NV5 Global (NVEE) 9 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Richard Tong	Executive Vice President & General Counsel
Dickerson Wright	Chairman & Chief Executive Officer
Ben Heraud	Chief Operating Officer
Alex Hockman	President & Chief Operating Officer
Edward Codispoti	Chief Financial Officer
Chris Moore	CJS Securities
Andy Wittmann	Baird
David Marsh	Singular Research
Rob Brown	Lake Street Capital Markets
Jeff Martin	ROTH MKM
Tate Sullivan	Maxim Group
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 Second Quarter 2023 Ended July 1, 2023.

Joining us today are Dickerson Wright, Chairman and CEO of NV5; Edward Codispoti, CFO of NV5; Alex Hockman, President and COO of NV5; Ben Heraud, COO of NV5; and Richard Tong, Executive Vice President and General Counsel at NV5.

I would like now to turn the call over to Richard Tong.

Richard Tong

Thank you operator. Welcome, everyone to NV5's second quarter 2023 earnings call.

statements would be notify remind found today's contains I today's participants everyone proceed, future discussion can company's presentation on forward-looking we like financial all to that that business Before and the performance. about ir.nvX.com and

on statements based and expectations today's in slides are uncertainties. included current risks to differ our are cause and file SEC. that in could management's results to with reports materially and are These subject Factors from the on these presentation

GAAP financial release available at non-GAAP XXXX. of be against the otherwise A call second references will this is During stated website two reconciliation and to made unless the quarter in discussed. second measures www.nvX.com. note company's between and that XXXX quarter the all being Please comparisons earnings today's on are

NVX presentation adjusted has and the by certain The non-GAAP included included G EBITDA. measures financial XXXX amended. non-GAAP share Securities Regulation in as as are this measures In earnings this presentation per defined and promulgated adjusted Exchange of Act financial in

measures non-GAAP financial NVX's they as additional provide provides GAAP measures to into NVX insight results. supplement financial

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

may companies In addition, companies. those to the non-GAAP which differently, measures NVX of limits non-GAAP other define investors measures ability of compare peer to used by

the release presentation on its A news also available section are company's webcast and the and via provided replay accompanying this today's of link in of call website. Investors the

section during call today's also on find referenced the may Investors the website. presentation, of this which be will company's You

closing for the of questions. will call for provide a before Codispoti, turning your call COO second Alex Financial of results. President NVX, XXXX and Wright call Wright, to the then Ed the then before review hearing Dickerson we to comments Ben COO with Heraud, Dickerson begin of Chairman We over quarter over CEO and and of NVX, Officer Chief turning call from the the open NVX, from Hockman, will comments

go please Dickerson ahead.

Dickerson Wright

this call. everyone Richard, and to you, Thank thanks us for today for joining

exceeded budget. The quarter planned results second our

meet We track for given XXXX. to are previously on the guidance

As growth improvement over we but one of our above existing you was quarter consensus. finished see not growth only organic to number but consisted also Results made growth to business X, organic acquisitions turning In an and analytical strengthens of reoccurring from during page quarter revenue the a the prior stable quarter software of acquisitions and one. and and subscription services for revenue. foundation based particular, and

power and some wins support existing the recent utility also assist sustainable We project grid. that infrastructure, announced enhance and a

have to Infrastructure see Federal materialize. the We begun bill

recently have shoots prior for We begun increasing, but still at to transactional see our revenue with not green estate real business, rates.

our have for growth can initiatives that We organic clients. provide established resources additional

feel growth. We our time We organic our people have to spend additional clients. most this structured increase with will the senior organization have that

growth in Perhaps, strengthening data with acquisition Slide we -- highlights the further center in the yesterday now This areas, of resources go and in can X, increases organic the which Pacific promoting to activity which our of our Singapore. our technology announced Technology Red support region. mission-critical Asia expansion was

for full-time XXX be numbers now equivalents base in adds In region. further employee acquisition to The employee existing a will catalyst fact, our over the growth, the base. and

Buildings to now Alex Ben provide and the the update will an to turn on businesses. over Infrastructure I presentation Heraud and Hockman,

Ben Heraud

highly team a formed clients a provide to Mission highly Please The that our idea turn division NVX to shop for Slide X. outcome-driven. called international focused Critical. In was within blue XXXX, we one-stop chip was

could that and international consultant a standards while markets, to needed rapidly clients bring culture. adopting regulations the unskilled Our local

of and in IT The the in offerings service first Technologies services. organic downstream provides has which acquisition is optic of Red fiber our both our expands XXX% its and commissioning design upstream base, half since systems business the and client mission-critical Our and consulting, the growth. Technologies and has of delivered Mission both Red to Critical it grown year close founding, XX% space.

very services Having into to seeing business. market, already more of Energy very worked are our now. positioned clean together with strong market recurring bring in on our the in energy areas XXXX, a number of domestic demand and the of very bolstered In growth. are group, the projects, services revenue we're acquisition integrate The right vertically that we expertise also well vehicle and renewables in Sage electric high

This and system us to more deliver is clients. of bringing to we a as becoming subscription-based engage platforms now building MEP formed our value and drawing twin downstream work project, program our allowing scanned part a representative, our often core digital more services As this management, information our our group, and of an from traditional analytics year, beginning phase design in expertise of to while clients, which engineering leads more early growing At building revenue. NVX the such at efficiently a digitization to geospatial, provide modeling owner's other we the verticals. in to projects

on Our Technology is Group & Acoustics for year. a record track

education, the be which seeing in a is pandemic. currently a We strong higher to leaders continue market market rebound since

other to agreements recent entity. master services into continue government and markets, awarded large software with We with diversify a

Utilities businesses. Alex on will give Infrastructure now an Hockman, the update and

Alex Hockman

the construction NVX forefront turn demands and to X. Thank of and Please good the functionality afternoon protecting sustainable you, Ben planning, been design to Slide has our population environment. of meet and the to at everyone.

and sustainability of of have have We ENVISION Infrastructure all in and examination a in system development thorough active infrastructure. Sustainable holistic of the that ENVISION. is the enables the a and civil participated rating been types for framework, Institute sustainability resiliency of

York protect drastically our oceans. treatment known concerns of the DEP address CSOs. untreated into This design and demand will treatment and improves interceptor include discharged also quality New the the infrastructure are recently overcapacity project waterways. centers million When of include our of The and that an the is outflow of as greenwater reduces environment systems our City system $XX directly sewage sewer sewage design plants water project. construction with systems on to rivers stormwater announced combined investments interceptor Examples the

IIJA We through or are the the make also is starting Jobs BIL in trillion infrastructure BIL. known combination of $X resulting more The tax and a law funding energy which incentives. Act, transportation, also water and Investment loans programs projects Infrastructure sectors as to available for will see from Bipartisan across than Infrastructure grants and

of Philadelphia Camden raise Our XX Jersey for writing has Rebuilding funds XXXX. Camden grant results Sustainability and with New Greenway for Through $XX for successful in million Infrastructure a safety County acronym Equity. designing. Long NVX through performed And trail, this for and towns municipalities, awaiting services authored office the a June, counties Camden application County, XX-mile segments pedestrian application trail County for is grant, announced the won an grant is for programs. and our of are American non-motorized Island RAISE office and federal which

our sector are of for We management clients assist design writing, the with and multi-disciplined us well-positioned important assist throughout our group and stages, energy these services private assets has of utility life in to projects. grant and infrastructure capital the well-positioned improvement public but approach services to are early project company's The projects. cycle

major has to and fires the forest projecting management. and preventing utility our reducing attempting demand undergrounding Recently Coast substations, including gas, in rapidly activity increased We are transmission for improvements all in these and expertise growing and seeing and of reported a fires and growth LNG was the that are project lines required West lines, areas to expertise charging by disciplines extensive through than significant mitigate NVX all distribution effective of more EV across in aspects manage stations. far design future. outages

At this time, to I will turn it back Dickerson.

Dickerson Wright

of update three it geospatial continued you for it key to provide resources. solutions; provides geospatial we'll success risk; Thank and for about Slide growth. The as By one, Alex. we an mitigates speak turning well our our existing our strategy will three, growth; platform manages as and platform two, plans X, our future

increasing are will and updated Ed acquisition mention the new requires better measurement to aerial provide most As equipment. to technology Codispoti Data our investments later, markets. address updated we

Software solutions solutions. the acquired tailor user by with clients solutions software our NVX solutions. to the analytical for patented in and data our embeds with relationship solutions competitive a These clients. is provide far leader friendly edge

Slide the wins that to Going key backlog for and quarter. our you'll see we XX, depict second

or that rolling way XX-month to XX% a million XXXX our year, really over last period. all backlog $XXX grew the You'll over QX see QX

key offerings. touched service of most Our our wins

Our for provide our data Department of wins government geospatial Defense. agencies, including the

energy delivery wins for existing grid. and enhances efficiency our infrastructure the Our utility

geospatial our Our support geospatial investments, technology will wins.

We quarter will now our transition to CFO, ahead, Ed Codispoti the our presentation of provide to performance. Ed. Go overview an second

Edward Codispoti

everyone. Thank you, good afternoon, and Dickerson

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

in growth $XXX.X acquisitions represented geospatial Axim primarily revenues $XXX.X were compared quarter about XX% as fueled increase million second last The million. our Our the of million VIS in which business, and to as $XX.X in well growth organic was year. by combined gross our

this $XX.X Gross project $X.X was growth driven points by our of $X $XX.X second of quarter by offset driven increase in timing partially in real our decreases $XXX.X revenue estate Our of to decreases year, during the Gross million reactions by million compared XX%. last basis transactional was million an of period. or cycles. the revenue of in expanded million, line and to rates business XX profit top by margin interest LNG million market business also

which Net and impacted amortization million of quarter second Net by the year last was the $X.X $X.X million interest increased increased income which decrease acquisitions, of quarter expense a in the of was expense $XX.X compared in when second $XX.X year, to to million. compared from million last $X.X million. income quarter

to earn-out and estate our project profit net by due transactional to acquisition affected real in business our as accruals. income well our margins was this as of profit of rates reactions timing the to Additionally, interest in business reduction the cycles, due quarter LNG market margins

did increased we the our XX% see over I'll it real year. quarter note in as this business of that revenue, first resiliency estate

the EBITDA million last in of adjusted second $XX.X million Our quarter compared $XX was year. to

the the estate adjusted EBITDA and was was LNG case of net As real projects. timing income, by business impacted with

share share per second earnings diluted of share quarter in per per $X.XX quarter to of were XXXX. compared GAAP second Our the in XXXX $X the

were of and share which per per year this earnings in per second compared share second adjusted intangible acquisition-related impact of to the year. $X.XX the Our in quarter of share excludes $X.XX last the amortization quarter costs

cash the quarter second were you On operations our see during from million. $XX.X that Slide flows can XX,

which by to during by was VIS quarter, certain Our operations for were acquisitions. bringing a and extent capital cash the of driven Axim flows the timing on the second from board impacted the quarter working

X, our $XX.X impact net This leverage X.Xx. cash and of As on and million XXXX, the the acquisitions. includes was Axim net leverage of Viz hand had July we of

in XX. of first look Slide we invested made investments, to was at the see how the related this year far million projects. so been of Of of CapEx and in in capacity has can invested fleet this When million growth now to year. the Turning amount million new our this $X.X we future We CapEx geospatial to which active growth. our you our have vessel about in geospatial $X $XX.X half already engaged expand

$X.X wind growth. was the and rivers Another went million these towards LiDAR nearshore Topo-bathymetric along equipment initiative sheet balance contracts. believe offshore wind the and for support growth position strength invested with about our geospatial We us in $X.X well investments future sensors million offshore of to for

it some to back turn comments. closing now I'll for Dickerson over

Dickerson Wright

in focus Thank $XXX for leader which Slide one, strategy for position our geospatial in makes XX mention and leadership, expand approaches America we'll the least NVX Let's seven will Number the to growth. you, activity. future million us and is sure points What at and Ed. you now for growth? our future drivers geospatial North see turn to

international to expansion infrastructure federal starting There now distribution well improvements always the also centre markets be from infancy. very to going in on to opportunities. NVX driver. these activity power M&A LNG we gas and capitalize positioned will will natural to be data begin new and Ben see and are its activity We're As for is which on mentioned capitalize conversion a utility

continue will that will only not our not support grow. Clean which services, public And to focus something is look dependent on infrastructure mandated efficiency always we but energy We services building it's requires central the mentioned on sector infrastructure for in least sustainable we the area last the of focus, be conditions. and and that in civil in will every sustainability. aspect but not economic Alex

will We optimistic market based remain million we to $XXX we'll to our and So guidance guidance approach our million conditions. $XXX you. strategy XXXX revenues and and adjusted our nimble GAAP our Thank stay implement continue remain same. upon of in maintain and the EPS

Operator

question your comes [Operator Instructions] CJS And from Securities. go Chris Chris, Moore, first ahead. please

Chris Moore

guys. afternoon, Good Thanks a Hey. couple for taking questions.

growth at revenue XX%. So stays guide roughly

M&A. versus a Just is that sense much of give me how

Dickerson Wright

Yes.

Chris. digits the We be organic expect high the in to single

X% around is we're so or So what planning for.

Chris Moore

just that Very changed helpful. year-over-year? geospatial? Backlog significantly what that of Has it. roughly $XXX Got million percentage is

Dickerson Wright

XX% Geospatial been about the Dick. is this running turnover $XXX for growth Geospatial of turnover Chris -- million This has and be about think their the I Thanks, will question. year.

that of $XXX on activity. course is all not the of based geospatial So, million

So I XX%. would about say it's

Chris Moore

project Got cycles? you it. know be last project And for of LNG And about the bit talk a in are cycle helpful. little in half Can Very impact the you impacted year? would Maybe the I first one half. what those the more second me. where

Dickerson Wright

yes, Well, is what as course LNG we of percentage a billed of call completion.

that estimate generate. the that impact they're So, of projects they it's working vastly on of the their will revenue to completion that choose

labor try and match to So at always up we time. revenue same the

of LNG year conservative will more it doesn't that in percentage how because in growing. process. recognizing just the they're are towards And of stronger depict It's But the be they're any the basis. LNG completion higher. or the they the second So we on completion of think the revenue a of half business, percent slowdown being

Chris Moore

Got it.

So to a related the of tailwind a that second accounting half. for should little the bit be

Dickerson Wright

Correct. Correct.

Chris Moore

right. I'll it. all there guys. I appreciate leave Got it it.

Dickerson Wright

Thanks Chris.

Operator

from Wittmann Andy Andy, go from please Baird. comes question Next ahead.

Andy Wittmann

in run per Good in taking $XX.X was had just start to guess That the profile pretty Thanks -- quarter wanted afternoon. I to the questions million. gosh, in million just $XX trying substantially the been $XX understand line for my the to running Okay. G&A to reliably down quarter million guys. number rate. quarter over your I margin

show that the And I to statement. just in it difference you on that was from. you'd wondering, expense guess, reversed on take a for accruals call I up Perhaps So that liability understand and item benefit the got I us this contra was compensation that Was earn-out did quarter? was you you G&A? incentive could maybe does hoping -- income what maybe or your, was it help the

Edward Codispoti

accrual. of Absolutely a reversal Andy, of it's the earn-out latter -- you it's just mentioned. an that those It's the

And so had that of a costs if back of you of GAAP see million a you'll the the refer to quarter. the on net during non-GAAP acquisition-related in basis the earnings release, to reversal reconciliation our $X.X

So it. that's of part

built that that an you earn-out during some met just acquisitions, of was have into We as know reversed our was that the was and earn-out quarter. not

Andy Wittmann

Okay.

Dickerson Wright

not the It's milestone-based. It's depends Milestone-based, of what And I Andy specific is there's is to milestone-based. this that acquisition. Dick. Ed on segments the mentioning. am earn-out

are revenue-wise, certain of acquisitions a time not not correctly have segment they but certain supposed revenue does not were it's indicate according earn-out and the But meet a that on necessarily that and it. to they they to the operating -- met timeframe contract, met the may base may have

sometimes won't. catch-up, they'll Sometimes they

Andy Wittmann

the that, do net. wondering you in have it. some you Got million did sometimes mentioned on actually quarter. Ed, you the was I positive expenses acquisitions $X.X

gross the was for now? what So number

Edward Codispoti

the reversal. the $X.XX million was positive other expense said we like And you going had way.

was million the $X.X $X.XX million and reversal a net. So was

Andy Wittmann

Got it, yeah.

you capital build did Okay. flow, because then That's of terms just some wondering have here. was cash helpful. the just And in I working

for things as the year? about what of And working timing. in you for the you guess, third it have in that here in got those early are usage thinking I items quarter? some August the capital now the talked stands guys you You collected here quarter

Edward Codispoti

and post-acquisition the you place I -- would working working that few to to improve. Yeah. happens collections not have of first fall Axim may the the components in that impact the during the size oftentimes certain cash the acquisition is weeks second post-closing when for following AR and the period. you're acquisition capital immediate capital the following months in What into expect terms working of flows half of -- capital on

improvements should from we think I that second operations. in the so during see recover will flow our cash half And and

Andy Wittmann

it. Got

want guess, organic started here the of just X% of the to be talked try the you half for have down year. final growth question. that second understand make are in suggest the you level confidence the digits would just back Then my to on down rate, Okay. little I I for your of first out double to a to year have a guys given into the earnings the the you because slightly, about half X% first would which organic half year growth rate that half,

seeing the the levels you're half? lines business to that the what So these for second to degree at accelerate are needed

Dickerson Wright

Well, Thanks this Andy. is Dick.

not if just purely just think we're relying organic total I not you're -- but growth just -- you're on growth.

rate So also would XX%, organic there that it to It acquisitions to growth just be be was some will we're will a part. going expecting not pure be be but looks like of have that.

not any from just or we read. show input acquisition does It a recent revenue

growth both And through of look and the depend may on we organic growth us acquisitions. do so to the it will for company that

as in get we but looking too Red the areas for specific far opportunities don't we're are specific at, we acquisitions good still areas looking geospatial and I phenomenal core and technology very -- As for opportunities that technology the as want in our some we have also business. at looking to area are such

if we all to half but anticipate come of second year. not all we those So certainly knowing those the will anticipate of of those the help some in,

Andy Wittmann

Okay. I that make that clear to want just I'm sure then. on

you're guidance? are acquisitions is in publicly? it announced are say just -- did did guidance, So on then if I you that. to comment guidance you as that right the but or in also saying? that's not that are Is you that relates wrong, Red And not what suggesting that also there -- there the But hear are

Dickerson Wright

we did in certainly included so the it's we we're But included guidance saying that, just at active own didn't collectively at let half -- saying -- me course, the and at it. is at that was assume collectively, say. we say It in look personally, the I'm is you growth. in we're the growth. I'm both I because it's but expecting be look then that we've I organic our second the going done the that revenue have in not because I'm what -- assuming to guidance not if of acquisitions for was year. you neither. what not saying, But the are just assuming time. the of what And guidance, reported and revenue organic it look you're model would one and all Red,

with look to our that's of year. we the for have why little that given and a comfort you'd combination So more of guidance a have bit of rest level the at a

Andy Wittmann

sense. Okay. makes That

Have Okay. Thank you, night. good much. a very

Dickerson Wright

you. Thank

Edward Codispoti

you. Thank

Operator

from next Instructions] David, comes Research. David Marsh, question [Operator Your Singular go ahead.

David Marsh

for Thanks questions. guys. Hi taking my

Just that on a follow little your to to potential be top a business than and bit up line quarter seasonality, lighter guidance about perspective? the being regards be an quarter bit we how revenue a from the question. the would there still last in fourth that would and expectation third think Especially maintained little

Dickerson Wright

our Well, strong fourth if and been always at is things as we were the quarter mirror that quarter. the in not rearview third looking it's as

is weak the as be just quarter things. -- but any fourth It's affected make in we what as we accruals However, by assumptions. the -- it's first affected it's we've the may fourth place usually the but can -- -- is as certainly quarter We left, not have affected it's not what and many strong. but by really in quarter, can't weather, by

Edward Codispoti

see this -- run year, way, right? case, rolling terms revenue the either we way -- this out, go very QX in similar see this Dick the revenue QX and growth could the mentioned, the their rate. fourth particular particular it quarter is But year, as of we in always In backlog

Dickerson Wright

And it's dependent on weather. also

David Marsh

by numbers. you to guess, confidence up going mean to in put of just and like to was where top to able to backlog in come number of this that to half. I'd the here I pretty meet -- previous I through of the to numbers mean going terms in kind that pipeline sizable understand, order get you help of to the in meet terms some callers, I quickly as those So, you're the just be some second And alluded the line have it's

Just in guys here to the future. want see to really you don't have use

Dickerson Wright

have get you that bit confidence But more little may to work have. things We a to feel have the and seem our there. expect meeting have what a ability see can we have you things guidance may here, we we you had perhaps obviously, we've so little, history see expected. a and comfortable to with things. certainly -- of have than clearer we advantage you seen Well, we now -- that an We see don't be right

David Marsh

the down then bit. balance bit some some Sure. recent make acquisitions, Sure. little Absolutely. expectation particularly for pay you of Obviously, sheet what's the the cash to the little And guys free of what -- of would you be just Would ideal debt. of And these kind is leverage that turning as debt generate to ones. a your that here a have bigger you'll you kind of of positive profile company? flow, say kind

Edward Codispoti

now times, as is which mean, some X.X I our is earlier, I of Yes. right mentioned leverage low competitors. our versus relatively

so comfortable that. with And feel very we

the acquisitions things. As balance we sheet -- add to some two

our cash First much some may funded got any through we've of our all, flows possible. And we down that then pay just purchases cash in as forward cash going try as coming that of to leverage through would of operations. be from excess those

David Marsh

up a in interest expense. sizable I obviously pretty Yes. just bump sequential noticed

probably there in that that little to to down just and sure And some that back get so the down would lower current number. till a bit environment rate a be I'm desire

Edward Codispoti

actually we the around down don't And we down the paid the the or year. million pay if half did by so, consider during first during so you this acquisitions of mean, way $XX far quarter. I

have on debt. of been the paying we that So down track

to period. add deleveraging as -- capital, same the acquisitions that an while throughout good our of as when much along, return as facility on there's then focus if to we And fund is through in terms acquisition comes a But need needed. of possible that that time the at some we then on

David Marsh

appreciate I All half right. Thanks guys. second the good Well, you questions. and taking the luck for

Edward Codispoti

you. Thank

Operator

Street go ahead. question Capital comes Rob from Lake Markets. Rob, please Brown, Next

Rob Brown

Dickerson. afternoon Good

Dickerson Wright

Hi.

Rob Brown

estate follow back real up business. on to wanted the transaction just I

the the there And pretty is good the that allowing half that's looking quarter. year? of sort what's How of in of had back dynamics stabilize? guess to You the some I stabilization some it

Dickerson Wright

reporting it estate. government that's buildup And more we in areas two in where our this last in it's we're quarter, their where we've seen some in groups seeing have Well, real the improved some improvement transactional backlog.

is Ginnie with them Mac. Mae of Fannie works and primarily One

seen And continue where we're some revenue. And starting that by -- so improvement. They're under improvement in revenue million year profitable. we've we're $XX to $XX area. overall just starting improvement. were but They In in to they last about remain see we're certainly to see some million

Rob Brown

Yes.

Okay.

then synergies what the Red acquisition with terms and Great. area And fit you've the been how it of good I on just the a building in seems that fits of Okay. in the elaborate how area in on guess fit doing. does building sort in that cross-selling like in

Dickerson Wright

international Well, that of operations offices U.S. offshoring in really has cross-selling the from work the been our for any work an they do our

doing our Red with that increased and improve on capability in work our that for can the cross-selling be we some offshoring hope operations would of they will So states. the

Rob Brown

Okay. congrats Great. nice and you a quarter. on Thank

Dickerson Wright

Thank you.

Operator

MKM. Your comes Martin next Jeff, go ROTH from question ahead. from Jeff

Jeff Martin

be would more timing it. issue a more you helpful. Thanks. look you these the to covered If It was call apologize everyone. I like What of situation? hearing end -- impact of not project about done hopped then, could already it business? What are forward afternoon, bit late. than from that LNG some is the I what if a Dick, good of that, -- sounds was the on it questions repeat and if if the ever

Dickerson Wright

percent Well, as LNG completion of the business. business a

where So, are they they think things an build estimate on of complete.

quarter, a so working percentage recognizing the third done gets of traditionally. the have buildup lower it completion they project their fourth they are And into on – felt the were we as than although, projects and steady

Edward Codispoti

It's also – it about Jeff, are contracts, it's as volume. larger also lower thinking these

And so timing things happens. other, the just kind what started one differences year of is right, terms push of when to any the just to in things get you compare which when little

of really business. versus year. strong it lot this backlog first a demand and first And a half to relates the there's It's timing more of year more the of half for a just So really the issue. last

from half I be will was year. slightly think the last up, second what it

issue. a just timing it's So,

Jeff Martin

And mode, real this the then easier in the on the quarters you Are of year to or where Okay. year, a that business more are to it before couple may last in half gotten become my that much was recovery post the expecting above second easy understanding transactions transaction comps comparisons estate still to relative take last we real of sufficiently estate year. be, period that side, growth.

Dickerson Wright

Yes. are also transaction is business with slowly rates dependent it's very the of But it or Mae they very what Fannie are Ginnie to and very dependent last that We're just -- the portfolio the not rates said large year, on real of on can the anticipating mortgage on and was back. [ph] and it it business, estate appetite rates be interest -- so I side get. and coming that other depends interest piece a the they Mae that business one

quite be scalable, It's last coming year to this slow back. anticipate a it year. but It's see a we we don't So, was what profitable business.

Jeff Martin

one then And could. more, Great. I Okay. if

wind some to out? start even like or geospatial opportunity. see XXXX With look is revenue related delivered, that further vessel some of -- opportunity offshore growth offshore Is what the terms being to wind event ocean a the the new in generation in and geospatial

Dickerson Wright

running spoke group, the just farm. vessel. We has That people they're but the which the growth of wind very to the enthusiastic the Yes. about been project has delayed, dynamics geo

than the generated be more revenue much XXXX of seeing in we're so to XXXX. And

Jeff Martin

Excellent. Thank you.

Operator

from Next go Tate Tate, Sullivan, question Group. ahead. comes Maxim

Tate Sullivan

geological meaningful on give Thank what that? you mostly it survey. you. Dick, geospatial you portion already mentioned background do in more for XXXX US initiatives some that rare work. earth of minerals Is or is Can a you geospatial

Dickerson Wright

additive an geospatial platform. our It's to

of positioning We take are market. ourselves now to just that advantage

than of -- defense and stage in it's the see think So But we -- Alex in software the mentioned that the really very they from revenue. see year. -- and will more beginning Axim ambition genesis an our for increase that and and so we rare a contribution this to defense it's from a geospatial a through the work be contributor and work the we and of earth

piece We some that from will see revenue business. of the

Tate Sullivan

and that? that the Did Okay. Twin BIM Analyst refer then in opportunity the And to you what with Digital is as Day well?

Dickerson Wright

think much the Alex to I Ben been. we the opportunities I the call, on have going to see if that Penta of going is them. and than with what have Ben working been And Well, part I'm I'm defend -- closer to

Ben Heraud

in tenant Yes scan that do a measurements. create example whereas scanners would Heraud more the geospatial that for improvement much Twin Digital a now with it's of our job Basically are we'll Ben we the that side this using services traditionally of and traditional and more we MEP manual When we from go here. space with do one business group.

us back to the actually a present us a for ongoing set and enables to contract comprehensive one-off project. up traditionally an off client was of the more that So solution what more

Tate Sullivan

Great. for that. Thank you

Operator

question from Riddick, Marc, Next Marc comes go please ahead. Sidoti.

Marc Riddick

Hi. Good evening.

your visibility that to may what projects had seeing just seeing to of you're from I have beginning little as be types other and was what or my the talk about up? you're a of initially the you to can sort answered. to a how maybe types IIJA of that So been might -- want of lot questions I one what of have though, talk show relative wonder, sort a the you expectations did been then little follow-up. coming about bit I of could that bit and if types start Maybe

Alex Hockman

is So much what we expectation had seeing. I we're pretty the think that

of been public expectation that I projects have of may bill. as think we the a waterfall a the result have

in we'll management. through writing seeing some for the to it design we're the a grant When is what as to position be the will go And construction phase design. fact be perform into initial start opportunities. there coming those In is the goes of project

So from basically our our expectation meeting it's expectation.

Marc Riddick

up-to-date then us I sort maybe And California. can a you construction what's reminder Okay. that something wasn't a have of been flow Northern in certainly, Thank year was is but maybe if is was there place impact particularly bring for And market? to others you on little that talk could yourselves that specifically -- that you. weather quick some there through later, on bit delayed certainly. affected as the many in that just about earlier how or with just taking the and so expectation wondering, of

Alex Hockman

the of not by the what right. does our done where is not clearly in and just aren't is with delayed sometimes further. are clear even already they're were example, and move delay had be impacted areas little the very many weather felt excavations, when We to essentially on that projects carried revenue filled some So, it weather. would terminated. a The but but been They're for the QX, there projects water. strongly still they And stopped

ripple effects as there's that weather. happened So, of of a number a result severe

Marc Riddick

Make sense. Thank you.

Alex Hockman

You’re welcome.

Operator

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

Dickerson Wright

operator. you, Thank

see a you the beyond Engineering. mean think does be quote NVX, engineering. tagline mean I that be it if there's we or of to to what What do we by Effort beyond that, want

strategy. that the examples few and for Let me reason mention a

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which sustainable develops named technology heard, you've enables mention measure delivery. software a us ENVISION, Alex Our to product that, infrastructure

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will done of we're what future quarter and with half you. and of this second Thank complete for forward about to the very the the look forward and you optimistic in year NVX. call we we So our the being we've look

Operator

you for Thank joining. all

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