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 1, 2022.
"NV5 delivered another record year for revenues and
profitability in 2021, including significant growth in net income,
Adjusted EBITDA, Adjusted EBITDA margins, and earnings per share.
Increased profitability was driven by the growing scale of our
operations as well as our mix of high-margin offerings including
utility services, environmental solutions, and energy efficiency.
We completed eight strategic acquisitions in 2021 to expand our
marine geospatial offering, strengthen our growing energy
efficiency and clean energy business, grow our environmental
transactions services, and enter the high-growth data center market
in the Middle East and Asia. We enter 2022 well-positioned to
capture growing client investments in infrastructure, utility
reliability and safety, water and natural resources, and clean
energy," said Dickerson Wright, PE, Chairman and CEO of NV5.
Fourth Quarter 2021 Financial
Highlights
- Gross revenues in the fourth quarter of
2021 were $188.6 million compared to $161.2 million in the fourth
quarter of 2020, a 17% increase.
- Net income in the fourth quarter of
2021 was $15.5 million compared to $4.6 million in the fourth
quarter of 2020, a 238% increase.
- Adjusted EBITDA in the fourth quarter
of 2021 was $39.7 million compared to $24.4 million in the fourth
quarter of 2020, a 63% increase.
- Adjusted EBITDA margin increased to
21.1% in the fourth quarter of 2021 compared to 15.2% in the fourth
quarter of 2020.
- GAAP EPS in the fourth quarter of 2021
was $1.02 per share compared to $0.35 per share in the fourth
quarter of 2020, a 191% increase.
- Adjusted EPS in the fourth quarter of
2021 was $1.61 per share compared to $0.82 per share in the fourth
quarter of 2020, a 96% increase. Diluted weighted average shares
outstanding were 15,159,314 in the fourth quarter of 2021 compared
to 12,922,121 in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
- Gross revenues in 2021 were $706.7
million compared to $659.3 million in 2020. Fiscal 2021 included 52
weeks compared to fiscal 2020, which included 53 weeks.
- Net income in 2021 was $47.1 million
compared to $21.0 million in 2020, a 124% increase.
- Adjusted EBITDA in 2021 was $132.9
million compared to $105.4 million in 2020, a 26% increase.
- Adjusted EBITDA margin increased to
18.8% in 2021 compared to 16.0% in 2020.
- GAAP EPS in 2021 was $3.22 per share
compared to $1.65 per share in 2020, a 95% increase.
- Adjusted EPS in 2021 was $5.11 per
share compared to $3.72 per share in 2020, a 37% increase. Diluted
weighted average shares outstanding were 14,656,381 in 2021
compared to 12,713,075 in 2020.
- Cash flows from operating activities in
2021 were $101.4 million compared to $96.0 million in 2020.
Fiscal Year 2022 Guidance
- Gross revenues between $773 million and
$802 million.
- GAAP EPS between $3.34 per share and
$3.65 per share.
- Adjusted EPS between $5.39 per share
and $5.70 per share.
52/53 Week Fiscal Year
The Company operates on a "52/53 week" fiscal year ending on the
Saturday closest to the calendar quarter end. As a result, fiscal
2021 included 52 weeks compared to fiscal 2020, which included 53
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
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 fourth quarter
and full year 2021 financial results at 4:30 p.m. (Eastern Time) on
February 28, 2022. The accompanying presentation for the call
is available by visiting http://ir.nv5.com.
Date: |
Monday, February 28, 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 compliance,
technology, engineering, and environmental 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, 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 112 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 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 1, 2022 |
|
January 2, 2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
47,980 |
|
$ |
64,909 |
Billed receivables, net |
|
153,814 |
|
|
142,705 |
Unbilled receivables, net |
|
89,734 |
|
|
74,458 |
Prepaid expenses and other current assets |
|
12,442 |
|
|
6,804 |
Total current assets |
|
303,970 |
|
|
288,876 |
Property and equipment,
net |
|
32,729 |
|
|
27,011 |
Right-of-use lease assets,
net |
|
44,260 |
|
|
43,607 |
Intangible assets, net |
|
188,224 |
|
|
174,931 |
Goodwill |
|
389,916 |
|
|
343,796 |
Other assets |
|
2,844 |
|
|
2,954 |
Total Assets |
$ |
961,943 |
|
$ |
881,175 |
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
55,954 |
|
$ |
39,989 |
Accrued liabilities |
|
50,461 |
|
|
45,325 |
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
29,444 |
|
|
24,962 |
Client deposits |
|
1,551 |
|
|
380 |
Current portion of contingent consideration |
|
5,807 |
|
|
1,334 |
Current portion of notes payable and other obligations |
|
20,734 |
|
|
24,196 |
Total current liabilities |
|
163,951 |
|
|
136,186 |
Contingent consideration, less
current portion |
|
2,521 |
|
|
1,066 |
Other long-term
liabilities |
|
34,304 |
|
|
38,737 |
Notes payable and other
obligations, less current portion |
|
111,062 |
|
|
283,326 |
Deferred income tax
liabilities, net |
|
25,385 |
|
|
27,791 |
Total liabilities |
|
337,223 |
|
|
487,106 |
|
|
|
|
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,
15,414,005 and 13,270,131 shares issued and outstanding as of
January 1, 2022 and January 2, 2021, respectively |
|
154 |
|
|
133 |
Additional paid-in capital |
|
451,754 |
|
|
268,271 |
Retained earnings |
|
172,812 |
|
|
125,665 |
Total stockholders’ equity |
|
624,720 |
|
|
394,069 |
Total liabilities and stockholders’ equity |
$ |
961,943 |
|
$ |
881,175 |
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 1, 2022 |
|
January 2, 2021 |
|
January 1, 2022 |
|
January 2, 2021 |
Gross revenues |
$ |
188,555 |
|
|
$ |
161,178 |
|
|
$ |
706,706 |
|
|
$ |
659,296 |
|
|
|
|
|
|
|
|
|
Direct
costs: |
|
|
|
|
|
|
|
Salaries and wages |
|
43,417 |
|
|
|
39,936 |
|
|
|
175,047 |
|
|
|
176,865 |
|
Sub-consultant services |
|
35,995 |
|
|
|
28,929 |
|
|
|
124,998 |
|
|
|
107,602 |
|
Other direct costs |
|
11,633 |
|
|
|
12,519 |
|
|
|
47,347 |
|
|
|
40,291 |
|
Total direct costs |
|
91,045 |
|
|
|
81,384 |
|
|
|
347,392 |
|
|
|
324,758 |
|
|
|
|
|
|
|
|
|
Gross
profit |
|
97,510 |
|
|
|
79,794 |
|
|
|
359,314 |
|
|
|
334,538 |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Salaries and wages, payroll
taxes and benefits |
|
45,077 |
|
|
|
43,360 |
|
|
|
176,838 |
|
|
|
176,816 |
|
General and
administrative |
|
16,095 |
|
|
|
12,019 |
|
|
|
53,986 |
|
|
|
50,214 |
|
Facilities and facilities
related |
|
4,863 |
|
|
|
5,155 |
|
|
|
20,193 |
|
|
|
21,280 |
|
Depreciation and
amortization |
|
10,189 |
|
|
|
9,691 |
|
|
|
39,953 |
|
|
|
42,079 |
|
Total operating expenses |
|
76,224 |
|
|
|
70,225 |
|
|
|
290,970 |
|
|
|
290,389 |
|
|
|
|
|
|
|
|
|
Income from
operations |
|
21,286 |
|
|
|
9,569 |
|
|
|
68,344 |
|
|
|
44,149 |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(878 |
) |
|
|
(3,260 |
) |
|
|
(6,239 |
) |
|
|
(15,181 |
) |
|
|
|
|
|
|
|
|
Income before income tax
expense |
|
20,408 |
|
|
|
6,309 |
|
|
|
62,105 |
|
|
|
28,968 |
|
Income tax expense |
|
(4,953 |
) |
|
|
(1,735 |
) |
|
|
(14,958 |
) |
|
|
(7,950 |
) |
Net income and
comprehensive income |
$ |
15,455 |
|
|
$ |
4,574 |
|
|
$ |
47,147 |
|
|
$ |
21,018 |
|
|
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.05 |
|
|
$ |
0.37 |
|
|
$ |
3.34 |
|
|
$ |
1.70 |
|
Diluted |
$ |
1.02 |
|
|
$ |
0.35 |
|
|
$ |
3.22 |
|
|
$ |
1.65 |
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
14,651,218 |
|
|
|
12,468,444 |
|
|
|
14,135,333 |
|
|
|
12,362,786 |
|
Diluted |
|
15,159,314 |
|
|
|
12,922,121 |
|
|
|
14,656,381 |
|
|
|
12,713,075 |
|
NV5 GLOBAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(UNAUDITED)(in thousands)
|
Twelve Months Ended |
|
January 1, 2022 |
|
January 2, 2021 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
47,147 |
|
|
$ |
21,018 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
|
44,971 |
|
|
|
45,488 |
|
Non-cash lease expense |
|
10,191 |
|
|
|
9,469 |
|
Provision for doubtful accounts |
|
1,243 |
|
|
|
4,311 |
|
Stock-based compensation |
|
16,301 |
|
|
|
14,955 |
|
Change in fair value of contingent consideration |
|
2,333 |
|
|
|
— |
|
Gain on disposals of property and equipment |
|
(1,102 |
) |
|
|
(462 |
) |
Deferred income taxes |
|
(7,007 |
) |
|
|
(13,064 |
) |
Amortization of debt issuance costs |
|
1,210 |
|
|
|
896 |
|
Changes in operating assets
and liabilities, net of impact of acquisitions: |
|
|
|
Billed receivables |
|
2,677 |
|
|
|
(13,592 |
) |
Unbilled receivables |
|
(12,573 |
) |
|
|
1,996 |
|
Prepaid expenses and other assets |
|
(4,792 |
) |
|
|
4,680 |
|
Accounts payable |
|
8,181 |
|
|
|
3,367 |
|
Accrued liabilities |
|
(12,507 |
) |
|
|
(4,865 |
) |
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
4,005 |
|
|
|
21,659 |
|
Deposits |
|
1,164 |
|
|
|
153 |
|
Net cash provided by operating
activities |
|
101,442 |
|
|
|
96,009 |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
Cash paid for acquisitions
(net of cash received from acquisitions) |
|
(67,995 |
) |
|
|
(882 |
) |
Proceeds from sale of
assets |
|
1,639 |
|
|
|
1,670 |
|
Purchase of property and
equipment |
|
(13,903 |
) |
|
|
(9,855 |
) |
Net cash used in investing
activities |
|
(80,259 |
) |
|
|
(9,067 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Borrowings from Senior Credit
Facility |
|
138,750 |
|
|
|
— |
|
Proceeds from common stock
offering |
|
172,500 |
|
|
|
— |
|
Payments of borrowings from
Senior Credit Facility |
|
(323,832 |
) |
|
|
(36,625 |
) |
Payments on notes payable |
|
(12,516 |
) |
|
|
(15,207 |
) |
Payments of contingent
consideration |
|
(1,329 |
) |
|
|
(1,579 |
) |
Payments of common stock
offering costs |
|
(10,657 |
) |
|
|
— |
|
Payments of debt issuance
costs |
|
(976 |
) |
|
|
(447 |
) |
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 |
|
(38,112 |
) |
|
|
(53,858 |
) |
|
|
|
|
Net (decrease)
increase in cash and cash equivalents |
|
(16,929 |
) |
|
|
33,084 |
|
Cash and cash
equivalents – beginning of period |
|
64,909 |
|
|
|
31,825 |
|
Cash and cash
equivalents – end of period |
$ |
47,980 |
|
|
$ |
64,909 |
|
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 1, 2022 |
|
January 2, 2021 |
|
January 1, 2022 |
|
January 2, 2021 |
Net
Income |
$ |
15,455 |
|
$ |
4,574 |
|
$ |
47,147 |
|
$ |
21,018 |
Add: |
Interest expense |
|
878 |
|
|
3,260 |
|
|
6,239 |
|
|
15,181 |
|
Income tax expense |
|
4,953 |
|
|
1,735 |
|
|
14,958 |
|
|
7,950 |
|
Depreciation and
amortization |
|
11,574 |
|
|
10,808 |
|
|
44,971 |
|
|
45,488 |
|
Stock-based compensation |
|
4,214 |
|
|
4,055 |
|
|
16,301 |
|
|
14,955 |
|
Acquisition-related
costs* |
|
2,667 |
|
|
11 |
|
|
3,274 |
|
|
856 |
Adjusted
EBITDA |
$ |
39,741 |
|
$ |
24,443 |
|
$ |
132,890 |
|
$ |
105,448 |
* Acquisition-related costs include contingent consideration
fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
January 1, 2022 |
|
January 2, 2021 |
|
January 1, 2022 |
|
January 2, 2021 |
Net Income
- per diluted share |
$ |
1.02 |
|
|
$ |
0.35 |
|
|
$ |
3.22 |
|
|
$ |
1.65 |
|
Per
diluted share adjustments: |
|
|
|
|
|
|
|
Add: |
Amortization expense of intangible assets and acquisition-related
costs |
|
0.74 |
|
|
|
0.63 |
|
|
|
2.51 |
|
|
|
2.79 |
|
|
Income tax expense |
|
(0.15 |
) |
|
|
(0.16 |
) |
|
|
(0.62 |
) |
|
|
(0.72 |
) |
Adjusted
EPS |
$ |
1.61 |
|
|
$ |
0.82 |
|
|
$ |
5.11 |
|
|
$ |
3.72 |
|
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