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NV5 Announces Strong First Quarter Results; Delivers Record Cash Flows and Issues Full-Year 2021 Guidance Exceeding Analyst Consensus

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HOLLYWOOD, Fla., May 12, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a leading provider of compliance, technology, and engineering consulting solutions, today reported financial results for the first quarter ended April 3, 2021.

“We are pleased with our first quarter performance, which generated $48 million in cash flows from operations and delivered increases in net income, adjusted EBITDA margins, and earnings per share. These positive results were accomplished despite weather-related project delays that significantly postponed projects in the quarter. The COVID-19 pandemic also limited revenue generation for some of our services. Demand for our utility, infrastructure, and public sector services continues to be strong, driving a 5% increase in our backlog for the quarter. We anticipate increased growth opportunities as the economy continues to open throughout the year. In addition, the strength of our balance sheet allows us to invest in acquisitions that support our platform and expand our high-margin offerings,” said Dickerson Wright, PE, Chairman and CEO of NV5.

First Quarter 2021 Results

  • Resume full year 2021 guidance as follows:

    • Increase gross revenues to $695 million to $720 million

    • Increase GAAP EPS to $2.36 per share to $2.78 per share

    • Increase Adjusted EPS to $4.05 per share to $4.45 per share

  • Gross revenues were $153.1 million compared to $165.5 million in the pre-pandemic first quarter of 2020.

  • Cash flows from operations for the first quarter of 2021 were $48.2 million, more than three times the cash flows from operations in the first quarter of 2020 of $13.6 million.

  • Completed a secondary offering for which the Company received $141.0 million in net proceeds.

  • Reduced debt by $135.2 million, bringing net leverage to 0.8x funded by strong cash flows from operations and secondary offering proceeds.

  • Net income grew by 31% in the first quarter of 2021 to $5.5 million compared to $4.2 million in the first quarter of 2020.

  • Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew in the first quarter of 2021 to $24.2 million compared to $24.1 million in the first quarter of 2020.

  • GAAP EPS in the first quarter of 2021 was $0.41 per share compared to $0.33 per share in the first quarter of 2020, a 24% increase.

  • Adjusted EPS in the first quarter of 2021 was $0.88 per share compared to $0.84 per share in the first quarter of 2020, a 5% increase. Diluted weighted average shares were 13,429,102 in the first quarter of 2021 compared to 12,593,788 in the first quarter of 2020.

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 first quarter 2021 financial results at 4:30 p.m. (Eastern Time) on May 12, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:

Wednesday, May 12, 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:

2088906

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 engineering, utility services, buildings & program management, environmental health sciences, and geospatial 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)

April 3, 2021

January 2, 2021

Assets

Current assets:

Cash and cash equivalents

$

92,925

$

64,909

Billed receivables, net

108,921

142,705

Unbilled receivables, net

72,967

74,458

Prepaid expenses and other current assets

8,085

6,804

Total current assets

282,898

288,876

Property and equipment, net

29,143

27,011

Right-of-use lease assets, net

42,419

43,607

Intangible assets, net

179,711

174,931

Goodwill

359,101

343,796

Other assets

3,059

2,954

Total Assets

$

896,331

$

881,175

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

34,014

$

39,989

Accrued liabilities

53,797

45,325

Billings in excess of costs and estimated earnings on uncompleted contracts

17,721

24,962

Client deposits

480

380

Current portion of contingent consideration

3,423

1,334

Current portion of notes payable and other obligations

26,896

24,196

Total current liabilities

136,331

136,186

Contingent consideration, less current portion

697

1,066

Other long-term liabilities

37,841

38,737

Notes payable and other obligations, less current portion

145,443

283,326

Deferred income tax liabilities, net

28,830

27,791

Total liabilities

349,142

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, 14,933,927 and 13,270,131 shares issued and outstanding as of April 3, 2021 and January 2, 2021, respectively

149

133

Additional paid-in capital

415,895

268,271

Retained earnings

131,145

125,665

Total stockholders’ equity

547,189

394,069

Total liabilities and stockholders’ equity

$

896,331

$

881,175


NV5 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

(UNAUDITED)

(in thousands, except share data)

Three Months Ended

April 3, 2021

March 28, 2020

Gross revenues

$

153,095

$

165,480

Direct costs:

Salaries and wages

41,459

45,034

Sub-consultant services

23,246

27,427

Other direct costs

9,798

8,487

Total direct costs

74,503

80,948

Gross profit

78,592

84,532

Operating expenses:

Salaries and wages, payroll taxes and benefits

42,951

45,556

General and administrative

11,549

13,157

Facilities and facilities related

5,097

5,397

Depreciation and amortization

9,440

11,040

Total operating expenses

69,037

75,150

Income from operations

9,555

9,382

Interest expense

(2,318

)

(3,788

)

Income before income tax expense

7,237

5,594

Income tax expense

(1,757

)

(1,406

)

Net income and comprehensive income

$

5,480

$

4,188

Earnings per share:

Basic

$

0.43

$

0.34

Diluted

$

0.41

$

0.33

Weighted average common shares outstanding:

Basic

12,876,822

12,233,477

Diluted

13,429,102

12,593,788


NV5 GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

Three Months Ended

April 3, 2021

March 28, 2020

Cash flows from operating activities:

Net income

$

5,480

$

4,188

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

10,542

11,040

Non-cash lease expense

2,161

1,704

Provision for doubtful accounts

(536

)

215

Stock-based compensation

3,696

3,379

Change in fair value of contingent consideration

209

Gain on disposals of property and equipment

(530

)

(339

)

Deferred income taxes

(2,282

)

(1,614

)

Amortization of debt issuance costs

227

220

Changes in operating assets and liabilities, net of impact of acquisitions:

Billed receivables

36,037

6,053

Unbilled receivables

2,032

(7,764

)

Prepaid expenses and other assets

(1,114

)

1,962

Accounts payable

(6,332

)

44

Accrued liabilities

2,629

(8,061

)

Income taxes payable

3,085

1,365

Billings in excess of costs and estimated earnings on uncompleted contracts

(7,241

)

1,204

Deposits

92

7

Net cash provided by operating activities

48,155

13,603

Cash flows from investing activities:

Cash paid for acquisitions (net of cash received from acquisitions)

(15,007

)

Proceeds from sale of assets

460

425

Purchase of property and equipment

(1,470

)

(4,525

)

Net cash used in investing activities

(16,017

)

(4,100

)

Cash flows from financing activities:

Proceeds from common stock offering

150,000

Payments on notes payable

(1,669

)

(2,116

)

Payments of contingent consideration

(150

)

(650

)

Payments of borrowings from Senior Credit Facility

(143,207

)

Payments of common stock offering costs

(9,044

)

Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation

(52

)

Payments of debt issuance costs

(236

)

Net cash used in financing activities

(4,122

)

(3,002

)

Net increase in cash and cash equivalents

28,016

6,501

Cash and cash equivalents – beginning of period

64,909

31,825

Cash and cash equivalents – end of period

$

92,925

$

38,326


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 Ended

April 3, 2021

March 28, 2020

Net Income

$

5,480

$

4,188

Add:

Interest expense

2,318

3,788

Income tax expense

1,757

1,406

Depreciation and amortization

10,542

11,040

Stock-based compensation

3,696

3,379

Acquisition-related costs

449

340

Adjusted EBITDA

$

24,242

$

24,141

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

Three Months Ended

April 3, 2021

March 28, 2020

Net Income - per diluted share

$

0.41

$

0.33

Per diluted share adjustments:

Add:

Amortization expense of intangible assets and acquisition-related costs

0.63

0.69

Income tax expense

(0.16

)

(0.18

)

Adjusted EPS

$

0.88

$

0.84