Verra Mobility Corporation (VRRM) Q3 2024 Earnings Call Transcript

Verra Mobility Corporation (NASDAQ:VRRM) Q3 2024 Earnings Conference Call October 31, 2024 5:00 PM ET

Company Participants

Mark Zindler – VP, IR
David Roberts – CEO
Craig Conti – CFO

Conference Call Participants

Nik Cremo – UBS
Daniel Moore – CJS Securities
Faiza Alwy – Deutsche Bank
Dave Koning – Baird
Keith Housum – Northcoast Research
Shefali Tamaskar – Morgan Stanley
Noah Levitz – William Blair

Operator

Good afternoon, ladies and gentlemen, and welcome to the Verra Mobility Third Quarter 2024 Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. [Operator Instructions]

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

[Technical Difficulty]

David Roberts

demonstrating what we view as the predictable strength of our portfolio of businesses.

Based on our year-to-date financial performance and our outlook for the remainder of the year, we are reaffirming full year 2024 revenue, adjusted EBITDA, and adjusted EPS guidance, while increasing the adjusted free cash flow guide to the upper end of the range. Craig will elaborate on the details in his remarks.

Today, we’ll highlight four value drivers underpinning our businesses. The current sentiment from the major airlines continues to suggest resilient travel demand, albeit off the first half of 2024 highlights.

Second, the demand for automated photo enforcement is strong and growing. Third, the company continues to generate robust free cash flow, providing optionality for capital allocation. And fourth, we are putting measures in place to stabilize the T2 Parking business and rejuvenate its growth trajectory.

Starting with travel demand, year-to-date TSA passenger volumes as of September 30th stood at about 106% of 2023 volume for the same period, driven by strong consumer and business demand.

However, travel has