• NV5 Announces Fourth Quarter and Full Year 2023 Results; Issues Full Year 2024 Guidance

    ソース: Nasdaq GlobeNewswire / 22 2 2024 15:01:00   America/Chicago

    HOLLYWOOD, Fla., Feb. 22, 2024 (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 30, 2023.

    “NV5 delivered strong results in the fourth quarter and 14% growth over the same period in 2022, despite headwinds from continuing resolution federal project delays. Our growth initiatives in the core business are driving growth in infrastructure and transportation, and our buildings business continues to deliver strong organic growth both domestically and internationally. We completed seven acquisitions in 2023, including the expansion of our geospatial data analytics and software offerings to increase subscription-based revenues. These strategic actions taken in 2023 have positioned NV5 for accelerated organic growth in 2024, and we are well positioned to achieve our $1 billion revenue run rate by the end of the year,” said Dickerson Wright, PE, Chairman and CEO of NV5.

    Fourth Quarter 2023 Financial Highlights

    • Gross revenues in the fourth quarter of 2023 were $215.5 million compared to $189.8 million in the fourth quarter of 2022, a 14% increase, building strong organic growth momentum.
    • Net income in the fourth quarter of 2023 was $9.9 million compared to $8.0 million in the fourth quarter of 2022, a 24% increase.
    • Adjusted EBITDA in the fourth quarter of 2023 was $37.3 million compared to $32.5 million in the fourth quarter of 2022, a 15% increase.
    • GAAP EPS in the fourth quarter of 2023 was $0.64 per share compared to $0.52 per share in the fourth quarter of 2022, a 23% increase. Diluted weighted average shares outstanding were 15,549,654 in the fourth quarter of 2023 compared to 15,320,123 in the fourth quarter of 2022.
    • Adjusted EPS in the fourth quarter of 2023 was $1.14 per share compared to $1.21 per share in the fourth quarter of 2022, a 6% decrease. Diluted weighted average shares outstanding were 15,549,654 in the fourth quarter of 2023 compared to 15,320,123 in the fourth quarter of 2022.
    • Cash flows from operating activities in the fourth quarter of 2023 were $16,772 compared to $13,589 in the fourth quarter of 2022, a 23% increase.

    Full Year 2023 Financial Highlights

    • Gross revenues in 2023 were $861.7 million compared to $786.8 million in 2022, a 10% increase.
    • Net income in 2023 was $44.6 million compared to $50.0 million in 2022, an 11% decrease.
    • Interest expense increased $9.2 million due to higher interest rates and debt related to acquisitions. We have lowered our net leverage to 1.2x, a decrease of 14% when compared to the second quarter of 2023.
    • Adjusted EBITDA in 2023 was $137.9 million compared to $135.2 million in 2022, a 2% increase.
    • GAAP EPS in 2023 was $2.88 per share compared to $3.27 per share in 2022, a 12% decrease. Diluted weighted average shares outstanding were 15,474,326 in 2023 compared to 15,260,186 in 2022.
    • Adjusted EPS in 2023 was $4.81 per share compared to $5.19 per share in 2022, a 7% decrease. Diluted weighted average shares outstanding were 15,474,326 in 2023 compared to 15,260,186 in 2022.

    Fiscal Year 2024 Guidance

    • Gross revenues between $930 million and $935 million.
    • GAAP EPS between $2.86 per share and $2.92 per share.
    • Adjusted EPS between $5.00 and $5.06 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 2023 financial results at 4:30 p.m. (Eastern Time) on February 22, 2024. The accompanying presentation for the call is available by visiting http://ir.nv5.com. 

    Date:
    		Thursday, February 22, 2024
    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: 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 30, 2023 December 31, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$        44,824  $        38,541 
    Billed receivables, net         152,593           145,637 
    Unbilled receivables, net         113,271           92,862 
    Prepaid expenses and other current assets         18,376           13,636 
    Total current assets         329,064           290,676 
    Property and equipment, net         50,268           41,640 
    Right-of-use lease assets, net         36,836           39,314 
    Intangible assets, net         226,702           160,431 
    Goodwill         524,573           400,957 
    Other assets         3,149           2,705 
    Total Assets$        1,170,592  $        935,723 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$        54,865  $        57,771 
    Accrued liabilities         47,423           44,313 
    Billings in excess of costs and estimated earnings on uncompleted contracts         41,679           31,183 
    Other current liabilities         2,263           1,597 
    Current portion of contingent consideration         3,922           10,854 
    Current portion of notes payable and other obligations         9,267           15,176 
    Total current liabilities         159,419           160,894 
    Contingent consideration, less current portion         143           4,481 
    Other long-term liabilities         26,930           29,542 
    Notes payable and other obligations, less current portion         205,468           39,673 
    Deferred income tax liabilities, net         2,837           6,893 
    Total liabilities         394,797           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, $0.01 par value; 45,000,000 shares authorized, 15,895,255 and 15,523,300 shares issued and outstanding as of December 30, 2023 and December 31, 2022, respectively         159           155 
    Additional paid-in capital         508,256           471,300 
    Accumulated other comprehensive income (loss)         (18)          — 
    Retained earnings         267,398           222,785 
    Total stockholders’ equity         775,795           694,240 
    Total liabilities and stockholders’ equity$        1,170,592  $        935,723 


     
    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 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022
    Gross revenues$        215,497  $        189,818  $        861,739  $        786,778 
            
    Direct costs:       
    Salaries and wages         53,291           44,830           215,608           186,806 
    Sub-consultant services         37,854           37,084           150,681           153,641 
    Other direct costs         15,732           14,931           65,088           60,357 
    Total direct costs         106,877           96,845           431,377           400,804 
            
    Gross profit         108,620           92,973           430,362           385,974 
            
    Operating expenses:       
    Salaries and wages, payroll taxes, and benefits         54,254           46,769           226,137           193,488 
    General and administrative         17,941           18,501           67,668           66,114 
    Facilities and facilities related         5,683           5,431           22,891           21,252 
    Depreciation and amortization         14,060           9,565           52,486           38,938 
    Total operating expenses         91,938           80,266           369,182           319,792 
            
    Income from operations         16,682           12,707           61,180           66,182 
            
    Interest expense         (3,859)          (1,005)          (12,970)          (3,808)
            
    Income before income tax expense         12,823           11,702           48,210           62,374 
    Income tax expense         (2,888)          (3,702)          (3,597)          (12,401)
    Net income$        9,935  $        8,000  $        44,613  $        49,973 
            
    Earnings per share:       
    Basic$        0.65  $        0.54  $        2.96  $        3.39 
    Diluted$        0.64  $        0.52  $        2.88  $        3.27 
            
    Weighted average common shares outstanding:       
    Basic         15,236,465           14,816,773           15,086,040           14,753,738 
    Diluted         15,549,654           15,320,123           15,474,326           15,260,186 
            
    Comprehensive income:       
    Net income$        9,935  $        8,000  $        44,613  $        49,973 
    Foreign currency translation gain (loss), net of tax         593           —           (18)          — 
    Comprehensive income$        10,528  $        8,000  $        44,595  $        49,973 


     
    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Twelve Months Ended
     December 30, 2023 December 31, 2022
    Cash flows from operating activities:   
    Net income$        44,613  $        49,973 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization         58,020           44,063 
    Non-cash lease expense         13,562           12,813 
    Provision for doubtful accounts         1,261           (60)
    Stock-based compensation         22,379           19,326 
    Change in fair value of contingent consideration         (9,280)          2,972 
    Gain on disposals of property and equipment         (694)          (328)
    Other         (125)          — 
    Deferred income taxes         (25,709)          (18,492)
    Amortization of debt issuance costs         758           724 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables         7,584           10,212 
    Unbilled receivables         (15,666)          (3,303)
    Prepaid expenses and other assets         (2,292)          (1,125)
    Accounts payable         (8,470)          (1,673)
    Accrued liabilities and other long-term liabilities         (19,848)          (19,901)
    Contingent consideration         (1,307)          (800)
    Billings in excess of costs and estimated earnings on uncompleted contracts         (3,243)          (296)
    Other current liabilities         664           (125)
    Net cash provided by operating activities         62,207           93,980 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions)         (189,345)          (5,908)
    Proceeds from sale of assets         720           87 
    Purchase of property and equipment         (17,166)          (15,689)
    Net cash used in investing activities         (205,791)          (21,510)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility         188,000           — 
    Payments of borrowings from Senior Credit Facility         (26,000)          (65,000)
    Payments on notes payable         (11,071)          (15,445)
    Payments of contingent consideration         (993)          (1,464)
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation         (81)          — 
    Net cash provided by (used in) financing activities         149,855           (81,909)
        
    Effect of exchange rate changes on cash and cash equivalents         12           — 
        
    Net increase (decrease) in cash and cash equivalents         6,283           (9,439)
    Cash and cash equivalents – beginning of period         38,541           47,980 
    Cash and cash equivalents – end of period$        44,824  $        38,541 


     
    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 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022
    Net Income$        9,935  $        8,000  $        44,613  $        49,973 
    Add:Interest expense         3,859           1,005           12,970           3,808 
     Income tax expense         2,888           3,702           3,597           12,401 
     Depreciation and amortization         15,522           10,972           58,020           44,063 
     Stock-based compensation         5,875           4,077           22,379           19,326 
     Acquisition-related costs*         (731)          4,720           (3,706)          5,612 
    Adjusted EBITDA$        37,348  $        32,476  $        137,873  $        135,183 


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

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
     
      Three Months Ended Twelve Months Ended
      December 30, 2023 December 31, 2022 December 30, 2023 December 31, 2022
    Net Income - per diluted share$        0.64  $        0.52  $        2.88  $        3.27 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets         0.76           0.52           2.82           2.12 
     Acquisition-related costs*         (0.06)          0.30           (0.14)          0.36 
     Income tax expense         (0.20)          (0.13)          (0.75)          (0.56)
    Adjusted EPS$        1.14  $        1.21  $        4.81  $        5.19 


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


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