Verra Mobility (VRRM) 11 May 202020 Q1 Earnings call transcript

Greetings, and welcome to the Verra Mobility First Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Marc Griffin. Griffin. you, Thank

begin. You may

David market Good quarter afternoon, the afternoon Q&A. Verra Officer. you. Officer; open after Financial Verra Mobility’s will welcome announced up on then we’ll begin and earnings call. first the issued XXXX release with discussing our the the and is Mobility’s Chief With Chiodo, Today, me in Thank press for Tricia to call Roberts, this closed. and call we’ll Chief results They Executive prepared be remarks,

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

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

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

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

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

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

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

our spend the environment. to into some results, I first current dive we on time Before quarter would like

continues pandemic countries, aware, families the world. businesses As and the are to COVID-XX around towns, for create you all challenges

spared Beyond the are economy. impact uncertainty, of Markets and services. global for human struggling not in around while levels also world decreases health, businesses with and high products of virus the global has with struggling demand the the

we medical prayers and have out thoughts lines the to and As been goes those gratitude sharing front can on are our about we virus. go will that much fight our remain we helping do our And in thoughtful environment, as dedicated transparent impacted, as families staff our best to out finally, uncertain this to and what in are seeing navigate business. we that the the

pleased are That the impacts first to We how transparency with into results, our which before show minor addressing and we we COVID-XX. COVID-XX our shareholders employees our customers, the on forward to it. execution we and quarter those having sharing effects said, provide get relatively in business QX is results, look our and want to from are on

the overall comes car given global In Commercial the industry significant Services reduction our of rental with majority in rental three largest has segment, declines in experienced car from revenue companies. our agreements The the activity travel.

expecting activity highly are result. a and correlated to a in are travel as revenue decline We tolling material

XX% RAC down said perspective, be is month of some for the April. industry For to the

for our expecting for correlated second the similar compression and are quarter entire a significant of to remainder We impact RAC revenue year. the the

recover lifted year. believe during other the to recover, than and industry begin are economy the to nonetheless, economy, the restrictions recover parts will we travel the more but the should travel once Moreover, slowly starts of

XXXX. to anticipating volumes likely we and XXXX As we exit will XXXX, until XXXX be the not a saw historically below still high we in most levels return are

will update and available this year data Clearly, analysis. information as the based progresses, more a update assumptions the upon best our is we point-in-time timely made are with

given anticipate been exiting priorities we’ve have past, restrictions shifted necessary immediate the tolling foundation in expansion highlighted we – and that the believe product the and travel and said, the working potential we built our customers slow have tolling geographical our XXXX. That more to had our towards we RAC Europe of have European due to efforts address will customers’ business Europe in be pressures. to As

executes programs turn, paid segment are Solutions means enforcement Government anticipating fewer Our we revenue. school for variable photo which, of citations, and will local municipalities impact XX% that in photo in are which enforcement districts, which contracts,

to expect levels we year. the return over As of citations paid the the course normal economy recovers, to

variety activity school our in school CrossingGuard, arm experiencing from closures stop a of nationwide. bus program, resulting camera a decline Additionally, is also

fall, this the normal to and of resulting decline closer spending program capital this discretionary are all traditional stay-in-place material number to implemented return hopeful cost-saving causing will assuming initiatives. year; to of schedules. resume are included our measures that are discretionary elimination the business, orders have coronavirus nonessential the We and schools response hiring activity a we in QX travel in through freeze the expenditures. elimination positions of The corporate austerity on the all nonessential a of and In

were correlated in of volume our customers. of furloughed those the days, employees to approximately primarily for whose decrease our employees XX April, In XX% workflows were

above I well for compensation for period. same were Finally, Board for reduced forgoing am salaries QX Vice the my salary employees as at level entire President our the as of and for cash

extreme install continuing of built we business On speed continue City the The New program we expansion ahead the the pace challenges, York while the zone at slightly resilient is in incredible same as upside. facing highly economy, XXXX. has positive a schedule that of most tracking to cameras business global we like is are our school as believe to side, have of

has violations are and expecting most are number that York which streets, a The in the programs volumes not anticipating to camera dropped any the in in though not is New are installations. this we able increased City, slowdown the aspect even time, through these recent process bottlenecks highlighted of of have At important reports and empty have people traffic speed safety issued.

million ended $XXX.X the sheet, we with lines to to we on balance would credit. tap our highlight of not of I Finally, and any of have cash had like the quarter that

implementation previously, includes flow of cost-saving the positive remaining shows the which current Our the for year. outlined initiatives us cash model,

on reported decline to Commercial business million, half later discuss our XX% results, on this first which segment $XXX.X at to during revenue the moving in XX% year-over-year This of COVID-XX declined Services call, to the up The our during year-over-year. down of Tricia X% and $XX.X EBITDA grew million came detail our year-over-year second X% $XX.X year-over-year. EBITDA Now adjusted impact million, March. quarter and million, QX will $XX.X of reflects adjusted in

executing A early an are depending corresponding in the preparing currently COVID-XX completed pilot for Europe, progresses Rent conjunction tests In and Car we and travel recently with summer launch, the how integration with restrictions. on

geographical of our Europe be past, product the a in highlighted segment had will RAC in meaningful growth driver the we Commercial to our expansion tolling of future. of As all

and our other proof-of-concept pilots on office as investment expansion, of companies phase are next including hold The car back rental their integrations priorities. reassess

grew revenues million segment EBITDA year-over-year. Solutions adjusted up to year-over-year reported of XX% million, Government and $XX.X $XX.X XX% Our

cameras. product expansion Growth Government program in York the New revenue primarily associated newly installed the quarter included the with which was service in City, Solutions driven and subsequent revenue additional of segment speed school this by

initiative able with of public during on on the expand we bring to work the areas safety schools fruition continues times. enforcement these Department speed to to Transportation number and this New are Our challenging of important York even be pace, to City excited

cameras of first month. XXX installed per XX quarter, We the in an average

Additionally, lane systems. installed camera bus we new nine

customers signed During large D.C., new and Chicago the as quarter, two zone the as Washington, programs renewed we with well Maryland photo school Morningside, enforcement such important and for city of speed. as

of counties. on Georgia, there schools counties, speed XX many Spalding back Last both are we we believe announce two up. we has that contracts, across quarter, more for we roughly implementation Carroll opportunities pleased Georgia Overall, open districts in to once will school are announced pursue and which begun cameras those

year restrictions full On full global we our issuing global closures. surrounding duration time. March XX, guidance the COVID-XX and and school impact. of business to remains, this business uncertainty is due travel outbreak not That the we uncertainty Clearly, XXXX year by and will impacted its guidance be withdrew at virus, the overall our

We closely changes will recovery. these monitor continue measures positive toward for a that point to

strong the long-term times and Mobility’s executed we well Verra implemented ensure to summary, in beyond. and challenging In in these countermeasures strength first quarter

our policies of and and and stakeholders, our employees While how look are return or impact updating our and a manage its stay-at-home relaxed customers from our we forward on progress to COVID-XX to persist, our will our on shareholders are of these our it continued to ultimately begins to business the normal. long as remains to ability turbulent uncertain customers resilience the We business through in confident our all and employees times.

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

call open our that short today. a more provide performance good David, provided our questions. be for afternoon, quarter a non-GAAP We’ve may then we website reconciliations overview Thanks, I’ll to the financial on deck and discussing first everyone. GAAP results and that detailed of of up has earnings

along performance segment. If EBITDA by and in business on following Slide outlines the deck, revenue adjusted X, earnings which you’re I’m

in Let’s million tolling, U.S. the quarter segment, processes and of start XXXX with in year. the same and $XX.X declined Europe. X% quarter the violation to the and prior this services to registration the processing companies violations from delivers segment $XX.X companies revenue rental Services Commercial and management which fleet first title in Total for car in of

rental to for companies. its the declines the majority approximately saw to car segment derives for this XX% and growth tolling orders of stay-at-home from restrictions. provided of We services And demand March January due reduced revenue business This resulted travel February. and in then year-over-year of from month

revenue due with the standards, of XXXX. Adjusted declines QX later by credit impact company’s strength by new debt, increased the $X.X $XX.X and for $X.X segment of was million XX% accounting loss. XX%. standard quarter new of bad adjusted We’ll a EBITDA year-over-year declined Commercial The Even of revenue trends current of year-over-year Services margin talk for $XX in call. primarily in of which at in accounting the million million from impacted more million CECL, implementation considerable to showed the about profitability or this the the EBITDA

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

enforcement in from million programs operation photo which grew quarter the product $XX.X fees revenue million and comprised the quarter year-over-year and and for revenue, $XX.X from of service Service system. from results revenue Total is selling first installing was the X% of the camera monthly revenue, of generated XXXX.

We million. will show in be line the grew Speed our speed our end of portfolio, strength largest by to XXXX. service $X.X which continue

last period the million Product revenue up period of The quarter programs. was of Texas by by those $XXX,XXX same York for declined for the $XX.X zone million Red same due was light of certain the XXX cameras installation $X.X year. during loss the New the to for increase driven speed City. school primarily from

increased from in grew of benefiting the The $X.X sales Adjusted for in XX% large the EBITDA the this this bottom for business both up XX%, increase million from in period the $XX.X top year. million same Adjusted line of EBITDA XX.X% or $XX.X business and margins segment. prior million prior year. is to product the

the $XX.X Turning for The we period. discussed results from $XXX.X prior to million total revenue the or next business just segments the grew results first $XX.X XX% slide. the for generated same We for quarter, combined of year and the show of consolidated our million million quarter.

by EBITDA the strong of numbers very We’re adjusted Adjusted prior million times. post or year. $XX.X $X.X to X% million of the proud increased in in growth $XX.X from million these EBITDA uncertain

EBITDA adjusted first XX.X% from decline margin the in XXXX. were a quarter First quarter of XX%, margins reported

was of in EBITDA light growth performance. muted the strong adjusted Our revenue

to discretionary nearly Facing furloughed XXXX. conditions, realized investment our call, of the XXXX in pay. investment, anticipated The and cut impact XXX in and half will the cut changes earnings QX halted growth an an last abrupt in If in we the year these employees executive recall business. be turn we of of back you a back be economic and spending,

The share of current for year. compared XX.X%. Tax against expense of European prior per million period $X.X tax in quarter share an compared million to effective quarter increase The to for the reported was of the tax was the $X.X in was million, rate same for same by XXXX. representing $X.XX $X.X $X.XX reserves per quarter the the period driven NOLs. of effective rate net in EPS income the company the

to for in resulted high million prior reduction spend operating I volume change liquidity the million due time of accrued repaid AR activities $X.X to the million. want to payments cash $XX.X of and expenses The that first our the the quarter and These discussing throughout million been The debt. million $XXX.X XXXX to installations prior from in XXXX. liabilities spent of increased $XX position. as some we compared first certain year, quarter generated in flow generating of activities the $X.X in to cash from XXXX CapEx had flow We $XX.X of year. compared same company during quarter period made brought the on in our million in of camera the hand we

in XX, As EBITDA a lower X.XX% Earlier cash lowering to interest affording the from million. $XXX expected a debt XX-month of rate X.XX%. million and an was The in repriced lean is which lot our accordion change the facility on maturity flexibility, light, million. And covenant X.X of $XXX of annually. had netted us we has we is to hand, feature. QX, trailing by was term of plus million, March cash $X.X first it times plus if including interest loans, $XXX adjusted LIBOR LIBOR XXXX This credit against

next have ABL months We We is for to the on currently million hand $XX undrawn. the beyond. business and XX run believe also that cash we operations sufficient from a liquidity and have that

guidance could business we at you to in our its said, year year we of QX. That the full context to time. some in issuing trends discuss virus, That remains, wanted David not business April due XXXX the March be duration throughout our we uncertainty this how surrounding being and of outbreak impact. highlighted, withdrew will As provide business for global trend uncertainty and to experienced full the overall guidance COVID-XX

the car and in mid-quarter over In mind in at our we April serve have not internal in month rental reflect Solutions Keep XX% companies April prior Commercial segment saw April, previously on information the time. Government We business our XXXX. these declines numbers the segment same results same Total grew Services by that mentioned in are that month of of of the or based for indicated QX. over approximately in this revenue revenue some declines XX% year. the XX%

relatively Service revenue losses revenue CrossingGuard. program speed Red to flat, and strong. light by was But be continued portfolio, showing the in growth our offset product in

an systems. on to QX, COVID-XX impacted XX additional we mentioned, And our not David systems of or our of execute total installed to As order has continue we’ve our existing in full installation bringing chain cycle. camera supply as XXX today, year XXX.

to to positioned like million most on in on continue through current as manage During to believe liquidity, summary, of our and that hand this are remains million report from business. time, discipline operating In pleased Verra long-term that the our today. the has nearly Mobility cash we, $XXX for focused has XX I’m $XXX.X companies, to increased we well at volatility March and

the With that call said, up for open questions. we’ll

you. Thank

proceed from conducting be We with Please with will now first Ashish question [Operator your Instructions] question-and-answer Bank. Deutsche a session. comes Our question. Sabadra

the My commercial. on on question Thanks taking thanks question trends. for for color the my and April

like of I wondering product? pricing? the on has that give that tool So trending was color around decline been adoption new than the penetration, you Is color provide unlimited driving RAC you looks or performance? it better volumes. your of can any any including XX% And could product, commercial even Thanks. better if slightly revenue other what’s growth

Yes.

than less we car a So toll we’re I our had seeing seeing declines companies are is within little within Ashish, products, rental the that although what think, what said.

or in so But violation U.S. XX%. in Europe. in similar or our XX% it, or call So see business, didn’t the we declines either

later the revenue, at believe it extent, see do business month that And in sort the will to of experience so will but some up, April. least violation quarter. we that, of the think declines, that’s shoring in overall We

for unlimited penetration any color helpful. any That’s products, including – on color product, product? or pickup new And new on your tolling

other are No. that I service the there’s that tolling But Because generally are on to smaller are rental to are XX%, out to continuing a we are that going vehicles see road FMC we when the outside are companies in initiatives service RACs, so for which fact be you repair seeing the vehicles, to car look toll. lot a to there What within our That’s that. at serve is by business or order of continued us. continuing fleets that do product vehicles, business. sales the increase we think that there’s not and the down

a to seeing of sort cause bit well. we’re there. to that’s tolling from little So of going that lining benefit as silver within be of But going a RAC not lot there’s shift any our mix

than, helpful. higher trend New it’s original good the month, XX That’s Thanks. then that believe, XX And rate month. new on Okay. we And your forward? York the think I Is per a even that expectation I side, there. of going per the City that’s about should run cameras cameras think

get that’s same. No. operate just I of which original. to would at of But keep a continue do going is it things. to we the the the continue couple we pace, the But able to at would We were same it everything anticipate anticipate to ahead XX. given on,

we The them said today. QX that XX April were in XX. And we to through XX May. them in that’s were date, cameras and of XX installed in of

cut So right of the XX that you is range. can

you on maybe is that That’s the Again, cost was front. question thanks just benefit measures color I from saving on the a a the basis? Thanks. on saving And for Okay. to for helpful. all cost me quantify it measures. final possible monthly the for wondering,

started that investment taking really the sort to year. cycle – of and we we A expenses or could our Ashish. that doing that are But other in number this people for XX% have down things employees turn statements, furloughed we of say XXX lot you that that had from you, our No, don’t we financial we’re earlier broken of shutting measures. out some off

quarter. pretty first helpful. on again you. very Thank a Thanks congrats and strong That’s

Thanks, Ashish.

you. Thank

next comes Stanley. Our Wald with Steven proceed Please question. with question from your Morgan

of Maybe Great. cost Ashish to I through Thanks and if through you and was think are car trends, talk think I healthy. piece. the the for start of Government, mentioned sort David, Commercial flow time. I walk through but the said over hope walked positive go is decremental incremental taking and a line. guys you seeing that sort April margins I you’re you’re decline quarter-to-date, and up. question XX%. savings like out, move we in how it But guys sort my know, on touching that? you’re down, XX% straight you cash on could through down a shouldn’t thinking safe the for about sounds the being just rental I year, you know But of could you But

through So you us the over how that could moving directionally just walk course see of you the year?

Yes.

that decremental this within the But directly The peak last XXXX, of could you incremental in margins flows So fairly you the revenue line. were increase XX% Services margins bottom QX that in line because had year the at they surmise are the seasonal of that the to unit season business Commercial entire top high. across had year. look margins if business XX%

that there’s cost the the for early to decisive out falling the as of on natural was either take actions us structure we saw volumes grow business change the it to which QX. business as off comes is little of important So very so why of in shrink, or sort business

about any there – there? down Can disruptions, terms that or new helpful. Government terms lot in have through those or you contracts seeing of guys activity contracts shut the and your Solutions? in Are Obviously, maybe talking And you side in plans? whether on in Are some government there it’s switching the new for are Europe winning anything governments in being that. anything unnecessary towards the side of That’s states of a interaction like just seeing anything getting you awarded talk you’re at even terms just of of expansion any disruptions level. dialogue gears

and get And way RACs is technology, in I enforcement level reasonable by of the that benefit general as interaction opportunities of on Europe each government one to slowness back with to general, that has think related Yes. up. what’s a of opportunity of obviously, sort we’ve when. different there’s state, stronger. seeing officers we operate forward related that’s that mandate to to Certainly, is actually going a always one, going only in going with the as traffic a to as I photo it’s the harm’s out to a well personal and we sort because police we’re as and to things I think think still mean our happen of entities how keep espouses because, of of quite to the open enforcement you’re uncertainty bullish what going

we program because of And would revenue. that anticipate does generate still a exist today. Europe It’s it happening doesn’t –

for decision-making French on just a to XX in We’re they a are still other move I the don’t environment. again, companies our such operation can want related We – virus car of too that hard put they battling dynamic But still company have planning to for June that certainly a anything get actually because ground June they because the moving. launch all directly. priorities given rental in mean, of want launch to the these

you’ve a actually super That’s If comments the I one M&A noticed I the could kept squeeze to previously on and slide that added included. quick guys you just helpful. I in. Europe. appreciate

what I Just your you thoughts cash curious, like you certainly, updated in more been are your good valuations liquidity a guys around updated position with smart know guys has the that? thoughts, feel are on you’re rational becoming quarter-to-date. – space. potentially your rising Anything And transportation

that year. think there’s I of – M&A Yes. half our buy say the to on the as into is we strategy, very go we a I would of given as I so to to And one look now. going side important more for will the opportunities, overall lot are think, – opportunities your be is, we been it continue mean, think I always clearly we has back

loosen least to I what is still the markets, say has back desire front. on suspect I that centers, now, in way start into that, think that would but stopped to a – I but I little more more And that or Because I are tight part frames parcel of that with loosen and I we credit they right our valuations financing will clearly be to like at traditional would up. – four will guess up. very continue we we financing, on to And no think or mind have continue five ago. deals, you do agree reasonable to come to than to slowed aggressive were and have in months that,

Thanks. Great. I appreciate it.

Yes, sure. Thanks.

you. Thank

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

Good color trends afternoon. you question. your and have the the perspective, you can continue Hope and my they before feel Thank for get now well. you’re cite with taking to does know are you I see stabilizing? to worse all is Or any like worst realize the trends April certainty, things behind on while it from all difficulties in better? I get

partners longer little you that it the half – anticipating don’t probably for believers bit. they’re – big our to you like bouncing a if that in publicly, around we I back bottom airlines V-shape the recovery I pretty bottom to listen it’s of the don’t know if of recovery. know And worse. one, the suspect might feel slow the, at be a they’ll listen I publicly, like sort travel more year. we’re we’re of or towards the a rental muted given announcements car feels I get the

repeat couple probably good is think to probably be question a overall, TBD, is itself do April would more least we The indicator. – believe is But months. we how directly long a at that we but attached that. will So we’re April

be just your customers. Got How to a event implications it car the your it, competitor? business to on as car does was in of your from customers And event in you. those okay. just I’m broader Thank soaked one in be rental a bankruptcy of up kind the the of both impact you the those do would about how get that days sense days I business you of impacted fair one I assume to car discuss of the trying rental by a hoping industry would think think larger could Is well. under? go rental

to at solid way operating inside to good if years the their end I fair businesses public ones well, like everybody look of else, publicly they a out two the growth were held think well Yes, very, amount – them you caught had and associated new really was plus but because very best the of both still it companies rental is, XXXX, volume there. had private COVID-XX caught the that mobility. and about there the with they think adjusted are just were car

to assume In tolls that of program they would operate have we to essential because that the to for – bankruptcy, car have their case rental programs for and would their continue they customers. our be would to ability their the pay

keep going. you that they would So that’s to would of part one. something that Two, it is a revenue-generating want piece business for That’s them. anticipate

in going two, of we one would bankruptcy. excuse other operate, albeit other two, continue the to of would just context say one the are In that worst-case or under days would case, car the anticipate get those rental by you you a reasonable me. So both to filled of the scenario,

for sense. my Thanks questions. taking Makes

sure. Yes,

Okay.

Thank you.

question CJS. Moore next question. from with proceed Please comes Our Daniel with your

the thanks Thank for and afternoon, color you. Good again and David Trish.

tied the Services And roughly if is maybe quarter revenue services, York year-to-date think New transactions Wondering I date it percentage I your expectations? just citations that on heard like more us far what – versus government in the non-product were price? are so the citations of ahead are you fixed experienced portion running of remind to Government of side, sounded up.

Yes.

New speeding are is York New is citations did within So this actually York – up. tied to – overall David say

associated variable type it. and of issued. with things. revenue That a revenue the the volume with New we have, change the it, client, a that impacted total you by XX% business. revenue ancillary from in that be of number coming York associated We side clients impacted have stream revenue do is doesn’t fixed citations revenue overall of be ancillary can our so include fee of can includes by the for probably couple service if particular It

approximately we by, So are would revenue influenced can get days would later. those down on expect also if down, be It going paid based generally, go you XX citation. paid

the actually down, can that pay that So citizens we of frame But What declines cycle. of seeing meaning conditions delayed impact lost are tickets which but payment get paid. seen end for that statistics. not may that They municipalities they in allow dramatic can go have rates through as April, to are go March some their extending under, it these time that so people this understand we is of be the their declines, down, and number who the but are as some the somewhat us not revenue economic their those citizens into was well. going within

elaborate relative to And of then, helpful. uptick maybe on bad in the Very CECL. implementation Trish, just the debt

explained you or rest I But I the that little of missed apologize. it, color impact and maybe and QX a the any previously, it year? that, might in If have

Yes.

So the about we standard which or is us reserves. credit implementation reserve associated how little bad differently a accounting debt the with new of create CECL, requires loss, think to

it on government – business. $X.X there of of was was increase of business, in this specific the in thousand year, by couple change making million it at actually of million debt, revenue $X the the think they CECL. that Commercial I hundred to later side a rather about then solutions that I time is another had identification bad of related that of items generated they’re the reserved the So than in And impacted Services probably impacted QX And think on.

debt year rest debt slightly that we their we would And we not you’d of would expected through have bad the the bad of pay because for year. COVID-XX. rising have conditions will in bad of we We customers to the as did able the consider debt relation higher percentages to this to being use because anticipate that due move economic

So we a of sort QX. lot of baked into that

So you that throughout have the quarter. this year, higher the we as might bad to move slightly debt you in but not saw extent out

even not a forward. So revenue as going of similar percentage necessarily

a – chunk of took essentially? You QX, go in

we Yes, did. We did.

okay. a then will as XXX but benefit they quarter April furloughed Perfect, employees get sort Or of were it. the And there? is housekeeping, partial of Got you furloughed, X? this

furloughs, early so April another of like, sets two in call did We XX call and furloughed. it, XXX were May. them of it, most people So in

Got it.

Good from it appreciate the it. me. luck, think that’s for and I Thanks I color.

Dan. Thanks, Yes.

Thanks, Dan.

you. Thank

with question Koning David last question. with Baird. Our proceed your comes Please from

And basically a have you. municipalities number business, first guess, kind of on ticket thank all, yes, guys, tickets. of Hey of Yes. do I just the set just

no no are change how to not matter or driving matter the sensitive basically much their that? I insulated the traffic being their by so on get buses on like what standards, revenue declines? are school So road, they’re road guess? to to aren’t end up They they Or going you pretty or willing pretty and

only they cameras their whatever take. No, get

being So will taken – and they them. if revenue. there’s no less no there’s have There’s for guarantee less

Yes.

working they systems installed the And than have year they’re should when citations they’re are fewer speed. So in the if were so. reduce they after installed, did they’re effectively, to first installed after designed they

get So revenue? more they over speed an a the take hour don’t change from to over picture to an just X limit XX to miles hour miles

No.

No.

normally they’re do. looking safety. they their that and No, after that’s They something seriously, take citizen’s this not very

Okay. has off at like dropped looks time. It the he this line

Okay. Are other any there questions?

this questions time. no currently are further at There

Okay.

right. All

thank wrap so We and you much. up can it

you. Thank

All the right. telecast. Ladies participation. gentlemen, This your concludes the and for of thank you end

You day. your a great this may lines Have at now time. disconnect