• NV5 Announces Strong First Quarter Results; Reaffirms Positive Full-Year 2025 Guidance

    Source: Nasdaq GlobeNewswire / 01 May 2025 16:01:00   America/New_York

    HOLLYWOOD, Fla., May 01, 2025 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq GS: NVEE) ("NV5" or the "Company"), a leading provider of tech-enabled engineering, testing, inspection, and consulting solutions for the built environment, today reported financial results for the first quarter ended March 29, 2025.

    "NV5 delivered strong first quarter results for revenue and profitability, positioning us for an excellent 2025. Gross revenues increased 10% over the first quarter of 20241, representing 5% organic growth. Cash flows from operations totaled $38 million, which is a 96% increase over the first quarter in 2024. Our performance demonstrates the positive results of our initiatives to accelerate organic growth and cash flows, and we anticipate continued growth in revenue and profitability as we enter what is traditionally our busiest quarters of the year.  

    The three acquisitions that we completed in the first quarter had minimal impact on our financial results for the quarter, but they position us for expansion in key geographies and accelerated organic growth. As a result of our strong first quarter performance, backlog, and pipeline of opportunities, we are reaffirming full-year 2025 guidance for revenue and earnings per share," said Ben Heraud, CEO of NV5.

    First Quarter 2025 Results

    Gross revenues in the first quarter of 2025 grew 10% to $234.0 million from $212.6 million in the first quarter of 2024 and our gross profit increased 10% to $123.2 million. Gross margins were consistent in both quarters at 52.6%.

    Net income in the first quarter of 2025 grew 456% to $0.4 million from $0.1 million in the first quarter of 2024. Net income includes $1.4 million of higher amortization expense this quarter as a result of acquisitions completed since the first quarter of 2024. Our GAAP EPS in the first quarter of 2025 was $0.01 per share compared to $0.00 per share2 in the first quarter of 2024. Cash flows from operating activities in the first quarter of 2025 grew 96% to $38.4 million from $19.6 million in the first quarter of 2024.

    Our Adjusted EBITDA increased 8% to $29.7 million from $27.6 million. Our Adjusted EPS grew 13% to $0.17 per share compared to $0.15 per share2 in the first quarter of 2024.

    Reaffirms Full-Year 2025 Guidance

    • Gross revenues between $1.026 billion and $1.045 billion.
    • GAAP EPS between $0.52 per share and $0.62 per share.
    • Adjusted EPS between $1.27 per share and $1.37 per share.

    _____________________________

    1 Prior periods presented in this press release have been adjusted as described in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2024.

    2 On September 25, 2024, we announced a 4-for-1 forward split (the "Stock Split") of our common stock. Trading in the Common Stock commenced on a split-adjusted basis on October 11, 2024. All prior year data impacted by the Stock Split, including, but not limited to, number of shares and per share amounts, have been revised to reflect the effect of the Stock Split.

    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 and acquisition-related costs, net of tax benefits. 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 first quarter 2025 financial results at 4:30 p.m. (Eastern Time) on May 1, 2025. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:Thursday, May 1, 2025
    Time:4:30 p.m. Eastern
    Toll-free dial-in number:+1 800-715-9871
    International dial-in number:+1 646-307-1963
    Conference ID:2719957
    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 GS: NVEE) is a leading provider of tech-enabled engineering, testing, inspection, and consulting solutions for the built environment.   The Company specializes in engineering design, asset management, and geospatial data analytics to support infrastructure resilience and building systems performance throughout the entire asset lifecycle. NV5 operates out of more than 100 offices nationwide and abroad. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on Twitter, LinkedIn, and Facebook.

    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)
     
     March 29, 2025 December 28, 2024
    Assets   
    Current assets:   
    Cash and cash equivalents$53,212  $50,361 
    Billed receivables, net 194,610   198,569 
    Unbilled receivables, net 129,621   141,926 
    Prepaid expenses and other current assets 23,268   20,155 
    Total current assets 400,711   411,011 
    Property and equipment, net 64,392   56,722 
    Right-of-use lease assets, net 33,932   32,099 
    Intangible assets, net 197,191   206,592 
    Goodwill 581,124   579,337 
    Deferred income tax assets, net 31,854   27,277 
    Other assets 2,827   2,318 
    Total Assets$1,312,031  $1,315,356 
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$69,122  $81,937 
    Accrued liabilities 66,656   52,208 
    Billings in excess of costs and estimated earnings on uncompleted contracts 58,971   56,867 
    Other current liabilities 2,623   2,493 
    Current portion of contingent consideration 9,233   5,554 
    Current portion of notes payable and other obligations 8,307   11,195 
    Total current liabilities 214,912   210,254 
    Contingent consideration, less current portion 3,620   7,196 
    Other long-term liabilities 25,503   23,284 
    Notes payable and other obligations, less current portion 225,016   241,608 
    Total liabilities 469,051   482,342 
        
    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; 180,000,000 shares authorized, 65,646,834 and 65,115,824 shares issued and outstanding as of March 29, 2025 and December 28, 2024, respectively 657   651 
    Additional paid-in capital 547,730   538,568 
    Accumulated other comprehensive loss (323)  (693)
    Retained earnings 294,916   294,488 
    Total stockholders’ equity 842,980   833,014 
    Total liabilities and stockholders’ equity$1,312,031  $1,315,356 
     


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME (LOSS)
    (UNAUDITED)
    (in thousands, except share data)
     
     Three Months Ended
     March 29, 2025 March 30, 2024
    Gross revenues$234,045  $212,558 
        
    Direct costs:   
    Salaries and wages 59,246   56,454 
    Sub-consultant services 39,158   31,611 
    Other direct costs 12,440   12,753 
    Total direct costs 110,844   100,818 
        
    Gross profit 123,201   111,740 
        
    Operating expenses:   
    Salaries and wages, payroll taxes, and benefits 73,000   65,434 
    General and administrative 23,944   22,243 
    Facilities and facilities related 6,264   5,960 
    Depreciation and amortization 15,618   13,802 
    Total operating expenses 118,826   107,439 
        
    Income from operations 4,375   4,301 
        
    Interest expense (3,545)  (4,191)
        
    Income before income tax expense 830   110 
    Income tax expense (402)  (33)
    Net income$428  $77 
        
    Earnings per share:   
    Basic$0.01  $— 
    Diluted$0.01  $— 
        
    Weighted average common shares outstanding:   
    Basic 62,252,687   61,068,605 
    Diluted 63,253,555   62,536,103 
        
    Comprehensive income (loss):   
    Net income$428  $77 
    Foreign currency translation income (loss), net of tax 370   (501)
    Comprehensive income (loss)$798  $(424)
     


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Three Months Ended
     March 29, 2025 March 30, 2024
    Cash flows from operating activities:   
    Net income$428  $77 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 17,377   15,363 
    Non-cash lease expense 3,183   3,293 
    Provision for doubtful accounts 111   491 
    Stock-based compensation 6,770   6,666 
    Change in fair value of contingent consideration (417)  — 
    Gain on disposals of property and equipment (157)  (3)
    Other 33   (67)
    Deferred income taxes (5,091)  (4,940)
    Amortization of debt issuance costs 185   185 
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables 9,422   7,283 
    Unbilled receivables 12,445   (5,590)
    Prepaid expenses and other assets (2,244)  1,496 
    Accounts payable (14,939)  (3,233)
    Accrued liabilities and other long-term liabilities 9,122   364 
    Billings in excess of costs and estimated earnings on uncompleted contracts 2,020   (917)
    Contingent consideration (7)  (815)
    Other current liabilities 131   (99)
    Net cash provided by operating activities 38,372   19,554 
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions) (4,440)  (45,334)
    Proceeds from sale of assets 268   22 
    Purchase of property and equipment (11,036)  (3,673)
    Net cash used in investing activities (15,208)  (48,985)
        
    Cash flows from financing activities:   
    Borrowings from Senior Credit Facility 8,000   35,000 
    Payments on notes payable and other obligations (1,631)  (4,380)
    Payments of contingent consideration (143)  (1,025)
    Payments on borrowings from Senior Credit Facility (26,000)  — 
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation (615)  — 
    Net cash (used) provided by financing activities (20,389)  29,595 
        
    Effect of exchange rate changes on cash and cash equivalents 76   (222)
        
    Net increase (decrease) in cash and cash equivalents 2,851   (58)
    Cash and cash equivalents – beginning of period 50,361   44,824 
    Cash and cash equivalents – end of period$53,212  $44,766 
     


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (UNAUDITED)
    (in thousands, except share data)
     
    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
     
      Three Months Ended
      March 29, 2025 March 30, 2024
    Net Income$428 $77
    Add:Interest expense 3,545  4,191
     Income tax expense 402  33
     Depreciation and amortization 17,377  15,363
     Stock-based compensation 6,770  6,666
     Acquisition-related costs* 1,213  1,312
    Adjusted EBITDA$29,735 $27,642
     

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

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
     
      Three Months Ended
      March 29, 2025 March 30, 2024
    Net Income - per diluted share$0.01  $— 
    Per diluted share adjustments:   
    Add:Amortization expense of intangible assets and acquisition-related costs* 0.21   0.20 
     Income tax expense (0.05)  (0.05)
    Adjusted EPS$0.17  $0.15 
     

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


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