NV5 Holdings, Inc. (the "Company") (NASDAQ: NVEEU), a provider of
professional and technical engineering and consulting solutions,
reported financial results for the second quarter and six months
ended June 30, 2013.
Second Quarter 2013 Highlights vs. Second
Quarter 2012
- Total gross contract revenues increased 16% to $17.1
million.
- Gross profit increased 10% to $8.6 million.
- Net income increased 66% to $737,000 or $0.18 per diluted
share, compared to net income of $444,000 or $0.18 per diluted
share.
Second Quarter 2013 Financial Results
Total gross contract revenues in the second quarter of 2013
increased 16% to $17.1 million, compared to $14.8 million in the
second quarter of 2012. The increase was due primarily to the start
of new projects in the Company's infrastructure, engineering and
support services, as well as the contribution from Kaco and
Consilium, which were acquired in the third quarter of 2012 and
second quarter of 2013, respectively.
Gross profit in the second quarter of 2013 was $8.6 million,
compared to $7.8 million in the second quarter of 2012. The 10%
increase in gross profit was due primarily to the increase in
revenues.
Income from operations in the second quarter of 2013 increased
46% to $1.1 million or 6.5% of total gross contract revenues,
compared to $759,000 or 5.1% of total gross contract revenues in
the same year-ago quarter. Net income in the second quarter of 2013
increased 66% to $737,000 or $0.18 per diluted share, compared to
net income of $444,000 or $0.18 per diluted share in the second
quarter of 2012. The earnings per share during the second quarter
of 2013 reflects the full effect of 1,610,000 additional shares
outstanding when compared to the outstanding shares during the
second quarter of 2012.
At June 30, 2013, cash and cash equivalents totaled $6.7
million, compared to $2.3 million at December 31, 2012. On April 2,
2013, the Company received net proceeds of approximately $8.7
million from its initial public offering.
At June 30, 2013, NV5 Holdings reported backlog of approximately
$55.0 million, compared to approximately $53.0 million at March 31,
2013 and approximately $45.0 million at December 31, 2012.
First Half 2013 Financial Results Total
gross contract revenues in the first half of 2013 increased 13% to
$32.7 million, compared to $28.9 million in the first half of
2012.
Gross profit in the first half of 2013 increased 11% to $16.9
million, compared to $15.3 million in the first half of 2012.
Income from operations in the first half of 2013 increased
significantly to $1.9 million or 5.9% of total gross contract
revenues, compared to $325,000 or 1.1% of total gross contract
revenues in the first half of 2012. Net income in the first half of
2013 also increased significantly to $1.3 million or $0.40 per
diluted share, compared to net income of $102,000 or $0.04 per
diluted share in the first half of 2012.
Management Commentary "We continued the
momentum experienced in Q1 with another strong quarter of
double-digit revenue and net income growth, as well as expanded
backlog," said Dickerson Wright, chairman and CEO of NV5 Holdings.
"These results were achieved from new project wins, our internal
focus on performance optimization and the acquisitions of Consilium
and Kaco."
"Our acquisitions to-date have been highly accretive and they've
either introduced a new service line or strengthened an existing
service in a particular geographic market," continued Wright. "This
blueprint is how we expect to execute our acquisition strategy and
we continue to evaluate a growing list of companies that would
support our platform in this highly fragmented industry."
Wright concluded: "As we look towards the back half of 2013, we
plan to continue our focus on organic growth while staying diligent
on our acquisition strategy. NV5 is known in our marketplace as an
acquirer that embraces a culture of entrepreneurship and we all
share the vision to establish a leading, national engineering
platform around our five business lines."
2013 Outlook NV5's guidance for fiscal
year 2013 remains on track with gross contract revenues expected to
range between $62.0 million and $70.0 million, which would
represent an increase of approximately 2% to 16% from 2012 gross
contract revenues.
Conference Call NV5 Holdings will hold a
conference call today at 4:30 p.m. Eastern time to discuss its
second quarter 2013 results.
The Company's Chairman and CEO, Dickerson Wright, and CFO,
Michael Rama, will host the conference call, followed by a question
and answer period.
Date: Tuesday, August 13, 2013 Time: 4:30 p.m. Eastern time
Dial-In number: 1-877-941-4774 International number: 1-480-629-9760
Conference ID: 4632610 Webcast:
http://edge.media-server.com/m/p/mfqs7o5n/lan/en
The conference call will be webcast live and available for
replay via the investor section of the company's website at
www.NV5.com.
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Liolios Group at
1-949-574-3860.
A replay of the conference call will be available after 7:30
p.m. Eastern time on the same day through September 13, 2013.
Toll-free replay number: 1-877-870-5176 International replay
number: 1-858-384-5517 Replay ID: 4632610
About NV5 Holdings, Inc. NV5 Holdings,
Inc. (NASDAQ: NVEEU) is a provider of professional and technical
engineering and consulting solutions to public and private sector
clients in the infrastructure, energy, construction, real estate
and environmental markets. The Company primarily focuses on five
business service verticals: construction quality assurance,
infrastructure engineering, energy services, program management and
environmental services. NV5 Holdings operates 22 offices in
California, Colorado, Utah, Florida and New Jersey and is
headquartered in Hollywood, Florida. For additional information,
please visit the Company's website at www.NV5.com. Also visit the
Company on Twitter, LinkedIn, Facebook, and Vimeo.
Forward-Looking Statements This press
release contains "forward-looking statements" within the meaning of
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
include, but are not limited to, statements regarding the Company's
acquisition and growth strategies; ability to establish a leading,
national engineering platform around its five business lines; and
guidance relating to financial projections for fiscal year 2013,
including gross contract revenues. The Company cautions that these
statements are qualified by important factors that could cause
actual results to differ materially from those reflected by the
forward-looking statements contained herein. Such factors include,
but are not limited to: (a) changes in demand from the local and
state government and private clients that we serve; (b) general
economic conditions, nationally and globally, and their effect on
the market for our services; (c) competitive pressures and trends
in our industry and our ability to successfully compete with our
competitors; (d) changes in laws, regulations, or policies; and (e)
the "Risk Factors" set forth in the Company's most recent SEC
filings. All forward-looking statements are based on information
available to the Company on the date hereof, and the Company
assumes no obligation to update such statements.
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, December 31,
2013 2012
------------- -------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,711 $ 2,294
Accounts receivable, net of allowance for
doubtful accounts of $1,512 and $1,631 as of
June 30, 2013 and December 31, 2012,
respectively 16,723 15,052
Prepaid expenses and other current assets 352 311
Deferred income tax assets 536 543
------------- -------------
Total current assets 24,322 18,200
Property and equipment, net 1,371 1,273
Intangible assets, net 2,978 2,758
Goodwill 6,593 5,857
Cash surrender value of officers' life
insurance 658 656
Other assets 122 600
Deferred income tax assets 749 619
------------- -------------
Total Assets $ 36,793 $ 29,963
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,842 $ 3,261
Accrued liabilities 3,861 3,082
Income taxes payable 38 1,992
Billings in excess of costs and estimated
earnings on uncompleted contracts 472 430
Client deposits 48 47
Current portion of contingent consideration 328 --
Current portion of stock repurchase obligation 739 772
Current portion of notes payable 1,608 3,538
------------- -------------
Total current liabilities 10,936 13,122
Contingent consideration, less current portion 621 --
Stock repurchase obligations, less current
portion 1,334 1,621
Notes payable, less current portion 3,471 3,851
------------- -------------
Total liabilities 16,362 18,594
Commitments and contingencies
Stockholders' equity:
Preferred stock: $0.01 par value; 5,000,000
shares authorized, no shares issued and
outstanding. -- --
Common stock, $0.01 par value, 45,000,000
shares authorized, 4,225,376 and 2,600,000
shares issued and outstanding as of June 30,
2013 and December 31, 2012 42 26
Additional paid-in capital 16,818 9,065
Retained earnings 3,571 2,278
------------- -------------
Total stockholders' equity 20,431 11,369
------------- -------------
Total liabilities and stockholders' equity $ 36,793 $ 29,963
============= =============
NV5 HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except share data)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2013 2012 2013 2012
--------- --------- --------- ---------
Gross contract revenues $ 17,149 $ 14,823 $ 32,729 $ 28,921
Direct costs (excluding
depreciation and amortization):
Salaries and wages 4,964 4,146 9,432 8,030
Sub-consultant services 3,092 2,359 5,475 4,688
Other direct costs 522 552 910 949
--------- --------- --------- ---------
Total direct costs 8,578 7,057 15,817 13,667
--------- --------- --------- ---------
Gross Profit 8,571 7,766 16,912 15,254
--------- --------- --------- ---------
Operating Expenses:
Salaries and wages, payroll
taxes and benefits 4,833 4,502 9,748 9,520
General and administrative 1,450 1,367 2,842 3,089
Facilities and facilities
related 809 827 1,663 1,607
Depreciation and amortization 372 311 723 713
--------- --------- --------- ---------
Total operating expenses 7,464 7,007 14,976 14,929
--------- --------- --------- ---------
Income from operations 1,107 759 1,936 325
--------- --------- --------- ---------
Other (expense) income:
Interest expense (43) (93) (136) (174)
--------- --------- --------- ---------
Total other (expense) (43) (93) (136) (174)
--------- --------- --------- ---------
Income before income tax expense 1,064 666 1,800 151
Income tax expense (327) (222) (507) (49)
--------- --------- --------- ---------
Net income and comprehensive
income $ 737 $ 444 $ 1,293 $ 102
========= ========= ========= =========
Basic Earnings per Share $ 0.20 $ 0.19 $ 0.43 $ 0.04
========= ========= ========= =========
Diluted Earnings per Share $ 0.18 $ 0.18 $ 0.40 $ 0.04
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Company Contact: NV5 Holdings, Inc. Richard Tong Tel
1-954-495-2114 Email Contact Investor Relations: Liolios
Group, Inc. Cody Slach Tel 1-949-574-3860 Email Contact
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