Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Debt Investor Presentation (November 2021)
40 slides from Verra Mobility's debt investor presentation, Nov 15, 2021
Slide 1: Lender Presentation November 2021
Lender Presentation November 2021 Exhibit 99.1
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: Presenters
Presenters Tricia Chiodo CFO History of financial discipline to create shareholder value Joined Verra Mobility in 2015 Former Co-President and CFO, Origami Owl Former CFO, RSC Equipment Rental (NYSE: RRR) David Roberts CEO, President Consulting experience with a history of partnering with founder-ow
Slide 4: Transaction Overview
0. Transaction Overview
Slide 5: Executive Summary
Executive Summary Transaction Overview Verra Mobility Corporation (the “Company”) is a leading provider of smart mobility technology solutions throughout the U.S., Canada and Europe The Company offers red-light, speed, bus lane, and school bus stop arm photo enforcement and citation administration t
Slide 6: Sources & Uses and Pro Forma Capitalization
Sources & Uses and Pro Forma Capitalization Transaction Overview (1) Market Cap as of 11/12/2021. (2) Verra Mobility EBITDA does not give pro forma effect to the Redflex acquisition. (3) T2 Systems LTM 9/30/21 EBITDA contribution.
Slide 7: Summary of Terms & Conditions – Fungible Add-On Term Loan B
Summary of Terms & Conditions – Fungible Add-On Term Loan B Transaction Overview Borrower: VM Consolidated, Inc (the “Borrower”) Guarantors: Greenlight Acquisition Corporation (“Holdings”) and all material domestic subsidiaries of the Borrower (Same as existing) Security: First lien on non-ABL Colla
Slide 8: Execution Timeline
Execution Timeline Transaction Overview
Slide 9: Company Overview
0. Company Overview
Slide 10: Who We Are
Who We Are Building safer cities by installing, maintaining and managing leading technology that positively impacts driver behavior and enhances road safety. Enabling smarter roadways by providing the integrated technology to help rental car companies and large fleet operators manage tolls, violatio
Slide 11: We Operate in Two Business Segments
We Operate in Two Business Segments * TTM Service Revenue for the period ending September 30, 2021 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 servi
Slide 12: Commercial Services segment detail
* TTM Service Revenue for the period ending September 30, 2021 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 ma
Slide 13: Government Solutions segment detail
* TTM Revenue for the period ending September 30, 2021 (1) Note percentage breakdown does not add to 100%. Provided segment breakdown excludes 8% related to ancillary / other Government Solutions service revenue Red-Light Safety Cameras Speed Safety Cameras Stop-Arm Safety Cameras Bus Lane Cameras C
Slide 14: Acquisitions Update
Acquisitions Update SO veRRA “i Moatuiry 3
Slide 15: Acquisition Overview & Rationale – T2 Systems
Acquisition Overview & Rationale T2 Systems Acquisition T2 Systems is the leading provider of end-to-end parking management solutions T2 provides parking payment stations and associated software as well as payment management services to universities, municipalities, healthcare providers, and private
Slide 16: Company Overview – T2 Systems
Company Overview T2 Systems Acquisition LTM 9/30/21 Revenue Breakdown Customers Municipal University T2 Systems, founded in 1994 LTM 9/30/21 Revenue: $69 million LTM 9/30/21 Adj. EBITDA: $19 million HQ: Indianapolis Employees: ~275 (100 of which are in Canada) Company Overview Portfolio Overview Fle
Slide 17: Historical Financial Performance – T2 Systems
Historical Financial Performance T2 Systems Acquisition Revenue Adj. EBITDA & Margin % T2 Systems 27% 28% 27% Revenue of $69.4M in LTM Sept-21 period reflects continued softness in hardware sales, while SaaS and subscription revenues has remained relatively stable 2020 acquisition of UP Safety has p
Slide 18: Revenue Synergy Workstreams
Revenue Synergy Workstreams T2 Systems Acquisition Leverage VRRM’s relationships w/ ~150 municipalities to accelerate T2’s growth Create program to incentivize current Government Solutions sales team to promote T2 offerings with existing customers Accelerate Growth with Cities and Municipalities 1 B
Slide 19: Acquisition Update – Redflex
Acquisition Update Redflex Acquisition On June 17, 2021 Verra Mobility closed the acquisition of Redflex holdings, a global leader providing intelligent traffic management products and services Redflex is a strategic asset that is highly complementary across products and regions, expanding Verra’s s
Slide 20: Key Credit Highlights
0. Key Credit Highlights
Slide 21: Key Credit Highlights
Key Credit Highlights Extensive Geographical Reach Industry Tailwinds Remain Strong Contracted recurring revenue business model Robust Margins Driving Significant Pro Forma Adj. EBITDA -Capex to De-lever 1 2 4 3 5 6 Multiple Levers for Sustained Growth Market leader with highly differentiated and pr
Slide 22: Market Leader with Highly Differentiated and Proprietary Platforms
Market Leader with Highly Differentiated and Proprietary Platforms Superior Scale Over 6 million vehicles managed for rental car and fleet management companies 171 million toll transactions and 1.3 million violations processed in 2020 Un-paralleled Service, Contribution and Integration with Customer
Slide 23: Extensive Geographical Reach
Extensive Geographical Reach Commercial Services Government Solutions Uniquely scaled and differentiated platform designed to meet customers’ existing needs and allow for innovation to meet customers’ future smart mobility needs Market leader in RAC and FMC toll transaction processing End-to-end, in
Slide 24: Contracted Recurring Revenue Business Model
Contracted Recurring Revenue Business Model Recurring Revenue Model(1) (1) Reflects LTM 9/30/21 Revenue (2) Typically exclusive within the United States (3) Pro Forma Revenue is pro forma for acquisitions completed prior to the Redflex and T2 acquisitions Large installed base of ~8,950 revenue gener
Slide 25: Industry Tailwinds Remain Strong
Industry Tailwinds Remain Strong Speed Low Single Digit Growth Rate Red Light Flat to Down Growth Rate School Bus Crossing Double Digit Growth Rate ($ in billions) CAGR: 6.0% Global Electronic Toll Collection (ETC) Systems Market Industry Growth Rates within Government Solutions(1) Increase in cashl
Slide 26: Robust Margins Driving Significant Pro Forma Adj. EBITDA - Capex to De-lever
Robust Margins Driving Significant Pro Forma Adj. EBITDA - Capex to De-lever Commentary Financial Profile Strong Margins Significant Cash Flow Generation Deleveraging Note: Pro forma EBITDA reflects pro forma impact of acquisitions prior to Redflex and T2 (1) Pro Forma Adj. EBITDA Margin calculated
Slide 27: Multiple Levers for Sustained 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 Leverage existing capabilities to further penetrate ride and car sharing markets Colla
Slide 28: Recent Financial Performance Update
0. Recent Financial Performance Update
Slide 29: Q3 Results by Segment – Commercial Services
For the Quarter Ended September 30, 2021 Q3 Results by Segment – Commercial Services Revenue of $77.3M in Q3 increased 75.0% from the same quarter in the prior year. Revenue returned to within $0.4M of Q3 2019 levels Adjusted EBITDA of $51.3M in the quarter increased $20.3M or 65% from the same peri
Slide 30: Q3 Results by Segment – Government Solutions
For the Quarter Ended September 30, 2021 Q3 Results by Segment – Government Solutions Government Solutions Commentary Government Solutions Revenue of $84.8M in Q3 increased 60.8% from the same quarter in the prior year Service revenue grew $9.8M or 25.2% organically and $15.9M or 41% in connection w
Slide 31: Consolidated Q3 Results
For the Quarter Ended September 30, 2021 Consolidated Q3 Results Total revenue increased by $65.2 million to $162.1 million or 67.3% in Q3 2021 from $96.9 million in Q3 2020 Service Revenue of $141.8 million includes $15.9 million from our June acquisition of Redflex. Organic service revenue grew ~5
Slide 32: Summary Performance
Pro Forma Adj. EBITDA(2) ($ in millions) Capital Expenditures(3) Pro Forma Revenue(1) Pro Forma Adj. EBITDA less Capex(2)(3) ($ in millions) ($ in millions) ($ in millions) Summary Performance (2) Note: Financial figures are pro forma for previous acquisitions, but does not give pro forma effect to
Slide 33: Key Credit Highlights
Key Credit Highlights Extensive Geographical Reach Industry Tailwinds Remain Strong Contracted recurring revenue business model Robust Margins Driving Significant Pro Forma Adj. EBITDA -Capex to De-lever 1 2 4 3 5 6 Multiple Levers for Sustained Growth Market leader with highly differentiated and pr
Slide 34: Appendix
0. Appendix
Slide 35: Verra Mobility Quarterly Results 2020 – Q3 2021
Verra Mobility Quarterly Results 2020 – Q3 2021 Verra Mobility acquired Redflex June 18th, 2021. Q2 2021 includes 12 days of Redflex actuals. Unaudited ($ in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full Year 2020 Q1 2021 Q2 2021 Q3 2021 Service revenue $99.5 $62.8 $83.0 $91.0 $336.3 $89.8 $116.4 $
Slide 36: Segment Results of Operations 2020 – YTD 2021
Commercial Services Government Solutions Unaudited ($ in millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full Year 2020 Q1 2021 Q2 2021 Q3 2021 Segment Revenue Government Solutions $55.5 $52.5 $52.8 $52.0 $212.7 $44.2 $62.2 $84.8 Segment Adj EBITDA Government Solutions $21.2 $20.3 $22.5 $20.6 $84.7 $17.8
Slide 37: Segment Results of Operations 2019 - 2020
Segment Results of Operations 2019 - 2020 Commercial Services Unaudited ($ in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Full Year 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Full Year 2020 Segment Total Revenue Commercial Services $62.6 $68.1 $77.6 $68.2 $276.5 $61.2 $27.3 $44.2 $48.2 $180.9 Segment Adj EB
Slide 38: Adj. Pro Forma Revenue Reconciliation 2016 - 2018
Unaudited ($ in millions) 2016 2017 2018 Verra Mobility (Pre-HTA, Pre-EPC) Reported Services Revenue $212.5 $228.2 $365.1 Adjustments: Non-cash Amortization of Contract Incentive 1.8 0.3 0.0 Sunshine State Tag Agency, Inc. Pre-acquisition Results 0.8 0.0 0.0 Verra Mobility (Pre-HTA, Pre-EPC) Adjuste
Slide 39: Adj. EBITDA Reconciliation 2016 - 2018
Unaudited ($ in millions) 2016 2017 2018 Net Income $29.0 $19.5 ($58.4) Definitional Adjustments: Depreciation and amortization 33.8 45.7 103.3 Interest expense, net 2.7 21.7 69.6 Income taxes 18.7 (29.4) (16.2) Total definitional adjustments $55.2 $38.0 $156.7 Reported EBITDA $84.2 $57.5 $98.3 Adju
Slide 40: Adj. Pro Forma EBITDA Reconciliation 2016 - 2018
Unaudited ($ in millions) 2016 2017 2018 * Verra Mobility (Pre-HTA, Pre-EPC) Adj. EBITDA $87.1 $97.9 $197.6 HTA Adj. EBITDA 67.4 80.9 10.7 EPC Adj. EBITDA 4.0 5.0 1.2 Verra Mobility Adj. Pro Forma EBITDA $158.5 $183.8 $209.5 Verra Mobility Verra Mobility Adj. Pro Forma EBITDA Reconciliation 2016 - 2
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