NV5 Announces Preliminary Unaudited Record Third Quarter Results
NV5 Global (NVEE) reported record preliminary unaudited Q3 2024 results with gross revenues growing 6% to $250.9 million and net income increasing 31% to $17.1 million. The company achieved significant improvements in profitability metrics, with gross margin expanding 350 basis points to 51.6% and Adjusted EBITDA margin rising to 17.7%. Cash flows from operations surged 145% to $48.9 million. The company updated its full-year 2024 guidance, projecting gross revenues between $939-943 million. However, NV5 identified revenue misstatements from prior periods related to an acquisition and plans to file a Form 12b-25 extension for its Q3 2024 10-Q filing.
NV5 Global (NVEE) ha riportato risultati preliminari non certificati da record per il terzo trimestre 2024, con un aumento del 6% dei ricavi lordi che raggiungono i 250,9 milioni di dollari e un incremento del 31% dell'utile netto che arriva a 17,1 milioni di dollari. L'azienda ha ottenuto miglioramenti significativi nei parametri di redditività, con un margine lordo che si espande di 350 punti base al 51,6% e un margine EBITDA rettificato che sale al 17,7%. I flussi di cassa dalle operazioni sono aumentati del 145% a 48,9 milioni di dollari. L'azienda ha aggiornato le previsioni per l'intero anno 2024, prevedendo ricavi lordi compresi tra 939 e 943 milioni di dollari. Tuttavia, NV5 ha identificato inesattezze nei ricavi di periodi precedenti relative a un'acquisizione e prevede di presentare una richiesta di proroga tramite il modulo 12b-25 per la sua dichiarazione 10-Q del terzo trimestre 2024.
NV5 Global (NVEE) reportó resultados preliminares no auditados récord para el tercer trimestre de 2024, con un aumento del 6% en los ingresos brutos que alcanzan los 250,9 millones de dólares y un incremento del 31% en los ingresos netos que llegan a 17,1 millones de dólares. La empresa logró mejoras significativas en las métricas de rentabilidad, con un margen bruto que se expande 350 puntos básicos al 51,6% y un margen de EBITDA ajustado que aumenta al 17,7%. Los flujos de efectivo de las operaciones se dispararon un 145% a 48,9 millones de dólares. La empresa actualizó su guía para todo el año 2024, proyectando ingresos brutos entre 939 y 943 millones de dólares. Sin embargo, NV5 identificó declaraciones incorrectas de ingresos de períodos anteriores relacionadas con una adquisición y planea presentar una solicitud de extensión mediante el formulario 12b-25 para su declaración 10-Q del tercer trimestre de 2024.
NV5 Global (NVEE)는 2024년 3분기 비감사 기준의 기록적인 예비 결과를 보고했으며, 총 수익이 6% 증가하여 2억 5,090만 달러에 이르고, 순이익이 31% 증가하여 1,710만 달러에 달했습니다. 회사는 수익성 지표에서 상당한 개선을 이루었으며, 총 마진은 51.6%로 350bp 확대되었고, 조정 EBITDA 마진은 17.7%로 상승했습니다. 운영에서의 현금 흐름은 145% 증가하여 4,890만 달러에 이릅니다. 회사는 2024년 전체 연도 가이드를 업데이트하며, 총 수익을 9억 3,900만에서 9억 4,300만 달러로 예상하고 있습니다. 그러나 NV5는 인수와 관련된 이전 기간의 수익 오표기를 확인했으며, 2024년 3분기 10-Q 제출을 위해 12b-25 양식 연장 요청을 계획 중입니다.
NV5 Global (NVEE) a annoncé des résultats préliminaires non vérifiés records pour le troisième trimestre 2024, avec une augmentation de 6% des revenus bruts atteignant 250,9 millions de dollars et une hausse de 31% du bénéfice net s'élevant à 17,1 millions de dollars. L'entreprise a connu des améliorations significatives des indicateurs de rentabilité, avec une marge brute en hausse de 350 points de base à 51,6% et une marge EBITDA ajustée atteignant 17,7%. Les flux de trésorerie d'exploitation ont bondi de 145% à 48,9 millions de dollars. L'entreprise a mis à jour ses prévisions pour l'année 2024, projetant des revenus bruts compris entre 939 et 943 millions de dollars. Cependant, NV5 a identifié des inexactitudes dans les déclarations de revenus des périodes antérieures liées à une acquisition et prévoit de soumettre une demande de prolongation via le formulaire 12b-25 pour sa déclaration 10-Q du troisième trimestre 2024.
NV5 Global (NVEE) meldete für das dritte Quartal 2024 rekordverdächtige vorläufige nicht geprüfte Ergebnisse, mit einem Anstieg der Bruttoeinnahmen um 6% auf 250,9 Millionen Dollar und einem Anstieg des Nettogewinns um 31% auf 17,1 Millionen Dollar. Das Unternehmen erzielte signifikante Verbesserungen bei den Rentabilitätskennzahlen, wobei die Bruttomarge um 350 Basispunkte auf 51,6% anstieg und die bereinigte EBITDA-Marge auf 17,7% stieg. Der Cashflow aus dem Betrieb stieg um 145% auf 48,9 Millionen Dollar. Das Unternehmen aktualisierte seine Prognose für das Gesamtjahr 2024 und erwartet Bruttoeinnahmen zwischen 939 und 943 Millionen Dollar. NV5 stellte jedoch Ungenauigkeiten bei den Einnahmen früherer Perioden im Zusammenhang mit einer Übernahme fest und plant, einen Antrag auf Verlängerung über das Formular 12b-25 für seine 10-Q-Erklärung für das dritte Quartal 2024 einzureichen.
- Gross revenues increased 6% YoY to $250.9 million
- Net income grew 31% YoY to $17.1 million
- Gross margin expanded 350 basis points to 51.6%
- Operating cash flow increased 145% to $48.9 million
- Adjusted EBITDA rose 21% to $44.5 million
- Record backlog achieved with $1 billion annual revenue run rate
- Higher interest expense of $665k due to increased debt balances
- Identified revenue misstatements in prior periods requiring corrections
- Delayed Q3 2024 10-Q filing requiring Form 12b-25 extension
Insights
The Q3 results show significant growth with
However, the discovery of revenue overstatements from the Axim acquisition raises concerns. The company needs to file a Form 12b-25 extension for Q3 reporting, suggesting internal control issues. The revised full-year guidance of
The low net leverage ratio of 1.3x and strong backlog position provide stability, but investors should monitor the accounting revision impact on future reporting periods.
The accounting adjustments reveal material misstatements requiring retroactive corrections across multiple reporting periods. The cumulative impact includes:
- Q3 2023:
$1.7M revenue overstatement - 9M 2023:
$3.9M revenue overstatement - H1 2024:
$5.8M revenue overstatement with$2.8M net income impact
HOLLYWOOD, Fla., Nov. 07, 2024 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq GS: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, consulting solutions, and software applications, today reported preliminary unaudited record financial results for the third quarter ended September 28, 2024.
"NV5 delivered record results in the third quarter in gross revenues and Adjusted EBITDA1, as well as improved profit margins. These results were driven by strong organic growth throughout our operations, and we have now achieved our targeted annual revenue run rate of over
Preliminary Unaudited Third Quarter 2024 Results2
Gross revenues in the third quarter of 2024 grew
Net income in the third quarter of 2024 grew
Our Adjusted EBITDA increased
Prior Periods
In the course of preparing the Company’s unaudited consolidated financial statements to be filed as part of Form 10-Q for the quarter ended September 28, 2024, the Company identified out of period project revenue associated with one customer acquired through its February 2023 acquisition of Continental Mapping Acquisition Corp. and its subsidiaries, including Axim Geospatial, LLC (collectively "Axim").
Prior periods presented in this press release have been revised as follows to correct the impact of the out of period revenue based on information currently available:
- For the three months ended September 30, 2023, gross revenues of
$239.3 million were overstated by$1.7 million , net income of$13.3 million was overstated by$260 k, Diluted GAAP EPS was not impacted, Adjusted EPS of$0.38 per share was overstated by$0.02 , and Adjusted EBITDA of$37.8 million was overstated by$1.2 million . - For the nine months ended September 30, 2023, gross revenues of
$646.2 million were overstated by$3.9 million , net income of$34.7 million was overstated by$1.1 million , Diluted GAAP EPS of$0.56 per share was overstated by$0.02 , Adjusted EPS of$0.92 per share was overstated by$0.04 , and Adjusted EBITDA of$100.5 million was overstated by$3.5 million . - For the six months ended June 29, 2024, gross revenues of
$449.6 million were overstated by$5.8 million , net income of$8.3 million was overstated by$2.8 million , Diluted GAAP EPS of$0.13 per share was overstated by$0.04 , Adjusted EPS of$0.48 per share was overstated by$0.06 , and Adjusted EBITDA of$67.2 million was overstated by$4.6 million .
There was no impact on cash flows from operating activities in our previously issued Consolidated Statement of Cash Flows in any prior period.
1 Non-GAAP financial measures; see pages 2 and 7 for explanations.
2 Prior periods presented in this press release have been adjusted to correct for the misstatements described in the section above. Unaudited results are based on information currently available to the Company and could differ from the final amounts that the Company ultimately reports in its Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2024. The Company assumes no obligation and does not intend to update these estimates prior to filing its Form 10-Q for the fiscal quarter ended September 28, 2024.
Updated Guidance for Full Year 2024
Gross revenues:
GAAP EPS:
Adjusted EPS:
Form 12b-25 Extension
The Company plans to file a Form 12b-25, Notification of Late Filing, with the U.S. Securities and Exchange Commission (“SEC”) related to the Form 10-Q for the quarter ended September 28, 2024. The Company is working to finalize its financial statements and currently intends to file its Form 10-Q by November 12, 2024, the end of the 5-day extension period.
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 third quarter 2024 financial results at 4:30 p.m. (Eastern Time) on November 7, 2024. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
Date: | Thursday, November 7, 2024 | |
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 provider of technology, conformity assessment, consulting solutions, and software applications for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: construction quality assurance, infrastructure engineering, utility services, buildings & technology, 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 100 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) | |||||||
September 28, 2024 | December 30, 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 73,257 | $ | 44,824 | |||
Billed receivables, net | 164,406 | 152,593 | |||||
Unbilled receivables, net | 143,274 | 111,304 | |||||
Prepaid expenses and other current assets | 18,185 | 18,376 | |||||
Total current assets | 399,122 | 327,097 | |||||
Property and equipment, net | 56,386 | 50,268 | |||||
Right-of-use lease assets, net | 33,743 | 36,836 | |||||
Intangible assets, net | 210,967 | 210,659 | |||||
Goodwill | 569,994 | 549,798 | |||||
Deferred income tax assets, net | 20,296 | 6,388 | |||||
Other assets | 2,695 | 3,149 | |||||
Total Assets | $ | 1,293,203 | $ | 1,184,195 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 72,194 | $ | 54,397 | |||
Accrued liabilities | 52,525 | 47,526 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | 56,082 | 59,373 | |||||
Other current liabilities | 2,746 | 2,263 | |||||
Current portion of contingent consideration | 2,653 | 3,922 | |||||
Current portion of notes payable and other obligations | 8,627 | 9,267 | |||||
Total current liabilities | 194,827 | 176,748 | |||||
Contingent consideration, less current portion | 2,970 | 143 | |||||
Other long-term liabilities | 23,973 | 26,930 | |||||
Notes payable and other obligations, less current portion | 248,432 | 205,468 | |||||
Total liabilities | 470,202 | 409,289 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 652 | 636 | |||||
Additional paid-in capital | 532,638 | 507,779 | |||||
Accumulated other comprehensive income (loss) | 653 | (18 | ) | ||||
Retained earnings | 289,058 | 266,509 | |||||
Total stockholders’ equity | 823,001 | 774,906 | |||||
Total liabilities and stockholders’ equity | $ | 1,293,203 | $ | 1,184,195 | |||
NV5 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (in thousands, except share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
Gross revenues | $ | 250,885 | $ | 237,545 | $ | 694,750 | $ | 642,301 | |||||||
Direct costs: | |||||||||||||||
Salaries and wages | 60,574 | 56,853 | 178,419 | 162,316 | |||||||||||
Sub-consultant services | 46,910 | 44,960 | 114,324 | 112,367 | |||||||||||
Other direct costs | 13,891 | 21,468 | 40,964 | 49,357 | |||||||||||
Total direct costs | 121,375 | 123,281 | 333,707 | 324,040 | |||||||||||
Gross profit | 129,510 | 114,264 | 361,043 | 318,261 | |||||||||||
Operating expenses: | |||||||||||||||
Salaries and wages, payroll taxes, and benefits | 66,922 | 60,262 | 200,466 | 171,883 | |||||||||||
General and administrative | 20,897 | 20,257 | 64,320 | 49,728 | |||||||||||
Facilities and facilities related | 5,873 | 6,011 | 17,869 | 17,208 | |||||||||||
Depreciation and amortization | 15,303 | 12,981 | 44,745 | 36,371 | |||||||||||
Total operating expenses | 108,995 | 99,511 | 327,400 | 275,190 | |||||||||||
Income from operations | 20,515 | 14,753 | 33,643 | 43,071 | |||||||||||
Interest expense | (4,547 | ) | (3,882 | ) | (13,344 | ) | (9,111 | ) | |||||||
Income before income tax benefit (expense) | 15,968 | 10,871 | 20,299 | 33,960 | |||||||||||
Income tax benefit (expense) | 1,110 | 2,185 | 2,250 | (382 | ) | ||||||||||
Net income | $ | 17,078 | $ | 13,056 | $ | 22,549 | $ | 33,578 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.28 | $ | 0.21 | $ | 0.37 | $ | 0.56 | |||||||
Diluted | $ | 0.27 | $ | 0.21 | $ | 0.36 | $ | 0.54 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 61,982,888 | 60,840,402 | 61,500,930 | 60,143,591 | |||||||||||
Diluted | 63,042,962 | 61,991,348 | 62,769,575 | 61,794,767 | |||||||||||
Comprehensive income: | |||||||||||||||
Net income | $ | 17,078 | $ | 13,056 | $ | 22,549 | $ | 33,578 | |||||||
Foreign currency translation income (loss), net of tax | 1,348 | (421 | ) | 671 | (612 | ) | |||||||||
Comprehensive income | $ | 18,426 | $ | 12,635 | $ | 23,220 | $ | 32,966 | |||||||
NV5 GLOBAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||||||
Nine Months Ended | |||||||
September 28, 2024 | September 30, 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 22,549 | $ | 33,578 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 49,289 | 40,443 | |||||
Non-cash lease expense | 9,516 | 10,346 | |||||
Provision for doubtful accounts | 1,072 | 940 | |||||
Stock-based compensation | 19,943 | 16,504 | |||||
Change in fair value of contingent consideration | — | (7,518 | ) | ||||
Gain on disposals of property and equipment | (653 | ) | (633 | ) | |||
Other | 296 | — | |||||
Deferred income taxes | (14,038 | ) | (25,861 | ) | |||
Amortization of debt issuance costs | 556 | 573 | |||||
Changes in operating assets and liabilities, net of impact of acquisitions: | |||||||
Billed receivables | (9,247 | ) | (6,364 | ) | |||
Unbilled receivables | (28,930 | ) | (26,902 | ) | |||
Prepaid expenses and other assets | 3,029 | 1,944 | |||||
Accounts payable | 15,199 | 3,386 | |||||
Accrued liabilities and other long-term liabilities | (6,063 | ) | 1,329 | ||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (4,438 | ) | 4,288 | ||||
Contingent consideration | (1,455 | ) | (1,307 | ) | |||
Other current liabilities | 486 | 689 | |||||
Net cash provided by operating activities | 57,111 | 45,435 | |||||
Cash flows from investing activities: | |||||||
Cash paid for acquisitions (net of cash received from acquisitions) | (54,347 | ) | (189,109 | ) | |||
Proceeds from sale of assets | 270 | 295 | |||||
Purchase of property and equipment | (13,410 | ) | (14,257 | ) | |||
Net cash used in investing activities | (67,487 | ) | (203,071 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings from Senior Credit Facility | 58,000 | 188,000 | |||||
Payments on notes payable and other obligations | (6,122 | ) | (6,399 | ) | |||
Payments of contingent consideration | (1,585 | ) | (793 | ) | |||
Payments of borrowings from Senior Credit Facility | (12,000 | ) | (15,000 | ) | |||
Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation | — | (81 | ) | ||||
Net cash provided by financing activities | 38,293 | 165,727 | |||||
Effect of exchange rate changes on cash and cash equivalents | 516 | (193 | ) | ||||
Net increase in cash and cash equivalents | 28,433 | 7,898 | |||||
Cash and cash equivalents – beginning of period | 44,824 | 38,541 | |||||
Cash and cash equivalents – end of period | $ | 73,257 | $ | 46,439 | |||
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 | Nine Months Ended | |||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||
Net Income | $ | 17,078 | $ | 13,056 | $ | 22,549 | $ | 33,578 | ||||||||
Add: | Interest expense | 4,547 | 3,882 | 13,344 | 9,111 | |||||||||||
Income tax (benefit) expense | (1,110 | ) | (2,185 | ) | (2,250 | ) | 382 | |||||||||
Depreciation and amortization | 16,761 | 14,434 | 49,289 | 40,443 | ||||||||||||
Stock-based compensation | 5,955 | 5,777 | 19,943 | 16,504 | ||||||||||||
Acquisition-related costs* | 1,299 | 1,702 | 4,315 | (2,959 | ) | |||||||||||
Adjusted EBITDA | $ | 44,530 | $ | 36,666 | $ | 107,190 | $ | 97,059 | ||||||||
* Acquisition-related costs include contingent consideration fair value adjustments. |
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | |||||||||||||
Net Income - per diluted share | $ | 0.27 | $ | 0.21 | $ | 0.36 | $ | 0.54 | ||||||||
Per diluted share adjustments: | ||||||||||||||||
Add: | Amortization expense of intangible assets and acquisition-related costs | 0.22 | 0.20 | 0.66 | 0.47 | |||||||||||
Income tax expense | (0.05 | ) | (0.05 | ) | (0.16 | ) | (0.13 | ) | ||||||||
Adjusted EPS | $ | 0.44 | $ | 0.36 | $ | 0.86 | $ | 0.88 | ||||||||
FAQ
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