NV5 Announces Second Quarter 2018 Results and Raises 2018 Guidance

HOLLYWOOD, Fla., Aug. 02, 2018 (GLOBE NEWSWIRE) — NV5 Global, Inc. (Nasdaq: NVEE) (“NV5” or the “Company”), a provider of professional and technical engineering and consulting solutions, today reported financial results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

  • Total Revenues for the quarter were $105.0 million, an increase of 23% year-over-year. Gross Revenues – GAAP for the quarter were $104.0 million, an increase of 24% year-over-year.
  • Net Revenues for the quarter were $84.2 million, an increase of 26% year-over-year.
  • Organic growth for the quarter was 11%, an increase of 175% compared to the second quarter of 2017.
  • EBITDA for the quarter was $13.2 million, or 16% of Net Revenues, an increase of 30% from $10.1 million or 15% of Net Revenues in the second quarter of 2017.
  • Net income for the quarter was $7.6 million, an increase of 76% from $4.3 million in the second quarter of 2017.
  • Adjusted EPS for the quarter was $0.91 per diluted share, an increase of 63%. from $0.56 per diluted share in the second quarter of 2017.
  • GAAP EPS for the quarter was $0.69 per diluted share over 11.0 million shares, an increase of 73% from $0.40 per diluted share over 10.7 million shares in the second quarter of 2017.
  • Backlog was $315 million as of June 30, 2018 compared to $261 million as of July 1, 2017.

“We are once again pleased to report excellent performance for the 2018 second quarter, which include positive contributions from all of our operating verticals,” said Dickerson Wright, PE, Chairman and CEO of NV5. “Our employees are very engaged in leading a uniform service delivery to our clients. As a result, we continue to experience increases in revenues, organic growth, EBITDA, net income, earnings per share and backlog.”

Operating Results

Total Revenues for the second quarter of 2018 were $105.0 million, an increase of 23% from the second quarter of 2017. 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 second quarter of 2018 were $104.0 million, a 24% increase from the second quarter of 2017. Net Revenues for the second quarter of 2018 were $84.2 million, an increase of 26% from the second quarter of 2017.

EBITDA for the second quarter of 2018 was $13.2 million or 16% of Net Revenues, an increase of 30% from $10.1 million or 15% of Net Revenues for the second quarter of last year.

Adjusted EPS for the second quarter of 2018 was $0.91 per diluted share versus $0.56 per diluted share in the second quarter of 2017. Net income for the second quarter of 2017 was $7.6 million, resulting in GAAP EPS of $0.69 per diluted share, compared to net income of $4.3 million, or $0.40 per diluted share in the second quarter of 2017.

GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 11,004,212 for the second quarter of 2018, compared to weighted-average shares outstanding of 10,723,804 for the second quarter of 2017.

At June 30, 2018, the Company reported a twelve-month backlog of $315 million, compared to $261 million as of July 1, 2017.

Six Months Ended June 30, 2018 Financial Highlights

  • Total Revenues for the first six months of 2018 were $200.5 million, an increase of 34% from the first six months of 2017. Gross Revenues – GAAP were $198.6 million in the first six months of 2018, an increase of 34% from the first six months of 2017.
  • Net Revenues were $161.4 million in the first six months of 2018, an increase of 34% from the first six months of 2017.
  • Organic growth for the first six months of 2018 was 10%, an increase of 100% compared to the first six months of 2017.
  • EBITDA for the first six months of 2018 was $23.3 million, or 14% of Net Revenues, an increase of 54% from $15.1 million or 13% of Net Revenues for the first six months of 2017.
  • Net income was $11.9 million, an increase of 81% from $6.6 million in the first six months of 2017.
  • Adjusted EPS was $1.51 per diluted share, an increase of 64% from $0.92 per diluted share in the first six months of 2017.
  • GAAP EPS was $1.09 over 11.0 million shares, an increase of 79% compared to $0.61 per diluted share over 10.7 million shares in the first six months of 2017.
  • Cash flows from operating activities for the first six months of 2018 were $10.8 millioncompared to cash flows of $4.5 million for the first six months of 2017.

Total Revenues for the six months ended June 30, 2018 were $200.5 million, a 34% increase from the first six months of 2017. 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 six months ended June 30, 2018 were $198.6 million, a 34% increase from the first six months of 2017. Net Revenues for the six months ended June 30, 2018 was $161.4 million, an increase of 34% from 2017.

EBITDA for the six months ended June 30, 2018 was $23.3 million, or 14% of Net Revenues, an increase of 54% from $15.1 million, or 13% of Net Revenues for the same period in 2017.

Adjusted EPS for the six months ended June 30, 2018 was $1.51 per diluted share versus $0.92 per diluted share in the six months of 2017. Net income for the six months ended June 30, 2018 was $11.9 million, resulting in GAAP EPS of $1.09 per diluted share, compared to net income of $6.6 million, or $0.61 per diluted share in the six months ended July 1, 2017.

GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 10,953,259 for the six months ended June 30, 2018, compared to weighted-average shares outstanding of 10,721,744 for the first six months of 2017.

Cash flows from operating activities for the first six months of 2018 were $10.8 millioncompared to cash flows of $4.5 million for the first six months of 2017. At June 30, 2018, our cash and cash equivalents were $16.0 million compared to $18.8 million as of December 30, 2017.

2018 Outlook

The Company is raising its guidance for Full Year 2018 Gross Revenues, Net Revenues, Adjusted EPS and GAAP EPS, including the impact of acquisitions closed through July 31, 2018. The Company expects Gross Revenues will range from $390 million to $425 million, which represents an increase of 17% to 28% from 2017 Gross Revenues of $333 million. Net Revenues is expected to range from $312 million to $340 million, which represents an increase of 16% to 27% from 2017 Net Revenues of $268 million. The Company expects that Full Year 2018 Adjusted EPS will range from $3.04 per share to $3.35 per share, an increase of 28% to 41%. Furthermore, the Company expects that Full Year 2018 GAAP EPS will range from $2.29 per share to $2.57 per share. This guidance for Gross Revenues, Net Revenues, Adjusted EPS and GAAP EPS excludes anticipated acquisitions for the remainder of 2018.

Use of Non-GAAP Financial Measures

Total Revenues and Net Revenues are not 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, net of tax benefits. 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 is 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.

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