NV5 Global (NVEE) 8 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Richard Tong	executive
Dickerson Wright	executive
Alexander Hockman	executive
Dan Levine	executive
Ben Heraud	executive
Edward Codispoti	executive
Christopher Moore	analyst
Robert Brown	analyst
Justin Hauke	analyst
Jeff Martin	analyst
Samuel Kusswurm	analyst
David Marsh	analyst
Michael Feniger	analyst

Call transcript

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Operator

Ladies and gentlemen, good afternoon, and thank you for participating in today's conference call to discuss NV5's Financial Results for the First Quarter 2024 ended March 30, 2024.

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

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

Richard Tong

Thank you, operator. First Earnings NVX's to everyone, Quarter Call. XXXX Welcome,

forward-looking like all found business participants we discussion ir.nvX.com, proceed, today's and notify would I contains today's are that be Before financial that performance. company's based to presentation remind everyone about These statements reports the and on and are to future on actual our risks expectations differ materially file included to and results today's on from uncertainties. slides Factors current SEC. management's statements the and are subject these in presentation cause that with could in can

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

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

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

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

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

ahead. go please Dickerson,

Dickerson Wright

Thank Richard, call to today. and everyone you, thank for our joining you

in off to start great are a XXXX. We

the growth, We and to increased results reflected strong that are first flow. report quarter pleased profitability organic cash

the growth Our of Infrastructure of result This services the expansion a and provide group, and efficiency delivered geographies. into service to geographies new segment the largest and NVX, strong over was lines of wider in technology accuracy, adoption quarter.

largest organic Once second of our growth double-digit over The EBITDA segment again, Services. NVX of they Geospatial and produced XX%. is

services have increase their and technical expanded have to allow only utilities We to complementary NVX but growth, to traditional the services transportation to departments additions of provided. Geospatial not

& data Technology Group engineering provider Buildings has the Our centers. services for leading become of

growth software chip over NVX data have and growing to international is demands. existing providers with average and known to grid engineering well in and centers, teamed year have next support each investing the The to computing clients for years operations particularly We of of committed tremendous billion X to in $XXX Western address the the an clients. space. support center to service demand The efficiency tenant pressured for greater has utility been this the has data the and energy delivery model. NVX delivery in asked energy AI provide provide

we area. this firm fact, work other In of in know much as doing no

footprint traditional X for of will nexus XXXX our of our that's of a our We will technology, and create acquisitions by group our later of quarter synergy and Geospatial services. Department infrastructure international Transportation that speak densify greater of group completed in

'XX document of Let's furnished NVX. achievements the quarter turn in presentation Page been to you X that the will have X deck that

for growth organic experienced have quarter we that X, see will of You X% 'XX.

QX 'XX exceeded X 'XX. XX% gross than profits greater and Our our were by XX%, growth quarter total

Another important metric is cash flow.

the in versus XX% from quarter Our X improved 'XX. quarter cash flow operations

Our growth and our key we bridge our of of existing result verticals have platform through infrastructure densified and initiatives, our of geospatial areas all of for in center X acquisitions created and was which expansion our data of segments our new DOT a growth a offerings. business. services the all entered high-growth We

Please turn to Slide X.

data Transportation see, conservative rolling million to million This speak we As backlog in engineering wins. Please can our a clients. which the utility of in $XX $XX faster in as you note, service for more represents of million create and backlog center in Services, going infrastructure accomplishments can the million QX wins, awards nexus increased including million deliver QX and of next comprehensive from services Department and actual 'XX. X, to million awards we 'XX technology in our XX months turn the includes very $XXX forward where $XXX $XX $XX of in Slide to to

all We highlighted technology of currently where that the clients. earlier technology spoke applied. I and page, data services have be increasingly on X to we are areas this major this can mission-critical providing center

and this of names engineering We and are of chips which provide market. software, suppliers to familiar have services IT we delivery teamed many as energy commissioning, MEP with

improving NVX sustainable has in delivery. leader the infrastructure been the

developing need electrical the been Dan to standard, of increased have dramatically BIM and be needs. energy to for demand through better page. clean speak specifically on and Levine Digital the addressed delivery demand and increased on this presentation of this on a We page. tech-enabled The NVX NVX services. There and delivery more this to services improve a with power in infrastructure the continues Twin and decarbonization this delivery later referenced for worldwide. data addressed services geospatial more has has our major engineering software Envision will along provide contributor in has

these make presentations of specific segments. in will each We

of let's the speak infrastructure, Infrastructure infrastructure accomplishments will Alex, go our begin in Alex ahead. of our with So Hockman, CEO segment. please

Alexander Hockman

Slide Dickerson. you, X. Thank Please turn to

positioned nation's The that the are completed X the a civil architecture of to advantage and growth investments suburban opportunities the engineering Southeast take acquisition communities in us metrics. and businesses in of top urban, design, these is recently Our leadership metropolitan of Northwest surveying, key Florida home January XXXX the array before and areas. well Florida. XXXX to accelerate industry-leading in geotechnical in consulting, added of full According landscape to transportation demands meet we Central growth by changes Pacific capabilities North organic our resulting fastest-growing and rural our to has census, CHW offering

in are take We Research advantage in fastest U.S. expect engineering tenth Park to in located ], which growth acquisition of cities increase and Cary Carolina and the profitability rate through and [ the North the unprecedented Triangle and our Fluhrer throughout situated Durman expands the area of Carolina, to of have our Raleigh, the structural the organic North the growth Reed Southeast, region. The they growth well Raleigh, services

which Infrastructure over XXXX. million $XX more projects. was Group California was QX, launched awards in growth than Our These contracts initiative to were new transportation DOT related in and $XX awarded directly to national million related the of

the are and trend throughout U.S. federal, similar infrastructure agencies the a as to local We are responding seeing for state improvements. demand

have Florida, and in infrastructure strong our As for anticipate group. growth profitability we we

transactions. Our pent-up which real rebounded stabilizing significant demand well services has also real and quarter-over-quarter, estate transaction estate for with is rates to organic interest due growth

investments the actionable we electrical particular designed at support a and against the and as East. nation's additional remote visualization. contribute grid of and which technologies employ for to and technological Remote highlighted power design a for combine data, X, the asset significance generations. Electrical because Our value that aerial solutions we rising for to modalities damage to utility subsurface locations the transmission and by development electrical protect management These mitigate information to services, resulting grid. of design some continues and specialized that technology Asset sustainable useful is facilitate of NVX's are demand and levels, storm distribution of implementation provide offer future driving Of to mitigate allow in several in ultimately expand the large-scale delivery to hardening be design also ultimately solutions initiatives hardening grade From the infrastructure reduced improve also West sea driver stakeholders of existing gas our undergrounding engineering integrated technologies the our project our distribution a leadership Electrification fires in significant position of underground into in services seeing projects in grid we've urban the from growth electrical to electricity. the through are petroleum combine and address to us to electrical Geospatial methodologies and assets that distribution utilities, Inspection, clients NVX's and to and understandable construction are hardening Management time, and our provides hardening the grid conversion to energy specialized cost and information understanding the proposed the infrastructure. On specialized and we clients. natural continue to increase Slide

Dickerson Wright

the of Levine, our accomplishments now our Dan Alex. this in you, Thank of will segment regard. Geospatial speak President

Dan Levine

Slide to XX. turn Please Dickerson. you, Thank

This client vegetation asset expand line QX more existing traditional management base within EBITDA, For but largely, a to our by doubled is sector, sector, our and great focus driven not into 'XX. over service had commercial nearly and quarter 'XX in a expansion our exclusively in result the which the on diversification, our Geospatial growth management-related transmission we of beyond QX activity organic work an growth work.

have experienced in QX, performance in our sector market. also strong the commercial We signaling in growth future in this bookings

CapEx utilization and our up result activities this data year, Another prior that QX without record-setting experienced additional positive month collection expenditures. each aircraft were year airborne over is in X% have we

a the statewide Kentucky We date, have by a for this to significant of milestone the its oblique largest imagery achieved state completing quarter of collection kind.

year to processing continuing for the data remainder be of the on will of throughout work the state We Kentucky. the

I continuing on of call, business. challenges earnings our spoke Federal about the government the last the During Federal resolution

As were are anticipated, flowing. and dollars federal resolved budgets now

strengthens needs, solutions geospatial and state in Geospatial they strategy. transportation engineering do is including more but a NVX, sector overall transportation management expertise Solutions addition to the support the Not GIS only domain and specific provide out Illinois DOT they but DOTs importantly, GIS GIS our to to between specializes the our key NVX in acquired IP we April. supporting business, work the unique This work. asset of analysis. within Finally, and connection bring

skills leads cycle offer brings management initiatives want the just move DOT and through and GIS Geospatial to we and take deep the market state market. in in now NVX I applied XX. the engineering the says the have the completes cycle a differentiators in of knowledge, Todd planning, this we infrastructure we assets. We'll from serve developed design have DOTs Geospatial across industries life we the NVX GIS not serve. way the Management. position are construction technologies full and of within of all Each within who of digital management With to expertise Solution highlight that minutes these few are to invested Slide some that Asset addition DOT George, state Solutions, growth delivery we

developed and artificial learning have both internally and deployed we intelligence, and learning First, externally. machine solutions, deep

our the at delivery features direct and connection with allowed us prowess routines our engineering to we to Combining a the opportunity grid, data our see power process and to our has with technology electric help accuracy. detect sensor as volume, data AI/ML asset transmission as speed spoke domain significantly nation's our and Utilizing we automatically extract to modernize from expertise, data management collection our to. as design delivery connect Alex in engineering streamline

Software-as-a-Service we these software as a model, ENVI capabilities platform, can Ecosystem. model the ENVI Furthermore, and directly through deliver our AI/ML SaaS

this been years. of clients ENVI for Now our cornerstone XX image software ENVI and over Ecosystem, a of platform has processing speaking

Furthermore, as with base. and model. has We and with workflow as solution recently processing simplification offerings our hosted this have the science a image software-as-a-service Connect addition of automation and expanded licensing modernized Inform ENVI technology our ENVI our client a of

developer and the able recognized were we allows This a tissue. hybrid many NVX's as premier together using solutions, Next, of to us of on-premise IT as GIS capabilities with cloud-based enterprise Geospatial tie connected solutions asset enterprise as operate systems connections that effectively. streamline to spatial corporate create to so elegantly with their our of the management and other processes and more deliveries they permitting can digital systems such

solutions in part our platforms that extensive our in as our has of Twins Technology leader Buildings NVX the manifested digital These DOTs. library and smart delivery acquisition positioned deploys and delivering as energy for Twins. group Digital a and Digital are of platform Finally, sensors

Dickerson Wright

Dan. Thank you,

our of We in segment our now speak from initiatives to our will expand CEO in buildings area. Technology hear our and the Buildings and recent Ben will technology, well accomplishments as as technology this Heraud, who

Ben Heraud

Thank you, Dickerson.

efficiently the NVX has for to a technology our focus XX. work Let's long now strong more deliver Slide always engaged leveraging term. turn with on to remain had our and clients

XD group, along innovative cycle reality our subscription-based way services, capture actively geospatial Our to design to engineering more in we positioning approach revenue. with from more delivering with closely work asset the the twins apart sets entire us services firm. our into Working this clients been traditional existing and have embedding and drive our typical us building and digital life

are center at Looking to XX%. a data in space, to continues rapid the grow team compute QX, doing growth work of In mission-critical organic pace. we the and our we AI saw

data installation and center design, services consulting, technology Our include energy MEP engineering. power specialized and delivery efficiency

almost hyperscalers we're their teams actively locations also geographies Our international energy on with clean our data of area operation new clients. In building is the working significant growth. in of our demand seeing the decarbonization, and centers. the We're and meet to major all existing of

Clean growth organic QX. Our achieved of Energy Group in XX%

design planning Though zero revenue, continue our drives key who engineering, these seeing Working acquired growth Dubai. businesses areas we accelerating. In turn, provides driving growth growth NVX's some trajectory structural global clients program with now. expect compliance We right to groups are also. at as the and that comparison early in overall work heavily and region massive economy. ASG downstream to is stage in services are relatively our in This April, the permitting governments small and for this and, net the early invest management decarbonizing often of in Engineering,

Our XX% Asia, our offices to which our organically provides to services existing is services operation by line other in center international intent and MEP clients. these and our technology data new our a QX. brings ASG operation, grew including bring to service in

our that discuss Let's tech-enabled solutions for to deploying now Slide are turn clients. XX to engineering we

in data been the heat NVX's expanding greater air and cooling has puts data environment even on transfer. electrical the and Artificial center ideal for work mentioned data AI computing, centers centers in helping by rapidly. the previously, hardware computing our I intelligence software. usage As create demands demand and design flow created is expertise

unique clients power facing to is now, getting data right issue are this in very all position. addition, an our puts enough NVX these and In centers build of a

energy enables unlock energy captured load space. in power additional expertise clean for from efficiency rack center, Our the data and us to allowing

our the Our expertise site. clients with assist necessary in power delivery can the means we power to getting

in allowing our for On energy front, power energy waiting clean the monitoring the to may decarbonization rather that continues spikes real inefficiencies commissioning to and be a efficiency facilities identify subscription-based and road. time, years grow, down event than

clients imposed our owner charging for permitting, predictive Our and renewable zero energy design private regulations to and and to and single entities, construction turn the that vehicle program companies management and public energy the a allows public during source is private decarbonization sector auditing sectors. and have helping representation electric by net been design consulting clients achieve

Dickerson Wright

the Thank you, financial going NVX for speak will NVX, Financial 'XX our of and Ben. of Ed financial now Codispoti, accomplishments Ed? who the Officer strong of forward. QX consolidated health Chief

Edward Codispoti

Thank you, afternoon, Dickerson, good and everyone.

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

to year. $XXX.X first the the in million revenues the of compared quarter first $XXX.X prior gross XX% Our million quarter grew to in

increase last million in and for to million million compared Our year, asset the had by We acquisitions the increased gross our amortization of a year $XX a prior intangible result, $X.X $XX.X busy was to of million $XXX.X XX%. quarter. profit as year, an

interest million expense also higher million to $X.X to Our rates our due the $X.X acquisitions. of financing quarter-over-quarter of increased a and portion our

and prior mind looking quarter income, $XXX,XXX quarter margins of resolution, year. which the in operating by resolved continuing when and first $X.X XXXX the down the the first was factors in Axim at also by first quarter end of these the in keep was Our integration million federal to ongoing Please which compared were weighed temporarily VIS. the our net of at of

operating continuing improve revenues move margins we will XXXX. will us, that now federal through anticipate we the as behind With and increase resolution

earnings share quarter. diluted on shares were first $X.XX outstanding compared million based per to the $X.XX quarter. in compared year quarter first prior GAAP the of XXXX share previous year per Our XX.X the to this shares quarter outstanding in was XX.X in million EPS

acquisition-related was compared of of the during to year. million was last per X% adjusted year, prior a million first XXXX per first our which in to EBITDA the earnings amortization of share, $X.XX the impact adjusted share And excludes and $X.XX compared quarter of in Our costs, first $XX.X intangible increase. the the $XX.X quarter quarter

Slide now Turning to XX.

we balance As cash as strength over to the year's and the for ended quarter future million of in we flows growth. cash rates. feel million can our $XX.X the quarter was XX% from confident We with last of X.Xx. it net operations. Accordingly, our us positions leverage you and an see, sheet of believe despite in we cash low well $XX.X increased first significantly generated This interest in increase

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

Dickerson Wright

Thank Ed. you,

see 'XX. NVX had a presentation, you quarter the As first in very can strong

I now doing to turn Let's think deserves what Slide a XX. closer we're And look.

look or the company that closer the that services acquirer are leverage? the is company being sixth really out furnishes there done consolidator have to space profitability? as anyone as XX Do you So And the in scalable or growth? we want a engineering they is and acquisitions? free ask there years then is additional leverage? look cash consolidated organic work? a that And questions to target strategy helps in of things the profitability for is the debt the company? an Is doing on the these there taking a provide flow? of more both our what measure of a results they success strong a you support of against acquisitions there they finally, of at The firms? Do Is they a services. have history of Are the Are thing generating and integration improvement by

increasing will look feel GAAP to share to Therefore, per $X.XX right from earnings gross $X.XX is per you to as very page, look guidance we a going million fare well. the are $X.XX And to and we these company the questions guidance increase we for have per per of the the on guidance basis at, that a $XXX then we NVX that of revenues ask XXXX. $X.XX And we guidance earnings to $XXX the if for adjusted million So every share. on share the will of share.

Operator

of from with first CJS comes [Operator Chris line your And Securities. the Instructions] question Moore

Christopher Moore

weren't as I things to good start Geospatial. we'll for with like been. few year. as 'XX even Maybe good Great year a a probably Geospatial. was have start It feels the for mean it could reasons,

we business versus for about of forward, business core kind a this the expectations talk versus margins Moving growth talk here? little core for organic bit can and about business the

Dickerson Wright

growing Okay. our This Dick start is then Levine, refer President I'll I And I'll Geospatial for on, equipment is and listening. of think budget and Geospatial for are what Dan the who's we going more Sure. in to Group, group Group. bit, that that capital Thanks quite under about we're right. a thanks Chris, for you'll the that. encouraged we questions, specificity, see the and uses feel

grow continuing think were we higher resolution. by with So that's really this going to profitability. We delayed

the quarter profitability. of what you of tremendous made growth in and month third first amount see a so really up And the

significant traditional, Transportation Geospatial can we're We the have on between a very federal encouraged. and to with doing -- bring and we was what that we're work I encouraging that to off Department think now me of as seeing good to think are lot what the because start of goes is some we the now So us. the a profitability very forward year projects will what the funded climb been Geospatial nexus are and

the currently mentioned a have is that think we DOT, giving tremendous DOT for this Illinois is Florida and advantage going and think Dan the us us working ] briefly of acquisition for and technical I advantage. a GSS [ to And

Geospatial, hopefully, services the not want for the all situation, And doing presentation fits work how really in be of that but services. and we So businesses, just recognized the stand-alone a our it was that really with in to but made we're core clear. other in

some have feel? or as thoughts may you you maybe what Dan, So

Dan Levine

how starting do the measure to and the and slide Yes. ourselves we're the that point market. on I be see to will Dick, last Dick's to And our of Thanks, against see rest profitability now. increasing, on

are G Axim themselves bottom to the joining and on be then across synergies We starting X line. absolutely the some NVX to starting the see realized are synergies existing VIS showing and Those and last components, year. now

Christopher Moore

had the I accurately? looking as at Got looked appreciate And that geospatial am always it. I business I highest that wrong kind Is at at NVX. radar -- that. of margin

Dickerson Wright

other there's some in where operations on measurement, the seem profitable. a business based a Well, our there's tremendous always to more And that business, amount fair and be most amortization. depreciation of not is of EBIT

that on EBITDA, benefit of the think we really because we're also that revenue now, are of I business our board have the about for look some I all reoccurring I'd and closely our and center the most with where encouraged judging our equipment businesses. really Geospatial everyone depreciation. we But has distributed data they across think business profitability

encouraged measuring are pure now, the So very center be would Geospatial for our And sectors with all gets on EBITDA, going about now, look profitability, as far you're we'll work. I of our if But benefit we're pure data doing what as that. of better.

Christopher Moore

That it. sense. perfect Maybe over past one. couple model I years. the my evolving just your certainly has of mean been last Got makes business

offerings. little remarks subscription-based You the in talked prepared a bit on

of over that there importantly, next And more revenue percentage as sense as Just what in years? kind of of get to is 'XX. comprised revenue to a percentage a X trying goal the to X a there

Dickerson Wright

take that Group, that, particularly is it's software also what we group. revenue. constantly, base all of a our that's but I'm with Building audiovisual Dan. recently Dan, to acquisition defer month doing what That's revenue, fluctuating month, continuing XX% with a we're at VIS going the from doing making it's we're that that's then not shift we're is in again let revenue that stab Technology and in to almost The me a also to made and reoccurring

the work it's with from or are focused in percentage it's revenue doing company, XX%, a LXHarris. data of subscription-based VIS center probably work really the acquisition as whole around or that both but software doing on work we So we're that

thoughts. maybe have some Dan, you

Dan Levine

last model. And which ], entity, developed specifically the of intent areas VIS a now to That's solutions few modern years. one cloud-hosted we group has products that's on managed with the X been years, And last new compared the that the over solution licensing are baseline developed expect and Connect [ Software-as-a-Services Inform over Yes. and NV a which the NV growth software. the with XX a

So model, a us this new we to is where new see and market a growth licensing and that's for the expect recurring.

Operator

next Rob from your And with Lake Street Brown comes line Markets. the Capital of question

Robert Brown

Just kind of going you're back you're the seeing that the where to the growth data center of opportunities market, some could business of you center much things how other the and and cross-selling give data your in with path us a sense of sense just of doing business? a is

Dickerson Wright

We're Okay. because doing of the that data by are maybe going. for doing certainly the internationally mention was that. we're just specifically names, or about on just We in on to the the speak software know we that in a Ben that significant work name was clients can't has majority you're want certainly to very largest know, bit going where we been specific but I I focused a -- the sensitive clients Western what we center. work we're location client that world. Singapore,

happen clients. But outlined are as going growth name I'd as and doing internationally have them well-known our doing met very as to Western the market, maybe what we centers. work but data can't with far to We as of about the to that like specifically with encouraged, is be But we're Ben and of growth comment, for trip. them. well-respected on their far they be and me that we all he they're unfortunately, But would

about mention data you you So center the maybe, how Ben, work feel internationally. can

Ben Heraud

domestically, it. international, now and sort about are of work these majority cross-selling now of internationally doing through that both that The clients is excited right clients. mean seeing actually we're domestically come large Western that the we're I Yes. we're but

we'll So months the the revenue a on quite quickly here XX growth or so. side I percentage, next the see U.S. think as over

Dickerson Wright

strain a added the energy an of maybe, work. and Rob, on just is there because grid tremendous data And producers center comment,

on In much have slowdown to fact, that we in there long-term a U.S., some tend They're that internationally awful The process. quicker. have been of get energy these the don't moratorium generators the in has doing lot permitted an things or clients those constraints. as

the And the that for think in power we're to domestically I being that's done constraint work delivery use concern the the of that's centers. becoming U.S. the going for a only So have is data point

Robert Brown

Understood.

Okay. the I know offerings. things taking some your And the this of focus shifted densifying I macro thinking activity. then kind of point? on is been, on Or M&A your you've of Has at your M&A guess, where there? some place

Dickerson Wright

the company. our platform? disciplined process. will of we how Well, profitability have the acquisition, a the pretty is existing that And densify first strategy it part How it that platform? support to process And an for is what will either existing what then add we

did significant support in we that though, work a energy see year. and in for them think, successful infrastructure, Rob, flows work. We opportunities certain areas. we X and So center acquisition think data acquisitions very We this in this tremendous of ebbs

a see growing And we think that market. we audiovisual

our and some that infrastructure. So but support technology acquisitions, also strategy existing we there'll be see some acquisitions significant

So is. that opportunistic. where It's we're very

that the we focus will give So looking now is that us that will technical deliver fit faster. right for our that requirement. edge strengthen platforms that And grow more what our what we we acquisitions have, profitable can services and can we're are

Operator

the And Hauke your Baird. question Robert with W. comes line next from Justin of

Justin Hauke

guess for first organic to year. I one, the the outlook the just understand wanted I

the X%. on acquisitions. but quarter, growth And X% in did bringing organic is So you're up your guide revenue you additional the first total

the much growth? to you expecting And year? expectation guess, I contribute way revenue year-to-date, a those to acquisitions So what's ask done maybe it is are the you've to the for how organic X

Dickerson Wright

is Okay. that has our categories. also can through is CFO outlook. what compounded organic start Ed, acquisition, the One growth growth then what with is maybe through We I'll growth separate a this And in X growth, growth. see and he acquisitions.

but combine mostly and in it's at So we at how we their organic that. we it's we is acquisitions can improve don't operation individually can so measured that we the X. that organically on growth. feel each look measured ways, very measure grow We look And can different and that

the As for the through year That the project have we that acquisitions. to may far as of that X% or or growth, contributed the rest of above organically. we same in growth area us Ed? include not any growth does

Edward Codispoti

on the think all were the acquisitions, rate I you pretty million from $XX X look quarter. revenues had are when picture. give during that if at acquisitions that to run quarter its and a X should you you first when acquisitions, it's those across maybe million probably said we've amount, consider good came at date, the But first all Yes, done. Of own, $X.X X a

Justin Hauke

Great. And intangible I on the expense the then EBITDA commentary the -- for second year. But I question interest guess on the about Okay. and growth EPS. appreciate expense higher is the so thinking the

to that that maybe the kind kind grow Obviously, growth. I implying, that light you it revenue were in bridge think thinking that with primarily Or is the little year? is that guys bit? geospatial saying Is that's first it the would quarter. previously, revenue just stuff of this was a improvement margin similar still here from little So line improving? expecting the in be of the to that, a

Edward Codispoti

Yes.

amortization, by it's were I the first there a although as at very at resolution, that it profitability bottom call, but continuing when impact the affected does our in But quarter, which, margin, does really resolved the factors mentioned line. itself of impacting So intangible the course, end as mentioned, were we that, look the of few you impact that on QX. EBITDA,

those back when resources it's And our so profitability. going to improve come online, now

products new revenue a legacy and those going Dan of talking in integrate also operations, well to have those as of ongoing are that VIS we or as Axim that process the integrations of that go along cost existing the our earlier there as about synergies, into Geospatial there with We lot software are both was we're and synergies synergies realizing. be as

kind margins this we'll will our margins of all throughout put the together expand So our or those expand year. of we anticipate rest of

of margin and And XX% a hope so that can get XX% to in would terms close or EBITDA, we change. -- I

mid we amount total to I it give ] is numbers, is expect that but of ] we the would first those range we be be targeting. now in the to would was me be guidance at working what clear, [ be should EBITDA, guidance let and in And we if right EBITDA XXX The be don't XXX but in quarter on [ XXX the terms get expect way higher. XX.X%, would

Operator

comes next question Your from ROTH line of Martin Capital. with the Jeff

Jeff Martin

to getting of I of Dickerson, growth side objectives. on the organic business your one the back is primary know infrastructure

frame? update made, if further give an kind of progress progress what and time could curious over you you Just expect us what on you've

Dickerson Wright

Okay. Thanks, Jeff.

the encouraged group. growth are of about We our Infrastructure very organic

initiatives I remote We think of I X% growth results, quarter. number infrastructure. organic XXX% in as established have fourth we earlier had, about growth for to quarter is of a the in the spoke the organic

environment. that's our full a we and senior in devoting that one very growing the we target-rich his transportation area to DOTs with a the he have We group, took the infrastructure person where attention particularly in group, think business is and

mention purely took in we environmental rest what things to on on initiative are really and of on the persons to and a environmental doing comment going the on areas including couple number one in a growing particularly growth also, organic resources infrastructure focused of the operating of growth. we're other work water, that space, and our just I'm We chief of water a

in from where business we So organic why infrastructure were. we're in probably doubled growth we our encouraged is

solely it's for really concentrating think I business on growing this Now our internally.

Jeff Martin

terms funding and particular resolution, local And Great. state in curious what of trends? with outside update noticing if one you're give budgets on then and any project an continuing could just of but us seeing you you're the level, probably

Dickerson Wright

we is office, D.C. we've the portion and the for Federal But now. of and been working Geospatial that our continuing impacted resolution. has was in impacted -- department just Embassy -- the -- Defense. a Washington from mostly been was Well coming the from government, they're our work, by which on I that business of by Department trend expanded federally is see and work up that's picking significant Arlington, so

The both on had about budget, earlier, But We're area. growing estate and commented rates. those transaction see that's delays. dependent $XX we're dependent dependent, they're Alex, not their properly, very side on but anything bill, we're interest the X. is year seeing I dependent then Everything million infrastructure rates. an interest but on seen much business. think on our exceeding any of federal of doing they we're X interest areas I significant And the of and real was very where in I most a as not significantly that commercial have think very it that they And are not rates our what on maybe impact, that we

saw that We we So lot Ed's presentation, I cash things of as flow. borrow out a money. don't of think do you in

affected on Alex, cash interest things as to the of estate on other maybe you out don't we see? want not you what's on real expand lines and to of many have with credit. what rates, to But maybe We going flow. as comment do we're try any firms transactional So are group,

Alexander Hockman

Yes.

really And real nice And estate comments, offer. the a they I So my as and very quarter-over-quarter that we the for that, transaction there's stabilization. transaction services some adjusting to what demand we're in interest a seeing group. as think, a is blown seeing projects estate there's I said it's growth our real turnover, rates lot in of combination of

Jeff Martin

revenue number acquisitions the sequent One $X.X of total that last Ed, But million Do of if were for up year. number a could. have year-to-date for gave year? for the this you closed I acquisitions QX Ed, the end you to acquired

Edward Codispoti

you're owned have forma if would this I Give me ]. owned in million, revenue -- you have had that. from have quarter. don't everything one $XXX had talking for forma pro had number. I the second. been quarter. would a That we the that been day XXX if do if one them, of [ as full could We tell have about pro that I

Operator

Kusswurm comes your with the And question of line Sam next from William Blair.

Samuel Kusswurm

A budgeting were quick one, think, for year. second. $XXX Geospatial business for be, the circling for to I million just this back a know to I you

that we've is still a just target XXXX? everything for good Given discussed,

Dickerson Wright

can Dan, to I'll I from expect But more defer to budget. we're don't to the degradation any adjustments say we $XXX say. seen not expecting a have haven't maybe Yes. -- million. that Dan, we you but I the that think

Dan Levine

had comments nice side, coverage with on have as number. got -- to that Confidently, No. to did some to even we that I year. really the going nice that Federal We've continue some helps I'm the well. as we've for And on the yes, sticking grow. mentioned that's my commercial in And delays, some more

So yes, that we're number. confident of

Samuel Kusswurm

that power of We to here stake sort high think demand growth is trying We is way grid, reduce to know to area we're of underground of a trying Good in service. business. a while to the this to this to a the guess improvements? as raising I Maybe and hear. all from cables. of been improvements you Services operations, funding pivoting was sell funds Utility little maybe a Utility to lack to or the think type at type if Great. your other this PG&E over for about what the hurdle as wonder spending, like utilities prioritizing saw do their rates make they're has bit such

Dickerson Wright

based damages they've had looking on they're that prioritize associated fire that number with think the to, the this I past. in one, just risk

have absolute the undergrounding, that it or an they great. that not recognize it's hardening think issue to it's because So is there's risk addressing fire face, of they whether that focus an too strategic that I the

Operator

from comes of the David question Marsh with next line Your Singular Research.

David Marsh

at I quarter. level start the in higher the we bit of P&L, if could. terms want It's to Congrats at on way look things a year. little good of a a the to

sense doing I right that into that gross math that, But came you of quarter. margin. Or little takes it puts in there's a for -- were a wanted little lot than the my higher I'm XX% higher if is to quarter? the see around of a relative know go get you the that It Just and for perhaps. looks just I a where like you XX%

So high of sustainable at there? a that Or year balance the a relative expect level little a that's this print actually. we eyes point? would pretty compression the in Is to your

Dickerson Wright

suspect that forward. there's say better Dick, that This and acquisitions, go I XX%, then than we to be been affected as roles. A immediately always just of let has don't watching and number, we a is lot We margin integration and the we others. really duplication people of Ed -- margin. if our cut expect do that gross have off. a that, I'll the would for you by We And been time when

affect person. IT, may on normally consider we acquisitions, would may They that gross have things margin. have can cost, a the they may person. have and that So have finance may the they resources can They duplication affect human a some

call teams the become don't margin cost anticipate gross side we and these more side margin they see or of But but services the one. be of it's as above. and it, Ed, improving. gross the these as real So integrate to we we continue office, may acquisitions the pressure the I XX% a us, our we with mature have pressurizing or invoicing you on we do of anticipate should what the just support what some -- that back duplications the

Edward Codispoti

the like XX%. said, No. was that. you I And first quarter would agree with

believe. I I XX.X%, that So could confirm

not unreasonable. that probably in full trending. XX% be XX% is to year, that's how We'd the For range somewhere been we've

our that's So expectation. what

David Marsh

would P&L, pretty year-over-year some part the get super there, the just increase really there taxes ranges, Are And out? you we salaries on That's pressure just in in going the to other helpful. have just are you payroll G&A. of Or of is for then any below to with that this we're -- good the fall one-timers type year? of here expect live that to inflationary there rest kind

Edward Codispoti

coming VIS just an in other geospatial in, Axim the year Well, year-over-year, had in April. remember February come on acquisition the basis, when as-reported you at you that and of last look

-- did acquisitions throughout we those of all first quarter in So last the all other weighted and you into that not this quarter, have year. those year's both fully with the along first

a acquisitions, seeing those you're that weaning are some integration of operations. really, along integrate those the here is with we geospatial costs result of increase the out we as ourselves So of

David Marsh

to acquisitions. perspective? just again? then should opportunities? acquisition I to of that kind be how And forward? flow, Got it. Got more little you guys other for look Or lastly priority bit which generally, to continue debt just from it. guess, manage an type of you going me, debt what you confirm or for you reduce those would the take a do level EBITDA did And make Would first generate the of cash on you debt Or

Dickerson Wright

] many with Well, I'll low understand, many, the Xx is that that you as [ very a I unlevered. I terms certainly can leverage debt. start everything [ We've be this, but me is -- firms as had answer think EBITDA which ], to X.Xx look at X.Xx But can and at Ed go and to let threshold. a need high will

So not overlevered. think that be we do to we want

tremendously would happen money, we where we're EBITDA to the receiving opportunity does sure that would we borrow great impact want to not if make have our a load. we So debt

we include want now, if at right earnings have to would for we a presentation, leverage, -- be we do and low slide our to be So look on borrow we cover If acquisitions. money, continue opportunities that that that. you to the levering of point it's to last going on

Edward Codispoti

to And going flow we the absent M&A And possible. through to to which around. down that's expectation. to our pay Dick. they that, with when free debt agree cash any predict come the would cycle think extent going We're opportunities, use I I they're can't really and

Operator

question line comes from final your Feniger America. of Michael Bank of the with And

Michael Feniger

below it still of just our robust areas you we're what kind are than that growing flagged a for geospatial double kind areas, the at do seeing digits. I'm X%? areas we curious, are geospatial? that Is see obviously, growth pace some organic of U.S. at growing flagged rate-sensitive where of What like growing areas less

Dickerson Wright

start Well, I'll with.

company. at largest segment look Infrastructure group, you it's the of the If our

at the overcome growing to of have even start-up LNG. me, encouraging, we was I'm So when of to very lack X%,

that were offshore I infrastructure we and ocean has on in also year if concentrated group, been a you the support under very that would and of if that together, now mapping, we quickly we X. services for where so say wind those were But our in growing significantly And put moratorium. very it's all that's last exclude

our Group very grow and services, to seem they than that. when their business, to combine much DOT utility grown But business our Geospatial support The faster strong. they independently and has

their the really where And domestically there areas X of from amount the base. or are presentation to strong although I we're look have But and that LNG we those and a growth, lack in we infrastructure downturn our consideration really gave growth. take so you pure business a a and think organic then low offshore. percentage-wise at internationally, downturn are organically, looking -- in tremendously So you business volume farm a it's our growing if for saw Ben market growth in wind

still we other than but -- at that, grew -- So X%. including that about

Michael Feniger

just just Helpful. be Any And a more geared data help the of pipeline? just materially? on rest up if it the multiples -- when helpful. there more moving to is there year done there the and digesting is follow-on one in to subscription is pipeline, Are that, is the these would centers, Or we more there of the integrating acquisitions think the year-to-date, And deals announced? areas?

Dickerson Wright

say, many at is to like work. I'd people What Mike, play M&A

think you really to resources. I devote have

X have M&A consent full-time [ and they ]. we people So

we end say have probably out look don't there. this have can we're doing we'll any maybe we always companies, we let's and now opportunities we're X that So looking -- say or at right one at X. I -- at And up time, area. XX

opportunity I looking at at looking at opportunities. to we continued But you the really leave in But in areas a infrastructure our business. And at though, Right work we're -- now, at in honestly to significant for opportunities high-growth to services. new in it. area. supplier data look the geographies have were utility or center Let's it's that the that area, looking M&A people business, and we're

I we -- that only to do part do people X as M&A to time say, that, to are us give there. devote and full And we so one it's opportunities time out And work.

Michael Feniger

some about think Great. updated how And just great lastly, color to you guidance, the Difficulty]. on provided [Technical

Edward Codispoti

Mike. Sure,

conversion rate. that standpoint, It rate to conversion close a a conversion was from XX%. around So XX% was QX in

then ruling we're deduct XXX sorry, to amortize there's the us have timings (d) we're we about capitalize As capitalize And in the -- expenses R&D tax heard in unable talk and payments. and forward, you've them them that's or we that IRS where particular, to past around move different unable to them.

more But cash doesn't the X having over years. from affect until levels -- years, tax next of a X pay timing a so it's than of we we're flow all effective perspective, And to the that's rate. what would over normally out more that thing our

part And those so over remaining the might number year, the that tax of payments -- increase.

that. to had And expect to the I say, predict so somewhere high if rate range and to between would be XX% I XX% conversion XX%, try

in I he got And think back line.

So.

Operator

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

Dickerson Wright

you, -- about a to would to we thought centers. let you, listening in engineering you Okay. focused wanted we spoken that and an also competitors. about nexus that be to data what really I we've so that are I that to in operator. just and we ongoing lot everyone, profitability good Well, are for have Thank thank bring mention it not projects today. growth our But Geospatial, a with on some can technology our know engineering to lot have edge a we projects can that

bring in get work. a their I in we are theme services really it and won that as with working how geospatial storm water continuing mentioned do so L.A. technology support you monitor some project think audiovisual to won Public look also our we growing we but So of the people the of have engineering to And seen [indiscernible] Department a We've at how growing a of we that a the we've growth. DOTs Washington, to states, won view -- release. focus that -- water use. Also, very I County, state these areas to our profitably. significant significant the the just that it's State nexus monitoring good reason University mention water for also the just won And wanted internationally. just is a wanted I We noteworthy Department The projects Ecology the very I project Department to the Ecology, typical Works, quarter, the strong that and and business, significant domestically during project of in we audio-video. us won to is

quarter, So you. but good had first We thank very the I that's beginning. a to just want

have thank that work do, want We I helped quarter to to and results. to listening in, thank produce want I and first those everyone everyone for

again you we the I'm see And end And forward. the to going about so quarter. speaking we'll now what of at be second encouraged

So I thank gave appreciate the everyone. you, time us. you

Operator

this thank we your And Ladies you gentlemen, and for today's participation. concludes call.

disconnect. now may You

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