• NV5 Announces Third Quarter Results; Exceeds Analyst Consensus

    Источник: Nasdaq GlobeNewswire / 02 ноя 2023 16:01:00   America/New_York

    HOLLYWOOD, Fla., Nov. 02, 2023 (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 third quarter ended September 30, 2023.

    "NV5 delivered record revenues of $239 million in the third quarter of 2023, a 17% increase over the same period a year ago. Our geospatial business continued to build upon its strong performance in the first half of 2023 and we had strong performances by our clean energy, technology, data center, and international businesses. Our Red Technologies acquisition expanded our international footprint as we capitalized on the universal demand for data centers. The infrastructure business continues its acceleration throughout 2023, growing 6% compared to the second quarter of 2023 and 16% compared to the first quarter. We approach 2024 with a record backlog of $833 million and we are well-positioned to achieve our goal of a $1 billion revenue run rate by the end of next year." said Dickerson Wright, PE, Chairman and CEO of NV5.

    Third Quarter 2023 Results

    • Gross revenues in the third quarter of 2023 were $239.3 million compared to $204.1 million in the third quarter of 2022, a 17% increase.
    • Positive trends in our organic growth.
    • Gross profit in the third quarter of 2023 was $115.4 million compared to $99.9 million in the third quarter of 2022, a 16% increase.
    • Net income in the third quarter of 2023 was $13.3 million compared to $16.1 million in the third quarter of 2022. Net income was impacted by increases in amortization from acquisitions, acquisition-related costs, interest expense, and income tax benefits, as well as lower margins in our LNG business, driven by project timing.
    • Adjusted EBITDA in the third quarter of 2023 was $37.8 million compared to $36.0 million in the third quarter of 2022, a 5% increase. Adjusted EBITDA was impacted by lower margins in our LNG business, driven by project timing.
    • GAAP EPS in the third quarter of 2023 was $0.86 per share compared to $1.05 per share in the third quarter of 2022. Diluted weighted average shares were 15,497,836 in the third quarter of 2023, compared to 15,301,545 in the third quarter of 2022.
    • Adjusted EPS in the third quarter of 2023 was $1.51 per share compared to $1.50 per share in the third quarter of 2022. Diluted weighted average shares were 15,497,836 in the third quarter of 2023, compared to 15,301,545 in the third quarter of 2022.

    Nine Months Ended September 30, 2023 Results

    • Gross revenues for the nine months ended September 30, 2023 were $646.2 million compared to $597.0 million in the nine months ended October 1, 2022, an 8% increase.
    • Gross profit for the nine months ended September 30, 2023 was $321.7 million compared to $293.0 million in the nine months ended October 1, 2022, a 10% increase.
    • Net income for the nine months ended September 30, 2023 was $34.7 million compared to $42.0 million in the nine months ended October 1, 2022. Net income was impacted by increases in amortization from acquisitions, interest expense, and benefits from acquisition-related costs. Net income was also affected by lower margins in our LNG business, driven by project timing, and lower income from operations in our real estate transactional business.
    • Adjusted EBITDA for the nine months ended September 30, 2023 was $100.5 million compared to $102.7 million in the nine months ended October 1, 2022. Adjusted EBITDA was impacted by lower margins in our LNG business, driven by project timing, and lower income from operations in our real estate business.
    • GAAP EPS for the nine months ended September 30, 2023 was $2.24 per share compared to $2.75 per share in the nine months ended October 1, 2022. Diluted weighted average shares were 15,448,693 for the nine months ended September 30, 2023, compared to 15,242,453 in the nine months ended October 1, 2022.
    • Adjusted EPS for the nine months ended September 30, 2023 was $3.67 per share compared to $3.99 per share in the nine months ended October 1, 2022. Diluted weighted average shares were 15,448,693 for the nine months ended September 30, 2023, compared to 15,242,453 in the nine months ended October 1, 2022.

    Full-Year Guidance

    • Gross revenues between $860 million and $868 million.
    • GAAP EPS between $2.80 per share and $3.17 per share.
    • Adjusted EPS between $4.79 per share and $5.16 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 third quarter 2023 financial results at 4:30 p.m. (Eastern Time) on November 2, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com

    Date:Thursday, November 2, 2023
    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: 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)
     
     September 30, 2023 December 31, 2022
    Assets   
    Current assets:   
    Cash and cash equivalents$46,439  $38,541
    Billed receivables, net 166,859   145,637
    Unbilled receivables, net 122,049   92,862
    Prepaid expenses and other current assets 14,239   13,636
    Total current assets 349,586   290,676
    Property and equipment, net 49,930   41,640
    Right-of-use lease assets, net 39,105   39,314
    Intangible assets, net 236,433   160,431
    Goodwill 527,030   400,957
    Other assets 3,881   2,705
    Total Assets$1,205,965  $935,723
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$67,144  $57,771
    Accrued liabilities 64,538   44,313
    Billings in excess of costs and estimated earnings on uncompleted contracts 42,808   31,183
    Other current liabilities 2,286   1,597
    Current portion of contingent consideration 3,845   10,854
    Current portion of notes payable and other obligations 12,989   15,176
    Total current liabilities 193,610   160,894
    Contingent consideration, less current portion 1,897   4,481
    Other long-term liabilities 29,102   29,542
    Notes payable and other obligations, less current portion 215,642   39,673
    Deferred income tax liabilities, net 5,797   6,893
    Total liabilities 446,048   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, 15,892,912 and 15,523,300 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively 159   155
    Additional paid-in capital 502,909   471,300
    Accumulated other comprehensive income (loss) (612)  
    Retained earnings 257,461   222,785
    Total stockholders’ equity 759,917   694,240
    Total liabilities and stockholders’ equity$1,205,965  $935,723


    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
     September 30, 2023 October 1, 2022 September 30, 2023 October 1, 2022
    Gross revenues$239,287  $204,075  $646,242  $596,960 
            
    Direct costs:       
    Salaries and wages 56,853   48,295   162,316   141,976 
    Sub-consultant services 45,522   41,253   112,827   116,557 
    Other direct costs 21,468   14,592   49,357   45,426 
    Total direct costs 123,843   104,140   324,500   303,959 
            
    Gross profit 115,444   99,935   321,742   293,001 
            
    Operating expenses:       
    Salaries and wages, payroll taxes, and benefits 60,262   49,670   171,883   146,719 
    General and administrative 20,257   16,730   49,728   47,611 
    Facilities and facilities related 6,011   5,441   17,208   15,822 
    Depreciation and amortization 13,840   9,771   38,426   29,373 
    Total operating expenses 100,370   81,612   277,245   239,525 
            
    Income from operations 15,074   18,323   44,497   53,476 
            
    Interest expense (3,882)  (1,003)  (9,111)  (2,804)
            
    Income before income tax benefit (expense) 11,192   17,320   35,386   50,672 
    Income tax benefit (expense) 2,124   (1,257)  (710)  (8,699)
    Net income$13,316  $16,063  $34,676  $41,973 
            
    Earnings per share:       
    Basic$0.88  $1.09  $2.31  $2.85 
    Diluted$0.86  $1.05  $2.24  $2.75 
            
    Weighted average common shares outstanding:       
    Basic 15,210,100   14,768,689   15,035,898   14,732,726 
    Diluted 15,497,836   15,301,545   15,448,693   15,242,453 
            
    Comprehensive income:       
    Net income$13,316  $16,063  $34,676  $41,973 
    Foreign currency translation losses, net of tax (421)     (612)   
    Comprehensive income$12,895  $16,063  $34,064  $41,973 


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Nine Months Ended
     September 30, 2023 October 1, 2022
    Cash flows from operating activities:   
    Net income$34,676  $41,973 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 42,498   33,091 
    Non-cash lease expense 10,346   9,409 
    Provision for doubtful accounts 940   1,252 
    Stock-based compensation 16,504   15,249 
    Change in fair value of contingent consideration (7,518)  (543)
    Gain on disposals of property and equipment (633)  (100)
    Deferred income taxes (25,447)  (4,288)
    Amortization of debt issuance costs 573   556 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables (6,364)  13,281 
    Unbilled receivables (24,442)  (8,633)
    Prepaid expenses and other assets 1,944   (8,105)
    Accounts payable 3,846   (7,937)
    Accrued liabilities and other long-term liabilities 1,243   (1,608)
    Billings in excess of costs and estimated earnings on uncompleted contracts (2,113)  (2,902)
    Contingent consideration (1,307)   
    Other current liabilities 689   (304)
    Net cash provided by operating activities 45,435   80,391 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions) (189,109)  (5,020)
    Proceeds from sale of assets 295   87 
    Purchase of property and equipment (14,257)  (14,874)
    Net cash used in investing activities (203,071)  (19,807)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility 188,000    
    Payments on notes payable (6,399)  (7,796)
    Payments of contingent consideration (793)  (1,597)
    Payments of borrowings from Senior Credit Facility (15,000)  (45,000)
    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 165,727   (54,393)
        
    Effect of exchange rate changes on cash and cash equivalents (193)   
        
    Net increase in cash and cash equivalents 7,898   6,191 
    Cash and cash equivalents – beginning of period 38,541   47,980 
    Cash and cash equivalents – end of period$46,439  $54,171 

    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
      September 30,
    2023
     October 1, 2022 September 30,
    2023
     October 1, 2022
    Net Income$13,316  $16,063  $34,676  $41,973 
    Add:Interest expense 3,882   1,003   9,111   2,804 
     Income tax (benefit) expense (2,124)  1,257   710   8,699 
     Depreciation and amortization 15,293   11,033   42,498   33,091 
     Stock-based compensation 5,777   5,634   16,504   15,249 
     Acquisition-related costs* 1,702   1,043   (2,959)  892 
    Adjusted EBITDA$37,846  $36,033  $100,540  $102,708 

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

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Nine Months Ended
      September 30,
    2023
     October 1, 2022 September 30,
    2023
     October 1, 2022
    Net Income - per diluted share$0.86  $1.05  $2.24  $2.75 
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs 0.85   0.59   1.98   1.66 
     Income tax expense (0.20)  (0.14)  (0.55)  (0.42)
    Adjusted EPS$1.51  $1.50  $3.67  $3.99 

     


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