--Continued Progress Across Key Operating and
Financial Metrics--
--Secular Trends Should Begin to Benefit Q4 and
Strengthen Comparisons in 2025--
--Re-affirms Full Year 2024 Guidance--
--Conference Call Will be Held November 13th at
8 AM ET--
Mobile Infrastructure Corporation (NYSE American: BEEP),
(“Mobile”, “Mobile Infrastructure” or the “Company”), owners of a
diversified portfolio of parking assets throughout the United
States, today reported results for the third quarter ended
September 30, 2024.
Commenting on the results, Manuel Chavez III, Chief Executive
Officer, said “Our asset portfolio performance was stable in the
third quarter, with Net Operating Income increasing 3.8% from the
same period last year. Recurring contract parking volumes showed
continued strength, offsetting sluggish transient business
conditions that affected utilization at hospitality and event
locations. As the third quarter progressed, several secular trends
began to emerge that we believe will modestly benefit fourth
quarter results and have a more meaningful positive impact in
2025.
“First, COVID-related cancellations of corporate parking
contracts, which have masked new business growth for much of 2024,
are now mostly behind us. Second, we are seeing early indications
of return to office trends in our markets, particularly in the
healthcare, professional services and food and beverage sectors.
Lastly, the first of many conversions of downtown office space to
residential rentals in our markets has been completed, which is
creating 24/7 parking demand at our adjacent location where we
currently have substantial capacity. Several other similar projects
are scheduled for completion in 2025 and 2026, providing us with
considerable future growth opportunities.
“Also, in the third quarter, we took several actions that we
expect to ultimately enhance shareholder value. These include
securing a $40.4 million line of credit to provide the flexibility
to fund future preferred stock redemptions in cash rather than
common stock, paying all accrued dividends on the preferred stock
to-date, and commencing a common stock repurchase plan. These
actions are designed to narrow the gap between Mobile’s Net Asset
Value (“NAV”) of $7.25 per share and its current market price.”
Third Quarter 2024 Highlights
- Total revenue was $9.8 million as compared to $8.1 million in
the prior-year period.
- Net loss was $1.9 million as compared to $24.6 million loss in
the prior-year period.
- NOI* was $6.1 million as compared to $5.9 million in the
prior-year period.
- Adjusted EBITDA* was $4.5 million as compared to $4.4 million
in the prior-year period.
- Same location RevPAS was $227.60 as compared to $224.00 in the
prior-year period
*An explanation of these items and reconciliation of non-GAAP
financial measures are presented later in this press release.
Financial Results
Total revenue of $9.8 million during the third quarter of 2024
increased by 21.0% from $8.1 million in the prior-year quarter.
Total property taxes and operating expenses for the third quarter
of 2024 were $3.7 million, as compared to $2.2 million during the
same period in 2023.
General and administrative expenses for the third quarter of
2024 of $2.7 million reflected $1.3 million of non-cash
compensation, compared to general and administrative expenses for
the third quarter of 2023 of $4.2 million, which reflected $3.1
million of non-cash compensation.
Interest expense for the third quarter of 2024 was $3.3 million,
as compared to $3.6 million during the third quarter of 2023.
Net loss was $1.9 million, compared with $24.6 million in the
comparable prior-year period.
Net Operating Income (“NOI”), defined by the Company as total
revenues less property taxes and operating expenses, was $6.1
million for the third quarter of 2024, representing a 3.8% increase
from the third quarter of 2023.
Adjusted EBITDA was $4.5 million for the third quarter of 2024,
representing a 2.2% increase over the same year-ago period.
Same location Revenue Per Available Stall (“RevPAS”), which
calculates Parking Revenue per stall for the comparable portfolio
of assets under management agreements year-over-year, was $227.60
for the third quarter of 2024, representing a 1.6% increase from
the same year-ago period.
As of September 30, 2024, the Company had $14.3 million in cash,
cash equivalents and restricted cash. As of September 30, 2024,
total debt outstanding, including outstanding borrowings on the
credit facility, line of credit and notes payable, was $203.3
million, compared to total debt outstanding of $192.9 million as of
December 31, 2023.
Summary and Outlook**
“Our year-to-date results reflect ongoing progress in managing
our asset portfolio and gaining additional oversight on expense.
This has enabled us to reaffirm our full year 2024 guidance of
revenue of $38 million to $40 million and Net Operating Income of
$22.5 million to $23.25 million.
We believe we are at an inflection point with respect to our
same location RevPAS metric, where we saw positive year-on-year
comparisons in the third quarter now that the COVID-related
contract cancellations are mostly behind us. Also, throughout 2024,
we have taken advantage of market opportunities to profitably sell
certain non-core assets in our portfolio. We continue to progress
on refinancing our portfolio and expect to have successful actions
to share before year-end 2024. Once complete, we will be even
better positioned to seek out expansion opportunities and
partnerships, benefitting from our market expertise,” Mr. Chavez
concluded.
**The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis, where it is unable to provide
a meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. Please see Discussion and Reconciliation of Non-GAAP
Measures later in this press release for further discussion.
Additional information regarding the Company’s Net Asset Value per
share is presented later in this press release.
Third Quarter 2024 Conference Call and Webcast
Information
Mobile will hold a conference call to discuss its third quarter
2024 results on Wednesday, November 13, 2024, at 8:00 a.m. ET. To
participate on the day of the call, dial 1-866-652-5200, or
internationally 1-412-317-6060, approximately ten minutes before
the call and tell the operator you wish to join the Mobile
Infrastructure Conference Call.
A live webcast of the conference call will be available in the
Investor Relations section of the Mobile Infrastructure website at
3Q24 Earnings Webcast. For those who are unable to listen to the
live broadcast, an archived webcast will be available approximately
two hours after the conclusion of the call, through January 13,
2025, on the Investor Relations website under “IR Calendar” under
"News & Events".
Forward-Looking Statements
Certain statements contained in this press release are
forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements included
in this press release that are not historical facts (including any
statements concerning our net operating income and revenue
projections, our assessment of various trends impacting our
economic performance, the effects of implementation of strategic
model changes, other plans and objectives of management for future
operations or economic performance, or assumptions or forecasts
related thereto) are forward-looking statements. Forward-looking
statements are typically identified by the use of terms such as
“may,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,”
“estimate,” “believe,” “continue,” “predict,” “potential” or the
negative of such terms and other comparable terminology.
The forward-looking statements included herein are based upon
the Company’s current expectations, plans, estimates, assumptions
and beliefs, which involve numerous risks and uncertainties.
Assumptions relating to the foregoing involve judgments with
respect to, among other things, future economic, competitive and
market conditions and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond the Company’s control. Although the Company believes that
the expectations reflected in such forward-looking statements are
based on reasonable assumptions, the actual results and performance
could differ materially from those set forth in the forward-looking
statements. Factors which could have a material adverse effect on
operations and future prospects include, but are not limited to the
fact that we previously incurred and may continue to incur losses,
we may be unable to achieve our investment strategy or increase the
value of our portfolio, our parking facilities face intense
competition, which may adversely affect our revenues, we may not be
able to access financing sources on attractive terms, or at all,
which could adversely affect our ability to execute our business
plan, and other risks and uncertainties discussed in the section
titled “Risk Factors” of our final prospectus, filed with the
Securities and Exchange Commission (the “SEC”) pursuant to Rule
424(b) under the Securities Act of 1933 on April 12, 2024, in
connection with our registration statement on Form S-11 and
subsequent filings the Company makes with the SEC from time to
time, particularly under the sections titled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations,” including the Company’s Annual Report on
Form 10-K, filed with the SEC on March 22, 2024 and Quarterly
Reports on Form 10-Q.
Any of the assumptions underlying the forward-looking statements
included herein could be inaccurate, and undue reliance should not
be placed upon any forward-looking statements included herein. All
forward-looking statements are made as of the date of this press
release, and the risk that actual results will differ materially
from the expectations expressed herein will increase with the
passage of time. Except as otherwise required by the federal
securities laws, the Company undertakes no obligation to publicly
update or revise any forward-looking statements made after the date
of this press release, whether as a result of new information,
future events, changed circumstances or any other reason. In light
of the significant uncertainties inherent in the forward-looking
statements included in this press release, the inclusion of such
forward-looking statements should not be regarded as a
representation by us or any other person that the objectives and
plans set forth in this press release will be achieved.
About Mobile Infrastructure Corporation
Mobile Infrastructure Corporation is a Maryland corporation. The
Company owns a diversified portfolio of parking assets primarily
located in the Midwest and Southwest. As of September 30, 2024, the
Company owned 41 parking facilities in 20 separate markets
throughout the United States, with a total of 15,300 parking spaces
and approximately 5.2 million square feet. The Company also owns
approximately 0.2 million square feet of retail/commercial space
adjacent to its parking facilities. Learn more at
www.mobileit.com.
MOBILE INFRASTRUCTURE CORPORATION
CONSOLIDATED BALANCE SHEETS (In thousands, except share
and per share amounts)
As of September 30,
2024
As of December 31,
2023
(unaudited)
ASSETS
Investments in real estate
Land and improvements
$
159,785
$
161,291
Buildings and improvements
259,737
260,966
Construction in progress
32
273
Intangible assets
10,256
10,187
429,810
432,717
Accumulated depreciation and
amortization
(36,102
)
(29,838
)
Total investments in real estate, net
393,708
402,879
Cash
8,732
11,134
Cash – restricted
5,568
5,577
Accounts receivable, net
3,783
2,269
Note receivable
3,120
—
Other assets
3,280
1,378
Total assets
$
418,191
$
423,237
LIABILITIES AND EQUITY
Liabilities
Notes payable, net
$
132,146
$
134,380
Revolving credit facility, net
53,256
58,523
Preferred line of credit
17,935
—
Accounts payable and accrued expenses
10,874
14,666
Accrued preferred distributions and
redemptions
5,603
10,464
Earn-Out Liability
636
1,779
Due to related parties
460
470
Total liabilities
220,910
220,282
Equity
Mobile Infrastructure Corporation
Stockholders’ Equity
Preferred stock Series A, $0.0001 par
value, 50,000 shares authorized, 2,230 and 2,812 shares issued and
outstanding, with a stated liquidation value of $2,229,000 and
$2,812,000 as of September 30, 2024 and December 31, 2023,
respectively
—
—
Preferred stock Series 1, $0.0001 par
value, 97,000 shares authorized, 27,426 and 36,677 shares issued
and outstanding, with a stated liquidation value of $27,426,000 and
$36,677,000 as of September 30, 2024 and December 31, 2023,
respectively
—
—
Preferred stock Series 2, $0.0001 par
value, 60,000 shares authorized, 46,000 issued and converted
(stated liquidation value of zero as of September 30, 2024 and
December 31, 2023)
—
—
Common stock, $0.0001 par value,
500,000,000 shares authorized, 31,724,535 and 27,858,539 shares
issued and outstanding as of September 30, 2024 and December 31,
2023, respectively
2
2
Warrants issued and outstanding –
2,553,192 warrants as of September 30, 2024 and December 31,
2023
3,319
3,319
Additional paid-in capital
270,504
262,184
Accumulated deficit
(139,057
)
(134,291
)
Total Mobile Infrastructure Corporation
Stockholders’ Equity
134,768
131,214
Non-controlling interest
62,513
71,741
Total equity
197,281
202,955
Total liabilities and equity
$
418,191
$
423,237
MOBILE INFRASTRUCTURE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands,
except share and per share amounts, unaudited)
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Revenues
Managed property revenue
$
7,981
$
—
$
20,708
$
—
Base rent income
1,538
2,009
4,704
6,040
Percentage rental income
239
6,054
2,439
16,340
Total revenues
9,758
8,063
27,851
22,380
Operating expenses
Property taxes
1,829
1,802
5,542
5,300
Property operating expense
1,835
390
5,180
1,441
Depreciation and amortization
2,104
2,132
6,293
6,389
General and administrative
2,684
4,154
8,610
9,218
Preferred Series 2 - issuance expense
—
16,101
—
16,101
Professional fees
396
326
1,345
1,121
Organizational, offering and other
costs
—
1,231
—
1,348
Impairment
—
8,700
157
8,700
Total expenses
8,848
34,836
27,127
49,618
Other
Interest expense
(3,348
)
(3,618
)
(9,414
)
(10,893
)
(Loss) Gain on sale of real estate
(13
)
—
(55
)
660
Other income, net
382
1,121
254
1,152
Change in fair value of Earn-Out
liability
179
4,628
1,143
4,628
Total other expense
(2,800
)
2,131
(8,072
)
(4,453
)
Net loss
(1,890
)
(24,642
)
(7,348
)
(31,691
)
Net loss attributable to non-controlling
interest
(579
)
(6,807
)
(2,582
)
(10,591
)
Net loss attributable to Mobile
Infrastructure Corporation’s stockholders
$
(1,311
)
$
(17,835
)
$
(4,766
)
$
(21,100
)
Preferred stock distributions declared -
Series A
(33
)
(48
)
(104
)
(156
)
Preferred stock distributions declared -
Series 1
(407
)
(642
)
(1,350
)
(2,034
)
Preferred stock distributions declared -
Series 2
—
(4,600
)
—
(4,600
)
Net loss attributable to Mobile
Infrastructure Corporation’s common stockholders
$
(1,751
)
$
(23,125
)
$
(6,220
)
$
(27,890
)
Basic and diluted loss per weighted
average common share:
Net loss per share attributable to Mobile
Infrastructure Corporation’s common stockholders - basic and
diluted
$
(0.06
)
$
(1.77
)
$
(0.21
)
$
(2.13
)
Weighted average common shares
outstanding, basic and diluted
30,615,113
13,089,848
29,309,119
13,089,848
Discussion and Reconciliation of Non-GAAP Measures
Net Operating Income
Net Operating Income (“NOI”) is presented as a supplemental
measure of our performance. The Company believes that NOI provides
useful information to investors regarding our results of
operations, as it highlights operating trends such as pricing and
demand for our portfolio at the property level as opposed to the
corporate level. NOI is calculated as total revenues less property
operating expenses and property taxes. The Company uses NOI
internally in evaluating property performance, measuring property
operating trends, and valuing properties in our portfolio. Other
real estate companies may use different methodologies for
calculating NOI, and accordingly, the Company’s NOI may not be
comparable to other real estate companies. NOI should not be viewed
as an alternative measure of financial performance as it does not
reflect the impact of general and administrative expenses,
depreciation and amortization, interest expense, other income and
expenses, or the level of capital expenditures necessary to
maintain the operating performance of the Company’s properties that
could materially impact results from operations.
EBITDA and Adjusted EBITDA
Earnings Before Interest Expense, Taxes, Depreciation and
Amortization (“EBITDA”) reflects net income (loss) excluding the
impact of the following items: interest expense, depreciation and
amortization, and the provision for income taxes, for all periods
presented. When applicable, Adjusted EBITDA also excludes certain
recurring and non-recurring items from EBITDA, including, but not
limited to gains or losses from disposition of real estate assets,
impairment write-downs of depreciable property, non-cash changes in
the fair value of the Earn-Out liability, merger-related charges
and other expenses, gains or losses on settlements, and stock-based
compensation expense.
The use of EBITDA and Adjusted EBITDA facilitates comparison
with results from other companies because it excludes certain items
that can vary widely across different industries or among companies
within the same industry. For example, interest expense can be
dependent on a company’s capital structure, debt levels, and credit
ratings. The tax positions of companies can also vary because of
their differing abilities to take advantage of tax benefits and
because of the tax policies of the jurisdictions in which they
operate. EBITDA and Adjusted EBITDA also exclude depreciation and
amortization expense because differences in types, use, and costs
of assets can result in considerable variability in depreciation
and amortization expense among companies. The Company excludes
stock-based compensation expense in all periods presented to
address the considerable variability among companies in recording
compensation expense because companies use stock-based payment
awards differently, both in the type and quantity of awards
granted. The Company uses EBITDA and Adjusted EBITDA as measures of
operating performance which allows for comparison of earnings and
evaluation of debt leverage and fixed cost coverage. These non-GAAP
financial measures should be considered along with, but not as
alternatives to, net income (loss), cash flow from operations or
any other operating GAAP measure.
Forward-Looking Basis
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis, where it is unable to provide
a meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and/or amount of various items that would impact net income
which is the most directly comparable forward-looking GAAP
financial measure. This includes, for example, external growth
factors and balance sheet items, that have not yet occurred, are
out of the Company's control and/or cannot be reasonably predicted.
For the same reasons, the Company is unable to address the probable
significance of the unavailable information. Forward-looking
non-GAAP financial measures provided without the most directly
comparable GAAP financial measures may vary materially from the
corresponding GAAP financial measures.
The following table presents NOI as well as a reconciliation of
NOI to Net Loss, the most directly comparable financial measure
under GAAP reported in our consolidated financial statements, for
the three and nine months ended September 30, 2024 and 2023 (in
thousands):
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
%
2024
2023
%
Revenues
Managed property revenue
$
7,981
$
—
$
20,708
$
—
Base rent income
1,538
2,009
4,704
6,040
Percentage rental income
239
6,054
2,439
16,340
Total revenues
9,758
8,063
21.0
%
27,851
22,380
24.4
%
Less:
Property taxes
1,829
1,802
5,542
5,300
Property operating expense
1,835
390
5,180
1,441
Net Operating Income
6,094
5,871
3.8
%
17,129
15,639
9.5
%
Reconciliation
Net loss
(1,890
)
(24,642
)
(7,348
)
(31,691
)
Loss (gain) on sale of real estate
13
—
55
(660
)
Other income, net
(382
)
(1,121
)
(254
)
(1,152
)
Change in fair value of Earn-Out
liability
(179
)
(4,628
)
(1,143
)
(4,628
)
Interest expense
3,348
3,618
9,414
10,893
Depreciation and amortization
2,104
2,132
6,293
6,389
General and administrative
2,684
4,154
8,610
9,218
Preferred Series 2 - issuance expense
—
16,101
—
16,101
Professional fees
396
326
1,345
1,121
Organizational, offering and other
costs
—
1,231
—
1,348
Impairment
—
8,700
157
8,700
Net Operating Income
$
6,094
$
5,871
$
17,129
$
15,639
The following table presents the calculation of EBITDA and
Adjusted EBITDA for the three and nine months ended September 30,
2024 and 2023 (in thousands):
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2024
2023
2024
2023
Reconciliation of Net Loss to Adjusted
EBITDA Attributable to the Company
Net loss
$
(1,890
)
$
(24,642
)
$
(7,348
)
$
(31,691
)
Interest expense
3,348
3,618
9,414
10,893
Depreciation and amortization
2,104
2,132
6,293
6,389
EBITDA Attributable to the
Company
$
3,562
$
(18,892
)
$
8,359
$
(14,409
)
Organizational, offering and other
costs
—
1,231
—
1,348
Impairment of real estate
—
8,700
157
8,700
Preferred Series 2 - Issuance Expense
-
16,101
—
16,101
Change in fair value of Earn-Out
liability
(179
)
(4,628
)
(1,143
)
(4,628
)
Gain on settlement of indemnification
liability
—
(1,155
)
—
(1,155
)
Loss (gain) on sale of real estate
13
—
55
(660
)
Transaction costs
(235)
—
59
—
Equity based compensation
1,343
3,052
4,751
6,135
Adjusted EBITDA Attributable to the
Company
$
4,504
$
4,409
$
12,238
$
11,432
Same location RevPAS
Revenue Per Available Stall (“RevPAS”) is used to evaluate
parking operations and performance. RevPAS is defined as Parking
Revenue (Parking Revenue less related Sales Tax/CC Fees) divided by
the parking stalls in the locations the Parking Revenue was earned.
Parking Revenue does not include Billboard or Commercial Rent, or
revenue from locations that are under Lease Agreements. Parking
Revenue is a meaningful component of revenue that is used to judge
the performance of locations and the ability to manage each
location. The Company believes RevPAS is a meaningful indicator of
our performance because it measures the period-over-period change
in revenues for comparable locations. Parking Revenue should not be
viewed as an alternative measure of the Company’s financial
performance as it does not reflect all components of revenue for
the Company, which may be material.
Same location RevPAS represents Parking Revenue at our assets
under management agreements prior to 2Q24 with the exception of two
assets where the Company does not have sufficient historical data
to calculate RevPAS for all periods presented. The Company believes
same location RevPAS is a key performance measure that allows for
review of fluctuations in revenue without the impact of portfolio
transaction or changes in revenue structure.
In 2024, same location RevPAS represents Parking Revenue per
stall at the managed locations. For years prior to 2024, same
location RevPAS represents Parking Revenue at the locations as
reported by operators. This does not represent Rent earned by the
Company, as the locations were under lease agreements where Rent
earned by the Company did not equal revenue received by the
operators at the locations.
Net Asset Value
The following table provides a breakdown of the major components
of our total Net Asset Value attributable to the Company’s common
stock, which were disclosed by the Company of June 30, 2024:
Estimated Value
Investments in real estate(a,b)
$
546,130
Cash and restricted cash
13,314
Other assets
7,647
Total assets
567,091
Notes payable and revolving credit
facility, net (at fair value)(b)
179,601
Accrued preferred distributions
9,864
Other liabilities(c)
11,758
Total liabilities
201,223
Preferred stock
33,782
Total estimated net asset value
$
332,086
Fully diluted shares outstanding(d)
45,820,367
Net asset value per fully diluted
share
$
7.25
a)
Estimated value was based on
implied cap rate of 4.0% applied to TTM NOI for properties owned as
of June 30, 2024.
b)
Adjusted for noncontrolling
interest related to certain properties.
c)
Excludes certain liability
classified equity instruments not expected to be settled in
cash.
d)
Includes all outstanding
operating partnership units and excludes out-of-the-money equity
instruments.
As with any valuation method, the methods used to determine our
internally-prepared NAV per share were based upon a number of
assumptions, estimates, forecasts and judgments that over time may
prove to be incorrect, incomplete or may change materially. There
are no rules or regulations that require us to calculate NAV in a
certain manner. As a result, other public companies may use
different methodologies or assumptions to determine NAV. In
addition, NAV is not a measure used under GAAP and the valuations
of and certain adjustments made to our assets and liabilities used
in the determination of NAV will differ from GAAP. You should not
consider NAV to be equivalent to stockholders’ equity or any other
GAAP measure. The estimated value of the Company’s assets and
liabilities is as of a specific date and such value is expected to
fluctuate over time in response to future events, including, but
not limited to, changes to commercial real estate values, changes
in market interest rates for real estate debt, changes in
capitalization rates, changes in laws or regulations, demographic
changes, returns on competing investments, local and national
economic factors, among other factors. Further, estimated NAV per
share, if viewed in isolation, could create a misleading or
incomplete view of the current value of the shares of the Company’s
common stock. Our NAV is not a representation, warranty or
guarantee that we would fully realize our NAV upon a sale of our
assets or with respect to the trading price of our shares of common
stock. Investors are advised to carefully review the Company’s
disclosures filed with the SEC in evaluating the Company or making
any investment decision related thereto.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112350289/en/
Mobile Contact David Gold Lynn Morgen beepir@advisiry.com
(212) 750-5800
Mobile Infrastructure (AMEX:BEEP)
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