• NV5 Announces Record Second Quarter Results; Exceeds Analyst Consensus and Increases Full-Year Guidance

    Source: Nasdaq GlobeNewswire / 04 Aug 2022 16:01:00   America/New_York

    HOLLYWOOD, Fla., Aug. 04, 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 second quarter ended July 2, 2022.

    "NV5 delivered another quarter of double-digit growth in gross revenues, net income, Adjusted EBITDA, and earnings per share in the second quarter, resulting in a record first half of 2022. We drove growth across all six of our operating verticals in the quarter and expanded our national leadership position in electrical utility geospatial solutions with the acquisition of GEO1. We achieved 8% organic growth in the first half of the year. NV5’s strong backlog, available cash on hand, and non-discretionary service offerings position us to continue our growth throughout 2022, while protecting our margins," said Dickerson Wright, PE, Chairman and CEO of NV5.

    Second Quarter 2022 Results

    • Gross revenues in the second quarter of 2022 were $202.7 million compared to $179.5 million in the second quarter of 2021, a 13% increase.
    • Net income in the second quarter of 2022 was $17.3 million compared to $13.6 million in the second quarter of 2021, a 27% increase.
    • Adjusted EBITDA in the second quarter of 2022 was $37.8 million compared to $34.2 million in the second quarter of 2021, a 10% increase.
    • GAAP EPS in the second quarter of 2022 was $1.13 per share compared to $0.91 per share in the second quarter of 2021, a 24% increase.
    • Adjusted EPS in the second quarter of 2022 was $1.49 per share compared to $1.34 per share in the second quarter of 2021, an 11% increase. Diluted weighted average shares were 15,232,157 in the second quarter of 2022 compared to 14,965,188 in the second quarter of 2021.

    Six Months Ended July 2, 2022 Results

    • Gross revenues for the six months ended July 2, 2022 were $392.9 million compared to $332.6 million in the six months ended July 3, 2021, an 18% increase.
    • Net income for the six months ended July 2, 2022 was $25.9 million compared to $19.1 million in the six months ended July 3, 2021, a 36% increase.
    • Adjusted EBITDA for the six months ended July 2, 2022 was $66.7 million compared to $58.5 million in the six months ended July 3, 2021, a 14% increase.
    • GAAP EPS for the six months ended July 2, 2022 was $1.70 per share compared to $1.35 per share in the six months ended July 3, 2021, a 26% increase.
    • Adjusted EPS for the six months ended July 2, 2022 was $2.48 per share compared to $2.25 per share in the six months ended July 3, 2021, a 10% increase. Diluted weighted average shares were 15,211,835 for the six months ended July 2, 2022, compared to 14,196,035 in the six months ended July 3, 2021.

    Increased Full-Year Guidance

    • Increased gross revenues to a range of $795 million to $815 million (previously $785 million to $810 million).
    • Increased GAAP EPS to a range of $3.90 per share to $4.29 per share (previously $3.57 per share to $3.92 per share).
    • Increased Adjusted EPS to a range of $5.43 per share to $5.82 per share (previously $5.39 per share to $5.80 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, 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 2022 financial results at 4:30 p.m. (Eastern Time) on August 4, 2022. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date: Thursday, August 4, 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)

     July 2, 2022 January 1, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$44,422 $47,980
    Billed receivables, net 139,959  153,814
    Unbilled receivables, net 93,486  89,734
    Prepaid expenses and other current assets 13,159  12,442
    Total current assets 291,026  303,970
    Property and equipment, net 39,557  32,729
    Right-of-use lease assets, net 40,595  44,260
    Intangible assets, net 178,383  188,224
    Goodwill 394,760  389,916
    Other assets 2,639  2,844
    Total Assets$946,960 $961,943
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$52,310 $55,954
    Accrued liabilities 51,135  50,461
    Billings in excess of costs and estimated earnings on uncompleted contracts 22,625  29,444
    Other current liabilities 1,454  1,551
    Current portion of contingent consideration 9,772  5,807
    Current portion of notes payable and other obligations 18,932  20,734
    Total current liabilities 156,228  163,951
    Contingent consideration, less current portion 3,020  2,521
    Other long-term liabilities 30,564  34,304
    Notes payable and other obligations, less current portion 73,839  111,062
    Deferred income tax liabilities, net 22,366  25,385
    Total liabilities 286,017  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, 15,537,134 and 15,414,005 shares issued and outstanding as of July 2, 2022 and January 1, 2022, respectively 155  154
    Additional paid-in capital 462,066  451,754
    Retained earnings 198,722  172,812
    Total stockholders’ equity 660,943  624,720
    Total liabilities and stockholders’ equity$946,960 $961,943


    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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
    Gross revenues$202,732  $179,503  $392,885  $332,598 
            
    Direct costs:       
    Salaries and wages 47,704   45,025   93,681   86,485 
    Sub-consultant services 40,479   29,978   75,305   53,225 
    Other direct costs 15,309   13,114   30,833   22,912 
    Total direct costs 103,492   88,117   199,819   162,622 
            
    Gross profit 99,240   91,386   193,066   169,976 
            
    Operating expenses:       
    Salaries and wages, payroll taxes and benefits 47,283   44,213   97,049   87,164 
    General and administrative 14,494   13,367   30,881   24,915 
    Facilities and facilities related 5,195   5,038   10,381   10,135 
    Depreciation and amortization 9,668   10,216   19,602   19,656 
    Total operating expenses 76,640   72,834   157,913   141,870 
            
    Income from operations 22,600   18,552   35,153   28,106 
            
    Interest expense (887)  (1,568)  (1,801)  (3,886)
            
    Income before income tax expense 21,713   16,984   33,352   24,220 
    Income tax expense (4,445)  (3,346)  (7,442)  (5,102)
    Net income and comprehensive income$17,268  $13,638  $25,910  $19,118 
            
    Earnings per share:       
    Basic$1.17  $0.95  $1.76  $1.40 
    Diluted$1.13  $0.91  $1.70  $1.35 
            
    Weighted average common shares outstanding:       
    Basic 14,736,167   14,419,671   14,714,745   13,648,247 
    Diluted 15,232,157   14,965,188   15,211,835   14,196,035 


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

     Six Months Ended
     July 2, 2022 July 3, 2021
    Cash flows from operating activities:   
    Net income$25,910  $19,118 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 22,058   21,936 
    Non-cash lease expense 6,265   4,884 
    Provision for doubtful accounts 594   583 
    Stock-based compensation 9,615   7,790 
    Change in fair value of contingent consideration (518)  235 
    Gain on disposals of property and equipment (61)  (581)
    Deferred income taxes (3,014)  (2,988)
    Amortization of debt issuance costs 370   454 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables 15,152   36,727 
    Unbilled receivables (3,801)  (7,238)
    Prepaid expenses and other assets (511)  (4,208)
    Accounts payable (4,349)  (2,446)
    Accrued liabilities (6,309)  (4,187)
    Billings in excess of costs and estimated earnings on uncompleted contracts (6,867)  (8,158)
    Other current liabilities (276)  307 
    Net cash provided by operating activities 54,258   62,228 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions) (4,670)  (21,652)
    Proceeds from sale of assets 48   460 
    Purchase of property and equipment (10,379)  (4,028)
    Net cash used in investing activities (15,001)  (25,220)
        
    Cash flows from financing activities:   
    Proceeds from common stock offering —   172,500 
    Payments on notes payable (6,218)  (5,325)
    Payments of contingent consideration (1,597)  (413)
    Payments of borrowings from Senior Credit Facility (35,000)  (145,082)
    Payments of common stock offering costs —   (10,522)
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation —   (52)
    Net cash (used in) provided by financing activities (42,815)  11,106 
        
    Net (decrease) increase in cash and cash equivalents (3,558)  48,114 
    Cash and cash equivalents – beginning of period 47,980   64,909 
    Cash and cash equivalents – end of period$44,422  $113,023 


    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 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
    Net Income$17,268  $13,638 $25,910  $19,118
    Add:Interest expense 887   1,568  1,801   3,886
     Income tax expense 4,445   3,346  7,442   5,102
     Depreciation and amortization 10,891   11,394  22,058   21,936
     Stock-based compensation 4,826   4,094  9,615   7,790
     Acquisition-related costs* (506)  180  (151)  629
    Adjusted EBITDA$37,811  $34,220 $66,675  $58,461

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


    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Six Months Ended
      July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
    Net Income - per diluted share$1.13  $0.91  $1.70  $1.35 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs 0.50   0.58   1.06   1.21 
     Income tax expense (0.14)  (0.15)  (0.28)  (0.31)
    Adjusted EPS$1.49  $1.34  $2.48  $2.25 


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