NV 5 Global (NVEE:BUY) Q2 Revenues increased 62% over the prior year, boosted by acquisitions.
August 15, 2016
By Senior Analyst
- Gross Revenues increased 62% to $55.9 million, the highest for any quarter in NV5’s history. Organic revenue growth was 9% for the quarter, with the rest of the increase coming from acquisitions. Related acquisitions are a cornerstone of the Company’s strategy. The most recent acquisition was Dade Moeller, completed in May 2016, which is now a part of the Environmental vertical within NV5.
- The Company continued to bring new, higher-margin work into all service lines in the second quarter, which resulted in gross margins increasing to 47% from 45% in the prior year and a 12% sequential quarterly increase in backlog to $195.5 million. Backlog increased 67% from a year ago.
- EBITDA for Q2:16 was $6.0 million or 14% of Net Revenues, an increase of 71% over $3.5 million or 13% of Net Revenues for the same quarter of last year.
- Adjusted EPS for the quarter was $0.38 per diluted share, an increase of 23% from $0.31 per diluted share in the second quarter of 2015.
- During Q2:16, NV5 completed an offering of 1.955 million common shares for net proceeds of $47.2 million.
- Our Full Year 2016 estimates show Gross Revenues increasing 50% to $232.5 million and Adjusted EPS at $1.66. We continue to maintain a BUY rating and a price target of $39.
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