Verra Mobility Q3 2020 Earnings Report
Key Takeaways
Verra Mobility reported a decrease in revenue for Q3 2020 compared to Q3 2019, but demonstrated strong cash flow generation and a return to profitability. The company's Commercial Services segment was negatively impacted by COVID-19, while the Government Solutions segment continued to show strength.
Total revenue for Q3 2020 was $96.9 million, a 24.4% decrease compared to Q3 2019.
Net income for Q3 2020 was $6.7 million, or $0.04 per share.
Adjusted EBITDA was $53.5 million for Q3 2020, compared to $70.8 million in the same period last year.
Government Solutions segment revenue grew 4% over the same period in 2019.
Verra Mobility
Verra Mobility
Verra Mobility Revenue by Segment
Forward Guidance
This press release contains forward-looking statements which address the Company’s expected future business and financial performance, and may contain words such as “goal,” “target,” “future,” “estimate,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “project,” “may,” “should,” “will” or similar expressions.
Positive Outlook
- Benefits of the Company’s strategic acquisitions
- Changes in the market for our products and services
- Expected operating results, such as revenue growth
- Expansion plans and opportunities
- Earnings guidance related to 2020 financial and operational metrics
Challenges Ahead
- the disruption to our business and results of operations as a result of the COVID-19 pandemic
- the impact of the COVID-19 pandemic on our revenues from key customers in the rental car industry and from photo enforcement programs
- customer concentration in our Commercial Services and Government Solutions segments
- decreases in the prevalence of automated photo enforcement or the use of tolling
- risks and uncertainties related to our government contracts, including but not limited to administrative hurdles, legislative changes, termination rights, audits and investigations
Revenue & Expenses
Visualization of income flow from segment revenue to net income