vrrm-8k_20181108.DOCX.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 8, 2018

 

VERRA MOBILITY CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

1-37979

81-3563824

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

1150 N. Alma School Road
Mesa, Arizona
(Address of principal executive offices)

85201
(Zip Code)

(480) 443-7000

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

☒   Emerging growth company  

☐   If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


INTRODUCTORY NOTE

On October 17, 2018, the registrant consummated the previously announced business combination pursuant to that certain Agreement and Plan of Merger dated June 21, 2018, by and among Gores Holdings II, Inc., AM Merger Sub I, Inc. (“First Merger Sub”), AM Merger Sub II, LLC (“Second Merger Sub”), Greenlight Holding II Corporation (“Greenlight”) and PE Greenlight Holdings, LLC, as amended on August 23, 2018 by Amendment No. 1 to Agreement and Plan of Merger (as amended, the “Merger Agreement”), which provided for: (i) the merger of First Merger Sub with and into Greenlight, with Greenlight continuing as the surviving corporation (the “First Merger”) and (ii) immediately following the First Merger and as part of the same overall transaction as the First Merger, the merger of Greenlight with and into Second Merger Sub with Second Merger Sub continuing as the surviving entity (the “Second Merger” and, together with the First Merger, the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Business Combination”).  

In connection with the closing of the Business Combination on October 17, 2018 (the “Closing”), the registrant changed its name from Gores Holdings II, Inc. to Verra Mobility Corporation, and Second Merger Sub changed its name from AM Merger Sub II, LLC to Verra Mobility Holdings, LLC. Verra Mobility Corporation owns, directly or indirectly, all of the equity interests of Verra Mobility Holdings, LLC and its subsidiaries.  Unless otherwise stated, this Report on Form 8-K, including Exhibit 99.1, contains information about the business of Verra Mobility Corporation prior to the Closing.

Item 2.02   Results of Operations and Financial Condition.

On November 8, 2018, Verra Mobility Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2018.  A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Item 2.02 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

Item 7.01   Regulation FD Disclosure.

On November 8, 2018, the Company disseminated an investor presentation to be used in connection with the earnings call. A copy of the investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information furnished in this Item 7.01, and Exhibit 99.2 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing.

The Company expressly disclaims any obligation to update or revise any of the information contained in the investor presentation.

The investor presentation is available on the Company’s investor relations website located at ir.verramobility.com, although the Company reserves the right to discontinue that availability at any time.

Item 9.01   Financial Statements and Exhibits.

 

(d)

Exhibits.

 

Exhibit Number

 

Description of Exhibits

 

 

 

 

 

99.1

 

Press Release, dated November 8, 2018, issued by Verra Mobility Corporation

 

99.2

 

Investor Presentation, dated November 8, 2018, given by Verra Mobility Corporation

 

 


2


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated:  November 8, 2018

Verra Mobility Corporation

 

 

 

 

By:

/s/ Patricia Chiodo

 

Name:

Patricia Chiodo

 

Title:

Chief Financial Officer

 

3

vrrm-ex991_6.htm

 

Exhibit 99.1

Verra Mobility Announces Third Quarter 2018 Financial Results

 

MESA, Arizona – November 8, 2018 – Verra Mobility Corporation (NASDAQ: VRRM) (the “Company” or “Verra Mobility”) a leading provider of smart mobility technology solutions, today announced financial results for the quarter ended September 30, 2018.

Total revenue for the third quarter increased to $107.6 million compared to $56.1 million for third quarter of 2017.  During 2018, the Company completed two acquisitions that together contributed $40.2 million to the year-over-year revenue growth.  Excluding the impact of the acquisitions, total revenue grew by $11.3 million, an increase of 20% over the same quarter in the prior year.

“During the third quarter we executed on our strategy of growing the core business, while integrating two strategic acquisitions and investing in new product offerings,” said David Roberts, Chief Executive Officer of Verra Mobility.  “We are committed to serving our customers and communities by making transportation safer, easier and more connected.”

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 via road safety camera programs related to red light, speed, school bus, and city bus lanes.  

Third Quarter 2018 Financial Highlights

 

Generated Net Income of $6.5 million

 

Adjusted EBITDA of $61.9 million is 57.6% of total revenue

 

Commercial Services segment generated revenue of $72.0 million and segment profit of $49.4 million

 

Government Solutions segment generated revenue of $35.6 million and segment profit of $12.5 million

 

Operating expenses as a percentage of total revenue were 25.9% compared to 38.6% in the prior year

 

Cash flow from operations was $46.1 million

David Roberts, Verra Mobility’s CEO, remarked, “Our recent acquisitions are performing well and we are achieving our synergy targets. Segment profit margins for Commercial Services were nearly 69% for the quarter.  We expect to end the year strong and ahead of our revenue and profit estimates.”

 


Quarterly Conference Call

Verra Mobility will host a conference call today at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time) to review the Company’s financial results for the quarter ended September 30, 2018.  To access this call, dial (800) 289-0438 for the U.S. or Canada, or (323) 794-2423 for international callers.  A live webcast of the conference call will be accessible from the Investors section of Verra Mobility’s website at http://ir.verramobility.com, and a recording will be archived and accessible at http://ir.verramobility.com. An audio replay of this conference call will also be available through November 22, 2018, by dialing (844) 512-2921 for the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 7026761.

Forward-Looking Statements

This press release contains forward-looking statements which address the Company’s expected future business and financial performance, and often contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” or “will” and similar expressions. Examples of forward-looking statements include, among others, statements regarding the benefits of the Company’s 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 2018 financial and operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Risks and uncertainties that may affect future results include those that are described from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), which are available on the Company’s Investor Relations website, http://ir.verramobility.com, and on the SEC website, www.sec.gov. These forward-looking statements represent the judgment of the Company, as of the date of this release, and Verra Mobility disclaims any intent or obligation to update forward-looking statements. This press release should be read in conjunction with the information included in the Company’s other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand the Company’s reported financial results and business outlook for future periods.

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company also discloses certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and they 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 and adjusted EBITDA margin are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently 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 reconciliation.

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. 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. For more information, visit www.verramobility.com.

 

Investor Contact

Marc P. Griffin

ICR, Inc., for Verra Mobility

646-277-1290

IR@verramobility.com  

 

 

 

 


 

VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

September 30,

2018

 

 

December 31,

2017

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

51,948,613

 

 

$

8,724,945

 

Restricted cash

 

 

1,727,645

 

 

 

1,784,665

 

Accounts receivable, net

 

 

76,215,796

 

 

 

60,180,536

 

Unbilled receivables

 

 

12,546,409

 

 

 

4,802,074

 

Prepaid expenses and other current assets

 

 

17,750,138

 

 

 

15,788,912

 

Total current assets

 

 

160,188,601

 

 

 

91,281,132

 

 

 

 

 

 

 

 

 

 

Installation and service parts, net

 

 

11,368,887

 

 

 

9,066,913

 

Property and equipment, net

 

 

67,196,125

 

 

 

65,370,696

 

Intangible assets, net

 

 

538,103,690

 

 

 

203,749,221

 

Goodwill

 

 

564,394,454

 

 

 

294,414,522

 

Other non-current assets

 

 

2,305,216

 

 

 

982,731

 

Total assets

 

$

1,343,556,973

 

 

$

664,865,215

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

47,697,160

 

 

$

20,158,977

 

Accrued liabilities

 

 

15,763,074

 

 

 

10,086,622

 

Current portion of long-term debt

 

 

8,400,000

 

 

 

3,250,000

 

Total current liabilities

 

 

71,860,234

 

 

 

33,495,599

 

 

 

 

 

 

 

 

 

 

Long term debt, net of current portion and deferred financing costs

 

 

980,058,924

 

 

 

425,439,034

 

Other long-term liabilities

 

 

3,176,764

 

 

 

2,689,145

 

Asset retirement obligations

 

 

6,730,721

 

 

 

6,373,125

 

Deferred income taxes, net

 

 

41,790,046

 

 

 

49,603,691

 

Total Liabilities

 

 

1,103,616,689

 

 

 

517,600,594

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Common stock, $.01 par value, 1,000 shares authorized with

   100 shares issued and outstanding at September 30, 2018

   and December 31, 2017

 

 

1

 

 

 

1

 

Additional paid-in capital

 

 

246,582,030

 

 

 

129,026,398

 

Retained earnings (accumulated deficit)

 

 

(2,201,891

)

 

 

18,238,222

 

Accumulated other comprehensive loss

 

 

(4,439,856

)

 

 

 

Total stockholders' equity

 

 

239,940,284

 

 

 

147,264,621

 

Total liabilities and stockholders' equity

 

$

1,343,556,973

 

 

$

664,865,215

 

 


 


VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

 

 

Successor

 

 

 

Three months ended

 

 

Three months ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

Service revenue

 

$

105,203,673

 

 

$

55,608,693

 

Product sales

 

 

2,398,807

 

 

 

480,699

 

Total revenue

 

 

107,602,480

 

 

 

56,089,392

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

1,735,420

 

 

 

838,211

 

Cost of product sales

 

 

1,375,105

 

 

 

284,258

 

Operating expenses

 

 

27,819,681

 

 

 

21,703,331

 

Selling, general and administrative expenses

 

 

21,687,265

 

 

 

15,830,550

 

Depreciation, amortization and (gain) loss on disposal

   of assets, net

 

 

28,789,672

 

 

 

14,221,542

 

Total costs and expenses

 

 

81,407,143

 

 

 

52,877,892

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

26,195,337

 

 

 

3,211,500

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

20,312,956

 

 

 

8,947,089

 

Other income, net

 

 

(2,942,255

)

 

 

(1,073,966

)

Total other expense

 

 

17,370,701

 

 

 

7,873,123

 

 

 

 

 

 

 

 

 

 

Net income (loss) before income tax provision (benefit)

 

 

8,824,636

 

 

 

(4,661,623

)

Income tax provision (benefit)

 

 

2,311,923

 

 

 

(1,314,474

)

Net income (loss)

 

 

6,512,713

 

 

 

(3,347,149

)

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(727,998

)

 

 

 

Total comprehensive income (loss)

 

$

5,784,715

 

 

$

(3,347,149

)


 


VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

 

 

Successor

 

 

Predecessor

 

 

 

Nine months ended

 

 

Four months ended

 

 

Five months ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

May 31, 2017

 

Service revenue

 

$

271,253,648

 

 

$

74,386,326

 

 

$

92,530,939

 

Product sales

 

 

3,786,660

 

 

 

688,325

 

 

 

1,340,191

 

Total revenue

 

 

275,040,308

 

 

 

75,074,651

 

 

 

93,871,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

4,217,444

 

 

 

1,123,209

 

 

 

1,369,445

 

Cost of product sales

 

 

2,425,132

 

 

 

471,197

 

 

 

963,504

 

Operating expenses

 

 

80,300,635

 

 

 

28,767,893

 

 

 

35,967,664

 

Selling, general and administrative expenses

 

 

82,550,861

 

 

 

30,049,143

 

 

 

40,884,179

 

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

 

 

74,829,641

 

 

 

19,243,972

 

 

 

12,613,143

 

Total costs and expenses

 

 

244,323,713

 

 

 

79,655,414

 

 

 

91,797,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

30,716,595

 

 

 

(4,580,763

)

 

 

2,073,195

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

52,538,757

 

 

 

11,835,402

 

 

 

875,102

 

Loss on extinguishment of debt

 

 

10,151,074

 

 

 

 

 

 

 

Other income, net

 

 

(7,000,884

)

 

 

(1,335,249

)

 

 

(1,294,299

)

Total other expense (income)

 

 

55,688,947

 

 

 

10,500,153

 

 

 

(419,197

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income before income tax (benefit) provision

 

 

(24,972,352

)

 

 

(15,080,916

)

 

 

2,492,392

 

Income tax (benefit) provision

 

 

(4,532,239

)

 

 

(4,137,563

)

 

 

1,252,793

 

Net (loss) income

 

 

(20,440,113

)

 

 

(10,943,353

)

 

 

1,239,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(4,439,856

)

 

 

 

 

 

 

Total comprehensive (loss) income

 

$

(24,879,969

)

 

$

(10,943,353

)

 

$

1,239,599

 

 

 


VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED STATEMENTS OF SEGMENT PROFITABILITY

 

 

 

Successor

 

 

 

Government

 

 

Commercial

 

 

Corporate and

 

 

 

 

 

For the three months ended September 30, 2018

 

Solutions

 

 

Services

 

 

Other

 

 

Total

 

Service revenue

 

$

33,231,500

 

 

$

71,972,173

 

 

$

 

 

$

105,203,673

 

Product sales

 

 

2,398,807

 

 

 

 

 

 

 

 

 

2,398,807

 

Total revenue

 

 

35,630,307

 

 

 

71,972,173

 

 

 

 

 

 

107,602,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

648,277

 

 

 

1,087,143

 

 

 

 

 

 

1,735,420

 

Cost of product sales

 

 

1,375,105

 

 

 

 

 

 

 

 

 

1,375,105

 

Operating expenses

 

 

13,850,461

 

 

 

13,969,220

 

 

 

 

 

 

27,819,681

 

Selling, general and administrative

   expenses

 

 

7,240,689

 

 

 

10,439,986

 

 

 

4,006,590

 

 

 

21,687,265

 

Other (income) expense, net

 

 

(26,123

)

 

 

(2,943,006

)

 

 

26,874

 

 

 

(2,942,255

)

Segment Profit (Loss)

 

$

12,541,898

 

 

$

49,418,830

 

 

$

(4,033,464

)

 

$

57,927,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit (loss)

 

$

12,541,898

 

 

$

49,418,830

 

 

$

(4,033,464

)

 

$

57,927,264

 

Depreciation, amortization,

   impairment, and (gain) loss on

   disposal of assets, net

 

 

 

 

 

 

 

 

28,789,672

 

 

 

28,789,672

 

Interest expense

 

 

 

 

 

 

 

 

20,312,956

 

 

 

20,312,956

 

Income (loss) before income taxes

 

$

12,541,898

 

 

$

49,418,830

 

 

$

(53,136,092

)

 

$

8,824,636

 

 

 

 

 

Successor

 

 

 

Government

 

 

Commercial

 

 

Corporate and

 

 

 

 

 

For the three months ended September 30, 2017

 

Solutions

 

 

Services

 

 

Other

 

 

Total

 

Service revenue

 

$

32,373,306

 

 

$

23,235,387

 

 

$

 

 

$

55,608,693

 

Product sales

 

 

480,699

 

 

 

 

 

 

 

 

 

480,699

 

Total revenue

 

$

32,854,005

 

 

$

23,235,387

 

 

$

 

 

$

56,089,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

641,407

 

 

 

196,804

 

 

 

 

 

 

838,211

 

Cost of product sales

 

 

284,258

 

 

 

 

 

 

 

 

 

284,258

 

Operating expenses

 

 

14,828,550

 

 

 

6,874,781

 

 

 

 

 

 

21,703,331

 

Selling, general and administrative

   expenses

 

 

5,522,603

 

 

 

5,994,795

 

 

 

4,313,152

 

 

 

15,830,550

 

Other (income) expense, net

 

 

(26,925

)

 

 

(1,049,475

)

 

 

2,434

 

 

 

(1,073,966

)

Segment Profit (Loss)

 

$

11,604,112

 

 

$

11,218,482

 

 

$

(4,315,586

)

 

$

18,507,008

 

Segment profit (loss)

 

$

11,604,112

 

 

$

11,218,482

 

 

$

(4,315,586

)

 

$

18,507,008

 

Depreciation, amortization,

   impairment, and (gain) loss on

   disposal of assets, net

 

 

 

 

 

 

 

 

14,221,542

 

 

 

14,221,542

 

Interest

 

 

 

 

 

 

 

 

8,947,089

 

 

 

8,947,089

 

Income (loss) before income taxes

 

$

11,604,112

 

 

$

11,218,482

 

 

$

(27,484,217

)

 

$

(4,661,623

)

 


 


 

VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED STATEMENTS OF SEGMENT PROFITABILITY

 

 

 

 

Successor

 

 

 

Government

 

 

Commercial

 

 

Corporate and

 

 

 

 

 

For the nine months ended September 30, 2018

 

Solutions

 

 

Services

 

 

Other

 

 

Total

 

Service revenue

 

$

107,063,888

 

 

$

164,189,760

 

 

$

 

 

$

271,253,648

 

Product sales

 

 

3,786,660

 

 

 

 

 

 

 

 

 

3,786,660

 

Total revenue

 

 

110,850,548

 

 

 

164,189,760

 

 

 

 

 

 

275,040,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

2,163,458

 

 

 

2,053,986

 

 

 

 

 

 

4,217,444

 

Cost of product sales

 

 

2,425,132

 

 

 

 

 

 

 

 

 

2,425,132

 

Operating expenses

 

 

42,701,929

 

 

 

37,598,706

 

 

 

 

 

 

80,300,635

 

Selling, general and administrative

   expenses

 

 

20,585,732

 

 

 

42,992,315

 

 

 

18,972,814

 

 

 

82,550,861

 

Other (income) expense, net

 

 

(88,853

)

 

 

(6,911,623

)

 

 

(408

)

 

 

(7,000,884

)

Segment Profit (Loss)

 

$

43,063,150

 

 

$

88,456,376

 

 

$

(18,972,406

)

 

$

112,547,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit (loss)

 

$

43,063,150

 

 

$

88,456,376

 

 

$

(18,972,406

)

 

$

112,547,120

 

Depreciation, amortization,

   impairment, and (gain) loss on

   disposal of assets, net

 

 

 

 

 

 

 

 

74,829,641

 

 

 

74,829,641

 

Interest expense

 

 

 

 

 

 

 

 

52,538,757

 

 

 

52,538,757

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

10,151,074

 

 

 

10,151,074

 

Income (loss) before income taxes

 

$

43,063,150

 

 

$

88,456,376

 

 

$

(156,491,878

)

 

$

(24,972,352

)

 

 

 

Successor

 

 

 

Government

 

 

Commercial

 

 

Corporate and

 

 

 

 

 

For the four months ended September 30, 2017

 

Solutions

 

 

Services

 

 

Other

 

 

Total

 

Service revenue

 

$

43,746,847

 

 

$

30,639,479

 

 

$

 

 

$

74,386,326

 

Product sales

 

 

688,325

 

 

 

 

 

 

 

 

 

688,325

 

Total revenue

 

$

44,435,172

 

 

$

30,639,479

 

 

$

 

 

$

75,074,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

876,729

 

 

 

246,480

 

 

 

 

 

 

1,123,209

 

Cost of product sales

 

 

471,197

 

 

 

 

 

 

 

 

 

471,197

 

Operating expenses

 

 

19,702,233

 

 

 

9,065,660

 

 

 

 

 

 

28,767,893

 

Selling, general and administrative

   expenses

 

 

7,244,266

 

 

 

7,863,415

 

 

 

14,941,462

 

 

 

30,049,143

 

Other (income) expense, net

 

 

(33,346

)

 

 

(1,304,337

)

 

 

2,434

 

 

 

(1,335,249

)

Segment Profit (Loss)

 

$

16,174,093

 

 

$

14,768,261

 

 

$

(14,943,896

)

 

$

15,998,458

 

Segment profit (loss)

 

$

16,174,093

 

 

$

14,768,261

 

 

$

(14,943,896

)

 

$

15,998,458

 

Depreciation, amortization,

   impairment, and (gain) loss on

   disposal of assets, net

 

 

 

 

 

 

 

 

19,243,972

 

 

 

19,243,972

 

Interest

 

 

 

 

 

 

 

 

11,835,402

 

 

 

11,835,402

 

Income (loss) before income taxes

 

$

16,174,093

 

 

$

14,768,261

 

 

$

(46,023,270

)

 

$

(15,080,916

)

 


 


 

VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED STATEMENTS OF SEGMENT PROFITABILITY

 

 

 

Predecessor

 

 

 

Government

 

 

Commercial

 

 

Corporate and

 

 

 

 

 

For the five months ended May 31, 2017

 

Solutions

 

 

Services

 

 

Other

 

 

Total

 

Service revenue

 

$

57,021,850

 

 

$

35,509,089

 

 

$

 

 

$

92,530,939

 

Product sales

 

 

1,340,191

 

 

 

 

 

 

 

 

 

1,340,191

 

Total revenue

 

 

58,362,041

 

 

 

35,509,089

 

 

 

 

 

 

93,871,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of service revenue

 

 

1,174,923

 

 

 

194,522

 

 

 

 

 

 

1,369,445

 

Cost of product sales

 

 

963,504

 

 

 

 

 

 

 

 

 

963,504

 

Operating expenses

 

 

24,702,104

 

 

 

11,265,560

 

 

 

 

 

 

35,967,664

 

Selling, general and administrative

   expenses

 

 

9,230,714

 

 

 

9,881,849

 

 

 

21,771,616

 

 

 

40,884,179

 

Other (income) expense, net

 

 

(48,416

)

 

 

(1,243,281

)

 

 

(2,602

)

 

 

(1,294,299

)

Segment Profit (Loss)

 

$

22,339,212

 

 

$

15,410,439

 

 

$

(21,769,014

)

 

$

15,980,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment profit (loss)

 

$

22,339,212

 

 

$

15,410,439

 

 

$

(21,769,014

)

 

$

15,980,637

 

Depreciation, amortization,

   impairment, and (gain) loss on

   disposal of assets, net

 

 

 

 

 

 

 

 

12,613,143

 

 

 

12,613,143

 

Interest

 

 

 

 

 

 

 

 

875,102

 

 

 

875,102

 

Income (loss) before income taxes

 

$

22,339,212

 

 

$

15,410,439

 

 

$

(35,257,259

)

 

$

2,492,392

 


 


VERRA MOBILITY CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Successor

 

 

Predecessor

 

 

 

Nine months ended

 

 

Four months ended

 

 

Five months ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

 

May 31, 2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(20,440,113

)

 

$

(10,943,353

)

 

$

1,239,599

 

Adjustments to reconcile net (loss) income to net cash

   provided by (used in) operating activities: