Verra Mobility Plans Share Buyback Up To $100M - Verra Mobility (NASDAQ:VRRM)

Verra Mobility Corp's (NASDAQ:VRRM) board approved a stock repurchase program of up to $100 million of its Class A common stock over the next eighteen months in open market transactions.
The provider of smart mobility technology solutions also shared its intention to reduce its leverage to a target net debt ratio of 3.0x to adjusted EBITDA by the end of 2023.
Verra Mobility also plans to mitigate the risk of increased cash interest payments through several options, including paying down debt and exploring interest rate risk management alternatives.
CEO David Roberts said, "Our announcement today of a new $100 million share repurchase program, alongside our intent to reduce net leverage to 3.0x during these unique interest rate environments, highlights our balanced capital allocation approach focused on the tremendous cash flow capacity of our business."
Verra Mobility held $51.6 million in cash and equivalents as of September end and generated $52.4 million in operating cash flow in the quarter.
Verra Mobility held $1.2 billion in long-term debt.
Price Action: VRRM shares traded higher by 3.78% at $15.65 on the last check Monday.

To add Benzinga News as your preferred source on Google, click here.