GlobeNewswire Inc | Aug 10, 2021 04:02PM EDT

August 10, 2021

HOLLYWOOD, Fla., Aug. 10, 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 second quarter ended July3, 2021.

"NV5s record performance in the second quarter, led by our strategy, business model, and ability to adapt to market conditions, resulted in the highest gross revenues, net income, adjusted EBITDA, and adjusted EPS that NV5 has delivered in a quarter since inception," said Dickerson Wright, PE, Chairman and CEO of NV5. Wright added, "Public sector investments in infrastructure and utility safety and reliability continue to drive growth across our service verticals. The strong performance of our real estate transactions, energy efficiency, and international businesses demonstrates the ongoing recovery of our businesses that were impacted by the COVID pandemic. We strengthened our Environmental Health Sciences (EHS) vertical with the acquisition of PES Environmental in May. Environmental, social, and governance (ESG) continue to be increasing drivers of our business with the EHS vertical growing 71% year-over-year in Q2 supported by the organic growth of our real estate transactions business. We expect to build upon our strong second quarter momentum and are raising our guidance on gross revenues, GAAP EPS and adjusted EPS for the full year 2021."

Second Quarter 2021Results

-- Gross revenues in the second quarter of 2021 were $179.5 million compared to $162.7 million in the second quarter of 2020, a 10% increase. -- Net income in the second quarter of 2021 was $13.6 million compared to $4.5 million in the second quarter of 2020, a 203% increase. -- Adjusted EBITDA in the second quarter of 2021 was $34.2million compared to $26.9million in the second quarter of 2020, a 27% increase. -- GAAP EPS in the second quarter of 2021 was $0.91 per share compared to $0.36 per share in the second quarter of 2020, a 153% increase. -- Adjusted EPS in the second quarter of 2021 was $1.34 per share compared to $0.93 per share in the second quarter of 2020, a 44% increase. Diluted weighted average shares were 14,965,188 in the second quarter of 2021 compared to 12,609,918 in the second quarter of 2020. -- Full year 2021 guidance as follows: Increase gross revenues to a range of $705 million to $727 million (previously $695 million to $720 million).Increase GAAP EPS to a range of $2.45 per share to $2.84 per share (previously $2.36 per share to $2.78 per share).Increase Adjusted EPS to a range of $4.20 per share to $4.55 per share (previously $4.05 per share to $4.45 per share).

Six Months Ended July 3, 2021 Results

-- Gross revenues in the first half of 2021 were $332.6 million compared to $328.2 million in the first half of 2020. -- Cash flows from operations in the first half of 2021 were $62.2 million compared to $50.7 million in the first half of 2020, a 23% increase. -- Net income in the first half of 2021 was $19.1 million compared to $8.7 million in the first half of 2020, a 120% increase. -- Adjusted EBITDA in the first half of 2021 was $58.5 million compared to $51.1 million in the first half of 2020, a 14% increase. -- GAAP EPS in the first half of 2021 was $1.35 per share compared to $0.69 per share in the first half of 2020, a 96% increase. -- Adjusted EPS in the first half of 2021 was $2.25 per share compared to $1.77 per share in the first half of 2020, a 27% increase. Diluted weighted average shares were 14,196,035 for the six months ended July 3, 2021 compared to 12,601,830 in the six months ended June 27, 2020.

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.

Conference Call

NV5 will host a conference call to discuss its second quarter 2021 financial results at 4:30 p.m. (Eastern Time) on August10, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date: Tuesday, August 10, 2021Time: 4:30 p.m. EasternToll-free dial-in number: +1 833-900-1538International dial-in number: +1 236-712-2278Conference ID: 6988609Webcast: 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, engineering, and environmental 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 Companys 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 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)

July 3, 2021 January 2, 2021Assets Current assets: Cash and cash equivalents $ 113,023 $ 64,909 Billed receivables, net 109,122 142,705 Unbilled receivables, net 83,586 74,458 Prepaid expenses and other current assets 11,013 6,804 Total current assets 316,744 288,876 Property and equipment, net 29,444 27,011 Right-of-use lease assets, net 44,196 43,607 Intangible assets, net 175,093 174,931 Goodwill 364,562 343,796 Other assets 3,364 2,954 Total Assets $ 933,403 $ 881,175 Liabilities and Stockholders? Equity Current liabilities: Accounts payable $ 38,446 $ 39,989 Accrued liabilities 47,319 45,325 Billings in excess of costs and estimated earnings 16,805 24,962 on uncompleted contractsClient deposits 706 380 Current portion of contingent consideration 3,933 1,334 Current portion of notes payable and other 26,989 24,196 obligationsTotal current liabilities 134,198 136,186 Contingent consideration, less current portion 1,374 1,066 Other long-term liabilities 39,762 38,737 Notes payable and other obligations, less current 142,347 283,326 portionDeferred income tax liabilities, net 29,736 27,791 Total liabilities 347,417 487,106 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, 15,365,382 and 13,270,131 shares issued 154 133 and outstanding as of July3, 2021 and January 2,2021, respectivelyAdditional paid-in capital 441,049 268,271 Retained earnings 144,783 125,665 Total stockholders? equity 585,986 394,069 Total liabilities and stockholders? equity $ 933,403 $ 881,175

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

Three Months Ended Six Months Ended July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020Gross revenues $ 179,503 $ 162,689 $ 332,598 $ 328,169 Direct costs: Salaries and 45,025 45,079 86,485 90,114 wagesSub-consultant 29,978 25,244 53,225 52,670 servicesOther direct 13,114 8,914 22,912 17,402 costsTotal direct 88,117 79,237 162,622 160,186 costs Gross profit 91,386 83,452 169,976 167,983 Operating expenses:Salaries andwages, payroll 44,213 44,149 87,164 89,706 taxes andbenefitsGeneral and 13,367 11,824 24,915 24,980 administrativeFacilities andfacilities 5,038 5,357 10,135 10,754 relatedDepreciationand 10,216 11,160 19,656 22,200 amortizationTotaloperating 72,834 72,490 141,870 147,640 expenses Income from 18,552 10,962 28,106 20,343 operations Interest (1,568 ) (4,403 ) (3,886 ) (8,190 )expense Income beforeincome tax 16,984 6,559 24,220 12,153 expenseIncome tax (3,346 ) (2,056 ) (5,102 ) (3,462 )expenseNet income andcomprehensive $ 13,638 $ 4,503 $ 19,118 $ 8,691 income Earnings per share:Basic $ 0.95 $ 0.37 $ 1.40 $ 0.71 Diluted $ 0.91 $ 0.36 $ 1.35 $ 0.69 Weightedaverage common sharesoutstanding:Basic 14,419,671 12,308,965 13,648,247 12,271,221 Diluted 14,965,188 12,609,918 14,196,035 12,601,830

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

Six Months Ended July 3, 2021 June 27, 2020Cash flows from operating activities: Net income $ 19,118 $ 8,691 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 21,936 23,277 Non-cash lease expense 4,884 4,307 Provision for doubtful accounts 583 1,690 Stock-based compensation 7,790 6,880 Change in fair value of contingent consideration 235 ? Gain on disposals of property and equipment (581 ) (350 )Deferred income taxes (2,988 ) (869 )Amortization of debt issuance costs 454 442 Changes in operating assets and liabilities, net of impact of acquisitions:Billed receivables 36,727 (1,134 )Unbilled receivables (7,238 ) (2,286 )Prepaid expenses and other assets (4,208 ) 2,117 Accounts payable (2,446 ) 138 Accrued liabilities (4,187 ) 1,922 Income taxes payable ? 613 Billings in excess of costs and estimated earnings (8,158 ) 5,241 on uncompleted contractsDeposits 307 66 Net cash provided by operating activities 62,228 50,745 Cash flows from investing activities: Cash paid for acquisitions (net of cash received (21,652 ) ? from acquisitions)Proceeds from sale of assets 460 437 Purchase of property and equipment (4,028 ) (6,145 )Net cash used in investing activities (25,220 ) (5,708 ) Cash flows from financing activities: Proceeds from common stock offering 172,500 ? Payments on notes payable (5,325 ) (8,415 )Payments of contingent consideration (413 ) (913 )Payments of borrowings from Senior Credit Facility (145,082 ) (1,875 )Payments of common stock offering costs (10,522 ) ? Purchases of common stock tendered by employees tosatisfy the required withholding taxes related to (52 ) ? stock-based compensationPayments of debt issuance costs ? (447 )Net cash provided by (used in) financing activities 11,106 (11,650 ) Net increase in cash and cash equivalents 48,114 33,387 Cash and cash equivalents ? beginning of period 64,909 31,825 Cash and cash equivalents ? end of period $ 113,023 $ 65,212

NV5 GLOBAL, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP FINANCIAL MEASURES(UNAUDITED)(in thousands)

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

Three Months Ended Six Months Ended July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020Net Income $ 13,638 $ 4,503 $ 19,118 $ 8,691 Add: Interest expense 1,568 4,403 3,886 8,190 Income tax expense 3,346 2,056 5,102 3,462 Depreciation and 11,394 12,237 21,936 23,277 amortization Stock-based 4,094 3,501 7,790 6,880 compensation Acquisition-related 180 231 629 571 costsAdjusted EBITDA $ 34,220 $ 26,931 $ 58,461 $ 51,071

RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, 2021 2020 2021 2020Net Income - per diluted $ 0.91 $ 0.36 $ 1.35 $ 0.69 sharePer diluted share adjustments: Amortization expense ofAdd: intangible assets 0.58 0.77 1.21 1.46 and acquisition-related costs Income tax expense (0.15 ) (0.20 ) (0.31 ) (0.38 )Adjusted EPS $ 1.34 $ 0.93 $ 2.25 $ 1.77