VRRM Verra Mobility Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 27, 2025

 

VERRA MOBILITY CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware	1-37979	81-3563824
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

 

1150 N. Alma School Road Mesa, Arizona (Address of principal executive offices)	85201 (Zip Code)

(480) 443-7000

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

(Title of each class)		(Trading symbol)		(Name of each exchange on which registered)
Class A common stock, par value $0.0001 per share		VRRM		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

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Item 2.02 Results of Operations and Financial Condition.

On February 27, 2025, Verra Mobility Corporation (the “Company”) issued a press release announcing its financial results for the quarter and fiscal year ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 7.01 Regulation FD Disclosure.

The Company will host a conference call and live webcast to discuss its fourth quarter and full year 2024 financial results on February 27, 2025, at 5:00 p.m. Eastern time. Live and archived webcasts of the presentation will also be available on the Company’s investor relations website at ir.verramobility.com, although the Company reserves the right to discontinue that availability at any time.

On February 27, 2025, the Company posted supplemental investor materials on its investor relations website. The Company uses its investor relations website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company’s investor relations website in addition to following its press releases, SEC filings and public conference calls and webcasts.

The information being furnished pursuant to Item 2.02, including Exhibit 99.1, and Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description of Exhibits
99.1		Press Release, dated February 27, 2025, issued by Verra Mobility Corporation.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: February 27, 2025	Verra Mobility Corporation
	By:	/s/ Craig Conti
	Name:	Craig Conti
	Title:	Chief Financial Officer

 

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Verra Mobility Announces Fourth Quarter and Full Year 2024 Financial Results

 

 

MESA, Ariz., February 27, 2025 /PRNewswire/ – Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the fourth quarter and full year ended December 31, 2024.

 

“We delivered a solid fourth quarter, highlighted by strong earnings and cash flow generation,” said David Roberts, President and CEO, Verra Mobility. “Resilient fourth quarter travel demand drove continued strength in Commercial Services and increased demand for automated traffic enforcement drove solid performance in Government Solutions. Our business fundamentals are strong and intact. Travel demand appears resilient and is expected to be a source of ongoing strength for Commercial Services. We expect that our strong sales bookings in Government Solutions will drive solid revenue growth over the foreseeable future and, we expect our Parking Solutions business to exit 2025 on a strong run-rate. Based on these factors, we anticipate that our long-term outlook remains intact relative to the 2026 Revenue and Adjusted EBITDA targets that we provided at our July 2022 Investor Day.”

Fourth Quarter 2024 Financial Highlights

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*Non-GAAP measure; refer to “Non-GAAP Financial Measures” further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

 

We report our results of operations based on three operating segments:

Fourth Quarter 2024 Segment Detail

Full Year 2024 Financial Highlights

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Liquidity: As of December 31, 2024, cash and cash equivalents were $77.6 million, and we generated $223.6 million in net cash provided by operating activities for the year ended December 31, 2024.

Net Debt and Net Leverage*: As of December 31, 2024, Net Debt was $968.0 million and Net Leverage was 2.4x, as compared to $918.3 million and 2.5x as of December 31, 2023.

*Non-GAAP measure; refer to “Non-GAAP Financial Measures” further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.

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Share Repurchases

In October 2023, our Board of Directors authorized a share repurchase program for up to an aggregate amount of $100.0 million of our outstanding shares of Class A Common Stock over an 18-month period in open market, accelerated share repurchase (“ASR”) or privately negotiated transactions. In June 2024, we entered into a share repurchase agreement with a stockholder, pursuant to which we repurchased, directly from the stockholder, 2.0 million shares of our Class A Common Stock for an aggregate purchase price of $51.5 million. During the fourth quarter of 2024, we repurchased approximately 1.5 million shares through open market transactions and paid $35.8 million. In December 2024, our Board of Directors increased the authorization to repurchase up to an additional $100 million of our shares under the existing October 2023 program, providing us with approximately $112.7 million available for repurchases. On December 11, 2024, we entered into an ASR agreement with a third-party financial institution and paid $112.7 million to receive an initial delivery of 3,821,958 shares of our Class A Common Stock. The final settlement is expected to occur in the first quarter of 2025, at which time, we expect to receive additional shares calculated using a volume-weighted average price over the term of the ASR agreement. We paid a total of $200.0 million for share repurchases during fiscal year 2024. All repurchased shares were subsequently retired.

Cancellation of the Interest Rate Swap

We exercised our option to cancel our interest rate swap agreement, effective the end of the third quarter of 2024. The interest rate swap was previously used to hedge our exposure to higher interest rates associated with the variable portion of the interest rate on our term loan.

Goodwill Impairment

We recorded a $97.1 million impairment to goodwill in our Parking Solutions segment during fiscal year 2024, which is presented in a separate line item on the consolidated statements of operations. This impairment was in connection with our 2024 assessment of goodwill where the Parking Solutions reporting unit's carrying value exceeded the estimated fair value.

Term Loan Refinancing

In February 2024, we entered into a third amendment and in October 2024, a fourth amendment to refinance our term loan. Pursuant to these amendments, the interest rate on the term loan was reduced by an aggregate 1.00% to Secured Overnight Financing Rate (“SOFR”) plus 2.25% from SOFR plus 3.25% with the SOFR floor unchanged at 0.00%. The credit spread adjustment in the term loan, ranging from approximately 0.1% to 0.7%, was eliminated. In addition, the term loan agreement was amended to no longer require the repayment of principal in quarterly installments, with principal now required to be repaid at maturity in fiscal year 2028.

2025 Full Year Guidance

Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.

We are providing the following forward-looking guidance, which includes Adjusted EBITDA, Adjusted EPS, Free Cash Flow, and Net Leverage, all of which are non-GAAP financial measures (defined below):

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Underlying Assumptions for 2025 Full Year Guidance

Conference Call Details

Date: February 27, 2025

Time: 5:00 p.m. Eastern Time

To access this conference call by telephone, register here to receive dial-in numbers and a unique PIN to join the call.

Webcast Information: Available live in the “Investor Relations” section of our website at http://ir.verramobility.com.

A replay of the call will also be made available on the Investor Relations website. A copy of the earnings call presentation will be posted to our website.

About Verra Mobility

Verra Mobility is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Our transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. We also solve complex payment, utilization and compliance challenges for fleet owners and rental car companies. We are headquartered in Arizona, and operate in North America, Europe, Asia and Australia. For more information, please visit www.verramobility.com.

Forward-Looking Statements

This press release 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,” “should,” “will” or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, including expected resilience of travel demand and impact on our Commercial Services segment, expected strong sales bookings in our Government Solutions segment and a strong run-rate in our Parking Solutions segment, expected operating results and metrics, such as revenue growth, expansion plans and opportunities, 2025 full year guidance, including expected total revenue, Adjusted EBITDA, Adjusted EPS, Free Cash Flow and Net Leverage, the underlying assumptions for the 2025 full year guidance, including expected weighted average fully-diluted share count, effective tax rate and cash taxes, expected depreciation and amortization, expected interest expense, net and total net cash interest, expected change in working capital and expected capital expenditures, and our ability to meet our long-term outlook, including

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2026 revenue and Adjusted EBITDA targets. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, the impact of negative industry and macroeconomic conditions on our customers or the Company; customer concentration in our Commercial Services and Government Solutions segments including risks impacting such segments, including travel demand and legislation; risks related to our contract with the New York City Department of Transportation, which comprises a material portion of our revenue and was extended through December 31, 2025, including risks related to winning the competitive procurement process for a new contract or if we win the competitive procurement at materially different terms and pricing as our current contract; our reliance on specialized third-party providers; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failure in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations/our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to manage our substantial level of indebtedness; our ability to maintain an effective system of internal controls; our ability to properly perform under our contracts and otherwise satisfy our customers; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, disputes and regulatory investigations; our reliance on specialized third-party vendors and service providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the “SEC”). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2024 Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

Additional Information

We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.

We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

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Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, Free Cash Flow or Net Leverage which are included in our 2025 financial guidance above, in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net (loss) income, Adjusted EPS to net (loss) income per share, Free Cash Flow to net cash provided by operating activities and Net Leverage, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.

We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow in connection with managing the business and we use the non-GAAP metrics “Net Debt” and “Net Leverage” to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net (loss) income, cash flows from operations, earnings per share, other consolidated income, cash flow or debt data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA

We define “EBITDA” as net (loss) income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items.

Free Cash Flow

We define “Free Cash Flow” as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment.

Adjusted Net Income

We define “Adjusted Net Income” as net (loss) income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as change in fair value of private placement warrants, change in fair value of interest rate swap, loss on extinguishment of debt, among other items.

Adjusted EPS

We define “Adjusted EPS” as Adjusted Net Income divided by the diluted weighted average shares for the period.

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Adjusted EBITDA Margin

We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue.

Net Debt

We define “Net Debt” as total long-term debt (including current portion of long-term debt) excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.

Net Leverage

We define “Net Leverage” as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.

Additional Metrics

Recurring Revenue or Recurring Service Revenue

We define “Recurring Revenue” or “Recurring Service Revenue” as all revenue other than product sales for each of our segments, as we typically generate revenue on a recurring monthly basis under long-term contracts with our customers. This includes our Commercial Services segment where we generate service revenue through processing of tolls, violations, and titles and registrations.

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

			December 31,
(In thousands, except per share data)			2024				2023
Assets
Current assets:
Cash and cash equivalents			$	77,560			$	136,309
Restricted cash				3,594				3,413
Accounts receivable (net of allowance for credit losses of $17.0 million and $18.5 million at December 31, 2024 and 2023, respectively)				206,503				197,824
Unbilled receivables				48,193				37,065
Inventory				15,502				17,966
Prepaid expenses and other current assets				42,647				46,961
Total current assets				393,999				439,538
Installation and service parts, net				36,631				22,895
Property and equipment, net				141,601				123,248
Operating lease assets				29,895				33,523
Intangible assets, net				232,297				301,025
Goodwill				735,615				835,835
Other non-current assets				44,451				33,919
Total assets			$	1,614,489			$	1,789,983
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable			$	91,224			$	78,749
Deferred revenue				29,374				28,788
Accrued liabilities				73,980				93,119
Tax receivable agreement liability, current portion				5,163				5,098
Current portion of long-term debt				—				9,019
Total current liabilities				199,741				214,773
Long-term debt, net of current portion				1,034,211				1,029,113
Operating lease liabilities, net of current portion				25,757				29,124
Tax receivable agreement liability, net of current portion				42,977				48,369
Asset retirement obligations				15,493				14,580
Deferred tax liabilities, net				14,699				18,360
Other long-term liabilities				16,486				14,197
Total liabilities				1,349,364				1,368,516
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value				—				—
Common stock, $0.0001 par value				16				17
Additional paid-in capital				551,955				557,513
Accumulated deficit				(269,287	)			(125,887	)
Accumulated other comprehensive loss				(17,559	)			(10,176	)
Total stockholders' equity				265,125				421,467
Total liabilities and stockholders' equity			$	1,614,489			$	1,789,983

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE (LOSS) INCOME

(Unaudited)

 

		Three Months Ended December 31,								Year Ended December 31,
(In thousands, except per share data)		2024				2023				2024				2023
Service revenue		$	209,671			$	201,818			$	841,676			$	783,595
Product sales			11,829				9,195				37,531				33,715
Total revenue			221,500				211,013				879,207				817,310
Cost of service revenue, excluding depreciation and amortization			4,664				4,514				18,988				18,232
Cost of product sales			8,303				7,022				27,058				25,231
Operating expenses			74,368				76,915				295,937				273,288
Selling, general and administrative expenses			52,622				73,056				195,054				198,550
Depreciation, amortization and (gain) loss on disposal of assets, net			27,857				26,177				109,072				113,195
Goodwill impairment			97,076				—				97,076				—
Total costs and expenses			264,890				187,684				743,185				628,496
(Loss) income from operations			(43,390	)			23,329				136,022				188,814
Interest expense, net			16,699				20,859				73,902				86,701
Change in fair value of private placement warrants			—				—				—				24,966
Tax receivable agreement liability adjustment			(257	)			(3,077	)			(257	)			(3,077	)
Loss on interest rate swap			—				2,764				494				817
Loss on extinguishment of debt			1,117				—				1,745				3,533
Other income, net			(5,000	)			1,643				(18,970	)			(11,123	)
Total other expenses			12,559				22,189				56,914				101,817
(Loss) income before income taxes			(55,949	)			1,140				79,108				86,997
Income tax provision (benefit)			10,707				(1,882	)			47,660				29,982
Net (loss) income		$	(66,656	)		$	3,022			$	31,448			$	57,015
Other comprehensive (loss) income:
Change in foreign currency translation adjustment			(10,747	)			6,250				(7,383	)			2,689
Total comprehensive (loss) income		$	(77,403	)		$	9,272			$	24,065			$	59,704
Net (loss) income per share:
Basic		$	(0.41	)		$	0.02			$	0.19			$	0.36
Diluted		$	(0.41	)		$	0.02			$	0.19			$	0.36
Weighted average shares outstanding:
Basic			163,342				166,437				165,090				158,777
Diluted			163,342				168,585				167,717				160,017

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		Three Months Ended December 31,
($ in thousands)		2024				2023
Cash Flows from Operating Activities:
Net (loss) income		$	(66,656	)		$	3,022
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization			27,543				26,232
Amortization of deferred financing costs and discounts			669				1,079
Tax receivable agreement liability adjustment			(257	)			(3,077	)
Change in fair value of interest rate swap			—				3,041
Loss on extinguishment of debt			1,117				—
Credit loss expense			1,577				1,501
Deferred income taxes			(8,328	)			(19,801	)
Stock-based compensation			4,372				5,130
Goodwill impairment			97,076				—
Impairment of long-lived assets and ROU assets			170				4,280
Other			654				53
Changes in operating assets and liabilities:
Accounts receivable			(14,773	)			(6,605	)
Unbilled receivables			1,925				3,277
Inventory			1,406				2,209
Prepaid expenses and other assets			9,349				(5,109	)
Deferred revenue			(170	)			(5,875	)
Accounts payable and other current liabilities			(9,825	)			23,453
Other liabilities			(5,362	)			2,920
Net cash provided by operating activities			40,487				35,730
Cash Flows from Investing Activities:
Cash receipts for interest rate swap			—				277
Purchase of intellectual property			—				(500	)
Purchases of installation and service parts and property and equipment			(18,847	)			(16,484	)
Cash proceeds from the sale of assets			158				110
Net cash used in investing activities			(18,689	)			(16,597	)
Cash Flows from Financing Activities:
Borrowings on long-term debt			36,591				—
Repayment of long-term debt			(41,101	)			(2,255	)
Payment of debt issuance costs			(276	)			(97	)
Share repurchases and retirement			(148,479	)			—
Proceeds from exercise of stock options			1,587				3,074
Payment of employee tax withholding related to RSUs and PSUs vesting			(175	)			(65	)
Net cash (used in) provided by financing activities			(151,853	)			657
Effect of exchange rate changes on cash and cash equivalents			(2,004	)			1,602
Net (decrease) increase in cash, cash equivalents and restricted cash			(132,059	)			21,392
Cash, cash equivalents and restricted cash - beginning of period			213,213				118,330
Cash, cash equivalents and restricted cash - end of period		$	81,154			$	139,722

 

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VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		For the Year Ended December 31,
($ in thousands)		2024				2023
Cash Flows from Operating Activities:
Net income		$	31,448			$	57,015
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			108,525				113,067
Amortization of deferred financing costs and discounts			4,106				4,679
Change in fair value of private placement warrants			—				24,966
Tax receivable agreement liability adjustment			(257	)			(3,077	)
Change in fair value of interest rate swap			1,316				(320	)
Loss on extinguishment of debt			1,745				3,533
Credit loss expense			13,002				9,054
Deferred income taxes			(10,012	)			(27,037	)
Stock-based compensation			22,958				17,476
Goodwill impairment			97,076				—
Impairment of long-lived assets and ROU assets			170				4,280
Other			1,403				359
Changes in operating assets and liabilities:
Accounts receivable			(22,664	)			(42,459	)
Unbilled receivables			(11,987	)			(6,252	)
Inventory			1,917				1,148
Prepaid expenses and other assets			5,926				(2,161	)
Deferred revenue			1,231				(2,400	)
Accounts payable and other current liabilities			(16,425	)			50,512
Other liabilities			(5,836	)			3,718
Net cash provided by operating activities			223,642				206,101
Cash Flows from Investing Activities:
Cash receipts (payments) for interest rate swap			822				(1,137	)
Purchase of intellectual property			—				(500	)
Purchases of installation and service parts and property and equipment			(70,856	)			(56,985	)
Cash proceeds from the sale of assets			314				332
Net cash used in investing activities			(69,720	)			(58,290	)
Cash Flows from Financing Activities:
Borrowings on long-term debt			36,591				—
Repayment of long-term debt			(45,610	)			(181,519	)
Payment of debt issuance costs			(716	)			(459	)
Proceeds from the exercise of warrants			—				161,408
Share repurchases and retirement			(199,979	)			(100,000	)
Proceeds from exercise of stock options			4,288				5,919
Payment of employee tax withholding related to RSUs and PSUs vesting			(6,001	)			(3,142	)
Net cash used in financing activities			(211,427	)			(117,793	)
Effect of exchange rate changes on cash and cash equivalents			(1,063	)			589
Net (decrease) increase in cash, cash equivalents and restricted cash			(58,568	)			30,607
Cash, cash equivalents and restricted cash - beginning of period			139,722				109,115
Cash, cash equivalents and restricted cash - end of period		$	81,154			$	139,722

 

 

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VERRA MOBILITY CORPORATION

 

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (Unaudited)

 

		Three Months Ended December 31,								For the Year Ended December 31,
($ in thousands)		2024				2023				2024				2023
Net (loss) income		$	(66,656	)		$	3,022			$	31,448			$	57,015
Interest expense, net			16,699				20,859				73,902				86,701
Income tax provision (benefit)			10,707				(1,882	)			47,660				29,982
Depreciation and amortization			27,543				26,232				108,525				113,067
EBITDA			(11,707	)			48,231				261,535				286,765
Transaction and other related expenses (i)			1,245				145				5,369				629
Transformation expenses (ii)			1,892				935				4,444				3,241
Change in fair value of private placement warrants (iii)			—				—				—				24,966
Legal accrual/settlement (iv)			8,250				31,500				8,250				31,500
Tax settlement payment related to a prior acquisition(v)			—				5,652				—				5,652
Goodwill impairment (vi)			97,076				—				97,076				—
Tax receivable agreement liability adjustment (vii)			(257	)			(3,077	)			(257	)			(3,077	)
Loss on interest rate swap (viii)			—				2,764				494				817
Loss on extinguishment of debt (ix)			1,117				—				1,745				3,533
Stock-based compensation (x)			4,372				5,130				22,958				17,476
Adjusted EBITDA		$	101,988			$	91,280			$	401,614			$	371,502
Adjusted EBITDA Margin			46	%			43	%			46	%			45	%

 

 

 

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RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited)

 

		Three Months Ended December 31,								For the Year Ended December 31,
($ in thousands)		2024				2023				2024				2023
Net cash provided by operating activities		$	40,487			$	35,730			$	223,642			$	206,101
Purchases of installation and service parts and property and equipment			(18,847	)			(16,484	)			(70,856	)			(56,985	)
Free Cash Flow (1)		$	21,640			$	19,246			$	152,786			$	149,116

 

 

RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET INCOME AND CALCULATION OF ADJUSTED EPS (Unaudited)

 

		Three Months Ended December 31,								For the Year Ended December 31,
(In thousands, except per share data)		2024				2023				2024				2023
Net (loss) income		$	(66,656	)		$	3,022			$	31,448			$	57,015
Amortization of intangibles			16,743				16,721				67,003				77,644
Transaction and other related expenses			1,245				145				5,369				629
Transformation expenses			1,892				935				4,444				3,241
Change in fair value of private placement warrants			—				—				—				24,966
Legal accrual/settlement			8,250				31,500				8,250				31,500
Goodwill impairment			97,076				—				97,076				—
Tax settlement payment related to a prior acquisition			—				5,652				—				5,652
Tax receivable agreement liability adjustment			(257	)			(3,077	)			(257	)			(3,077	)
Tax receivable agreement imputed interest			—				(3,641	)			—				(3,641	)
Loss on extinguishment of debt			1,117				—				1,745				3,533
Change in fair value of interest rate swap			—				3,041				1,316				(320	)
Stock-based compensation			4,372				5,130				22,958				17,476
Total adjustments before income tax effect			130,438				56,406				207,904				157,603
Income tax effect on adjustments			(9,751	)			(19,568	)			(32,802	)			(42,105	)
Total adjustments after income tax effect			120,687				36,838				175,102				115,498
Adjusted Net Income		$	54,031			$	39,860			$	206,550			$	172,513
Adjusted EPS		$	0.33			$	0.24			$	1.23			$	1.08
Diluted weighted average shares outstanding (1)			165,927				168,585				167,717				160,017
Annual estimated effective income tax rate (2)			30	%			31	%			30	%			31	%

 

 

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RECONCILIATION OF TOTAL LONG-TERM DEBT TO NET DEBT AND NET LEVERAGE (Unaudited)
 

($ in thousands)		December 31, 2024				December 31, 2023
Total long-term debt, net of current portion		$	1,034,211			$	1,029,113
Current portion of long-term debt			—				9,019
Total long-term debt			1,034,211				1,038,132
Original issue discounts			2,322				3,646
Unamortized deferred financing costs			9,035				12,809
Total long-term debt, excluding original issue discounts and unamortized deferred financing costs			1,045,568				1,054,587
Cash and cash equivalents			(77,560	)			(136,309	)
Net Debt		$	968,008			$	918,278
Net Leverage		2.4x				2.5x
Trailing twelve months adjusted EBITDA			401,614				371,502

 

 

Investor Relations Contact

Mark Zindler

mark.zindler@verramobility.com

 

 

 

 

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v3.25.0.1

Document and Entity Information	Feb. 27, 2025
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2025
Entity Registrant Name	VERRA MOBILITY CORPORATION
Entity Central Index Key	0001682745
Entity Emerging Growth Company	false
Entity File Number	1-37979
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3563824
Entity Address, Address Line One	1150 N. Alma School Road
Entity Address, City or Town	Mesa
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85201
City Area Code	480
Local Phone Number	443-7000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	VRRM
Security Exchange Name	NASDAQ

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