MESA, Ariz., Aug. 9, 2021 /PRNewswire/ --
- Net income for the second quarter of 2021 was $4.0 million, or $0.02 per share
- Reports second quarter revenue of $128.7
million; total year-to-date revenue of $218.5 million
- Generated cash flows from operations of $37.5 million
- Collected $28.1 million in the
second quarter of 2021 against the outstanding City of New York
Department of Transportation receivable
- Provides full year 2021 guidance; expects stronger growth in
second half of 2021
Verra Mobility (NASDAQ: VRRM), a leading provider of smart
mobility technology solutions, announced today the financial
results for the three and six months ended June 30, 2021.
"We delivered second-quarter revenue of $128.7 million as a surge in leisure travel led
to solid growth and profitability across both business segments,"
stated David Roberts, Chief
Executive Officer of Verra Mobility. "This stellar performance was
led by our Commercial Services segment, which grew triple digits
year-over-year and 41% sequentially as robust demand for rental
cars remained strong in our key tolling markets. Our Government
Solutions segment continues to benefit from the NYC school zone
speed camera program. In addition, traffic patterns improved
throughout the quarter as local agencies reactivated their
red-light and speed enforcement programs, resulting in nearly 41%
year-over-year growth in our service revenue. On a consolidated
basis, strong flow-through in both business segments led to
triple-digit year-over-year adjusted EBITDA growth with margins
improving to approximately 53%. Overall, we are very pleased with
our performance for the first half of 2021. Given the improving
business metrics and favorable travel trends, we are reintroducing
guidance to reflect a much stronger second half of 2021."
Second Quarter 2021 Financial Highlights
- Revenue: Total revenue for the second quarter of 2021
was $128.7 million, an increase of
61% compared to $79.8 million for the
second 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 in our
Government Solutions segment.
- Net income (loss): Net income for the second quarter of
2021 was $4.0 million, or
$0.02 per share based on 166.0
million diluted weighted average shares outstanding. Net loss for
the comparable 2020 period was $(23.7)
million, or $(0.15) per share,
based on 161.7 million diluted weighted average shares
outstanding.
- Adjusted Earnings Per Share (EPS): Adjusted EPS for the
second quarter of 2021 was $0.10 per
share compared to $0.07 per share for
the second quarter of 2020.
- Adjusted EBITDA: Adjusted EBITDA was $68.6 million for the second quarter of 2021,
compared to $27.6 million for the
same period last year. Adjusted EBITDA margin was 53% of total
revenue for 2021 and 35% for 2020.
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.
Second Quarter 2021 Segment Detail
- The Commercial Services segment generated total revenue of
$66.5 million, a 144% increase
compared to $27.3 million in the same
period in 2020. Segment profit was $42.7
million, a 494% increase from $7.2
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 64% for 2021 and 26% for the same period in 2020.
- The Government Solutions segment generated total revenue of
$62.2 million, an 18% increase
compared to $52.5 million in the same
period in 2020. The increase was due to growth in both speed and
red-light programs which was partially offset by a decrease in
product sales due to a single customer's buying patterns
variability year over year. The segment profit was $25.5 million, a 25% increase from $20.3 million in the prior year. The segment
profit margin was 41% for 2021 and 39% for 2020.
First Half of 2021 Financial Highlights
- Revenue: Total revenue for the first half of 2021 was
$218.5 million, an increase of 11%
compared to $196.5 million for the
first half 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 in our
Government Solutions segment.
- Net loss: Net loss for the first half of 2021 was
$4.9 million, or $0.03 per share, based on 162.3 million diluted
weighted average shares outstanding. Net loss for the comparable
2020 period was $1.6 million, or
$0.01 per share, based on 161.3
million diluted weighted average shares outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $108.9 million for the first half of 2021,
compared to $82.5 million in the
first half of 2020. Adjusted EBITDA margin was 50% of total revenue
for the first half of 2021 and 42% for 2020.
Liquidity: As of June 30,
2021, cash and cash equivalents were $147.3 million and we generated $37.5 million in cash flows from operations for
2021. As of June 30, 2021, we had
total debt of $1.0 billion, net of
cash on hand, our net debt was $854.5
million, and a $57.0 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 ("SPACs").
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 loss in prior periods
but has no impact on revenue, Adjusted EBITDA, or total cash
flows.
Redflex Acquisition: On June 17,
2021, we completed the previously announced 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, United Kingdom,
Europe, and Middle East regions. Redflex develops,
manufactures, and operates a wide range of platform-based
solutions, utilizing advanced sensor and image capture technologies
that enable active management of state and local motorways.
Pursuant to the Scheme Implementation Agreement entered into by
us and Redflex on January 21, 2021,
as amended by the Deed of Amendment and Consent, dated April 30, 2021, we purchased one hundred percent
of the outstanding equity of Redflex at A$0.96 per share at consideration of A$152.5 million, or approximately US$117.9 million.
Business Outlook:
Guidance provided by Verra Mobility is subject to change as a
variety of factors can affect actual results. Those factors are
identified in the safe harbor language at the end of this press
release.
Verra Mobility has provided the following forward-looking
non-GAAP financial measures: Adjusted EBITDA, Free Cash Flow,
Adjusted Net Income and Adjusted EPS. The business metrics are
defined below and the Company has provided reconciliations of these
forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures. In addition, the recent
acquisition of Redflex includes preliminary allocations of the fair
values of the assets acquired and liabilities assumed as of the
acquisition date. Purchase price allocations are subject to change
within the measurement period (up to one year from the acquisition
date).
2021 Full Year Guidance:
- Consolidated revenue, which includes contribution from Redflex
is expected to be in the range of $510
million and $530 million, a
year-over-year increase of 30% to 35% from 2020 full year revenue
and 14% to 18% compared to 2019 full year revenue.
- Consolidated Adjusted EBITDA, which includes contribution from
Redflex is expected to be in the range of $240 to $245
million as compared to $181.8
million in 2020 and $241.4
million in 2019.
Conference Call Details
Date: August 09, 2021
Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)
U.S. and Canadian
Callers Dial-in: (800) 263-0877
Outside of U.S. and
Canada Dial-in: (646) 828-8143 with
conference ID #4136050
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 August 23, 2021, by
dialing (844) 512-2921 for
the U.S. or Canada and
(412) 317-6671 for international callers and entering
passcode #9932116. 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
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.
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
June 30,
2021
|
|
|
December 31,
2020
|
|
($ in thousands
except per share data)
|
|
|
|
|
|
(As
restated)
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
147,346
|
|
|
$
|
120,259
|
|
Restricted
cash
|
|
|
3,159
|
|
|
|
633
|
|
Accounts receivable
(net of allowance for credit loss of $12.7 million and
$11.5 million at June 30, 2021 and
December 31, 2020, respectively)
|
|
|
214,925
|
|
|
|
168,783
|
|
Unbilled
receivables
|
|
|
23,871
|
|
|
|
14,045
|
|
Prepaid expenses and
other current assets
|
|
|
32,255
|
|
|
|
24,317
|
|
Total current
assets
|
|
|
421,556
|
|
|
|
328,037
|
|
Installation and
service parts, net
|
|
|
10,186
|
|
|
|
7,944
|
|
Property and
equipment, net
|
|
|
94,308
|
|
|
|
70,284
|
|
Operating lease
assets
|
|
|
34,662
|
|
|
|
29,787
|
|
Intangible assets,
net
|
|
|
340,637
|
|
|
|
342,139
|
|
Goodwill
|
|
|
641,517
|
|
|
|
586,435
|
|
Other non-current
assets
|
|
|
16,325
|
|
|
|
2,699
|
|
Total
assets
|
|
$
|
1,559,191
|
|
|
$
|
1,367,325
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
47,403
|
|
|
$
|
34,509
|
|
Accrued
liabilities
|
|
|
44,728
|
|
|
|
15,636
|
|
Payable to related
party pursuant to tax receivable agreement, current
portion
|
|
|
5,202
|
|
|
|
4,791
|
|
Current portion of
long-term debt
|
|
|
9,410
|
|
|
|
9,104
|
|
Total current
liabilities
|
|
|
106,743
|
|
|
|
64,040
|
|
Long-term debt, net of
current portion
|
|
|
966,066
|
|
|
|
832,941
|
|
Operating lease
liabilities, net of current portion
|
|
|
32,720
|
|
|
|
27,986
|
|
Payable to related
party pursuant to tax receivable agreement, net of current
portion
|
|
|
64,329
|
|
|
|
67,869
|
|
Private placement
warrant liabilities
|
|
|
41,000
|
|
|
|
30,866
|
|
Asset retirement
obligation
|
|
|
10,059
|
|
|
|
6,409
|
|
Deferred tax
liabilities, net
|
|
|
20,790
|
|
|
|
21,148
|
|
Other long-term
liabilities
|
|
|
1,059
|
|
|
|
494
|
|
Total
liabilities
|
|
|
1,242,766
|
|
|
|
1,051,753
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Preferred stock,
$.0001 par value
|
|
|
—
|
|
|
|
—
|
|
Common stock, $.0001
par value
|
|
|
16
|
|
|
|
16
|
|
Common stock
contingent consideration
|
|
|
36,575
|
|
|
|
36,575
|
|
Additional paid-in
capital
|
|
|
379,235
|
|
|
|
373,620
|
|
Accumulated
deficit
|
|
|
(99,773)
|
|
|
|
(94,850)
|
|
Accumulated other
comprehensive income
|
|
|
372
|
|
|
|
211
|
|
Total stockholders'
equity
|
|
|
316,425
|
|
|
|
315,572
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,559,191
|
|
|
$
|
1,367,325
|
|
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
AND COMPREHENSIVE
INCOME (LOSS)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
($ in thousands,
except per share data)
|
|
|
|
|
|
(As
restated)
|
|
|
|
|
|
|
(As
restated)
|
|
Service
revenue
|
|
$
|
116,426
|
|
|
$
|
62,815
|
|
|
$
|
206,189
|
|
|
$
|
162,312
|
|
Product
sales
|
|
|
12,231
|
|
|
|
16,994
|
|
|
|
12,326
|
|
|
|
34,210
|
|
Total
revenue
|
|
|
128,657
|
|
|
|
79,809
|
|
|
|
218,515
|
|
|
|
196,522
|
|
Cost of service
revenue
|
|
|
1,332
|
|
|
|
1,013
|
|
|
|
2,212
|
|
|
|
2,232
|
|
Cost of product
sales
|
|
|
6,144
|
|
|
|
9,060
|
|
|
|
6,171
|
|
|
|
17,750
|
|
Operating
expenses
|
|
|
36,434
|
|
|
|
26,699
|
|
|
|
66,926
|
|
|
|
58,958
|
|
Selling, general and
administrative expenses
|
|
|
26,229
|
|
|
|
20,821
|
|
|
|
54,672
|
|
|
|
46,707
|
|
Depreciation,
amortization and (gain) loss on disposal of assets, net
|
|
|
27,012
|
|
|
|
29,166
|
|
|
|
55,277
|
|
|
|
58,412
|
|
Total costs and
expenses
|
|
|
97,151
|
|
|
|
86,759
|
|
|
|
185,258
|
|
|
|
184,059
|
|
Income (loss) from
operations
|
|
|
31,506
|
|
|
|
(6,950)
|
|
|
|
33,257
|
|
|
|
12,463
|
|
Interest expense,
net
|
|
|
11,680
|
|
|
|
9,539
|
|
|
|
20,844
|
|
|
|
21,990
|
|
Change in fair value
of private placement warrants
|
|
|
8,067
|
|
|
|
8,334
|
|
|
|
10,134
|
|
|
|
(7,133)
|
|
Tax receivable
agreement liability adjustment
|
|
|
1,661
|
|
|
|
4,446
|
|
|
|
1,661
|
|
|
|
4,446
|
|
Loss on
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
5,334
|
|
|
|
—
|
|
Other income,
net
|
|
|
(2,798)
|
|
|
|
(1,523)
|
|
|
|
(5,811)
|
|
|
|
(4,448)
|
|
Total other
expenses
|
|
|
18,610
|
|
|
|
20,796
|
|
|
|
32,162
|
|
|
|
14,855
|
|
Income (loss) before
income taxes
|
|
|
12,896
|
|
|
|
(27,746)
|
|
|
|
1,095
|
|
|
|
(2,392)
|
|
Income tax provision
(benefit)
|
|
|
8,904
|
|
|
|
(4,024)
|
|
|
|
6,018
|
|
|
|
(810)
|
|
Net income
(loss)
|
|
$
|
3,992
|
|
|
$
|
(23,722)
|
|
|
$
|
(4,923)
|
|
|
$
|
(1,582)
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in foreign
currency translation adjustment
|
|
|
351
|
|
|
|
(508)
|
|
|
|
161
|
|
|
|
(3,875)
|
|
Total comprehensive
income (loss)
|
|
$
|
4,343
|
|
|
$
|
(24,230)
|
|
|
$
|
(4,762)
|
|
|
$
|
(5,457)
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.02
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.01)
|
|
Diluted
|
|
$
|
0.02
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.01)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
162,378
|
|
|
|
161,710
|
|
|
|
162,338
|
|
|
|
161,317
|
|
Diluted
|
|
|
166,028
|
|
|
|
161,710
|
|
|
|
162,338
|
|
|
|
161,317
|
|
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
($ in
thousands)
|
|
|
|
|
|
(As
restated)
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,923)
|
|
|
$
|
(1,582)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
55,227
|
|
|
|
58,409
|
|
Amortization of
deferred financing costs and discounts
|
|
|
2,722
|
|
|
|
2,106
|
|
Change in fair value
of private placement warrants
|
|
|
10,134
|
|
|
|
(7,133)
|
|
Tax receivable
agreement liability adjustment
|
|
|
1,661
|
|
|
|
4,446
|
|
Loss on extinguishment
of debt
|
|
|
5,334
|
|
|
|
—
|
|
Credit loss
expense
|
|
|
3,863
|
|
|
|
10,723
|
|
Deferred income
taxes
|
|
|
(825)
|
|
|
|
(2,496)
|
|
Stock-based
compensation
|
|
|
6,481
|
|
|
|
6,039
|
|
Other
|
|
|
257
|
|
|
|
691
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(42,970)
|
|
|
|
(43,183)
|
|
Unbilled
receivables
|
|
|
(2,098)
|
|
|
|
7,476
|
|
Prepaid expenses and
other assets
|
|
|
(1,177)
|
|
|
|
7,979
|
|
Accounts payable and
accrued liabilities
|
|
|
4,337
|
|
|
|
(17,863)
|
|
Other
liabilities
|
|
|
(545)
|
|
|
|
(3,069)
|
|
Net cash provided by
operating activities
|
|
|
37,478
|
|
|
|
22,543
|
|
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
|
|
|
(8,257)
|
|
|
|
(14,301)
|
|
Cash proceeds from the
sale of assets
|
|
|
159
|
|
|
|
49
|
|
Net cash used in
investing activities
|
|
|
(115,102)
|
|
|
|
(14,252)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Borrowings of
long-term debt
|
|
|
996,750
|
|
|
|
—
|
|
Repayment of long-term
debt
|
|
|
(881,281)
|
|
|
|
(24,227)
|
|
Payment of debt
issuance costs
|
|
|
(6,507)
|
|
|
|
(922)
|
|
Payment of debt
extinguishment costs
|
|
|
(1,066)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
87
|
|
|
|
—
|
|
Payment of employee
tax withholding related to RSUs vesting
|
|
|
(953)
|
|
|
|
(352)
|
|
Net cash provided by
(used in) financing activities
|
|
|
107,030
|
|
|
|
(25,501)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
207
|
|
|
|
(1,270)
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
|
|
29,613
|
|
|
|
(18,480)
|
|
Cash, cash
equivalents and restricted cash - beginning of period
|
|
|
120,892
|
|
|
|
132,430
|
|
Cash, cash
equivalents and restricted cash - end of period
|
|
$
|
150,505
|
|
|
$
|
113,950
|
|
VERRA MOBILITY
CORPORATION
|
ADJUSTED EBITDA
RECONCILIATION (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
($ in
thousands)
|
|
|
|
|
|
(As
restated)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
3,992
|
|
|
$
|
(23,722)
|
|
|
$
|
(4,923)
|
|
|
$
|
(1,582)
|
|
Interest expense,
net
|
|
|
11,680
|
|
|
|
9,539
|
|
|
|
20,844
|
|
|
|
21,990
|
|
Income tax provision
(benefit)
|
|
|
8,904
|
|
|
|
(4,024)
|
|
|
|
6,018
|
|
|
|
(810)
|
|
Depreciation and
amortization
|
|
|
27,013
|
|
|
|
29,159
|
|
|
|
55,227
|
|
|
|
58,409
|
|
EBITDA
|
|
|
51,589
|
|
|
|
10,952
|
|
|
|
77,166
|
|
|
|
78,007
|
|
Transaction and other
related expenses (i)
|
|
|
3,306
|
|
|
|
80
|
|
|
|
7,432
|
|
|
|
603
|
|
Transformation
expenses
|
|
|
362
|
|
|
|
515
|
|
|
|
694
|
|
|
|
515
|
|
Change in fair value
of private placement warrants (ii)
|
|
|
8,067
|
|
|
|
8,334
|
|
|
|
10,134
|
|
|
|
(7,133)
|
|
Tax receivable
agreement liability adjustment (iii)
|
|
|
1,661
|
|
|
|
4,446
|
|
|
|
1,661
|
|
|
|
4,446
|
|
Loss on
extinguishment of debt (iv)
|
|
|
—
|
|
|
|
—
|
|
|
|
5,334
|
|
|
|
—
|
|
Stock-based
compensation (v)
|
|
|
3,573
|
|
|
|
3,271
|
|
|
|
6,481
|
|
|
|
6,039
|
|
Adjusted
EBITDA
|
|
$
|
68,558
|
|
|
$
|
27,598
|
|
|
$
|
108,902
|
|
|
$
|
82,477
|
|
|
|
(i)
|
Transaction and other
related expenses incurred in the three and six months ended June
30, 2021 primarily relate to costs for the acquisition of Redflex
and certain costs for the debt offering of senior unsecured notes
and refinancing the first lien term loan during the period.
Transaction and other related expenses incurred in the six months
ended June 30, 2020 primarily relate to costs associated with our
Pagatelia acquisition and certain costs for refinancing our
debt.
|
(ii)
|
This consists of
adjustments to the private placement warrants liability from the
remeasurement to fair value at the end of each reporting
period.
|
(iii)
|
We recorded a $1.7
million charge for the three and six months ended June 30, 2021 and
a $4.4 million charge for the three and six months ended June 30,
2020. 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.
|
(iv)
|
The loss on
extinguishment of debt for the six months ended June 30, 2021
consists of a $4.0 million write-off of pre-existing deferred
financing costs and $1.3 million of lender and third-party costs
associated with the issuance of the new first lien term
loan.
|
(v)
|
Stock-based
compensation represents the non-cash charge related to the issuance
of awards under the Verra Mobility Corporation 2018 Equity
Incentive Plan.
|
FREE CASH FLOW
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
($ in
thousands)
|
|
2021
|
|
|
2020
|
|
Net cash provided by
operating activities
|
|
$
|
37,478
|
|
|
$
|
22,543
|
|
Purchases of
installation and service parts and property and
equipment
|
|
|
(8,257)
|
|
|
|
(14,301)
|
|
Free cash
flow
|
|
$
|
29,221
|
|
|
$
|
8,242
|
|
|
|
ADJUSTED EPS
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
(As
restated)
|
|
Net income
(loss)
|
|
$
|
3,992
|
|
|
$
|
(23,722)
|
|
Amortization of
intangibles
|
|
|
21,242
|
|
|
|
23,531
|
|
Transaction and other
related expenses
|
|
|
3,306
|
|
|
|
80
|
|
Transformation
expenses
|
|
|
362
|
|
|
|
515
|
|
Change in fair value
of private placement warrants
|
|
|
8,067
|
|
|
|
8,334
|
|
Tax receivable
agreement liability adjustment
|
|
|
1,661
|
|
|
|
4,446
|
|
Stock-based
compensation
|
|
|
3,573
|
|
|
|
3,271
|
|
Total adjustments
before income tax effect
|
|
|
38,211
|
|
|
|
40,177
|
|
Income tax effect on
adjustments
|
|
|
(26,383)
|
|
|
|
(5,827)
|
|
Total adjustments
after income tax effect
|
|
|
11,828
|
|
|
|
34,350
|
|
Adjusted Net
Income
|
|
$
|
15,820
|
|
|
$
|
10,628
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
$
|
0.10
|
|
|
$
|
0.07
|
|
Diluted weighted
average shares outstanding
|
|
|
166,028
|
|
|
|
161,710
|
|
The Adjusted Net Income and Adjusted EPS for the six months
ended June 30, 2021 and 2020 were not
presented as they were not meaningful due to the disproportionate
effective tax rate for the six months ended June 30, 2021.
EBITDA and Adjusted EBITDA
We define EBITDA as net income (loss) 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 (loss),
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 (loss) 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.
Investor Relations Contact
Sajid Daudi
Vice President, Investor Relations
480 596-4805
IR@verramobility.com
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SOURCE Verra Mobility