View Filing Data

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 06, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	VERRA MOBILITY CORPORATION
Entity Central Index Key	0001682745
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		161,694,330
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	VRRM
Security Exchange Name	NASDAQ
Entity File Number	001-37979
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3563824
Entity Address, Address Line One	1150 North Alma School Road
Entity Address, City or Town	Mesa
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85201
City Area Code	480
Local Phone Number	443-7000
Document Quarterly Report	true
Document Transition Report	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 113,583	$ 131,513
Restricted cash	1,510	917
Accounts receivable (net of allowance for credit loss of $10.8 million at March 31, 2020)	109,839	93,514
Unbilled receivables	16,358	20,003
Prepaid expenses and other current assets	24,616	26,491
Total current assets	265,906	272,438
Installation and service parts, net	8,022	8,841
Property and equipment, net	73,631	72,266
Operating lease assets	31,789	32,177
Intangible assets, net	409,957	434,443
Goodwill	581,730	584,150
Other non-current assets	3,094	3,111
Total assets	1,374,129	1,407,426
Current liabilities:
Accounts payable	39,198	50,825
Accrued liabilities	23,701	25,277
Current portion of long-term debt	9,104	28,779
Total current liabilities	72,003	104,881
Long-term debt, net of current portion and deferred financing costs	835,507	837,686
Operating lease liabilities, net of current portion	29,917	30,130
Payable to related party pursuant to tax receivable agreement	61,174	61,174
Asset retirement obligation	6,387	6,309
Deferred tax liabilities, net	24,472	25,716
Other long-term liabilities	269	2,183
Total liabilities	1,029,729	1,068,079
Commitments and contingencies (Note 14)
Stockholders' equity
Preferred stock, $.0001 par value
Common stock, $.0001 par value	16	16
Common stock contingent consideration	36,575	54,862
Additional paid-in capital	387,994	367,266
Accumulated deficit	(74,241)	(80,220)
Accumulated other comprehensive loss	(5,944)	(2,577)
Total stockholders' equity	344,400	339,347
Total liabilities and stockholders' equity	$ 1,374,129	$ 1,407,426

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Allowance for credit loss	$ 10,846	$ 8,456
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total revenue	$ 116,713	$ 98,461
Operating expenses	32,259	29,338
Selling, general and administrative expenses	25,886	20,551
Depreciation, amortization and (gain) loss on disposal of assets, net	29,246	28,941
Total costs and expenses	97,300	80,495
Income from operations	19,413	17,966
Interest expense, net	12,451	16,033
Other income, net	(2,925)	(2,207)
Total other (income) expenses	9,526	13,826
Income before income tax provision (benefit)	9,887	4,140
Income tax provision	3,214	1,320
Net income (loss)	6,673	2,820
Other comprehensive (loss) income:
Change in foreign currency translation adjustment	(3,367)	1,324
Total comprehensive income (loss)	$ 3,306	$ 4,144
Net income per share:
Basic	$ 0.04	$ 0.02
Diluted	$ 0.04	$ 0.02
Weighted average shares used in per share calculation:
Basic outstanding	160,924	156,057
Diluted outstanding	164,427	156,458
Service Revenue
Total revenue	$ 99,497	$ 98,070
Cost of revenue	1,219	1,389
Product Sales
Total revenue	17,216	391
Cost of revenue	$ 8,690	$ 276

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Common Stock Platinum Stockholder	Common Stock Contingent Consideration	Common Stock Contingent Consideration Platinum Stockholder	Additional Paid-in Capital	Additional Paid-in Capital Platinum Stockholder	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2018	$ 302,056	$ 16		$ 73,150		$ 348,017		$ (113,306)	$ (5,821)
Beginning Balance (in shares) at Dec. 31, 2018		156,057
Net income	2,820							2,820
Cumulative effect of adoption of new accounting standard, net of tax \| ASU 2014-09	(257)							(257)
Adjustment to equity infusion from Gores	(6,205)					(6,205)
Adjustment to tax receivable agreement liability	2,940					2,940
Stock-based compensation	2,143					2,143
Other comprehensive gain (loss),net of tax	1,324								1,324
Ending Balance at Mar. 31, 2019	304,821	$ 16		73,150		346,895		(110,743)	(4,497)
Ending Balance (in shares) at Mar. 31, 2019		156,057
Beginning Balance at Dec. 31, 2019	339,347	$ 16		54,862		367,266		(80,220)	(2,577)
Beginning Balance (in shares) at Dec. 31, 2019		159,150
Net income	6,673							6,673
Cumulative effect of adoption of new accounting standard, net of tax \| ASU 2016-13	(694)							(694)
Earn-out shares issued to Platinum Stockholder					$ (18,287)		$ 18,287
Earn-out shares issued to Platinum Stockholder (in shares)			2,500
Vesting of restricted stock units (RSUs) (in shares)		42
Payment of employee tax withholding related to RSU vesting	(327)					(327)
Stock-based compensation	2,768					2,768
Other comprehensive gain (loss),net of tax	(3,367)								(3,367)
Ending Balance at Mar. 31, 2020	$ 344,400	$ 16		$ 36,575		$ 387,994		$ (74,241)	$ (5,944)
Ending Balance (in shares) at Mar. 31, 2020		161,692

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows from Operating Activities:
Net income	$ 6,673	$ 2,820
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29,250	28,939
Amortization of deferred financing costs and discounts	903	1,833
Credit loss expense	5,356	1,270
Deferred income taxes	(682)	(1,073)
Stock-based compensation	2,768	2,143
Installation and service parts expense	393	257
Accretion expense	64	90
(Gain) loss on disposal of assets	(4)	2
Changes in operating assets and liabilities:
Accounts receivable, net	(22,397)	(8,372)
Unbilled receivables	3,648	(3,797)
Prepaid expenses and other current assets	2,367	(1,527)
Accounts payable and accrued liabilities	(11,363)	18,413
Other liabilities	(2,135)	(3,647)
Net cash provided by operating activities	14,841	37,351
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment	(8,141)	(9,219)
Cash proceeds from the sale of assets	10	52
Net cash used in investing activities	(8,131)	(9,167)
Cash Flows from Financing Activities:
Repayment of long-term debt	(21,951)	(2,276)
Payment of debt issuance costs	(806)	(37)
Payment of employee tax withholding related to RSU vesting	(327)
Net cash used in financing activities	(23,084)	(2,313)
Effect of exchange rate changes on cash and cash equivalents	(963)	236
Net (decrease) increase in cash, cash equivalents and restricted cash	(17,337)	26,107
Cash, cash equivalents and restricted cash - beginning of period	132,430	67,081
Cash, cash equivalents and restricted cash - end of period	115,093	93,188
Supplemental cash flow information:
Interest paid	11,822	13,890
Income taxes paid (refunded), net	319	(4,710)
Supplemental non-cash investing and financing activities:
Reduction to tax receivable agreement liability		2,940
Earn-out shares issued to Platinum Stockholder	18,287
Additions to ARO, property and equipment, and other	22	28
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end	$ 4,586	$ 4,084

Description of Business

3 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

1.	Description of Business

Verra Mobility Corporation (collectively with its subsidiaries, the “Company” or “Verra Mobility”), formerly known as Gores Holdings II, Inc. (“Gores”), was originally incorporated in Delaware on August 15, 2016, as a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses. On January 19, 2017, the Company consummated its initial public offering (the “IPO”), following which its shares began trading on the Nasdaq Capital Market (“Nasdaq”). On June 21, 2018, Gores entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”) with Greenlight Holding II Corporation, PE Greenlight Holdings, LLC, AM Merger Sub I, Inc., a direct, wholly-owned subsidiary of Gores and AM Merger Sub II, LLC, a direct, wholly-owned subsidiary of Gores. On October 17, 2018, the transactions contemplated by the Merger Agreement (the “Business Combination”) were consummated. In connection with the closing of the Business Combination, Gores changed its name to Verra Mobility Corporation. As a result of the Business Combination, Verra Mobility Corporation became the owner, directly or indirectly, of all of the equity interests of Verra Mobility Holdings, LLC and its subsidiaries.

Verra Mobility offers integrated technology solutions and services to commercial fleets, rental car companies and state and local governments. The Company has customers located throughout the United States, Canada and Europe. The Company is organized into two operating segments: Commercial Services and Government Solutions (see Note 15).

The Commercial Services segment offers toll and violation management solutions for the commercial fleet and rental car industries by partnering with the leading fleet management and rental car companies in North America. Electronic toll payment services enable fleet drivers and rental car customers to use high-speed cashless toll lanes or all-electronic cashless toll roads. The service helps commercial fleets reduce toll management costs, while it provides rental car companies with a revenue-generating, value-added service for their customers. Electronic violation processing services reduce the cost and risk associated with vehicle-issued violations, such as toll, parking or camera-enforced tickets. Title and registration services offer title and registration processing for individuals, rental car companies and fleet management companies. In Europe, the Company provides violations processing through Euro Parking Collection plc (“EPC”) and tolling services through Pagatelia S.L (“Pagatelia”).

The Government Solutions segment provides complete, end-to-end red-light, speed, school bus stop arm and bus lane enforcement solutions. The Company’s programs are designed to reduce traffic violations and resulting collisions, injuries, and fatalities. The Company implements and administers traffic safety programs for municipalities, counties, school districts and law enforcement agencies of all sizes.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

2.	Significant Accounting Policies

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited interim condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the fair values assigned to net assets acquired (including identifiable intangibles) in business combinations, the carrying amounts of long-lived assets and goodwill, the carrying amount of installation and service parts, the allowance for credit loss, valuation allowances on deferred tax assets, asset retirement obligations, contingent consideration and the recognition and measurement of loss contingencies.

Management believes that its estimates and assumptions are reasonable in the circumstances; however, actual results could differ materially from those estimates.

Recent Accounting Pronouncements

Accounting Standards Adopted

In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles—Goodwill and Other (Topic 350). ASU 2017-04 simplifies the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment is now the amount by which a reporting unit’s carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The Company adopted the ASU as of January 1, 2020 and followed the one-step method in evaluating potential goodwill impairment for the first quarter of fiscal 2020, refer to Note 6, Goodwill and Intangible Assets. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), and issued certain amendments within ASU 2019-04, ASU 2019-05 and ASU 2019-11, respectively. The guidance replaced the incurred loss impairment model and applies a new model, current expected credit losses (“CECL”), that requires entities to estimate expected credit losses measured over the contractual life of an instrument that consider supportable forecasts of future economic conditions in addition to information about past events and current conditions. An entity is required to measure and record an allowance for credit loss upon initial recognition of a financial asset, and present in-scope assets at amortized cost net of the amount expected to be collected. Under legacy GAAP, the Company recognized credit losses on trade receivables when it was probable that a loss has been incurred.

The Company adopted the CECL standard as of January 1, 2020 through a cumulative effect adjustment of $0.7 million, net of tax, to the opening balance of Accumulated deficit. The adjustment increased Accumulated deficit and increased the Allowance for credit loss accounts. Subsequent impacts to the Allowance for credit loss have been recorded through the Credit loss expense account included within Selling, general and administrative expenses in our condensed consolidated statements of operations and as an Allowance for credit loss on our condensed consolidated balance sheet. See Note 4. Accounts Receivable, Net for additional information.

Accounting Standards Not Yet Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes specific exceptions to the general principles in Topic 740 in U.S. GAAP including the exception to the incremental approach for intra-period tax allocation, exceptions to accounting for basis differences when there are ownership changes in foreign investments, and the exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also simplifies current guidance in relation to franchise taxes that are partially based on income, transactions with a government that result in a step-up in tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The impact of the implementation of this standard is still being determined by the Company.

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. It provides optional expedients and exceptions for applying GAAP to contract modifications, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is in effect for a limited time through December 31, 2022, to help stakeholders during the global market-wide reference rate transition period. The impact of the implementation of this standard is still being determined by the Company.

Acquisition

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisition

3.	Acquisition

Pagatelia Acquisition

On October 31, 2019, the Company completed the acquisition of all of the outstanding shares of Pagatelia S.L., (“Pagatelia”), a Spanish limited liability company that provides electronic consumer tolling and parking solutions in Spain, Portugal, France and Italy. The purchase consideration for Pagatelia was $26.6 million. Transaction costs were not material.

The allocation of the preliminary purchase consideration is summarized as follows:

($ in thousands)
Assets acquired
Cash	$	1,086
Other assets		5,047
Trademark		771
Customer relationships		5,946
Developed technology		4,624
Non-compete agreements		440
Goodwill		17,528
Total assets acquired		35,442

Liabilities assumed
Accounts payable and accrued expenses		6,045
Deferred tax liability		2,801
Total liabilities assumed		8,846
Total purchase price	$	26,596

Goodwill arising from Pagatelia was assigned to the Company’s Commercial Services segment and consists largely of the expected cash flows and future growth anticipated for the Company. The goodwill is not expected to be deductible for tax purposes. The customer relationships value was based on an excess earnings methodology utilizing projected cash flows. The trademark and the developed technology values were based on a relief-from-royalty method. The non-compete agreement values were based on the with-or-without method. The trademark, customer relationships, developed technology and non-compete agreements were assigned useful lives of 8.5 years, 9.5 years, 6.5 years and 3 years, respectively.

The Company did not provide pro forma financial information for Pagatelia as it was not material.

Accounts Receivable, Net

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Accounts Receivable, Net

4.	Accounts Receivable, Net

Accounts receivable are uncollateralized customer obligations due from the sale of products or services. Accounts receivable have normal trade terms less than one year and are initially stated at the amounts billed to the customers. Accounts receivable are subsequently measured at amortized cost net of allowance for credit loss. As part of its analysis for implementation of the CECL standard, the Company reviewed historical loss rates, customer payment trends and collection rates on customer balances. Estimated loss rates were developed using historical credit loss experience, which were adjusted based on a range of likelihood increases to reflect management’s expectations of current and future conditions as of the balance sheet date. Receivables are written off against the allowance for credit loss when it is probable that amounts will not be collected based on terms of the customer contracts, and subsequent recoveries will be credited to earnings in the period recovered. The Company will periodically evaluate the adequacy of its allowance for expected credit loss by comparing its actual historical write-offs to its previously recorded estimates.

The Company identified portfolio segments based on type of business, industry in which the customer operates and historical credit loss patterns. The following presents by portfolio segment Accounts receivable, net and the activity in the Allowance for credit loss for the three months ended March 31, 2020:

($ in thousands)	Commercial Services (Driver-billed) ⁽¹⁾			Commercial Services (All other)			Government Solutions			Total
Accounts Receivable, Net at January 1, 2020 ⁽²⁾	$	9,793		$	51,158		$	31,744		$	92,695

Allowance for credit loss at January 1, 2020 ⁽²⁾	$	5,733		$	945		$	1,778		$	8,456
Credit loss expense		1,925			2,731			700			5,356
Write-offs, net of recoveries		(2,220	)		(311	)		(435	)		(2,966	)
Allowance for credit loss at March 31, 2020	$	5,438		$	3,365		$	2,043		$	10,846

Accounts Receivable, Net at March 31, 2020	$	9,430		$	50,898		$	49,511		$	109,839

⁽¹⁾

^{Driver-billed consists of receivables from drivers of rental cars and fleet management companies for which the Company bills on behalf of its customers.}

⁽²⁾

^{This includes a $0.8 million increase to Allowance for credit loss as a result of adopting the CECL standard.}

Concentration of Credit Risk

Significant customers are those which represent more than 10% of the Company’s total revenue. Revenue from one of the Government Solutions customers, the City of New York Department of Transportation, accounted for 25.5% of total revenue for the three months ended March 31, 2020, as a result of increased product revenue. This customer did not meet the revenue criteria for the three months ended March 31, 2019.

Revenue generated through one of the Company’s Commercial Services partners, the Hertz Corporation, accounted for 15.7% and 18.4% of total revenue for the three months ended March 31, 2020 and 2019, respectively. Additionally, revenue generated through two of the Company’s Commercial Services partners, Avis Budget Group, Inc. and Enterprise Holdings, Inc., accounted for 12.7% and 10.8%, respectively, of total revenue for the three months ended March 31, 2020. Enterprise Holdings, Inc., accounted for 14.0% for the three months ended March 31, 2019. Avis Budget Group, Inc. did not meet the revenue criteria above for the 2019 period.

Prepaid Expenses and Other Current Assets

3 Months Ended

Mar. 31, 2020

Prepaid Expense And Other Assets Current [Abstract]

Prepaid Expenses and Other Current Assets

5.	Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following at:

($ in thousands)	March 31, 2020		December 31, 2019
Prepaid tolls	$	11,002	$	10,116
Prepaid services		5,327		5,201
Deposits		3,510		3,642
Prepaid computer maintenance		2,715		2,923
Prepaid insurance		1,033		1,485
Photo enforcement equipment held for sale		416		1,410
Prepaid income taxes		162		1,025
Other		451		689
Total prepaid expenses and other current assets	$	24,616	$	26,491

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6.	Goodwill and Intangible Assets

The following table presents the changes in the carrying amount of goodwill by reportable segment:

	Commercial			Government
($ in thousands)	Services			Solutions		Total
Balance at December 31, 2019	$	424,404		$	159,746	$	584,150
Foreign currency translation adjustment		(2,420	)		—		(2,420	)
Balance at March 31, 2020	$	421,984		$	159,746	$	581,730

Intangible assets consist of the following as of the respective period-ends:

	March 31, 2020						December 31, 2019
	Weighted						Weighted
	Average	Gross					Average	Gross
	Remaining	Carrying			Accumulated		Remaining	Carrying			Accumulated
($ in thousands)	Useful Life	Amount			Amortization		Useful Life	Amount			Amortization
Trademarks	1.2 years	$	32,071		$	21,651	1.5 years	$	32,127		$	19,106
Non-compete agreements	2.8 years		62,553			27,977	3.0 years		62,549			24,834
Customer relationships	6.6 years		365,463			92,951	6.9 years		366,533			82,903
Developed technology	3.1 years		165,525			73,076	3.3 years		165,708			65,631
Gross carrying value of intangible assets			625,612		$	215,655			626,917		$	192,474
Less: accumulated amortization			(215,655	)					(192,474	)
Intangible assets, net		$	409,957					$	434,443

The amortization expense was $23.5 million and $23.1 million for the three months ended March 31, 2020 and 2019, respectively.

Estimated amortization expense in future years is expected to be:

($ in thousands)
Remainder of 2020	$	70,276
2021		85,416
2022		80,686
2023		52,171
2024		41,684
Thereafter		79,724
Total	$	409,957

Interim Goodwill Impairment Review

During the fourth quarter of each fiscal year, in conjunction with the Company’s annual strategic planning process, we perform our annual goodwill impairment test for each of our reporting units. Our reporting units are the same as our two reportable segments (Government Solutions and Commercial Services). We also test goodwill for impairment whenever events or circumstances occur which, in our judgment, could more likely than not reduce the fair value of one or more reporting units below its carrying amount. Potential impairment indicators include, but are not limited to, (i) a deterioration of the business environments in which we operate, (ii) downward revisions to internal forecasts, and the magnitude thereof, if any, and (iii) declines in our market capitalization below our book value, and the magnitude and duration of those declines, if any.

During the first quarter of 2020, our market capitalization declined significantly compared to December 31, 2019. Over the same period, the equity value of our key Commercial Services’ customers, our peer group companies and the overall U.S. stock market also declined significantly amid market volatility. These declines were driven by the uncertainty surrounding the outbreak of the novel coronavirus (“COVID-19”) and other macroeconomic events. Based on these factors, we concluded that a triggering event occurred and, accordingly, an interim quantitative impairment test was performed as of March 31, 2020.

Based upon the results of our interim impairment test, we concluded that the fair values of the Government Solutions and Commercial Services reporting units exceeded their carrying value. The current economic conditions due to COVID-19 are still evolving and any significant adverse changes in future periods to our internal forecasts or the external market conditions, if any, could reasonably be expected to negatively affect our key assumptions and may result in a future goodwill impairment charge, which could be material.

Accrued Liabilities

3 Months Ended

Mar. 31, 2020

Payables And Accruals [Abstract]

Accrued Liabilities

7.	Accrued Liabilities

Accrued liabilities consist of the following at:

($ in thousands)	March 31, 2020		December 31, 2019
Accrued salaries and wages	$	5,282	$	10,319
Current portion of related party TRA liability		4,636		5,730
Current portion of operating lease liabilities		2,987		2,970
Advanced deposits payable		2,322		2,875
Income taxes payable		4,675		348
Restricted cash due to customers		1,510		917
Accrued sales commissions		551		612
Accrued interest payable		176		210
Other		1,562		1,296
Total accrued liabilities	$	23,701	$	25,277

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

The following table provides a summary of the Company’s long-term debt at:

($ in thousands)	March 31, 2020			December 31, 2019
First Lien Term Loan, due February 28, 2025	$	872,470		$	894,421
Less: original issue discounts		(4,648	)		(4,778	)
Less: unamortized deferred financing costs		(23,211	)		(23,178	)
Total debt		844,611			866,465
Less: current portion of long-term debt		(9,104	)		(28,779	)
Total long-term debt, net of current portion	$	835,507		$	837,686

In connection with an acquisition in 2018, VM Consolidated, Inc. (formerly known as ATS Consolidated, Inc.), a wholly-owned subsidiary of the Company, entered into a First Lien Term Loan Credit Agreement (the “First Lien Term Loan”), a Second Lien Term Loan Credit Agreement (the “Second Lien Term Loan”), (collectively the “Term Loans”) and a Revolving Credit Facility Agreement (the “Revolver”) with a syndicate of lenders (collectively, the “2018 Credit Facilities”). The 2018 Credit Facilities initially provided for committed senior secured financing of $1.115 billion, consisting of the Term Loans in an aggregate principal amount of $1.04 billion and the Revolver available for loans and letters of credit with an aggregate revolving commitment of up to $75 million (subject to borrowing eligibility requirements as described below). In July 2018, the Company amended the First Lien Term Loan to expand the aggregate principal loan amount from $840 million to $910 million. The additional $70 million along with funds contributed by Platinum Equity, LLC were used to repay the $200 million Second Lien Term Loan in full contemporaneously with the close of the Business Combination on October 17, 2018.

The First Lien Term Loan is repayable at 1.0% per annum of the amount initially borrowed, paid in quarterly installments. The First Lien Term Loan matures on February 28, 2025. The Company refinanced the entire outstanding amount under the First Lien Term Loan on February 20, 2020 which reduced the previous applicable margin by 50 basis points. The First Lien Term Loan now bears interest based, at our option, on either (1) LIBOR plus an applicable margin of 3.25% per annum, or (2) an alternate base rate plus an applicable margin of 2.25% per annum. As of March 31, 2020, the interest rate on the First Lien Term Loan was 4.24%.

In addition, the First Lien Term Loan requires mandatory prepayments equal to the product of the excess cash flows of the Company (as defined in the loan agreement) and the applicable prepayment percentages (calculated as of the last day of the fiscal year, beginning with the year ending December 31, 2019), as set forth in the following table:

Consolidated first lien net leverage ratio (as defined by the First Lien Term Loan agreement)		Applicable prepayment percentage
> 3.70:1.00		50%
< 3.70:1.00 and > 3.20:1.00		25%
< 3.20:1.00		0%

The Company made a $19.7 million mandatory prepayment of excess cash flow during the first quarter of fiscal 2020.

The Revolver matures on February 28, 2023. The terms of the Revolver were not affected by the refinancing of the First Lien Term Loan discussed above. Borrowing eligibility under the Revolver is subject to a monthly borrowing base calculation based on (i) certain percentages of eligible accounts receivable and inventory, less (ii) certain reserve items, including outstanding letters of credit and other reserves. The Revolver bears interest on either (1) LIBOR plus an applicable margin, or (2) an alternate base rate, plus an applicable margin. The margin percentage applied to (1) LIBOR is either 1.25%, 1.50%, or 1.75%, or (2) the base rate is either 0.25%, 0.50%, or 0.75%, depending on the Company’s average availability to borrow under the commitment. At March 31, 2020, the Company had no outstanding borrowings on the Revolver and availability to borrow under the Revolver was $68.8 million, net of $6.2 million of outstanding letters of credit.

Interest on the unused portion of the Revolver is payable quarterly at 0.375%, and the Company is also required to pay participation and fronting fees at 1.38% on $6.2 million in outstanding letters of credit as of March 31, 2020.

All borrowings and other extensions of credits under the 2018 Credit Facilities are subject to the satisfaction of customary conditions and restrictive covenants including absence of defaults and accuracy in material respects of representations and warranties. At March 31, 2020, the Company was compliant with the 2018 Credit Facilities covenants. Substantially all of the Company’s assets are pledged as collateral to secure the Company’s indebtedness under the 2018 Credit Facilities.

The Company recorded interest expense, including amortization of deferred financing costs and discounts, of $12.5 million and $16.0 million for the three months ended March 31, 2020 and March 31, 2019, respectively. In connection with the refinancing of the First Lien Term Loan in February 2020, which the Company determined was to be accounted for as a modification, the Company incurred $0.8 million of lender fees which were capitalized as deferred financing costs and amortized over the remaining life of the First Lien Term Loan, and $0.2 million of legal fees that were expensed as Selling, general and administrative expenses on the condensed consolidated statement of operations.

The weighted average effective interest rates on the Company’s outstanding borrowing under the 2018 Credit Facilities were 4.24% and 5.5% at March 31, 2020 and December 31, 2019, respectively.

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

9.	Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurement, includes a single definition of fair value to be used for financial reporting purposes, provides a framework for applying this definition and for measuring fair value under U.S. GAAP, and establishes a fair value hierarchy that categorizes into three levels the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are summarized as follows:

Level 1 – Fair value is based on observable inputs such as quoted prices for identical assets or liabilities in active markets.

Level 2 – Fair value is determined using quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or inputs other than quoted prices that are directly or indirectly observable.

Level 3 – Fair value is determined using one or more significant inputs that are unobservable in active markets at the measurement date, such as a pricing model, discounted cash flow, or similar technique.

The carrying amounts reported in the Company’s condensed consolidated balance sheets for cash, accounts receivable, accounts payable and accrued expenses approximate fair value due to the immediate to short-term maturity of these financial instruments. The estimated fair value of the Company’s First Lien Term Loan as of March 31, 2020 and December 31, 2019 was categorized in Level 2 of the fair value hierarchy and was calculated based upon available market information. The carrying value and fair value of debt is as follows:

Level in

March 31, 2020

December 31, 2019

Fair Value

Carrying

Estimated

Carrying

Estimated

($ in thousands)

Hierarchy

Amount

Fair Value

Amount

Fair Value

Total debt

844,611

811,397

866,465

905,601

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Net Income Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Net Income Per Share

10.	Net Income Per Share

Basic net income per share is calculated by dividing net income by the weighted average shares outstanding during the period, without consideration of common stock equivalents. Diluted net income per share is calculated by adjusting the weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury-stock method.

The components of basic and diluted net income per share are as follows:

	Three Months Ended March 31,
(In thousands, except per share data)	2020		2019
Numerator:
Net income	$	6,673	$	2,820
Denominator:
Weighted average shares - basic		160,924		156,057
Common stock equivalents		3,503		401
Weighted average shares - diluted		164,427		156,458
Net income per share - basic	$	0.04	$	0.02
Net income per share - diluted	$	0.04	$	0.02
Antidilutive weighted average shares excluded from diluted net income per share:
Contingently issuable shares ⁽¹⁾		5,742		10,000
Warrants		—		20,000
Non-qualified stock options		209		—
Performance share units		35		—
Restricted stock units		28		86
Total antidilutive shares excluded		6,014		30,086

⁽¹⁾

^{Contingently issuable shares relate to the earn-out agreement as discussed in Note 13, Related Party Transactions.}

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

11.	Income Taxes

Our interim income tax provision is determined using an estimated annual effective tax rate, adjusted for discrete items arising in that period. The estimated annual effective tax rate requires judgment and is dependent upon several factors. We provide for income taxes under the liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the financial statements.

We provide a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefit. We calculate the valuation allowance in accordance with the authoritative guidance relating to income taxes, which requires an assessment of both positive and negative evidence regarding the realizability of these deferred tax assets, when measuring the need for a valuation allowance. Significant judgment is required in determining any valuation allowance against deferred tax assets.

In December 2019, novel coronavirus (“COVID-19”) emerged in China and has since spread throughout the world causing severe disruption to the global economy. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. There were several income tax provisions and other non-tax matters incorporated into law as a result of the enactment of the CARES Act. The Company applied certain articles of the CARES Act in the interim income tax provision, including the increased interest deduction allowed up to 50 percent of adjusted taxable income for tax years 2019 and 2020. In addition, the Company delayed the employer-side of the FICA payments until 2021. The Company will continue to assess other aspects of the CARES Act and will account for accordingly, if applicable.

Our effective income tax rate was 32.5% and 31.9% for the three months ended March 31, 2020 and 2019, respectively. The effective tax rate change was primarily due to an increase in certain permanent differences, including the limitation on the deductibility of executive compensation imposed by section 162(m) of the Internal Revenue Code, as amended, applied to an overall lower gross income.

The total amount of unrecognized tax benefits decreased by $0.9 million during the quarter primarily from the statute expiration of prior year tax positions. As of March 31, 2020, the total amount of unrecognized tax benefits was $0.8 million, of which $0.7 million would affect our effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits through income tax expense. As of March 31, 2020, we had less than $0.1 million accrued for the payment of interest and penalties.

The Company is subject to examination by the Internal Revenue Service and taxing authorities in various states. The Company’s U.S. federal income tax returns remain subject to examination by tax authorities for the years 2016 to 2019. The Company’s state income tax returns are under examination by certain states for tax years 2015 to 2017, and other state income tax returns are subject to examination for tax years 2014 to 2019. Tax returns for years prior to 2014 remain open in a number of states due to tax attributes generated but not utilized yet. The Company regularly assesses the likelihood of additional tax deficiencies in each of the tax jurisdictions and, accordingly, makes appropriate adjustments to the tax provision as deemed necessary.

Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

12.	Stock-Based Compensation

The following details the components of stock-based compensation for the periods presented:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Operating expenses	$	220	$	204
Selling, general and administrative expenses		2,548		1,939
Total stock-based compensation expense	$	2,768	$	2,143

Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions

13.	Related Party Transactions

Tax Receivable Agreement

At the closing of the Business Combination, the Company entered into a tax receivable agreement (“TRA”) with PE Greenlight Holdings, LLC (the “Platinum Stockholder”) and Greenlight Holding II Corporation as the stockholder representative. The TRA generally provides for the payment by the post-closing company to the Platinum Stockholder of 50% of the net cash savings, if any, in U.S. federal, state and local income tax that the post-closing company actually realizes (or is deemed to realize in certain circumstances) in periods after the closing of the Business Combination as a result of the increase in the tax basis of the intangible assets which resulted from an acquisition by the Company prior to the Business Combination. The post-closing company generally will retain the benefit of the remaining 50% of these cash savings. The Company estimated the potential maximum benefit to be paid will be approximately $70.0 million, and recorded an initial liability and corresponding charge to equity at the closing of the Business Combination. Subsequently, the Company adjusted this amount. At March 31, 2020, the TRA was approximately $65.8 million of which $4.6 million was the current portion included in Accrued liabilities and $61.2 million included in Payable related to tax receivable agreement on the condensed consolidated balance sheets.

Earn-Out Agreement

Under the Merger Agreement, the Platinum Stockholder is entitled to receive additional shares of Class A Common Stock (the “Earn-Out Shares”) if the volume weighted average closing sale price of one share of Class A Common Stock on the Nasdaq exceeds certain thresholds for a period of at least 10 days out of 20 consecutive trading days at any time during the five-year period following the closing of the Business Combination (the “Common Stock Price”).

The Earn-Out Shares are issued by the Company to the Platinum Stockholder as follows:

Common Stock Price thresholds	One-time issuance of shares
> $13.00 ^(a)		2,500,000
> $15.50 ^(a)		2,500,000
> $18.00		2,500,000
> $20.50		2,500,000

^(a)

^{The first and second tranches of Earn-Out Shares have been issued, as discussed below.}

If any of the Common Stock Price thresholds above (each, a “Triggering Event”) are not achieved within the five-year period following the closing of the Business Combination, the Company will not be required to issue the Earn-Out Shares in respect of such Common Stock Price threshold. In no event shall the Platinum Stockholder be entitled to receive more than an aggregate of 10,000,000 Earn-Out Shares.

If, during the earn-out period, there is a change of control (as defined in the Merger Agreement) that will result in the holders of Greenlight Acquisition Corporation (“Parent”) Class A Common Stock receiving a per share price equal to or in excess of the applicable Common Stock Price required in connection with any Triggering Event (an “Acceleration Event”), then immediately prior to the consummation of such change of control: (a) any such Triggering Event that has not previously occurred shall be deemed to have occurred; and (b) Parent shall issue the applicable Earn-Out Shares to the cash consideration stockholders (as defined in the Merger Agreement) (in accordance with their respective pro rata cash share), and the recipients of the issued Earn-Out Shares shall be eligible to participate in such change of control.

The Company estimated the original fair value of the contingently issuable shares to be $73.15 million, of which $36.6 million remains contingently issuable as of March 31, 2020. The estimated value is not subject to future revisions during the five-year period discussed above. The Company used a Monte Carlo simulation option-pricing model to arrive at its original estimate. Each tranche was valued separately giving specific consideration to the tranche’s price target. The simulation considered volatility and risk free rates utilizing a peer group based on a five year term. This was initially recorded as a distribution to shareholders and was presented as Common stock contingent consideration. Upon the occurrence of a Triggering Event, any issuable shares would be transferred from Common stock contingent consideration to Common stock and Additional paid-in capital accounts. Any contingently issuable shares not issued as a result of a Triggering Event not being attained by the end of earn-out period will be cancelled.

On April 26, 2019 and on January 27, 2020, the Triggering Events for the issuance of the first and second tranches of Earn-Out Shares occurred, as the volume weighted average closing sale price per share of the Company’s Class A Common Stock as of that date had been greater than $13.00 and $15.50, respectively, for 10 out of 20 consecutive trading days. These Triggering Events resulted in the issuance of an aggregate 5,000,000 shares of the Company’s Class A Common Stock to the Platinum Stockholder and an increase in the Company’s Common stock and Additional paid-in capital accounts of $36.6 million, with a corresponding decrease to the Common stock contingent consideration account.

Commitment and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

14.	Commitments and Contingencies

The Company has issued various letters of credit under contractual arrangements with certain of its vendors and customers. Outstanding letters of credit under these arrangements totaled $6.2 million at March 31, 2020.

The Company has non-cancelable purchase commitments to certain vendors. The aggregate non-cancelable purchase commitments outstanding at March 31, 2020 were $27.4 million.

The Company is subject to tax audits in the normal course of business and does not have material contingencies recorded related to such audits.

Legal Proceedings

The Company is subject to legal and regulatory actions that arise from time to time in the ordinary course of business. The Company records a liability when it believes it is probable a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. The assessment as to whether a loss is probable, reasonably possible or remote, and as to whether a loss or a range of such loss is estimable, often involves significant judgment about future events. The Company has determined that resolution of pending matters is not probable to have a material adverse impact on its condensed consolidated results of operations, cash flows, or financial position, and accordingly, no material contingency accruals are recorded. However, the outcome of litigation is inherently uncertain. As additional information becomes available, the Company reassesses the potential liability.

Segment Reporting

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

15.	Segment Reporting

The Company has two operating and reportable segments, Commercial Services and Government Solutions. Commercial Services offers toll and violation management solutions and title and registration services to commercial fleet vehicle owners, rental car companies and violation issuing authorities. Government Solutions implements and administers traffic safety programs and products for municipalities and local government agencies of all sizes. The Company’s Chief Operating Decision Maker function (“CODM”) is comprised of the Company’s CEO and certain defined representatives of the Company’s executive management team. The Company’s CODM monitors operating performance, allocates resources and deploys capital based on these two segments.

Segment performance is based on revenues and income from operations before depreciation, amortization, gain (loss) on disposal of assets, net, and stock-based compensation. The measure also excludes interest expense, net, income taxes and is inclusive of other income, net. The tables below refer to this measure as Segment profit (loss). The aforementioned items are not indicative of operating performance, and, as a result are not included in the measures that are reviewed by the CODM for the segments. Other income, net consists primarily of credit card rebates earned on the prepayment of tolling violations and is therefore included in Segment profit (loss). There are no significant non-cash items reported in Segment profit (loss).

The following tables set forth financial information by segment for the three months ended March 31, 2020 and March 31, 2019, respectively:

	For the Three Months Ended March 31, 2020
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	61,242		$	38,255		$	—		$	99,497
Product sales		—			17,216			—			17,216
Total revenue		61,242			55,471			—			116,713
Cost of service revenue		807			412			—			1,219
Cost of product sales		—			8,690			—			8,690
Operating expenses		16,530			15,509			—			32,039
Selling, general and administrative expenses		13,384			9,669			285			23,338
Other income, net		(2,889	)		(36	)		—			(2,925	)
Segment profit (loss)	$	33,410		$	21,227		$	(285	)	$	54,352
Segment profit (loss)	$	33,410		$	21,227		$	(285	)	$	54,352
Depreciation and amortization		—			—			29,250			29,250
Gain on disposal of assets, net		—			(4	)		—			(4	)
Stock-based compensation		—			—			2,768			2,768
Interest expense, net		—			—			12,451			12,451
Income (loss) before income tax provision	$	33,410		$	21,231		$	(44,754	)	$	9,887

	For the Three Months Ended March 31, 2019
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	62,588		$	35,482		$	—		$	98,070
Product sales		—			391			—			391
Total revenue		62,588			35,873			—			98,461
Cost of service revenue		864			525			—			1,389
Cost of product sales		—			276			—			276
Operating expenses		15,096			14,038			—			29,134
Selling, general and administrative expenses		10,762			7,850			—			18,612
Other income, net		(2,171	)		(37	)		1			(2,207	)
Segment profit (loss)	$	38,037		$	13,221		$	(1	)	$	51,257
Segment profit (loss)	$	38,037		$	13,221		$	(1	)	$	51,257
Depreciation and amortization		—			—			28,939			28,939
Loss on disposal of assets, net		—			—			2			2
Stock-based compensation		—			—			2,143			2,143
Interest expense, net		—			—			16,033			16,033
Income (loss) before income tax provision	$	38,037		$	13,221		$	(47,118	)	$	4,140

Guarantor/Non-Guarantor Financial Information

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Guarantor/Non-Guarantor Financial Information

16.	Guarantor/Non-Guarantor Financial Information

VM Consolidated, Inc., a wholly-owned subsidiary of the Company, is the lead borrower of the First Lien Term Loan and the Revolver. VM Consolidated, Inc. is owned by the Company through a series of holding companies that ultimately end with the Company. VM Consolidated, Inc. is wholly-owned by Greenlight Acquisition Corporation, which is wholly-owned by Greenlight Intermediate Holding Corporation, which is wholly-owned by Greenlight Holding Corporation, which is wholly-owned by Verra Mobility Holdings, LLC, which is wholly-owned by Verra Mobility Corporation or the Company. Prior to the Business Combination, VM Consolidated, Inc. was known as ATS Consolidated, Inc. and its financial information was the same as the lead borrower. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with the Company’s wholly-owned subsidiary guarantors and non-guarantor subsidiaries.

The following financial information presents the Condensed Consolidated Balance Sheets as of March 31, 2020 and the related Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 for the Company, combined guarantor subsidiaries and combined non-guarantor subsidiaries.

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

at March 31, 2020

(Unaudited)

($ in thousands)	Verra Mobility Corporation (Ultimate Parent)		VM Consolidated Inc. (Guarantor Subsidiary)		Non- guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	96,623	$	16,960	$	—		$	113,583
Restricted cash		—		1,510		—		—			1,510
Accounts receivable (net of allowance for credit loss of $10.8 million )		—		105,799		4,040		—			109,839
Unbilled receivables		—		16,071		287		—			16,358
Investment in subsidiary		175,141		75,098		—		(250,239	)		—
Prepaid expenses and other current assets		—		22,116		2,500		—			24,616
Total current assets		175,141		317,217		23,787		(250,239	)		265,906
Installation and service parts, net		—		8,022		—		—			8,022
Property and equipment, net		—		70,588		3,043		—			73,631
Operating lease assets		—		31,387		402		—			31,789
Intangible assets, net		—		382,654		27,303		—			409,957
Goodwill		—		524,767		56,963		—			581,730
Due from affiliates		169,259				—		(169,259	)		—
Other non-current assets		—		3,080		14		—			3,094
Total assets	$	344,400	$	1,337,715	$	111,512	$	(419,498	)	$	1,374,129
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	26,071	$	13,127	$	—		$	39,198
Accrued liabilities		—		20,580		3,121		—			23,701
Current portion of long-term debt		—		9,104		—		—			9,104
Total current liabilities		—		55,755		16,248		—			72,003
Long-term debt, net of current portion and deferred financing costs		—		835,507		—		—			835,507
Operating lease liabilities, net of current portion		—		29,712		205		—			29,917
Payable to related party pursuant to tax receivable agreement		—		61,174		—		—			61,174
Due to affiliates		—		154,091		15,168		(169,259	)		—
Asset retirement obligation		—		6,387		—		—			6,387
Deferred tax liabilities, net		—		19,679		4,793		—			24,472
Other long-term liabilities		—		269		—		—			269
Total liabilities		—		1,162,574		36,414		(169,259	)		1,029,729
Total stockholders' equity		344,400		175,141		75,098		(250,239	)		344,400
Total liabilities and stockholders' equity	$	344,400	$	1,337,715	$	111,512	$	(419,498	)	$	1,374,129

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2020

(Unaudited)


($ in thousands)	Verra Mobility Corporation (Ultimate Parent)			VM Consolidated Inc. (Guarantor Subsidiary)			Non- guarantor Subsidiaries			Eliminations			Consolidated
Service revenue	$	—		$	95,650		$	3,847		$	—		$	99,497
Product sales		—			17,216			—			—			17,216
Total revenue		—			112,866			3,847			—			116,713
Cost of service revenue		—			667			552			—			1,219
Cost of product sales		—			8,690			—			—			8,690
Operating expenses		—			30,578			1,681			—			32,259
Selling, general and administrative expenses		—			23,976			1,910			—			25,886
Depreciation, amortization and (gain) loss on disposal of assets, net		—			27,995			1,251			—			29,246
Total costs and expenses		—			91,906			5,394			—			97,300
Income (loss) from operations		—			20,960			(1,547	)		—			19,413
(Income) loss from equity investment		(6,673	)		1,307			—			5,366			—
Interest expense, net		—			12,462			(11	)		—			12,451
Other income, net		—			(2,887	)		(38	)		—			(2,925	)
Total other (income) expenses		(6,673	)		10,882			(49	)		5,366			9,526
Income before income tax provision (benefit)		6,673			10,078			(1,498	)		(5,366	)		9,887
Income tax provision (benefit)		—			3,405			(191	)		—			3,214
Net income (loss)	$	6,673		$	6,673		$	(1,307	)	$	(5,366	)	$	6,673
Other comprehensive loss:
Change in foreign currency translation adjustment		—			(3,367	)		—			—			(3,367	)
Total comprehensive income (loss)	$	6,673		$	3,306		$	(1,307	)	$	(5,366	)	$	3,306

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31, 2020

(Unaudited)

($ in thousands)	Verra Mobility Corporation (Ultimate Parent)			VM Consolidated Inc. (Guarantor Subsidiary)			Non- guarantor Subsidiaries			Eliminations			Consolidated
Cash Flows from Operating Activities:
Net income (loss)	$	6,673		$	6,673		$	(1,307	)	$	(5,366	)	$	6,673
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		—			27,999			1,251			—			29,250
Amortization of deferred financing costs and discounts		—			903			—			—			903
Credit loss expense		—			5,356			—			—			5,356
Deferred income taxes		—			(94	)		(588	)		—			(682	)
Stock-based compensation		—			2,768			—			—			2,768
Installation and service parts expense		—			393			—			—			393
Accretion expense		—			64			—			—			64
Gain on disposal of assets		—			(4	)		—			—			(4	)
(Income) loss from equity investment		(6,673	)		1,307			—			5,366			—
Changes in operating assets and liabilities:
Accounts receivable, net		—			(23,028	)		631			—			(22,397	)
Unbilled receivables		—			3,246			402			—			3,648
Prepaid expenses and other current assets		—			2,628			(261	)		—			2,367
Accounts payable and accrued liabilities		—			(10,444	)		(919	)		—			(11,363	)
Due to affiliates		—			(1,341	)		1,341			—			—
Other liabilities		—			(2,135	)		—			—			(2,135	)
Net cash provided by operating activities		—			14,291			550			—			14,841
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment		—			(7,370	)		(771	)		—			(8,141	)
Cash proceeds from the sale of assets		—			10			—			—			10
Net cash used in investing activities		—			(7,360	)		(771	)		—			(8,131	)
Cash Flows from Financing Activities:
Repayment of long-term debt		—			(21,951	)		—			—			(21,951	)
Payment of debt issuance costs		—			(806	)		—			—			(806	)
Payment of employee tax withholding related to RSU vesting		—			(327	)		—			—			(327	)
Net cash used in financing activities		—			(23,084	)		—			—			(23,084	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(963	)		—			(963	)
Net decrease in cash, cash equivalents and restricted cash		—			(16,153	)		(1,184	)		—			(17,337	)
Cash, cash equivalents and restricted cash - beginning of period		—			114,286			18,144			—			132,430
Cash, cash equivalents and restricted cash - end of period	$	—		$	98,133		$	16,960		$	—		$	115,093

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

Three Months Ended March 31, 2020

(Unaudited)

	Verra Mobility Corporation (Ultimate Parent)		VM Consolidated Inc. (Guarantor Subsidiary)		Non- guarantor Subsidiaries		Eliminations		Consolidated
Supplemental cash flow information:
Interest paid	$	—	$	11,822	$	—	$	—	$	11,822
Income taxes paid, net		—		156		163		—		319
Supplemental non-cash investing and financing activities:
Earn-out shares issued to Platinum Stockholder		18,287		—		—		—		18,287
Additions to ARO, property and equipment, and other		—		22		—		—		22
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end		—		4,586		—		—		4,586

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.
Use of Estimates	Use of Estimates The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited interim condensed consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the fair values assigned to net assets acquired (including identifiable intangibles) in business combinations, the carrying amounts of long-lived assets and goodwill, the carrying amount of installation and service parts, the allowance for credit loss, valuation allowances on deferred tax assets, asset retirement obligations, contingent consideration and the recognition and measurement of loss contingencies. Management believes that its estimates and assumptions are reasonable in the circumstances; however, actual results could differ materially from those estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Adopted In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles—Goodwill and Other (Topic 350). ASU 2017-04 simplifies the accounting for goodwill impairment and removes Step 2 of the goodwill impairment test. Goodwill impairment is now the amount by which a reporting unit’s carrying value exceeds its fair value limited to the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The Company adopted the ASU as of January 1, 2020 and followed the one-step method in evaluating potential goodwill impairment for the first quarter of fiscal 2020, refer to Note 6, Goodwill and Intangible Assets. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), and issued certain amendments within ASU 2019-04, ASU 2019-05 and ASU 2019-11, respectively. The guidance replaced the incurred loss impairment model and applies a new model, current expected credit losses (“CECL”), that requires entities to estimate expected credit losses measured over the contractual life of an instrument that consider supportable forecasts of future economic conditions in addition to information about past events and current conditions. An entity is required to measure and record an allowance for credit loss upon initial recognition of a financial asset, and present in-scope assets at amortized cost net of the amount expected to be collected. Under legacy GAAP, the Company recognized credit losses on trade receivables when it was probable that a loss has been incurred. The Company adopted the CECL standard as of January 1, 2020 through a cumulative effect adjustment of $0.7 million, net of tax, to the opening balance of Accumulated deficit. The adjustment increased Accumulated deficit and increased the Allowance for credit loss accounts. Subsequent impacts to the Allowance for credit loss have been recorded through the Credit loss expense account included within Selling, general and administrative expenses in our condensed consolidated statements of operations and as an Allowance for credit loss on our condensed consolidated balance sheet. See Note 4. Accounts Receivable, Net for additional information. Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes specific exceptions to the general principles in Topic 740 in U.S. GAAP including the exception to the incremental approach for intra-period tax allocation, exceptions to accounting for basis differences when there are ownership changes in foreign investments, and the exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also simplifies current guidance in relation to franchise taxes that are partially based on income, transactions with a government that result in a step-up in tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The impact of the implementation of this standard is still being determined by the Company. On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. It provides optional expedients and exceptions for applying GAAP to contract modifications, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is in effect for a limited time through December 31, 2022, to help stakeholders during the global market-wide reference rate transition period. The impact of the implementation of this standard is still being determined by the Company.

Acquisition (Tables)

3 Months Ended

Mar. 31, 2020

Pagatelia S.L

Summary of Final Allocation of Purchase Consideration

The allocation of the preliminary purchase consideration is summarized as follows:

($ in thousands)
Assets acquired
Cash	$	1,086
Other assets		5,047
Trademark		771
Customer relationships		5,946
Developed technology		4,624
Non-compete agreements		440
Goodwill		17,528
Total assets acquired		35,442

Liabilities assumed
Accounts payable and accrued expenses		6,045
Deferred tax liability		2,801
Total liabilities assumed		8,846
Total purchase price	$	26,596

Accounts Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Summary of Accounts Receivable, Net and Activity in Allowance for Credit Loss by Portfolio Segment

The following presents by portfolio segment Accounts receivable, net and the activity in the Allowance for credit loss for the three months ended March 31, 2020:

($ in thousands)	Commercial Services (Driver-billed) ⁽¹⁾			Commercial Services (All other)			Government Solutions			Total
Accounts Receivable, Net at January 1, 2020 ⁽²⁾	$	9,793		$	51,158		$	31,744		$	92,695

Allowance for credit loss at January 1, 2020 ⁽²⁾	$	5,733		$	945		$	1,778		$	8,456
Credit loss expense		1,925			2,731			700			5,356
Write-offs, net of recoveries		(2,220	)		(311	)		(435	)		(2,966	)
Allowance for credit loss at March 31, 2020	$	5,438		$	3,365		$	2,043		$	10,846

Accounts Receivable, Net at March 31, 2020	$	9,430		$	50,898		$	49,511		$	109,839

⁽¹⁾

^{Driver-billed consists of receivables from drivers of rental cars and fleet management companies for which the Company bills on behalf of its customers.}

⁽²⁾

^{This includes a $0.8 million increase to Allowance for credit loss as a result of adopting the CECL standard.}

Prepaid Expenses and Other Current Assets (Tables)

3 Months Ended

Mar. 31, 2020

Prepaid Expense And Other Assets Current [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following at:

($ in thousands)	March 31, 2020		December 31, 2019
Prepaid tolls	$	11,002	$	10,116
Prepaid services		5,327		5,201
Deposits		3,510		3,642
Prepaid computer maintenance		2,715		2,923
Prepaid insurance		1,033		1,485
Photo enforcement equipment held for sale		416		1,410
Prepaid income taxes		162		1,025
Other		451		689
Total prepaid expenses and other current assets	$	24,616	$	26,491

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill by Reportable Segment

The following table presents the changes in the carrying amount of goodwill by reportable segment:

	Commercial			Government
($ in thousands)	Services			Solutions		Total
Balance at December 31, 2019	$	424,404		$	159,746	$	584,150
Foreign currency translation adjustment		(2,420	)		—		(2,420	)
Balance at March 31, 2020	$	421,984		$	159,746	$	581,730

Schedule of Intangible Assets of Respective Period Ends

Intangible assets consist of the following as of the respective period-ends:

	March 31, 2020						December 31, 2019
	Weighted						Weighted
	Average	Gross					Average	Gross
	Remaining	Carrying			Accumulated		Remaining	Carrying			Accumulated
($ in thousands)	Useful Life	Amount			Amortization		Useful Life	Amount			Amortization
Trademarks	1.2 years	$	32,071		$	21,651	1.5 years	$	32,127		$	19,106
Non-compete agreements	2.8 years		62,553			27,977	3.0 years		62,549			24,834
Customer relationships	6.6 years		365,463			92,951	6.9 years		366,533			82,903
Developed technology	3.1 years		165,525			73,076	3.3 years		165,708			65,631
Gross carrying value of intangible assets			625,612		$	215,655			626,917		$	192,474
Less: accumulated amortization			(215,655	)					(192,474	)
Intangible assets, net		$	409,957					$	434,443

Estimated Amortization Expense in Future Years

Estimated amortization expense in future years is expected to be:

($ in thousands)
Remainder of 2020	$	70,276
2021		85,416
2022		80,686
2023		52,171
2024		41,684
Thereafter		79,724
Total	$	409,957

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Payables And Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following at:

($ in thousands)	March 31, 2020		December 31, 2019
Accrued salaries and wages	$	5,282	$	10,319
Current portion of related party TRA liability		4,636		5,730
Current portion of operating lease liabilities		2,987		2,970
Advanced deposits payable		2,322		2,875
Income taxes payable		4,675		348
Restricted cash due to customers		1,510		917
Accrued sales commissions		551		612
Accrued interest payable		176		210
Other		1,562		1,296
Total accrued liabilities	$	23,701	$	25,277

Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Summary of the Company's Long-Term Debt

The following table provides a summary of the Company’s long-term debt at:

($ in thousands)	March 31, 2020			December 31, 2019
First Lien Term Loan, due February 28, 2025	$	872,470		$	894,421
Less: original issue discounts		(4,648	)		(4,778	)
Less: unamortized deferred financing costs		(23,211	)		(23,178	)
Total debt		844,611			866,465
Less: current portion of long-term debt		(9,104	)		(28,779	)
Total long-term debt, net of current portion	$	835,507		$	837,686

Schedule of Consolidated First Lien Net Leverage Ratio and Applicable Prepayment Percentage

Consolidated first lien net leverage ratio (as defined by the First Lien Term Loan agreement)		Applicable prepayment percentage
> 3.70:1.00		50%
< 3.70:1.00 and > 3.20:1.00		25%
< 3.20:1.00		0%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Carrying Value and Fair Value of Debt

The carrying value and fair value of debt is as follows:

Level in

March 31, 2020

December 31, 2019

Fair Value

Carrying

Estimated

Carrying

Estimated

($ in thousands)

Hierarchy

Amount

Fair Value

Amount

Fair Value

Total debt

844,611

811,397

866,465

905,601

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Components of Basic and Diluted Net Income Per Share

The components of basic and diluted net income per share are as follows:

	Three Months Ended March 31,
(In thousands, except per share data)	2020		2019
Numerator:
Net income	$	6,673	$	2,820
Denominator:
Weighted average shares - basic		160,924		156,057
Common stock equivalents		3,503		401
Weighted average shares - diluted		164,427		156,458
Net income per share - basic	$	0.04	$	0.02
Net income per share - diluted	$	0.04	$	0.02
Antidilutive weighted average shares excluded from diluted net income per share:
Contingently issuable shares ⁽¹⁾		5,742		10,000
Warrants		—		20,000
Non-qualified stock options		209		—
Performance share units		35		—
Restricted stock units		28		86
Total antidilutive shares excluded		6,014		30,086

⁽¹⁾

^{Contingently issuable shares relate to the earn-out agreement as discussed in Note 13, Related Party Transactions.}

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Components of Stock Based Compensation Expense

The following details the components of stock-based compensation for the periods presented:

	Three Months Ended March 31,
($ in thousands)	2020		2019
Operating expenses	$	220	$	204
Selling, general and administrative expenses		2,548		1,939
Total stock-based compensation expense	$	2,768	$	2,143

Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Earn Out Shares Issued by Company to Platinum Stockholder

The Earn-Out Shares are issued by the Company to the Platinum Stockholder as follows:

Common Stock Price thresholds	One-time issuance of shares
> $13.00 ^(a)		2,500,000
> $15.50 ^(a)		2,500,000
> $18.00		2,500,000
> $20.50		2,500,000

^(a)

^{The first and second tranches of Earn-Out Shares have been issued, as discussed below.}

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Financial Information by Segment

The following tables set forth financial information by segment for the three months ended March 31, 2020 and March 31, 2019, respectively:

	For the Three Months Ended March 31, 2020
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	61,242		$	38,255		$	—		$	99,497
Product sales		—			17,216			—			17,216
Total revenue		61,242			55,471			—			116,713
Cost of service revenue		807			412			—			1,219
Cost of product sales		—			8,690			—			8,690
Operating expenses		16,530			15,509			—			32,039
Selling, general and administrative expenses		13,384			9,669			285			23,338
Other income, net		(2,889	)		(36	)		—			(2,925	)
Segment profit (loss)	$	33,410		$	21,227		$	(285	)	$	54,352
Segment profit (loss)	$	33,410		$	21,227		$	(285	)	$	54,352
Depreciation and amortization		—			—			29,250			29,250
Gain on disposal of assets, net		—			(4	)		—			(4	)
Stock-based compensation		—			—			2,768			2,768
Interest expense, net		—			—			12,451			12,451
Income (loss) before income tax provision	$	33,410		$	21,231		$	(44,754	)	$	9,887

	For the Three Months Ended March 31, 2019
	Commercial			Government			Corporate
($ in thousands)	Services			Solutions			and Other			Total
Service revenue	$	62,588		$	35,482		$	—		$	98,070
Product sales		—			391			—			391
Total revenue		62,588			35,873			—			98,461
Cost of service revenue		864			525			—			1,389
Cost of product sales		—			276			—			276
Operating expenses		15,096			14,038			—			29,134
Selling, general and administrative expenses		10,762			7,850			—			18,612
Other income, net		(2,171	)		(37	)		1			(2,207	)
Segment profit (loss)	$	38,037		$	13,221		$	(1	)	$	51,257
Segment profit (loss)	$	38,037		$	13,221		$	(1	)	$	51,257
Depreciation and amortization		—			—			28,939			28,939
Loss on disposal of assets, net		—			—			2			2
Stock-based compensation		—			—			2,143			2,143
Interest expense, net		—			—			16,033			16,033
Income (loss) before income tax provision	$	38,037		$	13,221		$	(47,118	)	$	4,140

Guarantor/Non-Guarantor Financial Information (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Summary of Condensed Consolidated Balance Sheets

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

at March 31, 2020

(Unaudited)

($ in thousands)	Verra Mobility Corporation (Ultimate Parent)		VM Consolidated Inc. (Guarantor Subsidiary)		Non- guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	96,623	$	16,960	$	—		$	113,583
Restricted cash		—		1,510		—		—			1,510
Accounts receivable (net of allowance for credit loss of $10.8 million )		—		105,799		4,040		—			109,839
Unbilled receivables		—		16,071		287		—			16,358
Investment in subsidiary		175,141		75,098		—		(250,239	)		—
Prepaid expenses and other current assets		—		22,116		2,500		—			24,616
Total current assets		175,141		317,217		23,787		(250,239	)		265,906
Installation and service parts, net		—		8,022		—		—			8,022
Property and equipment, net		—		70,588		3,043		—			73,631
Operating lease assets		—		31,387		402		—			31,789
Intangible assets, net		—		382,654		27,303		—			409,957
Goodwill		—		524,767		56,963		—			581,730
Due from affiliates		169,259				—		(169,259	)		—
Other non-current assets		—		3,080		14		—			3,094
Total assets	$	344,400	$	1,337,715	$	111,512	$	(419,498	)	$	1,374,129
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	26,071	$	13,127	$	—		$	39,198
Accrued liabilities		—		20,580		3,121		—			23,701
Current portion of long-term debt		—		9,104		—		—			9,104
Total current liabilities		—		55,755		16,248		—			72,003
Long-term debt, net of current portion and deferred financing costs		—		835,507		—		—			835,507
Operating lease liabilities, net of current portion		—		29,712		205		—			29,917
Payable to related party pursuant to tax receivable agreement		—		61,174		—		—			61,174
Due to affiliates		—		154,091		15,168		(169,259	)		—
Asset retirement obligation		—		6,387		—		—			6,387
Deferred tax liabilities, net		—		19,679		4,793		—			24,472
Other long-term liabilities		—		269		—		—			269
Total liabilities		—		1,162,574		36,414		(169,259	)		1,029,729
Total stockholders' equity		344,400		175,141		75,098		(250,239	)		344,400
Total liabilities and stockholders' equity	$	344,400	$	1,337,715	$	111,512	$	(419,498	)	$	1,374,129

Summary of Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended March 31, 2020

(Unaudited)


($ in thousands)	Verra Mobility Corporation (Ultimate Parent)			VM Consolidated Inc. (Guarantor Subsidiary)			Non- guarantor Subsidiaries			Eliminations			Consolidated
Service revenue	$	—		$	95,650		$	3,847		$	—		$	99,497
Product sales		—			17,216			—			—			17,216
Total revenue		—			112,866			3,847			—			116,713
Cost of service revenue		—			667			552			—			1,219
Cost of product sales		—			8,690			—			—			8,690
Operating expenses		—			30,578			1,681			—			32,259
Selling, general and administrative expenses		—			23,976			1,910			—			25,886
Depreciation, amortization and (gain) loss on disposal of assets, net		—			27,995			1,251			—			29,246
Total costs and expenses		—			91,906			5,394			—			97,300
Income (loss) from operations		—			20,960			(1,547	)		—			19,413
(Income) loss from equity investment		(6,673	)		1,307			—			5,366			—
Interest expense, net		—			12,462			(11	)		—			12,451
Other income, net		—			(2,887	)		(38	)		—			(2,925	)
Total other (income) expenses		(6,673	)		10,882			(49	)		5,366			9,526
Income before income tax provision (benefit)		6,673			10,078			(1,498	)		(5,366	)		9,887
Income tax provision (benefit)		—			3,405			(191	)		—			3,214
Net income (loss)	$	6,673		$	6,673		$	(1,307	)	$	(5,366	)	$	6,673
Other comprehensive loss:
Change in foreign currency translation adjustment		—			(3,367	)		—			—			(3,367	)
Total comprehensive income (loss)	$	6,673		$	3,306		$	(1,307	)	$	(5,366	)	$	3,306

Summary of Condensed Consolidated Statements of Cash Flows

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31, 2020

(Unaudited)

($ in thousands)	Verra Mobility Corporation (Ultimate Parent)			VM Consolidated Inc. (Guarantor Subsidiary)			Non- guarantor Subsidiaries			Eliminations			Consolidated
Cash Flows from Operating Activities:
Net income (loss)	$	6,673		$	6,673		$	(1,307	)	$	(5,366	)	$	6,673
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		—			27,999			1,251			—			29,250
Amortization of deferred financing costs and discounts		—			903			—			—			903
Credit loss expense		—			5,356			—			—			5,356
Deferred income taxes		—			(94	)		(588	)		—			(682	)
Stock-based compensation		—			2,768			—			—			2,768
Installation and service parts expense		—			393			—			—			393
Accretion expense		—			64			—			—			64
Gain on disposal of assets		—			(4	)		—			—			(4	)
(Income) loss from equity investment		(6,673	)		1,307			—			5,366			—
Changes in operating assets and liabilities:
Accounts receivable, net		—			(23,028	)		631			—			(22,397	)
Unbilled receivables		—			3,246			402			—			3,648
Prepaid expenses and other current assets		—			2,628			(261	)		—			2,367
Accounts payable and accrued liabilities		—			(10,444	)		(919	)		—			(11,363	)
Due to affiliates		—			(1,341	)		1,341			—			—
Other liabilities		—			(2,135	)		—			—			(2,135	)
Net cash provided by operating activities		—			14,291			550			—			14,841
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment		—			(7,370	)		(771	)		—			(8,141	)
Cash proceeds from the sale of assets		—			10			—			—			10
Net cash used in investing activities		—			(7,360	)		(771	)		—			(8,131	)
Cash Flows from Financing Activities:
Repayment of long-term debt		—			(21,951	)		—			—			(21,951	)
Payment of debt issuance costs		—			(806	)		—			—			(806	)
Payment of employee tax withholding related to RSU vesting		—			(327	)		—			—			(327	)
Net cash used in financing activities		—			(23,084	)		—			—			(23,084	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(963	)		—			(963	)
Net decrease in cash, cash equivalents and restricted cash		—			(16,153	)		(1,184	)		—			(17,337	)
Cash, cash equivalents and restricted cash - beginning of period		—			114,286			18,144			—			132,430
Cash, cash equivalents and restricted cash - end of period	$	—		$	98,133		$	16,960		$	—		$	115,093

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

Three Months Ended March 31, 2020

(Unaudited)

	Verra Mobility Corporation (Ultimate Parent)		VM Consolidated Inc. (Guarantor Subsidiary)		Non- guarantor Subsidiaries		Eliminations		Consolidated
Supplemental cash flow information:
Interest paid	$	—	$	11,822	$	—	$	—	$	11,822
Income taxes paid, net		—		156		163		—		319
Supplemental non-cash investing and financing activities:
Earn-out shares issued to Platinum Stockholder		18,287		—		—		—		18,287
Additions to ARO, property and equipment, and other		—		22		—		—		22
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end		—		4,586		—		—		4,586

Description of Business - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020 Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	2

Significant Accounting Policies - Additional Information (Details) $ in Millions	Jan. 01, 2020 USD ($)
Accounting Standards Update 2016-13
Summary Of Significant Accounting Principles And Policies [Line Items]
Adjustment to accumulated deficit	$ 0.7

Acquisition - Additional Information (Details) - Pagatelia S.L $ in Millions	Oct. 31, 2019 USD ($)
Business Acquisition [Line Items]
Purchase price	$ 26.6
Trademarks
Business Acquisition [Line Items]
Identifiable intangible assets useful life	8 years 6 months
Customer Relationships
Business Acquisition [Line Items]
Identifiable intangible assets useful life	9 years 6 months
Developed Technology
Business Acquisition [Line Items]
Identifiable intangible assets useful life	6 years 6 months
Non-compete Agreements
Business Acquisition [Line Items]
Identifiable intangible assets useful life	3 years

Acquisition - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Oct. 31, 2019
Assets acquired
Goodwill	$ 581,730	$ 584,150
Pagatelia S.L
Assets acquired
Cash			$ 1,086
Other assets			5,047
Goodwill			17,528
Total assets acquired			35,442
Liabilities assumed
Accounts payable and accrued expenses			6,045
Deferred tax liability			2,801
Total liabilities assumed			8,846
Total purchase price			26,596
Trademarks \| Pagatelia S.L
Assets acquired
Intangible assets			771
Customer Relationships \| Pagatelia S.L
Assets acquired
Intangible assets			5,946
Developed Technology \| Pagatelia S.L
Assets acquired
Intangible assets			4,624
Non-compete Agreements \| Pagatelia S.L
Assets acquired
Intangible assets			$ 440

Accounts Receivable, Net - Summary of Accounts Receivable, Net and Activity in Allowance for Credit Loss by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounts Notes And Loans Receivable [Line Items]
Accounts Receivable, Net, beginning balance	$ 92,695
Allowance for credit loss, beginning balance	8,456
Credit loss expense	5,356	$ 1,270
Write-offs, net of recoveries	(2,966)
Allowance for credit loss, ending balance	10,846
Accounts Receivable, Net, ending balance	109,839
Commercial Services (Driver Billed)
Accounts Notes And Loans Receivable [Line Items]
Accounts Receivable, Net, beginning balance	9,793
Allowance for credit loss, beginning balance	5,733
Credit loss expense	1,925
Write-offs, net of recoveries	(2,220)
Allowance for credit loss, ending balance	5,438
Accounts Receivable, Net, ending balance	9,430
Commercial Services (All Other)
Accounts Notes And Loans Receivable [Line Items]
Accounts Receivable, Net, beginning balance	51,158
Allowance for credit loss, beginning balance	945
Credit loss expense	2,731
Write-offs, net of recoveries	(311)
Allowance for credit loss, ending balance	3,365
Accounts Receivable, Net, ending balance	50,898
Government Solutions
Accounts Notes And Loans Receivable [Line Items]
Accounts Receivable, Net, beginning balance	31,744
Allowance for credit loss, beginning balance	1,778
Credit loss expense	700
Write-offs, net of recoveries	(435)
Allowance for credit loss, ending balance	2,043
Accounts Receivable, Net, ending balance	$ 49,511

Accounts Receivable, Net - Summary of Accounts Receivable, Net and Activity in Allowance for Credit Loss by Portfolio Segment (Parenthetical) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Allowance For Doubtful Accounts Receivable Rollforward
Allowance for credit loss increase	$ 0.8

Accounts Receivable, Net - Additional Information (Details) - Sales Revenue - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Government Solutions \| City of New York Department of Transportation
Accounts Notes And Loans Receivable [Line Items]
Concentration risk percentage	25.50%
Commercial Services \| Hertz Corporation
Accounts Notes And Loans Receivable [Line Items]
Concentration risk percentage	15.70%	18.40%
Commercial Services \| Avis Budget Group Inc
Accounts Notes And Loans Receivable [Line Items]
Concentration risk percentage	12.70%	0.00%
Commercial Services \| Enterprise Holdings Inc
Accounts Notes And Loans Receivable [Line Items]
Concentration risk percentage	10.80%	14.00%
Minimum
Accounts Notes And Loans Receivable [Line Items]
Concentration risk percentage	10.00%

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets Current [Abstract]
Prepaid tolls	$ 11,002	$ 10,116
Prepaid services	5,327	5,201
Deposits	3,510	3,642
Prepaid computer maintenance	2,715	2,923
Prepaid insurance	1,033	1,485
Photo enforcement equipment held for sale	416	1,410
Prepaid income taxes	162	1,025
Other	451	689
Total prepaid expenses and other current assets	$ 24,616	$ 26,491

Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill by Reportable Segment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Line Items]
Balance	$ 584,150
Foreign currency translation adjustment	(2,420)
Balance	581,730
Commercial Services
Goodwill [Line Items]
Balance	424,404
Foreign currency translation adjustment	(2,420)
Balance	421,984
Government Solutions
Goodwill [Line Items]
Balance	159,746
Balance	$ 159,746

Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Separately Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 625,612	$ 626,917
Accumulated Amortization	215,655	192,474
Less: accumulated amortization	(215,655)	(192,474)
Intangible assets, net	$ 409,957	$ 434,443
Trademarks
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	1 year 2 months 12 days	1 year 6 months
Gross Carrying Amount	$ 32,071	$ 32,127
Accumulated Amortization	21,651	19,106
Less: accumulated amortization	$ (21,651)	$ (19,106)
Non-compete Agreements
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	2 years 9 months 18 days	3 years
Gross Carrying Amount	$ 62,553	$ 62,549
Accumulated Amortization	27,977	24,834
Less: accumulated amortization	$ (27,977)	$ (24,834)
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	6 years 7 months 6 days	6 years 10 months 24 days
Gross Carrying Amount	$ 365,463	$ 366,533
Accumulated Amortization	92,951	82,903
Less: accumulated amortization	$ (92,951)	$ (82,903)
Developed Technology
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Useful Life	3 years 1 month 6 days	3 years 3 months 18 days
Gross Carrying Amount	$ 165,525	$ 165,708
Accumulated Amortization	73,076	65,631
Less: accumulated amortization	$ (73,076)	$ (65,631)

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 23.5	$ 23.1

Goodwill and Intangible Assets - Estimated Amortization Expense in Future Years (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 70,276
2021	85,416
2022	80,686
2023	52,171
2024	41,684
Thereafter	79,724
Total	$ 409,957

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Payables And Accruals [Abstract]
Accrued salaries and wages	$ 5,282	$ 10,319
Current portion of related party TRA liability	4,636	5,730
Current portion of operating lease liabilities	2,987	2,970
Advanced deposits payable	2,322	2,875
Income taxes payable	4,675	348
Restricted cash due to customers	1,510	917
Accrued sales commissions	551	612
Accrued interest payable	176	210
Other	1,562	1,296
Total accrued liabilities	$ 23,701	$ 25,277

Debt - Summary of the Company's Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
First Lien Term Loan, due February 28, 2025	$ 872,470	$ 894,421
Less: original issue discounts	(4,648)	(4,778)
Less: unamortized deferred financing costs	(23,211)	(23,178)
Total debt	844,611	866,465
Less: current portion of long-term debt	(9,104)	(28,779)
Long-term debt, net of current portion and deferred financing costs	$ 835,507	$ 837,686

Debt - Summary of the Company's Long-Term Debt (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2020
First Lien Term Loan, Due February 28, 2025
Debt Instrument [Line Items]
Debt instrument, maturity date	Feb. 28, 2025

Debt - Additional Information (Details) - USD ($)			3 Months Ended
Debt - Additional Information (Details) - USD ($)	Feb. 20, 2020	Oct. 17, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Jul. 31, 2018
Debt Instrument [Line Items]
Debt Instrument, interest rate	0.50%		1.38%
Outstanding letters of credit			$ 6,200,000
Debt instrument, periodic payment, interest rate			0.375%
Debt instrument fronting fees			$ 6,200,000
Interest expense including amortization of deferred financing costs and discounts			$ 12,500,000	$ 16,000,000.0
Weighted average effective interest rates			4.24%		5.50%
First Lien Term Loan
Debt Instrument [Line Items]
Debt instrument, interest rate during the period			1.00%
Debt instrument, maturity date			Feb. 28, 2025
Debt instrument interest rate			4.24%
Debt instrument fee amount			$ 800,000
Debt instrument legal fees			$ 200,000
First Lien Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument interest rate per annum			3.25%
First Lien Term Loan \| Base Rate
Debt Instrument [Line Items]
Debt instrument interest rate per annum			2.25%
Revolver
Debt Instrument [Line Items]
Mandatory prepayment of excess cash flow under loan agreement			$ 19,700,000
Outstanding borrowings			0
Debt instrument borrow under new revolver			68,800,000
Outstanding letters of credit			$ 6,200,000
Revolver \| LIBOR 1.25%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			1.25%
Revolver \| LIBOR 1.50%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			1.50%
Revolver \| LIBOR 1.75%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			1.75%
Revolver \| Base Rate 0.25%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			0.25%
Revolver \| Base Rate 0.50%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			0.50%
Revolver \| Base Rate 0.75%
Debt Instrument [Line Items]
Debt instrument interest rate per annum			0.75%
2018 Credit Facilities
Debt Instrument [Line Items]
Outstanding borrowings			$ 1,115,000,000
Debt instrument, aggregate principal amount			1,040,000,000.00
Aggregate revolving commitment			$ 75,000,000
2018 Credit Facilities \| Second Lien Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount		$ 200,000,000
Additional repayments of lines of credit		$ 70,000,000
2018 Credit Facilities \| Minimum \| First Lien Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount						$ 840,000,000
2018 Credit Facilities \| Maximum \| First Lien Term Loan
Debt Instrument [Line Items]
Debt instrument, face amount						$ 910,000,000

Debt - Schedule of Consolidated First Lien Net Leverage Ratio and Applicable Prepayment Percentage (Details) - First Lien Term Loan	3 Months Ended
	Mar. 31, 2020
> 3.70:1.00
Debt Instrument [Line Items]
Applicable prepayment percentage	50.00%
≤ 3.70:1.00 and > 3.20:1.00
Debt Instrument [Line Items]
Applicable prepayment percentage	25.00%
≤ 3.20:1.00
Debt Instrument [Line Items]
Applicable prepayment percentage	0.00%

Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt (Details) - Level 2 - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying Amount
Debt Instrument [Line Items]
Total debt	$ 844,611	$ 866,465
Estimated Fair Value
Debt Instrument [Line Items]
Total debt	$ 811,397	$ 905,601

Net Income Per Share - Schedule of Components of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income	$ 6,673	$ 2,820
Weighted average shares used in per share calculation:
Weighted average shares - basic	160,924	156,057
Common stock equivalents	3,503	401
Weighted average shares - diluted	164,427	156,458
Net income per share - basic	$ 0.04	$ 0.02
Net income per share - diluted	$ 0.04	$ 0.02
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded	6,014	30,086
Contingently Issuable Shares
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded	5,742	10,000
Warrants
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded		20,000
Non-qualified Stock Options
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded	209
Performance Share Units
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded	35
Restricted Stock Units
Antidilutive weighted average shares excluded from diluted net income per share:
Total antidilutive shares excluded	28	86

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax [Line Items]
Effective tax rate	32.50%	31.90%
Unrecognized tax benefits decreased from prior tax positions	$ 900,000
Unrecognized tax benefits	800,000
Unrecognized tax benefits, if recognized	$ 700,000
Earliest \| Internal Revenue Service
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2016
Earliest \| Certain States
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2015
Earliest \| Other States
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2014
Latest \| Internal Revenue Service
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2019
Latest \| Certain States
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2017
Latest \| Other States
Income Tax [Line Items]
Income Tax Examination, Year under Examination	2019
Maximum
Income Tax [Line Items]
Accrued interest and penalties	$ 100,000

Stock-Based Compensation - Schedule of Components of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,768	$ 2,143
Operating Expenses
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	220	204
Selling, General and Administrative Expenses
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,548	$ 1,939

Related Party Transactions - Additional Information (Details) $ / shares in Units, $ in Thousands			3 Months Ended
	Jan. 27, 2020 USD ($) $ / shares	Apr. 26, 2019 $ / shares	Mar. 31, 2020 USD ($) yr $ / shares shares	Dec. 31, 2019 USD ($)	Oct. 01, 2018 USD ($)
Related Party Transaction [Line Items]
Estimated maximum benefit to be paid to tax receivable agreement			$ 61,174	$ 61,174
Platinum Stockholder \| Common Stock Price Greater than $13.00 and $15.50
Related Party Transaction [Line Items]
Earn-out shares issuable if condition met \| shares			5,000,000
Platinum Stockholder \| Common Stock Price Greater than $13.00 and $15.50 \| Common Stock Including Additional Paid in Capital
Related Party Transaction [Line Items]
Earn-out shares issued value	$ 36,600
Platinum Stockholder \| Common Stock Price Greater than $13.00
Related Party Transaction [Line Items]
Common stock price \| $ / shares		$ 13.00
Platinum Stockholder \| Common Stock Price Greater than $15.50
Related Party Transaction [Line Items]
Common stock price \| $ / shares	$ 15.50
Platinum Stockholder \| Earn-Out Agreement \| Earn-Out Scenario Five
Related Party Transaction [Line Items]
Earn-out shares issuable if condition met \| shares			0
Platinum Stockholder \| Earn-Out Agreement \| Common Stock Price Greater than $13.00
Related Party Transaction [Line Items]
Earn-out shares issuable if condition met \| shares			2,500,000
Common stock price \| $ / shares			$ 13.00
Platinum Stockholder \| Earn-Out Agreement \| Common Stock Price Greater than $15.50
Related Party Transaction [Line Items]
Earn-out shares issuable if condition met \| shares			2,500,000
Common stock price \| $ / shares			$ 15.50
Minimum \| Platinum Stockholder \| Common Stock Price Greater than $13.00
Related Party Transaction [Line Items]
Common stock price threshold trading days		10 days
Minimum \| Platinum Stockholder \| Common Stock Price Greater than $15.50
Related Party Transaction [Line Items]
Common stock price threshold trading days	10 days
Maximum \| Platinum Stockholder \| Common Stock Price Greater than $13.00
Related Party Transaction [Line Items]
Common stock price threshold trading days		20 days
Maximum \| Platinum Stockholder \| Common Stock Price Greater than $15.50
Related Party Transaction [Line Items]
Common stock price threshold trading days	20 days
Maximum \| Platinum Stockholder \| Earn-Out Agreement
Related Party Transaction [Line Items]
Earn-out shares issuable if condition met \| shares			10,000,000
Verra Mobility Business Combination
Related Party Transaction [Line Items]
Tax Receivable Agreement, portion of net cash savings paid out			50.00%
Tax Receivable Agreement, portion of net cash savings retained			50.00%
Estimated maximum benefit to be paid to tax receivable agreement			$ 70,000
Tax receivable agreement, amount payable			$ 65,800
Contingency period			5 years
Verra Mobility Business Combination \| Platinum Stockholder \| Earn-Out Agreement
Related Party Transaction [Line Items]
Contingent consideration					$ 73,150
Term of volatility and risk free rates utilizing a peer group \| yr			5
Verra Mobility Business Combination \| Minimum
Related Party Transaction [Line Items]
Common stock price threshold trading days			10 days
Verra Mobility Business Combination \| Maximum
Related Party Transaction [Line Items]
Common stock price threshold trading days			20 days
Verra Mobility Business Combination \| Accrued Liabilities
Related Party Transaction [Line Items]
Tax receivable agreement, amount payable			$ 4,600
Verra Mobility Business Combination \| Payable Related to Tax Receivable Agreement
Related Party Transaction [Line Items]
Tax receivable agreement, amount payable			$ 61,200

Related Party Transactions - Summary of Earn Out Shares Issued by Company to Platinum Stockholder (Details) - Platinum Stockholder - $ / shares	3 Months Ended
	Mar. 31, 2020	Jan. 27, 2020	Apr. 26, 2019
Common Stock Price Greater than $13.00
Related Party Transaction [Line Items]
Common Stock Price thresholds			$ 13.00
Common Stock Price Greater than $13.00 \| Earn-Out Agreement
Related Party Transaction [Line Items]
Common Stock Price thresholds	$ 13.00
One-time issuance of shares	2,500,000
Common Stock Price Greater than $15.50
Related Party Transaction [Line Items]
Common Stock Price thresholds		$ 15.50
Common Stock Price Greater than $15.50 \| Earn-Out Agreement
Related Party Transaction [Line Items]
Common Stock Price thresholds	$ 15.50
One-time issuance of shares	2,500,000
Common Stock Price Greater than $18.00 \| Earn-Out Agreement
Related Party Transaction [Line Items]
Common Stock Price thresholds	$ 18.00
One-time issuance of shares	2,500,000
Common Stock Price Greater than $20.50 \| Earn-Out Agreement
Related Party Transaction [Line Items]
Common Stock Price thresholds	$ 20.50
One-time issuance of shares	2,500,000

Commitment and Contingencies - Additional Information (Details) $ in Millions	Mar. 31, 2020 USD ($)
Commitments And Contingencies Disclosure [Abstract]
Letters of Credit Outstanding	$ 6.2
Non-cancelable purchase commitments outstanding	$ 27.4

Segment Reporting - Additional Information (Details)	3 Months Ended
Segment Reporting - Additional Information (Details)	Mar. 31, 2020 Segment
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2

Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 116,713	$ 98,461
Operating expenses	32,039	29,134
Selling, general and administrative expenses	23,338	18,612
Other income, net	(2,925)	(2,207)
Segment profit (loss)	19,413	17,966
Depreciation and amortization	29,250	28,939
Gain (Loss) on disposal of assets, net	(4)	2
Stock-based compensation	2,768	2,143
Interest expense, net	12,451	16,033
Income (loss) before income tax provision	9,887	4,140
Service Revenue
Segment Reporting Information [Line Items]
Total revenue	99,497	98,070
Cost of revenue	1,219	1,389
Product Sales
Segment Reporting Information [Line Items]
Total revenue	17,216	391
Cost of revenue	8,690	276
Operating Segments
Segment Reporting Information [Line Items]
Segment profit (loss)	54,352	51,257
Operating Segments \| Commercial Services
Segment Reporting Information [Line Items]
Total revenue	61,242	62,588
Operating expenses	16,530	15,096
Selling, general and administrative expenses	13,384	10,762
Other income, net	(2,889)	(2,171)
Segment profit (loss)	33,410	38,037
Income (loss) before income tax provision	33,410	38,037
Operating Segments \| Government Solutions
Segment Reporting Information [Line Items]
Total revenue	55,471	35,873
Operating expenses	15,509	14,038
Selling, general and administrative expenses	9,669	7,850
Other income, net	(36)	(37)
Segment profit (loss)	21,227	13,221
Gain (Loss) on disposal of assets, net	(4)
Income (loss) before income tax provision	21,231	13,221
Operating Segments \| Service Revenue \| Commercial Services
Segment Reporting Information [Line Items]
Total revenue	61,242	62,588
Cost of revenue	807	864
Operating Segments \| Service Revenue \| Government Solutions
Segment Reporting Information [Line Items]
Total revenue	38,255	35,482
Cost of revenue	412	525
Operating Segments \| Product Sales \| Government Solutions
Segment Reporting Information [Line Items]
Total revenue	17,216	391
Cost of revenue	8,690	276
Corporate and Other
Segment Reporting Information [Line Items]
Selling, general and administrative expenses	285
Other income, net		1
Segment profit (loss)	(285)	(1)
Depreciation and amortization	29,250	28,939
Gain (Loss) on disposal of assets, net		2
Stock-based compensation	2,768	2,143
Interest expense, net	12,451	16,033
Income (loss) before income tax provision	$ (44,754)	$ (47,118)

Guarantor/Non-Guarantor Financial Information - Summary of Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 113,583	$ 131,513
Restricted cash	1,510	917
Accounts receivable (net of allowance for credit loss of $10.8 million at March 31, 2020)	109,839	93,514
Unbilled receivables	16,358	20,003
Prepaid expenses and other current assets	24,616	26,491
Total current assets	265,906	272,438
Installation and service parts, net	8,022	8,841
Property and equipment, net	73,631	72,266
Operating lease assets	31,789	32,177
Intangible assets, net	409,957	434,443
Goodwill	581,730	584,150
Other non-current assets	3,094	3,111
Total assets	1,374,129	1,407,426
Current liabilities:
Accounts payable	39,198	50,825
Accrued liabilities	23,701	25,277
Current portion of long-term debt	9,104	28,779
Total current liabilities	72,003	104,881
Long-term debt, net of current portion and deferred financing costs	835,507
Operating lease liabilities, net of current portion	29,917	30,130
Payable to related party pursuant to tax receivable agreement	61,174	61,174
Asset retirement obligation	6,387	6,309
Deferred tax liabilities, net	24,472	25,716
Other long-term liabilities	269
Total liabilities	1,029,729	1,068,079
Total stockholders' equity	344,400	339,347	$ 304,821	$ 302,056
Total liabilities and stockholders' equity	1,374,129	$ 1,407,426
Verra Mobility Corporation (Ultimate Parent)
Current assets:
Investment in subsidiary	175,141
Total current assets	175,141
Due from affiliates	169,259
Total assets	344,400
Current liabilities:
Total stockholders' equity	344,400
Total liabilities and stockholders' equity	344,400
VM Consolidated Inc. (Guarantor Subsidiary)
Current assets:
Cash and cash equivalents	96,623
Restricted cash	1,510
Accounts receivable (net of allowance for credit loss of $10.8 million at March 31, 2020)	105,799
Unbilled receivables	16,071
Investment in subsidiary	75,098
Prepaid expenses and other current assets	22,116
Total current assets	317,217
Installation and service parts, net	8,022
Property and equipment, net	70,588
Operating lease assets	31,387
Intangible assets, net	382,654
Goodwill	524,767
Other non-current assets	3,080
Total assets	1,337,715
Current liabilities:
Accounts payable	26,071
Accrued liabilities	20,580
Current portion of long-term debt	9,104
Total current liabilities	55,755
Long-term debt, net of current portion and deferred financing costs	835,507
Operating lease liabilities, net of current portion	29,712
Payable to related party pursuant to tax receivable agreement	61,174
Due to affiliates	154,091
Asset retirement obligation	6,387
Deferred tax liabilities, net	19,679
Other long-term liabilities	269
Total liabilities	1,162,574
Total stockholders' equity	175,141
Total liabilities and stockholders' equity	1,337,715
Non-guarantor Subsidiaries
Current assets:
Cash and cash equivalents	16,960
Accounts receivable (net of allowance for credit loss of $10.8 million at March 31, 2020)	4,040
Unbilled receivables	287
Prepaid expenses and other current assets	2,500
Total current assets	23,787
Property and equipment, net	3,043
Operating lease assets	402
Intangible assets, net	27,303
Goodwill	56,963
Other non-current assets	14
Total assets	111,512
Current liabilities:
Accounts payable	13,127
Accrued liabilities	3,121
Total current liabilities	16,248
Operating lease liabilities, net of current portion	205
Due to affiliates	15,168
Deferred tax liabilities, net	4,793
Total liabilities	36,414
Total stockholders' equity	75,098
Total liabilities and stockholders' equity	111,512
Eliminations
Current assets:
Investment in subsidiary	(250,239)
Total current assets	(250,239)
Due from affiliates	(169,259)
Total assets	(419,498)
Current liabilities:
Due to affiliates	(169,259)
Total liabilities	(169,259)
Total stockholders' equity	(250,239)
Total liabilities and stockholders' equity	$ (419,498)

Guarantor/Non-Guarantor Financial Information - Summary of Condensed Consolidated Balance Sheets (Parenthetical) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]
Allowance for credit loss	$ 10,846	$ 8,456

Guarantor/Non-Guarantor Financial Information - Summary of Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Statement Of Income Captions [Line Items]
Total revenue	$ 116,713	$ 98,461
Operating expenses	32,259	29,338
Selling, general and administrative expenses	25,886	20,551
Depreciation, amortization and (gain) loss on disposal of assets, net	29,246	28,941
Total costs and expenses	97,300	80,495
Income from operations	19,413	17,966
Interest expense, net	12,451	16,033
Other income, net	(2,925)	(2,207)
Total other (income) expenses	9,526	13,826
Income before income tax provision (benefit)	9,887	4,140
Income tax provision (benefit)	3,214	1,320
Net income (loss)	6,673	2,820
Other comprehensive loss:
Change in foreign currency translation adjustment	(3,367)	1,324
Total comprehensive income (loss)	3,306	4,144
Verra Mobility Corporation (Ultimate Parent)
Condensed Statement Of Income Captions [Line Items]
(Income) loss from equity investment	(6,673)
Total other (income) expenses	(6,673)
Income before income tax provision (benefit)	6,673
Net income (loss)	6,673
Other comprehensive loss:
Total comprehensive income (loss)	6,673
VM Consolidated Inc. (Guarantor Subsidiary)
Condensed Statement Of Income Captions [Line Items]
Total revenue	112,866
Operating expenses	30,578
Selling, general and administrative expenses	23,976
Depreciation, amortization and (gain) loss on disposal of assets, net	27,995
Total costs and expenses	91,906
Income from operations	20,960
(Income) loss from equity investment	1,307
Interest expense, net	12,462
Other income, net	(2,887)
Total other (income) expenses	10,882
Income before income tax provision (benefit)	10,078
Income tax provision (benefit)	3,405
Net income (loss)	6,673
Other comprehensive loss:
Change in foreign currency translation adjustment	(3,367)
Total comprehensive income (loss)	3,306
Non-guarantor Subsidiaries
Condensed Statement Of Income Captions [Line Items]
Total revenue	3,847
Operating expenses	1,681
Selling, general and administrative expenses	1,910
Depreciation, amortization and (gain) loss on disposal of assets, net	1,251
Total costs and expenses	5,394
Income from operations	(1,547)
Interest expense, net	(11)
Other income, net	(38)
Total other (income) expenses	(49)
Income before income tax provision (benefit)	(1,498)
Income tax provision (benefit)	(191)
Net income (loss)	(1,307)
Other comprehensive loss:
Total comprehensive income (loss)	(1,307)
Eliminations
Condensed Statement Of Income Captions [Line Items]
(Income) loss from equity investment	5,366
Total other (income) expenses	5,366
Income before income tax provision (benefit)	(5,366)
Net income (loss)	(5,366)
Other comprehensive loss:
Total comprehensive income (loss)	(5,366)
Service Revenue
Condensed Statement Of Income Captions [Line Items]
Total revenue	99,497	98,070
Cost of revenue	1,219	1,389
Service Revenue \| VM Consolidated Inc. (Guarantor Subsidiary)
Condensed Statement Of Income Captions [Line Items]
Total revenue	95,650
Cost of revenue	667
Service Revenue \| Non-guarantor Subsidiaries
Condensed Statement Of Income Captions [Line Items]
Total revenue	3,847
Cost of revenue	552
Product Sales
Condensed Statement Of Income Captions [Line Items]
Total revenue	17,216	391
Cost of revenue	8,690	$ 276
Product Sales \| VM Consolidated Inc. (Guarantor Subsidiary)
Condensed Statement Of Income Captions [Line Items]
Total revenue	17,216
Cost of revenue	$ 8,690

Guarantor/Non-Guarantor Financial Information - Summary of Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows from Operating Activities:
Net income (loss)	$ 6,673	$ 2,820
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	29,250	28,939
Amortization of deferred financing costs and discounts	903
Credit loss expense	5,356	1,270
Deferred income taxes	(682)	(1,073)
Stock-based compensation	2,768	2,143
Installation and service parts expense	393	257
Accretion expense	64	90
Gain on disposal of assets	(4)	2
Changes in operating assets and liabilities:
Accounts receivable, net	(22,397)	(8,372)
Unbilled receivables	3,648	(3,797)
Prepaid expenses and other current assets	2,367	(1,527)
Accounts payable and accrued liabilities	(11,363)	18,413
Other liabilities	(2,135)	(3,647)
Net cash provided by operating activities	14,841	37,351
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment	(8,141)	(9,219)
Cash proceeds from the sale of assets	10
Net cash used in investing activities	(8,131)	(9,167)
Cash Flows from Financing Activities:
Repayment of long-term debt	(21,951)	(2,276)
Payment of debt issuance costs	(806)	(37)
Payment of employee tax withholding related to RSU vesting	(327)
Net cash used in financing activities	(23,084)	(2,313)
Effect of exchange rate changes on cash and cash equivalents	(963)
Net (decrease) increase in cash, cash equivalents and restricted cash	(17,337)	26,107
Cash, cash equivalents and restricted cash - beginning of period	132,430	67,081
Cash, cash equivalents and restricted cash - end of period	115,093	93,188
Supplemental cash flow information:
Interest paid	11,822	13,890
Income taxes paid, net	319	(4,710)
Supplemental non-cash investing and financing activities:
Earn-out shares issued to Platinum Stockholder	18,287
Additions to ARO, property and equipment, and other	22	28
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end	4,586	$ 4,084
Verra Mobility Corporation (Ultimate Parent)
Cash Flows from Operating Activities:
Net income (loss)	6,673
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Income) loss from equity investment	(6,673)
Supplemental non-cash investing and financing activities:
Earn-out shares issued to Platinum Stockholder	18,287
VM Consolidated Inc. (Guarantor Subsidiary)
Cash Flows from Operating Activities:
Net income (loss)	6,673
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	27,999
Amortization of deferred financing costs and discounts	903
Credit loss expense	5,356
Deferred income taxes	(94)
Stock-based compensation	2,768
Installation and service parts expense	393
Accretion expense	64
Gain on disposal of assets	(4)
(Income) loss from equity investment	1,307
Changes in operating assets and liabilities:
Accounts receivable, net	(23,028)
Unbilled receivables	3,246
Prepaid expenses and other current assets	2,628
Accounts payable and accrued liabilities	(10,444)
Due to affiliates	(1,341)
Other liabilities	(2,135)
Net cash provided by operating activities	14,291
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment	(7,370)
Cash proceeds from the sale of assets	10
Net cash used in investing activities	(7,360)
Cash Flows from Financing Activities:
Repayment of long-term debt	(21,951)
Payment of debt issuance costs	(806)
Payment of employee tax withholding related to RSU vesting	(327)
Net cash used in financing activities	(23,084)
Net (decrease) increase in cash, cash equivalents and restricted cash	(16,153)
Cash, cash equivalents and restricted cash - beginning of period	114,286
Cash, cash equivalents and restricted cash - end of period	98,133
Supplemental cash flow information:
Interest paid	11,822
Income taxes paid, net	156
Supplemental non-cash investing and financing activities:
Additions to ARO, property and equipment, and other	22
Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end	4,586
Non-guarantor Subsidiaries
Cash Flows from Operating Activities:
Net income (loss)	(1,307)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,251
Deferred income taxes	(588)
Changes in operating assets and liabilities:
Accounts receivable, net	631
Unbilled receivables	402
Prepaid expenses and other current assets	(261)
Accounts payable and accrued liabilities	(919)
Due to affiliates	1,341
Net cash provided by operating activities	550
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment	(771)
Net cash used in investing activities	(771)
Cash Flows from Financing Activities:
Effect of exchange rate changes on cash and cash equivalents	(963)
Net (decrease) increase in cash, cash equivalents and restricted cash	(1,184)
Cash, cash equivalents and restricted cash - beginning of period	18,144
Cash, cash equivalents and restricted cash - end of period	16,960
Supplemental cash flow information:
Income taxes paid, net	163
Eliminations
Cash Flows from Operating Activities:
Net income (loss)	(5,366)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Income) loss from equity investment	$ 5,366