NV5 announces record financial results

Hollywood, Fla. — NV5 Global, Inc., a provider of professional and technical engineering and consulting solutions, reported financial results for the second quarter ended July 1, 2017.

“I am pleased to congratulate our employees on a great second quarter and to share with our investors that NV5 continues to grow organically through new contract wins, an expanded client base, and strategic acquisitions. In the second quarter, total revenues increased 49%, EBITDA increased 68%, and net income increased 51%,” said Dickerson Wright, PE, Chairman and CEO of NV5. “We saw significant growth within our recent acquisitions, Bock & Clark, Holdrege & Kull, and Lochrane Engineering, which have brought us into both new service lines and markets, including commercial real estate zoning and surveying and geotechnical design. They, along with our recently announced acquisition of RDK, have also expanded our existing business through opportunities to cross-sell new services to current clients.”

Total Revenues for the second quarter of 2017 were $85.1 million, a 48.9% increase from the second quarter of 2016. 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 2017 were $83.7 million, a 49.8% increase from the second quarter of 2016. Net Revenues for the second quarter of 2017 were $67.0 million, an increase of 50.9% from the second quarter of 2016.

Gross Margin for the second quarter 2017 was 49.4% compared to 46.9% for the second quarter of 2016, which is the result of increased use of our billable professional employees and reduced use of sub-consultants to perform services.

EBITDA for the second quarter of 2017 was $10.1 million or 15.1% of Net Revenues, an increase of 67.9% from $6.0 million or 13.6% of Net Revenues for the second quarter of last year.

Adjusted EPS for the second quarter of 2017 was $0.56 per diluted share versus $0.38 per diluted share in the second quarter of 2016. Net income for the second quarter of 2017 was $4.3 million, or $0.40 per diluted share, compared to net income of $2.9 million, or $0.31 per diluted share in the second quarter of 2016.

GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 10,723,804 for the second quarter of 2017, compared to weighted-average shares outstanding of 9,172,944 for the second quarter of 2016.

Total Revenues for the six months ended July 1, 2017 were $150.2 million, a 45.8% increase from the first six months of 2016. 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 July 1, 2017 were $147.8 million, a 46.6% increase from the first six months of 2016. Net Revenues for the six months ended July 1, 2017 was $120.1 million, an increase of 45.6% from 2016.

Gross Margin for the six months ended July 1, 2017 was 49.4% compared to 48.6% for the first six months of 2016, which is the result of increased use of our billable professional employees and reduced use of sub-consultants to perform services.

EBITDA for the six months ended July 1, 2017 was $15.1 million or 12.6% of Net Revenues, an increase of 42.9% compared to $10.6 million or 12.8% of Net Revenues for the same period in 2016.

Adjusted EPS for the six months ended July 1, 2017 was $0.92 per diluted share versus $0.71 per diluted share in the six months ended June 30, 2016. Net income for the six months ended July 1, 2017 was $6.6 million, or $0.61 per diluted share, compared to net income of $4.9 million, or $0.57 per diluted share in the six months ended June 30, 2016.

GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 10,721,744 for the six months ended July 1, 2017, compared to weighted-average shares outstanding of 8,640,022 for the first six months of 2016.

At July 1 2017, cash and cash equivalents were $19.5 million compared to $35.7 million as of December 31, 2016.

At July 1, 2017, the Company reported backlog of $261.1 million, an increase of 16% from $225.2 million as of April 1, 2017.

2017 outlook

The Company is raising its guidance for full-year 2017 Total Revenues and Earnings. The Company expects full-year 2017 Total Revenues, including the impact of acquisitions closed through July 1, 2017, to range from $340 million to $358 million, which represents an increase of 49% to 57% from 2016 Total Revenues of $228 million. The Company further expects that full-year 2017 Adjusted EPS will range from $2.22 to $2.36 per diluted share. Furthermore, the Company expects that full-year 2017 GAAP EPS will range from $1.62 to $1.76 per diluted share. This guidance for Total Revenues, Adjusted EPS and GAAP EPS excludes anticipated acquisitions for the remainder of 2017.