Revenue during the quarter went up marginally by 2.10 percent to $409.10 million from $400.70 million in the previous year period. Gross margin for the quarter expanded 5 basis points over the previous year period to 10.73 percent. Total expenses were 96.14 percent of quarterly revenues, down from 97.30 percent for the same period last year. This has led to an improvement of 117 basis points in operating margin to 3.86 percent.

Operating income for the quarter was $15.80 million, compared with $10.80 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $24.70 million compared with $22.10 million in the prior year period. At the same time, adjusted EBITDA margin improved 52 basis points in the quarter to 6.04 percent from 5.52 percent in the last year period.

G Marc Baumann, president and chief executive officer, stated, "We are very pleased with our strong bottom-line performance in the third quarter as evidenced by a double-digit increase in EPS and EBITDA which was driven by our on-going disciplined cost management. We achieved growth at same operating locations across many of our markets and increased new business, which was offset by the cumulative impact of some contract terminations as well as a smaller favorable change in prior-year casualty loss reserve estimates this year. Our location retention rate remained strong for the third quarter of 2016. Finally, we continue to generate strong year-to date free cash flow which has increased significantly over last year."

For financial year 2016, SP Plus Corporation forecasts diluted earnings per share to be in the range of $1.16 to $1.26 on adjusted basis.

The company has spent $9.90 million cash to meet investing activities during the nine month period as against cash outgo of $7.90 million in the last year period.

The company has spent $20 million cash to carry out financing activities during the nine month period as against cash outgo of $9.80 million in the last year period.

Cash and cash equivalents stood at $19.30 million as on Sep. 30, 2016, up 1.58 percent or $0.30 million from $19 million on Sep. 30, 2015.

Working capital remains negative
Working capital of SP Plus Corporation was negative $48.80 million on Sep. 30, 2016 compared with negative $46.71 million on Sep. 30, 2015. Current ratio was at 0.77 as on Sep. 30, 2016, up from 0.77 on Sep. 30, 2015.

Days sales outstanding went up to 27 days for the quarter compared with 26 days for the same period last year.

At the same time, days payable outstanding was almost stable at 25 days for the quarter, when compared with the previous year period.