NV5 Global (NASDAQ: NVEE) reported Q4 EPS of $0.64, $0.15 worse than the analyst estimate of $0.79. Revenue for the quarter came in at $133.8 million versus the consensus estimate of $140.9 million.

Fourth Quarter 2019 Financial Highlights

• Total Revenues for the fourth quarter of 2019 were $133.8 million from $116.1 million in the fourth quarter of 2018. Gross Revenues - GAAP for the fourth quarter of 2019 were $132.6 million from $115.3 million in the fourth quarter of 2018. QSI had revenues in the month of December 2019 of $13.3 million. The acquisition closed on December 20, 2019, which was later in the month than originally anticipated and coincided with the holiday week. As a result, during the period that we owned QSI in 2019, gross revenues were $1.4 million.
• Net Revenues for the quarter were $104.3 million from $88.5 million in the fourth quarter of 2018.
• Adjusted EBITDA for the fourth quarter 2019, excluding stock compensation and acquisition-related costs, was $17.9 million, an increase from $16.4 million in the fourth quarter of 2018, after excluding a $1.5 million reversal of 401K accruals in the fourth quarter of 2018.
• Net income for the fourth quarter of 2019 was $3.6 million from $7.7 million in the fourth quarter of 2018.
• GAAP EPS was $0.28 per share in the fourth quarter of 2019 from $0.62 per share in the fourth quarter of 2018.
• Adjusted EPS in the fourth quarter of 2019 was $0.64 per share from $0.91 in the fourth quarter of 2018. Excluding non-recurring income tax adjustments in the fourth quarter of 2019, Adjusted EPS was $0.69.
• Cash flows from operating activities increased to $18.3 million for 2019 from $17.4 million in 2018.

“2019 was another strong year for NV5 delivering annual gross revenue and Adjusted EBITDA growth. We are pleased with the performance and integration of the nine acquisitions completed in 2019, including the Quantum Spatial ("QSI") acquisition that was made in late December. We are particularly excited about Quantum Spatial’s performance and the growth prospects of our geospatial solutions business,” said Dickerson Wright, PE, Chairman and CEO of NV5. “We are pleased that the delayed large liquefied natural gas project contract and our North Carolina Department of Transportation projects that impacted our financial performance in the second half of 2019 are moving forward this month. Additionally, the issues related to initial set-up of project contracts in our project management system and adequate documentation to support the analysis of certain percentage of completion projects, have been addressed and remediated as of December 28, 2019. We expect that the performance of our core business will continue to be strong in 2020, and we are well-positioned for another successful year.”

GUIDANCE:

NV5 Global sees FY2020 EPS of $4.38-$4.90, versus the consensus of $4.54. NV5 Global sees FY2020 revenue of $700-730 million, versus the consensus of $701.4 million.

• As previously communicated by the Company on January 7, 2020, the Company expects Gross Revenues to range from $700 million to $730 million and full year 2020 Adjusted EPS to range from $4.38 per share to $4.90 per share, an increase of 37% to 54% over 2019 Adjusted EPS of $3.19 per share.

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