NV5 Global, Inc.

Ladies and gentlemen, good afternoon, and thank you for participating in today's conference call to discuss NV5's financial results for the fourth quarter and full year 2023, ended December 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 Harad, COO of NV5, Dan Levine, President of 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. You may begin.

Thank you, operator. Welcome, everyone, to NV5's fourth quarter and full year 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. These are based on management's current expectations and are subject to risks and uncertainties. Factors that can 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 fourth quarter 2023 comparisons are being made against the fourth quarter of 2022. And any reference to full year 2023 comparisons are being made to full year 2022. In this presentation, NV5 has included non-GAAP financial measures as defined in Regulation G promulgated under 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 reconciliation of non-GAAP and GAAP measures is included in the appendix to this presentation. 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 fourth quarter and full year 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. 2023 was a year of positioning NV5 for profitability and growth above industry benchmarks. In 2024, we will focus on three specific segments of NV5 for continued growth and profitability. Infrastructure has focused on organic growth with the initiatives to place our key most senior people with direct access to our clients. Our geospatial segment has more than doubled from 136 million in 2020 to a budget of over $320 million in 2024. We will diversify our offerings to include additional areas of the market, further developing our software, and reoccurring revenue offerings. We anticipate further growth of our building technology group, both nationally and internationally, through organic as well as M&A growth. Let's turn to page five of the presentation deck that you have been furnished. As you can see, we grew revenue and earnings over full year 2022. When comparing the fourth quarter with the fourth quarter of 2022, we increased our revenues, net income, EBITDA, EPS, and cash flow over Q4 2022. However, we cannot rest on past accomplishments. We are providing initiatives and incentives for growth in 2024. You will notice a list of these initiatives and incentives for 2024 growth on the right-hand side of of this slide. We are also realizing a resurgence in our real estate transaction business, owner representation business, and our environmental service offerings. Let's now turn to page six, where I mentioned earlier that we have positioned our three major operations with a focus on organic growth. Our building technology group will expand into new markets for data center commissioning. We will further invest in human and technology capital to expand areas of building and technology services. We're particularly interested in improving the organic growth in 2024 of our infrastructure group by placing technical experts deployed to be in front of our clients. We've improved and accelerated the recruiting process to fill open positions faster, but also to enter new areas for our services. A portion of our corporate budget will be focused to fund new initiatives. Our geospatial group has grown dramatically from 136 million in 2020 to a budget of over 320 million in 2024, with 11% of this growth being organic in 2024. We will focus on strengthening our analytical capabilities by expanding our software and reoccurring revenue model. We have also strengthened our data acquisition capabilities of our geospatial business with capital expenditures. Please turn to page seven, where we will discuss two specific acquisitions that will help grow NV5 in 2024. CHW was acquired in January of 2024 to expand our infrastructure platform in Florida. Their 130 employees will be fully integrated into our existing Florida operations and strengthen not only our existing survey and transportation capabilities, but will also introduce NV5 to four new geographic locations. We also purchased technical design services in the fourth quarter of 2023. This acquisition supports our rapidly growing building and technology group. They bring technical expertise in key areas, including aviation, government, finance, and healthcare. We've made other changes in 2024 to ensure the success of A5, not only now, but in the years to come. Please turn to page eight. In 2024, I will step up to the executive chairman position And reporting to me directly will be Alex Hockman as co-CEO, having responsibility for our infrastructure group. Ben Harad as co-CEO will be responsible for all building and technology operations, both domestically and internationally. Dan Levine as president of our geospatial group will be responsible for all geospatial operations. Let's turn to page nine and hear from Ben as he provides a building technology update and tells us of the opportunities for 2024.