Verra Mobility Files SEC Form 12B-25; Provides Business Update
Given the additional time required to fully complete the Company's assessment of the matter, as well as its assessments of the effectiveness of its disclosure controls and procedures and internal control over financial reporting as of
The Company will also delay its fourth quarter and fiscal 2021 earnings release and investor conference call, previously scheduled for
"We are currently reviewing certain transactions to determine if revenue has been recognized in the proper period, and to ensure proper accounting in the future." said
In the meantime, the Company is providing the following update on year-end 2021 financial and business performance trends.
- Revenue: Total revenue for the full year 2021 is expected to exceed the high end of the guidance range provided on
November 4, 2021(which was $525 millionto $540 million).
- Adjusted EBITDA: For the full year 2021, Adjusted EBITDA is expected to exceed the high end of the guidance range as provided on
November 4, 2021(which was $250 millionto $260 million).
These expectations are preliminary in nature and subject to the Audit Committee investigation described herein and completion of the Company's audit.
In addition to our expectations, the Company is providing the following business updates:
- The Company expects cash flows from operating activities to exceed
$190 millionfor the full year 2021
- The Commercial Services segment continues to see strong demand and returned to 2019 revenue levels in the fourth quarter with similar profitability levels. In January of 2022, the Company executed a three-year contract extension with
Hertzfor title & registration work and is working closely with Hertzto finalize the renewal terms of its tolling and violations contract. Additionally, the Company executed a five-year contract extension with Fox Rent A Carfor tolling services.
- The Government Solutions segment has completed the installation of 720 cameras for the
New York City Department of Transportationwith the last 25 being invoiced in January 2022, and on February 17, 2022, the Company received a Notice to Proceed on the next 240 School Zone Speed Cameras, which it expects to fully install in 2022.
The Company will provide financial guidance for the full year 2022 upon the filing of its Form 10-K.
About Verra Mobility
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Company's plans, objectives, expectations, beliefs and intentions and other statements including words such as "hope," "anticipate," "may," "believe," "expect," "intend," "will," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. The forward-looking statements herein represent the judgment of the Company, as of the date of this release, and the Company disclaims any intent or obligation to update forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. 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 and on the SEC website, www.sec.gov. Understanding the information contained in these filings is important in order to fully understand the Company's reported financial results and our business outlook for future periods. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements.
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