GlobeNewswire Inc | Mar 2, 2021 04:01PM EST

March 02, 2021

HOLLYWOOD, Fla., March 02, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) (NV5 or the Company), a provider of compliance, technology, and engineering consulting solutions, today reported financial results for the fourth quarter and full year ended January2, 2021.

NV5 delivered another strong performance in 2020 with significant growth in revenues, EBITDA, margin, and cash flows from operations in spite of the coronavirus pandemic. The integration of our acquisitions delivered margin improvement through efficiencies of scale and our shared services model, and strong cash flows allowed accelerated payments of our debt revolver. We enter 2021 with strong momentum and expect to see benefits from a market focus on reliable delivery of power and environmental sustainability, a healthy acquisition pipeline, and the reopening of the economy throughout 2021, said Dickerson Wright, PE, Chairman and CEO of NV5.

Fourth Quarter 2020Financial Highlights

-- Gross Revenues grew by 22% in the fourth quarter of 2020 to $161.2 million compared to $132.6 million in the fourth quarter of 2019. -- Net income grew by 28% in the fourth quarter of 2020 to $4.6 million compared to $3.6 million in the fourth quarter of 2019, with the fourth quarter of 2020 including $2.2 million of additional interest expense and $3.0 million of additional intangible amortization expense compared to fourth quarter of 2019. -- Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew by 37% in the fourth quarter of 2020 to $24.4 million compared to $17.9 million in the fourth quarter of 2019. -- GAAP EPS was $0.35 per share in the fourth quarter of 2020. -- Adjusted EPS in the fourth quarter of 2020 was $0.82 per share compared to $0.64 per share in the fourth quarter of 2019, a 28% increase. -- Cash flows from operating activities for the fourth quarter of 2020 grew to $23.6million compared to $18.3million in the fourth quarter of 2019, a 29% increase.

Full Year 2020 Financial Highlights

-- Gross Revenues grew by 30% in 2020 to $659.3 million compared to $508.9 million in 2019. -- Net income in 2020 was $21.0 million compared to $23.8 million in 2019, with 2020 including $12.9 million of additional interest expense, $14.1 million of additional intangible amortization expense, and a higher effective income tax rate compared to 2019. -- Adjusted EBITDA, which excludes stock-based compensation and acquisition-related costs, grew by 52% in 2020 to $105.4 million compared to $69.3 million in 2019. -- GAAP EPS was $1.65 per share in 2020. -- Adjusted EPS in 2020 was $3.72 per share compared to $3.25 per share in 2019, a 14% increase. -- Cash flows from operating activities in 2020 were $96.0 million compared to $39.9 million in 2019, a 141% increase.

52/53 Week Fiscal Year

NV5 uses a 52/53 week fiscal year ending on the Saturday closest to the calendar quarter end. As a result, 2020 included 53 weeks compared to 2019, which included 52 weeks.

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 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 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 fourth quarter and full year 2020 financial results at 4:30 p.m. (Eastern Time) on March 2, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date: Tuesday, March 2, 2021Time: 4:30 p.m. EasternToll-free dial-in number: +1 833-900-1538International dial-in number: +1 236-712-2278Conference ID: 4096283Webcast: 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 support services, utility services, buildings & program management, environmental health sciences, and geospatial technology services. NV5 operates out of more than 106 offices nationwide and abroad. For additional information, please visit the Companys 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 Companys 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 CochranVice President, Marketing & Investor RelationsTel: +1-954-637-8048Email: ir@nv5.com

Source: NV5 Global, Inc.

NV5 GLOBAL, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(UNAUDITED)(in thousands, except share data)

January 2, December 2021 28, 2019Assets Current assets: Cash and cash equivalents $ 64,909 $ 31,825 Billed receivables, net 142,705 131,041 Unbilled receivables, net 74,458 79,428 Prepaid expenses and other current assets 6,804 8,906 Total current assets 288,876 251,200 Property and equipment, net 27,011 25,733 Right-of-use lease assets, net 43,607 46,313 Intangible assets, net 174,931 255,961 Goodwill 343,796 309,216 Other assets 2,954 4,714 Total Assets $ 881,175 $ 893,137 Liabilities and Stockholders? Equity Current liabilities: Accounts payable $ 39,989 $ 36,116 Accrued liabilities 45,325 47,432 Billings in excess of costs and estimated earnings on 24,962 3,303 uncompleted contractsClient deposits 380 221 Current portion of contingent consideration 1,334 1,954 Current portion of notes payable and other 24,196 25,332 obligationsTotal current liabilities 136,186 114,358 Contingent consideration, less current portion 1,066 2,048 Other long-term liabilities 38,737 34,573 Notes payable and other obligations, less current 283,326 332,854 portionDeferred income tax liabilities, net 27,791 53,341 Total liabilities 487,106 537,174 Commitments and contingencies Stockholders? equity: Preferred stock, $0.01 par value; 5,000,000 shares ? ? authorized, no shares issued and outstandingCommon stock, $0.01 par value; 45,000,000 sharesauthorized, 13,270,131 and 12,852,357 shares issued and outstanding as of January 2, 2021 andDecember28,2019, respectively 133 129 Additional paid-in capital 268,271 251,187 Retained earnings 125,665 104,647 Total stockholders? equity 394,069 355,963 Total liabilities and stockholders? equity $ 881,175 $ 893,137

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

Three Months Ended Twelve Months Ended January 2, December 28, January 2, December 28, 2021 2019 2021 2019Gross revenues $ 161,178 $ 132,598 $ 659,296 $ 508,938 Direct costs: Salaries and 39,936 39,261 176,865 153,023 wagesSub-consultant 28,929 22,629 107,602 79,598 servicesOther direct 12,519 5,690 40,291 30,935 costsTotal direct 81,384 67,581 324,758 263,556 costs Gross Profit 79,794 65,017 334,538 245,382 Operating Expenses:Salaries andwages, payroll 43,360 35,126 176,816 128,558 taxes andbenefitsGeneral and 12,019 11,871 50,214 42,656 administrativeFacilities andfacilities 5,155 4,737 21,280 17,145 relatedDepreciationand 9,691 6,908 42,079 25,816 amortizationTotaloperating 70,225 58,643 290,389 214,175 expenses Income from 9,569 6,374 44,149 31,207 operations Interest (3,260 ) (1,045 ) (15,181 ) (2,275 )expense Income beforeincome tax 6,309 5,329 28,968 28,932 expenseIncome tax (1,735 ) (1,754 ) (7,950 ) (5,176 )expenseNet Income andComprehensive $ 4,574 $ 3,575 $ 21,018 $ 23,756 Income Earnings per share:Basic $ 0.37 $ 0.29 $ 1.70 $ 1.96 Diluted $ 0.35 $ 0.28 $ 1.65 $ 1.90 Weightedaverage common sharesoutstanding:Basic 12,468,444 12,204,650 12,362,786 12,116,185 Diluted 12,922,121 12,589,800 12,713,075 12,513,034

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

Twelve Months Ended January 2, December 28, 2021 2019Cash flows from operating activities: Net income $ 21,018 $ 23,756 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 45,488 25,816 Non-cash lease expense 9,469 9,410 Provision for doubtful accounts 4,311 1,239 Stock-based compensation 14,955 10,430 Change in fair value of contingent consideration ? (216 )(Gain) loss on disposals of property and equipment (462 ) 21 Deferred income taxes (13,064 ) (6,634 )Amortization of debt issuance costs 896 131 Changes in operating assets and liabilities, net of impact of acquisitions:Billed receivables (13,592 ) 5,140 Unbilled receivables 1,996 (11,807 )Prepaid expenses and other assets 4,680 (3,599 )Accounts payable 3,367 534 Accrued liabilities (4,865 ) (7,315 )Income taxes payable ? (2,697 )Billings in excess of costs and estimated earnings on 21,659 (4,322 )uncompleted contractsDeposits 153 13 Net cash provided by operating activities 96,009 39,900 Cash flows from investing activities: Cash paid for acquisitions (net of cash received from (882 ) (348,375 )acquisitions)Proceeds from sale of assets 1,670 ? Purchase of property and equipment (9,855 ) (2,625 )Net cash used in investing activities (9,067 ) (351,000 ) Cash flows from financing activities: Borrowings from Senior Credit Facility ? 330,457 Payments of borrowings from Senior Credit Facility (36,625 ) (10,000 )Payments on notes payable (15,207 ) (13,393 )Payments of contingent consideration (1,579 ) (1,202 )Payments of debt issuance costs (447 ) (3,676 )Net cash (used in) provided by financing activities (53,858 ) 302,186 Net increase (decrease) in cash and cash equivalents 33,084 (8,914 )Cash and cash equivalents ? beginning of period 31,825 40,739 Cash and cash equivalents ? end of period $ 64,909 $ 31,825

NV5 GLOBAL, INC. AND SUBSIDIARIESRECONCILIATION 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 January 2, 2021 December 28, January 2, December 28, 2019 2021 2019Net Income $ 4,574 $ 3,575 $ 21,018 $ 23,756 Add: Interest expense 3,260 1,045 15,181 2,275 Income tax expense 1,735 1,754 7,950 5,176 Deprecation and 10,808 6,908 45,488 25,816 amortization Stock-based 4,055 3,441 14,955 10,430 compensation Acquisition-related 11 1,148 856 1,819 costsAdjusted EBITDA $ 24,443 $ 17,871 $ 105,448 $ 69,272

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

Three Months Ended Twelve Months Ended January 2, December January 2, December 2021 28, 2019 2021 28, 2019Net Income - per diluted $ 0.35 $ 0.28 $ 1.65 $ 1.90 sharePer diluted share adjustments: Amortization expense ofAdd: intangible assets 0.63 0.50 2.79 1.79 and acquisition-related costs Income tax expense (0.16 ) (0.14 ) (0.72 ) (0.44 )Adjusted EPS $ 0.82 $ 0.64 $ 3.72 $ 3.25