Verra Mobility(VRRM)2024-10-31 20:15Financial Performance - Total revenue for Q3 2024 was $225.6 million, a 7% increase from $209.9 million in Q3 2023[4] - Net income for Q3 2024 was $34.7 million, or $0.21 per share, compared to $30.3 million, or $0.18 per share in Q3 2023[4] - Adjusted Free Cash Flow increased to $85.1 million in Q3 2024 from $52.0 million in the same period last year[5] - Adjusted EBITDA for Q3 2024 was $104.7 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 $225.6 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 $217.3 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 $34.7 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, up from $97,378,000 in the same period of 2023, representing a 7.5% increase[30] - The company reported net income of $54,258,000 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, up from $0.29 in the prior year[33] Segment Performance - Commercial Services segment revenue grew by 11% to $109.1 million, while Government Solutions segment revenue increased by 6% to $95.9 million[7] - The Parking Solutions segment experienced a 4% revenue decline to $20.6 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 $880 million[9] - Adjusted EPS is expected to be at the upper-end of the range of $1.15 to $1.20 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 $844.0 million[8] - Cash and cash equivalents increased to $206.1 million as of September 30, 2024, from $136.3 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 $1.03 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 $67.0 million in September 2024, indicating improved cash management[26] - Net debt decreased to $843,990,000 from $918,278,000 year-over-year[35] - Total long-term debt as of September 30, 2024, is $1,037,174,000, slightly down from $1,038,132,000 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 $95,169,000 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 $170,371,000 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 $52,041,000 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 $12,346,000 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 $822,000 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 $4,509,000 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, 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 $1.85 billion, up from $1.79 billion at the end of December 2023, indicating growth in the company's asset base[26]