MESA, Ariz. — Verra Mobility (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today financial results for the quarter ended September 30, 2019.
“We are very pleased with the company’s performance in the third quarter, with financial results that exceeded expectations across the organization,” said David Roberts, CEO of Verra Mobility. “A year ago, Verra Mobility went public, and we’ve had a phenomenal first year. We grew our Commercial Services segment by growth in tolling usage while continuing our focus on European expansion and the Government Solutions segment by implementing smart city innovation initiatives like New York City’s school zone expansion. All these efforts are increasing the company’s value proposition to its customers.”
Third Quarter 2019 Financial Highlights
Revenue: Total revenue for the third quarter of 2019 was $128.2 million, up 19.2 percent compared to $107.6 million for the third quarter of 2018. Within total revenue, service revenue was $110.8 million and product revenue contributed $17.5 million.
Net income: Net income for the third quarter of 2019 was $17.8 million, or $0.11 per share, based on 163.7 million diluted weighted average shares outstanding. Net income for the comparable 2018 period was $6.5 million, or $0.09 per share, based on 72.9 million diluted weighted average shares outstanding.
Adjusted EBITDA: Adjusted EBITDA was $70.8 million for the third quarter of 2019, up 14.4 percent compared to $61.9 million in the third quarter of 2018.
Year-To-Date 2019 Financial Highlights
Revenue: Total revenue for year-to-date 2019 was $336.3 million, up 22.3 percent compared to $275.0 million for the year-to-date 2018 period. Within total revenue, service revenue was $311.9 million and product revenue was $24.4 million.
Net income (loss): Net income for year-to-date 2019 was $24.2 million, or $0.15 per share, based on 160.7 million diluted weighted average shares outstanding. During the year-to-date 2018 period, we had a net loss of $20.4 million, or $0.29 per share, based on 69.3 million weighted average shares outstanding.
Adjusted EBITDA: Adjusted EBITDA was $181.8 million for year-to-date 2019, up 20.9 percent compared to $150.3 million for year-to-date 2018.
The company reports its results of operations based on two operating segments:
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.
Third Quarter 2019 Segment Detail
Commercial Services segment generated total revenue of $77.6 million growing 8 percent over the same period in 2018. Segment profit margins continue to be strong at 65.8 percent for 2019 and 68.7 percent for the 2018 period.
Government Solutions segment generated total revenue of $50.6 million growing 42 percent over the same period in 2018. The growth in this segment is driven by product sales in the current period which totaled $17.5 million. Segment profit was $19.8 million, a 58 percent increase from $12.5 million in the prior year. Segment margin was 39.1 percent in 2019 compared to 35.2 percent for the prior-year period.
Quarterly Conference Call
Verra Mobility will host a conference call and a live webcast to discuss financial results for investors and analysts at 6:00 a.m. Mountain Time (8:00 a.m. Eastern Time) on November 5, 2019. To access the conference call, dial 877-407-0784 for the U.S. or Canada and 201-689-8560 for international callers with conference ID #13695024. 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 9:59 p.m. Mountain Time (11:59 p.m. Eastern Time) on November 19, 2019, by dialing 844-512-2921 for the U.S. or Canada and 412-317-6671 for international callers, and entering passcode #13695024. 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 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