Verra Mobility (VRRM) 8 Aug 242024 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Verra Mobility Second Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Mark Zindler, Investor Relations. Please go ahead.

Thank you. to Second welcome Call. XXXX and afternoon, Verra Quarter Mobility's Earnings Good earnings available we'll announced of market after our results discussing our close which our with Today, the issued website in at be Relations the on Investor press ir.verramobility.com. release along presentation, section is the

the Mobility's we'll remarks, Chief for me David Financial call With Verra will the open following and Officer; begin are call Executive on prepared Craig, Officer. then and Craig up Roberts, with David Chief Conti, Q&A. our

risk Management during events, of based may performance differ complete in may statements due call anticipated we to make any to variety involve caution are the future beliefs our refer company. those described are and from the and future forward-looking materially Please this statements that presentation a performance statements forward-looking you risks update the Verra difficult forward-looking filings. today, assumptions predict. not anticipated investor and not obligation uncertainties make Actual statements future are to projected regarding guarantees that such results trends press our future do These and of of SEC We are the undertake Any call forward-looking factors. and on statement statements. disclosure. for earnings in our on we factors and release to forward-looking Mobility's that

on refer at non-GAAP earnings the can measures. presentation, financial our our found will certain presentation, earnings A these to included call, comparable directly ir.verramobility.com. of most to investor we GAAP non-GAAP quarterly website which of Finally, measures during measure be today's release, all in reconciliation is

I'll turn that, the With David. over to call

volumes TSA as and us. with consumer our adjusted by latter at expected, stands and thanks, earnings strong in second of the EBITDA revenue, for balance second XXX% anticipate a a with we're and the year. businesses and strength volume strong June strong had Travel half of Mark, driven as We passenger you, the line the continued have demand of year. performed demand to period, poised remains more through XXXX everyone, XX for of The business and directly we for expectations. robust, Year-to-date same are general growth. the potential joining demonstrating Thank quarter with

bid In Solutions growing. enforcement for automated our Government business, the strong pipeline and is

Second in awards the quarter bringing ARR my up full year-to-date to bid rate, in later contract $XX $XX and incremental ARR represented explain I'll approximately million prepared incremental million. our remarks. run awards opportunities on at

was adjusted back and second demonstrating X%, Transitioning our to highlights. portfolio our X% over prior the EBITDA adjusted strength EPS increased quarter increased the businesses. revenue growth X% of period, Consolidated financial of predictable year

remarks. we year-to-date his and elaborate performance Craig guidance, on our outlook reaffirming in of full remainder XXXX for are on financial the will the Based our which year, year

commercial team Now travel moving our on domestic performance operations. unit to The continued business. outstanding delivered our and trends results, strong services in driven by business fleet management durable the strong and

year, and car due of the of $XXX of EBITDA up about last basis points XX% XX% million the XXX were quarter primarily adjusted quarter rental revenue year prior Second margins tolling. over over grew to strength

tolling volume throughput X% XXXX in of tolls of which all and was TSA quarter Second in rental resulted adopted about driving agreements strong increase growth incurred, rack XXX% in revenue.

primarily Additionally, tolling over driven and growth million FMC our prior enrollment customers. generated representing FMC the business vehicles XX% new $XX quarter, of increased the from of for revenue by period, year

cities were period Total customers over outside safety. up the revenue, To and revenue, Moving quarter same about to XX% grew of Solutions. last drove on for growth service which product revenue recurring over from service we Recurring total service due efforts to improve revenue of expansion implementing The to New year. by factors. existing X% reflects revenue new program was prior sales XX% year the driven growth Government City, quarter. road photo XX% this these enforcement point, including the York international

quarter on enforcement. update award actions elaborate strong an I'll supporting legislative the Next, second quarter for earlier and activity highlighted automated a on I provide

As $XX about million bringing second for incremental Light million. contract about of $XX mentioned, in total in contracts Of we quarter, awards million ARR. Enforcement, won ARR we representing the note, awarded I were to ARR year-to-date in Red the representing California $X

for We speed are are to excited California and in pilots. impending compete highly engaged program

advanced Tempe, authorizations Florida; New legislation several $X notable Other about all include pleased Zealand, of across which to am in in speed also locations million enforcement total represent and awards of Arizona ARR. expansions advanced was -- enforcement several I work expanded newly Light, report Doral, and U.S. Red incremental enforcement and school speed Red authorized authorized. zone Light speed existing the Hawaii, to zone In was programs. that and Minnesota pilot speed the automated automated across enforcement program

stop pilot Work in was Speed arm authorized; for in Additionally, authorization Pass State on a bus program Vermont, Oregon, finally, enforcement. school the and

state an as truly local to challenges. solve is traffic most and technology industry for our embrace time exciting our This safety important governments

the the enforcement Over expand about the to past U.S. for potential total seen XX months, XXX further we to than flows. greater -- further by in million grow $XXX market as $XXX have automated legislation million with

automated Transportation its deadline. expectations the cases With important before its requirements current and outlines RFP clients, Moving operating potential New support a enforcement City. New services use on being all ability look single our the most maintaining and we will among to future and on the forward submitting vendor The existing programs York with of or qualified expansions. any the back-office City RFP to York proposal City's In July, a to traffic programs. that agency's run released for the Department for for

the total to from a and second approximately on software quarter revenue revenue for of we to onetime year million brief compared million about transition prior the quarter TX hardware product structural and solutions. $XX We update Next, due Systems. a generated as away $X mobile anticipate towards declined

dollars year mid-single professional the SaaS revenue. adjusted onetime the quarter. quarter, yield year. and grew for to low decline experienced EBITDA we anticipate Adjusted the the a to be million margins in was Recurring $X prior revenue sequentially decelerates, and services balance over increase revenue product this point of quarter As the over we also for digits

to their As the help cities mobility incidents market, learn to municipal investments. we More leaders leaders these look challenges. have out with to needs safety traffic that corridors seek on and optimism to priority for reducing our technology half investment steadfast half transportation focused address the want road a we're their for technological as our Wakefield in top confident solutions in continue with than will you X. future would high of Research identified We tech-based the urban of company a to technology solutions. mobility recently survey partnered asked what We monitoring were going be for your X responses their which safety technology and solutions urban fatality are options more most than for top-of-mind customers. of AI-driven top When that remain jurisdiction,

capital repurchased Next, buyback leverage selling less deployment. million leaving We authorization. capital at X quarter, shares than In for stock second net from open turning to allocation. a optionality under we million maintained the X.Xx providing our future stockholder, $XX slightly

The investment. evaluation also Smart We in continues Mobility opportunities our specifically and for within active of present M&A M&A opportunities. market to remain

into landscape examples companies, we we mobility, scan within more markets to of are new to begun for As government technology safety have look software our our market urban we adjacent Adjacencies and deeply markets vectors portfolio where for public be and to continually expansion experience into. growth. broaden look of leveraged can that

a performance. do had We're we've in financial the doing summary, to we said In half terms great of we first year. exactly what

future, bid and the to and great robust remains and as This our continue pipeline demand additional to look travel I execute against growing. forward a is Additionally, a is with sharing strategy. bright stage strong growth we business

financial and it the us XXXX through to our over Craig, results guidance I'll you turn guide to discussion.

and today. appreciate on everyone. Thank joining you hello, David, the us you, I call

revenue. Government for Let's the revenue revenue Solutions turn and financial commercial included which total New revenue the our second We're growth X, was services for in recurring with business. which of York Slide pleased business outside QX by key City X% the and performance, demand the quarter. measures strong X% services driven outlines travel to recurring The the in business growth recurring growth service consolidated

Commercial the was by over international Systems Product services of increased in and revenue revenue $X the flat million an last revenue $X increased to million solutions. for $XX contributed XX% GS by product grew million revenue Government for over increase services sales Services quarter, level, product overall driven the year. the year, and delivered quarter SaaS second TX TX Solutions primarily At about the while quarter. X% prior sales government segment and year-over-year;

effective tax favorably was tax includes the about of an tax adjusted million, of We versus certain This quarter, income of XX%. quarter. of consolidated X% $XXX the items, the for a rate net EBITDA which representing last the approximately impacted million, $XX an Our discrete provision year. $XX million for quarter reported including rate rate increase for

we XXXX. stock-based for quarter XX% excludes full year anticipating second $X.XX year the compensation are prior for year, per was nonrecurring other approximate $X.XX quarter compared GAAP to items, of period. the per in the and rate. amortization, second which share for $X.XX to the as second per the For $X.XX Adjusted compared quarter share EPS, EPS effective share an share this tax was per

second of EPS XX during year share despite our and the in completion count grew nearly due the the quarters shares process prior of additional third million over the XXXX. X% quarter to leaseback

and timing million, for $XX as the cash $XX collections quarterly we rate totaled flow activities large cash to quarter, tax due operating seasonal by million run delivered was the comers. provided flows free which timing below of our several Cash payments, amongst of normal

million a days July free in $XX benefit received approximately as and result. in will cash collections were X third the latter, the Regarding quarter first of flow

of X. $X.XX revenue million approximately to adjusted EBITDA representing a We've margin. adjusted EBITDA on $XXX trailing of the Turning $XXX generated Slide for XX months, million

the of XXX EBITDA a generated average or adjusted flow weighted trailing XX% base approximately we've of million shares. XX Additionally, a conversion free over on $XXX million of cash months, adjusted

free is for conversion adjusted quarter, cash We in line full cash expected to by a EBITDA in a sequential quarter, year all fourth free which drive flow the of our in expect followed decline XXXX with a increase for the modest large third flow of guidance. XX%

$X Next, through year-over-year million each travel robust or revenue same volume growth last quarter with was in about increased in Services second of tolling X. quarter, volume. on CS over the period beginning revenue X% Slide and business by increased year, driven second the performance X walk Commercial I'll rental our the Rack XX% segments,

or volume driven new season from leverage began XXX grew Commercial adjusted margins as ramping of business XX% EBITDA about FMC enrolled newly basis driven expanded about $X the to by nearly XX%, year-over-year, growth up. points driving customers. our by summer million vehicles FMC Services tolling and and enrollment the Additionally, existing

growth growth. outside X. Total in Turning New the the product bolstered Government non-New to the driven Slide year over York sales XX% in recurring revenue City. of XX% strong City growth grew addition prior service revenue international Solutions revenue service growth York to quarter, strong by revenue quarter, solid by had

Adjusted the business development our margins $XX portion revenue for was is margins quarter, EBITDA versus platform of spending primarily a XX%. increased due on investments mix million in increased The to year the prior reduction the international result and product of representing of as efforts, non-capitalized sales.

a EBITDA down SaaS X with a were over a of fewer Let's million services Breaking million year-over-year of revenues the segment. is prior our SaaS quarter. sales by generated adjusted quarter. prior $XX in reduction approximately the revenue for the in flat and Systems, quarter. year view million mid-single turn $X in $X digit We the which Solutions year product for Parking grew and SaaS the revenue to bit of revenue further, quarter, TX service offset Slide

in to sales was product in increase the X a decline this past reduction offsetting quarters. in due installation professional and services However, the other

Okay.

X turn take balance leverage. sheet and to at Let's closer Slide discuss we'll and the look a

of modestly significant ended quarter to of with during up second we've liquidity net undrawn can a revolver. due basis our with on and X net balance quarter. you level a As maintained sequential see, with X.Xx, the quarter shares million the the We debt ended repurchase credit we million, $XXX the

billion, $X.X floating which gross balance $XXX rate million year-end is at approximately Our at debt stands debt.

that notional discussed the floating our hedge we've canceled of $XXX approximately and total debt past, over As a our of swap our float with covers XX% rate option. for in current million fixed

Okay.

which have Let's Slide quarter. discussion XX turn from guidance, full look our unchanged to last XXXX year and at remains a

on For major purposes refresher category. a our quick review, you guidance of give by I'll

through about of finally, the range. total compared X% expect net $X.XX additional made of investments beyond $XXX the per range of million. million in revenue XX adjusted second expand is Xx, flow We quarter. land Adjusted will anticipated And allocation year. no approximately share approximately leverage expected the and we've of assuming is to growth EPS at margin upper free cash to the points basis $XXX end capital to Adjusted EBITDA investments last at $X.XX the

in EBITDA revenue adjusted anticipate quarter. We and to the increase sequentially third

we quarter due low and in then expect with revenue we XXXX reduction as forward and both to third we margins adjusted to in expected demand a Consistent Adjusted follow EBITDA in single-digit sequential quarter. slow historical EBITDA However, shifting revenue trends, the the low expect the single same to XXXX, to to experienced growth fourth sequential are trends. would digits travel

to quarter, digits declining quarter consistent historical with third the mid-single mid-single grow in We the expect fourth and sequentially commercial in to performance. services digits

sequential the Government revenue growth of low year. over the In Solutions, to expect balance we single-digit flat

deliver to revenue Parking Lastly, to year. flat is total Solutions expected prior compared now revenue

in SaaS, installation reduction solutions. comprised reduction sales and onetime industry the as a services revenue is focus in mobile by a on software temporary the demand discussed, offset growth of related to transitions in and strong product As

year. adjusted expect in sequentially to over QX basis margins with quarters year to last points XX We the EBITDA about and XX grow of a full third fourth

parking SaaS and long execute as to transactional revenue growth strong we expect Over organic term, to growth the strategies. our return we

adjusted Other deliver half ability strong and EPS assumptions confident free summary, In XXXX outlook. flow our first key to our to I'm year, Slide and in support XX. the be had we can found a on on adjusted cash

landscape cashless on long-term for continued from our urban on as set up other tolling commitments. number end tailwinds, The strength and We growing markets technology robust mobility well secular transition a solutions. focus and have growth are and a strong benefiting enforcement our of our well continued to as of to execute travel, us execution

the This remarks. invite Thank Over like this prepared open concludes any questions. I'd to line Jenny. Jenny and your to time, for for At to our you you, time attention.

question from Your from Bank. Faiza Instructions] first is Alwy [Operator Duetsche

incremental characterize wanted sort So level? historical government your competitive a David, of for the thanks you competitive with in activity Just all you ARR rate? around I line How and around type more what the Is winning? bit give there, about the ask solutions. are color landscape color contracts would of it us to win there.

United more we're with They've we going as expectations. number of our our of rate, would couple areas say competitors total the you I the have definitely that One, doing because that both line dollars our the is competitors what really the that bit country little there's where Others a open job the of in would would in in we're have win generally little a we've on to competitive job but the in then historic is I there. feel more are are the done we're of It on country depends seems what up the Yes, general, number numbers what accounts, good bit of so contracts I our is terms the more there. overall. a focused to and call been similar course. that a landscape work important after, major in Northeast guess, is the really, really fizy. or just where of a that southeast good -- all I as in well like focused States. But are. market. in done west the competitors world, obviously in which less we've some And say certain mostly and of a In the on other

had demand of expect Commercial are in travel strong sounds Services, you growth to sort It quarter. continue. strong then the that saying you And in Great. you like right,

seems confidence travel little some bit calling It around are there. for a up there's Just like of little I talk about your consumer are a the out companies factors demand. And bit any a that environment. little there's other -- in are bit more slow slowing? wonder there Just making more if concern

about confidence more your a bit talk there. So

Faiza. Thanks, Yes.

remain, safe And general, look customers, you're what the airlines in first the It coming range XXX% I XXX% throughput. the quite demand versus was commentary know I second in frank in some think quarter to. It continues was with mean was -- largest if and July, August. in it's in year-to-date. of to XXX% XXXX. XXX% the I right? But XXX% that that from referring around was It throughput quarter. our at you is

we So seen not yet have that.

So we different. haven't heard still that travel going is think go and forward, to what that of seen the experience I level we've year-to-date anything we're

offsetting add business would thing So that were down to only slow consumer travel change see the the And other to TSA continued come we that's think and the the seen through and on think we've it's an I right? to X the really is really, year. first hold return flat a have degree qualitative months a that seen business the there I in bit travel, I we've to increase that through in XXXX. what why

question is Securities. Daniel Your CJS from Moore from next

Wanted commercial you've to on this margins sustainability exceptional just by benefiting those about in that levels in segments, But margin, made. bit services, we some margins beyond a strength. just with and Government year, 'XX, conversely, come bit the then but investments of XX% and necessarily of seasonal not as little maybe digging clearly Solutions a talk look from

programs the some operating out about as come of leverage online. look we for opportunity new talked You and enforcement those

Great. Yes.

a So in question. that unpack lot to

said going with company about indication the So some Overall, thinking at points, start do think I consistent how basis which to the I XX year, to think for going I'll we're we happen we're accrete you then give year. year, I'll and the of directional is with okay? for the the XXXX, what my beginning best. I'll what in for is

will be going TX down up have X. flat to XXX is about I a think and be GS probably will near shaker basis to points. slightly CS

you up out, if that XX again, you points. basis So cost to get

summer Now one thing in season. the for XX% on we're where CS driving the

potentially bit but the So the fourth third that quarter, tick we could in will higher maybe quarter. see that even back in a come

Okay.

For the right. CS sorry, GS -- for business, you're the

the If which you what margin which XX-XX upfront. roughly the you seeing split will think doing that at But out, agreements, see side drift. And second lower then year-over-year, where today product points follow- if GS. GS higher at you're other but are service between in That's I'd internationally, we're have on That's compare that's And basis reduction sales more journalized. us these new like look point win thing we're some the to are investments in I mix you we're down XX making the sequentially of to sequentially, one all sales quarter. TAMs. the

is else see for like? where remains we as travel GP business year. up those is your like the think, today, it investments the in use a . And consistent XXXX said, what nothing a changes. ramp point, right, off to as would look of part scale. I'm I going question does that it year-over-year, we're to second continue both can grower, jumping if The If be we've So

see for in year-over-year we again just travel. should on margin CS based accretion So seeing

pot. GS, see imagine mobilize tougher get do. our of to what return every happen invest, can to investment, the that. the these one listened and time a you accretive. it as the of Obviously, can costs the last it's see today, for falls to we open, slightly on calls markets be will for easiest us exactly, we If to flat one's continue the volume here's feet For on that new But but to and ground that couple we money probably we'd we you've quarters,

percent next we'll the accretion don't have I if think So year. see margin gene

land then I probably some when in as opening able basis be once where some that that accretion then get the we need TAMs margin up to in another good to you we're of be would lean bodies a will other horrible. But cost market. we know these down received, California out that start put you're new flat and probably XX points we think wouldn't

implementation kind I you shift to that then work because continue maintenance of and inflect growth to sort talk appreciate X towards we Really just work. get Maybe calling about of for the back X to X. might or do with and that When pipeline you TX longer-term the the on helpful. the obviously SaaS-based of business? side, drift you think solutions, expectations from the opportunities, And those and along of start out hardware more positive back to

David. it's Dan, question. Yes, great

really traction would seeing momentum. is We're say right enforcement in of I of what is, team I a -- the now, think business. that So building side our lot Perm

we're a plan. where of above As That's you and and software recall, growth a that permits the a enforcement. segment we're there's portion municipal then more And tremendous smaller a is back seeing well university segment in business. they're

that and adjusting be And is we we so demand. say is toward an going to of ourselves that. be to going the as what should next to higher -- that we're to I with trajectory single year, . I trajectory I come to year to not run make starting exit we're sure would digits, rate. capture best getting get to probably expect toward taking still towards on along next obviously margin would the probably the would be but back we've end opportunity high at the the that year, probably say of

helpful. a of is priority still X.Xx. for the buybacks opportunistic M&A Last the year leverage one and at be year-end? between net guidance are Is and/or Really looking sheet for you right. -- full now that you? to me is balance exit for just Or All

the I our is result, the the ago, we be in that. think about not term, talked double target. so should for leverage. So right? different over fact quarter you Xx a script, this Dan, That Thanks said or net No, target company you. X for the will as And Yes. that's have that is target. not I That a question asking than a asked the

be that it we way, But there capital, in looking can't would will mean accretive are I the XX, do to a delever we target. If necessarily -- but deploy that out So right? result, the company. not

Keith from Northcoast Housum is question next from Our Research.

business you any of to can growing, little some a us that, license metrics understanding give that KPIs model. confidence of give us of the the story, is give shift TX there can. from Parking, to that if terms I we want any confident or just SaaS But kind the to In is more

Yes. permits also I pipeline the is necessarily. is that would is and What that I is say I of starting again. our new sales KPIs basis we I enforcement manage say give mean growth and our revenue to well opportunities also What plan. specific current that won't any internally would from expand expansion in above

So what business university the the I after sort right and of would small segment, is our to conversion operator say of municipalities. in market this around now, the we've really back pivoted core

probably And about way so say think the from that way what we're this business the right are I describe -- of the end, would of our that I the trajectory is trough side and that we is in now as would other bottom up based. again, I moving the

as rate toward we about and this margin think single-digit more back to expanded growth next end that as to So high opportunities do importantly, it's how it get we do end the year going year? well. maybe how And of

let And that to add just me a bit.

So product a is David it standpoint, which good. did from

Let me to we it how standpoint. go to try market from do

to at. things think externally X look Warren this we've revenue. a there's that this So quarter, regular mentioned got I given on basis, not traditional true we We're but going is do

have are We hardware-enabled service which services. revenue,

larger the brings make it TX value business. with more margins. services, course, hardware. of That's and That's it's goes of grow. grew But pulls higher the of we We then quarter going demand the we those make we some that part to true year-over-year, asset, this saw it's also over continue is it driver And a of recurring to X% want got this SaaS hardware years -- a part saw is So see Hardware of when the becomes sustainable not it's back, next the happen portfolio part the of to handful part going part hardware. it okay? to that's the year-over-year. which

buy right? we revenue, when being away us talk again too resell, not about happen is the flat for hardware, So which from not go. in is see -- So sad seeing we're shift to what total it we're

SaaS rate with in that. stuff And mid-single retention in business in services customer this a digit us the that grew XX% drives quarter the and some the along of go of pressured that front keeps our even lines. But actually

I appreciate that Okay. Great. color.

tolling of efforts, there In there? European terms the is updates report any to

that. head, new roads from of opened last or like my or be And have that off no terms note. the cashless -- last the top of nothing Yes, gone new of toll of that from any in number pilots things quarter would

kind position that a in countries. we in some the of of is So we've couple which got same key pilots were,

have. based the on the beginning places pilots do that to are see that thaws we'll bit And of it a France continue to to We relates just in monitor barrier tolling execute like we Italy. and the and

Great. And for last question me.

more of XXXX first that is really going school terms be Is our a remember of thought? In are thinking half of second that still XXXX the a Florida zone cameras, I to half versus of if right, event. you the really guys line revenue

correct. Yes, exactly that's That's right.

Blair. from Instructions] Louie from William is [Operator question DiPalma Your next

gave, -- photo revenue forecast our ARR just X% do Following year-to-date for your growth bookings this that will you wins thus that XXXX up on still for ARR for the generally represents of installation million services government you of like the it far? the wins back-end achieved thoughts you've like the expecting to year time what terms Or time your likely cameras? loaded of half rate of these And answer and as in be expect the the in enforcement accelerate takes these year. in the are roughly are that second from acceleration to will that $XX these you install

Louie, to question, answer your The yes. is short

right? matters, here. the Okay. a really matters company. timing longer at cycle, XX-day myopically The for cycle looking or slightly It answer growth show really to is when So we're XXX-day a

give bring a to back me second, you little let a it try then I'll more detail. So for and

put expect the that's back ARR I we've the back, contract under XXXX. anything of it that don't -- So don't anything business to grow move to I high been see mid-single changing. at Solutions that the year. we going that see to see this able still don't I for Government in bringing new here. end digits

program months the it thing XXXX happen, go and a happens in coming, starts are we program actual to see a have in second this the install material actually back how for you'll different better I the the those revenue because materially in given starts. XXXX there's answer things it happen for the actually proceed in from sure, As it that to a proceeds June, into to X the Then notice impact, is, likely do where easy impact last a But see it of happens calibration then that actually takes awarded, to if really is And right? view to is, most or half XXXX because gets I'll long impact turn out of just of that. the you're program couple April company. going just today. then most period, bringing think

with Do it's stand in anything are I a New And RFP? that Great. the RP, fair does out York you that October. City think mentioned due you bids think

putting and we earlier as it note. pretty They use in say pages. a the what comprehensive would year. very, XXX we they it's long, did together word comprehensive can you Clearly, really recall, Well, a busy RFP. were best had -- expected the tough I is had I It's very a

the moved So October it's the of I and be to data, York going New RFP think has in, I think, August expectations current the SI to been extremely originally it now would due written that. as and and say, back I end reflects was yes,

does it do final partners? one does And on and your expand to tolling with of all-inclusive your your one Great. plans, well? to that partners is rollout the the continue continuing And side,

do we're performance. very But Louie. going incentives, opt-in well, flex the It's anniversaried Hertz we're but and going So on. of to depending happy continuing on quarter-to-quarter the It's to we've see, to the with so counter flipping what inclusion program not actually we've anniversaried

see those the pet. pleased. run we you're to that's very a going have the kind rate. where But We're growth continues now in So be momentum that not opt-in exactly rate -- of year-over-year we to there

through. This from one sorry, from another Thank Dave we are that you. Baird. came Koning no oh, further There have just --

a related credit Sorry, questions. that to a I'm late numbers, all? XX% last couple But that little those up that? is a both what economic so at X XX% and aren't of Or QX about expense year, move are isn't loss is much. now higher, One, compared maybe join. to little big is year-to-date But

question. It related. Dave, Yes, great is not economically

with quite me frankly, still in start we Let first in that. booked the things we're did have to X negotiations recoveries that that contractual get quarter. with We prudently some

keep you the But our of so about I at believe credit my -- something look rounds was know this quarter I in top year-over-year, XXXX, the exactly up off it's $X.X it pretty second quarter volume doing So of the right? head, of expense at honest. and was you'll much As number what third XXXX. on million loss the that. Dave, up I in I'm of about XX%, half my I the but it roughly That's if look is

any of weaker getting again, that and settlement. books seen have we'll some quarter, not on favorable hopefully, and today contractual what literally a that stack we stuff consumer in So back first seeing to the had -- come back in the volume-driven. we you in the half you put our the that I think tell I'm I is

given No, they're well you. the at Avis -- maybe kind down Enterprise, I kind I was guess the helpful. in not in where year-over-year but is obviously then doing just but Got Hertz expected the other maybe all, that question at? of from And and surprising hurt, guess, of that's quarter, really Hertz answer,

has I think does of Hertz Chalk reflection snapping toll a where rental not product time, no right? just places right? okay. My with too, Because because saw exist doesn't hurts, is long business a correct over directionally as not mistaken, about think my of XX numbers was the If I'm flat there's totally think business roads, Hertz of we're I period do But I necessarily days. I as lot it a in were I David. And are surprised, longer days year-over-year. that to too. those look,

mix would or going to shock with her than being customer. it more would I say, macroeconomic any us down So locational year-over-year anything the in on

we the the end you gentlemen, of Thank that reached ask are today. questions session time, this have you further and we disconnect question-and-answer and There may please all Ladies and the conference. no lines. joining, concludes for for that at your