NV5 Announces First Quarter Results Exceeding Earnings Consensus
May 04 2023 - 4:01PM
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 1, 2023.
"NV5 delivered first quarter results that were above earnings
consensus and in accordance with full-year guidance for revenues
and earnings. We anticipate that actions taken in the first quarter
will result in accelerated growth in the second half of the year.
The quarter was led by the record performance of the geospatial
business, which grew 15% organically, easing headwinds in the real
estate transactions business and the timing of LNG revenue due to
project cycles which impacted the quarter. NV5’s first quarter
performance reinforces our focus on a multidisciplinary services
portfolio. We therefore maintain our full-year 2023 guidance. We
completed four acquisitions in the quarter including Axim
Geospatial, a leader in geospatial data analytics for the defense
and intelligence community. The addition of Axim Geospatial and the
recent acquisition of the L3Harris commercial geospatial software
group are significant steps in our positioning to capitalize on
technology services, software, and subscription-based revenue,"
said Dickerson Wright, PE, Chairman and CEO of NV5.
First Quarter 2023
Results*
- Gross revenues in the first quarter of 2023 were $184.3
million.
- Gross profit in the first quarter of 2023 was $96.0
million.
- Net income in the first quarter of 2023 was $5.9 million.
- Adjusted EBITDA in the first quarter of 2023 was
$27.7 million.
- GAAP EPS in the first quarter of 2023 was $0.39 per share.
- Adjusted EPS in the first quarter of 2023 was $0.88 per
share.
- Cash flows from operating activities in the first quarter of
2023 were $11.3 million. The first quarter cash flows from
operations were impacted by the timing of working capital,
including increases in unbilled receivables as a result of billing
milestone payment cycles and decreases in accounts payable.
*Refer to included Consolidated Statements of Net Income and
Comprehensive Income for comparison to first quarter 2022.
Reiterate Full-Year 2023 Guidance
- Gross revenues between $878 million and $915 million.
- GAAP EPS between $2.93 per share and $3.33 per share.
- Adjusted EPS between $5.28 per share and $5.69 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
2023 financial results at 4:30 p.m. (Eastern Time) on May 4,
2023. The accompanying presentation for the call is available by
visiting http://ir.nv5.com.
Date: |
Thursday, May 4, 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: 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 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) |
|
|
April 1, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
31,341 |
|
|
$ |
38,541 |
|
Billed receivables, net |
|
|
145,799 |
|
|
|
145,637 |
|
Unbilled receivables, net |
|
|
111,351 |
|
|
|
92,862 |
|
Prepaid expenses and other current assets |
|
|
13,194 |
|
|
|
13,636 |
|
Total current assets |
|
|
301,685 |
|
|
|
290,676 |
|
Property and equipment,
net |
|
|
49,438 |
|
|
|
41,640 |
|
Right-of-use lease assets,
net |
|
|
38,776 |
|
|
|
39,314 |
|
Intangible assets, net |
|
|
213,517 |
|
|
|
160,431 |
|
Goodwill |
|
|
483,236 |
|
|
|
400,957 |
|
Other assets |
|
|
3,215 |
|
|
|
2,705 |
|
Total Assets |
|
$ |
1,089,867 |
|
|
$ |
935,723 |
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
48,333 |
|
|
$ |
57,771 |
|
Accrued liabilities |
|
|
56,073 |
|
|
|
44,313 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
|
37,327 |
|
|
|
31,183 |
|
Other current liabilities |
|
|
1,556 |
|
|
|
1,597 |
|
Current portion of contingent consideration |
|
|
10,606 |
|
|
|
10,854 |
|
Current portion of notes payable and other obligations |
|
|
14,832 |
|
|
|
15,176 |
|
Total current liabilities |
|
|
168,727 |
|
|
|
160,894 |
|
Contingent consideration, less
current portion |
|
|
2,695 |
|
|
|
4,481 |
|
Other long-term
liabilities |
|
|
28,638 |
|
|
|
29,542 |
|
Notes payable and other
obligations, less current portion |
|
|
153,084 |
|
|
|
39,673 |
|
Deferred income tax
liabilities, net |
|
|
16,853 |
|
|
|
6,893 |
|
Total liabilities |
|
|
369,997 |
|
|
|
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,
15,708,193 and 15,523,300 shares issued and outstanding as of April
1, 2023 and December 31, 2022, respectively |
|
|
157 |
|
|
|
155 |
|
Additional paid-in capital |
|
|
490,981 |
|
|
|
471,300 |
|
Retained earnings |
|
|
228,732 |
|
|
|
222,785 |
|
Total stockholders’ equity |
|
|
719,870 |
|
|
|
694,240 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,089,867 |
|
|
$ |
935,723 |
|
NV5 GLOBAL, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME(UNAUDITED)(in
thousands, except share data) |
|
|
Three Months Ended |
|
|
April 1, 2023 |
|
April 2, 2022 |
Gross revenues |
|
$ |
184,317 |
|
|
$ |
190,154 |
|
|
|
|
|
|
Direct
costs: |
|
|
|
|
Salaries and wages |
|
|
48,384 |
|
|
|
45,977 |
|
Sub-consultant services |
|
|
27,615 |
|
|
|
34,825 |
|
Other direct costs |
|
|
12,320 |
|
|
|
15,525 |
|
Total direct costs |
|
|
88,319 |
|
|
|
96,327 |
|
|
|
|
|
|
Gross
profit |
|
|
95,998 |
|
|
|
93,827 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Salaries and wages, payroll
taxes, and benefits |
|
|
52,672 |
|
|
|
49,767 |
|
General and
administrative |
|
|
17,920 |
|
|
|
16,387 |
|
Facilities and facilities
related |
|
|
5,374 |
|
|
|
5,185 |
|
Depreciation and
amortization |
|
|
11,047 |
|
|
|
9,934 |
|
Total operating expenses |
|
|
87,013 |
|
|
|
81,273 |
|
|
|
|
|
|
Income from
operations |
|
|
8,985 |
|
|
|
12,554 |
|
|
|
|
|
|
Interest
expense |
|
|
(1,581 |
) |
|
|
(914 |
) |
|
|
|
|
|
Income before income tax
expense |
|
|
7,404 |
|
|
|
11,640 |
|
Income tax expense |
|
|
(1,457 |
) |
|
|
(2,998 |
) |
Net income and
comprehensive income |
|
$ |
5,947 |
|
|
$ |
8,642 |
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
Basic |
|
$ |
0.40 |
|
|
$ |
0.59 |
|
Diluted |
|
$ |
0.39 |
|
|
$ |
0.57 |
|
|
|
|
|
|
Weighted average
common shares outstanding: |
|
|
|
|
Basic |
|
|
14,883,487 |
|
|
|
14,693,323 |
|
Diluted |
|
|
15,383,437 |
|
|
|
15,216,105 |
|
NV5 GLOBAL, INC. AND SUBSIDIARIESCONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED)(in thousands) |
|
|
Three Months Ended |
|
|
April 1, 2023 |
|
April 2, 2022 |
Cash flows from
operating activities: |
|
|
|
|
Net income |
|
$ |
5,947 |
|
|
$ |
8,642 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
12,302 |
|
|
|
11,167 |
|
Non-cash lease expense |
|
|
3,286 |
|
|
|
3,092 |
|
Provision for doubtful accounts |
|
|
240 |
|
|
|
678 |
|
Stock-based compensation |
|
|
5,826 |
|
|
|
4,789 |
|
Change in fair value of contingent consideration |
|
|
(859 |
) |
|
|
— |
|
Gain on disposals of property and equipment |
|
|
(23 |
) |
|
|
(54 |
) |
Deferred income taxes |
|
|
(5,603 |
) |
|
|
(1,903 |
) |
Amortization of debt issuance costs |
|
|
194 |
|
|
|
185 |
|
Changes in operating assets
and liabilities, net of impact of acquisitions: |
|
|
|
|
Billed receivables |
|
|
9,560 |
|
|
|
23,211 |
|
Unbilled receivables |
|
|
(13,999 |
) |
|
|
2,042 |
|
Prepaid expenses and other assets |
|
|
4,857 |
|
|
|
3,230 |
|
Accounts payable |
|
|
(15,884 |
) |
|
|
(7,854 |
) |
Accrued liabilities and other long-term liabilities |
|
|
2,375 |
|
|
|
4,684 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
|
3,906 |
|
|
|
(5,104 |
) |
Contingent consideration |
|
|
(800 |
) |
|
|
— |
|
Other current liabilities |
|
|
(43 |
) |
|
|
(289 |
) |
Net cash provided by operating
activities |
|
|
11,282 |
|
|
|
46,516 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Cash paid for acquisitions
(net of cash received from acquisitions) |
|
|
(117,587 |
) |
|
|
(326 |
) |
Purchase of property and
equipment |
|
|
(6,110 |
) |
|
|
(6,044 |
) |
Net cash used in investing
activities |
|
|
(123,697 |
) |
|
|
(6,370 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Borrowings from Senior Credit
Facility |
|
|
110,000 |
|
|
|
— |
|
Payments on notes payable |
|
|
(4,085 |
) |
|
|
(4,581 |
) |
Payments of contingent
consideration |
|
|
(700 |
) |
|
|
(1,597 |
) |
Net cash provided by (used in)
financing activities |
|
|
105,215 |
|
|
|
(6,178 |
) |
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents |
|
|
(7,200 |
) |
|
|
33,968 |
|
Cash and cash
equivalents – beginning of period |
|
|
38,541 |
|
|
|
47,980 |
|
Cash and cash
equivalents – end of period |
|
$ |
31,341 |
|
|
$ |
81,948 |
|
NV5 GLOBAL, INC. AND SUBSIDIARIESRECONCILIATION OF
NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP FINANCIAL
MEASURES(UNAUDITED)(in thousands) |
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED
EBITDA |
|
|
|
Three Months Ended |
|
|
|
April 1, 2023 |
|
April 2, 2022 |
Net
Income |
$ |
5,947 |
|
|
$ |
8,642 |
|
Add: |
Interest expense |
|
|
1,581 |
|
|
|
914 |
|
|
Income tax expense |
|
|
1,457 |
|
|
|
2,998 |
|
|
Depreciation and
amortization |
|
|
12,302 |
|
|
|
11,167 |
|
|
Stock-based compensation |
|
|
5,826 |
|
|
|
4,789 |
|
|
Acquisition-related
costs* |
|
|
632 |
|
|
|
355 |
|
Adjusted
EBITDA |
$ |
27,745 |
|
|
$ |
28,865 |
|
*
Acquisition-related costs include contingent consideration fair
value adjustments. |
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS |
|
|
Three Months Ended |
|
|
April 1, 2023 |
|
April 2, 2022 |
Net Income
- per diluted share |
$ |
0.39 |
|
|
$ |
0.57 |
|
Per
diluted share adjustments: |
|
|
|
Add: |
Amortization expense of intangible assets and acquisition-related
costs |
|
0.65 |
|
|
|
0.57 |
|
|
Income tax expense |
|
(0.16 |
) |
|
|
(0.15 |
) |
Adjusted
EPS |
$ |
0.88 |
|
|
$ |
0.99 |
|
NV5 Global (NASDAQ:NVEE)
Historical Stock Chart
From Jun 2024 to Jul 2024
NV5 Global (NASDAQ:NVEE)
Historical Stock Chart
From Jul 2023 to Jul 2024