NV5 Announces Strongest Fourth Quarter and Full Year Financial Results to Date
HOLLYWOOD, FL -- (Marketwired) -- 03/10/16 -- NV5 Global, Inc. (NASDAQ: NVEE) ("NV5" or the "Company"), a provider of professional and technical engineering and consulting solutions, today reported financial results for the fourth quarter and year ended December 31, 2015.
Full-Year 2015 Financial Highlights
- Full-Year 2015 Total Revenues increased 43% to $156 Million from $109 Million
- Full-Year 2015 Organic Growth was 9%
- EBITDA was $17.2 million or 14% of Net Revenues up from $10.2 million or 12% of Net Revenues for 2014
- Full-Year 2015 Gross Profit was 45%, compared to 42% for the full-year 2014
- Full-Year 2015 Net Income increased 74% to $8.5 Million from $4.9 Million
- GAAP EPS for 2015 increased 36% to $1.18 compared to $0.87 for 2014 and Adjusted EPS for 2015 increased 36% to $1.41 compared to $1.03 for 2014
- Full-Year 2016 Revenue Guidance of $220 Million to $230 Million, GAAP EPS Guidance of $1.40 to $1.54, and Adjusted EPS Guidance of $1.67 per share to $1.81 per share
- Backlog of $155.3 million as of December 31, 2015 compared to $82.1 million as of December 31, 2014
Fourth Quarter 2015 Financial Highlights
- Total Revenues for the quarter increased 47% year-over-year to $42.6 million and Gross Revenues -- GAAP for the quarter increased 47% year-over-year to $42.3 million
- Organic revenue growth for the fourth quarter of 2015 was 3%
- EBITDA for the quarter was $5.2 million or 16% of Net Revenues up from $3.0 million or 14% of Net Revenues for the fourth quarter of 2014
- Gross Profit for the quarter was 45% compared to 39% for the fourth quarter of 2014
- Net income for the quarter increased 90% to $2.7 million from $1.4 million for the fourth quarter of 2014
- GAAP EPS for the quarter increased 32% to $0.33 over 8.0 million shares compared to $0.25 over 5.7 million shares in the fourth quarter of 2014, and Adjusted EPS for the quarter increased 38% to $0.41 compared to $0.30 in the fourth quarter of 2014
"We experienced a transformative year at NV5 characterized chiefly by margin growth from cross-selling and synergy among our five service verticals and strategic growth from four key acquisitions we completed in 2015," said Dickerson Wright, PE, Chairman and CEO of NV5. "We posted another set of record financial results for the fourth quarter of 2015. Our organic growth of 9% for the full year 2015 far exceeded our industry's standard. However, a downturn in our natural gas pipeline services business, while it represents less than 10% of total revenues, resulted in organic growth of 3% for the quarter. We anticipate organic growth for the full year of 2016 to be similar to organic growth for the full year of 2015."
Total Revenues for the fourth quarter of 2015 were $42.6 million, a 47% increase from the fourth quarter of 2014. 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 fourth quarter of 2015 were $42.3 million, a 47% increase from the fourth quarter of 2014. Net Revenue for the fourth quarter of 2015 was $33.8 million, an increase of 58% from the fourth quarter of 2014.
EBITDA for the fourth quarter of 2015 was $5.2 million or 16% of Net Revenues, an increase of 72% up from $3.0 million or 14% of net revenues for the fourth quarter of last year.
Net income for the fourth quarter of 2015 was $2.7 million, or $0.33 per diluted share, up from net income of $1.4 million, or $0.25 per diluted share in the fourth quarter of 2014. Adjusted EPS for the fourth quarter of 2015 was $0.41 vs. $0.30 per share in the fourth quarter of 2014.
GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 8,028,685 for the fourth quarter of 2015, compared to weighted-average shares outstanding of 5,736,533 for the fourth quarter of 2014. Included in the weighted-average shares outstanding for the fourth quarter of 2015, is the addition of 1.6 million shares issued from our secondary offering on May 28, 2015.
Regarding the results for the full year 2015, Total Revenues for 2015 were $155.9 million, a 43% increase from 2014. Gross Revenues -- GAAP for 2015 increased 43% to $154.7 million, compared with $108.4 million reported for 2014. Net Revenue for the full year ended December 31, 2015 was $123.7 million, an increase of 49% for 2014. Our organic growth for 2015 was 9%.
EBITDA for 2015 was $17.2 million or 14% of Net Revenues, up from $10.2 million or 12% of Net Revenues for 2014.
Net income for 2015 was $8.5 million, or $1.18 per diluted share, up from net income of $4.9 million, or $0.87 per diluted share for 2014. Adjusted EPS for 2015 was $1.41 vs. $1.03 for 2014.
GAAP EPS and Adjusted EPS reflect weighted-average shares outstanding of 7,215,898 for 2015 compared to weighted-average shares outstanding of 5,592,010 for 2014. Included in the weighted-average shares outstanding for 2015, is the addition of 1,644,500 shares issued from our secondary offering on May 28, 2015.
Cash flow from operating activities increased $4.6 million for 2015 compared to 2014. Cash flow from operating activities for 2015 was $6.0 million, compared $1.4 million for 2014. At December 31, 2015, cash and cash equivalents were $23.5 million compared to $6.9 million as of December 31, 2014.
At December 31, 2015, the Company reported backlog of $155.3 million, an increase of 89% from $82.1 million as of December 31, 2014.
2016 Outlook
The Company's guidance for full-year 2016 Total Revenues, including the impact of acquisitions closed through February 29, 2016, ranges from $220 million to $230 million, which represents an increase of 41% to 48% from 2015 Total Revenues of $155.9 million. The Company expects that full-year 2016 GAAP EPS will range from $1.40 per share to $1.54 per share. Furthermore, the Company expects that full-year 2016 Adjusted EPS will range from $1.67 per share to $1.81 per share. This guidance for Total Revenues, GAAP EPS and Adjusted EPS excludes anticipated acquisitions for the remainder of 2016.
Use of Non-GAAP Financial Measures
Total Revenues and Net Revenues is not a measure of financial performance under U.S. generally accepted accounting principles ("GAAP"). Gross Revenues -- GAAP include sub-consultant costs and other direct costs which are generally pass-through costs. Furthermore, Gross Revenues -- GAAP eliminates intercompany revenues where the Company performed the service in lieu of using a third-party sub-consultant. Therefore, the Company believes that Total Revenues and Net Revenues, which are non-GAAP financial measures 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 Total Revenues and Net Revenues is provided at the end of this news release.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a measure of financial performance under 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.
Adjusted earnings per diluted share data ("Adjusted EPS") is not a measure of financial performance under GAAP. Adjusted EPS reflects adjustments to reported diluted earnings per share ("GAAP EPS") data to eliminate amortization expense of intangible assets from acquisitions. As the Company continues its acquisition strategy, the growth in Adjusted EPS will likely increase at a greater rate than GAAP EPS as reported in accordance with GAAP. A reconciliation of GAAP EPS as reported in accordance with GAAP to Adjusted EPS provided at the end of this news release.
NV5's definition of Total Revenues, Net Revenues, 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 contract revenues, net income and diluted earnings per share
Conference Call
NV5 will host a conference call to discuss its fourth quarter 2015 financial results at 4:30 p.m. (Eastern Time) on March 10, 2016.
Date:
Thursday, March 10, 2016
Time: 4:30 p.m. Eastern
Toll-free dial-in number: +1 877-311-4180
International dial-in number: +1 616-548-5594
Conference ID: 45760259
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 March 17, 2016. 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: 45760259
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 Global, 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 53 offices in 21 states nationwide, 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
This press 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.
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
December December
31, 2015 31, 2014
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 23,476 $ 6,872
Accounts receivable, net of allowance for
doubtful accounts of $1,536 and $845 as of
December 31, 2015 and 2014, respectively 47,747 27,015
Prepaid expenses and other current assets 1,092 1,224
Deferred income tax assets 1,440 358
----------- -----------
Total current assets 73,755 35,469
Property and equipment, net 3,091 1,625
Intangible assets, net 12,367 5,221
Goodwill 21,679 11,142
Other assets 877 810
Deferred income tax assets - 1,123
----------- -----------
Total Assets $ 111,769 $ 55,390
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,658 $ 5,335
Accrued liabilities 9,564 4,763
Income taxes payable 813 1,157
Billings in excess of costs and estimated
earnings on uncompleted contracts 293 277
Client deposits 110 121
Current portion of contingent consideration 458 618
Current portion of stock repurchase obligation - 372
Current portion of notes payable 4,347 2,878
----------- -----------
Total current liabilities 22,243 15,521
Contingent consideration, less current portion 821 323
Stock repurchase obligation, less current
portion - 563
Notes payable, less current portion 6,360 3,378
Deferred income tax liabilities 1,582 -
----------- -----------
Total liabilities 31,006 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, 8,214,627 and 5,754,959 shares
issued and outstanding as of December 31, 2015
and 2014, respectively 81 58
Additional paid-in capital 62,260 25,617
Retained earnings 18,422 9,930
----------- -----------
Total stockholders' equity 80,763 35,605
----------- -----------
Total liabilities and stockholders' equity $ 111,769 $ 55,390
=========== ===========
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except share data)
(Unaudited)
Three Months Ended Years Ended
---------------------- ----------------------
December December December December
31 31 31 31,
2015 2014 2015 2014
---------- ---------- ---------- ----------
Gross revenues $ 42,320 $ 28,740 $ 154,655 $ 108,382
Direct costs:
Salaries and wages 14,565 10,006 53,687 36,976
Sub-consultant services 6,088 4,858 21,394 15,996
Other direct costs 2,676 2,712 10,796 10,229
---------- ---------- ---------- ----------
Total direct costs 23,329 17,576 85,877 63,201
---------- ---------- ---------- ----------
Gross Profit 18,991 11,164 68,778 45,181
---------- ---------- ---------- ----------
Operating Expenses:
Salaries and wages, payroll
taxes and benefits 9,473 5,215 34,731 22,887
General and administrative 2,768 2,104 11,930 8,865
Facilities and facilities
related 1,521 804 4,950 3,198
Depreciation and
amortization 1,022 546 3,468 1,988
---------- ---------- ---------- ----------
Total operating expenses 14,784 8,669 55,079 36,938
---------- ---------- ---------- ----------
Income from operations 4,207 2,495 13,699 8,243
---------- ---------- ---------- ----------
Other expense:
Interest expense (32) (55) (212) (274)
---------- ---------- ---------- ----------
Total other expense (32) (55) (212) (274)
---------- ---------- ---------- ----------
Income before income tax
expense 4,175 2,440 13,487 7,969
Income tax expense (1,503) (1,032) (4,995) (3,076)
---------- ---------- ---------- ----------
Net income $ 2,672 $ 1,408 $ 8,492 $ 4,893
========== ========== ========== ==========
Earnings per share:
Basic $ 0.35 $ 0.27 $ 1.25 0.96
Diluted $ 0.33 $ 0.25 $ 1.18 0.87
Weighted average common
shares outstanding:
Basic 7,719,664 5,147,600 6,773,135 5,102,058
Diluted 8,028,685 5,736,533 7,215,898 5,592,010
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Years Ended
------------------------
December December
31, 2015 31, 2014
----------- -----------
Cash Flows From Operating Activities:
Net income $ 8,492 $ 4,893
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,468 1,988
Provision for doubtful accounts 164 (136)
Stock compensation 1,696 752
Change in fair value of contingent consideration (335) 18
Loss on disposal of leasehold improvements - 64
Excess tax benefit from stock based compensation (1,536) -
Deferred income taxes (666) 247
Changes in operating assets and liabilities, net
of impact of acquisitions:
Accounts receivable (4,846) (7,591)
Prepaid expenses and other assets 601 (645)
Accounts payable (3,830) 1,316
Accrued liabilities 1,479 399
Income taxes payable 1,243 392
Billings in excess of costs and estimated
earnings on uncompleted contracts 16 (124)
Client deposits 26 (153)
----------- -----------
Net cash provided by operating activities 5,972 1,420
----------- -----------
Cash Flows From Investing Activities:
Cash paid for acquisitions (10,427) (4,650)
Purchase of property and equipment (601) (825)
----------- -----------
Net cash used in investing activities (11,028) (5,475)
----------- -----------
Cash Flows From Financing Activities:
Proceeds from public offerings 32,068 -
Payments for public offering costs (2,649) -
Exercise of warrants costs (216) -
Payments on notes payable (10,797) (1,999)
Payments of contingent consideration (533) (233)
Excess tax benefit from stock based compensation 1,536 -
Payments of debt issuance costs - (27)
Payments on stock repurchase obligation (935) (687)
Proceeds from exercise of warrants 3,186 5
----------- -----------
Net cash provided by (used in) financing
activities 21,660 (2,941)
----------- -----------
Net increase (decrease) in Cash and Cash
Equivalents 16,604 (6,996)
Cash and cash equivalents - beginning of period 6,872 13,868
----------- -----------
Cash and cash equivalents - end of period $ 23,476 $ 6,872
=========== ===========
NV5 GLOBAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Years Ended
-----------------------
December December
31, 2015 31, 2014
----------- -----------
Supplemental disclosures of cash flow information:
Cash paid for interest $ 185 $ 186
Cash paid for income taxes $ 4,371 $ 1,767
Non-cash investing and financing activities:
Contingent consideration (earn-out) $ 1,307 $ 286
Notes and stock payable for acquisitions $ 9,250 $ 4,010
Stock issuance for acquisitions $ 900 $ 1,046
Payment of contingent consideration with common
stock $ 100 $ 100
Landlord-funded leasehold improvements $ - $ 137
NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GROSS REVENUES TO TOTAL REVENUES AND NET REVENUES
(in thousands, except share data)
(Unaudited)
Three Months Ended Years Ended
----------------------- -----------------------
December December December December
31, 31, 31, 31,
2015 2014 2015 2014
----------- ----------- ----------- -----------
Gross Revenues - GAAP $ 42,320 $ 28,740 $ 154,655 $ 108,382
Add: Intercompany revenues
in lieu of sub-
consultants 228 227 1,262 705
----------- ----------- ----------- -----------
Total Revenues $ 42,548 $ 28,967 $ 155,917 $ 109,087
Less: Sub-consultant
services 6,088 4,858 21,394 15,996
Other direct costs 2,676 2,712 10,796 10,229
----------- ----------- ----------- -----------
Net Revenues $ 33,784 $ 21,397 $ 123,727 $ 82,862
=========== =========== =========== ===========
NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO EBITDA
(in thousands)
(Unaudited)
Three Months Ended Years Ended
--------------------- ---------------------
December December December December
31, 31, 31, 31,
2015 2014 2015 2014
---------- ---------- ---------- ----------
Net Income $ 2,672 $ 1,408 $ 8,492 $ 4,893
Add: Interest expense 32 55 212 274
Income tax expense 1,503 1,032 4,995 3,076
Depreciation and
Amortization 1,022 546 3,468 1,988
---------- ---------- ---------- ----------
EBITDA $ 5,229 $ 3,041 $ 17,167 $ 10,231
========== ========== ========== ==========
NV5 GLOBAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP EPS TO ADJUSTED EPS
(Unaudited)
Three Months Ended Years Ended
---------------------- ----------------------
December December December December
31, 31, 31, 31,
2015 2014 2015 2014
---------- ---------- ---------- ----------
Net Income - per diluted
share $ 0.33 $ 0.25 $ 1.18 $ 0.87
Per diluted share
adjustments:
Add: Amortization expense
of intangible assets 0.13 0.10 0.36 0.26
Income tax expense (0.05) (0.04) (0.13) (0.10)
---------- ---------- ---------- ----------
Adjusted EPS $ 0.41 $ 0.30 $ 1.41 $ 1.03
========== ========== ========== ==========
ContactNV5 Global, Inc. Lauren Wright, PhDDirector of Investor Relations Tel: +1-408-392-7233 Email: [email protected]
Source: NV5 Global, Inc.