News Release

Verra Mobility Announces Second Quarter 2023 Financial Results

August 9, 2023 at 4:05 PM EDT
  • 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.com
Webcast 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 Contact
Mark Zindler
mark.zindler@verramobility.com

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SOURCE Verra Mobility