• NV5 Announces Second Quarter Results and Raises Guidance

    ソース: Nasdaq GlobeNewswire / 07 8 2024 16:01:00   America/New_York

    HOLLYWOOD, Fla., Aug. 07, 2024 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq GS: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, consulting solutions, and software applications, today reported financial results for the second quarter ended June 29, 2024.

    "NV5 continued to build upon its positive momentum in the second quarter, delivering strong organic growth and profitability. We are well-positioned to meet the expected increase in demand for our services in the second half of 2024, and we are raising guidance. As highlighted in our recent Investor Day, our leadership position in the use of technology to deliver our services, including geospatial analytics and software, provides competitive advantages and contributes to NV5's growth. We will continue to incorporate innovative technologies in all of our services in the years to come," said Dickerson Wright, Executive Chairman of NV5.

    Second Quarter 2024 Results

    Gross revenues in the second quarter of 2024 grew 6% to $236.3 million from $222.6 million in the second quarter of 2023 and our gross profit increased 12% to $123.3 million. This represents a gross margin expansion of 270 basis points to 52.2%.

    Net income of $7.9 million reflects integration costs of our VIS acquisition during the second quarter this year and a $6.7 million reversal of contingent consideration during the same quarter last year. We also had $1.0 million of higher interest expense this quarter as a result of higher interest rates and debt balances, although our net leverage remains low at 1.5x. Our GAAP EPS during the second quarter was $0.50 per share compared to $1.00 per share last year due to the foregoing differences between the periods.

    Our Adjusted EBITDA increased 10% to $38.5 million from $35.0 million, and our Adjusted EBITDA margin expanded to 16.3% from 15.7% in the prior year quarter. Our Adjusted EPS was $1.24 per share compared to $1.29 per share in the second quarter of 2023, reflecting higher share count.

    Raising Guidance

    We continue to foresee a strong second half of the year. Accordingly, we are raising 2024 full-year guidance for revenue and Adjusted Earnings per Share as follows:

    • Gross revenue for the full year 2024 is now between $944 million and $950 million, an increase from $937 million and $942 million.
    • 2024 GAAP EPS guidance remains $2.87 to $2.93 per share.
    • 2024 Adjusted EPS guidance has been raised to $5.13 to $5.20 per share, an increase from $5.05 to $5.11 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 second quarter 2024 financial results at 4:30 p.m. (Eastern Time) on August 7, 2024. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:Wednesday, August 7, 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 GS: 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)
     
     June 29, 2024 December 30, 2023
    Assets   
    Current assets:   
    Cash and cash equivalents$29,355  $44,824 
    Billed receivables, net 161,894   152,593 
    Unbilled receivables, net 140,006   113,271 
    Prepaid expenses and other current assets 22,991   18,376 
    Total current assets 354,246   329,064 
    Property and equipment, net 55,675   50,268 
    Right-of-use lease assets, net 36,135   36,836 
    Intangible assets, net 237,789   226,702 
    Goodwill 543,708   524,573 
    Deferred income tax assets, net 4,744   — 
    Other assets 2,086   3,149 
    Total Assets$1,234,383  $1,170,592 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$61,870  $54,865 
    Accrued liabilities 44,202   47,423 
    Billings in excess of costs and estimated earnings on uncompleted contracts 35,441   41,679 
    Other current liabilities 2,348   2,263 
    Current portion of contingent consideration 2,436   3,922 
    Current portion of notes payable and other obligations 8,537   9,267 
    Total current liabilities 154,834   159,419 
    Contingent consideration, less current portion 2,328   143 
    Other long-term liabilities 25,935   26,930 
    Notes payable and other obligations, less current portion 248,687   205,468 
    Deferred income tax liabilities, net —   2,837 
    Total liabilities 431,784   394,797 
        
    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, 16,280,601 and 15,895,255 shares issued and outstanding as of June 29, 2024 and December 30, 2023, respectively 163   159 
    Additional paid-in capital 527,418   508,256 
    Accumulated other comprehensive loss (695)  (18)
    Retained earnings 275,713   267,398 
    Total stockholders’ equity 802,599   775,795 
    Total liabilities and stockholders’ equity$1,234,383  $1,170,592 



    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
     June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
    Gross revenues$236,326  $222,638  $449,621  $406,955 
            
    Direct costs:       
    Salaries and wages 61,390   57,079   117,845   105,463 
    Sub-consultant services 37,342   39,690   68,602   67,304 
    Other direct costs 14,323   15,569   27,074   27,890 
    Total direct costs 113,055   112,338   213,521   200,657 
            
    Gross profit 123,271   110,300   236,100   206,298 
            
    Operating expenses:       
    Salaries and wages, payroll taxes, and benefits 68,110   58,949   133,544   111,621 
    General and administrative 21,178   11,551   43,420   29,472 
    Facilities and facilities related 6,035   5,823   11,996   11,197 
    Depreciation and amortization 16,068   13,539   30,550   24,585 
    Total operating expenses 111,391   89,862   219,510   176,875 
            
    Income from operations 11,880   20,438   16,590   29,423 
            
    Interest expense (4,606)  (3,648)  (8,797)  (5,229)
            
    Income before income tax expense 7,274   16,790   7,793   24,194 
    Income tax benefit (expense) 633   (1,377)  522   (2,834)
    Net income$7,907  $15,413  $8,315  $21,360 
            
    Earnings per share:       
    Basic$0.51  $1.03  $0.54  $1.43 
    Diluted$0.50  $1.00  $0.53  $1.39 
            
    Weighted average common shares outstanding:       
    Basic 15,362,825   15,014,106   15,314,988   14,948,796 
    Diluted 15,671,176   15,451,788   15,657,632   15,421,535 
            
    Comprehensive income:       
    Net income$7,907  $15,413  $8,315  $21,360 
    Foreign currency translation losses, net of tax (176)  (191)  (677)  (191)
    Comprehensive income$7,731  $15,222  $7,638  $21,169 



    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Six Months Ended
     June 29, 2024 July 1, 2023
    Cash flows from operating activities:   
    Net income$8,315  $21,360 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 33,635   27,205 
    Non-cash lease expense 6,401   6,784 
    Provision for doubtful accounts 723   607 
    Stock-based compensation 13,988   10,728 
    Change in fair value of contingent consideration —   (7,514)
    Gain on disposals of property and equipment (644)  (408)
    Other 204   — 
    Deferred income taxes (7,712)  (7,673)
    Amortization of debt issuance costs 370   365 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables (4,674)  10,882 
    Unbilled receivables (25,042)  (9,842)
    Prepaid expenses and other assets (1,619)  (4,691)
    Accounts payable 4,555   (8,164)
    Accrued liabilities and other long-term liabilities (11,507)  (5,698)
    Billings in excess of costs and estimated earnings on uncompleted contracts (7,384)  (7,606)
    Contingent consideration (1,455)  (1,307)
    Other current liabilities 88   474 
    Net cash provided by operating activities 8,242   25,502 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions) (53,947)  (186,242)
    Proceeds from sale of assets 249   295 
    Purchase of property and equipment (8,905)  (10,239)
    Net cash used in investing activities (62,603)  (196,186)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility 58,000   180,000 
    Payments on notes payable and other obligations (5,274)  (5,131)
    Payments of contingent consideration (1,585)  (793)
    Payments of borrowings from Senior Credit Facility (12,000)  (13,000)
    Net cash provided by financing activities 39,141   161,076 
        
    Effect of exchange rate changes on cash and cash equivalents (249)  (106)
        
    Net decrease in cash and cash equivalents (15,469)  (9,714)
    Cash and cash equivalents – beginning of period 44,824   38,541 
    Cash and cash equivalents – end of period$29,355  $28,827 



    NV5 GLOBAL, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (UNAUDITED)
    (in thousands, except share data)
     
    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
     
     Three Months Ended Six Months Ended
     June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
    Net Income$7,907  $15,413  $8,315  $21,360 
    Interest expense 4,606   3,648   8,797   5,229 
    Income tax (benefit) expense (633)  1,377   (522)  2,834 
    Depreciation and amortization 17,592   14,905   33,635   27,205 
    Stock-based compensation 7,322   4,902   13,988   10,728 
    Acquisition-related costs* 1,704   (5,294)  3,016   (4,661)
    Adjusted EBITDA$38,498  $34,951  $67,229  $62,695 

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


    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
     
     Three Months Ended Six Months Ended
     June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
    Net Income - per diluted share$0.50  $1.00  $0.53  $1.39 
    Per diluted share adjustments:       
    Amortization expense of intangible assets and acquisition-related costs 0.97   0.49   1.81   1.13 
    Income tax expense (0.23)  (0.20)  (0.43)  (0.36)
    Adjusted EPS$1.24  $1.29  $1.91  $2.16 

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