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Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation.
Use of Estimates

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. There have been no material changes in the Company's significant accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024.

Management believes that its estimates and assumptions are reasonable in the circumstances; however, actual results could differ materially from those estimates.

Concentration of Credit Risk

Concentration of Credit Risk

Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable, net.

Revenue from a single Government Solutions customer exceeded 10% of total revenue. The City of New York Department of Transportation (“NYCDOT”) represented 15.4% and 16.6% of total revenue for the three months ended March 31, 2025 and 2024, respectively. NYCDOT represented 16.7% and 17.2% of total accounts receivable, net as of March 31, 2025 and December 31, 2024, respectively. There is no material reserve related to NYCDOT open receivables as amounts are deemed collectible based on current conditions and expectations. No other Government Solutions customer exceeded 10% of total accounts receivable, net.

Significant customer revenues were generated through three of the Company’s Commercial Services customers, with each exceeding 10% of total revenue. Commercial Services Customer A represented 15.7% and 13.1% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Commercial Services Customer B represented 11.9% and 11.5% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Commercial Services Customer C represented 10.3% and 11.8% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Commercial Services Customer A was 10.3% of total accounts receivable, net as of March 31, 2025. No Commercial Services customer exceeded 10% of total accounts receivable, net as of December 31, 2024.

There were no significant customer concentrations that exceeded 10% of total revenue or accounts receivable, net for the Parking Solutions segment as of or for any period presented.
Allowance for Credit Losses

Allowance for Credit Losses

The Company reviews historical credit losses and customer payment trends on receivables and develops loss estimates as of the balance sheet date, which includes adjustments for current and future expectations. It identifies pools of receivables based on the type of business, industry in which the customer operates and historical credit loss patterns. The Company uses collection assumptions (typically at the customer level) to estimate expected credit losses. Receivables are written off against the allowance for credit losses when it is probable that amounts will not be collected based on the terms of the customer contracts, and subsequent recoveries reverse the previous write-off and apply to the receivable in the period recovered. No interest or late fees are charged on delinquent accounts. The Company periodically evaluates the adequacy of its allowance for expected credit losses and adjusts appropriately.

The following presents the activity in the allowance for credit losses by reportable segment for the three months ended March 31, 2025 and 2024, respectively:

 

 

 

Commercial

 

 

Government

 

 

Parking

 

 

 

 

($ in thousands)

 

Services(1)

 

 

Solutions

 

 

Solutions

 

 

Total

 

Balance at January 1, 2025

 

$

16,038

 

 

$

332

 

 

$

648

 

 

$

17,018

 

Credit loss expense

 

 

6,815

 

 

 

75

 

 

 

1,225

 

 

 

8,115

 

Write-offs, net of recoveries

 

 

(6,179

)

 

 

(25

)

 

 

(219

)

 

 

(6,423

)

Balance at March 31, 2025

 

$

16,674

 

 

$

382

 

 

$

1,654

 

 

$

18,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

Government

 

 

Parking

 

 

 

 

($ in thousands)

 

Services(1)

 

 

Solutions

 

 

Solutions

 

 

Total

 

Balance at January 1, 2024

 

$

15,661

 

 

$

2,426

 

 

$

426

 

 

$

18,513

 

Credit loss expense (income)

 

 

5,222

 

 

 

106

 

 

 

(81

)

 

 

5,247

 

Write-offs, net of recoveries

 

 

(3,174

)

 

 

(2

)

 

 

(9

)

 

 

(3,185

)

Balance at March 31, 2024

 

$

17,709

 

 

$

2,530

 

 

$

336

 

 

$

20,575

 

 

 

(1)
This primarily consists of receivables from drivers of rental cars for which the Company bills on behalf of its customers. Receivables not collected from drivers within a defined number of days are transferred to customers subject to applicable bad debt sharing agreements. The allowance for credit losses for driver-billed receivables was 82% and 91% of the total Commercial Services allowance for credit losses as of March 31, 2025 and 2024, respectively.
Remaining Performance Obligations

Remaining Performance Obligations

Deferred revenue represents amounts that have been invoiced in advance and are expected to be recognized as revenue in future periods, and it primarily relates to Government Solutions and Parking Solutions customers. As of March 31, 2025 and December 31, 2024, the Company had approximately $12.1 million and $11.8 million of deferred revenue in the Government Solutions segment, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized $4.3 million and $3.0 million, respectively, of revenue excluding exchange rate impact, related to amounts that were included in deferred revenue as of December 31, 2024 and 2023. As of March 31, 2025 and December 31, 2024 the Company had approximately $18.1 million and $21.7 million of deferred revenue in the Parking Solutions segment, respectively. During the three months ended March 31, 2025 and 2024, the Company recognized $10.0 million and $8.6 million, respectively, of revenue related to amounts that were included in deferred revenue as of December 31, 2024 and 2023.

Remaining performance obligations represent the amount of contracted future revenue not yet recognized as the amounts relate to undelivered performance obligations, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company elected the practical expedients to omit disclosure for the amount of the transaction price allocated to remaining performance obligations with original expected contract length of one year or less and the amount that relates to variable consideration allocated to a wholly unsatisfied performance obligation to transfer a distinct good or service within a series of distinct goods or services that form a single performance obligation. As of March 31, 2025, total transaction price allocated to performance obligations in the Government Solutions segment that were unsatisfied or partially unsatisfied was $184.6 million, of which $71.7 million is expected to be recognized as revenue in the next twelve months and the rest over the remaining performance obligation period.
Interest Rate Swap

Interest Rate Swap

In December 2022, the Company entered into a cancellable interest rate swap agreement to hedge its exposure to interest rate fluctuations associated with the LIBOR (now transitioned to Term Secured Overnight Financing Rate, “SOFR”) portion of the variable interest rate on its 2021 Term Loan (as defined below). Under the interest rate swap agreement, the Company paid a fixed rate of 5.17% and the counterparty paid a variable interest rate. The Company entered into an International Swaps and Derivatives Association, Inc. Master Agreement with the counterparty which provided for the net settlement of all, or a specified group, of derivative transactions through a single payment. The notional amount on the interest rate swap was $675.0 million. The Company had the option to effectively terminate the interest rate swap agreement starting in December 2023, and monthly thereafter until December 2025. The Company treated the interest rate swap as an economic hedge for accounting purposes and any changes in the fair value of the derivative instrument (including accrued interest) and related cash receipts or payments were recorded in the condensed consolidated statements of operations within the gain on interest rate swap line item. The Company exercised its option to cancel the interest rate swap agreement during the third quarter of fiscal year 2024. The following details the components of the gain on interest rate swap:

 

 

 

Three Months Ended March 31,

 

($ in thousands)

 

2024

 

Change in fair value

 

$

(102

)

Cash receipts

 

 

(294

)

Total gain on interest rate swap

 

$

(396

)

 

The effect of remeasurement to fair value was recorded within the operating activities section and the monthly cash proceeds received were recorded within the investing activities section in the condensed consolidated statements of cash flows. See Note 7, Fair Value of Financial Instruments, for further discussion on the fair value measurement of the interest rate swap.
Recent Accounting Pronouncements

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires companies to disclose specific categories in the rate reconciliation, provide additional disclosure for reconciling items that exceed proscribed thresholds, and enhance disclosure regarding income taxes paid and sources of income (loss) from continuing operations including the tax expense (or benefit) disaggregated by federal, state and foreign taxes. The guidance is effective for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The ASU requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period at a disaggregated level. The guidance is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its financial statements and disclosures.