EX-99.1 2 nvee-2021xq3xexx991.htm EX-99.1 Document
Exhibit 99.1
NV5 ANNOUNCES RECORD THIRD QUARTER RESULTS; EXCEEDS ANALYST CONSENSUS
 Hollywood, FL – November 9, 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 third quarter ended October 2, 2021.

"NV5 delivered another strong quarter, generating record revenues and net income in the third quarter and year to date in 2021. The core business’ year-over-year double digit revenue growth is a testament to the success of NV5’s strategic business model, resulting in sustainable growth and margin expansion," said Dickerson Wright, PE, Chairman and CEO of NV5. "Growth in the quarter was largely driven by demand for utility, real estate, and environmental, social, and governance (ESG) services. We continued to strengthen our ESG capabilities in the third quarter with the acquisition of Sage Renewable Energy Consulting, a leader in comprehensive sustainable energy planning and project management services. We enter the fourth quarter and 2022 with a record backlog that increased 13% for the quarter."

Third Quarter 2021 Results
•Gross revenues in the third quarter of 2021 were $185.6 million compared to $169.9 million in the third quarter of 2020, a 9% increase.
•Net income in the third quarter of 2021 was $12.6 million compared to $7.8 million in the third quarter of 2020, a 62% increase.
•Adjusted EBITDA in the third quarter of 2021 was $34.7 million compared to $29.9 million in the third quarter of 2020, a 16% increase.
•GAAP EPS in the third quarter of 2021 was $0.83 per share compared to $0.61 per share in the third quarter of 2020, a 36% increase.
•Adjusted EPS in the third quarter of 2021 was $1.25 per share compared to $1.13 per share in the third quarter of 2020, an 11% increase. Diluted weighted average shares were 15,069,660 in the third quarter of 2021 compared to 12,749,917 in the third quarter of 2020.
•Updated full year 2021 guidance as follows:
◦Increase GAAP EPS to a range of $2.60 per share to $2.91 per share (previously $2.45 per share to $2.84 per share).
◦Increase Adjusted EPS to a range of $4.36 per share to $4.62 per share (previously $4.20 per share to $4.55 per share).

Nine Months Ended October 2, 2021 Results
•Gross revenues for the nine months ended October 2, 2021 were $518.2 million compared to $498.1 million in the nine months ended October 3, 2020, a 4% increase.
•Cash flows from operations for the nine months ended October 2, 2021 were $78.1 million compared to $72.4 million in nine months ended October 3, 2020, an 8% increase.
•Net income for the nine months ended October 2, 2021 was $31.7 million compared to $16.4 million in nine months ended October 3, 2020, a 93% increase.
•Adjusted EBITDA for the nine months ended October 2, 2021 was $93.1 million compared to $81.0 million in the nine months ended October 3, 2020, a 15% increase.
•GAAP EPS for the nine months ended October 2, 2021 was $2.19 per share compared to $1.30 per share in the nine months ended October 3, 2020, a 68% increase.
•Adjusted EPS for the nine months ended October 2, 2021 was $3.50 per share compared to $2.91 per share in the nine months ended October 3, 2020, a 20% increase. Diluted weighted average shares were 14,486,683 for the nine months ended October 2, 2021 compared to 12,650,107 in the nine months ended October 3, 2020.



Fiscal Year
The Company operates on a “52/53 week” fiscal year ending on the Saturday closest to the calendar quarter end, and fiscal 2021 contains 52 weeks compared to fiscal 2020, which contained 53 weeks. As a result, the third quarter of fiscal 2021 ended October 2, 2021 included 13 weeks compared to the third quarter of fiscal 2020 ended October 3, 2020, which included 14 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.

Conference Call 
 
NV5 will host a conference call to discuss its third quarter 2021 financial results at 4:30 p.m. (Eastern Time) on November 9, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:    Tuesday, November 9, 2021
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 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)
 October 2, 2021January 2, 2021
Assets
Current assets:
Cash and cash equivalents$121,397 $64,909 
Billed receivables, net129,781 142,705 
Unbilled receivables, net86,399 74,458 
Prepaid expenses and other current assets10,529 6,804 
Total current assets348,106 288,876 
Property and equipment, net29,323 27,011 
Right-of-use lease assets, net44,866 43,607 
Intangible assets, net168,497 174,931 
Goodwill366,200 343,796 
Other assets3,892 2,954 
Total Assets$960,884 $881,175 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$42,272 $39,989 
Accrued liabilities55,251 45,325 
Billings in excess of costs and estimated earnings on uncompleted contracts16,730 24,962 
Client deposits620 380 
Current portion of contingent consideration3,406 1,334 
Current portion of notes payable and other obligations17,526 24,196 
Total current liabilities135,805 136,186 
Contingent consideration, less current portion1,531 1,066 
Other long-term liabilities40,410 38,737 
Notes payable and other obligations, less current portion149,862 283,326 
Deferred income tax liabilities, net29,154 27,791 
Total liabilities356,762 487,106 
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, 15,401,051 and 13,270,131 shares issued and outstanding as of October 2, 2021 and January 2, 2021, respectively154 133 
Additional paid-in capital446,612 268,271 
Retained earnings157,356 125,665 
Total stockholders’ equity604,122 394,069 
Total liabilities and stockholders’ equity$960,884 $881,175 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 Three Months EndedNine Months Ended
October 2, 2021October 3, 2020October 2, 2021October 3, 2020
Gross revenues$185,553 $169,949 $518,151 $498,118 
Direct costs:
Salaries and wages45,145 46,815 131,630 136,929 
Sub-consultant services35,779 26,003 89,003 78,673 
Other direct costs12,802 10,370 35,714 27,771 
Total direct costs93,726 83,188 256,347 243,373 
Gross profit91,827 86,761 261,804 254,745 
Operating expenses:
Salaries and wages, payroll taxes and benefits44,597 43,750 131,761 133,456 
General and administrative12,978 13,216 37,891 38,196 
Facilities and facilities related5,194 5,370 15,330 16,125 
Depreciation and amortization10,108 10,187 29,764 32,387 
Total operating expenses72,877 72,523 214,746 220,164 
Income from operations18,950 14,238 47,058 34,581 
Interest expense(1,475)(3,731)(5,362)(11,921)
Income before income tax expense17,475 10,507 41,696 22,660 
Income tax expense(4,902)(2,753)(10,005)(6,215)
Net income and comprehensive income$12,573 $7,754 $31,691 $16,445 
Earnings per share:  
Basic$0.86 $0.62 $2.27 $1.33 
Diluted$0.83 $0.61 $2.19 $1.30 
Weighted average common shares outstanding:
Basic14,593,623 12,434,600 13,963,372 12,328,448 
Diluted15,069,660 12,749,917 14,486,683 12,650,107 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended
 October 2, 2021October 3, 2020
Cash flows from operating activities:
Net income$31,691 $16,445 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization33,397 34,680 
Non-cash lease expense7,941 6,731 
Provision for doubtful accounts1,077 3,127 
Stock-based compensation12,087 10,900 
Change in fair value of contingent consideration(67)— 
Gain on disposals of property and equipment(1,059)(394)
Deferred income taxes(4,318)(5,905)
Amortization of debt issuance costs1,024 669 
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables16,728 8,089 
Unbilled receivables(10,024)(7,505)
Prepaid expenses and other assets(4,160)2,171 
Accounts payable1,366 (2,780)
Accrued liabilities403 322 
Billings in excess of costs and estimated earnings on uncompleted contracts(8,233)5,706 
Deposits218 163 
Net cash provided by operating activities78,071 72,419 
Cash flows from investing activities:  
Cash paid for acquisitions (net of cash received from acquisitions)(23,569)(882)
Proceeds from sale of assets843 1,053 
Purchase of property and equipment(6,714)(8,342)
Net cash used in investing activities(29,440)(8,171)
Cash flows from financing activities:  
Borrowings from Senior Credit Facility138,750 — 
Proceeds from common stock offering172,500 — 
Payments on notes payable(7,299)(9,941)
Payments of contingent consideration(663)(913)
Payments of borrowings from Senior Credit Facility(283,832)(20,750)
Payments of common stock offering costs(10,657)— 
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation(52)— 
Payments of debt issuance costs(890)(447)
Net cash provided by (used in) financing activities7,857 (32,051)
Net increase in cash and cash equivalents56,488 32,197 
Cash and cash equivalents – beginning of period64,909 31,825 
Cash and cash equivalents – end of period$121,397 $64,022 



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 EndedNine Months Ended
October 2, 2021October 3, 2020October 2, 2021October 3, 2020
Net Income$12,573 $7,754 $31,691 $16,445 
Add:Interest expense1,475 3,731 5,362 11,921 
 Income tax expense4,902 2,753 10,005 6,215 
Depreciation and amortization11,461 11,401 33,397 34,680 
Stock-based compensation4,297 4,020 12,087 10,900 
Acquisition-related costs*(23)274 607 845 
Adjusted EBITDA$34,685 $29,933 $93,149 $81,006 

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


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
  Three Months EndedNine Months Ended
October 2, 2021October 3, 2020October 2, 2021October 3, 2020
Net Income - per diluted share$0.83 $0.61 $2.19 $1.30 
Per diluted share adjustments:  
Add:Amortization expense of intangible assets and acquisition-related costs0.57 0.70 1.77 2.16 
 Income tax expense(0.15)(0.18)(0.46)(0.55)
Adjusted EPS$1.25 $1.13 $3.50 $2.91