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| Statement |
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| We've also advanced our offshoring of utility and LNG design to enhance our competitive advantage and improve margins |
| Overall, I am pleased to report that business for 2024 is strong |
| The other two segments, the Quantum Spatial has had good double-digit organic growth, and they are more - they're not as dependent on specific federal projects although they do a lot |
| But overall, I think we could do a much better job in organic growth for infrastructure |
| We feel confident in the strength of our balance sheet and believe it positions us well for future growth |
| So we can do better, and we intend to do better in 2024 with the infrastructure organic growth |
| We are also realizing a resurgence in our real estate transaction business, owner representation business, and our environmental service offerings |
| However, we are pleased with the results so far in the quarter |
| We've improved and accelerated the recruiting process to fill open positions faster, but also to enter new areas for our services |
| And surprisingly, our infrastructure group, which is the most impacted by severe weather has done better than expected |
| And in my concluding comments, there are some specific things that are happening right now that we really feel we're in a good position to take advantage of |
| Gross margin expanded 140 basis points as we produced a higher proportion of revenue through internal resources this quarter rather than through sub-consultants |
| But as that resolution goes, then I think we will be well-positioned to move forward |
| And finally, within our software group, we have released new technology platforms that is - that are gaining traction, providing access to a broader market and we are now bundling services capabilities with our software sales to extract the full value of our comprehensive enterprise IT, data analytics and software capabilities |
| We've developed new data acquisition and processing capabilities that provide us with competitive advantages that we've already fielded in '24 |
| Sustainability and climate change initiatives are also driving demand for geospatial data acquisition and analytics that we are uniquely positioned for |
| However, I can say this, and I can't - I don't want to speak too much forward, but we're seeing a - we're very pleased with what has the turnaround that's been made in our real estate business |
| In the U.S., our clean energy and technology businesses led the way with 23% organic growth, supporting clients' energy efficiency and electrification initiatives, as well as audiovisual and technology building retrofits |
| 2024 growth opportunities are bright |
| NV5 is well positioned through our building technology group to take advantage of this opportunity |
| Initiatives that I mentioned earlier and incentives that I mentioned earlier seem to have provided a focus on organic growth, and so we're pleased with the results there |
| We entered '24 having strengthened our position as the nation's leading provider of Geospatial data analytics |
| In the utility services vertical, we were successful in bringing outsourced working into NV5 and our focus in 2024 is advancing organic growth |
| This impressive growth was achieved despite delays in federal contract awards as a result of the continuing resolution status of the Federal Government's budget |
| Our international planning and design business also drove 24% organic growth, supporting renovations and new construction in Asia, and technology and audiovisual design in the Middle East |
| Gross margin expanded 80 basis points as we produced a higher proportion of our revenue through internal resources this year rather than through sub-consultants |
| As you can see, we grew revenue and earnings over full year 2022 |
| We have also strengthened our data acquisition capabilities of our geospatial business with capital expenditures |
| Domestically, our infrastructure services group is off to a very good start in 2024 |
| Let's mention our backlog for future work and it seems to be continuing in a strong growth mode, that's up to $838 million |
| Statement |
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| And as I mentioned, weather on the East Coast and fire hardening on the West Coast |
| Net income was $44.6 million for the year compared to $50 million in the prior year, a decrease of 11% |
| But we have - number one, as I said, our intention is to beat and raise throughout the year, and we also have the uncertainty around the continuing resolution |
| West Coast has had a lot of severe weather since the start of the year |
| So that drags us down a little bit |
| And so we, in '23 did not benefit a lot from those margins |
| Edward Codispoti So that business gets impacted again because that is a full EPC project delivery |
| And I think it was really impacted by two things |
| So the issues that we have as we look at growth, it's just the cyclicality of how the project is being delivered |
| You talked about kind of funding delays for the federal government, U.S |
| It's just that we feel the real estate and CQA is coming back a little quicker than the municipal business |
| We are dependent on the federal government and work that's been delayed because of the continuing resolution |
| Our net leverage was 1.2 times as of the end of the year and has now dropped for two consecutive quarters |
| As a matter of fact, Q4, some of this is tied into, again, the continuing resolution, but our margins in Q4 were not great on the geo side |
| It does dilute the overall geospatial margin so that it's currently in the high teens, 17% range |
| So those are just some of the unique items when you think about cash flow that are affecting us this year |
| And a lot of it is being impacted because of the federal project delays, but it would roughly be a third of the backlog would roughly be a third in geospatial, but it could certainly ramp up if we have the continuing resolution authorized, which really impacts the Geospatial Group |
| And just to add to that, in '22, for example, and historically, those margins were in the 20% range, but more recently in the fourth quarter, for example, with the continuing resolution and also with the integration of the recent VIS acquisition, which, as I mentioned, is coming in at a lower margin |
| And that is - that has been somewhat specific to interest rates, but somewhat dependent on the overall growth of the economy in California, it's come back quite a bit |
| Just on the - you mentioned modest organic growth |
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