NV5 Global, Inc. (NASDAQ:NVEE) Q2 2023 Earnings Call Transcript

Tate Sullivan: Okay. And then the opportunity with BIM and Digital Twin what is that? Did you refer to that in the Analyst Day as well?

Dickerson Wright: Well, I think I’m going to — if Ben is on the call, I’m going to defend the part of Penta what we see the opportunities with them. And Ben and Alex have been working much closer to that than I have been.

Ben Heraud: Yes it’s Ben Heraud here. Basically with that side of the business we are much more traditional services for example our MEP group. When we go in and do a tenant improvement job we’ll now scan this space using one of the geospatial scanners and create a Digital Twin from that whereas more traditionally we would do that with manual measurements. So that enables us to present a more comprehensive solution to the client and actually set us up for an ongoing contract off the back of what was more traditionally a one-off project.

Tate Sullivan: Great. Thank you for that.

Operator: Next question comes from Marc Riddick, Sidoti. Marc, please go ahead.

Marc Riddick: Hi. Good evening. So a lot of my questions have been answered. I did want to start though, I wonder, if you could talk a little bit about IIJA and sort of how that was initially sort of beginning to show up? Maybe you can talk a little bit about the — what you’re seeing relative to maybe what expectations may have been as to the types of what your types of projects you’re seeing or the types of visibility that might be coming from that and then I had just one other follow-up.

Alex Hockman: So I think the expectation that we had is pretty much what we’re seeing. I think the public expectation may have been that we have a waterfall of projects as a result of the bill. In fact what we’re seeing is the initial start is coming through some of the grant writing opportunities. And as those go into the design phase we’ll be in a position to perform design. When it goes to construction will be there for the project management. So from our expectation it’s basically meeting our expectation.

Marc Riddick: Okay. And then just as a quick reminder so earlier in the year there was the weather impact on construction certainly. And that certainly, wasn’t just something that affected yourselves but many others particularly in Northern California. I was wondering, if you could talk a little bit about how that is — is there expectation for some of that to have been delayed and flow through later, or maybe you can sort of bring us up-to-date on maybe what’s taking place specifically with that market? Thank you.

Alex Hockman: So, many of our projects were clearly impacted by weather. We felt that very strongly in Q1, and what it does is essentially just move the revenue to the right. The projects aren’t terminated. They’re not stopped but they’re delayed and sometimes the delay carried on a little further. And even when the weather is clear there would still be some areas where excavations, for example, had already been done but they are not filled with water. So, there’s a number of ripple effects that happened as a result of severe weather.

Marc Riddick: Make sense. Thank you.

Alex Hockman: You’re welcome.

Operator: All right. At this time, this concludes our question-and-answer session, and I would like now to turn the call back over to Mr. Wright for closing remarks.

Dickerson Wright: Thank you, operator. I think if you see the tagline of NV5, there’s a quote Effort beyond Engineering. What do we mean by that, or what does it mean to be that we want to be beyond engineering. Let me mention a few examples and the reason for that strategy. As the earth’s population increases we must deliver infrastructure and services in a more efficient manner. That is just understood. So our strategy is to have a natural intersection between technology and our traditional engineering services so that we can deliver the infrastructure services that we can help deliver that in a more efficient basis and improve that delivery. So let’s mention a few specific technology and improvements that we make to go beyond the traditional engineering.