Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bowman Consulting Group Announces Record Second Quarter Results and Increases 2022 Outlook

BWMN

Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering services firm supporting owners and developers of the built environment, today announced record revenue and results of operations for the three months ended June 30, 2022.

“We delivered another quarter of record results, building on our strong first quarter momentum,” said Gary Bowman, Chairman and CEO of Bowman. “Our net service revenue increased 74% year-over-year, driven by both robust organic growth of 32% as well as by contributions from the ten acquisitions that we completed over the last year. Organic growth was largely driven by synergies realized from our acquisitions as well as by dynamic internal cross selling. Our growth is being generated across all of our end markets, with particular strength in transportation, power and utilities, and energy transition. During the quarter we completed two impactful acquisitions, including McMahon Associates, our largest to date, which expanded our work in the transportation market, adding further diversification to our revenue mix.”

“As a result of our strong results year-to-date and our record backlog, we are once again increasing our full year outlook. Additionally, we continue to have a strong pipeline of acquisition opportunities. In July, we completed the acquisition of Project Design Consultants, headquartered in San Diego, California, establishing our presence in Southern California, a market where we look to expand, particularly with key public sector and utility clients. While we are mindful of the potential economic headwinds created by higher interest rates and volatile energy costs, we are confident that our diversified market mix shields us in the event of a downturn and we remain steadfast in our approach to disciplined growth and increasing shareholder value,” Bowman concluded.

Financial Highlights for the three months ended June 30, 2022, compared to June 30, 2021:

  • Gross revenue of $62.4 million, compared to $36.5 million, a 71% increase
  • Year-over-year organic gross revenue growth of 27%
  • Net service billing1 of $56.4 million, compared to $32.5 million, a 74% increase
  • Year-over-year organic net service billing growth of 32%
  • Net loss of $0.3 million, compared to a net loss of $0.4 million
  • Adjusted EBITDA1 of $7.6 million, compared to $4.2 million, an 81% increase
  • Adjusted EBITDA margin, net 1 of 13.4%, compared to 12.9%, a 50 basis point increase
  • Gross backlog1 of $206 million, compared to $124 million, a 66% increase

Financial Highlights for the six months ended June 30, 2022, compared to June 30, 2021:

  • Gross revenue of $114.9 million, compared to $68.3 million, a 68% increase
  • Year-over-year organic gross revenue growth of 31%
  • Net service billing1 of $104.1 million, compared to $61.3 million, a 70% increase
  • Year-over-year organic net service billing growth of 34%
  • Net income of $1.1 million, compared to a net income of $0.5 million
  • Adjusted EBITDA1 of $15.0 million, compared to $8.3 million, an 81% increase
  • Adjusted EBITDA margin, net 1 of 14.4%, compared to 13.5%, a 90 basis point increase

Business Highlights during the Second Quarter:

  • Closed on the acquisition of McMahon Associates – May 2022
  • Closed on the acquisition of Fabre Engineering – June 2022

Business Highlights after the Second Quarter:

  • Closed on the acquisition of Project Design Consultants – July 2022

Fiscal Year 2022 Guidance

The Company is increasing its full year 2022 outlook for Net Service Billing to be in the range of $205 to $220 million and Adjusted EBITDA in the range of $29 to $33 million. This presents an increase from the previous guidance for Net Service Billing of $185 to $200 million and Adjusted EBITDA of $25 to $29 million. The current outlook for 2022 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. The Company expects to continue making strategic and financially accretive acquisitions that are not yet reflected in this current outlook. Management will discuss the Company’s acquisition pipeline during its upcoming earnings call.

FY 2022 Earnings Webcast

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

Date:

August 12, 2022

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 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 1,500 employees in more than 60 offices 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.

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 anticipates 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. AND AFFILIATES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands except per share data)

(Unaudited)

For the Three Months

Ended June 30,

For the Six Months

Ended June 30,

2022

2021

2022

2021

Gross Contract Revenue

$

62,399

$

36,524

$

114,860

$

68,326

Contract costs: (exclusive of depreciation and amortization below)

Direct payroll costs

25,071

14,123

45,746

27,345

Sub-consultants and expenses

5,983

4,065

10,743

6,999

Total contract costs

31,054

18,188

56,489

34,344

Operating Expenses:

Selling, general and administrative

28,065

17,204

50,868

29,953

Depreciation and amortization

2,823

1,480

5,213

2,908

(Gain) on sale

(27)

(27)

(32)

(53)

Total operating expenses

30,861

18,657

56,049

32,808

Income (loss) from operations

484

(321)

2,322

1,174

Other expense

994

187

1,491

392

Income before tax expense

(510)

(508)

831

782

Income tax (benefit) expense

(190)

(69)

(306)

240

Net income (loss)

$

(320)

$

(439)

$

1,137

$

542

Earnings allocated to non-vested shares

191

93

Net income (loss) attributable to common shareholders

$

(320)

$

(439)

$

946

$

449

Earnings per share

Basic

$

(0.03)

$

(0.06)

$

0.09

$

0.07

Diluted

$

(0.03)

$

(0.06)

$

0.09

$

0.07

Weighted average shares outstanding:

Basic

10,761,172

6,973,055

10,346,089

6,029,054

Diluted

10,761,172

6,973,055

10,427,602

6,029,054

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

June 30,

2022

December 31,

2021

(Unaudited)

ASSETS

Current Assets

Cash and equivalents

$

25,783

$

20,619

Accounts receivable, net

56,924

38,491

Contract assets

11,211

9,189

Notes receivable - officers, employees, affiliates, current portion

1,183

1,260

Prepaid and other current assets

10,020

4,850

Total current assets

105,121

74,409

Non-Current Assets

Property and equipment, net

21,752

20,202

Goodwill

39,613

28,471

Notes receivable

903

903

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

1,195

1,218

Other intangible assets, net

15,035

12,286

Other assets

887

681

Total Assets

$

184,506

$

138,170

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued liabilities, current portion

28,050

17,921

Contract liabilities

7,612

4,623

Notes payable, current portion

6,067

4,450

Deferred rent, current portion

743

724

Capital lease obligation, current portion

5,752

5,136

Total current liabilities

48,224

32,854

Non-Current Liabilities

Other non-current obligations

200

-

Notes payable, less current portion

8,692

8,407

Deferred rent, less current portion

3,923

4,179

Capital lease obligation, less current portion

10,733

10,020

Deferred tax liability, net

4,290

4,290

Common shares subject to repurchase

-

7

Total liabilities

$

76,062

$

59,757

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;

15,602,433 shares issued and 13,263,815 outstanding, and 13,690,868

shares issued and 11,489,579 outstanding, respectively

156

137

Additional paid-in-capital

152,039

120,842

Treasury stock, at cost; 2,338,618 and 2,201,289, respectively

(19,857

)

(17,488

)

Stock subscription notes receivable

(230

)

(277

)

Accumulated deficit

(23,664

)

(24,801

)

Total shareholders' equity

$

108,444

$

78,413

TOTAL LIABILITIES AND EQUITY

$

184,506

$

138,170

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands except per share data)

(Unaudited)

For the Six Months Ended June 30,

2022

2021

Cash Flows from Operating Activities:

Net Income

$

1,137

$

542

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

Depreciation and amortization - property, plant and equipment

3,971

2,771

Amortization of intangible assets

1,241

137

Gain on sale of assets

(32

)

(53

)

Bad debt

365

251

Stock based compensation

7,274

2,707

Deferred taxes

-

(1,340

)

Deferred rent

(237

)

9

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

Accounts Receivable

(10,254

)

(9,391

)

Contract Assets

(510

)

(242

)

Prepaid expenses and other assets

(5,124

)

(1,182

)

Accounts payable and accrued expenses

5,877

5,764

Contract Liabilities

560

(445

)

Net cash provided by (used in) operating activities

4,268

(472

)

Cash Flows from Investing Activities:

Purchases of property and equipment

(368

)

(757

)

Fixed assets converted to lease financing

22

-

Proceeds from sale of assets

32

53

Amounts advanced under loans to shareholders

-

(374

)

Payments received under loans to shareholders

118

81

Acquisitions of businesses, net of cash acquired

(7,950

)

(640

)

Collections under stock subscription notes receivable

47

67

Net cash used in investing activities

(8,099

)

(1,570

)

Cash Flows from Financing Activities:

Proceeds from initial public offering, net of underwriting discounts and

commissions and other offering costs

-

47,104

Proceeds from common stock offering, net of underwriting discounts and

commissions and other offering costs

15,475

-

Net borrowings under revolving line of credit

-

(3,481

)

Repayments under fixed line of credit

(365

)

(359

)

Repayment under notes payable

(1,433

)

(454

)

Payments on capital leases

(2,921

)

(2,052

)

Payment of contingent consideration from acquisitions

-

(2

)

Payments for purchase of treasury stock

(2,368

)

(582

)

Proceeds from issuance of common stock

607

27

Net cash provided by financing activities

8,995

40,201

Net increase (decrease) in cash and cash equivalents

5,164

38,159

Cash and cash equivalents, beginning of period

20,619

386

Cash and cash equivalents, end of period

$

25,783

$

38,545

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Amounts in thousands except per share data)

(Unaudited)

For the Six Months Ended June 30,

2022

2021

Supplemental disclosures of cash flow information:

Cash paid for interest

$

713

$

435

Cash paid for income taxes

$

383

480

Non-cash investing and financing activities:

Property and equipment acquired under capital lease

$

(4,262

)

$

(3,048

)

Stock redemption for exercise of stock option

-

$

139

Issuance of notes payable for acquisitions

$

(3,697

)

-

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Amounts in thousands)

2022

2021

2022

2021

Gross contract revenue

$

62,399

$

36,524

$

114,860

$

68,326

Contract costs (exclusive of depreciation and amortization)

31,054

18,188

56,776

34,344

Operating expense

30,861

18,657

55,762

32,808

Income (loss) from operations

484

(321

)

2,322

1,174

Other (income) expense

994

187

1,491

392

Income tax expense (benefit)

(190

)

(69

)

(306

)

240

Net income (loss)

$

(320

)

$

(439

)

$

1,137

$

542

Net margin

(0.5

%)

(1.2

%)

1.0

%

0.8

%

Other financial information 1

Net service billing

$

56,416

$

32,459

$

104,117

$

61,327

Adjusted EBITDA

7,576

4,185

14,983

8,271

Adjusted EBITA margin, net

13.4

%

12.9

%

14.4

%

13.5

%

1Represents non-GAAP financial measures. See Other Financial Information and Non-GAAP key performance indicators below in results of operations.

For the Three Months Ended June 30,

(Amounts in thousands)

2022

2021

Gross revenue

$

62,399

$

36,524

Less: sub-consultants and other direct expenses

5,983

4,065

Net services billing

$

56,416

$

32,459

For the Six Months Ended June 30,

(Amounts in thousands)

2022

2021

Gross revenue

$

114,860

$

68,326

Less: sub-consultants and other direct expenses

10,743

6,999

Net services billing

$

104,117

$

61,327

For the Three Months Ended June 30,

(Amounts in thousands)

2022

2021

$ Change

% Change

Net Income

$

(320

)

$

(439

)

$

119

27.1

%

+ interest expense

350

215

135

62.8

%

+ depreciation & amortization

2,823

1,480

1,343

90.7

%

+ tax expense

(190

)

(69

)

(121

)

175.4

%

EBITDA

$

2,663

$

1,187

$

1,476

124.3

%

+ non-cash stock compensation

4,038

1,558

2,480

159.2

%

+ transaction related expenses

-

1,440

(1,440

)

n/a

+ settlements and other non-core expenses

215

-

215

n/a

+ acquisition expenses

660

-

660

n/a

Adjusted EBITDA

$

7,576

$

4,185

$

3,391

81.0

%

Adjusted EBITDA margin, net

13.4

%

12.9

%

For the Six Months Ended June 30,

(Amounts in thousands)

2022

2021

$ Change

% Change

Net Income

$

1,137

$

542

$

595

109.8

%

+ interest expense

685

434

251

57.8

%

+ depreciation & amortization

5,213

2,908

2,305

79.3

%

+ tax (benefit) expense

(306

)

240

(546

)

(227.5

%)

EBITDA

$

6,729

$

4,124

$

2,605

63.2

%

+ non-cash stock compensation

7,274

2,707

4,567

168.7

%

+ transaction related expenses

-

1,440

(1,440

)

n/a

+ settlements and other non-core expenses

215

-

215

n/a

+ acquisition expenses

765

-

765

n/a

Adjusted EBITDA

$

14,983

$

8,271

$

6,712

81.2

%

Adjusted EBITDA margin, net

14.4

%

13.5

%

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

For the Three Months Ended June 30,

Consolidated Gross Contract Revenue – Amounts in thousands

2022

%GCR

2021

%GCR

Change

% Change

Building Infrastructure 1

$

42,571

68.2%

$

25,187

69.0%

$

17,384

69.0%

Transportation

9,276

14.9%

4,174

11.4%

5,102

122.2%

Power & Utilities

7,924

12.7%

6,184

16.9%

1,740

28.1%

Other emerging markets 2

2,628

4.2%

979

2.7%

1,649

168.4%

Total:

$

62,399

100.0%

$

36,524

100.0%

$

25,875

70.8%

Organic

$

46,331

74.3%

$

36,524

100.0%

$

9,807

26.9%

Acquired

16,068

25.7%

-

0.0%

16,068

n/a

Total:

$

62,399

100.0%

$

36,524

100.0%

$

25,875

70.8%

1 formerly referred to as Communities, homes & buildings

2 represents renewable energy, mining, water resources and other

For the Six Months Ended June 30,

Consolidated Gross Contract Revenue – Amounts in thousands

2022

%GCR

2021

%GCR

Change

% Change

Building Infrastructure 1

$

81,329

70.8%

$

46,224

67.7%

$

35,105

75.9%

Transportation

13,246

11.5%

8,295

12.1%

4,951

59.7%

Power & Utilities

15,561

13.5%

11,230

16.4%

4,331

38.6%

Other emerging markets 2

4,724

4.1%

2,577

3.8%

2,147

83.3%

Total:

$

114,860

100.0%

$

68,326

100.0%

$

46,534

68.1%

Organic

$

89,260

77.7%

$

68,326

100.0%

$

20,934

30.6%

Acquired

25,600

22.3%

-

0.0%

25,600

n/a

Total:

$

114,860

100.0%

$

68,326

100.0%

$

46,534

68.1%

1 formerly referred to as Communities, homes & buildings

2 represents renewable energy, mining, water resources and other

BOWMAN CONSULTING GROUP LTD.

BACKLOG AT JUNE 30, 2022

(Unaudited)

(Amounts in thousands)

Gross Backlog

Building Infrastructure

109,365

Transportation

60,775

Power & Utilities

29,910

Emerging Markets

5,550

Total

$

205,600