Hi, good afternoon. Thanks so much for coming out here today. We greatly appreciate your support. Thanks for everyone who's attending in person. Thanks for everyone joining virtually. My name is Mark Zindler. I lead Investor Relations for Verra Mobility. We're really excited. We're hosting our inaugural Investor Day. Very exciting time for us. Again, we appreciate your support. At this time, I ask everyone in the audience to please put your cell phones on silent. We greatly appreciate it. Turning to the forward-looking statements, during today's presentation, we'll make statements related to our business that may be considered forward-looking, including statements concerning our expected future business and financial performance, our plans to execute on our growth strategy, the benefits of our strategic acquisitions, and other statements regarding our plans and prospects. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations. Factors that could cause the results to be different are included here as well as in our SEC filings. We encourage you to review these carefully. In addition, during today's presentation, we'll refer to certain non-GAAP financial measures. A reconciliation of these non-GAAP measures is included in our presentation, which can be found on our website at ir.verramobility.com. Now, moving on to the agenda for today's call. We'll kick things off with David Roberts, our President and CEO, and he'll provide an introduction to Verra Mobility. Then our three business segment leaders, Steve Lalla, Jon Baldwin, and Adam Blake, will present their respective businesses. Following that, we'll take a 15-minute break. Following the break, Mike McMillin, our Senior Vice President of Corporate Development and Strategy, will provide an M&A overview. Then Craig Conti, our Chief Financial Officer, will provide a financial overview and discuss our views on capital allocation. Following Craig's comments, we'll conclude with a Q&A session in which David and Craig will answer questions from both the in-person and virtual audiences. As such, we ask you to hold your questions until this Q&A session at the end. For those attending virtually, your media player contains menu options to deliver any questions should you have, and we'll do our best to answer as many questions as we can. With that, it is my pleasure to introduce David Roberts. Well, good afternoon. It is great to be here. As Mark said, thank you for being here in person. There are people here that I have known for several years that I have yet to meet in person starting today. It's great to see some friendly faces. For those of you online, we really appreciate the fact that you're taking time out of your day to spend some time with Verra Mobility to get to know us a little better. Thank you for that. We're gonna talk about a lot of really great information about a great company, but if there's one theme that I wanna make sure or one slogan I would like for you to take away, these are from my marketing days, is great business, bright future. This is a great business with a bright future. Everything that we'll talk about today, from what we do for a living, the customers that we serve, the economics that we produce, the opportunities ahead in the markets that we compete in, all indicate those key themes that I hope that you'll walk away with. We recognize there's sort of a different type of audience here. There's some of you that have known us for quite some time, that you're very familiar with our business and our strategy, and our hope today is to clarify, to bring clarity to questions that you, our investors, have had around capital allocation or M&A or plans for the future. Our goal is to bring a lot of clarity around that. For those of you that are new to the business, we hope to inform you, to introduce you to what we think is a wonderful company that you should be excited to be a part of, to tell you that who we are and what we do and the types of products and services we have. You got the whole management team here, so we're really excited to be here for this day. It's been a long time in the making. Let me jump into a few key themes that I would like to hit on over the course of my presentation. It won't just be during my presentation. In fact, you'll hear this across many today. A little bit about who we are. We are a global leader in smart mobility solutions that address mission-critical transportation needs for cities, fleets, and universities. What you're gonna hear later is about our leadership positions across these businesses, that we, smart mobility is a global opportunity. There's an enormous amount of attention inside of this market. We're gonna tell you where we squarely fit and how we serve these customers at the highest point of their need. We're well-positioned inside of growing and attractive markets. We've had a lot of questions in the past about, like, what are you? Like, where do you fit? We're gonna try to describe the key markets that we are in and really some of the real powerful tailwinds that are growing growth in those markets into the distant future. One of the things you'll notice, and maybe one of the reasons you're here is we have robust cash flow capabilities. We have businesses that have a high level of predictability, a high level of durability, and because of our leadership positions, we're able to generate economics that are outsized compared to any of our competitors. Really, we've shown historically, which I'll get into some detail about, and we'll talk in the future from both Craig and from Mike about disciplined capital management on how we think of free cash flow as an accelerator for value creation for shareholders. Then I'm really fortunate to work with, I think, the absolute best team there is in the industry. We have a track record of success. It's a tight-knit group. They're all here. Later this afternoon, when we're all wrapped up, we're gonna have a happy hour. I would encourage you to come and speak to all of the members of the management team, to get a sense not only of the quality of the individuals, but just the quality of the entire team. Again, thank you for being here, and thank you for the time you've committed. Let me jump in. For those of you that may not know us, I'm gonna take the next two slides to kind of bring you up to speed on what's Verra Mobility and what these guys do for a living. On the left-hand side of the slide, what you'll see are some key metrics, and these are all TTM as of Q1. $631 million of revenue, and 89% of which is recurring. We have high line of sight to our revenue because of the nature of our business, the predictability of it, so our revenue forecast and our line of sight to that is quite strong. That revenue comes quite profitably. If you look at $306 million of adjusted EBITDA and a margin of 49%, that's driven by two things. One, a culture and a commitment to operating excellence so that we can always look for ways to do things better and improve margins. But also, because of the leadership positions that I'll talk about in just a moment, create postures within markets that allow us to get more than our fair share of the economics of the businesses or the markets that we're competing in. That translates to free cash flow of $183 million or $60 million conversion rate. And that, again, is how we see our number one value creator for shareholders is free cash flow. I'm gonna talk a little bit later about how we think about using that cash flow in the future and what you can expect from that in the future as well. that gives you sort of the financial metrics, and many of you may be here because you've seen some sort of metrics or a flash of our metrics and wonder, "Hey, what's this kind of profitable company? What do they do for a living?" in the middle, you'll see that we are global in scale. Mobility challenges are global. They're not just in the U.S. because of that, you need to be a global company, and we operate in 15 countries around the world. We have 1,500 employees that are there to help serve our customers at the highest point of need and deliver on all of those numbers that you see on the left-hand side, are delivered by that group of 1,500 employees. We have 2,400 customers that we serve, most of which are in the nature of recurring revenue. Over to the right, what you'll see is the number one, and we don't use that number lightly. For those of you that are old enough, you remember the old Jack Welch days at GE where he said you have to be number one or number two in your respective business. We just like number one, 'cause we really like to win. What you'll see is across the portfolio of businesses that we manage today, we have number one market positions. In commercial services, we're the number one provider of toll management solutions in North America. In government solutions, we are the number one provider of photo enforcement for cities in North America. Our most recent acquisition is in parking solutions, which is a company called T2 that you're gonna get to know in more detail today. We're the number one provider of parking solutions in large universities. We work really, really hard to maintain those leadership positions that allow for those economics that you see on the left-hand side of the slide. They are part and parcel. It takes the great team to produce those types of leadership to produce those types of economics. That's who we are. We have the market leading financial profile in a range of attractive markets. I'm gonna do the sort of pond skipping, if you will, for those of you who've ever thrown a rock across a pond and had any success with it. I'm gonna give you just a little bit more, for those of you that may be new to Verra Mobility, give you a kind of a double click on what it is that we actually do. Then each of the business unit leaders will come up and provide in much more detail our, the range of products and technologies that we deploy on behalf of our customers. Starting on the left-hand side, you'll see commercial services, which is about 42% of the total enterprise. We are the number one provider of toll and violation management solutions for commercial fleets in North America. That business also operates inside of Europe, that Steve will talk about a little bit later. The best way to describe this is that most of you have probably been a customer of Verra Mobility without even knowing it. If you have ever rented a car from Hertz or Avis or Enterprise or any of their sub-brands and you ran a toll, we were actually a part of your journey because everything related to that experience was done by Verra Mobility. That includes the integration with the toll authorities. That includes managing and putting transponders in the window in the vehicle that you can pull out the slide. We actually have patents on that slide or the sling. And that also includes tight integrations with our rental car partners to allow us to bill your rental agreement at the end for the cost of the tolls. Everything related to that is part of Verra Mobility. That business is growing exceptionally well. Our long-term prediction for that is high single-digit growth. You can see over the left-hand shoulder, 8% category. We've actually been, if those of you know us, we've been growing much faster than that, but that actually has a COVID impact that's included in it. It's a very profitable business with 64% EBITDA margins. Not only do we do tolling, which is the vast majority of that business, but we also process violations. When you are in a fleet car or rental car, you can get a parking ticket. Those have been done historically, manually with paper. They actually, we've put technology around it to make it electronic and do that on behalf of fleet management companies, as well as title and registration, making sure and ensuring that the vehicle has the appropriate sticker, plate, and title for the vehicle so that it can operate whatever state that it's in. That's our commercial services business. In government solutions, hopefully you all are not customers because we are the number one provider of photo enforcement in North America. That includes things like red light cameras, speed cameras, school bus stop arm cameras, and transit bus. If you're here and came to us in the New York area, there's more than likely chance that if you looked at an intersection, one of our products was on either a pole, a light pole, or one of our own freestanding poles because we've deployed over 2,000 speed cameras in New York City over the last couple of years. That business is a long-term grower at the mid-single digits. Recently, as you look over our shoulder, it's been growing significantly higher than that, and the reason is the expansion here in New York City. It's the largest expansion of photo enforcement in the world, and we are the sole provider of that solution for New York City. Operates at very profitable margins at 36%. Finally, I wanna talk Parking Solutions is the newest addition to the portfolio at Verra Mobility. It's about 12% of the business where we are a leading provider of parking management solutions to universities as well as to smaller municipalities. That's a high single-digit grower. It was also impacted by COVID. As you can see, the trailing CAGR is actually below what it's performing at today at 7%. Very high margins. We've been asked this question a lot. We looked long and hard at parking. We believed it was a really specific asset that we wanted to be in a category, and to find a business like T2 with these types of margins is very, very unique. We were very patient and excited to be able to consummate that deal back in December of last year. We provide SaaS software that helps parking management for universities and cities. We provide services around installation and consulting around that. In addition, we actually do pay stations and the hardware as well. But the exciting part of that business obviously is the SaaS revenue. These are all high quality businesses, very profitable with market leadership positions. When you take all that together and you look sort of over our shoulder, what does that look like for an enterprise view for Verra Mobility? What you can see there is again $631 million and 13% organic growth, which includes the pandemic and COVID years. If you add the acquisitions to that, we've been growing at 18%. That again, 89% of that is recurring revenue. One of the great parts of our business that you can take confidence in is that when we look out in the future, we have a pretty good line of sight to a vast majority of our recurring revenue and ultimately the profitability that comes from that as well. Over to the right, you can see our adjusted EBITDA margins at the level that they are, so 49% currently. Growth in EBITDA at the 14% level, and free cash flow conversion, you can see, is at 60%. It was down as low as 13% during the COVID years, but it's important to note that during COVID, we still generated $23 million of free cash flow despite being a business that's highly exposed to travel, which indicates both the durability of our business, if you look at the small dip, but then really sort of sets us up for what growth will look like as we go into the future. That resulted in $400 million of free cash flow generated during this period, which obviously we used in a couple of different ways that I'll share with you in just a little bit, how we've used capital previously, and how we think about sharing, or excuse me, using capital into the future. Again, if this is our business, which is number one provider, smart mobility, I wanna get a little more and double click into where we play. I wanna talk about where we play and how do we win, because there's a formula there that's really important for investors to understand so that they can have believability as we talk about the future, that we have a right to win in the markets that I'm gonna talk about here. If you look on the slide here, to the left, there's two smart mobility really big market. The concept of that is much larger than the areas with which we compete. We're very focused on two specific areas. On the left-hand side of the slide, where commercial services is a leader, is what we call connected fleet. This is a portfolio of solutions that are around the fleet, the connected vehicle, and the solutions that help fleet owners or fleet managers to manage those with new technology. There's fleet administration, fleet software that supports that. There is telematics, which is a topic I'm sure many of you are familiar with. Then how do the vehicles make payments? Those are all sort of the ecosystem, if you will, where our Commercial Services is squarely located and has a very, very strong leadership position as you think about its tolling violations and toll and registration. That's a category, and I'll talk about the growth rate that we anticipate growing for many, many years to come with the advent of things like more fleets. On the other side, you'll see urban mobility. Urban Mobility refers to all of the technology that are in urban areas that allow vehicles to move around safely, with places to park, and also thinking about the future and what their impact on congestion would be. Things like traffic management, things like parking and curbside management, things like road usage charging. All of those are technologies that we are either in today or looking at evaluating in the future because this is again, a high growth market, and it's quite large as well. Both our government solutions business as well as our parking solutions or T2 are both squarely engaged in the concepts in the market of urban mobility. We think with our, if you go back to the economics page that I showed you, and I talk about these markets, you would say, "Hey, clearly market leader, great opportunity." Great business, future's bright. To get a size and scope of the market, I think it's in, on the left-hand side of the slide, what you'll see is a total of a $63 billion global TAM by 2030. This has a growth rate of about 10%. This is, there are some tailwinds that many of you would probably recognize as, "Hey, this makes sense to me because I can identify that these are things that I've seen myself." If you think about urban mobility, safety is a real significant concern for cities around the globe, and especially here in the U.S. Several years ago, there was a concept called Vision Zero. Vision Zero is the actual concept of no citizen fatalities related to traffic incidents inside of urban areas. There's obviously been rashes of that in the past, and so cities are really rallying behind different types of technology to help reduce those types of fatalities. One of those, and one of the primary, is photo enforcement because of the efficacy that it has in changing driver behavior, and the ease in which companies like us can deploy those solutions at scale. In addition to that, you've heard, if you're here in New York, you've heard about congestion pricing or congestion zones. Those are areas that urban environments are looking at more heavily to say, "How do we moderate the flow of vehicles at specific times of day to reduce not only the congestion but also the pollution impact of people coming into urban areas?" There are cities like London and Stockholm and other cities around the globe that have deployed this type of technology. For those of you in New York, whether you're for it or not, that's something that's on the docket here to be approved here in the not too distant future. We would anticipate other cities doing that in the future. Regardless, what you're seeing is, hey, there's a real ask for technology in cities to help make mobility safer and easier. We feel like we're really, really well positioned to provide that. In connected fleet, the shared economy is real. Many of you may have come here today in a shared vehicle or in a rideshare, carshare environment like an Uber or a Lyft. We would anticipate over time that the size and number of those types of fleets are going to increase. What happens is, and Steve will talk about this in more detail, when the driver of the vehicle and the owner of the vehicle are not the same, that's where our technology steps in. There's a bridge there that needs to happen to make sure there's compliance and accuracy and appropriate management. Our technology today and in the future bridge that gap for these emerging fleets. Regardless, what you can see is large global market. We are well positioned given our financial capabilities, and we're excited to see what this is gonna bring to the future. If that's where we play, which I've just showed. Now, I'm gonna do the executive summary of the executive summary. If now you know what we do for a living, and you know that we're quite profitable at it. Now you know where we do it, so the markets are clear. This is where we play. The question is, well, how do we win? What's the unique? What's your special sauce, Verra Mobility, to help you win? Our special sauce revolves around the customer. I recognize that many companies can say they're customer-centric, but we live and die by the customer. We have a saying that we serve our customers at the highest point of need. What we mean by that is that we don't just meet their needs, we exceed their expectations. Because as you exceed expectations, you get permission to do more. They're gonna ask you for new things, and we wanna be that type of provider. We can support that with facts, which is, as you think about customer relationships, we have a 95% customer renewal rate across all of our portfolios. We have been working with some of our customers for decades, because we are so focused on providing high value for them for what they ask us to do on their behalf. Next, we can create differentiated solutions. I have a small example there of a great example where we were serving our rental car and fleet management companies with violations in tolling, and they said, "Hey, there's this other area that I'd like for you to consider. And that area specifically is around title and registration. It's a manual process. It's very difficult. It requires a lot of technology integrations. Could you do that for us? Would you all consider that?" We said, "Don't know much about that, but let us take a look." We went, and we did the work, and we liked it so much, we bought a business called Sunshine. Now that's a major plank of Steve's business and Commercial Services is our capability to do integrations with states and provide title and registration services across the country. That was completely driven by a customer that had great faith in us and then gave us all their business as we leaned in to this market. There's other cases where we've done that as well. Beyond differentiated solutions, we also have, for those of you that know us, M&A is a big part of who we are. Mike is gonna come up later, because I know several of you have asked these questions. He's gonna be as prescriptive as any person can be on how we think about M&A. I think you're gonna walk away really enthusiastic about the discipline that we show across our capabilities around M&A. Just last year, we acquired two businesses. We acquired Redflex. Redflex is an Australian manufacturer of photo enforcement technology, also operated here in the U.S. It was an opportunity for us to solidify our market position here in the U.S. while also expanding internationally, which is not something that we had done in that business previously. T2 Systems, I've already talked about. It was an exciting opportunity to diversify a little bit, to look at parking management and curbside management, and Adam will come and tell you more about that acquisition and what that business does. We, like other best-in-class businesses, have a commitment to a way of life, if you will, at Verra Mobility. We call it the Verra Mobility Operating System. What that system is it's our playbook. It's our toolkit of how we run businesses, how we set goals and objectives, how we review business status, what our expectations are for leaders. All of that is wrapped around what we call vmOS. That vmOS, while not branded until recently, has been a key driver of the success that we've had historically. Moreover, as we look to other acquisitions in the future, you can anticipate that that toolkit will be applied to those acquisitions just like they are being applied now with Redflex and T2 to help optimize those businesses for growth and margin expansion into the future. That's our playbook. That is how we win, which starts and ends with the customer. If you've tuned out, tune back in. This is an important slide. That playbook allows us to win. What's really important to know as I talk about our sort of longer term projections and sort of view of the future, that most of our business is sort of in hand. What I mean by that is we don't have to do a lot of new to drive our core growth, that the markets that we're in, the positions that we have, and that playbook that I just described will produce winning into the future. As you look across the segments here, what we, when we think about our playbook, it's grow the core, which is sell and serve in the markets you're already in. Win RFPs, win new deals, don't lose customers, beat your competition. That's of each of the three guys that's gonna come up and talk about their business, they're very, very clear that that's an expectation that they have that they are supposed to produce. Then we look to expand into adjacent. To that playbook or the flywheel I had on the previous slide, how do we listen to customers in such a way that we can expand into exciting areas? Going back up to the top, if you look at commercial service, that's about growing managed fleets. For government, it's opening new cities and winning new customers. For parking, it's adding new universities. Sell and serve the markets that we're in that I've already described as large and as growing. We think about adjacencies, we have things like European expansion. Those of you that have been with us know that we've been operating in Europe for some time in commercial services, and Steve's gonna get a really specific update on how that business is tracking. We can look at things for Government Solutions around bus lane and work zone. There we have recent wins in this area of significant note that give us confidence that not only are those new use cases for photo enforcement, but we're super well-positioned to deploy those across the country and even around the world because we're doing it today. Obviously, with one of the big thesis around T2 is the ability to bring them up to the large scale cities that we operate in historically in Government Solutions. There's a real partnership being created to help get line of sight to those opportunities as they manifest themselves in the years ahead. The high single digit growth, the mid-single digit growth, and the high single digit growth that I talked about earlier, it's just that. There's no M&A in that. There's no new products in that. That's just our core business as we sit here today. It's basically do well with what we have, and we're gonna produce really good results. You add on to that, you add on to that things like emerging opportunities around new connected fleet services or smart city platforms or curbside management and monetization. Again, great business with a really bright future. What credibility do we have? For those of you that may not know us, allow me to brag about our capacity in delivering results for shareholders over the last couple years. Over to the left of this, just to give you, to kind of go in the way back machine, if you don't mind. Prior to 2017, the company was a privately held entrepreneur-based company. I was actually hired in 2014. I was the Chief Operating Officer at that time. We went through a public sale process, sold to Platinum Equity. We had a phenomenal experience with Platinum. They accelerated our growth, and we did a major acquisition, one with a competitor in the tolling world, another with getting our foothold inside of Europe, and then we went public via SPAC in 2018. Since that time, we have continued to grow and be investing in growth. In 2020, which is the pandemic year, we can say we generated free cash flow when a lot of companies can't say something like that. We've done two acquisitions with T2 and Redflex that I've already referenced. More importantly, for those of you that didn't know, we did a $100 million repurchase last year when Platinum Equity exited the business, and we currently have a $125 million repurchase program open as of today. What that shows you is that we've deployed $1.5 billion of capital since 2017 that has created the leadership position that we're in today with the durability and the cash flow. The expectation is that we're just gonna keep doing that, and this management team is poised to continue to grow that. We have enormous earnings potential and I think a strong track record of driving earnings and value for shareholders. This is our long-term outlook. This is, if you've zoned out, slide number two that I want you to zone in on. This may be the only slide. Our long-term outlook shows that we have a capacity to deploy capital that I think is quite special. It's actually quite unique. If you look across the category of smart mobility, I think we're in a position that no other company is in. With 6% to 8% long-term growth rate on our revenue side and 8% to 10% adjusted EBITDA growth and 8% to 10% free cash flow, what that means by 2026 is that we have $1.7 billion of free cash flow or capital to deploy on behalf of shareholders. If you go back again to the slide that I just showed, and we have a track record of doing it and doing it thoughtfully with discipline and consideration, then that means something. What you look at the bottom, which is the punchline, which is we look at organic free cash flow as our strongest value creation lever, and we will expect to double free cash flow per share by 2026. Not a lot of companies can say that with a lot of conviction, but that's exactly what we're saying today. How do we think about that? With growth, how do we allocate our capital? We invest in our businesses to make sure that we're producing that 6%-8% growth that we talk about. We then look at accretive and disciplined M&A, and then we look at opportunistic share repurchases. Those are all very timing consistent. There's a lot of timing and things that move around, but that's the framework that both Craig and Mike will give you a double click on in just a moment, so how you can think about that business. Again, what we're saying is overall, by 2026 that we will double free cash flow per share because of the strength of the business as it sits today. It's a super exciting business to be a part of. I'm just gonna let you read that for a second, make sure you got that. The question is, what team is gonna deliver that for you? This is the team. You're gonna get a chance to meet all of them today. All of them are here in the room today, and several of them will be speaking in just a moment. What I can say is this team not only has the history of execution and discipline on delivering for shareholders, that we're creating a company that's actually what I like to call a special place to work. These are really enjoyable people that are creating a culture that other people wanna work at, and I'll talk about some of the culture and some of our people aspects in just a moment. This is a team that you're gonna get to know in greater detail today. I'm excited for you to have a chance to hear them speak and also have a chance to ask questions for those of you that are in the room at the end of today. Let me talk a little bit about our culture because it's something that matters a lot to me as the CEO of the company. It matters to each of the leaders of the team because we don't deliver the results that we have if we don't have a culture that allows and creates the opportunity for that to occur. We are a purpose-driven organization. Our purpose is enriching lives by making mobility safer and easier. Now a lot of people say they have a purpose, but if you look in the bottom right, 80% of our employees in surveys say that their job has meaning and purpose. We try to connect our employees to the purpose of our organization, and they've bought in. They believe in what we're doing has an impact, and that's super exciting for us. Our vision is to be the global leader in smart mobility by serving our customers at the highest point of need, by having the best people do their best work. We are talent hogs. We love getting great people and giving them exciting opportunities to produce and grow their careers. If you look at our engagement score of 73 and our retention of 90% this over this year, what that tells you is that our employees are excited about what's happening at Verra Mobility and see a path for their own individual career, so they're gonna be committed for the long term. Our strategic pillars, which are actually part of the Verra Mobility Operating System, these are the three words that sort of intersect most of our conversations in some way, shape, or form as we run the business, which is about driving core business outcomes, building the Verra Mobility of the future, and creating an engaging and fulfilling workplace. The leadership team here today is tasked with fulfilling the obligations that we have underneath each of these pillars, and it's a very common framework that we communicate across the business. Our core values, which mean a lot to us. Own it is really it's the concept that if you see a piece of trash on the floor, you pick it up. We want people to have a high sense of accountability, that we don't look, we don't point fingers, that we own it, and we own outcomes, not just effort. Doing what's right is our integrity. We have the highest expectations of integrity. We have systems and processes in place to ensure that, and we look for people that wanna do right, not only by our customers, but by their fellow work, employees. Leading with grace really speaks to how we wanna treat people, which is, hey, I'd like to treat people the way I'd like to be treated. It's a very common notion. Not hard to understand, but can sometimes be unique in today's world. Ultimately, winning is about winning together. There's no solo artist at Verra Mobility. This is all about winning together. What you can see is this is a world-class team that's committed to extraordinary results and enhancing shareholder value. I think it's important to note that we are also committed to responsible growth. As we mentioned, we have a purpose-driven company, and that purpose shows up in the context of ESG. If you look on the left-hand side of the slide, we have products and services that save lives. That means something to us. There are people that have come to work for Verra Mobility for the very notion that they had someone in their family have an accident or was killed by a speeder or a red-light runner, and they wanted to do something about it. We're highly committed to the vision of having an impact in communities around safety. We recognize that, especially when urban mobility and even in commercial services today, that there's an environmental component that we can be an accelerator to. If you think about the products and services that we have, they're right in the center. Everything from reducing congestion and going, using free flow tolling, all those have the ability to reduce greenhouse emissions, and we think that urban mobility obviously, as I mentioned later, or excuse me, earlier, is gonna have a big part of reducing congestion in the future. On the right, we take our corporate social responsibility seriously. We're committed to recruiting and nurturing a global and diverse set of workforce. We have what we call our purpose-driven agenda, which is an agenda that applies globally, which is in the communities with which we serve. We are driven to help support children who are sick, hungry, or unsafe. We partner with local, we donate dollars, we give time out of our day to support those local charities, and that's something that has great meaning to us. While we are in the early stages of ESG, but it's something that's part of who we are, so we're excited to grow along that vision in the future. Let me end where I started, which is great business, bright future. Everyone wrote that down. They should have a sticky note that says that somewhere. Great business, bright future. Hopefully, what you're walking away with is a real understanding of the depth and breadth of our business capacity and what we can do in the future, and that we have credibility as you are a shareholder or are considering being a shareholder, we have credibility to deliver value for you over the long term. We're super excited about our position. We're excited that you're here today to learn more and sort of double-click into the businesses. With that, as I go back to our experienced management team that's delivering results, I wanna introduce you to Steve Lalla, our Executive Vice President, Commercial Services. All right. Thank you. Good afternoon. I think we're gonna start with a video, give you a quick introduction of the company and the business. As transportation becomes increasingly connected and shared, fleet owners need new solutions that make managing their ever-expanding fleets easier and more efficient. Today, shared transportation takes many forms, from rental cars and rideshares to micro-mobility. Consumers are shifting from an own and hold model to a reserve and use model for their vehicles. With these new trends, where the driver of the vehicle is not the same as the owner of the vehicle, fleet owners face complex transaction and compliance challenges. In the very near future, congestion pricing, EV charging, and road usage charging will also create costs that fleet owners will need to pay. Verra Mobility is enabling the connected fleet ecosystem by solving complex transaction challenges for shared vehicles. Our commercial services business provides innovative, integrated toll management solutions, violations processing solutions, and compliance services to customers in North America and Europe. Imagine an owner of thousands of cars, trucks, or other vehicles shared by drivers across the country. A rental car company, for example. First, those cars need to be quickly registered and ready to get on the road. Those drivers may use toll roads. They may incur traffic violations like speeding or a parking ticket. But in most markets, the toll or violation is automatically assigned to the vehicle, not the driver. Ultimately, it's the fleet owner who must address the costs. They need to pay those tolls and violations and make sure they are paid to the right entities for the right vehicle and matched to the correct drivers. Unpaid charges can pile up quickly and could ultimately result in the owner not being able to use that vehicle. Verra Mobility sits at the center of this complex ecosystem. We turn the large-scale management of tolls, violations, and titles and registrations from something time-consuming and costly to something turnkey and seamless. Today, we help rental car and commercial fleet companies provide an integrated, interoperable solution to their drivers in North America and Europe. For example, in the U.S., we're connected with more than 50 tolling authorities and 400 violation-issuing authorities, such as cities, counties, and states across the country. Our proprietary systems ensure the payment of hundreds of millions of tolls and violations annually by connecting data from vehicles, drivers, tolling authorities, and violations issuers. For example, when a vehicle in our services passes through a toll gantry, Verra Mobility pays the toll directly. With our proprietary systems and integrations, we match the toll charge to the driver for our customers. The drivers receive the benefit of efficient travel, and the rental car company is relieved of the complex effort of post-rental billing. As the transportation economy continues to become shared, fleet owners need complete and seamless solutions to manage their vehicles. Verra Mobility serves our fleet customers at their highest point of need, helping them solve the challenges they face today and into the future. Hopefully that gives you a little bit of a double-click into what we do and how we do it. I'm gonna go into a little more depth. That was hopefully a good introduction for most of you. Thanks, David, for the introduction, and a great review of the company. Super impressive. Got to hit three things today. Got to tell you who we are, a little bit about what we do for those who might be newer to the audience, and I think just as important, where we're going, where we see growth coming from. David gave you a little bit of a insight on where we see growth. I'm gonna double-click and give you a little bit more of that insight. Let's go ahead and get started. This really represents sort of our business on a page, and I wanna start with the top $7 billion number. That really is the reflection of the three things on the bottom right. Growing our core, which David talked about, hitting adjacencies, which is Europe for us, and really going after that connected vehicle opportunity. We'll get into detail about what that opportunity represents because that's a big ecosystem connected vehicle, and we're got to be clear on kinda where we're focusing. We're excited about that opportunity to really participate in such a large industry. Let's jump down to the middle left. We've delivered high single-digit growth for the last few years, up and down during COVID, but maybe some insight on that growth kind of in the most recent past. Rental car agreements with our customers are still down. They're not back to 2019 levels, but what you may not know is the duration has extended. Whether people are taking longer vacations instead of flying, whether people are getting their car fixed, and there's a little bit of a supply chain slowness to getting their car out of the shop, the duration of those rental agreements is longer, and therefore, the number of tolls per rental agreement is higher. By the way, the number of violations is higher. The second piece is cashless tolling has picked up during COVID, particularly in the U.S. We saw quite a bit of tolling authorities choose to implement all-electronic or cashless tolling. Therefore, users of our vehicles or not our vehicles, our customers' vehicles, have less opportunity to stop and pay. Tolls per day are actually up as well during this period. Another interesting statistic is during COVID, last mile deliveries exploded. I think you're all like, that's all super clear, right? People went online, did shopping, and so we thought that would taper down a bit post-COVID, and actually we're seeing very strong performance in the last mile logistics business, and that continues to be a tailwind to our business. The last piece to give you a little color behind some of the historical and current performance is people are rebuilding their fleets. People are updating their fleets. Vehicles are still really hard to get, but our customers are getting real creative, and so our title and registration business is buoyed up by the rebuild and the refleeting and the build-out of their fleet. That's a little more detail behind that performance. We are a concentrated business. We're concentrated in the U.S. We're concentrated in tolling. We're concentrated in RAC. I hope by the time I get done here today, you'll see how we're looking to diversify that revenue stream. We think we're making good progress in many areas, but I'll let you be the judge of that because we do wanna diversify it and provide a more differentiated set of revenue flows. What's great about the business, and David talked about this for the company overall, we have some great strategic positions as a business. David mentioned how we've integrated, not just with the tolling authorities, DMVs, and issuing authorities, but with all our customers as well. Those integrations take a lot of work, are difficult to maintain, and create a nice moat around the business that we deliver on behalf of our customers. That's one huge strategic advantage. The second is what people over the years, our founders, have done to build really differentiated cloud-based applications together with outstanding manual workflow processes so that we can do what we do efficiently and effectively and predictably for our customers. We think that's a second very important strategic advantage. As more fleets emerge, as more services emerge, as more complexity emerges in this ecosystem, we think we're super well-positioned to take advantage of that. A little bit of a deeper click into kind of our current business and what we're doing. I'm super pleased to say that over the last 12 months, we delivered $289 million of top-line revenue. It's a record. Never in the history of our business have we delivered that much revenue. By the way, $185 million in adjusted EBITDA is also a record at a healthy 64% of sales. We're pleased that as some of those tailwinds that I talked about earlier are buoying up our business, we're seeing that performance emerge, as we exit Q1 2022. I think the thing I want you to take from the middle of this slide is what we do, we do at scale. That's what we bring to our customers. We bring them the ability to process lots of things at scale. By the way, these are 2021 numbers. These are not what we did in 2019. We did more violation transactions. We did more title and registration. We still did a lot in 2021. Almost 7 million violations being processed between Europe and the U.S. across 8,600 issuing authorities. By the way, with about 450, those electronically connected, and those are the biggest ones that we electronically connect to because that provides us the best efficiency to process those violations. We have 50 states covered for TNR, and I'll talk a little bit more about TNR. It's far beyond just title and registration. We do have coverage around 50 states, so we can provide that service to our customers. In Europe, our current approvals with APPR, with EETS, and what we announced the other day with AETIS, allows us to toll successfully 22,000 kilometers of toll roads in the top five tolling countries in Europe. We're well-positioned in Europe as we make progress there, and we'll double-click on that and talk more about it. Here's what's really impressive. On average, we process 600,000 tolls a day frictionlessly through those proprietary applications that we run, the payment systems that we run all happen frictionlessly, and we do that on behalf of our customers. I think the key here is we're really, really well-positioned to scale this business even further. We've demonstrated that we know how to scale, and we can bring more to it. We do that, by the way, across 13 offices here in the U.S. and Europe, just over 300 people, and we have about 5.8 million vehicles enrolled as of the end of last year. Hopefully that gives you a little sense of the business. I think the question is, who counts on us? Well, if you're a large fleet, you count on us. David said something that I thought was really important for me to say as well, and we've had relationships with these customers for decades. You know, we've been in business with these customers. We've grown with these customers. We solve problems with these customers. Top rental car brands, we do business with. You know, not all of them use all the services and solutions that we have available, and that represents still a growth opportunity within the rental car business. For those who aren't familiar with fleet management companies, they sell on our behalf to fleets. They package our solutions with other solutions that they offer their customers, and they've been an outstanding set of partners to access a bigger channel of vehicles than we could access directly. We really enjoy our relationship with the fleet management companies. We do have direct relationships as well. You see a number of OEMs up on the slide. As OEMs start to think about the fleet industry and how they wanna participate, you see banking and leasing companies as they think about how to manage costs that get associated with vehicles that they're leasing and financing. You also see this emerging car share industry, whether it's Zipcar, Getaround or others, you know, that emerging, you know, reserve and use model really plays well to the business model that we have out there. We really appreciate the customers that trust us and give us the ability to deliver the services and capabilities that we deliver. You kinda have to. When you think about like, well, so what did these fleets do before we came around? I wanna give you a little bit of background. David hit on this lightly, sort of what do we do and why do they pick us? You have to go to life before Verra Mobility, right? These assets, these vehicles, they do a job, right? They take a family on a dream vacation. They get a business person to a customer meeting. They help logistics companies get that last mile done. While they're doing what they do, both the driver and the asset, costs get associated with that asset and with that driver in some cases, especially if it's a violation. Before us, those customers, the fleet owners, would have to deal with the left side, right side of the screen. They'd have to deal with the fact that there's 129 tolling agencies to interoperate with to understand the rules, the requirements, the changes that go on there. We work with over 8,000 issuing authorities. There's actually more, and we have integrations with over 450 issuing authorities. Knowing what to do, how to process a violation, how to do transfer of liability, super hard, right? That's something that they had to figure out how to do before we got here. Then, of course, every state and sometimes counties within the states do title and reg differently. Before Verra Mobility came along, for many of our customers, this was just a cost of doing business. This is just what they had to do to be in the fleet business. You might ask yourself, what's a fleet owner to do? We all know the answer, right? Right? There it is. Here it comes. W rong way. Work with us because we allow them to do a single integration of their data with us. We allow them to share their customer information, their fleet information, and we take care of all that complexity on their behalf. We take care of all the changes that go on with tolling authorities, all the roads that increase prices, decrease prices, all the changing rules of how issuing authorities wanna manage violations, tickets, and parking and red light, and we just take that off of their hands so they can do what they do, which is rent cars and make customers happy. Help logistics companies get things done. They get to do what they do well because we do what we do well. We think we do that at scale, and we do that in an end-to-end way for our customers. Now, many of you know us as a tolling business, and it's fair 'cause it's a highly concentrated part of what we do, but we're really a full service provider to our customers. Even in tolling, we do more than just process tolls. We do over 800,000 calls in our call center supporting our customers, making sure the customers' experience, their customers' experience is outstanding. We manage transponders, tens and tens of thousands of transponders, making sure they're in the right vehicles at the right time, in the right location. We provide data analytics and reporting 'cause our customers wanna know, especially our fleet management customers, how to make sure the right people get the right data, get the right payments, get the right tolls, get the right invoices. We provide a lot more than just the tolling on the tolling services side. On the violation side, in addition to billing and collections and processing the violation, we also make sure that based on various rules with the issuing authorities and municipalities, we make sure we can help transfer liability so that the end user who wants to disagree or take that to court or whatever, we give them the ability to handle that liability where it's applicable. Then in title and reg, you know, titling a car and getting it renewed is just a small part of what we do. We do temporary tags. We do plates. We do IRP for large vehicles. We really offer a full host of services for title and registration, and that's why we really try to bring a full service approach to our customers, not just a transactional approach, and we think that creates differentiation, and in fact, we think it creates real benefits for our customer. I think the obvious one, and we'll see this in a customer case next, the most obvious one is we save customers money. We save them administrative costs. We save them from violations that didn't have to happen. We save them real money, and you'll see a customer example next on that. If you own a fleet, the most important thing is what? It gets on the road, and it stays on the road. Compliance is important, whether it's title and registration compliance or whether it's when a violation does happen, that violation gets taken care of in such a time that that vehicle isn't gonna get stopped and pulled off the road and pulled out of your fleet from being able to use it for either logistics purposes or rental purposes. We think the driver's an important element of this as well. As a driver, you know, we pay the toll on your behalf. We help you take the most expedited route to where you want to go. If there is any violations or anything, we take care of those on your behalf. You don't have to go online 14 days later, find the gantry you were at, figure out how to email your tolling. We just take care of that, so we want the driver experience to be great. David mentioned this, and I. You know, we probably don't talk enough about it, but think about all those digital integrations that we have. Think about the fact that people don't have to stop, idle, pay a toll. Think about all the mail that we eliminate, all the trucks and logistics and all the printer ink that doesn't have to be used. We have a real impact on our environment, and it's a very important part of the value we bring not only to us as a company, but to our customers as well. We're super excited about the capabilities we've delivered as a full service provider. Here's an example. This is a medium-sized fleet, 2,300 vehicles. They're clearly in a tolling region with 134,000 tolls on an annual basis. You see on the right here, prior to us participating in their tolling ecosystem, that's how much they spent managing tolls. Not paying tolls, managing tolls. We pay tolls, they pay tolls, it all passes through, but managing tolls. With our involvement, reducing their administrative costs, reducing their violations, helping them make sure that if the driver, especially if it's a fleet driver, is using the vehicle for personal reasons and not for business reasons, we know how to parse a personal toll from a commercial toll. We've dropped the cost for that customer quite significantly. We think there's benefits that the driver gets out of this as well. They can take the most optimized route. They don't have to do expense reports. Just everything gets a little less friction oriented and more frictionless for the fleet company itself. Lower cost and better driver experience is the way to look at it. We really do bring customer value. Now I'm gonna sort of pivot here and give you a little bit about who we are, what we do, who uses our equipment. I really wanna pivot now and talk a little bit about where we're expecting to see growth. It's really across the same three business vectors David talked about, the core, global expansion, and emerging opportunities. Let me hit one of these. I'm gonna hit each of these in detail, but give you the punch line on, you know, each of these. We are not serving all the fleets that are to be served with our services in the U.S. or Europe, period. You'll see the data behind it. There's more fleets to go get. We are not selling every service to every customer that we could be selling, so there's more services to sell. There's emergence of new violation types, new road usage charges, new types of ways to monetize infrastructure that we're early participants in. There's more to go get. I call it full potential. There's full potential in our core business, and we're going after that. Now in Europe, you know, I joined about a year and a half ago, and I know Europe. There's been a lot of talk about what we're doing in Europe, how we're getting to Europe. Let's just be super clear with you and the virtual community. We're behind where we wanted to be. There's just no question about it, right? We think there. There's more to go get and more to do. I'm gonna talk about why, but the two biggest reasons are, one, cashless tolling or all electronic tolling has emerged slower than we expected. As you can imagine, if you could stop and pay a toll, there isn't a lot of complexity to hook up the toll if people stop and pay the toll. Now that's changing as electronic tolling emerges in Europe. It's emerging at a slower rate than we had anticipated. COVID has been a real impact. I think, you know, Europe, we kind of all see, came out a little bit slower than the U.S. did with COVID. Many of the pilots that you've seen us announce in Spain and in Ireland and elsewhere, we would have hoped those would have started in kind of second half 2020, early 2021. They didn't. They're now starting up, and we see that flywheel kicking it again, and we'll spend more time on it. By the way, our violations business is doing just fine. It's the biggest business we have in Europe, and we'll talk a little bit about what we're doing there to grow that business. Then David hit on the emerging opportunity of connected fleets. We really see two areas of connected fleets important for our business, vehicle payments and new services that emerge from that connected vehicle. We'll talk about that. I think the other thing to point out on this slide, David showed an aggregate of sort of the new growth opportunities being about a 10% CAGR. We see connected fleet actually being a little bit more at about a 14% CAGR and from a solutions perspective. What is important to balance that with is the 19% you see on the slide. That's the speed at which cars are getting connected. You don't have a connected car, aren't gonna be a lot of connected fleet services being available. The combination of growth in the connected vehicle space and growth in the connected fleet solution space is sort of hand in hand. I'm gonna double-click on each of these a little bit more. Our core business, tolling. We know that's our core business. It's a big part of what we do. I call your attention to the right side of the screen. You see how much all electronic tolling has grown from just 2019 to present, but it's still kind of in the 64, 65, 66 range. There's still more to go get, and that's tailwind to our business because people aren't stopping, they're not paying tolls, and as a result, our services become more important. Now you saw something we announced yesterday with the Transportation Corridor Agencies, or TCA, which is an agency out of California. We're partnering with them to really identify how tolling, how road usage charging, and how other costs that get associated from infrastructure to driver. We're working on a pilot with them to look at things like infrastructure as tolling, to look at things like how can we use blockchain to exchange personally identifiable data in a secure way so that we can process tolling differently than we do today. I think that just is a demonstration that we're not waiting for something to happen to us. We're actually on the cutting edge. By the way, I think this is one of the first partnerships we've done with the tolling authority in a really long time. We're super excited about that and identifying emission zones, congestion zones, clean air zones, etc. There's more toll roads going in across North America, and we think that provides tailwind just to our tolling business. Now for the next section, I'm gonna call your eyes to the slide at the bottom right of the screen. If you recall a few slides ago, this is non-RAC TAM. This isn't the RAC business where we have very, very strong market share. We have about 3.2 million units out of that 12 million that we participate in today. Sort of some upside to go get there, right? I'm super excited about what we announced yesterday, which is we've now enabled all of our infrastructure capability to support nationwide tolling with a single transponder. We have not had that capability. We've had it regionally, but not nationally. You might go, "Well, what does that provide you?" Well, it provides you minimally to open up that 2.7 million unit OTR business that we haven't participated in. Because they have a need for a single transponder to be able to operate to get the best tolling costs across the country. It opens up that segment. Also, our announcements with Reviver and Car IQ, we'll talk about each of them in relationship to the core reason we put those partnerships together. The partnerships also include them being a channel to resell our tolling services, and we think that's gonna help us both in the commercial space and the small fleet space. We continue to look for innovative ways and invention ways to get into more of that 12 million units in our core business, things that we have a right to go do. On the compliance side, I mean, you know, I think we know that we're far from full potential in TNR. It's a highly fragmented industry done differently by state and sometimes by county. Industry would really benefit from scale, and we see that as an opportunity. I think it's also important to point out that technology can intercept this industry. Our partnership that we announced yesterday with Reviver, who's doing really innovative things to bring digital plates to the industry. They're now, I think, running in California, in Texas, in Michigan. I think there was an announcement in the last week that they're gonna be approved in Colorado. We're doing the title and registration for digital plates. An emerging new technology space, we're front and center partnering with them and helping them be successful at what they do. We're super excited about that. Hopefully once you you know, in looking at this slide, you realize David's right on, there's more to go get in the core business. Now in Europe, I had a bit of an introduction on Europe. I'm gonna call your attention to the right part of the screen. We're behind. I'm not a big excuse guy, but, like, we're behind for the reasons that it says on the slide. You know, COVID didn't help us. Cashless tolling, we're trying to get going faster. By the way, the announcement we made with AETIS, and I'm not gonna try to remember the full acronym, so you can go look up the press release. But the announcement we made with AETIS gets us a seat as a member on the industry association that's driving all electronic tolling for Europe. So we're not sitting on the sidelines kind of waiting again for it to happen to us. We're in the driver's seat. We're working with other members that are from the EETS community to really drive how cashless tolling emerges in Europe. We're really pleased to be approved as a member of that and excited about that opportunity. In the rental car space, we've announced a couple of pilots that are underway both in Ireland and Spain, and I can tell you they're doing just fine, and they've actually been renewed, both of them, in the recent past. We're super excited about those pilots continuing. We know that vehicle supply continues to be tight, but similar to the U.S., we see that emerging. We also. By the way, we copy-pasted our transponder management that we do in the U.S. We now do that across Europe with an amazing operations team who services our rental car customers quite well. On the fleet management side, the tolling pickup, similar to the rental car space, it's emerging as cashless emerges. By the way, we're not just waiting for cashless. There's still a benefit to our customers for not having to stop and pay a toll 'cause gates will still go up if they have a transponder. We're working with our customers to really help them understand that value proposition. Violation management in Europe is a little bit different than it is in the U.S. Many times, the owner of the violation isn't the vehicle owner, it's the person who is actually driving the car. We're working on how to better serve the FMCs in that space. We think some of the things that we're talking about emerging in parking and charging and vehicle payments will be great new opportunities to serve the FMCs. Then in the violation space, we made a couple of announcements yesterday as well. Dartford is a customer of ours. That's a renewal of a contract that we've had. The clean air zones is something very innovative, where we're helping the U.K. associations, and there's a number of them in that announcement, helping them really enforce clean air zones. Where we already do congestion management and low emissions management, we're helping them enforce clean air zones. I think it really points to the creativity of our violations business looking for new opportunities to intersect what we do with what municipalities and governments are trying to do. We see emerging opportunities in things like civil speeding and things like domestic violations. We're really excited about where we're at from a violation perspective and where we think we can go with that business. Finally, David talked about this, the connected fleet. You know, I've been a big believer that kind of the own and hold way of purchasing vehicles is gonna give way to the reserve and use way. We already see it in micro-mobility, right? Bikes and scooters and pick it. We're starting to see it with companies like Turo and Zipcar and Getaround. We think as that reserve and use grows as a model, there are gonna be more needs for the services we provide today. I'll give you an example. At IBTTA last fall, which is a tolling conference for those not familiar with it, there was actually a master-planned community developer. In fact, you may remember this. A master home community developer who was talking about as they're planning these master planned communities of the future, they're actually thinking about whether they should be building garages or parking spaces to host fleets that are actually owned by the homeowners association. If, like, I was moving some mulch this last week, and it would've been great to have a pickup truck to go move mulch. If you're taking your kids to an amusement park and your family, it'd be great to go grab an SUV. If you're going on a date with your significant other tonight, pick up a sports car and go have some fun. I don't think it's far-fetched to believe that more fleets and more fleet types are coming, and maybe new types of fleet owners are emerging. We think this explosion of fleet vehicles is on its way. I'm gonna skip to the bottom one, which is the connected driving use cases. You may have seen an announcement yesterday with us and Car IQ. If you haven't studied Car IQ, it's a really innovative company. They basically have an innovative payment platform where the vehicle is the payment platform. We partnered with them to integrate our tolling solution with their payment ecosystem, and we're super excited about that first step in the partnership that we have with them. They are the essence of a connected vehicle. They are the essence of using the computer on wheels, right? I mean, Mike and the team have heard me say this. I mean, a car is really a data center with a big battery pack that happens to have four wheels, that happens to have 5G connectivity, that happens to have lots of sensor data. As soon as we as an industry start viewing it as a computer and a data center, then all of these services and all of these capabilities become available to us. The services that emerge from that, like vehicle payments, like charging, like parking, like how do we manage violations, the connected vehicle, the connected fleet presents, I think, just amazing new opportunities for us to participate in the industry. With that, I wanna leave you with just the following three things. Our core business is outstanding. Outstanding, and there's more to go get, and we know how to go do it, and we're focused on it. Number two, Europe. Although the thesis is maybe a little behind, we think it's a still attractive opportunity, and we're working like crazy there to grow that business. We're super excited about the connected fleet, as evidenced by what we're doing with TCA, as evidenced by what we're doing with Car IQ. We're not just sitting on the sidelines thinking about connected fleet. We're out there playing, and we're doing, and we're learning, and we're partnering, and we're participating because we think that that really represents a great future. With that, I'm done, and I'm gonna introduce Jon Baldwin to talk about our government solutions business. Thank you. All right. Like Steve, I think we're gonna start off with a quick video. With urban populations rising, city officials and government agencies look to smart mobility solutions to solve current and emerging transportation challenges. With more vehicles on the road, traffic management is becoming increasingly complex. Law enforcement agencies face resource shortages that make traffic safety enforcement a growing challenge. Crashes, along with fatalities, are increasing at a record pace. Verra Mobility's government solutions business delivers integrated technology solutions to improve urban mobility and support intelligent motorways globally. We are enabling safer, healthier, more livable communities by reducing dangerous driving and easing traffic congestion. Our scalable automated enforcement solutions include red light and speed safety systems, school bus stop arm safety solutions, and transit bus lane enforcement. Our secure mobility platform offers back-office processing for tens of millions of traffic events each year. Our end-to-end model includes site selection, installation, and maintenance for our camera systems, plus a range of service offerings from data transfer and citation mailing to payment support. Verra Mobility provides the proven and trusted technology solutions to solve complex transportation problems today, and we're innovating to address the challenges of tomorrow. All right. Good afternoon, everybody. My name is Jon Baldwin. I lead the Government Solutions business unit. I've actually been with Verra Mobility for only three months, so some of the comments that David made about how we're attracting people to Verra Mobility, I can tell you that's absolutely true. You know, the purpose of the company to really save lives, improve environmental situation in our cities, make everything more green, you know, for the first three months I've been here, I can tell you that's absolutely what we do. The outcome by which we measure success is how many lives we can save. You know, that's a quantifiable outcome that I can actually connect back to the work that we do here at Government Solutions. Three main points I wanna cover here today. We talked a lot about safety as a kind of a key trend. It's something that we really focus on, improving the safety of our citizens. Unfortunately, as you saw on the graph on the picture, 42,000 fatalities in North America continues to increase. We've got technology that can prevent that, but that trend is gonna create a larger and larger opportunity to deploy our technologies in more locations in the future. We see that trend to continue to scale out into the foreseeable future. There are new solutions that we're deploying. David mentioned we've got many new solutions for kind of looking at different things inside the urban environment. We're gonna talk more about that in the presentation, but there are more ways to scale our business aside from just red light cameras and speed cameras. There are other things that our partners are looking to do. The last one here is just long-term growth potential internationally. We're still very under-penetrated in North America market, but international is really in its infancy in terms of ability to scale and really leverage these programs. Let's jump into the presentation. We see ourselves as playing in the $11 billion total mobility market. Currently, kind of the automated enforcement is a relatively small piece of that. We'll get into that in a later slide, which you see is about $1.6 billion current addressable market. If you look at the bottom right, which is where we play today, you know, 2018, we're $148 million. We grew to $260 million of organic growth in 1Q TTM, 1Q 2022 TTM for 19% organic growth. As David mentioned in his tee up, that was primarily driven by New York City. Even without New York City, we grew mid-single digits with existing customers. That is one of the key pillars of our organic growth, is really establishing these programs with our customers. When they see how effective they are, they continue to deploy in more and more locations. Sales breakdown. We've got two main revenue pillars here. One is a product which is, you can consider the project of putting a camera in the ground, standing it up. It's a capital expense for the municipality that we serve. Then we get 81% of our revenue stream from recurring revenue, which is how do we operate and maintain that site and deliver the service. That's 99% recurring revenue out of that 81% service revenue we have. Now, out of that 99%, that is long-term contracts. These are 3 to 5 to 7 to 10-year contracts that we sign with our municipal customers. From a geography perspective, we are heavily weighted to North America. You see the 10% there is a direct consequence of us integrating the Redflex business, which has a strong position in Australia and a growing business in Europe. Before jumping into strategic advantage, I did wanna talk a little bit about Redflex. With the Redflex acquisition, you can see that we added $60 million, approximately $60 million of three key revenue. That's the first three quarters of revenue of integration. We are realizing a lot of the cost synergies. We're at 50% of the realization of the cost synergies as part of the market thesis of the integration of Redflex. Additionally, it gives us access to the international market, which we did not have access to as part of Verra Mobility. This is a new way for us to go expand our business, and we'll talk about that more in later slides. From a strategic advantage perspective, David talked quite a bit about, you know, long-term customer relationships. Steve echoed some of that in his presentation. You know, this is really kind of the pillar of what we do. We've been doing this for a very long time. We've got more than 300 customers that we've been working with for a very long time. This ends up being kind of the scale of how we leverage. This customer can add a new enforcement type, they can add more different sites within their city, and that gives us credibility to stand up a new city. The second point is, you know, why are we sticky in the cities that we operate? It's because these are very complex programs. We've proven that we can do it. We do everything from installing the camera, site selection, working with legislation, all the way through operating these systems with a SaaS platform. Then all the way through maintaining the sites with a managed maintenance program. We are the only supplier that we know of that can do everything for an automated enforcement program at scale to support the cities that we're trying to service. All right. I mentioned the scale one. You know, we saw 40 million events processed per year. We look at 11 billion cars. We actually record 11 billion cars per year as they go under our cameras. Out of that, we extract 40 million citation events. We're not doing this with an army of people watching cameras and watching video. We are doing this with automated SaaS platforms that operate in the back end. To remove all that burden from law enforcement, we're doing it with automated computers that actually identify the events and process them automatically. All right. From a scalability standpoint, I mentioned core business growth. If we stay where we are today, it's mid-single digit growing, and we can see that with the opportunities in front of us in the current expansion programs. We see a lot of adjacent opportunities where new cities are turning on based on legislation and new event processing types that might turn on. Then we have expansion opportunities. What else can we do with all the government customers we're currently deployed at? Really, those partnerships are ours to leverage with our core technology, our current relationships. What else can we do to serve our current customers? There's a lot of opportunity out there. If you look at the three main pillars of our business, I mentioned there was service and product. Product really goes into project ownership. We work with our customers on setting up a safety program. This is, say we're getting a municipality, say we wanna put up 20 cameras. They call us and they say, "We wanna operate these, and here's the rules." We put up the whole program for them. We pick out which sites. We assess how much it's gonna cost. We do all the installation. We do the site selection, engineering. We get the camera in the ground, and we get it up and running in as short a time as possible. We take all the risk out of that complex process for our customers. That's just on the front end, just the product setup. The two services we have, I mentioned our automated, back office processing service, where we automate the entire citation workflow. We remove the burden from that complex handoff from police department to person to municipality to the court system. We automate that whole flow, and that's been the core of Verra Mobility for the past, you know, how many years. Maintenance is something that we've really acquired as a standalone component as part of the Redflex business. Particularly in Europe, there's a lot of camera sales with a managed maintenance program which drives the recurring revenue component of that, of that business where it's just a camera sale. Currently, there's not a huge element of automated processing, particularly in Europe, which also creates another opportunity for us to leverage the Verra business model into Europe. These are the three main revenue streams. Everything on the right in blue can be considered recurring revenue, and these are all on multi-year contracts. We also get about a 98% renewal rate from existing customers. When David was talking about stability and durability of the business, this business is sticky. This stays around. We get that same number every year after year after year. We just build on that base as we add new cameras. Currently, we have 10,000 cameras on the ground servicing 26 states. We are always trying to add more sites, more cameras to continue to build on that base and increase the amount of recurring revenue that we get. That's our primary growth driver. We talked a lot about this. You know, David talked about it, the video talked about it. You know, I talked about a little bit in the intro. Just wanna give a little bit more detail on the safety aspect. We talked about the 42,000 people in 2021 that were victims of traffic fatality. You know, out of those, 13% were from urban roads. Oh, sorry, 16% from urban roads. If you think about why this is such a big urban problem, traffic fatalities are higher where there's urban environments and higher population density. 13% were pedestrian deaths, highly avoidable. Red light cameras, preventing people from running red lights and hitting people in crosswalks is something that we can deploy to help alleviate pedestrian deaths. As of 2021, this is not a short-term trend, fatalities are higher than they have been for 16 years as of 2021. This continues to become a worsening problem. When we talk about the effectiveness of our programs, our programs have been proven to be effective. When you deploy an automated enforcement program, if you know that it's there, and there's signs that tell you there's a camera on the ground, if you violate the traffic laws, you will get a ticket 100% of the time. There's no getting lucky that the cop might not be there. You will get a ticket 100% of the time. What this has been proven to do over time is it changes the driver behavior. Ultimately, I talked about how we measure outcomes. We've seen reduction in fatalities as high as 71% where our cameras are deployed. Now, I'm gonna do some simple math here. 71% applied to 42,000, that's a potential life saving of 30,000 people if we just had photo enforcement deployed in every one of those locations where those fatalities occurred. That's why I talk about this is a big market opportunity for us. We have the potential to scale. If we reduce our tolerance for traffic fatalities, that's gonna lead to an increasing market for Verra Mobility solutions. There are some ancillary benefits of setting up an automated enforcement program aside from just reducing deaths, which should be significant enough, is we can actually offload our police department partners from doing traffic work. Here's just an example in a Florida county where in one week they decided to really go after speeders in school zones. In 40 school zones in one week, they spent 94,000 police hours. We could have put up 40 cameras, operated them like normal. It's a tremendous cost savings, but also it's an opportunity cost savings of what else could those people have been doing, right? Lastly is just from a revenue perspective. These are revenue positive programs. I mean, the cities get the revenue from the citation processing. They can choose how to redeploy that money. Some of our municipal customers will redeploy that for additional safety programs, or in this case, in the example on the screen, invest in people who are victims of traffic accidents. Just as a punch line on this one, safety is a big and worsening problem. Photo enforcement's been proven to actually alleviate this problem. It's revenue neutral or positive for our customers, and it can allow our customers to save costs and redeploy their police force to do other things. I kind of always kick myself when I look in the mirror and go through the slide. I'm like, "I don't know why every city doesn't do this." Seems like a really obvious thing. Now I'm gonna click on. I've got an example in a couple more slides where we actually talk through the story of one of our cities. Okay? Now what do we do? We do every traffic enforcement program there is available in high volume today. We got speed safety, red light safety, school bus stop arm. This is a school bus. We'll actually have a camera mounted on it and take a video of you running the stop arm if the stop arm of the school bus is out. This prevents people from running right by the school bus and potentially injuring a child. A newer enforcement one is transit bus lane enforcement. This is one that's a direct kind of scaling of our existing business model for existing customer base for a new type of enforcement. This is just looking at people driving in a bus lane so that we can try to improve the efficiency of our mobile transit system. Ideally, that will lead to the second-order effect of people taking more transit and driving less cars. You can see we've got a lot of penetration, more than 300 customers for these different enforcement types in North America. All right. How do we do it? What is these programs in a little bit more detail? It starts with legislation. These programs have to be legislated by local governments, have to be laws in place. Unfortunately for us, every different city, every different state has a different way of interpreting the law. That creates a lot of complexity for how to set up these programs. You know, similar to the story that Steve was telling, that's one of the unique advantages that we have. We spend a lot of time partnering with our government customers to understand the impact of their local laws on a photo enforcement program, so that we can tailor a program that we know is gonna meet the laws that are applicable at that point in time, and we work with them to make sure that we're always up to speed on the latest laws. This can be as complex as when you run a red light, the first wheel has to be over the line. Some cities might say the second wheel has to be over the line before it's running the red light. If you think about an automated safety program run by software, it's not that easy to recode all these things to handle those two simple different cases. Now imagine scaling it up to cover speed, red light, integrated systems with more than 2,000 cameras in a city. When David talked earlier about running a business at scale, that's the kind of scale that we operate here. Start with enabling legislation, go through site selection. We work with local contractors, city-approved people who can put the camera in the ground. We work with acquiring the asset. We work with operating the asset. We plug it in, we connect it to the cloud, either through cellular or hardwire connectivity. Then we work with all the automated back end with the police departments and our local governments on how do we get that citation into customers' hands and how do we get it paid out. Then lastly, we have to make sure that camera stays up. These are revenue-positive programs for our customers, so the customers care an awful lot about uptime. They care about, you know, does my program work 98% of the time? We're one of the few people that can guarantee that with the cameras that we provide. All right. Some of the evidence that we're effective doing this. We talked about the 81% recurring revenue. 99% comes from long-term contracts. If you think about the complexity of these type of programs, the long-term contract becomes obvious. We don't wanna do this every single year. When you look at renewal rate, again, it's one of those things. Do I really wanna change Stream at this point because, wow, I saw how complex this was and it works. I love what I'm getting from my uptime. I love what I'm getting from my processing fee. This is fantastic. I wanna keep going. What this has led to is doing analysis of our customers, we're seeing mid-single digit growth of our existing customer base. Our customers like it. They're seeing the benefit. They're seeing that fatalities are going down, and they continue to expand. We don't need to go sign up an awful lot more customers to see the mid-single digit growth. We have it in our sights. Just wanna bring it to life for one second here. This is the story of Ottawa, just a kind of a day in the life of a new customer. Ottawa was new to photo enforcement. They've done all the research. They knew that, hey, fatalities tended to go down. We've seen a correlation. We wanna try it ourselves, but we don't know anything about photo enforcement. How do we do this? We got the phone call. We gave them all the education. We set up the whole program for them. They picked six school zones. We set up a pilot, and the results are obvious. 50% reduction in speeders in the first 18 months after installation. 71% reduction in high-end speeders, people going more than 10 kilometers per hour over the speed limit. Based on those simple factors, they said, "Well, the program works." Oh, didn't even talk about the financial impact. They're making a lot of money from it. Based on the efficacy of the program, said, "Well, let's keep investing. Let's add more zones, more sites. Let's keep expanding." We believe that this is where our next large city customer is gonna come from, is when they see these benefits. We would love to see more cities scale like the one we're in today. This is how these things scale and waterfall over time. Now, clear competitive advantages. I've hit on most of these. This is really just a wrap-up and a summary. The long-term partnerships is really key to our ability to continue to add new customers and scaling the customers we have. Existing customer growth is a huge part of our growth model, so we have to make sure that we're doing really well to continue to expand our current customers' programs and support them per our contract requirements. Reduce risk for any new customer. I talked about the Ottawa program. That is not unique. That is our typical model. Cities wanna start out small. They see that it works, and they grow quickly. We have capacity to scale. You know, our customers or new customers should not be afraid that we've got the ability to scale to support any number of cars that they might wanna process or any different types of violations that they might wanna look at. Market-leading technology. This directly leads to our ability to scale. This is all of our SaaS backend automated processing, and we're at 40 million today. It doesn't take an awful lot of R&D effort on our backend to scale to 100 million tomorrow. Legislative capabilities. I don't wanna undersell how important it is to understand all of the local laws because they are changing all the time. We are one of the few companies that really keeps a pulse on all the local laws that impact us. Often, we're going back to the municipalities themselves and telling them what has to change in their own program to keep it up and running. You know, through all these things, we really believe we're the best one-stop shop. David talked about us being number one. You know, I'm not gonna say number one, but it's hard to see who would be a close number two because we do all of this stuff incredibly well. I've only been here for three months, and I still can't poke any holes in what we do. This team is incredibly well-versed at delivering these type of solutions to the market. Let's talk about well-positioned for growth. I talked about the mid-single-digit growth just expanding in our current customer base, and we can sell them more things. We can expand their current programs. You know, New York City was a big expansion program. It wasn't new enforcement types as they put more cameras in the ground. We can expand school bus stop arm to many more places. Adjacent opportunities. We talked about global expansion. You know, currently we're under-penetrated from a SaaS perspective in the European market. Scale and accelerate growth in bus lane and work zones, which are new enforcement types that are turning on now, but we're well positioned to take advantage of those. I'm gonna have a little bit more detail in a couple of slides on the first two buckets here because these are really right in front of us. These are the opportunities we're gonna go grasp and attack right now. We look at emerging opportunities. This is kind of the sky's the limit. You can imagine we're a company with cameras in the ground over large, high-density urban environments. We've got automated video processing. We are in a prime position to think about things like congestion charging, low emission zone. We can look at it when a car enters a city. Look at the car when a car enters a city, assess what's going on with that car. You know, is that a pollution generating vehicle? We can assess that car should not be in the city at this time. Let's have a much higher charge. It's kinda the sky's the limit in terms of things you can imagine for what we can do with our current position. It's really a matter of identifying those kind of programs. We see a lot of bright opportunity for us and emerging opportunities in the future. Let me jump into a little bit about why do I believe the core is so strong. If I look at the picture on the top left, these in the blue, these are states that allow automated traffic enforcement, right? It seems like a big number. If you look at the bottom left, those are the states that only allow one kind of traffic enforcement. They might only allow red light, but they don't allow speed. If you think about, you know, how hard of a job it is to convince a legislature to say, "Well, you've already allowed cameras on the ground. How about we allow them to do one more thing?" is an easier job than convincing a state that doesn't allow automated enforcement to install cameras on the ground in the first place. We see the bottom left as a big opportunity for us. If we just look at three states where legislation's happening now, is Florida, California, and Connecticut have recently introduced legislation to expand the enforcement types. Just an example of how we organically grow our business by more states turning on and ideally supporting David's, you know, Vision Zero that he talked about. Just in this one, just in Florida, Connecticut, and California, 350 more cities, 600 more work zones, 5,000 potential more school zones, and up to $200 million of incremental ARR that we can go target, assuming the legislation's passed. The one on the right is expand school bus zone. This is working directly with the school districts in 14 different states, which represent 80,000+ buses. How do we get every bus equipped with a stop arm safety camera that's gonna generate incremental recurring revenue for us and keep our children safe? Lastly, from an adjacent opportunities perspective, you know, we acquired Redflex. One of the technologies that we got is they have a very strong position in work zone photo enforcement. So this entire van can be considered a photo enforcement traffic camera. You drive it to a location, it could be anywhere in the state of New South Wales, and you have an automated enforcement set up in less than 30 minutes. We're seeing this type of use case happen very quickly in deploying in the United States today because we can see that this is having a big impact in keeping our workers safe. It can be deployed anywhere at any time, which is much better than just the orange sign that says, "Please slow down." Right? This is one that's rapidly growing, and we have a prime position here just based on technology we got from the Redflex acquisition. We've already won two big design wins in North America this year. Everything that we see in the funnel for current opportunities, we're in a prime position to win. Lastly, I talked about exporting current business model. A lot of our Redflex customers in Europe buy the camera, pay for maintenance service, but we're not currently selling them the automated processing service that we have at Verra. We've already seen opportunities for us to kind of export the Verra business model to our European customers to see incremental more value there. That actually increases our recurring revenue and again, reinforces kind of the durability and stability of the business. Overall, just for these two categories of just, you know, things in front of us and things that are adjacent, we see multiple lines of sight to mid-single-digit growth. You know, we are subject to the whims of the market in terms of legislation to a certain extent, but depending on what happens, we still see that we've got opportunity to grow where we currently are and over-deliver the mid-single-digit. Summary, mid-single-digit growth is within our sights. I hate to say this in front of my boss, so this is not that challenging of a thing for us to go get because it is in front of us. Don't sign me up for high single-digit. We have new solutions for international expansion that give us a lot of upside here. You know, I would say that this is probably the conservative part of our forecasting model just based on what we see in front of us. If we believe that our tolerance for traffic fatalities is going to decrease over time, that will only lead to an increase in our market because automated enforcement is a proven solution to improve the safety of our streets. I would just like to close by saying I am very proud and excited to work here. You know, having a direct impact on people's lives is really an inspiring thing, and I'm really thankful to David and the leadership team for welcoming me to the team. All right. I would like to introduce Adam Blake, who's the newest member of the Verra family. All right. Thank you, Jon, and good afternoon, everyone. We have a video to show you introduce the parking solutions, and then I'll get going on the presentation. Parking is a hassle, whether it's finding a spot, reserving just the right amount of time or paying a parking violation. For our customers, managing their entire parking operations is a complex challenge. In cities and towns, drivers searching for parking creates problems like traffic congestion and distracted driving. Improving access to parking can ease traffic, enhance mobility and optimize infrastructure. Rideshare services, delivery vehicles, food trucks and micro-mobility solutions are driving up demand for valuable real estate, the city curb, making curbside management a challenge for cities and towns of all sizes. Large campuses like universities and hospitals need to issue and enforce parking permits for different users. Solving all these issues requires an integrated suite of software and hardware. Verra Mobility sits at the center of this complex ecosystem. We provide technology solutions and data-driven insights to manage parking and unlock new parking possibilities for our customers. Our parking solutions business helps customers generate revenue and operate efficiently, supported by the industry's largest peer-to-peer community. For nearly 30 years, we've helped customers simplify and enhance their parking operations. Now we're building on that legacy to address the parking challenges of the future. We offer a unified software platform that serves as a central source for customers to manage their entire parking operation. One database for all our customers' needs, monetizing parking areas, issuing permits, enforcing rules and facilitating payments. Drivers want more options and expect increased flexibility in how they pay for parking. We're at the forefront of enabling parking programs powered by mobile accessibility. In a dynamic labor market, our customers need to automate their operations as much as possible. It's more than parking. It's making every trip a smooth journey by enabling new forms of mobility while advocating for the traveling public. At Verra Mobility, we're helping solve these challenges to improve safety and promote healthier, more sustainable communities. All right. Good afternoon and thank you for the opportunity to educate you on T2, the parking industry as a whole, and then how we're gonna grow this business. Really thank you for your time and being here. If we kinda double-click on T2, I'll kinda give you a little bit of history. While I'm new to Verra recently, like, December is when we got acquired, so we're now part of the Verra Mobility team. I've been with T2 since 2015 and led a great group of a fantastic team that's dedicated to the industry, technologists really understand the markets that we're serving, and really just kind of honored to be able to lead that team. T2 was founded in 1994. We grew up in the university segment, and through organic and inorganic growth, we opened up new segments. We're beyond universities now, expanded into municipalities and a lot of different other segments. I'll kind of talk about that breakdown and how that is. The most important thing for you to understand on this page is the 2,000 customers. To understand T2, that is the heart of everything we do. We understand the industry, we understand their pain points, and we understand what technologies they require to run their operations and run it well. The TAM is a North American TAM, so we are only in North America. We serve U.S. and Canada. We have about 300 employees in both U.S. and Canada. We are headquartered out of Indianapolis, so that's kind of where we grew up there. Because of our strong relationship with our customers, and this is also something you need to understand about the parking industry, parking is not a competitive environment, right? Our customers are peers to each other, so universities collaborate with other universities, municipalities collaborate with other municipalities. They talk about the challenges they have and how they're solving it. Our network and our relationships with our customers is imperative to understand, A, what are the trends happening in the market, and then, B, making sure we have the right roadmap and technology going forward to solve those challenges that they're facing. Because of that strong relationship with the customers, you can see we have a 98% renewal rate, which is fantastic when you're thinking about over 2,000 customers, right? This is not just one or two customers, but a very solid community. We have about 19,000 parking devices in the ground, and I'll kinda give you a split and understanding of what our portfolio looks like. That kinda gives you an idea of how many devices we have, and we process about $2.5 billion through those transactional touch points a year. That's commerce going through our system, just to kinda show you the scale and what that looks like. Our breakdown of sales is kind of how we approach everything. We're a software-led, hardware-enabled company. That's our whole approach. When you think T2, think of technology, not an operator. We only provide the technology to parking operators, and it's really software-led, and then hardware is just a means of interaction with the parker. A means for a parker to interact and transact. Then we have 53% is a split on SaaS, 22% on hardware, and 25% on services. I'll kind of double-click on what services mean and kind of how we make money on that as well. If you look at the CAGR, 7% CAGR, that's also going through the pandemic. The industry was hit pretty hard, as you can imagine. Work from home means cars do not move. That means people aren't paying for parking. That means there's not parking challenges. The industry is kind of a lagging, kind of getting back to pre-COVID. I would say it stretched all the way into the beginning of this year. Now we're starting to see a lot of movement when a lot of the restrictions has eased up. That's where it kinda went all the way. With that, we still had a 7% CAGR on SaaS, right? It is a very solid business. We weren't impacted like other of our competitors were impacted in that environment, and that's something that we're really proud of. I'm gonna be double-clicking on our growth drivers, but it's pretty simple. What I'm gonna show you, we're gonna grow in the core, right? We have people waking up every single day, understanding the industries we serve, understanding our customers, and making sure we deploy the right solutions to them. Now that we're part of Verra, we now can open new markets, which weren't previously available to us. Going into bigger tier zero municipalities before wasn't our focus because we didn't have that scale behind us. Now we can start penetrating those larger municipalities, and we can start expanding into other industries as well. That's really the kind of the growth there. The one thing that gets me really excited is about emerging opportunities. I'm gonna talk about one in particular, down the road, a couple slides here. Really talking about how emerging technologies, how people are moving different and how they live different are changing the challenges that our customers are having. I'll kind of walk you through that as well. The first thing I wanna ground you is, like, everybody parks. They don't understand it's complex, right? Every industry we serve is vastly different. If you look at universities on the top there, they know who's coming to their campus. They know where they're gonna park. Their challenge is making sure I can get that individual to the right place without congestion, and then if people park in the wrong place, I need to be able to give them a citation and enforce on that. They do have visitors and stuff like that, but it's a kind of a different challenge that they have, where I know it, I need to plan for it up front. I got limited space to park, and I need to get them quickly. Municipalities is different. I mean, obviously, you go out here on the streets of New York, and you can see trying to park on the curb is a bit nuts, right? There's a lot of complexity that goes along with that. That's a lot of transient parkers. I don't know who's gonna come, when they're gonna come. You can try to do reservations up front, but people don't necessarily think that way. You have to have the ability to enforce quickly, have the ability to give them options to interact and transact, and their method is different. The challenge that they have, and if you look at the site map, is each one of these touch points traditionally is done by another vendor. Each one has disparate systems. If you think of a parking garage, right? You're gonna hear an acronym maybe called PARCS, Parking Access Revenue Control, fancy term for a parking garage with a gate that goes up and down, right? I want sometimes to limit who can access that garage. Sometimes I wanna make sure they pull a ticket, and they go in the garage and pay, do a pay on foot and pay for it at a physical kiosk. Sometimes it's gonna be a mobile device. Different options traditionally done by a different vendor. You have the permit management, the allocation of who can park where, typically done by another vendor. If you go on the street, it's getting worse. You know, probably everybody's gone to park, you know, on the street here, and you can pay on a physical kiosk, or you can pay via phone, right? The problem there is two separate vendors, two separate data. If someone overextends their stay, how do you enforce? All this disparity that's happening is creating a crazy challenge for our operators, right? They're now moving away from being parking specialists and now being tasked to be system integrators. That's really where we kind of step in. This is what we do. In the heart of everything we do, we have a unified parking platform. Think of about a parking management solution, where we aggregate data from all these different disparate systems and create a dashboard for them to manage their operations, be it on-street, off-street events, a parking garage, all within our kind of ERP or, you know, that platform. We also provide, as I talked about, different hardware solutions. So be it the actual gear that goes into a parking garage or a meter on the street, multi-space pay station, or it could be LPR for identification and enforcement purposes. We provide hardware on that. We have different services down here, payment transactions, so we can be part of the payment transactions through managed service or managed payments. We can actually help our operators collect on their debt. If they have outstanding citations, we actually can provide the services behind that to collect on that. We obviously have mobile solutions, so you can pay, you know, on the mobile device, in a garage, on the street, wherever, all consolidate back into that unified platform that they can operate on. Ideally, this is what we do. We look at the different industries we are. They all have different challenges. We provide a software kind of approach and different touch points. If they don't have it, we obviously have them, or we'll integrate into third parties to really aggregate that data and be that hub, if you will, for their operations. To kind of say, how does that all, like, translate into money? Like, how do we make money off that? SaaS, think about that as our leading kind of, you know, product or revenue. That's multiyear, you know, monthly fee type of approach. All those contracts are over extended periods of time. That's kind of the relationship management, the understanding of what customer, what vehicle, how is that associated. That goes into the enforcement piece and the collections. That's all of that software side of things. We do have touch points, like I mentioned, which are payments, but those are more transactional services, and they don't sit in our SaaS product line. On the services, you'll see some are recurring and then some are one time. Like, implementation services, typically one time revenue, right? It's we have a new customer, we train them, we configure the system. It's a one-time revenue line item. If you get into managed services, collections, services, and payments, those are more recurring in nature. They're more transactional. I might have a field service contract that's multi-year where I help them manage their facilities. Collections is basically I collect on the debt, and I get a certain percentage of the debt that's collected. Payments is your traditional, you know, I take a portion of the payment transactions that's happening. The third is really the hardware revenue, right? That's one-time in nature. That could be the meter, it could be the parking garage equipment, but that is the one-time revenue that then is attached to SaaS. Anytime I put hardware in the ground, there's SaaS that's attached to that. It's a nice kind of razor and razor blade type of approach where we like to put that, the equipment in the ground, and then we have SaaS that's recurring that attaches to each one of those things. The benefits and the way you need to think about this is we provide technology that makes money for our customers, right? They generate money through paid parking, through enforcement, through collections. Everything we do is not viewed as a cost, but ability for them to collect to go generate revenue and to be able to do it at low cost because we understand the industry. We consolidate it all from different from disparate systems into one consolidated system. We automate business processes, so we understand the, you know, what their process is and how we can improve that, and then ultimately leads to a better parker experience where they don't have different disparate rates. They don't have a different experience from the parker side because of the consolidated type of environment. Our customer base, again, universities, municipalities, those are our really targeted market that we go after. We have about 400 universities in the university space. Again, we grew up in that space, and I'll kind of double-click on kind of our market share and what that looks like. Municipalities, that's kind of a more recent type of growth. We did do an acquisition back in 2020 that's really helping us accelerate some of the market expansion in municipalities. We have about 600 municipalities in part of our customer community. Then we have about 1,000 different customers in other adjacent markets that we're in, airports, corporate campuses, et c. Those are not our primary, but our solutions are applicable to solving those challenges. Our direct sale channels are traditionally around universities and municipalities, and that's because of complexity. We don't wanna just go to a single garage and provide gear because they have nothing to consolidate from data. They have a single type of in-and-out type of facility. We wanna go to those big complex where you have multiple facilities, multiple lots, on street, off street, and collect that information back into a single repository. Very active community. Our customer advisory boards listed here, they're very active. We meet quarterly. We talk about overall customer health within the T2 community. We talk about the challenges they're facing. We review our product roadmap and get direction and make sure that our investment's going the right way. That's when I say it's in the heart of everything we do, that's why. That's really the indication of how we're gonna grow and making sure that we're growing in the right area. To kind of give you an idea of how we grow within our existing customer space, it's kind of a land and expand model. That's really the way you need to think about how we grow within our customers. We grow together. This is a use case or customer story. This is Texas A&M, fantastic customer, very talented team with very complex problems. They have they're balancing a lot of university and city life activity, a lot of different congestion and traffic, a lot of different needs and volume coming to the campus with not a lot of real estate to do so. They really wanted to look for a provider that could, first and foremost, aggregate the data and provide a platform to start building off these different kind of aggregation points and touch points with their customer base. If you think about the numbers, they have 84,000 faculty staff and students, right? If you think about it, they get about $1 million or a million visitors a year, and you know football, they have huge football tenants, and they kind of come in. All of that, and you got 37,000 slots or parking spots, right? If you look at that equation, it's very complex. Our relationship is kind of listed below, but the theme here is that we establish relationship mostly on the platform side, and that leads into cross-sell or adding new solutions into their portfolio as we learn more, as they understand different challenges that they're having, and we grow with them. When you think about this type of use case, this happens with a lot of our 2,000 customers. It's not just you sell it once and you support it long term. It's really a land and expand type of model, which gives us growth to in that existing market space that we've been. Going into growth opportunities, if you think about it, grow the core, look at adjacent opportunities and emerging solutions. I didn't even really kind of put the TAM for emerging opportunities because we have so much room to grow in our existing market, right? Our existing market is a $2.3 billion TAM in North America. That's again, think of universities, municipalities, and then our ability to land and expand in those. That's really the way you got to look at the TAM there. Adjacent solutions. Again, this is kind of a new available market that hasn't really been there because we didn't have the ability to scale before we joined forces with Verra Mobility. Now with that, the new kind of joining forces is about a $1.5 billion TAM that's now available for us just in the North American market. We're not even talking about global expansion or anything like that. We're talking about markets that we wake up every single day thinking about having relationships with customers, and we have people in the trenches there just growing that market share. Then you go, "Okay, what does that market share look like? Is there enough room for you to grow?" This is kind of how we break it out. We did put market share here, so you can have a good understanding of what that looks like. It's a $2.5 or $2.3 billion TAM, North America for this segment. Just under $1 billion is the TAM for universities. You go to municipalities, about $1.4 billion. If you look at our market share, we really grew up in that tier one, and that's about a 44% market share. These are customers that use a T2 product. Again, you have all those different kind of touch points and products that they can have. That market share is based off of any customer that uses a product of T2. About 44%, we have plenty of growth there that we can go after. If you look at tier two, 19%, 6% in tier three. The tier three is starting to grow up. They're moving from Excel spreadsheets into needing technology to enable. That's actually a really growth area for us that we haven't actually even paid a lot of attention to that can grow pretty nicely as well. Municipalities, again, we haven't really stretched into the kind of the tier zero, tier one base. We do have a 16%, but that wasn't a focal point. We're really focused on that tier two, and tier three, people that have congestion, parking problems, doing residential permits. That's kind of the sweet space. We have people, like I said, we have product management, we have engineers, and we have our customer-facing folks all aligned to addressing the concerns in those markets and making sure our roadmap are hitting exactly what that looks like. So if you think about growing that TAM, that's what we're doing every day, and we got plenty of headroom to go grow that market. The next area I want to talk about is this emerging opportunities. There's plenty of new emerging opportunities, but this is the one that I get really excited about. Walking through New York, it's kind of like your mind kind of just goes on overdrive trying to figure out the challenges that people have here. If you think about the battle for the curb, it's always been there, right? It's getting more and more demand, right? When you think about all the different things that are fighting for the curb, all the way from bike shares and micro-mobility, all the way from ride shares, and if you start thinking about food trucks, and now we're doing parklets where we're taking up real estate and putting nice little kind of parklets, and then you have your traditional parking and meter spots. There is so much chaos that's happening on the curb that's not just in big cities, it's in universities, it's into smaller municipalities where there's a real need to resolve this, right? It's for safety. It's also for if they can generate revenue and also to reduce congestion within their city streets or the university streets. Today, what a lot of municipalities are doing is trying to understand how they could solve these problems, right? How do I give someone access to the curb? How do I enforce the curb? How do I automate that? Because directed enforcement or finally getting there, someone's you know needs to be enforced or issue a citation, that is generally relieved by that time, so automating the enforcement. They're trying to figure out how to do it. There's a lot of different pilots going on. There are a lot of interest to understand in how we solve these different challenges. Right now, I think Verra Mobility is very well-positioned, obviously, with T2 coming in from our parking management and more of that enterprise platform to help consolidate all these different touch points and the data there to Verra Mobility understanding urban mobility, understanding forward enforcement, understanding all that, you know, automation around enforcement and bringing those into one consolidated system to help these cities resolve that. When we start looking about resolving that, it's early days. I would say we're in the definition ideation phase now. We're capturing voice of customer. You know, predictions are this is gonna be a $4 billion opportunity by 2030, and that's the way the TAM looks like. We're excited about it 'cause it's kind of parking, but it's also other areas within Verra that, you know, this unique combination with the two companies that we can now go address, and really help solve problems for our customers. If you look at T2, right? You have to understand our strong long-term relationship and ability to grow and innovate is imperative for future growth, and we've proven it time and time again. 28 years of experience doing it. Lot of different examples of high single, or high ability to add on and expand into those adjacent markets. Just that kind of organic growth is a high single digit grower. Now looking at the white space that's opened up due to Verra, now we're starting to look at different markets. Now we can expand even faster, right, into those. Now with new emerging opportunities, people changing how they move and get around, it's even gonna help us even more with these emerging opportunities. You have to innovate. You need to understand these pain points. You have to deploy new technology to really enable it. Think about that. Think about strong business, strong relationships with the capacity to grow. With that, we're over. Obviously, I think everybody needs a bio break. It says 15 minutes here, but we're gonna go do 10-minute break if that's okay. In about 3:10, everybody come back, and we're gonna get back with Mike McMillin and talk about M&A and our strategy there. Thank you. [Music] Senior Vice President of Corporate Development and Strategy. Today, I'm gonna walk you through our approach to acquisitions at Verra Mobility. What I'm got to walk through are three things. First, the types of acquisitions that Verra Mobility will do. Second, the framework that we use, the consistent and replicable framework we use to evaluate acquisitions. Then three, I'm gonna give you a preview of the future areas of M&A that we will look at. The first thing to say here is that our acquisition strategy is always in support of our overall growth strategy. What I mean by that is it represents an option for capital allocation as compared to organic investment, as compared to share buybacks or any other uses of capital at that point in time. We will only execute M&A if we believe it has the potential to deliver the highest returns versus any alternative uses of capital at that point in time. Now, that being said, there's three types of acquisitions that we will do, and you will first notice that this is very aligned with our growth strategy presented by David and the business units. Our M&A strategy is focused on strengthening the core, accelerating growth in adjacent markets, and expanding into emerging opportunities in connected fleets and urban mobility. Let's start with strengthening the core. This is where we will execute acquisition in markets we are already in and that we know very well. Companies with that play in a similar market with similar products where we can leverage best of both and really drive scale. The key value driver here, the key value creation lever for Verra Mobility is about cost synergies as the businesses come together. The best examples I can show you of these are first Highway Toll Administration or HTA that Verra Mobility acquired in 2018. At the time, that was combined with our existing rental car tolling business to really create the foundation for what is now the commercial services business unit that Steve presented a moment ago. The other one that we just did last year that Jon talked about was the acquisition of Redflex that was combined with Government Solutions in order to create an optimized business with more scale. The second area for us is accelerating growth in adjacent markets. This is about accelerating revenue through expanded customer reach in the form of entering new customer segments or new geographies, and then also expanding our product portfolio to sell through our existing customer segments and customer channels. Key value creation lever here is about cost synergies as we combine capabilities, but then also revenue synergies as we look to take advantage of the expanded product portfolio and the expanded reach. The best example here are two acquisitions we did, one in 2018, other in 2019 of EPC and Pagatelia, which were both done for the purposes of accelerating our European growth strategy that Steve Lalla talked about in Commercial Services. The third area for us is where we will expand into emerging opportunities in connected fleets and urban mobility. This is where we will be very selective. This is about finding the right targets at the right time, at the right price, where we can really leverage Verra Mobility's existing assets, capabilities, technology, etc., in order to establish a new growth vector for Verra Mobility. Key value driver here is about being very disciplined on price and standalone value, but also keeping an eye on longer-term revenue synergies and strategic synergies. The best example here is T2 Systems. Adam just presented that added a third business unit to Verra Mobility and a brand new growth vector for us as we think about the future of Verra Mobility. We have a strong track record of executing M&A in each of these areas, and we expect each of them to be important as we think about M&A areas for us in the future. Those are the types of acquisitions we will do. Here's the framework, and we think about this as a consistent and replicable framework that we use to evaluate acquisitions regardless of the type. We think about three criteria. One, strategic fit, two, price discipline, and three, integration focus. For strategic fit, we ask ourselves three questions. Do we like the market? Do we like the company? Is Verra Mobility the best and unique owner in the form of the specific value add opportunities we can drive? When we look to market, we look for markets with strong growth potential, coupled with high barriers to entry, so we can have confidence that that growth and profitability is sustainable in the future. When we look at the company, we look for market leadership, both the existing market leadership and the potential to create market leadership going forward. We look for revenue durability and predictability. Most often, this comes in the form of recurring services revenue coupled with sticky customer relationships. Then the third thing in the company dynamics we look for is a history of growth and cash flow. We like this for a lot of reasons. One of the reasons we like it is it gives us a strong sense of conviction in the future growth and cash flow of any acquisition we are buying. Then the third area here is value add opportunities. This is where I talked about the question we ask ourselves is Verra Mobility the best and unique owner? What I mean by that is what are the significant costs and revenue synergies Verra Mobility can drive when we combine the target with Verra Mobility's existing capabilities. All right, if it passes through the strategic fit filter, we then look at price discipline. Price discipline for us is about returns, cash flow, and margin of safety. Returns is where we look to make sure that any returns we generate are greater than the cost of capital for any particular deal that we're doing, as measured by an internal focus on return on invested capital, ROIC, to make sure we are executing on the deal thesis that we lay out for the strategic rationale for the deal. For cash flow, we take a very disciplined cash flow-focused view of the world, where any benefit we believe is going to come from the acquisition has to be explicitly modeled in the future projected cash flows of the business, which means if we can't value it in future cash flows, we can't attach any value to it. The next component of this is that cost synergies define an upper limit to deal value. I'm gonna spend a little more time on that on the next slide to make sure that point is clear. Before I do that, let me cover margin of safety. Margin of safety for us is about price versus value. Is the price we're paying for any particular asset, does it leave room for value creation, so we can deliver value for Verra Mobility and Verra Mobility shareholders? All right. If we have a target that passes the strategic fit and price discipline filters, the next thing we look at is integration focus. Integration focus for us is all about execution. Is our integration strategy set up to execute on the deal thesis? Meaning, are we set up and designed for full integration if we are looking to leverage cost synergies? Or are we set up for a more selective integration process if we believe there are revenue synergies, and this is where we would selectively link the activities that really matter for value creation. Essentially, what we wanna do is integrate as quickly as we can, but only where it matters. Then do we have an operating system aligned for execution around accountability and ownership, short-term synergy targets and longer-term ROIC targets? Then culture. Are we always keeping an eye on cultural fit to make sure it can be an accelerator for the deal thesis? We believe by following these three, strategic fit, price discipline, and integration focus, we can drive shareholder value and compounding returns through a disciplined approach to M&A. That's how we think about the framework. I wanted to spend a second on price discipline because price discipline is the single most important thing we can do to make sure we are consistently delivering value through any acquisitions that we do. I wanted to give you a very specific flavor on how we think about it. On the last slide, I talked about three principles, returns, cash flow, and margin of safety. What I wanted to show and what I'm showing on the waterfall on the right is an illustrative example of how we think about value as manifested by the cash flows of each of these components. We think about the value to Verra Mobility in four different components. One, the standalone value of the asset, the existing cash flows that the asset produces on its own. Two, the cost synergies we can uniquely create by combining the businesses with Verra Mobility's existing assets and capabilities, etc. The revenue synergies, this is about new products that we can sell to our existing customers or through our existing channels and/or new customers, expanded customer reach for our existing products. The final piece of this is the strategic option value. This is about new market opportunities that are created by the combination. The best example here is what Adam just presented to you about T2 and curb management. By coupling T2 Systems' parking platform with Government Solutions' automated enforcement capability, we now have a right to play, and more importantly, a right to win in curb management in a way that really neither business on a standalone basis would be able to do. When we think about value to Verra Mobility, each of these components are explicitly valued in the specific future projected cash flows of the business, and that allows us to target very actionable synergies and ROIC targets as we execute on the business post-acquisition. That's how we think about value. The next question is, how do we think about price? What I'm showing on this slide is that standalone value plus cost synergies represents an upper limit to deal price. What I mean by that is revenue synergies, strategic value, they're tremendous opportunities. They often have a tremendous amount of upside for Verra Mobility shareholders, but they are more longer-term and less certain. We will generally tend to reserve the upside of revenue synergies and strategic value for shareholder value creation for Verra Mobility, which means standalone value and cost synergies represents an upper limit on deal price relative to the overall value to Verra Mobility. That means in any particular deal, there's four potential upsides of value creation. One is upside on standalone value, the other is upside on cost synergies, and then value creation associated with revenue synergies and strategic option value. If we take a very price-disciplined approach, we are able to have explicit cash flow view of where the value is gonna come from and drive very clear targets for execution and value creation. Okay, so that's how we think about acquisitions and how we think about price versus value, but we did two acquisitions last year. We acquired Redflex in the middle of last year, then we acquired T2 Systems near the end of the year. I wanted to give you a little bit more detail on how we think about each of those acquisitions relative to the framework I presented, and also give you some specific details on how we thought about those acquisitions specifically. In the framework slide, I talked about strategic fit, where we asked three questions: Do we like the market? Do we like the company? Is Verra Mobility the best and unique owner in the form of the cost synergies and revenue synergies that we can drive? For Redflex, the deal thesis of that one was very clear. That was about strengthening the core. That was about combining Redflex with our existing Government Solutions business unit, creating a stronger position of market leadership, and creating a combined business unit with greater potential of growth and cash flow than either would be able to do on a standalone basis. The key value add or the key value creation lever for Verra Mobility for this was cost synergies as we create scale through the combination. From an execution standpoint, in the Q4 2021 earnings call, we talked about how we have achieved 50% of the total expected synergies to date, and we expect to achieve the balance of those synergies over the course of 2022 and 2023. Now that Redflex is completely combined with Government Solutions, you will see that deal thesis executed through improving margins in the overall Government Solutions business unit. Now let's talk about T2 Systems. T2 Systems was a different deal thesis entirely. That was about expanding into emerging opportunities, specifically an entry into the parking market and creating a brand-new growth vector for Verra Mobility. There's a lot of things we liked about the company T2, but specifically market leadership position with universities, coupled with strong revenue durability in the form of recurring software and services revenue, but also very sticky and trusting customer relationships. From a value add perspective, this is where, in partnership with our relationships in Government Solutions, we're able to accelerate revenue growth by leveraging our cities and municipality relationships over time. The deal thesis here will be executed as we deliver high single-digit revenue growth for T2 Systems. That's what we did last year. The next question is, where are we going with M&A? The first thing to note here is that our future path for M&A is very aligned with the growth strategy. The markets that we will play in are the same markets that David presented in his presentation, where we will focus on connected fleets, and we will focus on urban mobility. From an execution standpoint, we will focus on deals that strengthen the core, accelerate our growth into adjacent markets, and expand into emerging opportunities. As we think about strengthen the core, this is where we will look to acquire businesses in those spaces we already operate in order to drive cost synergies and drive scale. We will do that in tolling, title and registration. We'll look at safety and automated enforcement, and also parking. Parking represents a new platform for us for acquisitions now that we've completed the acquisition of T2 Systems last year. For accelerating growth in adjacent markets, this will be mostly about expanding customer reach for Verra Mobility, where we'll look at new segments and fleets and commercial services as transportation becomes more shared. This will be about geographic expansion for connected fleets and urban mobility, and we'll look to expand customer reach with cities and municipalities and parking. Expand into emerging opportunities. This is where we will be very selective in making sure we find the right asset at the right time. This list is far from exhaustive, but to give you a flavor of the things we will look at in connected fleets, it's integrated vehicle payments, electric vehicle charging, or new connected fleet solutions as fleets become increasingly connected and electric and shared. Urban mobility will be about looking at enhanced pay by phone for parking, essentially our mobile app capability for parking, curb management capabilities, and then new automated traffic enforcement use cases, things like distracted driving. For Verra Mobility, future M&A for us is very focused on the areas where we think we can create the most value in the form of strengthening the core, accelerating growth in adjacent markets, and expanding into emerging opportunities. In summary, for Verra Mobility, M&A for us is supported by the following three principles. One, we use a disciplined, consistent, and strategic M&A framework to support our growth ambitions. Two, core, adjacent, and emerging opportunities in connected fleets and urban mobility drive future M&A. Three, price discipline, coupled with a relentless focus on cash flow and returns, drives value creation for shareholders. That's M&A at Verra Mobility. With that, I wanna introduce you to our Executive Vice President and Chief Financial Officer, Craig Conti. Thanks a lot, Mike. Appreciate it. Before I kick off today, thank you everyone for attending both in person and online and giving us the opportunity to share our story with you this afternoon. After this, we'll do the Q&A, so I'll tee that up right at the end of my presentation. Couple things I wanted to start with. I'm gonna start with these qualitatively at the beginning of the presentation, and I'm gonna do this on the last page and put some numbers behind them for you. The first thing I'd like you to take away is that we have a proven business model, and we're poised to generate mid- to high-single-digit organic growth over time. We have a strong and flexible balance sheet. Cash generation is our primary value driver. I'll walk you through that and how we intend to allocate that, getting into three, clear and disciplined capital allocation priorities. Finally, four, and maybe the biggest takeaway, we have multiple paths to double our free cash flow per share by 2026. Before we talk about the future, I wanna talk a little bit about the past. David walked you through a version of this slide a little bit earlier. What we're showing here are the financial results from 2018 through the TTM period of Q1 2022, so about 3.25 years. As you can see over this period, total revenue roughly doubled to $631 million. That's an 18% CAGR. If we take out the 2021 acquisitions that Mike just detailed out for you, Redflex and T2, that was a 13% organic CAGR over that term. From an adjusted EBITDA standpoint, 14% CAGR with an exit rate of about 49% on a margin standpoint. Before I talk about the conversion of free cash flow at the portfolio level, I wanna drill into 2020 for a second. For those of you who have followed the business for some time or have become more familiar with it today, you know that this business was severely impacted by COVID, particularly in the early days in 2020. However, during 2020, the company still generated almost $400 million of revenue, $182 million of adjusted EBITDA, and was free cash flow positive. At the enterprise level, if we look at free cash flow conversion, I'll take out 2020 just on my previous comments, we generate about 50% adjusted EBITDA to free cash flow conversion. That's where we've been historically. That's where we expect to be in the future, and I'll take you through that. Over the term of this three-year and three-and-one-quarter-year timeframe, the company generated over $400 million of free cash flow with roughly one-third of that time being COVID impacted. I'm gonna give you a quick snapshot of the balance sheet. This is as of the first quarter of 2022. From a net debt standpoint, we had about $1.15 billion in net debt on our balance sheet. That was a mix of fixed and floating. That entire debt stack was refinanced in 2021, and we have no near term maturities. In fact, our earliest maturity is out in 2028. From a liquidity standpoint, again, as of March 31st, we had it slightly north of $160 million of total liquidity. That was a mix of cash on our balance sheet and an undrawn revolving credit facility. I wanna take a few minutes to talk about leverage, and I'm gonna go into a little bit of detail on this one. We started the chart in Q2 of 2021, and I really wanna focus on Q2-Q4 of 2021, which was a particularly active period in the history of the company. Just before we closed the second quarter of 2021, we closed on our Redflex acquisition. Over the six-month period, we also announced and completed a $100 million share buyback. In the middle of December of 2021, we announced and closed the T2 acquisition. We closed 2021 with net leverage of 4.3 times. Ninety days later, the business was at 3.8 times net levered. I have a year-end pro forma 2022 number here on the slide for you. That's 3.5 times net levered, and we'll be there or better by the end of the year. That 3.5 includes the $125 million share repurchase that we announced on May ninth. It's assumed as completed in that number. The takeaway here is that the company has the ability to lever up prudently when opportunities present itself. Due to the strong cash generation of the portfolio, we have the ability to delever over the period of quarters, not over the period of years. If you saw our press release today, this won't be a surprise, but if you didn't, I'm very pleased to announce that we are raising our 2022 guidance for both revenue and adjusted EBITDA. From a total revenue standpoint, we're going up from our prior guidance of $715 million to a range of $720 million to $740 million. On the adjusted EBITDA side, we're going from $322 million to a range of $325 million to $335 million. We expect our product revenue to be about flat to what we communicated earlier. This is solely driven by an increase in service revenue. We continue to see strong travel demand. We saw it in the second quarter, we continue to see it today, and we see it into the foreseeable future, hence the reason for the raise. As I go forward and I reference 2022 in my presentation to talk about what's next for Verra in the more distant future, I'm going to be referencing the midpoint of these ranges. Seven hundred and thirty million dollars for 2022 revenue and three hundred and thirty million dollars for 2022 adjusted EBITDA. Let's go out into the future. Over the next five years, we expect total organic revenue to grow between 6% and 8% per year. This is really a culmination of what you heard each of the business leaders say on this stage earlier today. Commercial services, we expect to grow in the high single-digit percentages. You heard Steve Lalla talk about the continued U.S. expansion into the fleet market. You've heard about the conversion to cashless on a lot of our roads, which is still ongoing. Jon Baldwin talked about government solutions expecting to grow in the mid-single-digit percentage. You heard about the significant amount of white space that still exists here in the United States, and our increased international presence that primarily came to us as a result of our Redflex acquisition. You heard Adam Blake talk about the parking solutions, otherwise known as T2 business, expecting to grow high-single-digit percentages as we leverage our relationships with large municipalities in Verra Mobility to help land and expand that already historically successful business model. 6% to 8% on total revenue. Before I talk about adjusted EBITDA and cash flow on a dollars basis, I wanna talk about the margin percentage. As you can see, the margin percentage stepped down from 2021 to 2022. This is consistent with our earlier comments. We did expect this. This is the acquisitions of Redflex and T2, which were of course margin dollars accretive, but were margin percentage dilutive in the near term. We do expect our margins to return to our 2021 exit rate of about 49% to 50%, and we'll get there through increased synergy realization and scaling in our legacy businesses. From a dollar standpoint, we expect adjusted EBITDA and free cash flow to grow organically on average 8%to 10% per year. The overall takeaway, we expect continued core growth, margin expansion, and again, that 50% free cash flow conversion as a percentage of adjusted EBITDA. Before I talk about future capital allocation, I wanna give you a view of where we've been in the past. This is a five-year view starting in 2017, and it's pro forma adjusted for the buyback that we announced in 2022. We've deployed about $1.5 billion capital across the enterprise. Roughly 8% or $125 million of that went into organic investment, which we have labeled CapEx on the page. Now, when you think about CapEx for Verra Mobility, this is not sustaining CapEx. Sustaining CapEx is a very small amount of our spend. This is revenue generating CapEx. These are cameras installed on a customer's behalf that we keep on our balance sheet, and this is internally developed software. Mike just walked you through strategic M&A, some of the deals that we've done, $1.2 billion invested over the past five years, and this was augmenting our scale and our legacy businesses and also entering new markets, as we did with parking and increasing our international presence. Finally, we've announced and executed one of these two buybacks, $225 million over the five-year period. In fact, that $225 million has been done over the last nine months. Before we talk about future capital allocation, I wanna build up for you what the cash engine for the business looks like. I did this, I used 2026 pro forma to walk you through this. I'm gonna start on the chart on the left, and I'm actually gonna walk you through in a little bit of detail. Three hundred and thirty million dollars is our 2022 adjusted EBITDA forecast. That's the midpoint of the guidance that we just talked about. If you grow that 8% to 10% a year, you get to $475 million of adjusted EBITDA outlook by the end of 2026. You would take away from that CapEx. Now, again, that CapEx, revenue generating CapEx. Think cameras, think internally developed software. We'll have an increase in net working capital, then, of course, tax and interest would get you to a 2026 pro forma free cash flow of $240 million. Again, that $240 million is roughly 50% of the adjusted EBITDA for 2026. Now let's take that one year, and let's look at the full construct over the next five. Over the next five years, Verra Mobility will generate $1.2 billion of total organic operating cash flow. Add to that the cash from relevering, and when I say relevering, we're not taking leverage up in the business. We're going to exit 2022 at 3.5x net leverage. We expect to maintain the 3.5x net leverage over or on average over the next five years. That's another $500 million. Add those together, and you get to a total of $1.7 billion of cumulative deployable capital over the next five years. Just to size that for you can see we put it on the page here. That's roughly 70% of today's market cap. Let's talk about what we might do with some of that capital. As I said at the beginning, and I think as you've heard from just about everyone on stage today, organic free cash flow generation is our strongest value creation lever. If we apply that, as we have historically, to M&A and repurchases, we can compound that value for our shareholders. To highlight this, I set up two examples for you today. Now, the one thing underlying both these examples is that we are a 3.5 times net levered business over term. That doesn't change between the two. If we take that $1.7 billion of deployable capital and assume in scenario one we allocate 25% of that to M&A and 75% of that to share buybacks, that gives you the results for scenario one. We'll go through in a second. Then for scenario two, we completely inverted that and said, let's assume that we take 75% of that $1.7 billion, allocate it to M&A, and then 25% allocate it to buybacks, and let's see what happens. As you would expect, as you read down the chart, adjusted net income, free cash flow, obviously share count is gonna be different under both, but what's not different is the EPS. EPS at $1.87 or better, which would be a 20% average annual growth out through 2026 and free cash flow per share, $2.05 or better, or 15% average annual growth out through 2026. As I promised, I wanna end where I started, and I wanna put some numbers behind each of these for everyone who's joined us today. The first is the proven business model that's poised to generate mid- to high-single-digit long-term revenue growth. Let's look at the numbers here on the right. Our 2022 estimates $730 million and $330 million for revenue and EBITDA. Let's take that revenue, grow it by that 6% to 8% organic CAGR that we talked about earlier. That's roughly a $1 billion business by 2026. On adjusted EBITDA, we'll take that $330 million, 2022 outlook, grow it by 8% to 10%. That's a roughly half a billion dollars of adjusted EBITDA by 2026. Again, getting close to a 50% margin business. I talked about strong, flexible balance sheet and a robust cash flow generation. 3.5 times is what we expect or better is what we expect our exit net leverage to be in 2022. We expect to keep it on average flat over term. From a free cash flow standpoint, $165 million generated in 2022. Again, that's about 50% of EBITDA. 50% of annual adjusted EBITDA on a go-forward basis for a cumulative net total, including releveraging of $1.7 billion of total allocatable funds over the next five years. Finally, clear and disciplined capital allocation priorities and multiple paths to double free cash flow by 2026. Whether we were to allocate the majority of those funds to M&A or to repurchases or anywhere in between, we're poised to double free cash flow per share by 2026. That's what I wanted to share with you today. Again, thank you so much for your participation. We're gonna take just a five-minute break to get set up for Q&A. Let's be back in our seats at 10:04 A.M. Thank you. [Music] All right. Thanks, everyone. We're gonna start with Q&A now. So if you have a question, please raise your hand. We've got mics that we can pass around, and I'm also gonna incorporate questions coming in from the virtual audience as well. So to start, I'm happy to start with some virtual questions or if anybody has questions in the room, we can start there. All right. We've got a shy group. I think Louie had one. Louie had one. Louie, not known for his shyness. We got a mic coming to Louie. We have a mic, Louie. It's right behind you. Great. Hi, this is Louie De Palma from William Blair. One of the key, you know, macro themes is the travel rebound, and that's partially being offset by a lot of investor concerns about a global recession and the impact that could have on travel rebound. I was wondering if the travel rebound were to slow down such that if rental car volumes were flattish in 2023 versus 2022, how much upside would there be from that cashless transition that you guys have been describing? I think Steve presented that slide about how, I think 64% of tolls in the United States are cashless. But if there were like flattish growth in terms of rental car volumes, you know, what would that cashless transition bring in terms of growth for your rental cars? Lot of math on the fly, Louie. Thematically, let me address it, which would be this. One is that you saw in Steve's. There was a pretty significant acceleration in conversion to cashless over a two or three-year period driven by the pandemic. There's been cashless capabilities for quite some time, and we've often said, and you've heard me say previously that, "Hey, we're kind of in this seventh inning, but the innings keep getting longer." It's very difficult to say how much more would be accelerated to offset a flattening of demand, meaning how many more cashless tolls would it have to take to do that? It's very hard to predict. What I would say, though, is while there's certainly some a lot of discussion about what's happening in the economy, what you are seeing, and airlines have said this publicly, there's still a pretty strong demand and they're seeing strong demand, and they're not reducing their guidance related to travel for the back part of the year. The vast majority of our tolling is related to travel on airplanes and in airplane regions. That gives us a lot of confidence as we think about the back half of the year, more so than necessarily the increase of the conversion to cashless. Sounds good. Thanks. Okay. I'm gonna take one. There's one in the back there. Okay. Hi, thanks for taking my question. Just on the FMC segment. Understanding you have a little less market share there, and there's some other larger players, like how would you say you differentiate yourself against like a Bestpass or, you know, other players in that segment? FMCs world is the fleet management companies. This is different than rental car, and we provide tolling violations and title registration service to those companies. They're like Element, Donlen, and others. The reality is, one, we've been in the business much longer than Bestpass has. They have principally focused on over-the-road trucking as their primary sort of go-to-market for tolling, and they've sort of wrapped all their services around that. What I would say is given the both, one, the length of service that we've served all those. We brought tolling to the FMCs market. It didn't come to us, and we competed. We actually innovated inside the market. In addition to the length of the relationships we have and our renewal rate, I would say that our position is significantly stronger than theirs. We have some behind-the-scenes things that make our offerings slightly different. Certainly, when you look at a total solution related to the other services we provide beyond tolling, including violation toll and registration, we feel like we have a much broader solution set as well. Okay. I'm gonna take one from the virtual audience. There's been a lot of focus on growth today through adjacent and emerging opportunities for growth. Can this be driven organically under the existing margin profile? If yes, is there an opportunity to accelerate spending in order to capture that growth and market share even faster? Two questions. Part A. Jump in whenever you want. A bsolutely. You're doing great. Part A, I mean, that was my big slide where I said, please pay attention to this slide, is that we believe we can produce the numbers and doubling free cash flow per share based upon operating our current business as is today, without necessarily part two of your question. That being said, we are a growth business and are making investments in two things. One, Mike's already talked about the framework and how we think about M&A. We are always maintaining a rich and robust pipeline of M&A opportunities. We didn't get into any detail on that. Given our reliance on that as a part of our strategy, that's something that you can expect that we will continue to do, and we make investments in that. Additionally, we have made concerted investments into product development and product engineering to both accelerate our capacity to work in our current solutions, as well as identify new and adjacent opportunities as well. Those are the two, what I'd call near-term, accelerators that we're doing with investment dollars today. That I think that's well said. I would bracket that with one numerical thing. If you caught on my 2026 bridge, I talked about $55 million worth of CapEx. Remember, CapEx for this company is customer cameras or other equipment that we do on the customer's behalf. The other piece is internal capitalized proprietary software. If you look at historically where that spend has been for the company, it's been in the $25 million to $30 million range. That's a significant ramp that we're expecting by 2026, which is the financial component to what David just said. Anything else? All right. Question from the virtual audience on T2 Systems. Again, lots of focus on growth, and you know, it appears there's a significant white space opportunity. What are the constraints or pinch points in terms of growing even faster, relative to what you've provided today? Well, I think one of the things that Adam talked about is one, we're still coming out of the pandemic, so there's a bit of a re-ramp of what I would call just sort of general commercial activity in the industry. What we're seeing is that our actual growth rate is. The growth that we had on the slide is actually the trailing. Obviously, over the period, this is we're growing at a much higher single digit right now in T2. Number two, in terms of some of the newer things, which I think might be the angle of the question is, curb monetization or curb management is something that's still in a pilot phase. It's kind pf new to the market, and it's something that's gonna continue to activate what I would say is over the next three to five years. Okay. Craig, I'm gonna provide one for you here. I'm gonna combine two questions. Sure. Can you detail the expected synergies and multiple paid for acquisitions in the capital deployment scenarios? I'm gonna combine that with another related question was the assumptions around stock repurchases in terms of the multiple paid. That's a great question, whoever asked that one. It's 11.5 for both, to make it real simple. When you can grab a copy of the presentation that's actually detailed on the bottom. We put a lot of thought into that. We wanted to make sure that we were level loading on either side of the analysis. 11.5x on the purchases, 11.5x on the repurchases. Craig, another one for you. I was just hoping you could kind of walk us through how you're thinking about the floating rate debt, particularly given the move in interest rates. How impactful can that be? Just kind of how you're thinking about it holistically. T hanks for that. I talked about the net debt was $1.15 billion. On a gross level, that's $1.25 billion. Let me break down that stack for you, for those who may not know. That's $350 million of fixed rate, $900 million of floating rate. That $900 million of floating rate has gone up considerably in the back half of the year. The numbers that I showed you today do price in the latest interest rate increase that we've seen. We've locked in our pricing for the next six months, so we will be paying the new interest rate. We also priced in an additional 50 basis points of increase. I don't know if that's contemporary or not, the news changes every day, as I'm sure you're well aware, for 2023. That's what's sitting in there. It is impactful. It's going to be about a $10 million increase in interest cost in the second half versus the first half. If you were to take that and look at it historically, whether you use the first half of 2022 or total 2021, it will be about a $20 million increase. We'll continue to monitor it. It is on the plate when we talk about capital allocation. It hasn't risen to the level, quite frankly, of M&A and repurchases in terms of our priorities right now, but it's something that we'll continue to keep you abreast of as we go through. Even with that, you increased the free cash flow guidance, right? Because you said it's still 50% of EBITDA, and then you raised the EBITDA guidance this morning. That is correct. The question, if folks didn't hear it. Thank you, Louie. Did we factor that in? It was framed as a statement, but the question is kind of, you know, did we factor that in in 2022 and out through 2026 when we said guidance of 50% free cash flow conversion? The answer is yes. We have taken in the current rate environment for the back half of 2022, which is fixed. We fixed that as a company about three weeks ago. Then an additional 50 basis points out into 2023 and go forward. Of course, if the interest rate environment moves significantly from there, we'll take another look at it. The answer to your question, Louie, is yes. Thanks. You bet. It looks like from the guidance that you updated today to the 2026 targets, there's about 400 basis points of EBITDA margin improvement assumed. Can you talk through kind of some of the levers that you expect to drive that? I'll do a few, David, and obviously if you w ant to tag on. One of them is going to be continued synergies captured from the Redflex acquisition. The other one is going to be in the T2 business as we continue to make the SaaS sales a larger part of the pie. That's a pretty clear path going forward. The SaaS part of that business, as you would imagine, is more profitable than the equipment side. That, and then finally, volume leverage on some of the legacy investments that we've put in GS and CS. When you add that up over four years, you get to about 400 basis points of increase by 2026. If I could follow up, t he assumption that you had in for the M&A. Do you think you can bring businesses in that are close to those types of margins? Yes, but difficult to do. We've always looked at buying businesses that were, you know, sort of margin-accretive a little bit dollar-accretive, and I think that's the way that we think about it. It would still be considered in all of the discipline that Mike laid out in terms of strategic fit and price discipline. Yeah, it's hard to find businesses like ours that are of size and scale that we would want to bring into the family at this point. When we looked at our two scenarios, scenario 1 and scenario 2 for the $1.7 billion of deployable capital, just as an assumption, I wouldn't read too much into this, but we use 25% margin on that, j ust to be clear. Okay, please. Hi, Jeffrey Goldstein from Morgan Stanley. I just had a quick question. I think there was a slide earlier about how the market in total was growing 10% across your greater TAM. Maybe you could just kind of compare and contrast, like, your growth being at that 6% to 8% number. You know, kind of what's in that number versus the overall TAM of 10%? Yeah, I think 'cause there's aspects of so that's the total. If you're looking, I believe, at urban mobility at the bottom and then connected fleet at the top, so that could be inverted. But either way, that's a portfolio of solutions and not every single thing. We don't do every single thing that's in that TAM. It's just the universe that we compete in today. There could be things that we might acquire later that would help increase our level of growth within those. Those are as is our core business as of today, not adding. Those are just as is businesses, not accelerating through new products or through M&A. Right. I think those CAGRs were over different time periods too, just m athematically, t o be fair. I think we have one up here. Stefanos Crist, CJS Securities. Just in your 2026 targets, what's the long-term growth rate for Europe and commercial services implied in there? We had that. Actually, Steve had that on one of his pages. You know, we wanted to call that out. Maybe we should have put it more front and center. It's about a $12 million business. I think Steve, exiting 2021, what we had, and about a 15% CAGR, to answer your question real succinctly. To be clear, just on Europe, because there's sometimes, that's all, everything we do in your tolling violations, t hat's the whole business. I'll take a similar question around Europe. Can you put a timeframe around our ability to validate the opportunity, right? Because this is the year of the pilot. Have we seen an urgency on the ranks to move forward with great speed? I think Steve mentioned we've already had some renewals of a couple of pilots that are moving forward. Yeah, it's a real opportunity. I mean, we put in there a target of 2026 is when we think we're gonna be cash flow on the tolling piece of it. We're also taking the opportunity to diversify into growing some of the other areas that Steve had mentioned in terms of other violation types and things that we can do. We do think it's an opportunity. We're working hard to help accelerate the conversion to cashless there and to be a part of that ecosystem. We're gonna be very patient 'cause we do believe in the opportunity. Okay. An operational question for you, David. How much of the government segment is manual processes? Do you have operational centers set up across the regions in the more nuanced cases? Really the component that is manual is if you go back to Jon's slide, kind of that's to the left where we're actually putting in the actual cameras. We have people or contractors that we work with to install, set up the actual technology. Most of the processing is done through technology, either at the roadside or in our software. Then we do have some centers that are helping support either, some of the processing doesn't require manual review, and we do some of that locally here in Mesa as well as some other places around the world. I said locally here in Mesa. This is not Mesa, just to be clear. This is New York. Hi, this is Louie. Can you talk about the opportunities associated with the new TollLink product that you announced, I think two days ago? TollLink. You wanna speak to that, Steve? Yes. You wanna give him the microphone just 'cause he may not be turned on. Thanks, Louie. We saw our customers, actually, our channel partners have come to us asking for us to provide a single transponder solution to allow vehicles to travel seamlessly across the US. I mentioned it in my presentation that, you know, the OTR segment is a segment that benefits from that, but also a lot of Class 1 to 5 vehicles also benefit from that. As more and more of our channel partners were looking for a full service provider in that space, we updated our back office IT systems to support that. We've done our validation and our testing, and now we're working with customers to go do pilots and proof of concepts and all that. It's gonna allow a single transponder to get the lowest tolling rate as vehicles travel across the country. Great. New segment for us. On the road, we often now see, like, Amazon e-commerce vehicles and other fleets. Is that the type of market that you could target with this TollLink to sell it to commercial fleets? I think you had a slide, you might've said there are 12 million, there's a TAM for the non-RAC fleet segment. Is that who you're targeting with TollLink product? Yeah. That's correct. That's who we're targeting and typically through fleet management companies who manage many of the customers you just communicated. The OTR segment, which was at the bottom, the 2.7 represents the biggest concentration. Even in the commercial fleet one to five vehicles, there's vehicles and customers who need those vehicles to travel across the nation, and they've been looking for a full service provider for a while. Okay. I think we have time for one or two more questions. I'm gonna take one from the virtual audience, and again, if you have any, please raise your hand. Craig, there are a couple questions. I'm gonna combine them. It basically sought to better understand the doubling of the free cash flow. Maybe, again, I'm trying to bridge two questions. Kind of help the audience understand what we've assumed from an organic basis, and then what we assumed from an M&A basis, and how that all rolls up into the, I think it was $2.05. Sure of free cash flow per share. Sure. Let me just do the top of the waves and I'll drill into that. $1.7 billion total allocatable capital. Scenario one assumed that we used 25% for M&A, 75% for repurchases, then we inverted that for scenario two. That had an 11.5 multiples on both the M&A. We'd be buying at 11.5, and we would be repurchasing as we calculate our equity on a go-forward basis at 11.5 multiple. The only difference between the two scenarios when you get down is a small difference in fully diluted share count. One thing maybe underlying that in our fully diluted share count, we've assumed conversion of all the warrants and all the earn outs and everything that's out there that's coming in at some point between 2022 and 2026. At those share counts with 50% free cash flow conversion, you get to $2.05 or better under either scenario. All right. Last one, Louie. Last one. Could you just discuss the M&A pipeline between the core adjacent and emerging end markets? We don't give a lot of detail on that, as you might imagine, just given. What I would say right now is most, if not all of the pipeline development activity is in the first two categories versus emerging, because again, we recognize that accelerating our strategy is in the here and now, and we wanna find assets that can help do that. Most of Mike and the people that we have scouting are looking for those types of opportunities. Okay. Well, thanks everyone. We're gonna have a reception to follow, so both inside this area as well as out on the terrace. The presentation slides will be posted at about five minutes, so 4:15 P.M. Eastern, and then a replay of the event will be available, give or take about two hours from now. Thank you very much. We really appreciate your support. We thank you for coming out and attending virtually. It's been a great event. Yeah. Thank you all very much. We really appreciate it. Thank you.