"NV5 delivered another quarter of double-digit growth in gross revenues, net income, Adjusted EBITDA, and earnings per share in the second quarter, resulting in a record first half of 2022. We drove growth across all six of our operating verticals in the quarter and expanded our national leadership position in electrical utility geospatial solutions with the acquisition of GEO1. We achieved 8% organic growth in the first half of the year. NV5’s strong backlog, available cash on hand, and non-discretionary service offerings position us to continue our growth throughout 2022, while protecting our margins," said Dickerson Wright, PE, Chairman and CEO of NV5.
Second Quarter 2022 Results
- Gross revenues in the second quarter of 2022 were
$202.7 million compared to$179.5 million in the second quarter of 2021, a 13% increase. - Net income in the second quarter of 2022 was
$17.3 million compared to$13.6 million in the second quarter of 2021, a 27% increase. - Adjusted EBITDA in the second quarter of 2022 was
$37 .8 million compared to$34 .2 million in the second quarter of 2021, a 10% increase. - GAAP EPS in the second quarter of 2022 was
$1.13 per share compared to$0.91 per share in the second quarter of 2021, a 24% increase. - Adjusted EPS in the second quarter of 2022 was
$1.49 per share compared to$1.34 per share in the second quarter of 2021, an 11% increase. Diluted weighted average shares were 15,232,157 in the second quarter of 2022 compared to 14,965,188 in the second quarter of 2021.
Six Months Ended
- Gross revenues for the six months ended
July 2, 2022 were$392.9 million compared to$332.6 million in the six months endedJuly 3, 2021 , an 18% increase. - Net income for the six months ended
July 2, 2022 was$25.9 million compared to$19.1 million in the six months endedJuly 3, 2021 , a 36% increase. - Adjusted EBITDA for the six months ended
July 2, 2022 was$66.7 million compared to$58.5 million in the six months endedJuly 3, 2021 , a 14% increase. - GAAP EPS for the six months ended
July 2, 2022 was$1.70 per share compared to$1.35 per share in the six months endedJuly 3, 2021 , a 26% increase. - Adjusted EPS for the six months ended
July 2, 2022 was$2.48 per share compared to$2.25 per share in the six months endedJuly 3, 2021 , a 10% increase. Diluted weighted average shares were 15,211,835 for the six months endedJuly 2, 2022 , compared to 14,196,035 in the six months endedJuly 3, 2021 .
Increased Full-Year Guidance
- Increased gross revenues to a range of
$795 million to$815 million (previously$785 million to$810 million ). - Increased GAAP EPS to a range of
$3.90 per share to$4.29 per share (previously$3.57 per share to$3.92 per share). - Increased Adjusted EPS to a range of
$5.43 per share to$5.82 per share (previously$5.39 per share to$5.80 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, 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. 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 second quarter 2022 financial results at
Date: | ||
Time: | ||
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
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the
Investor Relations Contact
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email: ir@nv5.com
Source:
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share data)
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 44,422 | $ | 47,980 | |
Billed receivables, net | 139,959 | 153,814 | |||
Unbilled receivables, net | 93,486 | 89,734 | |||
Prepaid expenses and other current assets | 13,159 | 12,442 | |||
Total current assets | 291,026 | 303,970 | |||
Property and equipment, net | 39,557 | 32,729 | |||
Right-of-use lease assets, net | 40,595 | 44,260 | |||
Intangible assets, net | 178,383 | 188,224 | |||
394,760 | 389,916 | ||||
Other assets | 2,639 | 2,844 | |||
Total Assets | $ | 946,960 | $ | 961,943 | |
Liabilities and Stockholders’ Equity | |||||
Current liabilities: | |||||
Accounts payable | $ | 52,310 | $ | 55,954 | |
Accrued liabilities | 51,135 | 50,461 | |||
Billings in excess of costs and estimated earnings on uncompleted contracts | 22,625 | 29,444 | |||
Other current liabilities | 1,454 | 1,551 | |||
Current portion of contingent consideration | 9,772 | 5,807 | |||
Current portion of notes payable and other obligations | 18,932 | 20,734 | |||
Total current liabilities | 156,228 | 163,951 | |||
Contingent consideration, less current portion | 3,020 | 2,521 | |||
Other long-term liabilities | 30,564 | 34,304 | |||
Notes payable and other obligations, less current portion | 73,839 | 111,062 | |||
Deferred income tax liabilities, net | 22,366 | 25,385 | |||
Total liabilities | 286,017 | 337,223 | |||
Commitments and contingencies | |||||
Stockholders’ equity: | |||||
Preferred stock, | — | — | |||
Common stock, | 155 | 154 | |||
Additional paid-in capital | 462,066 | 451,754 | |||
Retained earnings | 198,722 | 172,812 | |||
Total stockholders’ equity | 660,943 | 624,720 | |||
Total liabilities and stockholders’ equity | $ | 946,960 | $ | 961,943 |
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
Three Months Ended | Six Months Ended | ||||||||||||||
Gross revenues | $ | 202,732 | $ | 179,503 | $ | 392,885 | $ | 332,598 | |||||||
Direct costs: | |||||||||||||||
Salaries and wages | 47,704 | 45,025 | 93,681 | 86,485 | |||||||||||
Sub-consultant services | 40,479 | 29,978 | 75,305 | 53,225 | |||||||||||
Other direct costs | 15,309 | 13,114 | 30,833 | 22,912 | |||||||||||
Total direct costs | 103,492 | 88,117 | 199,819 | 162,622 | |||||||||||
Gross profit | 99,240 | 91,386 | 193,066 | 169,976 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries and wages, payroll taxes and benefits | 47,283 | 44,213 | 97,049 | 87,164 | |||||||||||
General and administrative | 14,494 | 13,367 | 30,881 | 24,915 | |||||||||||
Facilities and facilities related | 5,195 | 5,038 | 10,381 | 10,135 | |||||||||||
Depreciation and amortization | 9,668 | 10,216 | 19,602 | 19,656 | |||||||||||
Total operating expenses | 76,640 | 72,834 | 157,913 | 141,870 | |||||||||||
Income from operations | 22,600 | 18,552 | 35,153 | 28,106 | |||||||||||
Interest expense | (887 | ) | (1,568 | ) | (1,801 | ) | (3,886 | ) | |||||||
Income before income tax expense | 21,713 | 16,984 | 33,352 | 24,220 | |||||||||||
Income tax expense | (4,445 | ) | (3,346 | ) | (7,442 | ) | (5,102 | ) | |||||||
Net income and comprehensive income | $ | 17,268 | $ | 13,638 | $ | 25,910 | $ | 19,118 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 1.17 | $ | 0.95 | $ | 1.76 | $ | 1.40 | |||||||
Diluted | $ | 1.13 | $ | 0.91 | $ | 1.70 | $ | 1.35 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 14,736,167 | 14,419,671 | 14,714,745 | 13,648,247 | |||||||||||
Diluted | 15,232,157 | 14,965,188 | 15,211,835 | 14,196,035 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Six Months Ended | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 25,910 | $ | 19,118 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 22,058 | 21,936 | |||||
Non-cash lease expense | 6,265 | 4,884 | |||||
Provision for doubtful accounts | 594 | 583 | |||||
Stock-based compensation | 9,615 | 7,790 | |||||
Change in fair value of contingent consideration | (518 | ) | 235 | ||||
Gain on disposals of property and equipment | (61 | ) | (581 | ) | |||
Deferred income taxes | (3,014 | ) | (2,988 | ) | |||
Amortization of debt issuance costs | 370 | 454 | |||||
Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
Billed receivables | 15,152 | 36,727 | |||||
Unbilled receivables | (3,801 | ) | (7,238 | ) | |||
Prepaid expenses and other assets | (511 | ) | (4,208 | ) | |||
Accounts payable | (4,349 | ) | (2,446 | ) | |||
Accrued liabilities | (6,309 | ) | (4,187 | ) | |||
Billings in excess of costs and estimated earnings on uncompleted contracts | (6,867 | ) | (8,158 | ) | |||
Other current liabilities | (276 | ) | 307 | ||||
Net cash provided by operating activities | 54,258 | 62,228 | |||||
Cash flows from investing activities: | |||||||
Cash paid for acquisitions (net of cash received from acquisitions) | (4,670 | ) | (21,652 | ) | |||
Proceeds from sale of assets | 48 | 460 | |||||
Purchase of property and equipment | (10,379 | ) | (4,028 | ) | |||
Net cash used in investing activities | (15,001 | ) | (25,220 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from common stock offering | — | 172,500 | |||||
Payments on notes payable | (6,218 | ) | (5,325 | ) | |||
Payments of contingent consideration | (1,597 | ) | (413 | ) | |||
Payments of borrowings from Senior Credit Facility | (35,000 | ) | (145,082 | ) | |||
Payments of common stock offering costs | — | (10,522 | ) | ||||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation | — | (52 | ) | ||||
Net cash (used in) provided by financing activities | (42,815 | ) | 11,106 | ||||
Net (decrease) increase in cash and cash equivalents | (3,558 | ) | 48,114 | ||||
Cash and cash equivalents – beginning of period | 47,980 | 64,909 | |||||
Cash and cash equivalents – end of period | $ | 44,422 | $ | 113,023 |
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 | Six Months Ended | |||||||||||||
Net Income | $ | 17,268 | $ | 13,638 | $ | 25,910 | $ | 19,118 | ||||||
Add: | Interest expense | 887 | 1,568 | 1,801 | 3,886 | |||||||||
Income tax expense | 4,445 | 3,346 | 7,442 | 5,102 | ||||||||||
Depreciation and amortization | 10,891 | 11,394 | 22,058 | 21,936 | ||||||||||
Stock-based compensation | 4,826 | 4,094 | 9,615 | 7,790 | ||||||||||
Acquisition-related costs* | (506 | ) | 180 | (151 | ) | 629 | ||||||||
Adjusted EBITDA | $ | 37,811 | $ | 34,220 | $ | 66,675 | $ | 58,461 |
* Acquisition-related costs include contingent consideration fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
Three Months Ended | Six Months Ended | |||||||||||||||
Net Income - per diluted share | $ | 1.13 | $ | 0.91 | $ | 1.70 | $ | 1.35 | ||||||||
Per diluted share adjustments: | ||||||||||||||||
Add: | Amortization expense of intangible assets and acquisition-related costs | 0.50 | 0.58 | 1.06 | 1.21 | |||||||||||
Income tax expense | (0.14 | ) | (0.15 | ) | (0.28 | ) | (0.31 | ) | ||||||||
Adjusted EPS | $ | 1.49 | $ | 1.34 | $ | 2.48 | $ | 2.25 |
Source:
2022 GlobeNewswire, Inc., source