Verra Mobility (VRRM) 10 Nov 192019 Q3 Earnings call transcript

Greetings. And welcome to the Verra Mobility Corporation Third Quarter 2019 Financial Results Call. At this time all participants are in a listen-only mode. A question-and-answer will follow the formal presentation. [Operator Instructions]

conference recorded. this reminder, a is being As I to your like to conference over turn the host, would now Mr. Marc Griffin, Investor Relations. Thank you.

You may begin.

afternoon. call. be Good quarter issued before in you. And opened. Verra release to Thank market Mobility’s our XXXX press earnings the Today, discussing will the we results announced welcome third

we call the afternoon with David Tricia Officer. for will begin Roberts, Chief me Chiodo, Mobility’s Chief With Financial up this on Verra remarks will and Q&A. then prepared the call and is, open Executive Officer; They

During the regarding and make our for on our will new acquire plans our including we business XXXX, that statements other execute existing prospects. and guidance our call, statements growth customers, and related strategy, may the financial our forward-looking, of to to full our year be statements ability considered plans maintain concerning to

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

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

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

market of ir.verramobility.com website to included today, will which the located at today’s call, issued at our A financial Finally, press on and is measures is in during the the non-GAAP to again sec.gov. measures. we before certain release website refer open GAAP non-GAAP our of course reconciliation SEC’s

call the to me let that, over With David. turn

everyone to call thank joining today. us on and Marc, you you, Thank the

update Mobility’s everyone our results, on company. I celebrate take QX anniversary Verra want a one-year we public to and Before as a moment

In to companies have with first for had the leap been October for minted have those public markets challenging, companies. most of phenomenal XXXX, Verra that year. especially special purpose and Mobility Today’s accounts newly by has made environment we a public acquisition combined

Verra believe but laid ago and because been months growth its continued a of before XX we adapted has has to without been We some going have It and we public Mobility execute have an to we exception, challenges strategy continued that and initiatives, overcome. new out plan. not our against strong

our progress and Over first our continued to the while course of grow year, on making businesses, Solutions strong initiatives. Commercial growth we European have Government our

All has value. of resulted shareholder which in enhanced

deal of their great and counsel all to and for guidance, for serve dedication our of and employees our to their and thanks our Directors a at owe trust our point of We Board the their highest commitment, need. shareholders for wise focus customers continued

resulted that pleased very financial across all operating metrics. exceeded quarter, in are key expectations performance in which third with We company’s results the the

during later this call. detail As in Tricia will discuss

fiscal vision leader momentum give came smart a Our our and year-over-year transportation. core as our $XX.X term quarter remainder adjusted our XX% maintain up and city third longer million, to $XXX.X the global grew smart year-over-year. for our business strength XXXX EBITDA our in revenue innovation and of support million confidence The to XX% initiatives in ability of at us in

segment. $XX.X X% are reported X% Services Commercial million, of to EBITDA growth Our grew and consistent with we of Overall, segment adjusted very year-over-year pleased year-over-year. million up the $XX.X this revenues and strong

our by both driven tolling penetration product and innovations. in programs our the customers continued enhance with operational momentum through of collaboration to and The was quarter adoption

which inclusive product our to to the all the revenue not renter optimize experience. We continue adjustments but make to from only offerings enhances opportunity day usage

in to business. Additionally, providing been toll and usage, positive which nice a activity Commercial is increase our overall there a tailwind has

During product. XXXX make creating we to continued European operationalizing tremendous -- headway and in operationally our

stated and with APRR. we the are are have in our set relationship in Netherlands As up progressing organizationally we

car We are actively and fleet companies pilot engaged programs. large creating with several rental on

me we are or launched expect of any Pagatelia. remain to not early confident France discussion full-fledged our We launch potential year. a recent next to While pilot customers year to have in conversations European product related which yet our multiple end in opportunity, with we programs, in and acquisition leads the by

strategic embodies years announced We the excited we the leadership the October the our our tuck-ins strategy. of Pagatelia type on part can which in space. XXst. that process diligent Over voiced growth have and strategic Pagatelia, be our of mobility acquisition in accelerate and smart remain that of important are have an would M&A closed to solution

authority consumers, Madrid, to services provides Based Portugal relationships Spain, Italy, Europe in southern network Spain, institutions strong built a toll Pagatelia and financial toll The management company electronic across France. of OEMs. including has and

but relationships is our Pagatelia European to leverage. company interoperable most by intend customers. which in solution strategy we is to bringing and The importantly, an profitable small our has Pagatelia expansion to accelerate expected a strong

employees know are couldn’t to to Verra company welcome integrations and our the you more and critical As we to Mobility. be success excited its

Commercial maintain opportunities remain the this increased year to lanes America conversion the for We balance toll for ability macro us remain of in the ongoing our of year. confident and segment, cashless the momentum strong to very the our North roads excited leads in about drivers our to

this revenues Government driven excluding by year-over-year Government was hardware City Segment in Solutions Service Solutions and Solutions million, to $XX.X as adjusted $XX.X revenues year-over-year. Segment Government year-over-year. flat Growth Our sales New grew York primarily hardware to XX% was of EBITDA million XX% quarter reported the up

for enforcement in stated the expand very of part number excited important we and will an been XX the an which safety that earlier we passed years. legislation over opportunity of As York areas New for year, speed the State schools zone have integral program, increase are to

aggressively order New have our through the Earlier cameras with order that this executing received an we Transportation. of year, City for Department on been York partnership and XXX

per As XXX cameras XXth, September about of have we or installed month. XX

the in us in remainder the of QX. camera -- installing has current Our cameras XXX the order plan

In Mobility activate XXXX. May announced to new Bill Mayor of this a month speed at fulfill received in Verra schools rate New cameras Recently York year, a notice per camera installations XXX de Blasio of proceed to zone a this pledge. help XX additional plan to for

our continue demand. We this the meet are initiatives to public important this on excited opportunity scaled to appropriately and about safety operations executing

during to our out factors We of meet our not are schedule per month cameras recognizing but to from per level are such every that striving weather. control due may month increase cameras XX XX month XXXX, we as implementation to that

our We also in consistently maintained again QX. high renewal rates

Florida, During we in Boulder, the customers Austin, Orange name Colorado Texas, programs and to few. customer Washington Bellevue, key renewed County, a quarter, --

signed We enabling are on was currently legislation pleased follow and during that strategic a year. continue to for negotiating traction law with also our Overall, for Georgia in our quarter. the initiatives multiple contracts the on very to we are as last zone school speed into XXXX programs execute third

our strong our will summary, to In third are with a XXXX. we execute very on quarter results drive initiatives, which continue and pleased

more over to detail. financials Tricia to that, our let it walk me With in hand through

call quarter overview Thanks, of third David, detailed for will everyone. then and and a good morning, I financial questions. more performance XXXX up our I will provide the open

that will GAAP non-GAAP deck have earnings a on has we website results provided today. discussing reconciliations from the to our We be short

If the you deck, earnings on which outlines segment. are performance and I five, revenue business following along by slide am EBITDA in adjusted

companies title car registration and fleet Let’s violation in start services to companies delivers with rental in and processing, our Europe. Commercial and Services the U.S. segment, violations which management processes

from million $XX.X companies million that prior were rental to of positively XXXX, the and levels our activity higher flat, the in shift -- same in a X% impacted from mix up in three grew our year. of quarter but quarter we car revenue portfolio, revenue. product across product tolling Total across third entire days the of largest Billable saw $XX shift

The days flatness of not was billable unexpected.

in tolls growth XXXX, segments QX in to delayed receipts difficult you teens recall and large QX strong throughout low continue computer this the very comp. authority system the We to a somewhere from change If Florida a in of a to believe land tolling a creating of year. be within

quarter million Last benesided into $XX.X -- year revenues million the the from benefited XXXX. QX EBITDA fell was performance shift of the by QX X% EBITDA QX, of to of million our year-over-year directly $X.X in grew from $XX.X or of XXXX Adjusted which in one-time bottomline.

to EBITDA margins we strength that Adjusted continued at expansion into of are of our commercial into investments accelerate showed XX%. margins RAC mind Services making are in Europe. Keep net these tolling

third quarter Government grew in from municipalities programs enforcement photo XXXX. end-to-end districts the total year-over-year revenue segment, school our to quarter Their Moving in with which and million $XX.X the operates XX% an of $XX.X million Solutions solution. third of for

operation revenue generate of selling the was system. roughly for of monthly service and the comprised and Service of on the million, camera fee the from flat photo $XX.X basis. program That’s enforcement a revenue, revenue product we Total installation was revenue. quarter which results year-over-year from

the for banned in revenue, If in us quarters. million you earlier an of recall, reduction photo impact which year, resulting light enforcement $XX Texas red three annual the will next

$X.X additional As the Maintenance a quarter, program Street sunset of decline was service down approximately result, for earlier from $XXX,XXX million our an this the revenue light year. of red Light came

add the the service program revenue speed installations light gain Moreover, continues to XXXX cameras momentum, million revenue. will more camera offsetting annual our than more $XX to recurring our speed than in Conversely, the in red losses quarter. service

installation cameras the the York. was by of $X.X the the up speed from quarter from The for of million last city same revenue Product million $XX.X school of XXX zone primarily New was increase driven year. for period

As continue XXX to systems order of existing expect by year. camera that to the order end the the David execute of mentioned, and fulfill we against

segment $XX.X the of up margins $XX.X prior the product increase both for sales benefiting for million year. adjusted the million period the is year. XX% XXXX business prior segment. The XX% approximately from XX% million this same in bottomline were of in and this top QX increased business in large $X.X Adjusted from the EBITDA or EBITDA

segment we quarter. discussed on million consolidated primarily revenue or year, $XX.X revenues. of the generated results for million Turning from $XXX.X to based combined total next we the product show and the the just prior our grew The of third for results million the slide, quarter for business $XXX.X that XX%

prior year. by $XX.X EBITDA EBITDA of from Adjusted in $X.X adjusted million the million of million $XX.X or increased XX%

improved adjusted strong XX.X%, year. third EBITDA at reported of quarter The the margins in XX.X% margin second quarter this from remained

in of in in compared of quarter, the per company XXXX. period share, the to per quarter EPS the same million $X.XX compared to for $X.XX reported quarter The $X.X income same net was million the current prior year. $XX.X share in the

representing quarter it where full with for for line was expense in is which tax an the the we XX.X%, $X.X million, be of effective Tax believe rate will year.

during activities nine improved September XX, $XX.X operating company generated the for million related months improvement The from the $XX.X in period The to million year. income. generating in cash flow same is XXXX, to compared ended prior the net directly

compared million the $XX.X million $XX.X quarter accounts flow in which CapEx year-to-date XXXX spent to benefited we in in the income net the from third receivable CapEx flow, operations We $XX.X Free year-to-date flow and less cash on prior Cash higher was period, the as cash flattening from the of period. year. balances. defined from million out

was September months As $XXX.X of million, trailing of of had XX million. million hand which and of debt EBITDA XX, adjusted for cash X.X a of million, net $XXX we $XXX debt on total $XXX times

well-positioned believe strong that continue we positive operating momentum these results, and discipline XXXX. maintain in Verra results, to delivering bottomline throughout execute to well, summary, top With remains and we Mobility and this

we Based million to improvement over million This guidance performance on raising million. are increased our our $XXX a is range the recently guidance. year-to-date, $XXX of $X revenue our to

$XXX EBITDA at to adjusted million unchanged is for guidance million. $XXX Our

speed As segment revenue, we the cost school not Government we up half stated that with last revenue the of the ramp loss quarter, year. the the understanding of back over zone to will Solutions cut immediate decision made in Texas

and This decision product put quality service pressure our insures but short-term to margins, of on delivery clients.

we speed remaining the to-date XX quarter. anticipate installing We cameras are the and in have fourth installed zone schools XXX --

with And Thank you for on happy now. today. time us joining be for we questions the to would that, take your taking the call

first Instructions] line the you. comes Our question William your [Operator Blair. Please Louie proceed Thank of DiPalma from with with question.

morning, Good David, Marc. Tricia and

Hi. Good morning.

Hi.

Commercial wondering France has the was and the well. very and in been has delay lot just your Europe the segment performed of relative to investor previous launch on Government There both a focus timeline? what trial I The caused segments,

It’s Hey. Yeah. David.

down comes just you So, I if way. really about mean, think it this to timing, it

of Europe. time, as we offering means into approach are It world which new resources, take a level does slightly fact given have we which to technology their technology of we have that there already to similar can sometimes some these be on as offer product While is this basically the to companies we they development that dedicated customers inside to offering fit here, they well have side, the some challenging. a do

said I of decisions the just -- would seen overall, say move that types we on that, at Europe the these have slightly here being in slower U.S. European That a also as anticipate does pace pilot said, what later year I remain the would a on opportunity, in the XXX% I we comments, some next year. of and first bullish in the or again, my time

polls massive. Okay. such basically City since is put York up went it’s on that once there of it the And any contract camera secondly, candidly, never risk New or formal cameras those the irreversible? for To light it is the are contract that is speed protests bid

that the such guess, say city written is their they that way the a I not to has that required go to mean, I I Well, way would irreversible, in not are think RFP. but contract I

an think just them of I transition that maintain vendors. creates with to ease for regular

keeping anything But with just sort given to we that as anticipate their like city do no therefore, always expectations, we or have we sure coming to having long are behalf down there up process the that to don’t continue of that, perform go to as -- pipe. the it of on to make is that and we

Thanks.

you. Thank

from with America. Ryan proceed Our next of Bank with the question comes of line question. Cary your Please

profitability hoping latest camera. per the bit York in New you camera the and about question. past Hey, I believe the little camera City about was more win. you month install guys. said Thanks a of for the in to talk you could taking are I $XX,XXX each per $XX,XXX

change hardware to are margins there much we of the any NTP, the about side, the just more you and a So both trying the could a win latest little the economics give first, terms can in in needle sense latest and is us in the sense on how move get services of EPS? second,

Yeah.

the lower. So pricing last it order same am as is the will little be your question first a regarding next to the say, the and I no, on going one bit

We from very sure closely to with get want that discounts our passing make to we We supplier working through them. customer. any our are are we

on they the product in the bit So next can will the that first you expect XXX sales cameras than be little a were lower XXX.

we customer, camera talk zone generate about for about specific do but about our $X,XXX -- across what don’t our When pricing we portfolio per we month talk take our product is about entire portfolio. any and across does schools fee per program

going So that recurring is the revenue forward.

So XXX each about about produce you and generate million installed in revenue that after recurring first cameras would camera that per would we anticipate annual would that $XX,XXX that year. that $XX

the how economics that’s about should So you of think it.

with number just moving that APR partnership and know you. Europe, made of have And in Thank announced a Great. to I a you France. acquisitions

to need kind of expect Europe? do in tuck-ins where get or have you you to Given have to to M&A scale be you more further expand you organically more the now do just

Yeah.

we I organically, was feel a they given point, toll were lot which a opportunity it doing have great authority. critical good regardless. at think, about to the with pretty us, going just for this Pagatelia we integrations do of

will without would have But they organically them. we be So done an accelerator. it

opportunity great of pretty that, is at see you organically will being think, what I everything next is you a would for that unless there again that Europe time. inside within grown anticipate year So, something much

I trying me, kind the of could a it revenue the embedded Thanks. going Got one you am in am a just standalone about hoping think of on it. primarily basis, us guide give there for of last And how acquisition. Pagatelia, to business is impact the the into staying on numbers forward just sense from can I anything XXXX?

this That strategic is acquisition guidance $X our all. sub was not impacting million really at for a annually. Yeah. revenue This is play. The

Thank my taking questions. it. Got you for

Sure.

Thank you.

Thank you.

Sabadra] Anish your (sic) proceed with Sabadra line next comes Our from of [Ashish Bank. Please the Deutsche question. question with

question there on electronic we Pennsylvania seven good in looking us taking tolling. cashless or congrats business, growth converted tolls see I Northern to Washington my as commercial such about and pretty states solid for and at you Maryland, several including have look a good in talked Virginia, Thanks highlighted result. and

this tolling. road So the more to saw and is, cashless we been or How in my forward? business should all growth toll as the the converted going think or more commercial business question complete about have commercial electronic we in toll wins

Yeah.

think that do lanes how bit but like broke of going are more types other see little you think we of I I asking, So business we a as impacting there, forward. opportunity, cashless toll up see just greater and a you our conversion

Yeah.

that the summary? correct Is

right, That’s Yes. Yeah. David. Yeah.

Yeah. been a I mean, Great. that we tailwind. always I have said Okay. think, that’s always

have exact It’s a saying we that quarter what to think little a been public pin been company. the every exactly since doing -- we candidly, hard have it’s is. influence I the put and

Tricia what you saw in billable that more which said But also is earlier us. you days more roads good indication were flat, relatively for would which and give increase activity, the as an -- toll cashless, toll there are well, we

We described describe eventually used of all do it, that to said we? where And a roads in, inning. we are think the we the, analogy call we what have will baseball always -- as are meaning, and that cashless the be we inning we are have seventh in

the long ninth the but games this time series And that, is it very of because would get take to which inning world go. and in I will is the toll authorities much what at tell like a you pace

we would incremental you conversion couple think, could I that see of tailwinds for, anticipate next that from continued some So years. the

And that and opportunity the David. for legislation school school on front? York then side, also bus passed Thanks, New helpful. you talk bus camera on cameras. maybe on any progress City government opportunity, color recent Can No. any -- about a that the That’s a very question

Yeah.

in So that’s front. State legislative another New win terms the of great of for us the was in York

assessing York. we for But, we are in school as are opportunity. New good position a in it feel opportunity bus still think the compete the like to I clearly, we expands

to probably we anticipated will those next is convert a quickly. of and year. into that would -- I given relatively very, insight our more What recently as that, things start into don’t That very better go it’s in that see

recently pricing. there congestion maybe And helpful. more sneak question, evaluate is I are several congestion That’s on and to this they can pricing just one even about, if are on in cities, had you congestion and do consultants you if pricing, that and I appointed was evaluating opportunity other you which wondering any that think how can conversations about going forward? talk front have or

Yeah.

I that is, that spoken a fit for would us. strategic in and something we we think, clear pricing clearly we think congestion So pretty present it’s very interested have are it, be

the I opportunity. U.S. we that to itself manifest continued think in are the waiting New post what demand how in is for see to York

There Seattle, that out But very are over other type Philadelphia, D.C., of a time. rollout those there -- I and from opportunities cities slowly program. is that would that certainly think, rollout are they considering city benefit other the

going as it also It’s not way is where at us way are and our more start global the right opportunity. continue when we opportunity through just see demand the So than a opportunity to turn business today. clearly into the It’s just you to the to consistent act something be may prepared accelerate to see an we and U.S. opportunity. that remain would to that’s be look vigilant in core comes as M&A slightly a

is an one. So it exciting

That’s Congrats once again. great.

Yeah. Thanks.

Thanks.

you. Thank

proceed Morgan of comes Ward the Our your from Please line next with with question Stanley. question. Steven

Good morning. Hey.

on seemed want think, EPS -- And the approved related only to cameras impact you restatement? was mathematically adjusted XXX in moving the the stuff, adjusted part and originally quick So, confirm maybe terms you it the that guys no on a number are new items. then calculation, revenue from off just just one only there of separately tax I that the of I implying I just ticky-tacky the to think, for in the the December. piece, start guidance just on like

comments that be December that there in sure because make confirmed, was to think previously will I about some there conflicting want whether not? or Just were

Yeah.

on because back So there. weren’t did on some is did tax confusion things put adjusted that is, We two was and EPS. Yes. when we this we we there had What adjustments EPS we did affecting the the calculation.

if we that So compared number. where historically they we go how there tax looking is the how would today, are that we them, did at back adjusted so and we had periods prior saying are to in the restate, change and

second XX QX. what to the your far said we the XXX we complete on complete that, in have cameras order guidance, is that as will then we And in question, next as the first order have

the or period. December, whether are them all QX within will we November So complete they in time

Got it.

understanding the I major XX% the margin impact, if development But think about as any catching Government goal, lower side level next that come plus that you following And about that bit guys had higher then boost be margin, like that and the somewhat year adjustments a York? dilutive it the cameras time you the of over little sounds Okay. to make just Solutions maybe with from in talked plus the on I to was with margin bit realized, obviously, the previously would New am into little there, we a think, a Texas. being that,

Yeah.

look line plus guidance you that to margin, of time what think, so I have actually we we pretty if our over you midpoint at is is are come with just intended our you where XX.X%, think, we it’s the at I time look going -- close if said if that. margins in them we said -- we be we put to and at that out, our are in XX% our over

are ahead point European in expansion cycle. in investing the of time, well revenue the And at still this we

are growth still said we be. we So future investment the right with and given line where in are in would we making we

Yeah. it. Got

more previously. thinking a Okay. I term, XX was I said, longer know you

recognized talked to guys of million opportunity, the about a upwards I it, $XXX course just higher then one on And you one Okay. I over had let’s know accelerating accelerated to that know sounds be what seeing XX But call any much smaller, that the David, your it’s more opportunity of Fair you think, are Pagatelia, by European relatively years. how maybe of, that, enough. talked sense of being that any strategic opportunity? but that sense I comments about a accelerate could like be there level deal.

Yeah. The that what and the us impacted so -- that what toll we have. critical thing is integrations relationships didn’t the the is Pagatelia authorities with for important

company, the So if back go you history the XX it took within us relationships collectively years of to United our to build the out States.

So could you very a a that do could create you that as imagine European to Pan long that very, take solution time.

area And acquisition has add, at Portugal Southern we then, France, addition, look put if not level for only density in to the Europe tolling, in you one the already would Spain, also of density you so and as and highest to enhance Italy. but tolling look the together at Europe of have the ability of across really the in that relationship

exciting could really be nature of taken just us that’s the to years existing. to that accelerate because years done try type get to opportunity that a five the That’s to of have something to for relationship of able eight

I accelerating. So, be it will definitely think,

within an be be that will is I company. that win rental our the also to a enticing countries that have that solution which interoperable for hopefully, I we because listed, customers, car now much more, more the have it it ability think much will for

that be of quickly the accelerant. to as couple will are But, out. do it again, pilots going recognizing believe first an as get we possible that need So to we we prove

you have total be within And market, say, not want to our just what be. $XXX for is Mobility thought listeners, would Verra would clarification that million to a that out just timeframe, to that indicated addressable $XXX you revenue we million revenue what may put I be

you follow being just a addressable in sense total be alternative But the much pie clarified that or an given of Maybe space, of quickly that just this any the are $XXX the with to player you trying captured how already. longer market, Okay. up to can you Zara that, what it’s could of do think lack have you of presumably that on it? by term, on major taking a be doing lack lot million

a that’s that give you to would be point. would this I tough -- at tough Yeah. say the estimate

confident also pilots are in some our need get We position, out. but to to we going improve clearly that

better us let in come a now estimate. you we do that and So year will to a from with back

right. the Thanks Great. for questions. All taking

problem. No Yeah.

Thank you.

question Please comes from proceed of your Daniel questions. Securities. Moore the CJS Our line next with with

David good anniversary warranted. guess, and happy Tricia, morning, and I is

Yeah. Thank Good morning. you.

Thanks. Good morning.

on results Congrats of set nice the obviously.

any don’t expect some but color first tolling next hit too the in helpful? In York tougher Do the weeds of color maybe rate, on the terms comps in get first month. versus secondly, that you year, half? any know XX to want you ground at would And do expect of then, XXXX deep growth, year, City the or in I I half the half is the know on goal year through cadence of cadence. the to achieve that guidance, January mid-to-high per you running New into obviously, be that for business, just in single-digit any to organic second

Yeah.

part cameras, first of all go It really things got have chain of the availability beginning site comes the yeah, which take in are the of -- just of the especially down of and will caveat. be sort weather, part kind that’s worked fully New we to we why supply with the the so go, City, me we ready have we to we we is, to basically, Let are that, already York ready got out.

and be While don’t there ready where we is target for may capacity is XX. month the talk you to it’s There where XX we and to that. XX more. know part XX second the or certainly goal do have and may to want of it’s the are I the fully But be if that. months

what part, think for that we that going within But expected their am have tolling second out Dan, not move opportunity be there about for the Services Commercial And to that we give growth. tail in us long yet. a XXXX put are I on to cashless Yeah. the is going just numbers will is talking growth an to that

We do as certainly call for do QX you. we will our that

to Understood. enforcement, some other any on deal? some visibility And it going Georgia locations this the are be of back zone cities. color you for then But with other the around update having, David, safety opportunities gave York or given of City level New dialogs you the

Georgia mean, bit think, their York certainly, states takes get year New tailwind of open I a and I a inside legislation see a to usually first mentioned about other out have start or we proposals cities passed It to so I creates Yeah. got very work. for to that’s the that few. timing. consider several once or City consistent with the accelerating of you

anticipate hopefully closing beginning the closing going that might year. states start not -- some year if we end the of starting legislative right now. of of of in considering Other most next but XXXX, not at So hopefully the sessions it are

year. So have better a as of we pulse head will next we into that

then timeframe? move we it. [inaudible] apps, over new might further the on a sort any, as lastly Got technologies you needle on And the two-year of working products, to looking now down that look any other path think three-year

opportunistic. sit, going have I we but as mean, I always are strong to we we got think, portfolio be a No.

about as that think many sort doing new not new you I of so us think would buying might as products, you launching of anticipate products.

opportunities with we for of Pagatelia done hat looking on that. that’s I what there and think M&A like our hang to we success -- more and have So the will continue

Very appreciate good. color. I the

Thanks so much. Yeah.

you. Thank

next with of Palmer with Mark Our the Please question. your BTIG. from line proceed comes question

Good morning. Yes.

company’s is September of at free was X going significantly pace this M&A XXth, mean your cash ample quarter, from significant I below Looking leverage the at without the a second of which function it well times is the to down activity. be leverage company’s flow. net as pretty

get your sense regard that know So a stack to does parking, I want less and I to such where terms and title priority lie of have registration, up in perhaps, areas just list? with ticket your where but as about of M&A, all priorities talked you

Yeah. I great question, Mark.

to sheet diversification. continue So, growth again, accelerate balance our we and will leverage to

what take how adjacencies, already we is growth at So the that’s are Point and we the is, one. we two expand number point world lens of number through look that. doing which of do

EPC, look half that offer in So when bought of to ago product a when so was similar very a bridge to a a geography create at could very untapped. and year customers similar Europe, was a you that into a it we set we Europe

a that type ones that’s are looking we at. So of

if and what you maybe we would broadly, that we related importantly more look areas say, even hey, growth So expansion to are could think the diversification. about more

synergy would be Solutions So and accelerate adjacent you current if do so what and like would that for of U.S., that, leverage parking things and our the our side, U.S., have we we because in look to the we things all you look world say of traffic today with whether that Government opportunities the pretty like even management, congestion would those the or in could at we be ideally customers. management,

We to are to also to. continue that’s need going accelerate we where

have look you already made. if exactly Europe, are where something So that, accelerating was to that be Pagatelia at we we going

that deals would that, other we clearly are were we go if to able to So there want there. do

I at help general, current that smart or as looking the highly diversification we keep going of bets, long taking either of term revenue swing to think, adjacent category a us that well. But, the transportation things potentially are within our going for accelerate be are momentum in current

Thank you.

Yeah.

you. Thank

Our with the Lance next Please your question Cowen of Company. question. comes proceed with from Vitanza line &

going the quarter. the the incremental just to guys, -- margin. Government year the Hi. question is My incremental cameras. Service understand margin better on you congratulations back on as Solutions side $XX,XXX Government I new the Thanks, wanted per to with try install just

can you anything help cash about as think of flow stream? EPS we and recurring the amortize incremental costs should quantify there paid the there that revenue portion that what from is or that discuss model me either we would So

There is that additional Yeah. revenue. no it, is associated amortization no with there costs part for CapEx our on because

we in However, install other continuing client do we base involved systems to have camera our across CapEx are where that.

that currently they the this forward sales product are once at the have We that said to about of same margins rate go are subside. business the going

are a the -- So recurring just once just revenue. we service in on

XX% service a go and time between and have. people into producing should forward does that for processing business. work a margin incremental There XX% take revenue that Your basis of that cost, that lot be we goes on is that

much. very appreciate Thanks Okay. it. I

Yeah.

thus and session and our today. concludes Thank you. thank participation. our Ladies question-and-answer for concludes your gentlemen, We this and call interest you

a your and have lines now may disconnect wonderful day. You