Q4 2020 Verra Mobility Corp Earnings Call
Yeah.
Greetings and welcome to Verra mobility fourth quarter, 'twenty and 'twenty earnings call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation and fed.
And once you require operator assistance during the conference. Please press Star Zero and your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Mark Griffin and Investor Relations. Thank you you may begin.
Thank you good afternoon, and welcome to Verra mobility is fourth quarter and year end 'twenty and 'twenty earnings call.
And they will be discussing the results announced in our press release issued after the market close with me on the call. This afternoon is David Roberts Verra mobility as Chief Executive Officer interested Cheeto Chief Financial Officer. They will begin with prepared remarks, and then we'll open up the call for Q&A.
During the call we will make statements related to our business that may be considered forward looking including statements concerning our plans to execute on our growth strategy, our ability to maintain existing and acquire new customers and other statements regarding our plans and prospects forward looking statements may often be identified with words expect we anticipate or upcoming.
These statements reflect our views only as of today and should not be considered our views as of any subsequent date.
We undertake no obligation to update or revise these forward looking statements 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.
For a discussion of material risks and other important factors that could affect our actual results. Please refer to those contained in our annual form on form 10-K, which is available on the Investor Relations website of our website at IR Dot verra mobility dotcom and on the SEC's website at SEC Doc off.
Finally during the course of today's call, we will refer to certain non-GAAP financial measures a reconciliation of GAAP to non-GAAP measures included in our press release issued after the market close today, which is located again on our website at IR Dot verra mobility Dot com and the SEC's website at SEC Gov with that let me turn the call over to David.
Mhm.
Yeah.
Thank you Mark and thank you to everyone joining us on the call today as you were all aware of the global pandemic remains persistent but we are beginning to see a broad decline and its effect on the economy and with the vaccination process beginning we feel confident that its effect on our business will subside throughout 2021 well.
While we have experienced difficulties associated with this global of them. We are quite optimistic about the future that lies ahead.
We are pleased with our execution throughout this challenging year and we ended 2020 on a high net with a solid quarter. Our fourth quarter performance showed a continued improvement and our commercial services segment and demonstrated robust strength and our government solutions segment and Moreover.
Moreover, our EBITDA margin levels. During 2020 hadn't remained very strong and we generated strong free cash flow, despite and accounts receivable issue, which we will discuss in more detail later.
Our fourth quart excuse me, our fourth quarter revenue declined 11% year over year to $100 $2 million and our adjusted EBITDA came in at $45 $8 million down 23% year over year.
For 'twenty and 'twenty revenue declined 12% year over year to $393 $6 million and our adjusted EBITDA came in at $181 8 million down 25 per cent year over year.
Now I'll move on to our segment results.
Our commercial services segment reported revenues of $48 2 million and adjusted EBITDA of $25 2 million for Q4 2020, we continue to see month over month revenue increases throughout the quarter. As a reminder, the largest portion of revenue and the commercial services segment is highly correlated to rental car volume and while we are.
We're optimistic and the trend line, we are seeing we still anticipate ongoing pressure to this business segment until late 2021, a view that is widely shared by many companies and travel related industries that said traction with their fleet management and customers remains strong.
As challenge that the U S rental car market is we are preparing for a recovery and continuing to work on optimizing our customer's offerings and our partners to continue to value the strength of our platform highlighted by an extension and we signed with six during the quarter and regards to enterprise. We are continuing our efforts to extend the relationship beyond the current contract.
Yeah.
And the fleet management side, and we renewed a number of contracts, including one with the largest U S retail banking change and another with the with the Canadian subsidiary of a large fleet management customer.
The U S. The European rental car market has been severely impacted by COVID-19. The result of this had been slower decision, making and a lack of resources for our partners to help accelerate the implementation of our tolling solutions. We are continuing to have active dialogues with many large rental car companies throughout Europe and Additionally, we are we continue to be happy with the progress.
Rent a car and France is banking and look forward to providing more detail as the program matures.
As a reminder, the origins of our European business started with the acquisition of EPC and we continue to service customers with that product.
During the quarter, we signed a multiyear agreement with the Danish transport authorities to process violations of foreign registered vehicles.
Before I move on to the government solutions segment I want to welcome Steve Lala to the Verra mobility team as our executive Vice President of commercial services, we believe that steves proven leadership and abilities and deep technology experience make him the perfect person to take our commercial services segment to the next level.
Our government solutions segment reported revenues of $52 million and adjusted EBITDA of $20 6 million for Q4 2020, both solid improvements year over year growth and the government solutions segment continues to be driven primarily by the expansion of the school zone speed program and New York City. We are pleased to report that we.
Fill the order we received for 720 cameras with the installation of the final 127 cameras.
I wanted to take a moment to discuss the issue of our outstanding receivables related to New York City contracts.
During 2020, we worked with New York City Department of transportation to address various administrative issues that we understood at the time were holding up payments on the two contracts we have with them. One contract is a 2014 legacy contract for Red Light bus Lane mobile speed and fixed feed photo enforcement cameras and the second is the 20 <unk>.
Emergency contract for the purchase and installation maintenance and operation of and expanded speed camera program that began in 2020.
And late 2019, we concluded that some of our system installations under the legacy contract did not meet and New York City requirements related to the death of the buried electro electrical conduit and color and grounding wire and we disclose those issues to the department of transportation, we agreed to remediate those sites, which are substantially completed.
These installation issues did not have any impact on the camera operations or the overall effectiveness of the photo enforcement programs, but they may have contributed to the delays we are experiencing and receiving payment.
As noted in our 10-K, we learned in January of this year that the Sydney and New York is investigating matters related to the company's past and installation practices, including the condo and depth issue that is work that is being remediated and we're fully cooperating with the investigation and believe that it will be resolved.
Furthermore, while the timing remains unclear and we expect to be paid on on the outstanding accounts receivable and the interim we will continue to perform work for the New York City Department of transportation under those contracts.
Tricia will discuss in more detail its effects on our balance sheet and cash flow.
We maintained our consistently high renewal rates and Q4 and during the quarter, we renew contracts with key customers and Orlando and San Antonio and addition to renewals earlier. This month, we announced a partnership with three additional counties and the state of New York to deploy crossing guard our automated stop arm photo enforcement solution for school buses. We are pleased to have con.
Tractor with a total of six counties in New York and many individual school districts have sign on with the potential to cover approximately 6500 school buses.
Over the years, we have voice and mergers and acquisitions would be and important and strategic part of our growth strategy and we were excited about the pending transaction with Red Flex holdings to.
The combination of verra mobility, and <unk> flex will enable global delivery of leading road safety products and services and.
Will result in increased resources scale enhanced technology capabilities and expanded global reach and we're very excited to bring that team of this caliber into the organization. Additionally, red flags with technology and global capabilities will complement our services and provide us with some important new geographic markets, we anticipate the transaction to.
Close in late May of this year.
In summary, the foundation for a thoughtfully constructed and accurate forecast is still challenging and therefore, we will refrain from offering guidance and the near term, but we can offer some qualitative thoughts on our business going forward. We continue to anticipate a slow recovery and our commercial services segment and expect a return to 2019 service revenue levels by late 'twenty one.
And possibly early 'twenty two.
The primary cause of this is the reduction and air travel and related rental car volume decreases both a personal and for business purposes.
And as these industries return to pre Covid levels, we should see a correlated increase and our tolling revenue and.
Additionally, the school environment remains challenged but we are seeing more schools physically open as vaccines and COVID-19 protocols allow for more in person learning, but until then and we anticipate that ongoing revenue impact associated with our school bus programs and variable rate schools on speed and.
We continue to believe our balanced product portfolio provides stability in these uncertain times and for growth and the future with that let me hand, it over to Tricia to walk through the financials in more detail.
Thanks, David and good afternoon, everyone I will provide a more detailed overview of our full year and fourth quarter 2020 financial performance and then we'll open up the call for questions.
And we've provided a short earnings deck on our website that provides some insight to the quarter and reconciliations from our GAAP to non-GAAP result, if you're following along and the earnings deck I'm on slide two where you can see total company full year results for 2020.
Total revenue for the full year at nine mm $393 $6 million declined $55 million share 12, 3% from $448 $7 million and 2019 within that change and revenue was 84 million dollar decline and service revenue.
Resulting from lower demand of our tolling products due to reduced rental car demand lower citation rates and variable photo enforcement programs and the loss of certain Texas customers. The revenue loss was offset by a year over year increase and product sales of $25 $3 million with the sales and installation of 720.
Schools on speed cameras, and 2020 compared to 300 and the prior year.
And we will discuss both of these revenue streams further and our segment detail portion of the call.
Adjusted EBITDA of 101, $8 million declined $59 5 million or $24 seven per cent from $241 $4 million and 2019, gross and product sales and well executed cost control measures offset declines in service revenue and helped maintain a robust adjusted EBIT.
Margin of 46, 2%, we are proud that we had and the structure and discipline to maintain best in class margins, even in the worst of times and.
In early March when the reality is COVID-19, and started to think and we said that there and mobility would be free cash flow positive in 2020 and once again, we've done what we said we were going to do generating $22 6 million and free cash flow and.
And now we know we did we expected this number to be much higher earlier and the year and we didn't anticipate and 91 million dollar accounts receivable headwind, David had discussed and New York earlier, and lets call, but I wanted to outline the impact on our financial position and.
New York Department of Transportation represents $31 one per cent of 2020 total revenue driven in large part to the increased product sales without standing and receivables approximately $99 million. They represent nearly 59% of our outstanding accounts receivable balance at year end because this air balance is past due.
And it's not eligible for inclusion and our borrowing base and that's limiting their available borrowing on our $75 million dollar with Oliver to $48 $8 million at year, and New York has always been a great partner and we expect to clear the accounts receivable balance and upcoming quarters.
With that said, let's do a deeper dive into our reporting units if you're following along on the earnings deck and on slide three which outlines revenue and adjusted EBITDA performance for our commercial services segment. As you recall commercial services segment serves large rental car and fleet management companies, providing tolling violation processing.
Name and title and registration services, given its close ties to travel demand and driving patterns and this segment had a very challenging year for full year service revenue declined $95 $6 million from $276 $5 million, and 2000 $19 million to $189 million and 2020.
The decline was due to a significant impact on rental car demand due to the impact of Covid and the travel industry and to a lesser extent the usage of lot large fleets and we.
And we took decisive actions early in 2020, and reducing Opex and SG&A expenses by nearly $15 million and reporting adjusted EBITDA of $97 $2 million for the full year 'twenty and 'twenty, despite strong headwinds and revenue our adjusted EBITDA margins for the for this year remains robust at 54 per cent.
For the quarter service revenue declined 29% $48 $2 million and the fourth quarter of 2020 from $68 $2 million from the same quarter and the prior year. Although we are still experiencing the impact of Covid and the underlying industries, we serve and we've seen three quarters of success sequential revenue improvement.
Q4 revenue growing $21 million or 77% over the second quarter trough adjusted EBITDA for the quarter of $25 $2 million and adjusted EBITDA margins were $52 four per cent.
Turning to the next slide you can see the results of the government solutions business segment. This segment operates photo enforcement programs from municipalities and school districts with an end to end solution government solutions grew full year revenue by $45 million to $212 $7 million for the full.
And your 'twenty and 'twenty total revenue is comprised of service revenue. That's the monthly fee that we generate from the operation of photo enforcement programs and product revenue, which results from the selling and installation of camera systems.
Service revenue for the full year was 155 $4 million and increase of $15 $2 million or 11% from $142 million for the full year of 2019. This.
This gross with it what's the net effect of reduction and revenue due to the loss of certain clients and Texas and the reduction in variable rate programs due to COVID-19 offset by the growth in schools on speed programs, resulting from the New York expansion.
Product revenue for the full year 2020 was $57 $3 million up from $32 million for the full year 2019. This increase was driven by a large order from New York City to install schools on speed cameras for the fourth quarter total revenue for the segment was $52 million up from 44 point.
$3 million and the fourth quarter of 2019.
Service revenue for the fourth quarter was $42 $8 million and grew 17% year over year from $36 $7 million and the fourth quarter of 2019. The service revenue growth is driven by our expansion of schools on speed program, which increased $7 $7 million over the same quarter and the prior year gross was offset by the impact of it.
COVID-19, which was halted virtually all revenue from our school from our school bus stop arm programs and reduced volumes for our variable clients and schools returned to in person learning revenues will return to this program product revenue of $9 $2 million for the quarter increased one $6 million or 20% from $7 $6 million.
And the same period of the prior year, and we installed 102007 cameras and the fourth quarter adjusted EBITDA of $26 million increased $3 2 million or $18 one per cent from $17 $4 million from the same period of the prior year and adjusted EBIT margins for this business remains steady at 40%.
We're very proud of the performance of the government solutions business. During these very difficult times.
And if it turned to the next slide you can see the combined results of the business segments that we just discussed.
The company reported a net loss of $1 $4 million for the quarter compared to $9 $2 million of income and the same quarter of the prior year tax expense for the quarter was $2 million, representing an effective tax rate of over 5000 per cent and.
For the full year 2020, the tax rate was over 400 per cent and taking a pretax net income of $2 million to a net loss of $3. Four now book income is low and therefore, the impact of several large permanent differences such as TRA expense disallowed executive compensation and lobbying expenses drive and unusually high effective tax rate.
I want to spend some time discussing our liquidity position the company generated $2 $6 million of.
Our cash flow.
From operating activities during the quarter and $46 $9 million for the full year. This compares to a $133 $8 million from the same period and the prior year. The change resulted from a reduction in net income and was further impacted by the accounts receivable, which increased $91 million during the year. The increase is directly related to the issues.
First with New York City earlier free cash flow defined as cash flow provided by operating activities less capex was $22 $6 million and the full year and our cash balance at the year and was $123 million as of December 31st we had total debt of $865 $6 million net of cash on hand, and our debt was 700.
And and $45 $4 million, which is four one times trailing 12 month EBITDA of 181 $8 million or first lien doesn't mature until 2025, and we had $48 $8 million available on the revolver.
As we look to the future. We are encouraged by the progress the COVID-19 vaccine and are optimistic that the country returns to some form of normal however, uncertainty surrounding COVID-19 continued impact on travel and school reopening and makes it difficult to provide guidance for the full year and how.
However, we've said that for the last couple of quarters that without the specific installation and order from New York that you should think about product revenue for 2021, similar to 2018 and the range of $3 million to $5 million. We also believe that 2021 will return to previous seasonal trends and Q1 service revenues should be slightly below Q4.
As we move beyond the first quarter, we should return to year over year growth as we crossover the trough with the revenue declines at the beginning of the pandemic. In summary, we are pleased with our performance throughout 2020, and if you needed to describe it and a single word it would be resilient, we entered the pandemic with a strong customer relationships and a <unk>.
<unk> balance sheet, we remained free cash flow positive show discipline and cost cutting and produce best in class margins. We continue to believe that there are mobility remains well positioned for the long term and has an operating discipline to manage through the current volatility and our business and capture growth as demand returns to the underlying industries, we serve and with that alone.
On the call up for questions.
Thank you and as he would like to ask a question. Please press star one on your telephone keypad and confirmation tone will indicate your line is and the question queue. You May press star two if he would like to remove a question from Q and.
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Our first question is from Justin and foresee with credit Suisse. Please proceed.
Hey, guys How's it going great to talk to you again.
Alright, great and I wanted to dig in and how are you I just wanted to dig in a little bit to the red flags opportunity.
And again.
We know that they have a variety of programs that are different to the ones that you have you know you have some similar ones similarities being red light for instance, and.
New ones being you know railroad crossing works on speed et cetera can you talk a little bit about you know what the loose hanging fruits might be there as far as cross sell goes meaning you know what would you expect to see the impacts of work zone first or perhaps some of your existing solutions into maybe their clients.
Yeah, I think it's more think of the opportunity more geographic based and necessarily product base and so what I mean by that and different countries outside the U S. They use different types of technology solution. So as an example, and Australia. They use our product, which is called point to point speed, which is two fixed cameras and <unk>.
A different locations and it kind of tracks how fast you go between the two points.
That's a solution that they offer there and Australia that we don't offer here and so effectively there's opportunities for us with our kind of scale and capabilities being a larger company with a larger balance sheet to sort of think about how can we take some of those things globally and accelerated outside the U S and two as we look inside the U S certainly theres going to be.
Plenty of opportunities for synergy and they have to their credit they have.
They are in some product areas that we had not been and historically and so we would anticipate some of those being up.
Relatively prioritize but what I would say is that the international opportunity is probably in terms of diversification and growth is probably the higher level of focus at least initially and then clearly we'll continue to look for synergy opportunities across both sides of the equation.
Got it and no that's super helpful and I guess in terms of from whenever the deal closes, let's say in late May and is it.
They're a relative timeline you can give as to when you think you might be able to achieve some of these and or kind of the loose hanging fruits as you mentioned the international expansion and stuff.
When you might expect to achieve that by.
Tricia is looking at me funny, So I was gonna say six weeks, but and that means the same.
We're not going to see yes, we're not going to say six weeks no. I mean look I think look it's a really it's a complex global organization, it's going to take some time for us to figure out we've obviously given the competitive nature have been doing this.
Be a clean team sort of an arm's length process generally so I would anticipate we will get a lot of opportunity and the first year.
And certainly as we look at diversification and revenue growth that may take a little bit longer.
And I think that the first 12 months would probably be a real where we're going to focus a lot of energy in terms of synergize and costs and identifying the key areas, where our products can accelerate one another as well as the right talent and the right place and I think the technology and will take longer. So I don't I don't think you'll see the full synergy impact and probably until.
And sort of that 24 month cycle, because the technology it will take a little longer.
Got it and no Super helpful and I guess, one more if I might real quick.
We heard or saw I guess.
A T. This report recently.
And it seemed as if you know.
They had also cited kind of improving trends, but despite you know there may be some tough comps coming up obviously and in Jan and share.
Coupled with some incremental Lockdowns I mean, if you could just if you wouldn't mind parsing through a little bit Ah the exit rate exiting Q4, as you mentioned I think it was a kind of continual improvement and the commercial segment business.
And kind of how that's fair going into early Q1, and thanks, So much guys and I'll drop off.
Yeah, and so I think I think what youre going to see is kind of what I said and and my my forward looking statement that Q1, the first quarter of 'twenty 'twenty, one we actually think from and just a raw dollar service revenue will be just didn't but on par or slightly below Q4 that sort of a normal seasonal trend pattern that.
You might see and as we move forward and then we will move and to this year over year growth as we move into Q2, because by that time, we'll be we'll be crossing over at the trough of the pandemic cycle. So you'll start to see gross at that time, and and then beyond that timeframe, it's really difficult for us to see what those numbers are as we get.
Those are to those numbers as we as we do that Q1 earnings call, we'll probably be able to give a little bit further out into the view of where we're going to be but I think we've said that we didn't think we'd returned to 2019 levels for the commercial services segment and.
Until the end of 2021.
Great. Thanks, so much.
Thank you.
Our next question is from.
Ashish <unk> with Deutsche Bank. Please proceed.
Sure Hi, this is Michael as you're calling it for Ashish.
Just had a quick question on the AR and the.
New York City contract is there any potential for.
The contract two weeks.
And it before you're paid for the outstanding receivables.
Or they're like.
Two different things.
Yeah.
I wouldn't expect so I mean the contract currently goes through February of next year, and I think our our.
And our optimistic views, we're gonna tightened and these are sort of outstanding issues over the next couple of months and so I don't think that would be their next step and the process.
And then.
The follow on to that or maybe.
A different way to think about it are there opportunities and other states and cities that are of similar scale that you could pursue after the New York and <unk>.
New York City.
And no.
There are there are purple speckled unicorn from that perspective, they're very their commitment to us.
And.
Photo enforcement and as the <unk>.
Part of their vision zero is candidly, it's really unparalleled across the globe.
They are given and they just have a scale of a commitment that is much higher.
So no they would be certainly and outlier related to when you look at full deployment now as you look outside the U S and certainly one of the reasons that we're very excited about the Red Flex acquisition is that there is the potential for like minded cities outside the U S and have resources that have a higher level of commitment to using.
Photo enforcement and other road safety technology, but.
Even then they would still not be nearly the size and scale and New York City.
Got it thank you.
Our next question is from David Koning with Baird. Please proceed.
Hey, guys nice job.
And yeah, Yeah, and so I was wondering throughout the year you gave the monthly trends and so the revenue trends by segment you had those for a for the last three months of the year.
Yeah, so for the for the last three banks and the commercial services segment and they.
They were sort of more flat and we do know that the quarter has continued to trend. So we we had consecutive improvement from from Q2 to Q3, and Q4 and all improved from an overall growth perspective, but we didnt, we Didnt report the individual the individual months.
Okay Gotcha.
And one thing just to understand that the the way the business works a little better excuse me. The in the 10-K you talked about total transactions were about 171 million. So that was down something like 30 per cent or maybe a little more traffic violations and commercial were down almost 50%. So I'm just wondering what.
What was different about COVID-19 in terms of how it impacted the total transactions compared to traffic violations and is there anything we should even care about.
No I mean, those and those are just volume because what you're not seeing is the dollar value of those total transactions the margins on those total transactions I I don't know that that's necessarily helpful. What we've what we've said is that and.
What we've seen and the pandemic timeframe, especially as it relates to our rental car customers is that we're seeing that the the number of tools that they're using per rental agreement is the dollar value of the tolls are up but the number of rental agreements and aggregate are way down.
And you know so although that sort of gives you directionally correct information on it it takes a little bit to extrapolate that to a revenue number.
Gotcha, Okay now that's great well, thanks, guys good job.
And thank you. Thank you.
Our next question is from Daniel Moore with CJS Securities. Please proceed.
Yes, good afternoon, David Trish, Thanks for taking the questions.
Hi, Dan.
Wanted to just start.
And as we recover and commercial services Trish has just how should we think about incremental EBITDA margins over the next day 12, plus months any deviation good or bad from the sort of longer term algo.
Yeah, I think that I think what youre going to see as we crossed over into Q1 is you're probably going to see some margin compression from where we were in Q4 and then there's a couple of reasons for that even though service revenue is going to be sort of I call. It flattish to where it was in Q4 your product revenue is not going to be there because we.
And we don't have and order in hand to do product installation and then we've reinstated a lot of things that didn't come into fruition and 2020, So think about that that our accruals for bonuses are merit increases all of those things are going to be back into our financial statements and 2021. So you should you should think about a little margin compress.
And as we roll into Q1, and probably into Q2, and you know and and then obviously as we get into those Timeframes I can give you some more detail our vision into what the back half of the year might look like as we get closer.
Okay, and and one more I appreciate all the color very much on this topic and sorry to beat a dead horse AR accounts receivable balance you mentioned clearing and coming quarters fair to assume based on that statement and we haven't.
<unk> done so significantly to date and Q1, just any commentary and color around the timing and expectations I know, it's a tough question, but I appreciate it.
Yeah no. It is it is difficult to predict but what this is what I think is going to happen and we're continuing to perform work for New York and you know and we will continue to do so so we would expect that that receivable balance would continue to grow.
Probably well into Q2, so and and then and then we'll see if they can do it so the likelihood that it's going to get cleared up and the next 30 days is unlikely. So we know that it'll it'll at least extend into Q2.
Okay. That's helpful. I appreciate the color.
Mhm yeah.
As a reminder, this star one on your telephone keypad. If you would like to ask a question. Our next question is from Keith <unk> with Northcoast Research. Please proceed.
Good afternoon, guys and thanks for the opportunity just to add one more point of clarification on New York, If I'm married and you guys are not precluded from winning any future contract until this summer right you can still youre doing business as usual and you can still compete nothing is getting less correct correct. Okay, Yes, that's exactly right.
And then in terms of the tour and business. It sounds like it's holding up a lot better than I think allow us, perhaps spirit and six months ago. So it sounds like your penetration rate of adoption rate within the rental car companies has improved significantly over the past year is that a good assessment.
And no not necessarily what really has happened is we've seen it's not that the overall adoption rate, which is based on the total number of rental agreements and then have our product and it versus the total number of rental agreements and aggregate I don't know that that's changed significantly and but what has changed is the number of billable days.
Improved.
Based on those number of rental agreements. So we're getting we're getting a little more admin fee and we're getting a little more tolling and because.
Because theres more totals and higher value tolls on each of those rental agreements, but it's not necessarily and adoption issue.
What we are trying and then also as that adoption has moved.
Away from airport locations to offer airports and its also step function down so whereas people may have been.
Renting from a call it a higher quality brands, they're stepping down into more budget brands and.
And over time that may just be because of the shift of travelers' leisure versus corporate.
No. That's helpful. I appreciate it if it is a squeeze one more and here at.
Last year, if we go back to a pre COVID-19.
Verra mobility was talking about the need and update along with systems. You know throughout 2020 and of course Covid happened and so that was part of the back burner and.
How should we think about that this year is it still and a back burner until you run it for my questions. Don are you guys moving forward with some of those initiatives.
No. We are definitely moving forward, we're doing and probably a little bit more serially, meaning we sort of stretch them out over a longer period of time.
Actually did some of them last year.
And just to make sure that we weren't leaving anything aside so we prioritize what we would consider the most critical items related to performance and within our systems and have knocked a few of those out and we will continue to do that this year.
Great I appreciate it thank you.
Yeah. Thanks.
This does conclude today's conference you may disconnect your lines at this time and thank you for your participation.
Thank you. Thank you.