Mobile Infrastructure (US:BEEP)2025-11-10 21:24Revenue Performance - For the three months ended September 30, 2025, total revenues decreased to $9,086,000, down 6.9% from $9,758,000 in the same period of 2024[108]. - Managed property revenue for the same period was $7,673,000, a decline of 3.9% compared to $7,981,000 in 2024[108]. - Average monthly same location Revenue Per Available Stall (RevPAS) decreased to $211.53 in 2025 from $227.60 in 2024, reflecting a decline of 7.1%[107]. - Total revenues for the nine months ended September 30, 2025, decreased by 5.5% to $26.3 million from $27.9 million in 2024[118]. - Managed property revenue increased by 4.6% to $21.7 million, while base rental income decreased by 11.0% to $4.2 million, and percentage rental income fell by 80.8% to $469,000[118]. - The decline in revenue was influenced by a restructuring plan in the Detroit market and fewer events in several key markets, partially offset by increased contract parking volumes in Cleveland[120]. Operating Expenses - Total operating expenses increased by 29.3% to $11,438,000 in the three months ended September 30, 2025, compared to $8,848,000 in 2024[110]. - Operating expenses rose by 5.1% to $28.5 million, driven by a 24.3% increase in depreciation and amortization to $7.8 million and a significant impairment of $2.5 million[121][126]. Interest and Debt - Interest expense increased by 36.4% to $4,568,000 in the three months ended September 30, 2025, compared to $3,348,000 in 2024[114]. - Interest expense increased by 47.7% to $13.9 million, primarily due to higher interest rates and loan fee amortization related to the Line of Credit[127][128]. - The company has approximately $211.3 million of debt outstanding as of September 30, 2025[138]. - The company has $34.3 million related to the Line of Credit due within twelve months, along with $4.9 million of accrued interest, raising substantial doubt about its ability to continue as a going concern[139]. - Management plans to sell real estate assets to satisfy debt maturity and has the ability to extend the Line of Credit maturity to March 31, 2026, alleviating concerns about going concern[140]. - The company refinanced $5.5 million of notes payable and entered into a $40.4 million Line of Credit, extending its maturity to December 31, 2025, with a 15.0% annual interest rate[144]. Net Income and Cash Flow - Net Operating Income (NOI) for the nine months ended September 30, 2025, decreased by 10.1% to $15.4 million compared to $17.1 million in 2024[132]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $10.5 million, down from $11.9 million in 2024, reflecting a decrease of 12.1%[135]. - The company reported a net loss of $15.4 million for the nine months ended September 30, 2025, compared to a net loss of $7.3 million in 2024[135]. - Cash flows from operating activities improved to $1.5 million for the nine months ended September 30, 2025, compared to a cash outflow of $1.0 million in the same period of 2024, an increase of $2.5 million[147]. - Cash flows from investing activities provided $2.2 million in the nine months ended September 30, 2025, compared to a cash outflow of $0.2 million in 2024, an increase of $2.4 million[148]. - Cash used in financing activities increased to $7.4 million for the nine months ended September 30, 2025, compared to $1.2 million in 2024, primarily due to principal debt payments and share repurchases[149]. Future Outlook and Strategy - The company aims to convert the remaining assets to asset management contracts by the end of 2027, with 30 out of 40 assets already converted[105]. - The company anticipates a hybrid work structure will be the normalized state going forward, impacting asset performance in urban centers[104]. - The company expects seasonal fluctuations in demand, particularly affecting transient parking revenues, while contract parking revenues are expected to remain stable[151]. - The company has identified a pipeline of acquisition opportunities, particularly in parking facilities, but is unlikely to proceed until more favorable financial market conditions are realized[141]. Dividend and Stock Distribution - In September 2024, the company paid all accrued and unpaid dividends on Series A and Series 1 Preferred Stock and declared monthly dividends through September 2025[142]. - The company suspended common stock distributions in March 2018 and does not anticipate resuming them in the near future[143].