NV5 Global (NVEE) 10 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Richard Tong	EVP and General Counsel
Dickerson Wright	Chairman and CEO
Edward Codispoti	CFO
Alex Hockman	President and COO
Mark Abatto	President and COO, NV5 Geospatial
Chris Moore	CJS Securities
Rob Brown	Lake Street Capital Markets
Michael Feniger	Bank of America
Lisa Springer	Singular Research
Andy Wittmann	Baird
Marc Riddick	Sidoti

Call transcript

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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss NV5's Financial Results for the Third Quarter of 2021.

Joining us today are Dickerson Wright, Chairman and CEO of NV5; Edward Codispoti, CFO of NV5; Alex Hockman, President and COO of NV5; Mark Abatto, President and COO of NV5 Geospatial; 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 third quarter 2021 earnings call.

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

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

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

replay Investors provided required via of also as in statements accompanying be forward-looking link the news webcast the to available All other date hereof addition, company's section companies. the measures non-GAAP compare obligation of this A to investors are release today's presentation limits companies assumes by to the its no NVX information the website. of peer company available such law. In will may except those on of update ability define which call non-GAAP based the on differently, and the company to used on and measures statements by

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

Dickerson Wright

Thank joining the conference call. presentation for XXXX deck. of you third NVX's to Quarter everyone us you, you, thank Richard, Many QX and have

So and an to were in I overview to X will be it our revenues presentation in our Gross adjusted Please referring $XX performance of quarter NVX's will EBITDA we million $XXX today. highest-to-date. three. million provide of of turn where Slide

better and can margins We we awards. date versus to also Mergers high-growth sectors. very on resurgence resulted had $X.XX our strong margins at expand on NVX and Therefore, geospatial of also continue a and the last industry of year. to The in high. adjusted backlog share focus is record high-margin, model earnings per sustainable leading acquisition contract business focus

We potential with in efficiency we'll opportunities We growing. due presentation. strengthened and three have acquisition which our energy quarter in acquisition of more diligence, is speak the on later decarbonization multiple in and and Sage detail opportunities to our of position the pipeline

X. Slide to let's So turn now

goals can of all launch focus sustainable our NVX reach see clients our socially the and ESG help NVX verticals. future. a of will their for You of be ESG to Solutions responsible a

on President programs, three. service managing provide of Slide Sage update clean supported and quarter and will X, growth the Sage Consulting. give acquisition on on Alex our our $X influence organic Energy X, in our infrastructure a history has will service an energy a billion to let's energy Now complements our service efficiency as over and well On been turn NVX clean Slide we verticals has as energy of recent have Renewable of where vertical. verticals historic projects. Sage more COO, our positive offering, for detail existing Hockman

Alex Hockman

in in and you, the services The business period performance quarters strong utility our power vertical XXXX first XX% afternoon three business its continues growth last growth XXXX. delivery of same growth versus in and in Thank LNG impressive everyone. Utility the with to core in continues Dickerson, our margins deliver business good XX% year.

opportunities and entering has continue continues of for backlog the are Environmental will group Department lines design was this In their with reliability. this awarded Health & North see backlog opportunities drive Consulting to and the support been have to momentum engineering investing of double-digit pipeline continue integrating well and gain to as and quarters of group. indicate as The NVX industrial growth strength in expert our we also sustainable geotechnical our by of million The evaluation budgets An One three claims the business sector of business. performed East infrastructure a infrastructure We underground and risk PDS. and growth fire business, QX Carolina Inspection opportunities are strength our projects Testing driver utilities our Transportation public Forensics roadway the and and our of growing. development mitigate both western drive of pipeline inspection of to $X healthy growth example along provides is Sciences QX we a utility seen the contract to increase the our and continue in power to to through insurance significant service services These well acquisition part testing we which as business. improvements vertical. in are businesses the projects the first West witness state. have as infrastructure our in

as our greatest proportion it has the program to by QX vertical Our real Domestically, the were most clients, pandemic slowest another the the recover. with record the delivered private of to estate Transaction impacted XXX% and NVX Services and sector management services been growing quarter, buildings compared XXXX.

the to However, East. business and and Middle in Asia we are technology we of have this signs Internationally, MEP business businesses rebound recovery optimistic MEP already that has begun rebounded our across our in design will and XXXX. see

three have strong XX% we Our the year's efficiency pipeline international and have first businesses these and momentum. in our businesses build on grown energy last to quarters year-to-date compared

fourth strong benefits well and results. We of pipeline As strong future is XXXX, entered support weather the sale and XXXX there enter a drive ever, margin of for opportunities We we sustainable we growth. our that believe improvement. quarter utilization our the quarter our backlog final with to cooperating, in largest of continued positioned are increased can

businesses the utility, an funded will Our are sector positioned funded. that infrastructure benefit well transportation, investments when that bill infrastructure, in the is increased largely be and support public broadband public from water ultimately to

turn it I'll to Now, Dickerson. back over

Dickerson Wright

Thanks, Alex.

geospatial update President where now to for Let's X and will on NVX three. of activity quarter Slide our Abatto, Mark Geospatial CEO provide go an

Mark Abatto

the over commenced services the Dickerson. bookings pipeline our our project year-to-date. driven of three past sector, drivers high commercial procurement the we what impacting that growth timing experience and said, awards in year of project key have and continues sector to quarter grown commercial grown the Government The that Thank demand And final XX% however, in That revenue pleased quarter result, see deals full I'm projects UAV demand report delays their private a you, start. expect as to in single-digit. core have quarter quarters and through XX% mid to the water asset to advanced and contracting to phase whether or growth management appear resource of environmental reached space, we several services commercial survey coastal it'd resilient, geospatial and have we the quarter role for critical three and because the management. sector market, and be three accelerating two here or in year-to-date. play our be for across revenue natural the infrastructure XX% call in

business renewal that contracting million September we're although secured XX% Importantly, experienced portfolio, indicate that as activity vehicles, IDIQ with volume multiple right Across long-term million new in into year-over-year. Surveys project accelerating we hand We the side, encouraged under US place. contract awards already. have Geological are our announced proposal $X growing the like highly delays, falling is and award on in deal $XXX the we government

we're our legislation. term, recently in quarter grown backlog that are capabilities market The and opportunities California heading But team. spending I'll point wind Spatial about backlog. change And resume transportation, that things Quantum that, over signals short are expected are available the to that like other to aimed opportunity the expand final natural to initiate and environmental at poised next quarter. resilience. water, four environmental mitigation without focused, the looking at the NVX where our let growth offshore to growth acquired intermediate of or to with the over our legacy core in offerings the energy all several geo-dynamic and that include and incremental the And airport, infrastructure the excited climate turn prior business aligns to states years Florida, into with the to combine we the has The programs or wildfire XX% we resources, over Wright and over make Dickerson climate talk the these with and infrastructure back are bill growth us thesis. With spaces, is further me other enter

Dickerson Wright

Thank Mark. you,

would our of the an like same future we I increase which on also underscore backlog, Slide period health XX, our to year. represented as see of record You'll business last in the XX% and opportunities grow. margin our demonstrates Cross-Selling XX. offices efforts, not to wins for three but creates does of key our mention it all quarter create cross-selling Slide also that's for on just improvement, XXX and over

cross-selling. meet goal of to We are our well plan million in on $XX.X full-year

now of our our representative are Chief Ed? over Geospatial's various NVX positive of strong an growth. throughout we provide will wins of XXXX, Ed Officer network. our all I our recent performance continue to hand services to key provided so growth QX NVX Codispoti indicates presentation overview specific future recent wins for for results. Our anticipated XXXX an the outlook the Financial with

Edward Codispoti

and Dickerson, good afternoon, you, Thank everyone.

please XX, for turn quarter XXXX. third would the review If I'll you Slide our of to results

of a I mention As accounting last last revenue as by record to the achieved in quarter. quarter quarter versus despite year. having of gross third of this XX compared increased third Dickerson due to gross growth And this we was one period, X% XX that mentioned, X% revenues the year's had quarter Therefore, revenues our less weeks cycle our weeks third during year. included the week will

net EBITDA high-margin from of time, XXX businesses, leveraging a on revenues, XX.X% business while expansion our growth percentage the look demonstrates we to of expansion. This as our margin that margin continue expanded margins focused revenues XX.X% scale employees last a last basis XXX margins million, Our $XX.X point year. record year. third quarter. Adjusted And over of compared year's a of EBITDA increase to than was adjusted last XX.X% XX% a increased expansion. income XX% a This $XX.X is we terms greater same gross enterprise. our model, was our across the to by XX.X% year, generated point if last at adjusted at to in execute million EBITDA margin our And basis the

also compared Our were adjusted to $X.XX per generated increase. share $X.XX last earnings per per share XX% share as strong, an we year,

help our quarter earlier, in Alex had delivery in to and that in federal several this real strong experience As our segment mentioned with to business of drive power estate transaction particular, Geospatial growth, delays contracts. services this increased we respect our XX%. results particular continued increased XXX% areas

However, in were levels. this profitability to revenues this to how did EBITDA as its pre-pandemic quarter segment, quarter same increase in X.X% compare an see down year. results although very helpful the XX% see It's we also to when by last compared our increased

If you to you also strong that had XX, we can very results. third compared quarter see turn Slide to XXXX

XX%. increased revenues Our

Group EBITDA cash doubled nearly operations XXX%. it XXX% income share adjusted flows XX%. our by net Adjusted from XX% by as earnings and by more Our a our grew than doubled per increased as by grew and

year Slide times which balance end brought our continues $XXX time XX. had of the net XX% We strong. over an in to last year, sheet to We quarter, year. the our X.X down was times that from last this X.X Turning million We cash a increase see XX% as leverage reduction. the of look same to

Dickerson? decreased quarter to with As combined $X.X also With growth. pricing, said, further million believe M&A our sheet, a to increase back to well in We expense strong Dickerson the realize from interest rate for strategy, expense XX% flows some were our of for interest we strength and that position as to in Wright us of now this $X.X million. turn a balance cash our comments. debt our result and continues closing it I'll that able decrease

Dickerson Wright

Ed. Thanks,

Let's turn to XX. Slide

questions. open technology set and and achieve This a on goal scale and on your of XXXX for this to by margin emphasis for completes segments, we'd revenue $X M&A in our high-growth to have billion call We we high focusing growth synergy like will goal the and increase remarks. prepared now, and And profitability. continued

Operator

question first Our is Securities. Instructions] from Chris [Operator Moore CJS with

line open. Your is

Chris Moore

changing? after the to on or more the just guidance. side, X.XX% the EPS that? QX looking was Maybe that towards just going we end that are - is is revenue on that higher the see where it I of bias X.XX% adjusted a at Is how

Dickerson Wright

question, for thanks Chris. Well, the

some four Our work fourth can that. a you quarter lose going and our day, in if service a - half And because we of be. we tell is be talk could be years rather be, may about work engineering because winter good we Most in we'd conservative you we can lost the us and glass work I our to ago may full, days. don't the of is how is two of - and revenue when know field. days how usually, maintain the not may, to but weather we want lose guidance

time that we quarter usually - year. the mean a - the And the impact business. that drop be quarter is weather. very we have just we're you to fourth we're as weather of in tending so be going to doesn't of conservative. note expecting are by and affected It It's that any So really that bit is by holidays in fourth - there

we So it just be I - would rather maintaining as guidance more in conservative so just the was.

Chris Moore

maybe Survey. million U.S. $XXX bit talk with a Geological the IDIQ, about the Yes further we could this, little

just we I'm that is many understand how are So QSI this there? an to want recomplete, kind to previously had on maybe then of start in operated players And and could there? trying IDIQ

Mark Abatto

you. thank Sure,

Dickerson Wright

you for more people and you can if call contract with him think specifically, let said speak let you maybe the how But $X and supplier tell driving Mark we question, specificity to answers I of ahead many in - and this on had doing I'll contract. we the are Abatto million And your but realized slide, work answer we've before can the are others this. I'll services that of Mark noticed the the Mark Mark, I go on question. - on Okay. Chris' already actually

Mark Abatto

relative a about Sure, contract - We've is decades matter for recompete. the as under different [ph] actually Chris. XDEP And There multi-year enjoyed of you're the year a those are absolutely worked award this for on size a and just in about point, the but of little of share contract. small contract fact. a contracts a And usually to to XX above space. business it's contract Dickerson's significant right, large several combination we've five beyond that predecessor providers up wallet, bit providers. To to and the

funding which for planning research, elevation you The was that As contract for natural is system. primary wetlands for waters updates and XDEP national elevation climate storm including as aimed the groundwater, also funding and land or infrastructure, and this maps but protection, environmental may was land know a it land, kind creating nationwide nation Next-Gen creating a the XDEP. first resilience. and program X-dimensional elevation it that of program wetlands mandate new and mission applications the at elevation map, map - called Continues is that water coastal and such beyond resource and vehicle that program and that going a nationwide surface

what So, advancement that's program well we're as for positioned well wallet and share to And of significant predecessor that well. the offered. capture portion very a beyond

Dickerson Wright

Thank Mark. you,

Chris Moore

see would that, you going in XXXX? And

Mark Abatto

could you repeat I’m that? Chris, sorry,

Chris Moore

it that feel start capturing be you’d additional about fiscal - would that? XXXX where in talk You would really that see you wallet share to

Mark Abatto

$X is Dickerson into beyond. will of fund received continue the Again, we've pointed program XXXX and - five-year already as the and under Well, this out, about contract. million that

Chris Moore

Understood.

Dickerson Wright

invoiced last looking - rearview the invoiced on Dick the contract mirror, million is this geospatial awarded, it’s our $XXX any if group was the previous Chris, time help in this contract. we and

substantial think on time. and increase So of that over that – will it's be the amount - we we should able period to same

Operator

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

is line open. Your

Rob Brown

and the sort growth dig pretty see going bit of growth business you to Just strong in the some metrics and some you XXXX? What wanted in of to geospatial little backlog had organic reported. a in geospatial you the forward in

Dickerson Wright

middle can say from in growth to our And anywhere Mark. we’re again budget organic prices defer now. we're the X% I what - the and assuming budgeting to Once I'll But of X% our business. we're in the high maybe looking and you that. that's I could But have from entire geospatial of - think representative some you'd like But more about we Mark, it. single-digit color,

Mark Abatto

gas. I extensively, Sure, if look couple verticals, we at think different in oil of and our being and utilities commercial

given and market entire a being technology as get to to in core Lidar under-penetrated access a to to innings of still run base in especially client lot for grids. opportunity, to markets power And a accelerator have - see very that risk their We face these like space adopting to a NVX grow. of us it's room the across solutions manage in that we able utility entrenched It's the cross-selling. real the early

the significant in see, sector. we opportunities So private

On the as the to relative resiliency and consumption, availability the the infrastructure. with side, legislation, positioned and grow as well infrastructure solutions without climate very solutions the government we're we climate well resilience of Because environmental water bill decarbonization. to in offer or or

So course are all beyond. these XXXX over out and the are themes to going certainly play of that

Dickerson Wright

budgeting single-digit have process be the we - in so in looking on we X%. just Rob, from now high based to are X% for and we're - the

in our but is areas group think was But the the And our going [technical really in difficulty] all in kind mentioned was up we Our our international with in kind estate growth, really a $XX real little and difficulty] [technical I on a you ads of start our our business, in opportunity our real - real protecting international. of consolidated over our environmental transactional growth and highest in growth our morning. that's estate uptick in look I they difficulty] wish [technical growth are that profit was tremendous business and I we’re areas our from they of organic would and - this growth, are business, this segments. are transaction from we protecting international that international, almost at million

Rob Brown

growth and to the we’ll for overall you of what you how on that that then flows on overview that and Thanks of maybe impact how infrastructure through bill, see business? thinking areas think will your sort latest sort your and

Dickerson Wright

But comment that only to that position going we're normally, mean I I'm help. a and more specificity The positioning the is business, bills will only and answer that a infrastructure give general agencies. the growth. of of our lot can help state us then municipalities Okay in with and Alex it can transportation lot and to - our a through right

into that direct, for - for. We government through infrastructure, help. municipalities our expect as that so direct usually we federal - far the can like But think just released the As be transportation But the areas there is are we work and haven't through we usually positioned that we are baked anything well budget. backlog the the specific only it are can agencies.

may Alex, comment. you want to So

Alex Hockman

When in Dick. designed which for division, infrastructure, internally, utility you A) survey. our water is you any primarily broadband. way we - infrastructure, type able Infrastructure funding you, of consider have the advantage to take segment Thank we’d be of transportation,

and the testing, our consulting, which have management. within is our group well ability as inspection project as We tech the

opportunities. able So existing would as new of of to service advantage there a funded these is number be are lines, at projects ways take our

Operator

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

Your line is open.

Michael Feniger

at revenue the in help just provide On us, we million changed has for still the change any of question - why EBITDA are or that that you didn't all? regarding guide, thinking year earlier mid-$XXX the

Dickerson Wright

question. Well, we. to Yes. no. Yes, your I mean

you'll in if we share. EPS also in raised EPS at We the are notice, per our expecting our on maybe reporting that guidance and EBITDA. earnings we've Michael, And least on our

to increase notice so areas. you'll in least EPS, naturally both press using be or in And defer GAAP that the the increased same. at release, EPS would our guidance and the EBITDA we on if But adjusted

differ a EBITDA. also relationship have would our So to that would

Michael Feniger

was had cash timing was you year-over-year. down - but any from why I or you know growth EBITDA, just a And ops And color it nice some any really like reason there. give cash revenue, on quarter quarter ops, it Understood. don't from can if looks this was lumpiness? EPS,

Dickerson Wright

Yes.

will, time Let two CFO pay imagine employees then Ed be me Michael, collect it give specifically. - our our every of our lowest XX speak days. every historically, a can general we can But all busiest and at our our is cash weeks may if flow of And the answer we money year. and in you

will the to in start busier build. like second be So our and then and build quarter, our start slower we flow are, we cash And in month, to cash first cash the lower.

it's may only revenues. better how reflection So that. have But just on we you are generating a on Ed, in specific new

Edward Codispoti

if That Well, we've I was impact a had Along right. year you're the year last that exactly with think affected against and that's of us. comparing COVID which COVID.

capital. ramping back cycle you the receivables a in so just Dickerson wanted that where exclude our disproportionate that have They that revenue have It's you way, we as billed added. about you and When Now we're in really on capital. see and can working with impact growth the of along working to business, up you increased capital. drawn to our our that referring working not think is is

EBITDA it the and impact looking cycles if just want capital, but of exclude to ARR another working CapEx, as that of You you really at of disburse right, payments. just normal it, adjusted and way collections is

Michael Feniger

just we to Are areas? us Can these you are what what - growth the markets you like? you you're And And M&A? what sizes guys smaller remind for highlight bigger? deals? I on they pipeline can type look these think those seeing are focusing mid-size in Are end areas.

Dickerson Wright

is revenue with the ones. say of it $XX would I think revenue, depends we - $XX size, million - larger one our who on starting million us

we focusing have Michael. we this, our at build building how just of and the are When a platforms. now We were doing luxury are right to looking though company, we

will, you platforms verticals, if the Our pretty now, solid. seasoned are and pretty

or acquisitions can the the verticals. tuck-ins at So smaller we're looking that the support

from has efficiency, we're a EBITDA. energy entree higher area that more and of technology Our ESG higher acquisitions looking related bar and now is focus on

to those those of tend be $XX type less that - However, acquisitions million. - than

to is So our normal million. million size $X now about $X

very pipeline we're that can that good our EBITDA. now increase opportunities very and really of have we some focusing our strengthen is the are things right increase - have I'm believing - platform now. our We luxury the looking we on and robust at

Michael Feniger

that, year, this expansion this at up metrics year XXXX? it's think more the look like how the [ph]one on, in depending expansion curious you XXXX are process, there lastly, forward , margin and points margin numbers in back slice we your bidding margins million how think also team. any how are basis XXX you is forward, How Just depending much XXXX Just use. maybe right of about is you is or some to been you to sustainable Thanks, headwinds in about the tailwinds - do going year-to-date, year-to-date, thinking on going what it XXX and about guys to XXXX? that going when and on give that

Dickerson Wright

reflection of the support or resources whole whole to we have new we that acquire growth. human need in look a the be I may we or some which put me has we additional question, - very make company but doesn't There scalability a it's budget on services mean to our Okay. to staff we group obviously we understand put and we to put comments. If have scalability, something. a if IT, has a to when have let staff on don't necessarily accounting acquire for general a That strict that, shared people to

of Our think shared the be services you're and see That support profit is scalability improvement I going to to our our need just from one. flexible so services.

EBITDA are higher the mentioned, profitability, The now in second, I as looking higher services. we

And would every rate degradation that E&C I because we but know - going of I'm I it us EBITDA. than going same at don't we're to but or have for looking EBITDA. regret But an we make continue that an really say a very, higher same helps would would we're very, we're that I look services the group, at higher scalability see rate much to don't grow our saying I improvement. see improvement, our I in So see acquisitions EBITDA if not for time any the acquisition, you are we - the support from that now don't and that

So, at worst.

we're not going to if a better. same, I little the think be

Operator

Our next with question is Singular Springer Research. from Lisa

line open. is Your

Lisa Springer

is the wanted I the about are ask Is commercial opportunities business. customers customers, primarily Sage to mix a for across customers? all what to government and it their the customer

Dickerson Wright

me the let mention experiencing, We're latter.

sector. been First, they really - with one the and public in sector, the It's cross-selling we and are existing them is we're number we with successful but and really client. and more that including in happy and the able our don't our to work we platform. can we help our platform. know pleased can it's now commissioning call, to of expand the energy pretty private of with is want private the and Their that public are cross-selling. platform on now classy including XX-XX we universities their school and sector really businesses - we in performing I'm But is districts is government it. in and I And government, the they've services what are cross-selling, of much how the a mix It including with efficiency has just data ahead, rest how between is cross-sell we're because the real their Sage really, of But sledgehammer a really a focus agencies. that

Operator

Wittmann Our next from question is Baird. with Andy

Your is open. line

Andy Wittmann

could from is? in that than going year. backlog what acquisitions less that understand file, as was the in us help or have companies from the it's you number talks wondering number tomorrow a third could your owned was tell one I contribution XX-Q well? quarter when It Ed, at was there. contributed to better. a the bit revenue little from about Just during closed that was you us the if tell what if quarter And you acquisitions

Edward Codispoti

to Andy, that is one don't the yet. footnote, pre-acquisition, week forma in taking the one, the XX-Q we in account backlog that But that, of entities. also have acquired related into we have And said pro numbers. effect those have that the past, information Yes. in less number quite number as I is

So filing tomorrow. XX-Q we're our

will that numbers just you you those so I receiving to information. that And color to prior be tomorrow. want But available give

Andy Wittmann

experience look it's there. and in a wondering from around profitability the comment your they take how the have We're tomorrow impacting was packages on tighter more could We'll it's other on that moving how affect labor today, some what impact it the the that's and or I might availability your was others just wages that. out the profitability Dick. that into be I industry and wondering if to might starting was maybe in your hear markets than of time. personnel getting looking 'XX? you of phenomenon

Dickerson Wright

out to you took going - the - comments was Well, of concluding comments. I make some you took

We be in we talent we companies now. are other have other war really to that and firms, competitive. think And right a

I it's fee services think we price on the revenue on a more multiplier than in effect our though, for get our And what to on are going audit. net is far that we going most of be profitability, charge be because to subject to unit person. basis,

charge is it's we person an $XX using - $XX in overhead we our an could audited $XX. rate - overhead charge So example, charge we would XX. if obviously we can X.X, hour our per If

affect profitability. people. a for of build not not losing is - slots, have - but though or open and a will we're we losing people we lot it's - So those have obviously people, we can lot and If

the - was affected. revenue there So

need group consulting with we it would I to doing people recruiting, very the don't like our is very open have firm that But just and positions people. all now, are to find HR pleased have filled. they right engineering and or think be any is has to We I'm aggressive. that what

are firms starting talent. feel to Andy, feel are to starting workforce So this and we really all

Andy Wittmann

hit. commentary. that last helpful that's over it, year. Got Thank back for did quarters, And up, Alex. your a the noticed you, kind those for LNG I few just you can doubled over awards, clearly maybe see just we last on of I think business basically comment

an how long So in not this that that what little if it's is mean us do, are can you me you I I'm the of you a up. done you looking know If I'm forward? that’s wrong. By provide I that it's prime maybe that the I not work. one business - like of for And EPC duration the are if is, work. subcontract of which a projects? guess, you But type these guys mistaken, what on and the But is out basis of bit I I'm could part on context think lot surprising correct

tends to So amount it a today an bit than are things LNG is some many that maybe work you And lumpier little other on I right your working think, unusual of the versus in be how now that business you it of historically? projects do.

sustainable I'm So that than Thank I to for as else? guess, means looking growth anything what it's and more if just rate context you.

Alex Hockman

The mix you the acquisition in projects. so smaller is EPC they're where due or its is the projects study. Sure, are a arena. in frankly type there feasibility CHI are of correct, larger revenue some And - diligence then a

We a geographically. expanding pre Houston just initiated we that branch. was things the COVID - has of CHI have now One

is the phase, leading the purely up to intent phase, the the is and EPC geographically to that growth diligence in engineering and see organic the is this assessment. consulting to an that, by So large is it actually expanding project continue due

Operator

question from with next Riddick Our is Sidoti. Marc

Your open. is line

Marc Riddick

I I you as things certain wanted side in don't that's particularly We're you - in the actually not So wondering without had about commentary and if I to you going and on is do out budgeting to the sort into process? area kind versus or necessary do expenses like. You things maybe this steal on think was ending the much thunder as to I from as mentioned of to the was, I to wondering your the elsewhere? pandemic travel one touch on hit past reevaluating that expenses thinking throughout that well was if could far coming if of that incurring what additional other were had the continue how and several view necessary, going something ask I have want you updated was and an as past?

Dickerson Wright

What certainly of - have we've very other on and on learned we've we've what this. like focused having been learned. has expenses any focused support Marc. learned what firm is We've conferences the pandemic. very on certainly the would traveling been we're not learned that is Thanks clients, We And We've happened we from travel. most now offices. to have that and to so actually - our we're the lose and pre-pandemic support we had

we of all office of right - conferences and relate up have a can from do to example, I expenses through that the do So and that those say Zoom an and for mean we things are hotel, coming that virtually. call. I one that - we'll a such as personally, lot this airfare.

the - will watch really so, And for thing, the we we expenses. same

is office We costs. homes. not in facility working everybody Obviously, their many from have at working people are an

do how facilities questioning with we the we need. we're that really space So and have much really

are since about focused people are utilization I've learning from thing and this projects little bit nice we pandemic home can that. because it's rate gone working that a do. up The So, on our very what seen, they has

don't up, handle don't We where are we're to is think continue? that improve. need, some learned to need things start we've creep what of of but things. we we No, we conferences perhaps or that I certainly complete in all a What to can those when going our visits person have drop-off those I and continue. those - we in you're of but mean, all some handle I to virtually. can learning we they’ll No, going going So, we mean expenses. see, when to of are we

that very indirect think pandemic we of closely those costs I been has from we better think I learned we and watch will that the costs. So the can manage really we indirect what the - lessons

Operator

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

Dickerson Wright

for want they very want to to thank they're Well, adjustments adjusted I pandemic thank successful this you thank quarter. have I to working. to we've employees. concerning make and that much. how another everyone want I how and had our - our thank

to our really to our people. lot I thank owe we want clients. So, a

had - have can our and to we with Andy to are do mention work I before benefit recognize have have we're and taking want package consultant. scalability. people We of create is certainly at we what all clients because when - recognize also to mentioned war. a that that very working want are supportive us, our staying supportive - us talent to the we close are they our us we really and how look want to a valued very been really considered that what adding feel valued. is We employees of and do continue that really less they it's we for people we disruptive. - And realize we have

of we As margin [ph] increases, revenue - have increase And has increased its And that and constantly we our and we be benefits can we'll consolidation, feel budget that as support services. will our scalable. that we feel that that the our to sure increases well. a for in certainly want to on all the that services, mean in scalable margin we then are see budget. the make see improvement. We does We not support

acquire of acquisitions organically. developing as it's as that is, road company. platform. there or giving we our or keep, will that those the advantage team services growth. or national organically, some important it's an markets their very that things acquisitions firms expanding really manage how Because can since - we just But to straight some it's some looks services not we important because and organic do. And to one we really cross-selling that can are a difficult of think - that grow so company acquisitions with But them through opening the we the either are acquisitive grow a that or these I inception we've specific you now the we plans We've XX these we since see, the is, of company. as not made known -

our to our success that can though, important in to think in are really it's equity back share why people ways company. company. our them of partners. the that we create of want that's the people want And Going I have all people the to We

employees. certainly we so, recognize And our

a employees and we I didn't have good So team. clients and we our both and have to I to reoccurring us. have us revenue been our do have working - for is, if what for wanted source we really clients And for employees wouldn't that want good success management of didn't a success thank that our

deliver interest in Thank appreciate - again very in you thanks, company very for So I your four. first quarter XXXX hopefully we you much deliver - and and of the - the the and or you, much the can again see quarter appreciate all everyone. thank we everyone. results we'll

Operator

call. conference Ladies and today's gentlemen, concludes this

may you. You Thank now disconnect.

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