Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Gores Holdings II — SPAC Merger (October 2018)
33 slides from Verra Mobility's SPAC merger presentation, Oct 3, 2018
Slide 1: Disclaimer
DISCLAIMER Confidentiality The information in this presentation is highly confidential. The distribution of this presentation by an authorized recipient to any other person is unauthorized. Any photocopying, disclosure, reproduction or alteration of the contents of this presentation and any forwardi
Slide 2: Presenters
PRESENTERS 3 VERRA MOBILITY • Consulting experience with a history of partnering with founder-owned companies to drive growth and innovation • Joined Verra Mobility in 2014 • Previously President and CEO, BillingTree and Managing Director, Bank of America Merrill Lynch • Former President and CEO, Eq
Slide 3: Agenda
AGENDA I. Business Overview II. Key Credit Highlights III. Growth Opportunities IV. Financial Overview 4 VERRA MOBILITY
Slide 4: I. Business Overview
I. Business Overview VERRA MOBILITY
Slide 5: Leading provider of tech-enabled smart transportation solutions
B U S I N E S S O V E R V I E W LEADING PROVIDER OF TECH-ENABLED SMART TRANSPORTATION SOLUTIONS THAT CUSTOMERS OFFER SAFETY, CONVENIENCE AND VALUE TO ITS Pro Forma Adj. Revenue(1) ($ in millions) $373 $349 $333 $18 $10 2015 2016 2017 Product 2018E Services Pro Forma Adj. EBITDA and Margin (%)(2) ($
Slide 6: Diverse product revenue portfolio with highly recurring services
B U S I N E S S O V E R V I E W DIVERSE PRODUCT REVENUE PORTFOLIO WITH HIGHLY RECURRING SERVICE red lights, speeding, school Financials 7 VERRA MOBILITY Market Position • Market leading provider with >4,000 road safety cameras installed across the U.S. and in one Canadian province • #1 player for re
Slide 7: Extensive geographic reach in the U.S. and across Europe
B U S I N E S S O V E R V I E W EXTENSIVE GEOGRAPHIC REACH IN THE U.S. AND NOW ACROSS EUROPE WITH THE ACQUISITION OF EURO PARKING COLLECTION “EPC” 8 VERRA MOBILITY Represents coverage of customers European Violations Collection Speed • Representing more than 450 issuing organizations in 15 European
Slide 8: II. Key Credit Highlights
II. Key Credit Highlights VERRA MOBILITY
Slide 9: Key Credit Highlights
K E Y C R E D I T H I G H L I G H T S KEY CREDIT HIGHLIGHTS 1 Market leader with highly differentiated and proprietary platforms 2 Sustainable competitive advantage in the marketplace 3 Contracted recurring revenue business model 4 Strong revenue growth and robust margins 5 Experienced management te
Slide 10: Market leader with highly differentiated and proprietary platforms
K E Y C R E D I T H I G H L I G H T S 1 MARKET LEADER WITH HIGHLY DIFFERENTIATED AND PROPRIETARY PLATFORMS #1 RAC & FMC Toll Transaction Processing #1 Red Light Safety #1 Speed Safety #1 School Bus Safety 11 VERRA MOBILITY Automating Smarter Transportation Automating Safer Transportation …supported
Slide 11: Sustainable competitive advantage in the marketplace
K E Y C R E D I T H I G H L I G H T S 2 SUSTAINABLE COMPETITIVE ADVANTAGE IN THE MARKETPLACE Superior scale • Manages more than 6mm vehicles for the largest rental car and fleet management companies Processes more than ~165 million toll transactions annually Have 4,000 cameras installed across 200 j
Slide 12: Contracted recurring revenue business model
K E Y C R E D I T H I G H L I G H T S 3 CONTRACTED RECURRING REVENUE BUSINESS MODEL • • • • • Large installed base provides recurring revenue Multiple year contracts with core customers High retention rate of 97% of cameras for Safety Automations Approximately 80% of revenue is contracted through 20
Slide 13: Strong revenue growth and robust margins
K E Y C R E D I T H I G H L I G H T S 4 STRONG REVENUE GROWTH AND ROBUST MARGINS Strong Pro Forma Adj. Revenue Growth ($ in millions) • The Company has grown services revenue at near double digits the past few years $349 $333 • Expectation is for continued high single digit growth • With a stronger
Slide 14: Experienced management team with a track record of success
K E Y C R E D I T H I G H L I G H T S 5 EXPERIENCED MANAGEMENT TEAM WITH A TRACK RECORD OF SUCCESS • Holds a BTECHND degree in Business Management growth companies relationships • Held service and business management roles at Equity Methods, PricewaterhouseCoopers 15 VERRA MOBILITY Liz Caracciolo, E
Slide 15: III. Growth Opportunities
III. Growth Opportunities VERRA MOBILITY
Slide 16: Multiple levers for sustained growth
G R O W T H O P P O R T U N I T I E S VERRA MOBILITY HAS MULTIPLE LEVERS FOR SUSTAINED GROWTH 1 • An increasing number of toll roads and migration to cashless tolling driving the need for smart technology • Increased focus on traffic safety for drivers, pedestrians, bicyclists and law enforcement 2
Slide 17: IV. Financial Overview
IV. Financial Overview VERRA MOBILITY
Slide 18: Consistent high-margin revenue growth with significant FCF generation
F I N A N C I A L O V E R V I E W VERRA MOBILITY HAS DEMONSTRATED CONSISTENT HIGH-MARGIN REVENUE GROWTH WITH SIGNIFICANT FCF GENERATION ($ in millions) Transaction processing-based business model with high recurring revenue of 97% and 97% cameras retained upon renewal % Services Growth 10% 10% 7% 10
Slide 19: Well positioned for organic growth in existing and new categories
F I N A N C I A L O V E R V I E W VERRA MOBILITY IS WELL POSITIONED FOR ORGANIC GROWTH IN EXISTING AND NEW CATEGORIES BOTH INTERNATIONALLY DOMESTICALLY AND (Consumer Tolling) Opportunities Growth 20 VERRA MOBILITY Verra Mobility Projected Organic Growth 2018E – 2020E Product Key Revenue Drivers Toll
Slide 20: Financial Overview: projected organic growth 2018E-2020E
FINANCIAL OVERVIEW VERRA MOBILITY IS WELL POSITIONED FOR ORGANIC GROWTH IN EXISTING AND NEW CATEGORIES BOTH DOMESTICALLY AND INTERNATIONALLY Verra Mobility Projected Organic Growth 2018E - 2020E + Rental car product adoption driven by positive industry tallwinds: + Increased cashless tolling i + Inc
Slide 21: Adj. Revenue Reconciliation
A P P E N D I X ADJ. REVENUE RECONCILIATION Amortization of contract incentive payment. Amount stepped down in 2017 due to purchase accounting adjustments following Platinum’s purchase. This is a non-recurring adjustment and is not expected going forward A• B• Pre-acquisition results for Sunshine in
Slide 22: Adj. EBITDA Pre-EPC Reconciliation – Verra Mobility, Pre-HTA
A P P E N D I X ADJ. EBITDA PRE-EPC RECONCILIATION – VERRA MOBILITY, PRE-HTA AND Adjustment to add back deal fees incurred in relation to Platinum’s acquisition of ATS in May 2017, as well as the acquisition of HTA. Includes acquisition services to advisors, professional fees and other expenses A• B
Slide 23: Adj. EBITDA Reconciliation – HTA
A P P E N D I X ADJ. EBITDA RECONCILIATION – HTA A• Seller expenses related to legal, M&A, travel, entertainment and non-business activities B• Add-back for the cash-to-GAAP adjustment for a $6 million incentive payment to a RAC in 4Q 2017. Should be capitalized, but flows through to the P&L in the
Slide 24: Adj. EBITDA Reconciliation – EPC
A P P E N D I X ADJ. EBITDA RECONCILIATION – EPC Non-recurring discretionary employee and transaction bonuses related to a change in control event A• B• Legal fees associated with the appointment of additional directors to the Company's board. This expense is non-recurring in nature C• EBITDA fees p
Slide 25: Consolidated Statement of Operations
A P P E N D I X CONSOLIDATED STATEMENT OF OPERATIONS 7.4 10.3 14.2 13.9 18.5 27.5 on disposal of assets, net 26 VERRA MOBILITY Note: Represents actual results of Verra Mobility, which includes the results of HTA as of the acquisition date of March 1, 2018 and EPC as of the acquisition date of April
Slide 26: Consolidated Statement of Operations Adj. EBITDA Reconciliation
A P P E N D I X CONSOLIDATED STATEMENT OF OPERATIONS ADJ. EBITDA RECONCILIATION 27 VERRA MOBILITY Note: Represents actual results of Verra Mobility, which includes the results of HTA as of the acquisition date of March 1, 2018 and EPC as of the acquisition date of April 6, 2018. (Unaudited, $ in mil
Slide 27: Pro Forma Consolidated Statement of Operations
A P P E N D I X PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS 7.8 10.8 14.8 14.5 19.0 27.5 on disposal of assets, net 28 VERRA MOBILITY Note: Pro forma represents the actual results of Verra Mobility, HTA and EPC on a combined basis. (Unaudited, $ in millions) For the Three Months Ending March 31,J
Slide 28: Pro Forma Statement of Operations Adj. Revenue Reconciliation
A P P E N D I X PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS ADJ. REVENUE RECONCILIATION 0.2 0.1 0.0 0.0 0.0 0.0 Incentive 29 VERRA MOBILITY Note: Pro forma represents the actual results of Verra Mobility, HTA and EPC on a combined basis. (Unaudited, $ in millions) For the Three Months Ending Marc
Slide 29: Pro Forma Statement of Operations Adj. EBITDA Reconciliation
A P P E N D I X PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS ADJ. EBITDA RECONCILIATION 30 VERRA MOBILITY Note: Pro forma represents the actual results of Verra Mobility, HTA and EPC on a combined basis. (Unaudited, $ in millions) For the Three Months Ending March 31,June 30, September 30, Decembe
Slide 30: Consolidated Balance Sheet
A P P E N D I X CONSOLIDATED BALANCE SHEET 31 VERRA MOBILITY Note: Represents actual results of Verra Mobility, which includes the results of HTA as of the acquisition date of March 1, 2018 and EPC as of the acquisition date of April 6, 2018. ($ in millions) December 31, 2017March 31, 2018June 30, 2
Slide 31: Consolidated Cash Flow Data
A P P E N D I X CONSOLIDATED CASH FLOW DATA 32 VERRA MOBILITY Note: Represents actual results of Verra Mobility, which includes the results of HTA as of the acquisition date of March 1, 2018 and EPC as of the acquisition date of April 6, 2018. For the Three Months Ending March 31,June 30, September
Slide 32: Verra Mobility
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Slide 33: Verra Mobility
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