Core Points - Verra Mobility Corporation has partnered with Onondaga County, New York, to implement an advanced school bus stop arm safety program aimed at reducing illegal passing of stopped school buses and enhancing student safety [1][4] - The program will equip over 500 school buses with stop arm safety camera technology to document and report vehicles that illegally pass stopped buses, providing critical evidence for law enforcement [2][5] - The initiative is expected to cover six school districts, impacting more than 20,000 students and over 40 schools, with a phased rollout planned for the 2025/2026 school year [3][8] Program Implementation - The program will utilize advanced AI integration and a full-service solution to ensure effective implementation, alongside a public education campaign to raise awareness about the dangers of illegally passing stopped school buses [4][6] - The initiative will have no upfront costs for Onondaga County or the school districts, as it will be funded through citations issued for illegal passing [6] - Verra Mobility's technology has shown a 98% compliance rate among drivers who received violations, with community awareness programs leading to over a 50% reduction in citations [6] Stakeholder Support - Superintendents from participating school districts have expressed strong support for the initiative, emphasizing its importance in enhancing student safety and holding drivers accountable [9][10][12] - The program aims to change driver behavior and ultimately save lives by enforcing traffic laws related to school bus safety [5][10] - Comprehensive training will be provided to district personnel and local law enforcement to maximize the program's effectiveness [7]

Core Points - Verra Mobility Corporation will report its financial results for the fourth quarter ended December 31, 2024, after market close on February 27, 2025 [1] - The CEO David Roberts and CFO Craig Conti will host a conference call and live webcast to discuss the financial results at 5:00 p.m. ET on February 27, 2025 [2] - A live webcast will be available on the Company's Investor Relations website, and a replay will also be accessible [3] Company Overview - Verra Mobility Corporation is a leading provider of smart mobility technology solutions, focusing on making transportation safer, smarter, and more connected [4] - The company integrates vehicles, hardware, software, data, and people to provide efficient solutions for customers globally, addressing transportation safety and parking management [4] - Headquartered in Arizona, Verra Mobility operates across North America, Europe, Asia, and Australia [4]

Core Insights - More than half of respondents (51%) would purchase an EV today if upfront cost was not a factor, indicating a strong interest in electric vehicles among consumers [7] - The survey revealed that 47% of participants plan to purchase an EV within the next 5 years, with 21% intending to buy one in the next 1-2 years, suggesting a growing market for EVs [1][2] - Despite concerns about EV adoption rates slowing, the survey indicates steady interest, with 48% of municipal technology leaders expecting EVs to dominate personal vehicles within the next decade [2] Consumer Concerns - The primary concern regarding EV ownership is range anxiety and the availability of charging stations, with 46% of respondents citing charging station availability as their biggest concern [3] - A significant portion of consumers (71%) reported feeling range anxiety, although this has decreased from 79% in the previous year [3] - Awareness of charging infrastructure is low, with 40% of respondents unaware of the nearest charging station to their home [3] Perceptions of EVs - The survey found mixed reactions to the impact of the last year on EV purchasing decisions, with 31% feeling more likely to buy an EV, while 24% felt less likely [4] - Following the 2024 presidential election, only 15% of respondents indicated they would be more likely to purchase an EV in the next four years [4] - Concerns about maintenance costs persist, with 63% of respondents expecting higher maintenance costs for EVs compared to gas-powered vehicles [7] Rental and Ownership Insights - A notable 70% of respondents would consider renting an EV as a way to "try before they buy," highlighting a potential avenue for increasing EV adoption [7] - The survey indicates that 73% of respondents would not know how to charge an EV rental car, pointing to a gap in consumer education regarding EV usage [7]

Core Insights - Verra Mobility Corporation has been recognized as a GovTech 100 Company for 2025, marking the fifth consecutive year it has received this honor, highlighting its leadership in providing smart mobility technology solutions to government agencies [1][2][3] - The GovTech 100 designation is awarded to companies demonstrating growth and innovation in technology solutions for local and state governments, emphasizing their role in enhancing government efficiency and citizen interaction [2][3] - Verra Mobility's executive vice president stated that this recognition reflects the company's commitment to developing innovative technologies that address the evolving needs of government partners, with plans to expand solutions for mobility challenges in 2025 and beyond [2][3] Company Developments - In the previous year, Verra Mobility expanded its operations into new markets such as Florida and California, implementing safety programs related to speed, school zones, and school buses [2] - The company aims to continue this trend in 2025 as more governments recognize the importance of technology in addressing road safety issues [2][3] - Verra Mobility operates globally, providing smart mobility technology solutions that enhance transportation safety and efficiency, while also addressing complex challenges for fleet owners and rental car companies [5] Industry Context - The GovTech 100 list serves as a validation platform for innovation within the state and local government technology market, showcasing a range of companies from startups to publicly traded enterprises [3] - The increasing adoption of exponential technologies and changing behaviors in the market present opportunities for companies like Verra Mobility to partner with local governments in delivering innovative solutions that align with sustainability and urban mobility goals [3]

Core Insights - Verra Mobility Corporation has released data indicating that the Wednesday before Thanksgiving has the highest number of red-light violations over the holiday weekend, while Thanksgiving Day has the most speeding violations in the last two years [1][4]. Traffic Safety Data - Over the 2023 Thanksgiving weekend, there were more than 57,000 red-light violations recorded, with the majority occurring between 12 p.m. and 4 p.m. on Wednesday [3]. - The 2023 holiday weekend saw over 150,000 speeding violations, with the peak occurring between 10 a.m. and 12 p.m. on Thanksgiving Day [4]. Driver Behavior Insights - The average number of speeding violations per site has shown a slow downward trend since 2021, despite the overall increase in violations during the holiday period [4]. - Verra Mobility emphasizes the need for drivers to remain alert during the holidays due to increased distractions, which can lead to dangerous driving behaviors [6]. Industry Context - AAA estimates that approximately 49.1 million Americans will travel by car for Thanksgiving, highlighting the significance of road safety during this period [5]. - The National Safety Council projects that 507 lives could be lost on U.S. roads during the holiday, underscoring the critical nature of traffic safety measures [5]. Company Initiatives - Verra Mobility aims to raise awareness about the dangers of distracted and reckless driving, promoting the use of its safety solutions to change dangerous driving behaviors [6]. - The company utilizes advanced technology in its red-light safety camera solutions and speed safety camera programs to detect and capture traffic violations, thereby improving road safety [6].

Core Insights - Verra Mobility Corporation has been recognized for the second consecutive year on the Fortune 100 Fastest-Growing Companies list, ranking 56th this year [2][3] - The Fortune 100 list evaluates companies based on revenue growth, profits, and stock returns over a three-year period, with the listed companies collectively valued at $6.7 trillion in market capitalization [2] Company Performance - The recognition highlights Verra Mobility's strong market position and the performance of its global team, indicating a trajectory for continued growth [3] - The company focuses on deploying its business operating system with an emphasis on continuous improvement and consistent execution [3] Business Offerings - Verra Mobility provides a range of technology solutions aimed at enhancing transportation safety and efficiency, serving commercial fleets, rental car companies, cities, school districts, universities, and parking operators [3][5] - The company integrates vehicles, hardware, software, data, and people to create safe and efficient mobility solutions globally [5]

Financial Data and Key Metrics Changes - Third quarter revenues reached $109 million, an 11% increase year-over-year, with adjusted EBITDA of $105 million, reflecting an 8% increase compared to the previous year [6][33] - Net income for the quarter was $35 million, with GAAP EPS at $0.21, up from $0.18 in the prior year, and adjusted EPS at $0.32, a 10% increase from $0.29 [34][33] - Free cash flow for the quarter was a record $85 million, contributing to a trailing twelve-month adjusted free cash flow of $172 million, representing a 44% conversion of adjusted EBITDA [24][36] Business Line Data and Key Metrics Changes - Commercial Services segment revenue grew 11% year-over-year, driven by a 6% increase in RAC tolling revenue and a 9% increase in Fleet Management revenue [6][37] - Government Solutions Service revenue, which constitutes 95% of total revenue, increased by 7% year-over-year, with a notable 12% growth outside of New York City [8][39] - T2 Systems generated approximately $21 million in revenue, slightly below expectations, with a segment profit of $4 million [19][41] Market Data and Key Metrics Changes - TSA passenger volumes for the year-to-date stood at about 106% of 2023 levels, indicating strong consumer and business travel demand, although a deceleration was noted in September and October due to hurricanes [4][5] - The demand for automated photo enforcement is at an all-time high, with contract awards in the third quarter representing about $22 million in incremental annual recurring revenue [10][9] Company Strategy and Development Direction - The company is focused on stabilizing the T2 Parking business and rejuvenating its growth trajectory while continuing to generate robust free cash flow for capital allocation [3][24] - The long-term outlook remains intact, with anticipated revenue growth at the low end of the 6% to 8% long-term guidance for 2025, driven by travel demand and backlog conversion in Government Solutions [25][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in travel demand remaining solid, despite a slight deceleration, and highlighted a strong bid pipeline for automated enforcement [27][25] - The company anticipates that the financial infrastructure investments and TAM execution costs will impact margins in 2025, but expects to maintain a low 30% margin profile in the Government Solutions business [54][93] Other Important Information - The company has approximately $50 million remaining under its existing share buyback authorization and is actively evaluating M&A opportunities [24][58] - A successful repricing of the $700 million term loan B was completed, resulting in a 50 basis point reduction in the coupon rate, yielding significant cash savings [46][45] Q&A Session Summary Question: Update on New York City RFP and competitive advantages - Management highlighted confidence in their technology and support capabilities, with the RFP response expected in Q2 of next year [61][62] Question: 2025 growth cadence and Government Solutions outlook - Management indicated that Government Solutions is expected to see sequential growth in the back half of 2025, with flat revenue from New York City [66][64] Question: Growth expectations for different business segments - Management expects Commercial Services to grow at the lower end of the long-term guide, while Government Solutions may exceed that due to strong bookings [68][69] Question: Installation costs and margin mix for new contracts - Management noted that installation costs will precede revenue, but they expect to maintain margins similar to previous years [90][92] Question: Impact of Florida toll disruptions due to hurricanes - Management estimated a headwind of $1 million to $2 million from the disruptions [104] Question: Importance of international business - Management emphasized the significance of international markets, particularly in Government Solutions, with ongoing growth in Australia and Europe [105][107]

Group 1: Earnings Performance - Verra Mobility Corp (VRRM) reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and up from $0.29 per share a year ago, representing an earnings surprise of 3.23% [1] - The company posted revenues of $225.55 million for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.10%, but up from $209.93 million year-over-year [2] - Over the last four quarters, Verra Mobility has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Group 2: Stock Performance and Outlook - Verra Mobility shares have increased approximately 14.3% since the beginning of the year, while the S&P 500 has gained 21.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.30 on revenues of $221.87 million, and for the current fiscal year, it is $1.19 on revenues of $879.77 million [7] Group 3: Industry Context - The Security and Safety Services industry, to which Verra Mobility belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5] - The current estimate revisions trend for Verra Mobility is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Earnings Overview Verra Mobility Q3 2024 Earnings Presentation For the Quarter Ended September 30, 2024 FORWARD-LOOKING STATEMENTS This presentation 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. Forward-looking statements include statements regarding changes and ...

Revenue Growth - Total revenue increased by $51.4 million, or 8.5%, from $606.3 million in the nine months ended September 30, 2023, to $657.7 million in the same period in 2024[90] - Service revenue for the three months ended September 30, 2024, increased by $16.2 million, or 8.1%, to $217.3 million, representing 96.3% of total revenue[109] - Service revenue increased by $50.2 million, or 8.6%, to $632.0 million for the nine months ended September 30, 2024, compared to $581.8 million for the same period in 2023[128] - Commercial Services service revenue increased by $11.0 million, or 11.2%, from approximately $98.1 million for the three months ended September 30, 2023, to $109.1 million for the same period in 2024[110] - Government Solutions service revenue increased by $5.9 million, or 6.9%, from approximately $85.1 million for the three months ended September 30, 2023, to $91.0 million for the same period in 2024[111] - Parking Solutions service revenue declined by $0.7 million, or 3.7%, from approximately $17.8 million for the three months ended September 30, 2023, to $17.1 million for the same period in 2024[112] - Commercial Services revenue rose by $30.8 million, or 11.1%, to $309.0 million, driven by increased travel volume and tolling activity[131] - Government Solutions revenue increased by $19.4 million, or 7.7%, to $272.7 million, primarily due to the expansion of speed and red light programs[132] Operating Expenses - Operating expenses increased by $7.2 million, or 10.4%, to $76.0 million for the three months ended September 30, 2024[109] - Total operating expenses increased by approximately $7.2 million, or 10.4%, from $68.9 million for the three months ended September 30, 2023, to $76.0 million for the same period in 2024[116] - Total operating expenses increased by $25.2 million, or 12.8%, to $221.6 million, with wages expense rising by $16.2 million[137] - Selling, general and administrative expenses increased to $47.9 million for the three months ended September 30, 2024, compared to $42.3 million for the same period in 2023[119] - Selling, general and administrative expenses increased to $142.4 million, up from $125.5 million, primarily due to higher wages and stock-based compensation[140] - Operating expenses as a percentage of total revenue increased from 32.8% to 33.7% for the three months ended September 30, 2023, and 2024, respectively[116] - Operating expenses as a percentage of total revenue increased from 32.4% to 33.7% for the nine months ended September 30, 2023, and 2024, respectively[137] Net Income - Net income for the three months ended September 30, 2024, was $34.7 million, an increase of $4.4 million, or 14.6%, compared to $30.3 million for the same period in 2023[109] - Net income for the nine months ended September 30, 2024, was $98.1 million, an increase of $44.1 million or 81.7% compared to $54.0 million in 2023[128] - Total net income for the nine months ended September 30, 2024, was $98.1 million, an increase of $44.1 million compared to $54.0 million for the same period in 2023[148] Cash Flow - Cash flows from operating activities were $183.2 million for the nine months ended September 30, 2024, compared to $170.4 million for the same period in 2023[90] - Cash provided by operating activities increased by approximately $12.8 million from $170.4 million in 2023 to $183.2 million in 2024[157] - Cash used in investing activities increased to $51.0 million in 2024 from $41.7 million in 2023, driven by higher purchases of installation and service parts[158] Debt and Interest - The company refinanced its debt, reducing the interest rate by 50 basis points and making early repayments of approximately $4.5 million on its 2021 Term Loan during the nine months ended September 30, 2024[90] - Interest expense, net decreased by $1.7 million, or 8.1%, to $18.7 million for the three months ended September 30, 2024[109] - Interest expense, net decreased by approximately $1.7 million from $20.4 million for the three months ended September 30, 2023, to $18.7 million for the same period in 2024[121] - Interest expense, net decreased by $8.6 million from $65.8 million in 2023 to $57.2 million in 2024, primarily due to voluntary principal prepayments and a reduction in interest rates[142] - The outstanding balance of the 2021 Term Loan was $700.1 million as of September 30, 2024, with an interest rate of 7.6%[176] - Each 1% movement in interest rates will result in an approximately $7.0 million change in annual interest expense based on the September 30, 2024 balance[176] Taxation - The effective tax rate for the three months ended September 30, 2024, was 28.4%, compared to 27.5% for the same period in 2023[125] - The effective tax rate for the nine months ended September 30, 2024, was 27.4%, down from 37.1% in 2023, primarily due to differences related to Private Placement Warrants[147] Share Repurchase and Capital - The company has $48.5 million remaining under the share repurchase program as of September 30, 2024[92] - A new share repurchase program was authorized for up to $100.0 million over an 18-month period, with $48.5 million remaining available as of September 30, 2024[154] Other Financial Information - The New York City Department of Transportation (NYCDOT) represented approximately 16% of total revenue for the nine months ended September 30, 2024[95] - The company performed a quantitative impairment test for the Parking Solutions reporting unit, which showed an estimated fair value exceeding the carrying value by approximately 7%[172] - There were no material off-balance sheet financing arrangements as of September 30, 2024[173] - The company is compliant with all debt covenants as of September 30, 2024[170] - The company amended the 2021 Term Loan agreement to refinance the entire outstanding amount and reduced the interest rate by 50 basis points[165] - VM Consolidated issued $350.0 million in Senior Unsecured Notes with a fixed interest rate of 5.50% per annum, maturing on April 15, 2029[166] - The Revolving Credit Agreement has a commitment of up to $75.0 million, with no outstanding borrowings as of September 30, 2024, and an availability to borrow of $74.6 million[168]