MESA, Ariz. — Verra Mobility (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, today announced financial results for the quarter ended March 31, 2019.
“The first quarter was an outstanding start to 2019, primarily driven by robust activity within our Commercial Services segment,” stated David Roberts, CEO of Verra Mobility. “The first quarter’s strong results provide great momentum for 2019. We were pleased with our ability to execute our growth strategy, maintain operational efficiency and generate $37 million in cash from operations. We believe that Verra Mobility is well-positioned to deliver against our long-term goals given our differentiated portfolio of products and is uniquely positioned to capitalize on a growing pipeline of global opportunities.”
First Quarter 2019 Financial Highlights
Revenue: Total revenue for the first quarter of 2019 was $98.5 million, up 42 percent compared to $69.2 million for the first quarter of 2018 on a reported basis. On a pro forma basis, revenue was up 12 percent from $88.0 million.
Pro forma financial information represents the actual results of Highway Toll Administration, Canada Highway Toll Administration (collectively, “HTA”), Euro Parking Collection plc (“EPC”) and Verra Mobility on a combined basis as if all three acquired companies had been owned during the historical periods presented. Within total revenue, service revenue was $98.1 million and product revenue contributed $0.4 million.
Net Income (loss)
Net income for the first quarter of 2019 was $2.8 million, or $0.02 per share, based on 156.5 million weighted average diluted shares outstanding. During the first quarter of 2018, we had a net loss of $22.2 million, or $0.35 per share, based on 62.5 million weighted average shares outstanding. The loss in the first quarter of 2018 resulted from $28.3 million of transaction fees and loss on extinguishment of debt associated with the purchase of HTA.
Adjusted EBITDA
Adjusted EBITDA was $51.3 million for the first quarter of 2019, compared to $33.8 million in the first quarter of 2018. On a pro forma basis, Adjusted EBITDA was up 12 percent from $45.6 million. As a percentage of revenue, our Adjusted EBITDA margin for the quarter was 52 percent.
Adjusted Net Income (loss)
Adjusted net income for the first quarter of 2019 was $28.1 million, or $0.18 per share, based on 156.5 million weighted average diluted shares outstanding. During the first quarter of 2018, adjusted net loss was $9.8 million, or $0.16 per share, based on 62.5 million weighted average shares outstanding for the first quarter of 2018.
The company reports its results of operations based on two operating segments: Commercial Services and Government Solutions. Commercial Services delivers market-leading automated toll and violations management and title and registration solutions to rental car companies, fleet management companies and other large fleet owners. Government Solutions delivers market-leading automated safety solutions to municipalities and school districts, including services and technology that enable photo enforcement related to red light, speed, school bus, and city bus lanes.
First Quarter 2019 Segment Detail
- Commercial Services segment generated total revenue of $62.6 million and segment profit of $38.0 million.
- Government Solutions segment generated total revenue of $35.9 million and segment profit of $13.2 million.
Quarterly Conference Call
Verra Mobility will host a conference call and live webcast to discuss financial results for investors and analysts at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on May 6, 2019. To access the conference call, dial 877-407-0784 for the U.S. or Canada or 201-689-8560 with conference ID #13689490. The webcast will be available live in the “Investor Relations” section of the company’s website at http://ir.verramobility.com. An audio replay of the call will also be available until 7:59 p.m. Pacific Time (10:59 p.m. Eastern Time) on May 20, 2019, by dialing 844-512-2921 for the U.S. or Canada or 412-317-6671 for international callers, and entering passcode #13689490. In addition, an archived webcast will be available in the News & Events section of the Investor Relations page of the company’s website at http://ir.verramobility.com.
About Verra Mobility
Verra Mobility is committed to developing and using the latest in technology and data intelligence to help make transportation safer and easier. As a global company, Verra Mobility sits at the center of the mobility ecosystem—one that brings together vehicles, devices, information, and people to solve the most complex challenges faced by our customers and the constituencies they serve.
Verra Mobility serves the world’s largest commercial fleets and rental car companies to manage tolling transactions and violations for millions of vehicles. As a leading provider of connected systems, Verra Mobility processes millions of transactions each year through connectivity with more than 50 individual tolling authorities and more than 400 issuing authorities. Verra Mobility also fosters the development of safe cities, partnering with law enforcement agencies, transportation departments and school districts across North America operating thousands of red-light, speed, bus lane and school bus stop arm safety cameras. Arizona-based Verra Mobility operates in more than 15 countries. www.verramobility.com
