel and fewer restrictions on mobility, new business and lower cost concessions related to rent concessions of $1.2 million during the three months ended June 30, 2023 as compared to $1.5 million during the three months ended June 30, 2022, partially offset by terminations.

•Cost of services (exclusive of depreciation and amortization) for management type contracts increased $11.3 million, or 13.8%, primarily due to higher operating costs as a result of the continued recovery in travel and fewer restrictions on

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mobility related to our baggage delivery businesses, reverse management contracts and other aviation services, as well as new business and acquisitions, partially offset by terminations.

•Reimbursed management type contract expense was $220.9 million and $184.5 million during the three months ended June 30, 2023 and 2022, respectively. The increase in reimbursed management type contract cost of services was primarily due to the continued recovery in travel and fewer restrictions on mobility, new business and acquisitions of $0.5 million, partially offset by terminations.

General and administrative expenses increased $5.1 million, or 19.1%, primarily due to higher compensation and non-cash stock-based compensation expenses and our continued investments in business development, technology deployment and other growth initiatives, as well as higher restructuring, integration, acquisition and other costs of $1.3 million during the three months ended June 30, 2023 as compared to $0.3 million during the three months ended June 30, 2022.

Depreciation and amortization expenses increased $2.3 million, or 35.4%, primarily due to the amortization of other intangible assets related to the recent acquisitions and our continued investment in technology and growth initiatives.

Our effective tax rate was 26.5% and 26.6% during the three months ended June 30, 2023 and 2022, respectively.

Net income decreased $3.0 million, or 18.4%, primarily due to higher interest expense as a result of higher variable interest rates and the factors noted above, partially offset by lower income taxes.

The following tables summarize our revenues (excluding reimbursed management type contract revenue), gross profit, general and administrative expenses, depreciation and amortization, and operating income (expense) by segment during the three months ended June 30, 2023 and 2022.

Commercial

	Three Months Ended							Variance
(millions) (unaudited)		June 30, 2023			June 30, 2022			Amount			%
Services revenue
Lease type contracts		$	72.4		$	67.1		$	5.3			7.9	%
Management type contracts			75.2			65.8			9.4			14.3	%
Total services revenue			147.6			132.9			14.7			11.1	%
Gross profit
Lease type contracts			13.0			13.6			(0.6	)		(4.4	)%
Management type contracts			36.2			31.7			4.5			14.2	%
Depreciation and amortization			(2.2	)		(1.6	)		(0.6	)		(37.5	)%
Total gross profit			47.0			43.7			3.3			7.6	%
General and administrative expenses			9.3			7.8			1.5			19.2	%
Depreciation and amortization(1)			1.6			1.2			0.4			33.3	%
Operating income		$	36.1		$	34.7		$	1.4			4.0	%

(1)Primarily related to amortization of other intangible assets and general and administrative depreciation and amortization.

Gross Profit

• Lease type contracts. Gross profit decreased $0.6 million, or 4.4%, to $13.0 million during the three months ended June 30, 2023, compared to $13.6 million during the three months ended June 30, 2022. Gross profit decreased primarily due to the accrual of a reserve related to a sublease, as well as lower cost concessions related to rent concessions of $1.2 million during the three months ended June 30, 2023 compared to $1.5 million during the three months ended June 30, 2022, partially offset by increases in transient and monthly parking revenue as a result of the continued recovery in travel and fewer restrictions on mobility and new business.

• Management type contracts. Gross profit increased $4.5 million, or 14.2%, to $36.2 million during the three months ended June 30, 2023, compared to $31.7 million during the three months ended June 30, 2022. Gross profit increased primarily due to an increase in volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility and new business, partially offset by terminations.

• Depreciation and amortization. Depreciation and amortization expenses increased by $0.6, or 37.5%, to $2.2 million during the three months ended June 30, 2023, compared to $1.6 million during the three months ended June 30, 2022.

General and administrative expenses increased $1.5 million, or 19.2%, to $9.3 million during the three months ended June 30, 2023, compared to $7.8 million during the three months ended June 30, 2022. The increase was primarily related to higher compensation and non-cash stock-based compensation expenses, as well as our continued investments in growth initiatives and higher restructuring, integration and other costs of $0.8 million during the three months ended June 30, 2023 as compared to $0.6 million during the three months ended June 30, 2022.

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Operating income increased $1.4 million, or 4.0%, to $36.1 million during the three months ended June 30, 2023, compared to $34.7 million during the three months ended June 30, 2022, primarily due to the factors noted above, partially offset by $0.4 million of amortization expenses during the three months ended June 30, 2023 related to other intangible assets acquired as a result of the acquisition of DIVRT.

Aviation

	Three Months Ended							Variance
(millions) (unaudited)		June 30, 2023			June 30, 2022			Amount			%
Services revenue
Lease type contracts		$	3.9		$	3.5		$	0.4			11.4	%
Management type contracts			69.8			60.1			9.7			16.1	%
Total services revenue			73.7			63.6			10.1			15.9	%
Gross profit
Lease type contracts			1.0			1.1			(0.1	)		(9.1	)%
Management type contracts			15.7			12.4			3.3			26.6	%
Depreciation and amortization			(1.5	)		(1.1	)		(0.4	)		(36.4	)%
Total gross profit			15.2			12.4			2.8			22.6	%
General and administrative expenses			4.0			2.9			1.1			37.9	%
Depreciation and amortization(1)			1.6			1.0			0.6			60.0	%
Operating income		$	9.6		$	8.5		$	1.1			12.9	%

(1) Primarily related to amortization of intangible assets and general and administrative depreciation and amortization.

Gross Profit

• Lease type contracts. Gross profit decreased $0.1 million, or 9.1%, to $1.0 million during the three months ended June 30, 2023 compared to $1.1 million during the three months ended June 30, 2022. Gross profit decreased primarily due to lower cost concessions related to service concession arrangements of $0.9 million during the three months ended June 30, 2023 as compared to $1.1 million during the three months ended June 30, 2022 and terminations, partially offset by an increase in transient revenue as a result of the continued recovery in travel and fewer restrictions on mobility.

• Management type contracts. Gross profit increased $3.3 million, or 26.6%, to $15.7 million during the three months ended June 30, 2023, compared to $12.4 million during the three months ended June 30, 2022. Gross profit increased primarily due to an increase in volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility, increased activity related to other aviation services, acquisitions and new business.

• Depreciation and amortization. Depreciation and amortization expenses increased by $0.4, or 36.4% to $1.5 million during the three months ended June 30, 2023, compared to $1.1 million during the three months ended June 30, 2022.

General and administrative expenses increased $1.1 million, or 37.9%, to $4.0 million during the three months ended June 30, 2023, compared to $2.9 million during the three months ended June 30, 2022 primarily due to higher restructuring, integration and other costs of $0.4 million during the three months ended June 30, 2023 as compared to a benefit of $0.5 million during the three months ended June 30, 2022, and our continued investments in growth initiatives.

Operating income increased $1.1 million, or 12.9%, to $9.6 million during the three months ended June 30, 2023, compared to $8.5 million during the three months ended June 30, 2022, primarily due to the factors noted above, partially offset by $0.5 million of amortization expenses during the three months ended June 30, 2023 related to other intangibles assets acquired as a result of the acquisition of KMP.

Other

Operating expenses within the Other segment increased $2.8 million, or 15.9%, to $20.4 million during the three months ended June 30, 2023, compared to $17.6 million during the three months ended June 30, 2022, primarily due to higher compensation and non-cash stock-based compensation expenses and our continued investments in business development and technology deployment and other growth initiatives, as well as higher integration, acquisition, restructuring and other costs of $0.5 million during the three months ended June 30, 2023 as compared to $0.2 million during the three months ended June 30, 2022.

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Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Consolidated results during the six months ended June 30, 2023 and 2022 included the following notable items:

	Six Months Ended				Variance
(millions) (unaudited)	June 30, 2023		June 30, 2022		Amount			%
Services revenue	$	867.5	$	730.8	$	136.7			18.7	%
Cost of services (exclusive of depreciation and amortization)		743.3		620.6		122.7			19.8	%
General and administrative expenses		62.4		51.2		11.2			21.9	%
Depreciation and amortization		17.2		13.3		3.9			29.3	%
Operating income		44.6		45.7		(1.1	)		(2.4	)%
Interest expense		14.1		8.3		5.8			69.9	%
Income tax expense		8.1		10.1		(2.0	)		(19.8	)%
Net income		22.6		27.6		(5.0	)		(18.1	)%

Services revenue increased by $136.7 million, or 18.7%, attributable to the following:

•Services revenue for lease type contracts increased $11.3 million, or 8.5%, primarily due to an increase in transient and monthly parking revenue as a result of the continued recovery in travel and fewer restrictions on mobility and new business, partially offset by terminations and lower cost concessions related to service concession arrangements of $5.6 million during the six months ended June 30, 2023 as compared to $6.1 million during the six months ended June 30, 2022.

•Services revenue for management type contracts increased $45.4 million, or 18.3%, primarily due to an increase in volume related to our baggage delivery businesses and volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility, as well as increased volume related to other aviation services, new business and revenue from acquisitions of $2.1 million, partially offset by terminations.

•Reimbursed management type contract revenue was $429.9 million and $349.9 million during the six months ended June 30, 2023 and 2022, respectively. The increase in reimbursed management type contract revenue was primarily due to the continued recovery in travel and fewer restrictions on mobility, new business and revenue from acquisitions of $1.1 million, partially offset by terminations.

Cost of services (exclusive of depreciation and amortization) increased by $122.7 million, or 19.8%, attributable to the following:

•Cost of services (exclusive of depreciation and amortization) for lease type contracts increased $9.6 million, or 8.9%, primarily due to higher operating costs as a result of the continued recovery in travel and fewer restrictions on mobility, new business and lower cost concessions related to rent concessions of $2.5 million during the six months ended June 30, 2023 as compared to $3.7 million during the six months ended June 30, 2022, partially offset by terminations.

•Cost of services (exclusive of depreciation and amortization) for management type contracts increased $33.1 million, or 20.3%, primarily due to higher operating costs as a result of the continued recovery in travel and fewer restrictions on mobility related to our baggage delivery businesses, reverse management contracts and other aviation related services, as well as new business and acquisitions, partially offset by terminations.

•Reimbursed management type contract expense was $429.9 million and $349.9 million during the six months ended June 30, 2023 and 2022, respectively. The increase in reimbursed management type contract cost of services was primarily due to the continued recovery in travel and fewer restrictions on mobility, new business and acquisitions of $1.1 million, partially offset by terminations.

General and administrative expenses increased $11.2 million, or 21.9%, primarily due to higher compensation and non-cash stock-based compensation expenses and our continued investments in business development, technology deployment and growth initiatives, as well as higher restructuring, integration, acquisition and other costs of $2.6 million during the six months ended June 30, 2023 as compared to $0.5 million during the six months ended June 30, 2022.

Depreciation and amortization expenses increased $3.9 million, or 29.3%, primarily due to the amortization of other intangible assets related to the recent acquisitions and our continued investment in technology and growth initiatives.

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Our effective tax rate was 26.4% and 26.8% during the six months ended June 30, 2023 and 2022, respectively.

Net income decreased $5.0 million, or 18.1%, primarily due to higher interest expense as a result of the increase in variable interest rates and the factors noted above, partially offset by lower income taxes.

The following tables summarize our revenues (excluding reimbursed management type contract revenue), gross profit, general and administrative expenses, depreciation and amortization, and operating income (expense) by segment during the six months ended June 30, 2023 and 2022.

Commercial

	Six months ended							Variance
(millions) (unaudited)		June 30, 2023			June 30, 2022			Amount			%
Services revenue
Lease type contracts		$	137.0		$	126.3		$	10.7			8.5	%
Management type contracts			155.0			137.8			17.2			12.5	%
Total services revenue			292.0			264.1			27.9			10.6	%
Gross profit
Lease type contracts			24.7			22.8			1.9			8.3	%
Management type contracts			67.5			60.2			7.3			12.1	%
Depreciation and amortization			(4.1	)		(3.4	)		(0.7	)		(20.6	)%
Total gross profit			88.1			79.6			8.5			10.7	%
General and administrative expenses			17.5			13.9			3.6			25.9	%
Depreciation and amortization(1)			3.3			2.4			0.9			37.5	%
Operating income		$	67.3		$	63.3		$	4.0			6.3	%

(1)Primarily related to amortization of other intangible assets and general and administrative depreciation and amortization.

Gross Profit

• Lease type contracts. Gross profit increased $1.9 million, or 8.3%, to $24.7 million during the six months ended June 30, 2023, compared to $22.8 million during the six months ended June 30, 2022. Gross profit increased primarily due to increases in transient and monthly parking revenue as a result of the continued recovery in travel and fewer restrictions on mobility and new business, partially offset by lower cost concessions related to service concession arrangements and rent concessions of $3.7 million and $2.5 million, respectively, during the six months ended June 30, 2023 compared to $3.8 million and $3.7 million, respectively, during the six months ended June 30, 2022, as well as terminations.

• Management type contracts. Gross profit increased $7.3 million, or 12.1%, to $67.5 million during the six months ended June 30, 2023, compared to $60.2 million during the six months ended June 30, 2022. Gross profit increased primarily due to an increase in volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility and new business, partially offset by terminations.

• Depreciation and amortization. Depreciation and amortization expenses increased $0.7 million, or 20.6%, to $4.1 million during the six months ended June 30, 2023, compared to $3.4 million during the six months ended June 30, 2022,

General and administrative expenses increased $3.6 million, or 25.9%, to $17.5 million during the six months ended June 30, 2023, compared to $13.9 million during the six months ended June 30, 2022. The increase was primarily related to higher compensation and non-cash stock-based compensation expenses, as well as our continued investments in growth initiatives and higher restructuring, integration and other costs of $0.8 million during the six months ended June 30, 2023 as compared to $0.7 million during the six months ended June 30, 2022.

Operating income increased $4.0 million, or 6.3%, to $67.3 million during the six months ended June 30, 2023, compared to $63.3 million during the six months ended June 30, 2022, primarily due to the factors noted above, partially offset by $0.8 million of amortization expenses during the six months ended June 30, 2023 related to the other intangible assets acquired as a result of the acquisition of DIVRT.

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Aviation

	Six months ended							Variance
(millions) (unaudited)		June 30, 2023			June 30, 2022			Amount			%
Services revenue
Lease type contracts		$	7.5		$	6.9		$	0.6			8.7	%
Management type contracts			138.1			109.9			28.2			25.7	%
Total services revenue			145.6			116.8			28.8			24.7	%
Gross profit
Lease type contracts			2.3			2.5			(0.2	)		(8.0	)%
Management type contracts			29.7			24.7			5.0			20.2	%
Depreciation and amortization			(2.8	)		(2.2	)		(0.6	)		(27.3	)%
Total gross profit			29.2			25.0			4.2			16.8	%
General and administrative expenses			7.9			5.6			2.3			41.1	%
Depreciation and amortization(1)			3.1			2.8			0.3			10.7	%
Operating income		$	18.2		$	16.6		$	1.6			9.6	%

(1) Primarily related to amortization of intangible assets and general and administrative depreciation and amortization.

Gross Profit

• Lease type contracts. Gross profit decreased $0.2 million, or 8.0%, to $2.3 million during the six months ended June 30, 2023 compared to $2.5 million during the six months ended June 30, 2022. Gross profit decreased primarily due to lower cost concessions related to service concession arrangements of $1.9 million during the six months ended June 30, 2023 as compared to $2.3 million during the six months ended June 30, 2022 and terminations, partially offset by an increase in transient revenue as a result of the continued recovery in travel and fewer restrictions on mobility.

• Management type contracts. Gross profit increased $5.0 million, or 20.2%, to $29.7 million during the six months ended June 30, 2023, compared to $24.7 million during the six months ended June 30, 2022. Gross profit increased primarily due to new business, as well as an increase in volume-based management type contracts as a result of the continued recovery in travel and fewer restrictions on mobility, increased activity related to other aviation services and acquisitions, partially offset by terminations.

• Depreciation and amortization. Depreciation and amortization expenses increased $0.6 million, or 27.3%, to $2.8 million during the six months ended June 30, 2023, compared to $2.2 million during the six months ended June 30, 2022.

General and administrative expenses increased $2.3 million, or 41.1%, to $7.9 million during the six months ended June 30, 2023, compared to $5.6 million during the six months ended June 30, 2022 primarily due to our continued investments in growth initiatives, as well as higher restructuring, integration and other costs of $0.6 million during the six months ended June 30, 2023 as compared to a benefit of $0.4 million during the six months ended June 30, 2022.

Operating income increased $1.6 million, or 9.6%, to $18.2 million during the six months ended June 30, 2023, compared to $16.6 million during the six months ended June 30, 2022, primarily due to the factors noted above, partially offset by $0.9 million of amortization expenses during the six months ended June 30, 2023 related to other intangibles assets acquired as a result of the acquisition of KMP.

Other

Operating expenses within the Other segment increased $6.7 million, or 19.6%, to $40.9 million during the six months ended June 30, 2023, compared to $34.2 million during the six months ended June 30, 2022, primarily due to higher compensation and non-cash stock-based compensation expenses and our continued investments in business development, technology deployment and growth initiatives, as well as higher integration, acquisition, restructuring and other costs of $1.2 million during the six months ended June 30, 2023 as compared to $0.2 million during six months ended June 30, 2022.

Analysis of Financial Condition

Liquidity and Capital Resources

General

We continually project anticipated cash requirements for our operating, investing and financing needs, as well as cash flows generated from operating activities available to meet those needs. Our operating needs can include, among other items, commitments for cost of services, operating leases, payroll, insurance claims, interest and legal settlements. Our investing and financing spending can include payments for acquired businesses or assets, joint ventures, capital expenditures, distributions to noncontrolling interests, stock repurchases and payments on our outstanding indebtedness.

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As of June 30, 2023, we had $24.6 million of cash and cash equivalents and $215.9 million of borrowing availability under our Senior Credit Facility (as defined in Note 8. Borrowing Arrangements within the notes to the Condensed Consolidated Financial Statements). The full impact of macroeconomic conditions, including higher inflation and rising interest rates, on our business and the businesses of our customers and clients is unknown. We believe we will be able to generate sufficient liquidity to satisfy our obligations and remain in compliance with our existing debt covenants for the next twelve months.

We continue to monitor the impact of the recent regional bank failures. Currently, we do not believe that our banking partners are exposed to any significant credit risk, and continue to believe that we have sufficient assets and liquidity to adequately cover future obligations as they come due.

Outstanding Indebtedness

On June 30, 2023, we had total indebtedness of approximately $365.7 million, an increase of $21.5 million from December 31, 2022. The $365.7 million in total indebtedness as of June 30, 2023 included:

•$341.8 million under our Senior Credit Facility; and

•$23.9 million of other debt including finance lease obligations.

As of June 30, 2023, we were in compliance with our debt covenants under the Amended Credit Agreement (as defined in Note 8. Borrowing Arrangements within the Notes to the Condensed Consolidated Financial Statements).

As of June 30, 2023, we had $39.1 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $345.0 million.

The weighted average interest rate on our Senior Credit Facility was 6.5% and 3.3% during the six months ended June 30, 2023 and 2022, respectively. That rate included the letters of credit for both years and interest rate collars during the six months ended June 30, 2023 and 2022. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 7.0% and 3.4% during the six months ended June 30, 2023 and 2022, respectively.

Stock Repurchases

On February 14, 2023, our Board of Directors (our "Board") authorized us to repurchase, on the open market, shares of our outstanding common stock in an amount not to exceed $60.0 million.

In May 2022, our Board authorized us to repurchase, on the open market, shares of our outstanding common stock in an amount not to exceed $60.0 million in aggregate. During the three and six months ended June 30, 2023, 285,700 shares were repurchased at an average price of $36.53 per share under this program. As of June 30, 2023, $0.2 million remained available for repurchase under this program.

Stock repurchase activity under the May 2022 stock repurchase program during the six months ended June 30, 2023 and 2022 was as follows:

(millions, except for share and per share data)	June 30, 2023		June 30, 2022
Total number of shares repurchased		285,700		176,500
Average price paid per share	$	36.53	$	31.51
Total value of common stock repurchased	$	10.4	$	5.6

No stock repurchases were made during the three months ended June 30, 2023 or the three months ended March 31, 2022.

The remaining authorized repurchase amounts under the May 2022 and February 2023 stock repurchase programs as of June 30, 2023 were as follows:

(millions)	June 30, 2023
Total authorized repurchase amount	$	120.0
Total value of shares repurchased		59.8
Total remaining authorized repurchase amount	$	60.2

Daily Cash Collections

As a result of day-to-day activity at our parking locations, we collect significant amounts of cash. Lease type contract revenue is generally deposited into our local bank accounts, with a portion remitted to our clients in the form of rental payments based on the terms of the leases. Under management type contracts, clients may require us to deposit the daily receipts into one of our local bank accounts, with the cash in excess of our operating expenses and management fees remitted to the clients at negotiated intervals. Other clients may require us to deposit the daily receipts into client designated bank accounts and the clients then reimburse us for operating expenses and pay our management fee subsequent to month-end. In addition, our clients may require

30

segregated bank accounts for receipts and disbursements. Our working capital and liquidity may be adversely affected if a significant number of our clients require us to deposit all parking revenues into their respective accounts.

Our liquidity also fluctuates on an intra-month and intra-year basis depending on the contract mix and timing of significant cash payments. Additionally, our ability to utilize cash deposited into our local accounts is dependent upon the availability and movement of that cash into our corporate accounts. For all these reasons, from time to time, we carry a significant cash balance, while also utilizing our Senior Credit Facility.

Summary of Cash Flows

Our primary sources of liquidity are cash flows from operating activities and availability under our Senior Credit Facility. Our cash flows during the six months ended June 30, 2023 and 2022 were as follows:

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Net cash provided by operating activities	$	21.0		$	35.7
Net cash used in investing activities		(13.5	)		(10.7	)
Net cash provided by (used in) financing activities		4.7			(26.0	)
Effect of exchange rate changes on cash and cash equivalents		—			(0.1	)
Net increase (decrease) in cash and cash equivalents	$	12.2		$	(1.1	)

Operating Activities

Net cash provided by operating activities was $21.0 million during the six months ended June 30, 2023 as compared to $35.7 million during the six months ended June 30, 2022. The decrease in net cash provided by operating activities primarily resulted from the receipt of the $20.5 million U.S. Federal income tax refund during the six months ended June 30, 2022 and higher interest payments during the six months ended June 30, 2023 of $13.6 million as compared to $7.8 million during the six months ended June 30, 2022, partially offset by improved working capital.

Investing Activities

Net cash used in investing activities was $13.5 million during the six months ended June 30, 2023, an increase of $2.8 million from $10.7 million during the six months ended June 30, 2022. The increase in net cash used in investing activities primarily resulted from the increase in purchases of property and equipment, primarily related to our investments in internal-use software, of $11.3 million during the six months ended June 30, 2023 as compared to $9.1 million during the six months ended June 30, 2022, as well as the noncontrolling interest buyout of $2.2 million during the six months ended June 30, 2023.

Financing Activities

Net cash provided by financing activities was $4.7 million during the six months ended June 30, 2023, an increase of $30.7 million from net cash used in financing activities of $26.0 million during the six months ended June 30, 2022. During the six months ended June 30, 2023, we had increased borrowings on the Senior Credit Facility as compared to the six months ended June 30, 2022 due to lower net cash provided by operating activities, partially offset by higher common stock repurchases of $11.1 million under our May 2022 stock repurchase program during the six months ended June 30, 2023 as compared to $4.9 million during the six months ended June 30, 2022.

Cash and Cash Equivalents

We had Cash and cash equivalents of $24.6 million and $12.4 million as of June 30, 2023 and December 31, 2022, respectively. The cash balances reflect our ability to utilize funds deposited into our bank accounts.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes in our primary risk exposures or management of market risks from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this quarterly report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer, Chief Financial Officer and Corporate Controller, of the effectiveness of the design and operation of our disclosure controls and procedures (the "Evaluation") at a reasonable assurance level as of the last day of the period covered by this Form 10-Q.

Disclosure controls and procedures are defined by Rules 13a-15(e) and 15d-15(e) of the Exchange Act as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the

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Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, Chief Financial Officer and Corporate Controller, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosures.

Based on the Evaluation, our Chief Executive Officer, Chief Financial Officer and Corporate Controller concluded that our disclosure controls and procedures were effective as of June 30, 2023.

Changes in Internal Control Over Financial Reporting

There have been no significant changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2023, which were identified in connection with management’s evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

Inherent limitations of the Effectiveness of Internal Control

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are subject to claims and litigation in the normal course of our business, including those related to labor and employment, contracts, personal injury and other related matters, some of which allege substantial monetary damages and claims. Some of these actions may be brought as class actions on behalf of a class or purported class of employees. While the outcomes of current claims and legal proceedings brought against us are subject to uncertainty, we believe the final outcome will not have a material adverse effect on our financial position, results of operations or cash flows.

We accrue a charge when we determine that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. When a loss is probable, we record an accrual based on the reasonably estimable loss or range of loss. When no point of loss is more likely than another, we record the lowest amount in the estimated range of loss and, if material, disclose the estimated range. We do not record liabilities for reasonably possible loss contingencies, but do disclose a range of reasonably possible losses if they are material and we are able to estimate such a range. If we cannot provide a range of reasonably possible losses, we explain the factors that prevent us from determining such a range. We regularly evaluate current information available to us to determine whether an accrual should be established or adjusted. Estimating the probability that a loss will occur and the amount of a loss or a range of loss involves significant estimation and judgment.

Item 1A. Risk Factors

Investors should carefully consider the discussion of risk factors and the other information described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and in subsequent filings by us with the SEC. New risks could emerge at any time and we cannot predict such risks or estimate the extent to which they may affect our financial performance. There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

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Item 2. Unregistered Sales of Equity and Use of Proceeds

Not applicable.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

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Item 6. Exhibits

Index to Exhibits

			Incorporated by Reference
Exhibit Number	Description	Form	Exhibit	Filing Date/Period End Date
3.1	Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of SP Plus Corporation dated May 11, 2023	8-K	3.1	May 16, 2023
3.2	Amendment to Fourth Amended and Restated Bylaws of the Company dated May 11, 2023	8-K	3.2	May 16, 2023
31.1*	Section 302 Certification dated August 3, 2023 for G Marc Baumann, Chairman and Chief Executive Officer (Principal Executive Officer).
31.2*	Section 302 Certification dated August 3, 2023 for Kristopher H. Roy, Chief Financial Officer (Principal Financial Officer).
31.3*	Section 302 Certification dated August 3, 2023 for Gary T. Roberts, Senior Vice President, Corporate Controller and Assistant Treasurer (Principal Accounting Officer and Duly Authorized Officer).
32**	Certification pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated August 4, 2023.
101.INS*	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	Inline XBRL Taxonomy Extension Schema
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE* 104**	Inline XBRL Taxonomy Extension Presentation Linkbase Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101

* Filed herewith

** Furnished herewith

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SP PLUS CORPORATION
Date: August 3, 2023	By:	/s/ G MARC BAUMANN
		G Marc Baumann
		Chairman and Chief Executive Officer
		(Principal Executive Officer)
Date: August 3, 2023	By:	/s/ KRISTOPHER H. ROY
		Kristopher H. Roy
		Chief Financial Officer
		(Principal Financial Officer)
Date: August 3, 2023	By:	/s/ GARY T. ROBERTS
		Gary T. Roberts
		Senior Vice President, Corporate Controller and Assistant Treasurer
		(Principal Accounting Officer and Duly Authorized Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, G Marc Baumann, certify that:

1. I have reviewed this Form 10-Q of SP Plus Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023	By:	/s/ G MARC BAUMANN
		G Marc Baumann
		Chairman and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Kristopher H. Roy, certify that:

1. I have reviewed this Form 10-Q of SP Plus Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023	By:	/s/ KRISTOPHER H. ROY
		Kristopher H. Roy
		Chief Financial Officer
		(Principal Financial Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Gary T. Roberts, certify that:

1. I have reviewed this Form 10-Q of SP Plus Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 3, 2023	By:	/s/ GARY T. ROBERTS
		Gary T. Roberts
		Senior Vice President, Corporate Controller and Assistant Treasurer
		(Principal Accounting Officer and Duly Authorized Officer)

EX-32

Exhibit 32

Certification pursuant to 18 U.S.C. Section 1350,

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of SP Plus Corporation (the “Company”) for the quarterly period ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 3, 2023	/s/ G MARC BAUMANN
	Name:	G Marc Baumann
	Title:	Chairman and Chief Executive Officer
		(Principal Executive Officer)

Date: August 3, 2023	/s/ KRISTOPHER H. ROY
	Name:	Kristopher H. Roy
	Title:	Chief Financial Officer
		(Principal Financial Officer)

Date: August 3, 2023	/s/ GARY T. ROBERTS
	Name:	Gary T. Roberts
	Title:	Senior Vice President, Corporate Controller and Assistant Treasurer
		(Principal Accounting Officer and Duly Authorized Officer)

This certification shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, or the Exchange Act, or otherwise subject to the liability of Section 18 of the Exchange Act. Such certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Cover page - shares	6 Months Ended
	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	000-50796
Entity Registrant Name	SP Plus Corporation
Entity Central Index Key	0001059262
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	16-1171179
Entity Address, Address Line One	200 E. Randolph Street, Suite 7700
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60601-7702
City Area Code	312
Local Phone Number	274-2000
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	SP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,649,611

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 24.6	$ 12.4
Accounts receivable, net	179.0	167.7
Prepaid expenses and other current assets	13.2	16.7
Total current assets	216.8	196.8
Property and equipment, net	65.2	60.2
Right-of-use assets	170.7	166.9
Goodwill	543.6	543.2
Other intangible assets, net	63.5	68.9
Deferred taxes	42.9	44.4
Other noncurrent assets, net	43.6	41.0
Total noncurrent assets	929.5	924.6
Total assets	1,146.3	1,121.4
Liabilities
Accounts payable	136.6	133.4
Accrued and other current liabilities	117.7	137.6
Short-term lease liabilities	57.3	60.2
Current portion of long-term borrowings	13.5	12.4
Total current liabilities	325.1	343.6
Long-term borrowings, excluding current portion	352.2	331.8
Long-term lease liabilities	156.3	158.5
Other noncurrent liabilities	71.3	61.8
Total noncurrent liabilities	579.8	552.1
Total liabilities	904.9	895.7
Stockholders’ equity
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized as of June 30, 2023 and December 31, 2022, respectively; no shares issued or outstanding	0.0	0.0
Common stock, par value $0.001 per share; 50,000,000 shares authorized as of June 30, 2023 and December 31, 2022; 23,444,353 and 19,649,611 shares issued and outstanding as of June 30, 2023, respectively, and 23,276,329 and 19,767,287 shares issued and outstanding as of December 31, 2022, respectively	0.0	0.0
Treasury stock, at cost; 3,794,742 and 3,509,042 shares as of June 30, 2023 and December 31, 2022, respectively	(130.5)	(120.0)
Additional paid-in capital	278.5	274.2
Accumulated other comprehensive loss	(1.1)	(1.8)
Retained earnings	94.3	73.6
Total SP Plus Corporation stockholders’ equity	241.2	226.0
Noncontrolling interests	0.2	(0.3)
Total stockholders’ equity	241.4	225.7
Total liabilities and stockholders’ equity	$ 1,146.3	$ 1,121.4

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	23,444,353	23,276,329
Common stock, shares outstanding (in shares)	19,649,611	19,767,287
Treasury stock, shares (in shares)	3,794,742	3,509,042

XML

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Services revenue	$ 442.2	$ 381.0	$ 867.5	$ 730.8
Cost of services (exclusive of depreciation and amortization)	376.3	322.2	743.3	620.6
General and administrative expenses	31.8	26.7	62.4	51.2
Depreciation and amortization	8.8	6.5	17.2	13.3
Operating income	25.3	25.6	44.6	45.7
Other expense (income)
Interest expense	7.3	3.5	14.1	8.3
Interest income	(0.1)	(0.1)	(0.2)	(0.3)
Total other expenses	7.2	3.4	13.9	8.0
Earnings before income taxes	18.1	22.2	30.7	37.7
Income tax expense	4.8	5.9	8.1	10.1
Net income	13.3	16.3	22.6	27.6
Less: Net income attributable to noncontrolling interests	1.0	0.9	1.9	1.5
Net income attributable to SP Plus Corporation	$ 12.3	$ 15.4	$ 20.7	$ 26.1
Net income per common share
Basic (in dollars per share)	$ 0.63	$ 0.73	$ 1.05	$ 1.23
Diluted (in dollars per share)	$ 0.62	$ 0.72	$ 1.04	$ 1.22
Weighted average shares outstanding
Basic (in shares)	19,631,772	21,195,819	19,666,684	21,211,299
Diluted (in shares)	19,839,953	21,356,464	19,853,900	21,347,442
Lease and Management Type Contracts
Services revenue	$ 221.3	$ 196.5	$ 437.6	$ 380.9
Cost of services (exclusive of depreciation and amortization)	155.4	137.7	313.4	270.7
Lease Type Contracts
Services revenue	76.3	70.6	144.5	133.2
Cost of services (exclusive of depreciation and amortization)	62.3	55.9	117.5	107.9
Management Type Contracts
Services revenue	145.0	125.9	293.1	247.7
Cost of services (exclusive of depreciation and amortization)	93.1	81.8	195.9	162.8
Reimbursed Management Type Contract Revenue
Services revenue	220.9	184.5	429.9	349.9
Cost of services (exclusive of depreciation and amortization)	$ 220.9	$ 184.5	$ 429.9	$ 349.9

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 13.3	$ 16.3	$ 22.6	$ 27.6
Reclassification of de-designated interest rate collars		0.1		0.5
Foreign currency translation gain (loss)	0.5	(0.2)	0.7	(0.1)
Comprehensive income	13.8	16.2	23.3	28.0
Less: Comprehensive income attributable to noncontrolling interests	1.0	0.9	1.9	1.5
Comprehensive income attributable to SP Plus Corporation	$ 12.8	$ 15.3	$ 21.4	$ 26.5

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)	Treasury Stock	Noncontrolling Interests
Beginning balance (deficit) at Dec. 31, 2021	$ 222.1	$ 0.0	$ 267.5	$ (2.8)	$ 28.4	$ (70.6)	$ (0.4)
Beginning balance (deficit) (in shares) at Dec. 31, 2021		23,224,459
Net income	11.3				10.7		0.6
Foreign currency translation	0.1			0.1
Reclassification of de-designated interest rate collars	0.4			0.4
Issuance of restricted stock units	0.0
Issuance of restricted stock units (in shares)		37,235
Non-cash stock-based compensation	1.8		1.8
Distributions to noncontrolling interests	(0.5)						(0.5)
Ending balance (deficit) at Mar. 31, 2022	235.2		269.3	(2.3)	39.1	(70.6)	(0.3)
Ending balance (deficit) (in shares) at Mar. 31, 2022		23,261,694
Beginning balance (deficit) at Dec. 31, 2021	222.1	$ 0.0	267.5	(2.8)	28.4	(70.6)	(0.4)
Beginning balance (deficit) (in shares) at Dec. 31, 2021		23,224,459
Net income	27.6
Foreign currency translation	(0.1)
Reclassification of de-designated interest rate collars	0.5
Ending balance (deficit) at Jun. 30, 2022	247.7		271.9	(2.4)	54.5	(76.2)	(0.1)
Ending balance (deficit) (in shares) at Jun. 30, 2022		23,276,329
Beginning balance (deficit) at Mar. 31, 2022	235.2		269.3	(2.3)	39.1	(70.6)	(0.3)
Beginning balance (deficit) (in shares) at Mar. 31, 2022		23,261,694
Net income	16.3				15.4		0.9
Foreign currency translation	(0.2)			(0.2)
Reclassification of de-designated interest rate collars	0.1			0.1
Issuance of stock grants	0.4		0.4
Issuance of stock grants (in shares)		14,635
Non-cash stock-based compensation	2.2		2.2
Repurchases of common stock	(5.6)					(5.6)
Distributions to noncontrolling interests	(0.7)						(0.7)
Ending balance (deficit) at Jun. 30, 2022	247.7		271.9	(2.4)	54.5	(76.2)	(0.1)
Ending balance (deficit) (in shares) at Jun. 30, 2022		23,276,329
Beginning balance (deficit) at Dec. 31, 2022	$ 225.7		274.2	(1.8)	73.6	(120.0)	(0.3)
Beginning balance (deficit) (in shares) at Dec. 31, 2022	19,767,287	23,276,329
Net income	$ 9.3				8.4		0.9
Foreign currency translation	0.2			0.2
Issuance of restricted stock units	(0.4)		(0.4)
Issuance of restricted stock units (in shares)		148,806
Non-cash stock-based compensation	2.2		2.2
Noncontrolling interests buyout	(0.7)		(0.7)
Repurchases of common stock	(10.5)					(10.5)
Distributions to noncontrolling interests	(0.5)						(0.5)
Ending balance (deficit) at Mar. 31, 2023	225.3		275.3	(1.6)	82.0	(130.5)	0.1
Ending balance (deficit) (in shares) at Mar. 31, 2023		23,425,135
Beginning balance (deficit) at Dec. 31, 2022	$ 225.7		274.2	(1.8)	73.6	(120.0)	(0.3)
Beginning balance (deficit) (in shares) at Dec. 31, 2022	19,767,287	23,276,329
Net income	$ 22.6
Foreign currency translation	0.7
Ending balance (deficit) at Jun. 30, 2023	$ 241.4		278.5	(1.1)	94.3	(130.5)	0.2
Ending balance (deficit) (in shares) at Jun. 30, 2023	19,649,611	23,444,353
Beginning balance (deficit) at Mar. 31, 2023	$ 225.3		275.3	(1.6)	82.0	(130.5)	0.1
Beginning balance (deficit) (in shares) at Mar. 31, 2023		23,425,135
Net income	13.3				12.3		1.0
Foreign currency translation	0.5			0.5
Issuance of stock grants	0.6		0.6
Issuance of stock grants (in shares)		18,660
Issuance of restricted stock units (in shares)		558
Non-cash stock-based compensation	2.6		2.6
Distributions to noncontrolling interests	(0.9)						(0.9)
Ending balance (deficit) at Jun. 30, 2023	$ 241.4		$ 278.5	$ (1.1)	$ 94.3	$ (130.5)	$ 0.2
Ending balance (deficit) (in shares) at Jun. 30, 2023	19,649,611	23,444,353

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net income	$ 22.6	$ 27.6
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17.2	13.3
Non-cash stock-based compensation	5.4	4.4
Provisions (reversals) for credit losses on accounts receivable	0.7	(0.1)
Deferred income taxes	1.8	2.8
Other	(1.7)	1.3
Changes in operating assets and liabilities
Accounts receivable	(11.9)	(13.4)
Prepaid expenses and other current assets	3.5	10.3
Accounts payable	3.1	9.7
Accrued liabilities and other	(19.7)	(20.2)
Net cash provided by operating activities	21.0	35.7
Investing activities
Purchases of property and equipment	(11.3)	(9.1)
Acquisition of other intangible assets	0.0	(1.8)
Proceeds from sale of equipment	0.0	0.2
Noncontrolling interest buyout	(2.2)	0.0
Net cash used in investing activities	(13.5)	(10.7)
Financing activities
Proceeds from credit facility revolver	256.8	173.2
Payments on credit facility revolver	(232.9)	(198.2)
Proceeds from credit facility term loan	0.0	17.2
Payments on credit facility term loan	(2.5)	(4.2)
Payments of debt issuance costs	0.0	(2.5)
Payments on other long-term borrowings	(3.8)	(5.4)
Payments of withholding taxes on share-based compensation	(0.4)	0.0
Distributions to noncontrolling interests	(1.4)	(1.2)
Repurchases of common stock	(11.1)	(4.9)
Net cash provided by (used in) financing activities	4.7	(26.0)
Effect of exchange rate changes on cash and cash equivalents	0.0	(0.1)
Increase (decrease) in cash and cash equivalents	12.2	(1.1)
Cash and cash equivalents at beginning of year	12.4	15.7
Cash and cash equivalents at end of period	24.6	14.6
Cash paid (received) during the period for
Interest	13.6	7.8
Income taxes, net	$ 4.0	$ (12.7)

XML

Significant Accounting Policies and Practices

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies and Practices

1. Significant Accounting Policies and Practices

The Company

SP Plus Corporation (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 is committed to providing solutions that make every moment matter for a world on the go while meeting the objectives of the Company's diverse client base in North America and Europe, which includes aviation, commercial, hospitality and institutional clients. The Company typically enters into contractual agreements with property owners or managers as opposed to owning facilities.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the financial statements have been condensed or omitted as permitted by such rules and regulations.

All adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation have been included. Operating results during the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any other interim period or the fiscal year ending December 31, 2023. The financial statements presented in this report should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 filed on February 24, 2023 with the Securities and Exchange Commission.

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and Variable Interest Entities ("VIEs") in which the Company is the primary beneficiary. The Company is the primary beneficiary of a VIE when the Company has the power to direct activities that most significantly affect the economic performance of the VIE. If the Company is not the primary beneficiary in a VIE and has significant influence, the Company accounts for the investment in the VIE as an equity method investment. As of June 30, 2023 and December 31, 2022, assets related to consolidated VIEs were $58.6 million and $57.1 million, respectively, which were primarily related to right-of-use (“ROU”) assets and property and equipment, net. As of June 30, 2023 and December 31, 2022, liabilities related to consolidated VIEs were $46.6 million and $50.9 million, respectively, which were primarily related to operating and finance lease liabilities. All intercompany profits, transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $0.6 million as of June 30, 2023 and December 31, 2022, and were included in Cash and cash equivalents within the Condensed Consolidated Balance Sheets.

Allowance for Doubtful Accounts

Accounts receivable, net of the allowance for doubtful accounts, represents the Company’s estimate of the amount that ultimately will be realized in cash. The Company reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and records adjustments to the allowance as necessary. The Company’s allowance for doubtful accounts, which was included in Accounts receivable, net, within the Condensed Consolidated Balance Sheets, was $4.1 million and $4.0 million as of June 30, 2023 and December 31, 2022, respectively.

Property and Equipment, Net

Property and equipment includes the Company's equipment, internal-use software, vehicles, leasehold improvements and construction/development in process. Property and equipment are stated at cost, less accumulated depreciation and amortization, whenever applicable.

Certain costs incurred in the planning and evaluation stage of internal-use software projects are recorded to expense as incurred. Costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and included as Software in Property and equipment, net, within the Condensed Consolidated Balance Sheets. When the internal-use software is ready for

its intended use, it is amortized on a straight-line basis over the estimated useful life of the internal-use software, which is typically 3 years.

Equipment and vehicles are depreciated on a straight-line basis over estimated useful lives ranging from 1 to 10 years. Expenditures for major renewals and improvements that extend the useful life of property and equipment, other than internal-use software, are capitalized. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or the useful lives of the improvements, whichever is shorter.

Equity Investments in Unconsolidated Entities

The Company has ownership interests in 25 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 19 are consolidated under the VIE or voting interest models and 6 are unconsolidated where the Company’s ownership interests range from 30-50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and the Company’s underlying share of each investee’s equity of $12.2 million and $11.9 million as of June 30, 2023 and December 31, 2022, respectively, was included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments were included in Services revenue - lease type contracts within the Condensed Consolidated Statements of Income. The equity earnings in these related investments were $0.6 million for the three months ended June 30, 2023 and 2022, and $1.3 million and $1.5 million during the six months ended June 30, 2023 and 2022, respectively.

Other Noncurrent Assets

Other noncurrent assets consisted of equity investments of unconsolidated entities, advances, deposits and cost of contracts, net, as of June 30, 2023 and December 31, 2022.

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of insurance, accrued rent, compensation, contingent consideration, payroll withholdings, property, payroll and other taxes and other accrued expenses as of June 30, 2023 and December 31, 2022.

Noncontrolling Interests

Noncontrolling interests represent the noncontrolling holders’ percentage share of income (losses) from the subsidiaries in which the Company holds a controlling interest, but less than 100 percent, ownership interest. The results of these subsidiaries are consolidated and included within the Condensed Consolidated Financial Statements.

During the six months ended June 30, 2023, the Company recorded a $1.0 million liability related to its estimate of additional consideration (“contingent consideration") due to a former minority partner that formerly held a noncontrolling interest in a joint venture with the Company. The Company purchased the minority partner’s interest in the joint venture in 2020. The contingent consideration is contingent on the performance of the operations of the Bradley International Airport. The contingent consideration is not capped and, if any amount is due, would be payable to the former minority partner in April 2025. The $1.0 million was determined based on a probability weighting of potential payouts and recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $0.3 million related to the contingent consideration during the six months ended June 30, 2023, which was recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. The Company will continue to evaluate the criteria for making these payments in the future and adjust the liability when deemed necessary.

Additionally, during the six months ended June 30, 2023, the Company paid a former minority partner $2.2 million per the terms of an agreement between the Company and the former minority partner. The Company purchased the former minority partner’s entire noncontrolling interest in a joint venture with the Company as of December 31, 2022. Per the terms of the agreement, the Company will be required to make additional payments to the former minority partner over a ten-year period, amounting to a total of $4.5 million. The $2.2 million that was paid during the six months ended June 30, 2023 was included in Accrued and other current liabilities within the Condensed Consolidated Balance Sheets as of December 31, 2022.

Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired. In accordance with the Financial Accounting Standards Board's ("FASB") authoritative accounting guidance on goodwill, the Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. The Company has elected to assess the impairment of goodwill annually on October 1 or at an interim date if there is an event or change in circumstances indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or the Company’s business strategy, and significant negative industry or economic trends.

The Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. If the Company determines impairment is present, the Company would need to perform a quantitative assessment. The determination of fair value of a reporting unit utilizes cash flow projections that assume certain future revenue and cost levels, comparable marketplace data, comparable company market valuations, assumed discount rates based upon current market conditions and other valuation factors, all of which involve the use of significant judgment and estimates. The Company also assesses critical areas that may impact its business, including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel.

Other Intangible Assets, net

Other intangible assets represent assets with finite lives that are amortized on a straight-line basis over their estimated useful lives. The Company evaluates other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. In addition, other intangible assets are reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Assumptions and estimates about future values and remaining useful lives of intangible assets are complex and subjective, and can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company's business strategy and forecasts. Although the Company believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results.

Long-Lived Assets

The Company evaluates long-lived assets, including ROU assets, leasehold improvements, equipment and construction/development in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection that demonstrates continuing losses associated with the use of a long-lived asset or asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset or asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If the asset or asset group is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset or asset group exceeds its fair value.

Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets or asset groups and could result in impairment charges. Future events that may result in impairment charges include economic volatility or other factors that could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs.

Foreign Operations

The Company has foreign operations in Canada, Puerto Rico, the United Kingdom and India. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the rate in effect on the respective balance sheet date, while income and expenses are translated at the average rates during the respective periods. Translation adjustments resulting from the fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss in stockholders’ equity within the Condensed Consolidated Balance Sheets, while transaction gains and losses are recorded within the Condensed Consolidated Statements of Income. Deferred taxes are not recorded on cumulative foreign currency translation adjustments when the Company expects the foreign earnings to be permanently reinvested.

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Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Acquisitions

2. Acquisitions

On October 11, 2022, the Company acquired K M P Associates Limited ("KMP"), a United Kingdom based software and technology provider serving aviation and commercial parking clients, primarily through its Aeroparker technology, throughout the United States and Europe, for approximately $13.8 million, less cash acquired of $0.9 million, and assumed KMP's debt of $0.3 million. Immediately following the acquisition, the Company repaid all of the debt assumed. KMP's operations are included in the Aviation segment.

On November 10, 2022, the Company acquired certain assets of DIVRT, Inc. ("DIVRT"), a developer of innovative software and technology solutions that enables frictionless parking capabilities, for approximately $17.6 million. In addition, the Company may be required to pay the former owner of DIVRT a maximum amount of $7.0 million in contingent consideration if certain targets related to the number of the Company's locations using the DIVRT technology are met by October 31, 2025. Based on a probability weighting of potential payouts, the Company accrued $4.0 million in projected contingent consideration as of the acquisition date, which was determined to be Level 3 under the fair value hierarchy. The Company's estimate of the potential payout increased to $4.3 million from $4.1 million as of June 30, 2023 and December 31, 2022, respectively. The increases were due to the changes in the present value of the estimated payout. The Company recorded $0.1 million and $0.2 million of operating expense within the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023, respectively, related to the change in the present value of the contingent consideration. The Company will continue to evaluate the potential payouts in the

future and adjust the contingent consideration for any changes in the estimated fair value each reporting period. DIVRT's operations are included in the Commercial segment.

Both acquisitions enhance the Company's position as a global provider of frictionless technology solutions that are independent of the Company's legacy parking management and transportation related operations. The acquisitions of KMP and DIVRT have been accounted for as business combinations, and the assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition dates. Goodwill was measured as the excess of the consideration over the assets acquired, including other intangible assets, less liabilities assumed, based on their estimated fair values at the acquisition dates. Tax deductible goodwill related to the acquisitions was $10.1 million. The results of each acquisition's operations are reflected in the Condensed Consolidated Financial Statements from the date of acquisition.

During the three and six months ended June 30, 2023, the acquisitions contributed $1.6 million and $3.2 million, respectively, of services revenue and losses before income taxes of $0.8 million and $1.7 million, respectively, primarily due to the amortization related to the acquired other intangible assets.

The Company believes the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed, however, the provisional measurements of fair value for the other intangible assets and goodwill of KMP and DIVRT are subject to change. As a result, during the measurement period, which may be up to one year from the acquisition dates, adjustments to assets and liabilities assumed will be recorded with corresponding adjustments to goodwill. The Company expects to complete the purchase price allocations for the KMP and DIVRT acquisitions as soon as practicable but no later than one year from the acquisition dates.

The estimated fair values of the assets acquired and liabilities assumed based on the information that was available as of the acquisition dates were as follows:

(millions)
Cash and cash equivalents	$	0.9
Accounts receivable		0.7
Prepaid expenses and other current assets		0.1
Other intangible assets		21.7
Goodwill		16.3
ROU asset		0.1
Accounts payable		(0.1	)
Accrued and other current liabilities		(1.5	)
Deferred tax liability		(2.5	)
Other long-term borrowings		(0.3	)
Net assets acquired and liabilities assumed		35.4
Less: cash and cash equivalents acquired		0.9
Less: contingent consideration payable		4.0
Net cash paid	$	30.5

In addition to the acquisitions discussed above, on April 18, 2022, the Company acquired certain other intangible assets for a purchase price of $1.8 million.

As discussed above, during the year ended December 31, 2022, the Company recorded additions to other intangible assets of $23.5 million. The other intangible assets acquired were recorded at their estimated fair value on the acquisition dates as follows:

(millions)	Estimated Life	Estimated Fair Value
Proprietary know how	7.4 Years	$	17.3
Customer relationships	5.8 Years		3.2
Trade names	13.2 Years		1.8
Covenant not to compete	4.2 Years	1.2
Estimated fair value of identified intangible assets		$	23.5

The fair values of other intangible assets acquired were determined to be Level 3 under the fair value hierarchy. The fair value estimate for all identifiable intangible assets is based on assumptions that market participants would use in pricing an asset, based on the most advantageous market for the asset.

The estimated fair values of Proprietary know how were determined using the multi-period excess earnings method under the income approach utilizing projected financial information for each technology that was acquired. The estimated fair value of the customer relationships was determined using the distributor method and excess earnings method under the income approach. The estimated fair values of the trade names were determined using the relief from royalty savings method under the income approach. The Company considered the return on assets and market comparable methods when estimating an appropriate royalty rate for the trade names.

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Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

3. Leases

The Company leases parking facilities, office space, warehouses, vehicles and equipment and determines if an arrangement is a lease at inception. The Company subleases certain real estate to third parties. The Company's sublease portfolio consists of operating leases for space within leased parking facilities.

As discussed in Note 1. Significant Accounting Policies and Practices, the Company tests ROU assets when impairment indicators are present.

The components of ROU assets and lease liabilities and the classification within the Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022 were as follows:

(millions)	Classification	June 30, 2023		December 31, 2022
Assets
Operating	Right-of-use assets	$	170.7	$	166.9
Finance	Property and equipment, net		23.7		24.4
Total leased assets		$	194.4	$	191.3
Liabilities
Current
Operating	Short-term lease liabilities	$	57.3	$	60.2
Finance	Current portion of long-term borrowings		7.1		7.2
Noncurrent
Operating	Long-term lease liabilities		156.3		158.5
Finance	Long-term borrowings, excluding current portion		15.7		16.0
Total lease liabilities		$	236.4	$	241.9

The components of lease cost and classification within the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

		Three Months Ended				Six Months Ended
(millions)	Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating lease cost (a)(b)	Cost of services - lease type contracts	$	15.2	$	14.6	$	29.0	$	29.7
Short-term lease (a)	Cost of services - lease type contracts		5.3		5.3		10.2		10.4
Variable lease	Cost of services - lease type contracts		22.8		18.8		41.0		33.3
Operating lease cost			43.3		38.7		80.2		73.4
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.7		1.4		3.3		2.7
Interest on lease liabilities	Interest expense		0.3		0.3		0.6		0.5
Net lease cost		$	45.3	$	40.4	$	84.1	$	76.6

(a)Included expense related to leases for office space recorded in General and administrative expenses within the Condensed Consolidated Statements of Income of $0.9 million and $1.9 million during the three and six months ended June 30, 2023 and 2022, respectively.

(b)Included rent concessions amounting to $1.2 million and $2.5 million during the three and six months ended June 30, 2023, respectively, and $1.5 million and $3.7 million during the three and six months ended June 30, 2022, respectively.

Sublease income was $0.5 million and $0.3 million during the three months ended June 30, 2023 and 2022, respectively, and $1.0 million and $0.6 million during the six months ended June 30, 2023 and 2022, respectively.

Maturities, lease term and discount rate information of lease liabilities as of June 30, 2023 (unaudited) were as follows:

(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2023	$	35.8		$	4.4		$	40.2
2024		59.1			7.0			66.1
2025		46.5			5.1			51.6
2026		35.6			3.8			39.4
2027		22.8			2.1			24.9
After 2027		48.7			3.1			51.8
Total lease payments		248.5			25.5			274.0
Less: Imputed interest		34.9			2.7			37.6
Present value of lease liabilities	$	213.6		$	22.8		$	236.4
Weighted-average remaining lease term (years)		5.2			4.2
Weighted-average discount rate		5.4	%		5.1	%

Future sublease income for the above periods shown was excluded, as the amounts are not material.

Supplemental cash flow information related to leases during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Six Months Ended
(millions)	June 30, 2023		June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	44.2	$	46.7
Operating cash outflows related to interest on finance leases		0.5		0.5
Financing cash outflows related to finance leases		3.8		5.4
Leased assets obtained in exchange for new operating liabilities		31.2		5.8
Leased assets obtained in exchange for new finance lease liabilities		3.5		4.9

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Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

4. Revenue

The Company recognizes revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services.

Contracts with customers and clients

The Company accounts for a contract when it has the approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Once a contract is identified, the Company evaluates whether the contract should be accounted for as more than one performance obligation. Substantially all of the Company’s revenues come from the following two types of arrangements: Lease type and Management type contracts.

Lease type contracts

Lease type contract revenue includes gross receipts (net of local taxes), consulting fees, e-commerce technology fees, customer convenience fees, gains on sales of contracts and payments for exercising termination rights. Performance obligations related to lease type contracts include parking for transient and monthly parkers. Revenue is recognized over time as the Company provides services. Under lease type arrangements, the Company pays the property owner a fixed base rent, percentage rent that is tied to the facility’s financial performance, or a combination of both. The Company operates the parking facility and is responsible for most operating expenses, but typically is not responsible for major maintenance, capital expenditures or real estate taxes. Certain expenses, primarily rental expense for the contractual arrangements that meet the definition of service concession arrangements, are recorded as a reduction of Service revenue – lease type contracts.

Management type contracts

Management type contract revenue consists of management fees, including both fixed and performance-based fees, and in some cases e-commerce technology fees, customer convenience fees and monthly subscription fees related to the use of the Company's technology solutions. In exchange for this consideration, the Company may have a bundle of integrated services that comprise one performance obligation and include services such as managing the facility, as well as ancillary services such as accounting, equipment leasing, consulting, insurance and other value-added services. Management type contract revenues do not include gross customer collections at the managed facilities as these revenues belong to the property owners rather than the Company. Management type contracts generally provide the Company with management fees regardless of the operating performance of the underlying facilities. Revenue is recognized over time as the Company provides services.

Service concession arrangements

Certain expenses (primarily rental expense), as well as depreciation and amortization, related to service concessions arrangements for lease type contracts, are recorded as a reduction of Service revenue – lease type contracts.

The Company recorded cost concessions related to service concession arrangements (recognized as an increase to revenue) of $2.7 million and $5.6 million during the three and six months ended June 30, 2023, respectively, and $2.9 million and $6.1 million during the three and six months ended June 30, 2022, respectively.

Disaggregation of revenue

The Company disaggregates its revenue from contracts with customers by type of arrangement for each of the reportable segments. The Company has concluded that such disaggregation of revenue best depicts the overall economic nature, timing and uncertainty of the Company's revenue and cash flows affected by the economic factors of the respective contractual arrangement. See Note 13. Segment Information for further information on disaggregation of the Company's revenue by segment.

Performance obligations

As of June 30, 2023, the Company had $199.2 million related to performance obligations that were unsatisfied or partially unsatisfied for which the Company expects to recognize revenue. This amount excludes variable consideration primarily related to contracts where the Company and customer share the gross revenues or operating profit for the location and contracts where transaction prices include performance incentives that are constrained at contract inception. These performance incentives are based on measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception by the Company. The Company applies the practical expedient that permits exclusion of information about the remaining performance obligations that have original expected durations of one year or less.

The Company expects to recognize the remaining performance obligations as revenue in future periods as follows:

(millions) (unaudited)	Remaining Performance Obligations
2023	$	40.5
2024		58.8
2025		37.2
2026		28.6
2027		17.1
2028 and thereafter		17.0
Total	$	199.2

Contract balances

Contract assets and liabilities are reported on a contract-by-contract basis and are included in Accounts receivable, net, and Accrued and other current liabilities, respectively, within the Condensed Consolidated Balance Sheets.

The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of June 30, 2023 (unaudited) and December 31, 2022:

(millions)	June 30, 2023			December 31, 2022
Accounts receivable	$	180.6		$	169.9
Contract asset		2.5			1.8
Contract liabilities		(12.3	)		(17.4	)

Changes in contract assets, which include the recognition of additional consideration due from the client, are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract assets during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	1.8		$	2.3
Additional contract assets		2.5			—
Reclassification to accounts receivable		(1.8	)		(2.3	)
Balance, end of period	$	2.5		$	—

Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liabilities during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	(17.4	)	$	(15.7	)
Additional contract liabilities		(12.3	)		(8.3	)
Recognition of revenue from contract liabilities		17.4			15.7
Balance, end of period	$	(12.3	)	$	(8.3	)

Cost of contracts, net

Cost of contracts expense related to service concession arrangements and certain management type contracts are recorded as a reduction of revenue. Cost of contracts expense during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included as a reduction to Services revenue – management type contracts within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Cost of contracts expense	$	0.3	$	0.3	$	0.5	$	0.5

As of June 30, 2023 (unaudited) and December 31, 2022, cost of contracts, net of accumulated amortization, included in Other noncurrent assets within the Condensed Consolidated Balance Sheets was $2.7 million and $2.9 million, respectively.

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Legal and Other Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal and Other Commitments and Contingencies

5. Legal and Other Commitments and Contingencies

The Company is subject to claims and litigation in the normal course of its business, including those related to labor and employment, contracts, personal injury and other related matters, some of which allege substantial monetary damages and claims. Some of these actions may be brought as class actions on behalf of a class or purported class of employees. While the outcomes of claims and legal proceedings brought against the Company are subject to uncertainty, the Company believes the final outcome will not have a material adverse effect on its financial position, results of operations or cash flows.

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Other Intangible Assets, net

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangible Assets, net

6. Other Intangible Assets, net

The components of other intangible assets, net, as of June 30, 2023 (unaudited) and December 31, 2022, were as follows:

			June 30, 2023							December 31, 2022
(millions)	Weighted Average Life (Years)		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net
Covenant not to compete		3.4	$	2.9	$	(1.8	)	$	1.1	$	2.9	$	(1.4	)	$	1.5
Trade names and trademarks		12.0		3.0		(0.9	)		2.1		2.8		(0.7	)		2.1
Proprietary know how		6.4		22.0		(4.4	)		17.6		21.7		(2.7	)		19.0
Management contract rights		6.0		81.0		(55.4	)		25.6		81.0		(52.9	)		28.1
Customer relationships		8.1		24.9		(7.8	)		17.1		24.8		(6.6	)		18.2
Other intangible assets, net		6.8	$	133.8	$	(70.3	)	$	63.5	$	133.2	$	(64.3	)	$	68.9

Amortization expense related to other intangible assets during the three and six months ended June 30, 2023 and 2022, (unaudited), respectively, which was included in Depreciation and amortization within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Amortization expense	$	3.0	$	2.1	$	6.0	$	4.9

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Goodwill

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

7. Goodwill

The changes in the carrying amount of goodwill during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Commercial		Aviation			Total
Net book value as of December 31, 2022
Goodwill	$	387.0	$	215.7		$	602.7
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.0	$	156.2		$	543.2
Foreign currency translation		0.1		0.3			0.4
Net book value as of June 30, 2023
Goodwill	$	387.1	$	216.0		$	603.1
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.1	$	156.5		$	543.6

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Borrowing Arrangements

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Borrowing Arrangements

8. Borrowing Arrangements

Long-term borrowings, as of June 30, 2023 (unaudited) and December 31, 2022, in order of preference, were as follows:

	Amount Outstanding
(millions)	June 30, 2023			December 31, 2022
Senior Credit Facility, net of original discount on borrowings(1)	$	343.9		$	322.3
Other borrowings(2)		23.9			24.3
Deferred financing costs		(2.1	)		(2.4	)
Total obligations		365.7			344.2
Less: Current portion of long-term borrowings		13.5			12.4
Total long-term borrowings, excluding current portion	$	352.2		$	331.8

(1)Included discount on borrowings of $1.1 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively.

(2)Included finance lease liabilities of $22.8 million and $23.2 million as of June 30, 2023 and December 31, 2022, respectively. See Note 3. Leases for further discussion.

Senior Credit Facility

On April 21, 2022 (the “Fifth Amendment Effective Date”), the Company entered into a fifth amendment (the “Fifth Amendment”) to the Company’s credit agreement (as amended prior to the Fifth Amendment Effective Date, the “Credit Agreement”; the Credit Agreement, as amended by the Fifth Amendment, the “Amended Credit Agreement”) with Bank of America, N.A. (“Bank of America”), as Administrative Agent, swing-line lender and a letter of credit issuer; certain subsidiaries of the Company, as guarantors; and the lenders party thereto (the “Lenders”), pursuant to which the Lenders have made available to the Company a senior secured credit facility (the “Senior Credit Facility”). The Senior Credit Facility permits aggregate borrowings of $600.0 million consisting of (i) a revolving credit facility of up to $400.0 million at any time outstanding, which includes a letter of credit facility that is limited to $100.0 million at any time outstanding, and (ii) a term loan facility of $200.0 million. The maturity date of the Senior Credit Facility is April 21, 2027.

As of June 30, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement.

As of June 30, 2023, the Company had $39.1 million of letters of credit outstanding under the Senior Credit Facility and borrowings against the Senior Credit Facility aggregated to $345.0 million.

The weighted average interest rate on the Senior Credit Facility was 6.5% and 3.3% during the six months ended June 30, 2023 and 2022, respectively. That rate included the letters of credit for both years and interest rate collars during the three months ended June 30, 2022. The weighted average interest rate on all outstanding borrowings, not including letters of credit, was 7.0% and 3.4% during the six months ended June 30, 2023 and 2022, respectively.

Subordinated Convertible Debentures

The Company acquired Subordinated Convertible Debentures ("Convertible Debentures") as a result of the October 2, 2012 acquisition of Central Parking Corporation. As of October 2, 2012, the Convertible Debentures were no longer redeemable for shares. The Convertible Debentures mature April 1, 2028 at $25 per share. The Convertible Debenture holders have the right to redeem the Convertible Debentures for $19.18 per share upon acceleration or earlier repayment of the Convertible Debentures. There have been no redemptions of the Convertible Debentures during the periods ended June 30, 2023 and December 31, 2022. The approximate redemption value of the Convertible Debentures outstanding as of June 30, 2023 and December 31, 2022 was $1.1 million.

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Stock Repurchase Program

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stock Repurchase Program

9. Stock Repurchase Program

On February 14, 2023, the Company's Board of Directors (the "Board") authorized the Company to repurchase, on the open market, shares of the Company's outstanding common stock in an amount not to exceed $60.0 million. No shares have been repurchased under this program.

In May 2022, the Board authorized the Company to repurchase, on the open market, shares of the Company’s outstanding common stock in an amount not to exceed $60.0 million in aggregate. During the six months ended June 30, 2023, 285,700 shares were repurchased at an average price of $36.53 per share under this program. As of June 30, 2023, $0.2 million remained available for repurchase under this program.

Stock repurchase activity under the May 2022 stock repurchase program during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

(millions, except for share and per share data)	June 30, 2023		June 30, 2022
Total number of shares repurchased		285,700		176,500
Average price paid per share	$	36.53	$	31.51
Total value of common stock repurchased	$	10.4	$	5.6

No stock repurchases were made during the three months ended June 30, 2023 or the three months ended March 31, 2022.

The Company recorded $0.1 million in additional paid-in capital within the Condensed Consolidated Balance Sheets during the six months ended June 30, 2023, related to the excise tax on net repurchases of common stock that was a provision of the Inflation Reduction Act of 2022.

The remaining authorized repurchase amount under the May 2022 and February 2023 stock repurchase programs as of June 30, 2023 (unaudited), was as follows:

(millions)	June 30, 2023
Total authorized repurchase amount	$	120.0
Total value of shares repurchased		59.8
Total remaining authorized repurchase amount	$	60.2

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

10. Stock-Based Compensation

Stock Grants

The Company granted 18,660 and 14,635 shares of common stock to the Board during the six months ended June 30, 2023 and 2022, respectively. The Company recognized $0.6 million and $0.4 million of stock-based compensation expense related to stock grants during the three and six months ended June 30, 2023 and 2022, respectively.

Restricted Stock Units

During the six months ended June 30, 2023, the Company granted 126,931 restricted stock units to certain executives that vest over three years. During the six months ended June 30, 2022, the Company granted 1,057 and 135,054 restricted stock units to certain executives and employees that vest over one and three years, respectively.

Nonvested restricted stock units as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited) were as follows:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		338,448		$	33.28
Granted		126,931			34.57
Vested		(8,426	)		35.95
Nonvested as of June 30, 2023		456,953		$	33.62

The Company's stock-based compensation expense related to the restricted stock units during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.4	$	1.5	$	2.5	$	2.8

As of June 30, 2023, there was $8.2 million of unrecognized stock-based compensation expense related to restricted stock units that are expected to be recognized over a weighted average remaining period of approximately 2.0 years.

Performance Share Units (“PSUs”)

During the six months ended June 30, 2023 and 2022, the Company granted 126,921 and 132,304 PSUs, respectively, to certain executives. The performance target is based on the achievement of a certain level of operating income, excluding depreciation and amortization, as well as certain other discretionary adjustments by the Board, over a three-year performance period. The ultimate number of shares issued could change depending on the Company’s results over the performance period. The maximum amount of shares that could be issued for the PSU's granted in 2023 ("2023 PSUs"), the PSU's granted in 2022 ("2022 PSUs") and the PSU's granted in 2021 ("2021 PSUs") are 253,842, 258,114 and 97,096, respectively. The Company is currently recognizing expense for the 2023 PSUs based on a payout of 130,729 shares, the 2022 PSUs based on a payout of 197,457 shares, and the maximum payout of 97,096 shares for the 2021 PSUs.

Nonvested PSUs as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited), were as follows:

	Shares		Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		177,605	$	31.94
Granted		126,921		34.57
Nonvested as of June 30, 2023		304,526	$	33.04

The Company's stock-based compensation expense related to PSUs during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.2	$	0.7	$	2.3	$	1.2

As of June 30, 2023, there was $7.8 million of unrecognized stock-based compensation expenses related to PSUs that are expected to be recognized over a weighted average remaining period of approximately 1.9 years. In addition, the Company could recognize additional future stock-based compensation expense of $4.3 million and $1.9 million for the 2023 PSUs and the 2022 PSUs, respectively, if the maximum performance target is achieved for each award.

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Net Income per Common Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Net Income per Common Share

11. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted daily average number of shares of common stock outstanding during the period. Diluted net income per common share is based upon the weighted daily average number of shares of common stock outstanding during the period plus all potentially dilutive stock-based awards, including restricted stock and performance share units, using the treasury-stock method. Unvested performance share units are excluded from the computation of weighted average diluted common shares outstanding if the performance targets upon which the issuance of the shares is contingent have not been achieved and the respective performance period has not been completed as of the end of the period.

Basic and diluted net income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding during the three and six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Three Months Ended				Six Months Ended
(millions, except share and per share data)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income attributable to SP Plus Corporation	$	12.3	$	15.4	$	20.7	$	26.1
Basic weighted average common shares outstanding		19,631,772		21,195,819		19,666,684		21,211,299
Dilutive impact of share-based awards		208,181		160,645		187,216		136,143
Diluted weighted average common shares outstanding		19,839,953		21,356,464		19,853,900		21,347,442
Net income per common share
Basic	$	0.63	$	0.73	$	1.05	$	1.23
Diluted	$	0.62	$	0.72	$	1.04	$	1.22

There were no additional securities that could dilute basic earnings per share in the future that were not included in the computation of diluted earnings per common share, other than those disclosed.

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Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2023

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Comprehensive Income (Loss)

12. Comprehensive Income (Loss)

The components of other comprehensive income (loss) and the income tax benefit allocated to each component during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(millions)	Before Tax Amount		Income Tax		Net of Tax Amount		Before Tax Amount		Income Tax		Net of Tax Amount
Translation adjustments	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7
Other comprehensive income	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7

	Three Months Ended June 30, 2022								Six Months Ended June 30, 2022
(millions)	Before Tax Amount			Income Tax		Net of Tax Amount			Before Tax Amount			Income Tax		Net of Tax Amount
Translation adjustments	$	(0.2	)	$	—	$	(0.2	)	$	(0.1	)	$	—	$	(0.1	)
De-designation of interest rate collars		0.1			—		0.1			0.7			0.2		0.5
Other comprehensive income (loss)	$	(0.1	)	$	—	$	(0.1	)	$	0.6		$	0.2	$	0.4

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	(1.8	)	$	(1.8	)
Other comprehensive income before reclassification		0.7			0.7
Balance as of June 30, 2023	$	(1.1	)	$	(1.1	)

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2022 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Interest Rate Collars			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2021	$	(2.3	)	$	(0.5	)	$	(2.8	)
Other comprehensive loss before reclassification		(0.1	)		—			(0.1	)
Amounts reclassified from accumulated other comprehensive loss		—			0.5			0.5
Balance as of June 30, 2022	$	(2.4	)	$	—		$	(2.4	)

Reclassifications from accumulated other comprehensive loss during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

(millions)	Three Months Ended June 30				Six Months Ended June 30				Classification in the Condensed Consolidated Statements of Income
Interest Rate Collars:	2023		2022		2023		2022
Net realized loss	$	—	$	0.1	$	—	$	0.7	Other expenses
Reclassifications before tax		—		0.1		—		0.7
Income tax benefit		—		—		—		0.2
Reclassifications, net of tax	$	—	$	0.1	$	—	$	0.5

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Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

13. Segment Information

Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. The CODM is the Company’s chief executive officer.

Each of the operating segments are directly responsible for revenue and expenses related to their operations, including direct segment general and administrative expenses. The CODM assesses the performance of each operating segment using information about operating income (loss) as its primary measure of performance, but does not evaluate segments using discrete asset information. Therefore, assets are not presented at the segment level. There were no inter-segment transactions during the three and six months ended June 30, 2023, and the Company does not allocate other expense (income), interest expense (income) or income tax expense (benefit) to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

The Company’s operating segments are Commercial and Aviation:

•Commercial encompasses the Company's services in healthcare facilities, municipalities, including meter revenue collection and enforcement services, government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as providing technology-based mobility solutions, shuttle and ground transportation services, valet services, taxi and livery dispatch services and event planning, including shuttle and transportation services.

•Aviation encompasses the Company's services in aviation (i.e., airports, airline and certain hospitality clients with baggage and parking services) as well as ancillary services, which include shuttle and ground transportation services, valet services, baggage handling, baggage repair and replacement, remote air check-in services, wheelchair assist services and other services, as well as providing technology-based mobility solutions.

The Other segment includes costs related to the Company’s operational support teams and costs related to common and shared infrastructure, including finance, accounting, information technology, human resources, procurement, legal and corporate development.

Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended						Six Months Ended
(millions)	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Services revenue
Commercial
Lease type contracts	$	72.4		$	67.1		$	137.0		$	126.3
Management type contracts		75.2			65.8			155.0			137.8
Total Commercial		147.6			132.9			292.0			264.1
Aviation
Lease type contracts		3.9			3.5			7.5			6.9
Management type contracts		69.8			60.1			138.1			109.9
Total Aviation		73.7			63.6			145.6			116.8
Reimbursed management type contract revenue		220.9			184.5			429.9			349.9
Total services revenue	$	442.2		$	381.0		$	867.5		$	730.8
Operating income (loss)
Commercial	$	36.1		$	34.7		$	67.3		$	63.3
Aviation		9.6			8.5			18.2			16.6
Other		(20.4	)		(17.6	)		(40.9	)		(34.2	)
Total operating income	$	25.3		$	25.6		$	44.6		$	45.7
General and administrative expenses
Commercial	$	9.3		$	7.8		$	17.5		$	13.9
Aviation		4.0			2.9			7.9			5.6
Other		18.5			16.0			37.0			31.7
Total general and administrative expenses	$	31.8		$	26.7		$	62.4		$	51.2
Depreciation and amortization
Commercial(1)	$	3.8		$	2.8		$	7.4		$	5.8
Aviation(2)		3.1			2.1			5.9			5.0
Other		1.9			1.6			3.9			2.5
Total depreciation and amortization	$	8.8		$	6.5		$	17.2		$	13.3

(1)Included depreciation and amortization expenses related to cost of services activities of $2.2 million and $1.6 million during the three months ended June 30, 2023 and 2022, respectively, and $4.1 million and $3.4 million during the six months ended June 30, 2023 and 2022, respectively.

(2)Included depreciation and amortization expenses related to cost of service activities of $1.5 million and $1.1 million during the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.2 million during the six months ended June 30, 2023 and 2022, respectively.

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Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Event

On July 25, 2023, the Company acquired certain assets of Roker Inc., a United States based provider of fully-integrated parking solutions that simplify permit, violation and enforcement management for organizations and municipalities, for approximately $3.1 million. The Company utilized borrowings under its Senior Credit Facility and cash on hand to fund the acquisition.

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Significant Accounting Policies and Practices (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures normally included in the financial statements have been condensed or omitted as permitted by such rules and regulations.

All adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation have been included. Operating results during the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for any other interim period or the fiscal year ending December 31, 2023. The financial statements presented in this report should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2022 filed on February 24, 2023 with the Securities and Exchange Commission.

Principles of Consolidation

Principles of Consolidation

The unaudited Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries, and Variable Interest Entities ("VIEs") in which the Company is the primary beneficiary. The Company is the primary beneficiary of a VIE when the Company has the power to direct activities that most significantly affect the economic performance of the VIE. If the Company is not the primary beneficiary in a VIE and has significant influence, the Company accounts for the investment in the VIE as an equity method investment. As of June 30, 2023 and December 31, 2022, assets related to consolidated VIEs were $58.6 million and $57.1 million, respectively, which were primarily related to right-of-use (“ROU”) assets and property and equipment, net. As of June 30, 2023 and December 31, 2022, liabilities related to consolidated VIEs were $46.6 million and $50.9 million, respectively, which were primarily related to operating and finance lease liabilities. All intercompany profits, transactions and balances have been eliminated in consolidation.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents represent funds temporarily invested in money market instruments with maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements were $0.6 million as of June 30, 2023 and December 31, 2022, and were included in Cash and cash equivalents within the Condensed Consolidated Balance Sheets.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Accounts receivable, net of the allowance for doubtful accounts, represents the Company’s estimate of the amount that ultimately will be realized in cash. The Company reviews the adequacy of its allowance for doubtful accounts on an ongoing basis, primarily using a review of specific accounts, as well as historical collection trends and aging of receivables, and records adjustments to the allowance as necessary. The Company’s allowance for doubtful accounts, which was included in Accounts receivable, net, within the Condensed Consolidated Balance Sheets, was $4.1 million and $4.0 million as of June 30, 2023 and December 31, 2022, respectively.

Property and Equipment, Net

Property and Equipment, Net

Property and equipment includes the Company's equipment, internal-use software, vehicles, leasehold improvements and construction/development in process. Property and equipment are stated at cost, less accumulated depreciation and amortization, whenever applicable.

Certain costs incurred in the planning and evaluation stage of internal-use software projects are recorded to expense as incurred. Costs associated with directly obtaining, developing or upgrading internal-use software are capitalized and included as Software in Property and equipment, net, within the Condensed Consolidated Balance Sheets. When the internal-use software is ready for

its intended use, it is amortized on a straight-line basis over the estimated useful life of the internal-use software, which is typically 3 years.

Equipment and vehicles are depreciated on a straight-line basis over estimated useful lives ranging from 1 to 10 years. Expenditures for major renewals and improvements that extend the useful life of property and equipment, other than internal-use software, are capitalized. Leasehold improvements are amortized on a straight-line basis over the terms of the respective leases or the useful lives of the improvements, whichever is shorter.

Equity Investments in Unconsolidated Entities

Equity Investments in Unconsolidated Entities

The Company has ownership interests in 25 active partnerships, joint ventures or similar arrangements that operate parking facilities, of which 19 are consolidated under the VIE or voting interest models and 6 are unconsolidated where the Company’s ownership interests range from 30-50 percent and for which there are no indicators of control. The Company accounts for such investments under the equity method of accounting, and the Company’s underlying share of each investee’s equity of $12.2 million and $11.9 million as of June 30, 2023 and December 31, 2022, respectively, was included in Other noncurrent assets within the Condensed Consolidated Balance Sheets. As the operations of these entities are consistent with the Company’s underlying core business operations, the equity in earnings of these investments were included in Services revenue - lease type contracts within the Condensed Consolidated Statements of Income. The equity earnings in these related investments were $0.6 million for the three months ended June 30, 2023 and 2022, and $1.3 million and $1.5 million during the six months ended June 30, 2023 and 2022, respectively.

Other Noncurrent Assets

Other Noncurrent Assets

Other noncurrent assets consisted of equity investments of unconsolidated entities, advances, deposits and cost of contracts, net, as of June 30, 2023 and December 31, 2022.

Accrued and Other Current Liabilities

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of insurance, accrued rent, compensation, contingent consideration, payroll withholdings, property, payroll and other taxes and other accrued expenses as of June 30, 2023 and December 31, 2022.

Noncontrolling Interests

Noncontrolling Interests

Noncontrolling interests represent the noncontrolling holders’ percentage share of income (losses) from the subsidiaries in which the Company holds a controlling interest, but less than 100 percent, ownership interest. The results of these subsidiaries are consolidated and included within the Condensed Consolidated Financial Statements.

During the six months ended June 30, 2023, the Company recorded a $1.0 million liability related to its estimate of additional consideration (“contingent consideration") due to a former minority partner that formerly held a noncontrolling interest in a joint venture with the Company. The Company purchased the minority partner’s interest in the joint venture in 2020. The contingent consideration is contingent on the performance of the operations of the Bradley International Airport. The contingent consideration is not capped and, if any amount is due, would be payable to the former minority partner in April 2025. The $1.0 million was determined based on a probability weighting of potential payouts and recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. In addition, the Company recorded a deferred tax asset of $0.3 million related to the contingent consideration during the six months ended June 30, 2023, which was recorded in Additional paid-in capital within the Condensed Consolidated Balance Sheets. The Company will continue to evaluate the criteria for making these payments in the future and adjust the liability when deemed necessary.

Additionally, during the six months ended June 30, 2023, the Company paid a former minority partner $2.2 million per the terms of an agreement between the Company and the former minority partner. The Company purchased the former minority partner’s entire noncontrolling interest in a joint venture with the Company as of December 31, 2022. Per the terms of the agreement, the Company will be required to make additional payments to the former minority partner over a ten-year period, amounting to a total of $4.5 million. The $2.2 million that was paid during the six months ended June 30, 2023 was included in Accrued and other current liabilities within the Condensed Consolidated Balance Sheets as of December 31, 2022.

Goodwill

Goodwill

Goodwill represents the excess of the purchase price paid over the fair value of net assets acquired. In accordance with the Financial Accounting Standards Board's ("FASB") authoritative accounting guidance on goodwill, the Company evaluates goodwill for impairment on an annual basis, or more often if events or circumstances change that could cause goodwill to become impaired. The Company has elected to assess the impairment of goodwill annually on October 1 or at an interim date if there is an event or change in circumstances indicating the carrying value may not be recoverable. The goodwill impairment test is performed at the reporting unit level; the Company's reporting units represent its operating segments, consisting of Commercial and Aviation. Factors that could trigger an impairment review include significant under-performance relative to expected historical or projected future operating results, significant changes in the use of acquired assets or the Company’s business strategy, and significant negative industry or economic trends.

The Company may perform a qualitative, rather than quantitative, assessment to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount. If the Company determines impairment is present, the Company would need to perform a quantitative assessment. The determination of fair value of a reporting unit utilizes cash flow projections that assume certain future revenue and cost levels, comparable marketplace data, comparable company market valuations, assumed discount rates based upon current market conditions and other valuation factors, all of which involve the use of significant judgment and estimates. The Company also assesses critical areas that may impact its business, including economic conditions, market related exposures, competition, changes in service offerings and changes in key personnel.

Other Intangible Assets, Net

Other Intangible Assets, net

Other intangible assets represent assets with finite lives that are amortized on a straight-line basis over their estimated useful lives. The Company evaluates other intangible assets on a periodic basis to determine whether events or circumstances warrant a revision to their remaining useful lives. In addition, other intangible assets are reviewed for impairment when circumstances change that would indicate the carrying value may not be recoverable. Assumptions and estimates about future values and remaining useful lives of intangible assets are complex and subjective, and can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors, such as changes in the Company's business strategy and forecasts. Although the Company believes the historical assumptions and estimates are reasonable and appropriate, different assumptions and estimates could materially impact reported financial results.

Long-Lived Assets

Long-Lived Assets

The Company evaluates long-lived assets, including ROU assets, leasehold improvements, equipment and construction/development in progress, for impairment whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. The Company groups assets at the lowest level for which cash flows are separately identified in order to measure an impairment. Events or circumstances that would result in an impairment review include a significant change in the use of an asset, the planned sale or disposal of an asset, or a projection that demonstrates continuing losses associated with the use of a long-lived asset or asset group. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset or asset group to future undiscounted cash flows expected to be generated by the asset or asset group. If the asset or asset group is determined to be impaired, the impairment recognized is measured by the amount by which the carrying value of the asset or asset group exceeds its fair value.

Assumptions and estimates used to determine cash flows in the evaluation of impairment and the fair values used to determine the impairment are subject to a degree of judgment and complexity. Any future changes to the assumptions and estimates resulting from changes in actual results or market conditions from those anticipated may affect the carrying value of long-lived assets or asset groups and could result in impairment charges. Future events that may result in impairment charges include economic volatility or other factors that could decrease revenues and profitability of existing locations and changes in the cost structure of existing facilities, such as increasing labor and benefit costs.

Foreign Operations

Foreign Operations

The Company has foreign operations in Canada, Puerto Rico, the United Kingdom and India. Assets and liabilities of the Company’s foreign operations are translated into U.S. dollars at the rate in effect on the respective balance sheet date, while income and expenses are translated at the average rates during the respective periods. Translation adjustments resulting from the fluctuations in exchange rates are recorded as a separate component of accumulated other comprehensive loss in stockholders’ equity within the Condensed Consolidated Balance Sheets, while transaction gains and losses are recorded within the Condensed Consolidated Statements of Income. Deferred taxes are not recorded on cumulative foreign currency translation adjustments when the Company expects the foreign earnings to be permanently reinvested.

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Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed

The estimated fair values of the assets acquired and liabilities assumed based on the information that was available as of the acquisition dates were as follows:

(millions)
Cash and cash equivalents	$	0.9
Accounts receivable		0.7
Prepaid expenses and other current assets		0.1
Other intangible assets		21.7
Goodwill		16.3
ROU asset		0.1
Accounts payable		(0.1	)
Accrued and other current liabilities		(1.5	)
Deferred tax liability		(2.5	)
Other long-term borrowings		(0.3	)
Net assets acquired and liabilities assumed		35.4
Less: cash and cash equivalents acquired		0.9
Less: contingent consideration payable		4.0
Net cash paid	$	30.5

In addition to the acquisitions discussed above, on April 18, 2022, the Company acquired certain other intangible assets for a purchase price of $1.8 million.

Schedule of Other Assets Acquired were Recorded at their Estimated Fair Value

The other intangible assets acquired were recorded at their estimated fair value on the acquisition dates as follows:

(millions)	Estimated Life	Estimated Fair Value
Proprietary know how	7.4 Years	$	17.3
Customer relationships	5.8 Years		3.2
Trade names	13.2 Years		1.8
Covenant not to compete	4.2 Years	1.2
Estimated fair value of identified intangible assets		$	23.5

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Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Schedule of Components of ROU Assets and Lease Liabilities

The components of ROU assets and lease liabilities and the classification within the Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022 were as follows:

(millions)	Classification	June 30, 2023		December 31, 2022
Assets
Operating	Right-of-use assets	$	170.7	$	166.9
Finance	Property and equipment, net		23.7		24.4
Total leased assets		$	194.4	$	191.3
Liabilities
Current
Operating	Short-term lease liabilities	$	57.3	$	60.2
Finance	Current portion of long-term borrowings		7.1		7.2
Noncurrent
Operating	Long-term lease liabilities		156.3		158.5
Finance	Long-term borrowings, excluding current portion		15.7		16.0
Total lease liabilities		$	236.4	$	241.9

Schedule of Components of Lease Cost

The components of lease cost and classification within the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

		Three Months Ended				Six Months Ended
(millions)	Classification	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Operating lease cost (a)(b)	Cost of services - lease type contracts	$	15.2	$	14.6	$	29.0	$	29.7
Short-term lease (a)	Cost of services - lease type contracts		5.3		5.3		10.2		10.4
Variable lease	Cost of services - lease type contracts		22.8		18.8		41.0		33.3
Operating lease cost			43.3		38.7		80.2		73.4
Finance lease cost
Amortization of leased assets	Depreciation and amortization		1.7		1.4		3.3		2.7
Interest on lease liabilities	Interest expense		0.3		0.3		0.6		0.5
Net lease cost		$	45.3	$	40.4	$	84.1	$	76.6

(a)Included expense related to leases for office space recorded in General and administrative expenses within the Condensed Consolidated Statements of Income of $0.9 million and $1.9 million during the three and six months ended June 30, 2023 and 2022, respectively.

(b)Included rent concessions amounting to $1.2 million and $2.5 million during the three and six months ended June 30, 2023, respectively, and $1.5 million and $3.7 million during the three and six months ended June 30, 2022, respectively.

Schedule of Maturities of Lease Liabilities

Maturities, lease term and discount rate information of lease liabilities as of June 30, 2023 (unaudited) were as follows:

(millions)	Operating Leases Liabilities			Finance Leases Liabilities			Total
2023	$	35.8		$	4.4		$	40.2
2024		59.1			7.0			66.1
2025		46.5			5.1			51.6
2026		35.6			3.8			39.4
2027		22.8			2.1			24.9
After 2027		48.7			3.1			51.8
Total lease payments		248.5			25.5			274.0
Less: Imputed interest		34.9			2.7			37.6
Present value of lease liabilities	$	213.6		$	22.8		$	236.4
Weighted-average remaining lease term (years)		5.2			4.2
Weighted-average discount rate		5.4	%		5.1	%

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Six Months Ended
(millions)	June 30, 2023		June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$	44.2	$	46.7
Operating cash outflows related to interest on finance leases		0.5		0.5
Financing cash outflows related to finance leases		3.8		5.4
Leased assets obtained in exchange for new operating liabilities		31.2		5.8
Leased assets obtained in exchange for new finance lease liabilities		3.5		4.9

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Revenue (Tables)

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Remaining Performance Obligations

The Company expects to recognize the remaining performance obligations as revenue in future periods as follows:

(millions) (unaudited)	Remaining Performance Obligations
2023	$	40.5
2024		58.8
2025		37.2
2026		28.6
2027		17.1
2028 and thereafter		17.0
Total	$	199.2

Schedule of Contract with Customer, Asset and Liabilities

The following table provides information about accounts receivable, contract assets and contract liabilities with customers and clients as of June 30, 2023 (unaudited) and December 31, 2022:

(millions)	June 30, 2023			December 31, 2022
Accounts receivable	$	180.6		$	169.9
Contract asset		2.5			1.8
Contract liabilities		(12.3	)		(17.4	)

Changes in contract assets, which include the recognition of additional consideration due from the client, are offset by reclassifications of contract asset balances to accounts receivable when the Company obtains an unconditional right to consideration, thereby establishing an accounts receivable. The following table provides information about changes to contract assets during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	1.8		$	2.3
Additional contract assets		2.5			—
Reclassification to accounts receivable		(1.8	)		(2.3	)
Balance, end of period	$	2.5		$	—

Changes in contract liabilities primarily include additional contract liabilities and reductions of contract liabilities when revenue is recognized. The following table provides information about changes to contract liabilities during the six months ended June 30, 2023 and 2022 (unaudited):

	Six Months Ended
(millions)	June 30, 2023			June 30, 2022
Balance, beginning of period	$	(17.4	)	$	(15.7	)
Additional contract liabilities		(12.3	)		(8.3	)
Recognition of revenue from contract liabilities		17.4			15.7
Balance, end of period	$	(12.3	)	$	(8.3	)

Schedule of Cost of Contracts Expense

Cost of contracts expense related to service concession arrangements and certain management type contracts are recorded as a reduction of revenue. Cost of contracts expense during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included as a reduction to Services revenue – management type contracts within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Cost of contracts expense	$	0.3	$	0.3	$	0.5	$	0.5

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Other Intangible Assets, net (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Components of Intangible Assets, Net

The components of other intangible assets, net, as of June 30, 2023 (unaudited) and December 31, 2022, were as follows:

			June 30, 2023							December 31, 2022
(millions)	Weighted Average Life (Years)		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net		Intangible Assets, Gross		Accumulated Amortization			Intangible Assets, Net
Covenant not to compete		3.4	$	2.9	$	(1.8	)	$	1.1	$	2.9	$	(1.4	)	$	1.5
Trade names and trademarks		12.0		3.0		(0.9	)		2.1		2.8		(0.7	)		2.1
Proprietary know how		6.4		22.0		(4.4	)		17.6		21.7		(2.7	)		19.0
Management contract rights		6.0		81.0		(55.4	)		25.6		81.0		(52.9	)		28.1
Customer relationships		8.1		24.9		(7.8	)		17.1		24.8		(6.6	)		18.2
Other intangible assets, net		6.8	$	133.8	$	(70.3	)	$	63.5	$	133.2	$	(64.3	)	$	68.9

Summary of Amortization of Other Intangible Assets

Amortization expense related to other intangible assets during the three and six months ended June 30, 2023 and 2022, (unaudited), respectively, which was included in Depreciation and amortization within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Amortization expense	$	3.0	$	2.1	$	6.0	$	4.9

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amounts of Goodwill

The changes in the carrying amount of goodwill during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Commercial		Aviation			Total
Net book value as of December 31, 2022
Goodwill	$	387.0	$	215.7		$	602.7
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.0	$	156.2		$	543.2
Foreign currency translation		0.1		0.3			0.4
Net book value as of June 30, 2023
Goodwill	$	387.1	$	216.0		$	603.1
Accumulated impairment losses		—		(59.5	)		(59.5	)
Total	$	387.1	$	156.5		$	543.6

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Borrowing Arrangements (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Borrowings

Long-term borrowings, as of June 30, 2023 (unaudited) and December 31, 2022, in order of preference, were as follows:

	Amount Outstanding
(millions)	June 30, 2023			December 31, 2022
Senior Credit Facility, net of original discount on borrowings(1)	$	343.9		$	322.3
Other borrowings(2)		23.9			24.3
Deferred financing costs		(2.1	)		(2.4	)
Total obligations		365.7			344.2
Less: Current portion of long-term borrowings		13.5			12.4
Total long-term borrowings, excluding current portion	$	352.2		$	331.8

(1)Included discount on borrowings of $1.1 million and $1.3 million as of June 30, 2023 and December 31, 2022, respectively.

(2)Included finance lease liabilities of $22.8 million and $23.2 million as of June 30, 2023 and December 31, 2022, respectively. See Note 3. Leases for further discussion.

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Stock Repurchase Program (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Summary of Share Repurchase Activity and Remaining Authorized Repurchase Amounts

Stock repurchase activity under the May 2022 stock repurchase program during the six months ended June 30, 2023 and 2022 (unaudited) was as follows:

(millions, except for share and per share data)	June 30, 2023		June 30, 2022
Total number of shares repurchased		285,700		176,500
Average price paid per share	$	36.53	$	31.51
Total value of common stock repurchased	$	10.4	$	5.6

The remaining authorized repurchase amount under the May 2022 and February 2023 stock repurchase programs as of June 30, 2023 (unaudited), was as follows:

(millions)	June 30, 2023
Total authorized repurchase amount	$	120.0
Total value of shares repurchased		59.8
Total remaining authorized repurchase amount	$	60.2

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Nonvested Restricted Stock Units and Changes During the Period

Nonvested restricted stock units as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited) were as follows:

	Shares			Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		338,448		$	33.28
Granted		126,931			34.57
Vested		(8,426	)		35.95
Nonvested as of June 30, 2023		456,953		$	33.62

Schedule of Stock-Based Compensation Expense

The Company's stock-based compensation expense related to the restricted stock units during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.4	$	1.5	$	2.5	$	2.8

The Company's stock-based compensation expense related to PSUs during the three and six months ended June 30, 2023 and 2022 (unaudited), which was included in General and administrative expenses within the Condensed Consolidated Statements of Income, was as follows:

	Three Months Ended				Six Months Ended
(millions)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Stock-based compensation expense	$	1.2	$	0.7	$	2.3	$	1.2

Summary of Nonvested PSU's and Changes During the Period

Nonvested PSUs as of June 30, 2023, and changes during the six months ended June 30, 2023 (unaudited), were as follows:

	Shares		Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022		177,605	$	31.94
Granted		126,921		34.57
Nonvested as of June 30, 2023		304,526	$	33.04

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Net Income per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income per Common Share and Reconciliation of Weighted Average Shares

Basic and diluted net income per common share and a reconciliation of the weighted average basic common shares outstanding to the weighted average diluted common shares outstanding during the three and six months ended June 30, 2023 and 2022 (unaudited) was as follows:

	Three Months Ended				Six Months Ended
(millions, except share and per share data)	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income attributable to SP Plus Corporation	$	12.3	$	15.4	$	20.7	$	26.1
Basic weighted average common shares outstanding		19,631,772		21,195,819		19,666,684		21,211,299
Dilutive impact of share-based awards		208,181		160,645		187,216		136,143
Diluted weighted average common shares outstanding		19,839,953		21,356,464		19,853,900		21,347,442
Net income per common share
Basic	$	0.63	$	0.73	$	1.05	$	1.23
Diluted	$	0.62	$	0.72	$	1.04	$	1.22

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Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2023

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of Other Comprehensive Income (Loss) and Income Tax Benefit Allocated

The components of other comprehensive income (loss) and the income tax benefit allocated to each component during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
(millions)	Before Tax Amount		Income Tax		Net of Tax Amount		Before Tax Amount		Income Tax		Net of Tax Amount
Translation adjustments	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7
Other comprehensive income	$	0.5	$	—	$	0.5	$	0.7	$	—	$	0.7

	Three Months Ended June 30, 2022								Six Months Ended June 30, 2022
(millions)	Before Tax Amount			Income Tax		Net of Tax Amount			Before Tax Amount			Income Tax		Net of Tax Amount
Translation adjustments	$	(0.2	)	$	—	$	(0.2	)	$	(0.1	)	$	—	$	(0.1	)
De-designation of interest rate collars		0.1			—		0.1			0.7			0.2		0.5
Other comprehensive income (loss)	$	(0.1	)	$	—	$	(0.1	)	$	0.6		$	0.2	$	0.4

Components of Accumulated Other Comprehensive Loss

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2023 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2022	$	(1.8	)	$	(1.8	)
Other comprehensive income before reclassification		0.7			0.7
Balance as of June 30, 2023	$	(1.1	)	$	(1.1	)

The changes to accumulated other comprehensive loss by component during the six months ended June 30, 2022 (unaudited) were as follows:

(millions)	Foreign Currency Translation Adjustments			Interest Rate Collars			Total Accumulated Other Comprehensive Loss
Balance as of December 31, 2021	$	(2.3	)	$	(0.5	)	$	(2.8	)
Other comprehensive loss before reclassification		(0.1	)		—			(0.1	)
Amounts reclassified from accumulated other comprehensive loss		—			0.5			0.5
Balance as of June 30, 2022	$	(2.4	)	$	—		$	(2.4	)

Reclassification from Accumulated Other Comprehensive Loss

Reclassifications from accumulated other comprehensive loss during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

(millions)	Three Months Ended June 30				Six Months Ended June 30				Classification in the Condensed Consolidated Statements of Income
Interest Rate Collars:	2023		2022		2023		2022
Net realized loss	$	—	$	0.1	$	—	$	0.7	Other expenses
Reclassifications before tax		—		0.1		—		0.7
Income tax benefit		—		—		—		0.2
Reclassifications, net of tax	$	—	$	0.1	$	—	$	0.5

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Information by Regions

Revenue, operating income (loss), general and administrative expenses and depreciation and amortization by operating segment during the three and six months ended June 30, 2023 and 2022 (unaudited) were as follows:

	Three Months Ended						Six Months Ended
(millions)	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Services revenue
Commercial
Lease type contracts	$	72.4		$	67.1		$	137.0		$	126.3
Management type contracts		75.2			65.8			155.0			137.8
Total Commercial		147.6			132.9			292.0			264.1
Aviation
Lease type contracts		3.9			3.5			7.5			6.9
Management type contracts		69.8			60.1			138.1			109.9
Total Aviation		73.7			63.6			145.6			116.8
Reimbursed management type contract revenue		220.9			184.5			429.9			349.9
Total services revenue	$	442.2		$	381.0		$	867.5		$	730.8
Operating income (loss)
Commercial	$	36.1		$	34.7		$	67.3		$	63.3
Aviation		9.6			8.5			18.2			16.6
Other		(20.4	)		(17.6	)		(40.9	)		(34.2	)
Total operating income	$	25.3		$	25.6		$	44.6		$	45.7
General and administrative expenses
Commercial	$	9.3		$	7.8		$	17.5		$	13.9
Aviation		4.0			2.9			7.9			5.6
Other		18.5			16.0			37.0			31.7
Total general and administrative expenses	$	31.8		$	26.7		$	62.4		$	51.2
Depreciation and amortization
Commercial(1)	$	3.8		$	2.8		$	7.4		$	5.8
Aviation(2)		3.1			2.1			5.9			5.0
Other		1.9			1.6			3.9			2.5
Total depreciation and amortization	$	8.8		$	6.5		$	17.2		$	13.3

(1)Included depreciation and amortization expenses related to cost of services activities of $2.2 million and $1.6 million during the three months ended June 30, 2023 and 2022, respectively, and $4.1 million and $3.4 million during the six months ended June 30, 2023 and 2022, respectively.

(2)Included depreciation and amortization expenses related to cost of service activities of $1.5 million and $1.1 million during the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.2 million during the six months ended June 30, 2023 and 2022, respectively.

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Significant Accounting Policies and Practices - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) Voting_interest_model_entity Partnership Variable_interest_entity	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Significant Accounting Policies and Practices
Assets related to consolidated VIEs	$ 1,146.3		$ 1,146.3		$ 1,121.4
Liabilities related to consolidated VIEs	904.9		904.9		895.7
Restricted cash and cash equivalents	0.6		0.6		0.6
Allowance for doubtful accounts included in accounts receivable, net	4.1		$ 4.1		4.0
Number of ownership interest entities | Partnership			25
Investments under the equity method of accounting	12.2		$ 12.2		11.9
Equity earnings in related investments	0.6	$ 0.6	1.3	$ 1.5
Contingent cosideration liability	1.0		1.0
Probability weighting of potential payouts	1.0		1.0
Deferred tax assets	$ 0.3		0.3
Payment to former minority partner			$ 2.2
Former minority partner payments term			10 years
Additional payment to former minority partner			$ 4.5
Minority partner payment included in accrued and other current liabilities			$ 2.2
Internal-use Software
Significant Accounting Policies and Practices
Property, Plant and Equipment, Useful Life	3 years		3 years
Minimum | Equipment [Member]
Significant Accounting Policies and Practices
Property, Plant and Equipment, Useful Life	1 year		1 year
Minimum | Unconsolidated Entities
Significant Accounting Policies and Practices
Ownership interests percentage	30.00%		30.00%
Maximum | Equipment [Member]
Significant Accounting Policies and Practices
Property, Plant and Equipment, Useful Life	10 years		10 years
Maximum | Unconsolidated Entities
Significant Accounting Policies and Practices
Ownership interests percentage	50.00%		50.00%
Primary Beneficiary
Significant Accounting Policies and Practices
Assets related to consolidated VIEs	$ 58.6		$ 58.6		57.1
Liabilities related to consolidated VIEs	$ 46.6		$ 46.6		$ 50.9
Number of ownership interest entities | Variable_interest_entity			19
Not Primary Beneficiary
Significant Accounting Policies and Practices
Number of ownership interest entities | Voting_interest_model_entity			6

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Acquisitions - Narrative (Details) - USD ($) $ in Millions				3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 10, 2022	Oct. 11, 2022	Apr. 18, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Services revenue				$ 442.2	$ 381.0	$ 867.5	$ 730.8
Other Intangible Assets
Business Acquisition [Line Items]
Acquired intangible assets at purchasing price			$ 1.8
KMP Associates Limited (KMP)
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition		Oct. 11, 2022
Business Combination, Consideration Transferred, Total		$ 13.8
Business Combination, Cash Aquired		0.9
Business Combination, Assumption Debt		$ 0.3
Divrt, Inc. (Divrt)
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Nov. 10, 2022
Business Combination, Consideration Transferred, Total	$ 17.6
Maximum Amount Of Contingent Consideration To Former Owner	7.0
Accrued In Projected Contingent Consideration	$ 4.0
Estimated Potential Payout				4.3		4.3		$ 4.1
Operating expense				0.1		0.2
Kmp Associates Limited and Divrt Inc [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents				0.9		0.9
Business Acquisition, Goodwill, Expected Tax Deductible Amount				10.1		10.1
Acquired intangible assets at purchasing price						23.5		$ 23.5
Kmp Associates Limited and Divrt Inc [Member] | Other Intangible Assets
Business Acquisition [Line Items]
Services revenue				1.6		3.2
Loss before income taxes				$ 0.8		$ 1.7

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Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 543.6	$ 543.2
KMP Associates Limited and Divrt, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents	0.9
Accounts receivable	0.7
Prepaid expenses and other current assets	0.1
Other intangible assets	21.7
Goodwill	16.3
ROU asset	0.1
Accounts payable	(0.1)
Accrued and other current liabilities	(1.5)
Deferred tax liability	(2.5)
Other long-term borrowings	(0.3)
Net assets acquired and liabilities assumed	35.4
Less: cash and cash equivalents acquired	0.9
Less: contingent consideration payable	4.0
Net cash paid	$ 30.5

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Acquisitions - Schedule of Other Assets Acquired were Recorded at their Estimated Fair Value (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Estimated Life	6 years 9 months 18 days
Proprietary Know How
Business Acquisition [Line Items]
Estimated Life	6 years 4 months 24 days
Customer Relationships
Business Acquisition [Line Items]
Estimated Life	8 years 1 month 6 days
Covenant Not to Compete
Business Acquisition [Line Items]
Estimated Life	3 years 4 months 24 days
KMP Associates Limited and Divrt, Inc.
Business Acquisition [Line Items]
Estimated Fair Value	$ 23.5	$ 23.5
KMP Associates Limited and Divrt, Inc. | Proprietary Know How
Business Acquisition [Line Items]
Estimated Life	7 years 4 months 24 days
Estimated Fair Value	$ 17.3
KMP Associates Limited and Divrt, Inc. | Customer Relationships
Business Acquisition [Line Items]
Estimated Life	5 years 9 months 18 days
Estimated Fair Value	$ 3.2
KMP Associates Limited and Divrt, Inc. | Trade Names
Business Acquisition [Line Items]
Estimated Life	13 years 2 months 12 days
Estimated Fair Value	$ 1.8
KMP Associates Limited and Divrt, Inc. | Covenant Not to Compete
Business Acquisition [Line Items]
Estimated Life	4 years 2 months 12 days
Estimated Fair Value	$ 1.2

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Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lessor, Lease, Description [Line Items]
Rent concessions cares act	$ 1.2	$ 1.5	$ 2.5	$ 3.7
Sublease income	$ 0.5	$ 0.3	$ 1.0	$ 0.6

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Leases - Schedule of Components of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Assets
Right-of-use assets	$ 170.7	$ 166.9
Leasehold improvements, equipment and construction in progress, net	$ 23.7	$ 24.4
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Total leased assets	$ 194.4	$ 191.3
Current
Short-term lease liabilities	57.3	60.2
Current portion of long-term borrowings	$ 7.1	$ 7.2
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of long-term borrowings	Current portion of long-term borrowings
Noncurrent
Long-term lease liabilities	$ 156.3	$ 158.5
Long-term borrowings, excluding current portion	$ 15.7	$ 16.0
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term borrowings, excluding current portion	Long-term borrowings, excluding current portion
Total lease liabilities	$ 236.4	$ 241.9

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Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating lease cost	$ 15.2	$ 14.6	$ 29.0	$ 29.7
Short-term lease	5.3	5.3	10.2	10.4
Variable lease	22.8	18.8	41.0	33.3
Operating lease cost	43.3	38.7	80.2	73.4
Amortization of leased assets	1.7	1.4	3.3	2.7
Interest on lease liabilities	0.3	0.3	0.6	0.5
Net lease cost	$ 45.3	$ 40.4	$ 84.1	$ 76.6

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Leases - Schedule of Components of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lessor, Lease, Description [Line Items]
Operating lease cost	$ 15.2	$ 14.6	$ 29.0	$ 29.7
Rent concessions cares act	1.2	1.5	2.5	3.7
Office Space
Lessor, Lease, Description [Line Items]
Operating lease cost	$ 0.9	$ 0.9	$ 1.9	$ 1.9

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Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Operating Leases Liabilities
2023	$ 35.8
2024	59.1
2025	46.5
2026	35.6
2027	22.8
After 2027	48.7
Total lease payments	248.5
Less: Imputed interest	34.9
Present value of lease liabilities	$ 213.6
Weighted-average remaining lease term (years)	5 years 2 months 12 days
Weighted-average discount rate	5.40%
Finance Leases Liabilities
2023	$ 4.4
2024	7.0
2025	5.1
2026	3.8
2027	2.1
After 2027	3.1
Total lease payments	25.5
Less: Imputed interest	2.7
Present value of lease liabilities	$ 22.8	$ 23.2
Weighted-average remaining lease term (years)	4 years 2 months 12 days
Weighted-average discount rate	5.10%
Total
2023	$ 40.2
2024	66.1
2025	51.6
2026	39.4
2027	24.9
After 2027	51.8
Total lease payments	274.0
Less: Imputed interest	37.6
Present value of lease liabilities	$ 236.4

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Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows related to operating leases	$ 44.2	$ 46.7
Operating cash outflows related to interest on finance leases	0.5	0.5
Financing cash outflows related to finance leases	3.8	5.4
Leased assets obtained in exchange for new operating liabilities	31.2	5.8
Leased assets obtained in exchange for new finance lease liabilities	$ 3.5	$ 4.9

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Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Negotiable cost reductions cares act	$ 2.7	$ 2.9	$ 5.6	$ 6.1
Performance obligation unsatisfied or partially satisfied	199.2		199.2
Cost of contracts net of accumulated amortization	$ 2.7		$ 2.7		$ 2.9

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Revenue - Schedule of Performance Obligations (Details) $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 199.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 40.5
Revenue, remaining performance obligation, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 58.8
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 37.2
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 28.6
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 17.1
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 17.0
Revenue, remaining performance obligation, expected timing of satisfaction, period

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Revenue - Schedule of Performance Obligations (Details 1) $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining Performance Obligations	$ 199.2

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Revenue - Schedule of Contract Asset and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 180.6	$ 169.9
Contract asset	2.5	1.8	$ 0.0	$ 2.3
Contract liabilities	$ (12.3)	$ (17.4)	$ (8.3)	$ (15.7)

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Revenue - Schedule of Contract Assets Balances (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Contract Asset Balances with Customer
Balance, beginning of period	$ 1.8	$ 2.3
Additional contract assets	2.5	0.0
Reclassification to accounts receivable	(1.8)	(2.3)
Balance, end of period	$ 2.5	$ 0.0

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Revenue - Schedule of Contract Liabilities Balances (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Contract Liability Balances with Customer
Balance, beginning of period	$ (17.4)	$ (15.7)
Additional contract liabilities	(12.3)	(8.3)
Recognition of revenue from contract liabilities	17.4	15.7
Balance, end of period	$ (12.3)	$ (8.3)

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Revenue - Schedule of Cost of Contracts Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
Cost of contracts expense	$ 0.3	$ 0.3	$ 0.5	$ 0.5

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Other Intangible Assets, net - Components of Intangible Assets, Net (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	6 years 9 months 18 days
Intangible Assets, Gross	$ 133.8	$ 133.2
Accumulated Amortization	(70.3)	(64.3)
Intangible Assets, Net	$ 63.5	68.9
Covenant Not to Compete
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	3 years 4 months 24 days
Intangible Assets, Gross	$ 2.9	2.9
Accumulated Amortization	(1.8)	(1.4)
Intangible Assets, Net	$ 1.1	1.5
Trade Names and Trademarks
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	12 years
Intangible Assets, Gross	$ 3.0	2.8
Accumulated Amortization	(0.9)	(0.7)
Intangible Assets, Net	$ 2.1	2.1
Proprietary Know How
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	6 years 4 months 24 days
Intangible Assets, Gross	$ 22.0	21.7
Accumulated Amortization	(4.4)	(2.7)
Intangible Assets, Net	$ 17.6	19.0
Management Contract Rights
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	6 years
Intangible Assets, Gross	$ 81.0	81.0
Accumulated Amortization	(55.4)	(52.9)
Intangible Assets, Net	$ 25.6	28.1
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	8 years 1 month 6 days
Intangible Assets, Gross	$ 24.9	24.8
Accumulated Amortization	(7.8)	(6.6)
Intangible Assets, Net	$ 17.1	$ 18.2

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Other Intangible Assets, net - Summary of Amortization of Other Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3.0	$ 2.1	$ 6.0	$ 4.9

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Goodwill - Schedule of Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2023
Goodwill [Line Items]
Goodwill	$ 602.7	$ 603.1
Accumulated impairment losses	(59.5)	(59.5)
Total	543.2	543.6
Foreign currency translation	0.4
Commercial
Goodwill [Line Items]
Goodwill	387.0	387.1
Total	387.0	387.1
Foreign currency translation	0.1
Aviation
Goodwill [Line Items]
Goodwill	215.7	216.0
Accumulated impairment losses	(59.5)	(59.5)
Total	156.2	$ 156.5
Foreign currency translation	$ 0.3

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Borrowing Arrangements - Schedule of Long-Term Borrowing (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Other borrowings	$ 23.9	$ 24.3
Deferred financing costs	(2.1)	(2.4)
Total obligations under Senior Credit Facility and other borrowings	365.7	344.2
Less: Current portion of long-term borrowings	13.5	12.4
Total long-term borrowings, excluding current portion	352.2	331.8
Senior Credit Facility, Net of Original Discount on Borrowings
Debt Instrument [Line Items]
Total obligations under Senior Credit Facility and other borrowings	$ 343.9	$ 322.3

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Borrowing Arrangements - Schedule of Long-Term Borrowing (Parenthetical) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Discount on borrowings	$ 1.1	$ 1.3
Finance lease, liability	$ 22.8	$ 23.2

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Borrowing Arrangements - Narrative (Details) - USD ($)		6 Months Ended	12 Months Ended
	Apr. 21, 2022	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Feb. 16, 2021	Nov. 30, 2018
Debt Instrument [Line Items]
Debt instrument, covenant compliance		As of June 30, 2023, the Company was in compliance with its debt covenants under the Amended Credit Agreement.
Long-term borrowings		$ 365,700,000	$ 344,200,000
Redemptions of convertible debentures		0	0
Approximate redemption value of convertible debentures		$ 1,100,000	1,100,000
Letter of Credit Facility
Debt Instrument [Line Items]
Weighted average interest rate		6.50%		3.30%
Senior Credit Facility, Net of Discount
Debt Instrument [Line Items]
Long-term borrowings		$ 343,900,000	$ 322,300,000
Convertible Subordinated Debt
Debt Instrument [Line Items]
Redemption price upon stated maturity (in dollars per share)		$ 19.18
Convertible debentures maturity per share		$ 25
Amended Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 600,000,000
Line of credit facility, expiration date	Apr. 21, 2027
Amended Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					400,000,000
Amended Credit Agreement | Letter of Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 100,000,000.0
Amended Credit Agreement | Term Loan Facility
Debt Instrument [Line Items]
Maximum borrowing capacity						$ 200,000,000.0
Amended Credit Agreement | Senior Credit Facility, Net of Discount
Debt Instrument [Line Items]
Letters of credit outstanding		$ 39,100,000
Long-term borrowings		$ 345,000,000
Senior Credit Facility | Senior Credit Facility, Net of Discount
Debt Instrument [Line Items]
Weighted average interest rate		7.00%		3.40%

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Stock Repurchase Program - Narrative (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Feb. 14, 2023	May 31, 2022
Equity Class Of Treasury Stock [Line Items]
Amount authorized by the company's Board of Directors (not to exceed)	$ 120,000,000.0			$ 120,000,000.0		$ 60,000,000	$ 60,000,000
Number of shares repurchased	0	176,500	0	285,700	176,500
Average price paid per share (in dollars per share)		$ 31.51		$ 36.53	$ 31.51
Remaining authorized repurchase amount	$ 60,200,000			$ 60,200,000
Excise tax on net repurchases of common stock				100,000
May 2022 Stock Repurchase Program
Equity Class Of Treasury Stock [Line Items]
Remaining authorized repurchase amount	$ 200,000			$ 200,000

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Stock Repurchase Program - Summary of Share Repurchase Activity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Equity [Abstract]
Total number of shares repurchased	0	176,500	0	285,700	176,500
Average price paid per share (in dollars per share)		$ 31.51		$ 36.53	$ 31.51
Total value of common stock repurchased		$ 5.6		$ 10.4	$ 5.6

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Stock Repurchase Program - Summary of Remaining Authorized Repurchase Amounts (Details) - USD ($)	Jun. 30, 2023	Feb. 14, 2023	May 31, 2022
Equity [Abstract]
Total authorized repurchase amount	$ 120,000,000.0	$ 60,000,000	$ 60,000,000
Total value of shares repurchased	59,800,000
Total remaining authorized repurchase amount	$ 60,200,000

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Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021
Share-Based Payment Arrangement
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 0.6	$ 0.6	$ 0.4	$ 0.4
Grants in period (in shares)			18,660	14,635
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	1.4	1.5	$ 2.5	$ 2.8
Grants in period (in shares)			126,931
Unrecognized compensation expense related to unvested options	8.2		$ 8.2
Weighted average remaining recognition period of unrecognized stock-based compensation costs			2 years
Restricted Stock Units | Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grants in period (in shares)			126,931	1,057
Vesting period			3 years	1 year
Restricted Stock Units | Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grants in period (in shares)				135,054
Vesting period				3 years
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1.2	$ 0.7	$ 2.3	$ 1.2
Grants in period (in shares)			126,921
Weighted average remaining recognition period of unrecognized stock-based compensation costs			1 year 10 months 24 days
Maximum number of shares of common stock available for awards (in shares)	253,842	258,114	253,842	258,114	97,096
Maximum number of payout shares of common stock available for awards (in shares)	130,729	197,457	130,729	197,457	97,096
Unrecognized stock-based compensation expenses	$ 7.8		$ 7.8
Performance Shares | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based payment arrangement, additional future stock-based compensation expense	$ 4.3	$ 1.9	$ 4.3	$ 1.9
Performance Shares | Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grants in period (in shares)			126,921	132,304
Share-based compensation arrangement by share based payment award performance period			3 years

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Stock-Based Compensation - Restricted and Performance Stock Units Rollforward (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
Restricted Stock Units
Shares
Nonvested as of December 31, 2022 | shares	338,448
Granted (in shares) | shares	126,931
Vested (in shares) | shares	(8,426)
Nonvested as of June 30, 2023 | shares	456,953
Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022 | $ / shares	$ 33.28
Granted (in dollars per share) | $ / shares	34.57
Vested (in dollars per share) | $ / shares	35.95
Nonvested as of June 30, 2023 | $ / shares	$ 33.62
Performance Shares
Shares
Nonvested as of December 31, 2022 | shares	177,605
Granted (in shares) | shares	126,921
Nonvested as of June 30, 2023 | shares	304,526
Weighted Average Grant-Date Fair Value
Nonvested as of December 31, 2022 | $ / shares	$ 31.94
Granted (in dollars per share) | $ / shares	34.57
Nonvested as of June 30, 2023 | $ / shares	$ 33.04

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Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1.4	$ 1.5	$ 2.5	$ 2.8
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1.2	$ 0.7	$ 2.3	$ 1.2

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Net Income per Common Share - Basic and Diluted Net Income per Common Share and Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to SP Plus Corporation	$ 12.3	$ 15.4	$ 20.7	$ 26.1
Basic weighted average common shares outstanding	19,631,772	21,195,819	19,666,684	21,211,299
Dilutive impact of share-based awards	208,181	160,645	187,216	136,143
Diluted weighted average common shares outstanding	19,839,953	21,356,464	19,853,900	21,347,442
Net income per common share
Basic	$ 0.63	$ 0.73	$ 1.05	$ 1.23
Diluted	$ 0.62	$ 0.72	$ 1.04	$ 1.22

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Net Income per Common Share - Narrative (Details)	6 Months Ended
	Jun. 30, 2023 shares
Earnings Per Share [Abstract]
Potential shares of common stock attributable to stock options excluded from net income per common share calculation (in shares)	0

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Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) and Income Tax Benefit Allocated (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (Loss) before tax amount	$ 0.5	$ (0.1)	$ 0.7	$ 0.6
Other comprehensive income (Loss) tax amount				0.2
Other comprehensive income (Loss) net of tax amount	0.5	(0.1)	0.7	0.4
Translation Adjustments
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (Loss) before tax amount	0.5	(0.2)	0.7	(0.1)
Other comprehensive income (Loss) net of tax amount	$ 0.5	(0.2)	$ 0.7	(0.1)
De-designation of interest rate collars
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (Loss) before tax amount		0.1		0.7
Other comprehensive income (Loss) tax amount				0.2
Other comprehensive income (Loss) net of tax amount		$ 0.1		$ 0.5

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Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax
Beginning Balance	$ 226.0
Ending Balance	241.2
Foreign Currency Translation Adjustments
AOCI Attributable to Parent, Net of Tax
Beginning Balance	(1.8)	$ (2.3)
Other comprehensive income (loss) before reclassification	0.7	(0.1)
Ending Balance	(1.1)	(2.4)
Interest Rate Collars
AOCI Attributable to Parent, Net of Tax
Beginning Balance		(0.5)
Amounts reclassified from accumulated other comprehensive loss		0.5
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax
Beginning Balance	(1.8)	(2.8)
Other comprehensive income (loss) before reclassification	0.7	(0.1)
Amounts reclassified from accumulated other comprehensive loss		0.5
Ending Balance	$ (1.1)	$ (2.4)

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Comprehensive Income (Loss) - Reclassifications from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Net realized loss	$ (7.2)	$ (3.4)	$ (13.9)	$ (8.0)
Reclassifications from Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassifications before tax		0.1		0.7
Income tax benefit				0.2
Reclassifications, net of tax		0.1		0.5
Reclassifications from Accumulated Other Comprehensive Loss | Interest Rate Collars: Net Realized Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Net realized loss		$ 0.1		$ 0.7

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Segment Information - Schedule of Segment Information by Regions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Services revenue
Services revenue	$ 442.2	$ 381.0	$ 867.5	$ 730.8
Total operating income (loss)	25.3	25.6	44.6	45.7
General and administrative expenses
General and administrative expenses	31.8	26.7	62.4	51.2
Depreciation and amortization
Depreciation and amortization	8.8	6.5	17.2	13.3
Operating Segments | Commercial
Services revenue
Services revenue	147.6	132.9	292.0	264.1
Total operating income (loss)	36.1	34.7	67.3	63.3
General and administrative expenses
General and administrative expenses	9.3	7.8	17.5	13.9
Depreciation and amortization
Depreciation and amortization	3.8	2.8	7.4	5.8
Operating Segments | Aviation
Services revenue
Services revenue	73.7	63.6	145.6	116.8
Total operating income (loss)	9.6	8.5	18.2	16.6
General and administrative expenses
General and administrative expenses	4.0	2.9	7.9	5.6
Depreciation and amortization
Depreciation and amortization	3.1	2.1	5.9	5.0
Segment Reconciling Items
Services revenue
Total operating income (loss)	(20.4)	(17.6)	(40.9)	(34.2)
General and administrative expenses
General and administrative expenses	18.5	16.0	37.0	31.7
Depreciation and amortization
Depreciation and amortization	1.9	1.6	3.9	2.5
Lease Type Contracts
Services revenue
Services revenue	76.3	70.6	144.5	133.2
Lease Type Contracts | Operating Segments | Commercial
Services revenue
Services revenue	72.4	67.1	137.0	126.3
Lease Type Contracts | Operating Segments | Aviation
Services revenue
Services revenue	3.9	3.5	7.5	6.9
Management Type Contracts
Services revenue
Services revenue	145.0	125.9	293.1	247.7
Management Type Contracts | Operating Segments | Commercial
Services revenue
Services revenue	75.2	65.8	155.0	137.8
Management Type Contracts | Operating Segments | Aviation
Services revenue
Services revenue	69.8	60.1	138.1	109.9
Reimbursed Management Type Contract Revenue
Services revenue
Services revenue	$ 220.9	$ 184.5	$ 429.9	$ 349.9

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Segment Information - Schedule of Segment Information by Regions (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Commercial
Segment Reporting Information [Line Items]
Depreciation and amortization expenses related to cost of services	$ 2.2	$ 1.6	$ 4.1	$ 3.4
Aviation
Segment Reporting Information [Line Items]
Depreciation and amortization expenses related to cost of services	$ 1.5	$ 1.1	$ 2.8	$ 2.2

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Subsequent Events - Narrative (Details) - Subsequent Event [Member] - Rockers Inc [Member] $ in Millions	Jul. 25, 2023 USD ($)
Subsequent Event [Line Items]
Business acquisition, date of acquisition agreement	Jul. 25, 2023
Business combination, acquired cash	$ 3.1