Attached files
| file | filename |
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| 8-K - FORM 8-K - NV5 Global, Inc. | nvee20151111_8k.htm |
Exhibit 99.1
NV5 ANNOUNCES RECORD THIRD QUARTER AND YEAR-TO-DATE 2015 FINANCIAL RESULTS AND RAISES GUIDANCE
- Third Quarter 2015 Gross Revenues Increased 55% to $48.7 Million from $31.4 Million -
- Third Quarter 2015 Net Income Increased 74% to $3.0 Million from $1.7 Million -
- Third Quarter 2015 Diluted EPS increased 23% to $0.38 over 7.9 million shares compared to $0.31 over 5.6 million shares in the third quarter of 2014 -
- Third Quarter 2015 EBITDA Diluted EPS increased 25% to $0.75 -
- Raises Full-Year 2015 Gross Revenues Guidance up to $162 Million and Diluted EPS Guidance up to $1.19-
Hollywood, FL – November 12, 2015 – NV5 Holdings, Inc. (Nasdaq: NVEE) (“NV5” or the “Company”), a provider of professional and technical engineering and consulting solutions, today reported financial results for the third quarter ended September 30, 2015.
Third Quarter 2015 Financial Highlights
|
● |
Gross revenues for the quarter increased 55% year-over-year to $48.7 million |
|
● |
EBITDA for the quarter was $6.0 million or 15.6% of net revenues up from $3.4 million or 13.9% of net revenues for the third quarter of 2014 |
|
● |
Net income for the quarter increased 74% to $3.0 million from $1.7 million for the third quarter of 2014 |
|
● |
Diluted EPS for the quarter increased 23% to $0.38 over 7.9 million shares compared to $0.31 over 5.6 million shares in the third quarter of 2014 |
|
● |
EBITDA diluted EPS for the quarter increased 25% to $0.75 compared to $0.60 in the third quarter of 2014 |
|
● |
Backlog of $151.0 million as of September 30, 2015 compared to $116.8 million as of June 30, 2015 and $82.1 million as of December 31, 2014 |
“We had a great third quarter lead by our management team and the technical experts in our service verticals. Through our operating strategy and vision for organic and strategic growth, we are always looking for new opportunities to provide the best quality of service to our existing clients, and to bring in new clients and win new projects based on that reputation. The fact that NV5 has consistently increased earnings per share for our investors over a larger number of shares cannot be overemphasized,” said Dickerson Wright, PE, Chairman and CEO of NV5.
Gross revenues for the third quarter of 2015 were $48.7 million, a 55% increase from the third quarter of 2014. Net revenues for the third quarter of 2015 were $38.4 million, an increase of 59% from the third quarter of 2014. The increases in gross and net revenues were due primarily to organic growth from our existing platform as well as the contributions from the Company's acquisitions in 2014 and 2015.
Net income for the third quarter of 2015 was $3.0 million, or $0.38 per diluted share, up from net income of $1.7 million, or $0.31 per diluted share in the third quarter of 2014. Diluted earnings per share reflect weighted-average shares outstanding of 7,943,131 for the third quarter of 2015, compared to weighted-average shares outstanding of 5,624,702 for the third quarter of 2014. Included in the weighted-average shares outstanding for the third quarter of 2015, is the addition of 1,644,500 shares issued from our secondary offering on May 28, 2015.
EBITDA for the third quarter of 2015 was $6.0 million or 15.6% of net revenues, an increase of 78% up from $3.4 million or 13.9% of net revenues for the third quarter of last year. EBITDA on per share basis was $0.75 per diluted share for the third quarter of 2015 compared to $0.60 per diluted share for the third quarter of 2014.
Nine Months Ended September 2015 Financial Highlights
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● |
Gross revenues increased 41% to $112.3 million, compared with $79.6 million in the first nine months of 2014 | |
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● |
Organic growth for the first nine months of 2015 was 11% | |
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● |
EBITDA was $11.9 million or 13.4% of net revenues up from $7.2 million or 11.8% of net revenues in the first nine months of 2014 | |
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● |
Net income increased 67% to $5.8 million from $3.5 million in the first nine months of 2014 | |
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● |
Diluted EPS for the first nine months of 2015 increased 33% to $0.84 compared to $0.63 for the first nine months of 2014 | |
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● |
EBITDA diluted EPS for the first nine months of 2015 increased 32% to $1.72 compared to $1.30 for the first nine months of 2014 |
Gross revenues for the nine months ended September 30, 2015 increased 41% to $112.3 million, compared with $79.6 million reported for the nine months ended September 30, 2014. Net revenues for the nine months ended September 30, 2015 were $88.9 million, an increase of 46% for the nine months ended September 30, 2014. Our organic growth for the nine months ended September 30, 2015 was 11%. The increases in gross and net revenues were due primarily to organic growth from our existing platform as well as the contributions from the Company's acquisitions in 2014 and 2015.
Net income for the nine months ended September 30, 2015 was $5.8 million, or $0.84 per diluted share, up from net income of $3.5 million, or $0.63 per diluted share for the nine months ended September 30, 2014. Diluted earnings per share reflect weighted-average shares outstanding of 6,945,274 for the nine months ended September 30, 2015, compared to weighted-average shares outstanding of 5,543,599 for the nine months ended September 30, 2014. Included in the weighted-average shares outstanding for the nine months ended September 30, 2015, is the addition of 1,644,500 shares issued from our secondary offering on May 28, 2015.
EBITDA for the nine months ended September 30, 2015 was $11.9 million or 13.4% of net revenues, up from $7.2 million or 11.8% of net revenues for the nine months ended September 30, 2014. EBITDA on per share basis was $1.72 per diluted share for the nine months ended September 30, 2015 compared to $1.30 per diluted share for the nine months ended September 30, 2014.
At September 30, 2015, cash and cash equivalents were $20.4 million compared to $6.9 million as of December 31, 2014.
At September 30, 2015, the Company reported backlog of $151.0 million, an increase of 29% from $116.8 million as of June 30, 2015 and 84% from $82.1 million as of December 31, 2014.
2015 Outlook
The Company is raising its guidance for full-year 2015 gross revenues and diluted earnings per share. The Company expects full-year 2015 gross revenues, including the impact of acquisitions closed through October 31, 2015, to range from $155 million to $162 million, which represents an increase to 50% from 2014 gross revenues of $108.4 million. The Company further expects that full-year 2015 diluted earnings per share will range from $1.09 per share to $1.19 per share, representing an increase to 37% over diluted earnings per share of $0.87 for the full-year 2014. Included in the guidance for diluted earnings per share, is the impact by the addition of 1,644,500 shares issued from our secondary offering on May 28, 2015. Furthermore, this guidance for gross revenues and diluted earnings per share excludes anticipated acquisitions for the remainder of 2015.
Use of Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a measure of financial performance under U.S. generally accepted accounting principles (“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.
EBITDA per diluted share data contained in this news release reflects adjustments to reported diluted earnings per share data to eliminate interest, income tax, depreciation and amortization expense. A reconciliation of diluted earnings per share as reported in accordance with GAAP to EBITDA per diluted share is provided at the end of this news release.
Gross Revenues include sub-consultant costs and other direct costs which are generally pass-through costs and, therefore, the Company believes that Net Revenues, which is a non-GAAP financial measure commonly used in our industry, provides a meaningful perspective on its business results. A reconciliation of gross revenues as reported in accordance with GAAP to net revenues is provided at the end of this news release.
NV5’s definition of Net Revenues and EBITDA 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 and net income.
Conference Call
NV5 will host a conference call to discuss its third quarter 2015 financial results at 4:30 p.m. (Eastern Time) on November 12, 2015.
Date: Thursday, November 12, 2015
Time: 4:30 p.m. Eastern time
Toll-free dial-in number: +1 877-311-4180
International dial-in number: +1 616-548-5594
Conference ID: 61188574
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 19, 2015. 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: 61188574
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 Holdings, Inc. (NASDAQ: NVEE) is a provider of professional and technical engineering and consulting solutions to public and private sector clients in the infrastructure, energy, construction, real estate and environmental markets. NV5 primarily focuses on five business verticals: construction quality assurance, infrastructure, engineering and support services, energy, program management, and environmental solutions. The Company operates 42 offices in Arizona, California, Colorado, Connecticut, Florida, Massachusetts, Maryland, New Jersey, New Mexico, New York, Ohio, Pennsylvania, Utah, Washington and Wyoming, and is headquartered in Hollywood, Florida. For additional information, please visit the Company's website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, Facebook, and Vimeo.
Forward-Looking Statements
All statements other than statements of historical fact contained in this news release and on the conference call constitute "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.
Contact
NV5 Holdings, Inc.
Lauren Wright, Ph.D.
Director of Investor Relations
Tel: +1-408-392-7233
Email: ir@nv5.com
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
September 30, 2015 |
December 31, 2014 |
|||||||
|
Assets |
(Unaudited) |
|||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ | 20,445 | $ | 6,872 | ||||
|
Accounts receivable, net of allowance for doubtful accounts of $1,824 and $845 as of September 30, 2015 and December 31, 2014, respectively |
52,924 | 27,015 | ||||||
|
Prepaid expenses and other current assets |
1,300 | 1,224 | ||||||
|
Deferred income tax assets |
1,355 | 358 | ||||||
|
Total current assets |
76,024 | 35,469 | ||||||
|
Property and equipment, net |
3,080 | 1,625 | ||||||
|
Intangible assets, net |
13,114 | 5,221 | ||||||
|
Goodwill |
22,083 | 11,142 | ||||||
|
Other assets |
881 | 810 | ||||||
|
Deferred income tax assets |
- | 1,123 | ||||||
|
Total Assets |
$ | 115,182 | $ | 55,390 | ||||
|
Liabilities and Stockholders’ Equity |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ | 8,471 | $ | 5,335 | ||||
|
Accrued liabilities |
10,445 | 4,763 | ||||||
|
Income taxes payable |
588 | 1,157 | ||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
57 | 277 | ||||||
|
Client deposits |
107 | 121 | ||||||
|
Current portion of contingent consideration |
567 | 618 | ||||||
|
Current portion of stock repurchase obligation |
- | 372 | ||||||
|
Current portion of notes payable |
7,135 | 2,878 | ||||||
|
Total current liabilities |
27,370 | 15,521 | ||||||
|
Contingent consideration, less current portion |
1,119 | 323 | ||||||
|
Stock repurchase obligation, less current portion |
- | 563 | ||||||
|
Notes payable, less current portion |
6,592 | 3,378 | ||||||
|
Deferred income tax liabilities |
2,477 | - | ||||||
|
Total liabilities |
37,558 | 19,785 | ||||||
|
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, 8,123,432 and 5,754,959 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively |
81 | 58 | ||||||
|
Additional paid-in capital |
61,793 | 25,617 | ||||||
|
Retained earnings |
15,750 | 9,930 | ||||||
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Total stockholders’ equity |
77,624 | 35,605 | ||||||
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Total liabilities and stockholders’ equity |
$ | 114,715 | $ | 55,390 | ||||
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except share data)
(Unaudited)
|
Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
September 30, |
September 30, |
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2015 |
2014 |
2015 |
2014 |
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Gross revenues |
$ | 48,701 | $ | 31,420 | $ | 112,335 | $ | 79,642 | ||||||||
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Direct costs: |
||||||||||||||||
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Salaries and wages |
16,856 | 11,458 | 39,122 | 26,970 | ||||||||||||
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Sub-consultant services |
6,859 | 4,128 | 15,306 | 11,138 | ||||||||||||
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Other direct costs |
3,455 | 3,116 | 8,120 | 7,517 | ||||||||||||
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Total direct costs |
27,170 | 18,702 | 62,548 | 45,625 | ||||||||||||
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Gross Profit |
21,531 | 12,718 | 49,787 | 34,017 | ||||||||||||
|
Operating Expenses: |
||||||||||||||||
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Salaries and wages, payroll taxes and benefits |
10,549 | 6,349 | 25,258 | 17,672 | ||||||||||||
|
General and administrative |
3,422 | 2,283 | 9,162 | 6,761 | ||||||||||||
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Facilities and facilities related |
1,565 | 715 | 3,429 | 2,394 | ||||||||||||
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Depreciation and amortization |
1,048 | 532 | 2,446 | 1,442 | ||||||||||||
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Total operating expenses |
16,584 | 9,879 | 40,295 | 28,269 | ||||||||||||
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Income from operations |
4,947 | 2,839 | 9,492 | 5,748 | ||||||||||||
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Other expense: |
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Interest expense |
(78 | ) | (90 | ) | (180 | ) | (219 | ) | ||||||||
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Total other expense |
(78 | ) | (90 | ) | (180 | ) | (219 | ) | ||||||||
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Income before income tax expense |
4,869 | 2,749 | 9,312 | 5,529 | ||||||||||||
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Income tax expense |
(1,867 | ) | (1,026 | ) | (3,492 | ) | (2,044 | ) | ||||||||
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Net income and comprehensive income |
$ | 3,002 | $ | 1,723 | $ | 5,820 | $ | 3,485 | ||||||||
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Earnings per share: |
||||||||||||||||
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Basic |
$ | 0.40 | $ | 0.34 | $ | 0.90 | 0.69 | |||||||||
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Diluted |
$ | 0.38 | $ | 0.31 | $ | 0.84 | 0.63 | |||||||||
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Weighted average common shares outstanding: |
||||||||||||||||
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Basic |
7,516,063 | 5,129,161 | 6,454,158 | 5,086,711 | ||||||||||||
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Diluted |
7,943,131 | 5,624,702 | 6,945,274 | 5,543,599 | ||||||||||||
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
|
Nine Months Ended |
||||||||
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September 30, 2015 |
September 30, 2014 |
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Cash Flows From Operating Activities: |
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Net income |
$ | 5,820 | $ | 3,485 | ||||
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Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
|
Depreciation and amortization |
2,446 | 1,442 | ||||||
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Provision for doubtful accounts |
263 | 153 | ||||||
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Stock compensation |
1,229 | 534 | ||||||
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Change in fair value of contingent consideration |
72 | 40 | ||||||
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Loss on disposal of leasehold improvements |
- | 61 | ||||||
| Excess tax benefit from stock based compensation | (1,536 | ) | - | |||||
|
Deferred income taxes |
383 | 165 | ||||||
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Changes in operating assets and liabilities, net of impact of acquisitions: |
||||||||
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Accounts receivable |
(10,122 | ) | (9,503 | ) | ||||
|
Prepaid expenses and other assets |
427 | (490 | ) | |||||
|
Accounts payable |
(2,016 | ) | 1,244 | |||||
|
Accrued liabilities |
1,933 | 2,349 | ||||||
|
Income taxes payable |
967 | (258 | ) | |||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
(221 | ) | (79 | ) | ||||
|
Client deposits |
(13 | ) | (22 | ) | ||||
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Net cash used in operating activities |
(368 | ) | (879 | ) | ||||
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Cash Flows From Investing Activities: |
||||||||
|
Cash paid for acquisitions, net of cash acquired |
(10,427 | ) | (4,150 | ) | ||||
|
Purchase of property and equipment |
(428 | ) | (723 | ) | ||||
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Net cash used in investing activities |
(10,855 | ) | (4,873 | ) | ||||
|
Initial public offering costs |
- | |||||||
|
Proceeds from secondary offering |
32,068 | - | ||||||
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Payments of secondary offering costs |
(2,649 | ) | - | |||||
|
Payments on note payable |
(7,660 | ) | (1,592 | ) | ||||
|
Payments of contingent consideration |
(533 | ) | (233 | ) | ||||
|
Excess tax benefit from stock based compensation |
1,536 | - | ||||||
|
Payments of debt issuance costs |
- | (26 | ) | |||||
|
Proceeds from exercise of warrants |
3,186 | 4 | ||||||
|
Payment of warrants exercise costs |
(217 | ) | - | |||||
|
Payments on stock repurchase obligation |
(935 | ) | (554 | ) | ||||
|
Net cash provided by (used in) financing activities |
24,796 | (2,401 | ) | |||||
|
Net increase (decrease) in Cash and Cash Equivalents |
13,573 | (8,153 | ) | |||||
|
Cash and cash equivalents – beginning of period |
6,872 | 13,868 | ||||||
|
Cash and cash equivalents – end of period |
$ | 20,445 | $ | 5,715 | ||||
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
|
Nine Months Ended |
||||||||
|
September 30, 2015 |
September 30, 2014 |
|||||||
|
Supplemental disclosures of cash flow information: |
||||||||
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Cash paid for interest |
$ | 164 | $ | 161 | ||||
|
Cash paid for income taxes |
$ | 2,114 | $ | 1,867 | ||||
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Non-cash investing and financing activities: |
||||||||
|
Contingent consideration (earn-out) |
$ | 1,307 | $ | 286 | ||||
|
Notes and stock payable for acquisitions |
$ | 9,250 | $ | 3,710 | ||||
|
Stock issuance for acquisitions |
$ | 900 | $ | 865 | ||||
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Payment of contingent consideration with common stock |
$ | 100 | $ | 100 | ||||
|
Landlord-funded leasehold improvements |
$ | - | $ | 137 | ||||
NV5 HOLDINGS, 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, |
|||||||||||||
|
2015 |
2014 |
2015 |
2014 |
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|
Net Income and comprehensive income |
$ | 3,002 | $ | 1,723 | $ | 5,820 | $ | 3,485 | ||||||||
|
Add: |
||||||||||||||||
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Interest expense |
78 | 90 | 180 | 219 | ||||||||||||
|
Income tax expense |
1,867 | 1,026 | 3,492 | 2,044 | ||||||||||||
|
Depreciation and Amortization |
1,048 | 532 | 2,446 | 1,442 | ||||||||||||
|
EBITDA |
$ | 5,995 | $ | 3,371 | $ | 11,938 | $ | 7,190 | ||||||||
NV5 HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME EPS TO EBITDA EPS
(Unaudited)
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
|
Net Income - per diluted share |
$ | 0.38 | $ | 0.31 | $ | 0.84 | $ | 0.63 | ||||||||
|
Per diluted share adjustments: |
||||||||||||||||
|
Add: |
||||||||||||||||
|
Interest expense |
0.01 | 0.02 | 0.03 | 0.04 | ||||||||||||
|
Income tax expense |
0.24 | 0.18 | 0.50 | 0.37 | ||||||||||||
|
Depreciation and Amortization |
0.13 | 0.09 | 0.35 | 0.26 | ||||||||||||
|
EBITDA per diluted share |
$ | 0.75 | $ | 0.60 | $ | 1.72 | $ | 1.30 | ||||||||
NV5 HOLDINGS, 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, |
|||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
|
Gross revenues |
$ | 48,701 | $ | 31,420 | $ | 112,335 | $ | 79,642 | ||||||||
| Less: | ||||||||||||||||
|
Sub-consultant services |
6,859 | 4,128 | 15,306 | 11,138 | ||||||||||||
|
Other direct costs |
3,455 | 3,116 | 8,120 | 7,517 | ||||||||||||
|
Net revenues |
$ | 38,387 | $ | 24,176 | $ | 88,909 | $ | 60,987 | ||||||||