EX-99.1 2 nvee-2021xq4xexx991.htm EX-99.1 Document
Exhibit 99.1
NV5 ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2021 RESULTS; EXCEEDS ANALYSTS' CONSENSUS
 Hollywood, FL – February 28, 2022 – NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of compliance, technology, and engineering consulting solutions, today reported financial results for the fourth quarter and full year ended January 1, 2022.

"NV5 delivered another record year for revenues and profitability in 2021, including significant growth in net income, Adjusted EBITDA, Adjusted EBITDA margins, and earnings per share. Increased profitability was driven by the growing scale of our operations as well as our mix of high-margin offerings including utility services, environmental solutions, and energy efficiency. We completed eight strategic acquisitions in 2021 to expand our marine geospatial offering, strengthen our growing energy efficiency and clean energy business, grow our environmental transactions services, and enter the high-growth data center market in the Middle East and Asia. We enter 2022 well-positioned to capture growing client investments in infrastructure, utility reliability and safety, water and natural resources, and clean energy," said Dickerson Wright, PE, Chairman and CEO of NV5.

Fourth Quarter 2021 Financial Highlights
•Gross revenues in the fourth quarter of 2021 were $188.6 million compared to $161.2 million in the fourth quarter of 2020, a 17% increase.
•Net income in the fourth quarter of 2021 was $15.5 million compared to $4.6 million in the fourth quarter of 2020, a 238% increase.
•Adjusted EBITDA in the fourth quarter of 2021 was $39.7 million compared to $24.4 million in the fourth quarter of 2020, a 63% increase.
•Adjusted EBITDA margin increased to 21.1% in the fourth quarter of 2021 compared to 15.2% in the fourth quarter of 2020.
•GAAP EPS in the fourth quarter of 2021 was $1.02 per share compared to $0.35 per share in the fourth quarter of 2020, a 191% increase.
•Adjusted EPS in the fourth quarter of 2021 was $1.61 per share compared to $0.82 per share in the fourth quarter of 2020, a 96% increase. Diluted weighted average shares outstanding were 15,159,314 in the fourth quarter of 2021 compared to 12,922,121 in the fourth quarter of 2020.

Full Year 2021 Financial Highlights
•Gross revenues in 2021 were $706.7 million compared to $659.3 million in 2020. Fiscal 2021 included 52 weeks compared to fiscal 2020, which included 53 weeks.
•Net income in 2021 was $47.1 million compared to $21.0 million in 2020, a 124% increase.
•Adjusted EBITDA in 2021 was $132.9 million compared to $105.4 million in 2020, a 26% increase.
•Adjusted EBITDA margin increased to 18.8% in 2021 compared to 16.0% in 2020.
•GAAP EPS in 2021 was $3.22 per share compared to $1.65 per share in 2020, a 95% increase.
•Adjusted EPS in 2021 was $5.11 per share compared to $3.72 per share in 2020, a 37% increase. Diluted weighted average shares outstanding were 14,656,381 in 2021 compared to 12,713,075 in 2020.
•Cash flows from operating activities in 2021 were $101.4 million compared to $96.0 million in 2020.

Fiscal Year 2022 Guidance
•Gross revenues between $773 million and $802 million.
•GAAP EPS between $3.34 per share and $3.65 per share.
•Adjusted EPS between $5.39 per share and $5.70 per share.



52/53 Week Fiscal Year
The Company operates on a "52/53 week" fiscal year ending on the Saturday closest to the calendar quarter end. As a result, fiscal 2021 included 52 weeks compared to fiscal 2020, which included 53 weeks.
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. 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 fourth quarter and full year 2021 financial results at 4:30 p.m. (Eastern Time) on February 28, 2022. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

Date:    Monday, February 28, 2022
Time:    4:30 p.m. Eastern
Toll-free dial-in number:    +1 888-412-4117
International dial-in number:    +1 646-960-0284
Conference ID:    6172299
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
 
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, 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 112 offices nationwide and internationally. For additional information, please visit the Company’s 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 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.
 
Investor Relations Contact
 
NV5 Global, Inc.
Jack Cochran
Vice President, Marketing & Investor Relations
Tel: +1-954-637-8048
Email: ir@nv5.com
 
Source: NV5 Global, Inc.


NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED) 
(in thousands, except share data)
 January 1, 2022January 2, 2021
Assets  
Current assets:  
Cash and cash equivalents$47,980 $64,909 
Billed receivables, net153,814 142,705 
Unbilled receivables, net89,734 74,458 
Prepaid expenses and other current assets12,442 6,804 
Total current assets303,970 288,876 
Property and equipment, net32,729 27,011 
Right-of-use lease assets, net44,260 43,607 
Intangible assets, net188,224 174,931 
Goodwill389,916 343,796 
Other assets2,844 2,954 
Total Assets$961,943 $881,175 
Liabilities and Stockholders’ Equity  
Current liabilities:  
Accounts payable$55,954 $39,989 
Accrued liabilities50,461 45,325 
Billings in excess of costs and estimated earnings on uncompleted contracts29,444 24,962 
Client deposits1,551 380 
Current portion of contingent consideration5,807 1,334 
Current portion of notes payable and other obligations20,734 24,196 
Total current liabilities163,951 136,186 
Contingent consideration, less current portion2,521 1,066 
Other long-term liabilities34,304 38,737 
Notes payable and other obligations, less current portion111,062 283,326 
Deferred income tax liabilities, net25,385 27,791 
Total liabilities337,223 487,106 
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, 15,414,005 and 13,270,131 shares issued and outstanding as of January 1, 2022 and January 2, 2021, respectively154 133 
Additional paid-in capital451,754 268,271 
Retained earnings172,812 125,665 
Total stockholders’ equity624,720 394,069 
Total liabilities and stockholders’ equity$961,943 $881,175 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
 Three Months EndedTwelve Months Ended
January 1, 2022January 2, 2021January 1, 2022January 2, 2021
Gross revenues$188,555 $161,178 $706,706 $659,296 
Direct costs:
Salaries and wages43,417 39,936 175,047 176,865 
Sub-consultant services35,995 28,929 124,998 107,602 
Other direct costs11,633 12,519 47,347 40,291 
Total direct costs91,045 81,384 347,392 324,758 
Gross profit97,510 79,794 359,314 334,538 
Operating expenses:
Salaries and wages, payroll taxes and benefits45,077 43,360 176,838 176,816 
General and administrative16,095 12,019 53,986 50,214 
Facilities and facilities related4,863 5,155 20,193 21,280 
Depreciation and amortization10,189 9,691 39,953 42,079 
Total operating expenses76,224 70,225 290,970 290,389 
Income from operations21,286 9,569 68,344 44,149 
Interest expense(878)(3,260)(6,239)(15,181)
Income before income tax expense20,408 6,309 62,105 28,968 
Income tax expense(4,953)(1,735)(14,958)(7,950)
Net income and comprehensive income$15,455 $4,574 $47,147 $21,018 
Earnings per share:
Basic$1.05 $0.37 $3.34 $1.70 
Diluted$1.02 $0.35 $3.22 $1.65 
Weighted average common shares outstanding:
Basic14,651,218 12,468,444 14,135,333 12,362,786 
Diluted15,159,314 12,922,121 14,656,381 12,713,075 



NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Twelve Months Ended
 January 1, 2022January 2, 2021
Cash flows from operating activities:  
Net income$47,147 $21,018 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization44,971 45,488 
Non-cash lease expense10,191 9,469 
Provision for doubtful accounts1,243 4,311 
Stock-based compensation16,301 14,955 
Change in fair value of contingent consideration2,333 — 
Gain on disposals of property and equipment(1,102)(462)
Deferred income taxes(7,007)(13,064)
Amortization of debt issuance costs1,210 896 
Changes in operating assets and liabilities, net of impact of acquisitions:
Billed receivables2,677 (13,592)
Unbilled receivables(12,573)1,996 
Prepaid expenses and other assets(4,792)4,680 
Accounts payable8,181 3,367 
Accrued liabilities(12,507)(4,865)
Billings in excess of costs and estimated earnings on uncompleted contracts4,005 21,659 
Deposits1,164 153 
Net cash provided by operating activities101,442 96,009 
Cash flows from investing activities:  
Cash paid for acquisitions (net of cash received from acquisitions)(67,995)(882)
Proceeds from sale of assets1,639 1,670 
Purchase of property and equipment(13,903)(9,855)
Net cash used in investing activities(80,259)(9,067)
Cash flows from financing activities:  
Borrowings from Senior Credit Facility138,750 — 
Proceeds from common stock offering172,500 — 
Payments of borrowings from Senior Credit Facility(323,832)(36,625)
Payments on notes payable(12,516)(15,207)
Payments of contingent consideration(1,329)(1,579)
Payments of common stock offering costs(10,657)— 
Payments of debt issuance costs(976)(447)
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation(52)— 
Net cash used in financing activities(38,112)(53,858)
Net (decrease) increase in cash and cash equivalents(16,929)33,084 
Cash and cash equivalents – beginning of period64,909 31,825 
Cash and cash equivalents – end of period$47,980 $64,909 



NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES
TO COMPARABLE NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
(in thousands, except share data)

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
  Three Months EndedTwelve Months Ended
January 1, 2022January 2, 2021January 1, 2022January 2, 2021
Net Income$15,455 $4,574 $47,147 $21,018 
Add:Interest expense878 3,260 6,239 15,181 
 Income tax expense4,953 1,735 14,958 7,950 
Depreciation and amortization11,574 10,808 44,971 45,488 
Stock-based compensation4,214 4,055 16,301 14,955 
Acquisition-related costs*2,667 11 3,274 856 
Adjusted EBITDA$39,741 $24,443 $132,890 $105,448 

* Acquisition-related costs include contingent consideration fair value adjustments.


RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
  Three Months EndedTwelve Months Ended
January 1, 2022January 2, 2021January 1, 2022January 2, 2021
Net Income - per diluted share$1.02 $0.35 $3.22 $1.65 
Per diluted share adjustments:  
Add:Amortization expense of intangible assets and acquisition-related costs0.74 0.63 2.51 2.79 
 Income tax expense(0.15)(0.16)(0.62)(0.72)
Adjusted EPS$1.61 $0.82 $5.11 $3.72