Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Q2 2024 Earnings Presentation
19 slides from Verra Mobility's earnings presentation, Aug 8, 2024
Slide 1: Verra Mobility Q2 2024 Earnings Presentation
Earnings Overview Verra Mobility Q2 2024 Earnings Presentation For the Quarter Ended June 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: Q2 2024 Financial Highlights Executive Summary
Q2 2024 Financial Highlights Executive Summary Total Revenue • Strong second quarter top-line performance across all business segments $222 million; 9% YoY growth - Commercial Services: 10% Y-o-Y growth driven by strong travel demand - Government Solutions: 8% Y-o-Y recurring service revenue growth
Slide 4: Strong top-line growth driven by travel & speed enforcement trends
Strong top-line growth driven by travel & speed enforcement trends Consolidated – Q2 Results Total Revenue ($M) Adjusted EBITDA ($M) ARR Product Total $222 $204 +9% $10 $8 $95 Total $102 $196 Service $212 +8% +8% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Adjusted EPS Adjusted Free Cash Flow ($M) 1 Factors imp
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 25% Adj EBITDA CAGR 24% Service Revenue CAGR 29% 45% 45% $853 46% $817 $742 $34 $36 $46 49% $551 $58 $372 $384 $394 $339 $784 $818 $57 $695 46% $271 $
Slide 6: Robust travel demand driving strong performance
Robust travel demand driving strong performance Commercial Services – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth $104 Adj. EBITDA $69 +10% $61 +14% $94 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 – Key Highlights • Second quarter Revenue up 10% over Q2 2023 due to strength in RAC toll
Slide 7: Revenue fueled by core market acceleration
Revenue fueled by core market acceleration Government Services – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth ARR Product Revenue Total Rev $98 $88 +11% $3 $6 Adj. Srvc Rev $85 +8% $91 $30 EBITDA $30 -2% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 – Key Highlights • Service Revenue grow
Slide 8: Revenue driven by Recurring SaaS and Services Growth
Revenue driven by Recurring SaaS and Services Growth T2 Systems – Q2 Results Total Revenue & YoY Growth Adjusted EBITDA & YoY Growth SaaS & Service Revenue Product Revenue $22 Total Rev $21 -5% $5 $4 Srvc Rev Adj. $17 Flat $17 $4 EBITDA -20% $3 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 – Key Highlights • M
Slide 9: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R9 S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) June 30, 2024 $949 $942 $918 $903 $928 Cash & Cash Equivalents $122 2.7x 2.6x 2.5x 2.4x 2.4x Debt $1,05
Slide 10: Reaffirming 2024 Financial Guidance
Reaffirming 2024 Financial Guidance In millions, except per share data & net leverage Original Guidance Current Guidance As of February 29, 2024 As of August 8, 2024 Total Revenue growth of ~8% for the full year Upper end of range Total Revenue $865 - $880 No change to 1Q raise CS driven by strong 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 $55 million in 2024 total cash taxes 2024 depreciation and amortization expected to be approximately
Slide 12: Appendix
Appendix 12
Slide 13: Key Definitions
KEY DEFINITIONS EBITDA and Adjusted EBITDA We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and other transactions that management believes are not indicative of our o
Slide 14: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2021 – Q2 2024 Unaudited ($ in millions) Full Year 2021 Full Year 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Full Year 2023 Q1 2024 Q2 2024 Service revenue $492.8 $695.2 $184.7 $196.0 $201.0 $201.8 $783.6 $202.7 $212.0 Product sales 57.7 46.4 7.2 $8.4 8.9 9.2 33.7 7.0 10.4
Slide 15: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 2021 2022 2023 Total Revenue Commercial Services $260.9 $326.0 $85.6 $94.5 $98.1 $94.5 $372.8 $95.9 $104.0 Segmen
Slide 16: Adj. Net Income and Adj. Diluted EPS Reconciliations
Verra Mobility Adj. Net Income and Adj. Diluted EPS Reconciliations (in $MM, except per share data) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Income $19.1 $30.3 $3.0 $29.1 $34.2 Amortization of intangibles 20.0 18.9 16.7 16.7 16.7 Transaction and other related expenses 0.1 0.2 0.1 1.5 0.1 Transfor
Slide 17: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA Q2 2024 ($MM) 2019 2020 2021 2022 2023 TTM Adjusted EBITDA $ 241 $ 182 $ 271 $ 339 $372 $384 Net cash provided by operating $ 134 $ 47 $ 193 $ 218 $206 $173 activities Purchases of installation and service parts and property and eq
Slide 18: Net Debt and Net Leverage Reconciliation
Verra Mobility Net Debt and Net Leverage Reconciliation Q2 Q3 Q4 Q1 Q2 ($MM) 2023 2023 2023 2024 2024 2021 Term Loan, due 2028 $ 809 $ 707 $ 705 $ 702 $ 700 Plus: Senior Notes, due 2029 $ 350 $ 350 $ 350 $ 350 $ 350 Long-term Debt, excluding original issue discounts and unamortized $ 1,159 $ 1,057 $
Slide 19: Thank You
Thank You http://ir.verramobility.com/