Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Q2 2019 Earnings Presentation
18 slides from Verra Mobility's earnings presentation, Aug 6, 2019
Slide 1: Verra Mobility Q2 Investor Presentation
Investor Overview Verra Mobility Q2 Investor Presentation For the Quarter Ended June 30, 2019 Exhibit 99.3
Slide 2: Forward-looking statements
Forward-looking statements This presentation includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,”
Slide 3: Who we are: Safe. Smart. Connected.
Verra Mobility SAFE. SMART. CONNECTED. A global leader in smart transportation, we work alongside our customers to relentlessly develop customized technology solutions to solve complex transportation challenges. Who we are Building safer cities by installing, maintaining and managing leading technol
Slide 4: We operate in two business segments
We operate in two business segments Who we are Commercial Services Government Solutions 1, What we do The Commercial Services segment generates revenue by providing fully outsourced tolling and violations management and title and registration services to our customers through integrated technologies
Slide 5: Commercial Services: tolling, violations, title and registration
Toll Management Violations Title and Registration Rental fleet toll collection and management, reducing in-house administrative burdens while providing convenience to the driver – daily or flat fee Commercial fleet toll collection and management driving value for customers Manage toll, parking and p
Slide 6: Government Solutions: safety cameras
Red-Light Safety Cameras Speed Safety Cameras Stop-Arm Safety Cameras Bus Lane Cameras Capture and process images and video of vehicles running red lights Capture and process images and video of vehicles exceeding speed limits Capture and process images and video of vehicles illegally passing school
Slide 7: Why invest in Verra Mobility?
Leadership, business model and strong financial performance Why invest in Verra Mobility? A market leader with highly differentiated platforms #1 provider of road safety cameras in the U.S. #1 provider of toll and violation management to rental car and fleet management companies in U.S. Contracted,
Slide 8: Proven financial performance
Strong Pro Forma Revenue Strong revenue and profitability create beneficial cash flow Proven financial performance $296 $333 $349 $389 Services CAGR: 9% 41% Adj. EBITDA CAGR 20% ($ in millions) 53% 48% 54% Improving Net-Debt Leverage Ratio Highly Recurring Revenue 54% Basis of Presentation: Verra Mo
Slide 9: Multiple levers for sustained growth
Verra Mobility has multiple levers for sustained growth Future growth Further migration to cashless and all-electronic tolling Intensified public attention given to traffic safety issues for drivers, pedestrians, bicyclists and law enforcement Benefit from Strong Industry Tailwind 1 Grow consumer mo
Slide 10: M&A Principles and Evaluation Criteria
Evaluation Criteria M&A Principles Strategic Fit: Connect all activities to Verra Mobility’s strategy Find opportunities where Verra Mobility’s and the target’s assets, when combined, can create unique value Financial Discipline: Protect Verra Mobility’s capital: seek returns above the cost of capit
Slide 11: Appendix
ad v5. VERRA “\._4 MOBILITY” >? APPENDIX
Slide 12: Adj. Pro Forma Revenue Reconciliation 2015 – 2017
Verra Mobility Adj. Pro Forma Revenue Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Verra Mobility (Pre-HTA, Pre-EPC) Adj. Revenue $215.4 $233.4 $232.4 HTA Adj. Revenue 70.5 88.3 103.7 EPC Reported Revenue 10.6 11.1 12.6 Verra Mobility Adj. Pro Forma Revenue $296.4 $332.8 $348.
Slide 13: Adj. Pro Forma Revenue Reconciliation 2015 – 2017 (detail)
Verra Mobility Adj. Pro Forma Revenue Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Verra Mobility (Pre-HTA, Pre-EPC) Reported Services Revenue $193.3 $212.5 $228.2 Adjustments: Non-cash Amortization of Contract Incentive 1.8 1.8 0.3 Sunshine State Tag Agency, Inc. Pre-acquisit
Slide 14: Adj. Pro Forma EBITDA Reconciliation 2015 – 2017
Verra Mobility Adj. Pro Forma EBITDA Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Verra Mobility (Pre-HTA, Pre-EPC) Adj. EBITDA $62.7 $87.1 $97.9 HTA Adj. EBITDA 53.7 67.4 80.9 EPC Adj. EBITDA 3.8 4.0 5.0 Verra Mobility Adj. Pro Forma EBITDA $120.2 $158.5 $183.8 Verra Mobility
Slide 15: (Pre-HTA, Pre-EPC) Adj. EBITDA Reconciliation 2015 – 2017
Verra Mobility (Pre-HTA, Pre-EPC) Adj. EBITDA Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Net Income $11.4 $29.0 $19.5 Definitional Adjustments: Depreciation and amortization 37.2 33.8 45.7 Interest expense, net 2.1 2.7 21.7 Income taxes 3.8 18.7 (29.4) Total definitional adj
Slide 16: EPC Adj. EBITDA Reconciliation 2015 – 2017
EPC Adj. EBITDA Reconciliation 2015 – 2017 EPC Unaudited ($ in millions) 2015 2016 2017 Net Income $2.9 $2.3 $3.6 Definitional Adjustments: Depreciation and amortization 0.0 0.0 0.0 Interest expense, net (0.1) (0.0) (0.0) Income taxes 0.8 0.4 1.0 Total definitional adjustments $0.8 $0.4 $1.0 Reporte
Slide 17: Adj. Pro Forma Quarterly Results 1Q18 – 2Q19
Verra Mobility Adj. Pro Forma Quarterly Results 1Q18 – 2Q19 Pro Forma Verra Mobility Unaudited ($ in millions) Q1 2018 As Reported Pro Forma Q1 2018 Pro Forma Q2 2018 As Reported Q3 2018 As Reported Q4 2018 As Reported Pro Forma 2018 Q1 2019 As Reported Q2 2019 As Reported TTM Q2 2019 As Reported HT
Slide 18: Thank You
Thank You http://ir.verramobility.com/