NASDAQ$VRRM

Verra Mobility Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a strong second quarter driven by a surge in leisure travel and growth in both business segments.

Verra Mobility reported a strong second quarter with revenue of $128.7 million, a 61% increase compared to the same period last year. The Commercial Services segment grew triple digits year-over-year, and the Government Solutions segment benefited from the NYC school zone speed camera program. Adjusted EBITDA also saw triple-digit year-over-year growth, with margins improving to approximately 53%.

  • Second quarter revenue of $128.7 million, a 61% increase compared to Q2 2020.
  • Net income for the second quarter of 2021 was $4.0 million, or $0.02 per share.
  • Adjusted EPS for the second quarter of 2021 was $0.10 per share compared to $0.07 per share for the second quarter of 2020.
  • Adjusted EBITDA was $68.6 million for the second quarter of 2021, compared to $27.6 million for the same period last year.

Headline financials

Total Revenue

$129M

Previous: $79.8M+61.2%
EPS (adj)

$0.10

Previous: -$0.10+200.0%
Adjusted EBITDA

$68.6M

Previous: $27.6M+148.6%
Adjusted EBITDA Margin

53.0%

No prior period
Capital Expenditures

-$8.26M

Previous: -$14.3M+42.3%
Free Cash Flow

-$4.27M

Previous: -$29.7M+85.6%
Net Income

$3.99M

Previous: -$15.4M+125.9%
Operating Income

$31.5M

Previous: -$6.95M+553.3%
Gross Profit

$92.2M

Previous: $53.1M+73.6%
Cash & Equivalents

$147M

Previous: $113M+30.1%
Total Assets

$1.56B

Previous: $1.36B+15.1%
Stock-Based Comp

$3.57M

Previous: $3.27M+9.2%

Revenue & EPS history

Verra Mobility · Revenue · Quarterly

$129M

Q2 2021+61.2%vs Q2 2020
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Verra Mobility · $129M total across 2 segments · Q2 2021

  • Commercial Services
    $66.5M+143.6%
  • Government Solutions
    $62.2M+18.5%

Forward guidance

Verra Mobility expects consolidated revenue between $510 million and $530 million, and consolidated Adjusted EBITDA between $240 million and $245 million for the full year 2021, including contribution from Redflex.

Tailwinds

  • Consolidated revenue is expected to increase 30% to 35% from 2020 full year revenue.
  • Consolidated revenue is expected to increase 14% to 18% compared to 2019 full year revenue.
  • Consolidated Adjusted EBITDA is expected to be in the range of $240 to $245 million.
  • Stronger growth expected in the second half of 2021.
  • Improved business metrics and favorable travel trends.

Headwinds

  • Guidance is subject to change as a variety of factors can affect actual results.
  • Impact of payment delays related to the outstanding receivables with the City of New York Department of Transportation (NYCDOT).
  • Disruption to business and results of operations as a result of the COVID-19 pandemic.
  • Impact of the COVID-19 pandemic on revenues from key customers in the rental car industry and from photo enforcement programs.
  • Customer concentration in Commercial Services and Government Solutions segments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.0%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-0.4%

Avg return

30 days after

51%

18 / 35 earnings

Positive

+9.4%

Q1 2024

Best reaction

-18.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.2%-4.8%-70.3%
Q4 2025-13.6%-10.7%-25.8%
Q3 2025-2.5%-3.0%-7.1%
Q1 2025+9.1%+6.0%+9.7%
Q4 2024-11.8%-16.5%-22.2%
Q3 2024-12.2%-12.2%-10.1%
Q2 2024+0.6%-0.6%-4.3%
Q1 2024+9.4%+11.9%+12.4%
Q4 2023+6.1%+0.2%+15.8%
Q3 2023+4.6%+2.5%+8.2%
Q2 2023-1.4%-5.4%-13.5%
Q1 2023+6.1%+4.5%+12.7%
Q4 2022+3.0%+2.0%-1.8%
Q3 2022-18.7%-22.3%-5.9%
Q2 2022+4.7%-1.3%-4.0%
Q1 2022+7.2%+10.3%+21.7%
Q4 2021-1.9%-6.5%+2.4%
Q3 2021+0.1%+1.4%-8.1%
Q2 2021+6.0%+4.4%-1.8%
Q1 2021-0.2%+1.5%+1.9%
Q4 2020-2.5%+2.2%-5.0%
Q3 2020+0.9%+18.5%+28.0%
Q2 2020+3.2%+2.6%-6.7%
Q1 2020+5.0%+6.0%+30.3%
Q4 2019-3.9%-20.4%-58.5%
Q3 2019+2.7%+0.6%-2.9%
Q2 2019+6.5%+8.6%+10.4%
Q1 2019+3.0%+4.7%+13.6%
Q4 2017-1.9%-2.7%+25.1%
Q2 2018-1.9%-2.7%+25.1%
Q4 2018-1.9%-2.7%+25.1%
Q3 2018+4.4%+3.7%-1.8%
Q1 2018+0.0%-0.2%-0.1%
Q2 2017+0.0%-0.5%-1.1%
Q1 2017-5.6%-3.2%-4.0%

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