Verra Mobility Corporation (VRRM) experiences a decrease of 6.15% in aftermarket following the company’s announcement of the acquisition of T2 systems. However, the last trading session concluded at $15.45 with an incline of 0.85%.
Acquisition of T2 systems by VRRM – What’s up?
On 7th December 2021, VRRM reported that the company has successfully acquired T2 systems. More than 1,900 institutions, municipalities, parking operators, healthcare facilities, and transportation hubs use T2 Systems’ parking software and hardware solutions. Moreover, in 2021, sales will reach about $80 million, with an adjusted EBITDA of around $21 million. Within VRRM, T2 Systems will function as a separate division. Adam Blake, the former CEO of T2 Systems, will join Verra Mobility’s executive team and report to David Roberts.
What’s Next?
Smarter, more efficient highways are needed to serve increasingly developing cities, and parking management is a key component. The range of urban transportation solutions has been expanded with this purchase. Moreover, VRRM welcomes the exceptional T2 Systems team to Verra Mobility, and the team looks forward to continuing to provide the outstanding customer service that has distinguished the T2 brand for so many years.
Third Quarter 2021 Results – What’s the update?
On 4th November 2021, VRRM announced third quarter 2021 results. The company reported total sales of $162.1 million, 67 percent more than that of $96.9 million in the third quarter of 2020. Moreover, service revenue increased as a result of stronger travel demand, which benefited the rental vehicle sector in our Commercial Services segment. Not only this, but the net income came out to be $27.3 million and adjusted EBITDA was $82.1 million.
So what?
With overall sales of $162.1 million and considerable profit growth in both of the business sectors, the company’s team generated solid results in the third quarter. In addition, the Commercial Services business had a 75 percent growth in revenue year over year. Year over year, the Government Solutions division achieved a 61 percent rise in revenue due to improvements in both service revenue and product sales. Furthermore, VRRM made significant progress with the integration of Redflex this quarter and anticipate continuing to achieve synergies.
Second Quarter 2021 Results – How was VRRM’s quarter?
VRRM reported second-quarter 2021 results on 9th August 2021. The company made $4.0 million in net income in the second quarter of 2021. In addition, the company generated revenue of $128.7 million in the second quarter. Not only this but the company also reported an operating cash flow of $37.5 million. Last but not least, traffic patterns strengthened throughout the quarter as local agencies relaunched their red-light and speed enforcement programs, resulting in a roughly 41% increase in service income year over year.
