Verra Mobility(VRRM) - 2024 Q4 - Annual Results

Revenue Performance - Full year 2024 revenue was $879.2 million, an increase of 8$817.3 million for fiscal year 2023[9] - Fourth quarter 2024 revenue was $221.5 million, a 5$211.0 million in the fourth quarter of 2023[6] - The Government Solutions segment generated total revenue of $103.2 million, a 10$94.0 million in the same period in 2023[9] - The Commercial Services segment generated total revenue of $98.7 million, a 4$94.5 million in the same period in 2023[9] - The Parking Solutions segment generated total revenue of $19.7 million, a 13$22.5 million in the same period in 2023[9] - Total revenue for the year ended December 31, 2024, reached $879.207 million, compared to$817.310 million in 2023, reflecting a year-over-year increase of 7.6%[42] Financial Losses and Impairments - Net loss for the fourth quarter of 2024 was $(66.7) million, or$(0.41) per share, primarily due to a $97.1 million impairment loss in the Parking Solutions segment[6] - The company reported a net loss of$66.656 million for Q4 2024, compared to a net income of $3.022 million in Q4 2023[42] - Goodwill impairment of$97.076 million was recorded in Q4 2024, impacting overall financial performance[42] - The company reported an accumulated deficit of $269.3 million as of December 31, 2024, compared to$125.9 million in 2023, indicating a significant increase in losses[40] Adjusted Financial Metrics - Adjusted EBITDA for fiscal year 2024 was $401.6 million, compared to$371.5 million for the same period last year, with an adjusted EBITDA margin of 46%[12] - Adjusted EBITDA for Q4 2024 was $101.988 million, with an adjusted EBITDA margin of 46$91.280 million and 43% in Q4 2023[48] - Adjusted Net Income for the year ended December 31, 2024, was $206,550,000, compared to$172,513,000 in 2023, reflecting a 19.7% increase[51] - The company emphasizes the importance of non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow for evaluating performance and capital allocation decisions[29] Cash Flow and Liquidity - Free Cash Flow for fiscal year 2024 was $152.8 million, compared to$149.1 million for the same period last year[12] - Cash provided by operating activities for the year ended December 31, 2024, was $223.642 million, an increase from$206.101 million in 2023[46] - Net cash provided by operating activities for Q4 2024 was $40,487,000, compared to$35,730,000 in Q4 2023, representing a 4.8% increase[50] - Free Cash Flow for Q4 2024 was $21,640,000, up from$19,246,000 in Q4 2023, indicating a 12.4% growth[50] - The company reported a net cash decrease of $132.059 million in Q4 2024, ending the period with$81.154 million in cash and cash equivalents[44] Debt and Liabilities - As of December 31, 2024, net debt was $968.0 million and net leverage was 2.4x, compared to$918.3 million and 2.5x as of December 31, 2023[11] - The company has a significant level of indebtedness, with long-term debt net of current portion at $1,034.2 million as of December 31, 2024[40] - Total long-term debt as of December 31, 2024, was$1,034,211,000, slightly down from $1,038,132,000 in 2023[53] - Current liabilities decreased from$214.8 million in 2023 to $199.7 million in 2024, a reduction of about 7.0$925 million to $935 million and adjusted EBITDA of$410 million to $420 million[18] - The company has set 2026 revenue and Adjusted EBITDA targets, but actual results may differ due to various risks and uncertainties[23] - The company plans to continue focusing on market expansion and new product development to drive future growth[42] Other Financial Information - The company incurred total costs and expenses of$264.890 million in Q4 2024, up from $187.684 million in Q4 2023[42] - Stock-based compensation for the year ended December 31, 2024, amounted to$22,958,000, compared to $17,476,000 in 2023, marking a 31.5$8,250,000 in Q4 2024, down from $31,500,000 in Q4 2023[51] - The company intends to use its website for disclosing material non-public information and additional financial metrics[25]