• NV5 Announces Fourth Quarter and Full Year 2024 Results; Issues Full Year 2025 Guidance

    来源: Nasdaq GlobeNewswire / 20 2月 2025 16:00:00   America/New_York

    HOLLYWOOD, Fla., Feb. 20, 2025 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, consulting solutions, and software applications, today reported financial results for the fourth quarter and full year ended December 28, 2024.

    "NV5 delivered a strong performance in 2024, with 10% growth in gross revenues and a 13% increase in gross profit over 2023, and strong organic growth and increased profitability in all three segments of NV5’s business. We enter 2025 with a robust backlog and tailwinds in our target sectors. NV5’s focus on mandated, non-discretionary testing, inspection, and certification (TIC) and engineering services mitigates impacts from economic cycles, and the results of our strategic organic growth initiatives in 2024 continue to drive our growth as we enter 2025. We completed acquisitions in 2024 to strengthen key recurring TIC service areas, including data center commissioning, fire protection consulting, building digitization, and water resources. Our pipeline of acquisition targets remains strong in 2025, and we anticipate further acquisitions to strengthen our platform," said Ben Heraud, CEO of NV5.

    Fourth Quarter 2024 Financial Highlights1

    Gross revenues in the fourth quarter of 2024 were $246.5 million compared to $214.9 million in the fourth quarter of 2023, a 15% increase, and our gross profit increased 13% to $122.2 million.

    Net income in the fourth quarter of 2024 was $5.4 million compared to $10.1 million in the fourth quarter of 2023. Net income includes increases of $3.9 million in acquisition-related costs, of which $2.4 million related to earn-out fair value adjustments, and increases of $2.3 million in intangible amortization expense as a result of recent acquisitions. Additionally, the fourth quarter of the previous year included a $5.2 million expense reduction associated with a flexible time off policy initiative. Our GAAP EPS in the fourth quarter of 2024 was $0.09 per share compared to $0.16 per share in the fourth quarter of 2023.

    Our Adjusted EBITDA in the fourth quarter of 2024 was $36.3 million compared to $36.7 million in the fourth quarter of 2023. Adjusted EBITDA Margin on gross revenues were consistent at 14.7% when further adjusted for the one-time benefit of changes to our flexible time off initiative in 2023. Our Adjusted EPS was $0.28 per share in both periods.

    Full Year 2024 Financial Highlights1

    Gross revenues in 2024 were $941.3 million compared to $857.2 million in 2023, a 10% increase, and our gross profit increased 13% to $483.2 million. This represents a gross margin expansion of 160 basis points to 51.3%.

    Net income in 2024 was $28.0 million compared to $43.7 million in 2023. Net income reflects an increase of $9.6 million in amortization expense as a result of recent acquisitions, an increase of $4.2 million in interest expense this year as a result of higher debt balances, and an increase of $11.2 million in acquisition-related costs primarily driven by $9.9 million in earn-out fair value adjustments. The previous year included a $5.2 million reduction in expense associated with a flexible time off policy initiative. Our GAAP EPS in 2024 was $0.44 per share compared to $0.71 per share in 2023. Our net leverage remains low at 1.4x.

    Our Adjusted EBITDA increased 7% to $143.5 million from $133.8 million. The previous year included the flexible time-off initiative expense reversal. Our Adjusted EPS in 2024 was $1.14 per share compared to $1.15 per share in 2023.

    Fiscal Year 2025 Guidance

    • Gross revenues between $1.026 billion and $1.045 billion.
    • GAAP EPS between $0.52 per share and $0.62 per share.
    • Adjusted EPS between $1.27 per share and $1.37 per share.

    _____________________________
    1 Prior periods presented in this press release have been adjusted as described in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2024.


    Stock Split

    On September 25, 2024, we announced a 4-for-1 forward split (the "Stock Split") of our common stock. Trading in the Common Stock commenced on a split-adjusted basis on October 11, 2024. All current and prior year data impacted by the Stock Split, including, but not limited to, number of shares and per share amounts, have been revised to reflect the effect of the Stock Split.

    Use of Non-GAAP Financial Measures; Comparability of Certain Measures

    Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) is not a measure of financial performance under GAAP. Adjusted EBITDA reflects adjustments to EBITDA to eliminate stock-based compensation expense and acquisition-related costs. Management believes adjusted EBITDA, in addition to operating profit, Net Income, and other GAAP measures, is a useful indicator of our financial and operating performance and our ability to generate cash flows from operations that are available for taxes, capital expenditures, and debt service. A reconciliation of Net Income, as reported in accordance with GAAP, to adjusted EBITDA is provided at the end of this news release.

    Adjusted earnings per diluted share (“Adjusted EPS”) is not a measure of financial performance under GAAP. Adjusted EPS reflects adjustments to reported diluted earnings per share (“GAAP EPS”) to eliminate amortization expense of intangible assets from acquisitions and acquisition-related costs, net of tax benefits. As we continue our acquisition strategy, the growth in Adjusted EPS may increase at a greater rate than GAAP EPS. A reconciliation of GAAP EPS to Adjusted EPS is provided at the end of this news release.

    Our definition of Adjusted EBITDA and Adjusted EPS may differ from other companies reporting similarly named measures. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as Net Income, and Diluted Earnings per Share. In addition, when presenting forward-looking non-GAAP metrics, we are unable to provide quantitative reconciliations to the most closely correlated GAAP measure due to the uncertainty in the timing, amount or nature of any adjustments, which could be material in any period.

    Conference Call 

    NV5 will host a conference call to discuss its full year 2024 financial results at 4:30 p.m. (Eastern Time) on February 20, 2025. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:
    		Thursday, February 20, 2025
    Time:
    		4:30 p.m. Eastern
    Toll-free dial-in number:
    		+1 800-715-9871
    International dial-in number:
    		+1 646-307-1963
    Conference ID:
    		2719957
    Webcast:
    		http://ir.nv5.com


    Please dial-in at least 5-10 minutes prior to the start time to allow the operator to log your name and connect you to the conference.

    The conference call will be webcast live and available for replay via the “Investors” section of the NV5 website.

    About NV5

    NV5 Global, Inc. (NASDAQ GS: NVEE) is a provider of technology, conformity assessment, consulting solutions, and software applications for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: construction quality assurance, infrastructure engineering, utility services, buildings & technology, environmental health sciences, and geospatial technology services to deliver innovative, sustainable solutions to complex issues and improve lives in our communities. NV5 operates out of more than 100 offices nationwide and internationally. For additional information, please visit the Company’s website at www.NV5.com. Also, visit the Company on LinkedIn, Twitter, Facebook, and Instagram.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release and on the conference call. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.

    Investor Relations Contact

    NV5 Global, Inc.
    Jack Cochran
    Vice President, Marketing & Investor Relations
    Tel: +1-954-637-8048
    Email: ir@nv5.com 

    Source: NV5 Global, Inc.

     
     
    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
    (in thousands, except share data)
     
     December 28, 2024 December 30, 2023
    Assets   
    Current assets:   
    Cash and cash equivalents$        50,361  $        44,824 
    Billed receivables, net         198,569           152,593 
    Unbilled receivables, net         141,926           111,304 
    Prepaid expenses and other current assets         20,155           18,376 
    Total current assets         411,011           327,097 
    Property and equipment, net         56,722           50,268 
    Right-of-use lease assets, net         32,099           36,836 
    Intangible assets, net         206,592           210,659 
    Goodwill         579,337           549,798 
    Deferred income tax assets, net         27,277           6,388 
    Other assets         2,318           3,149 
    Total Assets$        1,315,356  $        1,184,195 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$        81,937  $        54,397 
    Accrued liabilities         52,208           47,526 
    Billings in excess of costs and estimated earnings on uncompleted contracts         56,867           59,373 
    Other current liabilities         2,493           2,263 
    Current portion of contingent consideration         5,554           3,922 
    Current portion of notes payable and other obligations         11,195           9,267 
    Total current liabilities         210,254           176,748 
    Contingent consideration, less current portion         7,196           143 
    Other long-term liabilities         23,284           26,930 
    Notes payable and other obligations, less current portion         241,608           205,468 
    Total liabilities         482,342           409,289 
        
    Commitments and contingencies   
        
    Stockholders’ equity:   
    Preferred stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding         —           — 
    Common stock, $0.01 par value; 180,000,000 shares authorized, 65,115,824 and 63,581,020 shares issued and outstanding as of December 28, 2024 and December 30, 2023, respectively         651           636 
    Additional paid-in capital         538,568           507,779 
    Accumulated other comprehensive loss         (693)          (18)
    Retained earnings         294,488           266,509 
    Total stockholders’ equity         833,014           774,906 
    Total liabilities and stockholders’ equity$        1,315,356  $        1,184,195 


     
    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
    (UNAUDITED)
    (in thousands, except share data)
     
     Three Months Ended Twelve Months Ended
     December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023
    Gross revenues$        246,515  $        214,855  $        941,265  $        857,155 
            
    Direct costs:       
    Salaries and wages         58,336           53,291           236,756           215,608 
    Sub-consultant services         47,240           37,846           161,564           150,213 
    Other direct costs         18,748           15,732           59,712           65,088 
    Total direct costs         124,324           106,869           458,032           430,909 
            
    Gross profit         122,191           107,986           483,233           426,246 
            
    Operating expenses:       
    Salaries and wages, payroll taxes, and benefits         67,904           54,254           268,370           226,137 
    General and administrative         22,654           17,941           86,972           67,668 
    Facilities and facilities related         5,995           5,683           23,864           22,891 
    Depreciation and amortization         15,848           13,207           60,593           49,577 
    Total operating expenses         112,401           91,085           439,799           366,273 
            
    Income from operations         9,790           16,901           43,434           59,973 
            
    Interest expense         (3,837)          (3,859)          (17,181)          (12,970)
            
    Income before income tax (expense) benefit         5,953           13,042           26,253           47,003 
    Income tax (expense) benefit         (524)          (2,897)          1,726           (3,279)
    Net income$        5,429  $        10,145  $        27,979  $        43,724 
            
    Earnings per share:       
    Basic$        0.09  $        0.17  $        0.45  $        0.72 
    Diluted$        0.09  $        0.16  $        0.44  $        0.71 
            
    Weighted average common shares outstanding:       
    Basic         62,043,752           60,945,860           61,636,636           60,344,158 
    Diluted         63,195,665           62,198,616           62,879,073           61,897,301 
            
    Comprehensive income:       
    Net income$        5,429  $        10,145  $        27,979  $        43,724 
    Foreign currency translation (loss) gain, net of tax         (1,346)          593           (675)          (18)
    Comprehensive income$        4,083  $        10,738  $        27,304  $        43,706 


     
    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Twelve Months Ended
     December 28, 2024 December 30, 2023
    Cash flows from operating activities:   
    Net income$        27,979  $        43,724 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization         66,611           55,111 
    Non-cash lease expense         12,611           13,562 
    Provision for doubtful accounts         1,746           1,261 
    Stock-based compensation         25,981           22,379 
    Change in fair value of contingent consideration         594           (9,280)
    Gain on disposals of property and equipment         (940)          (694)
    Other         137           (125)
    Deferred income taxes         (21,264)          (26,130)
    Amortization of debt issuance costs         741           758 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables         (41,317)          7,584 
    Unbilled receivables         (26,911)          (15,556)
    Prepaid expenses and other assets         1,812           (2,292)
    Accounts payable         23,599           (8,938)
    Accrued liabilities and other long-term liabilities         (9,140)          (19,745)
    Contingent consideration         (1,466)          (1,307)
    Billings in excess of costs and estimated earnings on uncompleted contracts         (3,684)          1,231 
    Other current liabilities         231           664 
    Net cash provided by operating activities         57,320           62,207 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions)         (63,919)          (189,345)
    Proceeds from sale of assets         684           720 
    Purchase of property and equipment         (16,921)          (17,166)
    Net cash used in investing activities         (80,156)          (205,791)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility         69,000           188,000 
    Payments of borrowings from Senior Credit Facility         (32,000)          (26,000)
    Payments on notes payable         (6,708)          (11,071)
    Payments of contingent consideration         (1,724)          (993)
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation         —           (81)
    Net cash provided by financing activities         28,568           149,855 
        
    Effect of exchange rate changes on cash and cash equivalents         (195)          12 
        
    Net increase in cash and cash equivalents         5,537           6,283 
    Cash and cash equivalents – beginning of period         44,824           38,541 
    Cash and cash equivalents – end of period$        50,361  $        44,824 
     
     
     
    NV5 GLOBAL, INC. AND SUBSIDIARIES
    RECONCILIATION OF GAAP FINANCIAL MEASURES
    TO COMPARABLE NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)
    (in thousands, except share data)


    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

      Three Months Ended Twelve Months Ended
      December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023
    Net Income$        5,429  $        10,145  $        27,979  $        43,724 
    Add:Interest expense         3,837           3,859           17,181           12,970 
     Income tax expense (benefit)         524           2,897           (1,726)          3,279 
     Depreciation and amortization         17,322           14,669           66,611           55,111 
     Stock-based compensation         6,039           5,875           25,981           22,379 
     Acquisition-related costs*         3,143           (731)          7,458           (3,706)
    Adjusted EBITDA$        36,294  $        36,714  $        143,484  $        133,757 
     
    * Acquisition-related costs include contingent consideration fair value adjustments.


    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Twelve Months Ended
      December 28, 2024 December 30, 2023 December 28, 2024 December 30, 2023
    Net Income - per diluted share$        0.09  $        0.16  $        0.44  $        0.71 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs*         0.25           0.17           0.91           0.61 
     Income tax expense         (0.06)          (0.05)          (0.21)          (0.17)
    Adjusted EPS$        0.28  $        0.28  $        1.14  $        1.15 
     
    * Acquisition-related costs include contingent consideration fair value adjustments.

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