VRRM - Earnings call transcript Q2 2021 | Verra Mobility Corporation

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Operator

Good day. And welcome to the Verra Mobility Corporation Updated Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Saja Daudi, Vice President, Investor Relations. Please go ahead, sir.

Sajid Daudi

you. Thank welcome Second and Call. XXXX Verra to afternoon, Quarter Mobility's Earnings Good we'll announced market after results discussing closed. our Today, the issued in be press release the With Officer. Verra David and me Chiodo, call Executive Tricia Financial Chief Officer; Roberts, Chief our on the Mobility's are with followed by begin open then Tricia, remarks for up call Q&A. prepared will and we'll David the

growth to the we'll make plans that existing forward-looking, considered be concerning new call, other statements our business customers ability During statements plans including execute to strategy, and acquire our regarding on may maintain and related to our statements and our prospects. our

statements not upcoming. words or such These be as of considered Forward-looking X, date. as as or our identified statements. reflect August anticipate only our undertake update view views we often to may subsequent no obligation statements of revise any be should we We forward-looking and with any today, expect, XXXX,

guarantees to cause risks performance not are future and of statements results actual the uncertainties subject are from and differ to promises our Forward-looking materially expectations. of variety that or a could

that discussion factors and website Form in sec.gov. section at annual and which the website XX-Q, on of on risks on SEC our our are refer report affect at those Form other quarterly material Investor our report results, important on available contained the XX-K/A a to of actual For please could Relations ir.verramobility.com and

with non-GAAP me financial at issued the located call in reconciliation to let today, the will included and after our will A Finally, to make sec.gov. measures. website we on David. at website close call, the certain GAAP we again the during release And SEC's measures on to that, - of press over turn our is ir.verramobility.com non-GAAP refer

David Roberts

This with million, and joining pre-pandemic adjusted Thanks, second performance year-over-year rollout at mirrors during Sajid. delivered of revenue And million reopening strong came to sharp in rebound travel. as very $XX you, Consolidated today. resulted strong results performance leisure XXXX. $XXX We nearly in in the quarter a EBITDA quarter revenue. as our flow the XX% of the vaccine grew for economies exceptional impact in of essentially through us on third XX% the positive peak call everyone, or the thank

expected cash anticipated With encouraging half businesses. many been second the business business months have economic occurring and year we growth robust faster than a flow the calendar recovery last The segments at and both for reintroducing a XX perspective. are and XXXX initially free trends challenging we profitability from expect guidance uniquely of

great on challenges team managing our objectives. has remaining the a job and through focused done However, our strategic

and plan, as we transportation. vision to strengthening year. to and With benefits we reopening our As we the our be remain, of leader internationally our core in actions continue taken execute deliver last on offerings expanding returning, economies our are priorities global scale against seeing smart our our the footprint strategic

the XXXX first XXXX, we to half over of delivered half and compared For of million, over X% the $XXX XXXX. first the XX% approximately growth have representing revenue of six of just first of months

of Services half the first integrated improved EBITDA demand give us solutions core quarter was for maintain our to is XX%. and the the travel strength by travel from which the ability beyond. led year our rental the in of industry. momentum of segment, The in the with positively The XXXX adoption this that impacting of Commercial leverage and operating strength second half and a benefited intelligent car of strong this seeing continued our also data-driven margins are confidence We approximately business

expectations. million a While key with nearly was adjusted metrics of and of $XX operating broad-based overall delivered volumes all revenue still representing of are million, strength XX%. below levels, segment we margin exceeding $XX segment pre-pandemic The EBITDA roughly

to continue macro tailwind a of positive addition, powerful tolling our business. provide to cashless that the In trends the like momentum supports transition

the rates tolling During well several moved all cashless, authorities which the for to our bodes across solutions. of country the tolling adoption pandemic,

we our We mix Despite persist to to the a being currently known effectively the the to industry rental see the is continue year. through product anticipate challenges leisure level of balance XXXX. higher up to car demand are the travel We coming that re-fleeting believe the and with demand. faced industry, a leisure we business travelers, from expect return travel in primarily creative by racks keep which as of trend

title service XXX%. primarily volume In nearly This increase the is contributions business X% FMCs. commercial registration related RAC-related segment, of fact, activity to which an some represents from robust sequential saw and of in our revenue growth approximately a with

make We the pandemic-related continent. progress prevalent shutdowns in continue across as the remain to steady Europe

strategic objective as solution kind, pan-European ourselves first fully management its to a of toll Our establish outsourced is provider.

can look in scale especially us, as very and I'm demand when environment. need with Overall, our to customers continue for We build we pleased quickly a our a opportunities how performance foundation there. we footprint this quarter, demonstrates expand fluid which our

execution disciplined our Our relationships quarter testament to execution. strong and is the this of customer model, resilience a business

product on receivable Tricia also City City pace program report results, our service we and driving increased the with healthy the New patterns. and EBITDA and started by this additional to zone payments share the the York the Revenue for the approximately have Adjusted zone Sequentially, school $XX of at New installs margins camera timing expect $XX York million, over business driven year came year-over-year glad of will by this roughly delivered cash at second million, speed representing toward impact of payments, in Solutions details came on current receivable. Government XX%. of outstanding the I'm collecting second to shortly. school of about just half receiving that Our we growth in new million good City grew programs. during speed grew Based flow the benefits make progress $XX and XX%. exceptional New revenue quarter revenue representing the for of XX%, York

York City the And on the we year, additional installed further our currently reminder, schools the expansion they a by As of are which XXX deploying. announced an Transportation program we its this customer Through XXXX. in camera of expanded earlier program long Department standing cameras, speed X,XXX in New XXXX, cameras.

second cameras XXX rapid we during the remaining target XX% second of of revenue. of installed the install of and York growth part Government the program, majority cameras represents on XXXX. are the quarter, the the now half Solutions to a City portfolio During in to roughly New our speed Thanks

the and quarter, off the closed integration also efforts start. a During great Redflex the to we are acquisition

of in We have established are and aligning business and unit team new midst a priorities the the goals. leadership

perspective, with process, and synergies the while unique Australia's From speed portfolio stages significant combination enhanced of revenue cost we Redflex multi-year channels, technology a believe to Redflex integration New creates create Wales. camera some While in and still in for a the vehicle-based opportunities which early new opportunities South customers. us recently an the the our revenue for program US large in internationally. The mobile operates transport will and expanded renewed team for providing

we US, offer complement our railroad now speed can the unique and zone construction pre-existing crossing in Additionally, offerings. programs, which

our very expected excited to accelerate international about We strategy. the acquisition strategic and are

as our pursuing in our on realign our are the and well opportunities we As as Georgia CrossingGuard Virginia remains we offering. greenfield focus teams,

York, be various and anticipate remain and a in fall, engaged Our in second CrossingGuard back a cameras. XXXX. have activity to districts X,XXX states. session cameras of teams Georgia install program in the opportunity specifically with We in the our we pipeline York, Washington of for New half school we and where opportunities the of our in municipalities pickup plan remain expected respective With their strong, in potential to XXX New schools during

during renewal Florida including customers high and consistently Arizona, in Additionally, we key the maintained rates quarter, Washington. Georgia,

we announced $XXX new a today share approved repurchase Finally, Board that program. our million

through first to strategy and shareholders. then investing for focused growth allocation capital returning cash M&A always Our on has excess

are reintroducing enhance the COVID variant remain made new we the business more of we both half segments, With year. to we detail. However, represents that in for our such attractive outlook capital the fact situation and improving of are guidance let we a year the for calendar walk long-term of creation. valuations, excess the me closely believe that our poised We well we Overall, of reflects profitability could create it earlier new current in anticipated growth as to our repurchase expectations first from happy ahead the any with business With to the shareholder monitoring progress value that, opportunity second of strong over an impacts. redeploy are the are outlook for investment Tricia and the hand and and half through uncertainties shares during the XXXX. cognizant financials an

Patricia Chiodo

that provides to everyone. provided and earnings call good more Thanks, insight provide second then has the for short to afternoon, we'll the I'll results. from financial We and GAAP David. our quarter of deck non-GAAP on website overview detailed reconciliations a a open the up performance, questions. quarter some And

outlines two, fleet adjusted the rental and following along management tolling, US. services. you're If which business rack companies processing Commercial in title and for the slide in provides consumer earnings revenue and violations companies Europe, I'm in car services the and offers and tolling And EBITDA to segment. deck, segment This Services violation and performance registration on processes

to of of million volumes. the US continue revenue positive trends drove revenue recovery of the leisure than increase trends $XX billable without volumes driving the performance travel short higher over XXXX. agreement, year, prior improved Services usage of generated days sharp fees as in Commercial And Our have toll the $XX.X million, previous we car There A same in and in more see rental an QX just rental the $XX.X is toll more years. throughout million These quarter. delivered the segment recovery rental of in quarter strong patterns. improved full for in

level half albeit believe to continue the of increased EBITDA rental and from the last year-over-year the to in This return continue million through as $X.X EBITDA that our that for very of and flow of this travel strong a improve business million XX%. strong function anticipate $XX.X taken during actions second quarter of at will year. lower a - margins to year. volumes strategic adjusted XXXX, Adjusted We

as are lower and capture the in be we next We ramping to slightly expect revenue would some to up cycle two returns, costs margins quarters. it

Turning next slide. the to

Government the operates You results of Solutions school municipalities districts. the for and see counties, This segment enforcement photo business. programs

delivered improving Solutions second million $XX.X $X.X Our revenue of Government the in business million year-over-year. quarter,

it's of that's year. prior revenue, total $XX.X revenue programs primarily enforcement generate and is of service our is school I XX.X% and sources for nearly speed installing comprised revenue speed the As this in camera the of where $XX the service is which important first over York increased the of XXXX selling school quarter revenue. systems. monthly revenue The a about XX.X% for was driven same expansion the we expansion, we're receiving of installed million or million, zone photo these grew from City the the growth two talk operation we service reminder, by by product speed that that think segments year-over-year. revenue which revenue growth fee The throughout the separately. portfolio we segment quarter the And zone for New Service program, related now which cameras to XXX in in

increase as volumes In the in by growth revenue number our of segment addition, the approximately quarter traffic this toward growth broad increased in an based. contributed XX%. cameras was The generating

program $XX.X of All $X.X note that revenue XX% of XX York or same prior We $XX million quarter, City period business of last in Product New days declined Also year. quarter from the the year-over-year compared quarter this cameras installed experienced to we Redflex. of contributions lines same in growth. related speed double-digit the our year. for from million school reflect the XXX million zone XXX the to

New expect York majority install at we the the half mentioned, for an XXXX. during City to second the of the David of accelerated As program pace cameras

over term, upstream Although with we supply the constraints working chain any very the parts. our suppliers don't we are and anticipate monitoring closely near build

install to with the approximately $XX.X balance the the quarter. year, the in from of prior calendar the prior the segment the we million first of this Adjusted in for higher of increased year margins are cameras quarter. to targeting strong of XX.X%, million remain margins for expected cameras year, are this XX the Separately, rest anticipate for business quarter modeling for year that were XX.X% product balance we XXXX. year. Adjusted EBITDA we for the revenue $X.X in EBITDA up While current of the

approximately $X.X the As Redflex. on items, achieved a previously to on progress Based is run roughly earlier David integration making million are we've $XX efforts stated half mentioned, of on the good range This basis. identified of with million. synergies $X we million rate

the business. diligently working early additional opportunities to While are teams in process, our it's to still the streamline identify

As Solutions stated XX% the normal a which much runs margin have in Government and XX% Over cycle. we time, profile in to business, past, adjusted lower margins between to Government EBITDA total relative currently has a expect which unit Redflex line of their move in business, Solutions of American we revenues disciplined business through and about process their improvements represents North XX% combination execution. with the our

million next of the for for an the $XXX.X increase of same a discussed time quarter slide. to phenomenal quarter. We quarter, Turning the The the year. revenue this This $XX.X the businesses prior in just the record were which of given for the second second results last period represents company, new total for generated results combined where the year. show consolidated we we is million

from EBITDA million of of the and year Our million performance our hard quarter quarter. of by Adjusted our work prior increased highlights business resilience model $XX team. $XX.X the in the the

items loss provision the for the second of EBITDA of representing XX% excludes compared which period year flow-through second for XX%, non-cash quarter reflecting the expenses. year. the same $XX.X $X private same per York exists net EPS, representing the of quarter margins change approximately from receivable. capital talked tax prior Adjusted of a York. net rate share quarter leverage the rate to and was of higher We've -- nearly of This to the reported warrants. Company generated primarily the $XX.X operating city our of -- net were The quarter operating represents last the resulted million, Transportation lot XX% was of for the the placement with differences The rate receivable owed was First to amortization strategic permanent million in compensation $XXX actions XX%. our effective compared and income XXXX. effective EBITDA - to $X New related to non-cash change the tax a impact The and model. adjustments effective of quarter in for period year. company activities cash in adjusted end million $X.XX improvements was prior tax share service that XX%. of sorry, during tax and taken the at The $XX.X us flow stock-based current $X.XX the in quarter in quarter million, an per million other accounts of the due compared market-to-market about in the in from million of balance New working outstanding At impact of outstanding our June, on Department

the end bringing momentum cash is to year, an on direction. balance we the calendar the of by just at outstanding $XX of moving balance payments, a additional in on than larger Based strong large $XX pace this right for our Although services the contracts date New million position. put of slightly us We July the receivables quarter very and current end the received X at the $XX in the at aged would and the billed products on the QX, the anticipate of City, collected current million $XX.X call. million We being in on is million York receivables. which

we million of hand. had of billion of $XXX.X debt As of cash $X June on net XX,

Our net adjusted million. which million, $XXX.X $XXX.X XX X.Xx debt of was was months trailing EBITDA

the by an year. X.X and expect to in ratio quickly we to Given delever end expect times leverage our be calendar the improving around scenario, EBITDA of

to company $XXX decision repurchase excess the by our our first Finally, strong million. ever anticipated the of led Board program in cash to the very up position to shareholders capital to return form the the by share

value. significant investing in As stock felt would returns-focused a unlock shareholder our company, we

a months, execute acquisitions. ample strategic over macro position continue of the favorable and to half the pursue trends have us the teams we summary, complete program, our strategically to to expect will for liquidity which second We XX of and disciplined In next this XXXX. execution strong well

such, reintroducing are As guidance. we

to which to includes results full XX% are and of range we margins $XXX guidance. XX% year million, our based or million million growth, the range be the $XXX to and of of of For Redflex of in to total in growth the on XX% million, over revenue midpoint $XXX expect $XX we adjusted $XXX we million to to million of expect range $XX EBITDA in Included XXXX, EBITDA the sales of in that XXXX. the be contributions product the represents pre-pandemic from adjusted expecting

believe We questions. for and as business continue positioned volatility to operating and I'll the has through the in the to manage growth capture current with open discipline returns demand that serve. their for remains up to mobility long the our And lines industries that, well we term underlying an

Operator

Cremo our Suisse. Thank you. question first Instructions] take Nik We'll [Operator Credit from today with

Nik Cremo

Thank Redflex. congrats And on question. my including taking results, you the for strong

implies can than days my follow-up, and we share that wondering at you was RAC. First, car Thank services for I back if could then EBITDA the the Redflex what noticed And contributions explain the factors drove that just in the you commercial was revenue half? as guidance revenue differential? And you. that faster the rental growing

Patricia Chiodo

problem Yes. EBITDA being revenue of that in Sure. the call - just We're contribution the an the from about to half all. the $XX and overall back million at Redflex it perspective. year right No thinking around

range got number on number of be somewhere I I've the have page. what Let the it in would Actually, don't me It'd see to here like around that be. be me. $X front million - if that

for it, So roughly those a XX% dollars. flow-through call on

Nik Cremo

Thank Okay, great. you.

Patricia Chiodo

was what question? I your then other And apologize?

Nik Cremo

growing than faster rents? Why revenue is the

Patricia Chiodo

Yes.

and rental volume that are these their fact for profitability the is And the behavior seeing that revenue we're by growing travelers really results the really the patterns in driving driving. underlying So driving got car leisure than faster we've revenue are us. that

the agreements are higher dollar They're billable fees, administration running more value tools more that taking higher they're creates and running well. that tolls, longer period. in as time toll usage the which actual they're rental So

So of are those nice as all recover to allowing quarter some well. And of business T&R a had David the said, other nicely. us very things our businesses, as

Nik Cremo

Okay, great. That makes sense. Thank you.

David Roberts

Yes.

Operator

CJS Next, Moore we'll Daniel hear Securities. with from

Daniel Moore

afternoon, Good and David questions. the Thanks Tricia. taking for

David Roberts

Dan. Hey,

Daniel Moore

start The what of momentum and was the July? remainder the trajectory building that roughly the guidance me profitability for And quarter the cadence. and fiscal conservative? monthly with of maybe is for kind of cause compared implies Let Wondering flat the cadence EBITDA whether could be just into to that year to QX.

Patricia Chiodo

out we've QX went the than better And to that as definitely half half momentum quarter. true. said true this would there's would that's hold and think that we've with than going I QX be still be we building that's first through back the what better held and

should taper think Solutions should continue You commercial QX and Government Whereas about not into but expect we as service revenue, the throughout business, into QX off peak move to revenue sequentially well. grow to services much being the as with we where it then the of as then QX. so QX

Daniel Moore

to factors about kind prepared If order investment alluded would Redflex? of an Perfect. the Is to those color it relative Thanks. of in implied spend incredibly Any margin, lower rank but just these comp. XX%, you a increased And difficult the it guide? Is you then implied great? mix? had guide little margin on obviously, the remarks, sequentially, be margin impacts

Patricia Chiodo

Yes.

going a in while board. it's think that, of itself I investment. is little coming of us it think I It's there some as wrangle and Redflex to to continued is take on

we're the tolling. Europe haven't European that and our into putting having pulled rack investment that back we're We

that have you'd revenue we And need extremely really and cost be us to running we And there. of clearly, And QX. not still nice hey, that's to factor that, a we other in prepared. cycle been add cycle. then I think lean hit willing the say then is a ahead saw So revenue probably

a to in quarter, need can't You We you of prepared them. order back to revenue would can three for returns. as it pull in that scramble for be scramble

Daniel Moore

just is it year prior you is Tax that at Last beyond? Or the think the Perfect. the we three ratio that I times quoted that's and repurchases? do stuff. assume year end. additional to inclusive? share leverage for remainder housekeeping rate, how about below of And

Patricia Chiodo

No.

So to. that's prior

million. our of that would And we be prior about - so cash our we would where EBITDA would expect to share that be just midpoint that any position buyback, yearend the So would be $XXX given guided about to million. $XXX

times that to us a get X.X So about leverage. would

so that On question, the the leverage a was other? - was what

Daniel Moore

Just tax rate.

an been It's forward. unusual obviously… quarter, Going

Patricia Chiodo

my Not topic, favorite Dan.

what's is our this so rate. happening rate, tax So with tax

are that from market a tax actually the items have have that permanent zero we flowing financial any We differences we impact that anything certain adjustments the large TRA perspective. for our or to placement Mainly through are a have private to market warrants. adjust statements

they because large we're that XX%, on on It of say, to state it low federal it's if you So - you in reason rate be annualized XX% going get the rate individual shift answer. or should this sort City, to a items over basis, is that's that we really have It's the non-tax of think normalize time. up your is it driving permanent we've happening well, XX% we up seeing XX% should that rate high. But with rate then rate. a really, deductible the New revenue each like annual and I items, it's the we're than rates, and XX%, that into the what What's got add-backs more would But increasingly this - tax that some a what there. York state still a to in rate, quarter. and the wild about that higher on But should expect were to of swings closer expect income tax like net tax a as we our working would on XX% a effective an the long with period on annual number, be time? that XX% over tax like reflects XX% longer about which should it closer call then drives

Daniel Moore

the it. momentum. Appreciate Thanks. Very helpful. Congrats on

Patricia Chiodo

Yes.

Operator

Dave We'll with Koning from now Baird. hear

Dave Koning

is QX question, Services down Thanks, great and Yes. like first well of strong. above QX were guys. I I revenue registrations QX. one-off above the And there expect my incredibly wouldn't Commercial it Usually, to Hey, think least plus that be you guess in QX? you XX% sequentially like job. know sequentially QX. I be in some like kind why stuff somewhat at seem up But some of And said

Patricia Chiodo

We expect be to it do Yes. updated.

So expected. sorry, we

we've what half revenue. stronger and QX QX than half said first would the stronger than So be that is back the was for

basis be that think be uptick do the to QX I a then in taper that and to that patterns - going still growth going we're will we quarter-over-quarter QX. just peak. we we expect would where would it's on an What But QX you're know because are do going. sure this travel down don't not and be So see the XX% it don't peak back

Dave Koning

was I a 'XX, some think did just XX% activity QX. of XX% you of recur expect necessarily to say? it of that QX there because to Is lot in fair - don't just

Patricia Chiodo

to say. That's fair

Dave Koning

Yes.

through XX%. York then like actually of it forma XX%. my I question, if there looked each just Verra Or lot core you we information, It same? and time grow Is say, your pro things those for in like grow the York, Redflex both let's than differently the I at stuff. or guess about some New of of look of it looks other? probably should And look do about ex ironically a also grew Okay. much same ex In to could follow-up New the expect any government. over reason grew - for kind Government Redflex,

Patricia Chiodo

should business same So we think at the with growing rate. about Verra Mobility be that Redflex the the along core business,

that is done at what that brought when on table sheet a think GAAP forma the basically when P&L says looking in. point - is basis, you're disconnect the time pro at they're in you I from they're you're the the balance which and looking

should in growth term of rates in should that transaction outside you So growth year. businesses the We the New those type both longer this quoted. that not mid of was that still digit single happened XX% of of just assumes at and that January it this see be York

Dave Koning

makes Yes, that Thank Got sense. you. definitely you.

Patricia Chiodo

Yes.

Operator

from Next, we hear Stanley. with Morgan Faucette James

James Faucette

to incremental very just a of questions. Thanks couple much. Wanted ask

compares of kind you versus were missed I of and I said? but repeat the And how what stated you you of in just remarks, timing had guess can what realization? First thinking kind you now terms on know originally that Redflex, I in again maybe it. prepared synergies, right

Patricia Chiodo

Yes, were $X.X our We've and in sure. said of that said, We wins million already. million to originally going between first. get that achieved being $X million But do $XX we quick we synergies. those did

going out four I them play the it, see take type to that a the next over those product to and quarters you'll think the expected. savings are longer, three longer with rest call we of for tail

changing that So of their openings those was really, what lot lease had workforce combined some the we already achieved was close were the because a real able from company working They really transactions side. costs were on we cancellation job And public we to quickly and facilities able that materialized quickly. then of to fill very nicely.

a good we wins wins little get quick that the next but wanted achieve, harder some early the gate. of be will out to us really ones And some gave So on. to

James Faucette

year. come puts they in Good, of to the And start a then next couple into like and that there takes productive year? be some cameras will Yes, quick expect in the slip and that spill of will What's new how keep New kind next additional cause of what around more the good. could And trying that sounds to good to or dozen those into those? could rollout maybe could as quickly ones. grabbing happen be far job cameras versus it as York, you're

David Roberts

Yes.

tend just that holidays as down. get the year, reasonable that that's to things into we're a the to I back to slow half of we tend in we - buffer putting just think weather mostly and run given conditions that

kind as of appropriately The we're get is view. in a to cameras just So to team it XX trying to all staffed up is, be that conservative month. we've out running

good think some then if Northeast pace. to of the advance be but earlier the in our we traditional I those going of installing tells with able that's some view is be should around So us. the in get weather, to lucky estimate And year, what we the

James Faucette

Or of moves introduction that. how in how acquisitions then me And to there thing of authorization And - with anything there a potential for of you pipeline plenty active that it. be ranges looking to or actively the do to for now? get deals looking the you're I right and buyback that trying strategic still is what think what flexibility you're particularly elevated Is Got be about last like sense valuation mentioned seemed just that at potential at? you have you guess, acquisitions, could thinking is? you the

David Roberts

we we your that - Yes. last which I it. that's made sense. the the lot Board reasons I our reason mean, would reason the think is do the share one felt approved point of And why repurchase of is part a of

we're when first. think that But to all deals we consistent that we've when we very said that M&A what I find we of shareholders. criteria would our always met being strategic always and financial capital go with also couldn't would is return

we really three what So repurchase. public. kind adjacent is then of always song had been is for went is this And we're share would of that We said that part a look a do since - playing opportunity we've we've to never we just the markets.

quite even a us. to might always place to that back reasonable pipeline. a for your be or not do of is robust to back in on are of year, this be may point, maintain down in time a our But we are that half And come lot interested those at for today. area. things valuations valuations as so We more the over maybe goal we that there sale - offense But in very

James Faucette

lot. Thanks Great. a

David Roberts

Yes.

Operator

Research. will Our Trevor from come next with question Northcoast Bowers

Trevor Bowers

Congrats thanks guys. quarter. question. taking my on the Hi, for And

and Redflex's the doing acquisition, geographies keeping all With solutions? was Verra does do products plan plan And of the on on staying business? all you Redflex in Redflex that

David Roberts

I a they revenue sense that make Yes. we going places like the going to think extent from most leverage we to. the here. Australia then, see in contributing the that to of, I and US, and and profitably, would access be growth to want or part are doing in And we a again, didn't to so the had obviously, had positive places mean they staying we're was to be revenue that those. us that calculus leverage the those. some growth, perspective products products of the continue where Europe And from some to perspective that And obviously,

both So as on synergy and side revenue side cost to get we're hoping the some well. from the

Trevor Bowers

And some acquisition? maybe learned business Great. the maybe that the the what the since What acquisition lessons you most about excites are you've quick then a about And Okay. follow-up. closed?

David Roberts

quite Well, like I when some for regard. the for And great the exciting being in look we've returns of can deal buy able to think is synergy obviously at you we identified. a because I of it's said, one, we've think that shareholders. it what strategic return really part think is, company clear the a We positive fit shareholders some

think silent opportunity. the exciting been the within I enforcement. international internationally thing photo We've always most other is - the

ability and that's and the so that have And knowledge really skill products relationships to to have people well. services and and us as customers, and exciting

be are outcomes that hey, I some regards. think at other on both most margin, what grow what the lot just are are as positive. things as at what different. that be pace there which heading similar in a have say the going got, great to would But business and It's acquisition, But I is are say, the there's like least point, some to we've a trajectory we in of would a of would this we quite learned going is any well think is, synergy. to we opportunities expected exactly that, I

Trevor Bowers

Okay, great. Thanks. congrats And again.

David Roberts

Thank Yes. you.

Operator

question And William will from Blair. final with Louie our come DiPalma

Louie DiPalma

David good Tricia, and afternoon.

David Roberts

Louie. Hey,

Louie DiPalma

pandemic. because temporarily those your that quarter, you X,XXX online? were are the approximate temporarily many those on how of inactive inactive? number XX-Q of an cameras And over back Are do indicated have Last cameras coming

Patricia Chiodo

Yes.

the of running the this would back the majority not the expect would would time been during that bus frame, we cameras, were X,XXX year. let's I'm where X,XXX active see And school programs online quarter. of those be to for the trying maintained we those to many see. this months almost ended during actually three Yes, because frame. So - CrossingGuard, have time during related cameras coming

lot to those with inactive that were gone the cameras of return back schools. a especially of work, So have

citation is the until across the the take just seeing also through will of revenue from what summer. into those we year seeing cycle may back think later those at the we not I And a We because half get time online. you're to while it see least come frame. we're

Louie DiPalma

car for in And are the your pilots rental on Tricia. David, countries? progress of Thanks, there rollouts the different any tolling European the updates

David Roberts

still we of similar we're situation, is quarter of country. pilots, which very couple a close, the We're Yes. a - and as in are close to in Ireland another

didn't forward. particular to team those didn't because about talk this are preparing just is signs on call, moving we launch of all but yet, The those. so And we have them those

within on some So news have hopefully, positive sometime we'll the quarter. that

Louie DiPalma

good. Thanks, and David Sounds Tricia.

David Roberts

Louie. Yes. Thanks,

Patricia Chiodo

that's Yes. the And question. last think I

David Roberts

today's question, that will and guess the conclude call. your session and I question-and-answer the thank you We that for was last participation.

now may disconnect. You

Verra Mobility (VRRM) 10 Aug 212021 Q2 Earnings call transcript