(UNAUDITED)
(in thousands)
| Six Months Ended | |||||||
| July 1, 2023 | July 2, 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 21,360 | $ | 25,910 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 27,205 | 22,058 | |||||
| Non-cash lease expense | 6,784 | 6,265 | |||||
| Provision for doubtful accounts | 607 | 594 | |||||
| Stock-based compensation | 10,728 | 9,615 | |||||
| Change in fair value of contingent consideration | (7,514 | ) | (518 | ) | |||
| Gain on disposals of property and equipment | (408 | ) | (61 | ) | |||
| Deferred income taxes | (7,673 | ) | (3,014 | ) | |||
| Amortization of debt issuance costs | 365 | 370 | |||||
| Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
| Billed receivables | 10,882 | 15,152 | |||||
| Unbilled receivables | (9,842 | ) | (3,801 | ) | |||
| Prepaid expenses and other assets | (4,691 | ) | (511 | ) | |||
| Accounts payable | (8,164 | ) | (4,349 | ) | |||
| Accrued liabilities and other long-term liabilities | (5,698 | ) | (6,309 | ) | |||
| Billings in excess of costs and estimated earnings on uncompleted contracts | (7,606 | ) | (6,867 | ) | |||
| Contingent consideration | (1,307 | ) | — | ||||
| Other current liabilities | 474 | (276 | ) | ||||
| Net cash provided by operating activities | 25,502 | 54,258 | |||||
| Cash flows from investing activities: | |||||||
| Cash paid for acquisitions (net of cash received from acquisitions) | (186,242 | ) | (4,670 | ) | |||
| Proceeds from sale of assets | 295 | 48 | |||||
| Purchase of property and equipment | (10,239 | ) | (10,379 | ) | |||
| Net cash used in investing activities | (196,186 | ) | (15,001 | ) | |||
| Cash flows from financing activities: | |||||||
| Borrowings from Senior Credit Facility | 180,000 | — | |||||
| Payments on notes payable | (5,131 | ) | (6,218 | ) | |||
| Payments of contingent consideration | (793 | ) | (1,597 | ) | |||
| Payments of borrowings from Senior Credit Facility | (13,000 | ) | (35,000 | ) | |||
| Net cash provided by (used in) financing activities | 161,076 | (42,815 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (106 | ) | — | ||||
| Net decrease in cash and cash equivalents | (9,714 | ) | (3,558 | ) | |||
| Cash and cash equivalents – beginning of period | 38,541 | 47,980 | |||||
| Cash and cash equivalents – end of period | $ | 28,827 | $ | 44,422 | |||
NV5 GLOBAL, INC. AND SUBSIDIARIES
