Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Investor Presentation (May 2019)
29 slides from Verra Mobility's investor presentation, May 31, 2019
Slide 1: Investor Presentation May 2019
Investor Presentation May 2019
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: Verra Mobility Who We Are
Verra Mobility Who We Are SAFE. SMART. CONNECTED. Verra Mobility is a leader in global mobility, helping the world move more safely and easily Enabling smarter roadways by helping commercial fleets manage the complexity of tolls, violations and vehicle registrations Developing more connected systems
Slide 4: Verra Mobility at a Glance
Verra Mobility at a Glance A Global Leader in Smart Transportation Solutions that Seamlessly Connect People, Technology and Data Across the Smart Mobility Ecosystem 4,500+ speed, red-light and school bus stop arm safety cameras installed Leading provider of tech-enabled smart transportation solution
Slide 5: We Operate in Two Business Segments
We Operate in Two Business Segments $241M 2018 Service Revenue(1) $143M 2018 Service Revenue(2) Basis of Presentation: Verra Mobility made two acquisitions early in 2018; the data presented has been adjusted as if the acquisitions were included in the results for all periods. The unadjusted and adju
Slide 6: Commercial Services
Commercial Services Providing Tolling, Violation Management and Title and Registration Services 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 Commer
Slide 7: Government Solutions
Government Solutions Increasing Road Safety by Changing Driver Behavior Red-Light Safety Cameras Speed Safety Cameras School Bus 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 spe
Slide 8: Investment Highlights
Investment Highlights
Slide 9: Investment Highlights
Investment Highlights Market Leader with Highly Differentiated Platforms and a Comprehensive Product Portfolio Compelling and Durable Value Proposition Underpinned by Proprietary Technology Large and Growing Industry with Strong Tailwinds Contracted, Recurring Revenue Business Model with Attractive
Slide 10: Market Leader with Highly Differentiated Platforms and Comprehensive Product Portfolio
Market Leader with Highly Differentiated Platforms and a Comprehensive Product Portfolio Commercial Services Government Solutions Violations Toll Management European Violations Collection Title and Registration Note: Toll Management services are provided in 24 states. Violations services are provide
Slide 11: Compelling and Durable Value Proposition Underpinned by Proprietary Technology
Compelling and Durable Value Proposition Underpinned by Proprietary Technology Verra Mobility’s Proprietary Technology and Capabilities are Critical to the Smart Mobility Ecosystem Unique software platform, integrated with 50+ individual tolling authorities in the US and customer enterprise systems
Slide 12: Large and Growing Industry with Strong Tailwinds
Large and Growing Industry with Strong Tailwinds Speed Low Single Digit Growth Rate Red Light Flat to Down Growth Rate School Bus Crossing Double Digit Growth Rate ($ in billions) CAGR: 8.7% Toll Industry Revenue 2010 – 2015 Industry Growth Rates within Government Solutions(1) Management estimates t
Slide 13: Contracted, Recurring Revenue Business Model with Attractive Unit Economics
Contracted, Recurring Revenue Business Model with Attractive Unit Economics Large installed base of 4,500+ cameras provides a recurring and highly visible revenue stream Multi-year, typically exclusive contracts(2) with blue-chip Commercial Services customers Strong RFP win rates in Government Solut
Slide 14: Attractive Financial Profile with Robust Margins and Strong Free Cash Flow
Attractive Financial Profile with Robust Margins and Strong Free Cash Flow Generation The Company has grown services revenue at near double digits the past few years Scalable technology platform provides operating efficiencies Pro forma margin profile improvement driven by growth in toll management
Slide 15: Multiple Levers for Sustained Growth
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 Grow consumer mobility platform with increased ad
Slide 16: Experienced Management Team with a Track Record of Success
Experienced Management Team with a Track Record of Success Garrett Miller Executive Vice President, Government Solutions Joined in May 2019 Previously served in various leadership and P&L management roles at SAP and GE Mike McMillin Vice President, Corporate Development and Strategy Joined as VP, Co
Slide 17: Financial Overview
Financial Overview
Slide 18: Historical Financial Performance
Historical Financial Performance Adj. Pro Forma Revenue Commercial Services full year 2018 pro forma adj. revenue of $241.4 million grew $33.4 million or 16% from $208.0 million for the full year 2017 Government Solutions full year 2018 revenue of $147.5 million grew $6.8 million of 4.8% from $140.7
Slide 19: Q1 2019 Financial Performance Update
Q1 2019 Financial Performance Update Grew total revenue by $10.5 million to $98.5 million in Q1 2019 from $88.0 million in Q1 2018 Adjusted EBITDA of $51.3 million, up from $45.6 million in the same quarter of 2018 Generated cash flow from operations of $37.4 million ($ in millions) ($ in millions)
Slide 20: Appendix
Appendix
Slide 21: 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 $348.
Slide 22: Adj. Pro Forma Revenue Reconciliation 2015 – 2017
Verra Mobility Adj. Pro Forma Revenue Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Verra Mobility (Pre-HTA, Pre-EPC) Reported Services Revenue $193.3 $212.5 $228.2 Adjustments: Non-cash Amortization of Contract Incentive 1.8 1.8 0.3 Sunshine State Tag Agency, Inc. Pre-acquisit
Slide 23: Adj. Pro Forma EBITDA Reconciliation 2015 – 2017
Verra Mobility Adj. Pro Forma EBITDA Reconciliation 2015 – 2017 Unaudited ($ 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 $183.8 Verra Mobility
Slide 24: Verra Mobility (Pre-HTA, Pre-EPC) Adj. EBITDA Reconciliation
Verra Mobility (Pre-HTA, Pre-EPC) Adj. EBITDA Reconciliation 2015 – 2017 Unaudited ($ in millions) 2015 2016 2017 Net Income $11.4 $29.0 $19.5 Definitional Adjustments: Depreciation and amortization 37.2 33.8 45.7 Interest expense, net 2.1 2.7 21.7 Income taxes 3.8 18.7 (29.4) Total definitional adj
Slide 25: HTA Adj. EBITDA Reconciliation 2015 – 2017
HTA Adj. EBITDA Reconciliation 2015 – 2017 HTA Unaudited ($ in millions) 2015 2016 2017 Net Income $48.6 $60.7 $67.6 Definitional Adjustments: Depreciation and amortization 0.4 1.4 2.1 Interest expense, net (0.0) 0.0 0.1 Income taxes 0.3 0.3 0.4 Total definitional adjustments $0.7 $1.7 $2.6 Reported
Slide 26: EPC Adj. EBITDA Reconciliation 2015 – 2017
EPC Adj. EBITDA Reconciliation 2015 – 2017 EPC Unaudited ($ 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 $1.0 Reporte
Slide 27: Adj. Pro Forma Quarterly Results 1Q18 – 1Q19
Verra Mobility Adj. Pro Forma Quarterly Results 1Q18 – 1Q19 Unaudited ($ 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 TTM Q1 2019 As Reported HTA EPC Service revenue $69.0 $15.8 $3.0 $87.8
Slide 28: Adj. Pro Forma Quarterly Segment Results 1Q18 – 1Q19
Verra Mobility Adj. Pro Forma Quarterly Segment Results 1Q18 – 1Q19 Unaudited ($ in millions) For the Three Months Ended Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Segment Revenue Verra Mobility Commercial Services $32.4 $59.8 $72.0 $58.4 $222.6 $62.6 HTA 15.8 – – – 15.8 – EPC 3.0 – – – 3.0 – Othe
Slide 29: Thank You
Thank You Verra Mobility http://ir.verramobility.com/