Verra Mobility reported to Nasdaq investors on Monday that it lost $58 million in 2018. Last year, a private equity firm created Verra Mobility by merging Highway Toll Administration with red light camera operator American Traffic Solutions, but the costs of the combination have yet to pay off with the new entity facing total liabilities of $1 billion.
“To service our indebtedness, we will require a significant amount of cash,” Verra Mobility noted in its annual report.
The toll collection side of the business pulled in $223 million in revenue for what would have been $121 million in profit in 2018. A substantial portion of this revenue came from collection of the controversial PlatePass fees from motorists who rent cars from Hertz, Avis and Enterprise. The company also issued 2.2 million photo tickets to motorists accused of not paying a toll.
The red light camera and photo radar side of the enterprise brought in $148 million in revenue and what would have been $56 million in profit. The firm boasted of 200 cities in 17 states running Verra Mobility ticketing cameras, which generated 8.5 million tickets last year. The firm claimed the leading position in the industry with 55 percent of the market in speed cameras, 46 percent in red light cameras and 48 percent of school bus cameras.