BWMN

BOWMAN CONSULTING GROUP LTD

Industrials | Small Cap

-$0.04

EPS Forecast

$111.2

Revenue Forecast

Announcing earnings for the quarter ending 2024-12-31 soon
EX-99.1 2 d463413dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Bowman Consulting Group Ltd Announces Q1 2023 Financial Results, Beats Estimates and Raises Guidance

Reston, Va., May 8, 2023 (BUSINESS WIRE) – Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering services firm supporting owners and developers of the built environment, today released financial results for the three months ended March 31, 2023.

“We started the year strong, exceeding estimates and building upon the solid foundation and excellent results we delivered in 2022,” said Gary Bowman, Chairman and CEO of Bowman. “During the first quarter, our net service revenue increased 42% year-over-year, driven both by strong organic growth of 12% and by contributions from the eight acquisitions that we completed over the last year. In keeping with our long-term strategic plan to diversify our revenue, our transportation services market outpaced our other markets with a nearly four-fold year-over-year increase in revenue and a nearly three-fold increase in its percentage of our total revenue mix.”

“New order volume in the first quarter exceeded our goals and we entered the second quarter with a strong backlog and several awards in hand where contracts are not yet finalized, so the revenue is not yet included in our backlog. As such, we remain confident in our ability to continue to deliver growth in 2023 and are therefore increasing our full year guidance for net revenues and adjusted EBITDA,” Bowman continued. “Additionally, we continue to have a strong pipeline of acquisition opportunities. In April, we completed the acquisition of Richter & Associates, a Rockville, Maryland based professional services firm focused on dry utility infrastructure engineering, which continues our ongoing diversification effort to build our power and utility services revenue.”

Financial highlights for the three months ended March 31, 2023, compared to March 31, 2022:

 

   

Gross revenue of $76.1 million, compared to $52.5 million, a 45% increase

 

   

Year-over-year organic gross revenue growth1 of 13%

 

   

Net service billing1,2 of $67.6 million, compared to $47.7 million, a 42% increase

 

   

Year-over-year organic net service billing growth of 12%

 

   

Net income of $0.5 million, compared to a net income of $1.5 million

 

   

Adjusted EBITDA2 of $9.7 million, compared to $7.4 million, a 31% increase

 

   

Adjusted EBITDA margin, net 2 of 14.3% compared to 15.5%, a 120 bps decrease

 

   

Gross backlog2 of $252 million, compared to $173 million, a 46% increase

Business highlights subsequent to the first quarter 2023:

 

   

Acquisition of Richter & Associates, a utility services engineering firm focused on last mile utility infrastructure design; April 2023

Increasing FY 2023 Guidance

The Company is increasing its full year 2023 outlook for Net Service Billing to be in the range of $285 to $300 million and Adjusted EBITDA in the range of $44 to $50 million. The current outlook for 2023 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management will discuss the Company’s acquisition pipeline during its upcoming earnings call.


FY 2023 Earnings Webcast

Bowman will host an earnings webcast to discuss the results of the quarter as follows:

 

Date:    May 9, 2023
Time:    9:00 a.m. Eastern Time
Hosts:    Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer
Where:    http://investors.bowman.com

 

1

Revenue from acquired companies is reclassified as organic revenue in the first full quarter following the 12-month anniversary of closing.

2

Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is an established professional services firm delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. With over 1,700 employees in more than 70 locations throughout the United States, Bowman provides a variety of planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets. For more information, visit bowman.com or investors.bowman.com.

 

Investor Relations Contacts:
Bruce Labovitz    Larry Clark
ir@bowman.com    lclark@bowman.com
(703) 787-3403    (310) 622-8223

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, “goal” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs, These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.


Non-GAAP Financial Measures and Other Key Metrics

We supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, with certain non-GAAP financial measures, as described below, to help represent, explain, and understand our operating performance. These non-GAAP financial measures may be different than similarly referenced measures used by other companies. The non-GAAP measures are intended to enhance investors’ overall understanding and evaluation of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We present these non-GAAP financial measures to assist investors in seeing our financial performance in a manner more aligned with management’s view and believe these measures provide additional tools by which investors can evaluate our core financial performance over multiple periods relative to other companies in our industry. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.


BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

 

     March 31,
2023
    December 31,
2022
 
     (Unaudited)        

ASSETS

    

Current Assets

    

Cash and equivalents

   $ 14,328     $ 13,282  

Accounts receivable, net

     67,164       64,443  

Contract assets

     19,931       16,321  

Notes receivable - officers, employees, affiliates, current portion

     938       1,016  

Prepaid and other current assets

     7,704       7,068  
  

 

 

   

 

 

 

Total current assets

     110,065       102,130  

Non-Current Assets

    

Property and equipment, net

     26,401       25,104  

Operating lease, right-of-use assets

     31,132       30,264  

Goodwill

     53,082       53,210  

Notes receivable

     903       903  

Notes receivable - officers, employees, affiliates, less current portion

     1,390       1,417  

Other intangible assets, net

     26,581       27,950  

Deferred tax asset, net

     17,428       13,759  

Other assets

     1,080       1,020  
  

 

 

   

 

 

 

Total Assets

   $ 268,062     $ 255,757  
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current Liabilities

    

Accounts payable and accrued liabilities

   $ 30,696     $ 40,293  

Contract liabilities

     6,838       6,370  

Notes payable, current portion

     9,243       10,168  

Operating lease obligation, current portion

     6,967       6,949  

Finance lease obligation, current portion

     5,804       5,297  
  

 

 

   

 

 

 

Total current liabilities

     59,548       69,077  

Non-Current Liabilities

    

Other non-current obligations

     17,811       356  

Notes payable, less current portion

     14,393       16,276  

Operating lease obligation, less current portion

     29,143       28,087  

Finance lease obligation, less current portion

     15,028       14,254  

Pension and post-retirement obligation, less current portion

     4,879       4,848  
  

 

 

   

 

 

 

Total Liabilities

   $ 140,802     $ 132,898  
  

 

 

   

 

 

 

Shareholders’ Equity

    

Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding

   $ —       $ —    

Common stock, $0.01 par value; 30,000,000 shares authorized as of March 31, 2023 and December 31, 2022; 16,019,601 shares issued and 13,593,846 outstanding, and 15,949,805 shares issued and 13,556,550 outstanding as of March 31, 2023 and December 31, 2022, respectively

     160       159  

Additional paid-in-capital

     167,440       162,922  

Accumulated other comprehensive income

     568       578  

Treasury stock, at cost; 2,425,755 and 2,393,255, respectively

     (21,498     (20,831

Stock subscription notes receivable

     (151     (173

Accumulated deficit

     (19,259     (19,796
  

 

 

   

 

 

 

Total Shareholders’ Equity

   $ 127,260     $ 122,859  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 268,062     $ 255,757  
  

 

 

   

 

 

 


BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED INCOME STATEMENT

(Amounts in thousands except per share data)

(Unaudited)

 

     For the Three Months Ended March 31,  
     2023     2022  

Gross Contract Revenue

   $ 76,100     $ 52,461  

Contract costs: (exclusive of depreciation and amortization below)

    

Direct payroll costs

     28,835       20,659  

Sub-consultants and expenses

     8,538       4,760  
  

 

 

   

 

 

 

Total contract costs

     37,373       25,419  
  

 

 

   

 

 

 

Operating Expenses:

    

Selling, general and administrative

     33,636       22,821  

Depreciation and amortization

     3,565       2,389  

(Gain) on sale

     (11     (6
  

 

 

   

 

 

 

Total operating expenses

     37,190       25,204  
  

 

 

   

 

 

 

Income from Operations

     1,537       1,838  
  

 

 

   

 

 

 

Other expense

     1,213       498  
  

 

 

   

 

 

 

Income (loss) before tax expense

     324       1,340  

Income tax (benefit) expense

     (213     (117
  

 

 

   

 

 

 

Net Income

   $ 537     $ 1,457  
  

 

 

   

 

 

 

Earnings allocated to non-vested shares

     69       254  
  

 

 

   

 

 

 

Net income attributable to common shareholders

   $ 468     $ 1,203  
  

 

 

   

 

 

 

Earnings per Share

    

Basic

   $ 0.04     $ 0.12  

Diluted

   $ 0.04     $ 0.12  

Weighted Average Shares Outstanding:

    

Basic

     11,800,308       9,926,395  

Diluted

     12,669,581       10,043,794  


BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

 

     For the Three Months Ended March 31,  
     2023     2022  

Cash Flows from Operating Activities:

    

Net Income

   $ 537     $ 1,457  

Adjustments to reconcile net income to net cash provided by operating activities

    

Depreciation and amortization

     2,196       1,922  

Amortization of intangible assets

     1,369       468  

Gain on sale of assets

     (11     (6

Bad debt

     222       152  

Stock based compensation

     4,363       3,236  

Accretion of discounts on notes payable

     140       —    

Deferred taxes

     (3,669     —    

Deferred rent

     —         (119

Changes in operating assets and liabilities, net of acquisition of businesses

    

Accounts receivable

     (2,943     (6,945

Contract assets

     (3,610     (721

Prepaid expenses and other assets

     (533     (630

Accounts payable and accrued expenses

     7,748       2,960  

Contract liabilities

     469       640  
  

 

 

   

 

 

 

Net cash provided by operating activities

     6,278       2,414  

Cash Flows from Investing Activities:

    

Purchases of property and equipment

     (536     (198

Fixed assets converted to lease financing

     —         278  

Proceeds from sale of assets and disposal of leases

     11       6  

Payments received under loans to shareholders

     105       70  

Acquisitions of businesses, net of cash acquired

     —         (550

Collections under stock subscription notes receivable

     22       24  
  

 

 

   

 

 

 

Net cash used in investing activities

     (398     (370
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs

     —         15,475  

Repayments under fixed line of credit

     (185     (182

Repayment under notes payable

     (2,685     (905

Payments on finance leases

     (1,687     (1,414

Payments for purchase of treasury stock

     (667     (988

Proceeds from issuance of common stock

     390       289  
  

 

 

   

 

 

 

Net cash (used) provided by financing activities

     (4,834     12,275  
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     1,046       14,319  
  

 

 

   

 

 

 

Cash and cash equivalents, beginning of period

     13,282       20,619  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 14,328     $ 34,938  
  

 

 

   

 

 

 

 

     For the Three Months Ended March 31,  
     2023     2022  

Supplemental Disclosures of Cash Flow Information:

    

Cash paid for interest

   $ 757     $ 344  
  

 

 

   

 

 

 

Cash paid for income taxes

   $ —         279  
  

 

 

   

 

 

 

Non-Cash Investing and Financing Activities:

    

Property and equipment acquired under capital lease

   $ (2,964   $ (2,456
  

 

 

   

 

 

 

Issuance of notes payable for acquisitions

   $ —       $ (200
  

 

 

   

 

 

 


BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(amounts in thousands except per share data)

(Unaudited)

 

Condensed Combined Statement of Operations Reconciliation    For the Three Months Ended March 31,  
     2023     2022  

Gross contract revenue

   $ 76,100     $ 52,461  

Contract costs (exclusive of depreciation and amortization)

   $ 37,373     $ 25,419  

Operating expense

   $ 37,190     $ 25,204  
  

 

 

   

 

 

 

Income from operations

   $ 1,537     $ 1,838  

Other (income) expense

   $ 1,213     $ 498  

Income tax expense (benefit)

   $ (213   $ (117
  

 

 

   

 

 

 

Net income

   $ 537     $ 1,457  
  

 

 

   

 

 

 

Net margin

     0.7     2.8

Other financial information 1

    

Net service billing

   $ 67,562     $ 47,701  

Adjusted EBITDA

     9,673       7,404  

Adjusted EBITA margin, net

     14.3     15.5
Gross Revenue to Net Services Billing Reconciliation    For the Three Months Ended March 31,  
     2023     2022  

Gross contract revenue

   $ 76,100     $ 52,461  

Less: sub-consultants and other direct expenses

     8,538       4,760  
  

 

 

   

 

 

 

Net services billing

   $ 67,562     $ 47,701  
Adjusted EBITDA Reconciliation    For the Three Months Ended March 31,  
     2023     2022  

Net Income

   $ 537     $ 1,457  

+ interest expense

     896       334  

+ depreciation & amortization

     3,565       2,389  

+ tax (benefit) expense

     (213     (117
  

 

 

   

 

 

 

EBITDA

   $ 4,785     $ 4,063  

+ non-cash stock compensation

     4,434       3,236  

+ acquisition expenses

     454       105  
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 9,673     $ 7,404  

Adjusted EBITDA margin, net

     14.3     15.5

 

1

Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.


BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Unaudited)

 

(dollars in thousands)    For the three months ended March 31,  
Consolidated Gross Revenue    2023      %     2022      %     Change      %
Change
 

Building Infrastructure

     44,337        58.3     38,762        73.9     5,575        14.4

Transportation

     16,019        21.0     3,970        7.6     12,049        303.5

Power and Utilities

     13,324        17.5     8,749        16.7     4,575        52.3

Emerging Markets 1

     2,420        3.2     980        1.9     1,440        146.9
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     76,100        100.0     52,461        100.0     23,639        45.1

 

(dollars in thousands)    For the three months ended March 31,  
Organic vs. Acquired Revenue 2    2023      %     2022      %     Change      %
Change
 

Baseline organic revenue

     58,791        77.3     52,195        99.5     6,596        12.6

Acquired revenue

     17,309        22.7     266        0.5     17,043        n/a  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     76,100        100.0     52,461        100.0     23,639        45.1

 

1

Adjusted for change, represents mining, water resources and other.

2

Revenue from acquired companies is reclassified as organic revenue in the first full quarter following the 12-month anniversary of closing.


BOWMAN CONSULTING GROUP LTD.

GROSS BACKLOG BY CATEGORY AT MARCH 31, 2023

(Unaudited)

 

Category

   Percentage  

Building Infrastructure

     51.0

Transportation

     32.0

Power and Utilities

     13.0

Emerging Markets

     4.0
  

 

 

 

TOTAL

     100.0