424B3

Filed pursuant to Rule 424(b)(3)

Registration Statement No. 333-260822

Prospectus Supplement No. 4

(to Prospectus dated May 16, 2022)

 

LOGO

Up to 19,999,967 Shares of Class A Common Stock

Issuable Upon Exercise of Warrants

and

Up to 5,000,000 Shares of Class A Common Stock

Offered by the Selling Stockholder

 

 

This prospectus supplement is being filed to update, amend and supplement the information included in the prospectus dated May 16, 2022 (the “Prospectus”) related to (a ) the issuance by us of an aggregate of up to 19,999,967 shares of our Class A Common Stock, par value $0.0001 per share (“Class A Common Stock”), consisting of (i) 6,666,666 shares of Class A Common Stock issuable upon the exercise of 6,666,666 warrants issued in a private placement in connection with our initial public offering and (ii) 13,333,301 shares of our Class A Common Stock issuable upon exercise of 13,333,301 warrants issued in connection with our initial public offering (the “Public Warrants”) and (b) the resale from time to time by the selling stockholder identified in the Prospectus, or their permitted transferees, of an aggregate of up to 5,000,000 shares of Class A Common Stock. Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.

This prospectus supplement is being filed to update, amend and supplement the information included in the Prospectus with the information contained in our Quarterly Report on Form 10-Q filed with the SEC on August 3, 2022, which is set forth below.

This prospectus supplement is not complete without the Prospectus. This prospectus supplement should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this prospectus supplement updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

Our Class A Common Stock is listed on the Nasdaq Capital Market under the symbol “VRRM.” Our Public Warrants are quoted on OTC Pink under the symbol “VRRMW.” On August 2, 2022, the closing sale price per share of our Class A Common Stock was $16.35.

 

 

INVESTING IN OUR SECURITIES INVOLVES A HIGH DEGREE OF RISK. SEE THE SECTION ENTITLED “RISK FACTORS” BEGINNING ON PAGE 4 OF THE PROSPECTUS TO READ ABOUT FACTORS YOU SHOULD CONSIDER BEFORE BUYING SHARES OF OUR CLASS A COMMON STOCK.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities to be issued under this prospectus or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

 

The date of this prospectus is August 3, 2022.


 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended June 30, 2022

OR

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

For the transition period from ___________ to ___________.

Commission File Number: 001-37979

 

VERRA MOBILITY CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

 

81-3563824

(State of

 

(I.R.S. Employer

Incorporation)

 

Identification No.)

 

 

 

1150 North Alma School Road

 

85201

Mesa, Arizona

 

(Zip Code)

(Address of Principal Executive Offices)

 

 

(480) 443-7000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

(Title of Each Class)

 

(Trading Symbol)

 

(Name of Each Exchange on Which Registered)

Class A Common Stock, par value $0.0001 per share

 

VRRM

 

Nasdaq Capital Market

Warrants to purchase Class A Common Stock

 

VRRMW

 

OTC Pink Marketplace

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act:

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act). YES ☐ NO ☒

As of August 1, 2022, there were 153,184,099 shares of the Company’s Class A Common Stock, par value $0.0001 per share, issued and outstanding.

 

 


 

VERRA MOBILITY CORPORATION

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2022

TABLE OF CONTENTS

 

PART I—FINANCIAL INFORMATION

 

5

Item 1. Financial Statements

 

5

Condensed Consolidated Balance Sheets

 

5

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

 

6

Condensed Consolidated Statements of Stockholders’ Equity

 

7

Condensed Consolidated Statements of Cash Flows

 

8

Notes to the Condensed Consolidated Financial Statements

 

10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

33

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

45

Item 4. Controls and Procedures

 

45

PART II—OTHER INFORMATION

 

47

Item 1. Legal Proceedings

 

47

Item 1A. Risk Factors

 

47

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

47

Item 3. Defaults Upon Senior Securities

 

48

Item 4. Mine Safety Disclosures

 

48

Item 5. Other Information

 

48

Item 6. Exhibits

 

49

SIGNATURES

 

51

 

2


 

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of federal securities laws. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, products, services, and technology offerings, market conditions, growth and trends, expansion plans and opportunities, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely” and similar expressions, and the negative of these expressions, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in Part II, Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q and in Part I, Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2021. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

disruption to our business and results of operations as a result of the novel coronavirus pandemic, including variant strains (“COVID-19”);
customer concentration in our Commercial Services and Government Solutions segments;
the impact of COVID-19 on our revenues from key customers in our Commercial Services, Government Solutions and Parking Solutions segments;
risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits and investigations;
decreases in the prevalence of automated and other similar methods of photo enforcement, parking solutions or the use of tolling;
decreased interest in outsourcing from our customers;
our ability to properly perform under our contracts and otherwise satisfy our customers;
our ability to compete in a highly competitive and rapidly evolving market;
our ability to keep up with technological developments and changing customer preferences;
the success of our new products and changes to existing products and services;
our ability to successfully implement our acquisition strategy or integrate acquisitions;
failure in or breaches of our networks or systems, including as a result of cyber-attacks;
our ability to manage the risks, uncertainties and exposures related to our international operations;
our ability to acquire necessary intellectual property and adequately protect our existing intellectual property;
our ability to manage our substantial level of indebtedness;
our reliance on a limited number of third-party vendors and service providers;
our ability to maintain an effective system of internal controls
risks and uncertainties related to our share repurchase program; and
risks and uncertainties related to litigation, disputes and regulatory investigations.

You should not rely on forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not occur. Although we believe that the expectations reflected in the forward-looking

3


 

statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q or to conform these statements to actual results or revised expectations.

Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports, are available free of charge on our website, verramobility.com, under the heading “Investors” immediately after they are filed with, or furnished to, the SEC. We use our Investor Relations website, ir.verramobility.com, as a means of disclosing information which may be of interest or material to our investors and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. Information contained on or accessible through, including any reports available on, our website is not a part of, and is not incorporated by reference into, this Quarterly Report on Form 10-Q or any other report or document we file with the SEC. Any reference to our website in this Form 10-Q is intended to be an inactive textual reference only.

Unless the context indicates otherwise, the terms “Verra Mobility,” the “Company,” “we,” “us,” and “our” as used in this Quarterly Report on Form 10-Q refer to Verra Mobility Corporation, a Delaware corporation, and its subsidiaries taken as a whole.

4


 

Part I—Financial Information

Item 1. Financial Statements

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

($ in thousands, except per share data)

 

June 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

86,392

 

 

$

101,283

 

Restricted cash

 

 

4,169

 

 

 

3,149

 

Accounts receivable (net of allowance for credit losses of $17.1 million and
$12.1 million at June 30, 2022 and December 31, 2021, respectively)

 

 

172,816

 

 

 

160,979

 

Unbilled receivables

 

 

33,830

 

 

 

29,109

 

Inventory, net

 

 

16,549

 

 

 

12,093

 

Prepaid expenses and other current assets

 

 

34,615

 

 

 

41,456

 

Total current assets

 

 

348,371

 

 

 

348,069

 

Installation and service parts, net

 

 

15,381

 

 

 

13,332

 

Property and equipment, net

 

 

102,755

 

 

 

96,066

 

Operating lease assets

 

 

38,146

 

 

 

38,862

 

Intangible assets, net

 

 

429,813

 

 

 

487,299

 

Goodwill

 

 

832,811

 

 

 

838,867

 

Other non-current assets

 

 

12,583

 

 

 

14,561

 

Total assets

 

$

1,779,860

 

 

$

1,837,056

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

69,107

 

 

$

67,556

 

Deferred revenue

 

 

29,743

 

 

 

27,141

 

Accrued liabilities

 

 

49,596

 

 

 

38,435

 

Tax receivable agreement liability, current portion

 

 

5,107

 

 

 

5,107

 

Current portion of long-term debt

 

 

11,952

 

 

 

36,952

 

Total current liabilities

 

 

165,505

 

 

 

175,191

 

Long-term debt, net of current portion

 

 

1,205,169

 

 

 

1,206,802

 

Operating lease liabilities, net of current portion

 

 

34,347

 

 

 

34,984

 

Tax receivable agreement liability, net of current portion

 

 

55,650

 

 

 

56,615

 

Private placement warrant liabilities

 

 

35,600

 

 

 

38,466

 

Asset retirement obligation

 

 

12,045

 

 

 

11,824

 

Deferred tax liabilities, net

 

 

21,829

 

 

 

47,524

 

Other long-term liabilities

 

 

5,492

 

 

 

5,686

 

Total liabilities

 

 

1,535,637

 

 

 

1,577,092

 

Commitments and contingencies (Note 14)

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value

 

 

 

 

 

 

Common stock, $0.0001 par value

 

 

15

 

 

 

16

 

Common stock contingent consideration

 

 

36,575

 

 

 

36,575

 

Additional paid-in capital

 

 

311,252

 

 

 

309,883

 

Accumulated deficit

 

 

(90,852

)

 

 

(81,416

)

Accumulated other comprehensive loss

 

 

(12,767

)

 

 

(5,094

)

Total stockholders' equity

 

 

244,223

 

 

 

259,964

 

Total liabilities and stockholders' equity

 

$

1,779,860

 

 

$

1,837,056

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

5


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

($ in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue

 

$

174,502

 

 

$

116,426

 

 

$

335,636

 

 

$

206,189

 

Product sales

 

 

12,985

 

 

 

12,231

 

 

 

22,236

 

 

 

12,326

 

Total revenue

 

 

187,487

 

 

 

128,657

 

 

 

357,872

 

 

 

218,515

 

Cost of service revenue

 

 

3,713

 

 

 

1,332

 

 

 

7,492

 

 

 

2,212

 

Cost of product sales

 

 

8,326

 

 

 

6,144

 

 

 

14,321

 

 

 

6,171

 

Operating expenses

 

 

55,196

 

 

 

36,434

 

 

 

106,259

 

 

 

66,926

 

Selling, general and administrative expenses

 

 

40,152

 

 

 

26,229

 

 

 

81,787

 

 

 

54,672

 

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

 

 

34,939

 

 

 

27,012

 

 

 

70,846

 

 

 

55,277

 

Total costs and expenses

 

 

142,326

 

 

 

97,151

 

 

 

280,705

 

 

 

185,258

 

Income from operations

 

 

45,161

 

 

 

31,506

 

 

 

77,167

 

 

 

33,257

 

Interest expense, net

 

 

14,485

 

 

 

11,680

 

 

 

28,764

 

 

 

20,844

 

Change in fair value of private placement warrants

 

 

(6,600

)

 

 

8,067

 

 

 

(2,866

)

 

 

10,134

 

Tax receivable agreement liability adjustment

 

 

(965

)

 

 

1,661

 

 

 

(965

)

 

 

1,661

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

5,334

 

Other income, net

 

 

(4,039

)

 

 

(2,798

)

 

 

(6,905

)

 

 

(5,811

)

Total other expenses

 

 

2,881

 

 

 

18,610

 

 

 

18,028

 

 

 

32,162

 

Income before income taxes

 

 

42,280

 

 

 

12,896

 

 

 

59,139

 

 

 

1,095

 

Income tax provision

 

 

12,639

 

 

 

8,904

 

 

 

19,458

 

 

 

6,018

 

Net income (loss)

 

$

29,641

 

 

$

3,992

 

 

$

39,681

 

 

$

(4,923

)

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

(10,381

)

 

 

351

 

 

 

(7,673

)

 

 

161

 

Total comprehensive income (loss)

 

$

19,260

 

 

$

4,343

 

 

$

32,008

 

 

$

(4,762

)

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.19

 

 

$

0.02

 

 

$

0.26

 

 

$

(0.03

)

Diluted

 

$

0.15

 

 

$

0.02

 

 

$

0.23

 

 

$

(0.03

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

154,694

 

 

 

162,378

 

 

 

155,408

 

 

 

162,338

 

Diluted

 

 

160,344

 

 

 

166,028

 

 

 

161,507

 

 

 

162,338

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

6


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

 

For the Three and Six Months Ended June 30, 2022

 

 

 

Common
Stock

 

 

Common
Stock
Contingent

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

(In thousands)

 

Shares

 

 

Amount

 

 

Consideration

 

 

Capital

 

 

Deficit

 

 

(Loss) Income

 

 

Equity

 

Balance as of December 31, 2021

 

 

156,079

 

 

$

16

 

 

$

36,575

 

 

$

309,883

 

 

$

(81,416

)

 

$

(5,094

)

 

$

259,964

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,040

 

 

 

 

 

 

10,040

 

Vesting of restricted stock units ("RSUs")

 

 

154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

7

 

 

 

 

 

 

 

 

 

93

 

 

 

 

 

 

 

 

 

93

 

Payment of employee tax withholding related to RSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(1,436

)

 

 

 

 

 

 

 

 

(1,436

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,446

 

 

 

 

 

 

 

 

 

4,446

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,708

 

 

 

2,708

 

Balance as of March 31, 2022

 

 

156,240

 

 

 

16

 

 

 

36,575

 

 

 

312,986

 

 

 

(71,376

)

 

 

(2,386

)

 

 

275,815

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,641

 

 

 

 

 

 

29,641

 

Share repurchases and retirement

 

 

(3,076

)

 

 

(1

)

 

 

 

 

 

(6,163

)

 

 

(49,117

)

 

 

 

 

 

(55,281

)

Vesting of RSUs

 

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

5

 

 

 

 

 

 

 

 

 

66

 

 

 

 

 

 

 

 

 

66

 

Payment of employee tax withholding related to RSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(203

)

 

 

 

 

 

 

 

 

(203

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,566

 

 

 

 

 

 

 

 

 

4,566

 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,381

)

 

 

(10,381

)

Balance as of June 30, 2022

 

 

153,220

 

 

$

15

 

 

$

36,575

 

 

$

311,252

 

 

$

(90,852

)

 

$

(12,767

)

 

$

244,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three and Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

 

162,269

 

 

$

16

 

 

$

36,575

 

 

$

373,620

 

 

$

(94,850

)

 

$

211

 

 

$

315,572

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,915

)

 

 

 

 

 

(8,915

)

Vesting of RSUs

 

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of employee tax withholding related to RSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(857

)

 

 

 

 

 

 

 

 

(857

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

2,908

 

 

 

 

 

 

 

 

 

2,908

 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(190

)

 

 

(190

)

Balance as of March 31, 2021

 

 

162,360

 

 

 

16

 

 

 

36,575

 

 

 

375,671

 

 

 

(103,765

)

 

 

21

 

 

 

308,518

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,992

 

 

 

 

 

 

3,992

 

Vesting of RSUs

 

 

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

7

 

 

 

 

 

 

 

 

 

87

 

 

 

 

 

 

 

 

 

87

 

Payment of employee tax withholding related to RSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(96

)

 

 

 

 

 

 

 

 

(96

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

3,573

 

 

 

 

 

 

 

 

 

3,573

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

351

 

 

 

351

 

Balance as of June 30, 2021

 

 

162,408

 

 

$

16

 

 

$

36,575

 

 

$

379,235

 

 

$

(99,773

)

 

$

372

 

 

$

316,425

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

7


 

VERRA MOBILITY CORPORATION

condensed consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Six Months Ended June 30,

 

($ in thousands)

 

2022

 

 

2021

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net income (loss)

 

$

39,681

 

 

$

(4,923

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

70,215

 

 

 

55,227

 

Amortization of deferred financing costs and discounts

 

 

2,693

 

 

 

2,722

 

Change in fair value of private placement warrants

 

 

(2,866

)

 

 

10,134

 

Tax receivable agreement liability adjustment

 

 

(965

)

 

 

1,661

 

Loss on extinguishment of debt

 

 

 

 

 

5,334

 

Credit loss expense

 

 

7,036

 

 

 

3,863

 

Deferred income taxes

 

 

(15,700

)

 

 

(825

)

Stock-based compensation

 

 

9,012

 

 

 

6,481

 

Other

 

 

760

 

 

 

257

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

(19,112

)

 

 

(42,970

)

Unbilled receivables

 

 

(4,918

)

 

 

(2,098

)

Inventory, net

 

 

(7,397

)

 

 

923

 

Prepaid expenses and other assets

 

 

8,931

 

 

 

(2,100

)

Deferred revenue

 

 

2,917

 

 

 

2,146

 

Accounts payable and other current liabilities

 

 

1,711

 

 

 

2,191

 

Other liabilities

 

 

4,377

 

 

 

(545

)

Net cash provided by operating activities

 

 

96,375

 

 

 

37,478

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Acquisition of business, net of cash and restricted cash acquired

 

 

 

 

 

(107,004

)

Payment of contingent consideration

 

 

(647

)

 

 

 

Purchases of installation and service parts and property and equipment

 

 

(22,724

)

 

 

(8,257

)

Cash proceeds from the sale of assets

 

 

72

 

 

 

159

 

Net cash used in investing activities

 

 

(23,299

)

 

 

(115,102

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Repayment on the revolver

 

 

(25,000

)

 

 

 

Borrowings of long-term debt

 

 

 

 

 

996,750

 

Repayment of long-term debt

 

 

(4,510

)

 

 

(881,281

)

Payment of debt issuance costs

 

 

(246

)

 

 

(6,507

)

Payment of debt extinguishment costs

 

 

 

 

 

(1,066

)

Share repurchases and retirement

 

 

(55,281

)

 

 

 

Proceeds from exercise of stock options

 

 

159

 

 

 

87

 

Payment of employee tax withholding related to RSUs vesting

 

 

(1,639

)

 

 

(953

)

Net cash (used in) provided by financing activities

 

 

(86,517

)

 

 

107,030

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(430

)

 

 

207

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(13,871

)

 

 

29,613

 

Cash, cash equivalents and restricted cash - beginning of period

 

 

104,432

 

 

 

120,892

 

Cash, cash equivalents and restricted cash - end of period

 

$

90,561

 

 

$

150,505

 

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents, and restricted cash
to the condensed consolidated balance sheets