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NV5 Global, Inc. has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing an increase in gross revenues to $250,885,000 from $237,545,000 in the same quarter the previous year. This increase is attributed to acquisitions and organic growth in international engineering and consulting services.
Gross profit for the quarter was $129,510,000, compared to $114,264,000 in the previous year. The gross profit margin increased to 51.6% from 48.1%, primarily due to a decrease in sub-consultant services and other direct costs as a percentage of gross revenues.
Operating expenses increased to $108,995,000 from $99,511,000, driven by higher payroll costs and amortization expenses.
The company reported a net income of $17,078,000 for the quarter, up from $13,056,000 in the previous year. The increase in net income was primarily due to higher gross profit, partially offset by increased operating expenses and a decrease in income tax benefits.
Net cash provided by operating activities was $57,111,000 for the nine months ended September 28, 2024, compared to $45,435,000 in the previous year. The increase was due to higher net income adjusted for non-cash items.
NV5 completed six acquisitions during 2024, with an aggregate purchase price of $65,159,000, including cash, common stock, and potential earn-outs.
The company operates in three segments: Infrastructure, Building, Technology & Sciences, and Geospatial Solutions. The Infrastructure segment reported a decrease in gross revenues due to a decline in the LNG business, while the other two segments reported increases in gross revenues.
NV5's Senior Credit Facility had an outstanding balance of $241,750,000 as of September 28, 2024. The facility bears interest at variable rates and is secured by a first priority lien on substantially all of the company's assets.
The company identified a material weakness in its internal controls over financial reporting related to project revenue controls at Axim, a recent acquisition. NV5 is implementing remediation plans to address this issue.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NV5 Global Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.