• NV5 Announces Record Third Quarter Results; Exceeds Analyst Consensus

    ソース: Nasdaq GlobeNewswire / 09 11 2021 15:01:01   America/Chicago

    HOLLYWOOD, Fla., Nov. 09, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of compliance, technology, and engineering consulting solutions, today reported financial results for the third quarter ended October 2, 2021.

    "NV5 delivered another strong quarter, generating record revenues and net income in the third quarter and year to date in 2021. The core business’ year-over-year double digit revenue growth is a testament to the success of NV5’s strategic business model, resulting in sustainable growth and margin expansion," said Dickerson Wright, PE, Chairman and CEO of NV5. "Growth in the quarter was largely driven by demand for utility, real estate, and environmental, social, and governance (ESG) services. We continued to strengthen our ESG capabilities in the third quarter with the acquisition of Sage Renewable Energy Consulting, a leader in comprehensive sustainable energy planning and project management services. We enter the fourth quarter and 2022 with a record backlog that increased 13% for the quarter."

    Third Quarter 2021 Results

    • Gross revenues in the third quarter of 2021 were $185.6 million compared to $169.9 million in the third quarter of 2020, a 9% increase.
    • Net income in the third quarter of 2021 was $12.6 million compared to $7.8 million in the third quarter of 2020, a 62% increase.
    • Adjusted EBITDA in the third quarter of 2021 was $34.7 million compared to $29.9 million in the third quarter of 2020, a 16% increase.
    • GAAP EPS in the third quarter of 2021 was $0.83 per share compared to $0.61 per share in the third quarter of 2020, a 36% increase.
    • Adjusted EPS in the third quarter of 2021 was $1.25 per share compared to $1.13 per share in the third quarter of 2020, an 11% increase. Diluted weighted average shares were 15,069,660 in the third quarter of 2021 compared to 12,749,917 in the third quarter of 2020.
    • Updated full year 2021 guidance as follows:
      • Increase GAAP EPS to a range of $2.60 per share to $2.91 per share (previously $2.45 per share to $2.84 per share).
      • Increase Adjusted EPS to a range of $4.36 per share to $4.62 per share (previously $4.20 per share to $4.55 per share).

    Nine Months Ended October 2, 2021 Results

    • Gross revenues for the nine months ended October 2, 2021 were $518.2 million compared to $498.1 million in the nine months ended October 3, 2020, a 4% increase.
    • Cash flows from operations for the nine months ended October 2, 2021 were $78.1 million compared to $72.4 million in nine months ended October 3, 2020, an 8% increase.
    • Net income for the nine months ended October 2, 2021 was $31.7 million compared to $16.4 million in nine months ended October 3, 2020, a 93% increase.
    • Adjusted EBITDA for the nine months ended October 2, 2021 was $93.1 million compared to $81.0 million in the nine months ended October 3, 2020, a 15% increase.
    • GAAP EPS for the nine months ended October 2, 2021 was $2.19 per share compared to $1.30 per share in the nine months ended October 3, 2020, a 68% increase.
    • Adjusted EPS for the nine months ended October 2, 2021 was $3.50 per share compared to $2.91 per share in the nine months ended October 3, 2020, a 20% increase. Diluted weighted average shares were 14,486,683 for the nine months ended October 2, 2021 compared to 12,650,107 in the nine months ended October 3, 2020.

    Fiscal Year

    The Company operates on a “52/53 week” fiscal year ending on the Saturday closest to the calendar quarter end, and fiscal 2021 contains 52 weeks compared to fiscal 2020, which contained 53 weeks. As a result, the third quarter of fiscal 2021 ended October 2, 2021 included 13 weeks compared to the third quarter of fiscal 2020 ended October 3, 2020, which included 14 weeks.

    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.

    Conference Call 

    NV5 will host a conference call to discuss its third quarter 2021 financial results at 4:30 p.m. (Eastern Time) on November 9, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:Tuesday, November 9, 2021
    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 compliance, technology, engineering, and environmental 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, 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 2, 2021 January 2, 2021
    Assets   
    Current assets:   
    Cash and cash equivalents$121,397  $64,909 
    Billed receivables, net129,781  142,705 
    Unbilled receivables, net86,399  74,458 
    Prepaid expenses and other current assets10,529  6,804 
    Total current assets348,106  288,876 
    Property and equipment, net29,323  27,011 
    Right-of-use lease assets, net44,866  43,607 
    Intangible assets, net168,497  174,931 
    Goodwill366,200  343,796 
    Other assets3,892  2,954 
    Total Assets$960,884  $881,175 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$42,272  $39,989 
    Accrued liabilities55,251  45,325 
    Billings in excess of costs and estimated earnings on uncompleted contracts16,730  24,962 
    Client deposits620  380 
    Current portion of contingent consideration3,406  1,334 
    Current portion of notes payable and other obligations17,526  24,196 
    Total current liabilities135,805  136,186 
    Contingent consideration, less current portion1,531  1,066 
    Other long-term liabilities40,410  38,737 
    Notes payable and other obligations, less current portion149,862  283,326 
    Deferred income tax liabilities, net29,154  27,791 
    Total liabilities356,762  487,106 
        
    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, 15,401,051 and 13,270,131 shares issued and outstanding as of October 2, 2021 and January 2, 2021, respectively154  133 
    Additional paid-in capital446,612  268,271 
    Retained earnings157,356  125,665 
    Total stockholders’ equity604,122  394,069 
    Total liabilities and stockholders’ equity$960,884  $881,175 


    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 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020
    Gross revenues$185,553  $169,949  $518,151  $498,118 
            
    Direct costs:       
    Salaries and wages45,145  46,815  131,630  136,929 
    Sub-consultant services35,779  26,003  89,003  78,673 
    Other direct costs12,802  10,370  35,714  27,771 
    Total direct costs93,726  83,188  256,347  243,373 
            
    Gross profit91,827  86,761  261,804  254,745 
            
    Operating expenses:       
    Salaries and wages, payroll taxes and benefits44,597  43,750  131,761  133,456 
    General and administrative12,978  13,216  37,891  38,196 
    Facilities and facilities related5,194  5,370  15,330  16,125 
    Depreciation and amortization10,108  10,187  29,764  32,387 
    Total operating expenses72,877  72,523  214,746  220,164 
            
    Income from operations18,950  14,238  47,058  34,581 
            
    Interest expense(1,475) (3,731) (5,362) (11,921)
            
    Income before income tax expense17,475  10,507  41,696  22,660 
    Income tax expense(4,902) (2,753) (10,005) (6,215)
    Net income and comprehensive income$12,573  $7,754  $31,691  $16,445 
            
    Earnings per share:       
    Basic$0.86  $0.62  $2.27  $1.33 
    Diluted$0.83  $0.61  $2.19  $1.30 
            
    Weighted average common shares outstanding:       
    Basic14,593,623  12,434,600  13,963,372  12,328,448 
    Diluted15,069,660  12,749,917  14,486,683  12,650,107 


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

     Nine Months Ended
     October 2, 2021 October 3, 2020
    Cash flows from operating activities:   
    Net income$31,691  $16,445 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization33,397  34,680 
    Non-cash lease expense7,941  6,731 
    Provision for doubtful accounts1,077  3,127 
    Stock-based compensation12,087  10,900 
    Change in fair value of contingent consideration(67) — 
    Gain on disposals of property and equipment(1,059) (394)
    Deferred income taxes(4,318) (5,905)
    Amortization of debt issuance costs1,024  669 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables16,728  8,089 
    Unbilled receivables(10,024) (7,505)
    Prepaid expenses and other assets(4,160) 2,171 
    Accounts payable1,366  (2,780)
    Accrued liabilities403  322 
    Billings in excess of costs and estimated earnings on uncompleted contracts(8,233) 5,706 
    Deposits218  163 
    Net cash provided by operating activities78,071  72,419 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions)(23,569) (882)
    Proceeds from sale of assets843  1,053 
    Purchase of property and equipment(6,714) (8,342)
    Net cash used in investing activities(29,440) (8,171)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility138,750  — 
    Proceeds from common stock offering172,500  — 
    Payments on notes payable(7,299) (9,941)
    Payments of contingent consideration(663) (913)
    Payments of borrowings from Senior Credit Facility(283,832) (20,750)
    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) (447)
    Net cash provided by (used in) financing activities7,857  (32,051)
        
    Net increase in cash and cash equivalents56,488  32,197 
    Cash and cash equivalents – beginning of period64,909  31,825 
    Cash and cash equivalents – end of period$121,397  $64,022 


    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 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020
    Net Income$12,573  $7,754  $31,691  $16,445 
    Add:Interest expense1,475  3,731  5,362  11,921 
     Income tax expense4,902  2,753  10,005  6,215 
     Depreciation and amortization11,461  11,401  33,397  34,680 
     Stock-based compensation4,297  4,020  12,087  10,900 
     Acquisition-related costs*(23) 274  607  845 
    Adjusted EBITDA$34,685  $29,933  $93,149  $81,006 

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

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Nine Months Ended
      October 2, 2021 October 3, 2020 October 2, 2021 October 3, 2020
    Net Income - per diluted share$0.83  $0.61  $2.19  $1.30 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs0.57  0.70  1.77  2.16 
     Income tax expense(0.15) (0.18) (0.46) (0.55)
    Adjusted EPS$1.25  $1.13  $3.50  $2.91 

     


    Primary Logo

シェアする