Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Q3 2024 Earnings Presentation
20 slides from Verra Mobility's earnings presentation, Oct 31, 2024
Slide 1: Verra Mobility Q3 2024 Earnings Presentation
Earnings Overview Verra Mobility Q3 2024 Earnings Presentation For the Quarter Ended September 30, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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,”
Slide 3: Executive Summary
Q3 2024 Financial Highlights Executive Summary Total Revenue • Strong consolidated third quarter top-line performance - Commercial Services: 11% Y-o-Y growth driven by strong travel demand $226 million; 7% YoY growth - Government Solutions: 7% Y-o-Y service revenue growth driven by core market accel
Slide 4: Strong top-line growth driven by travel & speed enforcement trends
Strong top-line growth driven by travel & speed enforcement trends Consolidated – Q3 Results Total Revenue ($M) Adjusted EBITDA ($M) * Service Product Total $226 $210 +7% $8 $9 $97 Total $105 Service $217 +8% $201 +8% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Adjusted EPS * Adjusted Free Cash Flow ($M) * $0.3
Slide 5: Core Businesses Drive Strong Growth and FCF Conversion
Core Businesses Drive Strong Growth and FCF Conversion Total Revenue Breakdown ($M) Adjusted EBITDA & Margins * ($M) Service Total Revenue Product CAGR 24% Adj EBITDA CAGR 23% Service Revenue CAGR 27% 45% $869 45% $817 $35 $742 $34 46% $46 $551 49% $58 $394 $372 $391 $784 $834 $339 $57 $695 46% $493
Slide 6: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q3 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Segment Profit $73 Srvc Rev $109 $65 +12% $98 +11% Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 – Key Highlights • Third quarter Revenue up 11% over Q3 2023 due to strength i
Slide 7: Revenue fueled by core market acceleration
Revenue fueled by core market acceleration Government Services – Q3 Results Total Revenue & YoY Growth Segment Profit & YoY Growth Service Product Revenue $90 Total Rev $96 +6% $5 $5 Srvc Rev Segment Profit $85 $91 $29 +7% -2% $28 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 – Key Highlights • Service Revenue
Slide 8: Revenue driven by Recurring SaaS and Services Growth
Revenue driven by Recurring SaaS and Services Growth T2 Systems – Q3 Results Total Revenue & YoY Growth Segment Profit & YoY Growth SaaS & Service Revenue Product Revenue $21 Total Rev -4% $21 $4 $3 Srvc Rev $18 $17 Segment Profit -4% $4 +6% $4 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 – Key Highlights • R
Slide 9: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R9 S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage * Improvement ($M) September 30, 2024 $942 $918 $903 $928 $844 Cash & Cash Equivalents $206 2.6x 2.5x 2.4x 2.4x 2.2x Deb
Slide 10: Increasing 2024 Adjusted Free Cash Flow guidance and reaffirming other guidance
Increasing 2024 Adjusted Free Cash Flow guidance and reaffirming all other financial guidance metrics In millions, except per share data & net leverage Original Guidance Current Guidance As of February 29, 2024 As of October 31, 2024 Total Revenue growth of ~8% for the full year Upper end of range T
Slide 11: Additional 2024 Guidance Assumptions
Additional 2024 Guidance Assumptions 2024 fully diluted share count of approximately 168 million shares (weighted average for the year) Effective tax rate of 30% including State taxes; approximately $55 million in 2024 total cash taxes paid 2024 depreciation and amortization expected to be approxima
Slide 12: Appendix
Appendix 12
Slide 13: Key Definitions
KEY DEFINITIONS EBITDA and Adjusted EBITDA We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items. Adjusted EBITDA Margin We define “Adjusted EBITDA
Slide 14: Key Definitions, Continued
KEY DEFINITIONS, Continued Net Debt We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents. Net Leverage We define “Net Leverage” as Net Debt divided by the
Slide 15: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2021 – Q3 2024 Unaudited ($ in millions) Full Year 2021 Q4 2022 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Q1 2024 Q2 2024 Q3 2024 Service revenue $492.8 $179.0 $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 $202.7 $212.0 $217.3 Product sales 57.7 7.1 4
Slide 16: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2021 2022 2023 Total Revenue Commercial Services $260.9 $326.0 $85.6 $94.5 $98.1 $94.5 $372.8 $95.9 $104.
Slide 17: Adj. Net Income and Adjusted EPS Reconciliations
Verra Mobility Adj. Net Income and Adjusted EPS Reconciliations (in $MM, except per share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Income $30.3 $3.0 $29.1 $34.2 $34.7 Amortization of intangibles 18.9 16.7 16.7 16.7 16.8 Transaction and other related expenses 0.2 0.1 1.5 0.1 2.5 Transformati
Slide 18: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA Q3 2024 ($MM) 2019 2020 2021 2022 2023 TTM Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $372 $391 Net cash provided by operating $ 134 $ 47 $ 193 $ 218 $206 $219 activities Purchases of installation and service parts and property and eq
Slide 19: Net Debt and Net Leverage Reconciliation
Verra Mobility Net Debt and Net Leverage Reconciliation Q3 Q4 Q1 Q2 Q3 ($MM) 2023 2023 2024 2024 2024 2021 Term Loan, due 2028 $ 707 $ 705 $ 702 $ 700 $700 Plus: Senior Notes, due 2029 $ 350 $ 350 $ 350 $ 350 $350 Long-term Debt, excluding original issue discounts and unamortized $ 1,057 $ 1,055 $1,
Slide 20: Thank You
Thank You http://ir.verramobility.com/