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NV5 Announces Record Fourth Quarter and Full Year 2021 Results; Exceeds Analysts' Consensus

February 28, 2022

HOLLYWOOD, Fla., Feb. 28, 2022 (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 fourth quarter and full year ended January 1, 2022.

"NV5 delivered another record year for revenues and profitability in 2021, including significant growth in net income, Adjusted EBITDA, Adjusted EBITDA margins, and earnings per share. Increased profitability was driven by the growing scale of our operations as well as our mix of high-margin offerings including utility services, environmental solutions, and energy efficiency. We completed eight strategic acquisitions in 2021 to expand our marine geospatial offering, strengthen our growing energy efficiency and clean energy business, grow our environmental transactions services, and enter the high-growth data center market in the Middle East and Asia. We enter 2022 well-positioned to capture growing client investments in infrastructure, utility reliability and safety, water and natural resources, and clean energy," said Dickerson Wright, PE, Chairman and CEO of NV5.

Fourth Quarter 2021 Financial Highlights

  • Gross revenues in the fourth quarter of 2021 were $188.6 million compared to $161.2 million in the fourth quarter of 2020, a 17% increase.
  • Net income in the fourth quarter of 2021 was $15.5 million compared to $4.6 million in the fourth quarter of 2020, a 238% increase.
  • Adjusted EBITDA in the fourth quarter of 2021 was $39.7 million compared to $24.4 million in the fourth quarter of 2020, a 63% increase.
  • Adjusted EBITDA margin increased to 21.1% in the fourth quarter of 2021 compared to 15.2% in the fourth quarter of 2020.
  • GAAP EPS in the fourth quarter of 2021 was $1.02 per share compared to $0.35 per share in the fourth quarter of 2020, a 191% increase.
  • Adjusted EPS in the fourth quarter of 2021 was $1.61 per share compared to $0.82 per share in the fourth quarter of 2020, a 96% increase. Diluted weighted average shares outstanding were 15,159,314 in the fourth quarter of 2021 compared to 12,922,121 in the fourth quarter of 2020.

Full Year 2021 Financial Highlights

  • Gross revenues in 2021 were $706.7 million compared to $659.3 million in 2020. Fiscal 2021 included 52 weeks compared to fiscal 2020, which included 53 weeks.
  • Net income in 2021 was $47.1 million compared to $21.0 million in 2020, a 124% increase.
  • Adjusted EBITDA in 2021 was $132.9 million compared to $105.4 million in 2020, a 26% increase.
  • Adjusted EBITDA margin increased to 18.8% in 2021 compared to 16.0% in 2020.
  • GAAP EPS in 2021 was $3.22 per share compared to $1.65 per share in 2020, a 95% increase.
  • Adjusted EPS in 2021 was $5.11 per share compared to $3.72 per share in 2020, a 37% increase. Diluted weighted average shares outstanding were 14,656,381 in 2021 compared to 12,713,075 in 2020.
  • Cash flows from operating activities in 2021 were $101.4 million compared to $96.0 million in 2020.

Fiscal Year 2022 Guidance

  • Gross revenues between $773 million and $802 million.
  • GAAP EPS between $3.34 per share and $3.65 per share.
  • Adjusted EPS between $5.39 per share and $5.70 per share.

52/53 Week Fiscal Year

The Company operates on a "52/53 week" fiscal year ending on the Saturday closest to the calendar quarter end. As a result, fiscal 2021 included 52 weeks compared to fiscal 2020, which included 53 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. 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 fourth quarter and full year 2021 financial results at 4:30 p.m. (Eastern Time) on February 28, 2022. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date: Monday, February 28, 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: 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 112 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)

  January 1, 2022   January 2, 2021
Assets      
Current assets:      
Cash and cash equivalents $ 47,980   $ 64,909
Billed receivables, net   153,814     142,705
Unbilled receivables, net   89,734     74,458
Prepaid expenses and other current assets   12,442     6,804
Total current assets   303,970     288,876
Property and equipment, net   32,729     27,011
Right-of-use lease assets, net   44,260     43,607
Intangible assets, net   188,224     174,931
Goodwill   389,916     343,796
Other assets   2,844     2,954
Total Assets $ 961,943   $ 881,175
       
Liabilities and Stockholders’ Equity      
       
Current liabilities:      
Accounts payable $ 55,954   $ 39,989
Accrued liabilities   50,461     45,325
Billings in excess of costs and estimated earnings on uncompleted contracts   29,444     24,962
Client deposits   1,551     380
Current portion of contingent consideration   5,807     1,334
Current portion of notes payable and other obligations   20,734     24,196
Total current liabilities   163,951     136,186
Contingent consideration, less current portion   2,521     1,066
Other long-term liabilities   34,304     38,737
Notes payable and other obligations, less current portion   111,062     283,326
Deferred income tax liabilities, net   25,385     27,791
Total liabilities   337,223     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, 15,414,005 and 13,270,131 shares issued and outstanding as of January 1, 2022 and January 2, 2021, respectively   154     133
Additional paid-in capital   451,754     268,271
Retained earnings   172,812     125,665
Total stockholders’ equity   624,720     394,069
Total liabilities and stockholders’ equity $ 961,943   $ 881,175


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
  January 1, 2022   January 2, 2021   January 1, 2022   January 2, 2021
Gross revenues $ 188,555     $ 161,178     $ 706,706     $ 659,296  
               
Direct costs:              
Salaries and wages   43,417       39,936       175,047       176,865  
Sub-consultant services   35,995       28,929       124,998       107,602  
Other direct costs   11,633       12,519       47,347       40,291  
Total direct costs   91,045       81,384       347,392       324,758  
               
Gross profit   97,510       79,794       359,314       334,538  
               
Operating expenses:              
Salaries and wages, payroll taxes and benefits   45,077       43,360       176,838       176,816  
General and administrative   16,095       12,019       53,986       50,214  
Facilities and facilities related   4,863       5,155       20,193       21,280  
Depreciation and amortization   10,189       9,691       39,953       42,079  
Total operating expenses   76,224       70,225       290,970       290,389  
               
Income from operations   21,286       9,569       68,344       44,149  
               
Interest expense   (878 )     (3,260 )     (6,239 )     (15,181 )
               
Income before income tax expense   20,408       6,309       62,105       28,968  
Income tax expense   (4,953 )     (1,735 )     (14,958 )     (7,950 )
Net income and comprehensive income $ 15,455     $ 4,574     $ 47,147     $ 21,018  
               
Earnings per share:              
Basic $ 1.05     $ 0.37     $ 3.34     $ 1.70  
Diluted $ 1.02     $ 0.35     $ 3.22     $ 1.65  
               
Weighted average common shares outstanding:              
Basic   14,651,218       12,468,444       14,135,333       12,362,786  
Diluted   15,159,314       12,922,121       14,656,381       12,713,075  


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

  Twelve Months Ended
  January 1, 2022   January 2, 2021
Cash flows from operating activities:      
Net income $ 47,147     $ 21,018  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   44,971       45,488  
Non-cash lease expense   10,191       9,469  
Provision for doubtful accounts   1,243       4,311  
Stock-based compensation   16,301       14,955  
Change in fair value of contingent consideration   2,333        
Gain on disposals of property and equipment   (1,102 )     (462 )
Deferred income taxes   (7,007 )     (13,064 )
Amortization of debt issuance costs   1,210       896  
Changes in operating assets and liabilities, net of impact of acquisitions:      
Billed receivables   2,677       (13,592 )
Unbilled receivables   (12,573 )     1,996  
Prepaid expenses and other assets   (4,792 )     4,680  
Accounts payable   8,181       3,367  
Accrued liabilities   (12,507 )     (4,865 )
Billings in excess of costs and estimated earnings on uncompleted contracts   4,005       21,659  
Deposits   1,164       153  
Net cash provided by operating activities   101,442       96,009  
       
Cash flows from investing activities:      
Cash paid for acquisitions (net of cash received from acquisitions)   (67,995 )     (882 )
Proceeds from sale of assets   1,639       1,670  
Purchase of property and equipment   (13,903 )     (9,855 )
Net cash used in investing activities   (80,259 )     (9,067 )
       
Cash flows from financing activities:      
Borrowings from Senior Credit Facility   138,750        
Proceeds from common stock offering   172,500        
Payments of borrowings from Senior Credit Facility   (323,832 )     (36,625 )
Payments on notes payable   (12,516 )     (15,207 )
Payments of contingent consideration   (1,329 )     (1,579 )
Payments of common stock offering costs   (10,657 )      
Payments of debt issuance costs   (976 )     (447 )
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation   (52 )      
Net cash used in financing activities   (38,112 )     (53,858 )
       
Net (decrease) increase in cash and cash equivalents   (16,929 )     33,084  
Cash and cash equivalents – beginning of period   64,909       31,825  
Cash and cash equivalents – end of period $ 47,980     $ 64,909  


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
    January 1, 2022   January 2, 2021   January 1, 2022   January 2, 2021
Net Income $ 15,455   $ 4,574   $ 47,147   $ 21,018
Add: Interest expense   878     3,260     6,239     15,181
  Income tax expense   4,953     1,735     14,958     7,950
  Depreciation and amortization   11,574     10,808     44,971     45,488
  Stock-based compensation   4,214     4,055     16,301     14,955
  Acquisition-related costs*   2,667     11     3,274     856
Adjusted EBITDA $ 39,741   $ 24,443   $ 132,890   $ 105,448

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

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

    Three Months Ended   Twelve Months Ended
    January 1, 2022   January 2, 2021   January 1, 2022   January 2, 2021
Net Income - per diluted share $ 1.02     $ 0.35     $ 3.22     $ 1.65  
Per diluted share adjustments:              
Add: Amortization expense of intangible assets and acquisition-related costs   0.74       0.63       2.51       2.79  
  Income tax expense   (0.15 )     (0.16 )     (0.62 )     (0.72 )
Adjusted EPS $ 1.61     $ 0.82     $ 5.11     $ 3.72  


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Source: NV5 Global, Inc.

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