NV5 Global, Inc. (NVEE) has reported a 13.39 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $3.40 million, or $0.33 a share in the quarter, compared with $3 million, or $0.38 a share for the same period last year. On an adjusted basis, earnings per share were at $0.41 for the quarter compared with $0.44 in the same period last year. Revenue during the quarter grew 23.39 percent to $60.09 million from $48.70 million in the previous year period. Gross margin for the quarter expanded 181 basis points over the previous year period to 46.02 percent. Total expenses were 90.89 percent of quarterly revenues, up from 89.84 percent for the same period last year. That has resulted in a contraction of 105 basis points in operating margin to 9.11 percent.
Operating income for the quarter was $5.48 million, compared with $4.95 million in the previous year period.
"Our business continues to be solid. Our backlog is strong, and we are reiterating our published goal of $300 million in run rate revenues exiting 2016. We are seeing an ongoing demand for our services at the federal and state level for infrastructure improvements and updates. We also have several acquisition opportunities in front of us," said Dickerson Wright, PE, chairman and chief executive officer of NV5. "Although we experienced project delays in the third quarter, due to a legislative impasse impacting our transportation infrastructure business that has since been resolved, we expect the associated revenue to be recovered after the election when the projects fully resume. Excluding these project delays, our organic growth for the quarter would have been 8%. In addition, we announced the JBA acquisition last week, which gives us entry into international, higher margin businesses with reoccurring and continuous revenues not dependent on new construction."
For fiscal year 2016, NV5 Global, Inc. forecasts revenue to be in the range of $225 million to $235 million. The company expects diluted earnings per share to be in the range of $1.20 to $1.33. It company expects diluted earnings per share to be in the range of $1.49 to $1.62 on adjusted basis.
Operating cash flow turns positive
NV5 Global, Inc. has generated cash of $10.69 million from operating activities during the nine month period as against cash outgo of $0.37 million in the last year period. The company has spent $24.95 million cash to meet investing activities during the nine month period as against cash outgo of $10.86 million in the last year period.
Cash flow from financing activities was $43.86 million for the nine month period, up 76.88 percent or $19.06 million, when compared with the last year period.
Cash and cash equivalents stood at $53.07 million as on Sep. 30, 2016, up 159.55 percent or $32.62 million from $20.44 million on Sep. 30, 2015.
Working capital increases sharply
NV5 Global, Inc. has recorded an increase in the working capital over the last year. It stood at $87.50 million as at Sep. 30, 2016, up 79.84 percent or $38.85 million from $48.65 million on Sep. 30, 2015. Current ratio was at 3.70 as on Sep. 30, 2016, up from 2.78 on Sep. 30, 2015.
Days sales outstanding went down to 75 days for the quarter compared with 82 days for the same period last year.
At the same time, days payable outstanding went up to 21 days for the quarter from 20 for the same period last year.
Debt moves up
NV5 Global, Inc. has witnessed an increase in total debt over the last one year. It stood at $16.16 million as on Sep. 30, 2016, up 17.69 percent or $2.43 million from $13.73 million on Sep. 30, 2015. Total debt was 8.74 percent of total assets as on Sep. 30, 2016, compared with 11.92 percent on Sep. 30, 2015. Debt to equity ratio was at 0.12 as on Sep. 30, 2016, down from 0.18 as on Sep. 30, 2015. Interest coverage ratio improved to 67.59 for the quarter from 63.42 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
