Mobile Infrastructure Reports First Quarter 2025 Financial Results

First Quarter 2025 Revenue was Stable Year-over-Year, Adjusting for a $0.6 Million First Quarter 2024 Benefit from 2023 Revenue Recognition

Higher Contract Parking Volumes Reflect Management Focus on Increased Utilization

Portfolio Optimization Program Underway

Reaffirms Full Year Guidance

BEEP Shares to Begin Trading on Nasdaq on May 23

Conference Call Will be Held on May 13, 2025, at 8:00 AM Eastern Time

CINCINNATI--(BUSINESS WIRE)--May 12, 2025-- 

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 first quarter of 2025 ended March 31, 2025.

Commenting on the results, Manuel Chavez III, Chief Executive Officer, said, "While year-over-year financial comparisons were exacerbated by several asset-specific headwinds, there were several bright spots in our seasonally slowest first quarter. Our focus on driving utilization yielded a sequential 4.1% increase in contract parking volumes at similar rates to those of the 2024 fourth quarter. When sustained, higher utilization should lead to longer-term pricing power. Additionally, return-to-office trends are gaining momentum in our markets, and year-to-date corporate parking inquiries have increased compared to the same period last year. Although adverse weather conditions and certain location-specific obstacles led to lower transient volumes in the quarter, transient rates were up sequentially and year-over-year, reflecting the strength of our strategy to position our core assets near multiple demand drivers. RevPAS*, excluding our Detroit location--which is one of our largest core assets and only converted to a management contract in mid-2024--was $184 in the first quarter, slightly ahead of last year's $183. The conversion of our locations to management contracts from lease agreements will continue to bring incremental revenue consistency and greater predictability to our results.

"First quarter Net Operating Income was constrained by several factors, including a lower number of special events and reduced attendance at those events, construction-related impacts at several of our locations, and an acceleration of certain costs that occur early in the year, as well as costs associated with enhanced security around select assets. We expect to see improvement in these areas in the upcoming quarters, enabling us to achieve our guidance for Net Operating Income of $23.5 million to $25.0 million for full year 2025."

First Quarter 2025 Highlights

   -- Total revenue was $8.2 million 
 
   -- Net loss was $4.3 million 
 
   -- NOI* was $4.5 million 
 
   -- Adjusted EBITDA* was $2.7 million 
 
   -- Same location RevPAS* was $184.00, excluding our Detroit location 

*An explanation of these items and reconciliation of non-GAAP financial measures are presented later in this press release.

Financial Results

Total revenue of $8.2 million during the first quarter of 2025 decreased by 6.7% from $8.8 million in the prior-year quarter. During the first quarter of 2024, under the percent rent lease structure that we are phasing out in favor of management contracts, we recognized a nonrecurring $0.6 million benefit related to cash collections from operators in 2024 pertaining to parking used in 2023. Excluding this benefit, first quarter 2025 was flat year-over-year. Total property taxes and operating expenses for the first quarter of 2025 were $3.8 million, as compared to $3.4 million during the same period in 2024.

General and administrative expenses for the first quarter of 2025 was $1.9 million, which included $0.7 million of non-cash compensation, compared to $3.0 million during the same period in 2024, which included $1.8 million of non-cash compensation.

Interest expense for the first quarter of 2025 was $4.6 million compared to $3.0 million in the first quarter of 2024, associated with higher debt balances resulting from the use of our line of credit for the redemption of preferred stock and share repurchases.

Net loss was $4.3 million, up from $3.0 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 $4.5 million for the first quarter of 2025, down from $5.4 million in the prior year period. Adjusted EBITDA was $2.7 million for the first quarter of 2025, a decrease from $3.5 million in the prior year period. In the first quarter of 2024, Net Operating Income and Adjusted EBITDA included a $0.6 million benefit from 2023 due to the change from percent rent lease structures, which resulted in revenue reported based on cash receipts from operators in accordance with the lease agreements, to management contracts, which results in revenue reported in the period in which our parking facilities are used.

Excluding the Company's Detroit location, which converted to a management contract in mid-2024, same location Revenue Per Available Stall ("RevPAS"), which calculates parking revenue per stall for the comparable portfolio of assets under management contracts year-over-year, was $184 for the first quarter of 2025, compared to $183 in the first quarter of 2024.

Balance Sheet, Cash Flow, and Liquidity

At March 31, 2025, the Company had $16.2 million in cash, cash equivalents and restricted cash. As of March 31, 2025, total debt outstanding, including outstanding borrowings under the credit facility, line of credit and notes payable, was $214.1 million, compared to total debt outstanding of $192.1 million as of March 31, 2024.

Summary and Outlook**

"Our management team remains focused on increasing utilization across our parking portfolio and driving growth in Net Operating Income. At the end of the first quarter and into April, we have experienced improved contract parking demand trends in several of our markets, and we are currently submitting many more proposals than at this time last year, although pricing sensitivity for monthly commercial parking is a factor.

"In addition to more favorable return-to-office dynamics, the conversion of downtown office buildings into residential rentals in Cincinnati has positively impacted our adjacent locations. Similar conversion projects underway in other Midwestern cities are expected to drive increased utilization going forward.

"These factors underpin our outlook for 2025 and our confidence in achieving our full year 2025 guidance for Net Operating Income ranging from $23.5 million to $25.0 million, revenues of $37.0 million to $40.0 million, and Adjusted EBITDA of $16.5 million to $18.0 million. This guidance does not include any potential asset sales or acquisitions.

"In the first quarter we accelerated the pace of our three-year asset rotation strategy, which involves divesting non-core assets and re-populating our portfolio with fewer, larger parking assets that have multiple demand drivers and higher net operating income opportunities. We estimate the total value of our identified non-core assets at approximately $100 million.

"Mobile Infrastructure's share price is substantially below our $7.25 per share NAV. Given the value of our assets and confidence in our asset repositioning strategy, we repurchased approximately 82,000 shares in the first quarter for an aggregate cost of approximately $265,000, or an average price of $3.23 per share," noted Mr. Chavez.

**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.

Shares to Transfer to Nasdaq

We're pleased to announce that the Company has been approved for listing on Nasdaq under the symbol "BEEP." Listing on the Nasdaq is expected to commence on May 23, 2025. The Company's common stock will continue to trade on the NYSE American until the market close on May 22, 2025.

Manuel Chavez, Chief Executive Officer of the Company, commented, "As part of our strategy to increase our visibility, we are transferring our listing to the Nasdaq. As we continue to build out our business, we are confident transferring to the Nasdaq will enhance our liquidity and attract a broader shareholder base," Mr. Chavez concluded.

First Quarter 2025 Conference Call and Webcast Information

Mobile will hold a conference call to discuss its first quarter 2025 results and full year 2025 outlook on Tuesday, May 13, 2025, 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 Q1 2025 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 August 13, 2025, on the Investor Relations website under "IR Calendar" under "News & Events".

Forward-Looking Statements

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