NVEE - Earnings call transcript Q4 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon everyone and thank you for participating in today's conference call to discuss NV5's financial results for the fourth quarter and full year ended January 2, 2021.

Joining us today are Dickerson Wright, Chairman and CEO of NV5, Edward Codispoti, CFO of NV5 and Richard Tong, Executive Vice President and General Counsel of NV5. I would now like to turn the call over to Richard Tong.

Richard Tong

Thank you operator. Welcome everyone to NV5's fourth quarter and full year 2020 earnings call. speakers connected distancing, different social with today from are locations. Consistent

regarding you answer that for thank any questions. your we So when patience latency encounter we may

on Before expectations business and everyone performance. These to forward-looking we on about financial would management's based discussions current included to file statements future today's are in materially from differ risks results actual to and contain SEC. and remind company's the subject the slides are statements proceed, I with uncertainties. in are cause our presentation Factors and reports that that could like today's those

In financial Regulation measures in of financial this included call, that non-GAAP as all Securities full the is amended. as certain are Exchange XXXX, fourth and XXXX discussed. available measures this non-GAAP unless at on fourth included promulgated under in The measures per two provides G this defined A XXXX. adjusted non-GAAP additional NVX stated, has references supplement presentation, share, and references the earnings today's against are and will website to margin. NVX's comparisons year to release and of During EBITDA be GAAP financial NVX and into in insight earnings presentation measures full made as made EBITDA non-GAAP adjusted to measures provide the financial year the adjusted note reconciliation GAAP XXXX Please between they quarter company's being results. financial quarter being XXXX comparisons are any Act to www.nvX.com. otherwise

not substitute not and have tools should considered be in for in as or are analytical accordance measures non-GAAP a limitations GAAP. However, isolation and

website. call to provided which release of company's its may ability of accompanying are link define Investors the compare investors on available used of A peer also the in presentation In addition, companies. NVX by today's our this of the the replay limits webcast section non-GAAP companies via measures and to non-GAAP differently, measures those other news

the of for Codispoti, call fourth begin the comments call please then Wright, open questions. and Dickerson a CEO to will Edward your Dickerson XXXX Financial quarter with will go review the Chief Wright Chairman for turning the we before over before We provide closing NVX, Dickerson, Officer, from ahead. results. comments call of

Dickerson Wright

everyone Richard and full NVX's us thank for you Thank you year to quarter joining conference and fourth call. XXXX

and pleased are full quarter year We announce deck for We call. our fourth for this released XXXX. our results overall results the to positive illustrating for a the

generated engineering million end the our the times more design that X.X X.X of and times million of the of XXXX, gross $XX corporate with five a debt consider Mediatech, the $XX So growth XX% for firm, This I and available in XX% We growth gross will reduction to in We in NVX XX%. adjusted adjusted has and on review. the debt at by in We net which flow cash cash EBITDA generating a readily $XX through leverage throughout resulted on and when in XXXX. is start strong is revenues, in versus between reduced year ranged you international an in recently performance with acquired cash increase margin. slide flows is XXXX. improved XX% position has we by million XXXX to delivered measure the cash at employees, percentage basis, in XXXX. impressive year compared operations strong XXXX use. a On This revenues flows end cash EBITDA daily a the a operating from technology XXX%

impact service due COVID The insulated provider has We unusual economy. an all the noteworthy also unanticipated business. being NVX on to pandemic. XXXX been a the had of is impact the limited aspects conditions our growth in considering affected essential successful EBITDA. has This of which market has the

have scalable that We costs. fixed limits managed always a business

Our Employees our remote entire COVID year. Control and success followed is the employees locations. health and this the by the reason for in organization's for the our Prevention organization ability as strictly recommended across key adapt Disease by and Centers to led safety practices

continue also We our services our delivering grew to remotely. virtual tools to clients

may me of say greatest You have is environment that the challenge maintaining clients and the communication with heard COVID prospects.

creative relationships. foster Our these developed employees to approaches

environment offices. sharing We also to across used our virtual resource increase

the we $XXX gross of of QX, result compared in XX% slide XXXX, On resulting quarter the forecast which highlights the delivered in we six, to a in of of the the was coordinated projected quarter. a As million EBITDA is year fourth increase full some million of fourth revenues, our over a I In effort, $XXX increase at XXXX. describe maintained which will beginning adjusted XXXX. this XX% of

is XXXX. XXXX days think it point out important billable the that quarter of had also I fourth less to QX than two

a compared utility profitability operations from of grid. We growth in increased adjusted fourth electrical we XX% supporting vertical, also drive and a increase flows services in in with to our XX% investments cash QX EBITDA XX% aging adjusted our XXXX. in the quarter In continued increase EPS, to operations, XXXX continue the improving

fire Our services domestic continued its vertical to performance. mitigation services. the a continues with utility supported good support NVX utilities and business power delivery strong Geospatial reliable LNG quarter. and services

COVID. continue our significantly this for XXXX see had business We infrastructure estate by business. this our to West. vertical, real we business, in But improvement which are see quarter is strong a was service, pleased of in part in environmental In impacted we a rebound to the transaction four. performance year-over-year quite Our

for and XXXX. funding, due increased are New business the York has two City positive which entering into is North our Department resuming Carolina delayed March infrastructure developments contracts COVID that were since Transportation of to

into with momentum. good heading XXXX are We

and for fund efficiency sustainable the energy ahead a Our new We year strong see and increase we further going is improvement reduce present that We expected sustainable. and into infrastructure to the opportunities opportunities clean backlog acquisitions believe strong our to is margin cash in with position administration maintain investments energy, debt. NVX.

positively to business. of the the expect We reopening impact our economy

a Department increased has benefits seeing economy the City funding. of the has New already reopening engineering Transportation of where work York design of in North are restarted and We Carolina

acquisition we pipeline contracts a our XX Please some seven acquisition the of turn secured have cross-selling look review XXXX. key various stages. to pursuits of Finally, at results slide far at healthy over XXXX and for have a we with a so in

offices in serves performing benefits a are finding Our of our cross-selling XX% year corporate in way. clients We delivering acquisitions. by twofold NVX continually had cross-selling our has strengthen XXXX. integration to excellent company for value profitability is cross-sells, but NVX's within in add more becoming for our part the almost it total to our It a to our the the an Cross-selling employees increases organization. new ways XX% our of and client's and than million cross-sell the was in work and higher XXXX for of and $XX target year culture ahead embedded become also which

our our We XXXX, geospatial see growth continued particularly business. in expect to core cross-selling business in program and between the

a management utility management a governments. and of look contract in million and a selected materials the the group a we transportation management contract was service awarded offerings services in awarded year in with civil our California, We contract largest secured contract strong we is to testing multiyear we our by state sole-source and to XXXX, a department and million The validating inspection support for XXXX. $XXX We roads. work. grid water the part one utilities. $XX program this the geospatial NVX have six utility for to by California's modernization of and million award NVX prominent is with also the contract benefit a and state's utility support all includes the were power provide geotechnical backlog engineering West for vegetation In were utility geospatial was from $X a comprehensive some As $X single a a began of selected and to improved municipal award significant design asset and the reliability Southeast verticals, safety. along with service toll transportation infrastructure for vegetation This million of improvements our services East by of client. engineering, wins

Our municipal some acquisition. I will about applications. details with building slide new eight, to strengthened client associated of turn base permit the now latest has by provide you market where and been our residential housing resurgence Please

provide deliver higher that strategy on of our to acquisition focused is technologies our barriers entry. and significant strengthening to value our greater have clients verticals Our margin and and capabilities expanding

Let's discuss two of our acquisitions. recent

is technology markets. required requires Industrial an services data International more of large building would First, delivers Associates of data Design commissioning than electricity volume to facilities facility. specialized, and use IDA center acquisition. for or higher and high-growth, typical of technology-based margin be the a commissioning these The a example high-margin a

sensors efficiency using building that also property the a service a basis. placed also in services problem. IDA that to efficiency addition, use of offers services alert In owner energy on real-time monitor NVX's energy delivered subscription complement facility subscription-based or existing energy manager This are the throughout

most materials TerraTech a in XXXX acquisition North CALYX. Carolina, the South private in infrastructure We the engineering, the presence company geotechnical with expanded of in our environmental and recent acquisition and sectors in Carolina consulting testing Our Engineers, is public Southeast and environmental serving Georgia. markets

management good also their and in supporting inspection TerraTech to We and anticipate are team to looking other North our years with TerraTech's make work quality clients. region verticals fit for And science to projects the many design market. the health We our has strengthen environmental infrastructure of our working to them for and and strengthen Northeast infrastructure consulting in a we testing, strong Department long-standing their been relationships been our offering of and capabilities. Southeast and add the operation. TerraTech existing to complement capabilities NVX the Transportation our Carolina have it NVX client organization. expand the on excited

actively are pipeline M&A strong. We the additional XXXX for is and pursuing acquisitions

additional Our are and of acquisitions we year currently have that number intention pursuing. to targets is complete a we this

presents well-established fields local infrastructure for and environmental clients federal growing nine. been opportunity proactive targeting growing infrastructure slide portfolio environmental service energy a gases, focus and managers, investments sustainability years. orders importance grows. with clean future. last has protection to of achieve on has NVX infrastructure, worked the been has new this state level. the of program federal, XXX XX for help to And sustainable Sustainable members as clean sustainable lands. Infrastructure a inspectors number executive been energy expect an requirement which the years. go for with and sustainable Energy minimizing and many the and years. on Harvard additional NVX, Let's a efficiency we upcoming designers, infrastructure and University's that executive field forefront serving in to water Program a at orders greenhouse The continue are concerns on in public demonstrate of as our impact protection and administration over conservation as grow to has will consultants that employees for of new These NVX permitting has projects improving and resiliency and board the Sustainable This see

helps both monitoring-based growing billion energy efficiency are inefficiencies utility in private Our efficiency and currently commissioning basis. clients these and energy public through country across service subscription on rebates to $X.X a real-time identify fund in There sector energy the programs. incentives

As the to energy migrate will to sources, clean country continue to reliability continues important. be

a of in the of drivers delivery As delivery power power and expected generation, energy our of and compliance us groups. gas. ago, transmission be Texas couple to reliable and we natural are electrical depend power and on battery of of all storage Renewable delivery weeks reliable electricity saw

our bridge a We LNG as times store also continue like expect to to feed services renewables that grow these. help LNG for utilities and gas to

client support. expect Please federal, resources, on goals. placed nearshore our mapping office forestry, environmental of with rise, focus depend the water investments these has and a push the and and NOAA, geospatial renewables a emphasis technology-based Environmental a protection projects our as each marketplace turn The all green solutions delivery and and sea been of component which To and service sea NVX well the key water energy on state issues coastal examples of see as address and and has administration surveying clients' we towards has completed of sustainable for slide all XX. design, that providing reliable demand positioned commissioning building floodplains, as on systems six resources for bottom and for as the At energy. areas of natural NVX the ongoing sustainability of driven vertical through renewable water to geospatial infrastructure, of each on XX, sustainability current Department and is services. low-impact fields in in sustainable rise. sustainable solutions monitoring-based issues, wetland the slide level such and verticals geospatial delineation you of and generation will our an level support to efficiency of local in resources, a materials of resources. drivers NASA Interior, renewable We market government Many also are and recently some USGS such address to natural

I examples, about performed. overview and go the sake won't would now each but information if have Ed? to I us out the will to Codispoti, please these QX through performance. reach projects we and year XXXX of hand Ed to CFO, time, the For more provide projects some our sustainable full of presentation over like our an of you

Edward Codispoti

you and Thank Dick everyone. good afternoon

XXXX will to would slide I XX, results. and fourth turn If you our full please review year quarter

to million. XX% had see, can this results we increased you quarter, As our revenues as strong $XXX.X gross

year, the in we to our million. pandemic. note the fourth of in had Once way to fiscal year, XXXX XXXX, week business of performed XXXX. For quarter the compared XXXX well fourth less full XX% business extra $XXX.X light two had of calendar an increased Coronavirus in days will I again, the the we versus And due for our full the that revenues quarter model our to works.

EBITDA quarter to year for also XX% XX% growth substantial full million. increased showed $XX.X and fourth adjusted million the as it Our in the $XXX.X to

our to as business basis mix this increased grow fourth expansion to improve EBITDA attribute to higher year-over-year. we Our margin points We we business our as of quarter points our the and adjusted XXX verticals. basis grow margin and margin the as continues year prior it compared XXX scale to

strong for XXXX. $X.XX the at $X.XX increase and a over was XX% came quarter year, Our share, this XX% per per same full the adjusted as also last EPS we in increase a representing over year share quarter

operations, show year cash in as XX% us allowed the the flows million flows increase fourth cash sheet. from a our generated were Full operations These last $XX.X balance Our also over further million, quarter from cash continued strength cash have strong to to of same in a increase XXX% period over $XX we flows year. XXXX. flows strengthen

amount in As of $XX.X throughout ended paying you million can double as we slide year. cash quarter XX, of Moreover, $XX.X we with XXXX. the of This more end than the we the cash. is see on debt the down cash position increased million this of also had while

and at X.X our With future. leverage. XX% XXXX feel we at going down As of XXXX are were XXXX. end we a said, back the of some our net now that bring result, able well the for positioned to is the end net Dickerson to comments. Wright leverage will This X.X closing to about from to it to equivalent a reduction I in excited we turn

Dickerson Wright

of goals. goal an revenue our depend publicly success a million gross XXXX. in you XXXX, growth generating our When rolled At contributor This ambitious worked so Ed. set revenue be as targets our growth $XXX of we in only Thank we revenues. those them to million around turn XXXX. investors. $XXX we $XXX XXXX accountable help greatest were then accountable XX. set to Please meeting on announced we in was to our ongoing We companywide of and held strength exceeded by The NVX's employees. would goal and delivered to is target annual in goal the million that around, our We by slide together deliver them the hold to on management

goal million third million business again target quarter In revenues. billion XXXX end XXXX $X publicly. and grow delivering announced exceeded of our our XXXX, that In in the we announced we we the call, XXXX. gross by another $XXX set of XXXX new meeting, gross annual our goal earnings to in $XXX at by So to target revenues the

recent this in are periods. We margins in our on continue goal believe generated confident our that build deliver the to ability will that have platform's and scalability we upon to higher

to proven business be Our has successful. model

We and continue prepared would for we that our and completes strategic momentum strong will the This and expect to we upon to our questions. remarks now acquisitions your make strengthen to to verticals open service. our high-margin like growth call our deliver organic build expand

Operator

Instructions]. [Operator

Our CJS with Chris Securities. comes first from question Moore

Your line is open.

Chris Moore

Lots Hi. Good of stuff happening. guys. good afternoon

Dickerson Wright

Chris. Hi

Chris Moore

Yes, of just Thank a the how power Is contract there? is in grid for million did it Are am is market obviously it? lot modernization. Hi. little area. scope a trying just with other bit of that to there win you $XXX you. maybe That's differentiator really a the full competitive a I start here? that, players important understand guys really the out better, there? work Or

Dickerson Wright

There always have is a of is a of is of a firms And lot size. competition. there lot this yes, always a there to competitors. of always Chris, seeking Well, lot contract

of our support firm we them. and I think things million. the name And services, estimates utility and they were a $X relationship us We and assigned $X.X me record a one underground million I the long was had work track in have we go-to for they they and their history, work services, a amount was we previously that utility cost them because we this anticipating of initially doing work. to cost got are an but the embedded to do be enlightening can't of with experience was the to were the that small and of lot delivery used for about

natural So the greatly forward think for to we selection to this years. I going work were it's going over contribute work and a our

Chris Moore

there to like in bit understand COVID looks Did process? just where was more a realizing am QSI, little a that it talk are are lot you in It still terrific Did kind a slow Terrific. just QSI? there. that is acquisition. trying where bit? of seems Maybe I like accelerated? with about you it just a the synergies

Dickerson Wright

an Chris. ongoing yes, process, Well, it's

us with now. little been a over a have they year So

We But that full and were doing they is important, doing are and they is them with integration very work with support. they and active really natural and clients cross-selling, in back in office that the could now the work the process which the the us. very to application been the have synergy do

natural engineering For example, that much are been safety doing, transmission a providing our so towers the they they and load can through aerial we relationship in geospatial now of for utilities on work they and they monitoring the in with they West doing are had perspective, were monitoring little support prevent presence from large that and the with the from utilities fire Also a providing support mitigation. is to vegetation it work have that entree perspective. and

we a we lot see we So there. of as are go. opportunities But learning

were now now the the the which introduced of do many things us. market, not to those have their are now reasons, to doing Department was federal them presence. integrating basis. have people government, have also federal has clients and can of and I we from office, warming global that perhaps support an was they that introducing of for able us key We that our utility were difference the been with And versa, our we with to Defense and we really Arlington vice enhance them, market services. municipal the doing that in and to But the markets the they think and their that they entree extent of some everything federal the And we have measure with many them security work to are but work main government introduced doing to they directly various and agencies

cross-selling and very margin further anticipate develop synergy They them. the service will even in with pleased a we So that. we deliver higher are with

Chris Moore

jump line. I helpful. it. back appreciate Very it. in Got will I

Operator

is question Capital Street with from Lake Rob next Our Brown Markets.

open. is line Your

Rob Brown

afternoon. Good

Dickerson Wright

Rob. Hi

Rob Brown

looking estate has business some that? bit. The come earlier talked real how first back transaction I you is QX us in And think but hit give got on, about normalized Could the into on XXXX? further color it how and the in you question is a I it know year it

Dickerson Wright

are our quarter. estate first quarter real that they Those and be of starting in very fourth tends a be see coming core knowing portfolio of of slower. geospatial, to that that to It's usually doing people whether or they business, just historic. because even back now acquisitions business And work. were lot delayed the Well, environment. the in strong have to had a not transaction But been our it NVX

starting little that larger are they So and comes the transactional firm market Clark transactions the work this. but & now has transactional are more residential has & portfolio back, They individual benefited comes to and been as as much real portfolio with Bock Clark, back investment to starting see economy the very reopens from to from that estate whole by our transactions. acquisitions benefiting and starting and we larger Bock see do are see, they

Rob Brown

with backlog you a rate Good. look And the see out the How normalizing does you this growth bit? the you environment year? have as how this growth little Okay. into and do XXXX, organic that organic look year playing

Dickerson Wright

still we to want Well, be conservative.

acquisition We and are still lot X%. do considering, single the growth, firms We you a anticipating at dilemma look digits, the has And We opportunities. between to of that? that somewhere how high X% that measure integrate. to like like organic do with is, everyone

that we a may we company like do one company. business, there don't overall core whole the Sometimes piece portfolio be we of it's acquire think our a and but

piece So sometimes away. goes that

generally to But organic we and be are measure digits. for anticipating we to firms have to year difficult very so in organic we can and it's in growth start growth that we to our this through systems single that had one sales. year same-store the apply think high So measuring still

Rob Brown

a Okay. And job Great. in in nice year. your and number you. year the Thank hitting it turn quarter tough Thanks. I will the over. EBITDA on

Dickerson Wright

you Thank Rob.

Operator

Capital Our with next Jeff from question is Martin ROTH Partners.

open. line Your is

Jeff Martin

It and on solutions. But we going revenue as help little that of remote behind original that's services, today path bit nice billion, That's more the to you billion the get some target the for hitting assumption? I from Dick, know type compliance impressive. mid year. really comment Good single into are then of to monitoring $XXX but organic in strategy a go EBITDA us to probably pursuing revenue. recurring subscription assuming wanted growth M&A, echo goal there, technology XXXX that Thanks. layering is is to And want job $X guys. I in to what embedded afternoon I Rob's come type $X to the digit to appears dive me million the understand, revenue, M&A?

Dickerson Wright

it's Well, but around we that growth acquisitions, as not Yes. constant larger. and assumed for organic growth organic base the gets do X% we

have we the we I think, saying when see just involved, opportunities Jeff, we is this are lot an, more a me how in to be acquisition. selective

our at platforms businesses. pretty technology heard, in traditional listened be those Now still this them. in very are acquisitions as we platforms can for One, phenomenal well-established. look and the selective new can support is think and our opportunities there ways. acquisitions we and in grow two We look can from and we existing But you

And as So the think was that that that. acquisition more organic organic then come $XXX from X% be XX% the million. certainly growth going growth of I because a is balance growth, to of than thing $XXX X% maybe constantly XX% about and will is of XX%, moving to million

grow, in more although cumulatively. mid digits, constant is, it we percentage contribution So growth high to will organic be as maybe single the the

more developed have So in our be little a we really strategic be that platforms. our and now can selective we little we more a could acquisitions,

Jeff Martin

Okay.

Dickerson Wright

coming that see will you And up.

will see the that future. You in

Jeff Martin

Right.

ask And question model That's I Okay. a helpful. here. detail if could

which direct range. costs, mostly of expense normal reimbursed outside other Your revenues sub-consultant, well of the think as it I a were as percentage travel gross as

change model abnormal could comment of whether here? kind how Or just event reconsider that to on you curious I of underlying is we if if has was caused the this of couple this in there of So the some sort period? structure years was things next maybe that an

Dickerson Wright

comment me Yes. Geospatial than have comment. may first and then Ed more higher our core the percentage to business. of specificity Well, let add sub-consultants a

to real So And of the utilization that I and estate think that transactional higher as have a add. stronger, growing as they coming goes tend percentage limit environmental limit those. sub-consultants. is try even and we back and adds to on that that also business, our and because to core disadvantaged actual tends That many the then more requirements. the of so business Whereas have minority absolute can mark-up And amount people of we set requirements up.

So little more business tend Ed, as our somewhat, add? has new would bit the you have higher. mix that like But we you be a sub-consultants maybe have changed to of to some

Edward Codispoti

I of sub-consultants the third would Dick. I in percentage quarter. mean in XX% revenue XX% versus the agree Yes. was with QX,

upward Dick alluded that's So would be business. the real transactional example product mix business that. it to, really ticked but estate as And of just of of the an

So expect significant XXXX but we we shift that within throughout do seen forth expect it back going the and range have not a to change forward.

Jeff Martin

Okay. Great. that. Thanks for

Dickerson Wright

Just to add, business a least many have of the and It disadvantage our use sub-consultant we at XX%. this. has public agencies for consultant

good was think XX%. that was I So that at

see the to efforts kind me is encouraging So progress I company of cross-selling business it shows it really really starting impact revenue. our that our core is making because on have real and overall trying an and to to

Jeff Martin

That's I below I the agree. guys. far for Thanks appreciate it. time industry average.

Operator

Bank Our Feniger of Michael next America. from with is question

line is Your open.

Michael Feniger

question. Hi guys. Thanks for taking my

Dickerson Wright

Michael. Hi

Michael Feniger

job target Nice for hitting XXXX. everybody. Hi original the EBITDA

year, I XXXX? range is for EBITDA this if there a for but And if this, Dickerson, missed what's EPS? for target the Sorry

Dickerson Wright

let answer will question. Yes. that I Ed

think I million. I around, think, I it is our have more have EBITDA than But about seen but target that. $XXX specificity Ed, you moving maybe

Edward Codispoti

Yes.

necessarily but million $XXX guidance range is possible. think We not are that giving

Michael Feniger

Okay.

Sorry. Go ahead.

Dickerson Wright

second sorry. had second your a Michael, am question? you I was question. What

EBITDA. first The question was about

Michael Feniger

EPS Yes. as range Are the comfortable with with consensus? well that you see you the

Dickerson Wright

Yes.

situation we the few quarters I just now to COVID in consensus reluctant said. and we overall guidance until giving the get right we coming But think I guidance said, line just with whole be are out what provide seems I more so for And but as this re yes, not consensus think, the of we clarity. last to are we looks obtainable.

Michael Feniger

were the And versus of quarter, Fair going million, a backlog? Okay. year-over-year think flag organic anything are range. saying we ability was to at there backlog Is five Because to touch on your basis. build weighing flat of on enough. see want high single-digit you you down to, third $XXX a growth is I to the kind that

is backlog flat. Your

backlog trying for am So that moving do early to growth? the I pieces in we to the of XXXX need understand backlog. just the part build of

Dickerson Wright

Michael. That's question, a awards linear. great are The not

think understand, on And pushed the were can that fourth But were geospatial awards. quarter in last, quarter, was government, an impact further contracts of business this this a is backlog flattening of some were that will But the they and half working and pushed not the so aberration with will the the federal in was time many not this that that growth to a waiting the the that deferred something core away the into And in some and a only geospatial the tapering some were over. year. or in you because so were delay much of don't people our are year. then was on really that. we the going later There they be think second We but there was the And in backlog year. contracts moved recover these contracts that contract business.

that latter hope or to expect and with pick up part and quarter forward of in quarter second the the we first geospatial. So the then

backlog was indicated core really any somewhat strong me it's think but and been that and the to geospatial harbinger has business pushed it of the forward delayed. don't I backlog So flatness

Michael Feniger

difficult Ed, I down break but between versus strong is growth, maybe think XX% acquisitions? fourth Fair between us that it's way And or to organic really sometimes know XX% enough. quarter, the growth would the for year, what of full you any help out in

Edward Codispoti

Yes.

as were we the about and acquisitive lines have if and might us a that we that aren't in we in, well absorb integrate and performing talked in we company, there we those them, past any dropped. when specific we bring this acquire them them get XXXX, so For business given

come up Dick And is we a as digits a true is single complex bit figure what growth. of organic business. so for XXXX the with But our targeting high in organic for going to little yes, terms forward are said,

Michael Feniger

it economy footing? does growth. start on you of last XXXX organic single Okay. vaccines actually Do builds And kind as that it out, just off are is better the you then just high Dickerson, throughout DOT question budgets Thank even digit on up in everybody. get rolled year? recovers, Or slow the feel,

Dickerson Wright

historically Michael, mirror. thank of I the mention is in sometimes, and view can rearview the you. things just Well, Okay. best

quarter then sequence. business are usually We core have second third But to stronger be the it weaker. can or quarter natural and the a be first tends slowest business, in fourth can always much engineering the of kind be had strong the and that's quarter, quarters the slightly in

haven't I that. tremendous a seen impact of So amount in

We the are same seeing thing.

how XXXX and since have opens tremendous of hope more a first this it then of we we clients be that see benefit thing, in remotely, as visiting been seen. tend have seeing never seeing any on work not I in mean are we we always infrastructure. growth that. of But them quarter from the know as to too but And with support it to up, continue we this doing I the is we we and related. that that I had We be COVID government can't all be will from certainly, the front answer think long-winded building. of our things we the don't economy much them we And and we can't hurts and really have last slowness then is,

infrastructure things addressed hearing of it's it that that to is benefit help are going has something And can to we that. we be now the that and to be needed something and is be So does.

been XXXX. is have So facing our rather since anticipating facing the infrastructure, but not our wind back a to it's certainly good headwinds we at guidance this than have that

Michael Feniger

Thank you.

Operator

is from Marc Riddick Sidoti. question next Our with

is line Your open.

Marc Riddick

evening. Good Hi.

Dickerson Wright

Hi.

Marc Riddick

in general could have beginning back or general, action because about certainly little a I hear your on But you wondering of at I pipeline maybe commentary last of around least and there a like the out two, touch bit dynamic you be things to significantly to and commentary viewing how might and touch you those the the the up a year to than was and is overall. wanted appreciate opportunities M&A that the I wider chasing it it pricing relative guess available acquisition half things lot enough positive the to a there picked and you have if what seems there was are money commentary out in just past. bit, encouraging maybe certainly, a in in little lens year the maybe

wondering what dynamic feels in bit seen and was if a little might any you different So the like what I it look it's than the you could talk about pricing maybe have past?

Dickerson Wright

our experiencing only being also up. Well, we case, prices have sure. our we But going are in the seen a the traditional what multiple uptick from you tell can see that stock. I and and company, I can in been EBITDA of public has

been more there we natural we partners, But increased, looking that. not for is that so want to us. a valuations we with stock. want our have the have people we of using shareholders, And components as are we have We arbitrage, want

up of initially to multiple I seen, is deals be bit, those the of tend as is to to Or of of up, that that I high in seen And valuations firm to to utilize that want and the our our more increase that's a to we a I private but acquisitions have goes seen very private so the Mark, because stock structuring helps we what in deal yes. have to little price don't But firms experience, go kind bit equity, quite equity tend But prices a that valuations we have our stock. deals what But. use trying yet. the the trade, happens question, we tend and haven't for. not and a we close a have little going us tend done the and then multiple lot haven't they with and to valuation. haven't some acquired market your word maybe seen enter to want

Marc Riddick

of being and about the back on working what potentially see Got circle should be that have should clear you similar goal it's how was I I that guys to have levels And as on you certainly that we you. cross-selling been thinking we successes. was future to the this been the that's And the with was about has achieved. cross-selling to think I quite continue year it's that goal to wondering, good cross-selling Or for something next wondering, the goals? time wanted going into some year? last for

Dickerson Wright

effort insist Well, to But sure that. I see the am are same. we would like the managing the increase goals that We cross-selling people stay that. the

this we $XXX saw an So achievement year. of

office more because and does $XXX net there we organic that expecting revenues sale. records so office pure like year. remember, is probably one million this cross-sell are is as And for growth the another We the is the factor that cross-selling or work there this and in that other is also on

is is But in it's cross-selling, there natural, a as there in So add not measured higher profitability. revenue. net the revenue we only total

Marc Riddick

or technology thing be is, then we And the for thinking maybe Okay. should year me potential for needs the along those Thanks. lines? or CapEx spend how last about spend the any anything

Dickerson Wright

answer Ed dying just here is to question. your

Edward Codispoti

under So our CapEx for XXXX million. $XX was just

similar to We be more entire very XXXX. expect the a organization, CapEx be vertical Out geospatial trends our intensive. it to in little bit of

they XX% up about make number. So of that

over just million be assumption. $XX would So next reasonable year a

Marc Riddick

Much you Thank appreciated. everyone. Okay.

Operator

Instructions]. [Operator

is Our question from next Scott with Emerald Advisers. Blumenthal

open. is line Your

Scott Blumenthal

Good Dick. Ed. afternoon afternoon Good

Dickerson Wright

you. hear to from Good Scott. Hi

Scott Blumenthal

too, hear your to Dick. Nice voice

Dickerson Wright

Thanks

Scott Blumenthal

the question, Michael's a on up ago, following Dick, backlog. questioners on of couple

because think booked shown QX January. call I and awards have to the note they correct? those out not those in would up Am were backlog I it's large did you in important that

Dickerson Wright

Yes. That's right.

you start quarter. those to them, will first will see see in You recorded the

Scott Blumenthal

Okay.

decent see that though those called appear $XXX the pretty potentially out, in was it from should million we reported. number So even a didn't you those boost just

Dickerson Wright

Yes.

Scott. are clarification, Those contract some also Just awards. total

record we a in we period. that, of rolling some to backlog are only going that XX-month the use Now

for years that three believe, five years? was million backlog, $XXX or I So over example,

Edward Codispoti

a million total It's $XXX win.

Dickerson Wright

$XXX the we the would probably $XXX million. a total million $XX full It's million win record not in quarter, of that but

Scott Blumenthal

sales versus as really the transaction kind business. was you and Bock Clark business, & paying Ed. Okay. maybe Can have gauge attention? Great. of for mentioned a helpful. you this the estate us? Or that backlog that that That's transactional I And wasn't real for portion of one's answered already Ed, come from just

Edward Codispoti

Yes.

whole & look probably somewhere Bock for through not backlog to year, range. we backlog the to adequate expect if at & backlog number. the point, know equivalent we million to backlog. in going got Bock And million least in that what to For Clark, is at way we $XX come appears during of But adequate this of some a in into terms have expectations. XXXX at essentially do our It's revenue have more Clark the than It's we we $XX have lot. XX% we be it that, an

Scott Blumenthal

That's really Yes. Okay. --

Dickerson Wright

backlog. Clark Bock XX M&A. mean could I it's are not portfolios XX just, is But burn rate our a on guys. to that's and I churn have add. day they those & And transactional, are just want and I help can't myself. and transactional that they thrilled to window more at unlike they

that. You what's never up you going and pop know can't to anticipate

rest So tends of as their near business. to backlog be core high nowhere our as the

Scott Blumenthal

you a that revenue did noted. on not with and Got us annual give that? it. number. Dick. that Duly Could gauge Thank noticed all TerraTech you I you an IDA disclose

Dickerson Wright

do than to more happy be will that. I

I about million. both are think they $X

Edward Codispoti

around million is IDA so, Yes. give $X take. or or

Dickerson Wright

or this TerraTech million for seen million But is think I closer $X $X.X IDA Ed little historic. is million. the a combined at year. is And so more about and at to was change. a last the $X So have for I $X least million, looking numbers the like over

because to would I of flow like out flowing I bought think still so we those thing have that and noteworthy the right is been Scott, mention, we cash nicely. cash also, reduced we debt

So borrow of neither money either our do or one to to go of those we to needed one acquisitions. those facilities

Scott Blumenthal

that maybe are that's is projects you what out the and on sales or you. an terrific, for level last initiative you might important have you stream, sustainable, being I able be? of I sustainability for of a this give Yes. as as Ed, Dick may, for one, an guess break there for that. your what percentage did question Absolutely, now I the revenue to overall sustainable rate you Could the and notice think And the a you us growth one if idea, better thank stress projects

Edward Codispoti

of Yes. about about business. XX% is sustainability XX% We our think that overall to

I think the that's thumb a good at moment. rule of

Scott Blumenthal

Okay. that could a the rest? than little And it faster would is growing I be? suspect

Dickerson Wright

hold. it's areas, really certain On taking

traditional their opposed business. a to on more reliance as to Our lot really that defense see geospatial is starting

And have or a they big, power are an utilities and but aging and the the where even much push a ocean snowcap, where bigger on been, push that, is so grid. have with fabrication the things solar energy work seen starting forms push we farms like more really a sea water they to seeing to is for of erosion grid things on alternate constantly, solar seawater, power that. inspection real we even sustainability. been wind are shop support and on their do land and grid measure have towards snowcap a utilities, The and with we means erosion world they the in sustainable the And like

company So take we of our to the business this. advantage in want

Scott Blumenthal

Sure.

Thank Okay. Thanks for taking you. That's helpful. really my question.

Dickerson Wright

Thanks Scott.

Edward Codispoti

Scott. Thanks

Operator

this time, this to question-and-answer over would closing call remarks. turn I our Mr. back concludes like for Wright the At session. now to any

Dickerson Wright

to our Well, thank results. listening for everyone you

our I can very be more NVX way our want or growing ones are want tell sit our to to on to hone year that want we We our COVID we of the in we sustainability the clean air, to the we ends had protect employees this want can't can and clean continue to that we all things a the overall environment. hopefully we see marketplace whether to you hands all of for that to vibrant, anyone, be We and any and and environment I protect results we have we our really and after of are we XXXX. we get proud we the But just part adapt what water And company. and even services this are from all, can.

what they are improve want that those in our technology people this. to though, to we forefront help and really be engineers doing are doing. to is going key now thank doing the and of for this the Our are coming, things Where work I technical the we is and are on people,

more will in our see really technology. company to our Our that hope positioning coming acquisitions the in future strengthen acquisitions

is will to You the recently in the released geospatial really and to data going that that help coming see is software we and this clients software our understand package them. myriad that package of help and had to a analytics

what we the though package So of growing, slow to anticipate services software that. more me. our applications insight I delivery and and hope we to I in hear particularly of in look these $X buildup And see can you losing. am at this me, geospatial systems, add software but that and Excuse will you is software that improve growing. a anticipating more package and $X it's will to are we analytics. million in our million still

to like everyone want thank to order. our would company. thank in I So our I investors believing this for in

want mean, want think services how deliver embedded that? well company measurable. are clients, we I are of to this. really environment with why measure I this. support are and that we we to measure that say XXXX, our but We you, and by to by we to deliver we We and and are want say, that's do doing measure that services we profitability. we we we the better going billion get We measure doing do our $X growth that having watch forefront we that. that And announce help want because have, want us. well. you are a we to to investors, growth. in doing. We that our are as to you by us our by said And And We to doing that when how the we see partners measure our wants be the and technology always enhance truly at the can

strong for past and will and in us. as we always of able front of the future. are go this be to year. the will adapt situations We to situation get us COVID all are we about look good think will So very hopefully, And positioned a XXXX in for that we our lives us is,

look and to continue want company I having thank want to investors And we we at all will growing So a I thank and your NVX. support, you. thank good want I to employees to with forward. our our

year, this more. grow We are about XXXX, even excited to very

much listening. So for thank thanks you very and

Operator

may for disconnect. Ladies you today's this your and conference Thank call. concludes gentlemen, participation now and you

NV5 Global (NVEE) 3 Mar 212020 Q4 Earnings call transcript