• NV5 Announces Record Third Quarter Results; Exceeds Analyst Consensus

    ソース: Nasdaq GlobeNewswire / 03 11 2022 16:01:01   America/New_York

    HOLLYWOOD, Fla., Nov. 03, 2022 (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 third quarter ended October 1, 2022.

    "NV5’s growth in both revenues and profitability in the third quarter resulted in another record quarter and once again demonstrates the success of the NV5 business model. Utilities continue to be a driver of NV5’s business, and our geospatial vertical delivered its strongest quarter ever in revenue and new contract bookings. NV5 has consistently delivered growth and profitability exceeding the industry average and has demonstrated resilience to changing economic conditions. We enter the fourth quarter with a strong backlog, a healthy acquisition pipeline, and potential high-margin, non-discretionary service offerings," said Dickerson Wright, PE, Chairman and CEO of NV5.

    Third Quarter 2022 Results

    • Gross revenues in the third quarter of 2022 were $204.1 million compared to $185.6 million in the third quarter of 2021, a 10% increase.
    • Net income in the third quarter of 2022 was $16.1 million compared to $12.6 million in the third quarter of 2021, a 28% increase.
    • Adjusted EBITDA in the third quarter of 2022 was $36.0 million compared to $34.7 million in the third quarter of 2021, a 4% increase.
    • GAAP EPS in the third quarter of 2022 was $1.05 per share compared to $0.83 per share in the third quarter of 2021, a 27% increase.
    • Adjusted EPS in the third quarter of 2022 was $1.50 per share compared to $1.25 per share in the third quarter of 2021, a 20% increase. Diluted weighted average shares were 15,301,545 in the third quarter of 2022 compared to 15,069,660 in the third quarter of 2021.
    • Cash flows provided by operations were $26.1 million in the third quarter of 2022 compared to $15.8 million in the third quarter of 2021, a 65% increase.
    • Reduced net debt leverage to 0.28x, a 33% decrease when compared to the second quarter of 2022.

    Nine Months Ended October 1, 2022 Results

    • Gross revenues for the nine months ended October 1, 2022 were $597.0 million compared to $518.2 million in the nine months ended October 2, 2021, a 15% increase.
    • Net income for the nine months ended October 1, 2022 was $42.0 million compared to $31.7 million in the nine months ended October 2, 2021, a 32% increase.
    • Adjusted EBITDA for the nine months ended October 1, 2022 was $102.7 million compared to $93.1 million in the nine months ended October 2, 2021, a 10% increase.
    • GAAP EPS for the nine months ended October 1, 2022 was $2.75 per share compared to $2.19 per share in the nine months ended October 2, 2021, a 26% increase.
    • Adjusted EPS for the nine months ended October 1, 2022 was $3.99 per share compared to $3.50 per share in the nine months ended October 2, 2021, a 14% increase. Diluted weighted average shares were 15,242,453 for the nine months ended October 1, 2022, compared to 14,486,683 in the nine months ended October 2, 2021.
    • Cash flows provided by operations for the nine months ended October 1, 2022 were $80.4 million compared to $78.1 million in the nine months ended October 2, 2021.
    • Organic growth for the nine months ended October 1, 2022 was 7%.

    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 third quarter 2022 financial results at 4:30 p.m. (Eastern Time) on November 3, 2022. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:
    		Thursday, November 3, 2022
    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.com

    Source: NV5 Global, Inc.


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED) 
    (in thousands, except share data)

     October 1, 2022 January 1, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$        54,171  $        47,980 
    Billed receivables, net         141,308           153,814 
    Unbilled receivables, net         98,081           89,734 
    Prepaid expenses and other current assets         20,896           12,442 
    Total current assets         314,456           303,970 
    Property and equipment, net         41,042           32,729 
    Right-of-use lease assets, net         38,008           44,260 
    Intangible assets, net         167,592           188,224 
    Goodwill         398,614           389,916 
    Other assets         2,427           2,844 
    Total Assets$        962,139  $        961,943 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$        48,722  $        55,954 
    Accrued liabilities         58,481           50,461 
    Billings in excess of costs and estimated earnings on uncompleted contracts         27,886           29,444 
    Other current liabilities         1,421           1,551 
    Current portion of contingent consideration         9,224           5,807 
    Current portion of notes payable and other obligations         18,140           20,734 
    Total current liabilities         163,874           163,951 
    Contingent consideration, less current portion         2,813           2,521 
    Other long-term liabilities         28,760           34,304 
    Notes payable and other obligations, less current portion         63,238           111,062 
    Deferred income tax liabilities, net         21,097           25,385 
    Total liabilities         279,782           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, $0.01 par value; 45,000,000 shares authorized, 15,559,921 and 15,414,005 shares issued and outstanding as of October 1, 2022 and January 1, 2022, respectively         156           154 
    Additional paid-in capital         467,416           451,754 
    Retained earnings         214,785           172,812 
    Total stockholders’ equity         682,357           624,720 
    Total liabilities and stockholders’ equity$        962,139  $        961,943 


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

     Three Months Ended Nine Months Ended
     October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021
    Gross revenues$        204,075  $        185,553  $        596,960  $        518,151 
            
    Direct costs:       
    Salaries and wages         48,295           45,145           141,976           131,630 
    Sub-consultant services         41,253           35,779           116,557           89,003 
    Other direct costs         14,592           12,802           45,426           35,714 
    Total direct costs         104,140           93,726           303,959           256,347 
            
    Gross profit         99,935           91,827           293,001           261,804 
            
    Operating expenses:       
    Salaries and wages, payroll taxes and benefits         49,670           44,597           146,719           131,761 
    General and administrative         16,730           12,978           47,611           37,891 
    Facilities and facilities related         5,441           5,194           15,822           15,330 
    Depreciation and amortization         9,771           10,108           29,373           29,764 
    Total operating expenses         81,612           72,877           239,525           214,746 
            
    Income from operations         18,323           18,950           53,476           47,058 
            
    Interest expense         (1,003)          (1,475)          (2,804)          (5,362)
            
    Income before income tax expense         17,320           17,475           50,672           41,696 
    Income tax expense         (1,257)          (4,902)          (8,699)          (10,005)
    Net income and comprehensive income$        16,063  $        12,573  $        41,973  $        31,691 
            
    Earnings per share:       
    Basic$        1.09  $        0.86  $        2.85  $        2.27 
    Diluted$        1.05  $        0.83  $        2.75  $        2.19 
            
    Weighted average common shares outstanding:       
    Basic         14,768,689           14,593,623           14,732,726           13,963,372 
    Diluted         15,301,545           15,069,660           15,242,453           14,486,683 


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

     Nine Months Ended
     October 1, 2022 October 2, 2021
    Cash flows from operating activities:   
    Net income$        41,973  $        31,691 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization         33,091           33,397 
    Non-cash lease expense         9,409           7,941 
    Provision for doubtful accounts         1,252           1,077 
    Stock-based compensation         15,249           12,087 
    Change in fair value of contingent consideration         (543)          (67)
    Gain on disposals of property and equipment         (100)          (1,059)
    Deferred income taxes         (4,288)          (4,318)
    Amortization of debt issuance costs         556           1,024 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables         13,281           16,728 
    Unbilled receivables         (8,633)          (10,024)
    Prepaid expenses and other assets         (8,105)          (4,160)
    Accounts payable         (7,937)          1,366 
    Accrued liabilities         (1,608)          403 
    Billings in excess of costs and estimated earnings on uncompleted contracts         (2,902)          (8,233)
    Other current liabilities         (304)          218 
    Net cash provided by operating activities         80,391           78,071 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions)         (5,020)          (23,569)
    Proceeds from sale of assets         87           843 
    Purchase of property and equipment         (14,874)          (6,714)
    Net cash used in investing activities         (19,807)          (29,440)
        
    Cash flows from financing activities:   
    Proceeds from common stock offering         —           172,500 
    Borrowings from Senior Credit Facility         —           138,750 
    Payments on notes payable         (7,796)          (7,299)
    Payments of contingent consideration         (1,597)          (663)
    Payments of borrowings from Senior Credit Facility         (45,000)          (283,832)
    Payments of common stock offering costs         —           (10,657)
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation         —           (52)
    Payments of debt issuance costs         —           (890)
    Net cash (used in) provided by financing activities         (54,393)          7,857 
        
    Net increase in cash and cash equivalents         6,191           56,488 
    Cash and cash equivalents – beginning of period         47,980           64,909 
    Cash and cash equivalents – end of period$        54,171  $        121,397 


    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 Nine Months Ended
      October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021
    Net Income$        16,063  $        12,573  $        41,973  $        31,691 
    Add:Interest expense         1,003           1,475           2,804           5,362 
     Income tax expense         1,257           4,902           8,699           10,005 
     Depreciation and amortization         11,033           11,461           33,091           33,397 
     Stock-based compensation         5,634           4,297           15,249           12,087 
     Acquisition-related costs*         1,043           (23)          892           607 
    Adjusted EBITDA$        36,033  $        34,685  $        102,708  $        93,149 

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

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Nine Months Ended
      October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021
    Net Income - per diluted share$        1.05  $        0.83  $        2.75  $        2.19 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs         0.59           0.57           1.66           1.77 
     Income tax expense         (0.14)          (0.15)          (0.42)          (0.46)
    Adjusted EPS$        1.50  $        1.25  $        3.99  $        3.50 

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