Verra Mobility : Q4 2021 Earnings Presentation

Earnings Overview

Verra Mobility Q4 Earnings Presentation

For the Quarter Ended December 31, 2021

FORWARD-LOOKING STATEMENTS

This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "intend," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include projected financial information.

Such forward-looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Verra Mobility Corporation and its subsidiaries (collectively, "Verra Mobility" or the "Company") are based on current expectations and judgements of the Company as of the date of this release. The Company disclaims any intent or obligation to update forward-looking statements hereafter. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including but not limited to (1) the impacts on our operations and business resulting from our delayed 2021 Form 10-K filing (2) the disruption to our business and results of operations as a result of the COVID-19 pandemic; (3) the impact of the COVID-19 pandemic on our revenues from key customers in the rental car industry and from photo enforcement programs; (4) customer concentration in our Commercial Services and Government Solutions segments; (5) decreases in the prevalence of automated photo enforcement or the use of tolling; (6) risks and uncertainties related to our government contracts, including but not limited to administrative hurdles, legislative changes, termination rights, audits and investigations; (7) decreased interest in outsourcing from our customers; (8) our ability to properly perform under our contracts and otherwise satisfy our customers; (9) our ability to compete in a highly competitive and rapidly evolving market; (10) our ability to keep up with technological developments and changing customer preferences; (11) the success of our new products and changes to existing products and services; (12) our ability to successfully integrate our recent or future acquisitions; (13) failures in or breaches of our networks or systems, including as a result of cyber-attacks; and (14) other risks and uncertainties indicated from time to time in documents filed or to be filed with the Securities and Exchange Commission (the "SEC") by Verra Mobility. These risks, uncertainties and other factors are further described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents filed with the SEC from time to time.

You are cautioned not to place undue reliance upon any forward-looking statements, including the projections, which speak only as of the date made. Verra Mobility does not undertake any commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

This presentation uses certain non-GAAP financial information, including earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which further excludes certain non-cash expenses and other transactions that management believes are not indicative of Verra Mobility's ongoing operating performance.

Verra Mobility believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Verra Mobility's financial condition and results of operations. These financial measures are not recognized measures under GAAP and they are not intended to be and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures as defined by SEC rules. This non-GAAP financial information may be determined or calculated differently by other companies. A reconciliation of Verra Mobility's non-GAAP financial information to GAAP financial information is provided in the Appendix hereto and in Verra Mobility's Form 8-K, filed with the SEC, with the earnings press release for the period indicated.

EXECUTIVE SUMMARY

Strong Execution in the fourth quarter

• • Total revenue and adjusted EBITDA exceeded the high-end of expectations

• • Strong operating cash flow

• • The Commercial Services segment continues to see strong demand and

  returned to 2019 revenue levels in the fourth quarter with similar profitability levels

  Providing mission critical operational services to solve the complex challenges of our customers

• • Government Solutions fourth quarter performance driven by the installation of 326 fixed speed systems in New York City

Q4 2021 Total Revenue $170.0 million; including $6.5 million from T2 Systems

Q4 2021 Adjusted EBITDA 1 $80.0 million; including $2.6 million from T2 Systems

Key Contract wins

• • Executed a five-year contract extension with Fox Rent A Car for tolling services (Fox is our 4th largest tolling customer)

• • Subsequent to the end of the fourth quarter, the Government Solutions segment has completed the installation of 720 cameras for the New York City DoT with the last 25 being invoiced in January 2022

  • o In February, the Company received a Notice to Proceed on the 240

    School Zone Speed Cameras, which it expects to fully install in 2022

• o In addition, executed a three-year contract extension with Hertz for title & registration work

1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures, see the appendix.

Full-Year 2021 Cash Flow from Operations $193.2 million

Closed T2 Systems acquisition

Important Legislative Actions

Washington transportation bill - The bill expands & extends programs in Washington state

• o Automated speed enforcement

• o Extends sunset period for other photo enforcement

3 |

FULL YEAR 2021 RESULTS

For the Year Ended December 31, 2021

Revenue & YoY Growth	Adj EBITDA & Margin %	Cash from Operations
$ in Millions	$ in Millions	$ in Millions

$193.2

$270.9

2019

2020

2021

2019

2020

2021

2019

2020

2021

Q4 RESULTS BY SEGMENT - COMMERCIAL SERVICES

For the Quarter Ended December 31, 2021

Revenue & YoY Growth

(60%)

FY Revenue & YoY Growth

$276.5

8%

Revenue

$260.9

14%

• • Revenue of $71.5M in Q4 increased 48.3% from the same quarter in the prior year.

17%

22%(2%)

$180.9

(25%)

Adj EBITDA

(29%)

• • Adjusted EBITDA of $43.8M in the quarter

  (43%)

  increased $18.6M or 73.5% from the same period

  of the prior year

• • Operating expenses of $18.1M in Q4 2021 increased by $4.6M or 34.4% from the same period in the prior year

  2019

  2020

  2021

• • SG&A of $12.0M for Q4 2021 increased by $0.5M or 4.4% over the same period in the prior year

Adj EBITDA & Margin %

62%

66% 65%

FY Adj EBITDA & Margin %

$175.4

61% 55%

27%

70%

52%

$160.4
$97.2
63%	54%	61%
2019	2020	2021

We have returned to 2019 levels of revenue and profitability with Adj EBITDA margins of 61%