NV5 Announces Record Second Quarter Results Exceeds Analy...| MENAFN.COM

Monday, 15 August 2022 07:34 GMT

NV5 Announces Record Second Quarter Results Exceeds Analyst Consensus And Increases Full-Year Guidance


(MENAFN- GlobeNewsWire - Nasdaq)

HOLLYWOOD, Fla., Aug. 04, 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 second quarter ended July 2, 2022.

'NV5 delivered another quarter of double-digit growth in gross revenues, net income, Adjusted EBITDA, and earnings per share in the second quarter, resulting in a record first half of 2022. We drove growth across all six of our operating verticals in the quarter and expanded our national leadership position in electrical utility geospatial solutions with the acquisition of GEO1. We achieved 8% organic growth in the first half of the year. NV5's strong backlog, available cash on hand, and non-discretionary service offerings position us to continue our growth throughout 2022, while protecting our margins,' said Dickerson Wright, PE, Chairman and CEO of NV5.

Second Quarter 2022 Results

  • Gross revenues in the second quarter of 2022 were $202.7 million compared to $179.5 million in the second quarter of 2021, a 13% increase.
  • Net income in the second quarter of 2022 was $17.3 million compared to $13.6 million in the second quarter of 2021, a 27% increase.
  • Adjusted EBITDA in the second quarter of 2022 was $37.8 million compared to $34.2 million in the second quarter of 2021, a 10% increase.
  • GAAP EPS in the second quarter of 2022 was $1.13 per share compared to $0.91 per share in the second quarter of 2021, a 24% increase.
  • Adjusted EPS in the second quarter of 2022 was $1.49 per share compared to $1.34 per share in the second quarter of 2021, an 11% increase. Diluted weighted average shares were 15,232,157 in the second quarter of 2022 compared to 14,965,188 in the second quarter of 2021.

Six Months Ended July 2, 2022 Results

  • Gross revenues for the six months ended July 2, 2022 were $392.9 million compared to $332.6 million in the six months ended July 3, 2021, an 18% increase.
  • Net income for the six months ended July 2, 2022 was $25.9 million compared to $19.1 million in the six months ended July 3, 2021, a 36% increase.
  • Adjusted EBITDA for the six months ended July 2, 2022 was $66.7 million compared to $58.5 million in the six months ended July 3, 2021, a 14% increase.
  • GAAP EPS for the six months ended July 2, 2022 was $1.70 per share compared to $1.35 per share in the six months ended July 3, 2021, a 26% increase.
  • Adjusted EPS for the six months ended July 2, 2022 was $2.48 per share compared to $2.25 per share in the six months ended July 3, 2021, a 10% increase. Diluted weighted average shares were 15,211,835 for the six months ended July 2, 2022, compared to 14,196,035 in the six months ended July 3, 2021.

Increased Full-Year Guidance

  • Increased gross revenues to a range of $795 million to $815 million (previously $785 million to $810 million).
  • Increased GAAP EPS to a range of $3.90 per share to $4.29 per share (previously $3.57 per share to $3.92 per share).
  • Increased Adjusted EPS to a range of $5.43 per share to $5.82 per share (previously $5.39 per share to $5.80 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 second quarter 2022 financial results at 4:30 p.m. (Eastern Time) on August 4, 2022. The accompanying presentation for the call is available by visiting .

Date: Thursday, August 4, 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:

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 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:

Source: NV5 Global, Inc.


NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) 
(in thousands, except share data)

July 2, 2022 January 1, 2022
Assets
Current assets:
Cash and cash equivalents $ 44,422 $ 47,980
Billed receivables, net 139,959 153,814
Unbilled receivables, net 93,486 89,734
Prepaid expenses and other current assets 13,159 12,442
Total current assets 291,026 303,970
Property and equipment, net 39,557 32,729
Right-of-use lease assets, net 40,595 44,260
Intangible assets, net 178,383 188,224
Goodwill 394,760 389,916
Other assets 2,639 2,844
Total Assets $ 946,960 $ 961,943
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 52,310 $ 55,954
Accrued liabilities 51,135 50,461
Billings in excess of costs and estimated earnings on uncompleted contracts 22,625 29,444
Other current liabilities 1,454 1,551
Current portion of contingent consideration 9,772 5,807
Current portion of notes payable and other obligations 18,932 20,734
Total current liabilities 156,228 163,951
Contingent consideration, less current portion 3,020 2,521
Other long-term liabilities 30,564 34,304
Notes payable and other obligations, less current portion 73,839 111,062
Deferred income tax liabilities, net 22,366 25,385
Total liabilities 286,017 337,223
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, 15,537,134 and 15,414,005 shares issued and outstanding as of July 2, 2022 and January 1, 2022, respectively 155 154
Additional paid-in capital 462,066 451,754
Retained earnings 198,722 172,812
Total stockholders' equity 660,943 624,720
Total liabilities and stockholders' equity $ 946,960 $ 961,943


NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)

Three Months Ended Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Gross revenues $ 202,732 $ 179,503 $ 392,885 $ 332,598
Direct costs:
Salaries and wages 47,704 45,025 93,681 86,485
Sub-consultant services 40,479 29,978 75,305 53,225
Other direct costs 15,309 13,114 30,833 22,912
Total direct costs 103,492 88,117 199,819 162,622
Gross profit 99,240 91,386 193,066 169,976
Operating expenses:
Salaries and wages, payroll taxes and benefits 47,283 44,213 97,049 87,164
General and administrative 14,494 13,367 30,881 24,915
Facilities and facilities related 5,195 5,038 10,381 10,135
Depreciation and amortization 9,668 10,216 19,602 19,656
Total operating expenses 76,640 72,834 157,913 141,870
Income from operations 22,600 18,552 35,153 28,106
Interest expense (887 ) (1,568 ) (1,801 ) (3,886 )
Income before income tax expense 21,713 16,984 33,352 24,220
Income tax expense (4,445 ) (3,346 ) (7,442 ) (5,102 )
Net income and comprehensive income $ 17,268 $ 13,638 $ 25,910 $ 19,118
Earnings per share:
Basic $ 1.17 $ 0.95 $ 1.76 $ 1.40
Diluted $ 1.13 $ 0.91 $ 1.70 $ 1.35
Weighted average common shares outstanding:
Basic 14,736,167 14,419,671 14,714,745 13,648,247
Diluted 15,232,157 14,965,188 15,211,835 14,196,035


NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

Six Months Ended
July 2, 2022 July 3, 2021
Cash flows from operating activities:
Net income $ 25,910 $ 19,118
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 22,058 21,936
Non-cash lease expense 6,265 4,884
Provision for doubtful accounts 594 583
Stock-based compensation 9,615 7,790
Change in fair value of contingent consideration (518 ) 235
Gain on disposals of property and equipment (61 ) (581 )
Deferred income taxes (3,014 ) (2,988 )
Amortization of debt issuance costs 370 454
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables 15,152 36,727
Unbilled receivables (3,801 ) (7,238 )
Prepaid expenses and other assets (511 ) (4,208 )
Accounts payable (4,349 ) (2,446 )
Accrued liabilities (6,309 ) (4,187 )
Billings in excess of costs and estimated earnings on uncompleted contracts (6,867 ) (8,158 )
Other current liabilities (276 ) 307
Net cash provided by operating activities 54,258 62,228
Cash flows from investing activities:
Cash paid for acquisitions (net of cash received from acquisitions) (4,670 ) (21,652 )
Proceeds from sale of assets 48 460
Purchase of property and equipment (10,379 ) (4,028 )
Net cash used in investing activities (15,001 ) (25,220 )
Cash flows from financing activities:
Proceeds from common stock offering 172,500
Payments on notes payable (6,218 ) (5,325 )
Payments of contingent consideration (1,597 ) (413 )
Payments of borrowings from Senior Credit Facility (35,000 ) (145,082 )
Payments of common stock offering costs (10,522 )
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation (52 )
Net cash (used in) provided by financing activities (42,815 ) 11,106
Net (decrease) increase in cash and cash equivalents (3,558 ) 48,114
Cash and cash equivalents – beginning of period 47,980 64,909
Cash and cash equivalents – end of period $ 44,422 $ 113,023


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 Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Net Income $ 17,268 $ 13,638 $ 25,910 $ 19,118
Add: Interest expense 887 1,568 1,801 3,886
Income tax expense 4,445 3,346 7,442 5,102
Depreciation and amortization 10,891 11,394 22,058 21,936
Stock-based compensation 4,826 4,094 9,615 7,790
Acquisition-related costs* (506 ) 180 (151 ) 629
Adjusted EBITDA $ 37,811 $ 34,220 $ 66,675 $ 58,461

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


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

Three Months Ended Six Months Ended
July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021
Net Income - per diluted share $ 1.13 $ 0.91 $ 1.70 $ 1.35
Per diluted share adjustments:
Add: Amortization expense of intangible assets and acquisition-related costs 0.50 0.58 1.06 1.21
Income tax expense (0.14 ) (0.15 ) (0.28 ) (0.31 )
Adjusted EPS $ 1.49 $ 1.34 $ 2.48 $ 2.25




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