Mobile Infrastructure (BEEP) Q2 Earnings and Revenues Improve Y/Y

Core Viewpoint - Mobile Infrastructure Corporation (BEEP) reported improved financial performance in Q2 2024, with a narrower loss per share and significant revenue growth driven by the conversion of assets to management contracts [1][9]. Revenue Details - Total revenues for Q2 2024 were $9.3 million, reflecting a year-over-year increase of 28.4% [2]. - The revenue growth was primarily due to 27 out of 42 assets converting to management contracts, allowing the company to recognize revenues from all parking transactions at those locations [2]. Segment Details - Revenue breakdown for Q2 2024 included Managed property revenues of$ 7.2 million, with contributions from Transient Parkers ( $4.7 million), Contract Parkers ($ 2.5 million), and Ancillary Revenue ( $0.1 million) [3]. - Base rent income was$ 17.6 million, down 21.9% year over year, while Percentage rental income was $0.5 million, down 90.2% year over year [4]. Operating Expenses - Property operating expenses surged 242.2% year over year to$ 1.8 million, while general and administrative expenses rose 19% year over year to $2.9 million [5]. - Total operating expenses increased 22.6% year over year to$ 8.9 million [5]. Profitability - Operating profit for Q2 2024 was $0.4 million, compared to an operating loss of$ 0.1 million in the prior-year quarter [6]. - The net loss narrowed to $2.5 million from$ 3.7 million in the year-ago quarter [6]. - Net Operating Income (NOI) was $5.6 million, representing a year-over-year increase of 14.1% [6]. - Adjusted EBITDA for the quarter was$ 4.2 million, up 16.3% from the previous year [6]. Liquidity & Debt Management - Cash at the end of Q2 2024 was $8.7 million, down from$ 9.1 million at the end of Q1 2024 [7]. - Total debt outstanding was $191.5 million, slightly down from$ 192.1 million at the end of Q1 2024 [7]. - Cumulative net cash used in operating activities was $1 million, compared to$ 2.2 million a year ago [7]. Guidance - The company reiterated its full-year guidance for 2024, expecting total revenues between $38 million and$ 40 million, and NOI projected between $22.5 million and$ 23.25 million [8]. Market Insights - The conversion of downtown office space to residential rentals is accelerating, which is expected to increase parking needs [10]. - Early signs of increased return-to-office mandates in several markets may strengthen the utilization of downtown assets over time [10]. - Despite the positive developments, lower revenues from Base rent income and Percentage rental income were noted as discouraging [11].