NV5(NVEE) - 2025 Q1 - Quarterly Results

Executive Summary & Highlights NV5 Global, Inc. reported strong first quarter 2025 financial results, driven by organic growth and strategic acquisitions, leading to reaffirmed full-year guidance First Quarter 2025 Performance Overview NV5 Global, Inc. reported strong first quarter 2025 financial results, demonstrating significant year-over-year growth in gross revenues, profitability, and cash flows from operations, leading to reaffirmed full-year guidance - Gross revenues increased 10% over the first quarter of 2024, representing 5% organic growth[2] - Cash flows from operations totaled $38 million, a 96% increase over the first quarter in 2024[2] - Three acquisitions completed in the first quarter had minimal immediate financial impact but position the company for expansion in key geographies and accelerated organic growth[2] - CEO Ben Heraud stated, "NV5 delivered strong first quarter results for revenue and profitability, positioning us for an excellent 2025"[2] Full-Year 2025 Guidance Reaffirmed NV5 reaffirmed its full-year 2025 financial guidance for gross revenues, GAAP EPS, and Adjusted EPS, reflecting confidence in strong first-quarter performance and pipeline Full-Year 2025 Guidance | Metric | Range | | :----------------- | :-------------------------- | | Gross revenues | $1.026 billion - $1.045 billion | | GAAP EPS | $0.52 per share - $0.62 per share | | Adjusted EPS | $1.27 per share - $1.37 per share | Notes on Prior Period Adjustments and Stock Split Prior period financial data has been adjusted to reflect a 4-for-1 forward stock split effective October 2024, ensuring comparability of per-share amounts - Prior periods presented in the press release have been adjusted as described in the Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2024[6] - A 4-for-1 forward stock split was announced on September 25, 2024, with trading on a split-adjusted basis commencing October 11, 2024[6] - All prior year data impacted by the Stock Split, including number of shares and per share amounts, have been revised to reflect its effect[6] Detailed Financial Performance This section details NV5's first quarter 2025 financial results, analyzing revenue, profit, net income, cash flow, and adjusted non-GAAP metrics First Quarter 2025 Financial Results NV5's first quarter 2025 financial results show robust growth in gross revenues, gross profit, net income, GAAP and Adjusted EPS, and strong cash flow generation Revenue and Gross Profit Analysis This section analyzes NV5's first quarter 2025 gross revenues, gross profit, and gross margins, highlighting year-over-year changes Q1 2025 Revenue and Gross Profit (in millions) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :---------------- | :------ | :------ | :--------- | | Gross revenues | $234.0 | $212.6 | +10% | | Gross profit | $123.2 | $111.74 | +10% | | Gross margins | 52.6% | 52.6% | Consistent | Net Income and GAAP Earnings Per Share This section details NV5's first quarter 2025 net income and GAAP earnings per share, including the impact of amortization expenses Q1 2025 Net Income and GAAP EPS | Metric | Q1 2025 | Q1 2024 | YoY Change | | :---------------- | :------ | :------ | :--------- | | Net income | $0.4 million | $0.1 million | +456% | | GAAP EPS | $0.01 per share | $0.00 per share | N/A | - Net income includes $1.4 million of higher amortization expense in Q1 2025 due to acquisitions completed since Q1 2024[4] Cash Flow from Operating Activities This section presents NV5's first quarter 2025 cash flows from operating activities, highlighting significant year-over-year growth Q1 2025 Cash Flow from Operating Activities (in millions) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :-------------------------- | :------ | :------ | :--------- | | Cash flows from operations | $38.4 | $19.6 | +96% | Adjusted Non-GAAP Metrics (EBITDA & EPS) This section provides an overview of NV5's first quarter 2025 Adjusted EBITDA and Adjusted EPS, showcasing year-over-year improvements Q1 2025 Adjusted Non-GAAP Metrics | Metric | Q1 2025 | Q1 2024 | YoY Change | | :------------- | :-------- | :-------- | :--------- | | Adjusted EBITDA | $29.7 million | $27.6 million | +8% | | Adjusted EPS | $0.17 per share | $0.15 per share | +13% | Non-GAAP Financial Measures Explanation This section explains NV5's use of non-GAAP financial measures, including their definitions, rationale, and supplementary role to GAAP metrics Definition and Rationale NV5 uses non-GAAP measures like Adjusted EBITDA and EPS to provide a clearer view of core performance by excluding non-cash or acquisition-related expenses, supplementing GAAP metrics - Adjusted EBITDA reflects adjustments to EBITDA to eliminate stock-based compensation expense and acquisition-related costs[8] - Adjusted EPS reflects adjustments to GAAP EPS to eliminate amortization expense of intangible assets from acquisitions and acquisition-related costs, net of tax benefits[9] - Management believes these non-GAAP measures are useful indicators of financial and operating performance and the ability to generate cash flows from operations[8] - These measures should be considered in addition to, and not as a substitute for, or superior to, other GAAP measures like Net Income and Diluted Earnings per Share[10] Corporate Information and Investor Resources This section provides essential corporate information about NV5 Global, Inc., including its business overview, conference call details, and investor relations contact About NV5 Global, Inc. NV5 Global, Inc. is a leading international provider of tech-enabled engineering, testing, inspection, and consulting solutions for infrastructure resilience and building systems performance - NV5 Global, Inc. is a leading provider of tech-enabled engineering, testing, inspection, and consulting solutions for the built environment[13] - The Company specializes in engineering design, asset management, and geospatial data analytics to support infrastructure resilience and building systems performance[13] - NV5 operates out of more than 100 offices nationwide and abroad[13] Conference Call Details NV5 hosted a conference call on May 1, 2025, to discuss first quarter 2025 financial results, with details for dial-in and webcast access - Conference call held on Thursday, May 1, 2025, at 4:30 p.m. Eastern Time[11] - Webcast available live and for replay via the "Investors" section of the NV5 website at http://ir.nv5.com[11](index=11&type=chunk)[12] Forward-Looking Statements and Investor Contact This news release contains forward-looking statements subject to risks and uncertainties, and provides investor relations contact information - Forward-looking statements are qualified by important factors that could cause actual results to differ materially, including changes in demand, economic conditions, competitive pressures, and regulatory changes[14] - The company assumes no obligation to update forward-looking statements, except as required by law[14] - Investor Relations Contact: Jack Cochran, Vice President, Marketing & Investor Relations, at ir@nv5.com[15] Consolidated Financial Statements This section presents NV5's consolidated financial statements, including balance sheets, statements of net income, and cash flows for specified periods Consolidated Balance Sheets The consolidated balance sheets provide a snapshot of NV5's financial position, detailing assets, liabilities, and stockholders' equity as of March 29, 2025, and December 28, 2024 Consolidated Balance Sheet Highlights (in thousands) | Metric | March 29, 2025 | December 28, 2024 | | :-------------------------- | :--------------- | :---------------- | | Total Assets | $1,312,031 | $1,315,356 | | Total Liabilities | $469,051 | $482,342 | | Total Stockholders' Equity | $842,980 | $833,014 | Consolidated Statements of Net Income and Comprehensive Income (Loss) This statement outlines NV5's financial performance for the three months ended March 29, 2025, and March 30, 2024, showing revenues, expenses, net income, and comprehensive income Consolidated Statements of Net Income Highlights (Three Months Ended, in thousands) | Metric | March 29, 2025 | March 30, 2024 | | :------------------------------------ | :--------------- | :--------------- | | Gross revenues | $234,045 | $212,558 | | Gross profit | $123,201 | $111,740 | | Income from operations | $4,375 | $4,301 | | Net income | $428 | $77 | | Diluted EPS | $0.01 | $0.00 | Consolidated Statements of Cash Flows The consolidated statements of cash flows detail cash generated and used by NV5 across operating, investing, and financing activities for the three months ended March 29, 2025, and March 30, 2024 Consolidated Statements of Cash Flows Highlights (Three Months Ended, in thousands) | Metric | March 29, 2025 | March 30, 2024 | | :-------------------------------- | :--------------- | :--------------- | | Net cash provided by operating activities | $38,372 | $19,554 | | Net cash used in investing activities | $(15,208) | $(48,985) | | Net cash (used) provided by financing activities | $(20,389) | $29,595 | | Cash and cash equivalents – end of period | $53,212 | $44,766 | Non-GAAP Reconciliations This section provides detailed reconciliations of GAAP financial measures to their corresponding non-GAAP counterparts, specifically for Net Income to Adjusted EBITDA and GAAP EPS to Adjusted EPS Reconciliation of GAAP Net Income to Adjusted EBITDA This section provides a detailed reconciliation of GAAP Net Income to Adjusted EBITDA, outlining specific adjustments for interest, tax, depreciation, amortization, stock-based compensation, and acquisition costs Reconciliation of GAAP Net Income to Adjusted EBITDA (Three Months Ended, in thousands) | Metric | March 29, 2025 | March 30, 2024 | | :-------------------------- | :--------------- | :--------------- | | Net Income | $428 | $77 | | Add: Interest expense | $3,545 | $4,191 | | Add: Income tax expense | $402 | $33 | | Add: Depreciation and amortization | $17,377 | $15,363 | | Add: Stock-based compensation | $6,770 | $6,666 | | Add: 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 This reconciliation details adjustments to GAAP EPS to arrive at Adjusted EPS, primarily by adding back amortization expense of intangible assets and acquisition-related costs, and adjusting for income tax Reconciliation of GAAP EPS to Adjusted EPS (Three Months Ended) | Metric | March 29, 2025 | March 30, 2024 | | :-------------------------------------------------- | :--------------- | :--------------- | | Net Income - per diluted share (GAAP EPS) | $0.01 | $0.00 | | 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