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NV5 Announces Record Full Year 2022 Results and Issues Full Year 2023 Guidance
来源: Nasdaq GlobeNewswire / 23 2月 2023 16:01:00 America/New_York
HOLLYWOOD, Fla., Feb. 23, 2023 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, and consulting solutions, today reported financial results for the full year ended December 31, 2022.
"We are pleased to have delivered another strong year for revenues and earnings in 2022, despite significant headwinds in the commercial economy due to historic interest rate increases. All three of our reporting segments grew in 2022, with a record performance by the geospatial business. We also completed five strategic acquisitions in 2022, strengthening our utility geospatial, building technology, and materials testing offerings. We anticipate a successful year in 2023. We enter 2023 with a strong backlog to drive organic growth and profitability, and we anticipate the best year for mergers and acquisitions in our history," said Dickerson Wright, PE, Chairman and CEO of NV5.
Full Year 2022 Financial Highlights
- Gross revenues in 2022 were $786.8 million compared to $706.7 million in 2021, an 11% increase.
- Net income in 2022 was $50.0 million compared to $47.1 million in 2021, a 6% increase.
- Adjusted EBITDA in 2022 was $135.2 million compared to $132.9 million in 2021, a 2% increase.
- GAAP EPS in 2022 was $3.27 per share compared to $3.22 per share in 2021, a 2% increase.
- Adjusted EPS in 2022 was $5.19 per share compared to $5.11 per share in 2021, a 2% increase. Diluted weighted average shares outstanding were 15,260,186 in 2022 compared to 14,656,381 in 2021.
- Cash flows from operating activities in 2022 were $94.0 million compared to $101.4 million in 2021. Cash flows from operations in 2022 included an income tax payment of $9.4 million as a result of new tax provisions that require capitalization and amortization of research and development costs.
Fiscal Year 2023 Guidance
- Gross revenues between $878 million and $915 million.
- GAAP EPS between $2.93 per share and $3.33 per share.
- Adjusted EPS between $5.28 and $5.69 per share.
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 2022 financial results at 4:30 p.m. (Eastern Time) on February 23, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
Date: Thursday, February 23, 2023 Time: 4:30 p.m. Eastern Toll-free dial-in number: +1 888-412-4117 International dial-in number: +1 646-960-0284 Conference ID: 6172299 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: NVEE) is a provider of technology, conformity assessment, and consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: testing, inspection & consulting, infrastructure engineering, utility services, buildings & program management, 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.comSource: NV5 Global, Inc.
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)December 31, 2022 January 1, 2022 Assets Current assets: Cash and cash equivalents $ 38,541 $ 47,980 Billed receivables, net 145,637 153,814 Unbilled receivables, net 92,862 89,734 Prepaid expenses and other current assets 13,636 12,442 Total current assets 290,676 303,970 Property and equipment, net 41,640 32,729 Right-of-use lease assets, net 39,314 44,260 Intangible assets, net 160,431 188,224 Goodwill 400,957 389,916 Other assets 2,705 2,844 Total Assets $ 935,723 $ 961,943 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 57,771 $ 55,954 Accrued liabilities 44,313 50,461 Billings in excess of costs and estimated earnings on uncompleted contracts 31,183 29,444 Other current liabilities 1,597 1,551 Current portion of contingent consideration 10,854 5,807 Current portion of notes payable and other obligations 15,176 20,734 Total current liabilities 160,894 163,951 Contingent consideration, less current portion 4,481 2,521 Other long-term liabilities 29,542 34,304 Notes payable and other obligations, less current portion 39,673 111,062 Deferred income tax liabilities, net 6,893 25,385 Total liabilities 241,483 337,223 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; 45,000,000 shares authorized, 15,523,300 and 15,414,005 shares issued and outstanding as of December 31, 2022 and January 1, 2022, respectively 155 154 Additional paid-in capital 471,300 451,754 Retained earnings 222,785 172,812 Total stockholders’ equity 694,240 624,720 Total liabilities and stockholders’ equity $ 935,723 $ 961,943 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 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Gross revenues $ 189,818 $ 188,555 $ 786,778 $ 706,706 Direct costs: Salaries and wages 44,830 43,417 186,806 175,047 Sub-consultant services 37,084 35,995 153,641 124,998 Other direct costs 14,931 11,633 60,357 47,347 Total direct costs 96,845 91,045 400,804 347,392 Gross profit 92,973 97,510 385,974 359,314 Operating expenses: Salaries and wages, payroll taxes, and benefits 46,769 45,077 193,488 176,838 General and administrative 18,501 16,095 66,114 53,986 Facilities and facilities related 5,431 4,863 21,252 20,193 Depreciation and amortization 9,565 10,189 38,938 39,953 Total operating expenses 80,266 76,224 319,792 290,970 Income from operations 12,707 21,286 66,182 68,344 Interest expense (1,005 ) (878 ) (3,808 ) (6,239 ) Income before income tax expense 11,702 20,408 62,374 62,105 Income tax expense (3,702 ) (4,953 ) (12,401 ) (14,958 ) Net income and comprehensive income $ 8,000 $ 15,455 $ 49,973 $ 47,147 Earnings per share: Basic $ 0.54 $ 1.05 $ 3.39 $ 3.34 Diluted $ 0.52 $ 1.02 $ 3.27 $ 3.22 Weighted average common shares outstanding: Basic 14,816,773 14,651,218 14,753,738 14,135,333 Diluted 15,320,123 15,159,314 15,260,186 14,656,381 NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)Twelve Months Ended December 31, 2022 January 1, 2022 Cash flows from operating activities: Net income $ 49,973 $ 47,147 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44,063 44,971 Non-cash lease expense 12,813 10,191 Provision for doubtful accounts (60 ) 1,243 Stock-based compensation 19,326 16,301 Change in fair value of contingent consideration 2,972 2,333 Gain on disposals of property and equipment (328 ) (1,102 ) Deferred income taxes (18,492 ) (7,007 ) Amortization of debt issuance costs 724 1,210 Changes in operating assets and liabilities, net of impact of acquisitions: Billed receivables 10,212 2,677 Unbilled receivables (3,303 ) (12,573 ) Prepaid expenses and other assets (1,125 ) (4,792 ) Accounts payable (1,673 ) 8,181 Accrued liabilities and other long-term liabilities (19,901 ) (12,507 ) Contingent consideration (800 ) — Billings in excess of costs and estimated earnings on uncompleted contracts (296 ) 4,005 Other current liabilities (125 ) 1,164 Net cash provided by operating activities 93,980 101,442 Cash flows from investing activities: Cash paid for acquisitions (net of cash received from acquisitions) (5,908 ) (67,995 ) Proceeds from sale of assets 87 1,639 Purchase of property and equipment (15,689 ) (13,903 ) Net cash used in investing activities (21,510 ) (80,259 ) Cash flows from financing activities: Borrowings from Senior Credit Facility — 138,750 Proceeds from common stock offering — 172,500 Payments of borrowings from Senior Credit Facility (65,000 ) (323,832 ) Payments on notes payable (15,445 ) (12,516 ) Payments of contingent consideration (1,464 ) (1,329 ) Payments of common stock offering costs — (10,657 ) Payments of debt issuance costs — (976 ) Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation — (52 ) Net cash used in financing activities (81,909 ) (38,112 ) Net decrease in cash and cash equivalents (9,439 ) (16,929 ) Cash and cash equivalents – beginning of period 47,980 64,909 Cash and cash equivalents – end of period $ 38,541 $ 47,980 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 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Net Income $ 8,000 $ 15,455 $ 49,973 $ 47,147 Add: Interest expense 1,005 878 3,808 6,239 Income tax expense 3,702 4,953 12,401 14,958 Depreciation and amortization 10,972 11,574 44,063 44,971 Stock-based compensation 4,077 4,214 19,326 16,301 Acquisition-related costs* 4,720 2,667 5,612 3,274 Adjusted EBITDA $ 32,476 $ 39,741 $ 135,183 $ 132,890 * Acquisition-related costs include contingent consideration fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
Three Months Ended Twelve Months Ended December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Net Income - per diluted share $ 0.52 $ 1.02 $ 3.27 $ 3.22 Per diluted share adjustments: Add: Amortization expense of intangible assets 0.52 0.56 2.12 2.29 Acquisition-related costs* 0.30 0.18 0.36 0.22 Income tax expense (0.13 ) (0.15 ) (0.56 ) (0.62 ) Adjusted EPS $ 1.21 $ 1.61 $ 5.19 $ 5.11 * Acquisition-related costs include contingent consideration fair value adjustments.
