Unaudited Quarterly Results

The following table sets forth the Company's unaudited quarterly consolidated statement of income data for the years ended December 31, 2017 and December 31, 2016. The unaudited quarterly information has been prepared on the same basis as the annual financial information and, in management's opinion, includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the information for the quarters presented. Historically, the Company's operating results have varied from quarter to quarter and are expected to continue to fluctuate in the future. These fluctuations have been due to a number of factors, including: general economic conditions in its markets; acquisitions; additions of contracts; expiration and termination of contracts; conversion of lease contracts to management contracts; conversion of management contracts to lease contracts and changes in terms of contracts that are retained and timing of general and administrative expenditures.

The operating results for any historical quarter are not necessarily indicative of results for any future period.



	2017												2016
(millions, except for share and per share data)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter
	(Unaudited)												(Unaudited)
Parking services revenue
Lease contracts (2)	$	130.8		$	150.9		$	140.9		$	140.5		$	138.5		$	135.7		$	136.1		$	134.7
Management contracts	92.1			84.0			86.7			85.4			91.2			86.7			84.1			84.8
Reimbursed management contract revenue (1)	179.0			168.6			165.1			166.5			156.7			168.1			177.0			174.8
Total revenue	401.9			403.5			392.7			392.4			386.4			390.5			397.2			394.3
Cost of parking services
Lease contracts	125.8			130.2			131.0			131.4			130.6			124.0			125.8			125.2
Management contracts	56.6			47.2			50.7			53.1			60.7			51.4			50.5			47.2
Reimbursed management contract expense (1)	179.0			168.6			165.1			166.5			156.7			168.1			177.0			174.8
Total cost of parking services	361.4			346.0			346.8			351.0			348.0			343.5			353.3			347.2
Gross profit
Lease contracts (2)	5.0			20.7			9.9			9.1			7.9			11.7			10.3			9.5
Management contracts	35.5			36.8			36.0			32.3			30.5			35.3			33.6			37.6
Total gross profit	40.5			57.5			45.9			41.4			38.4			47.0			43.9			47.1
General and administrative expenses	21.2			22.5			19.6			19.6			24.6			22.1			20.3			23.0
Depreciation and amortization	6.6			4.8			4.9			4.7			9.2			9.8			7.8			6.9
Operating income	12.7			30.2			21.4			17.1			4.6			15.1			15.8			17.2
Other expense (income)
Interest expense	2.6			2.3			2.2			2.1			2.8			2.6			2.7			2.4
Interest income	(0.1		)	(0.2		)	(0.2		)	(0.1		)	(0.2		)	(0.1		)	(0.1		)	(0.1		)
Gain on sale of a business	—			(0.1		)	—			—			—			—			—			—
Equity in losses (income) from investment in unconsolidated entity	0.2			0.2			0.1			0.2			0.5			0.3			0.4			(0.3		)
Total other expenses (income)	2.7			2.2			2.1			2.2			3.1			2.8			3.0			2.0
Earnings before income taxes	10.0			28.0			19.3			14.9			1.5			12.3			12.8			15.2
Income tax expense	3.3			10.7			7.3			6.4			0.9			4.9			5.1			4.9
Net income	6.7			17.3			12.0			8.5			0.6			7.4			7.7			10.3
Less: Net income attributable to noncontrolling interest	0.7			1.1			0.8			0.7			0.6			0.9			0.7			0.7
Net income attributable to SP Plus Corporation	$	6.0		$	16.2		$	11.2		$	7.8		$	—		$	6.5		$	7.0		$	9.6
Common stock data
Net income per share (3)
Basic	$	0.27		$	0.73		$	0.51		$	0.35		$	—		$	0.29		$	0.31		$	0.44
Diluted	$	0.27		$	0.72		$	0.50		$	0.35		$	—		$	0.29		$	0.31		$	0.43
Weighted average shares outstanding
Basic	22,148,265			22,190,421			22,203,023			22,221,536			22,328,578			22,344,898			22,208,139			22,071,865
Diluted	22,447,904			22,515,234			22,523,036			22,528,825			22,593,505			22,625,471			22,497,111			22,398,045

(1) The Company corrected reimbursed management contract revenue and reimbursed management contract expense for the previous periods presented. For 2017, the correction resulted in the following: (i) a reduction of reimbursed management contract revenue of $12.6 million and $11.9 million for the quarters ended March 31, and June 30, respectively, and (ii) a reduction of reimbursed management contract expense of $12.6 million and $11.9 million for the quarters ended March 31, and June 30, respectively. For 2016, the correction resulted in the following: (i) a reduction of reimbursed management contract revenue of $11.2 million, $12.1 million, $11.9 million and $11.9 million for the quarters ended March 31, June 30, September 30 and December 31, respectively, and (ii) a reduction of reimbursed management contract expense of $11.2 million, $12.1 million, $11.9 million and $11.9 million for the quarters ended March 31, June 30, September 30 and December 31, respectively. See Note 1. Significant Accounting Policies and Practices for additional information.

(2) Revenue and Gross profit in the second quarter of 2017 includes earnings of $8.5 million for our proportionate share of the net gain of an equity method investee's sale of assets.

(3) Basic and diluted earnings per share are computed independently for each of the quarters presented. As a result, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share.