10-Q
--12-31P10DP10DfalseP20D0001682745P20D5Q2NasdaqYesYesP0Yhttp://fasb.org/us-gaap/2023#DerivativeGainOnDerivativehttp://fasb.org/us-gaap/2023#DerivativeGainOnDerivative0001682745vrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001682745vrrm:ParkingSolutionsMember2022-12-310001682745vrrm:GovernmentSolutionsSegmentMember2023-06-300001682745us-gaap:ServiceMembersrt:ParentCompanyMember2023-01-012023-06-300001682745us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2023-01-012023-06-300001682745us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2023-03-310001682745vrrm:CommercialServicesAllOtherSegmentMember2022-01-012022-06-300001682745vrrm:ContingentCommonStockConsiderationMember2022-12-310001682745us-gaap:SalesRevenueNetMembervrrm:GovernmentSolutionsSegmentMembervrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:PEGreenlightHoldingsLLCMember2018-10-170001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001682745vrrm:CommercialServicesSegmentMember2023-06-300001682745vrrm:CommercialServicesSegmentMember2022-12-310001682745vrrm:GovernmentSolutionsMember2023-01-012023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMemberus-gaap:ProductMember2023-04-012023-06-300001682745us-gaap:DevelopedTechnologyRightsMember2022-12-310001682745us-gaap:FairValueInputsLevel2Membervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2022-12-310001682745us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001682745srt:BoardOfDirectorsChairmanMemberus-gaap:CommonClassAMember2022-05-122022-05-120001682745us-gaap:InterestRateSwapMember2023-01-012023-06-300001682745vrrm:CommercialServicesSegmentMembervrrm:AvisBudgetGroupIncMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001682745srt:ParentCompanyMember2023-06-300001682745us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-04-012022-06-300001682745country:AU2022-01-012022-06-300001682745us-gaap:WarrantMember2023-01-012023-06-300001682745us-gaap:CommonClassAMember2022-01-012022-06-300001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMembervrrm:MeasurementInputEstimatedFairValueMember2023-06-300001682745us-gaap:SalesRevenueNetMembervrrm:ParkingSolutionsMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745us-gaap:ServiceMembersrt:GuarantorSubsidiariesMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2023-04-012023-06-300001682745us-gaap:WarrantMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CommonClassAMember2023-01-012023-06-300001682745country:AU2023-04-012023-06-300001682745us-gaap:ServiceMember2022-01-012022-06-300001682745srt:ConsolidationEliminationsMemberus-gaap:ProductMember2023-04-012023-06-300001682745srt:BoardOfDirectorsChairmanMemberus-gaap:CommonClassAMember2022-11-300001682745vrrm:RevolverMember2023-01-012023-06-300001682745vrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001682745us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2023-01-012023-06-300001682745vrrm:ParkingSolutionsMember2021-12-310001682745srt:MinimumMembervrrm:ContingentEarnOutConditionIIMember2020-01-272020-01-270001682745vrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-01-012023-06-300001682745vrrm:GovernmentSolutionsSegmentMember2022-01-012022-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001682745us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2023-03-310001682745us-gaap:AdditionalPaidInCapitalMember2022-06-300001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2023-04-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2021-03-310001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMemberus-gaap:ProductMember2022-01-012022-06-300001682745vrrm:ContingentCommonStockConsiderationMember2022-06-300001682745vrrm:CommercialServicesDriverBilledSegmentMember2023-01-012023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMemberus-gaap:ProductMember2022-04-012022-06-300001682745us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001682745us-gaap:PrivatePlacementMember2022-01-012022-06-300001682745us-gaap:CustomerRelationshipsMember2022-01-012022-12-3100016827452022-12-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2019-04-260001682745vrrm:TermLoanAndSeniorNotesMembervrrm:OneMonthCreditSpreadMember2023-03-310001682745us-gaap:AdditionalPaidInCapitalMembervrrm:PlatinumStockholderMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-01-012023-06-300001682745us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001682745vrrm:SofrOnePointFiveZeroPercentageMembervrrm:RevolverMember2023-01-012023-06-300001682745us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2022-12-310001682745srt:GuarantorSubsidiariesMember2023-01-012023-06-300001682745vrrm:CommercialServicesDriverBilledSegmentMember2021-12-310001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2022-04-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MinimumMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMember2022-01-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-300001682745us-gaap:NonUsMember2022-01-012022-06-300001682745srt:GuarantorSubsidiariesMemberus-gaap:ProductMember2023-01-012023-06-300001682745vrrm:PlatinumStockholderMembervrrm:ContingentCommonStockConsiderationMember2023-04-012023-06-300001682745us-gaap:CommonClassAMember2022-12-310001682745us-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2023-03-310001682745vrrm:ThreeMonthCreditSpreadMembervrrm:RevolverMember2023-06-300001682745us-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2022-03-310001682745vrrm:CommercialServicesSegmentMembervrrm:HertzCorporationMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001682745vrrm:CommercialServicesAllOtherSegmentMember2023-06-3000016827452022-01-012022-06-300001682745srt:GuarantorSubsidiariesMember2023-04-012023-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:EnterpriseHoldingsIncMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MaximumMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2019-04-262019-04-260001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2023-04-012023-06-3000016827452022-01-012022-03-310001682745us-gaap:EarliestTaxYearMemberus-gaap:StateAndLocalJurisdictionMember2023-01-012023-06-300001682745vrrm:CommercialServicesAllOtherSegmentMember2022-12-310001682745srt:GuarantorSubsidiariesMemberus-gaap:ProductMember2023-04-012023-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:EnterpriseHoldingsIncMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanMember2023-08-072023-08-0700016827452023-06-300001682745vrrm:GovernmentSolutionsSegmentMember2022-06-300001682745srt:NonGuarantorSubsidiariesMember2022-12-310001682745vrrm:CommercialServicesSegmentMember2023-01-012023-06-300001682745vrrm:ParkingSolutionsMember2023-01-012023-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:AvisBudgetGroupIncMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001682745us-gaap:PerformanceSharesMember2022-04-012022-06-300001682745srt:ConsolidationEliminationsMemberus-gaap:ProductMember2023-01-012023-06-3000016827452021-12-310001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2022-04-012022-06-300001682745srt:MinimumMembervrrm:ContingentEarnOutConditionIMember2019-04-262019-04-260001682745vrrm:CommercialServicesDriverBilledSegmentMember2022-01-012022-06-300001682745vrrm:GovernmentSolutionsMember2022-12-310001682745vrrm:RevolverMember2022-12-310001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:AvisBudgetGroupIncMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIVMembervrrm:PEGreenlightHoldingsLLCMember2023-01-012023-06-300001682745us-gaap:CommonClassAMember2022-06-300001682745vrrm:MeasurementInputStockPriceMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2022-12-310001682745us-gaap:OperatingExpenseMember2022-04-012022-06-300001682745us-gaap:FairValueInputsLevel2Membervrrm:SeniorNotesDueTwoThousandAndTwentyNineMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001682745us-gaap:RetainedEarningsMember2022-01-012022-03-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentCommonStockConsiderationMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2020-01-270001682745us-gaap:ServiceMember2023-01-012023-06-300001682745vrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2022-12-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIIIMembervrrm:PEGreenlightHoldingsLLCMember2023-01-012023-06-300001682745country:GB2023-04-012023-06-300001682745us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2023-04-012023-06-300001682745us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2023-06-300001682745vrrm:CommercialServicesAllOtherSegmentMember2022-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2023-01-012023-06-300001682745us-gaap:ProductMember2023-01-012023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2022-04-012022-06-300001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2022-01-012022-03-310001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMemberus-gaap:ProductMember2022-04-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMember2023-01-012023-06-300001682745us-gaap:SalesRevenueNetMembersrt:MinimumMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2020-01-270001682745us-gaap:OperatingExpenseMember2023-04-012023-06-300001682745vrrm:CommercialServicesSegmentMembervrrm:HertzCorporationMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745us-gaap:OperatingSegmentsMember2022-01-012022-06-3000016827452023-01-012023-03-310001682745srt:ConsolidationEliminationsMember2023-04-012023-06-300001682745us-gaap:RetainedEarningsMember2023-03-310001682745country:GB2023-01-012023-06-300001682745srt:MaximumMembervrrm:ContingentEarnOutConditionIMember2019-04-262019-04-260001682745us-gaap:WarrantMemberus-gaap:CommonClassAMember2023-07-012023-08-040001682745us-gaap:InterestRateSwapMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIVMembervrrm:PEGreenlightHoldingsLLCMember2023-06-300001682745us-gaap:NoncompeteAgreementsMember2023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2022-01-012022-06-300001682745country:GB2022-01-012022-06-300001682745vrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-01-012023-06-300001682745us-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2023-04-012023-06-300001682745us-gaap:ServiceMembersrt:ParentCompanyMember2023-04-012023-06-300001682745us-gaap:SalesRevenueNetMembervrrm:GovernmentSolutionsSegmentMembervrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001682745us-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2022-12-310001682745us-gaap:OtherCustomerMember2022-01-012022-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001682745vrrm:ContingentCommonStockConsiderationMember2022-03-310001682745us-gaap:DebtInstrumentRedemptionPeriodOneMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-01-012023-06-300001682745vrrm:LessThanOrEqualToThreePointTwoZeroMembervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2023-01-012023-06-300001682745us-gaap:OperatingSegmentsMember2022-04-012022-06-300001682745us-gaap:OperatingExpenseMember2022-01-012022-06-300001682745vrrm:GovernmentSolutionsSegmentMember2022-12-310001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001682745us-gaap:CommonStockMember2022-12-310001682745us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2023-06-300001682745us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-06-300001682745vrrm:CommercialServicesDriverBilledSegmentMember2022-12-310001682745vrrm:ParkingSolutionsMember2022-12-310001682745vrrm:PrivatePlacementWarrantLiabilitiesMember2023-01-012023-06-300001682745vrrm:CommercialServicesSegmentMembervrrm:AvisBudgetGroupIncMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001682745us-gaap:DevelopedTechnologyRightsMember2022-01-012022-12-310001682745us-gaap:TrademarksMember2022-12-310001682745country:AU2022-04-012022-06-300001682745country:CA2022-01-012022-06-300001682745vrrm:CommercialServicesSegmentMembervrrm:HertzCorporationMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001682745us-gaap:OperatingSegmentsMember2023-01-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMembervrrm:GreaterThanThreePointSevenZeroMember2023-01-012023-06-300001682745vrrm:TermLoanAndSeniorNotesMembervrrm:ThreeMonthCreditSpreadMember2023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2022-01-012022-06-300001682745vrrm:ContingentlyIssuableSharesMember2023-04-012023-06-300001682745us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2022-12-310001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMemberus-gaap:MeasurementInputPriceVolatilityMember2023-06-300001682745us-gaap:NoncompeteAgreementsMember2022-12-310001682745vrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-06-300001682745us-gaap:PrivatePlacementMember2023-06-300001682745country:CA2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2023-06-300001682745us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2023-06-300001682745us-gaap:NoncompeteAgreementsMember2022-01-012022-12-310001682745vrrm:ParkingSolutionsMemberus-gaap:ObligationsMember2023-01-012023-06-300001682745us-gaap:TrademarksMember2023-06-300001682745vrrm:RevolverMembervrrm:BaseRateZeroPointFiveZeroPercentageMember2023-01-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMemberus-gaap:BaseRateMember2023-01-012023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2022-06-300001682745us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2022-12-310001682745us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExpectedDividendRateMembervrrm:PrivatePlacementWarrantLiabilitiesMember2023-06-300001682745us-gaap:DevelopedTechnologyRightsMember2023-01-012023-06-300001682745us-gaap:ProductMember2023-04-012023-06-300001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMemberus-gaap:MeasurementInputOfferedPriceMember2022-12-310001682745srt:ParentCompanyMember2023-01-012023-06-300001682745us-gaap:NonUsMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2023-03-310001682745us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-04-012023-06-300001682745us-gaap:ServiceMembersrt:NonGuarantorSubsidiariesMember2023-04-012023-06-300001682745us-gaap:TrademarksMember2022-01-012022-12-310001682745us-gaap:DebtInstrumentRedemptionPeriodTwoMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-01-012023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001682745us-gaap:ServiceMembersrt:GuarantorSubsidiariesMember2023-04-012023-06-300001682745us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001682745vrrm:CommercialServicesMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-01-012023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001682745us-gaap:TrademarksMember2023-01-012023-06-300001682745us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001682745us-gaap:ServiceMember2022-04-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIIIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-3000016827452023-01-012023-06-300001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMembervrrm:MeasurementInputEstimatedFairValueMember2022-12-310001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:EnterpriseHoldingsIncMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001682745vrrm:GovernmentSolutionsSegmentMember2021-12-310001682745us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001682745us-gaap:CommonStockMember2021-12-310001682745vrrm:ContingentCommonStockConsiderationMember2023-03-310001682745vrrm:PrivatePlacementWarrantsMember2022-01-012022-06-300001682745us-gaap:CustomerRelationshipsMember2022-12-310001682745srt:NonGuarantorSubsidiariesMemberus-gaap:ProductMember2023-04-012023-06-300001682745us-gaap:RetainedEarningsMember2023-04-012023-06-300001682745us-gaap:CommonClassAMember2023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2022-03-310001682745us-gaap:ServiceMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MinimumMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2019-04-262019-04-260001682745srt:GuarantorSubsidiariesMember2023-06-3000016827452022-06-300001682745us-gaap:AdditionalPaidInCapitalMember2023-03-310001682745vrrm:RevolverMembervrrm:SixMonthCreditSpreadMember2023-06-300001682745us-gaap:OtherCustomerMember2022-04-012022-06-3000016827452022-04-012022-06-300001682745vrrm:CommercialServicesSegmentMemberus-gaap:ServiceMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001682745us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-06-300001682745vrrm:TermLoanAndSeniorNotesMembervrrm:SixMonthCreditSpreadMember2023-06-300001682745country:CA2023-04-012023-06-300001682745srt:NonGuarantorSubsidiariesMemberus-gaap:ProductMember2023-01-012023-06-300001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMemberus-gaap:MeasurementInputOfferedPriceMember2023-06-300001682745us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2022-04-012022-06-300001682745us-gaap:SalesRevenueNetMembervrrm:GovernmentSolutionsSegmentMembervrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMemberus-gaap:ProductMember2023-01-012023-06-300001682745srt:MaximumMembervrrm:ContingentEarnOutConditionIIMember2020-01-272020-01-270001682745vrrm:ContingentlyIssuableSharesMember2023-01-012023-06-300001682745vrrm:LessThanOrEqualToThreePointSevenZeroAndGreaterThanThreePointTwoZeroMembervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2023-01-012023-06-300001682745us-gaap:LatestTaxYearMemberus-gaap:StateAndLocalJurisdictionMember2023-01-012023-06-300001682745us-gaap:NoncompeteAgreementsMember2023-01-012023-06-300001682745us-gaap:RetainedEarningsMember2022-03-310001682745vrrm:PlatinumStockholderMemberus-gaap:CommonStockMember2023-04-012023-06-300001682745us-gaap:RetainedEarningsMember2023-01-012023-03-310001682745us-gaap:CustomerRelationshipsMember2023-06-300001682745us-gaap:RetainedEarningsMember2022-12-310001682745vrrm:GovernmentSolutionsSegmentMember2022-12-310001682745vrrm:CommercialServicesSegmentMemberus-gaap:SalesRevenueNetMembervrrm:EnterpriseHoldingsIncMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001682745vrrm:CommercialServicesSegmentMembervrrm:HertzCorporationMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMemberus-gaap:ProductMember2022-01-012022-06-300001682745us-gaap:OperatingExpenseMember2023-01-012023-06-300001682745us-gaap:CorporateNonSegmentMember2023-01-012023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2022-01-012022-06-300001682745srt:NonGuarantorSubsidiariesMember2023-01-012023-06-300001682745us-gaap:CommonStockMember2023-01-012023-03-310001682745country:GB2022-04-012022-06-300001682745vrrm:ParkingSolutionsMember2022-01-012022-06-300001682745us-gaap:ProductMember2022-01-012022-06-300001682745vrrm:CommercialServicesAllOtherSegmentMember2021-12-310001682745vrrm:PrivatePlacementWarrantLiabilitiesMember2023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2023-06-300001682745vrrm:ParkingSolutionsMember2023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2022-01-012022-06-300001682745us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-06-300001682745us-gaap:CommonStockMember2022-04-012022-06-300001682745us-gaap:CorporateNonSegmentMember2023-04-012023-06-300001682745us-gaap:ServiceMembersrt:NonGuarantorSubsidiariesMember2023-01-012023-06-3000016827452021-03-012021-03-310001682745vrrm:CommercialServicesAllOtherSegmentMember2023-01-012023-06-300001682745vrrm:GovernmentSolutionsMember2023-06-300001682745srt:MaximumMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-01-012023-06-300001682745vrrm:RevolverMembervrrm:SofrOnePointTwoFivePercentageMember2023-01-012023-06-300001682745vrrm:ContingentlyIssuableSharesMember2022-04-012022-06-300001682745us-gaap:ServiceMembervrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001682745us-gaap:SubsequentEventMemberus-gaap:CommonClassAMember2023-07-260001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001682745us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2022-12-310001682745vrrm:ParkingSolutionsMember2022-06-300001682745us-gaap:FairValueInputsLevel2Membervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-06-300001682745vrrm:RevolverMembervrrm:SofrOnePointSevenFivePercentageMember2023-01-012023-06-300001682745us-gaap:PrivatePlacementMember2022-01-012022-12-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MaximumMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-07-262023-07-2600016827452021-06-300001682745us-gaap:RetainedEarningsMember2023-06-300001682745us-gaap:WarrantMemberus-gaap:CommonClassAMember2023-08-040001682745country:AU2023-01-012023-06-3000016827452023-08-040001682745us-gaap:InterestRateSwapMember2023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionVIMembervrrm:PEGreenlightHoldingsLLCMember2023-07-262023-07-260001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001682745us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001682745vrrm:GovernmentSolutionsSegmentMember2023-01-012023-06-300001682745us-gaap:ProductMember2022-04-012022-06-300001682745us-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMember2023-06-300001682745vrrm:ContingentCommonStockConsiderationMember2023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2023-01-012023-06-300001682745us-gaap:FairValueInputsLevel2Membervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001682745us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2023-06-300001682745us-gaap:PerformanceSharesMember2023-04-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2023-01-012023-06-300001682745us-gaap:CustomerRelationshipsMember2023-01-012023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMemberus-gaap:ProductMember2023-01-012023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2021-12-310001682745srt:ConsolidationEliminationsMember2023-01-012023-06-300001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MinimumMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-07-262023-07-260001682745vrrm:RevolverMembervrrm:OneMonthCreditSpreadMember2023-06-300001682745us-gaap:OtherCustomerMember2023-01-012023-06-300001682745us-gaap:SalesRevenueNetMembervrrm:GovernmentSolutionsSegmentMembervrrm:CityOfNewYorkDepartmentOfTransportationMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001682745vrrm:ContingentCommonStockConsiderationMember2021-12-310001682745us-gaap:PerformanceSharesMember2023-01-012023-06-300001682745vrrm:RevolverMember2023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2023-01-012023-06-300001682745us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMember2022-12-310001682745us-gaap:CommonClassAMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MaximumMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2020-01-272020-01-270001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2023-01-012023-06-300001682745us-gaap:ServiceMembervrrm:CommercialServicesSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2023-04-012023-06-300001682745srt:GuarantorSubsidiariesMember2022-12-310001682745us-gaap:PerformanceSharesMember2022-01-012022-06-300001682745srt:NonGuarantorSubsidiariesMember2023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMember2023-06-300001682745us-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMemberus-gaap:MeasurementInputPriceVolatilityMember2022-12-310001682745us-gaap:DevelopedTechnologyRightsMember2023-06-300001682745us-gaap:NonUsMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMember2022-04-012022-06-300001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001682745srt:ParentCompanyMember2023-04-012023-06-300001682745vrrm:ParkingSolutionsMember2023-01-012023-06-300001682745us-gaap:OtherCustomerMember2023-04-012023-06-300001682745vrrm:MeasurementInputStockPriceMemberus-gaap:FairValueInputsLevel3Membervrrm:PrivatePlacementWarrantLiabilitiesMember2023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001682745vrrm:GovernmentSolutionsMemberus-gaap:ObligationsMember2023-01-012023-06-300001682745srt:BoardOfDirectorsChairmanMemberus-gaap:CommonClassAMember2022-05-310001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-07-260001682745srt:ConsolidationEliminationsMember2022-12-3100016827452023-03-310001682745us-gaap:FairValueInputsLevel2Membervrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001682745us-gaap:CorporateNonSegmentMember2022-01-012022-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MaximumMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-142023-06-140001682745us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001682745us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMember2023-04-012023-06-300001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001682745vrrm:TermLoanAndSeniorNotesMembervrrm:TwelveMonthCreditSpreadMember2023-06-300001682745country:CA2022-04-012022-06-300001682745srt:ParentCompanyMemberus-gaap:ProductMember2023-04-012023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:ParkingSolutionsMember2023-04-012023-06-300001682745vrrm:GovernmentSolutionsSegmentMember2023-06-300001682745vrrm:ContingentlyIssuableSharesMember2022-01-012022-06-300001682745vrrm:CommercialServicesDriverBilledSegmentMember2023-06-300001682745vrrm:BaseRateZeroPointTwoFivePercentageMembervrrm:RevolverMember2023-01-012023-06-300001682745vrrm:ParkingSolutionsMember2023-06-300001682745us-gaap:RetainedEarningsMember2021-12-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionVIMembervrrm:PEGreenlightHoldingsLLCMember2020-01-272020-01-270001682745us-gaap:ServiceMembersrt:ConsolidationEliminationsMember2023-01-012023-06-300001682745srt:ConsolidationEliminationsMember2023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MaximumMember2023-01-012023-06-300001682745us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-06-300001682745us-gaap:RetainedEarningsMember2022-06-300001682745vrrm:PrivatePlacementWarrantsMember2023-01-012023-06-300001682745srt:ParentCompanyMemberus-gaap:ProductMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MinimumMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-142023-06-140001682745us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001682745vrrm:GovernmentSolutionsSegmentMember2023-01-012023-06-300001682745us-gaap:WarrantMember2023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMember2021-12-310001682745us-gaap:SalesRevenueNetMembervrrm:GovernmentSolutionsMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001682745us-gaap:RetainedEarningsMember2022-04-012022-06-300001682745us-gaap:DebtInstrumentRedemptionPeriodThreeMembervrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2023-01-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:ContingentEarnOutConditionIMembervrrm:PEGreenlightHoldingsLLCMember2023-06-140001682745srt:ParentCompanyMember2022-12-310001682745vrrm:CommercialServicesMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-06-300001682745us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExpectedDividendRateMembervrrm:PrivatePlacementWarrantLiabilitiesMember2022-12-310001682745vrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2021-03-310001682745vrrm:PrivatePlacementWarrantsMember2023-04-012023-06-300001682745us-gaap:ServiceMemberus-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMember2023-04-012023-06-300001682745us-gaap:OperatingSegmentsMembervrrm:GovernmentSolutionsSegmentMemberus-gaap:ProductMember2023-04-012023-06-300001682745us-gaap:OperatingSegmentsMember2023-04-012023-06-300001682745vrrm:TwoThousandAndTwentyOneTermLoanDueTwoThousandAndTwentyEightMembervrrm:LiborMember2023-01-012023-06-300001682745vrrm:PrivatePlacementWarrantsMember2022-04-012022-06-3000016827452022-03-310001682745srt:NonGuarantorSubsidiariesMember2023-04-012023-06-300001682745us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001682745us-gaap:ServiceMembersrt:ConsolidationEliminationsMember2023-04-012023-06-300001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembervrrm:EarnOutAgreementMembervrrm:PEGreenlightHoldingsLLCMember2023-06-300001682745vrrm:BaseRateZeroPointSevenFivePercentageMembervrrm:RevolverMember2023-01-012023-06-3000016827452023-04-012023-06-300001682745us-gaap:AdditionalPaidInCapitalMember2022-12-310001682745vrrm:CommercialServicesDriverBilledSegmentMember2022-06-300001682745us-gaap:NonUsMember2022-04-012022-06-300001682745us-gaap:CommonStockMember2023-06-300001682745vrrm:SeniorNotesDueTwoThousandAndTwentyNineMember2021-03-012021-03-310001682745vrrm:VerraMobilityHoldingsLLCBusinessCombinationMembersrt:MinimumMembervrrm:ContingentEarnOutConditionIIMembervrrm:PEGreenlightHoldingsLLCMember2020-01-272020-01-27xbrli:purexbrli:sharesvrrm:Segmentiso4217:USDxbrli:sharesvrrm:Customeriso4217:USDutr:Y

 

 

 

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, 2023

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 4, 2023, there were 169,670,795 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, 2023

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

 

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

 

31

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

42

Item 4. Controls and Procedures

 

43

PART II—OTHER INFORMATION

 

44

Item 1. Legal Proceedings

 

44

Item 1A. Risk Factors

 

44

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

 

44

Item 3. Defaults Upon Senior Securities

 

45

Item 4. Mine Safety Disclosures

 

45

Item 5. Other Information

 

45

Item 6. Exhibits

 

46

SIGNATURES

 

48

 

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, 2022. 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:

customer concentration in our Commercial Services and Government Solutions segments;
our ability to manage our substantial level of indebtedness;
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;
our ability to keep up with technological developments and changing customer preferences;
our ability to compete in a highly competitive and rapidly evolving market;
decreased interest in outsourcing from our customers;
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;
risks and uncertainties related to our share repurchase program;
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 litigation, disputes and regulatory investigations;
our ability to properly perform under our contracts and otherwise satisfy our customers; and
the impact of COVID-19 on our business and results of operations.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will occur. Moreover, we operate in a very competitive and rapidly changing environment and 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. 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.

3


 

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,
2023

 

 

December 31,
2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

210,083

 

 

$

105,204

 

Restricted cash

 

 

3,416

 

 

 

3,911

 

Accounts receivable (net of allowance for credit losses of $20.1 million and
$
15.9 million at June 30, 2023 and December 31, 2022, respectively)

 

 

179,944

 

 

 

163,786

 

Unbilled receivables

 

 

36,843

 

 

 

30,782

 

Inventory

 

 

19,791

 

 

 

19,307

 

Prepaid expenses and other current assets

 

 

92,509

 

 

 

39,604

 

Total current assets

 

 

542,586

 

 

 

362,594

 

Installation and service parts, net

 

 

25,393

 

 

 

22,923

 

Property and equipment, net

 

 

114,467

 

 

 

109,775

 

Operating lease assets

 

 

37,170

 

 

 

37,593

 

Intangible assets, net

 

 

335,781

 

 

 

377,420

 

Goodwill

 

 

835,323

 

 

 

833,480

 

Other non-current assets

 

 

15,440

 

 

 

12,484

 

Total assets

 

$

1,906,160

 

 

$

1,756,269

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

78,410

 

 

$

79,869

 

Deferred revenue

 

 

36,744

 

 

 

31,164

 

Accrued liabilities

 

 

51,642

 

 

 

48,847

 

Tax receivable agreement liability, current portion

 

 

4,994

 

 

 

4,994

 

Current portion of long-term debt

 

 

9,019

 

 

 

21,935

 

Total current liabilities

 

 

180,809

 

 

 

186,809

 

Long-term debt, net of current portion

 

 

1,129,692

 

 

 

1,190,045

 

Operating lease liabilities, net of current portion

 

 

32,331

 

 

 

33,362

 

Tax receivable agreement liability, net of current portion

 

 

50,900

 

 

 

50,900

 

Private placement warrant liabilities

 

 

5,430

 

 

 

24,066

 

Asset retirement obligations

 

 

13,729

 

 

 

12,993

 

Deferred tax liabilities, net

 

 

20,583

 

 

 

21,149

 

Other long-term liabilities

 

 

7,386

 

 

 

5,875

 

Total liabilities

 

 

1,440,860

 

 

 

1,525,199

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value

 

 

 

 

 

 

Common stock, $0.0001 par value

 

 

17

 

 

 

15

 

Common stock contingent consideration

 

 

18,287

 

 

 

36,575

 

Additional paid-in capital

 

 

533,626

 

 

 

305,423

 

Accumulated deficit

 

 

(74,393

)

 

 

(98,078

)

Accumulated other comprehensive loss

 

 

(12,237

)

 

 

(12,865

)

Total stockholders' equity

 

 

465,300

 

 

 

231,070

 

Total liabilities and stockholders' equity

 

$

1,906,160

 

 

$

1,756,269

 

 

See accompanying Notes to the Condensed Consolidated Financial Statements.

5


 

VERRA MOBILITY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

($ in thousands, except per share data)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Service revenue

 

$

196,050

 

 

$

174,502

 

 

$

380,748

 

 

$

335,636

 

Product sales

 

 

8,411

 

 

 

12,985

 

 

 

15,616

 

 

 

22,236

 

Total revenue

 

 

204,461

 

 

 

187,487

 

 

 

396,364

 

 

 

357,872

 

Cost of service revenue

 

 

4,338

 

 

 

3,713

 

 

 

8,568

 

 

 

7,492

 

Cost of product sales

 

 

5,962

 

 

 

8,326

 

 

 

11,345

 

 

 

14,321

 

Operating expenses

 

 

65,657

 

 

 

55,196

 

 

 

127,500

 

 

 

106,259

 

Selling, general and administrative expenses

 

 

43,205

 

 

 

40,152

 

 

 

83,218

 

 

 

81,787

 

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

 

 

29,088

 

 

 

34,939

 

 

 

59,421

 

 

 

70,846

 

Total costs and expenses

 

 

148,250

 

 

 

142,326

 

 

 

290,052

 

 

 

280,705

 

Income from operations

 

 

56,211

 

 

 

45,161

 

 

 

106,312

 

 

 

77,167

 

Interest expense, net

 

 

22,771

 

 

 

14,485

 

 

 

45,458

 

 

 

28,764

 

Change in fair value of private placement warrants

 

 

10,918

 

 

 

(6,600

)

 

 

25,519

 

 

 

(2,866

)

Tax receivable agreement liability adjustment

 

 

 

 

 

(965

)

 

 

 

 

 

(965

)

Gain on interest rate swap

 

 

(4,805

)

 

 

 

 

 

(2,007

)

 

 

 

Loss on extinguishment of debt

 

 

209

 

 

 

 

 

 

1,558

 

 

 

 

Other income, net

 

 

(4,512

)

 

 

(4,039

)

 

 

(8,268

)

 

 

(6,905

)

Total other expenses

 

 

24,581

 

 

 

2,881

 

 

 

62,260

 

 

 

18,028

 

Income before income taxes

 

 

31,630

 

 

 

42,280

 

 

 

44,052

 

 

 

59,139

 

Income tax provision

 

 

12,522

 

 

 

12,639

 

 

 

20,367

 

 

 

19,458

 

Net income

 

$

19,108

 

 

$

29,641

 

 

$

23,685

 

 

$

39,681

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

718

 

 

 

(10,381

)

 

 

628

 

 

 

(7,673

)

Total comprehensive income

 

$

19,826

 

 

$

19,260

 

 

$

24,313

 

 

$

32,008

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.13

 

 

$

0.19

 

 

$

0.16

 

 

$

0.26

 

Diluted

 

$

0.13

 

 

$

0.15

 

 

$

0.16

 

 

$

0.23

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

151,132

 

 

 

154,694

 

 

 

150,151

 

 

 

155,408

 

Diluted

 

 

152,590

 

 

 

160,344

 

 

 

151,586

 

 

 

161,507

 

 

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, 2023

 

 

 

Common
Stock

 

 

Common
Stock
Contingent

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Accumulated
Other
Comprehensive

 

 

Total
Stockholders'

 

(In thousands)

 

Shares

 

 

Amount

 

 

Consideration

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

Equity

 

Balance as of December 31, 2022

 

 

148,962

 

 

$

15

 

 

$

36,575

 

 

$

305,423

 

 

$

(98,078

)

 

$

(12,865

)

 

$

231,070

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,577

 

 

 

 

 

 

4,577

 

Vesting of restricted stock units ("RSUs") and performance share units ("PSUs")

 

 

313

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

53

 

 

 

 

 

 

 

 

 

699

 

 

 

 

 

 

 

 

 

699

 

Payment of employee tax withholding related to RSUs and PSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(2,526

)

 

 

 

 

 

 

 

 

(2,526

)

Exercise of warrants

 

 

633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

3,378

 

 

 

 

 

 

 

 

 

3,378

 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(90

)

 

 

(90

)

Balance as of March 31, 2023

 

 

149,961

 

 

 

15

 

 

 

36,575

 

 

 

306,974

 

 

 

(93,501

)

 

 

(12,955

)

 

 

237,108

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,108

 

 

 

 

 

 

19,108

 

Earn-out shares issued to Platinum Stockholder

 

 

2,500

 

 

 

 

 

 

(18,288

)

 

 

18,288

 

 

 

 

 

 

 

 

 

 

Vesting of RSUs and PSUs

 

 

121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

127

 

 

 

 

 

 

 

 

 

1,689

 

 

 

 

 

 

 

 

 

1,689

 

Payment of employee tax withholding related to RSUs and PSUs vesting

 

 

 

 

 

 

 

 

 

 

 

(502

)

 

 

 

 

 

 

 

 

(502

)

Exercise of warrants

 

 

14,208

 

 

 

2

 

 

 

 

 

 

202,652

 

 

 

 

 

 

 

 

 

202,654

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

4,525

 

 

 

 

 

 

 

 

 

4,525

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

718