(UNAUDITED)
(in thousands)
| Twelve Months Ended | |||||||
| December 31, 2022 | January 1, 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 49,973 | $ | 47,147 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 44,063 | 44,971 | |||||
| Non-cash lease expense | 12,813 | 10,191 | |||||
| Provision for doubtful accounts | (60 | ) | 1,243 | ||||
| Stock-based compensation | 19,326 | 16,301 | |||||
| Change in fair value of contingent consideration | 2,972 | 2,333 | |||||
| Gain on disposals of property and equipment | (328 | ) | (1,102 | ) | |||
| Deferred income taxes | (18,492 | ) | (7,007 | ) | |||
| Amortization of debt issuance costs | 724 | 1,210 | |||||
| Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
| Billed receivables | 10,212 | 2,677 | |||||
| Unbilled receivables | (3,303 | ) | (12,573 | ) | |||
| Prepaid expenses and other assets | (1,125 | ) | (4,792 | ) | |||
| Accounts payable | (1,673 | ) | 8,181 | ||||
| Accrued liabilities and other long-term liabilities | (19,901 | ) | (12,507 | ) | |||
| Contingent consideration | (800 | ) | — | ||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | (296 | ) | 4,005 | ||||
| Other current liabilities | (125 | ) | 1,164 | ||||
| Net cash provided by operating activities | 93,980 | 101,442 | |||||
| Cash flows from investing activities: | |||||||
| Cash paid for acquisitions (net of cash received from acquisitions) | (5,908 | ) | (67,995 | ) | |||
| Proceeds from sale of assets | 87 | 1,639 | |||||
| Purchase of property and equipment | (15,689 | ) | (13,903 | ) | |||
| Net cash used in investing activities | (21,510 | ) | (80,259 | ) | |||
| 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 | (65,000 | ) | (323,832 | ) | |||
| Payments on notes payable | (15,445 | ) | (12,516 | ) | |||
| Payments of contingent consideration | (1,464 | ) | (1,329 | ) | |||
| Payments of common stock offering costs | — | (10,657 | ) | ||||
| Payments of debt issuance costs | — | (976 | ) | ||||
| 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 | (81,909 | ) | (38,112 | ) | |||
| Net decrease in cash and cash equivalents | (9,439 | ) | (16,929 | ) | |||
| Cash and cash equivalents – beginning of period | 47,980 | 64,909 | |||||
| Cash and cash equivalents – end of period | $ | 38,541 | $ | 47,980 | |||
NV5 GLOBAL, INC. AND SUBSIDIARIES
