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 $1 billion. NV5 enters the fourth quarter with tailwinds from both a record backlog and substantial industry investments for our services. We anticipate strong growth for the remainder of 2024 and entering the new year," said Dickerson Wright, Executive Chairman of NV5.
Preliminary Unaudited Third Quarter 2024 Results2
Gross revenues in the third quarter of 2024 grew 6% to $250.9 million from $237.5 million in the third quarter of 2023 and our gross profit increased 13% to $129.5 million. This represents a gross margin expansion of 350 basis points to 51.6%.
Net income in the third quarter of 2024 grew 31% to $17.1 million from $13.1 million in the third quarter of 2023. Net income includes $665k of higher interest expense this quarter as a result of higher debt balances, although our net leverage remains low at 1.3x. Our GAAP EPS in the third quarter of 2024 grew 29% to $0.27 per share from $0.21 per share in the third quarter of 2023. Cash flows from operating activities in the third quarter of 2024 grew 145% to $48.9 million from $19.9 million in the third quarter of 2023.
Our Adjusted EBITDA increased 21% to $44.5 million from $36.7 million, and our Adjusted EBITDA margin expanded to 17.7% from 15.4% in the prior year quarter. Our Adjusted EPS1 grew 22% to $0.44 per share compared to $0.36 per share in the third quarter of 2023.
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 $260k, 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: $939 million to $943 million.
GAAP EPS: $0.48 per share to $0.54 per share (adjusted for 4-1 forward stock split).
Adjusted EPS: $1.15 per share to $1.19 per share (adjusted for 4-1 forward stock split).
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 | |
