HOLLYWOOD, FL --(Marketwired - November 03, 2016) - NV5 Global, Inc. (
Third Quarter 2016 Financial Highlights and Full Year Guidance
- Total Revenues for the quarter were $61.6 million, an increase of 26% year-over-year. Gross Revenues - GAAP for the quarter were $60.1 million, an increase of 23% year-over-year.
- Net Revenues for the quarter were $47.9 million, an increase of 25% year-over-year.
- Organic revenue growth in the third quarter of 2016 was 1% including project delays, however excluding project delays, organic revenue growth for the quarter would have been 8%.
- EBITDA for the quarter was $7.1 million or 15% of Net Revenues, an increase of 18% from $6.0 million in the third quarter of 2015.
- Gross Margin for the quarter was 46.0% compared to 44.2% in the third quarter of 2015.
- Net income for the quarter was $3.4 million, a 13% increase from $3.0 million in the third quarter of 2015.
- Adjusted EPS for the quarter was $0.41 per diluted share compared to $0.44 per diluted share in the third quarter of 2015. GAAP EPS for the quarter was $0.33 per diluted share compared to $0.38 per diluted share.
- Cash flow from operating activities for the quarter was $4.0 million compared to cash used in operating activities of $1.4 million in the third quarter of 2015.
- Backlog was $205.0 million as of September 30, 2016, a 32% increase from $155.3 million as of December 31, 2015.
- Full-Year 2016 Total Revenues Guidance is expected to range from $225 million to $235 million, Adjusted EPS Guidance is expected to range from $1.49 to $1.62 per diluted share, and GAAP EPS Guidance is expected to range from $1.20 to $1.33 per diluted share.
"Our business continues to be solid. Our backlog is strong, and we are reiterating our published goal of $300 million in run rate revenues exiting 2016. We are seeing an ongoing demand for our services at the federal and state level for infrastructure improvements and updates. We also have several acquisition opportunities in front of us," said Dickerson Wright, PE, Chairman and CEO of NV5. "Although we experienced project delays in the third quarter, due to a legislative impasse impacting our transportation infrastructure business that has since been resolved, we expect the associated revenue to be recovered after the election when the projects fully resume. Excluding these project delays, our organic growth for the quarter would have been 8%. In addition, we announced the JBA acquisition last week, which gives us entry into international, higher margin businesses with reoccurring and continuous revenues not dependent on new construction."
Total Revenues for the third quarter of 2016 were $61.6 million, a 26% increase from the third quarter of 2015. Total Revenues includes intercompany revenues where the Company performed the services in lieu of using a third-party sub-consultant. Gross Revenues - GAAP for the third quarter of 2016 were $60.1 million, a 23% increase from the third quarter of 2015. Net Revenues for the third quarter of 2016 were $47.9 million, an increase of 25% from the third quarter of 2015.
Gross Margin for the third quarter 2016 was 46.0% compared to 44.2% for the third quarter of 2015, which is the result of increased use of our billable professional employees and reduced use of sub-consultants to perform services.
EBITDA for the third quarter of 2016 was $7.1 million or 15% of Net Revenues, an increase of 18% compared to $6.0 million for the third quarter of last year.
Adjusted EPS for the third quarter of 2016 was $0.41 per diluted share vs. $0.44 per diluted share in the third quarter of 2015. Net income for the third quarter of 2016 was $3.4 million, or $0.33 per diluted share, a 13% increase, compared to net income of $3.0 million, or $0.38 per diluted share in the third quarter of 2015. GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 10,353,793 for the third quarter of 2016, compared to weighted-average shares outstanding of 7,943,131 for the third quarter of 2015.
Nine Months Ended September 2016 Financial Highlights
- Total Revenues were $164.5 million in the first nine months of 2016, an increase of 45% from the first nine months of 2015. Gross Revenues - GAAP were $160.9 million in the first nine months of 2016, an increase of 43% from the first nine months of 2015.
- Net Revenues were $130.4 million in the first nine months of 2016, an increase of 47%.
- Organic revenue growth for the first nine months of 2016 was 5%.
- EBITDA for the first nine months of 2016 was $17.7 million, or 14% of Net Revenues, an increase of 48% from $11.9 million for the first nine months of 2015.
- Gross Margin was 47.7% compared to 44.3% for the first nine months of 2015.
- Net income was $8.3 million, an increase of 43% from $5.8 million in the first nine months of 2015.
- Adjusted EPS was $1.11 per diluted share, an increase of 10% from $1.01 per diluted share in the first nine months of 2015. GAAP EPS was $0.90 per diluted share, an increase of 7% from $0.84 per diluted share.
- Cash flow from operating activities for the first nine months of 2016 was $10.7 million compared to cash used in operating activities of $0.4 million for the first nine months of 2015.
Total Revenues for the nine months ended September 30, 2016 were $164.5 million, a 45% increase from the first nine months of 2015. Total Revenues includes intercompany revenues where the Company performed the services in lieu of using a third-party sub-consultant. Gross Revenues - GAAP for the nine months ended September 30, 2016 were $160.9 million, a 43% increase from the first nine months of 2015. Net Revenues for the nine months ended September 30, 2016 were $130.4 million, an increase of 47% from 2015.
Gross Margin for the nine months ended September 30, 2016 was 47.7% compared to 44.3% for the first nine months of 2015, which is the result of increased use of our billable professional employees and reduced use of sub-consultants to perform services.
EBITDA for the nine months ended September 30, 2016 was $17.7 million or 14% of Net Revenues, an increase of 48% from $11.9 million for the same period in 2015.
Adjusted EPS for the nine months ended September 30, 2016 was $1.11 per diluted share vs. $1.01 per diluted share in the nine months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $8.3 million, or $0.90 per diluted share, up from net income of $5.8 million, or $0.84 per diluted share in the nine months ended September 30, 2015. GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 9,215,365 for the nine months ended September 30, 2016, compared to weighted-average shares outstanding of 6,945,274 for the first nine months of 2015.
At September 30, 2016, our cash and cash equivalents were $53.1 million compared to $23.5 million as of December 31, 2015. The increase in cash was due to $47.1 million in net cash proceeds from our secondary equity offering in May 2016 offset by $24.4 million used for acquisitions in 2016. During the first nine months of 2016, we generated $10.7 million of cash from operating activities, compared to cash used from operating activities of $0.4 million for the nine months ended September 30, 2015.
At September 30, 2016, the Company reported backlog of $205.0 million, an increase of 32% from $155.3 million as of December 31, 2015.
Use of Non-GAAP Financial Measures
Total Revenues and Net Revenues are measures of financial performance under U.S. generally accepted accounting principles ("GAAP"). Gross Revenues - GAAP include sub-consultant costs and other direct costs which are generally pass-through costs. Furthermore, Gross Revenues - GAAP eliminates intercompany revenues where the Company performed the service in lieu of using a third-party sub-consultant. Therefore, the Company believes that Total Revenues and Net Revenues, which are non-GAAP financial measures commonly used in our industry, provide a meaningful perspective on its business results. A reconciliation of gross revenues as reported in accordance with GAAP to Total Revenues and Net Revenues is provided at the end of this news release.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a measure of financial performance under GAAP. Management believes EBITDA, in addition to operating profit, net income and other GAAP measures, is a useful indicator of NV5's financial and operating performance and its 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 EBITDA is provided at the end of this news release.
Adjusted earnings per diluted share data ("Adjusted EPS") is not a measure of financial performance under GAAP. Adjusted EPS reflects adjustments to reported diluted earnings per share ("GAAP EPS") data to eliminate amortization expense of intangible assets from acquisitions. As the Company continues its acquisition strategy, the growth in Adjusted EPS will likely increase at a greater rate than GAAP EPS as reported in accordance with GAAP. A reconciliation of GAAP EPS as reported in accordance with GAAP to Adjusted EPS provided at the end of this news release.
NV5's definition of Total Revenues, Net Revenues, 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 contract revenues, net income and diluted earnings per share
Conference Call
NV5 will host a conference call to discuss its third quarter 2016 financial results at 4:30 p.m. (Eastern Time) on November 3, 2016.
Date: Thursday, November 3, 2016 Time: 4:30 p.m. Eastern Toll-free dial-in number: +1 877-311-4180 International dial-in number: +1 616-548-5594 Conference ID: 95195155 Webcast: http://ir.nv5.com
Please dial-in at least 5-10 minutes prior to the start time in order for the operator to log your name and connect you to the conference.
A replay of the conference call will be available approximately one hour following the conclusion of the call through November 10, 2016. To access the replay via telephone, please dial:
Toll-free replay number: +1 855-859-2056 International replay number: +1 404-537-3406 Replay PIN number: 95195155
The conference call will also be webcast live and available for replay via the investors section of the NV5 website, www.NV5.com .
About NV5 NV5 Global, Inc. (
Forward-Looking Statements This press 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.
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (in thousands, except share data) | |||||||||
| (Unaudited) | |||||||||
| September 30, 2016 | December 31, 2015 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 53,066 | $ | 23,476 | |||||
| Accounts receivable, net of allowance for doubtful accounts of $1,895 and $1,536 as of September 30, 2016 and December 31, 2015, respectively | 64,102 | 47,747 | |||||||
| Prepaid expenses and other current assets | 1,195 | 1,092 | |||||||
| Deferred income tax assets | 1,496 | 1,440 | |||||||
| Total current assets | 119,859 | 73,755 | |||||||
| Property and equipment, net | 3,762 | 3,091 | |||||||
| Intangible assets, net | 22,740 | 12,367 | |||||||
| Goodwill | 37,472 | 21,679 | |||||||
| Other assets | 1,014 | 877 | |||||||
| Total Assets | $ | 184,847 | $ | 111,769 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 11,632 | $ | 6,658 | |||||
| Accrued liabilities | 13,013 | 9,564 | |||||||
| Income taxes payable | 755 | 813 | |||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | 215 | 293 | |||||||
| Client deposits | 109 | 110 | |||||||
| Current portion of contingent consideration | 442 | 458 | |||||||
| Current portion of notes payable and other obligations | 6,192 | 4,347 | |||||||
| Total current liabilities | 32,358 | 22,243 | |||||||
| Contingent consideration, less current portion | 467 | 821 | |||||||
| Notes payable and other obligations, less current portion | 9,963 | 6,360 | |||||||
| Deferred income tax liabilities | 1,727 | 1,582 | |||||||
| Total liabilities | 44,515 | 31,006 | |||||||
| 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, 10,394,283 and 8,124,627 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively | 104 | 81 | |||||||
| Additional paid-in capital | 113,488 | 62,260 | |||||||
| Retained earnings | 26,740 | 18,422 | |||||||
| Total stockholders' equity | 140,332 | 80,763 | |||||||
| Total liabilities and stockholders' equity | $ | 184,847 | $ | 111,769 | |||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||||||||||
| (in thousands, except share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
| Gross revenues | $ | 60,091 | $ | 48,701 | $ | 160,888 | $ | 112,335 | |||||||||||
| Direct costs: | |||||||||||||||||||
| Salaries and wages | 20,274 | 16,856 | 53,744 | 39,122 | |||||||||||||||
| Sub-consultant services | 8,854 | 6,859 | 22,246 | 15,306 | |||||||||||||||
| Other direct costs | 3,307 | 3,455 | 8,209 | 8,120 | |||||||||||||||
| Total direct costs | 32,435 | 27,170 | 84,199 | 62,548 | |||||||||||||||
| Gross Profit | 27,656 | 21,531 | 76,689 | 49,787 | |||||||||||||||
| Operating Expenses: | |||||||||||||||||||
| Salaries and wages, payroll taxes and benefits | 14,096 | 10,549 | 40,575 | 25,258 | |||||||||||||||
| General and administrative | 4,415 | 3,422 | 12,640 | 9,162 | |||||||||||||||
| Facilities and facilities related | 2,066 | 1,565 | 5,803 | 3,429 | |||||||||||||||
| Depreciation and amortization | 1,604 | 1,048 | 4,285 | 2,446 | |||||||||||||||
| Total operating expenses | 22,181 | 16,584 | 63,303 | 40,295 | |||||||||||||||
| Income from operations | 5,475 | 4,947 | 13,386 | 9,492 | |||||||||||||||
| Other expense: | |||||||||||||||||||
| Interest expense | (81 | ) | (78 | ) | (221 | ) | (180 | ) | |||||||||||
| Total other expense | (81 | ) | (78 | ) | (221 | ) | (180 | ) | |||||||||||
| Income before income tax expense | 5,394 | 4,869 | 13,165 | 9,312 | |||||||||||||||
| Income tax expense | (1,990 | ) | (1,867 | ) | (4,847 | ) | (3,492 | ) | |||||||||||
| Net income | $ | 3,404 | $ | 3,002 | $ | 8,318 | $ | 5,820 | |||||||||||
| Earnings per share: | |||||||||||||||||||
| Basic | $0.34 | $0.40 | $0.94 | 0.90 | |||||||||||||||
| Diluted | $0.33 | $0.38 | $0.90 | 0.84 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||
| Basic | 9,941,517 | 7,516,063 | 8,826,090 | 6,454,158 | |||||||||||||||
| Diluted | 10,353,793 | 7,943,131 | 9,215,365 | 6,945,274 | |||||||||||||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Unaudited) | |||||||||
| (in thousands) | |||||||||
| Nine Months Ended | |||||||||
| September 30, 2016 | September 30, 2015 | ||||||||
| Cash Flows From Operating Activities: | |||||||||
| Net income | $ | 8,318 | $ | 5,820 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||
| Depreciation and amortization | 4,285 | 2,446 | |||||||
| Provision for doubtful accounts | 246 | 263 | |||||||
| Stock compensation | 1,704 | 1,229 | |||||||
| Change in fair value of contingent consideration | 88 | 72 | |||||||
| Loss on disposal of leasehold improvements | 2 | - | |||||||
| Excess tax benefit from stock based compensation | (155 | ) | (1,536 | ) | |||||
| Deferred income taxes | 88 | 383 | |||||||
| Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||||
| Accounts receivable | (7,795 | ) | (10,122 | ) | |||||
| Prepaid expenses and other assets | 372 | 427 | |||||||
| Accounts payable | 2,892 | (2,016 | ) | ||||||
| Accrued liabilities | 476 | 1,933 | |||||||
| Income taxes payable | 96 | 967 | |||||||
| Billings in excess of costs and estimated earnings on uncompleted contracts | (78 | ) | (221 | ) | |||||
| Client deposits | 147 | (13 | ) | ||||||
| Net cash provided by (used in) operating activities | 10,686 | (368 | ) | ||||||
| Cash Flows From Investing Activities: | |||||||||
| Cash paid for acquisitions | (24,388 | ) | (10,427 | ) | |||||
| Purchase of property and equipment | (566 | ) | (428 | ) | |||||
| Net cash used in investing activities | (24,954 | ) | (10,855 | ) | |||||
| Cash Flows From Financing Activities: | |||||||||
| Proceeds from secondary offerimg | 51,319 | 32,068 | |||||||
| Payments of secondary offering costs | (4,172 | ) | (2,649 | ) | |||||
| Exercise of warrants costs | - | (217 | ) | ||||||
| Payments on notes payable | (4,156 | ) | (7,660 | ) | |||||
| Payments of contingent consideration | (296 | ) | (533 | ) | |||||
| Excess tax benefit from stock based compensation | 155 | 1,536 | |||||||
| Payments on stock repurchase obligation | - | (935 | ) | ||||||
| Proceeds from exercise of unit warrant | 1,008 | 3,186 | |||||||
| Net cash provided by financing activities | 43,858 | 24,796 | |||||||
| Net increase in Cash and Cash Equivalents | 29,590 | 13,573 | |||||||
| Cash and cash equivalents - beginning of period | 23,476 | 6,872 | |||||||
| Cash and cash equivalents - end of period | $ | 53,066 | $ | 20,445 | |||||
| Supplemental disclosures of cash flow information: | |||||||||
| Cash paid for interest | $ | 255 | $ | 164 | |||||
| Cash paid for income taxes | $ | 4,642 | $ | 2,114 | |||||
| Non-cash investing and financing activities: | |||||||||
| Contingent consideration (earn-out) | $ | - | $ | 1,307 | |||||
| Notes payable and other obligations for acquisitions | $ | 9,333 | $ | 9,250 | |||||
| Stock issuance for acquisitions | $ | 1,075 | $ | 900 | |||||
| Payment of contingent consideration with common stock | $ | 162 | $ | 100 | |||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||
| RECONCILIATION OF GROSS REVENUES TO TOTAL REVENUES | |||||||||||||
| (Unaudited) | |||||||||||||
| (in thousands) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Gross Revenues - GAAP | $ | 60,091 | $ | 48,701 | $ | 160,888 | $ | 112,335 | |||||
| Add: | Intercompany revenues in lieu of sub-consultants | 1,468 | 221 | 3,651 | 1,034 | ||||||||
| Total Revenues | $ | 61,559 | $ | 48,922 | $ | 164,539 | $ | 113,369 | |||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||||||
| RECONCILIATION OF GROSS REVENUES TO NET REVENUES | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Gross Revenues - GAAP | $ | 60,091 | $ | 48,701 | $ | 160,888 | $ | 112,335 | |||||||||
| Less: | Sub-consultant services | (8,854 | ) | (6,859 | ) | (22,246 | ) | (15,306 | ) | ||||||||
| Other direct costs | (3,307 | ) | (3,455 | ) | (8,209 | ) | (8,120 | ) | |||||||||
| Net Revenues | $ | 47,930 | $ | 38,387 | $ | 130,433 | $ | 88,909 | |||||||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO EBITDA | |||||||||||||
| (Unaudited) | |||||||||||||
| (in thousands) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Net Income | $ | 3,404 | $ | 3,002 | $ | 8,318 | $ | 5,820 | |||||
| Add: | Interest expense | 81 | 78 | 221 | 180 | ||||||||
| Income tax expense | 1,990 | 1,867 | 4,847 | 3,492 | |||||||||
| Depreciation and Amortization | 1,604 | 1,048 | 4,285 | 2,446 | |||||||||
| EBITDA | $ | 7,079 | $ | 5,995 | $ | 17,671 | $ | 11,938 | |||||
| NV5 GLOBAL, INC. AND SUBSIDIARIES | |||||||||||||
| RECONCILIATION OF GAAP EPS TO ADJUSTED EPS | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Net Income - per diluted share | $ | 0.33 | $ | 0.38 | $ | 0.90 | $ | 0.84 | |||||
| Per diluted share adjustments: | |||||||||||||
| Add: | Amortization expense of intangible assets | 0.12 | 0.10 | 0.33 | 0.27 | ||||||||
| Income tax expense | (0.04 | ) | (0.04 | ) | (0.12 | ) | (0.10 | ) | |||||
| Adjusted EPS | $ | 0.41 | $ | 0.44 | $ | 1.11 | $ | 1.01 | |||||
Contact NV5 Global, Inc. Lauren Wright, PhD Director of Investor Relations Tel: +1-408-392-7233 Email: ir@nv5.com
