NVEE - Earnings call transcript Q1 2019

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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss NV5 Financial Results for the First Quarter ended March 30, 2019.

Joining us today are Dickerson Wright, Chairman and CEO of NV5; Michael Rama, CFO of NV5; Alex Hockman, President and COO of NV5; and Richard Tong, Executive Vice President and General Counsel at NV5. I'd now like turn the call over to Richard Tong.

Richard Tong

Thank you, operator.

Before we proceed, I would like to remind everyone that this conference call may contain forward-looking statements within the meaning of the Safe Harbor provisions of the U.S. Act financial including performance. Reform events concerning Litigation future and Securities of statements XXXX, future Private commission Risk files NVX’s The as Exchange qualified for is including documents the on by other cautions the well important section with Company that time. XX, the from the that factors as those these year end file time discussed in XXXX, Form with Report to Commission on Annual statements the December are Factors company XX-K of which in and Securities factors cause those statements These could differ actual materially reflected contained results from to forward-looking by the herein.

company you the forward-looking date statements company should not rely not the estimates forward-looking do at future, any elect disclaims if the to only as any obligation – in While of to these representing views specifically so subsequent on may therefore some statements today. and update to even point change,

measures the to way earnings replay against webcast retransmission or and rebroadcast would be in discussed. this today's the on Company's note Any strictly redistribution, quarter this XXXX non-GAAP like the first written the without website. prohibited. be any at everyone www.nvX.com. expressed NVX that references otherwise A call, is that news Investors the today's being of link to remind call a call also release are comparisons I in via quarter consent will will of available provided the of section of in of this available Please unless between financial stated, reconciliation release company's XXXX. is website all and GAAP first the During made and two

review before and of the and of first Michael XXXX. XXXX COO Hockman, Wright, and begin Chief over for the will results quarter call We call the President Dickerson a for comments Officer from Financial Alex turning outlook Rama, to of Chairman CEO and NVX; with NVX

open go please then ahead. your for the will We call questions. Dickerson,

Dickerson Wright

XXXX quarter everyone joining conference you first us Thank for NVX and to thank call. you, Richard,

We This been first the quarter results are XXXX. has record historically slowest pleased our for because noteworthy quarter is quarter. to announce first

by therefore the I I initiatives first will As our of give mention concerning for update our quarter success year-over-year is measured XXXX. to always, company-wide our specific the an of progress XXXX. will comparisons accomplishments. also briefly

the our financial XX% the XXXX. quarter of of overall First, to quarter accomplishments $XXX from for revenue first XXXX. million first the of million increased in Total XXXX first in $XX quarter

share [indiscernible] to $X.XX flow million between Long-term to QX XX.X successful QX compared the to $XX is or compared XXXX was million QX on or on XXXX. Our and decreased debt XXXX. per for organic revenue $X.XX compared XXX% million million QX shares for the our to XX% earnings XXXX million was was million earnings depreciation million growth XX.X quarter. per shares on that per share to in net interest, $XX.X would also cross-selling Cash $XX.X revenues to diluted comment of X% XXXX. QX $XX I offices. revenues share net of increased amortization, like diluted taxes, Adjusted from $X.X in for for EBITDA, before in XX% million XXXX.

goals have for We specific financial set cross-selling.

initiatives. Our between comment the revenue million were year-to-date our actual on $X.X would I goal now like results $X.X million our offices. was and in to growth

initiatives a result profitability to position are cash a in As we increase three for in of XXXX. our continued growth flow, support and specific

grown initiative competencies initiative XXXX gas NVX’s LNG. natural energy of capitalizes electrical that original a plan. XX% conversion core and specific in transmission has on gas This three-year our from is Our initiative XXXX to distribution, the

The other is consulting company-wide technology services. and initiative optimization energy focused on

multiyear, multimillion from Defense for advisory Celtic generated to for a The grow. optimization. the Department of Energy energy contract continues First, our energy optimization, award services of dollar which acquisition

of design The information electrical services. The and mechanical technology services. acquisition seen also will capitalize has well-recognized Sextant firm the audiovisual is also a Group positive security led Sextant NVX's Our provides Sextant facility national on services, and that initiative Group. technology and platform growth benefit recent for by national

and full mergers acquisition with opportunities. pipeline Our is

read acquisitions of news the recent The JV releases and may have Sextant You regarding our survey. Group

discussed, our electrical industry ALTA a as to opportunistic strategic has acquisition we successful the are gives national a that Sextant our design in is engineering and add NVX Surveying. like that being would in offerings. for acquisitions Sextant services a Southwest As integrations. for presence also and I Group and recognized the firm a most process enhances greatly synergistic in recent platform Surveying, service for its provides mechanical, JV geographical consulting

We look very introduce projects. would from optimistic Hockman, Alex now NVX. our to the I Thank national specifically of and XXXX. President Alex Alex? for acquisition and discussion, comment to growth are forward operations the continued And will concerning to you. like

Alex Hockman

Thank you, good Dickerson and everyone. afternoon,

new nationwide. exceeded geotechnical million end provide and education Sextant technology the their sales power the QX services. group substation continued services deepest NVX casino overhead QX hospitality which contracts. focused they over fire $XX Our provided California on in and of is have outside Sextant With in cross-sell A in work technology of contracts transmission, particular exceeded acquired for field. mitigation over results on by expansion total services group group, $X contracts for power has a $XX services. component projects engineering awarded Building almost in and million QX awards gas of of of higher of their to array consulting United portfolio and QX, The amendments. by Group, are survey, interest and power our traditionally and university service these At or of college $X distribution, electrical offerings. underground of approximately transmission, contracts natural and XX% and across greatly XX is and the is our commissioning employees delivery wide services million Their $X practice include enhances environmental The in excess our delivery States, million a and positioned including million design

expertise Initially, to of this and they this reputation between to of facets as recognized and on award and with roads, positioned and the landmark will community the provide of East Civil projects. win are systems. sustainability hospitality focused they services, contract and organically multiple traffic with California NVX's rail and program technology traditional set Further, of on engineering as particular current The the Central is as significance group vertical include receive Valley develop testament as to a they was our grow the part practice to West our of its government, a highway services. PM further and have in grown, offerings projects, rail Valley. Jose aviation contract services to program. large expanded as offerings construction $X intelligent of our expand skill by one but their San in team, to regions well with Central awards developed in water notable approximate increased of the expansion improving our infrastructure order parameters buildings, continues NVX expertise NVX infrastructure route care, with entire have their first sectors. health corporate, an This combining was market bridges and selected A NVX billion is award for first team program Now for expertise work management as

architecture for Our wide a the and planning, infrastructure million in landscape services. $XX array East new engineering, of environmental team exceeded sales quarter transportation, for

an Boston. teaming and iconic our projects engineering and of from electrical is facility One the and included team New civil our for of mechanical York-based engineers

in design the government This areas. one Another analytics to Framework, integrated South project great example to electrical, the Hong technology mechanical, in of resort including with level large-scale Korea. development have offering Island entire Dream of international the largest the towers. full specializes cross-selling will Jeju continues energy clients Road luxury the a on which the contract In is interesting tallest won Hong with for to in improve public which service project several consisting Project, is one Kong, and ASP our NVX's residential Kong, by XXX ability win leveraging and contracts be Also company. [indiscernible] protection, to Tower landmark island. we and which fire and provide a projects, team, and

person once be which We are on multipurpose our stadium services Hong also largest a will XX,XXX Kong, sports providing completed. their technology in

Chief XXXX Financial of security Another awarded luxury for the detailed were Rama, of call would Michael he for over and our to outlook Michael? in quarter for service more is Officer, Macau. an financial a year Grand overview XXXX. our the turn and facet the first Lisboa of I provide the results we the full surveillance will system Palace technology for now the of like to

Michael Rama

Alex, good Thank and everyone. you, afternoon,

million, million first margin been revenues for increase would XX% million million growth of first for XX% revenues of of I quarter quarter I XX% in the to the XXXX. Net XXXX. an the or $XX.X in of and was revenues of of XXXX. compared margin compared or for will XXXX increase first review acquisition the first gross first the gross million year. an quarter first to company’s to First first net the first the an XXXX of of first $XX.X the of the in margin increase quarter XXXX. excluding full in $X.X Net were of XX% was $XX.X the provide first quarter of the Organic was a quarter XXXX. for will XXXX CHI quarter last XX% of XXXX of $XX.X XXXX XX% XXXX first $X.X quarter have of compared quarter X%. net QX XX% XXXX $XXX.X quarter EBITDA of of gross year was of income million in to of in quarter $XX.X margin for revenues of reflects Gross the gross from compared for quarter then net XX% our the million million in recent the of Gross revenues were outlook for revenues increase CHI, quarter XXXX results XX%. first

was First $X.XX, in XXXX shares first earnings from an XXXX. quarter $X.XX of per increase of quarter adjusted XX%

per an XXXX. share quarter first XX% was $X.XX increase in of $X.XX, from First GAAP XXXX the quarter of earnings

offering the adjusted per million reflects of first share shares in issuance of in for XXXX secondary March weighted of shares The reflects first Our shares of to quarter compared stock XXXX. weighted XX, three million shares increase XXXX August from of in outstanding the quarter the outstanding XXXX. earnings shares in XX.X XX.X our outstanding ended shares average X.XX weighted months million common the the GAAP

we XX, to and million decreased $XX.X December million XXXX $XX of from of first $XXX were of XX, in compared quarter equivalents As compared to $XX $XX.X in or cash cash increase $XXX XXXX, reported operating debt XXXX. $XX million, XX% quarter XXXX. XXXX. to million of to Cash XXXX from the Long-term flow for activities as were million backlog as $XX.X for quarter, quarter compared XX, XXXX. of of the an XX, million first million of XX% the the At of flows of first million million $X.X cash March March March our from

Now for moving raising and our outlook guidance earnings on per XXXX we share. revenues to for are our XXXX

We $XXX from from million. $XXX increase of expect range XX% represents million of which XX% to net range $XXX represents XXXX Net XX% revenues $XXX an to increase revenues XXXX is which from of an to from gross million. to of to $XXX XX% to full $XXX revenues million million, year million, revenues expected XXXX

This share. per $X.XX the per We now remainder This expect from to anticipated earnings prepared earnings $X.XX full expect an share XXXX. XX will open for of We remarks, to and call will like $X.XX per our excludes adjusted to per for questions. share, to XXXX XX% increase range your year of range we'd share GAAP full the XXXX guidance completes acquisitions year $X.XX from up

Operator

Instructions] first comes Please Street sir. Thank from ahead. [Operator you, Brown Our Rob go Lake from question Capital.

Rob Brown

on Congratulations a afternoon. quarter. Good strong

Dickerson Wright

Rob. Hi,

Rob Brown

a You together? talked of strong. that us Can acquisition on at focus of bit how give pipeline area or areas the an sense about you're the a is looking pipeline being you little – coming and

Dickerson Wright

Great. Yes.

marketplace. in think obviously it's I the becoming and more more we're more known as apparent

those to opportunities look group, to I we're encouraged transportation pipeline, environmental group. that us. encouraged Right our at very about in now, focusing very high that technology We say. opportunities strengthen opportunities services to adds we have will in we that continue our that And acquisitions bar have really look by we group of offices our high existing we're opportunities for our pipeline, many our on should and coming vertical entree we're so

be year deals you to the year. look right So to would are all for active. don't acquisitions And but made continues. five see before, more I as I've this active we at us make anything I we normally Rob, times. very now. than us want making I too that going And XX right have are on to we And to said less and last now, very as specific XX we year, don't

Rob Brown

a Celtic you years great. multimillion. us what decent the that is? And bit DoD talk How fairly of about a a little many Okay, can award, then give you acquisition But contract a size, having can long, is? that how sense

Dickerson Wright

that and enhances all But I five corrected. that our as like – initiative It's a energy so about like in years I'll It's And long to for DoD efficiency too the they'd Celtic, five Celtic. I America. in for think to contract was been a in contract. this energy DoD I've North in revenue. I the initiative or revenue we're don't $XXX,XXX acquisition an boss from – in because anticipating energy time existing for They be say be efficiency the years. is Celtic, thinking Celtic. fight that is really and are with forward a five-year it's year it contract – called But and buildings

Rob Brown

And great. on question then Okay last the visibility. just

a the market the of rest had the But year? here. of trending? do position visibility see characterize you backlogs that, with kind your how how Your you for would And good

Dickerson Wright

strong. Well to our I be think backlog continues

CHI natural Our backlog conversion XX now gas know acquisition you we've going an is months – to which as company I'd of we're say a made from LNG an is into LNG. but

their little recorded, a backlog, but so it's more maybe lumpy. also differently, And

see of the revenue. about X%. to is remain And still trend. the internally And I see think that we budgeted Backlog running XX% I So between I is to continuing. think XX% our growth organically that going still will to same same X%

Rob Brown

Okay, thank you. I will over. turn it

Operator

you. Thank

comes Partners. Martin Capital from question ahead. Jeff Roth go next Please from Our

Jeff Martin

Thanks good afternoon guys.

Dickerson Wright

Jeff. Hi,

Jeff Martin

– you entails you kind revenue And and is initiative? what in My that? Could on of level it the to goals I'm some tied give just Wedman's a it? us perspective you initiative. Kevin elaborate run exactly is lead to synopsis of appointment announced your if the this lead get energy initiative understanding tied you high XXXX to that what curious

Dickerson Wright

our energy The energy of aggregator can work initiative look Yes. is national on basis. we clients a that a at

to and being that side, on the of on utilities the energy it's that you goal others on doing done and of to – the is initiatives Wedman visibility is So we're to each main to higher work California is one mentioned Kevin and in green lead what offices our initiative focused energy Wedman in initiative. give Kevin very for and that

I Jeff, look it at two So ways.

of generation I and We and narrative but and or I I from it, and want utilities California. forward in and be and for as existing or it's size efficiency thinking The grown opportunities to power are for to be for is efficiency It on and years, looks on remarks, our of it's have that and generation that transmission million. at utilities goal supported have are it's so focusing really by year said electrical goal projects far it's I we building energy think don't the our some been organically that five this think XX%. initiatives XXXX $XXX of and for the our grow base. power period the five-year distribution, around gas our promoted anticipating they've side is, to energy by my energy comes to that The capitalizing is

So it's been successful. quite

Jeff Martin

rate is on that And what kind run of today?

Dickerson Wright

question Actually, what I’m was the sorry.

Jeff Martin

understanding rate ago? of about group today? quarters What $XX million running million is or $XX a revenue run that My was couple

Dickerson Wright

that anticipating an initiative. think about million year of $XX a has $XX we're million capacity, On under or this hopefully just Yes. But XX%. in $XXX organic existing, that I million growth

little a bit they're of ahead schedule. So

Jeff Martin

then your thoughts target in there get curious goal? goal to XXXX. set talked while, Have is the this $XXX about Is million still of to is Just end a you haven't And rate your extended timeline goal the an further but run Is you that there? what by updated goal? a are? – that

Dickerson Wright

Well and the know we annual $XXX don't I are Yes. the by certainly capabilities, well and think million but I I pace million that lot meeting of the the June look way that prophetic don't But I our what we generated a see have we on conservative XXXX. is have our ahead by from XXXX goal $XXX and in think coming is now. right a things of managers. up very would

Jeff Martin

year-over-year. It you the if number And Okay. based talk could consistent salaries about looks was talk but cost pretty quarter on there's I wages percentages that you utilization then I know probably about cloud of in in that that utilization was revenue? the just been the percentages curious could quarter? some up, acquisitions direct and and like

Dickerson Wright

to this Jeff. on Alex Mike refer and I’ll

Michael Rama

in to or so have start as project, QX, the particular some in while fully first utilization delay we're by able to have we with weather, to impacted to areas. had it not employees on issues isolated quarter some this be certainly the slightly we construction apply a may So delay tends only weather issues we weather a those had project, we that delays, however,

we relatively budgeted our to So a running high at compared utilization were objectives.

Jeff Martin

helpful. Great, guys. thanks that’s Okay

Dickerson Wright

Jeff. Thanks

Operator

Thank Instructions] ahead. Springer Research. Our go question from Singular you. Please [Operator comes next from Lisa

Lisa Springer

Good Thank you. afternoon.

Dickerson Wright

Hi, Lisa.

Lisa Springer

the mentioned cross-selling ask should – I your we you of comments the your balance improve How mix you about target is to that revenues going think came that allow at to $X.X $X.X you year? million. wanted Do versus million about in of expect cross-selling to in the for sequentially?

Dickerson Wright

follow flow. the generally it will Well,

more. quarters of flat, – historically, have week. they a then summer weekly is There and stronger second quarters, between stronger. quarters Historically, are this $XXX,XXX more the goal coming be little offices are per third And cross-selling our the year tend Our revenue-based. but maybe that financial up, to the a bit

was to year. number that you year-to-date I that by So gave in ahead the for the goal That be of way cross-selling. seem the a they

Lisa Springer

Okay.

Dickerson Wright

So the revenue that – – in quarters. track I certainly cross-selling track our the – coming will will that as will think will that grows track

Lisa Springer

you. Okay. Great thank

Operator

you. NVX our this Global Inc.’s I to now At Q&A over time turn Wright, like Please Chairman Thank Dickerson to further go back for call the This concludes show questions. and remarks. ahead. I Session. no would CEO closing MR.

Dickerson Wright

for quarter listening for XXXX. once call a rest NVX I'm interest to encouraged the very good encouraged. had in for We Well, very also the you, outlook very and again, thank and the I'm everybody, today. of your

the want consultant want on we we to that and type valued be a to do. company are lose value focus that think what our I add not we We of to clients.

report work is notice there between don't we highly when do we our and We installation that So net do work equipment that not as is that much revenues, don't want at all. We be approached please to contracting total intensive. consultant. difference do true do our a any not because tremendous revenue. We revenues And a work. is

added that understand – important, product important really question driven over that see the our our is think us that to very clients. are direct So of valued are growth of and for business, X,XXX when results see we be you our when business repeat results, because a a things we our people you And consultant important is we consultant. that value been our on to the we to very because gross our it's it's profit utilization, our we become people client our truly our XX% had that doing, I you valued see looking and and amount by that has our that want over is tremendous to

it's have in knowledge, about verticals focused really deep. stay We have flat really narrow very we we competitive people, terms, focused. a strongly have vertical, but NVX to because not We those and at feel advantage with stay a engineering with with great people we our like say clients. we a but tranche will only that organization, of five I'd civil our

thank, to everyone, want listening I today. So for

your are we about continued We the and appreciate move balance as encouraged of we XXXX forward. support

questions and you listening thank, And comments. want for to your thank today everyone, and I quarter. So you next to for we'll in talk

Operator

for gentlemen, and the attending conference. ladies today's you, concludes program. This Thank

disconnect. You may all Good day.

NV5 Global (NVEE) 9 May 192019 Q1 Earnings call transcript