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NV5 Announces Record Third Quarter Results; Exceeds Analyst Consensus
المصدر: Nasdaq GlobeNewswire / 09 نوفمبر 2021 16:01:01 America/New_York
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: ir@nv5.comSource: 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 
