EX-99.1 2 nvee-2022xq4xexx991.htm EX-99.1 Document
Exhibit 99.1
NV5 ANNOUNCES RECORD FULL YEAR 2022 RESULTS AND ISSUES FULL YEAR 2023 GUIDANCE
 Hollywood, FL – February 23, 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 full year ended December 31, 2022.

"We are pleased to have delivered another strong year for revenues and earnings in 2022, despite significant headwinds in the commercial economy due to historic interest rate increases. All three of our reporting segments grew in 2022, with a record performance by the geospatial business. We also completed five strategic acquisitions in 2022, strengthening our utility geospatial, building technology, and materials testing offerings. We anticipate a successful year in 2023. We enter 2023 with a strong backlog to drive organic growth and profitability, and we anticipate the best year for mergers and acquisitions in our history," said Dickerson Wright, PE, Chairman and CEO of NV5.

Full Year 2022 Financial Highlights
•Gross revenues in 2022 were $786.8 million compared to $706.7 million in 2021, an 11% increase.
•Net income in 2022 was $50.0 million compared to $47.1 million in 2021, a 6% increase.
•Adjusted EBITDA in 2022 was $135.2 million compared to $132.9 million in 2021, a 2% increase.
•GAAP EPS in 2022 was $3.27 per share compared to $3.22 per share in 2021, a 2% increase.
•Adjusted EPS in 2022 was $5.19 per share compared to $5.11 per share in 2021, a 2% increase. Diluted weighted average shares outstanding were 15,260,186 in 2022 compared to 14,656,381 in 2021.
•Cash flows from operating activities in 2022 were $94.0 million compared to $101.4 million in 2021. Cash flows from operations in 2022 included an income tax payment of $9.4 million as a result of new tax provisions that require capitalization and amortization of research and development costs.

Fiscal Year 2023 Guidance
•Gross revenues between $878 million and $915 million.
•GAAP EPS between $2.93 per share and $3.33 per share.
•Adjusted EPS between $5.28 and $5.69 per share.

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 and acquisition-related costs, net of tax benefits. 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 full year 2022 financial results at 4:30 p.m. (Eastern Time) on February 23, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:    Thursday, February 23, 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: testing, inspection & consulting, infrastructure engineering, utility services, 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)
 December 31, 2022January 1, 2022
Assets  
Current assets:  
Cash and cash equivalents$38,541 $47,980 
Billed receivables, net145,637 153,814 
Unbilled receivables, net92,862 89,734 
Prepaid expenses and other current assets13,636 12,442 
Total current assets290,676 303,970 
Property and equipment, net41,640 32,729 
Right-of-use lease assets, net39,314 44,260 
Intangible assets, net160,431 188,224 
Goodwill400,957 389,916 
Other assets2,705 2,844 
Total Assets$935,723 $961,943 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$57,771 $55,954 
Accrued liabilities44,313 50,461 
Billings in excess of costs and estimated earnings on uncompleted contracts31,183 29,444 
Other current liabilities1,597 1,551 
Current portion of contingent consideration10,854 5,807 
Current portion of notes payable and other obligations15,176 20,734 
Total current liabilities160,894 163,951 
Contingent consideration, less current portion4,481 2,521 
Other long-term liabilities29,542 34,304 
Notes payable and other obligations, less current portion39,673 111,062 
Deferred income tax liabilities, net6,893 25,385 
Total liabilities241,483 337,223 
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, 15,523,300 and 15,414,005 shares issued and outstanding as of December 31, 2022 and January 1, 2022, respectively155 154 
Additional paid-in capital471,300 451,754 
Retained earnings222,785 172,812 
Total stockholders’ equity694,240 624,720 
Total liabilities and stockholders’ equity$935,723 $961,943 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 Three Months EndedTwelve Months Ended
December 31, 2022January 1, 2022December 31, 2022January 1, 2022
Gross revenues$189,818 $188,555 $786,778 $706,706 
Direct costs:
Salaries and wages44,830 43,417 186,806 175,047 
Sub-consultant services37,084 35,995 153,641 124,998 
Other direct costs14,931 11,633 60,357 47,347 
Total direct costs96,845 91,045 400,804 347,392 
Gross profit92,973 97,510 385,974 359,314 
Operating expenses:
Salaries and wages, payroll taxes, and benefits46,769 45,077 193,488 176,838 
General and administrative18,501 16,095 66,114 53,986 
Facilities and facilities related5,431 4,863 21,252 20,193 
Depreciation and amortization9,565 10,189 38,938 39,953 
Total operating expenses80,266 76,224 319,792 290,970 
Income from operations12,707 21,286 66,182 68,344 
Interest expense(1,005)(878)(3,808)(6,239)
Income before income tax expense11,702 20,408 62,374 62,105 
Income tax expense(3,702)(4,953)(12,401)(14,958)
Net income and comprehensive income$8,000 $15,455 $49,973 $47,147 
Earnings per share:
Basic$0.54 $1.05 $3.39 $3.34 
Diluted$0.52 $1.02 $3.27 $3.22 
Weighted average common shares outstanding:
Basic14,816,773 14,651,218 14,753,738 14,135,333 
Diluted15,320,123 15,159,314 15,260,186 14,656,381 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Twelve Months Ended
 December 31, 2022January 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 amortization44,063 44,971 
Non-cash lease expense12,813 10,191 
Provision for doubtful accounts(60)1,243 
Stock-based compensation19,326 16,301 
Change in fair value of contingent consideration2,972 2,333 
Gain on disposals of property and equipment(328)(1,102)
Deferred income taxes(18,492)(7,007)
Amortization of debt issuance costs724 1,210 
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables10,212 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 activities93,980 101,442 
Cash flows from investing activities:  
Cash paid for acquisitions (net of cash received from acquisitions)(5,908)(67,995)
Proceeds from sale of assets87 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 period47,980 64,909 
Cash and cash equivalents – end of period$38,541 $47,980 



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
December 31, 2022January 1, 2022December 31, 2022January 1, 2022
Net Income$8,000 $15,455 $49,973 $47,147 
Add:Interest expense1,005 878 3,808 6,239 
 Income tax expense3,702 4,953 12,401 14,958 
Depreciation and amortization10,972 11,574 44,063 44,971 
Stock-based compensation4,077 4,214 19,326 16,301 
Acquisition-related costs*4,720 2,667 5,612 3,274 
Adjusted EBITDA$32,476 $39,741 $135,183 $132,890 

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


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
  Three Months EndedTwelve Months Ended
December 31, 2022January 1, 2022December 31, 2022January 1, 2022
Net Income - per diluted share$0.52 $1.02 $3.27 $3.22 
Per diluted share adjustments:  
Add:Amortization expense of intangible assets0.52 0.56 2.12 2.29 
Acquisition-related costs*0.30 0.18 0.36 0.22 
 Income tax expense(0.13)(0.15)(0.56)(0.62)
Adjusted EPS$1.21 $1.61 $5.19 $5.11 

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