XML 46 R35.htm IDEA: XBRL DOCUMENT v3.22.2.2
Guarantor/Non-Guarantor Financial Information (Tables)
9 Months Ended
Sep. 30, 2022
Condensed Financial Information Disclosure [Abstract]  
Summary of Condensed Consolidated Balance Sheets

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

at September 30, 2022

(Unaudited)

 

($ in thousands)

 

Verra Mobility
Corporation
(Ultimate Parent)

 

 

Guarantor Subsidiaries

 

 

Non-
guarantor
Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

 

$

17,296

 

 

$

34,280

 

 

$

 

 

$

51,576

 

Restricted cash

 

 

 

 

 

3,987

 

 

 

66

 

 

 

 

 

 

4,053

 

Accounts receivable (net of allowance for credit losses of $17.7 million)

 

 

 

 

 

164,269

 

 

 

10,884

 

 

 

 

 

 

175,153

 

Unbilled receivables

 

 

 

 

 

27,507

 

 

 

5,277

 

 

 

 

 

 

32,784

 

Investment in subsidiary

 

 

25,632

 

 

 

138,092

 

 

 

 

 

 

(163,724

)

 

 

 

Inventory, net

 

 

 

 

 

1,679

 

 

 

16,243

 

 

 

 

 

 

17,922

 

Prepaid expenses and other current assets

 

 

 

 

 

30,893

 

 

 

5,062

 

 

 

 

 

 

35,955

 

Total current assets

 

 

25,632

 

 

 

383,723

 

 

 

71,812

 

 

 

(163,724

)

 

 

317,443

 

Installation and service parts, net

 

 

 

 

 

19,024

 

 

 

 

 

 

 

 

 

19,024

 

Property and equipment, net

 

 

 

 

 

88,543

 

 

 

16,725

 

 

 

 

 

 

105,268

 

Operating lease assets

 

 

 

 

 

30,024

 

 

 

6,375

 

 

 

 

 

 

36,399

 

Intangible assets, net

 

 

 

 

 

297,907

 

 

 

102,085

 

 

 

 

 

 

399,992

 

Goodwill

 

 

 

 

 

689,501

 

 

 

138,193

 

 

 

 

 

 

827,694

 

Due from affiliates

 

 

169,259

 

 

 

 

 

 

 

 

 

(169,259

)

 

 

 

Other non-current assets

 

 

 

 

 

8,401

 

 

 

4,112

 

 

 

 

 

 

12,513

 

Total assets

 

$

194,891

 

 

$

1,517,123

 

 

$

339,302

 

 

$

(332,983

)

 

$

1,718,333

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

 

$

52,073

 

 

$

17,062

 

 

$

 

 

$

69,135

 

Deferred revenue

 

 

 

 

 

22,302

 

 

 

10,456

 

 

 

 

 

 

32,758

 

Accrued liabilities

 

 

 

 

 

34,805

 

 

 

10,263

 

 

 

 

 

 

45,068

 

Tax receivable agreement liability, current portion

 

 

 

 

 

5,107

 

 

 

 

 

 

 

 

 

5,107

 

Current portion of long-term debt

 

 

 

 

 

9,019

 

 

 

 

 

 

 

 

 

9,019

 

Total current liabilities

 

 

 

 

 

123,306

 

 

 

37,781

 

 

 

 

 

 

161,087

 

Long-term debt, net of current portion

 

 

 

 

 

1,204,006

 

 

 

 

 

 

 

 

 

1,204,006

 

Operating lease liabilities, net of current portion

 

 

 

 

 

28,146

 

 

 

4,546

 

 

 

 

 

 

32,692

 

Tax receivable agreement liability, net of current portion

 

 

 

 

 

55,650

 

 

 

 

 

 

 

 

 

55,650

 

Private placement warrant liabilities

 

 

 

 

 

33,333

 

 

 

 

 

 

 

 

 

33,333

 

Due to affiliates

 

 

 

 

 

29,832

 

 

 

139,427

 

 

 

(169,259

)

 

 

 

Asset retirement obligation

 

 

 

 

 

12,663

 

 

 

24

 

 

 

 

 

 

12,687

 

Deferred tax liabilities, net

 

 

 

 

 

(713

)

 

 

19,348

 

 

 

 

 

 

18,635

 

Other long-term liabilities

 

 

 

 

 

5,268

 

 

 

84

 

 

 

 

 

 

5,352

 

Total liabilities

 

 

 

 

 

1,491,491

 

 

 

201,210

 

 

 

(169,259

)

 

 

1,523,442

 

Total stockholders' equity

 

 

194,891

 

 

 

25,632

 

 

 

138,092

 

 

 

(163,724

)

 

 

194,891

 

Total liabilities and stockholders' equity

 

$

194,891

 

 

$

1,517,123

 

 

$

339,302

 

 

$

(332,983

)

 

$

1,718,333

 

Summary of Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income

Three Months Ended September 30, 2022

(Unaudited)

 

 

 

 

 

($ in thousands)

 

Verra Mobility
Corporation
(Ultimate Parent)

 

 

Guarantor Subsidiaries

 

 

Non-
guarantor
Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Service revenue

 

$

 

 

$

161,993

 

 

$

18,624

 

 

$

 

 

$

180,617

 

Product sales

 

 

 

 

 

12,487

 

 

 

4,552

 

 

 

 

 

 

17,039

 

Sales to affiliates

 

 

 

 

 

(1,055

)

 

 

1,055

 

 

 

 

 

 

 

Total revenue

 

 

 

 

 

173,425

 

 

 

24,231

 

 

 

 

 

 

197,656

 

Cost of service revenue

 

 

 

 

 

3,184

 

 

 

960

 

 

 

 

 

 

4,144

 

Cost of product sales

 

 

 

 

 

7,153

 

 

 

4,164

 

 

 

 

 

 

11,317

 

Cost of sales to affiliates

 

 

 

 

 

(7

)

 

 

7

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

50,469

 

 

 

10,067

 

 

 

 

 

 

60,536

 

Selling, general and administrative expenses

 

 

 

 

 

38,482

 

 

 

2,644

 

 

 

 

 

 

41,126

 

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

 

 

 

 

 

29,762

 

 

 

5,273

 

 

 

 

 

 

35,035

 

Total costs and expenses

 

 

 

 

 

129,043

 

 

 

23,115

 

 

 

 

 

 

152,158

 

Income from operations

 

 

 

 

 

44,382

 

 

 

1,116

 

 

 

 

 

 

45,498

 

Income from equity investment

 

 

(24,576

)

 

 

(2,530

)

 

 

 

 

 

27,106

 

 

 

 

Interest expense, net

 

 

 

 

 

21,302

 

 

 

(1,042

)

 

 

 

 

 

20,260

 

Change in fair value of private placement warrants

 

 

 

 

 

(2,267

)

 

 

 

 

 

 

 

 

(2,267

)

Gain on extinguishment of debt

 

 

 

 

 

(3,005

)

 

 

 

 

 

 

 

 

(3,005

)

Other income, net

 

 

 

 

 

(2,057

)

 

 

(405

)

 

 

 

 

 

(2,462

)

Total other (income) expenses

 

 

(24,576

)

 

 

11,443

 

 

 

(1,447

)

 

 

27,106

 

 

 

12,526

 

Income before income taxes

 

 

24,576

 

 

 

32,939

 

 

 

2,563

 

 

 

(27,106

)

 

 

32,972

 

Income tax provision

 

 

 

 

 

8,363

 

 

 

33

 

 

 

 

 

 

8,396

 

Net income

 

$

24,576

 

 

$

24,576

 

 

$

2,530

 

 

$

(27,106

)

 

$

24,576

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

 

 

 

 

 

 

(8,167

)

 

 

 

 

 

(8,167

)

Total comprehensive income (loss)

 

$

24,576

 

 

$

24,576

 

 

$

(5,637

)

 

$

(27,106

)

 

$

16,409

 

 

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Income

Nine Months Ended September 30, 2022

(Unaudited)

 

 

 

 

 

($ in thousands)

 

Verra Mobility
Corporation
(Ultimate Parent)

 

 

Guarantor Subsidiaries

 

 

Non-
guarantor
Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Service revenue

 

$

 

 

$

462,294

 

 

$

53,959

 

 

$

 

 

$

516,253

 

Product sales

 

 

 

 

 

25,828

 

 

 

13,447

 

 

 

 

 

 

39,275

 

Sales to affiliates

 

 

 

 

 

(1,403

)

 

 

1,403

 

 

 

 

 

 

 

Total revenue

 

 

 

 

 

486,719

 

 

 

68,809

 

 

 

 

 

 

555,528

 

Cost of service revenue

 

 

 

 

 

8,158

 

 

 

3,478

 

 

 

 

 

 

11,636

 

Cost of product sales

 

 

 

 

 

15,268

 

 

 

10,370

 

 

 

 

 

 

25,638

 

Cost of sales to affiliates

 

 

 

 

 

(10

)

 

 

10

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

137,717

 

 

 

29,078

 

 

 

 

 

 

166,795

 

Selling, general and administrative expenses

 

 

 

 

 

106,550

 

 

 

16,363

 

 

 

 

 

 

122,913

 

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

 

 

 

 

 

90,376

 

 

 

15,505

 

 

 

 

 

 

105,881

 

Total costs and expenses

 

 

 

 

 

358,059

 

 

 

74,804

 

 

 

 

 

 

432,863

 

Income (loss) from operations

 

 

 

 

 

128,660

 

 

 

(5,995

)

 

 

 

 

 

122,665

 

Income from equity investment

 

 

(64,257

)

 

 

2,724

 

 

 

 

 

 

61,533

 

 

 

 

Interest expense, net

 

 

 

 

 

50,063

 

 

 

(1,039

)

 

 

 

 

 

49,024

 

Change in fair value of private placement warrants

 

 

 

 

 

(5,133

)

 

 

 

 

 

 

 

 

(5,133

)

Tax receivable agreement liability adjustment

 

 

 

 

 

(965

)

 

 

 

 

 

 

 

 

(965

)

Gain on extinguishment of debt

 

 

 

 

 

(3,005

)

 

 

 

 

 

 

 

 

(3,005

)

Other income, net

 

 

 

 

 

(7,931

)

 

 

(1,436

)

 

 

 

 

 

(9,367

)

Total other (income) expenses

 

 

(64,257

)

 

 

35,753

 

 

 

(2,475

)

 

 

61,533

 

 

 

30,554

 

Income (loss) before income taxes

 

 

64,257

 

 

 

92,907

 

 

 

(3,520

)

 

 

(61,533

)

 

 

92,111

 

Income tax provision (benefit)

 

 

 

 

 

28,650

 

 

 

(796

)

 

 

 

 

 

27,854

 

Net income (loss)

 

$

64,257

 

 

$

64,257

 

 

$

(2,724

)

 

$

(61,533

)

 

$

64,257

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in foreign currency translation adjustment

 

 

 

 

 

 

 

 

(15,840

)

 

 

 

 

 

(15,840

)

Total comprehensive income (loss)

 

$

64,257

 

 

$

64,257

 

 

$

(18,564

)

 

$

(61,533

)

 

$

48,417

 

4,238

Summary of Condensed Consolidated Statements of Cash Flows

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2022

(Unaudited)

 

($ in thousands)

 

Verra Mobility
Corporation
(Ultimate Parent)

 

 

Guarantor Subsidiaries

 

 

Non-
guarantor
Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

64,257

 

 

$

64,257

 

 

$

(2,724

)

 

$

(61,533

)

 

$

64,257

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

 

 

89,789

 

 

 

15,505

 

 

 

 

 

 

105,294

 

Amortization of deferred financing costs and discounts

 

 

 

 

 

4,122

 

 

 

 

 

 

 

 

 

4,122

 

Change in fair value of private placement warrants

 

 

 

 

 

(5,133

)

 

 

 

 

 

 

 

 

(5,133

)

Tax receivable agreement liability adjustment

 

 

 

 

 

(965

)

 

 

 

 

 

 

 

 

(965

)

Gain on extinguishment of debt

 

 

 

 

 

(3,005

)

 

 

 

 

 

 

 

 

(3,005

)

Credit loss expense

 

 

 

 

 

10,431

 

 

 

461

 

 

 

 

 

 

10,892

 

Deferred income taxes

 

 

 

 

 

(15,198

)

 

 

(2,112

)

 

 

 

 

 

(17,310

)

Stock-based compensation

 

 

 

 

 

13,656

 

 

 

 

 

 

 

 

 

13,656

 

Other

 

 

 

 

 

623

 

 

 

1

 

 

 

 

 

 

624

 

Income from equity investment

 

 

(64,257

)

 

 

2,724

 

 

 

 

 

 

61,533

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

(24,519

)

 

 

(1,327

)

 

 

 

 

 

(25,846

)

Unbilled receivables

 

 

 

 

 

(3,289

)

 

 

(916

)

 

 

 

 

 

(4,205

)

Inventory, net

 

 

 

 

 

(2,835

)

 

 

(6,221

)

 

 

 

 

 

(9,056

)

Prepaid expenses and other assets

 

 

 

 

 

4,647

 

 

 

3,758

 

 

 

 

 

 

8,405

 

Deferred revenue

 

 

 

 

 

5,132

 

 

 

1,159

 

 

 

 

 

 

6,291

 

Accounts payable and other current liabilities

 

 

 

 

 

(2,476

)

 

 

498

 

 

 

 

 

 

(1,978

)

Due to affiliates

 

 

 

 

 

(473

)

 

 

473

 

 

 

 

 

 

 

Other liabilities

 

 

 

 

 

3,408

 

 

 

(675

)

 

 

 

 

 

2,733

 

Net cash provided by operating activities

 

 

 

 

 

140,896

 

 

 

7,880

 

 

 

 

 

 

148,776

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partial payment of contingent consideration

 

 

 

 

 

(647

)

 

 

 

 

 

 

 

 

(647

)

Purchases of installation and service parts and property and equipment

 

 

 

 

 

(28,570

)

 

 

(7,357

)

 

 

 

 

 

(35,927

)

Cash proceeds from the sale of assets

 

 

 

 

 

140

 

 

 

 

 

 

 

 

 

140

 

Net cash used in investing activities

 

 

 

 

 

(29,077

)

 

 

(7,357

)

 

 

 

 

 

(36,434

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment on the revolver

 

 

 

 

 

(25,000

)

 

 

 

 

 

 

 

 

(25,000

)

Repayment of long-term debt

 

 

 

 

 

(6,764

)

 

 

 

 

 

 

 

 

(6,764

)

Payment of debt issuance costs

 

 

 

 

 

(410

)

 

 

 

 

 

 

 

 

(410

)

Share repurchases and retirement

 

 

 

 

 

(125,071

)

 

 

 

 

 

 

 

 

(125,071

)

Proceeds from exercise of stock options

 

 

 

 

 

997

 

 

 

 

 

 

 

 

 

997

 

Payment of employee tax withholding related to RSUs vesting

 

 

 

 

 

(3,072

)

 

 

 

 

 

 

 

 

(3,072

)

Settlement of contingent consideration

 

 

 

 

 

(205

)

 

 

 

 

 

 

 

 

(205

)

Net cash used in financing activities

 

 

 

 

 

(159,525

)

 

 

 

 

 

 

 

 

(159,525

)

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 

 

 

 

(1,620

)

 

 

 

 

 

(1,620

)

Net decrease in cash, cash equivalents and restricted cash

 

 

 

 

 

(47,706

)

 

 

(1,097

)

 

 

 

 

 

(48,803

)

Cash, cash equivalents and restricted cash - beginning of period

 

 

 

 

 

68,989

 

 

 

35,443

 

 

 

 

 

 

104,432

 

Cash, cash equivalents and restricted cash - end of period

 

$

 

 

$

21,283

 

 

$

34,346

 

 

$

 

 

$

55,629

 

 

Verra Mobility Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Continued)

Nine Months Ended September 30, 2022

(Unaudited)

 

 

 

Verra Mobility
Corporation
(Ultimate Parent)

 

 

Guarantor Subsidiaries

 

 

Non-
guarantor
Subsidiaries

 

 

Eliminations

 

 

Consolidated

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

 

 

$

40,068

 

 

$

 

 

$

 

 

$

40,068

 

Income taxes paid, net of refunds

 

 

 

 

 

43,072

 

 

 

383

 

 

 

 

 

 

43,455

 

Supplemental non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of installation and service parts and property and equipment in accounts payable and accrued liabilities at period-end

 

 

 

 

 

6,420

 

 

 

 

 

 

 

 

 

6,420

 

Additions related to asset retirement obligations and property and equipment

 

 

 

 

 

715

 

 

 

 

 

 

 

 

 

715