HOLLYWOOD, Fla., May 12, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a leading provider of compliance, technology, and engineering consulting solutions, today reported financial results for the first quarter ended April 3, 2021.
“We are pleased with our first quarter performance, which generated $48 million in cash flows from operations and delivered increases in net income, adjusted EBITDA margins, and earnings per share. These positive results were accomplished despite weather-related project delays that significantly postponed projects in the quarter. The COVID-19 pandemic also limited revenue generation for some of our services. Demand for our utility, infrastructure, and public sector services continues to be strong, driving a 5% increase in our backlog for the quarter. We anticipate increased growth opportunities as the economy continues to open throughout the year. In addition, the strength of our balance sheet allows us to invest in acquisitions that support our platform and expand our high-margin offerings,” said Dickerson Wright, PE, Chairman and CEO of NV5.
First Quarter 2021 Results
- Resume full year 2021 guidance as follows:
- Increase gross revenues to $695 million to $720 million
- Increase GAAP EPS to $2.36 per share to $2.78 per share
- Increase Adjusted EPS to $4.05 per share to $4.45 per share
- Gross revenues were $153.1 million compared to $165.5 million in the pre-pandemic first quarter of 2020.
- Cash flows from operations for the first quarter of 2021 were $48.2 million, more than three times the cash flows from operations in the first quarter of 2020 of $13.6 million.
- Completed a secondary offering for which the Company received $141.0 million in net proceeds.
- Reduced debt by $135.2 million, bringing net leverage to 0.8x funded by strong cash flows from operations and secondary offering proceeds.
- Net income grew by 31% in the first quarter of 2021 to $5.5 million compared to $4.2 million in the first quarter of 2020.
- Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew in the first quarter of 2021 to $24.2 million compared to $24.1 million in the first quarter of 2020.
- GAAP EPS in the first quarter of 2021 was $0.41 per share compared to $0.33 per share in the first quarter of 2020, a 24% increase.
- Adjusted EPS in the first quarter of 2021 was $0.88 per share compared to $0.84 per share in the first quarter of 2020, a 5% increase. Diluted weighted average shares were 13,429,102 in the first quarter of 2021 compared to 12,593,788 in the first quarter of 2020.
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 first quarter 2021 financial results at 4:30 p.m. (Eastern Time) on May 12, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
| Date: | Wednesday, May 12, 2021 |
| Time: | 4:30 p.m. Eastern |
| Toll-free dial-in number: | +1 833-900-1538 |
| International dial-in number: | +1 236-712-2278 |
| Conference ID: | 2088906 |
| 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, and engineering consulting solutions for public and private sector clients supporting infrastructure, utility, and building assets and systems. The Company primarily focuses on six business verticals: testing, inspection & consulting, infrastructure engineering, utility services, buildings & program management, environmental health sciences, and geospatial services. NV5 operates out of more than 106 offices nationwide and abroad. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.
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) | |||||||
| April 3, 2021 | January 2, 2021 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 92,925 | $ | 64,909 | |||
| Billed receivables, net | 108,921 | 142,705 | |||||
| Unbilled receivables, net | 72,967 | 74,458 | |||||
| Prepaid expenses and other current assets | 8,085 | 6,804 | |||||
| Total current assets | 282,898 | 288,876 | |||||
| Property and equipment, net | 29,143 | 27,011 | |||||
| Right-of-use lease assets, net | 42,419 | 43,607 | |||||
| Intangible assets, net | 179,711 | 174,931 | |||||
| Goodwill | 359,101 | 343,796 | |||||
| Other assets | 3,059 | 2,954 | |||||
| Total Assets | $ | 896,331 | $ | 881,175 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 34,014 | $ | 39,989 | |||
| Accrued liabilities | 53,797 | 45,325 | |||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 17,721 | 24,962 | |||||
| Client deposits | 480 | 380 | |||||
| Current portion of contingent consideration | 3,423 | 1,334 | |||||
| Current portion of notes payable and other obligations | 26,896 | 24,196 | |||||
| Total current liabilities | 136,331 | 136,186 | |||||
| Contingent consideration, less current portion | 697 | 1,066 | |||||
| Other long-term liabilities | 37,841 | 38,737 | |||||
| Notes payable and other obligations, less current portion | 145,443 | 283,326 | |||||
| Deferred income tax liabilities, net | 28,830 | 27,791 | |||||
| Total liabilities | 349,142 | 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, 14,933,927 and 13,270,131 shares issued and outstanding as of April 3, 2021 and January 2, 2021, respectively | 149 | 133 | |||||
| Additional paid-in capital | 415,895 | 268,271 | |||||
| Retained earnings | 131,145 | 125,665 | |||||
| Total stockholders’ equity | 547,189 | 394,069 | |||||
| Total liabilities and stockholders’ equity | $ | 896,331 | $ | 881,175 | |||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME | |||||||
| (UNAUDITED) | |||||||
| (in thousands, except share data) | |||||||
| Three Months Ended | |||||||
| April 3, 2021 | March 28, 2020 | ||||||
| Gross revenues | $ | 153,095 | $ | 165,480 | |||
| Direct costs: | |||||||
| Salaries and wages | 41,459 | 45,034 | |||||
| Sub-consultant services | 23,246 | 27,427 | |||||
| Other direct costs | 9,798 | 8,487 | |||||
| Total direct costs | 74,503 | 80,948 | |||||
| Gross profit | 78,592 | 84,532 | |||||
| Operating expenses: | |||||||
| Salaries and wages, payroll taxes and benefits | 42,951 | 45,556 | |||||
| General and administrative | 11,549 | 13,157 | |||||
| Facilities and facilities related | 5,097 | 5,397 | |||||
| Depreciation and amortization | 9,440 | 11,040 | |||||
| Total operating expenses | 69,037 | 75,150 | |||||
| Income from operations | 9,555 | 9,382 | |||||
| Interest expense | (2,318 | ) | (3,788 | ) | |||
| Income before income tax expense | 7,237 | 5,594 | |||||
| Income tax expense | (1,757 | ) | (1,406 | ) | |||
| Net income and comprehensive income | $ | 5,480 | $ | 4,188 | |||
| Earnings per share: | |||||||
| Basic | $ | 0.43 | $ | 0.34 | |||
| Diluted | $ | 0.41 | $ | 0.33 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 12,876,822 | 12,233,477 | |||||
| Diluted | 13,429,102 | 12,593,788 | |||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (UNAUDITED) | |||||||
| (in thousands) | |||||||
| Three Months Ended | |||||||
| April 3, 2021 | March 28, 2020 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 5,480 | $ | 4,188 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 10,542 | 11,040 | |||||
| Non-cash lease expense | 2,161 | 1,704 | |||||
| Provision for doubtful accounts | (536 | ) | 215 | ||||
| Stock-based compensation | 3,696 | 3,379 | |||||
| Change in fair value of contingent consideration | 209 | — | |||||
| Gain on disposals of property and equipment | (530 | ) | (339 | ) | |||
| Deferred income taxes | (2,282 | ) | (1,614 | ) | |||
| Amortization of debt issuance costs | 227 | 220 | |||||
| Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
| Billed receivables | 36,037 | 6,053 | |||||
| Unbilled receivables | 2,032 | (7,764 | ) | ||||
| Prepaid expenses and other assets | (1,114 | ) | 1,962 | ||||
| Accounts payable | (6,332 | ) | 44 | ||||
| Accrued liabilities | 2,629 | (8,061 | ) | ||||
| Income taxes payable | 3,085 | 1,365 | |||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | (7,241 | ) | 1,204 | ||||
| Deposits | 92 | 7 | |||||
| Net cash provided by operating activities | 48,155 | 13,603 | |||||
| Cash flows from investing activities: | |||||||
| Cash paid for acquisitions (net of cash received from acquisitions) | (15,007 | ) | — | ||||
| Proceeds from sale of assets | 460 | 425 | |||||
| Purchase of property and equipment | (1,470 | ) | (4,525 | ) | |||
| Net cash used in investing activities | (16,017 | ) | (4,100 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from common stock offering | 150,000 | — | |||||
| Payments on notes payable | (1,669 | ) | (2,116 | ) | |||
| Payments of contingent consideration | (150 | ) | (650 | ) | |||
| Payments of borrowings from Senior Credit Facility | (143,207 | ) | — | ||||
| Payments of common stock offering costs | (9,044 | ) | — | ||||
| Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation | (52 | ) | — | ||||
| Payments of debt issuance costs | — | (236 | ) | ||||
| Net cash used in financing activities | (4,122 | ) | (3,002 | ) | |||
| Net increase in cash and cash equivalents | 28,016 | 6,501 | |||||
| Cash and cash equivalents – beginning of period | 64,909 | 31,825 | |||||
| Cash and cash equivalents – end of period | $ | 92,925 | $ | 38,326 | |||
| 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 | ||||||||
| April 3, 2021 | March 28, 2020 | |||||||
| Net Income | $ | 5,480 | $ | 4,188 | ||||
| Add: | Interest expense | 2,318 | 3,788 | |||||
| Income tax expense | 1,757 | 1,406 | ||||||
| Depreciation and amortization | 10,542 | 11,040 | ||||||
| Stock-based compensation | 3,696 | 3,379 | ||||||
| Acquisition-related costs | 449 | 340 | ||||||
| Adjusted EBITDA | $ | 24,242 | $ | 24,141 | ||||
| RECONCILIATION OF GAAP EPS TO ADJUSTED EPS | ||||||||
| Three Months Ended | ||||||||
| April 3, 2021 | March 28, 2020 | |||||||
| Net Income - per diluted share | $ | 0.41 | $ | 0.33 | ||||
| Per diluted share adjustments: | ||||||||
| Add: | Amortization expense of intangible assets and acquisition-related costs | 0.63 | 0.69 | |||||
| Income tax expense | (0.16 | ) | (0.18 | ) | ||||
| Adjusted EPS | $ | 0.88 | $ | 0.84 | ||||
