Verra Mobility Corporation · NASDAQ:VRRM
Verra Mobility — Q1 2023 Earnings Presentation
22 slides from Verra Mobility's earnings presentation, May 4, 2023
Slide 1: Investor Overview
Investor Overview Verra Mobility Q1 2023 Investor Presentation For the Quarter Ended March 31, 2023
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 Key Investment Themes
Verra Mobility Key Investment Themes 1 Global leader of smart mobility solutions that address mission-critical transportation needs for cities, fleets and universities 2 Well-positioned in large, growing and attractive markets with strong secular tailwinds 3 Robust free cash flow combined with disci
Slide 4: Solving Complex Transportation Challenges
Solving Complex Transportation Challenges We solve complex We make parking We save lives by payment challenges for more efficient and help changing driver behavior. shared vehicles. reduce congestion. U.S. drivers spend Vehicles in the U.S. 43,000 people died in make 5.7B+ toll trip 17 hours annuall
Slide 5: Market-leading financial profile across a range of attractive markets
Market-leading financial profile across a range of attractive markets TTM Q1 2023 Key Metrics Global Presence Total Revenue1 Re-occurring Revenue2 ~1,600 ~2,400 $763M 94% Employees Globally Customers Served Globally Adj EBITDA1 Adj. EBITDA Margin Consolidated Sales (FY22) by Geography $351M 46% 91%
Slide 6: Positioned for Continued Growth & Profitability
Positioned for Continued Growth & Profitability Commercial Services Government Solutions Parking Solutions (~44%1) (~45%1) (~11%1) Business Segment Leading technology provider of end-to-end Market leader in toll and violation Industry leader in automated traffic parking management solutions in North
Slide 7: Large, Attractive Markets Fueled by Long-Term Macro Trends
Large, Attractive Markets Fueled by Long-Term Macro Trends Connected Fleet Solutions Urban Mobility Estimated Total Global Addressable Market1,2 $14B in 2025 $26B in 2025 Key End Markets Fleet Telematics Vehicle Traffic Parking & Curbside Road Usage Administration Payments Management Management Char
Slide 8: A Customer-Centric Growth Playbook
A Customer-Centric Growth Playbook 1. Deep Customer Relationships 2. Differentiated Solutions BUILD deep meaningful relationships with CREATE new opportunities to serve based on customers based on trust service excellence and understanding of customer needs 95%+ Customer Renewal Rate1 4. Management
Slide 9: A Growth Playbook to Deliver Strong Organic Growth
A Growth Playbook to Deliver Strong Organic Growth Commercial Government Parking Services Solutions Solutions 1. Grow the Core Grow managed vehicle fleets Open new cities Add new universities & municipalities 2. Expand into Adjacent markets and offerings Scale and accelerate Bus Lane Open new market
Slide 10: Experienced and Proven Leadership
Experienced and Proven Leadership David Roberts Craig Conti Jon Keyser Jason Rivera President & CEO Chief Financial Officer Chief Legal Officer Chief Technology Officer Steve Lalla Jon Baldwin Adam Blake Mike McMillin EVP, Commercial Services EVP, Government Solutions President, T2 Systems SVP, Corp
Slide 11: Commercial Services Leading Fleet Mobility Solutions Provider
Commercial Services Leading Fleet Mobility Solutions Provider Strategic Advantages TAM Organic Growth $7B HSD L/T ▪ Strategic differentiation based on large scale and deep integrations with our customers and key partners Commercial Sales Sales ▪ Proprietary cloud applications Services Segment by Sol
Slide 12: Government Solutions Leading Global Provider Poised for L/T Growth
Government Solutions Leading Global Provider Poised for L/T Growth Strategic Advantages TAM Organic Growth Long-term relationships with state and $11B MSD L/T ▪ local governments ▪ Complete solutions reduce risk and Government Sales Sales by time to deploy Solutions Segment 1 Breakdown 2 Geography ▪
Slide 13: T2 Systems Leading Parking Solutions Partner
T2 Systems Leading Parking Solutions Partner Strategic Advantages Total Revenue Adj. EBITDA NA TAM1 Q1 2023 TTM Financial Results $81M $14M $4B ▪ #1 market position in large universities ▪ Diversified product portfolio that scales Sales and provides end-to-end solutions Breakdown 2 Years of Renewal
Slide 14: Core Businesses Drive Strong Free Cash Flow Conversion and Strong Growth
Core Businesses Drive Strong Free Cash Flow Conversion and Strong Growth Total Revenue ($M) Adjusted EBITDA & Margins ($M) Adj EBITDA 46% Total Revenue CAGR 12% CAGR 18% 49% 54% $763 $351 46% $551 $271 $449 $241 $394 $182 2019 2020 2021 Q1 2023 TTM 2019 2020 2021 Q1 2023 TTM Free Cash Flow % Adj. EB
Slide 15: Strong, Flexible Balance Sheet + Robust Cash Flow
2 0 2 1 I N V E S T O R D A Y – © B U I L D E R15S F I R S T S O U R C E Strong, Flexible Balance Sheet + Robust Cash Flow Capital Summary & Financial Highlights ($M) Net Leverage Improvement ($M) $1,152 $1,157 $1,187 $1,131 $1,107 March 31, 2023 Cash & Cash Equivalents $64 3.8x 3.5x 3.5x 3.3x 3.2x
Slide 16: Demonstrated History of Disciplined Capital Allocation
Demonstrated History of Disciplined Capital Allocation 2018 – Q1 2023 Capital Deployment ($M) Capital Allocation Snapshot ($M) 1 ▪ Organic Investment Capex Share Buybacks ▪ Revenue generating capital expenditures (e.g., cameras) 13% Debt 10% ▪ Proprietary software development repayment 7% ▪ Minimal
Slide 17: Reaffirming 2023 Financial Outlook
Reaffirming 2023 Financial Outlook 2023 Guidance In millions, except per share data & net leverage Commentary Total Revenue growth of 5% to 7% as CS … HSD growth reported; ~6% to 8% in constant Fx 1 T2 … HSD growth Total Revenue $780 - $800 CS driven by strong travel demand GS … LSD growth (GS … MSD
Slide 18: Appendix
Appendix 18
Slide 19: Verra Mobility Quarterly Results
Verra Mobility Quarterly Results 2020 - 2023 Unaudited ($ in millions) Full Year 2020 Full Year 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Full Year 2022 Q1 2023 Service revenue $336.3 $492.8 $161.1 $174.5 $180.6 $179.0 $695.2 $184.7 Product sales 57.3 57.7 9.3 13.0 17.0 7.1 46.4 7.2 Total revenue $393.6
Slide 20: Verra Mobility Quarterly Results: Segment Results of Operations
Verra Mobility Quarterly Results Segment Results of Operations Commercial Services Unaudited ($ in millions) Full Year Full Year Full Year Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 2020 2021 2022 Total Revenue Commercial Services $180.9 $260.9 $73.5 $84.9 $86.1 $81.6 $326.0 $85.6 Segment Adj EBITDA Co
Slide 21: Free Cash Flow Reconciliation, incl. % of Adj. EBITDA
Verra Mobility Free Cash Flow Reconciliation, incl. % of Adj. EBITDA TTM Q1 ($MM) 2018 2019 2020 2021 2022 2023 Adjusted EBITDA $ 198 $ 241 $ 182 $ 271 $ 339 $351 Net cash provided by operating activities $ 46 $ 134 $ 47 $ 193 $ 218 $232 Transaction and other related expenses 57 - - - - - Transforma
Slide 22: Thank You
Thank You <S\. VERRA A MOBILITY” safe. smart. connected =?