NV5(NVEE)2025-02-21 19:38Revenue Sources - For fiscal years 2024, 2023, and 2022, approximately 63%, 68%, and 64% of NV5 Global's gross revenues were derived from public and quasi-public sector clients[34]. - Public and quasi-public sector clients represented approximately 63%, 68%, and 64% of gross revenues in 2024, 2023, and 2022, respectively[72]. - The company anticipates continued revenue growth from public and quasi-public sector clients, which historically show resilience during economic downturns[200]. Client Base and Market Engagement - The company serves approximately 11,300 clients, with the ten largest clients accounting for about 25% of gross revenues for the year ended December 28, 2024[72]. - The ten largest clients accounted for approximately 25% of gross revenues during the fiscal year ended December 28, 2024, indicating a concentration risk[118]. - Approximately 28% of gross revenues in fiscal years 2024, 2023, and 2022 came from California-based projects, indicating a significant reliance on this region[110]. Organizational Structure and Employee Expertise - NV5 Global operates over 100 locations in the U.S. and abroad, enhancing local market expertise and client engagement[28]. - NV5 Global's organizational structure promotes client service through a flat model, ensuring access to qualified professionals across service verticals[27]. - NV5 Global's experienced employees average over 20 years in the engineering and consulting industry, emphasizing the importance of human capital[31]. - The company had 5,024 employees as of December 28, 2024, including 4,714 full-time employees[81]. Service Segments - The Infrastructure segment includes engineering, civil program management, utility services, and conformity assessment practices[37]. - The Building, Technology & Sciences segment encompasses clean energy consulting, data center commissioning, and environmental health sciences[37]. - The Geospatial Solutions segment focuses on geospatial practices, enhancing the company's service capabilities[38]. Growth Strategy and Acquisitions - The company aims to pursue strategic acquisitions to expand service offerings and geographic footprint, focusing on tech-enabled solutions with high profitability[36]. - The company maintains a full-time M&A initiative focused on identifying acquisition targets and enhancing existing service offerings[70]. - The company’s growth strategy includes acquisitions, which could disrupt operations and impact business results if not successfully integrated[151]. - The company faces challenges in identifying suitable acquisition candidates and may not be able to acquire additional companies on acceptable terms[154]. - Future acquisitions may not perform as expected, potentially failing to realize anticipated revenue and profits[156]. Financial Performance - Gross revenues for fiscal year 2024 reached 857,155,000 in 2023[194]. - Net income for fiscal year 2024 was 43,724,000 in 2023[194]. - Total assets increased to 1,184,195,000 in 2023, representing an 11.1% growth[196]. - Total equity rose to 774,906,000 in 2023, marking a 7.4% increase[196]. - Operating expenses for 2024 totaled 366,273,000 in 2023[194]. - Basic earnings per share decreased to 0.72 in 2023, reflecting a 37.5% decline[194]. Risk Factors - The company relies on a limited number of clients for a significant portion of its business, which poses a risk if contracts are not renewed[100]. - Economic downturns and budget constraints faced by state and local governments may lead to project delays or cancellations, adversely affecting financial results[106]. - A delay in the U.S. government's budget process could negatively impact future revenue due to potential procurement delays[107]. - The competitive landscape is highly fragmented, with numerous competitors, which may force the company to make price concessions and affect profitability[119]. - The company faces risks related to cybersecurity breaches, which could adversely impact operations and financial condition[143]. Compliance and Regulatory Issues - The company is subject to various regulatory compliance requirements, including procurement laws and environmental regulations[93]. - Compliance with various procurement laws and regulations is critical, as violations could lead to sanctions and loss of government contractor status[158]. - Regulatory compliance related to data privacy and security is essential, with potential fines and penalties for non-compliance[167]. - The company may face liabilities under environmental laws, which could result in substantial costs and impact financial performance[162]. Sustainability and Corporate Governance - The company is committed to sustainability, focusing on greenhouse gas emissions reduction and expanding its subscription-based energy efficiency services[80]. - Executive Chairman Mr. Dickerson Wright owns approximately 10.7% of the common stock, giving him significant influence over corporate decisions[173]. - The company does not currently pay dividends and does not intend to do so in the foreseeable future[104]. - The company has anti-takeover provisions that may deter acquisition attempts and affect stockholder participation in such proposals[174].