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Verra Mobility(VRRM) - 2024 Q3 - Quarterly Results
VRRMVerra Mobility(VRRM)2024-10-31 20:15

Financial Performance - Total revenue for Q3 2024 was 225.6million,a7225.6 million, a 7% increase from 209.9 million in Q3 2023[4] - Net income for Q3 2024 was 34.7million,or34.7 million, or 0.21 per share, compared to 30.3million,or30.3 million, or 0.18 per share in Q3 2023[4] - Adjusted Free Cash Flow increased to 85.1millioninQ32024from85.1 million in Q3 2024 from 52.0 million in the same period last year[5] - Adjusted EBITDA for Q3 2024 was 104.7million,upfrom104.7 million, up from 97.4 million in Q3 2023, with an EBITDA margin of 46%[4] - Total revenue for the three months ended September 30, 2024, was 225.6million,anincreaseof7.7225.6 million, an increase of 7.7% compared to 209.9 million for the same period in 2023[27] - Service revenue for the three months ended September 30, 2024, was 217.3million,upfrom217.3 million, up from 201.0 million in the same period last year, reflecting a growth of 8.2%[27] - Net income for the three months ended September 30, 2024, was 34.7million,comparedto34.7 million, compared to 30.3 million for the same period in 2023, representing an increase of 14.8%[27] - Adjusted EBITDA for the three months ended September 30, 2024, was 104,697,000,upfrom104,697,000, up from 97,378,000 in the same period of 2023, representing a 7.5% increase[30] - The company reported net income of 54,258,000forthethreemonthsendedSeptember30,2024,comparedto54,258,000 for the three months ended September 30, 2024, compared to 49,187,000 for the same period in 2023[33] - Adjusted EPS for the three months ended September 30, 2024, is 0.32,upfrom0.32, up from 0.29 in the prior year[33] Segment Performance - Commercial Services segment revenue grew by 11% to 109.1million,whileGovernmentSolutionssegmentrevenueincreasedby6109.1 million, while Government Solutions segment revenue increased by 6% to 95.9 million[7] - The Parking Solutions segment experienced a 4% revenue decline to 20.6million,attributedtoreducedservicerevenue[7]GuidanceandProjections−Thecompanyreaffirmeditsfull−yearguidanceforTotalRevenueattheupper−endof20.6 million, attributed to reduced service revenue[7] Guidance and Projections - The company reaffirmed its full-year guidance for Total Revenue at the upper-end of 865 million to 880million[9]−AdjustedEPSisexpectedtobeattheupper−endoftherangeof880 million[9] - Adjusted EPS is expected to be at the upper-end of the range of 1.15 to 1.20for2024[9]−Thecompanyanticipates2025revenuegrowthatthelowendofitslong−termguidanceof61.20 for 2024[9] - The company anticipates 2025 revenue growth at the low end of its long-term guidance of 6% to 8%[10] Cash and Debt Management - As of September 30, 2024, cash and cash equivalents were 206.1 million, with net debt reduced to 844.0million[8]−Cashandcashequivalentsincreasedto844.0 million[8] - Cash and cash equivalents increased to 206.1 million as of September 30, 2024, from 136.3millionattheendofDecember2023,showingasignificantliquidityimprovement[26]−Long−termdebtasofSeptember30,2024,was136.3 million at the end of December 2023, showing a significant liquidity improvement[26] - Long-term debt as of September 30, 2024, was 1.04 billion, slightly increased from 1.03billionattheendofDecember2023,reflectingstableleveragelevels[26]−Thecompanyreportedadecreaseinaccruedliabilitiesfrom1.03 billion at the end of December 2023, reflecting stable leverage levels[26] - The company reported a decrease in accrued liabilities from 93.1 million in December 2023 to 67.0millioninSeptember2024,indicatingimprovedcashmanagement[26]−Netdebtdecreasedto67.0 million in September 2024, indicating improved cash management[26] - Net debt decreased to 843,990,000 from 918,278,000year−over−year[35]−Totallong−termdebtasofSeptember30,2024,is918,278,000 year-over-year[35] - Total long-term debt as of September 30, 2024, is 1,037,174,000, slightly down from 1,038,132,000onDecember31,2023[35]−Thecompanyreportedanetincreaseincash,cashequivalents,andrestrictedcashof1,038,132,000 on December 31, 2023[35] - The company reported a net increase in cash, cash equivalents, and restricted cash of 87,815,000 for the three months ended September 30, 2024, compared to a decrease of 95,169,000inthesameperiodof2023[28]ShareholderInformation−Theweightedaveragedilutedsharesoutstandingdecreasedto167.6millionforthethreemonthsendedSeptember30,2024,from169.5millioninthesameperiodlastyear,suggestingapotentialsharebuybackorreducedissuance[27]−TheaveragesharesoutstandingforthethreemonthsendedSeptember30,2024,is167,624,000,comparedto169,497,000inthesameperiodlastyear[33]TaxandOtherFinancialMetrics−TheeffectiveincometaxrateforthethreemonthsendedSeptember30,2024,is3095,169,000 in the same period of 2023[28] Shareholder Information - The weighted average diluted shares outstanding decreased to 167.6 million for the three months ended September 30, 2024, from 169.5 million in the same period last year, suggesting a potential share buyback or reduced issuance[27] - The average shares outstanding for the three months ended September 30, 2024, is 167,624,000, compared to 169,497,000 in the same period last year[33] Tax and Other Financial Metrics - The effective income tax rate for the three months ended September 30, 2024, is 30%, consistent with the previous year[33] - The company’s net leverage ratio improved to 2.2x from 2.5x year-over-year[35] - The company is unable to provide a quantitative reconciliation of certain non-GAAP measures due to the inherent difficulty in forecasting, which may affect future financial projections[25] Other Financial Highlights - Net cash provided by operating activities for the nine months ended September 30, 2024, was 183,155,000, compared to 170,371,000forthesameperiodin2023,reflectingagrowthof7.3170,371,000 for the same period in 2023, reflecting a growth of 7.3%[29] - Free Cash Flow for the three months ended September 30, 2024, was 85,111,000, compared to 52,041,000forthesameperiodin2023,indicatingasignificantincreaseof63.652,041,000 for the same period in 2023, indicating a significant increase of 63.6%[32] - Stock-based compensation for the nine months ended September 30, 2024, was 18,586,000, compared to 12,346,000forthesameperiodin2023,reflectinga50.512,346,000 for the same period in 2023, reflecting a 50.5% increase[30] - The company incurred transaction and other related expenses of 2,483,000 for the three months ended September 30, 2024, primarily related to potential acquisitions[30] - The company’s cash receipts for interest rate swaps increased to 822,000fortheninemonthsendedSeptember30,2024,comparedtoapaymentof822,000 for the nine months ended September 30, 2024, compared to a payment of 1,414,000 in the same period of 2023[29] - The company’s total liabilities decreased significantly, with a repayment of long-term debt of 4,509,000fortheninemonthsendedSeptember30,2024,comparedto4,509,000 for the nine months ended September 30, 2024, compared to 179,264,000 in the same period of 2023[29] - The adjusted free cash flow for the nine months ended September 30, 2024, was 153,196,000,comparedto153,196,000, compared to 129,870,000 for the same period in 2023, marking an increase of 18.0%[32] - Total assets as of September 30, 2024, were 1.85billion,upfrom1.85 billion, up from 1.79 billion at the end of December 2023, indicating growth in the company's asset base[26]