NV5 Global, Inc. (Nasdaq: NVEE) (“NV5” or the
“Company”), a provider of compliance, technology, and
engineering consulting solutions, today reported financial results
for the fourth quarter and full year ended January 2, 2021.
“NV5 delivered another strong performance in 2020 with
significant growth in revenues, EBITDA, margin, and cash flows from
operations in spite of the coronavirus pandemic. The integration of
our acquisitions delivered margin improvement through efficiencies
of scale and our shared services model, and strong cash flows
allowed accelerated payments of our debt revolver. We enter 2021
with strong momentum and expect to see benefits from a market focus
on reliable delivery of power and environmental sustainability, a
healthy acquisition pipeline, and the reopening of the economy
throughout 2021,” said Dickerson Wright, PE, Chairman and CEO of
NV5.
Fourth Quarter 2020 Financial
Highlights
- Gross Revenues grew by 22% in the
fourth quarter of 2020 to $161.2 million compared to $132.6 million
in the fourth quarter of 2019.
- Net income grew by 28% in the fourth
quarter of 2020 to $4.6 million compared to $3.6 million in the
fourth quarter of 2019, with the fourth quarter of 2020 including
$2.2 million of additional interest expense and $3.0 million of
additional intangible amortization expense compared to fourth
quarter of 2019.
- Adjusted EBITDA, which excludes
stock-based compensation and acquisition-related costs, grew by 37%
in the fourth quarter of 2020 to $24.4 million compared to $17.9
million in the fourth quarter of 2019.
- GAAP EPS was $0.35 per share in the
fourth quarter of 2020.
- Adjusted EPS in the fourth quarter of
2020 was $0.82 per share compared to $0.64 per share in the fourth
quarter of 2019, a 28% increase.
- Cash flows from operating activities
for the fourth quarter of 2020 grew to $23.6 million compared
to $18.3 million in the fourth quarter of 2019, a 29%
increase.
Full Year 2020 Financial Highlights
- Gross Revenues grew by 30% in 2020 to
$659.3 million compared to $508.9 million in 2019.
- Net income in 2020 was $21.0 million
compared to $23.8 million in 2019, with 2020 including $12.9
million of additional interest expense, $14.1 million of additional
intangible amortization expense, and a higher effective income tax
rate compared to 2019.
- Adjusted EBITDA, which excludes
stock-based compensation and acquisition-related costs, grew by 52%
in 2020 to $105.4 million compared to $69.3 million in 2019.
- GAAP EPS was $1.65 per share in
2020.
- Adjusted EPS in 2020 was $3.72 per
share compared to $3.25 per share in 2019, a 14% increase.
- Cash flows from operating activities in
2020 were $96.0 million compared to $39.9 million in 2019, a 141%
increase.
52/53 Week Fiscal Year
NV5 uses a 52/53 week fiscal year ending on the Saturday closest
to the calendar quarter end. As a result, 2020 included 53 weeks
compared to 2019, which included 52 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
will likely 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 fourth quarter
and full year 2020 financial results at 4:30 p.m. (Eastern Time) on
March 2, 2021. The accompanying presentation for the call is
available by visiting http://ir.nv5.com.
Date: |
Tuesday, March
2, 2021 |
Time: |
4:30 p.m. Eastern |
Toll-free dial-in number: |
+1 833-900-1538 |
International dial-in number: |
+1 236-712-2278 |
Conference ID: |
4096283 |
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, and engineering consulting solutions for public and
private sector clients supporting infrastructure, utility, and
building assets and systems. The Company primarily focuses on six
business verticals: testing, inspection & consulting,
infrastructure support services, utility services, buildings &
program management, environmental health sciences, and geospatial
technology services. NV5 operates out of more than 106 offices
nationwide and abroad. For additional information, please
visit the Company’s website at www.NV5.com. Also visit the Company
on Twitter, LinkedIn, Facebook, and Vimeo.
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 CochranVice President, Marketing &
Investor RelationsTel: +1-954-637-8048Email: ir@nv5.com
Source: NV5 Global, Inc.
NV5 GLOBAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(UNAUDITED) (in thousands, except share data)
|
January 2, 2021 |
|
December 28, 2019 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
64,909 |
|
|
$ |
31,825 |
|
Billed receivables, net |
142,705 |
|
|
131,041 |
|
Unbilled receivables, net |
74,458 |
|
|
79,428 |
|
Prepaid expenses and other current assets |
6,804 |
|
|
8,906 |
|
Total current assets |
288,876 |
|
|
251,200 |
|
Property and equipment,
net |
27,011 |
|
|
25,733 |
|
Right-of-use lease assets,
net |
43,607 |
|
|
46,313 |
|
Intangible assets, net |
174,931 |
|
|
255,961 |
|
Goodwill |
343,796 |
|
|
309,216 |
|
Other assets |
2,954 |
|
|
4,714 |
|
Total Assets |
$ |
881,175 |
|
|
$ |
893,137 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
39,989 |
|
|
$ |
36,116 |
|
Accrued liabilities |
45,325 |
|
|
47,432 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
24,962 |
|
|
3,303 |
|
Client deposits |
380 |
|
|
221 |
|
Current portion of contingent consideration |
1,334 |
|
|
1,954 |
|
Current portion of notes payable and other obligations |
24,196 |
|
|
25,332 |
|
Total current liabilities |
136,186 |
|
|
114,358 |
|
Contingent consideration, less
current portion |
1,066 |
|
|
2,048 |
|
Other long-term
liabilities |
38,737 |
|
|
34,573 |
|
Notes payable and other
obligations, less current portion |
283,326 |
|
|
332,854 |
|
Deferred income tax
liabilities, net |
27,791 |
|
|
53,341 |
|
Total liabilities |
487,106 |
|
|
537,174 |
|
|
|
|
|
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,
13,270,131 and 12,852,357 shares issued and outstanding as of
January 2, 2021 and |
|
|
|
|
|
December 28, 2019, respectively |
133 |
|
|
129 |
|
Additional paid-in capital |
268,271 |
|
|
251,187 |
|
Retained earnings |
125,665 |
|
|
104,647 |
|
Total stockholders’ equity |
394,069 |
|
|
355,963 |
|
Total liabilities and stockholders’ equity |
$ |
881,175 |
|
|
$ |
893,137 |
|
NV5 GLOBAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF NET INCOME AND
COMPREHENSIVE INCOME(UNAUDITED)(in thousands, except share
data)
|
Three Months Ended |
|
Twelve Months Ended |
|
January 2, 2021 |
|
December 28, 2019 |
|
January 2, 2021 |
|
December 28, 2019 |
Gross revenues |
$ |
161,178 |
|
|
$ |
132,598 |
|
|
$ |
659,296 |
|
|
$ |
508,938 |
|
|
|
|
|
|
|
|
|
Direct
costs: |
|
|
|
|
|
|
|
Salaries and wages |
39,936 |
|
|
39,261 |
|
|
176,865 |
|
|
153,023 |
|
Sub-consultant services |
28,929 |
|
|
22,629 |
|
|
107,602 |
|
|
79,598 |
|
Other direct costs |
12,519 |
|
|
5,690 |
|
|
40,291 |
|
|
30,935 |
|
Total direct costs |
81,384 |
|
|
67,581 |
|
|
324,758 |
|
|
263,556 |
|
|
|
|
|
|
|
|
|
Gross
Profit |
79,794 |
|
|
65,017 |
|
|
334,538 |
|
|
245,382 |
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
Salaries and wages, payroll
taxes and benefits |
43,360 |
|
|
35,126 |
|
|
176,816 |
|
|
128,558 |
|
General and
administrative |
12,019 |
|
|
11,871 |
|
|
50,214 |
|
|
42,656 |
|
Facilities and facilities
related |
5,155 |
|
|
4,737 |
|
|
21,280 |
|
|
17,145 |
|
Depreciation and
amortization |
9,691 |
|
|
6,908 |
|
|
42,079 |
|
|
25,816 |
|
Total operating expenses |
70,225 |
|
|
58,643 |
|
|
290,389 |
|
|
214,175 |
|
|
|
|
|
|
|
|
|
Income from
operations |
9,569 |
|
|
6,374 |
|
|
44,149 |
|
|
31,207 |
|
|
|
|
|
|
|
|
|
Interest
expense |
(3,260 |
) |
|
(1,045 |
) |
|
(15,181 |
) |
|
(2,275 |
) |
|
|
|
|
|
|
|
|
Income before income tax
expense |
6,309 |
|
|
5,329 |
|
|
28,968 |
|
|
28,932 |
|
Income tax expense |
(1,735 |
) |
|
(1,754 |
) |
|
(7,950 |
) |
|
(5,176 |
) |
Net Income and
Comprehensive Income |
$ |
4,574 |
|
|
$ |
3,575 |
|
|
$ |
21,018 |
|
|
$ |
23,756 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.29 |
|
|
$ |
1.70 |
|
|
$ |
1.96 |
|
Diluted |
$ |
0.35 |
|
|
$ |
0.28 |
|
|
$ |
1.65 |
|
|
$ |
1.90 |
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
12,468,444 |
|
|
12,204,650 |
|
|
12,362,786 |
|
|
12,116,185 |
|
Diluted |
12,922,121 |
|
|
12,589,800 |
|
|
12,713,075 |
|
|
12,513,034 |
|
NV5 GLOBAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED)(in thousands)
|
Twelve Months Ended |
|
January 2, 2021 |
|
December 28, 2019 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
21,018 |
|
|
$ |
23,756 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
45,488 |
|
|
25,816 |
|
Non-cash lease expense |
9,469 |
|
|
9,410 |
|
Provision for doubtful accounts |
4,311 |
|
|
1,239 |
|
Stock-based compensation |
14,955 |
|
|
10,430 |
|
Change in fair value of contingent consideration |
— |
|
|
(216 |
) |
(Gain) loss on disposals of property and equipment |
(462 |
) |
|
21 |
|
Deferred income taxes |
(13,064 |
) |
|
(6,634 |
) |
Amortization of debt issuance costs |
896 |
|
|
131 |
|
Changes in operating assets
and liabilities, net of impact of acquisitions: |
|
|
|
Billed receivables |
(13,592 |
) |
|
5,140 |
|
Unbilled receivables |
1,996 |
|
|
(11,807 |
) |
Prepaid expenses and other assets |
4,680 |
|
|
(3,599 |
) |
Accounts payable |
3,367 |
|
|
534 |
|
Accrued liabilities |
(4,865 |
) |
|
(7,315 |
) |
Income taxes payable |
— |
|
|
(2,697 |
) |
Billings in excess of costs and estimated earnings on uncompleted
contracts |
21,659 |
|
|
(4,322 |
) |
Deposits |
153 |
|
|
13 |
|
Net cash provided by operating
activities |
96,009 |
|
|
39,900 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Cash paid for acquisitions
(net of cash received from acquisitions) |
(882 |
) |
|
(348,375 |
) |
Proceeds from sale of
assets |
1,670 |
|
|
— |
|
Purchase of property and
equipment |
(9,855 |
) |
|
(2,625 |
) |
Net cash used in investing
activities |
(9,067 |
) |
|
(351,000 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Borrowings from Senior Credit
Facility |
— |
|
|
330,457 |
|
Payments of borrowings from
Senior Credit Facility |
(36,625 |
) |
|
(10,000 |
) |
Payments on notes payable |
(15,207 |
) |
|
(13,393 |
) |
Payments of contingent
consideration |
(1,579 |
) |
|
(1,202 |
) |
Payments of debt issuance
costs |
(447 |
) |
|
(3,676 |
) |
Net cash (used in) provided by
financing activities |
(53,858 |
) |
|
302,186 |
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents |
33,084 |
|
|
(8,914 |
) |
Cash and cash
equivalents – beginning of period |
31,825 |
|
|
40,739 |
|
Cash and cash
equivalents – end of period |
$ |
64,909 |
|
|
$ |
31,825 |
|
NV5 GLOBAL, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP FINANCIAL MEASURES TO
COMPARABLE NON-GAAP FINANCIAL MEASURES(UNAUDITED)(in thousands,
except share data)
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
January 2, 2021 |
|
December 28, 2019 |
|
January 2, 2021 |
|
December 28, 2019 |
Net
Income |
$ |
4,574 |
|
|
$ |
3,575 |
|
|
$ |
21,018 |
|
|
$ |
23,756 |
|
Add: |
Interest
expense |
|
3,260 |
|
|
|
1,045 |
|
|
|
15,181 |
|
|
|
2,275 |
|
|
Income tax expense |
|
1,735 |
|
|
|
1,754 |
|
|
|
7,950 |
|
|
|
5,176 |
|
|
Deprecation and amortization |
|
10,808 |
|
|
|
6,908 |
|
|
|
45,488 |
|
|
|
25,816 |
|
|
Stock-based compensation |
|
4,055 |
|
|
|
3,441 |
|
|
|
14,955 |
|
|
|
10,430 |
|
|
Acquisition-related costs |
|
11 |
|
|
|
1,148 |
|
|
|
856 |
|
|
|
1,819 |
|
Adjusted EBITDA |
$ |
24,443 |
|
|
$ |
17,871 |
|
|
$ |
105,448 |
|
|
$ |
69,272 |
|
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
January 2, 2021 |
|
December 28, 2019 |
|
January 2, 2021 |
|
December 28, 2019 |
Net Income - per diluted share |
$ |
0.35 |
|
|
$ |
0.28 |
|
|
$ |
1.65 |
|
|
$ |
1.90 |
|
Per
diluted share adjustments: |
|
|
|
|
|
|
|
Add: |
Amortization expense of
intangible assets and acquisition-related costs |
0.63 |
|
|
0.50 |
|
|
2.79 |
|
|
1.79 |
|
|
Income tax expense |
(0.16 |
) |
|
(0.14 |
) |
|
(0.72 |
) |
|
(0.44 |
) |
Adjusted
EPS |
$ |
0.82 |
|
|
$ |
0.64 |
|
|
$ |
3.72 |
|
|
$ |
3.25 |
|
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