000-50796 | 16-1171179 |
(Commission File Number) | (IRS Employer Identification No.) |
(b) | Pro Formal Financial Information. |
(c) | Exhibits. |
23.1 | ||
99.1 | ||
99.2 | ||
99.3 |
SP PLUS CORPORATION (Registrant) | |
Date: February 14, 2019 | By: /s/ VANCE C. JOHNSTON |
Vance C. Johnston Executive Vice President, Chief Financial Officer and Treasurer |
TABLE OF CONTENTS | ||||
Page No. | ||||
COMBINED FINANCIAL STATEMENTS | ||||
Combined Balance Sheet | 1 | |||
Combined Statement of Income | 3 | |||
Combined Statement of Changes in Equity | 4 | |||
Combined Statement of Cash Flows | 5 | |||
Notes to Combined Financial Statements | 7 | |||
BAGS INVESTMENT GROUP | ||||||
COMBINED BALANCE SHEET | ||||||
SEPTEMBER 30, 2018 AND DECEMBER 31, 2017 | ||||||
ASSETS | ||||||
September 30, | ||||||
2018 | December 31, | |||||
(unaudited) | 2017 | |||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ 6,449,832 | $ 5,119,936 | ||||
Accounts receivable, net | 15,318,176 | 15,181,230 | ||||
Inventories | 1,334,340 | 1,201,562 | ||||
Prepaid expenses | 1,170,574 | 2,085,387 | ||||
TOTAL CURRENT ASSETS | 24,272,922 | 23,588,115 | ||||
OTHER ASSETS: | ||||||
Property and equipment, net | 1,552,116 | 2,537,299 | ||||
Goodwill | 3,434,394 | 3,434,394 | ||||
Other intangible assets, net | 187,916 | 371,666 | ||||
Deposits | 197,065 | 185,844 | ||||
TOTAL OTHER ASSETS | 5,371,491 | 6,529,203 | ||||
$ 29,644,413 | $ 30,117,318 |
BAGS INVESTMENT GROUP | |||||||
COMBINED BALANCE SHEET | |||||||
SEPTEMBER 30, 2018 AND DECEMBER 31, 2017 | |||||||
LIABILITIES & OWNER'S EQUITY | |||||||
September 30, | |||||||
2018 | December 31, | ||||||
(unaudited) | 2017 | ||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | $ 8,221,731 | $ 6,799,898 | |||||
Deposits payable | 3,316,381 | 2,185,895 | |||||
Payroll payable | — | 1,415,144 | |||||
Line of credit | — | 2,000,000 | |||||
Current portion of long-term debt | 2,789,030 | 2,619,085 | |||||
Current portion of capital lease obligations | 5,584 | 289,045 | |||||
Deferred revenue | 200,487 | 708,037 | |||||
TOTAL CURRENT LIABILITIES | 14,533,213 | 16,017,104 | |||||
OTHER LIABILITIES: | |||||||
Long-term debt, less current portion, net | 6,153,119 | 5,302,210 | |||||
Capital lease obligations, less current portion | 2,474 | 46,463 | |||||
Deferred rent | 65,059 | 113,638 | |||||
Deposits payable | 12,150 | 8,275 | |||||
TOTAL OTHER LIABILITIES | 6,232,802 | 5,470,586 | |||||
TOTAL LIABILITIES | 20,766,015 | 21,487,690 | |||||
OWNER'S EQUITY: | |||||||
Common stock | 11,260 | 11,260 | |||||
Additional paid-in capital | 6,024,847 | 6,024,847 | |||||
Retained earnings | 1,811,180 | 1,563,012 | |||||
TOTAL OWNER'S EQUITY | 7,847,287 | 7,599,119 | |||||
Non-controlling interest | 1,031,111 | 1,030,509 | |||||
$ 29,644,413 | $ 30,117,318 |
BAGS INVESTMENT GROUP | ||||||
COMBINED STATEMENT OF INCOME | ||||||
NINE MONTHS ENDED | ||||||
SEPTEMBER 30, 2018 AND 2017 | ||||||
September 30, | September 30, | |||||
2018 | 2017 | |||||
(unaudited) | (unaudited) | |||||
Revenues | $123,774,847 | $108,470,618 | ||||
Operating expenses | 94,364,822 | 80,336,276 | ||||
Gross profit | 29,410,025 | 28,134,342 | ||||
Selling, general and administrative | 13,352,481 | 13,555,144 | ||||
Depreciation and amortization | 1,001,940 | 1,527,487 | ||||
Net income from operations | 15,055,604 | 13,051,711 | ||||
Interest expense, net | 360,301 | 293,799 | ||||
Net income before non-controlling interest | 14,695,303 | 12,757,912 | ||||
Net income attributable to non-controlling interest | 286,916 | 237,350 | ||||
Net income | $ 14,408,387 | $ 12,520,562 | ||||
BAGS INVESTMENT GROUP | ||||||||||||||
COMBINED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||
NINE MONTHS ENDED | ||||||||||||||
SEPTEMBER 30, 2018 | ||||||||||||||
Additional | ||||||||||||||
Common | Paid-In | Retained | Non-controlling | |||||||||||
Stock | Capital | Earnings | Total | Interest | Total | |||||||||
BALANCE, DECEMBER 31, 2017 | $11,260 | $ 6,024,847 | $ 1,563,012 | $ 7,599,119 | $ 1,030,509 | $ 8,629,628 | ||||||||
Net income | — | — | 14,408,387 | 14,408,387 | 286,916 | 14,695,303 | ||||||||
Distributions | — | — | (14,160,219) | (14,160,219) | (286,314) | (14,446,533) | ||||||||
BALANCE, SEPTEMBER 30, 2018 | $11,260 | $ 6,024,847 | $ 1,811,180 | $ 7,847,287 | $ 1,031,111 | $ 8,878,398 | ||||||||
BAGS INVESTMENT GROUP | |||||
COMBINED STATEMENT OF CASH FLOWS | |||||
NINE MONTHS ENDED | |||||
SEPTEMBER 30, 2018 AND 2017 | |||||
September 30, | September 30, | ||||
2018 | 2017 | ||||
(unaudited) | (unaudited) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net income | $ 14,408,387 | $ 12,520,562 | |||
Net income attributable to non-controlling interest | 286,916 | 237,350 | |||
Adjustments to reconcile net income to net cash | |||||
from operating activities: | |||||
Depreciation and amortization | 1,001,940 | 1,527,487 | |||
Loan cost amortization | 36,788 | 3,892 | |||
Deferred revenue and rent amortization | (756,616) | (102,684) | |||
Gain on disposal of property and equipment | (4,334) | (31,661) | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (136,939 | ) | 1,224,432 | ||
Inventories | (132,779) | 28,665 | |||
Prepaid expenses | 914,813 | (611,146) | |||
Accounts payable and accrued expenses | 1,421,825 | (1,547,814 | ) | ||
Deposits | 1,123,140 | 349,940 | |||
Payroll payable | (1,415,144) | (771,923) | |||
Deferred revenue | 200,487 | 200,487 | |||
Net cash from operating activities | 16,948,484 | 13,027,587 | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Acquisition of property and equipment | (190,138) | (749,462) | |||
Disposal of property and equipment | 13,250 | 171,271 | |||
Investments | — | 35,992 | |||
Note Receivable | — | (1,419,973) | |||
Net cash from investing activities | (176,888) | (1,962,172) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Debt proceeds | 3,353,724 | 2,000,000 | |||
Borrowings/(Repayments) on line of credit | (2,000,000) | (2,000,000) | |||
Repayments of debt | (2,185,224) | (2,533,616) | |||
Debt issuance costs | (184,432) | — | |||
Repayments of capital lease obligations | (327,450) | (143,259) | |||
Distributions to non-controlling interest | (286,314) | (249,491) | |||
Distributions to owner | (13,812,004) | (10,472,992) | |||
Net cash from financing activities | (15,441,700) | (13,399,358) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,329,896 | (2,333,943) | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 5,119,936 | 7,087,034 | |||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 6,449,832 | $ 4,753,091 |
BAGS INVESTMENT GROUP | |||
COMBINED STATEMENT OF CASH FLOWS | |||
NINE MONTHS ENDED | |||
SEPTEMBER 30, 2018 AND 2017 | |||
September 30, | September 30, | ||
2018 | 2017 | ||
(unaudited) | (unaudited) | ||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
INTEREST PAID | $ 360,301 | $ 293,799 | |
NON-CASH OWNER DISTRIBUTIONS | |||
Vehicles | $ 348,215 | 0 |
Computer equipment | 2 - 3 years | |||
Furniture and equipment | 3 - 7 years | |||
Vehicles | 3 - 7 years | |||
Software | 2 - 5 years |
September 30, 2018 | December 31, 2017 | |||||||
Computer equipment | $ | 1,231,641 | $ | 1,231,052 | ||||
Furniture and equipment | 1,441,037 | 1,310,783 | ||||||
Vehicles | 4,013,841 | 4,700,156 | ||||||
Software | 1,759,226 | 1,741,734 | ||||||
8,445,745 | 8,983,725 | |||||||
Accumulated depreciation | (6,893,629 | ) | (6,446,426 | ) | ||||
$ | 1,552,116 | $ | 2,537,299 |
Year | Cost | Accumulated Amortization | Net | |||||||||||
Covenants not to compete | 2012 | $ | 630,000 | $ | (592,084 | ) | $ | 37,916 | ||||||
Luggage delivery contract | 2015 | 720,000 | (570,000 | ) | 150,000 | |||||||||
Totals | $ | 1,350,000 | $ | (1,162,084 | ) | $ | 187,916 |
Year | Cost | Accumulated Amortization | Net | |||||||||||
Covenants not to compete | 2012 | $ | 630,000 | $ | (543,334 | ) | $ | 86,666 | ||||||
Luggage delivery contract | 2015 | 720,000 | (435,000 | ) | 285,000 | |||||||||
Totals | $ | 1,350,000 | $ | (978,334 | ) | $ | 371,666 |
September 30, 2018 | December 31, 2018 | ||||||||
Note payable, original amount of $1,207,500, payable in 60 monthly installments of $22,133 at 3.75% interest, maturing May 2018. | $ | — | $ | 109,482 |
Note payable, original amount of $1,970,000, refinanced on January 28, 2016, payable in 52 monthly installments of $33,237 at 4.00% interest, maturing May 2020. | 639,829 | 914,842 | |||||
Note payable, original amount of $877,756, payable in 60 monthly installments of $16,089 at 3.75% interest, maturing June 2020. | 332,333 | 465,347 | |||||
Note payable, original amount of $4,000,000, payable in 48 monthly installments of $90,415 at 4.00% interest, maturing December 2020. | 2,070,252 | 2,808,502 | |||||
Note payable, original amount of $1,500,000, payable in 60 monthly installments of $27,663 at 4.00% interest, maturing December 2020. | 712,667 | 936,252 | |||||
Note payable, original amount of $2,000,000, payable in 48 monthly installments of $45,211 at 4.25% interest, maturing June 2021. | 1,357,622 | 1,769,870 | |||||
Note payable, original amount of $917,000, payable in 48 monthly installments of $21,042 at 4.75% interest, maturing December 2021. | 775,508 | 917,000 | |||||
Note payable, original amount of $994,975, payable in 60 monthly installments of $18,693 at 4.75% interest, maturing January 2023. | 875,655 | — | |||||
Note payable, original amount of $986,000, payable in 84 monthly installments of $7,836 and a balloon payment of $625,000 at 5.00% interest, maturing July 2025. | 978,965 | — |
Note payable, original amount of $561,000, payable in 84 monthly installments of $3,805 and a balloon payment of $431,000 at 5.25% interest, maturing July 2025. | 556,833 | — | |||||||
Note payable, original amount of $811,750 payable in 180 monthly installments of $6,342 at 4.75% interest, maturing July 2025. | 790,131 | — | |||||||
9,089,795 | 7,921,295 | ||||||||
Less unamortized debt issuance costs | (147,646 | ) | — | ||||||
Less current portion | (2,789,030 | ) | (2,619,085 | ) | |||||
Long-term debt, less current portion | $ | 6,153,119 | $ | 5,302,210 | |||||
Authorized | Issued and Outstanding | Par | ||||||||||
ZWB | 10,000 | 1,000 | $0.01 | |||||||||
RLC | 50,000 | 15,000 | $1.00 |
2018 | $ | 2,755,408 | |||||
2019 | 2,158,955 | ||||||
2020 | 851,322 | ||||||
2021 | 615,716 | ||||||
2022 | 12,750 | ||||||
$ | 6,394,151 |
12. | CONTINGENCIES: |
TABLE OF CONTENTS | ||||
Page No. | ||||
INDEPENDENT ACCOUNTANTS' AUDIT REPORT | 1 | |||
COMBINED FINANCIAL STATEMENTS | ||||
Combined Balance Sheet | 2 | |||
Combined Statement of Income | 4 | |||
Combined Statement of Changes in Equity | 5 | |||
Combined Statement of Cash Flows | 6 | |||
Notes to Combined Financial Statements | 8 | |||
BAGS INVESTMENT GROUP | |||||||
COMBINED BALANCE SHEET | |||||||
AS OF DECEMBER 31, 2017 | |||||||
RESTATED | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 5,119,936 | |||||
Accounts receivable, net | 15,181,230 | ||||||
Inventories | 1,201,562 | ||||||
Prepaid expenses | 2,085,387 | ||||||
TOTAL CURRENT ASSETS | 23,588,115 | ||||||
OTHER ASSETS: | |||||||
Property and equipment, net | 2,537,299 | ||||||
Goodwill | 3,434,394 | ||||||
Other intangible assets, net | 371,666 | ||||||
Deposits | 185,844 | ||||||
TOTAL OTHER ASSETS | 6,529,203 | ||||||
$ | 30,117,318 | ||||||
BAGS INVESTMENT GROUP | |||||||
COMBINED BALANCE SHEET | |||||||
AS OF DECEMBER 31, 2017 | |||||||
RESTATED | |||||||
LIABILITIES & OWNER'S EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable and accrued expenses | $ | 6,799,898 | |||||
Deposits payable | 2,185,895 | ||||||
Payroll payable | 1,415,144 | ||||||
Line of credit | 2,000,000 | ||||||
Current portion of long-term debt | 2,619,085 | ||||||
Current portion of capital lease obligations | 289,045 | ||||||
Deferred revenue | 708,037 | ||||||
TOTAL CURRENT LIABILITIES | 16,017,104 | ||||||
OTHER LIABILITIES: | |||||||
Long-term debt, less current portion | 5,302,210 | ||||||
Capital lease obligations, less current portion | 46,463 | ||||||
Deferred rent | 113,638 | ||||||
Deposits payable | 8,275 | ||||||
TOTAL OTHER LIABILITIES | 5,470,586 | ||||||
TOTAL LIABILITIES | 21,487,690 | ||||||
OWNER'S EQUITY: | |||||||
Common stock | 11,260 | ||||||
Additional paid-in capital | 6,024,847 | ||||||
Retained earnings | 1,563,012 | ||||||
TOTAL OWNER'S EQUITY | 7,599,119 | ||||||
Non-controlling interest | 1,030,509 | ||||||
$ | 30,117,318 |
BAGS INVESTMENT GROUP | ||||||
COMBINED STATEMENT OF INCOME | ||||||
FOR THE YEAR ENDED | ||||||
DECEMBER 31, 2017 | ||||||
RESTATED | ||||||
Revenues | $ | 144,623,883 | ||||
Operating expenses | 106,628,372 | |||||
Gross profit | 37,995,511 | |||||
Selling, general and administrative | 18,291,885 | |||||
Depreciation and amortization | 1,912,282 | |||||
Net income from operations | 17,791,344 | |||||
Interest expense, net | 371,600 | |||||
Net income before non-controlling interest | 17,419,744 | |||||
Net income attributable to non-controlling interest | 307,794 | |||||
Net income | $ | 17,111,950 | ||||
BAGS INVESTMENT GROUP | |||||||||||||||
COMBINED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||
FOR THE YEAR ENDED | |||||||||||||||
DECEMBER 31, 2017 | |||||||||||||||
RESTATED | |||||||||||||||
Common | Paid-In | Retained | Non-controlling | ||||||||||||
Stock | Capital | Earnings | Total | Interest | Total | ||||||||||
BALANCE, DECEMBER 31, 2016 | $ 7,510 | $ 5,781,268 | $ 1,422,697 | $ 7,211,475 | $ 1,945,382 | $ 9,156,857 | |||||||||
Net income | — | — | 17,111,950 | 17,111,950 | 307,794 | 17,419,744 | |||||||||
Distributions | — | — | (17,696,997) | (17,696,997) | (249,976) | (17,946,973) | |||||||||
Non-controlling interest | 3,750 | 243,579 | 725,362 | 972,691 | (972,691) | — | |||||||||
BALANCE, DECEMBER 31, 2017 | $ 11,260 | $ 6,024,847 | $ 1,563,012 | $ 7,599,119 | $ 1,030,509 | $ 8,629,628 |
BAGS INVESTMENT GROUP | |
COMBINED STATEMENT OF CASH FLOWS | |
FOR THE YEAR ENDED | |
DECEMBER 31, 2017 | |
RESTATED | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |
Net income | $ 17,111,950 |
Net income attributable to non-controlling interest | 307,794 |
Adjustments to reconcile net income to net cash | |
from operating activities: | |
Depreciation and amortization | 1,912,282 |
Deferred revenue and rent amortization | (80,784) |
(Gain) loss on disposal of property and equipment | (26,151) |
Changes in operating assets and liabilities: | |
Accounts receivable | (1,809,464) |
Inventories | (11,910) |
Prepaid expenses | (1,645,073) |
Accounts payable and accrued expenses | (976,877) |
Deposits | (35,089) |
Payroll payable | (1,099,202) |
Deferred revenue | 708,037 |
Net cash from operating activities | 14,355,513 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |
Acquisition of property and equipment | (1,045,128) |
Disposal of property and equipment | 173,849 |
Other | 60,408 |
Net cash from investing activities | (810,871) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |
Debt proceeds | 2,917,000 |
Repayments of debt | (3,472,724) |
Repayments of capital lease obligations | (201,618) |
Distributions to non-controlling interest | (249,976) |
Distributions to owner | (14,504,422) |
Net cash from financing activities | (15,511,740) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,967,098) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 7,087,034 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 5,119,936 |
BAGS INVESTMENT GROUP | |
COMBINED STATEMENT OF CASH FLOWS | |
FOR THE YEAR ENDED | |
December 31, 2017 | |
RESTATED | |
SUPPLEMENTAL CASH FLOW INFORMATION: | |
INTEREST PAID | $ 372,313 |
NON-CASH OWNER DISTRIBUTIONS | |
Investments | 389,973 |
Notes receivable | 401,950 |
Land & buildings | 979,711 |
Due from owner | 1,420,941 |
$ 3,192,575 |
Computer equipment | 2 - 3 years | |||
Furniture and equipment | 3 - 7 years | |||
Vehicles | 3 - 7 years | |||
Software | 2 - 5 years |
The following is a summary of the restatements for 2017: | ||||||
Increase in owner distributions | $ 3,152,044 | |||||
Increase in accrued workers compensations claims | (105,611) | |||||
Non-controlling interest | (307,794) | |||||
Total increase in 2017 net income | $ 2,738,639 | |||||
The effect on the Company’s previously issued 2017 financial statements is summarized as follows: | ||||||
Effects on Combined Balance Sheet accounts as of December 31, 2017 | ||||||
Previously | Increase | |||||
Reported | (Decrease) | Restated | ||||
Accounts payable and accrued expenses | $ 6,694,287 | $ 105,611 | $ 6,799,898 | |||
Retained earnings | $ 1,668,623 | $ (105,611) | $ 1,563,012 | |||
Effects on Combined Statement of Cash Flows for the Year Ended December 31, 2017 | ||||||
Previously | Increase | |||||
Reported | (Decrease) | Restated | ||||
Changes in accounts payable and accrued expenses | $ (1,082,488) | $ 105,611 | $ (976,877) | |||
Distributions to non-controlling interest | 0 | $ 249,976 | $ 249,976 | |||
Distributions to owner | $ 11,602,354 | $ 2,902,068 | $ 14,504,422 | |||
Effects on Combined Statement of Income for the Year Ended December 31, 2017 | ||||||
Previously | Increase | |||||
Reported | (Decrease) | Restated | ||||
Revenues | $ 144,623,883 | 0 | $ 144,623,883 | |||
Operating expenses | 106,522,761 | 105,611 | 106,628,372 | |||
Gross profit | 38,101,122 | (105,611) | 37,995,511 | |||
Selling, general and administrative | 21,443,929 | (3,152,044) | 18,291,885 | |||
Depreciation and amortization | 1,912,282 | 0 | 1,912,282 | |||
Net income from operations | 14,744,911 | 3,046,433 | 17,791,344 | |||
Interest expense, net | 371,600 | 0 | 371,600 | |||
Net income before non-controlling interest | 14,373,311 | 3,046,433 | 17,419,744 | |||
Net income attributable to non-controlling interest | 0 | 307,794 | 307,794 | |||
Net income | $ 14,373,311 | $ 2,738,639 | $ 17,111,950 |
Computer equipment | $ | 1,231,052 | ||||
Furniture and equipment | 1,310,783 | |||||
Vehicles | 4,700,156 | |||||
Software | 1,741,734 | |||||
8,983,725 | ||||||
Accumulated depreciation | (6,446,426 | ) | ||||
$ | 2,537,299 |
Year | Cost | Accumulated Amortization | Net | |||||||||||
Covenants not to compete | 2012 | $ | 630,000 | $ | (543,334 | ) | $ | 86,666 | ||||||
Luggage delivery contract | 2015 | 720,000 | (435,000 | ) | 285,000 | |||||||||
Totals | $ | 1,350,000 | $ | (978,334 | ) | $ | 371,666 |
Note payable, original amount of $1,207,500, payable in 60 monthly installments of $22,133 at 3.75% interest, maturing May 2018. | $ | 109,482 | ||
Note payable, original amount of $1,970,000, refinanced on January 28, 2016, payable in 52 monthly installments of $33,237 at 4.00% interest, maturing May 2020. | 914,842 | |||
Note payable, original amount of $877,756, payable in 60 monthly installments of $16,089 at 3.75% interest, maturing June 2020. | 465,347 | |||
Note payable, original amount of $4,000,000, payable in 48 monthly installments of $90,415 at 4.00% interest, maturing December 2020. | 2,808,502 | |||
Note payable, original amount of $1,500,000, payable in 60 monthly installments of $27,663 at 4.00% interest, maturing December 2020. | 936,252 | |||
Note payable, original amount of $2,000,000, payable in 48 monthly installments of $45,211 at 4.25% interest, maturing June 2021. | 1,769,870 | |||
Note payable, original amount of $917,000, payable in 48 monthly installments of $21,042 at 4.75% interest, maturing December 2021. | 917,000 | |||
7,921,295 | ||||
Less current portion | (2,619,085 | ) | ||
Long-term debt, less current portion | $ | 5,302,210 | ||
2018 | $ | 2,619,085 | ||||
2019 | 2,634,597 | |||||
2020 | 2,141,511 | |||||
2021 | 526,102 | |||||
Total | $ | 7,921,295 |
2018 | $ | 302,270 | ||||||
2019 | 47,255 | |||||||
Total minimum lease payments | 349,525 | |||||||
Amount representing interest | (14,017 | ) | ||||||
Present value of net minimum leases | 335,508 | |||||||
Current portion of capital lease obligations | (289,045 | ) | ||||||
Capital lease obligations, less current portion | $ | 46,463 |
Authorized | Issued and Outstanding | Par | ||||||||||
ZWB | 10,000 | 1,000 | $0.01 | |||||||||
RLC | 50,000 | 15,000 | $1.00 |
2018 | $ | 2,528,642 | |||||
2019 | 2,120,887 | ||||||
2020 | 1,580,321 | ||||||
2021 | 1,030,577 | ||||||
2022 | 360,046 | ||||||
$ | 7,620,473 |
13. | CONTINGENTCIES: |
Historical | |||||||||||||||||
(millions, except for share and per share data) | SP Plus Corporation | Bags Investment Group (Note 7) | Pro Forma Adjustments | Note | Pro Forma Combined | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 20.2 | $ | 6.4 | $ | — | $ | 26.6 | |||||||||
Notes and accounts receivable, net | 136.4 | 15.3 | — | 151.7 | |||||||||||||
Prepaid expenses and other | 13.1 | 2.5 | — | 15.6 | |||||||||||||
Total current assets | 169.7 | 24.2 | — | 193.9 | |||||||||||||
Leasehold improvements, equipment and construction in progress, net | 26.3 | 1.6 | — | 27.9 | |||||||||||||
Other assets | |||||||||||||||||
Advances and deposits | 4.2 | 0.2 | — | 4.4 | |||||||||||||
Other intangible assets, net | 50.1 | 0.2 | 117.8 | 5C | 168.1 | ||||||||||||
Favorable acquired lease contracts, net | 18.5 | — | — | 18.5 | |||||||||||||
Equity investments in unconsolidated entities | 9.9 | — | — | 9.9 | |||||||||||||
Other assets, net | 19.1 | — | — | 19.1 | |||||||||||||
Deferred taxes | 15.8 | — | — | 15.8 | |||||||||||||
Cost of contracts, net | 8.2 | — | — | 8.2 | |||||||||||||
Goodwill | 431.6 | 3.4 | 147.9 | 5B | 582.9 | ||||||||||||
Total other assets | 557.4 | 3.8 | 265.7 | 826.9 | |||||||||||||
Total assets | $ | 753.4 | $ | 29.6 | $ | 265.7 | $ | 1,048.7 | |||||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Accounts payable | $ | 93.5 | $ | 8.2 | $ | — | $ | 101.7 | |||||||||
Accrued rent | 22.8 | — | 22.8 | ||||||||||||||
Compensation and payroll withholdings | 22.4 | — | — | 22.4 | |||||||||||||
Property, payroll and other taxes | 10.0 | — | — | 10.0 | |||||||||||||
Accrued insurance | 18.0 | — | — | 18.0 | |||||||||||||
Accrued expenses | 30.4 | 3.5 | — | 33.9 | |||||||||||||
Current portion of obligations under Credit Facility and other long-term borrowings | 20.9 | 2.8 | (11.6 | ) | 5D | 12.1 | |||||||||||
Total current liabilities | 218.0 | 14.5 | (11.6 | ) | 220.9 | ||||||||||||
Long-term borrowings, excluding current portion | |||||||||||||||||
Obligations under Credit Facility | 85.8 | — | 295.4 | 5D | 381.2 | ||||||||||||
Other long-term borrowings | 1.1 | 6.2 | (6.2 | ) | 5D | 1.1 | |||||||||||
86.9 | 6.2 | 289.2 | 382.3 | ||||||||||||||
Unfavorable acquired lease contracts, net | 26.3 | — | — | 26.3 | |||||||||||||
Other long-term liabilities | 63.5 | 0.1 | (0.1 | ) | 5D | 63.5 | |||||||||||
Total noncurrent liabilities | 176.7 | 6.3 | 289.1 | 472.1 | |||||||||||||
Stockholders’ equity | |||||||||||||||||
Preferred stock | — | — | — | — | |||||||||||||
Common stock | — | — | — | — | |||||||||||||
Treasury stock | (7.5 | ) | — | (7.5 | ) | ||||||||||||
Additional paid-in capital | 256.7 | 6.0 | (6.0 | ) | 5E | 256.7 | |||||||||||
Accumulated other comprehensive loss | (1.6 | ) | — | — | (1.6 | ) | |||||||||||
Retained earnings | 111.1 | 1.8 | (4.8 | ) | 5E | 108.1 | |||||||||||
Total stockholders’ equity | 358.7 | 7.8 | (10.8 | ) | 355.7 | ||||||||||||
Noncontrolling interest | — | 1.0 | (1.0 | ) | 5E | — | |||||||||||
Total stockholders’ equity | 358.7 | 8.8 | (11.8 | ) | 355.7 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 753.4 | $ | 29.6 | $ | 265.7 | $ | 1,048.7 |
Historical | |||||||||||||||||
(millions, except for share and per share data) (unaudited) | SP Plus Corporation (Note 7) | Bags Investment Group (Note 7) | Pro Forma Adjustments | Note | Pro Forma Combined | ||||||||||||
Services revenue | 138.5 | ||||||||||||||||
Lease type contracts | $ | 311.6 | $ | — | $ | — | $ | 311.6 | |||||||||
Management type contracts | 264.8 | 123.8 | — | 388.6 | |||||||||||||
576.4 | 123.8 | — | 700.2 | ||||||||||||||
Reimbursed management type contract revenue | 514.8 | — | — | 514.8 | |||||||||||||
Total revenue services | 1,091.2 | 123.8 | — | 1,215.0 | |||||||||||||
Cost of services | |||||||||||||||||
Lease type contracts | 283.2 | — | — | 283.2 | |||||||||||||
Management type contracts | 157.6 | 94.4 | — | 252.0 | |||||||||||||
440.8 | 94.4 | — | 535.2 | ||||||||||||||
Reimbursed management type contract expense | 514.8 | — | — | 514.8 | |||||||||||||
Total cost of services | 955.6 | 94.4 | — | 1,050.0 | |||||||||||||
Gross profit | 94.4 | ||||||||||||||||
Lease type contracts | 28.4 | — | — | 28.4 | |||||||||||||
Management type contracts | 107.2 | 29.4 | — | 136.6 | |||||||||||||
Total gross profit | 135.6 | 29.4 | — | 165.0 | |||||||||||||
General and administrative expenses | 63.3 | 13.3 | (2.3 | ) | 6E | 74.3 | |||||||||||
Depreciation and amortization | 12.7 | 1.0 | 7.1 | 6A | 20.8 | ||||||||||||
Operating income | 59.6 | 15.1 | (4.8 | ) | 69.9 | ||||||||||||
Other expenses (income) | 15.1 | ||||||||||||||||
Interest expense | 6.5 | 0.4 | 5.8 | 6B | 12.7 | ||||||||||||
Interest income | (0.3 | ) | — | — | (0.3 | ) | |||||||||||
Gain on sale of a business | — | — | — | — | |||||||||||||
Equity in (earnings) losses from investment in unconsolidated entity | (10.1 | ) | — | — | (10.1 | ) | |||||||||||
Total other expenses (income) | (3.9 | ) | 0.4 | 5.8 | 2.3 | ||||||||||||
Earnings before income taxes | 63.5 | 14.7 | (10.6 | ) | 67.6 | ||||||||||||
Income tax expense | 16.9 | — | 1.1 | 6C | 18.0 | ||||||||||||
Net income | 46.6 | 14.7 | (11.7 | ) | 49.6 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 2.5 | 0.3 | (0.3 | ) | 6D | 2.5 | |||||||||||
Net income attributable to stockholders | $ | 44.1 | $ | 14.4 | $ | (11.4 | ) | $ | 47.1 | ||||||||
Common stock data | $ 14.4 | ||||||||||||||||
Net income per common share | |||||||||||||||||
Basic | $ | 1.97 | $ | 2.11 | |||||||||||||
Diluted | $ | 1.95 | $ | 2.08 | |||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 22,370,789 | 22,370,789 | |||||||||||||||
Diluted | 22,607,274 | 22,607,274 |
Historical | |||||||||||||||||
(millions, except for share and per share data) (unaudited) | SP Plus Corporation (Note 7) | Bags Investment Group (Note 7) | Pro Forma Adjustments | Note | Pro Forma Combined | ||||||||||||
Services revenue | 138.5 | ||||||||||||||||
Lease type contracts | $ | 563.1 | $ | — | $ | — | $ | 563.1 | |||||||||
Management type contracts | 348.2 | 144.6 | — | 492.8 | |||||||||||||
911.3 | 144.6 | — | 1,055.9 | ||||||||||||||
Reimbursed management type contract revenue | 679.2 | — | — | 679.2 | |||||||||||||
Total services revenue | 1,590.5 | 144.6 | — | 1,735.1 | |||||||||||||
Cost of services | |||||||||||||||||
Lease type contracts | 518.4 | — | 518.4 | ||||||||||||||
Management type contracts | 207.6 | 106.6 | — | 314.2 | |||||||||||||
726.0 | 106.6 | — | 832.6 | ||||||||||||||
Reimbursed management type contract expense | 679.2 | — | 679.2 | ||||||||||||||
Total cost of services | 1,405.2 | 106.6 | — | 1,511.8 | |||||||||||||
Gross profit | 94.4 | ||||||||||||||||
Lease type contracts | 44.7 | — | — | 44.7 | |||||||||||||
Management type contracts | 140.6 | 38.0 | — | 178.6 | |||||||||||||
Total gross profit | 185.3 | 38.0 | — | 223.3 | |||||||||||||
General and administrative expenses | 82.9 | 18.3 | — | 101.2 | |||||||||||||
Depreciation and amortization | 21.0 | 1.9 | 9.4 | 6A | 32.3 | ||||||||||||
Operating income | 81.4 | 17.8 | (9.4 | ) | 89.8 | ||||||||||||
Other expenses (income) | 15.1 | ||||||||||||||||
Interest expense | 9.2 | 0.4 | 7.7 | 6B | 17.3 | ||||||||||||
Interest income | (0.6 | ) | — | — | (0.6 | ) | |||||||||||
Gain on sale of a business | (0.1 | ) | — | — | (0.1 | ) | |||||||||||
Equity in losses (earnings) from investment in unconsolidated entity | 0.7 | — | — | 0.7 | |||||||||||||
Total other expenses (income) | 9.2 | 0.4 | 7.7 | 17.3 | |||||||||||||
Earnings before income taxes | 72.2 | 17.4 | (17.1 | ) | 72.5 | ||||||||||||
Income tax expense | 27.7 | — | 0.1 | 6C | 27.8 | ||||||||||||
Net income | 44.5 | 17.4 | (17.2 | ) | 44.7 | ||||||||||||
Less: Net income attributable to noncontrolling interest | 3.3 | 0.3 | (0.3 | ) | 6D | 3.3 | |||||||||||
Net income attributable to stockholders | $ | 41.2 | $ | 17.1 | $ | (16.9 | ) | $ | 41.4 | ||||||||
Common stock data | $ 14.4 | ||||||||||||||||
Net income per common share | |||||||||||||||||
Basic | $ | 1.86 | $ | 1.87 | |||||||||||||
Diluted | $ | 1.83 | $ | 1.84 | |||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | 22,195,350 | 22,195,350 | |||||||||||||||
Diluted | 22,508,288 | 22,508,288 |
(millions) | ||||
Cash | $ | 6.4 | ||
Notes and accounts receivable, net | 15.3 | |||
Prepaid expenses and other | 2.5 | |||
Advances and deposits | 0.2 | |||
Fixed assets | 1.6 | |||
Intangible assets | 118.0 | |||
Goodwill | 151.3 | |||
Accounts payable | (8.2 | ) | ||
Accrued expenses | (3.5 | ) | ||
Total purchase price | $ | 283.6 |
(millions) | ||||
Purchase Price of Acquisition | $ | 283.6 | ||
Cash | 6.4 | |||
Current assets | 18.0 | |||
Property and equipment | 1.6 | |||
Other intangibles | 118.0 | |||
Current liabilities | (11.7 | ) | ||
Pro forma goodwill | $ | 151.3 |
(millions) | Estimated Life (1) | Estimated Fair Value | |||
Trade names | 5.0 years | $ | 5.6 | ||
Customer relationships | 12.4 - 15.8 years | 100.4 | |||
Existing technology | 5.0 - 6.0 years | 10.4 | |||
Non-compete agreements | 5.0 years | 1.6 | |||
Estimated fair value of identified intangibles | $ | 118.0 |
(millions) | ||||
Short-term debt | ||||
Decrease for extinguishment of existing Bags Investment Group debt | $ | (2.8 | ) | |
Reclassification of short-term debt to long-term debt | (8.8 | ) | ||
Less: debt issuance and deferred financing | — | |||
Total adjustments to short-term debt | $ | (11.6 | ) | |
Long-term debt | ||||
Decrease for extinguishment of existing Bags Investment Group other long term borrowings | $ | (6.2 | ) | |
Proceeds under the Credit Agreement | 297.9 | |||
Less: debt issuance and deferred financing (1) | (2.5 | ) | ||
Total adjustments to long-term debt | $ | 289.2 |
(millions) | ||||
Elimination of Bags Investment Group historical common stock, paid-in capital and retained earnings | $ | (7.8 | ) | |
Elimination of Bags Investment Group historical noncontrolling interest | (1.0 | ) | ||
Transaction expenses (1) | (3.0 | ) | ||
Total adjustments to stockholders' equity | $ | (11.8 | ) |
(millions) | Nine Months Ended September 30, 2018 | Twelve Months Ended December 31, 2017 | ||||
Estimated amortization for acquired definite lived intangible assets | 7.3 | $ | 9.8 | |||
Historical Bags Investment Group definite-lived intangible amortization expense | (0.2 | ) | (0.4 | ) | ||
Total pro form adjustment to amortization expense of other intangibles | $ | 7.1 | $ | 9.4 |
(millions) | Nine Months Ended September 30, 2018 | Twelve Months Ended December 31, 2017 | ||||
Estimated additional pro forma interest expense | $ | 6.2 | $ | 8.1 | ||
Historical Bags Investment Group interest expense | (0.4 | ) | (0.4 | ) | ||
Total pro forma adjustment to interest expense | $ | 5.8 | $ | 7.7 |
(millions) | Nine Months Ended September 30, 2018 | Twelve Months Ended December 31, 2017 | ||||
Estimated income tax effect on both Bags Investment Group earnings before income taxes, as it had no tax provision as a limited liability corporation, and the net impact of the proforma adjustments | $ | 1.0 | $ | 0.1 |
(millions) | Nine Months Ended September 30, 2018 | Twelve Months Ended December 31, 2017 | ||||
Historical Bags Investment Group net income attributable to noncontrolling interest | $ | (0.3 | ) | $ | (0.3 | ) |
• | Transaction costs directly attributable to the transaction of $1.8 million incurred during the nine months ended September 30, 2018 by SP Plus for the Acquisition; and |
• | Transaction costs directly attributable to the transaction of $0.5 million incurred during the nine months ended September 30, 2018 by Bags Investment Group for the Acquisition. |
(millions) | Bags Investment Group | Reclassifications | Bags Investment Group after Reclassifications | ||||||
Inventories | $ | 1.3 | $ | (1.3 | ) | $ | — | ||
Prepaid expenses and other | 1.2 | 1.3 | 2.5 | ||||||
Deposits payable | 3.3 | (3.3 | ) | — | |||||
Deferred revenue | 0.2 | (0.2 | ) | — | |||||
Accrued expenses | — | 3.5 | 3.5 | ||||||
Current portion of long-term debt | 2.8 | (2.8 | ) | — | |||||
Current portion of obligations under Credit Facility and other long-term borrowings | — | 2.8 | 2.8 |
• | Historical Bags Investment Group "Revenues" have been classified as "Services revenue - Management type contracts" |
• | Historical Bags Investment Group "Operating expenses" have been classified as "Cost of services - Management type contracts" |