NV5 Holdings Reports Third Quarter 2013 Results

Revenues Up 12% to $18.6 Million Drives Net Income of $0.23 per Diluted Share

Marketwired

HOLLYWOOD, FL--(Marketwired - Nov 12, 2013) - NV5 Holdings, Inc. (the "Company") (NASDAQ: NVEE) (NASDAQ: NVEEW), a provider of professional and technical engineering and consulting solutions, reported financial results for the third quarter and nine months ended September 30, 2013.

Third Quarter 2013 Highlights vs. Third Quarter 2012

  • Total gross contract revenues increased 12% to $18.6 million.
  • Gross profit increased 7% to $9.1 million.
  • Net income increased 37% to $931,000 or $0.23 per diluted share, compared to net income of $679,000 or $0.27 per diluted share.

Third Quarter 2013 Financial Results

Total gross contract revenues in the third quarter of 2013 increased 12% to $18.6 million, compared to $16.6 million in the third quarter of 2012. The increase was due to organic growth primarily from the start of new projects as well as the contribution from the Company's acquisitions in 2013.

Gross profit in the third quarter of 2013 increased 7% to $9.1 million, compared to $8.6 million in the third quarter of 2012. The increase in gross profit was due primarily to the increase in revenues.

Net income in the third quarter of 2013 increased 37% to $931,000 or $0.23 per diluted share, compared to net income of $679,000 or $0.27 per diluted share in the third quarter of 2012. The calculation of earnings per share in the third quarter of 2013 reflects the full effect of 1,610,000 additional shares issued in connection with the Company's April 2013 initial public offering, none of which were outstanding during any portion of the third quarter of 2012.

At September 30, 2013, cash and cash equivalents totaled $6.8 million, compared to $2.3 million at December 31, 2012.

At September 30, 2013, NV5 Holdings reported backlog of approximately $58.4 million compared to approximately $45.0 million at December 31, 2012.

First Nine Months of 2013 Financial Results

Total gross contract revenues in the first nine months of 2013 increased 13% to $51.3 million, compared to $45.5 million in the first nine months of 2012. The increase was due to organic growth primarily from the start of new projects as well as the contribution from the Company's acquisitions in 2013.

Gross profit in the first nine months of 2013 increased 9% to $26.1 million, compared to $23.8 million in the first nine months of 2012.

Net income in the first nine months of 2013 increased 185% to $2.2 million or $0.63 per diluted share, compared to net income of $781,000 or $0.31 per diluted share in the first nine months of 2012. The calculation of earnings per share in the first nine months of 2013 reflects the weighted average effect of 1,610,000 additional shares issued in connection with the Company's April 2013 initial public offering, none of which were outstanding during any portion of the first nine months of 2012.

Management Commentary

"NV5 experienced another quarter of healthy double-digit revenue and net income growth, while expanding backlog for the third consecutive quarter," said Dickerson Wright, Chairman and CEO of NV5 Holdings. "We continue to see NV5 grow in a fragmented market environment."

"Our strong third quarter results are not only due to the positive performance of our acquisitions, but to our continuous companywide focus on adding value through process and performance optimization. Ultimately, we believe our momentum so far in 2013 demonstrates the scalability of our model and strong platform for integration."

2013 Outlook

NV5 has raised the lower end of its guidance for fiscal year 2013 and now expects gross contract revenues to range between $66 million and $70 million, which would represent an increase of approximately 9% 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 third 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, November 12, 2013
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: 1-877-941-4774
International dial-in number: 1-480-629-9760
Conference ID: 4647058
Webcast: http://edge.media-server.com/m/p/p5if9pn6/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 December 12, 2013.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 4647058

About NV5 Holdings, Inc.

NV5 Holdings, Inc. (NASDAQ: NVEE) (NASDAQ: NVEEW) 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)
         
    September 30, 2013   December 31, 2012
    (unaudited)    
Assets        
Current assets:            
  Cash and cash equivalents   $ 6,771   $ 2,294
  Accounts receivable, net of allowance for doubtful accounts of $1,374 and $1,631 as of September 30, 2013 and December 31, 2012, respectively     17,977     15,052
  Prepaid expenses and other current assets     381     311
  Deferred income tax assets     511     543
Total current assets     25,640     18,200
  Property and equipment, net     1,315     1,273
  Intangible assets, net     3,250     2,758
  Goodwill     7,106     5,857
  Cash surrender value of officers' life insurance     684     656
  Other assets     119     600
  Deferred income tax assets     715     619
Total Assets   $ 38,829   $ 29,963
Liabilities and Stockholders' Equity            
Current liabilities:            
  Accounts payable   $ 4,667   $ 3,261
  Accrued liabilities     4,744     3,082
  Income taxes payable     107     1,992
  Billings in excess of costs and estimated earnings on uncompleted contracts     394     430
  Client deposits     110     47
  Current portion of contingent consideration     333     --
  Current portion of stock repurchase obligation     713     772
  Current portion of notes payable     1,732     3,538
Total current liabilities     12,800     13,122
  Contingent consideration, less current portion     634     --
  Stock repurchase obligation, less current portion     1,068     1,621
  Notes payable, less current portion     2,843     3,851
Total liabilities     17,345     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, 4,279,844 and 2,600,000 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively     43     26
  Additional paid-in capital     16,939     9,065
  Retained earnings     4,502     2,278
Total stockholders' equity     21,484     11,369
Total liabilities and stockholders' equity   $ 38,829   $ 29,963
             
             
             
NV5 HOLDINGS, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME  
(UNAUDITED)  
(in thousands, except share data)  
                         
    Three Months Ended     Nine Months Ended  
    September 30, 2013     September 30, 2012     September 30, 2013     September 30, 2012  
Gross contract revenues   $ 18,588     $ 16,565     $ 51,317     $ 45,486  
                                 
Direct costs (excluding depreciation and amortization):                                
Salaries and wages     5,315       4,642       14,747       12,672  
Sub-consultant services     3,535       2,826       9,010       7,514  
Other direct costs     598       537       1,508       1,486  
Total direct costs     9,448       8,005       25,265       21,672  
Gross profit     9,140       8,560       26,052       23,814  
Operating Expenses:                                
Salaries and wages, payroll taxes and benefits     5,024       4,603       14,772       14,123  
General and administrative     1,698       1,586       4,540       4,675  
Facilities and facilities related     847       851       2,510       2,458  
Depreciation and amortization     403       376       1,126       1,089  
Total operating expenses     7,972       7,416       22,948       22,345  
Income from operations     1,168       1,144       3,104       1,469  
Other (expense) income:                                
  Interest expense     (26 )     (101 )     (162 )     (275 )
Total other (expense)     (26 )     (101 )     (162 )     (275 )
Income before income tax expense     1,142       1,043       2,942       1,194  
Income tax expense     (211 )     (364 )     (718 )     (413 )
                                 
Net income and comprehensive income   $ 931     $ 679     $ 2,224     $ 781  
                                 
Basic Earnings per Share   $ 0.25     $ 0.31     $ 0.68     $ 0.34  
                                 
Diluted Earnings per Share   $ 0.23     $ 0.27     $ 0.63     $ 0.31  
                                 
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
View Comments (0)