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NV5 Announces Record First Quarter Results; Exceeds Analyst Consensus and Increases Full-Year Guidance
Source: Nasdaq GlobeNewswire / 05 May 2022 15:01:02 America/Chicago
HOLLYWOOD, Fla., May 05, 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 first quarter ended April 2, 2022.
"NV5 delivered a record first quarter, generating double-digit growth in gross revenues, net income, Adjusted EBITDA, and earnings per share as a result of NV5’s strategy and business model. Growth in the quarter was led by strong performances in the utility services, testing and inspection, environmental, and energy efficiency businesses. We enter the second quarter with a strong backlog and pipeline to build upon our growth in 2022 and are increasing our full-year guidance," said Dickerson Wright, PE, Chairman and CEO of NV5.
First Quarter 2022 Results
- Gross revenues in the first quarter of 2022 were $190.2 million compared to $153.1 million in the first quarter of 2021, a 24% increase.
- Net income in the first quarter of 2022 was $8.6 million compared to $5.5 million in the first quarter of 2021, a 58% increase.
- Adjusted EBITDA in the first quarter of 2022 was $28.9 million compared to $24.2 million in the first quarter of 2021, a 19% increase.
- GAAP EPS in the first quarter of 2022 was $0.57 per share compared to $0.41 per share in the first quarter of 2021, a 39% increase.
- Adjusted EPS in the first quarter of 2022 was $0.99 per share compared to $0.88 per share in the first quarter of 2021, a 13% increase. Diluted weighted average shares were 15,216,105 in the first quarter of 2022 compared to 13,429,102 in the first quarter of 2021.
- Cash flows provided by operations were $46.5 million in the first quarter of 2022.
Increased Full-Year 2022 Guidance
- Increased gross revenues to a range of $785 million to $810 million (previously $773 million to $802 million).
- Increased GAAP EPS to a range of $3.57 per share to $3.92 per share (previously $3.34 per share to $3.65 per share).
- Increased Adjusted EPS to a range of $5.39 per share to $5.80 per share (previously $5.39 per share to $5.70 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 first quarter 2022 financial results at 4:30 p.m. (Eastern Time) on May 5, 2022. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
Date: Thursday, May 5, 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.comSource: NV5 Global, Inc.
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)April 2, 2022 January 1, 2022 Assets Current assets: Cash and cash equivalents $ 81,948 $ 47,980 Billed receivables, net 129,990 153,814 Unbilled receivables, net 87,627 89,734 Prepaid expenses and other current assets 8,758 12,442 Total current assets 308,323 303,970 Property and equipment, net 36,297 32,729 Right-of-use lease assets, net 41,899 44,260 Intangible assets, net 180,081 188,224 Goodwill 389,954 389,916 Other assets 3,299 2,844 Total Assets $ 959,853 $ 961,943 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 48,126 $ 55,954 Accrued liabilities 58,043 50,461 Billings in excess of costs and estimated earnings on uncompleted contracts 24,345 29,444 Other current liabilities 1,266 1,551 Current portion of contingent consideration 2,747 5,807 Current portion of notes payable and other obligations 18,335 20,734 Total current liabilities 152,862 163,951 Contingent consideration, less current portion 3,984 2,521 Other long-term liabilities 32,097 34,304 Notes payable and other obligations, less current portion 107,931 111,062 Deferred income tax liabilities, net 23,476 25,385 Total liabilities 320,350 337,223 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, 15,495,451 and 15,414,005 shares issued and outstanding as of April 2, 2022 and January 1, 2022, respectively 155 154 Additional paid-in capital 457,894 451,754 Retained earnings 181,454 172,812 Total stockholders’ equity 639,503 624,720 Total liabilities and stockholders’ equity $ 959,853 $ 961,943 NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)Three Months Ended April 2, 2022 April 3, 2021 Gross revenues $ 190,154 $ 153,095 Direct costs: Salaries and wages 45,977 41,459 Sub-consultant services 34,825 23,246 Other direct costs 15,525 9,798 Total direct costs 96,327 74,503 Gross profit 93,827 78,592 Operating expenses: Salaries and wages, payroll taxes and benefits 49,767 42,951 General and administrative 16,387 11,549 Facilities and facilities related 5,185 5,097 Depreciation and amortization 9,934 9,440 Total operating expenses 81,273 69,037 Income from operations 12,554 9,555 Interest expense (914 ) (2,318 ) Income before income tax expense 11,640 7,237 Income tax expense (2,998 ) (1,757 ) Net income and comprehensive income $ 8,642 $ 5,480 Earnings per share: Basic $ 0.59 $ 0.43 Diluted $ 0.57 $ 0.41 Weighted average common shares outstanding: Basic 14,693,323 12,876,822 Diluted 15,216,105 13,429,102 NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)Three Months Ended April 2, 2022 April 3, 2021 Cash flows from operating activities: Net income $ 8,642 $ 5,480 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 11,167 10,542 Non-cash lease expense 3,092 2,161 Provision for doubtful accounts 678 (536 ) Stock-based compensation 4,789 3,696 Change in fair value of contingent consideration — 209 Gain on disposals of property and equipment (54 ) (530 ) Deferred income taxes (1,903 ) (2,282 ) Amortization of debt issuance costs 185 227 Changes in operating assets and liabilities, net of impact of acquisitions: Billed receivables 23,211 36,037 Unbilled receivables 2,042 2,032 Prepaid expenses and other assets 3,230 (1,114 ) Accounts payable (7,854 ) (6,332 ) Accrued liabilities 4,684 2,629 Income taxes payable — 3,085 Billings in excess of costs and estimated earnings on uncompleted contracts (5,104 ) (7,241 ) Other current liabilities (289 ) 92 Net cash provided by operating activities 46,516 48,155 Cash flows from investing activities: Cash paid for acquisitions (net of cash received from acquisitions) (326 ) (15,007 ) Proceeds from sale of assets — 460 Purchase of property and equipment (6,044 ) (1,470 ) Net cash used in investing activities (6,370 ) (16,017 ) Cash flows from financing activities: Proceeds from common stock offering — 150,000 Payments on notes payable (4,581 ) (1,669 ) Payments of contingent consideration (1,597 ) (150 ) Payments of borrowings from Senior Credit Facility — (143,207 ) Payments of common stock offering costs — (9,044 ) Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation — (52 ) Net cash used in financing activities (6,178 ) (4,122 ) Net increase in cash and cash equivalents 33,968 28,016 Cash and cash equivalents – beginning of period 47,980 64,909 Cash and cash equivalents – end of period $ 81,948 $ 92,925 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 April 2, 2022 April 3, 2021 Net Income $ 8,642 $ 5,480 Add: Interest expense 914 2,318 Income tax expense 2,998 1,757 Depreciation and amortization 11,167 10,542 Stock-based compensation 4,789 3,696 Acquisition-related costs 355 449 Adjusted EBITDA $ 28,865 $ 24,242 RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
Three Months Ended April 2, 2022 April 3, 2021 Net Income - per diluted share $ 0.57 $ 0.41 Per diluted share adjustments: Add: Amortization expense of intangible assets and acquisition-related costs 0.57 0.63 Income tax expense (0.15 ) (0.16 ) Adjusted EPS $ 0.99 $ 0.88 
