EX-99.1 2 nvee-2020xq4xexx991.htm EX-99.1 Document
Exhibit 99.1
NV5 ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2020 RESULTS; EXCEEDS ANALYSTS' EXPECTATIONS
 Hollywood, FL – March 2, 2021 – 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 2, 2021.

“NV5 delivered another strong performance in 2020 with significant growth in revenues, EBITDA, margin, and cash flows from operations in spite of the coronavirus pandemic. The integration of our acquisitions delivered margin improvement through efficiencies of scale and our shared services model, and strong cash flows allowed accelerated payments of our debt revolver. We enter 2021 with strong momentum and expect to see benefits from a market focus on reliable delivery of power and environmental sustainability, a healthy acquisition pipeline, and the reopening of the economy throughout 2021,” said Dickerson Wright, PE, Chairman and CEO of NV5.

Fourth Quarter 2020 Financial Highlights
•Gross Revenues grew by 22% in the fourth quarter of 2020 to $161.2 million compared to $132.6 million in the fourth quarter of 2019.
•Net income grew by 28% in the fourth quarter of 2020 to $4.6 million compared to $3.6 million in the fourth quarter of 2019, with the fourth quarter of 2020 including $2.2 million of additional interest expense and $3.0 million of additional intangible amortization expense compared to fourth quarter of 2019.
•Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew by 37% in the fourth quarter of 2020 to $24.4 million compared to $17.9 million in the fourth quarter of 2019.
•GAAP EPS was $0.35 per share in the fourth quarter of 2020.
•Adjusted EPS in the fourth quarter of 2020 was $0.82 per share compared to $0.64 per share in the fourth quarter of 2019, a 28% increase.
•Cash flows from operating activities for the fourth quarter of 2020 grew to $23.6 million compared to $18.3 million in the fourth quarter of 2019, a 29% increase.

Full Year 2020 Financial Highlights
•Gross Revenues grew by 30% in 2020 to $659.3 million compared to $508.9 million in 2019.
•Net income in 2020 was $21.0 million compared to $23.8 million in 2019, with 2020 including $12.9 million of additional interest expense, $14.1 million of additional intangible amortization expense, and a higher effective income tax rate compared to 2019.
•Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew by 52% in 2020 to $105.4 million compared to $69.3 million in 2019.
•GAAP EPS was $1.65 per share in 2020.
•Adjusted EPS in 2020 was $3.72 per share compared to $3.25 per share in 2019, a 14% increase.
•Cash flows from operating activities in 2020 were $96.0 million compared to $39.9 million in 2019, a 141% increase.

52/53 Week Fiscal Year
NV5 uses a 52/53 week fiscal year ending on the Saturday closest to the calendar quarter end. As a result, 2020 included 53 weeks compared to 2019, which included 52 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 will likely 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 fourth quarter and full year 2020 financial results at 4:30 p.m. (Eastern Time) on March 2, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:    Tuesday, March 2, 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:    4096283
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 support services, utility services, buildings & program management, environmental health sciences, and geospatial technology 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)
 January 2, 2021December 28, 2019
Assets  
Current assets:  
Cash and cash equivalents$64,909 $31,825 
Billed receivables, net142,705 131,041 
Unbilled receivables, net74,458 79,428 
Prepaid expenses and other current assets6,804 8,906 
Total current assets288,876 251,200 
Property and equipment, net27,011 25,733 
Right-of-use lease assets, net43,607 46,313 
Intangible assets, net174,931 255,961 
Goodwill343,796 309,216 
Other assets2,954 4,714 
Total Assets$881,175 $893,137 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$39,989 $36,116 
Accrued liabilities45,325 47,432 
Billings in excess of costs and estimated earnings on uncompleted contracts24,962 3,303 
Client deposits380 221 
Current portion of contingent consideration1,334 1,954 
Current portion of notes payable and other obligations24,196 25,332 
Total current liabilities136,186 114,358 
Contingent consideration, less current portion1,066 2,048 
Other long-term liabilities38,737 34,573 
Notes payable and other obligations, less current portion283,326 332,854 
Deferred income tax liabilities, net27,791 53,341 
Total liabilities487,106 537,174 
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, 13,270,131 and 12,852,357 shares issued and outstanding as of January 2, 2021 and December 28, 2019, respectively133 129 
Additional paid-in capital268,271 251,187 
Retained earnings125,665 104,647 
Total stockholders’ equity394,069 355,963 
Total liabilities and stockholders’ equity$881,175 $893,137 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 Three Months EndedTwelve Months Ended
January 2, 2021December 28, 2019January 2, 2021December 28, 2019
Gross revenues$161,178 $132,598 $659,296 $508,938 
Direct costs:
Salaries and wages39,936 39,261 176,865 153,023 
Sub-consultant services28,929 22,629 107,602 79,598 
Other direct costs12,519 5,690 40,291 30,935 
Total direct costs81,384 67,581 324,758 263,556 
Gross Profit79,794 65,017 334,538 245,382 
Operating Expenses:
Salaries and wages, payroll taxes and benefits43,360 35,126 176,816 128,558 
General and administrative12,019 11,871 50,214 42,656 
Facilities and facilities related5,155 4,737 21,280 17,145 
Depreciation and amortization9,691 6,908 42,079 25,816 
Total operating expenses70,225 58,643 290,389 214,175 
Income from operations9,569 6,374 44,149 31,207 
Interest expense(3,260)(1,045)(15,181)(2,275)
Income before income tax expense6,309 5,329 28,968 28,932 
Income tax expense(1,735)(1,754)(7,950)(5,176)
Net Income and Comprehensive Income$4,574 $3,575 $21,018 $23,756 
Earnings per share:
Basic$0.37 $0.29 $1.70 $1.96 
Diluted$0.35 $0.28 $1.65 $1.90 
Weighted average common shares outstanding:
Basic12,468,444 12,204,650 12,362,786 12,116,185 
Diluted12,922,121 12,589,800 12,713,075 12,513,034 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Twelve Months Ended
 January 2, 2021December 28, 2019
Cash flows from operating activities:  
Net income$21,018 $23,756 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization45,488 25,816 
Non-cash lease expense9,469 9,410 
Provision for doubtful accounts4,311 1,239 
Stock-based compensation14,955 10,430 
Change in fair value of contingent consideration— (216)
(Gain) loss on disposals of property and equipment(462)21 
Deferred income taxes(13,064)(6,634)
Amortization of debt issuance costs896 131 
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables(13,592)5,140 
Unbilled receivables1,996 (11,807)
Prepaid expenses and other assets4,680 (3,599)
Accounts payable3,367 534 
Accrued liabilities(4,865)(7,315)
Income taxes payable— (2,697)
Billings in excess of costs and estimated earnings on uncompleted contracts21,659 (4,322)
Deposits153 13 
Net cash provided by operating activities96,009 39,900 
Cash flows from investing activities:  
Cash paid for acquisitions (net of cash received from acquisitions)(882)(348,375)
Proceeds from sale of assets1,670 — 
Purchase of property and equipment(9,855)(2,625)
Net cash used in investing activities(9,067)(351,000)
Cash flows from financing activities:  
Borrowings from Senior Credit Facility— 330,457 
Payments of borrowings from Senior Credit Facility(36,625)(10,000)
Payments on notes payable(15,207)(13,393)
Payments of contingent consideration(1,579)(1,202)
Payments of debt issuance costs(447)(3,676)
Net cash (used in) provided by financing activities(53,858)302,186 
Net increase (decrease) in cash and cash equivalents33,084 (8,914)
Cash and cash equivalents – beginning of period31,825 40,739 
Cash and cash equivalents – end of period$64,909 $31,825 



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 EndedTwelve Months Ended
January 2, 2021December 28, 2019January 2, 2021December 28, 2019
Net Income$4,574 $3,575 $21,018 $23,756 
Add:Interest expense3,260 1,045 15,181 2,275 
 Income tax expense1,735 1,754 7,950 5,176 
Depreciation and amortization10,808 6,908 45,488 25,816 
Stock-based compensation4,055 3,441 14,955 10,430 
Acquisition-related costs11 1,148 856 1,819 
Adjusted EBITDA$24,443 $17,871 $105,448 $69,272 


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
  Three Months EndedTwelve Months Ended
January 2, 2021December 28, 2019January 2, 2021December 28, 2019
Net Income - per diluted share$0.35 $0.28 $1.65 $1.90 
Per diluted share adjustments:  
Add:Amortization expense of intangible assets and acquisition-related costs0.63 0.50 2.79 1.79 
 Income tax expense(0.16)(0.14)(0.72)(0.44)
Adjusted EPS$0.82 $0.64 $3.72 $3.25