HOLLYWOOD, Fla., Feb. 22, 2024 (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 fourth quarter and full year ended December 30, 2023.
“NV5 delivered strong results in the fourth quarter and 14% growth over the same period in 2022, despite headwinds from continuing resolution federal project delays. Our growth initiatives in the core business are driving growth in infrastructure and transportation, and our buildings business continues to deliver strong organic growth both domestically and internationally. We completed seven acquisitions in 2023, including the expansion of our geospatial data analytics and software offerings to increase subscription-based revenues. These strategic actions taken in 2023 have positioned NV5 for accelerated organic growth in 2024, and we are well positioned to achieve our $1 billion revenue run rate by the end of the year,” said Dickerson Wright, PE, Chairman and CEO of NV5.
Fourth Quarter 2023 Financial Highlights
Gross revenues in the fourth quarter of 2023 were $215.5 million compared to $189.8 million in the fourth quarter of 2022, a 14% increase, building strong organic growth momentum.
Net income in the fourth quarter of 2023 was $9.9 million compared to $8.0 million in the fourth quarter of 2022, a 24% increase.
Adjusted EBITDA in the fourth quarter of 2023 was $37.3 million compared to $32.5 million in the fourth quarter of 2022, a 15% increase.
GAAP EPS in the fourth quarter of 2023 was $0.64 per share compared to $0.52 per share in the fourth quarter of 2022, a 23% increase. Diluted weighted average shares outstanding were 15,549,654 in the fourth quarter of 2023 compared to 15,320,123 in the fourth quarter of 2022.
Adjusted EPS in the fourth quarter of 2023 was $1.14 per share compared to $1.21 per share in the fourth quarter of 2022, a 6% decrease. Diluted weighted average shares outstanding were 15,549,654 in the fourth quarter of 2023 compared to 15,320,123 in the fourth quarter of 2022.
Cash flows from operating activities in the fourth quarter of 2023 were $16,772 compared to $13,589 in the fourth quarter of 2022, a 23% increase.
Full Year 2023 Financial Highlights
Gross revenues in 2023 were $861.7 million compared to $786.8 million in 2022, a 10% increase.
Net income in 2023 was $44.6 million compared to $50.0 million in 2022, an 11% decrease.
Interest expense increased $9.2 million due to higher interest rates and debt related to acquisitions. We have lowered our net leverage to 1.2x, a decrease of 14% when compared to the second quarter of 2023.
Adjusted EBITDA in 2023 was $137.9 million compared to $135.2 million in 2022, a 2% increase.
GAAP EPS in 2023 was $2.88 per share compared to $3.27 per share in 2022, a 12% decrease. Diluted weighted average shares outstanding were 15,474,326 in 2023 compared to 15,260,186 in 2022.
Adjusted EPS in 2023 was $4.81 per share compared to $5.19 per share in 2022, a 7% decrease. Diluted weighted average shares outstanding were 15,474,326 in 2023 compared to 15,260,186 in 2022.
Fiscal Year 2024 Guidance
Gross revenues between $930 million and $935 million.
GAAP EPS between $2.86 per share and $2.92 per share.
Adjusted EPS between $5.00 and $5.06 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 and acquisition-related costs, net of tax benefits. 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 full year 2023 financial results at 4:30 p.m. (Eastern Time) on February 22, 2024. The accompanying presentation for the call is available by visiting 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, consulting solutions, and software applications 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)
December 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
44,824
$
38,541
Billed receivables, net
152,593
145,637
Unbilled receivables, net
113,271
92,862
Prepaid expenses and other current assets
18,376
13,636
Total current assets
329,064
290,676
Property and equipment, net
50,268
41,640
Right-of-use lease assets, net
36,836
39,314
Intangible assets, net
226,702
160,431
Goodwill
524,573
400,957
Other assets
3,149
2,705
Total Assets
$
1,170,592
$
935,723
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
54,865
$
57,771
Accrued liabilities
47,423
44,313
Billings in excess of costs and estimated earnings on uncompleted contracts
41,679
31,183
Other current liabilities
2,263
1,597
Current portion of contingent consideration
3,922
10,854
Current portion of notes payable and other obligations
9,267
15,176
Total current liabilities
159,419
160,894
Contingent consideration, less current portion
143
4,481
Other long-term liabilities
26,930
29,542
Notes payable and other obligations, less current portion
205,468
39,673
Deferred income tax liabilities, net
2,837
6,893
Total liabilities
394,797
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, 15,895,255 and 15,523,300 shares issued and outstanding as of December 30, 2023 and December 31, 2022, respectively
159
155
Additional paid-in capital
508,256
471,300
Accumulated other comprehensive income (loss)
(18
)
—
Retained earnings
267,398
222,785
Total stockholders’ equity
775,795
694,240
Total liabilities and stockholders’ equity
$
1,170,592
$
935,723
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
Three Months Ended
Twelve Months Ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Gross revenues
$
215,497
$
189,818
$
861,739
$
786,778
Direct costs:
Salaries and wages
53,291
44,830
215,608
186,806
Sub-consultant services
37,854
37,084
150,681
153,641
Other direct costs
15,732
14,931
65,088
60,357
Total direct costs
106,877
96,845
431,377
400,804
Gross profit
108,620
92,973
430,362
385,974
Operating expenses:
Salaries and wages, payroll taxes, and benefits
54,254
46,769
226,137
193,488
General and administrative
17,941
18,501
67,668
66,114
Facilities and facilities related
5,683
5,431
22,891
21,252
Depreciation and amortization
14,060
9,565
52,486
38,938
Total operating expenses
91,938
80,266
369,182
319,792
Income from operations
16,682
12,707
61,180
66,182
Interest expense
(3,859
)
(1,005
)
(12,970
)
(3,808
)
Income before income tax expense
12,823
11,702
48,210
62,374
Income tax expense
(2,888
)
(3,702
)
(3,597
)
(12,401
)
Net income
$
9,935
$
8,000
$
44,613
$
49,973
Earnings per share:
Basic
$
0.65
$
0.54
$
2.96
$
3.39
Diluted
$
0.64
$
0.52
$
2.88
$
3.27
Weighted average common shares outstanding:
Basic
15,236,465
14,816,773
15,086,040
14,753,738
Diluted
15,549,654
15,320,123
15,474,326
15,260,186
Comprehensive income:
Net income
$
9,935
$
8,000
$
44,613
$
49,973
Foreign currency translation gain (loss), net of tax
593
—
(18
)
—
Comprehensive income
$
10,528
$
8,000
$
44,595
$
49,973
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Twelve Months Ended
December 30, 2023
December 31, 2022
Cash flows from operating activities:
Net income
$
44,613
$
49,973
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
58,020
44,063
Non-cash lease expense
13,562
12,813
Provision for doubtful accounts
1,261
(60
)
Stock-based compensation
22,379
19,326
Change in fair value of contingent consideration
(9,280
)
2,972
Gain on disposals of property and equipment
(694
)
(328
)
Other
(125
)
—
Deferred income taxes
(25,709
)
(18,492
)
Amortization of debt issuance costs
758
724
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables
7,584
10,212
Unbilled receivables
(15,666
)
(3,303
)
Prepaid expenses and other assets
(2,292
)
(1,125
)
Accounts payable
(8,470
)
(1,673
)
Accrued liabilities and other long-term liabilities
(19,848
)
(19,901
)
Contingent consideration
(1,307
)
(800
)
Billings in excess of costs and estimated earnings on uncompleted contracts
(3,243
)
(296
)
Other current liabilities
664
(125
)
Net cash provided by operating activities
62,207
93,980
Cash flows from investing activities:
Cash paid for acquisitions (net of cash received from acquisitions)
(189,345
)
(5,908
)
Proceeds from sale of assets
720
87
Purchase of property and equipment
(17,166
)
(15,689
)
Net cash used in investing activities
(205,791
)
(21,510
)
Cash flows from financing activities:
Borrowings from Senior Credit Facility
188,000
—
Payments of borrowings from Senior Credit Facility
(26,000
)
(65,000
)
Payments on notes payable
(11,071
)
(15,445
)
Payments of contingent consideration
(993
)
(1,464
)
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
149,855
(81,909
)
Effect of exchange rate changes on cash and cash equivalents
12
—
Net increase (decrease) in cash and cash equivalents
6,283
(9,439
)
Cash and cash equivalents – beginning of period
38,541
47,980
Cash and cash equivalents – end of period
$
44,824
$
38,541
NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION 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
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Net Income
$
9,935
$
8,000
$
44,613
$
49,973
Add:
Interest expense
3,859
1,005
12,970
3,808
Income tax expense
2,888
3,702
3,597
12,401
Depreciation and amortization
15,522
10,972
58,020
44,063
Stock-based compensation
5,875
4,077
22,379
19,326
Acquisition-related costs*
(731
)
4,720
(3,706
)
5,612
Adjusted EBITDA
$
37,348
$
32,476
$
137,873
$
135,183
* Acquisition-related costs include contingent consideration fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
Three Months Ended
Twelve Months Ended
December 30, 2023
December 31, 2022
December 30, 2023
December 31, 2022
Net Income - per diluted share
$
0.64
$
0.52
$
2.88
$
3.27
Per diluted share adjustments:
Add:
Amortization expense of intangible assets
0.76
0.52
2.82
2.12
Acquisition-related costs*
(0.06
)
0.30
(0.14
)
0.36
Income tax expense
(0.20
)
(0.13
)
(0.75
)
(0.56
)
Adjusted EPS
$
1.14
$
1.21
$
4.81
$
5.19
* Acquisition-related costs include contingent consideration fair value adjustments.
