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Published: 2021-11-04 00:00:00 ET
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Exhibit 99.1

 

img124761870_0.jpg 

 

Verra Mobility Reports Third Quarter 2021 Financial Results

 

Net income for the third quarter of 2021 was $27.3 million, or $0.14 per diluted share
Reports third quarter revenue of $162.1 million; total year-to-date revenue of $380.6 million
Generated cash flows from operations of $129.3 million

 

Mesa, AZ, November 4, 2021 – Verra Mobility (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the three and nine months ended September 30, 2021.

“Our team delivered strong results for the third quarter with a total revenue of $162.1 million and significant profit growth in both of our business segments,” said David Roberts, Chief Executive Officer of Verra Mobility. “With rental car travel and the use of cashless tolling growing steadily, our Commercial Services segment achieved a 75% increase in revenue year-over-year. Our Government Solutions segment saw 61% revenue growth from increases in both service revenue and product sales year-over-year. Additionally, we made great progress this quarter with the integration of Redflex, and expect to continue achieving synergies. Redflex’s automated safety technology and intelligent transportation solutions have strengthened our Government Solutions portfolio and expanded our customer base globally.”

Third Quarter 2021 Financial Highlights

Revenue: Total revenue for the third quarter of 2021 was $162.1 million, an increase of 67% compared to $96.9 million for the third quarter of 2020. The increase was attributable to service revenue resulting from improved travel demand that positively impacted the rental car industry in our Commercial Services segment, and growth in both speed and red-light programs from the inclusion of Redflex operations in our Government Solutions segment.
Net income: Net income for the third quarter of 2021 was $27.3 million, or $0.14 per share based on 165.4 million diluted weighted average shares outstanding. Net income for the comparable 2020 period was $11.1 million, or $0.07 per share, based on 162.6 million diluted weighted average shares outstanding.
Adjusted Earnings Per Share (EPS): Adjusted EPS for the third quarter of 2021 was $0.27 per share compared to $0.17 per share for the third quarter of 2020.
Adjusted EBITDA: Adjusted EBITDA was $82.1 million for the third quarter of 2021, compared to $53.5 million for the same period last year. Adjusted EBITDA margin was 51% of total revenue for 2021 and 55% for 2020.

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The Company reports its results of operations based on two operating segments:

Commercial Services delivers market-leading 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 market-leading automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement related to speed, red-light, school bus, and city bus lane management.

Third Quarter 2021 Segment Detail

The Commercial Services segment generated total revenue of $77.3 million, a 75% increase compared to $44.2 million in the same period in 2020. Segment profit was $51.3 million, a 66% increase from $30.8 million in the prior year. The significant increases in revenue and profit resulted from improved travel demand that positively impacted the rental car industry. The segment profit margin was 66% for 2021 and 70% for the same period in 2020.
The Government Solutions segment generated total revenue of $84.8 million, a 61% increase compared to $52.8 million in the same period in 2020. The increase was due to growth in service revenue and product sales from the inclusion of Redflex operations with no comparable amounts in the prior year. The segment profit was $30.0 million, a 32% increase from $22.7 million in the prior year. The segment profit margin was 35% for 2021 and 43% for 2020.

Year-To-Date 2021 Financial Highlights

Revenue: Total revenue for year-to-date 2021 was $380.6 million, an increase of 30% compared to $293.4 million for year-to-date 2020. Redflex contributed $22.8 million to the revenue growth, and the remaining increase was due to service revenue resulting from improved travel demand that positively impacted the rental car industry in our Commercial Services segment, and growth in both speed and red-light programs in our Government Solutions segment.
Net income: Net income for year-to-date 2021 was $22.4 million, or $0.14 per share, based on 164.8 million diluted weighted average shares outstanding. Net income for the comparable 2020 period was $9.5 million, or $0.06 per share, based on 162.0 million diluted weighted average shares outstanding.
Adjusted EBITDA: Adjusted EBITDA was $191.0 million for year-to-date 2021, compared to $136.0 for year-to-date 2020. Adjusted EBITDA margin was 50% of total revenue for year-to-date 2021 and 46% for 2020.

Liquidity: As of September 30, 2021, cash and cash equivalents were $128.2 million and we generated $129.3 million in cash flows from operations for 2021. As of September 30, 2021, we had total debt of $999.7 million, net of cash on hand, our net debt was $871.4 million, and a $62.2 million availability to borrow on the revolver that is undrawn.

Restatement of Previously Reported Financial Information

We restated our consolidated financial statements as of December 31, 2020 and 2019 and for the years ended December 31, 2020, 2019, and 2018, including interim periods within the fiscal years 2020 and 2019. This was based on recent guidance by the U.S. Securities and Exchange Commission (the “SEC”) on April 12, 2021 regarding the accounting for warrants issued by special purpose acquisition companies. As a result, this press release includes restated information for the affected prior periods which should be read in conjunction with the restated information in our Annual Report on Form 10-K/A filed with the SEC on May 17, 2021. The new accounting treatment for warrants impacts net income in prior periods but has no impact on revenue, Adjusted EBITDA, or total cash flows.

Redflex Acquisition: On June 17, 2021, we completed the acquisition of Redflex Holdings Limited, a public company limited by shares, incorporated in Australia and listed on the Australian Securities Exchange (“Redflex”). Redflex is a provider of intelligent traffic management products and services that are sold and managed in the Asia Pacific, North America, Europe, and Middle East regions. Redflex develops, manufactures, and operates a wide range

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of platform-based solutions, utilizing advanced sensor and image capture technologies that enable active management of state and local motorways.

Conference Call Details

Date: November 04, 2021

Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)

U.S. and Canadian Callers Dial-in: (800) 239-9838

Outside of U.S. and Canada Dial-in: (323) 794-8554 for international callers with conference ID #7088112

Webcast Information: Available live in the “Investor Relations” section of the Company’s website at http://ir.verramobility.com.

An audio replay of the call will also be available until 11:59 p.m. Eastern Time on November 18, 2021 by dialing (844) 512-2921 for the U.S. or Canada and (412) 317-6671 for international callers and entering passcode #7088112. In addition, an archived webcast will be available in the “News & Events” section of the Investor Relations page of the Company’s website at http://ir.verramobility.com.

 

About Verra Mobility

Verra Mobility is committed to developing and using the latest in technology and data intelligence to help make transportation safer and easier. As a global company, Verra Mobility sits at the center of the mobility ecosystem – one that brings together vehicles, devices, information, and people to solve complex challenges faced by our customers and the constituencies they serve.

Verra Mobility serves the world’s largest commercial fleets and rental car companies to manage tolling transactions and violations for millions of vehicles. As a leading provider of connected systems, Verra Mobility processes millions of transactions each year through integration and connectivity with hundreds of tolling and issuing authorities. Verra Mobility also fosters the development of safe cities, partnering with law enforcement agencies, transportation departments and school districts mainly across North America operating thousands of red-light, speed, bus lane and school bus stop arm safety cameras. Arizona-based Verra Mobility operates in North America, Australia, Europe and Asia. For more information, visit www.verramobility.com.

Forward-Looking Statements

This press release contains forward-looking statements which address the Company’s 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. Examples of forward-looking statements include, among others, statements regarding the benefits of the Company’s strategic acquisitions, changes in the market for our products and services, expected operating results, such as revenue growth, expansion plans and opportunities, and earnings guidance related to 2021 financial and operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements. These factors include, but are not limited to: (1) the impact of payment delays related to the outstanding receivables with the City of New York Department of Transportation (“NYCDOT”) (2) the disruption to our business and results of operations as a result of the COVID-19 pandemic; (3) the impact of the COVID-19 pandemic on our revenues from key customers in the rental car industry and from photo enforcement programs; (4) customer concentration in our Commercial Services and Government Solutions segments; (5) decreases in the prevalence of automated photo enforcement or the use of tolling; (6) risks and uncertainties related to our government contracts, including but not limited to administrative hurdles, legislative changes, termination rights, audits and investigations; (7) decreased interest in outsourcing from our customers; (8) our ability to properly perform under our contracts and otherwise satisfy our customers; (9) our ability to compete in a highly competitive and rapidly evolving market; (10) our ability to keep up with technological developments and changing customer preferences; (11) the success of our new products and changes to existing products and services; (12) our ability to successfully

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integrate our recent or future acquisitions; (13) failures in or breaches of our networks or systems, including as a result of cyber-attacks; and (14) other risks and uncertainties indicated from time to time in documents filed or to be filed with the SEC by Verra Mobility. The forward-looking statements herein represent the judgment of the Company, as of the date of this release, and Verra Mobility disclaims any intent or obligation to update forward-looking statements. This press release should be read in conjunction with the information included in the Company’s other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand the Company’s reported financial results and our business outlook for future periods.

Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses 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 Net Income and Adjusted EPS are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently 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.

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

September 30,
2021

 

 

December 31,
2020

 

($ in thousands except per share data)

 

 

 

 

(As restated)

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

128,247

 

 

$

120,259

 

Restricted cash

 

 

2,945

 

 

 

633

 

Accounts receivable (net of allowance for credit loss of $14.7 million and
$11.5 million at September 30, 2021 and December 31, 2020, respectively)

 

 

174,463

 

 

 

168,783

 

Unbilled receivables

 

 

27,422

 

 

 

14,045

 

Prepaid expenses and other current assets

 

 

39,054

 

 

 

24,317

 

Total current assets

 

 

372,131

 

 

 

328,037

 

Installation and service parts, net

 

 

10,596

 

 

 

7,944

 

Property and equipment, net

 

 

95,786

 

 

 

70,284

 

Operating lease assets

 

 

32,960

 

 

 

29,787

 

Intangible assets, net

 

 

317,031

 

 

 

342,139

 

Goodwill

 

 

637,739

 

 

 

586,435

 

Other non-current assets

 

 

15,673

 

 

 

2,699

 

Total assets

 

$

1,481,916

 

 

$

1,367,325

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

48,632

 

 

$

34,509

 

Accrued liabilities

 

 

53,663

 

 

 

15,636

 

Payable to related party pursuant to tax receivable agreement, current portion

 

 

5,202

 

 

 

4,791

 

Current portion of long-term debt

 

 

9,433

 

 

 

9,104

 

Total current liabilities

 

 

116,930

 

 

 

64,040

 

Long-term debt, net of current portion

 

 

965,362

 

 

 

832,941

 

Operating lease liabilities, net of current portion

 

 

31,570

 

 

 

27,986

 

Payable to related party pursuant to tax receivable agreement, net of current portion

 

 

64,329

 

 

 

67,869

 

Private placement warrant liabilities

 

 

35,933

 

 

 

30,866

 

Asset retirement obligation

 

 

10,708

 

 

 

6,409

 

Deferred tax liabilities, net

 

 

12,378

 

 

 

21,148

 

Other long-term liabilities

 

 

1,040

 

 

 

494

 

Total liabilities

 

 

1,238,250

 

 

 

1,051,753

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value

 

 

 

 

 

 

Common stock, $0.0001 par value

 

 

16

 

 

 

16

 

Common stock contingent consideration

 

 

36,575

 

 

 

36,575

 

Additional paid-in capital

 

 

311,003

 

 

 

373,620

 

Accumulated deficit

 

 

(100,482

)

 

 

(94,850

)

Accumulated other comprehensive (loss) income

 

 

(3,446

)

 

 

211

 

Total stockholders' equity

 

 

243,666

 

 

 

315,572

 

Total liabilities and stockholders' equity

 

$

1,481,916

 

 

$

1,367,325

 

 

 

 

 

 

5

 


 

 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Unaudited)

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

($ in thousands, except per share data)

 

 

 

 

(As restated)

 

 

 

 

 

(As restated)

 

Service revenue

 

$

141,811

 

 

$

82,980

 

 

$

348,000

 

 

$

245,292

 

Product sales

 

 

20,284

 

 

 

13,928

 

 

 

32,610

 

 

 

48,138

 

Total revenue

 

 

162,095

 

 

 

96,908

 

 

 

380,610

 

 

 

293,430

 

Cost of service revenue

 

 

1,412

 

 

 

907

 

 

 

3,624

 

 

 

3,139

 

Cost of product sales

 

 

9,391

 

 

 

7,088

 

 

 

15,562

 

 

 

24,838

 

Operating expenses

 

 

48,309

 

 

 

26,544

 

 

 

115,235

 

 

 

85,502

 

Selling, general and administrative expenses

 

 

31,580

 

 

 

17,511

 

 

 

86,252

 

 

 

64,218

 

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

 

 

29,529

 

 

 

29,590

 

 

 

84,806

 

 

 

88,002

 

Total costs and expenses

 

 

120,221

 

 

 

81,640

 

 

 

305,479

 

 

 

265,699

 

Income from operations

 

 

41,874

 

 

 

15,268

 

 

 

75,131

 

 

 

27,731

 

Interest expense, net

 

 

11,637

 

 

 

9,578

 

 

 

32,481

 

 

 

31,568

 

Change in fair value of private placement warrants

 

 

(5,067

)

 

 

(4,400

)

 

 

5,067

 

 

 

(11,533

)

Tax receivable agreement liability adjustment

 

 

 

 

 

 

 

 

1,661

 

 

 

4,446

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

5,334

 

 

 

 

Other income, net

 

 

(3,494

)

 

 

(4,982

)

 

 

(9,305

)

 

 

(9,430

)

Total other expenses

 

 

3,076

 

 

 

196

 

 

 

35,238

 

 

 

15,051

 

Income before income taxes

 

 

38,798

 

 

 

15,072

 

 

 

39,893

 

 

 

12,680

 

Income tax provision

 

 

11,492

 

 

 

3,986

 

 

 

17,510

 

 

 

3,176

 

Net income

 

$

27,306

 

 

$

11,086

 

 

$

22,383

 

 

$

9,504

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

(3,818

)

 

 

2,467

 

 

 

(3,657

)

 

 

(1,408

)

Total comprehensive income

 

$

23,488

 

 

$

13,553

 

 

$

18,726

 

 

$

8,096

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.17

 

 

$

0.07

 

 

$

0.14

 

 

$

0.06

 

Diluted

 

$

0.14

 

 

$

0.07

 

 

$

0.14

 

 

$

0.06

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

159,358

 

 

 

161,744

 

 

 

161,334

 

 

 

161,460

 

Diluted

 

 

165,431

 

 

 

162,568

 

 

 

164,808

 

 

 

161,995

 

 

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

($ in thousands)

 

 

 

 

(As restated)

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income

 

$

22,383

 

 

$

9,504

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

84,756

 

 

 

87,828

 

Amortization of deferred financing costs and discounts

 

 

3,854

 

 

 

3,725

 

Change in fair value of private placement warrants

 

 

5,067

 

 

 

(11,533

)

Tax receivable agreement liability adjustment

 

 

1,661

 

 

 

4,446

 

Loss on extinguishment of debt

 

 

5,334

 

 

 

 

Credit loss expense

 

 

6,716

 

 

 

10,628

 

Deferred income taxes

 

 

(8,677

)

 

 

(3,920

)

Stock-based compensation

 

 

10,184

 

 

 

9,192

 

Gain from third-party insurance proceeds

 

 

 

 

 

(1,400

)

Other

 

 

238

 

 

 

1,075

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(5,442

)

 

 

(58,913

)

Unbilled receivables

 

 

(5,655

)

 

 

3,866

 

Prepaid expenses and other assets

 

 

(5,014

)

 

 

8,655

 

Accounts payable and accrued liabilities

 

 

15,596

 

 

 

(15,134

)

Other liabilities

 

 

(1,717

)

 

 

(3,669

)

Net cash provided by operating activities

 

 

129,284

 

 

 

44,350

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Acquisition of business, net of cash and restricted cash acquired

 

 

(107,004

)

 

 

 

Purchases of installation and service parts and property and equipment

 

 

(15,633

)

 

 

(18,317

)

Cash proceeds from the sale of assets

 

 

225

 

 

 

67

 

Net cash used in investing activities

 

 

(122,412

)

 

 

(18,250

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Borrowings of long-term debt

 

 

996,750

 

 

 

 

Repayment of long-term debt

 

 

(882,905

)

 

 

(26,503

)

Payment of debt issuance costs

 

 

(6,628

)

 

 

(960

)

Payment of debt extinguishment costs

 

 

(1,066

)

 

 

 

Share repurchase and retirement

 

 

(100,000

)

 

 

 

Proceeds from exercise of stock options

 

 

108

 

 

 

 

Payment of employee tax withholding related to RSUs vesting

 

 

(924

)

 

 

(486

)

Net cash provided by (used in) financing activities

 

 

5,335

 

 

 

(27,949

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(1,907

)

 

 

(874

)

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

 

 

10,300

 

 

 

(2,723

)

Cash, cash equivalents and restricted cash - beginning of period

 

 

120,892

 

 

 

132,430

 

Cash, cash equivalents and restricted cash - end of period

 

$

131,192

 

 

$

129,707

 

 

 

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VERRA MOBILITY CORPORATION

 

ADJUSTED EBITDA RECONCILIATION (Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

($ in thousands)

 

 

 

 

(As restated)

 

 

 

 

 

(As restated)

 

Net income

 

$

27,306

 

 

$

11,086

 

 

$

22,383

 

 

$

9,504

 

Interest expense, net

 

 

11,637

 

 

 

9,578

 

 

 

32,481

 

 

 

31,568

 

Income tax provision

 

 

11,492

 

 

 

3,986

 

 

 

17,510

 

 

 

3,176

 

Depreciation and amortization

 

 

29,529

 

 

 

29,419

 

 

 

84,756

 

 

 

87,828

 

EBITDA

 

 

79,964

 

 

 

54,069

 

 

 

157,130

 

 

 

132,076

 

Transaction and other related expenses (i)

 

 

2,678

 

 

 

132

 

 

 

10,110

 

 

 

735

 

Transformation expenses (ii)

 

 

773

 

 

 

575

 

 

 

1,468

 

 

 

1,090

 

Change in fair value of private placement warrants (iii)

 

 

(5,067

)

 

 

(4,400

)

 

 

5,067

 

 

 

(11,533

)

Tax receivable agreement liability adjustment (iv)

 

 

 

 

 

 

 

 

1,661

 

 

 

4,446

 

Loss on extinguishment of debt (v)

 

 

 

 

 

 

 

 

5,334

 

 

 

 

Stock-based compensation (vi)

 

 

3,703

 

 

 

3,153

 

 

 

10,184

 

 

 

9,192

 

Adjusted EBITDA

 

$

82,051

 

 

$

53,529

 

 

$

190,954

 

 

$

136,006

 

 

(i)
Transaction and other related expenses incurred in the three and nine months ended September 30, 2021 primarily related to costs associated with our Redflex acquisition and other deal costs, and certain costs for the debt offering of senior unsecured notes and refinancing the first lien term loan in March 2021. Transaction and other related expenses incurred in 2020 related to costs associated with our Pagatelia acquisition and certain costs for refinancing our debt.
(ii)
Transformation expenses consist of severance and other employee separation costs related to exit activities initiated during each respective period.
(iii)
This consists of adjustments to the private placement warrants liability from the re-measurement to fair value at the end of each reporting period.
(iv)
We recorded $1.7 million and $4.4 million of charges for the nine months ended September 30, 2021 and 2020, respectively. The TRA liability adjustment in 2021 is arising from higher estimated state tax rates due to changes in statutory rates, whereas in 2020 it is arising from higher estimated state tax rates due to a change in apportionment.
(v)
The loss on extinguishment of debt for the nine months ended September 30, 2021 consists of a $4.0 million write-off of pre-existing deferred financing costs and $1.3 million of lender and third-party costs associated with the issuance of the new first lien term loan.
(vi)
Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation 2018 Equity Incentive Plan.

 

 

FREE CASH FLOW (Unaudited)

 

 

 

Nine Months Ended September 30,

 

($ in thousands)

 

2021

 

 

2020

 

Net cash provided by operating activities

 

$

129,284

 

 

$

44,350

 

Purchases of installation and service parts and property and equipment

 

 

(15,633

)

 

 

(18,317

)

Free cash flow

 

$

113,651

 

 

$

26,033

 

 

 

 

 

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ADJUSTED EPS (Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

(In thousands, except per share data)

 

 

 

 

(As restated)

 

 

 

 

 

(As restated)

 

Net income

 

$

27,306

 

 

$

11,086

 

 

$

22,383

 

 

$

9,504

 

Amortization of intangibles

 

 

22,896

 

 

 

23,559

 

 

 

66,858

 

 

 

70,619

 

Transaction and other related expenses

 

 

2,678

 

 

 

132

 

 

 

10,110

 

 

 

735

 

Transformation expenses

 

 

773

 

 

 

575

 

 

 

1,468

 

 

 

1,090

 

Change in fair value of private placement warrants

 

 

(5,067

)

 

 

(4,400

)

 

 

5,067

 

 

 

(11,533

)

Tax receivable agreement liability adjustment

 

 

 

 

 

 

 

 

1,661

 

 

 

4,446

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

5,334

 

 

 

 

Stock-based compensation

 

 

3,703

 

 

 

3,153

 

 

 

10,184

 

 

 

9,192

 

Total adjustments before income tax effect

 

 

24,983

 

 

 

23,019

 

 

 

100,682

 

 

 

74,549

 

Income tax effect on adjustments

 

 

(7,400

)

 

 

(6,088

)

 

 

(44,192

)

 

 

(18,673

)

Total adjustments after income tax effect

 

 

17,583

 

 

 

16,931

 

 

 

56,490

 

 

 

55,876

 

Adjusted Net Income

 

$

44,889

 

 

$

28,017

 

 

$

78,873

 

 

$

65,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EPS

 

$

0.27

 

 

$

0.17

 

 

$

0.48

 

 

$

0.40

 

Diluted weighted average shares outstanding

 

 

165,431

 

 

 

162,568

 

 

 

164,808

 

 

 

161,995

 

 

 

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 other transactions that management believes are not indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities. As a result, they may not be comparable to similarly titled performance measures presented by other companies.

 

We use these metrics to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. In addition to Adjusted EBITDA being a significant measure of performance for management purposes, we also believe that this presentation provides 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. EBITDA and Adjusted EBITDA have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, or other consolidated income or cash flow data prepared in accordance with GAAP.

 

Free Cash Flow

We define Free Cash Flow as cash flow from operations less capital expenditures.

 

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.

 

Adjusted EPS

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

 

 

 

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Investor Relations Contact

 

IR@verramobility.com

 

 

 

 

 

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