STOCK TITAN

Verra Mobility Announces Third Quarter 2024 Financial Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Verra Mobility (NASDAQ: VRRM) reported strong Q3 2024 results with total revenue of $225.6 million, up 7% year-over-year, and net income of $34.7 million. The company's Commercial Services segment grew 11%, while Government Solutions increased by 7%. Net cash from operations reached $108.8 million, and Adjusted EBITDA was $104.7 million with a 46% margin. The company reaffirmed its full-year guidance for Total Revenue, Adjusted EBITDA, and Adjusted EPS while increasing Adjusted Free Cash Flow guidance to the upper end of the range. The company also continued its share repurchase program, with $48.5 million remaining available.

Verra Mobility (NASDAQ: VRRM) ha riportato risultati forti per il terzo trimestre del 2024 con un fatturato totale di 225,6 milioni di dollari, in aumento del 7% rispetto all'anno precedente, e un reddito netto di 34,7 milioni di dollari. Il segmento dei Servizi Commerciali dell'azienda è cresciuto dell'11%, mentre le Soluzioni Governative sono aumentate del 7%. Il flusso di cassa netto dalle operazioni ha raggiunto i 108,8 milioni di dollari, e l'EBITDA rettificato è stato di 104,7 milioni di dollari con un margine del 46%. L'azienda ha confermato le previsioni per l'intero anno riguardanti il Fatturato Totale, l'EBITDA rettificato e l'EPS rettificato, aumentando al contempo le previsioni sul Flusso di Cassa Gratuito Rettificato verso l'estremità superiore dell'intervallo. L'azienda ha anche continuato il suo programma di riacquisto di azioni, con 48,5 milioni di dollari ancora disponibili.

Verra Mobility (NASDAQ: VRRM) reportó resultados sólidos en el tercer trimestre de 2024 con ingresos totales de 225.6 millones de dólares, un aumento del 7% en comparación con el año anterior, y un ingreso neto de 34.7 millones de dólares. El segmento de Servicios Comerciales de la compañía creció un 11%, mientras que las Soluciones Gubernamentales aumentaron un 7%. El flujo de efectivo neto de las operaciones alcanzó los 108.8 millones de dólares, y el EBITDA ajustado fue de 104.7 millones de dólares con un margen del 46%. La empresa reafirmó su guía anual para Ingresos Totales, EBITDA Ajustado y EPS Ajustado, mientras que aumentó su guía de Flujo de Caja Libre Ajustado hacia el extremo superior del rango. La compañía también continuó su programa de recompra de acciones, con 48.5 millones de dólares aún disponibles.

Verra Mobility (NASDAQ: VRRM)는 2024년 3분기 강력한 실적을 보고했습니다. 총 수익은 2억 2,560만 달러로, 작년 대비 7% 증가했으며, 순이익은 3,470만 달러입니다. 회사의 상업 서비스 부문은 11% 성장하였고, 정부 솔루션은 7% 증가했습니다. 운영으로부터의 순 현금은 1억 880만 달러에 달했습니다, 조정된 EBITDA는 1억 470만 달러로 46%의 마진을 기록했습니다. 회사는 총 수익, 조정된 EBITDA 및 조정된 주당 순이익에 대한 연간 가이던스를 재확인했으며, 조정된 자유 현금 흐름 가이던스를 범위의 상단으로 증가시켰습니다. 또한 회사는 4,850만 달러의 잔여 자금을 가지고 주식 매입 프로그램을 계속했습니다.

Verra Mobility (NASDAQ: VRRM) a annoncé des résultats solides pour le troisième trimestre 2024, avec des revenus totaux de 225,6 millions de dollars, en hausse de 7 % par rapport à l'année précédente, et un revenu net de 34,7 millions de dollars. Le segment des Services Commerciaux de l'entreprise a connu une croissance de 11 %, tandis que les Solutions Gouvernementales ont augmenté de 7 %. Le flux de trésorerie net des opérations a atteint 108,8 millions de dollars, et l'EBITDA ajusté s'élevait à 104,7 millions de dollars avec une marge de 46 %. L'entreprise a réaffirmé ses prévisions pour l'année concernant les Revenus Totaux, l'EBITDA Ajusté et le BPA Ajusté tout en augmentant les prévisions de Flux de Trésorerie Libre Ajusté vers le haut de la fourchette. L'entreprise a également poursuivi son programme de rachat d'actions, avec 48,5 millions de dollars encore disponibles.

Verra Mobility (NASDAQ: VRRM) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit einem Gesamtumsatz von 225,6 Millionen US-Dollar, was einem Anstieg von 7 % im Vergleich zum Vorjahr entspricht, und einem Nettogewinn von 34,7 Millionen US-Dollar. Das Commercial Services-Segment des Unternehmens wuchs um 11 %, während die Government Solutions um 7 % zunahmen. Der Nettocashflow aus operativen Tätigkeiten belief sich auf 108,8 Millionen US-Dollar, und das bereinigte EBITDA betrug 104,7 Millionen US-Dollar bei einer Marge von 46 %. Das Unternehmen bekräftigte seine Jahresprognose für den Gesamtumsatz, das bereinigte EBITDA und das bereinigte Ergebnis pro Aktie, während die Prognose für den bereinigten freien Cashflow an die obere Grenze des Bereichs angehoben wurde. Das Unternehmen setzte auch sein Aktienrückkaufsprogramm fort, mit verbleibenden 48,5 Millionen US-Dollar.

Positive
  • Revenue increased 7% YoY to $225.6 million
  • Net income grew to $34.7 million from $30.3 million YoY
  • Commercial Services segment revenue up 11% to $109.1 million
  • Net cash from operations increased by $46.4 million to $108.8 million
  • Net Leverage improved to 2.2x from 2.5x at end of 2023
Negative
  • Parking Solutions revenue declined 4% YoY
  • Government Solutions segment profit margin decreased to 29% from 32% YoY

Insights

The Q3 2024 results demonstrate solid financial performance with notable strengths. Revenue grew 7% to $225.6 million, driven by an 11% increase in Commercial Services and 7% growth in Government Solutions. The Adjusted EBITDA margin remained stable at 46%, while net income improved to $34.7 million.

Key positives include strong cash generation with operating cash flow of $108.8 million and reduced net leverage to 2.2x from 2.5x at year-end 2023. The company's strategic share repurchase program and robust bid pipeline in Government Solutions suggest confidence in future growth.

However, investors should note the 4% decline in Parking Solutions revenue and compressed margins in Government Solutions segment, dropping to 29% from 32% due to increased operating expenses.

The travel industry recovery continues to benefit Verra Mobility's Commercial Services segment, which saw increased product adoption and tolling activity. The expansion of speed and maintenance programs in Government Solutions indicates growing market acceptance of automated enforcement solutions.

The company's strategic positioning in smart mobility infrastructure remains strong, with a robust bid pipeline suggesting potential future growth. The decision to increase Adjusted Free Cash Flow guidance while maintaining other metrics demonstrates management's confidence in operational efficiency and cash generation capabilities.

The market opportunity remains substantial as municipalities increasingly adopt automated enforcement solutions, though rising operating costs in platform enhancement warrant monitoring.

  • Total revenue of $225.6 million
  • Net income of $34.7 million
  • Net cash provided from operations of $108.8 million
  • Increasing 2024 Adjusted Free Cash Flow guidance and reaffirming all other financial guidance metrics

MESA, Ariz., Oct. 31, 2024 /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the third quarter ended September 30, 2024.

"We delivered a solid third quarter, highlighted by strong revenue, earnings, and cash flow generation," said David Roberts, President and CEO, Verra Mobility. "Strong third quarter travel demand drove continued strength in Commercial Services and increased demand for automated traffic enforcement drove solid performance in Government Solutions. Moreover, we are continuing to see a robust bid pipeline for automated enforcement programs in our Government Solutions business. Based on our year-to-date financial performance and anticipated outlook for the remainder of the year, we are reaffirming our full year guidance for Total Revenue, Adjusted EBITDA and Adjusted EPS while increasing Adjusted Free Cash Flow guidance to the upper-end of the range provided."

Third Quarter 2024 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2024 was $225.6 million, an increase of 7% compared to $209.9 million for the third quarter of 2023. Service revenue growth was 8%, driven by 11% growth in Commercial Services segment and 7% growth from our Government Solutions segment. Commercial Services revenue growth was due to increases in travel volume, product adoption and tolling activity, and the growth in Government Solutions service revenue was driven by the expansion of speed programs and maintenance programs. Parking Solutions service revenue declined by $0.7 million, or 4% compared to the third quarter of 2023, as increased revenue from software as a service product offerings was offset by reduction in professional services related to parking management solutions.
  • Net income and Earnings Per Share (EPS): Net income for the third quarter of 2024 was $34.7 million, or $0.21 per share, based on 167.6 million diluted weighted average shares outstanding. Net income for the comparable 2023 period was $30.3 million, or $0.18 per share, based on 169.5 million diluted weighted average shares outstanding.
  • Adjusted EPS*: Adjusted EPS for the third quarter of 2024 was $0.32 per share compared to $0.29 per share for the third quarter of 2023.
  • Adjusted EBITDA*: Adjusted EBITDA was $104.7 million for the third quarter of 2024 compared to $97.4 million for the same period last year. Adjusted EBITDA margin was 46% of total revenue for 2024 and 2023.
  • Net Cash Provided from Operations: Cash provided by operating activities increased by approximately $46.4 million from $62.4 million for the three months ended September 30, 2023 to $108.8 million for the three months ended September 30, 2024 due primarily to timing considerations related to improved cash collections and other sources of working capital.
  • Adjusted Free Cash Flow*: Adjusted Free Cash Flow was $85.1 million for the third quarter of 2024 compared to $52.0 million for the same period last year. There were no adjustments to Free Cash Flow in the third quarter of 2024 or 2023.

*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

We report our results of operations based on three operating segments:

  • Commercial Services offers automated toll and violations management and title and registration solutions to rental car companies, fleet management companies and other large fleet owners.
  • Government Solutions delivers automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement cameras to detect and process traffic violations related to speed, red-light, school bus and city bus lane management.
  • Parking Solutions provides an integrated suite of parking software, transaction processing and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs in the United States and Canada.

Third Quarter 2024 Segment Detail

  • The Commercial Services segment generated total revenue of $109.1 million, an 11% increase compared to $98.1 million in the same period in 2023. Segment profit was $72.9 million, a 12% increase from $65.3 million in the prior year period. The increases in revenue and segment profit compared to the prior year period resulted from increased travel volume and product adoption for our rental car company customers, growth in revenue contributed from processing violations, titles and registrations, and an increase in enrolled vehicles and higher tolling activity for our fleet management customers. The segment profit margin was 67% for the third quarter of both 2024 and 2023.
  • The Government Solutions segment generated total revenue of $95.9 million, a 6% increase compared to $90.3 million in the same period in 2023. The increase was due to a 7% increase in service revenue over the prior year quarter, primarily driven by the expansion of speed programs and maintenance programs. The segment profit was $28.1 million in 2024 compared to $28.6 million in the prior year period with segment profit margins of 29% for 2024 and 32% for 2023. The decrease in segment profit was primarily attributable to increased operating expenses associated with enhancing customer-facing platforms and systems and increased selling, marketing and general expenses.
  • The Parking Solutions segment generated total revenue of $20.6 million, a 4% decrease compared to $21.5 million in the same period in 2023 due to a reduction in service revenue and a decrease in one-time product sales compared to the prior year quarter. The segment profit was $3.7 million compared to $3.5 million in the prior year period with segment profit margins of 18% for 2024 and 16% for 2023. The increase in segment profit was primarily due to a decrease in cost of product sales, operating expenses, and selling and general expenses.

Liquidity: As of September 30, 2024, cash and cash equivalents were $206.1 million, and we generated $108.8 million in net cash provided by operating activities for the three months ended September 30, 2024.

Net Debt and Net Leverage: As of September 30, 2024, Net Debt was $844.0 million and Net Leverage was 2.2x, as compared to $918.3 million and 2.5x as of December 31, 2023.

Share Repurchases
In October 2023, our Board of Directors authorized a new share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A Common Stock over an 18-month period in open market, accelerated share repurchase or privately negotiated transactions. On June 6, 2024, we entered into a share repurchase agreement with a stockholder, pursuant to which we repurchased, directly from the stockholder, 2.0 million shares of our Class A Common Stock for an aggregate purchase price of $51.5 million. The repurchased shares were subsequently retired. As of September 30, 2024, approximately $48.5 million remains available under our authorized share repurchase program.

2024 Full Year Guidance
Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.

Based on our third quarter 2024 results and our outlook for the remainder of the year, we are reaffirming 2024 full year guidance for Total Revenue, Adjusted EBITDA and Adjusted EPS and increasing Adjusted Free Cash Flow to the upper-end of the range.

  • Total Revenue at the upper-end of the range of $865 million to $880 million
  • Adjusted EBITDA at the upper-end of the range of $395 million to $405 million
  • Adjusted EPS at the upper-end of the range of $1.15 to $1.20
  • Adjusted Free Cash Flow at the upper-end of the range of $155 million to $165 million
  • Net Leverage of approximately 2.0x

Underlying Assumptions for 2024 Full Year Guidance

  • Weighted average fully diluted share count expected to be approximately 168 million shares for the full year 2024
  • Effective tax rate (including state taxes) is expected to be 30%, with approximately $55 million in total cash taxes expected to be paid in 2024. The effective tax rate for Non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPS
  • Depreciation and amortization expense expected to be approximately $110 million for 2024
  • Total interest expense, net expected to be approximately $75 million, of which approximately $75 million is expected to be net cash interest paid
  • Change in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $35 million for 2024, excluding the one-time $31.5 million PlusPass legal settlement costs
  • Capital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $75 million for 2024

Moreover, we are also providing a preliminary view of our anticipated 2025 outlook in advance of providing guidance in our fourth quarter earnings call. At this time, we anticipate 2025 revenue growth at the low end of our long-term 6% to 8% guide we provided at our July 2022 investor day. Additionally, we expect growth in 2025 Adjusted EBITDA dollars to be in the low-to-mid single digits compared to 2024.

Conference Call Details

Date: October 31, 2024
Time: 5:00 p.m. Eastern Time
U.S. and Canadian Callers Dial-in: 1-800-717-1738
Outside of U.S. and Canada Dial-in: 1-646-307-1865 for international callers
Request a return call: Available by clicking on the following link and requesting a return call: callme.viavid.com
Webcast Information: Available live in the "Investor Relations" section of our website at http://ir.verramobility.com

An audio replay of the call will also be available until 11:59 p.m. ET on November 14, 2024, by dialing 1-844-512-2921 for the U.S. or Canada, and 1-412-317-6671 for international callers and entering passcode 1131162. In addition, an archived webcast will be available in the "News & Events" section of the Investor Relations website at http://ir.verramobility.com

A copy of the earnings call presentation will be posted to our website.

About Verra Mobility
Verra Mobility is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Our transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. We also solve complex payment, utilization and compliance challenges for fleet owners and rental car companies. We are headquartered in Arizona, and operate in North America, Europe, Asia and Australia. For more information, please visit www.verramobility.com.

Forward-Looking Statements
This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, expected operating results and metrics, such as revenue growth, expansion plans and opportunities, 2024 full year guidance, including expected total revenue, Adjusted EBITDA, Adjusted EPS, Adjusted Free Cash Flow and Net Leverage, the underlying assumptions for the 2024 full year guidance, including expected weighted average fully-diluted share count, effective tax rate and cash taxes, expected depreciation and amortization, expected interest expense, net and total net cash interest, expected change in working capital and expected capital expenditures, and the preliminary 2025 outlook, including anticipated travel volumes and the impact on revenue growth and portfolio mix in the Commercial Service segment, the expected timing for converting backlog to revenue in the Government Solutions segment, as well as anticipated business development  investments in the Government Solutions segment and financial infrastructure investments. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, customer concentration in our Commercial Services and Government Solutions segments including risks impacting such segments, including travel demand and legislation; risks related to our contract with the New York City Department of Transportation, which comprises a material portion of our revenue and expires on December 31, 2024, including risks relating to securing an extension of the contract and winning the competitive procurement process for a new contract; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failure in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations/our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain an effective system of internal controls, including our ability to remedy our material weakness on a timely basis; our ability to properly perform under our contracts and otherwise satisfy our customers; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, disputes and regulatory investigations; our reliance on specialized third-party vendors and service providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the "SEC"). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2023 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2024. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

Additional Information
We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com

We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, Adjusted Free Cash Flow  or Net Leverage which are included in our 2024 financial guidance above, in reliance on the "unreasonable efforts" exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income, Adjusted EPS to net income per share, Adjusted Free Cash Flow to net cash provided by operating activities and Net Leverage, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.

We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow and Adjusted Free Cash Flow in connection with managing the business and converting Net Income to cash available for capital allocation and we use the non-GAAP metrics "Net Debt" and "Net Leverage" to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, earnings per share, other consolidated income, cash flow or debt data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA
We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items.

Free Cash Flow
We define "Free Cash Flow" as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment.

Adjusted Free Cash Flow
We define "Adjusted Free Cash Flow" as Free Cash Flow which further excludes certain one-time and non-recurring items such as the PlusPass legal settlement expense.

Adjusted Net Income
We define "Adjusted Net Income" as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of private placement warrants, change in fair value of interest rate swap, loss on extinguishment of debt, among other items.

Adjusted EPS
We define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period.

Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue.

Net Debt
We define "Net Debt" as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.

Net Leverage
We define "Net Leverage" as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end. The trailing twelve months Adjusted EBITDA is the sum of the year-to-date Adjusted EBITDA reported in the current year and the applicable quarter-to-date Adjusted EBITDA amounts reported in the prior year period (for example, the trailing twelve months Adjusted EBITDA as of September 30, 2024 is the sum of the nine months ended September 30, 2024 and the three months ended December 31, 2023).

 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except per share data)


September 30,
2024



December 31,
2023


Assets







Current assets:







Cash and cash equivalents


$

206,088



$

136,309


Restricted cash



7,125




3,413


Accounts receivable (net of allowance for credit losses of $19.6 million and
$18.5 million at September 30, 2024 and December 31, 2023, respectively)



194,587




197,824


Unbilled receivables



51,100




37,065


Inventory



18,708




17,966


Prepaid expenses and other current assets



51,407




46,961


Total current assets



529,015




439,538


Installation and service parts, net



30,134




22,895


Property and equipment, net



136,815




123,248


Operating lease assets



30,710




33,523


Intangible assets, net



251,327




301,025


Goodwill



838,151




835,835


Other non-current assets



34,429




33,919


Total assets


$

1,850,581



$

1,789,983


Liabilities and Stockholders' Equity







Current liabilities:







Accounts payable


$

100,225



$

78,749


Deferred revenue



30,204




28,788


Accrued liabilities



66,966




93,119


Tax receivable agreement liability, current portion



5,098




5,098


Current portion of long-term debt






9,019


Total current liabilities



202,493




214,773


Long-term debt, net of current portion



1,037,174




1,029,113


Operating lease liabilities, net of current portion



26,873




29,124


Tax receivable agreement liability, net of current portion



48,369




48,369


Asset retirement obligations



15,208




14,580


Deferred tax liabilities, net



16,886




18,360


Other long-term liabilities



17,032




14,197


Total liabilities



1,364,035




1,368,516


Commitments and contingencies







Stockholders' equity







Preferred stock, $0.0001 par value







Common stock, $0.0001 par value



16




17


Additional paid-in capital



564,491




557,513


Accumulated deficit



(71,149)




(125,887)


Accumulated other comprehensive loss



(6,812)




(10,176)


Total stockholders' equity



486,546




421,467


Total liabilities and stockholders' equity


$

1,850,581



$

1,789,983


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,


(In thousands, except per share data)


2024



2023



2024



2023


Service revenue


$

217,267



$

201,029



$

632,005



$

581,777


Product sales



8,284




8,904




25,702




24,520


Total revenue



225,551




209,933




657,707




606,297


Cost of service revenue, excluding depreciation and amortization



5,378




5,150




14,324




13,718


Cost of product sales



5,621




6,864




18,755




18,209


Operating expenses



76,026




68,873




221,569




196,373


Selling, general and administrative expenses



47,918




42,276




142,432




125,494


Depreciation, amortization and (gain) loss on disposal of assets, net



26,718




27,597




81,215




87,018


Total costs and expenses



161,661




150,760




478,295




440,812


Income from operations



63,890




59,173




179,412




165,485


Interest expense, net



18,723




20,384




57,203




65,842


Change in fair value of private placement warrants






(553)







24,966


Loss (gain) on interest rate swap



913




60




494




(1,947)


Loss on extinguishment of debt



33




1,975




628




3,533


Other income, net



(4,272)




(4,498)




(13,970)




(12,766)


Total other expenses



15,397




17,368




44,355




79,628


Income before income taxes



48,493




41,805




135,057




85,857


Income tax provision



13,761




11,497




36,953




31,864


Net income


$

34,732



$

30,308



$

98,104



$

53,993


Other comprehensive income (loss):













Change in foreign currency translation adjustment



5,190




(4,189)




3,364




(3,561)


Total comprehensive income


$

39,922



$

26,119



$

101,468



$

50,432


Net income per share:













Basic


$

0.21



$

0.18



$

0.59



$

0.35


Diluted


$

0.21



$

0.18



$

0.58



$

0.34


Weighted average shares outstanding:













Basic



164,735




168,089




165,676




156,196


Diluted



167,624




169,497




168,318




157,133


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Three Months Ended September 30,


($ in thousands)


2024



2023


Cash Flows from Operating Activities:







Net income


$

34,732



$

30,308


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



26,631




27,530


Amortization of deferred financing costs and discounts



1,043




1,131


Change in fair value of private placement warrants






(553)


Change in fair value of interest rate swap



1,169




202


Loss on extinguishment of debt



33




1,975


Credit loss expense



2,119




2,597


Deferred income taxes



(985)




(2,503)


Stock-based compensation



6,438




4,443


Other



284




172


Changes in operating assets and liabilities:







Accounts receivable



14,077




(14,783)


Unbilled receivables



(6,681)




(3,409)


Inventory



(142)




(1,006)


Prepaid expenses and other assets



769




(52)


Deferred revenue



3,609




(2,293)


Accounts payable and other current liabilities



24,570




18,169


Other liabilities



1,121




516


Net cash provided by operating activities



108,787




62,444


Cash Flows from Investing Activities:







Cash receipts for interest rate swap



256




142


Purchases of installation and service parts and property and equipment



(23,676)




(10,403)


Cash proceeds from the sale of assets



66




93


Net cash used in investing activities



(23,354)




(10,168)


Cash Flows from Financing Activities:







Repayment of long-term debt






(102,255)


Payment of debt issuance costs



(216)




(170)


Proceeds from the exercise of warrants






55,658


Share repurchases and retirement






(100,000)


Proceeds from the exercise of stock options



1,727




457


Payment of employee tax withholding related to RSUs and PSUs vesting



(168)




(49)


Net cash provided by (used in) financing activities



1,343




(146,359)


Effect of exchange rate changes on cash and cash equivalents



1,039




(1,086)


Net increase (decrease) in cash, cash equivalents and restricted cash



87,815




(95,169)


Cash, cash equivalents and restricted cash - beginning of period



125,398




213,499


Cash, cash equivalents and restricted cash - end of period


$

213,213



$

118,330


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Nine Months Ended September 30,


($ in thousands)


2024



2023


Cash Flows from Operating Activities:







Net income


$

98,104



$

53,993


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation and amortization



80,982




86,835


Amortization of deferred financing costs and discounts



3,437




3,600


Change in fair value of private placement warrants






24,966


Change in fair value of interest rate swap



1,316




(3,361)


Loss on extinguishment of debt



628




3,533


Credit loss expense



11,425




7,553


Deferred income taxes



(1,684)




(7,236)


Stock-based compensation



18,586




12,346


Other



749




306


Changes in operating assets and liabilities:







Accounts receivable



(7,891)




(35,854)


Unbilled receivables



(13,912)




(9,529)


Inventory



511




(1,061)


Prepaid expenses and other assets



(3,423)




2,948


Deferred revenue



1,401




3,475


Accounts payable and other current liabilities



(6,600)




27,059


Other liabilities



(474)




798


Net cash provided by operating activities



183,155




170,371


Cash Flows from Investing Activities:







Cash receipts (payments) for interest rate swap



822




(1,414)


Purchases of installation and service parts and property and equipment



(52,009)




(40,501)


Cash proceeds from the sale of assets



156




222


Net cash used in investing activities



(51,031)




(41,693)


Cash Flows from Financing Activities:







Repayment of long-term debt



(4,509)




(179,264)


Payment of debt issuance costs



(440)




(362)


Proceeds from the exercise of warrants






161,408


Share repurchases and retirement



(51,500)




(100,000)


Proceeds from the exercise of stock options



2,701




2,845


Payment of employee tax withholding related to RSUs and PSUs vesting



(5,826)




(3,077)


Net cash used in financing activities



(59,574)




(118,450)


Effect of exchange rate changes on cash and cash equivalents



941




(1,013)


Net increase in cash, cash equivalents and restricted cash



73,491




9,215


Cash, cash equivalents and restricted cash - beginning of period



139,722




109,115


Cash, cash equivalents and restricted cash - end of period


$

213,213



$

118,330


 

VERRA MOBILITY CORPORATION

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,


($ in thousands)


2024



2023



2024



2023


Net income


$

34,732



$

30,308



$

98,104



$

53,993


Interest expense, net



18,723




20,384




57,203




65,842


Income tax provision



13,761




11,497




36,953




31,864


Depreciation and amortization



26,631




27,530




80,982




86,835


EBITDA



93,847




89,719




273,242




238,534


Transaction and other related expenses (i)



2,483




152




4,124




484


Transformation expenses (ii)



983




1,582




2,552




2,306


Change in fair value of private placement warrants(iii)






(553)







24,966


Loss (gain) on interest rate swap (iv)



913




60




494




(1,947)


Loss on extinguishment of debt (v)



33




1,975




628




3,533


Stock-based compensation (vi)



6,438




4,443




18,586




12,346


Adjusted EBITDA


$

104,697



$

97,378



$

299,626



$

280,222















Adjusted EBITDA Margin



46

%



46

%



46

%



46

%





(i)

Transaction and other related expenses for the three and nine months ended September 30, 2024 primarily relates to deal costs incurred for potential acquisitions and debt modification costs related to the February 2024 refinancing of our First Lien term loan.


(ii)

Transformation expenses consist of severance and other employee separation costs related to exit activities initiated during each respective period.


(iii)

This is related to adjustments to the private placement warrants liability from the re-measurement to fair value at the end of the reporting period.


(iv)

Loss (gain) on interest rate swap is associated with the derivative instrument re-measured to fair value at the end of each reporting period offset by the related monthly cash receipts/payments. 


(v)

Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the refinancing of our debt for the nine months ended September 30, 2024 and from the early repayments of debt for the three and nine months ended September 30, 2023.


(vi)

Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.

 

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,


($ in thousands)


2024



2023



2024



2023


Net cash provided by operating activities


$

108,787



$

62,444



$

183,155



$

170,371


Purchases of installation and service parts and property and equipment



(23,676)




(10,403)




(52,009)




(40,501)


Free Cash Flow



85,111




52,041




131,146




129,870


Legal settlement









31,500





Income tax effect on adjustment (1)









(9,450)





Adjusted Free Cash Flow


$

85,111



$

52,041



$

153,196



$

129,870






(1)

The annual estimated effective tax rate to calculate the income tax effect on the legal settlement adjustment is 30.0%.

 

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,


(In thousands, except per share data)


2024



2023



2024



2023


Net income


$

34,732



$

30,308



$

98,104



$

53,993


Amortization of intangibles



16,774




18,921




50,260




60,923


Transaction and other related expenses



2,483




152




4,124




484


Transformation expenses



983




1,582




2,552




2,306


Change in fair value of private placement warrants






(553)







24,966


Change in fair value of interest rate swap



1,169




202




1,316




(3,361)


Loss on extinguishment of debt



33




1,975




628




3,533


Stock-based compensation



6,438




4,443




18,586




12,346


Total adjustments before income tax effect



27,880




26,722




77,466




101,197


Income tax effect on adjustments



(8,354)




(7,843)




(23,051)




(22,536)


Total adjustments after income tax effect



19,526




18,879




54,415




78,661


Adjusted Net Income


$

54,258



$

49,187



$

152,519



$

132,654















Adjusted EPS


$

0.32



$

0.29



$

0.91



$

0.84


Diluted weighted average shares outstanding



167,624




169,497




168,318




157,133


Annual estimated effective income tax rate (1)



30

%



31

%



30

%



31

%





(1)

The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condensed consolidated statements of operations which includes the discrete items.

 

RECONCILIATION OF TOTAL LONG-TERM DEBT TO NET DEBT AND NET LEVERAGE (Unaudited)


($ in thousands)


September 30,
2024



December 31,
2023


Total long-term debt, net of current portion


$

1,037,174



$

1,029,113


Current portion of long-term debt






9,019


Total long-term debt



1,037,174




1,038,132


Original issue discounts



2,745




3,646


Unamortized deferred financing costs



10,159




12,809


Total long-term debt, excluding original issue discounts and unamortized deferred financing costs



1,050,078




1,054,587


Cash and cash equivalents



(206,088)




(136,309)


Net Debt


$

843,990



$

918,278









Net Leverage


2.2x



2.5x


Trailing twelve months adjusted EBITDA



390,906




371,502









Adjusted EBITDA







Nine months ended September 30, 2024


$

299,626



$


Nine months ended September 30, 2023






280,222


Three months ended December 31, 2023



91,280




91,280


Trailing twelve months adjusted EBITDA


$

390,906



$

371,502


 

Investor Relations Contact 
Mark Zindler
mark.zindler@verramobility.com 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/verra-mobility-announces-third-quarter-2024-financial-results-302293095.html

SOURCE Verra Mobility

FAQ

What was Verra Mobility's (VRRM) revenue in Q3 2024?

Verra Mobility reported total revenue of $225.6 million in Q3 2024, representing a 7% increase compared to $209.9 million in Q3 2023.

How much did Verra Mobility's (VRRM) Commercial Services segment grow in Q3 2024?

Verra Mobility's Commercial Services segment revenue grew 11% to $109.1 million in Q3 2024, compared to $98.1 million in Q3 2023.

What was Verra Mobility's (VRRM) net income for Q3 2024?

Verra Mobility reported a net income of $34.7 million, or $0.21 per share, in Q3 2024.

How much cash does Verra Mobility (VRRM) have available for share repurchases as of Q3 2024?

As of September 30, 2024, Verra Mobility has approximately $48.5 million remaining available under its authorized share repurchase program.

Verra Mobility Corporation

NASDAQ:VRRM

VRRM Rankings

VRRM Latest News

VRRM Stock Data

3.78B
163.43M
0.83%
100.83%
1.53%
Infrastructure Operations
Transportation Services
Link
United States of America
MESA