NASDAQ: NVEE NASDAQ: NVEE. INVESTOR PRESENTATION Second Quarter 2014

Transcription

1 INVESTOR PRESENTATION Second Quarter 2014

2 Safe Harbor This presentation includes, and our officers and representatives may from time to time make, certain estimates and other forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, among others, statements with respect to the Company s (i) ability to drive organic growth, create cross-selling opportunities & synergies, improving bottom line performance, growing revenues and maintaining strong backlog, (ii) ability to pursue profitable and accretive acquisitions, (iii) strategy for acquisitions and organic growth, market position and financial results, (iv) ability to build and target higher-margin sector clients, (v) anticipated revenue growth by fiscal year 2016, (vi) ability to invest in human capital, implement process improvement, and ability to drive scalability; (vii) guidance relating to gross revenues by vertical, gross revenues, annual revenues, earnings per share and target EBITDA margins, (viii) ability to increase liquidity, and (ix) other statements of expectation. Words such as expects, anticipates, intends, plans, believes, assumes, seeks, estimates, should, expect," "strategy," "future," will" and variations of these words and similar expressions, are intended to identify these forwardlooking statements. While we believe these statements are accurate, forward-looking statements are not historical facts and are inherently uncertain. We cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and are not guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control, and actual results could differ materially from those presented in the forward-looking statements. Important factors that could cause actual results to differ from those in the forward-looking statements include, among others, the factors described in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of the Company s most recent SEC filings, including the Annual Report on Form 10-K for the fiscal year ended December 31, Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. The Company disclaims any obligation to update or revise any forwardlooking statement, whether written or oral, that may be made from time to time, based on the occurrence of future events, the receipt of new information, or otherwise. 2

3 About NV5 A leading provider of professional and technical engineering and consulting solutions ~700 staff, including ~150 professionals $100M -$107M 2014 revenue guidance $0.82-$ diluted EPS guidance Headquartered in Hollywood, FL 26 offices in California, Colorado, Utah, Florida, Pennsylvania and New Jersey Strong management team with 200 years of combined industry experience Industry and peer-recognized for expertise and quality service Vertically structured around five core service offerings rather than geographically like many competitors Combination of public and private clients offers stability through business cycles 3

4 Investment Highlights Significant market opportunity $641 billion in energy-related CapEx forecast in U.S./Canada Deteriorating U.S infrastructure will require $3.6 trillion of investment by Strong organic growth trends Multi-vertical offerings facilitates cross-selling of our services Public and private sector clients provide stability through economic cycles Rapidly growing; profitable Double-digit revenue and net income growth 2014 gross revenue guidance projects 47% -57% growth over 2013 Proven M&A strategy Provide financial accretion and geographic expansion Fragmented industry, 144,000 engineering firms in U.S. 3 ; robust pipeline of acquisition opportunities Management team s experience Strong, long-term client relationships Local market expertise and professionals with deep knowledge in our verticals Legacy companies have 50+ year track record 1 The INGAA Foundation 2 American Society of Civil Engineers 3 IBIS World 4

5 Common Stock and Warrant Performance Trading Data IPO = 1 common share & 1 warrant (Mar 27, 2013) $6.00 NVEE (Aug 26, 2014) $9.50 NVEEW (Aug 26, 2014) $3.30 NV5 Common + Warrant (Aug 26, 2014) $12.80 Net gain $6.79 Appreciation 113% Valuation Measures (Common Stock) Market Cap (Aug 26, 2014) Market IPO (Mar 27, 2013) $54.0M $25.2M Recently filed $30M shelf registration statement (Form S-3) to: Position us to expand with accretive acquisitions Increase liquidity of our common stock 5

6 Integrated Delivery Platform Organic growth through cross-selling and synergies 26 Offices 5 Service Verticals Infrastructure Civil engineering, structures, transportation, water resources, surveying, construction management CQA Code compliance, forensics, geotechnical engineering, materials testing, special inspections, technical drilling Energy Environmental permitting, inspections, program management, design, surveying Program Management Program management, owners representative, preconstruction services, construction management Environmental Environmental, occupational health and safety, environmental risk management, cultural resources, wetland studies, archeological studies, hydrogeological engineering, environmental permitting 6

7 Diversified Revenue Approximate 2014 Gross Revenues by Vertical Energy 33% Program Management 18% Infrastructure 24% Environmental 6% CQA 19% Excludes any anticipated or future acquisitions. 7

8 Business Goals and Drivers Driving 10% organic growth Investing in human capital Targeting $300M of revenue in 2016; 12-15% EBITDA Margins Pursuing accretive acquisitions Process Improvement and Scalability Targeting higher-margin clients 8

9 Successful Acquisition Integration Infrastructure Pitman Hartenstein & Associates July 2013 Nolte Associates August 2010 Construction Quality Assurance (CQA) Kaderabek Company July 2012 Bureau Veritas March 2010 Energy AK Environmental March 2014 Program Management Owner s Representative Services June 2014 Consilium Partners April 2013 Environmental Air Quality Consulting January 2014 Dunn Environmental August

10 Performance Optimization By implementing operational best-practices, creating synergies and scalability, we have established a successful track record of optimizing the financial performance of acquired businesses Across our portfolio of acquisitions, we have generated organic growth of 13% and bottom line improvement of 33% We maintain an active and robust pipeline of acquisition opportunities 10

11 Financial Performance Summary 2Q13 2Q14 YTD Jun 13 YTD Jun 14 Gross revenues (mil) $17.1 $29.2 $32.7 $48.2 Net revenues(mil) $13.5 $21.8 $26.3 $36.8 EBITDA (mil) $1.5 $2.3 $2.7 $3.8 Net income (mil) $0.7 $1.1 $1.3 $1.8 EPS $0.18 $0.19 $0.40 $0.32 Weighted average diluted shares (mil)

12 Revenue Growth & 2014 Guidance $120 $100- $107 $100 $100-$107 million Gross Revenues + 47% to 57% YOY $ millions $80 $68.2 $60 $60.6 $40 Diluted EPS $20 $0.82 to $0.92 $ guidance Includes the impact of acquisitions completed during the first six months of 2014 as of their respective closing dates. However, excludes any anticipated or future acquisitions for the remainder of

13 Expanding Backlog Total contract backlog was $76.1 million at June 30, 2014 An increase of 38% over June 30, 2013 An increase of 26% over December 31, 2013 $90.0 $80.0 $74.3 $76.1 $ millions $70.0 $60.0 $50.0 $40.0 $55.0 $58.4 $60.2 $30.0 $20.0 $10.0 $0.0 2Q13 3Q13 4Q13 1Q14 2Q14 13

14 Executive Team Dickerson Wright, PE Chairman, CEO & President Ernesto Aguilar, PE COO of Infrastructure Alexander Hockman, PE Exec. VP, COO of CQA Donald Alford Executive VP & Director Michael Rama Chief Financial Officer & VP Richard Tong, Esq. Exec. VP & General Counsel Founded US Labs in 93; completed IPO in 99 and sold to Bureau Veritas in 02 for +$100M. Continued as CEO of BV N. America form and grew revenues from $80M to $300M. Founded NV5 in 09 with same management. Joined NV5 in 14 from Atkins North America, Inc. Held increasingly senior operational roles, most recently VP, National Business Infrastructure Sector Manager, which he turned into a top-performing business unit. Founded Intercounty Laboratories in 85, a provider of CQA services. IL was acquired by NV5 in 03. Director of M&A; responsible for 45+ transactions during his tenure with US Labs, BV and NV years of experience in finance and accounting with publicly-traded real estate and construction companies, including AV Homes from Executive VP and GC of Bureau Veritas from 03-08, heading the company s legal and risk management programs in North America. Mary Jo O Brien Executive VP & Secretary Served in various senior-level HR roles with current NV5 team for 15 years. 14

15 Investment Summary Significant market opportunity $641 billion in energy-related CapEx forecast in U.S./Canada Deteriorating U.S infrastructure will require $3.6 trillion of investment by Strong organic growth trends Multi-vertical offerings facilitates cross-selling of our services Public and private sector clients provide stability through economic cycles Rapidly growing; profitable Double-digit revenue and net income growth 2014 gross revenue guidance projects 47% -57% growth over 2013 Proven M&A strategy Provide financial accretion and geographic expansion Fragmented industry, 144,000 engineering firms in U.S. 3 ; robust pipeline of acquisition opportunities Management team s experience Strong, long-term client relationships Local market expertise and professionals with deep knowledge in our verticals Legacy companies have 50+ year track record 1 The INGAA Foundation 2 American Society of Civil Engineers 3 IBIS World 15

16 Contact Us NV5 Holdings, Inc. Richard Tong 200 South Park Road, Suite 350 Hollywood, FL (954) or - The Piacente Group, Inc. Investor Relations Don Markley or Glenn Garmont (212) NV5@tpg-ir.com 16