• NV5 Announces Second Quarter Results; Exceeds Analyst Consensus

    来源: Nasdaq GlobeNewswire / 09 8月 2023 16:01:00   America/New_York

    HOLLYWOOD, Fla., Aug. 09, 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 second quarter ended July 1, 2023.

    "We are pleased with our second quarter results. Our business continues to demonstrate resilience in difficult market conditions as it grew over the first quarter. Sustainable infrastructure, ESG service offerings, and technology solutions as supplied by NV5 are in increasing demand. The addition of Axim Geospatial and Visual Information Solutions Geospatial Software have strengthened our leadership position in geospatial data analytics and the acquisition of Red Technologies expands our capabilities in the growing Asia-Pacific data center market. Overall, we are well-positioned for organic growth and acquisition expansion,” said Dickerson Wright, PE, Chairman and CEO of NV5.

    Second Quarter 2023 Results

    • Gross revenues in the second quarter of 2023 were $222.6 million compared to $202.7 million in the second quarter of 2022, a 10% increase.
    • Gross profit in the second quarter of 2023 was $110.3 million compared to $99.2 million in the second quarter of 2022, an 11% increase.
    • Net income in the second quarter of 2023 was $15.4 million compared to $17.3 million in the second quarter of 2022. Net income was impacted by increases in amortization from acquisitions and interest expense, as well as lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
    • Adjusted EBITDA in the second quarter of 2023 was $35.0 million compared to $37.8 million in the second quarter of 2022. Adjusted EBITDA was impacted by lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
    • GAAP EPS in the second quarter of 2023 was $1.00 per share compared to $1.13 per share in the second quarter of 2022.
    • Adjusted EPS in the second quarter of 2023 was $1.29 per share compared to $1.49 per share in the second quarter of 2022.

    Six Months Ended July 1, 2023 Results

    • Gross revenues for the six months ended July 1, 2023 were $407.0 million compared to $392.9 million in the six months ended July 2, 2022, a 4% increase.
    • Gross profit for the six months ended July 1, 2023 were $206.3 million compared to $193.1 million in the six months ended July 2, 2022, a 7% increase.
    • Net income for the six months ended July 1, 2023 was $21.4 million compared to $25.9 million in the six months ended July 2, 2022. Net income was impacted by increases in amortization from acquisitions and interest expense, as well as lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
    • Adjusted EBITDA for the six months ended July 1, 2023 was $62.7 million compared to $66.7 million in the six months ended July 2, 2022. Adjusted EBITDA was impacted by lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
    • GAAP EPS for the six months ended July 1, 2023 was $1.39 per share compared to $1.70 per share in the six months ended July 2, 2022.
    • Adjusted EPS for the six months ended July 1, 2023 was $2.16 per share compared to $2.48 per share in the six months ended July 2, 2022.

    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, net of tax benefits, and acquisition-related costs. 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 second quarter 2023 financial results at 4:30 p.m. (Eastern Time) on August 9, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:
    Time:
    Toll-free dial-in number:
    International dial-in number:
    Conference ID:
    Webcast:
    		     Wednesday, August 9, 2023
    4:30 p.m. Eastern
    +1 888-412-4117
    +1 646-960-0284
    6172299
    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: 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)

     July 1, 2023 December 31, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$28,827  $38,541 
    Billed receivables, net 149,110   145,637 
    Unbilled receivables, net 107,192   92,862 
    Prepaid expenses and other current assets 20,501   13,636 
    Total current assets 305,630   290,676 
    Property and equipment, net 49,392   41,640 
    Right-of-use lease assets, net 38,628   39,314 
    Intangible assets, net 243,579   160,431 
    Goodwill 526,848   400,957 
    Other assets 3,751   2,705 
    Total Assets$1,167,828  $935,723 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$55,578  $57,771 
    Accrued liabilities 52,735   44,313 
    Billings in excess of costs and estimated earnings on uncompleted contracts 37,195   31,183 
    Other current liabilities 2,072   1,597 
    Current portion of contingent consideration 4,149   10,854 
    Current portion of notes payable and other obligations 14,800   15,176 
    Total current liabilities 166,529   160,894 
    Contingent consideration, less current portion 1,897   4,481 
    Other long-term liabilities 28,526   29,542 
    Notes payable and other obligations, less current portion 209,241   39,673 
    Deferred income tax liabilities, net 20,487   6,893 
    Total liabilities 426,680   241,483 
        
    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, 15,890,908 and 15,523,300 shares issued and outstanding as of July 1, 2023 and December 31, 2022, respectively 159   155 
    Additional paid-in capital 497,035   471,300 
    Accumulated other comprehensive income (loss) (191)  — 
    Retained earnings 244,145   222,785 
    Total stockholders’ equity 741,148   694,240 
    Total liabilities and stockholders’ equity$1,167,828  $935,723 
            

    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
    (UNAUDITED)
    (in thousands, except share data)

     Three Months Ended Six Months Ended
     July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
    Gross revenues$222,638  $202,732  $406,955  $392,885 
            
    Direct costs:       
    Salaries and wages 57,079   47,704   105,463   93,681 
    Sub-consultant services 39,690   40,479   67,304   75,305 
    Other direct costs 15,569   15,309   27,890   30,833 
    Total direct costs 112,338   103,492   200,657   199,819 
            
    Gross profit 110,300   99,240   206,298   193,066 
            
    Operating expenses:       
    Salaries and wages, payroll taxes, and benefits 58,949   47,283   111,621   97,049 
    General and administrative 11,551   14,494   29,472   30,881 
    Facilities and facilities related 5,823   5,195   11,197   10,381 
    Depreciation and amortization 13,539   9,668   24,585   19,602 
    Total operating expenses 89,862   76,640   176,875   157,913 
            
    Income from operations 20,438   22,600   29,423   35,153 
            
    Interest expense (3,648)  (887)  (5,229)  (1,801)
            
    Income before income tax expense 16,790   21,713   24,194   33,352 
    Income tax expense (1,377)  (4,445)  (2,834)  (7,442)
    Net income$15,413  $17,268  $21,360  $25,910 
            
    Earnings per share:       
    Basic$1.03  $1.17  $1.43  $1.76 
    Diluted$1.00  $1.13  $1.39  $1.70 
            
    Weighted average common shares outstanding:       
    Basic 15,014,106   14,736,167   14,948,796   14,714,745 
    Diluted 15,451,788   15,232,157   15,421,535   15,211,835 
            
    Comprehensive income:        
    Net income$15,413  $17,268  $21,360  $25,910 
    Foreign currency translation losses, net of tax (191)  —   (191)  — 
    Comprehensive income$15,222  $17,268  $21,169  $25,910 
                    

    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)

     Six Months Ended
     July 1, 2023 July 2, 2022
    Cash flows from operating activities:   
    Net income$21,360  $25,910 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 27,205   22,058 
    Non-cash lease expense 6,784   6,265 
    Provision for doubtful accounts 607   594 
    Stock-based compensation 10,728   9,615 
    Change in fair value of contingent consideration (7,514)  (518)
    Gain on disposals of property and equipment (408)  (61)
    Deferred income taxes (7,673)  (3,014)
    Amortization of debt issuance costs 365   370 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables 10,882   15,152 
    Unbilled receivables (9,842)  (3,801)
    Prepaid expenses and other assets (4,691)  (511)
    Accounts payable (8,164)  (4,349)
    Accrued liabilities and other long-term liabilities (5,698)  (6,309)
    Billings in excess of costs and estimated earnings on uncompleted contracts (7,606)  (6,867)
    Contingent consideration (1,307)  — 
    Other current liabilities 474   (276)
    Net cash provided by operating activities 25,502   54,258 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions) (186,242)  (4,670)
    Proceeds from sale of assets 295   48 
    Purchase of property and equipment (10,239)  (10,379)
    Net cash used in investing activities (196,186)  (15,001)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility 180,000   — 
    Payments on notes payable (5,131)  (6,218)
    Payments of contingent consideration (793)  (1,597)
    Payments of borrowings from Senior Credit Facility (13,000)  (35,000)
    Net cash provided by (used in) financing activities 161,076   (42,815)
        
    Effect of exchange rate changes on cash and cash equivalents (106)  — 
        
    Net decrease in cash and cash equivalents (9,714)  (3,558)
    Cash and cash equivalents – beginning of period 38,541   47,980 
    Cash and cash equivalents – end of period$28,827  $44,422 
            

    NV5 GLOBAL, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (UNAUDITED)
    (in thousands)

    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

      Three Months Ended Six Months Ended
      July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
    Net Income$15,413  $17,268  $21,360  $25,910 
    Add:Interest expense 3,648   887   5,229   1,801 
     Income tax expense 1,377   4,445   2,834   7,442 
     Depreciation and amortization 14,905   10,891   27,205   22,058 
     Stock-based compensation 4,902   4,826   10,728   9,615 
     Acquisition-related costs* (5,294)  (506)  (4,661)  (151)
    Adjusted EBITDA$34,951  $37,811  $62,695  $66,675 
                    

    * Acquisition-related costs include contingent consideration fair value adjustments.

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Six Months Ended
      July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022
    Net Income - per diluted share$1.00  $1.13  $1.39  $1.70 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs 0.49   0.50   1.13   1.06 
     Income tax expense (0.20)  (0.14)  (0.36)  (0.28)
    Adjusted EPS$1.29  $1.49  $2.16  $2.48 
                    

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