Verra Mobility (VRRM) 9 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the Verra Mobility Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mark Zindler, Vice President of Investor Relations. Thank you.

You may begin.

you. Thank closed welcome discussing Third our the issued the and Call. Today, XXXX which press Conti, our at is Officer. our Verra are earnings Roberts, after be our Chief we'll ir.verramobility.com. With results market of to afternoon, Quarter Executive Mobility's Earnings Chief call website Verra the release Financial presentation, available Good with along announced Mobility's Investor on Officer; section the David on Relations me and Craig in remarks, prepared up anticipated with anticipated begin by Q&A. Management Craig, make open will David and during future events, we'll then followed the company. regarding the may the and of future trends future for call performance the forward-looking statements call risks and that to you difficult that uncertainties statements predict. caution guarantees such involve of not are We and are future performance from may factors. those in variety the to results due differ projected forward-looking a statements Actual of materially SEC described are in factors These our filings. complete our refer release Please for excuse me, refer please Mobility's statement earnings or to earnings press presentation forward-looking to disclosure. our Vera We obligation do to statements. not update forward-looking undertake any

during to and on website of turn we'll can GAAP sec.gov. With earnings found financial which is the at to website call included the non-GAAP refer SEC's to directly measure most release certain call, non-GAAP measures over reconciliation in these be A on our I'll measures. the our ir.verramobility.com Finally, today's at comparable that, David.

the growth. XX% a Thank quarter. everyone, for of revenue joining delivered quarter, we to third strong free delivered year by EBITDA you, and highlighted over thanks, cash year-over-year growth we adjusted last converted and service Moreover, Mark, us. of adjusted XX% recurring for flow EBITDA X%

look term as materially terms our Mobility future. I'm journey we to the the that publicly smart a continued warrants all success as been the incredibly anniversary shares renewed agreement. consistent celebrate all for a comes Enterprise a out terrific and milestone and report shared conditions become Additionally, now a leader XXX% we pleased our to are fully we traded tolling to earn-out partner, incredible contract pleased in issued. to longtime we are with and in a exercised has This X-year point are forward prior company, in with de-stacked solutions. that Enterprise with mobility with significant X-year we

executed $XXX program, details also has a further of million authorized our XX-month our repurchase Directors we Additionally, of previously new repurchase elaborate Craig the will remarks share his $XXX share which in program. million Board and authorized

financial our the guidance Lastly, performance our our and for due strong we outlook are quarter. again year-to-date increasing to fourth

suggest travel. airlines, underpinned of sentiment work sentiment demand the bookings no believe to domestic leisure schedules starting domestic steady business increased agreements, by XX% Commercial adoption tolling increases suggest midterm, Moving in And about all-inclusive durable see revenue roads strong related large secular XXXX volume over chains delivered in and through office is plans, of driven XXX% increased of to season. tailwinds summer increased XX% will from as increase and return a of XXXX into trend rental driven believe Year-to-date, to near our due with mandates head revenue of cashless companies that car slowing on increasing by growth Services. the remainder pricing in hybrid volume. signs weekend and lanes. We TSA and the We adopted the major we year. XXX% the operations the year we demand travel about an travel RAC growth, part quarter to rental by travel rentals, and in to an and prior longer exceptionally of the toll XXXX, toll travel hotel and this

expectations, year. This driven strong over by generating same intent our internal -- XX% the XX% The the focus and our period generating higher We market purposeful in over growth the this factors. from and sales continue area. several business expansion last of to than experience team FMC was

outside overall levels, small high line we our value-added to we growth the awareness tools to customer medium-sized the grow historically rate. we in single-digit we enhancing fleets, Second, capitalized and internally. On in low are solutions the the costs and our building near-term new core channels. have of distribution that market growth improve experience. moderate performed The penetration key of activities the business growth brand customer on to to rate value and that and conviction a our particularly go-forward the customer opportunity and a these expect with among base Commercial influencing And factors are has the lastly, offer base basis, reduce Services market FMC

well Recurring revenue, Government revenue over the service Government the reflects XX% quarter, the period on to of program last growth as for same York New which camera total and new year. and existing sales completion XX/X year new to the of XX% prior Solutions. transition Moving customers. city's installations is with from Solutions the expansion City benefiting decision build-out grew the with as customers monitoring to

we look toward our significant Government the future, growth Solutions are in As anticipating we TAM.

legislation favorable are County pilot per their in associated the increasingly San Glendale, estimate $XX Angeles, automated X a currently We safety turning million year. City major enhanced the Long traffic pilot environment to recurring greater enforcement Francisco. than continue speed as annual October, this to safety and into signed towards be for California with states to citizens. In and potential experience for increase program law cities legislative San program We revenue Oakland, Jose, of including Beach Los a opportunity

annually may if speed additional in the total the We years. be estimate efficacy, its of million future the program years, could recurring we allows. revenue opportunity greater within than expand $XXX as that However, program authority anticipate next few legislative scope the the demonstrates legislation

the cases, existing bus for we're use to seeking use speed school well enforcement. Additionally, momentum new WorkZone as in as speed extend expand speed and Pennsylvania, continued highway stop zone legislation automated and cases enforcement. The seeing for enable positive including is school arm and

and schools school arm in and announcements. discussed, new subsequent to RFP and monitoring previously legislation stop how bus speed are seek operationalize we May, legislation cities we on actively Florida the As Pass

Yonkers traffic of XX in preliminary by last Zero. We XX,XXX children for in are Vision will generating We our from X% XXXX quarter half will contract traveled arm revenue is the bus the to time, estimated we'll same in miles, of New cameras. billion -- in guidance and we first our and XXX the also call. I'm spirit more according demand fatalities buses a school a higher more, in the people year, city half shows of with equipped nationwide provide NHTSA, XXXX, died an that XXXX. half the fourth a safety continue this than awarded data nearly more our example of continued of anticipate the York and which first to stop back Yonkers, motor of This to protect on program in anticipate deployments miles school School and with a which color that vehicle vehicle see first great our system people over X% continue driving year. At represents be the time safety compared to purpose-built Public XXXX generating initial were provide increase roughly we the when half than awards and of crashes in XX,XXX decrease earnings to solutions we the pleased same report

work do to make safer. roads promising still some see it's safety improvements, there's to to our much While

We technology addressing role play public are can a safety. confident that our key in

year the Moving revenue was prior value key on up to Total services over driver, SaaS Systems. TX and X% of flat ahead year-over-year. quarter, effectively was expectations. revenue, the slightly

by financial financial customer allocation our year to recurring new this However, outlook. fourth quarter onetime an sequential considerations. down it contract and were million legislation, current enabling highlighted summary, We that, guidance. With customer-requested increasing through in our guide revenue was due incredible turn financial in I'll compared a renewal, strength quarter key over us performance installation due and continued to Craig, to year services. In growth timing strong last executing our revised sales results SaaS and hardware about anticipate capital you to to solid $X the our initiatives, exciting

to followed afternoon, conclude our XXXX the allocation. capital I'll of on financial joining and a overview with I'll Thanks, us and guidance, for David. out start everyone providing by Good an discussion our updated thanks results quarter today by call. on third

of dive want mention I I tremendous the requires transition thank briefly happen. well. making firm and accounting Deloitte move public report quarter. that registered into independent who our and is at third to firm the to Mobility quarter I effort, during Verra public to work The I'm results, as going are accounting hard want we teams all Before new appointed the this pleased personally third Deloitte a to

the business. consolidated recurring X, Slide and year-over-year our million than for to results, driven revenue growth. Now the more Total revenue performance let's on to adjusted by operating quarter, revenue strong turn $XXX for which X% EBITDA outlines increased beginning service

million product consolidated quarter over X% strong a revenue EBITDA defined of the this prior SaaS Government sales. From in XX% Solutions increased revenue XX% trouble profit adjusted X% summer City season $X EBITDA was by and the onetime school TX domestic excluding zone for quarter sales Solutions of business, Services million year. quarter total third strong product by grew was year of Systems, Solutions quarter, a $X from the New grew third program. At Product over $X the level, total segment year total majority last quarter, while a from approximately year, adjusted the service international travel the service the million grew prior by third million last approximately Government the core XX% were of growth over TX Commercial revenue The York about expansion of which of generated increased sales, standpoint, year-over-year, grew year-over-year. year. -- revenue XXXX. Excluding of year Solutions, Government versus was domestic product XX% and $XX as Recurring revenue of over the driven Government last Systems XX% speed the Services prior revenue and

Turning adjusted generated representing $XXX EBITDA to $XXX We've trailing Slide approximately of EBITDA XX% margin. basis, on adjusted a XX-month of million revenue about million on X. a

generated XX% the of of conversion or flow adjusted of cash Over same a $XXX free million about free flow per EBITDA, cash $X.XX we've representing term, share.

driven over Services in robust and which a year, is increase. XX% to on quarter, volume by XX% increased same travel X. the revenue period increased million We $XX revenue rental year-over-year third tolling RAC Moving last volume. of Commercial Slide the delivered

Additionally, XX% continue intended our our to produce as business year-over-year growth initiatives results. the grew FMC

rolling revenue mentioned, in success the fleets. FMC exceeded business David driven we've internal expectations by experienced small- and medium-sized As

to Third the quarter due strength seasonality about adjusted margins X% and quarter of up $XX representing about XX% EBITDA year were third in to Commercial EBITDA compared primarily XX% Adjusted of million, RAC year-over-year of growth. Services the reflected was normal last tolling.

Driven business. for City's Let's turn and service quarter. by a look expansion X, take New by the $XX same enforcement we'll or the Solutions York results Slide increased year the efforts, to Product period over of revenue $X Government primarily at million million to million for was revenue XX% increased in reduction the was margins international the last is quarter spending margins of about $XX and investments quarter, to the year driven and EBITDA The $X business the million primarily for versus platform Adjusted prior development due efforts. primarily was XX%. representing programs. on by photo

Now Slide turning to X.

results have quarter. slightly Parking primary slightly for onetime below $X about is fourth driver, revenue and which of product sales $XX.X internal services mixed Solutions. million SaaS $X.X in into the but approximately expectations. Revenue exceeded were adjusted expectations, of the value shifted million We and million EBITDA

our to university purchasing forecasting We the in have continue of the choppiness we'll made process several given cycle. but need process, evaluate improvements to

for is related than adjustments of per that higher third rate amortization, private of Slide which the Moving million, $X.XX net warrants. Adjusted income reported representing Having EPS, $XX share million at our excludes and of placement quarter permanent de-stacked quarter, share for impacted nonrecurring this was stock-based an about current quarter, tax including reported We've compensation our items, be quarter, $XX per we'll differences for is look X, the quarter rate a take income this of will provision tax tax XXXX. by other to a which last $X.XX XX%. the and fully to effective the leverage. mark-to-market

cash right-hand free resulting the you quarter the third page, flow, the with which side third approximately drivers $XX were the of $XXX net of third we On and million, of cash can leverage see The X.Xx warrants, primary a the strong net yielded for during that debt quarter. cash debt of in ended of quarter. exercise repayments the million balance proceeds

the end year-to-date debt of million approximately As have of quarter, the paid third of rate floating term $XXX we on basis. down a loan

Loan at for a December million in million $XXX a our we fixed stands with B hedging beginning end at balance a portion total SOFR from cancel that which floating cash generated a we with is for favor. From approximately million in notional XXX $XXX $XX the year X.X% move of quarter This of million, cash billion, years resulting have float a plus of Our SOFR X about of flow that point about we to XX% at free $XX rates can execute activities, the rate quarter. current instrument of floating gross operating $X.X standpoint, in in our hedged flow hedge of rate debt option approximately rate the swap. debt monthly event With in Term cash this fixes basis of debt. approximately interest for our

outlook XXXX guidance. we to remainder of our for million higher of on let's increasing are to to Okay, revenue and prior the year, guidance year-to-date Slide from range and a our the $XXX million range. have the end year XX that full of $XXX results Based our at turn the look

increasing from the higher to EBITDA adjusted $XXX are end the million We prior of our that of to range. guidance range million $XXX

We updated of million million. our an per range flow guidance no to guidance And lastly, for there $XXX increased share share adjusted count. $XXX is of $X.XX our EPS to to cash despite are increasing change free prior to our $X.XX

incorporates to rate is the transition up slightly we the in monitor. camera guidance Solutions trends. with to that modest the of quarter, Our to of revenue due in a service revenue fourth growth representing and in RAC quarter, a of be the historical typically reduction expected York tolling Government is experience consistent lower City anniversary completion the year-over-year New the installs fourth XX/X which

revenue. Solutions and expected growth spending business the solid services strength our sequential addition, SaaS cycles generate and in continued revenue is to normal Parking to In due university

of full a and turn around expect cash warrants. year, cash the net target a proceeds based Additionally, to leverage free of the over flow leverage strong of adjusted company, year-end with EBITDA net exercise past we along our the on net free capabilities by generation by reflects ranges, leverage nearly the achieving year-to-date driven the from flow expected of guidance The X.Xx be XXXX. reduction

remainder Moving of to now capital allocation our the year. plans the for

and basis warrants mentioned, David a As during the I remaining now third quarter. to are fully de-stacked with at previously cashless converted we the shares

of down debt call, bringing we paydown rate about additional quarter, as total in an our the addition, second on In discussed third debt our quarter year we for paid million $XXX floating to the $XXX million.

ASR the this you give the agreement result program, average the amount final will using through brief share At we've term an to and used the and to up update calculation final aggregate share an over full occur outcome to to like first the I'd determine about a $XXX of Directors number the XX-month volume-weighted X a repurchased Next, which program, on the at of the of accelerated shares the be of over authorized price approximately Board the average final XXXX repurchase the we buyback during time, end time quarter settlement of repurchase period. third shares of price in the of shares. for of of program million company's repurchased expect November share million million Primarily $XXX X.X of in quarter. The year to retired. million is the expected repurchase last an ASR

and allocation away, in and business. In and capacity of Take authorization attention $XXX this we a you a allocation strategy. the financial approach new a flexible our to and questions. any in of invite balanced We tremendous committed business are operating buyback This for we it to through Thank value our fantastic cash our delivering believe mentioned, remarks. concludes position, new Board our trends authorized the are the buyback our prepared briefly shareholders to summary, highlights today. David for capital on remain favorable flow focused to durable. This capital open As I'd like time, share Directors program. our At Irene line million time XX-month also disciplined Irene. your

Faiza have of Deutsche we from Instructions] Bank. Alwy first [Operator question is The

first, wanted So California about actually, you to referenced. the talk that legislation I

heard you then can over can incremental million annual say think that $XX go time. I it that drive million up to I of $XXX revenues

give if are more need just Or drive So legislation? seems you incremental million around low. curious color there that. can just outcomes bit And you that bit would a increase? Do certain $XX that a that just

what of So there. assumptions curious your in terms are

to would cameras of program pilot fixed The think of was David. to they Great similar that question. is a a do to it This allow. California number way with other about the states, decided Yes. state

and So I proof different the to in -- but that's anticipate then within of number. speed to the school terms go they certain it's And they we of rather from And is benefits for dispersed for the fixed and with in anticipate an they'll legislation and call, certain areas what the on milestones, the body program is of the the a status I permanent and decided to look in legislative more look terms back upon would a legislation. cities that based it when the start that, -- go from state. zones or expansion that across back would the mentioned sites, what how impacting

states have We had that started way. the other in same

it. Got

looking in then some And around 'XX. you secondly, Understood. models our refining Okay. the We're XXXX. year at for made comments where we're the at point

some as that how you're keep to So ahead should your but XXXX? I'm mind still what should probably planning -- I in curious are look things of know we we if in process, -- the

Craig, Yes, you're right. it's thanks. And Faiza,

at become the least but We fourth into quarter planning as are get little it's we still a deeper to the clearer here. starting in process,

range guess the at expect be If modest is clear total about CapEx. when we the I growth margin a a thinking we talked still revenue, today organic my we're I about margin and that same little will doing I about I best expect at Day, range. that right? I it flattish to Investor cash investment, standpoint, notably level, organic I how of in bit have a to land would how company to same see talk that think thinking So that and next growth be year, year-over-year that for in from about we're look think

I talking Solutions said Government domestically the if been think you and kind we've the for So of what remarks, space TAM prepared expansion time, quite in in in unprecedented. what David take his is some about

So to play have look be part, So in order $XX that of as $XX year-over-year year. the draw the additional be for of I'm on to we in we us right? to will our we next growth all with lead CapEx, capitalize which our to million CapEx, expecting it growth. CapEx see to million CapEx range somewhere will on

like So that margins. Day. the And Solutions in but to expect look Investor I'd would. the growth it we hope and thrust a lot do I summary, the say going accretive, have again, love of you'd a it's -- will going is increased Government to flattish where bit I of will to majority in organic be accretive, CapEx. expect a bit to

Cremo The have from is question we of next UBS. Nik

the on quarter. strong Congrats

business, as continued with? to bases the outperformance driving ask types new you're First, about new of that just gaining out customer I the traction the you're and wanted building such the distribution channels in what's FMC

sure. Yes,

you at don't to continue whole, year. management view and channel at say fleets an we've a focused I -- small that FMC. through And doubled an looking commercial So anticipate fleet to company. traditionally, would grow. rental distribution sort into efforts on we're year, is lot we a working would that fleet we're with next car those look a really through been smaller addition, necessarily that outside might have of sales And call that's we've our into is going a area on increased from of growth then One And you we fleet and of we've if as then in to that investing what this we resources looking obviously looked what channel -- traditional FMC. have amount at

I execution look then and at expansion just distribution. commercial call traction So it and a real channel the would core as we some a within different

Yes.

growth back the add talked we we consolidated overall to quarter lot would on us. the said year When thought this this half of surprised growth to the Just quarter, last the we rate. look like that, about a

break So $XX it's down, and you this $XX somewhere -- if business million between million a and quarter.

that Commercial growth So growth exactly we're the quarter, consolidated while like really, XX% performance. but huge. here really fourth in pleased with to expect it's it's look more growth material, not more rate Services We the the do

from The is next question have Daniel Moore we CJS of Securities.

-- Maybe with side. start Solutions on Government the

Craig, expenses enhancing bit maybe there described, really David, just It would color what's a little margins maybe that's sounds associated with that's expenses any margins flatter? you some helpful. into ticked additional lower, increased that little be As operating keeping 'XX, -- a programs. linger fiscal of versus bit customer-facing like, of or the onetime recurring Or sort on

Yes. question. Great

So let's second about for here. XXXX talk just a myopically

margins came bit. we investments in In right. of you're They platform really the they the centered year. of this QX, were this half the -- And some on is making back down quite that QX. are So were a

I somewhere been -- Solutions grow XX.X% still saying, So think to that land that I'm for all we're And going I've see range into QX, to in right? going year. to like XX% margin to going -- you're Government the

that's back the geography the a of of little So half between bit year.

As we right. look towards year, next you're

why it give is you can't I that down number down precise reason comes comes think timing. all a to and yet the I it

to be it expense it's run half get If ground, these done. that the the of depends our the towards won't we have half If some opening, right? going As the we it's new running year, expense. going front soon how to in towards year, to be to some of TAMs the we're can product back of that get are

expect being investment that business, where I about So same is. talk slightly to and the we the GS XXXX, rubric apply when year-over-year would that's flattish to in to accretive

it. Got sense. Makes

side, in-house RFPs more in opportunities TX, and the with typically and into of 'XX just see most and say how managed that of or the from? beyond? On competing the that maybe as it customers in been look about we do generally, Is come and talk incumbents to business opportunities pipeline 'XX you growth parking where have the

Yes, business, our we we enforcement. on small would as in ones particular at the look the products, on and focus municipalities SaaS, side and universities of I permits software then for for both those say I those a to is actually the markets. continue for -- have be of pipelines, strong strong we still, will going Typically, market while. around think, parking has been

more So they're than it are which obviously, where not people either they've that a been you're are themselves XX-XX would competitor. something depends using moving is base market they which considering to you. But often talking news reputation, managing is, especially to on strong I X already the or that really talks another. XX-XX such as have what to that's and a in good we university, customer have a about or say

expanding of next focusing kind really that on we're new with really as feel of share well. just year, about into going segment we as products of in wallet and So university good portfolio the

be being Got and authorization aggressive little relates the the opportunistic authorization? the it. plan me, around between to the these ASR a it be as or new more to last Is And obviously, clearly bit continue for levels. aggressive new to maybe

Yes. Thanks, Dan.

we look time of intrinsic related determination. almost we pipeline, a debt we on look every share the the is months. think is then but sort calculation great reevaluate at certainly price a go the quarter-by-quarter, our of what for then our pretty look cost our while, I -- sort we do capital we value and every and our we single at to of of Verra ability -- our and And look Mobility on our at to allocation You've a we aspect capital, X of a M&A landscape, and make at noticed

opportunistic of would our do so. very that we've and to all shows above, continue would anticipate So history the I on been we

next The we from is Research. Northcoast Housum Keith of question have

perhaps favorable your tranport an in I cameras. Is states we're your well? legislature over and more few of be X -- adopting in on? going absorb think are what that a focus forward or as is here going active It's legislation year that the been months obviously just hiatus there terms perhaps do to going next for we X state legislation guess the was in where you there's active Or

believe in is there's we as don't opportunity such no sure. front Well, What would thing that much have of incredible us. for in say hiatus. so We I

really maximizing the that and have California job in We done others. a opportunities Florida our are focused places like on of such teams great creating and

other be We what in of will Red the that a we continue Light obviously hard then look a really states we lot which offense in of some added and to kind and was key Florida, only do to did of to is on products took work it. state through

we're do that opportunities of and plus that. will. as see the anticipate I front much in we'll would our to U.S. New here so where the emerging us Zealand, we've focus think and opportunities efforts. in of got expanding to we But So going sort the you we And Australia of Canada some between in that's if wallet, think of it continue a legislative share in I have of

just Got on you. that. expanding And

perhaps a be like Light walk it there? is Red relationship get surety is perhaps it in Or already? almost that Light In versa, someone business? I speed vice adding I terms states can Red that or guys that these of else no able had you that to the open to you how they're X guess that and important leverage days. for is read mean But your that

decisions sometimes the an are more -- are making as ones be example people could different maker. zone different deployment, oftentimes the it's school even zone that It that different speed, and decisions decision because that on making will might meaning -- on set on not be totally speed or if a depend be a That's on the work speed schools stop-arm. depending Red may Light

great. the But certainly, are this had and necessarily add to that where "Oh, more it to way. So to you they're doesn't doesn't than often with we have, point the not, that saying, It occur mean that be contract leverage just clients. let's able would success we've other

The we of from James Stanley. Faucette Morgan next is have question

follow up on questions a the couple on I California. wanted to of in trial

Like to So time revenue up those could pilots. time million win award that at able the least? and to from what's perspective be if to your $XX then you're to potential pilot

to I would bill -- time would deploy a working how there's $XX determinations. late typically, to see and of in to mid -- some coming that turn -- period start details between we really million still multiple meaning we of making all signing when then won't the anticipate as next pens the a they're governor probably values sort anticipate final There's decision-making the it. on. year multiple through those cities there's I won't They sometime there's of awards through.

that's what would standpoint. timing from a anticipate I So

of Got then or you know I about think with and like you'll to highlighted a And bus it wins. about some down curve that red enforcement wondering mechanism should we used as revenue. Is that will description? how should at that then to condition curves it. an the those. the even wins? I'm related we lot and of get level And point. in school cameras particularly that of similar how on arm in And some come pickup these cameras, and initial times new people some as off think speed a revenue associated see light

Yes. We for stop bus don't different school really -- arms. it's

the variability moving because fee arrangement customer it's with these more things levels typically the bus of per of camera per around. So high a fixed given are

-- So per ago. actually to think do used longer do of it's so fee -- many month. a no of We that camera bit fixed for we more years it a that. But little

is have Louie The DiPalma we Blair. next of William question from

success-based million CapEx that of for $XX an did Craig, additional there expected XXXX? you is say

Yes. and almost again, what And part of Growth CapEx. as expect million not business the review and above of base, we'll $XX million expand just increase in Government year. $XX this additionally these to Solutions we is markets. I over into new a all increase to continue that the the large

CapEx, contract that those you is success-based generally far won year? that -- specific Are thus Awesome. have to wins that this may is tied

bit on some a We of indications have little it.

platform Louie, to some answer that the think -- direct platform think, number the but Some that, isn't tied question, of I in to is investment going right? come. But as investment that specific of on well, already answer X I customer, your necessarily revenue-generating is to some is certainly So also on. that that is there's be the

is pipeline also as the that speak. of Some we in

X me. final for And Great. X

RAC In for plans, haven't there a terms all-inclusive you? the an offered of the this are number opportunity yet large still of all inclusive? is brand And that

say -- get is what not but is would that, say it I about specific I fully would want don't too penetrated. we to

our grow RAC so still at opportunity to across that And we there's look customers. portfolio our yes, as

have we Robert from Dave Baird. question last Koning of The W. is

that XX% or question, job in something was as all is something it always. and Or to like In that Enterprise there year-over-year, inclusive? XX% kind maybe give starting crushed Enterprise first Nice in time this a up it sequentially, looked quarter. -- It X that right range. my like Was pick now? up the XX-Q else of take, up is to

Yes.

That contract seeing. you're or purely That new volume. is what a customer way that's So for volume a commercial contract airport new is did. the to not off

Wow.

that's line. great. of a rental So lot That's just

Yes.

for then going say, about share think complexity what figure on have residual buyback stuff, those best we the the way on all should -- diluted to just and warrant impact it, right? to And the QX the is then We'll probably like share for quarters and count? X because the to count, QX? now what's And take some of

Yes.

was I for one, Okay. waiting that Dave.

you. thank So

have tells in should what my that That's put comments. I So it me.

XXX to share count expect okay? So That's at shares, that XXXX. I million year-end year-end, be

average. Weighted

Weighted average. weighted average. a That's

is So after? that the the Is number number the giving for be you're adjusted EPS. to base going I'm you

average, that's of forward I because yes, use to mean very kind for we've that what the we're so got was going too. But just going -- QX Well, also that's helpful. I

Okay. Well, point. -- why don't just Mark. I It move over to ahead, at this be better will go

average weighted million. should QX, about For XXX be

you're Yes. That's lower little some buybacks into forward will doing fall that then And and now going average year, of the stuff. a kind helpful. because next

the about the way it -- that year that leaded XXXX. share all That the year take we get for way would XXXX, is of expect again, let's XXX take the When shares. all end to forward million correct. let's full is to the it count we And

conference. you time. with questions for no concludes us. at joining today's are this this And that, There Thank further

You may lines. now disconnect your