Verra Mobility Announces Second Quarter 2023 Financial Results

Total revenue of $204.5 million
Net income of $19.1 million
Generated cash flows from operations of $62.7 million
Increasing 2023 financial guidance

MESA, Ariz., Aug. 9, 2023 /PRNewswire/ — Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the second quarter ended June 30, 2023.

“We delivered an outstanding second quarter, highlighted by strong recurring revenue growth and free cash flow generation,” said David Roberts, President and CEO, Verra Mobility. “I am incredibly pleased with our operating performance and am optimistic about our future. The underlying key trends driving our Commercial Services business are strong and durable. We have a very favorable environment driving the future of our Government Solutions business, and we have prime opportunities for future growth and profitability for our Parking Solutions business to address university and municipality parking trends.”

Second Quarter 2023 Financial Highlights

Revenue: Total revenue for the second quarter of 2023 was $204.5 million, an increase of 9% compared to $187.5 million for the second quarter of 2022. Service revenue growth was 12% due to increases in travel volume and related tolling activity in the Commercial Services segment which grew 11%, and the growth in service revenue from our Government Solutions segment, which increased 14% and was driven by the expansion of speed programs. Parking Solutions service revenue increased 11% due to increases in our software as a service (SaaS) product offerings and various services related to parking management solutions.
Net income: Net income for the second quarter of 2023 was $19.1 million, or $0.13 per share based on 152.6 million diluted weighted average shares outstanding. Net income for the comparable 2022 period was $29.6 million, or $0.15 per share, based on 160.3 million diluted weighted average shares outstanding.
Adjusted Earnings Per Share (EPS): Adjusted EPS for the second quarter of 2023 was $0.29 per share compared to $0.27 per share for the second quarter of 2022.
Adjusted EBITDA: Adjusted EBITDA was $95.0 million for the second quarter of 2023 compared to $88.8 million for the same period last year. Adjusted EBITDA margin was 46% of total revenue for 2023 and 47% for 2022. The growth in Adjusted EBITDA was driven primarily by revenue volume across our business segments.

We report our results of operations based on three operating segments:

Commercial Services offers 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 automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement related to speed, red-light, school bus and city bus lane management.
Parking Solutions provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs in the United States and Canada.

Second Quarter 2023 Segment Detail

The Commercial Services segment generated total revenue of $94.5 million, a 11% increase compared to $84.9 million in the same period in 2022. Segment profit was $61.1 million, a 8% increase from $56.5 million in the prior year. The increases in revenue and profit compared to the prior period resulted from increased travel volume and the continued adoption of the all-inclusive fee structure for our RAC customers as well as the increase in enrolled vehicles and higher tolling activity for our FMC customers. The segment profit margin was 65% for 2023 and 67% for 2022.
The Government Solutions segment generated total revenue of $88.3 million, a 6% increase compared to $83.5 million in the same period in 2022. The increase was primarily driven by the expansion of speed programs, as speed is the largest product in this segment. The remaining increase is attributable to expansions across red-light, bus-lane, and school bus stop arm programs in various cities in the United States. The segment profit was $30.4 million in 2023 compared to $29.2 million in the prior year with segment profit margins of 34% for 2023 and 35% for 2022. The increase in segment profit is primarily attributable to the increase in recurring service revenue and a reduction in bad debt expense due to improved cash collections.
The Parking Solutions segment generated total revenue of $21.8 million a 14% increase compared to $19.1 million in the same period in 2022. The segment profit was $3.5 million compared to $3.0 million in the prior year with segment profit margins of 16% for both 2023 and 2022. The increase in segment profit is primarily attributable to increased revenue volume.

Liquidity: As of June 30, 2023, cash and cash equivalents were $210.1 million, and we generated $107.9 million in cash flows from operations for the six months ended June 30, 2023.

Interest Rate Swap

In December 2022, we entered into a cancellable interest rate swap agreement to hedge our exposure to interest rate fluctuations associated with the LIBOR (now transitioned to Term Secured Overnight Financing Rate) portion of the variable interest rate on our 2021 Term Loan. Under the interest rate swap agreement, we pay a fixed rate of 5.17% and the counterparty pays a variable interest rate which is net settled. The notional amount on the interest rate swap is $675.0 million. We have the option to terminate the interest rate swap agreement starting in December 2023, and monthly thereafter until December 2025 in the event interest rates decrease. Any changes in the fair value of the derivative instrument (including accrued interest) and related cash payments are recorded in the condensed consolidated statements of operations within the gain on interest rate swap line item. We recorded a $4.8 million gain during the three months ended June 30, 2023, of which approximately $5.1 million is associated with the derivative instrument re-measured to fair value at the end of the reporting period, netted by $0.3 million related to the monthly cash payments. We recorded a $2.0 million gain during the six months ended June 30, 2023, of which approximately $3.6 million is associated with the derivative instrument re-measured to fair value at the end of the reporting period, netted by $1.6 million related to monthly cash payments.

Warrants

During the six months ended June 30, 2023, the Company processed the exercise of 17.0 million warrants in exchange for the issuance of 14,840,070 shares of Class A Common Stock. There were 13,782,411 shares issued on a cash-basis resulting in the receipt of $105.8 million in cash proceeds as of June 30, 2023 and $52.7 million of cash proceeds received in July 2023. The remaining warrant exercises were completed on a cashless basis.

Subsequent to June 30, 2023, there were an additional 254,038 warrants exercised in exchange for 253,478 shares of Class A Common Stock.

2023 Full Year Guidance

Any guidance that we provide is subject to change as a variety of factors can affect actual operating results. Certain of the factors that may impact our actual operating results are identified below in the safe harbor language included within Forward-Looking Statements of this press release.

Based on our year-to-date results and our outlook for the remainder of the year, we are expecting to deliver results as follows:

Previous Guidance

Updated Guidance

Total Revenue

$780 million to $800 million

$800 million to $810 million

Adjusted EBITDA

$360 million to $370 million

Upper end of range

Adjusted EPS

$1.00 to $1.10

$1.00 to $1.10

Free Cash Flow

$135 million to $155 million

Upper end of range

Conference Call Details

Date: August 9, 2023
Time: 5:00 p.m. Eastern Time
U.S. and Canadian Callers Dial-in: 1-888-886-7786
Outside of U.S. and Canada Dial-in: 1-416-764-8658 for international callers with conference ID 11014275
Request a return call: Available by clicking on the following link and requesting a return call: callme.viavid.comWebcast Information: Available live in the “Investor Relations” section of our website at http://ir.verramobility.com.

An audio replay of the call will also be available until 11:59 p.m. ET on August 23, 2023, by dialing 1-844-512-2921 for the U.S. or Canada, and 1-412-317-6671 for international callers and entering passcode 11014275. In addition, an archived webcast will be available in the “News & Events” section of the Investor Relations website at http://ir.verramobility.com

About Verra Mobility

Verra Mobility is a leading provider of smart mobility technology solutions that make transportation safer, smarter and more connected. We sit at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data and people to enable safe, efficient solutions for customers globally. Verra Mobility’s transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility and support healthier communities. We also solve complex payment, utilization and compliance challenges for fleet owners and rental car companies. Headquartered in Arizona, Verra Mobility operates in North America, Europe, Asia and Australia. For more information, please visit www.verramobility.com

Forward-Looking Statements

This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” “will” or similar expressions. Examples of forward-looking statements include, among others, statements regarding the benefits of our strategic acquisitions, changes in the market for our products and services, expected operating results, such as revenue growth, expansion plans and opportunities, and earnings guidance related to 2023 financial and operational metrics. Forward-looking statements involve risks and uncertainties and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to: (1) customer concentration in our Commercial Services and Government Solutions segments; (2) our ability to manage our substantial level of indebtedness; (3) risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations; (4) decreases in the prevalence of automated and other similar methods of photo enforcement, parking solutions or the use of tolling; (5) our ability to keep up with technological developments and changing customer preferences; (6) our ability to compete in a highly competitive and rapidly evolving market; (7) decreased interest in outsourcing from our customers; (8) the success of our new products and changes to existing products and services; (9) our ability to successfully implement our acquisition strategy or integrate acquisitions; (10) failure in or breaches of our networks or systems, including as a result of cyber-attacks; (11) our ability to manage the risks, uncertainties and exposures related to our international operations; (12) our ability to acquire necessary intellectual property and adequately protect our existing intellectual property; (13) risks and uncertainties related to our share repurchase program; (14) our reliance on a limited number of third-party vendors and service providers; (15) our ability to maintain an effective system of internal controls; (16) risks and uncertainties related to litigation, disputes and regulatory investigations; (17) our ability to properly perform under our contracts and otherwise satisfy our customers; (18) the impact of COVID-19 on our business and results of operations; and (19) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the “SEC”) by Verra Mobility. This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.

Additional Information

We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.  

We intend to use our website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS and Adjusted EBITDA Margin are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.

We are not providing a quantitative reconciliation of Adjusted EBITDA or Adjusted EPS, both of which are included in our 2023 financial guidance above, in reliance on the “unreasonable efforts” exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income as well as Adjusted EPS to net income per share, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.

We use these non-GAAP financial metrics to measure our performance from period to period both at the consolidated level as well as within our operating segments, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, earnings per share or other consolidated income or cash flow data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA

We define EBITDA as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. Adjusted EBITDA further excludes certain non-cash expenses and other transactions that management believes are not indicative of our ongoing operating performance. EBITDA and Adjusted EBITDA, as defined, exclude some but not all items that affect our cash flow from operating activities.

Free Cash Flow

We define “Free Cash Flow” as cash flow from operations less capital expenditures.

Adjusted Net Income

We define “Adjusted Net Income” as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses.

Adjusted EPS

We define “Adjusted EPS” as Adjusted Net Income divided by the diluted weighted average shares for the period.

Adjusted EBITDA Margin

We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue.

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)

($ in thousands except per share data)

June 30,
2023

December 31,
2022

Assets

Current assets:

Cash and cash equivalents

$

210,083

$

105,204

Restricted cash

3,416

3,911

Accounts receivable (net of allowance for credit losses of $20.1 million and
$15.9 million at June 30, 2023 and December 31, 2022, respectively)

179,944

163,786

Unbilled receivables

36,843

30,782

Inventory

19,791

19,307

Prepaid expenses and other current assets

92,509

39,604

Total current assets

542,586

362,594

Installation and service parts, net

25,393

22,923

Property and equipment, net

114,467

109,775

Operating lease assets

37,170

37,593

Intangible assets, net

335,781

377,420

Goodwill

835,323

833,480

Other non-current assets

15,440

12,484

Total assets

$

1,906,160

$

1,756,269

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

78,410

$

79,869

Deferred revenue

36,744

31,164

Accrued liabilities

51,642

48,847

Tax receivable agreement liability, current portion

4,994

4,994

Current portion of long-term debt

9,019

21,935

Total current liabilities

180,809

186,809

Long-term debt, net of current portion

1,129,692

1,190,045

Operating lease liabilities, net of current portion

32,331

33,362

Tax receivable agreement liability, net of current portion

50,900

50,900

Private placement warrant liabilities

5,430

24,066

Asset retirement obligations

13,729

12,993

Deferred tax liabilities, net

20,583

21,149

Other long-term liabilities

7,386

5,875

Total liabilities

1,440,860

1,525,199

Commitments and contingencies

Stockholders’ equity

Preferred stock, $0.0001 par value

Common stock, $0.0001 par value

17

15

Common stock contingent consideration

18,287

36,575

Additional paid-in capital

533,626

305,423

Accumulated deficit

(74,393)

(98,078)

Accumulated other comprehensive loss

(12,237)

(12,865)

Total stockholders’ equity

465,300

231,070

Total liabilities and stockholders’ equity

$

1,906,160

$

1,756,269

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands, except per share data)

2023

2022

2023

2022

Service revenue

$

196,050

$

174,502

$

380,748

$

335,636

Product sales

8,411

12,985

15,616

22,236

Total revenue

204,461

187,487

396,364

357,872

Cost of service revenue

4,338

3,713

8,568

7,492

Cost of product sales

5,962

8,326

11,345

14,321

Operating expenses

65,657

55,196

127,500

106,259

Selling, general and administrative expenses

43,205

40,152

83,218

81,787

Depreciation, amortization and (gain) loss on disposal of
assets, net

29,088

34,939

59,421

70,846

Total costs and expenses

148,250

142,326

290,052

280,705

Income from operations

56,211

45,161

106,312

77,167

Interest expense, net

22,771

14,485

45,458

28,764

Change in fair value of private placement warrants

10,918

(6,600)

25,519

(2,866)

Tax receivable agreement liability adjustment

(965)

(965)

Gain on interest rate swap

(4,805)

(2,007)

Loss on extinguishment of debt

209

1,558

Other income, net

(4,512)

(4,039)

(8,268)

(6,905)

Total other expenses

24,581

2,881

62,260

18,028

Income before income taxes

31,630

42,280

44,052

59,139

Income tax provision

12,522

12,639

20,367

19,458

Net income

$

19,108

$

29,641

$

23,685

$

39,681

Other comprehensive income (loss):

Change in foreign currency translation adjustment

718

(10,381)

628

(7,673)

Total comprehensive income

$

19,826

$

19,260

$

24,313

$

32,008

Net income per share:

Basic

$

0.13

$

0.19

$

0.16

$

0.26

Diluted

$

0.13

$

0.15

$

0.16

$

0.23

Weighted average shares outstanding:

Basic

151,132

154,694

150,151

155,408

Diluted

152,590

160,344

151,586

161,507

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

Three Months Ended June 30,

($ in thousands)

2023

2022

Cash Flows from Operating Activities:

Net income

$

19,108

$

29,641

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

28,996

34,540

Amortization of deferred financing costs and discounts

1,192

1,387

Change in fair value of private placement warrants

10,918

(6,600)

Tax receivable agreement liability adjustment

(965)

Gain on interest rate swap

(5,115)

Loss on extinguishment of debt

209

Credit loss expense

3,259

3,531

Deferred income taxes

(2,484)

3,071

Stock-based compensation

4,525

4,566

Other

126

406

Changes in operating assets and liabilities:

Accounts receivable

(4,849)

(4,812)

Unbilled receivables

(2,656)

5,347

Inventory

(235)

(1,675)

Prepaid expenses and other assets

(3,232)

696

Deferred revenue

5,673

2,871

Accounts payable and other current liabilities

13,181

2,188

Other liabilities

(5,906)

(9,064)

Net cash provided by operating activities

62,710

65,128

Cash Flows from Investing Activities:

Payment of contingent consideration

(235)

Payments for interest rate swap

(310)

Purchases of installation and service parts and property and equipment

(11,726)

(11,246)

Cash proceeds from the sale of assets

95

47

Net cash used in investing activities

(11,941)

(11,434)

Cash Flows from Financing Activities:

Repayment of long-term debt

(12,254)

(2,255)

Payment of debt issuance costs

(148)

(192)

Proceeds from the exercise of warrants

105,750

Share repurchases and retirement

(55,281)

Proceeds from the exercise of stock options

1,689

66

Payment of employee tax withholding related to RSUs and PSUs vesting

(502)

(203)

Net cash provided by (used in) financing activities

94,535

(57,865)

Effect of exchange rate changes on cash and cash equivalents

378

(2,661)

Net increase (decrease) in cash, cash equivalents and restricted cash

145,682

(6,832)

Cash, cash equivalents and restricted cash – beginning of period

67,817

97,393

Cash, cash equivalents and restricted cash – end of period

$

213,499

$

90,561

VERRA MOBILITY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

Six Months Ended June 30,

($ in thousands)

2023

2022

Cash Flows from Operating Activities:

Net income

$

23,685

$

39,681

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

59,305

70,215

Amortization of deferred financing costs and discounts

2,469

2,693

Change in fair value of private placement warrants

25,519

(2,866)

Tax receivable agreement liability adjustment

(965)

Gain on interest rate swap

(3,563)

Loss on extinguishment of debt

1,558

Credit loss expense

4,956

7,036

Deferred income taxes

(4,733)

(15,700)

Stock-based compensation

7,903

9,012

Other

134

760

Changes in operating assets and liabilities:

Accounts receivable

(21,071)

(19,112)

Unbilled receivables

(6,120)

(4,918)

Inventory

(55)

(7,397)

Prepaid expenses and other assets

3,000

8,931

Deferred revenue

5,768

2,917

Accounts payable and other current liabilities

8,890

1,711

Other liabilities

282

4,377

Net cash provided by operating activities

107,927

96,375

Cash Flows from Investing Activities:

Payment of contingent consideration

(647)

Payments for interest rate swap

(1,556)

Purchases of installation and service parts and property and equipment

(30,098)

(22,724)

Cash proceeds from the sale of assets

129

72

Net cash used in investing activities

(31,525)

(23,299)

Cash Flows from Financing Activities:

Repayment on the revolver

(25,000)

Repayment of long-term debt

(77,009)

(4,510)

Payment of debt issuance costs

(192)

(246)

Proceeds from the exercise of warrants

105,750

Share repurchases and retirement

(55,281)

Proceeds from the exercise of stock options

2,388

159

Payment of employee tax withholding related to RSUs and PSUs vesting

(3,028)

(1,639)

Net cash provided by (used in) financing activities

27,909

(86,517)

Effect of exchange rate changes on cash and cash equivalents

73

(430)

Net increase (decrease) in cash, cash equivalents and restricted cash

104,384

(13,871)

Cash, cash equivalents and restricted cash – beginning of period

109,115

104,432

Cash, cash equivalents and restricted cash – end of period

$

213,499

$

90,561

VERRA MOBILITY CORPORATION

ADJUSTED EBITDA RECONCILIATION (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

2023

2022

2023

2022

Net income

$

19,108

$

29,641

$

23,685

$

39,681

Interest expense, net

22,771

14,485

45,458

28,764

Income tax provision

12,522

12,639

20,367

19,458

Depreciation and amortization

28,996

34,540

59,305

70,215

EBITDA

83,397

91,305

148,815

158,118

Transaction and other related expenses

64

273

332

489

Transformation expenses

665

180

724

266

Change in fair value of private placement warrants (i)

10,918

(6,600)

25,519

(2,866)

Tax receivable agreement liability adjustment (ii)

(965)

(965)

Gain on interest rate swap (iii)

(4,805)

(2,007)

Loss on extinguishment of debt (iv)

209

1,558

Stock-based compensation (v)

4,525

4,566

7,903

9,012

Adjusted EBITDA

$

94,973

$

88,759

$

182,844

$

164,054

(i)

This consists of adjustments to the private placement warrants liability from the re-measurement to fair value at the end of each reporting period, or a final re-measurement upon their exercise.

(ii)

The Tax Receivable Agreement liability adjustment in 2022 arose from lower estimated state tax rates due to changes in apportionment.

(iii)

Gain on interest rate swap is associated with the derivative instrument re-measured to fair value at the end of the reporting period offset by the related monthly cash payments. 

(iv)

Loss on extinguishment of debt consists of the write-off of pre-existing original issue discounts and deferred financing costs associated with the repayment of debt.

(v)

Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation 2018 Equity Incentive Plan.

FREE CASH FLOW (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands)

2023

2022

2023

2022

Net cash provided by operating activities

$

62,710

$

65,128

$

107,927

$

96,375

Purchases of installation and service parts and property
and equipment

(11,726)

(11,246)

(30,098)

(22,724)

Free cash flow

$

50,984

$

53,882

$

77,829

$

73,651

ADJUSTED EPS (Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except per share data)

2023

2022

2023

2022

Net income

$

19,108

$

29,641

$

23,685

$

39,681

Amortization of intangibles

20,034

27,175

42,002

54,506

Transaction and other related expenses

64

273

332

489

Transformation expenses

665

180

724

266

Change in fair value of private placement warrants

10,918

(6,600)

25,519

(2,866)

Tax receivable agreement liability adjustment

(965)

(965)

Change in fair value of interest rate swap

(5,115)

(3,563)

Loss on extinguishment of debt

209

1,558

Stock-based compensation

4,525

4,566

7,903

9,012

Total adjustments before income tax effect

31,300

24,629

74,475

60,442

Income tax effect on adjustments

(6,253)

(10,302)

(14,693)

(20,567)

Total adjustments after income tax effect

25,047

14,327

59,782

39,875

Adjusted Net Income

$

44,155

$

43,968

$

83,467

$

79,556

Adjusted EPS

$

0.29

$

0.27

$

0.55

$

0.49

Diluted weighted average shares outstanding

152,590

160,344

151,586

161,507

Beginning in the third quarter of 2022, we removed the (i) change in fair value of private placement warrants (ii) tax receivable agreement liability adjustment and (iii) loss on extinguishment of debt from total adjustments before income tax effect prior to applying our annual estimated effective income tax rate to calculate the income tax effect on adjustments. These discrete items are being removed because they do not impact taxable income. In addition, we began using our annual estimated effective tax rate in lieu of the period-to-date effective tax rate from our consolidated statements of operations, in calculating the income tax effect on total adjustments to net income. We believe that our annual estimated effective income tax rate provides investors a more meaningful effective tax rate than our period-to-date effective tax rate, which included the discrete items named above. The comparable prior periods have been recast to conform to the revised presentation although the impact of this revision to previously reported Adjusted Net Income or Adjusted EPS was not material.

Investor Relations ContactMark Zindler
[email protected]

SOURCE Verra Mobility


Go to Source