NV5 Global, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss NV5's financial results for the third quarter 2023, ended September 30th, 2023. Joining us today are Dickerson Wright, Chairman and CEO of NV5, Edward Kodispody, CFO of NV5, Alex Hockman, President and COO of NV5, Ben Harod, COO of NV5, Kurt Allen, Senior Vice President, Geospatial at 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 NV5's third quarter 2023 earnings call. Before we proceed, I would like to notify all participants that today's presentation can be found on ir.nv5.com, and remind everyone that today's discussion contains forward-looking statements about the company's future business and financial performance. Factors that could cause actual results to differ materially from these statements are included in today's presentation slides and in 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 third quarter 2023 comparisons are being made against the third quarter of 2022. In this presentation, NV5 has included certain non-GAAP financial measures as defined in Regulation G promulgated by the Securities and Exchange Act of 1934 as amended. The non-GAAP financial measures included in this presentation are adjusted earnings per share and adjusted EBITDA. 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 investor's section of the company's website. You may also find today's presentation, which will be referenced during this call, on the investor's 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 Kodaspody, Chief Financial Officer, for a review of the third quarter 2023 results. Rickerson Wright will then provide closing comments before we open the call for all your questions. Rickerson, please go ahead.

Thank you, Richard, and thanks to everyone for joining us for today's call. The third quarter results exceeded analyst consensus. Due to the timing of acquisitions and project delays, our full year forecast may vary from original guidance. The results consisted of organic growth from our existing business. Despite headwinds caused by interest rates to our construction, and transaction real estate service lines. These two service lines delivered negative growth in revenue and EBITDA for the market, although we have begun to see improvement in these sectors. Last quarter, I spoke concerning two initiatives to promote further organic growth in our core business markets, particularly transportation and water resources. Perhaps an update from then to now. We have strengthened our recruiting organization to fill project needs and to train our people on all service lines of NV5. Let's now turn to slide five where we will discuss our accomplishments for the third quarter of 2023 and to discuss our growth momentum for 2024. NV5 grew 17% in quarter number three of 23, over quarter three of 2022. This growth was comprised by a combination of organic growth and growth from earlier acquisitions. These specific areas of growth include geospatial, despite some federal project delays in 2024, and also our buildings and technology sector growth was driven by clean energy, data centers, and audio-visual support for international and domestic projects. Infrastructure overcame degradation in interest rate-sensitive businesses and has driven our recent growth with contributions of our growth initiatives through Project WINS. Let's now turn to slide six where we will highlight our building and technology accomplishments and opportunities. International mission critical opportunities continue to grow, and we had a total growth of 44% and 12% organic growth in the service line in Q3 this year over Q3 of 22. This continues to be driven by increased demand for our cloud access for smartphones. We anticipate the acquisition of red technologies will further extend our growth. We are seeing growth in clean energy and technology services as well as international design projects. Ben Arad is responsible for our buildings and technology growth in our international businesses. I would now like to ask Ben a few questions. Ben, the international group has really been growing organically. What is driving this growth? As we will mention in a moment, we recently did an acquisition in Singapore of Red Technologies, and tell us what they are doing.