- Total revenue of $187.5
million
- Net income of $29.6 million
- Generated cash flows from operations of $65.1 million
- Held inaugural investor day at which management highlighted its
growth strategy, long-term outlook and increased financial guidance
for 2022
MESA,
Ariz., Aug. 3, 2022 /PRNewswire/ -- Verra
Mobility Corporation (NASDAQ: VRRM), a leading provider of smart
mobility technology solutions, announced today the financial
results for the quarter ended June 30,
2022.
"This is an incredibly exciting time for the Company," said
David Roberts, President and CEO,
Verra Mobility. "Operationally, our
businesses are generating very strong results fueled by favorable
secular trends including robust travel demand that is driving
improved performance in our Commercial Services business. Moreover,
we had the opportunity to communicate our long-term growth
strategy, financial outlook and capital allocation priorities at
our inaugural investor day, which demonstrates the conviction we
have in both the growth strategy and predictability of our business
going forward."
Second Quarter 2022 Financial Highlights
- Revenue: Total revenue for the second quarter of 2022
was $187.5 million, an increase of
46% compared to $128.7 million for
the second quarter of 2021. Organic service revenue growth was 26%
which was mainly due to increase in travel volume and related
tolling activity in the Commercial Services segment, and the
organic growth in our Government Solutions segment which was 23%,
driven by the school zone speed expansion. The recently acquired
Redflex and T2 Systems contributed approximately $29 million to service revenue growth.
- Net income: Net income for the second quarter of 2022
was $29.6 million, or $0.15 per share based on 160.3 million diluted
weighted average shares outstanding. Net income for the comparable
2021 period was $4.0 million, or
$0.02 per share, based on 166.0
million diluted weighted average shares outstanding.
- Adjusted Earnings Per Share (EPS): Adjusted EPS for the
second quarter of 2022 was $0.29 per
share compared to $0.10 per share for
the second quarter of 2021.
- Adjusted EBITDA: Adjusted EBITDA was $88.8 million for the second quarter of 2022
compared to $68.6 million for the
same period last year. Adjusted EBITDA margin was 47% of total
revenue for 2022 and 53% for 2021.
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 related to speed, red-light, school bus and city bus
lane management.
- Parking Solutions provides an integrated suite of
parking software and hardware solutions to universities,
municipalities, parking operators, healthcare facilities and
transportation hubs in the United
States and Canada.
Second Quarter 2022 Segment Detail
- The Commercial Services segment generated total revenue of
$84.9 million, a 28% increase
compared to $66.5 million in the same
period in 2021. Segment profit was $56.4
million, a 32% increase from $42.7
million in the prior year. The increases in revenue and
profit resulted from increased travel volume and related tolling
activity in 2022 compared to the prior period. The segment profit
margin was 66% for 2022 and 64% for the same period in 2021.
- The Government Solutions segment generated total revenue of
$83.5 million, a 34% increase
compared to $62.2 million in the same
period in 2021. The increase was mainly due to the inclusion of
Redflex operations for the full three-month period compared to only
12 days in the comparable 2021 period, and from organic growth in
service revenue in the current period. The segment profit was
$29.5 million, a 16% increase from
$25.5 million in the prior year. The
segment profit margin was 35% for 2022 and 41% for 2021.
- The Parking Solutions segment generated total revenue of
$19.1 million with no comparable
amounts in the prior year. The segment profit was $2.8 million with a profit margin of 15% for
2022.
First Half of 2022 Financial Highlights
- Revenue: Total revenue for the first half of 2022 was
$357.9 million, an increase of 64%
compared to $218.5 million for the
first half of 2021. Organic service revenue growth was 34% which
was mainly due to increase in travel volume and related tolling
activity in the Commercial Services segment, and the organic
service revenue growth in our Government Solutions segment which
was 25%, driven by the school zone speed expansion. The recently
acquired Redflex and T2 Systems contributed approximately
$60 million to service revenue
growth. In addition, product sales increased in 2022 by
$9.9 million compared to 2021.
- Net income (loss): Net income for the first half of 2022
was $39.7 million, or $0.23 per share, based on 161.5 million diluted
weighted average shares outstanding. Net loss for the comparable
2021 period was $4.9 million, or
$0.03 loss per share, based on 162.3
million diluted weighted average shares outstanding.
- Adjusted EBITDA: Adjusted EBITDA was $164.1 million for the first half of 2022,
compared to $108.9 million in the
first half of 2021. Adjusted EBITDA margin was 46% of total revenue
for the first half of 2022 and 50% for 2021.
Liquidity: As of June 30,
2022, cash and cash equivalents were $86.4 million and we generated $65.1 million and $96.4
million, respectively, in cash flows from operations for the
three and six months ended June 30,
2022.
Share Repurchases:
On May 7, 2022, our Board of
Directors authorized a share repurchase program for up to an
aggregate amount of $125.0 million of
our outstanding shares of Class A Common Stock over the next 12
months from time to time in open market transactions, accelerated
share repurchases ("ASR") or in privately negotiated transactions,
each as permitted under applicable rules and regulations, any of
which may use pre-arranged trading plans that are designed to meet
the requirements of Rule 10b5-1 of the Securities Exchange Act of
1934 (the "Exchange Act").
On May 12, 2022, we paid
$50.0 million, which represented the
aggregate amount authorized for an ASR, and received an initial
delivery of 2,739,726 shares of our Class A Common Stock in
accordance with an ASR agreement with a third-party financial
institution. The final settlement is expected to occur during the
third quarter of fiscal year 2022, at which time, a volume-weighted
average price calculation over the term of the ASR agreement will
be used to determine the final number and the average price of
shares repurchased and retired. In addition, we paid $5.2 million and repurchased 336,153 shares of
our Class A Common Stock through open market transactions during
the second quarter of fiscal year 2022. Our Board of Directors
authorized an aggregate purchase amount of $75 million related to the open market
repurchases, of which $69.8 million
is available for future repurchases as of June 30, 2022. We used existing cash on hand to
fund share repurchases in the second quarter of 2022.
Our share repurchases in the future depends on a number of
factors, including our financial condition, capital requirements,
cash flows, results of operations, future business prospects and
other factors our management may deem relevant. The timing, volume
and nature of such repurchases are subject to market conditions,
applicable securities laws and other factors and may be amended,
suspended or discontinued at any time.
2022 Full Year Guidance
Any guidance that we provide is subject to change as a variety
of factors can affect actual operating results. Certain of those
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. In addition, our recent
acquisition of T2 Systems includes preliminary allocation of the
fair values of 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).
Pursuant to the press release issued on July 19, 2022 in conjunction with our investor
day, we increased our full-year guidance for total revenue and
adjusted EBITDA. The aforementioned new guidance ranges as
previously disclosed are summarized below:
Total
revenue
|
$720 million - $740
million
|
Adjusted
EBITDA
|
$325 million - $335
million
|
Conference Call Details
Date: August 3, 2022
Time: 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)
U.S. and Canadian Callers Dial-in: 1-800-289-0720
Outside of U.S. and Canada Dial-in: 1-323-701-0160 for
international callers with conference ID #1070500
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 August 17, 2022, by dialing 1-844-512-2921 for
the U.S. or Canada, and
1-412-317-6671 for international callers and entering passcode
#1070500. In addition, an archived webcast will be available in the
"News & Events" section of the Investor Relations website at
http://ir.verramobility.com.
About Verra Mobility
Verra Mobility is a leading provider of smart mobility
technology solutions that make transportation safer, smarter and
more connected. The Company sits at the center of the mobility
ecosystem, bringing together vehicles, hardware, software, data and
people to enable safe, efficient solutions for customers globally.
Verra Mobility's transportation safety systems and parking
management solutions protect lives, improve urban and motorway
mobility and support healthier communities. The Company also solves
complex payment, utilization and compliance challenges for fleet
owners and rental car companies. Headquartered in Arizona, Verra Mobility operates 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. Examples
of forward-looking statements include, among others, statements
regarding the benefits of our 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 2022 financial and operational
metrics. 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: (1) the disruption to our business and
results of operations as a result of the COVID-19 pandemic; (2)
customer concentration in our Commercial Services and Government
Solutions segments; (3) decreases in the prevalence of automated
and other similar methods of photo enforcement, parking solutions
or the use of tolling; (4) risks and uncertainties related to our
government contracts, including but not limited to administrative
hurdles, legislative changes, termination rights, audits and
investigations; (5) decreased interest in outsourcing from our
customers; (6) our ability to properly perform under our contracts
and otherwise satisfy our customers; (7) our ability to compete in
a highly competitive and rapidly evolving market; (8) our ability
to keep up with technological developments and changing customer
preferences; (9) the success of our new products and changes to
existing products and services; (10) our ability to successfully
integrate our recent or future acquisitions; (11) failures in or
breaches of our networks or systems, including as a result of
cyber-attacks; and (12) other risks and uncertainties indicated
from time to time in documents filed or to be filed with the
Securities and Exchange Commission (the "SEC") by Verra Mobility.
This press release should be read in conjunction with the
information included in our other press releases, reports and other
filings with the SEC. 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 as a means of disclosing material
non-public information 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 Net Income,
Adjusted EPS and Adjusted EBITDA Margin 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 included in our 2022 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 (loss), 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 these non-GAAP financial 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, 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.
These non-GAAP measures have certain limitations as analytical
tools and should not be used as substitutes for net income (loss),
cash flows from operations, earnings per share or other
consolidated income or cash flow data prepared in accordance with
GAAP.
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.
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.
Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a
percentage of total revenue.
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
($ in thousands,
except per share data)
|
|
June 30,
2022
|
|
|
December 31,
2021
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
86,392
|
|
|
$
|
101,283
|
|
Restricted
cash
|
|
|
4,169
|
|
|
|
3,149
|
|
Accounts receivable
(net of allowance for credit losses of $17.1 million and
$12.1 million at June 30, 2022 and December 31, 2021,
respectively)
|
|
|
172,816
|
|
|
|
160,979
|
|
Unbilled
receivables
|
|
|
33,830
|
|
|
|
29,109
|
|
Inventory,
net
|
|
|
16,549
|
|
|
|
12,093
|
|
Prepaid expenses and
other current assets
|
|
|
34,615
|
|
|
|
41,456
|
|
Total current
assets
|
|
|
348,371
|
|
|
|
348,069
|
|
Installation and
service parts, net
|
|
|
15,381
|
|
|
|
13,332
|
|
Property and equipment,
net
|
|
|
102,755
|
|
|
|
96,066
|
|
Operating lease
assets
|
|
|
38,146
|
|
|
|
38,862
|
|
Intangible assets,
net
|
|
|
429,813
|
|
|
|
487,299
|
|
Goodwill
|
|
|
832,811
|
|
|
|
838,867
|
|
Other non-current
assets
|
|
|
12,583
|
|
|
|
14,561
|
|
Total assets
|
|
$
|
1,779,860
|
|
|
$
|
1,837,056
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
69,107
|
|
|
$
|
67,556
|
|
Deferred
revenue
|
|
|
29,743
|
|
|
|
27,141
|
|
Accrued
liabilities
|
|
|
49,596
|
|
|
|
38,435
|
|
Tax receivable
agreement liability, current portion
|
|
|
5,107
|
|
|
|
5,107
|
|
Current portion of
long-term debt
|
|
|
11,952
|
|
|
|
36,952
|
|
Total current
liabilities
|
|
|
165,505
|
|
|
|
175,191
|
|
Long-term debt, net of
current portion
|
|
|
1,205,169
|
|
|
|
1,206,802
|
|
Operating lease
liabilities, net of current portion
|
|
|
34,347
|
|
|
|
34,984
|
|
Tax receivable
agreement liability, net of current portion
|
|
|
55,650
|
|
|
|
56,615
|
|
Private placement
warrant liabilities
|
|
|
35,600
|
|
|
|
38,466
|
|
Asset retirement
obligation
|
|
|
12,045
|
|
|
|
11,824
|
|
Deferred tax
liabilities, net
|
|
|
21,829
|
|
|
|
47,524
|
|
Other long-term
liabilities
|
|
|
5,492
|
|
|
|
5,686
|
|
Total
liabilities
|
|
|
1,535,637
|
|
|
|
1,577,092
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Preferred stock,
$0.0001 par value
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.0001
par value
|
|
|
15
|
|
|
|
16
|
|
Common stock contingent
consideration
|
|
|
36,575
|
|
|
|
36,575
|
|
Additional paid-in
capital
|
|
|
311,252
|
|
|
|
309,883
|
|
Accumulated
deficit
|
|
|
(90,852)
|
|
|
|
(81,416)
|
|
Accumulated other
comprehensive loss
|
|
|
(12,767)
|
|
|
|
(5,094)
|
|
Total stockholders'
equity
|
|
|
244,223
|
|
|
|
259,964
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,779,860
|
|
|
$
|
1,837,056
|
|
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
AND COMPREHENSIVE
INCOME (LOSS)
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
($ in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
revenue
|
|
$
|
174,502
|
|
|
$
|
116,426
|
|
|
$
|
335,636
|
|
|
$
|
206,189
|
|
Product
sales
|
|
|
12,985
|
|
|
|
12,231
|
|
|
|
22,236
|
|
|
|
12,326
|
|
Total
revenue
|
|
|
187,487
|
|
|
|
128,657
|
|
|
|
357,872
|
|
|
|
218,515
|
|
Cost of service
revenue
|
|
|
3,713
|
|
|
|
1,332
|
|
|
|
7,492
|
|
|
|
2,212
|
|
Cost of product
sales
|
|
|
8,326
|
|
|
|
6,144
|
|
|
|
14,321
|
|
|
|
6,171
|
|
Operating
expenses
|
|
|
55,196
|
|
|
|
36,434
|
|
|
|
106,259
|
|
|
|
66,926
|
|
Selling, general and
administrative expenses
|
|
|
40,152
|
|
|
|
26,229
|
|
|
|
81,787
|
|
|
|
54,672
|
|
Depreciation,
amortization and (gain) loss on
disposal of assets, net
|
|
|
34,939
|
|
|
|
27,012
|
|
|
|
70,846
|
|
|
|
55,277
|
|
Total costs and
expenses
|
|
|
142,326
|
|
|
|
97,151
|
|
|
|
280,705
|
|
|
|
185,258
|
|
Income from
operations
|
|
|
45,161
|
|
|
|
31,506
|
|
|
|
77,167
|
|
|
|
33,257
|
|
Interest expense,
net
|
|
|
14,485
|
|
|
|
11,680
|
|
|
|
28,764
|
|
|
|
20,844
|
|
Change in fair value of
private placement warrants
|
|
|
(6,600)
|
|
|
|
8,067
|
|
|
|
(2,866)
|
|
|
|
10,134
|
|
Tax receivable
agreement liability adjustment
|
|
|
(965)
|
|
|
|
1,661
|
|
|
|
(965)
|
|
|
|
1,661
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,334
|
|
Other income,
net
|
|
|
(4,039)
|
|
|
|
(2,798)
|
|
|
|
(6,905)
|
|
|
|
(5,811)
|
|
Total other
expenses
|
|
|
2,881
|
|
|
|
18,610
|
|
|
|
18,028
|
|
|
|
32,162
|
|
Income before income
taxes
|
|
|
42,280
|
|
|
|
12,896
|
|
|
|
59,139
|
|
|
|
1,095
|
|
Income tax
provision
|
|
|
12,639
|
|
|
|
8,904
|
|
|
|
19,458
|
|
|
|
6,018
|
|
Net income
(loss)
|
|
$
|
29,641
|
|
|
$
|
3,992
|
|
|
$
|
39,681
|
|
|
$
|
(4,923)
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in foreign
currency translation adjustment
|
|
|
(10,381)
|
|
|
|
351
|
|
|
|
(7,673)
|
|
|
|
161
|
|
Total comprehensive
income (loss)
|
|
$
|
19,260
|
|
|
$
|
4,343
|
|
|
$
|
32,008
|
|
|
$
|
(4,762)
|
|
Net income (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.19
|
|
|
$
|
0.02
|
|
|
$
|
0.26
|
|
|
$
|
(0.03)
|
|
Diluted
|
|
$
|
0.15
|
|
|
$
|
0.02
|
|
|
$
|
0.23
|
|
|
$
|
(0.03)
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
154,694
|
|
|
|
162,378
|
|
|
|
155,408
|
|
|
|
162,338
|
|
Diluted
|
|
|
160,344
|
|
|
|
166,028
|
|
|
|
161,507
|
|
|
|
162,338
|
|
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
($ in
thousands)
|
|
2022
|
|
|
2021
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
29,641
|
|
|
$
|
3,992
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
34,540
|
|
|
|
27,013
|
|
Amortization of
deferred financing costs and discounts
|
|
|
1,387
|
|
|
|
1,129
|
|
Change in fair value
of private placement warrants
|
|
|
(6,600)
|
|
|
|
8,067
|
|
Tax receivable
agreement liability adjustment
|
|
|
(965)
|
|
|
|
1,661
|
|
Credit loss
expense
|
|
|
3,531
|
|
|
|
1,461
|
|
Deferred income
taxes
|
|
|
3,071
|
|
|
|
(1,106)
|
|
Stock-based
compensation
|
|
|
4,566
|
|
|
|
3,573
|
|
Other
|
|
|
406
|
|
|
|
124
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(4,812)
|
|
|
|
(16,298)
|
|
Unbilled
receivables
|
|
|
5,347
|
|
|
|
(1,239)
|
|
Inventory,
net
|
|
|
(1,675)
|
|
|
|
1,614
|
|
Prepaid expenses and
other assets
|
|
|
696
|
|
|
|
(2,529)
|
|
Deferred
revenue
|
|
|
2,871
|
|
|
|
2,190
|
|
Accounts payable and
other current liabilities
|
|
|
2,188
|
|
|
|
(183)
|
|
Other
liabilities
|
|
|
(9,064)
|
|
|
|
(1,004)
|
|
Net cash provided by
operating activities
|
|
|
65,128
|
|
|
|
28,465
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Acquisition of
business, net of cash and restricted cash acquired
|
|
|
—
|
|
|
|
(107,004)
|
|
Payment of contingent
consideration
|
|
|
(235)
|
|
|
|
—
|
|
Purchases of
installation and service parts and property and
equipment
|
|
|
(11,246)
|
|
|
|
(4,553)
|
|
Cash proceeds from the
sale of assets
|
|
|
47
|
|
|
|
103
|
|
Net cash used in
investing activities
|
|
|
(11,434)
|
|
|
|
(111,454)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Repayment of long-term
debt
|
|
|
(2,255)
|
|
|
|
(15,639)
|
|
Payment of debt
issuance costs
|
|
|
(192)
|
|
|
|
(775)
|
|
Payment of debt
extinguishment costs
|
|
|
—
|
|
|
|
(462)
|
|
Share repurchases and
retirement
|
|
|
(55,281)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
66
|
|
|
|
87
|
|
Payment of employee
tax withholding related to RSUs vesting
|
|
|
(203)
|
|
|
|
(96)
|
|
Net cash used in
financing activities
|
|
|
(57,865)
|
|
|
|
(16,885)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(2,661)
|
|
|
|
(45)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(6,832)
|
|
|
|
(99,919)
|
|
Cash, cash equivalents
and restricted cash - beginning of period
|
|
|
97,393
|
|
|
|
250,424
|
|
Cash, cash equivalents
and restricted cash - end of period
|
|
$
|
90,561
|
|
|
$
|
150,505
|
|
VERRA MOBILITY
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Six Months Ended
June 30,
|
|
($ in
thousands)
|
|
2022
|
|
|
2021
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
39,681
|
|
|
$
|
(4,923)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
70,215
|
|
|
|
55,227
|
|
Amortization of
deferred financing costs and discounts
|
|
|
2,693
|
|
|
|
2,722
|
|
Change in fair value
of private placement warrants
|
|
|
(2,866)
|
|
|
|
10,134
|
|
Tax receivable
agreement liability adjustment
|
|
|
(965)
|
|
|
|
1,661
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
5,334
|
|
Credit loss
expense
|
|
|
7,036
|
|
|
|
3,863
|
|
Deferred income
taxes
|
|
|
(15,700)
|
|
|
|
(825)
|
|
Stock-based
compensation
|
|
|
9,012
|
|
|
|
6,481
|
|
Other
|
|
|
760
|
|
|
|
257
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(19,112)
|
|
|
|
(42,970)
|
|
Unbilled
receivables
|
|
|
(4,918)
|
|
|
|
(2,098)
|
|
Inventory,
net
|
|
|
(7,397)
|
|
|
|
923
|
|
Prepaid expenses and
other assets
|
|
|
8,931
|
|
|
|
(2,100)
|
|
Deferred
revenue
|
|
|
2,917
|
|
|
|
2,146
|
|
Accounts payable and
other current liabilities
|
|
|
1,711
|
|
|
|
2,191
|
|
Other
liabilities
|
|
|
4,377
|
|
|
|
(545)
|
|
Net cash provided by
operating activities
|
|
|
96,375
|
|
|
|
37,478
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Acquisition of
business, net of cash and restricted cash acquired
|
|
|
—
|
|
|
|
(107,004)
|
|
Payment of contingent
consideration
|
|
|
(647)
|
|
|
|
—
|
|
Purchases of
installation and service parts and property and
equipment
|
|
|
(22,724)
|
|
|
|
(8,257)
|
|
Cash proceeds from the
sale of assets
|
|
|
72
|
|
|
|
159
|
|
Net cash used in
investing activities
|
|
|
(23,299)
|
|
|
|
(115,102)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Repayment on the
revolver
|
|
|
(25,000)
|
|
|
|
—
|
|
Borrowings of
long-term debt
|
|
|
—
|
|
|
|
996,750
|
|
Repayment of long-term
debt
|
|
|
(4,510)
|
|
|
|
(881,281)
|
|
Payment of debt
issuance costs
|
|
|
(246)
|
|
|
|
(6,507)
|
|
Payment of debt
extinguishment costs
|
|
|
—
|
|
|
|
(1,066)
|
|
Share repurchases and
retirement
|
|
|
(55,281)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
159
|
|
|
|
87
|
|
Payment of employee
tax withholding related to RSUs vesting
|
|
|
(1,639)
|
|
|
|
(953)
|
|
Net cash (used in)
provided by financing activities
|
|
|
(86,517)
|
|
|
|
107,030
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(430)
|
|
|
|
207
|
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
(13,871)
|
|
|
|
29,613
|
|
Cash, cash equivalents
and restricted cash - beginning of period
|
|
|
104,432
|
|
|
|
120,892
|
|
Cash, cash equivalents
and restricted cash - end of period
|
|
$
|
90,561
|
|
|
$
|
150,505
|
|
VERRA MOBILITY
CORPORATION
|
|
ADJUSTED EBITDA
RECONCILIATION (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
($ in
thousands)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net income
(loss)
|
|
$
|
29,641
|
|
|
$
|
3,992
|
|
|
$
|
39,681
|
|
|
$
|
(4,923)
|
|
Interest expense,
net
|
|
|
14,485
|
|
|
|
11,680
|
|
|
|
28,764
|
|
|
|
20,844
|
|
Income tax
provision
|
|
|
12,639
|
|
|
|
8,904
|
|
|
|
19,458
|
|
|
|
6,018
|
|
Depreciation and
amortization
|
|
|
34,540
|
|
|
|
27,013
|
|
|
|
70,215
|
|
|
|
55,227
|
|
EBITDA
|
|
|
91,305
|
|
|
|
51,589
|
|
|
|
158,118
|
|
|
|
77,166
|
|
Transaction and other
related expenses (i)
|
|
|
273
|
|
|
|
3,306
|
|
|
|
489
|
|
|
|
7,432
|
|
Transformation
expenses
|
|
|
180
|
|
|
|
362
|
|
|
|
266
|
|
|
|
694
|
|
Change in fair value of
private placement warrants (ii)
|
|
|
(6,600)
|
|
|
|
8,067
|
|
|
|
(2,866)
|
|
|
|
10,134
|
|
Tax receivable
agreement liability adjustment (iii)
|
|
|
(965)
|
|
|
|
1,661
|
|
|
|
(965)
|
|
|
|
1,661
|
|
Loss on extinguishment
of debt (iv)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5,334
|
|
Stock-based
compensation (v)
|
|
|
4,566
|
|
|
|
3,573
|
|
|
|
9,012
|
|
|
|
6,481
|
|
Adjusted
EBITDA
|
|
$
|
88,759
|
|
|
$
|
68,558
|
|
|
$
|
164,054
|
|
|
$
|
108,902
|
|
(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
Holdings Limited and certain costs for the debt offering of senior
unsecured notes and refinancing the first lien term loan during the
period.
|
(ii)
|
This consists of
adjustments to the private placement warrants liability from the
re-measurement to fair value at the end of each reporting
period.
|
(iii)
|
The TRA liability
adjustment in 2022 is arising from lower estimated state tax rates
due to changes in apportionment, whereas in 2021 it is arising from
higher estimated state tax rates due to changes in statutory
rates.
|
(iv)
|
The loss on
extinguishment of debt in 2021 consists of a $4.0 million write-off
of pre-existing deferred financing costs and discounts and $1.3
million of lender and third-party costs associated with the
issuance of the 2021 first lien term loan.
|
(v)
|
Stock-based
compensation represents the non-cash charge related to the issuance
of awards under the Verra Mobility Corporation 2018 Equity
Incentive Plan.
|
FREE CASH
FLOW (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
($ in
thousands)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net cash provided by
operating activities
|
|
$
|
65,128
|
|
|
$
|
28,465
|
|
|
$
|
96,375
|
|
|
$
|
37,478
|
|
Purchases of
installation and service parts and property and
equipment
|
|
|
(11,246)
|
|
|
|
(4,553)
|
|
|
|
(22,724)
|
|
|
|
(8,257)
|
|
Free cash
flow
|
|
$
|
53,882
|
|
|
$
|
23,912
|
|
|
$
|
73,651
|
|
|
$
|
29,221
|
|
ADJUSTED
EPS (Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
(In thousands,
except per share data)
|
|
2022
|
|
|
2021
|
|
Net
income
|
|
$
|
29,641
|
|
|
$
|
3,992
|
|
Amortization of
intangibles
|
|
|
27,175
|
|
|
|
21,242
|
|
Transaction and other
related expenses
|
|
|
273
|
|
|
|
3,306
|
|
Transformation
expenses
|
|
|
180
|
|
|
|
362
|
|
Change in fair value
of private placement warrants
|
|
|
(6,600)
|
|
|
|
8,067
|
|
Tax receivable
agreement liability adjustment
|
|
|
(965)
|
|
|
|
1,661
|
|
Stock-based
compensation
|
|
|
4,566
|
|
|
|
3,573
|
|
Total adjustments
before income tax effect
|
|
|
24,629
|
|
|
|
38,211
|
|
Income tax effect on
adjustments
|
|
|
(7,362)
|
|
|
|
(26,383)
|
|
Total adjustments after
income tax effect
|
|
|
17,267
|
|
|
|
11,828
|
|
Adjusted Net
Income
|
|
$
|
46,908
|
|
|
$
|
15,820
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
|
$
|
0.29
|
|
|
$
|
0.10
|
|
Diluted weighted
average shares outstanding
|
|
|
160,344
|
|
|
|
166,028
|
|
The Adjusted Net Income and Adjusted EPS for the six months
ended June 30, 2022 and 2021 were not
presented as they were not meaningful due to the disproportionate
effective tax rate for the six months ended June 30, 2021, as previously disclosed.
Investor Relations Contact
Mark Zindler
mark.zindler@verramobility.com
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SOURCE Verra Mobility