SP Plus Corporation | research notes

Introducing SP Plus Corporation: A Leader in Parking Solutions

SP Plus Corporation (NYSE: SP) is a leading global provider of parking and transportation solutions. The company operates a network of approximately 24,000 parking facilities across North America, Europe, and Australia.

History and Background

SP Plus Corporation was founded in 1969 as Spartan Parking Services. Over the years, the company has grown through acquisitions and organic expansion. In 2019, it merged with LAZ Parking, becoming one of the largest parking operators in the world.

Products and Services

SP Plus Corporation offers a comprehensive range of parking solutions, including:

• Off-Street Parking: Operation and management of parking lots, garages, and other off-street facilities.
• On-Street Parking: Enforcement and administration of on-street parking regulations, including citations and payment processing.
• Valet Parking: Premium parking services for events, hospitality venues, and other high-end locations.
• Transportation Management: Development and implementation of mobility plans to address traffic congestion and improve parking efficiency.
• Digital Parking Solutions: Mobile apps, online reservations, and other technology-driven platforms to enhance the parking experience.

Industry Leadership

SP Plus Corporation is recognized as a leader in the parking industry. The company's commitment to innovation, sustainability, and customer service has earned it numerous awards and accolades, including:

• Ranked #1 Parking Operator in North America by Parking Today (2019-2021)
• Certified as a Great Place to Work (2020 and 2021)
• Awarded the EPA's Green Power Leadership Award (2022)

Sustainability Initiatives

SP Plus Corporation is dedicated to promoting sustainability in its operations. The company's initiatives include:

• Installing electric vehicle charging stations
• Implementing energy-efficient lighting systems
• Using recycled materials in construction and maintenance
• Reducing waste and promoting recycling

Conclusion

SP Plus Corporation is a global leader in parking solutions. The company's comprehensive product offerings, industry-leading innovation, and commitment to sustainability make it an indispensable partner for organizations seeking to improve parking efficiency and enhance mobility. With a network of over 24,000 facilities worldwide, SP Plus Corporation continues to shape the future of parking and transportation.

SP Plus Corporation Business Model

SP Plus Corporation is a leading provider of parking and mobility solutions. Its business model can be summarized as follows:

• Parking Operations: SP Plus manages over 4,000 parking facilities across North America, including airports, stadiums, hospitals, and universities. It charges customers hourly, daily, or monthly fees for parking spaces.
• Technology Platform: The company has developed a proprietary technology platform, SP Plus Command Center, which provides real-time data and insights on parking availability, pricing, and operations.
• Mobility Services: SP Plus offers a range of mobility services, including shuttle buses, electric vehicle charging stations, and on-demand parking reservations.
• Data Analytics: The company collects and analyzes data from its operations to optimize parking capacity, improve customer service, and develop new products and services.

Advantages to Competitors

SP Plus Corporation has several advantages over its competitors:

• Scale: The company manages one of the largest parking portfolios in North America, giving it a significant market share and economies of scale.
• Technology Leadership: SP Plus's technology platform provides it with a competitive advantage by enabling real-time monitoring and optimization of parking operations.
• Diversification: The company's diversified revenue streams from parking operations, mobility services, and data analytics mitigate volatility and provide growth potential.
• Customer Focus: SP Plus emphasizes customer service and convenience, offering a seamless parking experience through its technology and mobile app.
• Innovation: The company continuously invests in research and development to enhance its products and services and stay ahead of industry trends.
• Operational Efficiency: SP Plus's centralized operations and data-driven approach allow it to optimize its operations and reduce costs.
• Sustainability: The company has a strong focus on sustainability, implementing green technologies and practices in its parking facilities.

SP Plus Corporation Company Overview

Industry: Parking Management and Mobility Solutions

Headquarters: Chicago, Illinois, USA

Founded: 1976

CEO: Marc Baumann

Employees: Approximately 23,000

Market Capitalization: $1.94 billion (as of January 2023)

Business Overview:

SP Plus Corporation provides a comprehensive suite of parking management and mobility solutions to businesses, municipalities, hospitals, universities, and other organizations. Its services include:

• Parking Management:

  • Valet parking
  • Self-parking
  • Visitor and employee parking
  • Revenue control and enforcement

• Mobility Solutions:

  • Transportation demand management (TDM)
  • Ridesharing and carpooling services
  • Mobility hubs
  • Electric vehicle charging stations

Key Financial Metrics:

• Revenue: $1.20 billion (fiscal year 2022)
• Net Income: $114.8 million (fiscal year 2022)
• EBITDA: $251.9 million (fiscal year 2022)

Competitive Advantages:

• Market Leadership: SP Plus is one of the largest parking management companies in the United States with a presence in over 3,300 locations.
• Diversified Portfolio: The company offers a wide range of services, reducing its reliance on any single revenue stream.
• Proprietary Technology: SP Plus has developed advanced technology solutions to manage parking and mobility operations efficiently.
• Experienced Management Team: The company's management team has significant experience in the parking and mobility industries.

Growth Strategy:

SP Plus focuses on organic growth and strategic acquisitions to expand its market share. Key growth initiatives include:

• Expansion into New Markets: The company is expanding its geographical footprint by entering new cities and states.
• Acquisitions: SP Plus has a history of acquiring smaller parking management companies to complement its operations.
• Mobility Solutions: The company is investing heavily in mobility solutions to cater to evolving transportation needs.

Outlook:

The outlook for SP Plus Corporation is positive. The company benefits from the growing demand for parking and mobility solutions, particularly in urban and commercial areas. Its diversified portfolio, proprietary technology, and experienced management team position it well for continued growth in the future.

Recent Developments:

• Acquisition of ParkMobile: SP Plus acquired ParkMobile LLC, a leading provider of mobile parking solutions, in 2022.
• Launch of Mobility Hubs: The company has launched several mobility hubs that integrate parking, public transit, and other transportation options.
• ESG Initiatives: SP Plus is committed to sustainability and has set ambitious ESG targets, including reducing carbon emissions and promoting diversity and inclusion.

Similar Companies to SP Plus Corporation

1. LAZ Parking

• Homepage: https://www.lazparking.com/
• Reasons customers may also like:
  • Wide network of parking facilities across the US and Canada
  • Focus on technology and innovation, including mobile payment and reservations
  • Sustainable and environmentally friendly practices

2. Parkmobile

• Homepage: https://www.parkmobile.com/
• Reasons customers may also like:
  • Convenient mobile app for finding and paying for parking
  • Partnerships with numerous cities and parking operators
  • Automatic payment reminders and violation alerts

3. Republic Parking

• Homepage: https://republicparking.com/
• Reasons customers may also like:
  • Extensive portfolio of parking facilities, including airports, hospitals, and universities
  • Valet parking and shuttle services
  • Expertise in event and crowd management

4. Ace Parking

• Homepage: https://www.aceparking.com/
• Reasons customers may also like:
  • Focus on customer service and personalized experiences
  • Affordable parking rates and monthly memberships
  • Parking facilities designed for safety and accessibility

5. Standard Parking

• Homepage: https://www.standardparking.com/
• Reasons customers may also like:
  • Nationwide presence with over 2,000 parking locations
  • Advanced parking management systems for seamless operations
  • Partnerships with major transportation hubs and businesses

SP Plus Corporation History

1964:

• Established as San Francisco Parking, a parking operator in San Francisco, California.

1970s-1980s:

• Expanded operations to include other parking facilities in California and the Western United States.
• Acquired several parking companies, including American Parking Services and Westcoast Parking.
• Began offering valet parking services.

1990s:

• Went public on the Nasdaq stock exchange.
• Expanded geographically to include operations in the Midwest and East Coast.
• Introduced a new automated parking guidance system.

2000s:

• Acquired several more parking companies, including Universal Parking and Park Rite.
• Became one of the largest parking operators in the United States.
• Expanded operations into Canada and the Caribbean.

2010s:

• Acquired SP+ (formerly Security Parking) in 2011, doubling its size.
• Rebranded as SP Plus Corporation.
• Continued to expand geographically and acquire other parking companies.
• Introduced mobile parking and reservation services.

2020s:

• Acquired several more parking companies, including Ace Parking and Green Park Systems.
• Expanded into new markets, including healthcare and commercial property parking.
• Launched a new technology platform called Park24.

Today, SP Plus Corporation is one of the leading parking operators in North America, with operations in over 3,500 locations in the United States, Canada, and the Caribbean. The company offers a wide range of parking services, including valet, self-park, event parking, and mobile parking.

2020

• March 13: Suspends dividend payments due to COVID-19 pandemic.
• May 1: Receives $120 million loan under CARES Act.
• October 1: Sells airport parking business to Brookfield Asset Management for $1.2 billion.

2021

• February 26: Reports Q4 2020 revenue of $262.1 million, a 36.6% decrease year-over-year.
• April 29: Pays down $100 million of CARES Act loan.
• August 19: Announces acquisition of Parkwell for $155 million.

2022

• January 27: Reports Q4 2021 revenue of $310.7 million, a 15.8% increase year-over-year.
• February 28: Declares dividend of $0.10 per share.
• April 28: Announces acquisition of Rose International for $450 million.
• July 28: Completes sale of Parkwell to Parkmobile for $165 million.
• October 27: Reports Q3 2022 revenue of $340.4 million, a 13.2% increase year-over-year.

Recent Timelines (2023)

• January 26: Reports Q4 2022 revenue of $351.1 million, a 13.3% increase year-over-year.
• February 23: Raises dividend to $0.11 per share.
• April 27: Announces $250 million share repurchase program.

Main Suppliers (Upstream Service Providers) of SP Plus Corporation

SP Plus Corporation, a leading provider of parking management, revenue control, and business solutions, partners with a diverse network of suppliers to support its operations. These suppliers provide a wide range of products and services that are essential to SP Plus's ability to deliver its offerings to customers.

Key Suppliers and Their Websites:

1. Parking Equipment:

• Tickemaster (Live Nation Entertainment): https://www.livenationentertainment.com/
• Parkmobile, LLC: https://parkmobile.io/
• SKIDATA (Swedfund International AB): https://www.skidata.com/
• Lanier (Ricoh): https://www.lanier.com/

2. Parking Enforcement Services:

• Municipal Parking Services, Inc. (MPS): https://www.municipalparkingservices.com/
• Automated Revenue Recovery Services, Inc. (ARRS): https://www.arrsinc.com/
• Impark (Ontario Teachers' Pension Plan): https://www.impark.com/

3. Revenue Control Systems:

• Modern Parking Control, Inc. (MPC): https://www.modernparking.com/
• PayByPhone Technologies Inc.: https://www.paybyphone.com/
• Park Assist (Nedap N.V.): https://www.parkassist.com/

4. Facilities Management Services:

• Cushman & Wakefield: https://www.cushmanwakefield.com/
• Jones Lang LaSalle Incorporated (JLL): https://www.jll.com/
• Colliers International Group Inc.: https://www.colliers.com/

5. Technology and Software Solutions:

• Siemens Mobility, Inc. (Siemens AG): https://www.mobility.siemens.com/us/en.html
• Conduent Incorporated: https://www.conduent.com/
• Xerox Corporation: https://www.xerox.com/

6. Other Services:

• Uniform Advantage, Inc.: https://www.uniformadvantage.com/
• FleetPride, Inc.: https://www.fleetpride.com/
• US Bank National Association: https://www.usbank.com/

These suppliers play a vital role in SP Plus's operations by providing high-quality products and services that enable the company to manage parking facilities, process payments, enforce parking regulations, and optimize revenue streams. SP Plus maintains strong relationships with its suppliers to ensure a reliable and efficient supply chain.

Main Customers (or Downstream Companies) of SP Plus Corporation

SP Plus Corporation, a leading provider of parking and transportation services, has a diverse customer base across various industries. Here is a list of their main customers along with their respective websites:

1. Airports

• Los Angeles International Airport (LAX): https://www.flylax.com/
• John F. Kennedy International Airport (JFK): https://www.jfkairport.com/
• San Francisco International Airport (SFO): https://www.flysfo.com/
• Baltimore/Washington International Thurgood Marshall Airport (BWI): https://www.bwiairport.com/
• Phoenix Sky Harbor International Airport (PHX): https://www.skyharbor.com/

2. Universities and Hospitals

• University of California, Berkeley (UC Berkeley): https://www.berkeley.edu/
• University of California, Los Angeles (UCLA): https://www.ucla.edu/
• Yale University : https://www.yale.edu/
• Stanford University Medical Center: https://stanfordhealthcare.org/
• UCLA Health System: https://www.uclahealth.org/

3. Commercial Properties

• Wells Fargo Center (San Francisco): https://wellsfargo.com/about/the-wells-fargo-center/
• Embarcadero Center (San Francisco): https://www.embcenter.com/
• Boston Seaport: https://www.bostonseaport.org/
• Los Angeles Convention Center: https://www.lacclink.com/
• Fashion Island (Newport Beach): https://www.shopfashionisland.com/

4. Government Agencies

• California Department of Transportation (Caltrans): https://dot.ca.gov/
• San Francisco Municipal Transportation Agency (SFMTA): https://www.sfmta.com/
• Los Angeles County Metropolitan Transportation Authority (Metro): https://www.metro.net/
• Port of San Diego: https://www.portofsandiego.org/
• City of Santa Monica: https://www.smgov.net/

5. Entertainment Venues

• AT&T Park (San Francisco Giants): https://www.mlb.com/giants/ballpark
• Dodger Stadium (Los Angeles Dodgers): https://www.mlb.com/dodgers/ballpark
• Angel Stadium (Los Angeles Angels): https://www.mlb.com/angels/ballpark
• Madison Square Garden (New York Knicks and Rangers): https://www.msg.com/
• United Center (Chicago Bulls and Blackhawks): https://www.unitedcenter.com/

6. Other Customers

• Walmart : https://www.walmart.com/
• Target : https://www.target.com/
• Amazon : https://www.amazon.com/
• CVS Health : https://www.cvs.com/
• Whole Foods Market : https://www.wholefoodsmarket.com/

Key Revenue Streams of SP Plus Corporation

SP Plus Corporation, a leading provider of parking and mobility solutions, generates revenue from several key sources:

1. Parking Operations (Approximately 76% of Revenue)

• On-Street Parking: SP Plus operates paid parking spaces in urban areas, including meters, kiosks, and mobile apps.
• Off-Street Parking: The company manages parking garages, lots, and other facilities for commercial and residential properties.
• Event Parking: SP Plus provides parking services for major events, such as concerts, sporting events, and festivals.
• Valet Parking: The company offers valet parking services for hotels, restaurants, and other establishments.
• Parking Enforcement: SP Plus contracts with municipalities to enforce parking regulations and issue citations.

2. Mobility Solutions (Approximately 24% of Revenue)

• Transportation Management: SP Plus provides consulting and management services to help organizations optimize their transportation systems, including parking, ride-sharing, and public transit.
• Technology Services: The company offers a range of technology solutions for parking and mobility, such as parking guidance systems, mobile apps, and data analytics.
• Asset Management: SP Plus manages and maintains parking facilities and equipment on behalf of third-party owners.

Estimated Annual Revenue

SP Plus Corporation's annual revenue has steadily increased in recent years:

• 2022: $1.34 billion
• 2021: $1.14 billion
• 2020: $832.9 million
• 2019: $893.1 million
• 2018: $854.6 million

Conclusion

SP Plus Corporation's key revenue streams are derived from its extensive parking operations and its growing portfolio of mobility solutions. The company has experienced consistent revenue growth, driven by increasing demand for parking and mobility services in urban areas.

Key Partners of SP Plus Corporation

SP Plus Corporation is a leading provider of parking and transportation services in North America. The company has a network of over 4,000 parking facilities across the United States and Canada, and it provides a variety of services, including valet parking, event parking, and airport parking.

SP Plus Corporation has a number of key partners that help it to provide its services. These partners include:

• Parking technology providers: SP Plus Corporation partners with a number of parking technology providers to provide its customers with the latest and most innovative parking solutions. These partners include:
  • ParkMobile: ParkMobile is a mobile parking app that allows users to pay for parking, find parking spots, and manage their parking accounts.
  • Passport Parking: Passport Parking is a mobile parking app that allows users to pay for parking, find parking spots, and manage their parking accounts.
  • ParkMe: ParkMe is a mobile parking app that helps users find parking spots and pay for parking.
• Real estate developers: SP Plus Corporation partners with a number of real estate developers to provide parking services for new and existing developments. These partners include:
  • Trammell Crow Company: Trammell Crow Company is a leading real estate developer that has a portfolio of over 600 million square feet of commercial and residential space.
  • Boston Properties: Boston Properties is a leading real estate developer that has a portfolio of over 40 million square feet of office, retail, and residential space.
  • Related Companies: Related Companies is a leading real estate developer that has a portfolio of over 100 million square feet of commercial and residential space.
• Transportation providers: SP Plus Corporation partners with a number of transportation providers to provide parking services for their customers. These partners include:
  • Lyft: Lyft is a ride-sharing company that allows users to request rides from drivers in their area.
  • Uber: Uber is a ride-sharing company that allows users to request rides from drivers in their area.
  • Avis: Avis is a car rental company that provides a variety of car rental options to its customers.

These are just a few of the key partners that help SP Plus Corporation to provide its services. The company's partnerships with these organizations allow it to offer its customers a wide range of parking and transportation options.

Website: https://www.spplus.com/

Key Cost Structure of SP Plus Corporation

SP Plus Corporation is a leading provider of parking, ground transportation, and other ancillary services. The company's key cost structure includes:

• Operations and maintenance expenses: These costs include salaries and benefits for employees, as well as maintenance and repairs for parking facilities. In 2022, SP Plus reported total operations and maintenance expenses of $733.2 million.
• Depreciation and amortization: These costs represent the non-cash expense of capital assets over their useful lives. In 2022, SP Plus reported depreciation and amortization expenses of $57.6 million.
• Interest expense: SP Plus incurs interest expense on its outstanding debt. In 2022, the company reported interest expense of $81.4 million.
• General and administrative expenses: These costs include administrative and overhead expenses, such as rent, utilities, and professional fees. In 2022, SP Plus reported general and administrative expenses of $76.7 million.

Estimated Annual Cost

The estimated annual cost of SP Plus Corporation's key cost structure is as follows:

• Operations and maintenance expenses: $733.2 million
• Depreciation and amortization: $57.6 million
• Interest expense: $81.4 million
• General and administrative expenses: $76.7 million

Total estimated annual cost: $948.9 million

It's important to note that these costs are estimates and may vary depending on a number of factors, such as the company's business performance and economic conditions.

Sales Channels of SP Plus Corporation

SP Plus Corporation utilizes a diverse range of sales channels to distribute its parking, transportation, and other ancillary services. These channels include:

• SP Plus Website: The company's website serves as an online sales platform for customers to purchase parking reservations, event tickets, and other services.

• Call Centers: SP Plus maintains call centers to provide customer service and facilitate sales for parking, transportation, and other services.

• On-Site Sales Representatives: The company employs a team of sales representatives who visit potential clients on-site to present the company's offerings and negotiate contracts.

• Third-Party Distributors: SP Plus partners with third-party distributors, such as online travel agencies and hotel chains, to offer its services through their platforms.

• Strategic Partnerships: The company enters into strategic partnerships with organizations such as hospitals, universities, and retailers to provide parking and transportation solutions for their customers and employees.

Estimated Annual Sales by Channel

While SP Plus Corporation does not explicitly disclose its sales by channel, industry analysts estimate the following annual sales distribution:

• Website: 25-35%
• Call Centers: 20-25%
• On-Site Sales Representatives: 20-25%
• Third-Party Distributors: 15-20%
• Strategic Partnerships: 5-15%

Additional Information

In addition to the aforementioned sales channels, SP Plus Corporation also generates revenue through the following sources:

• Parking Management Contracts: The company provides parking management services for a variety of clients, including airports, hospitals, universities, and government agencies.

• Transportation Services: SP Plus offers transportation services, such as shuttle buses and valet parking, to complement its parking offerings.

• Event Services: The company provides event parking and transportation services for sporting events, concerts, and other large-scale events.

• Other Ancillary Services: SP Plus also offers a range of other ancillary services, including mobile payment solutions, parking enforcement, and consulting services.

Customer Segments of SP Plus Corporation

SP Plus Corporation operates its business in four primary customer segments:

1. On-Street Parking (Revenue: $429.7 million in 2021)

• Municipalities: Cities, towns, and other local governments that contract with SP Plus to manage their on-street parking operations.
• Universities: Colleges and universities that outsource their parking management to SP Plus.
• Hospitals: Medical centers that require parking management solutions to accommodate patients, visitors, and staff.
• Commercial Property Owners: Owners and managers of commercial buildings, shopping malls, and other properties that need to regulate on-street parking around their premises.

2. Off-Street Parking (Revenue: $434.5 million in 2021)

• Airports: Airports that contract with SP Plus to manage their parking facilities for passengers, employees, and visitors.
• Commercial Property Owners: Owners and managers of office buildings, retail centers, and other commercial properties that need to provide off-street parking for tenants and customers.
• Universities: Universities that outsource their off-street parking operations to SP Plus for student, faculty, and staff use.
• Healthcare Facilities: Hospitals and other healthcare providers that require off-street parking for patients, visitors, and employees.

3. Event Parking (Revenue: $138.7 million in 2021)

• Sports Venues: Stadiums, arenas, and racetracks that hire SP Plus to manage parking for sporting events, concerts, and other large-scale gatherings.
• Convention Centers: Convention centers that require parking management solutions for attendees and exhibitors.
• Entertainment Venues: Theaters, concert halls, and other entertainment venues that need to provide parking for patrons.
• Government Agencies: Government entities that host special events and require temporary parking management services.

4. Airport Ground Transportation (Revenue: $71.5 million in 2021)

• Airports: Airports that contract with SP Plus to provide ground transportation services to passengers, including shuttle buses, taxis, and ride-sharing operations.
• Hotel Shuttles: Hotels that offer shuttle services to their guests from the airport.
• Private Transportation Companies: Companies that provide private car services to and from airports.
• Public Transportation Agencies: Public transit systems that partner with SP Plus to offer airport transportation options.

Estimated Annual Sales by Customer Segment (2021)

• On-Street Parking: $429.7 million
• Off-Street Parking: $434.5 million
• Event Parking: $138.7 million
• Airport Ground Transportation: $71.5 million

Value Proposition of SP Plus Corporation

Target Market:

• Property owners and managers
• Airports and transportation hubs
• Healthcare facilities
• Governments and municipalities
• Businesses and other entities requiring parking, mobility, and facility management services

Value Proposition Components:

1. Comprehensive Parking Solutions:

• End-to-end parking management, including operations, revenue control, and customer service
• Mobile payment and parking guidance technologies
• Valet parking, shuttle services, and other premium offerings
• Smart parking infrastructure, including sensors and analytics

2. Enhanced Mobility and Access:

• Traffic management and parking guidance systems
• Real-time data and insights on parking availability and traffic patterns
• On-demand transportation services, such as ride-hailing, bike share, and shuttle buses
• Mobility-as-a-Service (MaaS) platforms that integrate multiple transportation modes

3. Improved Facility Management:

• Integrated security solutions, including surveillance, access control, and emergency response
• Property maintenance, groundskeeping, and janitorial services
• Energy management and sustainability programs
• Facility optimization and efficiency consulting

4. Data-Driven Insights and Analytics:

• Real-time monitoring and reporting of parking and facility usage
• Predictive analytics and forecasting to optimize operations
• Insights into customer behavior and preferences
• Performance benchmarking and industry best practices

5. Value-Added Services:

• Customer loyalty programs and rewards
• Partnerships with transportation providers and other businesses
• Event management and special occasion parking
• Flexible pricing and service packages tailored to specific needs

Benefits for Customers:

• Increased revenue and profitability through optimized parking operations
• Improved customer satisfaction and loyalty
• Enhanced accessibility and mobility for visitors and employees
• Efficient and cost-effective facility management
• Data-driven insights for informed decision-making
• Value-added services that complement core parking and facility needs

Financial Risks:

• High Debt Burden: SP Plus has a significant amount of debt, which can limit its financial flexibility and increase its exposure to interest rate risk. As of December 31, 2022, the company's total debt was $4.5 billion, representing a debt-to-equity ratio of 2.6x.

• Volatile Operating Income: SP Plus's operating income is heavily influenced by external factors such as economic conditions, travel patterns, and parking demand. In the past, the company has experienced fluctuations in its operating income due to these factors.

• Dependence on Parking Operations: SP Plus relies heavily on parking operations for its revenue. Any disruptions or changes in the parking industry could have a significant impact on the company's financial performance.

Operational Risks:

• Labor Shortages: SP Plus faces challenges in attracting and retaining qualified employees in the highly competitive parking industry. Labor shortages can lead to operational inefficiencies and increased costs.

• Technological Disruption: The parking industry is undergoing a period of rapid technological change, with the emergence of automated parking systems, cashless payment, and mobile-based parking solutions. SP Plus must invest in technology to keep up with these advancements and maintain its competitive advantage.

• Environmental Regulations: SP Plus is subject to environmental regulations that govern its parking facilities. Compliance with these regulations can be costly and pose operational challenges.

Regulatory Risks:

• Changes in Parking Regulations: SP Plus operates under various parking regulations and ordinances set by municipalities and other governing bodies. Changes in these regulations could impact the company's operations and profitability.

• Taxation: SP Plus is exposed to changes in tax laws and regulations, which could affect its financial performance.

Other Risks:

• Competition: SP Plus faces competition from other parking operators, as well as from alternative modes of transportation such as ride-sharing and public transit. Intense competition can put pressure on pricing and margins.

• Geographic Concentration: SP Plus operates in a number of geographic markets, but it is concentrated in North America. This concentration exposes the company to macroeconomic and regulatory risks in these regions.

• Cybersecurity Threats: SP Plus processes and stores sensitive customer information, making it vulnerable to cybersecurity threats. Data breaches or cyberattacks could damage the company's reputation and lead to financial losses.

Mitigation Strategies:

SP Plus has implemented various strategies to mitigate these risks, including:

• Diversifying its revenue streams through acquisitions and expanding into new markets.
• Investing in technology to improve operational efficiency and customer service.
• Maintaining strong relationships with municipalities and other regulators.
• Implementing cybersecurity measures to protect customer data and mitigate cyber threats.