HOLLYWOOD, Fla., Feb. 20, 2025 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of technology, conformity assessment, consulting solutions, and software applications, today reported financial results for the fourth quarter and full year ended December 28, 2024.
"NV5 delivered a strong performance in 2024, with 10% growth in gross revenues and a 13% increase in gross profit over 2023, and strong organic growth and increased profitability in all three segments of NV5’s business. We enter 2025 with a robust backlog and tailwinds in our target sectors. NV5’s focus on mandated, non-discretionary testing, inspection, and certification (TIC) and engineering services mitigates impacts from economic cycles, and the results of our strategic organic growth initiatives in 2024 continue to drive our growth as we enter 2025. We completed acquisitions in 2024 to strengthen key recurring TIC service areas, including data center commissioning, fire protection consulting, building digitization, and water resources. Our pipeline of acquisition targets remains strong in 2025, and we anticipate further acquisitions to strengthen our platform," said Ben Heraud, CEO of NV5.
Fourth Quarter 2024 Financial Highlights1
Gross revenues in the fourth quarter of 2024 were $246.5 million compared to $214.9 million in the fourth quarter of 2023, a 15% increase, and our gross profit increased 13% to $122.2 million.
Net income in the fourth quarter of 2024 was $5.4 million compared to $10.1 million in the fourth quarter of 2023. Net income includes increases of $3.9 million in acquisition-related costs, of which $2.4 million related to earn-out fair value adjustments, and increases of $2.3 million in intangible amortization expense as a result of recent acquisitions. Additionally, the fourth quarter of the previous year included a $5.2 million expense reduction associated with a flexible time off policy initiative. Our GAAP EPS in the fourth quarter of 2024 was $0.09 per share compared to $0.16 per share in the fourth quarter of 2023.
Our Adjusted EBITDA in the fourth quarter of 2024 was $36.3 million compared to $36.7 million in the fourth quarter of 2023. Adjusted EBITDA Margin on gross revenues were consistent at 14.7% when further adjusted for the one-time benefit of changes to our flexible time off initiative in 2023. Our Adjusted EPS was $0.28 per share in both periods.
Full Year 2024 Financial Highlights1
Gross revenues in 2024 were $941.3 million compared to $857.2 million in 2023, a 10% increase, and our gross profit increased 13% to $483.2 million. This represents a gross margin expansion of 160 basis points to 51.3%.
Net income in 2024 was $28.0 million compared to $43.7 million in 2023. Net income reflects an increase of $9.6 million in amortization expense as a result of recent acquisitions, an increase of $4.2 million in interest expense this year as a result of higher debt balances, and an increase of $11.2 million in acquisition-related costs primarily driven by $9.9 million in earn-out fair value adjustments. The previous year included a $5.2 million reduction in expense associated with a flexible time off policy initiative. Our GAAP EPS in 2024 was $0.44 per share compared to $0.71 per share in 2023. Our net leverage remains low at 1.4x.
Our Adjusted EBITDA increased 7% to $143.5 million from $133.8 million. The previous year included the flexible time-off initiative expense reversal. Our Adjusted EPS in 2024 was $1.14 per share compared to $1.15 per share in 2023.
Fiscal Year 2025 Guidance
- Gross revenues between $1.026 billion and $1.045 billion.
- GAAP EPS between $0.52 per share and $0.62 per share.
- Adjusted EPS between $1.27 per share and $1.37 per share.
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1 Prior periods presented in this press release have been adjusted as described in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 28, 2024.
Stock Split
On September 25, 2024, we announced a 4-for-1 forward split (the "Stock Split") of our common stock. Trading in the Common Stock commenced on a split-adjusted basis on October 11, 2024. All current and prior year data impacted by the Stock Split, including, but not limited to, number of shares and per share amounts, have been revised to reflect the effect of the Stock Split.
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 full year 2024 financial results at 4:30 p.m. (Eastern Time) on February 20, 2025. The accompanying presentation for the call is available by visiting http://ir.nv5.com.
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Date:
| Thursday, February 20, 2025 |
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Time:
| 4:30 p.m. Eastern |
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Toll-free dial-in number:
| +1 800-715-9871 |
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International dial-in number:
| +1 646-307-1963 |
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Conference ID:
| 2719957 |
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Webcast:
| http://ir.nv5.com |
Please dial-in at least 5-10 minutes prior to the start time to allow the operator to log your name and connect you to the conference.
