Company profile

Ticker
VRRM
Exchange
CEO
David M. Roberts
Employees
Location
Fiscal year end
Industry (SEC)
Former names
Gores Holdings II, Inc.
SEC CIK

VRRM stock data

(
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Calendar

5 Nov 19
13 Dec 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Sep 19 Jun 19 Mar 19 Dec 18
Revenue 128.24M 109.58M 98.46M 95.11M
Net income 17.75M 3.59M 2.82M -37.95M
Diluted EPS 0.11 0.02 0.02 -0.38
Net profit margin 13.84% 3.28% 2.86% -39.91%
Operating income 36.66M 17.64M 17.97M -18.11M
Net change in cash 43.32M 763K 26.44M 13.1M
Cash on hand 135.56M 92.25M 91.48M 65.05M
Annual (USD) Dec 18 Dec 17 Dec 16
Revenue 370.15M 230.75M
Net income -58.39M 1.42M 29M
Diluted EPS -0.67 -1
Net profit margin -15.78% 12.57%
Operating income 12.61M -780.28K 47.89M
Net change in cash 56.32M 8.72M
Cash on hand 65.05M 8.72M 3.19K

Financial data from company earnings reports

Financial report summary

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Risks
  • Our revenue concentration from customers in the RAC industry could have a material adverse effect on our business.
  • Our government contracts are subject to unique risks and uncertainties, including termination rights, audits and investigations, any of which could have a material adverse effect on our business.
  • Our failure to properly perform under our contracts or otherwise satisfy our customers could have a material adverse effect on our business.
  • We face intense competition and any failure to compete could have a material adverse effect on our business.
  • Any failure to keep up with technological developments and changing customer preferences could have a material adverse effect on our business.
  • Our new products and services and changes to existing products and services may not succeed.
  • A failure in or breach of our networks or systems, including as a result of cyber-attacks, could have a material adverse effect on our business.
  • We rely on communications networks and information systems and any interruption could have a material adverse effect on our business.
  • Any failure to realize the anticipated benefits of an acquisition could have a material adverse effect on our business.
  • Unanticipated expenses and liabilities related to acquisitions could have a material adverse effect on our business.
  • Failure to successfully implement our brand transformation initiatives or fully realize the anticipated benefits from the transformation could have a material adverse effect on our business.
  • Our inability to recover capital and other investments in connection with our contracts could have a material adverse effect on our business.
  • We are subject to laws of the United States and foreign jurisdictions relating to privacy, data retention and individually identifiable information, and failure to comply with these laws, whether or not inadvertent, and changes to these laws, could have a material adverse effect on our business.
  • We are subject to domestic and foreign laws relating to processing certain financial transactions, including debit or credit card transactions, and failure to comply with those laws, even if inadvertent, could have a material adverse effect on our business.
  • Failure to comply with anticorruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act and similar laws associated with our activities outside of the United States, could have a material adverse effect on our business.
  • Risks related to laws and regulations and any changes in those laws could have a material adverse effect on our business.
  • Changes in laws, regulations or rules, or a failure to comply with any laws, regulations or rules, may adversely affect our business, investments and results of operations.
  • Our measures to monitor and protect our intellectual property may not be adequate to maintain or enforce our patents, trademarks or other intellectual property rights.
  • We have been and may become subject to third-party infringement claims or challenges to the validity of our intellectual property that could have a material adverse effect on our business.
  • We depend on the services of key executives and any inability to attract and retain key management personnel could have a material adverse effect on our business.
  • A failure to attract and retain necessary skilled personnel and qualified subcontractors could have a material adverse effect on our business.
  • Litigation and other disputes and regulatory investigations could have a material adverse effect on our business.
  • Our recent expansion into international markets through the acquisition of EPC exposes us to additional risks, and failure to manage those risks could have a material adverse effect on our business.
  • Our growth is dependent on successfully implementing our international expansion strategy.
  • Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our financial condition and results of operations.
  • Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to certain factors, some of which are beyond our control, resulting in a decline in our stock price.
  • Despite substantial levels of indebtedness, we have the ability to incur substantially more indebtedness, which could further intensify the risks described above.
  • Restrictive covenants in the agreements governing our indebtedness could restrict our operating flexibility.
  • The agreements governing our indebtedness contain cross default or cross acceleration provisions that may cause all of the debt issued under those instruments to become immediately due and payable because of a default under an unrelated debt instrument.
  • We may be unable to obtain additional financing to fund operations and growth.
  • The JOBS Act permits “emerging growth companies” like us to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies.
  • If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results.
  • Compliance and reporting requirements related to being a public company may strain our resources and divert management’s attention.
  • We are required to pay PE Greenlight Holdings, LLC for a significant portion of the tax benefit relating to pre-Business Combination tax attributes of Verra Mobility.
  • We may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and our stock price, which could cause you to lose some or all of your investment.
  • Our results of operations may differ significantly from the unaudited pro forma financial data included in our Current Report on Form 8-K filed with the SEC on October 22, 2018.
  • If the Business Combination’s benefits do not meet the expectations of investors or financial analysts, the market price of our securities may decline.
  • Platinum Equity has significant influence over us.
  • Anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
  • Resales of the shares of our securities could depress the market price of our securities.
  • Our only significant asset is our ownership interest in our operating subsidiaries and such ownership may not be sufficient to pay dividends or make distributions or loans to enable us to pay any dividends on our Class A Common Stock or satisfy our other financial obligations, including our obligations under the Tax Receivable Agreement.
  • A market for our securities may not continue, which would adversely affect the liquidity and price of our securities.
  • If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or our market, or if they change their recommendations regarding our securities adversely, then the price and trading volume of our securities could decline.
Management Discussion
  • Commercial Services service revenue includes toll and violation management revenues from commercial fleet and rental car companies. Service revenue increased by $5.7 million, or 7.9%, from $72.0 million for the three months ended September 30, 2018 to $77.6 million for the three months ended September 30, 2019. The increase is primarily due to a $5.6 million increase resulting from improved volumes in both billable days and tolls processed across our tolling products. The increase was offset by $0.4 million decrease in title and registration service revenue, representing a 16% decrease quarter over quarter. Title and registration volumes fluctuate with activity and can create volatility between quarters.
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Removed: Additionally, deem, impair, presently