HOLLYWOOD, Fla., Nov. 09, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of compliance, technology, and engineering consulting solutions, today reported financial results for the third quarter ended October 2, 2021.
"NV5 delivered another strong quarter, generating record revenues and net income in the third quarter and year to date in 2021. The core business’ year-over-year double digit revenue growth is a testament to the success of NV5’s strategic business model, resulting in sustainable growth and margin expansion," said Dickerson Wright, PE, Chairman and CEO of NV5. "Growth in the quarter was largely driven by demand for utility, real estate, and environmental, social, and governance (ESG) services. We continued to strengthen our ESG capabilities in the third quarter with the acquisition of Sage Renewable Energy Consulting, a leader in comprehensive sustainable energy planning and project management services. We enter the fourth quarter and 2022 with a record backlog that increased 13% for the quarter."
Third Quarter 2021
Results
- Gross revenues in the third quarter of 2021 were $185.6 million compared to $169.9 million in the third quarter of 2020, a 9% increase.
- Net income in the third quarter of 2021 was $12.6 million compared to $7.8 million in the third quarter of 2020, a 62% increase.
- Adjusted EBITDA in the third quarter of 2021 was $34.7 million compared to $29.9 million in the third quarter of 2020, a 16% increase.
- GAAP EPS in the third quarter of 2021 was $0.83 per share compared to $0.61 per share in the third quarter of 2020, a 36% increase.
- Adjusted EPS in the third quarter of 2021 was $1.25 per share compared to $1.13 per share in the third quarter of 2020, an 11% increase. Diluted weighted average shares were 15,069,660 in the third quarter of 2021 compared to 12,749,917 in the third quarter of 2020.
- Updated full year 2021 guidance as follows:
- Increase GAAP EPS to a range of $2.60 per share to $2.91 per share (previously $2.45 per share to $2.84 per share).
- Increase Adjusted EPS to a range of $4.36 per share to $4.62 per share (previously $4.20 per share to $4.55 per share).
Nine Months Ended October 2, 2021 Results
- Gross revenues for the nine months ended October 2, 2021 were $518.2 million compared to $498.1 million in the nine months ended October 3, 2020, a 4% increase.
- Cash flows from operations for the nine months ended October 2, 2021 were $78.1 million compared to $72.4 million in nine months ended October 3, 2020, an 8% increase.
- Net income for the nine months ended October 2, 2021 was $31.7 million compared to $16.4 million in nine months ended October 3, 2020, a 93% increase.
- Adjusted EBITDA for the nine months ended October 2, 2021 was $93.1 million compared to $81.0 million in the nine months ended October 3, 2020, a 15% increase.
- GAAP EPS for the nine months ended October 2, 2021 was $2.19 per share compared to $1.30 per share in the nine months ended October 3, 2020, a 68% increase.
- Adjusted EPS for the nine months ended October 2, 2021 was $3.50 per share compared to $2.91 per share in the nine months ended October 3, 2020, a 20% increase. Diluted weighted average shares were 14,486,683 for the nine months ended October 2, 2021 compared to 12,650,107 in the nine months ended October 3, 2020.
Fiscal Year
The Company operates on a “52/53 week” fiscal year ending on the Saturday closest to the calendar quarter end, and fiscal 2021 contains 52 weeks compared to fiscal 2020, which contained 53 weeks. As a result, the third quarter of fiscal 2021 ended October 2, 2021 included 13 weeks compared to the third quarter of fiscal 2020 ended October 3, 2020, which included 14 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.
Conference Call
NV5 will host a conference call to discuss its third quarter 2021 financial results at 4:30 p.m. (Eastern Time) on November 9, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
|
Date:
|
Tuesday, November 9, 2021 |
|
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 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: [email protected]
Source: NV5 Global, Inc.
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)
| |
October 2, 2021
|
|
January 2, 2021
|
|
Assets
|
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
121,397 |
|
|
$ |
64,909 |
|
| Billed receivables, net |
129,781 |
|
|
142,705 |
|
| Unbilled receivables, net |
86,399 |
|
|
74,458 |
|
| Prepaid expenses and other current assets |
10,529 |
|
|
6,804 |
|
| Total current assets |
348,106 |
|
|
288,876 |
|
| Property and equipment, net |
29,323 |
|
|
27,011 |
|
| Right-of-use lease assets, net |
44,866 |
|
|
43,607 |
|
| Intangible assets, net |
168,497 |
|
|
174,931 |
|
| Goodwill |
366,200 |
|
|
343,796 |
|
| Other assets |
3,892 |
|
|
2,954 |
|
| Total Assets |
$ |
960,884 |
|
|
$ |
881,175 |
|
| |
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
| |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
42,272 |
|
|
$ |
39,989 |
|
| Accrued liabilities |
55,251 |
|
|
45,325 |
|
| Billings in excess of costs and estimated earnings on uncompleted contracts |
16,730 |
|
|
24,962 |
|
| Client deposits |
620 |
|
|
380 |
|
| Current portion of contingent consideration |
3,406 |
|
|
1,334 |
|
| Current portion of notes payable and other obligations |
17,526 |
|
|
24,196 |
|
| Total current liabilities |
135,805 |
|
|
136,186 |
|
| Contingent consideration, less current portion |
1,531 |
|
|
1,066 |
|
| Other long-term liabilities |
40,410 |
|
|
38,737 |
|
| Notes payable and other obligations, less current portion |
149,862 |
|
|
283,326 |
|
| Deferred income tax liabilities, net |
29,154 |
|
|
27,791 |
|
| Total liabilities |
356,762 |
|
|
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, 15,401,051 and 13,270,131 shares issued and outstanding as of October 2, 2021 and January 2, 2021, respectively |
154 |
|
|
133 |
|
| Additional paid-in capital |
446,612 |
|
|
268,271 |
|
| Retained earnings |
157,356 |
|
|
125,665 |
|
| Total stockholders’ equity |
604,122 |
|
|
394,069 |
|
| Total liabilities and stockholders’ equity |
$ |
960,884 |
|
|
$ |
881,175 |
|
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
| |
Three Months Ended
|
|
Nine Months Ended
|
| |
October 2, 2021
|
|
October 3, 2020
|
|
October 2, 2021
|
|
October 3, 2020
|
|
Gross revenues
|
$ |
185,553 |
|
|
$ |
169,949 |
|
|
$ |
518,151 |
|
|
$ |
498,118 |
|
| |
|
|
|
|
|
|
|
|
Direct costs:
|
|
|
|
|
|
|
|
| Salaries and wages |
45,145 |
|
|
46,815 |
|
|
131,630 |
|
|
136,929 |
|
| Sub-consultant services |
35,779 |
|
|
26,003 |
|
|
89,003 |
|
|
78,673 |
|
| Other direct costs |
12,802 |
|
|
10,370 |
|
|
35,714 |
|
|
27,771 |
|
| Total direct costs |
93,726 |
|
|
83,188 |
|
|
256,347 |
|
|
243,373 |
|
| |
|
|
|
|
|
|
|
|
Gross profit
|
91,827 |
|
|
86,761 |
|
|
261,804 |
|
|
254,745 |
|
| |
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
| Salaries and wages, payroll taxes and benefits |
44,597 |
|
|
43,750 |
|
|
131,761 |
|
|
133,456 |
|
| General and administrative |
12,978 |
|
|
13,216 |
|
|
37,891 |
|
|
38,196 |
|
| Facilities and facilities related |
5,194 |
|
|
5,370 |
|
|
15,330 |
|
|
16,125 |
|
| Depreciation and amortization |
10,108 |
|
|
10,187 |
|
|
29,764 |
|
|
32,387 |
|
| Total operating expenses |
72,877 |
|
|
72,523 |
|
|
214,746 |
|
|
220,164 |
|
| |
|
|
|
|
|
|
|
|
Income from operations
|
18,950 |
|
|
14,238 |
|
|
47,058 |
|
|
34,581 |
|
| |
|
|
|
|
|
|
|
|
Interest expense
|
(1,475 |
) |
|
(3,731 |
) |
|
(5,362 |
) |
|
(11,921 |
) |
| |
|
|
|
|
|
|
|
| Income before income tax expense |
17,475 |
|
|
10,507 |
|
|
41,696 |
|
|
22,660 |
|
| Income tax expense |
(4,902 |
) |
|
(2,753 |
) |
|
(10,005 |
) |
|
(6,215 |
) |
|
Net income and comprehensive income
|
$ |
12,573 |
|
|
$ |
7,754 |
|
|
$ |
31,691 |
|
|
$ |
16,445 |
|
| |
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
| Basic |
$ |
0.86 |
|
|
$ |
0.62 |
|
|
$ |
2.27 |
|
|
$ |
1.33 |
|
| Diluted |
$ |
0.83 |
|
|
$ |
0.61 |
|
|
$ |
2.19 |
|
|
$ |
1.30 |
|
| |
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
| Basic |
14,593,623 |
|
|
12,434,600 |
|
|
13,963,372 |
|
|
12,328,448 |
|
| Diluted |
15,069,660 |
|
|
12,749,917 |
|
|
14,486,683 |
|
|
12,650,107 |
|
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
| |
Nine Months Ended
|
| |
October 2, 2021
|
|
October 3, 2020
|
|
Cash flows from operating activities:
|
|
|
|
| Net income |
$ |
31,691 |
|
|
$ |
16,445 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Depreciation and amortization |
33,397 |
|
|
34,680 |
|
| Non-cash lease expense |
7,941 |
|
|
6,731 |
|
| Provision for doubtful accounts |
1,077 |
|
|
3,127 |
|
| Stock-based compensation |
12,087 |
|
|
10,900 |
|
| Change in fair value of contingent consideration |
(67 |
) |
|
— |
|
| Gain on disposals of property and equipment |
(1,059 |
) |
|
(394 |
) |
| Deferred income taxes |
(4,318 |
) |
|
(5,905 |
) |
| Amortization of debt issuance costs |
1,024 |
|
|
669 |
|
| Changes in operating assets and liabilities, net of impact of acquisitions: |
|
|
|
| Billed receivables |
16,728 |
|
|
8,089 |
|
| Unbilled receivables |
(10,024 |
) |
|
(7,505 |
) |
| Prepaid expenses and other assets |
(4,160 |
) |
|
2,171 |
|
| Accounts payable |
1,366 |
|
|
(2,780 |
) |
| Accrued liabilities |
403 |
|
|
322 |
|
| Billings in excess of costs and estimated earnings on uncompleted contracts |
(8,233 |
) |
|
5,706 |
|
| Deposits |
218 |
|
|
163 |
|
| Net cash provided by operating activities |
78,071 |
|
|
72,419 |
|
| |
|
|
|
|
Cash flows from investing activities:
|
|
|
|
| Cash paid for acquisitions (net of cash received from acquisitions) |
(23,569 |
) |
|
(882 |
) |
| Proceeds from sale of assets |
843 |
|
|
1,053 |
|
| Purchase of property and equipment |
(6,714 |
) |
|
(8,342 |
) |
| Net cash used in investing activities |
(29,440 |
) |
|
(8,171 |
) |
| |
|
|
|
|
Cash flows from financing activities:
|
|
|
|
| Borrowings from Senior Credit Facility |
138,750 |
|
|
— |
|
| Proceeds from common stock offering |
172,500 |
|
|
— |
|
| Payments on notes payable |
(7,299 |
) |
|
(9,941 |
) |
| Payments of contingent consideration |
(663 |
) |
|
(913 |
) |
| Payments of borrowings from Senior Credit Facility |
(283,832 |
) |
|
(20,750 |
) |
| Payments of common stock offering costs |
(10,657 |
) |
|
— |
|
| Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation |
(52 |
) |
|
— |
|
| Payments of debt issuance costs |
(890 |
) |
|
(447 |
) |
| Net cash provided by (used in) financing activities |
7,857 |
|
|
(32,051 |
) |
| |
|
|
|
|
Net increase in cash and cash equivalents
|
56,488 |
|
|
32,197 |
|
|
Cash and cash equivalents – beginning of period
|
64,909 |
|
|
31,825 |
|
|
Cash and cash equivalents – end of period
|
$ |
121,397 |
|
|
$ |
64,022 |
|
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
|
|
Nine Months Ended
|
| |
|
October 2, 2021
|
|
October 3, 2020
|
|
October 2, 2021
|
|
October 3, 2020
|
|
Net Income
|
$
|
12,573
|
|
|
$
|
7,754
|
|
|
$
|
31,691
|
|
|
$
|
16,445
|
|
| Add: |
Interest expense |
1,475 |
|
|
3,731 |
|
|
5,362 |
|
|
11,921 |
|
| |
Income tax expense |
4,902 |
|
|
2,753 |
|
|
10,005 |
|
|
6,215 |
|
| |
Depreciation and amortization |
11,461 |
|
|
11,401 |
|
|
33,397 |
|
|
34,680 |
|
| |
Stock-based compensation |
4,297 |
|
|
4,020 |
|
|
12,087 |
|
|
10,900 |
|
| |
Acquisition-related costs* |
(23 |
) |
|
274 |
|
|
607 |
|
|
845 |
|
|
Adjusted EBITDA
|
$
|
34,685
|
|
|
$
|
29,933
|
|
|
$
|
93,149
|
|
|
$
|
81,006
|
|
* Acquisition-related costs includes contingent consideration fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
| |
|
Three Months Ended
|
|
Nine Months Ended
|
| |
|
October 2, 2021
|
|
October 3, 2020
|
|
October 2, 2021
|
|
October 3, 2020
|
|
Net Income - per diluted share
|
$
|
0.83
|
|
|
$
|
0.61
|
|
|
$
|
2.19
|
|
|
$
|
1.30
|
|
|
Per diluted share adjustments:
|
|
|
|
|
|
|
|
| Add: |
Amortization expense of intangible assets and acquisition-related costs |
0.57 |
|
|
0.70 |
|
|
1.77 |
|
|
2.16 |
|
| |
Income tax expense |
(0.15 |
) |
|
(0.18 |
) |
|
(0.46 |
) |
|
(0.55 |
) |
|
Adjusted EPS
|
$
|
1.25
|
|
|
$
|
1.13
|
|
|
$
|
3.50
|
|
|
$
|
2.91
|
|
Source: NV5 Global, Inc.