Verra Mobility (VRRM) Reports FY22 Revenue of $694 Million

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Verra Mobility Corporation (NASDAQ: VRRM) (the “Company“), a leading provider of smart mobility solutions, today announced that it is continuing to finalize its financial statements for the year ended December 31, 2021 and complete the related audit committee investigation. described in Form 12b-25 filed by the Company on February 28, 2022. The Company expects the audit of its financial statements to be completed in the near term and confirms its estimated results for 2021, as indicated in its press release. press of February 28, 2022.

Since the company did not file its Form 10-K by March 31, 2022, a technical default will occur under the Senior Term Credit Agreement, Revolving Credit Agreement and of the company’s first ranking trust indenture, under which approximately $1,243 million is outstanding. The technical default will not result in any acceleration of the Company’s indebtedness. The Company expects its 2021 year-end financial statements to be completed and Form 10-K filed by the date any of its liabilities may be accelerated (May 1, 2022). To date, the Company has approximately $97 million in cash to fund its operations for the foreseeable future.

“As we finalize the audit, we are confident in our business performance,” said David Roberts, President and CEO of Verra Mobility. “Our outlook for 2022 remains strong and we have therefore decided to provide our financial guidance for 2022 at this stage.”

Orientations for the year 2022

Any guidance provided by the Company is subject to change as various factors may affect actual results of operations. Some of the factors that could affect the Company’s actual results of operations are identified below in the safe harbor language included in the forward-looking statements in this press release. In addition, the recent acquisitions of Redflex and T2 Systems include preliminary breakdowns of the fair values ​​of assets acquired and liabilities assumed at the date of acquisition. Purchase price allocations are subject to change during the evaluation period (up to one year from the date of acquisition). The Company provides the following forward-looking guidance, which includes Adjusted EBITDA, a non-GAAP financial measure (defined below):

Financial orientation 2022

Services revenue: $635 million – $652 million

Product revenue: $59 million – $63 million

Total revenue: $694 million – $715 million

Adjusted EBITDA: $312 million – $322 million

(Consensus calls for FY22 revenue of $645.4 million)

The Company does not provide a quantitative reconciliation of Adjusted EBITDA, which is included in its 2022 financial guidance above, based on unreasonable efforts exception for non-GAAP forward-looking measures set forth in the SEC rules, because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, the Company is unable to provide a reconciliation between the forward-looking Adjusted EBITDA and net income (loss) under GAAP, due to the inherent difficulty in predicting and quantifying certain amounts necessary for such reconciliation. Due to the uncertainty of the estimates and assumptions used in the preparation of the non-GAAP forward-looking measures, the Company cautions investors that actual results could differ materially from these non-GAAP financial projections.

The Company previously announced the appointment of Craig Conti as Chief Financial Officer effective April 11, 2022. In connection with the deferred filing of Form 10-K, the Company and Mr. Conti have agreed that if Form 10-K n is not filed by April 8, 2022, his appointment as CFO will be delayed until the day after the company files its Form 10-K. The potential delay in Mr. Conti’s appointment as Chief Financial Officer will not impact his start date of employment, which remains April 11, 2022, or any other term of his employment contract.