NV5 Holdings Reports Second Quarter 2013 Results

Revenues up 16% to $17.1 Million Drives Net Income of $0.18 per Diluted Share

Marketwired

HOLLYWOOD, FL--(Marketwired - Aug 13, 2013) -   NV5 Holdings, Inc. (the "Company") (NASDAQ: NVEEU), a provider of professional and technical engineering and consulting solutions, reported financial results for the second quarter and six months ended June 30, 2013.

Second Quarter 2013 Highlights vs. Second Quarter 2012

  • Total gross contract revenues increased 16% to $17.1 million.
  • Gross profit increased 10% to $8.6 million.
  • Net income increased 66% to $737,000 or $0.18 per diluted share, compared to net income of $444,000 or $0.18 per diluted share.

Second Quarter 2013 Financial Results
Total gross contract revenues in the second quarter of 2013 increased 16% to $17.1 million, compared to $14.8 million in the second quarter of 2012. The increase was due primarily to the start of new projects in the Company's infrastructure, engineering and support services, as well as the contribution from Kaco and Consilium, which were acquired in the third quarter of 2012 and second quarter of 2013, respectively.

Gross profit in the second quarter of 2013 was $8.6 million, compared to $7.8 million in the second quarter of 2012. The 10% increase in gross profit was due primarily to the increase in revenues.

Income from operations in the second quarter of 2013 increased 46% to $1.1 million or 6.5% of total gross contract revenues, compared to $759,000 or 5.1% of total gross contract revenues in the same year-ago quarter. Net income in the second quarter of 2013 increased 66% to $737,000 or $0.18 per diluted share, compared to net income of $444,000 or $0.18 per diluted share in the second quarter of 2012. The earnings per share during the second quarter of 2013 reflects the full effect of 1,610,000 additional shares outstanding when compared to the outstanding shares during the second quarter of 2012.

At June 30, 2013, cash and cash equivalents totaled $6.7 million, compared to $2.3 million at December 31, 2012. On April 2, 2013, the Company received net proceeds of approximately $8.7 million from its initial public offering.

At June 30, 2013, NV5 Holdings reported backlog of approximately $55.0 million, compared to approximately $53.0 million at March 31, 2013 and approximately $45.0 million at December 31, 2012.

First Half 2013 Financial Results
Total gross contract revenues in the first half of 2013 increased 13% to $32.7 million, compared to $28.9 million in the first half of 2012.

Gross profit in the first half of 2013 increased 11% to $16.9 million, compared to $15.3 million in the first half of 2012.

Income from operations in the first half of 2013 increased significantly to $1.9 million or 5.9% of total gross contract revenues, compared to $325,000 or 1.1% of total gross contract revenues in the first half of 2012. Net income in the first half of 2013 also increased significantly to $1.3 million or $0.40 per diluted share, compared to net income of $102,000 or $0.04 per diluted share in the first half of 2012.

Management Commentary
"We continued the momentum experienced in Q1 with another strong quarter of double-digit revenue and net income growth, as well as expanded backlog," said Dickerson Wright, chairman and CEO of NV5 Holdings. "These results were achieved from new project wins, our internal focus on performance optimization and the acquisitions of Consilium and Kaco."

"Our acquisitions to-date have been highly accretive and they've either introduced a new service line or strengthened an existing service in a particular geographic market," continued Wright. "This blueprint is how we expect to execute our acquisition strategy and we continue to evaluate a growing list of companies that would support our platform in this highly fragmented industry."

Wright concluded: "As we look towards the back half of 2013, we plan to continue our focus on organic growth while staying diligent on our acquisition strategy. NV5 is known in our marketplace as an acquirer that embraces a culture of entrepreneurship and we all share the vision to establish a leading, national engineering platform around our five business lines."

2013 Outlook
NV5's guidance for fiscal year 2013 remains on track with gross contract revenues expected to range between $62.0 million and $70.0 million, which would represent an increase of approximately 2% to 16% from 2012 gross contract revenues.

Conference Call
NV5 Holdings will hold a conference call today at 4:30 p.m. Eastern time to discuss its second quarter 2013 results.

The Company's Chairman and CEO, Dickerson Wright, and CFO, Michael Rama, will host the conference call, followed by a question and answer period.

Date: Tuesday, August 13, 2013
Time: 4:30 p.m. Eastern time
Dial-In number: 1-877-941-4774
International number: 1-480-629-9760
Conference ID: 4632610
Webcast: http://edge.media-server.com/m/p/mfqs7o5n/lan/en

The conference call will be webcast live and available for replay via the investor section of the company's website at www.NV5.com.

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through September 13, 2013.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4632610

About NV5 Holdings, Inc.
NV5 Holdings, Inc. (NASDAQ: NVEEU) is a provider of professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, energy, construction, real estate and environmental markets. The Company primarily focuses on five business service verticals: construction quality assurance, infrastructure engineering, energy services, program management and environmental services. NV5 Holdings operates 22 offices in California, Colorado, Utah, Florida and New Jersey and is headquartered in Hollywood, Florida. 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 press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the Company's acquisition and growth strategies; ability to establish a leading, national engineering platform around its five business lines; and guidance relating to financial projections for fiscal year 2013, including gross contract revenues. 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 herein. Such factors include, but are not limited to: (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.

 
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 
    June 30,
2013
  December 31,
2012
    (unaudited)    
Assets        
Current assets:            
  Cash and cash equivalents   $ 6,711   $ 2,294
  Accounts receivable, net of allowance for doubtful accounts of $1,512 and $1,631 as of June 30, 2013 and December 31, 2012, respectively     16,723     15,052
  Prepaid expenses and other current assets     352     311
  Deferred income tax assets     536     543
Total current assets     24,322     18,200
  Property and equipment, net     1,371     1,273
  Intangible assets, net     2,978     2,758
  Goodwill     6,593     5,857
  Cash surrender value of officers' life insurance     658     656
  Other assets     122     600
  Deferred income tax assets     749     619
Total Assets   $ 36,793   $ 29,963
             
Liabilities and Stockholders' Equity        
Current liabilities:            
  Accounts payable   $ 3,842   $ 3,261
  Accrued liabilities     3,861     3,082
  Income taxes payable     38     1,992
  Billings in excess of costs and estimated earnings on uncompleted contracts     472     430
  Client deposits     48     47
  Current portion of contingent consideration     328     --
  Current portion of stock repurchase obligation     739     772
  Current portion of notes payable     1,608     3,538
Total current liabilities     10,936     13,122
  Contingent consideration, less current portion     621     --
  Stock repurchase obligations, less current portion     1,334     1,621
  Notes payable, less current portion     3,471     3,851
Total liabilities     16,362     18,594
             
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, 4,225,376 and 2,600,000 shares issued and outstanding as of June 30, 2013 and December 31, 2012     42     26
  Additional paid-in capital     16,818     9,065
  Retained earnings     3,571     2,278
Total stockholders' equity     20,431     11,369
Total liabilities and stockholders' equity   $ 36,793   $ 29,963
             
 
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 
    Three Months Ended
    Six Months Ended
 
    June 30,
 2013

    June 30,
2012

    June 30,
 2013

    June 30,
2012

 
Gross contract revenues   $ 17,149     $ 14,823     $ 32,729     $ 28,921  
                                 
Direct costs (excluding depreciation and amortization):                                
Salaries and wages     4,964       4,146       9,432       8,030  
Sub-consultant services     3,092       2,359       5,475       4,688  
Other direct costs     522       552       910       949  
Total direct costs     8,578       7,057       15,817       13,667  
Gross Profit     8,571       7,766       16,912       15,254  
                                 
Operating Expenses:                                
Salaries and wages, payroll taxes and benefits     4,833       4,502       9,748       9,520  
General and administrative     1,450       1,367       2,842       3,089  
Facilities and facilities related     809       827       1,663       1,607  
Depreciation and amortization     372       311       723       713  
Total operating expenses     7,464       7,007       14,976       14,929  
Income from operations     1,107       759       1,936       325  
                                 
Other (expense) income:                                
Interest expense     (43 )     (93 )     (136 )     (174 )
Total other (expense)     (43 )     (93 )     (136 )     (174 )
Income before income tax expense     1,064       666       1,800       151  
Income tax expense     (327 )     (222 )     (507 )     (49 )
                                 
Net income and comprehensive income   $ 737     $ 444     $ 1,293     $ 102  
                                 
Basic Earnings per Share   $ 0.20     $ 0.19     $ 0.43     $ 0.04  
                                 
Diluted Earnings per Share   $ 0.18     $ 0.18     $ 0.40     $ 0.04  
Contact:
Company
NV5 Holdings, Inc.
Richard Tong
Tel 1-954-495-2114
Email Contact

Investor Relations:
Liolios Group, Inc.
Cody Slach
Tel 1-949-574-3860
Email Contact
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