NV5 Global (NVEE) has reported 10.46 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $2.27 million, or $0.21 a share in the quarter, compared with $2.06 million, or $0.25 a share for the same period last year.
Revenue during the quarter surged 42.65 percent to $64.06 million from $44.90 million in the previous year period. Gross margin for the quarter contracted 131 basis points over the previous year period to 49.52 percent. Total expenses were 96.06 percent of quarterly revenues, up from 92.60 percent for the same period last year. That has resulted in a contraction of 346 basis points in operating margin to 3.94 percent.
Operating income for the quarter was $2.52 million, compared with $3.32 million in the previous year period.
"Q1 is often seasonally our slowest quarter. We realized organic growth of 6% despite significant project delays due to record rainfall in California, which represents about 35% of our business," said Dickerson Wright, PE, chairman and chief executive officer of NV5. "We increased total and net revenues, net income, EBITDA, and adjusted earnings per share, again growing our backlog through cross-selling among our service lines."
For financial year 2017, NV5 Global projects revenue to be in the range of $302 million to $316 million. The company forecasts diluted earnings per share to be in the range of $1.93 to $2.05 on adjusted basis.
Operating cash flow drops significantlyNV5 Global has generated cash of $0.21 million from operating activities during the quarter, down 89.69 percent or $ 1.82 million, when compared with the last year period. The company has spent $0.39 million cash to meet investing activities during the quarter as against cash outgo of $14.15 million in the last year period.
The company has spent $1.64 million cash to carry out financing activities during the quarter as against cash outgo of $1.02 million in the last year period.
Cash and cash equivalents stood at $33.85 million as on Apr. 01, 2017, up 227.56 percent or $23.51 million from $10.33 million on Mar. 31, 2016.
Working capital increases sharply
NV5 Global has recorded an increase in the working capital over the last year. It stood at $73.94 million as at Apr. 01, 2017, up 71.45 percent or $30.81 million from $43.12 million on Mar. 31, 2016. Current ratio was at 3.06 as on Apr. 01, 2017, up from 2.91 on Mar. 31, 2016.
Days sales outstanding went down to 86 days for the quarter compared with 101 days for the same period last year.
At the same time, days payable outstanding went down to 23 days for the quarter from 27 for the same period last year.
Debt increases substantiallyNV5 Global has witnessed an increase in total debt over the last one year. It stood at $30.84 million as on Apr. 01, 2017, up 243.41 percent or $21.86 million from $8.98 million on Mar. 31, 2016. Total debt was 14.35 percent of total assets as on Apr. 01, 2017, compared with 7.88 percent on Mar. 31, 2016. Debt to equity ratio was at 0.20 as on Apr. 01, 2017, up from 0.11 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 10.55 for the quarter from 48.14 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
