Mobile Infrastructure Corporation (BEEP Quick QuoteBEEP - Free Report) reported a loss per share of 6 cents in the second quarter of 2024, narrower than the year-ago loss of 19 cents per share.

Revenues in Detail

Mobile Infrastructure registered revenues of $9.3 million in the second quarter, up 28.4% year over year.

The increase in total revenues was due primarily to 27 of the company’s 42 assets converting to management contracts in the first half of 2024. The change to management contracts resulted in Mobile Infrastructure recognizing revenues from all parking transactions at those locations.

Segment Details

Mobile Infrastructure derives revenues from three segments — Managed property revenues, Base rent income and Percentage rental income.

For the quarter under review, Managed property revenues were $7.2 million. The segment derived revenues from Transient Parkers ($4.7 million), Contract Parkers ($2.5 million) and Ancillary Revenue ($0.1 million).

Revenues from Base rent income during the second quarter were $17.6 million (down 21.9% year over year), while revenues from Percentage rental income were $0.5 million (down 90.2% year over year).

Mobile Infrastructure Operating Expenses Analysis

Property operating expenses surged 242.2% year over year to $1.8 million, while general and administrative expenses rose 19% year over year to $2.9 million. Total operating expenses of $8.9 million increased 22.6% year over year.

Profitability

Operating profit totaled $0.4 million against the prior-year quarter’s operating loss of $0.1 million.

In the second quarter, Mobile Infrastructure’s net loss was $2.5 million compared with $3.7 million reported in the year-ago quarter.

Net Operating Income (NOI) was $5.6 million for the second quarter of 2024, representing a year-over-year increase of 14.1%.

Adjusted EBITDA during the reported quarter was $4.2 million, up 16.3% from the year-ago quarter.

Liquidity & Debt Management

Mobile Infrastructure exited second-quarter 2024 with cash of $8.7 million compared with $9.1 million at the first-quarter end.

Total debt outstanding, including outstanding borrowings on the credit facility and notes payable, was $191.5 million compared with $192.1 million at the first-quarter end.

Cumulative net cash used in operating activities at the end of second-quarter 2024 was $1 million compared with $2.2 million a year ago.

Guidance

Mobile Infrastructure has reiterated its full-year guidance.

For 2024, total revenues are expected to be between $38 million and $40 million.

NOI for 2024 is projected to be between $22.5 million and $23.25 million.

Our Take

Mobile Infrastructure exited the second quarter of 2024 with encouraging top-line and bottom-line results. Per the company, the majority of its asset portfolio converted to managed service contracts from leases in the first half of 2024, thereby driving up second-quarter revenues. This raises our optimism.

Per management, a notable development has been the conversion of downtown office space to residential rentals in many of the cities in which it operates, and the pace of these conversions has accelerated since the beginning of this year. Parking needs associated with this demographic shift are also likely to increase substantially. Mobile Infrastructure is also seeing early signs of increased return-to-office mandates in several of its markets, which is also expected to strengthen its utilization of downtown assets over time. These look promising for the stock.

However, lower revenues from Base rent income and Percentage rental income were discouraging.