|Bid||58.94 x 900|
|Ask||59.15 x 1800|
|Day's Range||58.39 - 64.10|
|52 Week Range||27.00 - 76.20|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||40.88|
|Earnings Date||Aug 05, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||71.00|
NVEE vs. HCKT: Which Stock Is the Better Value Option?
NV5 (NVEE) delivered earnings and revenue surprises of 57.63% and 8.46%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
HOLLYWOOD, Aug. 05, 2020 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of professional and technical engineering, geospatial, and consulting solutions, today reported financial results for the second quarter ended June 27, 2020. In the second quarter, Gross Revenues increased 27% and Gross Revenues, exclusive of sub-consultant services and other direct costs ("Net Revenues"), increased 29%. "We are pleased with our second quarter performance, which exceeded analyst expectations in both gross revenues and adjusted earnings per share, while generating strong cash flows from operations and adjusted EBITDA, despite the impacts of the COVID-19 pandemic. We also secured a number of large contracts with utilities, departments of transportation, and the municipal sector in the second quarter and entered into an agreement to acquire Mediatech Design Group, which is expected to increase our technology design services in the Middle East and Southeast Asia," said Dickerson Wright, PE, Chairman and CEO of NV5.Second Quarter 2020 Financial Highlights * Gross Revenues for the second quarter of 2020 were $162.7 million compared to $128.0 million in the second quarter of 2019. * Net Revenues for the quarter were $128.5 million compared to $99.5 million in the second quarter of 2019. * Gross Revenues for the quarter exceeded analyst consensus expectations by 8%. * Net income for the second quarter of 2020 was $4.5 million compared to $8.8 million in the second quarter of 2019 (second quarter of 2020 included $3.9 million of additional interest expense, $4.4 million of additional intangible amortization expense, and a higher effective income tax rate compared to second quarter of 2019). * Adjusted EBITDA for the second quarter of 2020, excluding stock compensation and acquisition-related costs, was $26.9 million, an increase from $18.4 million in the second quarter of 2019. * GAAP EPS was $0.36 per share in the second quarter of 2020. * Adjusted EPS in the second quarter of 2020 was $0.93 per share, exceeding analyst consensus expectations of $0.59 per share. * Cash flows from operations for the second quarter of 2020 were $37.1 million compared to $1.1 million in the second quarter of 2019.Six Months Ended June 27, 2020 Financial Highlights * Gross Revenues for the six months ended June 27, 2020 were $328.2 million compared to $245.3 million in the six months ended June 29, 2019. * Net Revenues for the six months ended June 27, 2020 were $258.1 million compared to $190.2 million in the six months ended June 29, 2019. * Net income for the six months ended June 27, 2020 was $8.7 million compared to $14.3 million in the six months ended June 29, 2019 (six months ended June 27, 2020 included $7.4 million of additional interest expense, $7.8 million of additional intangible amortization expense, and a higher effective income tax rate compared to six months ended June 29, 2019). * Adjusted EBITDA for the six months ended June 27, 2020, excluding stock compensation and acquisition-related costs, was $51.1 million, an increase from $33.8 million in the six months ended June 29, 2019. * GAAP EPS was $0.69 per share in the six months ended June 27, 2020. * Adjusted EPS in the six months ended June 27, 2020 was $1.77 per share. * Cash flows from operations for the six months ended June 27, 2020 were $50.7 million compared to $17.4 million in the six months ended June 29, 2019.Use of Non-GAAP Financial MeasuresNet Revenues are not a measure of financial performance under U.S. generally accepted accounting principles (“GAAP”). Gross Revenues include sub-consultant costs and other direct costs, which are generally pass-through costs. Furthermore, Gross Revenues eliminates intercompany revenues where the Company performed the service in lieu of utilizing third-party sub-consultants. The Company believes that Net Revenues, which is a non-GAAP financial measure commonly used in our industry, provides a meaningful perspective on our business results. A reconciliation of Gross Revenues as reported in accordance with GAAP to Net Revenues is provided at the end of this news release.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 will likely 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 Net Revenues, 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 Gross Revenues, Net Income, and Diluted Earnings per Share.Conference CallNV5 will host a conference call to discuss its second quarter 2020 financial results at 4:30 p.m. (Eastern Time) on August 5, 2020. The accompanying presentation for the call is available by visiting http://ir.nv5.com.Date: Wednesday, August 5, 2020 Time: 4:30 p.m. Eastern Toll-free dial-in number: +1 844-348-6875 International dial-in number: +1 509-844-0152 Conference ID: 8279137 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 NV5NV5 Global, Inc. (NASDAQ: NVEE) is a provider of professional and technical engineering, geospatial, and consulting solutions ranked 27 in the Engineering News-Record Top 500 Design Firms list. NV5 serves public and private sector clients in the infrastructure, utility services, construction, real estate, and environmental markets. NV5 primarily focuses on five business verticals: construction quality assurance, infrastructure engineering and support services, utility services, program management, and environmental solutions, and delivers geospatial services through its subsidiary Quantum Spatial, Inc., the largest full-service geospatial solutions provider in North America. The Company operates out of more than 100 locations worldwide. 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 StatementsThis 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 ContactNV5 Global, Inc. Jack Cochran Vice President, Marketing & Investor Relations Tel: +1-954-637-8048 Email: firstname.lastname@example.orgSource: NV5 Global, Inc. NV5 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) June 27, 2020 December 28, 2019 Assets Current assets: Cash and cash equivalents$65,212 $31,825 Billed receivables, net131,255 131,041 Unbilled receivables, net80,269 79,428 Prepaid expenses and other current assets8,435 8,906 Total current assets285,171 251,200 Property and equipment, net29,404 25,733 Right-of-use lease assets, net45,175 46,313 Intangible assets, net191,126 255,961 Goodwill343,170 309,216 Other assets3,069 4,714 Total Assets$897,115 $893,137 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$36,741 $36,116 Accrued liabilities49,797 47,432 Income taxes payable613 — Billings in excess of costs and estimated earnings on uncompleted contracts8,544 3,303 Client deposits286 221 Current portion of contingent consideration1,079 1,954 Current portion of notes payable and other obligations22,176 25,332 Total current liabilities119,236 114,358 Contingent consideration, less current portion1,733 2,048 Other long-term liabilities37,181 34,573 Notes payable and other obligations, less current portion326,020 332,854 Deferred income tax liabilities, net40,575 53,341 Total liabilities524,745 537,174 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, 13,033,842 and 12,852,357 shares issued and outstanding as of June 27, 2020 and December 28, 2019, respectively130 129 Additional paid-in capital258,902 251,187 Retained earnings113,338 104,647 Total stockholders’ equity372,370 355,963 Total liabilities and stockholders’ equity$897,115 $893,137 NV5 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (in thousands, except share data) Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Gross revenues$162,689 $127,974 $328,169 $245,309 Direct costs: Salaries and wages45,079 38,080 90,114 73,337 Sub-consultant services25,244 20,044 52,670 36,996 Other direct costs8,914 8,410 17,402 18,106 Total direct costs79,237 66,534 160,186 128,439 Gross Profit83,452 61,440 167,983 116,870 Operating Expenses: Salaries and wages, payroll taxes and benefits44,149 30,765 89,706 60,004 General and administrative11,824 10,896 24,980 19,758 Facilities and facilities related5,357 3,937 10,754 7,743 Depreciation and amortization11,160 6,245 22,200 12,357 Total operating expenses72,490 51,843 147,640 99,862 Income from operations10,962 9,597 20,343 17,008 Interest expense(4,403) (457) (8,190) (808) Income before income tax expense6,559 9,140 12,153 16,200 Income tax expense(2,056) (346) (3,462) (1,863) Net Income and Comprehensive Income$4,503 $8,794 $8,691 $14,337 Earnings per share: Basic$0.37 $0.73 $0.71 $1.19 Diluted$0.36 $0.70 $0.69 $1.15 Weighted average common shares outstanding: Basic12,308,965 12,106,066 12,271,221 12,033,906 Diluted12,609,918 12,521,463 12,601,830 12,447,248 NV5 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Six Months Ended June 27, 2020 June 29, 2019 Cash Flows From Operating Activities: Net income$8,691 $14,337 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization23,277 12,357 Non-cash lease expense4,307 4,251 Provision for doubtful accounts1,690 1,456 Stock-based compensation6,880 4,167 Change in fair value of contingent consideration— 49 Gain on disposals of property and equipment(350) (48) Deferred income taxes(869) 477 Amortization of debt issuance costs442 — Changes in operating assets and liabilities, net of impact of acquisitions: Billed receivables(1,134) 5,511 Unbilled receivables(2,286) (5,188) Prepaid expenses and other assets2,117 (9,413) Accounts payable138 (3,816) Accrued liabilities1,922 968 Income taxes payable613 (2,338) Billings in excess of costs and estimated earnings on uncompleted contracts5,241 (5,383) Deposits66 47 Net cash provided by operating activities50,745 17,434 Cash Flows From Investing Activities: Cash paid for acquisitions (net of cash received from acquisitions)— (14,160) Proceeds from sale of assets437 — Purchase of property and equipment(6,145) (1,626) Net cash used in investing activities(5,708) (15,786) Cash Flows From Financing Activities: Borrowings from Senior Credit Facility— 10,000 Payments on notes payable(8,415) (6,738) Payments of contingent consideration(913) (1,213) Payments of borrowings from Senior Credit Facility(1,875) — Payments of debt issuance costs(447) — Net cash (used in) provided by financing activities(11,650) 2,049 Net increase in Cash and Cash Equivalents33,387 3,697 Cash and cash equivalents – beginning of period31,825 40,739 Cash and cash equivalents – end of period$65,212 $44,436 NV5 GLOBAL, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands)RECONCILIATION OF GROSS REVENUES TO NET REVENUES Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Gross Revenues - GAAP$162,689 $127,974 $328,169 $245,309 Less:Sub-consultant services(25,244) (20,044) (52,670) (36,996) Other direct costs(8,914) (8,410) (17,402) (18,106) Net Revenues$128,531 $99,520 $258,097 $190,207 RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net Income$4,503 $8,794 $8,691 $14,337 Add:Interest expense4,403 457 8,190 808 Income tax expense2,056 346 3,462 1,863 Depreciation and Amortization12,237 6,245 23,277 12,357 Stock-based compensation3,501 2,369 6,880 4,167 Acquisition-related costs231 238 571 238 Adjusted EBITDA$26,931 $18,449 $51,071 $33,770 RECONCILIATION OF GAAP EPS TO ADJUSTED EPS Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Net Income - per diluted share$0.36 $0.70 $0.69 $1.15 Per diluted share adjustments: Add: Amortization expense of intangible assets and acquisition-related costs0.77 0.42 1.46 0.83 Income tax expense(0.20) (0.10) (0.38) (0.19) Adjusted EPS$0.93 $1.02 $1.77 $1.79