NV5 Global, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 28, 2024. The company achieved gross revenues of $250.9 million for the third quarter, marking a 5.6% increase from $237.5 million in the same period last year. For the nine months ended September 28, 2024, total gross revenues reached $694.8 million, up from $642.3 million in the prior year.

The gross profit for the third quarter was $129.5 million, compared to $114.3 million in Q3 2023, reflecting a gross profit margin increase to 51.6% from 48.1%. However, income from operations rose to $20.5 million from $14.8 million year-over-year, while net income for the quarter increased to $17.1 million from $13.1 million. Despite these gains, net income for the nine months ended September 28, 2024, was $22.6 million, a decrease of 32.8% from $33.6 million in the same period last year, primarily due to increased operating expenses.

Operating expenses for the third quarter increased by 9.5% to $109 million, driven by higher payroll costs and amortization expenses. Interest expenses also rose, attributed to increased indebtedness under the Senior Credit Facility, which stood at $241.8 million as of September 28, 2024, up from $195.8 million at the end of 2023.

Strategically, NV5 completed six acquisitions in 2024, totaling $65.2 million, which included cash, common stock, and potential earn-outs. Notable acquisitions included Visual Information Solutions and Continental Mapping Acquisition Corp., enhancing the company's capabilities in software solutions and geospatial services. The cash portions of these acquisitions were financed through an amended credit agreement with Bank of America and other lenders.

The company reported a material weakness in its internal controls over financial reporting, particularly related to project revenue controls following the acquisition of Continental Mapping. Management is implementing a remediation plan to address these deficiencies.

As of September 28, 2024, NV5's total assets increased to $1.3 billion from $1.2 billion at the end of 2023, with total stockholders' equity rising to $823 million. The effective income tax rate for the third quarter was (7.0%), a significant change from (20.1%) in the prior year, attributed to increased federal tax credits.

Overall, while NV5 Global, Inc. demonstrated revenue growth and strategic expansion through acquisitions, it faced challenges in profitability and internal controls that may impact future performance.