"NV5 delivered strong first quarter results in revenue and profitability, exceeding our budget and analyst consensus for revenue and growing cash flows from operations 73% versus the first quarter of 2023. The company is seeing tremendous revenue growth in services for artificial intelligence (AI) data centers, and we believe we have become a leader in infrastructure design and commissioning for the AI data center market, with customers coming to us for their international and domestic data center facilities.
Our accelerated organic growth initiative has resulted in 8% organic growth1 for the quarter. We have completed four acquisitions in 2024 to date, enhancing our
First Quarter 2024 Results
The Company's cash flows grew 73% over the same quarter last year as it generated
The Federal continuing resolution that impacted the fourth quarter of last year and much of the first quarter of this year is now behind us. As a result, we have raised 2024 guidance for revenue and earnings per share.
- Gross revenue guidance for the full year 2024 is now between $937 million and $942 million, an increase from $930 million to $935 million.
- 2024 GAAP EPS guidance is now between
$2.87 per share and$2.93 per share, an increase from$2.86 per share to$2.92 per share. - 2024 Adjusted EPS guidance has been raised to
$5.05 per share to$5.11 per share, an increase from$5.00 per share to$5.06 per share.
Due to our M&A activity, our intangible asset amortization has increased by
Our Adjusted EBITDA increased 4% to
_______________
1 Based on revenue most applicable to specific business line (gross revenue or gross revenue generated by internal labor) and excluding revenue from two smaller businesses not accepting new contracts.
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 first quarter 2024 financial results at
Date: | ||
Time: | ||
Toll-free dial-in number: | +1 800-715-9871 | |
International dial-in number: | +1 646-307-1963 | |
Conference ID: | 2719957 | |
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 | $ | 44,766 | $ | 44,824 | |||
Billed receivables, net | 149,206 | 152,593 | |||||
Unbilled receivables, net | 120,705 | 113,271 | |||||
Prepaid expenses and other current assets | 17,435 | 18,376 | |||||
Total current assets | 332,112 | 329,064 | |||||
Property and equipment, net | 54,103 | 50,268 | |||||
Right-of-use lease assets, net | 37,942 | 36,836 | |||||
Intangible assets, net | 246,074 | 226,702 | |||||
536,908 | 524,573 | ||||||
Deferred income tax assets, net | 2,339 | — | |||||
Other assets | 2,479 | 3,149 | |||||
Total Assets | $ | 1,211,957 | $ | 1,170,592 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 52,781 | $ | 54,865 | |||
Accrued liabilities | 53,999 | 47,423 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 40,212 | 41,679 | |||||
Other current liabilities | 2,167 | 2,263 | |||||
Current portion of contingent consideration | 3,436 | 3,922 | |||||
Current portion of notes payable and other obligations | 9,634 | 9,267 | |||||
Total current liabilities | 162,229 | 159,419 | |||||
Contingent consideration, less current portion | 1,610 | 143 | |||||
Other long-term liabilities | 27,564 | 26,930 | |||||
Notes payable and other obligations, less current portion | 237,274 | 205,468 | |||||
Deferred income tax liabilities, net | — | 2,837 | |||||
Total liabilities | 428,677 | 394,797 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 160 | 159 | |||||
Additional paid-in capital | 515,833 | 508,256 | |||||
Accumulated other comprehensive loss | (519 | ) | (18 | ) | |||
Retained earnings | 267,806 | 267,398 | |||||
Total stockholders’ equity | 783,280 | 775,795 | |||||
Total liabilities and stockholders’ equity | $ | 1,211,957 | $ | 1,170,592 | |||
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (in thousands, except share data) | |||||||
Three Months Ended | |||||||
Gross revenues | $ | 213,295 | $ | 184,317 | |||
Direct costs: | |||||||
Salaries and wages | 56,454 | 48,384 | |||||
Sub-consultant services | 31,260 | 27,615 | |||||
Other direct costs | 12,753 | 12,320 | |||||
Total direct costs | 100,467 | 88,319 | |||||
Gross profit | 112,828 | 95,998 | |||||
Operating expenses: | |||||||
Salaries and wages, payroll taxes, and benefits | 65,434 | 52,672 | |||||
General and administrative | 22,243 | 17,920 | |||||
Facilities and facilities related | 5,960 | 5,374 | |||||
Depreciation and amortization | 14,482 | 11,047 | |||||
Total operating expenses | 108,119 | 87,013 | |||||
Income from operations | 4,709 | 8,985 | |||||
Interest expense | (4,191 | ) | (1,581 | ) | |||
Income before income tax expense | 518 | 7,404 | |||||
Income tax expense | (110 | ) | (1,457 | ) | |||
Net income | $ | 408 | $ | 5,947 | |||
Earnings per share: | |||||||
Basic | $ | 0.03 | $ | 0.40 | |||
Diluted | $ | 0.03 | $ | 0.39 | |||
Weighted average common shares outstanding: | |||||||
Basic | 15,267,151 | 14,883,487 | |||||
Diluted | 15,634,026 | 15,383,437 | |||||
Comprehensive income (loss): | |||||||
Net income | $ | 408 | $ | 5,947 | |||
Foreign currency translation losses, net of tax | (501 | ) | — | ||||
Comprehensive income (loss) | $ | (93 | ) | $ | 5,947 | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||||||
Three Months Ended | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 408 | $ | 5,947 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,043 | 12,302 | |||||
Non-cash lease expense | 3,293 | 3,286 | |||||
Provision for doubtful accounts | 491 | 240 | |||||
Stock-based compensation | 6,666 | 5,826 | |||||
Change in fair value of contingent consideration | — | (859 | ) | ||||
Gain on disposals of property and equipment | (3 | ) | (23 | ) | |||
Other | (67 | ) | — | ||||
Deferred income taxes | (5,175 | ) | (5,603 | ) | |||
Amortization of debt issuance costs | 185 | 194 | |||||
Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
Billed receivables | 7,283 | 9,560 | |||||
Unbilled receivables | (5,727 | ) | (13,999 | ) | |||
Prepaid expenses and other assets | 1,496 | 4,857 | |||||
Accounts payable | (3,584 | ) | (15,884 | ) | |||
Accrued liabilities and other long-term liabilities | 675 | 2,375 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (1,516 | ) | 3,906 | ||||
Contingent consideration | (815 | ) | (800 | ) | |||
Other current liabilities | (99 | ) | (43 | ) | |||
Net cash provided by operating activities | 19,554 | 11,282 | |||||
Cash flows from investing activities: | |||||||
Cash paid for acquisitions (net of cash received from acquisitions) | (45,334 | ) | (117,587 | ) | |||
Proceeds from sale of assets | 22 | — | |||||
Purchase of property and equipment | (3,673 | ) | (6,110 | ) | |||
Net cash used in investing activities | (48,985 | ) | (123,697 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings from Senior Credit Facility | 35,000 | 110,000 | |||||
Payments on notes payable and other obligations | (4,380 | ) | (4,085 | ) | |||
Payments of contingent consideration | (1,025 | ) | (700 | ) | |||
Net cash provided by financing activities | 29,595 | 105,215 | |||||
Effect of exchange rate changes on cash and cash equivalents | (222 | ) | — | ||||
Net decrease in cash and cash equivalents | (58 | ) | (7,200 | ) | |||
Cash and cash equivalents – beginning of period | 44,824 | 38,541 | |||||
Cash and cash equivalents – end of period | $ | 44,766 | $ | 31,341 | |||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES (UNAUDITED) (in thousands, except share data) |
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
Three Months Ended | ||||||||
Net Income | $ | 408 | $ | 5,947 | ||||
Add: | Interest expense | 4,191 | 1,581 | |||||
Income tax expense | 110 | 1,457 | ||||||
Depreciation and amortization | 16,043 | 12,302 | ||||||
Stock-based compensation | 6,666 | 5,826 | ||||||
Acquisition-related costs* | 1,312 | 632 | ||||||
Adjusted EBITDA | $ | 28,730 | $ | 27,745 | ||||
* Acquisition-related costs include contingent consideration fair value adjustments.
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
Three Months Ended | ||||||||
Net Income - per diluted share | $ | 0.03 | $ | 0.39 | ||||
Per diluted share adjustments: | ||||||||
Add: | Amortization expense of intangible assets and acquisition-related costs | 0.84 | 0.65 | |||||
Income tax expense | (0.21 | ) | (0.16 | ) | ||||
Adjusted EPS | $ | 0.66 | $ | 0.88 | ||||
Source:
2024 GlobeNewswire, Inc., source