EX-99.1 2 nvee-2023xq2xexx991.htm EX-99.1 Document
Exhibit 99.1
NV5 ANNOUNCES SECOND QUARTER RESULTS; EXCEEDS ANALYST CONSENSUS
Hollywood, FL – August 9, 2023 – NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, and consulting solutions, today reported financial results for the second quarter ended July 1, 2023.

"We are pleased with our second quarter results. Our business continues to demonstrate resilience in difficult market conditions as it grew over the first quarter. Sustainable infrastructure, ESG service offerings, and technology solutions as supplied by NV5 are in increasing demand. The addition of Axim Geospatial and Visual Information Solutions Geospatial Software have strengthened our leadership position in geospatial data analytics and the acquisition of Red Technologies expands our capabilities in the growing Asia-Pacific data center market. Overall, we are well-positioned for organic growth and acquisition expansion," said Dickerson Wright, PE, Chairman and CEO of NV5.
Second Quarter 2023 Results
Gross revenues in the second quarter of 2023 were $222.6 million compared to $202.7 million in the second quarter of 2022, a 10% increase.
Gross profit in the second quarter of 2023 was $110.3 million compared to $99.2 million in the second quarter of 2022, an 11% increase.
Net income in the second quarter of 2023 was $15.4 million compared to $17.3 million in the second quarter of 2022. Net income was impacted by increases in amortization from acquisitions and interest expense, as well as lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
Adjusted EBITDA in the second quarter of 2023 was $35.0 million compared to $37.8 million in the second quarter of 2022. Adjusted EBITDA was impacted by lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
GAAP EPS in the second quarter of 2023 was $1.00 per share compared to $1.13 per share in the second quarter of 2022.
Adjusted EPS in the second quarter of 2023 was $1.29 per share compared to $1.49 per share in the second quarter of 2022.
Six Months Ended July 1, 2023 Results
Gross revenues for the six months ended July 1, 2023 were $407.0 million compared to $392.9 million in the six months ended July 2, 2022, a 4% increase.
Gross profit for the six months ended July 1, 2023 were $206.3 million compared to $193.1 million in the six months ended July 2, 2022, a 7% increase.
Net income for the six months ended July 1, 2023 was $21.4 million compared to $25.9 million in the six months ended July 2, 2022. Net income was impacted by increases in amortization from acquisitions and interest expense, as well as lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
Adjusted EBITDA for the six months ended July 1, 2023 was $62.7 million compared to $66.7 million in the six months ended July 2, 2022. Adjusted EBITDA was impacted by lower income from operations in our real estate transactional and LNG businesses. Our real estate transactional business was affected by market reactions to increases in interest rates and our LNG business was affected by the timing of project cycles.
GAAP EPS for the six months ended July 1, 2023 was $1.39 per share compared to $1.70 per share in the six months ended July 2, 2022.
Adjusted EPS for the six months ended July 1, 2023 was $2.16 per share compared to $2.48 per share in the six months ended July 2, 2022.




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 second quarter 2023 financial results at 4:30 p.m. (Eastern Time) on August 9, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:    Wednesday, August 9, 2023
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 technology, conformity assessment, and consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: Construction quality assurance, infrastructure engineering, utility services, buildings & technology, 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.com
 
Source: NV5 Global, Inc.



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) 
(in thousands, except share data)
 July 1, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$28,827 $38,541 
Billed receivables, net149,110 145,637 
Unbilled receivables, net107,192 92,862 
Prepaid expenses and other current assets20,501 13,636 
Total current assets305,630 290,676 
Property and equipment, net49,392 41,640 
Right-of-use lease assets, net38,628 39,314 
Intangible assets, net243,579 160,431 
Goodwill526,848 400,957 
Other assets3,751 2,705 
Total Assets$1,167,828 $935,723 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$55,578 $57,771 
Accrued liabilities52,735 44,313 
Billings in excess of costs and estimated earnings on uncompleted contracts37,195 31,183 
Other current liabilities2,072 1,597 
Current portion of contingent consideration4,149 10,854 
Current portion of notes payable and other obligations14,800 15,176 
Total current liabilities166,529 160,894 
Contingent consideration, less current portion1,897 4,481 
Other long-term liabilities28,526 29,542 
Notes payable and other obligations, less current portion209,241 39,673 
Deferred income tax liabilities, net20,487 6,893 
Total liabilities426,680 241,483 
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, 15,890,908 and 15,523,300 shares issued and outstanding as of July 1, 2023 and December 31, 2022, respectively159 155 
Additional paid-in capital497,035 471,300 
Accumulated other comprehensive income (loss)(191)— 
Retained earnings244,145 222,785 
Total stockholders’ equity741,148 694,240 
Total liabilities and stockholders’ equity$1,167,828 $935,723 




NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Gross revenues$222,638 $202,732 $406,955 $392,885 
Direct costs:
Salaries and wages57,079 47,704 105,463 93,681 
Sub-consultant services39,690 40,479 67,304 75,305 
Other direct costs15,569 15,309 27,890 30,833 
Total direct costs112,338 103,492 200,657 199,819 
Gross profit110,300 99,240 206,298 193,066 
Operating expenses:
Salaries and wages, payroll taxes, and benefits58,949 47,283 111,621 97,049 
General and administrative11,551 14,494 29,472 30,881 
Facilities and facilities related5,823 5,195 11,197 10,381 
Depreciation and amortization13,539 9,668 24,585 19,602 
Total operating expenses89,862 76,640 176,875 157,913 
Income from operations20,438 22,600 29,423 35,153 
Interest expense(3,648)(887)(5,229)(1,801)
Income before income tax expense16,790 21,713 24,194 33,352 
Income tax expense(1,377)(4,445)(2,834)(7,442)
Net income$15,413 $17,268 $21,360 $25,910 
Earnings per share:  
Basic$1.03 $1.17 $1.43 $1.76 
Diluted$1.00 $1.13 $1.39 $1.70 
Weighted average common shares outstanding:
Basic15,014,106 14,736,167 14,948,796 14,714,745 
Diluted15,451,788 15,232,157 15,421,535 15,211,835 
Comprehensive income:
Net income$15,413 $17,268 $21,360 $25,910 
Foreign currency translation losses, net of tax(191)— (191)— 
Comprehensive income$15,222 $17,268 $21,169 $25,910 




NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended
 July 1, 2023July 2, 2022
Cash flows from operating activities:
Net income$21,360 $25,910 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization27,205 22,058 
Non-cash lease expense6,784 6,265 
Provision for doubtful accounts607 594 
Stock-based compensation10,728 9,615 
Change in fair value of contingent consideration(7,514)(518)
Gain on disposals of property and equipment(408)(61)
Deferred income taxes(7,673)(3,014)
Amortization of debt issuance costs365 370 
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables10,882 15,152 
Unbilled receivables(9,842)(3,801)
Prepaid expenses and other assets(4,691)(511)
Accounts payable(8,164)(4,349)
Accrued liabilities and other long-term liabilities(5,698)(6,309)
Billings in excess of costs and estimated earnings on uncompleted contracts(7,606)(6,867)
Contingent consideration(1,307)— 
Other current liabilities474 (276)
Net cash provided by operating activities25,502 54,258 
Cash flows from investing activities:  
Cash paid for acquisitions (net of cash received from acquisitions)(186,242)(4,670)
Proceeds from sale of assets295 48 
Purchase of property and equipment(10,239)(10,379)
Net cash used in investing activities(196,186)(15,001)
Cash flows from financing activities:  
Borrowings from Senior Credit Facility180,000 — 
Payments on notes payable(5,131)(6,218)
Payments of contingent consideration(793)(1,597)
Payments of borrowings from Senior Credit Facility(13,000)(35,000)
Net cash provided by (used in) financing activities161,076 (42,815)
Effect of exchange rate changes on cash and cash equivalents(106)— 
Net decrease in cash and cash equivalents(9,714)(3,558)
Cash and cash equivalents – beginning of period38,541 47,980 
Cash and cash equivalents – end of period$28,827 $44,422 




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 EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Net Income$15,413 $17,268 $21,360 $25,910 
Add:Interest expense3,648 887 5,229 1,801 
 Income tax expense1,377 4,445 2,834 7,442 
Depreciation and amortization14,905 10,891 27,205 22,058 
Stock-based compensation4,902 4,826 10,728 9,615 
Acquisition-related costs*(5,294)(506)(4,661)(151)
Adjusted EBITDA$34,951 $37,811 $62,695 $66,675 

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


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
  Three Months EndedSix Months Ended
July 1, 2023July 2, 2022July 1, 2023July 2, 2022
Net Income - per diluted share$1.00 $1.13 $1.39 $1.70 
Per diluted share adjustments:  
Add:Amortization expense of intangible assets and acquisition-related costs0.49 0.50 1.13 1.06 
 Income tax expense(0.20)(0.14)(0.36)(0.28)
Adjusted EPS$1.29 $1.49 $2.16 $2.48