Ladies and gentlemen, good afternoon, and thank you for participating in today's conference call to discuss NV5's financial results for the first quarter 2024, ended March 30, 2024. Joining us today are Dickerson Wright, Executive Chairman of NV5, Edward Codispoti, CFO of NV5, Alex Hockman, CEO of NV5 Infrastructure, Ben Heraud, CEO of NV5 Buildings and Technology, Dan Levine, 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 first quarter 2024 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 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 first quarter 2024 comparisons are being made against the first quarter of 2023. 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. 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 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 will also be 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, Executive Chairman of NV5, before turning the call over to Edward Codispoti, Chief Financial Officer, for a review of the first quarter 2024 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 for joining our call today. We are off to a great start in 2024. We are pleased to report that the first quarter results reflected strong organic growth, profitability, and increased cash flow. Our infrastructure group, the largest segment of NV5, delivered strong growth in the quarter. This was a result of expansion into new geographies and service lines and the adoption of technology to provide accuracy, efficiency, and services over wider geographies. The second largest segment of NV5 is our geospatial services. Once again, they produced double-digit organic growth and EBITDA of over 20%. We have expanded their services to departments of transportation and utilities to not only increase geospatial growth but allow NV5 to have complementary technical additions to the traditional services provided. Our buildings and technology group has become the leading provider of engineering services for data centers. We have teamed with computing chip and software providers to support the tremendous growth of data centers, particularly international operations, for Western clients. The clients have committed to investing an average of $300 billion each year over the next five years to address the AI and data center demands. The growing demand for energy has pressured the existing utility delivery grid, and NV5 has been asked to provide engineering service and technical support to provide greater efficiency in the energy delivery model. NV5 is well known in the space. In fact, we know of no other firm doing as much work in this area. We'll speak later about acquisitions completed in quarter one of 2024 that will densify our international footprint and technology, densify our infrastructure group, and create a greater nexus of synergy of our geospatial group for our traditional Department of Transportation Services. Let's turn to page five, in the presentation deck that you have been furnished that will document the quarter 1 2024 achievements of NV5. You will see that we have experienced organic growth of 8% for quarter 1 2024. Our total growth exceeded quarter 1 2023 by 16%, and our gross profits were 18% greater than Q1 2023. Another important metric is cash flow. Our cash flow from operations improved 73% in the quarter versus quarter 1 2023. Our growth was a result of the expansion of our data center services and our DOT and infrastructure growth initiatives, all of which have created a bridge for our geospatial offerings. We entered new high-growth areas in all verticals, and we densified our existing platform through acquisitions of three key segments of our business. Please turn to slide six. As you can see, our very conservative backlog, which represents a rolling going forward for the next 12 months, increased from $802 million in Q1 2023 to $838 million in Q1 2024. This backlog includes awards of note, including $65 million in the Department of Transportation Services, $13 million in data center wins, $23 million in infrastructure awards, and $13 million in utility service wins. Please turn to slide seven, where we can speak of actual accomplishments as we create the Nexus of Technology and Engineering to deliver faster and more comprehensive services to our clients. We have highlighted on this page five areas where this technology can be increasingly applied. I spoke earlier of data center and mission-critical services that we are currently providing to all the major technology clients. We have teamed with suppliers of chips and software, of which many are familiar names, as we provide engineering, commissioning, IT, and MEP energy delivery services to this market. NV5 has been the leader in improving the sustainable infrastructure delivery. We have been a major contributor in developing the Envision standard along with the Digital Twin and BIM services to provide a better delivery of infrastructure needs. The demand for more electrical power delivery has increased dramatically worldwide. NV5 has addressed this need through tech-enabled and engineering services referred to on this page. Dan Levine will speak more specifically later in the presentation on geospatial data and software to improve delivery of our services. There continues to be increased demand for clean energy and decarbonization, and NV5 has addressed this on this page. We will make specific presentations in each of these segments. So let's begin with infrastructure. Alex Hockman, our CEO of Infrastructure, will speak of our accomplishments in the infrastructure segment. Alex, please go ahead. Thank you, Dickerson. Please turn to slide eight. Our 2023 investments to accelerate organic growth and the key leadership changes in our Southeast and Pacific Northwest businesses are resulting in industry-leading metrics. According to the 2023 census, Florida is home to four of the nation's top five fastest-growing metropolitan areas. The CHW acquisition that we completed in January has us well positioned to take advantage of these growth opportunities to meet the demands of our urban, suburban, and rural communities by offering a full array of civil engineering design, surveying, transportation consulting, landscape architecture, and recently added geotechnical capabilities in North Central Florida. We expect to increase our organic growth and profitability through the region. The acquisition of Fluhrer Reed expands our structural engineering services throughout North Carolina and the Southeast. Located in Raleigh, North Carolina, they are well situated to take advantage of the unprecedented growth in the Research Triangle Park area and the cities of Raleigh, Durham, and Cary, which have the 10th fastest growth rate in the U.S.. Our California infrastructure group was awarded more than $80 million in new contracts in Q1, of which over $65 million was related to transportation projects. These awards were directly related to the National DOT Growth Initiative launched in 2023. We are seeing a similar trend throughout the U.S. as federal state, and local agencies are responding to the demand for infrastructure improvements. As we have in Florida, we anticipate strong growth and profitability for our infrastructure group. Our real estate transaction services have also rebounded well with significant organic growth quarter-over-quarter, which is due to stabilizing interest rates and pent-up demand for real estate transactions. Our utility services continue to expand because of the electrical grid hardening investments by utilities, and we are also seeing a significant increase in our natural gas services, which provides engineering design to improve the existing distribution infrastructure. On slide nine, we've highlighted some of the technologies that we employ to provide specialized value to our clients. Of particular significance is our integrated and technological solutions that allow us to combine several modalities that ultimately offer our clients and project stakeholders useful and understandable information through visualization. These technologies facilitate the development and ultimately the understanding of proposed solutions to address asset management, designs to mitigate rising sea levels, and large-scale grid hardening projects that are in remote and urban locations, as we combine aerial at-grade and subsurface information into actionable data, resulting in sustainable infrastructure for future generations. Electrical grid hardening continues to be a driver of growth to mitigate fires in the West and protect against storm damage in the East. Electrification initiatives are also driving the demand for additional electrical power delivery to support the conversion from petroleum energy to electricity. From specialized underground design methodologies that reduce underground electrical distribution construction cost and time to geospatial asset management and remote inspection, NV5's implementation of specialized design and technology for transmission and distribution assets contribute to NV5's leadership position in the hardening of the nation's electrical grid. Thank you, Alex. Dan Levine, President of our Geospatial segment, will now speak of our accomplishments in this regard. Thank you, Dickerson. Please turn to slide 10. For the geospatial sector, we had a great quarter in organic growth and EBITDA driven largely but not exclusively by the activity in our commercial sector, which nearly doubled in Q1 2024 over Q1 2023. This growth is a result of our focus on diversification, service expansion within our existing client base to expand beyond our traditional transmission line vegetation management work into more asset management-related work. We have also experienced growth in our bookings in the commercial sector in Q1, signaling strong future performance in this market. Another positive result in Q1 is that our airborne data collection activities were up 6% over prior year, and we have experienced record-setting aircraft utilization each month this year without additional CapEx expenditures. We have achieved a significant milestone this quarter by completing a statewide oblique imagery collection for the state of Kentucky, to date the largest of its kind. We will be continuing to work on the data processing throughout the remainder of the year for the state of Kentucky. During the last earnings call, I spoke about the challenges of the federal government continuing resolution on our federal business. As anticipated, budgets were resolved, and federal dollars are now flowing. Finally, we acquired GIS Solutions out of Illinois in April. GIS Solutions specializes in supporting state DOT GIS needs, including asset management and analysis. This is a key addition to the geospatial business, but more importantly, to the overall NV5 transportation sector strategy. Not only do they bring unique transportation-specific IP to NV5, but the domain expertise and support they provide within DOTs strengthens the connection between our engineering work and our geospatial work. Todd George, who leads NV5 DOT growth initiatives, says, "The knowledge, skills, and position within state DOTs that GIS Solutions brings completes the digital delivery cycle from planning, engineering design, and construction management all the way through geospatial asset management. With this addition of GIS Solutions, we offer full lifecycle management of state DOT infrastructure assets." We'll now move to slide 11. I want to take a few minutes to highlight some of the technologies that we have invested in and the deep expertise we have developed in the industries we serve. Each of these are differentiators in the market we serve and are applied across NV5, not just within the geospatial market. First, we have developed and deployed artificial intelligence, machine learning, and deep learning solutions both internally and externally. Utilizing our AI/ML routines to automatically detect and extract features from our sensor data has allowed us to streamline our data delivery process significantly at volume, with speed, and accuracy. Combining our technology prowess with engineering domain expertise, we see the opportunity to connect our asset management data collection and transmission and power delivery as a direct connection to our engineering design as we help modernize the nation's electric grid, as Alex spoke to. Furthermore, we can deliver these AI/ML capabilities directly as a SaaS model, software as a service model, through our software platform, ENVI, and the ENVI ecosystem. Now, speaking of ENVI and our ENVI ecosystem, this software platform has been a cornerstone of image processing science for over 30 years. We have recently modernized this technology as a hosted solution and as a software as a service licensing model. Furthermore, our addition of workflow automation with ENVI Connect and simplification of the image processing science with ENVI Inform has expanded our offerings and our client base. Next, as recognized premier enterprise developer of GIS Solutions with cloud-based, on-premise, and hybrid solutions, we are able to tie together many of NV5's capabilities using geospatial IT as the connective tissue. This allows us to create the connections of our digital spatial deliveries with other corporate enterprise systems, such as asset management and permitting, elegantly so that they can streamline their processes and systems to operate more effectively. Finally, our extensive library of sensors and acquisition platforms has positioned NV5 as a leader in delivering digital twins. These digital twins are manifested in the smart energy solutions that our buildings and technology group deploys and as part of our digital delivery platform for DOTs. Thank you, Dan. We will now hear from our CEO of Buildings and Technology, Ben Heraud, who will speak of our accomplishments in our Buildings and Technology segment as well as the recent initiatives to expand our technology in this area. Thank you, Dickerson. Let's now turn to slide 12. NV5 has always had a strong focus on leveraging technology to deliver our work more efficiently and remain engaged with our clients for the long term. Our innovative approach to delivering more traditional services in this way sets us apart from a typical engineering firm. Working closely with our geospatial group, we have been actively embedding 3D reality capture and digital twins into our design and existing building services, positioning us to work with our clients along the entire asset lifecycle and drive more subscription-based revenue. Looking to the work we're doing in the data center and AI compute space, our mission-critical team continues to grow at a rapid pace. In Q1, we saw organic growth of 27%. Our data center services include specialized MEP and technology design, installation consulting, energy efficiency, and power delivery engineering. Our international operation is working with almost all of the major hyperscalers on their data centers. We're actively building our teams in existing locations and new geographies to meet the demand of our clients. In the area of clean energy and decarbonization, we're also seeing significant growth. Our clean energy group achieved organic growth of 21% in Q1. We expect this trajectory to continue as governments and businesses invest heavily in decarbonizing the global economy. Working with our clients at the early stage of net-zero planning often drives downstream work for our design and program management groups, and in turn, driving their growth also. Though relatively small in comparison to NV5's overall revenue, these are some key growth areas that are accelerating. In early April, we acquired ASG Engineering, who provides structural engineering, permitting, and compliance services in Dubai. This region is seeing massive growth right now. Our existing operation, which provides MEP and technology services, grew organically by 39% in Q1. ASG brings a new service line to our international operation, and our intent is to bring these services to our other offices in Asia, including our data center clients. Let's now turn to slide 13 to discuss tech-enabled engineering solutions that we are deploying for our clients. As I mentioned previously, our work in data centers has been expanding rapidly. Artificial intelligence computing puts even greater demand on the data center electrical usage and heat transfer. NV5's expertise in airflow and cooling design is helping data centers create the ideal environment for the demands created by AI computing, hardware, and software. In addition, getting enough power to build these data centers is an issue all of our clients are facing right now, and this puts NV5 in a very unique position. Our expertise in energy efficiency and clean energy enables us to unlock captured power load in the data center, allowing for additional rack space. Our expertise in power delivery means we can assist our clients with getting the necessary power to the site. On the clean energy and decarbonization front, our subscription-based energy efficiency monitoring continues to grow, allowing facilities to identify inefficiencies and power spikes in real time rather than waiting for a commissioning event that may be years down the road. Our renewable energy design and program management allows public entities, electric vehicle charging companies, and private sector clients to turn to a single source for permitting, design, and owner representation during the construction. Our predictive energy auditing and decarbonization consulting is helping clients achieve net-zero regulations that are being imposed by the public and private sectors. Thank you, Ben. Ed Codispoti, the Chief Financial Officer of NV5, will now speak of our consolidated financial accomplishments for Q1 2024 and the strong financial health of NV5 going forward. Ed? Thank you, Dickerson. Good afternoon, everyone. If you would please turn to slide 15 of the presentation, I'll review our 2024 first quarter financial results. Our gross revenues in the first quarter grew 16% to $213.3 million compared to $184.3 million in the first quarter of the prior year. Our gross profit was $112.8 million compared to $96 million in the prior year, an increase of 18%. We had a busy year of acquisitions last year, and as a result, our intangible asset amortization increased by $3.1 million to $12.1 million for the quarter. Our interest expense also increased $2.6 million quarter-over-quarter to $4.2 million due to our higher rates and the financing of a portion of our acquisitions. Our operating margins were also temporarily weighed down by the federal continuing resolution, which was resolved at the end of the first quarter, and by the ongoing integrations of Axim and VIS. Please keep these factors in mind when looking at our net income, which was $408,000 in the first quarter of 2024 compared to $5.9 million in the first quarter of prior year. With the federal continuing resolution now behind us, we anticipate that revenues will increase and operating margins will improve as we move through 2024. Our GAAP diluted earnings per share were $0.03 per share in the first quarter of 2024 compared to $0.39 in the prior year first quarter. EPS was based on 15.6 million shares outstanding this quarter compared to 15.4 million shares outstanding in the previous year quarter. Our Adjusted EBITDA was $28.7 million compared to $27.7 million in the first quarter of the prior year, a 4% increase. Our adjusted earnings per share, which excludes the impact of intangible amortization and acquisition-related costs, was $0.66 in the first quarter of 2024 compared to $0.88 per share during the first quarter of last year. Turning now to slide 16, as you can see, we significantly increased our cash flows 73% over last year's first quarter as we generated $19.6 million of cash from operations. This was despite an increase in interest rates. We ended the quarter with $44.8 million in cash and the low net leverage of 1.4 x. Accordingly, we feel confident in the strength of our balance sheet and believe it positions us well for future growth. I'll now turn it back over to Dickerson for some closing comments. Thank you, Ed. As you can see in the presentation, NV5 had a very strong first quarter 2024. Let's now turn to slide 18, and I think what we're doing deserves a closer look. So we want you to ask these questions as you look at anyone in our space doing the work. Do they have a history of profitability? Do they have 40 years of success as a consolidator of engineering firms? Are they generating a strong free cash flow? Is there a strategy for acquisitions? Is there an integration that results in improvement of both the target and the consolidated company? And is there organic growth? The sixth thing to really measure a company by in a closer look is what is the leverage? Are the acquisitions being done out of the profitability of the acquirer, or are they taking on more debt or leverage? Then finally, is there a scalable support services that furnishes the things that helps a company provide additional services? So if we ask these questions of every company we look at, we feel that NV5 is going to fare very well. Therefore, the guidance that we are increasing the guidance for 2024, and as you'll look on the right of the page, we will increase the guidance to $937 million-$942 million for gross revenues, and the earnings per share on a GAAP basis from $2.87-$2.93 a share. And then adjusted earnings per share will have a guidance of $5.05-$5.11 per share. Ladies and gentlemen, that concludes the prepared remarks, and we will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, it is star one if you would like to join the queue. Your first question comes from the line of Chris Moore with CJS Securities. Your line is open. Hey, good afternoon, guys. Thanks for taking a couple of questions. Great start to the year. Maybe we'll start with geospatial. I mean, 2023 was a good year for geospatial. It feels like for a few reasons, things probably weren't even as good as they could have been. Moving forward, can we talk a little bit about expectations for margins for this business versus the core business and talk about kind of organic growth versus the core business here? Okay. Sure. This is Dickerson Wright. I'll start, and then for more specificity, I'll defer to Dan Levine, who's the president of our geospatial group. Thanks for the questions, Chris, and thanks for listening. The geospatial group, I think we feel very encouraged about what is going on. That group uses capital equipment quite a bit, and you'll see that we're under budget in growing that. So we think that's going to grow with higher profitability. We were really delayed by this continuing resolution. So what you see in the first quarter, the third month of the first quarter really made up a tremendous amount of growth and profitability. So we're encouraged. We think that the profitability will climb with geospatial as the year goes forward because I think we now are off to a very good start now that a lot of the federal projects have been funded, and we're seeing some significant and what was very encouraging to me is this nexus between what we're doing on traditional the Department of Transportation work and what geospatial can bring to us. I think Dan briefly mentioned the acquisition of GIS that is currently working for Illinois DOT and the Florida DOT. We think this is going to have a tremendous advantage for us and give us a technical advantage. We really want to be recognized for the work that we're doing in geospatial, but not just a standalone situation, but how it really fits in with our core businesses, services, and all of the other services. Hopefully, in the presentation, that was made clear. Dan, maybe you may have some thoughts or what you feel is the outcome. Yeah. Thanks, Dick. I do see our profitability will be increasing, and we're starting to see that now. To Dick's point on the last slide on how to measure ourselves against the rest of the market, we are starting to absolutely see some synergies across the two well, the three components, the existing NV5G and then VIS and Axim joining last year. Those synergies are starting to be realized and showing themselves now on the bottom line. Got it. Appreciate that. I mean, I had always looked at geospatial, right or wrong, as the kind of highest margin business at NV5. Am I looking at that accurately? Well, in the business, there's always some operations that seem to be more profitable. In a fair measurement, most of our other business is based on EBIT, where there's not a tremendous amount of depreciation amortization. I think we benefit with geospatial because we're judging everyone on EBITDA, where they have the most equipment and depreciation. But I think I'd also look closely now. We really are encouraged about the profitability of our data center business and our business that really has distributed some recurring revenue across the board for all of our businesses. So for now, if you're measuring on pure EBITDA, geospatial gets the benefit of that. But as far as pure profitability, all of our sectors are doing better. And I would look now. We're very encouraged about what will be going with our data center work. Got it. That makes perfect sense. Maybe just my last one. I mean, your business model has been certainly evolving over the past couple of years. You talked a little bit in the prepared remarks on subscription-based offerings. Just trying to get a sense as to kind of what percentage of revenue that comprised in 2023 and more importantly, is there a goal there as a percentage of revenue over the next three to five years? Dan, let me take a stab at that, and then I'm going to also, again, defer to Dan. The VIS acquisition that we recently made is almost 80% of recurring revenue. That's all software, and that's revenue that is constantly is not fluctuating from month to month. It's a continuing-based revenue. But that's also a shift that we're making in what we're doing in our building technology group, particularly with what we're doing with the audiovisual group. So as a percentage of the whole company, it's probably around 10%, but it's really focused on work that we're doing in both the data center work or subscription-based revenue software work that we are doing with the VIS acquisition from L3Harris. But Dan, maybe you have some thoughts. Yeah. And with intent, the VIS group developed two new products over the last few years, the ENVI Connect and ENVI Inform, which are cloud-hosted solutions with specifically a software-as-a-service licensing model. And that's one of the growth areas we expect on that software. That's now a modern solution compared to the baseline ENVI, which has been managed and developed over the last 30 years. So this is a new market for us and a new licensing model, and that's where we expect to see the growth recurring. Got it. Very helpful. I'll jump back in line. Thank you. Thanks, Chris. Your next question comes from the line of Rob Brown with Lake Street Capital Markets. Your line is open. Good afternoon. Thank you for congratulating on all the progress. Just kind of going back to the data center market, could you give us a sense of how much of that is your business and where you're seeing kind of cross-selling opportunities with some of the other things you're doing and just a sense of the growth path in that data center business? Okay. We're a bit sensitive about that. I want Ben to speak specifically in what we're doing because the majority of the work that we are doing internationally, it has been focused on data center. We work for clients that you're certainly Western clients certainly know the names of, but we just can't mention my name or specific location where that was going. I was just in Singapore where a very significant software client that we know, maybe the largest in the world, we met with them, and they outlined their growth and what they're going to be doing as far as data centers. But all of the work that we are doing internationally is for well-respected and well-known Western clients, but unfortunately, we can't name specifically about them. But as far as the growth of that market, we're very encouraged. But I'd like to maybe have Ben comment. He happened to be with me on our trip. Maybe, Ben, you can mention how you feel about the data center work internationally. Yeah. I mean, both internationally and domestically, we're excited about it. The majority of the work that we're doing right now is international, but we're seeing that come domestically now, sort of cross-selling through these large clients that are actually Western clients. So I think as a percentage, we'll see the revenue grow on the U.S. side here quite quickly over the next 12 months also. Just maybe, Rob, an added comment. There is a tremendous strain on the grid and energy producers because of data center work. In fact, in the U.S., there has been some slowdown or moratorium on that as the energy generators tend to get permitted in a long-term process. The clients that we have internationally don't have those constraints. They're doing an awful lot of these things much quicker. So I think the only constraint that we're going to have domestically is the power delivery use for the data centers, and that's becoming a point of concern for the work that's being done in the U.S.. Understood. Okay. Thank you. And then on the M&A kind of activity, I know you've been, I guess, densifying some of your offerings. Is some of the macro things taking place shifted your thinking there, or where's your focus on M&A at this point? Well, we have a pretty disciplined process. The first part of that process is what is the strategy for an acquisition? How will it either support our existing platform? How will it densify that existing platform? And then what profitability will we add to the company? So Rob, this ebbs and flows in certain areas. We think we did a very significant, successful acquisition in infrastructure, two of them this year. We think, though, that we see tremendous opportunities for acquisitions in data center work and energy support work. We think that we see a growing audiovisual market. So there'll be some technology acquisitions, but we see also some significant strategy and use of acquisitions that support our existing infrastructure. So we're very opportunistic. It's where our focus right now is what will strengthen the platforms that we have, what will give us that technical edge that we can deliver our services more profitable and we can grow faster. We're looking for acquisitions that fit that requirement. Okay. Great. Thank you. I'll turn it over. Your next question comes from the line of Justin Hauke with Robert W. Baird. Your line is open. Good afternoon, everybody. Thanks for taking my question here or questions. I guess the first one, I just wanted to understand kind of the organic outlook for the year. So your total revenue guide is up 9%. You did 8% organic growth in the first quarter, but you're bringing on these additional acquisitions. So I guess maybe a way to ask it is, the four acquisitions you've done year to date, how much revenue are you expecting those to contribute to your year, and kind of what's the expectation for organic growth? Okay. I'll start with this and maybe add our CFO can also see what he has outlooked. We separate growth in two categories. One is growth through acquisition, and that is a compounded growth. And then what is the organic growth through acquisition? So we don't combine the two. We feel that acquisitions that we can improve on and we can grow organically is how we measure that. And it's measured in very different ways, but mostly, it's measured so that we can look at each operation individually and look at their organic growth. As far as the growth, we project the same growth, 8% or above, in that area for the rest of the year organically. That does not include any growth that we may have contributed to us through acquisitions. Ed? Yeah. I think when you look at the four acquisitions we've had to date, 2two were during the first quarter. But across all four acquisitions, those are probably at a $40 million run rate when it's all said and done. Of that amount, if you consider the first quarter on its own, maybe $5.7 million revenues came from acquisitions. That should give you a pretty good picture. Okay. Great. Thank you for that. And then I guess the second question is so I appreciate the commentary on the higher intangible expense and the interest expense on EPS. But thinking about the EBITDA growth for the year, I think previously you guys were saying expecting it to be kind of similar to the revenue growth. Obviously, it was a little light here in the first quarter. But is that still the thinking that that would kind of grow in line with revenue this year? And then if so, is the margin improvement that that's implying, is that primarily from the geospatial stuff improving, or maybe just bridge that a little bit? Yeah. So the margin, as I mentioned on the call, there were a few factors that were impacting that, of course, intangible amortization, although that doesn't impact EBITDA, but it does impact our bottom line. But when you look at profitability in the first quarter, it's really affected by the continuing resolution, which, as we mentioned, resolved itself at the very end of Q1. And so now when those resources come back online, it's going to improve our profitability. We also have the ongoing integrations of both Axim and VIS. And there are a lot of synergies. As Dan was talking earlier about those new software products, as we integrate those into our legacy geospatial operations, there are going to be revenue synergies that go along with that, as well as cost synergies that we're in the process of realizing. So all of those kind of put together will expand our margins, or we anticipate will expand our margins throughout the rest of this year. Yeah. And in terms of EBITDA, I would hope that we can get close to a 17% margin or so, 17 and change. The first quarter was at 13.5%, but I would expect it to be higher. Total amount. Total amount, we should be in the $100 the way the guidance is working right now, if we hit those numbers and we don't give guidance on EBITDA, let me be clear, but we would expect to be in that mid-$160 range in terms of EBITDA is what we would be targeting. Okay. All right. Thank you for that. I'll jump back to Keith. Your next question comes from the line of Jeff Martin with Roth Capital. Your line is open. Thanks. Good evening, guys. Dickerson, I know getting back to organic growth on the infrastructure side of the business is one of your primary objectives. Just curious if you could give us an update on progress you've made, what kind of further progress you expect, and over what timeframe. Okay. Thanks, Jeff. We are very encouraged about the organic growth of our infrastructure group. I think their organic growth is about 7% for the quarter. As I spoke of earlier in the fourth quarter results, we have established a number of initiatives to 100% promote organic growth in infrastructure. We have one area where we took a very senior person in our infrastructure group, particularly in the transportation group, and he is devoting his full attention to growing the business with the DOTs, and we think that's a target-rich environment. On the initiative, we took one of our chief operating persons in environmental to really work on growing the rest of the infrastructure space, particularly, and I'm going to mention a couple of things in the concluding comments on what we're doing in water, water resources, and environmental growth, and a number of other areas that are just purely focused on organic growth. So why we're encouraged is I see the growth of the we probably doubled in organic growth in our infrastructure business from where we were. Now, I think it's solely for our really concentrating on growing this business internally. Great. And then outside of the continuing resolution, could you give us an update on what you're seeing in terms of budgets and project funding? It was probably more on the state and local level, but just curious if you're noticing any particular trends? Well, a significant portion of our geospatial business was impacted by which is they're working for the federal government, and that has been impacted by the continuing resolution. I was just in our Arlington, Washington, D.C. office, and we've expanded work on embassy work, and that's been federally coming from the department, mostly from the Department of Defense. So we see that trend is picking up now. The federal infrastructure bill, we're not seeing as much of an impact, but I have not seen any significant delays. Everything maybe on the commercial side where we're not that dependent is very dependent on interest rates. And then two of our areas that were very dependent on interest rates was in our real estate transaction business. And Alex may want to have commented on it earlier, but I think that's growing significantly and very profitably. Both of our those two, we're doing about $60 million a year in that area, but I think they're exceeding their budget, and they are the most dependent on what we see, interest rates. So I kind of think that I think that we as you saw in Ed's presentation, we do things out of cash flow. We don't borrow a lot of money, so we're not maybe as affected as many other firms are on interest rates, and we don't have to expand any lines of credit. We try to do things out of cash flow. But Alex, maybe you want to comment on what's going on with the transactional real estate group, what you see. Yeah. What we're seeing is very nice growth quarter-over-quarter in our real estate transaction group. I think, as I said in my comments, it's really a combination of adjusting to the interest rates, seeing some stabilization, and there's a lot of projects that, as they balloon and turnover, there's a demand for the real estate transaction services that we offer. Great. And one thread, if I could, and then I'll cede the floor here. But Ed, you gave the $5.7 million acquired revenue number for the acquisitions year to date this year. Do you have a total number for acquisitions that were closed subsequent to the end of Q1 of last year? I don't have that. I could tell you that if you're talking about a pro forma as if we had owned them for the full quarter, I do have that number. Give me one second. That would have been 200. We would have had pro forma revenue of $216 million if everything had been owned from day one in this quarter. Thank you. Okay. Thank you. Your next question comes from the line of Sam Kusswurm with William Blair. Your line is open. Hey. Thanks for taking our questions here. A quick one, just circling back to geospatial for a second. I know you were budgeting for this business to be, I think, $320 million for the year. Given everything we've just discussed, is that still a good target for 2024? Yes. I can say that we haven't seen any adjustments to the budget. I'll defer to Dan, but I think that we don't expect that. We're not expecting a degradation from the $320 million. But Dan, maybe you have more specifics. No. Confidently, yes. I'm sticking to that number. We've had some nice even with the federal delays, we did have some nice coverage on that on the commercial side, as I mentioned in my comments as well, and that really helps for the year. And we've got some more that's going to continue to grow. So yes, we're confident of that number. Great. Good to hear. Maybe pivoting a little bit here to your utility services business. We saw the utility PG&E was trying to sell stake in their power operations sort of as a way to reduce rates while raising the funding to make improvements to the grid, such as underground and cables. We know this is a high-demand area for this type of service. I guess what we're trying to wonder and think about is, do you think a lack of funds from utilities has been a hurdle to growth at all, or if they're prioritizing this type of spending maybe over other improvements? I think that they're looking to, number one, prioritize this just based on the risk associated with fire damages that they've had in the past. So I think that there's an absolute focus that they recognize that whether it's the fire hardening or strategic undergrounding, it's an issue that they have to face because the risk of not addressing it is too great. Got it. Thanks. We'll leave it there. Thanks. Your next question comes from the line of David Marsh with Singular Research. Your line is open. Hey. Thank you for taking the questions, guys, and congrats on the quarter. It's a good way to start the year. Thank you. Thank you. I want to look at things kind of at a little bit of a higher level in terms of the P&L, if we could. I know there's a lot of puts and takes that go into the gross margin. Looks like you came in around 49%, if I'm doing my math right, for the quarter, or is it a little higher than that, perhaps? But just wanted to get a sense of where you see that relative oh, no. You were a little higher than that, 53% for the quarter. So that's pretty high print, actually. Is that a sustainable level relative to the balance of the year in your eyes at this point, or would we expect a little compression there? This is Dick, and then I'll let Ed and others. We really have been watching the gross margin, and I would suspect that that number, if you say 53%, we expect our margin to be better than that as we go forward. A lot of that has been affected by when we do the acquisitions. There's always a time for integration and a duplication of roles. We just don't immediately cut people off. So in the acquisitions, they may have a finance person. They may have a human resources person. They may have IT. They may have some things that we would normally consider duplication, and that cost can affect the gross margin. So as we continue to integrate these teams and these acquisitions, as they become more mature with us, we anticipate the gross margin improving. I don't see a real pressure on the cost side or what we do, the invoicing side of ours pressurizing it. It's just some of the duplications and what we call support services or the back office, but we anticipate that the gross margin should be 53% or above. But Ed, you may have a. No, I would agree with that. And like you said, the first quarter was 53%, so I could confirm that, 52.9, I believe. For the full year, that's not unreasonable. We'd probably be somewhere in that 51%-53% range is how we've been trending. So that's what our expectation would be. That's really super helpful. And then just on the other part of the P&L, just below there, you get some pretty good increase year-over-year in salaries, wages, payroll taxes, the G&A. Are there any one-timers in there that you would expect to fall out, or is this kind of inflationary-type pressure that we're going to have to live with here for the rest of the year? Well, when you look at the year-over-year, just remember that on an as-reported basis, you had Axim come in in February of last year and VIS, the other geospatial acquisition, come in in April. So you have both of those fully weighted into this first quarter and not all in last year's first quarter, along with all the other acquisitions that we did throughout the year. So really, the increase you're seeing is a result of those acquisitions along with some of the integration costs that we're weaning ourselves out of here as we integrate those geospatial operations. Got it. Got it. Thank you. And then just lastly for me, as you guys generate cash flow, you did take on a little bit of debt to make those acquisitions. Would your first priority be to reduce the debt again, or would you just continue to look for other acquisition opportunities? Or I guess kind of more generally, what type of debt level are you comfortable with from an EBITDA perspective, and how do we manage that going forward? Well, I'll start with this, and Ed can be. Let me answer it in terms that I can understand, which is certainly a low threshold. But I think that you need to look at everything as leveraged to EBITDA, and 1.4 is a very unlevered. We've had 1.2, but many, many firms will go as high as a 5x debt. So we do not think that we want to be overleveraged. So if we happen to have a great opportunity where we would borrow money, we would want to make sure that the EBITDA that we're receiving does not tremendously impact our debt load. So right now, if you look on the last slide of our presentation, we want to continue to be low on leverage, and that would include opportunities for acquisitions. If we do borrow money, it's going to be at a levered point that we have earnings to cover that. Yeah. I would agree with that, Dick. And I think absent any M&A opportunities, which we cycle through and you can't really predict when they're going to come around, we're going to use our free cash flow to pay down debt to the extent possible. That's the expectation. Yep. Makes a lot of sense. Okay. Thank you guys very much. Again, great quarter, and good luck for the balance of the year. Thank you. Thank you. Your final question comes from the line of Michael Feniger with Bank of America. Your line is open. Hey, everyone. Thanks for squeezing me, and I appreciate it. I'm just curious. Obviously, geospatial, you guys flagged growing double digits. What areas are growing kind of below that where we see the organic growth at 8%? Is it still some of the rate-sensitive areas? What areas would you kind of flag that are kind of growing at a less robust pace than we're seeing for areas like geospatial? Well, I'll start with I think if you look at the infrastructure group, it's our largest segment of the company. So them growing at 7% to me was very encouraging, even when we have to overcome the lack of startup of LNG. And so that's significantly under where we were last year. And also in our support services for ocean mapping, we were very concentrated on offshore wind, and now that has been a moratorium. But if we put all of that together in the infrastructure group, I would say that it's growing very quickly if you exclude those two. The geospatial group independently has grown very strong, but when they combine their services to support our utility business and our DOT business, then they seem to grow much faster than that. So those are the two areas domestically where we're really looking for lack of growth or lack thereof of organic growth. And then internationally, I think you saw the presentation that Ben gave, and we are really growing a tremendously strong amount percentage-wise organically, although it's from a low-volume base. So if you look at pure infrastructure and their growth, we have to take into consideration a downturn in our LNG business and a downturn in our wind farm business offshore. But other than that, including that, we still grew at about 7%. Helpful. And just when we think of the acquisitions done year to date, is the rest of the year more just digesting and integrating the deals announced, or is there more in the pipeline? And just to follow on to that, Dickerson, if there is more in the pipeline, is it more geared to these data centers, subscription areas? Are multiples there moving up materially? Any help there would be helpful. What I like to say, Mike, is many people play at M&A work. I think you really have to devote resources. So we have two full-time M&A people, and so we always have opportunities out there. And at any one time, we're looking at 10 companies, and maybe we'll end up doing two or three. I can say right now that we don't say, "Let's look at this area. Let's look at that area," but I leave that to our M&A people for opportunities. Right now, though, we were looking at a significant opportunity in the utility business, and we're looking at continued opportunities in the data center business. And in the infrastructure area, we're looking at in new geographies or high-growth areas to supply our services. But you have to honestly work at it. And so we, as I say, devote two people full-time to do that and one part-time to do M&A work, and it's only to give us opportunities that are out there. Great. And just lastly, Ed, you provided us some great color and updated guidance on how to think about. Sure, Mike. So from a conversion standpoint, that conversion rate in Q1 was close to 70%. I think it was around a 66% conversion rate. As we move forward, there's different timings around tax payments. And in particular, you've heard us talk in the past about Section 174. That's the IRS ruling that we're unable to capitalize R&D expenses or sorry, we're unable to deduct them, and we have to capitalize them and then amortize them. And so over the next five years, it's more of a timing thing. It doesn't affect our effective tax rate, but from a cash flow perspective, we're having to pay more than what we normally would until all of that levels out over the five years. And so over the remaining part of the year, those tax payments might increase. So I would expect the conversion rate to be somewhere between the high 40%, say 48%, and 60% range if I had to try to predict that. I think he got back in line, so. Yeah. Okay. That was it, right? Ladies and gentlemen, at this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Wright for closing remarks. Okay. Well, thank you. Thank you, operator. Thank everyone for listening in today. I thought it would be good to mention some ongoing projects that we have that are not. We've spoken an awful lot about geospatial, a lot about data centers, but I just wanted to let you know that we really are focused on our engineering projects and also that nexus to what we can bring in technology to engineering so that we can have an edge in profitability and growth with our competitors. So, during the quarter, I just wanted to mention some areas that we've seen strong growth in the States. In the State of Washington, we won the Department of Ecology, a very significant water project to support the Department of Ecology. L.A. County, the Department of Public Works, we won a significant project to monitor stormwater release. We've also won geospatial projects that have the nexus for monitoring our DOTs' water use. Also, I think it's noteworthy in our audio-visual work; we won a significant project for Cal State University in work with their audio-video. The reason I mention these is just so that you get a good view that we are continuing to focus domestically and internationally. And the theme is really, how do we bring technology to that typical engineering services and how do people look at us as growing the business but also growing it very profitably? So I want to thank you. We had a very good first quarter, but that's just the beginning. We have work to do. And I want to thank everyone for listening in, and I want to thank everyone that helped produce those first-quarter results. And so now we'll be speaking to you again at the end of the second quarter, and I think we should, and I'm encouraged about what we see going forward. So thank you, everyone. I appreciate the time you gave us. Ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.