MESA, Ariz. — Verra Mobility (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, today announced its financial results for the quarter ended June 30, 2019.
“Verra Mobility reported another strong quarter, with Q2 exceeding expectations across all key operating metrics. Ongoing growth in billable days and increases in tolling usage are driving our Commercial Services segment, while the expansion of school zone speed in NYC is foundational for our Government Solutions segment,” stated David Roberts, CEO of Verra Mobility.
Roberts explained that “The strength of our core business, as well as some of our longer-term smart city innovation initiatives, gives us confidence in our ability to maintain momentum for the remainder of fiscal 2019 and support our vision as a global leader in smart transportation.”
Second Quarter 2019 Financial Highlights
Revenue: Total revenue for the second quarter of 2019 was $109.6 million, up 12 percent compared to $98.2 million for the second quarter of 2018. Within total revenue, service revenue was $103.1 million and product revenue contributed $6.5 million.
Net income (loss): Net income for the second quarter of 2019 was $3.6 million, or $0.02 per share, based on 162.0 million diluted weighted average shares outstanding. During the second quarter of 2018, Verra had a net loss of $4.8 million, or $0.07 per share, based on 72.5 million weighted average shares outstanding.
Adjusted EBITDA: Adjusted EBITDA was $59.7 million for the second quarter of 2019, up 9 percent compared to $54.6 million in the second quarter of 2018.
First Half of 2019 Financial Highlights
Revenue: Total revenue for the first half of 2019 was $208.0 million, up 24 percent compared to $167.4 million for the first half of 2018. Within total revenue, service revenue was $201.1 million and product revenue was $6.9 million.
Net income (loss): Net income for the first half of 2019 was $6.4 million, or $0.04 per share, based on 159.2 million diluted weighted average shares outstanding. During the first half of 2018, Verra had a net loss of $27.0 million, or $0.40 per share, based on 67.5 million weighted average shares outstanding.
Adjusted EBITDA: Adjusted EBITDA was $110.9 million for the first half of 2019, up 26 percent compared to $88.4 million in the first half of 2018.
The company reported 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.
Second Quarter 2019 Segment Detail
The Commercial Services segment generated total revenue of $68.1 million growing 13.9 percent over the same period in the prior year, and segment profit of $44.1 million growing 20.2 percent over the prior year. Segment profit margins continue to be strong at 64.8 percent for 2019 and 61.4 percent for the prior-year period.
The Government Solutions segment generated total revenues of $41.5 million, growing 8.0 percent over the same period in the prior year. The growth in this segment is driven by product sales in the current period, which totaled $6.5 million. Segment profit of $15.5 million expanded slightly from $14.7 million in the prior year. Segment margin was 37.5 percent in 2019 compared to 38.2 percent for the prior-year period.
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 August 6, 2019. To access the conference call, dial 877-407-0784 for the United States or Canada and 201-689-8560 for international callers with conference ID #13692643.
The webcast will be available live in the Investor Relations section of the company’s website: http://ir.verramobility.com. An audio replay of the call will also be available until 8:59 p.m. Pacific Time (11:59 p.m. Eastern Time) on August 20, 2019, by dialing 844-512-2921 for the United States or Canada and 412-317-6671 for international callers, and entering passcode #13692643.
In addition, an archived webcast will be available in the “News & Events” section of the Investor Relations page of Verra’s website: 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 annually through connectivity with more than 50 individual tolling authorities and over 400 issuing authorities. Verra Mobility also helps develop safe cities, by partnering with law enforcement agencies, transportation departments and school districts nationwide that operate thousands of red-light, speed, bus lane and school bus stop arm safety cameras. Arizona-based Verra Mobility operates in over 15 countries. www.verramobility.com