Verra Mobility Announces Third Quarter 2024 Financial Results

Core Insights - Verra Mobility Corporation reported strong financial results for Q3 2024, with total revenue of $225.6 million, a 7% increase from $209.9 million in Q3 2023 [3][5] - The company reaffirmed its full-year guidance for total revenue, adjusted EBITDA, and adjusted EPS while increasing adjusted free cash flow guidance to the upper end of the range [2][9] Financial Performance - Total revenue for Q3 2024 was $225.6 million, up 7% from $209.9 million in Q3 2023 [3] - Service revenue grew by 8%, driven by an 11% increase in the Commercial Services segment and a 7% increase in the Government Solutions segment [3] - 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 [3][5] - Adjusted EPS for Q3 2024 was $0.32, up from $0.29 in Q3 2023 [3][36] - Adjusted EBITDA for Q3 2024 was $104.7 million, compared to $97.4 million in the same period last year, maintaining an adjusted EBITDA margin of 46% [3][34] Segment Performance - The Commercial Services segment generated $109.1 million in revenue, an 11% increase from $98.1 million in Q3 2023, with a segment profit margin of 67% [5] - The Government Solutions segment reported $95.9 million in revenue, a 6% increase from $90.3 million in Q3 2023, with a segment profit margin of 29% [5] - The Parking Solutions segment saw a revenue decline of 4% to $20.6 million, but segment profit increased to $3.7 million [5] Cash Flow and Liquidity - Net cash provided from operations was $108.8 million for Q3 2024, up from $62.4 million in Q3 2023 [3][31] - Adjusted free cash flow for Q3 2024 was $85.1 million, compared to $52.0 million in the same period last year [3][35] - As of September 30, 2024, cash and cash equivalents were $206.1 million, with net debt at $844.0 million and net leverage at 2.2x [6][37] Share Repurchase Program - The Board of Directors authorized a share repurchase program for up to $100 million of Class A Common Stock over an 18-month period [7] - In June 2024, the company repurchased 2.0 million shares for $51.5 million, with approximately $48.5 million remaining under the repurchase program as of September 30, 2024 [7]