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

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

Full Year 2021 Financial Highlights

Fiscal Year 2022 Guidance

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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