NV5 Announces Record Full Year 2022 Results and Issues Full Year 2023 Guidance
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NV5 Announces Record Full Year 2022 Results and Issues Full Year 2023 Guidance

HOLLYWOOD, Fla., Feb. 23, 2023 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, and consulting solutions, today reported financial results for the full year ended December 31, 2022.

"We are pleased to have delivered another strong year for revenues and earnings in 2022, despite significant headwinds in the commercial economy due to historic interest rate increases. All three of our reporting segments grew in 2022, with a record performance by the geospatial business. We also completed five strategic acquisitions in 2022, strengthening our utility geospatial, building technology, and materials testing offerings. We anticipate a successful year in 2023. We enter 2023 with a strong backlog to drive organic growth and profitability, and we anticipate the best year for mergers and acquisitions in our history," said Dickerson Wright, PE, Chairman and CEO of NV5.

Full Year 2022 Financial Highlights

Fiscal Year 2023 Guidance

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 and acquisition-related costs, net of tax benefits. 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 full year 2022 financial results at 4:30 p.m. (Eastern Time) on February 23, 2023. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:Thursday, February 23, 2023
Time:4:30 p.m. Eastern
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

NV5 Global, Inc. (NASDAQ: NVEE) is a provider of technology, conformity assessment, and consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: testing, inspection & consulting, infrastructure engineering, utility services, buildings & program management, environmental health sciences, and geospatial technology services to deliver innovative, sustainable solutions to complex issues and improve lives in our communities. NV5 operates out of more than 100 offices nationwide and internationally. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on LinkedIn, Twitter, Facebook, and Instagram.

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)

 December 31, 2022 January 1, 2022
Assets   
Current assets:   
Cash and cash equivalents$38,541 $47,980
Billed receivables, net 145,637  153,814
Unbilled receivables, net 92,862  89,734
Prepaid expenses and other current assets 13,636  12,442
Total current assets 290,676  303,970
Property and equipment, net 41,640  32,729
Right-of-use lease assets, net 39,314  44,260
Intangible assets, net 160,431  188,224
Goodwill 400,957  389,916
Other assets 2,705  2,844
Total Assets$935,723 $961,943
    
Liabilities and Stockholders’ Equity   
    
Current liabilities:   
Accounts payable$57,771 $55,954
Accrued liabilities 44,313  50,461
Billings in excess of costs and estimated earnings on uncompleted contracts 31,183  29,444
Other current liabilities 1,597  1,551
Current portion of contingent consideration 10,854  5,807
Current portion of notes payable and other obligations 15,176  20,734
Total current liabilities 160,894  163,951
Contingent consideration, less current portion 4,481  2,521
Other long-term liabilities 29,542  34,304
Notes payable and other obligations, less current portion 39,673  111,062
Deferred income tax liabilities, net 6,893  25,385
Total liabilities 241,483  337,223
    
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, 15,523,300 and 15,414,005 shares issued and outstanding as of December 31, 2022 and January 1, 2022, respectively 155  154
Additional paid-in capital 471,300  451,754
Retained earnings 222,785  172,812
Total stockholders’ equity 694,240  624,720
Total liabilities and stockholders’ equity$935,723 $961,943
      

NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)

 Three Months Ended Twelve Months Ended
 December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022
Gross revenues$189,818  $188,555  $786,778  $706,706 
        
Direct costs:       
Salaries and wages 44,830   43,417   186,806   175,047 
Sub-consultant services 37,084   35,995   153,641   124,998 
Other direct costs 14,931   11,633   60,357   47,347 
Total direct costs 96,845   91,045   400,804   347,392 
        
Gross profit 92,973   97,510   385,974   359,314 
        
Operating expenses:       
Salaries and wages, payroll taxes, and benefits 46,769   45,077   193,488   176,838 
General and administrative 18,501   16,095   66,114   53,986 
Facilities and facilities related 5,431   4,863   21,252   20,193 
Depreciation and amortization 9,565   10,189   38,938   39,953 
Total operating expenses 80,266   76,224   319,792   290,970 
        
Income from operations 12,707   21,286   66,182   68,344 
        
Interest expense (1,005)  (878)  (3,808)  (6,239)
        
Income before income tax expense 11,702   20,408   62,374   62,105 
Income tax expense (3,702)  (4,953)  (12,401)  (14,958)
Net income and comprehensive income$8,000  $15,455  $49,973  $47,147 
        
Earnings per share:       
Basic$0.54  $1.05  $3.39  $3.34 
Diluted$0.52  $1.02  $3.27  $3.22 
        
Weighted average common shares outstanding:       
Basic 14,816,773   14,651,218   14,753,738   14,135,333 
Diluted 15,320,123   15,159,314   15,260,186   14,656,381 
                

NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

 Twelve Months Ended
 December 31, 2022 January 1, 2022
Cash flows from operating activities:   
Net income$49,973  $47,147 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization 44,063   44,971 
Non-cash lease expense 12,813   10,191 
Provision for doubtful accounts (60)  1,243 
Stock-based compensation 19,326   16,301 
Change in fair value of contingent consideration 2,972   2,333 
Gain on disposals of property and equipment (328)  (1,102)
Deferred income taxes (18,492)  (7,007)
Amortization of debt issuance costs 724   1,210 
Changes in operating assets and liabilities, net of impact of acquisitions:   
Billed receivables 10,212   2,677 
Unbilled receivables (3,303)  (12,573)
Prepaid expenses and other assets (1,125)  (4,792)
Accounts payable (1,673)  8,181 
Accrued liabilities and other long-term liabilities (19,901)  (12,507)
Contingent consideration (800)   
Billings in excess of costs and estimated earnings on uncompleted contracts (296)  4,005 
Other current liabilities (125)  1,164 
Net cash provided by operating activities 93,980   101,442 
    
Cash flows from investing activities:   
Cash paid for acquisitions (net of cash received from acquisitions) (5,908)  (67,995)
Proceeds from sale of assets 87   1,639 
Purchase of property and equipment (15,689)  (13,903)
Net cash used in investing activities (21,510)  (80,259)
    
Cash flows from financing activities:   
Borrowings from Senior Credit Facility    138,750 
Proceeds from common stock offering    172,500 
Payments of borrowings from Senior Credit Facility (65,000)  (323,832)
Payments on notes payable (15,445)  (12,516)
Payments of contingent consideration (1,464)  (1,329)
Payments of common stock offering costs    (10,657)
Payments of debt issuance costs    (976)
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation    (52)
Net cash used in financing activities (81,909)  (38,112)
    
Net decrease in cash and cash equivalents (9,439)  (16,929)
Cash and cash equivalents – beginning of period 47,980   64,909 
Cash and cash equivalents – end of period$38,541  $47,980 
        

NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES
TO COMPARABLE NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
(in thousands, except share data)

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

  Three Months Ended Twelve Months Ended
  December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022
Net Income$8,000 $15,455 $49,973 $47,147
Add:Interest expense 1,005  878  3,808  6,239
 Income tax expense 3,702  4,953  12,401  14,958
 Depreciation and amortization 10,972  11,574  44,063  44,971
 Stock-based compensation 4,077  4,214  19,326  16,301
 Acquisition-related costs* 4,720  2,667  5,612  3,274
Adjusted EBITDA$32,476 $39,741 $135,183 $132,890

* Acquisition-related costs include contingent consideration fair value adjustments.

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

  Three Months Ended Twelve Months Ended
  December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022
Net Income - per diluted share$0.52  $1.02  $3.27  $3.22 
Per diluted share adjustments:       
Add:Amortization expense of intangible assets 0.52   0.56   2.12   2.29 
 Acquisition-related costs* 0.30   0.18   0.36   0.22 
 Income tax expense (0.13)  (0.15)  (0.56)  (0.62)
Adjusted EPS$1.21  $1.61  $5.19  $5.11 

* Acquisition-related costs include contingent consideration fair value adjustments. 


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