NV5 Global, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss NV5's financial results for the first quarter of 2023, ended April 1, 2023. Joining us today are Dickerson Wright, Chairman and CEO of NV5, Edward Cospotti, CFO of NV5, and Richard Tong, Executive Vice President and General Counsel at NV5. I would now like to turn the call over to Richard Tong.

Thank you, operator. Welcome everyone to NB5's first quarter 2023 earnings call. Before we proceed, I would like to remind everyone that today's discussion contains forward-looking statements about the company's future business and financial performance. These are based on management's current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and our reports on file with the SEC. During this call, GAAP and non-GAAP financial measures will be discussed. A reconciliation between the two is available in today's earnings release and on the company's website at www.nv5.com. Please note that unless otherwise stated, all references to first quarter 2023 comparisons are being made against the first quarter of 2022. In this presentation, NV5 has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities and Exchange Act of 1934 as amended. These non-GAAP financial measures included in this presentation are adjusted earnings per share, adjusted EBITDA, and revenues generated by employees. NV5 provides non-GAAP financial measures to supplement GAAP measures as they provide additional insight into NV5's financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance or a substitute for GAAP. In addition, other companies may define non-GAAP measures differently, which limits the ability of investors to compare non-GAAP measures of NV5 to those used by peer companies. A webcast replay of this call and its accompanying presentation are also available via the link provided in today's news release and on the Investors section of the company's website. You may also find today's presentation, which will be referenced during this call, on the Investors section of the company's website. We will begin the call with comments from Dickerson Wright, Chairman and CEO of NV5, before turning the call over to Edward Kodispody, Chief Financial Officer, for a review of the first quarter 2023 results. Dickerson-Wright will then provide closing comments before we open the call for your questions. Dickerson, please go ahead.

Thank you, Richard, and thank you to everyone joining us for this call. The first quarter positioned NB5 to focus on increasing our technology innovation and subscription-based revenue services. We did this through acquisitions, integration of these new acquisitions, capital investments, and expanding our data center commissioning services. Let's begin by going to page five. You will see we required Axum Geospatial, a 340 employee firm specializing in geospatial data analytics. The synergy with our current NV5 geospatial platform was immediate. Axum will use our existing data acquisition assets and services involving aerial mapping. Prior to the acquisition, Axiom was using subcontractors for data acquisition. Axiom was just awarded their largest contract to date, which will involve data acquisition through our existing geospatial business. We also increased our subscription-based revenue with the acquisition of the U.S. Commercial Geospatial Division of L3Harris, known as PHIS. This is a software-based service business that includes 16 patents and involves analytics for satellite geospatial mapping acquisition. All of these acquisitions require a focus on integration. Our time and investments, although not recognized in the quarter one results, will be rewarded through synergy, continuity, and growth in the subsequent months to come. In fact, 36% of NV5 revenue is now technology-based, and 11% of these technology services are subscription-based. Our capital expenditures involving geospatial mapping include a deepwater mapping vessel built to our specifications to support offshore wind farm energy expansion. This is a capability that we had not yet previously possessed. We have also positioned NV5 to capitalize on the ever-expanding data center commissioning design and maintenance service business. Southeast Asia has put a tremendous demand on data centers to support increased cell phone capabilities and use. Please turn to page six, where we discuss our accomplishments in the first quarter. We also are looking forward to future growth and maintain our guidance for 2023. In comparing Q123 to Q122, it is important to understand some key components. We had one less workday in Q123 versus Q122, resulting in approximately $2.8 million less in revenues. We were also plagued with significant weather-related events that delayed projects to later in this year. Our real estate transaction business was negatively impacted by the increase in interest rates. Equipment and procurement revenue for large LNG projects were also recognized in Q1-22. However, overall, we realized profitability above consensus estimates. If we go to page seven, I would like to discuss our recent acquisitions that either took place or were recognized partially in Q1. We previously discussed Axum and L3-Harris, which positions us for higher margins and expands our service offering. However, full revenue for these acquisitions will be recognized in Q2. As you know, our owner representative business is a service that represents a facility owner for expansion or improvements, mostly to existing facilities. We strengthened this service with the acquisitions of DCS and Gaudet Associates in Colorado and Florida. The acquisition of Bromley Cook Engineering further strengthens our construction litigation business. Bromley Cook specializes in restoration litigation of buildings damaged by hurricanes. We will fully recognizing all of the revenue for these acquisitions in quarter two. On page eight, our backlog is healthy entering into the second quarter of 2023. Backlog grew to 802 million, bolstered by key wins in geospatial technology, totaling 26 million, and infrastructure, totaling 22 million. These projects support a stable backlog of non-discretionary services. We will now transition the presentation to our CFO, Ed Kodespody, to provide an overview of our first quarter performance. Ed? Thank you, Dickerson.