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Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

14. Segment Reporting

The Company has three operating and reportable segments, Commercial Services, Government Solutions and Parking Solutions. Commercial Services offers toll and violation management solutions and title and registration services to RACs, Direct Fleets, FMCs and violation-issuing authorities. Government Solutions implements and administers traffic safety programs and products for municipalities and government agencies of all sizes. Parking Solutions provides an integrated suite of parking software and hardware solutions to its customers.

The operating and reportable segments were determined based on how the Company's Chief Operating Decision Maker (“CODM”) regularly reviews the operating results of the various components of the Company for which discrete financial information is available, including based on the nature of the products and services and the type of customer. The Company defines the CODM as its Chief Executive Officer. The Company's CODM primarily uses actual revenues and segment profit (defined below) as compared to previously budgeted amounts to evaluate the operating performance, allocate resources and deploy capital to the segments.

Segment performance is based on revenues and income from operations before depreciation, amortization, and stock-based compensation. The measure also excludes interest expense, net, income taxes and certain other transactions and is inclusive of other income, net. The tables below refer to this measure as segment profit. The aforementioned items are not indicative of operating performance, and, as a result are not included in the measures that are reviewed by the CODM for the segments. Other income, net included in segment profit below consists primarily of credit card rebates earned on the prepayment of tolling transactions and gains or losses on foreign currency transactions, and excludes certain non-operating expenses inapplicable to segments.

The Company adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures in the fourth quarter of fiscal year 2024, and as a result, updated the presentation of financial information by reportable segment. In addition, the CODM does not use discrete asset information to evaluate operating performance at the segment level, as such, the Company has not reported assets disaggregated by reportable segment.

The following tables set forth financial information by segment for the respective periods:

 

 

 

 

 

 

For the Three Months Ended March 31, 2025

 

 

 

Commercial

 

 

Government

 

 

Parking

 

 

 

 

($ in thousands)

 

Services

 

 

Solutions

 

 

Solutions

 

 

Total

 

Service revenue

 

$

101,389

 

 

$

93,982

 

 

$

16,531

 

 

$

211,902

 

Product sales

 

 

—

 

 

 

7,840

 

 

 

3,512

 

 

 

11,352

 

Total revenue

 

 

101,389

 

 

 

101,822

 

 

 

20,043

 

 

 

223,254

 

Cost of service revenue, excluding depreciation and amortization

 

 

600

 

 

 

688

 

 

 

3,495

 

 

 

4,783

 

Cost of product sales

 

 

—

 

 

 

5,263

 

 

 

2,769

 

 

 

8,032

 

Operating expenses

 

 

22,078

 

 

 

46,961

 

 

 

3,602

 

 

 

72,641

 

Selling, general and administrative expenses

 

 

19,582

 

 

 

19,303

 

 

 

7,258

 

 

 

46,143

 

Loss on disposal of assets, net

 

 

—

 

 

 

324

 

 

 

—

 

 

 

324

 

Other income, net

 

 

(3,968

)

 

 

(137

)

 

 

(4

)

 

 

(4,109

)

Segment profit

 

$

63,097

 

 

$

29,420

 

 

$

2,923

 

 

$

95,440

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

16,636

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

25

 

Other reconciling items (1)

 

 

 

 

 

 

 

 

 

 

 

33,946

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

44,833

 

 

(1) This consists of depreciation and amortization expense and stock-based compensation to reconcile to total income before income taxes.

 

 

 

 

 

 

For the Three Months Ended March 31, 2024

 

 

 

Commercial

 

 

Government

 

 

Parking

 

 

 

 

($ in thousands)

 

Services

 

 

Solutions

 

 

Solutions

 

 

Total

 

Service revenue

 

$

95,889

 

 

$

90,275

 

 

$

16,557

 

 

$

202,721

 

Product sales

 

 

—

 

 

 

3,912

 

 

 

3,097

 

 

 

7,009

 

Total revenue

 

 

95,889

 

 

 

94,187

 

 

 

19,654

 

 

 

209,730

 

Cost of service revenue, excluding depreciation and amortization

 

 

471

 

 

 

559

 

 

 

3,275

 

 

 

4,305

 

Cost of product sales

 

 

—

 

 

 

2,579

 

 

 

2,707

 

 

 

5,286

 

Operating expenses

 

 

21,479

 

 

 

43,602

 

 

 

4,493

 

 

 

69,574

 

Selling, general and administrative expenses

 

 

17,497

 

 

 

18,228

 

 

 

6,426

 

 

 

42,151

 

Loss on disposal of assets, net

 

 

—

 

 

 

87

 

 

 

2

 

 

 

89

 

Other income, net

 

 

(4,370

)

 

 

(50

)

 

 

(33

)

 

 

(4,453

)

Segment profit

 

$

60,812

 

 

$

29,182

 

 

$

2,784

 

 

$

92,778

 

Interest expense, net

 

 

 

 

 

 

 

 

 

 

 

19,635

 

Gain on interest rate swap

 

 

 

 

 

 

 

 

 

 

 

(396

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

595

 

Other reconciling items (1)

 

 

 

 

 

 

 

 

 

 

 

33,972

 

Income before income taxes

 

 

 

 

 

 

 

 

 

 

$

38,972

 

(1) This primarily consists of depreciation and amortization expense, stock-based compensation and other costs to reconcile to total income before income taxes.

The Company provides information on credit loss expense (income) by reportable segment, refer to Note 2, Significant Accounting Policies, for additional details.

The Company primarily operates within the United States, Australia, Canada, United Kingdom and in various other countries in Europe and Asia. The following table details the revenues from international operations for the respective periods:

 

 

 

Three Months Ended March 31,

 

($ in thousands)

 

2025

 

 

2024

 

Australia

 

$

16,448

 

 

$

12,477

 

Canada

 

 

8,158

 

 

 

8,064

 

United Kingdom

 

 

5,831

 

 

 

5,159

 

All other

 

 

1,010

 

 

 

667

 

Total international revenues

 

$

31,447

 

 

$

26,367