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 results of
operations for the three and twelve months ended December 31,
2021.
“We finished the year strong, generating record revenue in 2021
and ending the year with gross backlog of $167 million, up 48%
year-over-year”, said Gary Bowman, Chairman and CEO of Bowman.
“Consistent with our business strategy of expanding our geographic
footprint, service offerings and customer base, we completed six
acquisitions in the fourth quarter, bringing our total for the year
to eight. Our integration process, combined with the addition of
experienced team members, is creating immediate revenue synergies,
and is resulting in economies of scale that we expect will
positively impact our margins. We are well capitalized to continue
executing on our growth initiatives and given our current pipeline
of acquisition opportunities we expect to close on additional
transactions this year at valuations that meet our target
objectives. We remain focused on building shareholder value and
delivering on our commitment to generate profitable growth.”
Financial highlights of the three months ended December 31,
2021:
- Gross revenue of $41.9 million, a year-over-year increase of
40%
- Net service billing1 of $37.8 million, a year-over-year
increase of 44%
- Net loss of $0.6 million
- Adjusted EBITDA1 of $3.5 million
- Adjusted EBITDA margin, net 1 of 9.3%
- Gross backlog1 of $167 million, an increase of 20% from
September 30, 2021, and 48% as compared to December 31, 2020
Financial highlights of the year ended December 31, 2021:
- Gross revenue of $150.0 million, a year-over-year increase of
23%
- Net service billing1 of $134.9 million, a year-over-year
increase of 30%
- Net income of $0.3 million
- Adjusted EBITDA1 of $16.5 million, a year-over-year increase of
19%
- Adjusted EBITDA margin, net 1 of 12.2%
- Acquired revenue accounted for $11.8 million, or 8% of gross
revenue
Other Business Highlights During and Subsequent to the Fourth
Quarter:
- Closed on six acquisitions during Q4 2021
- Triangle Site Design in Raleigh, NC
- PCD Engineering in Denver, CO
- BTM Engineering in Louisville, KY
- Kibart in Towson, MD
- 1519 Surveying in Waco, TX
- Terra Associates in Houston, TX
- Closed on the acquisition of Perry Engineering in Tucson, AZ in
Q1 2022
Year-End Guidance:
The Company is increasing and narrowing its full year 2022
outlook for Net Service Billing to be in the range of $170 to $185
million and Adjusted EBITDA in the range of $23 to $27 million.
This presents an increase from previous guidance of $150 to $170
million of Net Service Billing and $20 to $24 million of Adjusted
EBITDA. 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.
-----------------------
1 Non-GAAP financial metrics the Company believes offer valuable
perspective on results of operations. See Non-GAAP tables below for
reconciliations.
FY 2022 Earnings Webcast
Bowman will host an earnings webcast to discuss the results of
the quarter as follows:
Date: March 22, 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
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 1,200 employees in more than 45 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 includes forward-looking statements within
the meaning of the "safe harbor” provisions of the 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”
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. These risks and uncertainties are detailed in
the sections titled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our
final prospectus Form 424B4 dated February 8, 2022, which is
available on the SEC's website at sec.gov, and other documents we
have filed, or may file, with the SEC. Such risks and uncertainties
may be amplified by the COVID-19 pandemic and its potential impact
on our business and the global economy. Moreover, we operate in a
very competitive and rapidly changing environment. New risks emerge
from time to time. It is not possible for our management to predict
all risks, nor can we assess the impact of all factors on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make.
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 and other information about certain of these
non-GAAP financial measures are included in the financial tables
accompanying this press release.
BOWMAN CONSULTING GROUP
LTD.
CONDENSED CONSOLIDATED INCOME
STATEMENTS
(Amounts in thousands except
per share data)
For the Three Months Ended December 31, For the
Twelve Months Ended December 31,
2021
2020
2021
2020
Gross Contract Revenue
$
41,929
$
29,894
$
149,970
$
122,020
Contract costs: (exclusive of depreciation and amortization
below) Direct payroll costs
16,527
11,384
59,416
48,152
Sub-consultants and expenses
4,149
3,546
15,116
18,360
Total contract costs
20,676
14,930
74,532
66,512
Operating Expenses: Selling, general and administrative
20,717
12,914
69,029
51,469
Depreciation and amortization
1,865
1,325
6,371
2,277
(Gain) loss on sale
(23
)
(62
)
(122
)
(107
)
Total operating expenses
22,559
14,177
75,278
53,639
Income (loss) from operations
(1,306
)
787
160
1,869
Other (income) expense
734
69
1,440
(110
)
Income (loss) before tax expense
(2,040
)
718
(1,280
)
1,979
Income tax (benefit) expense
(1,441
)
522
(1,579
)
989
Net income (loss)
$
(599
)
$
196
$
299
$
990
Earnings allocated to nonvested shares
-
14
56
55
Net income (loss) attributable to common shareholders
$
(599
)
$
182
$
243
$
935
Earnings (loss) per share Basic
$
(0.07
)
$
0.04
$
0.03
$
0.17
Diluted
$
(0.07
)
$
0.04
$
0.03
$
0.17
Weighted average shares outstanding: Basic
9,073,424
4,893,615
7,525,206
5,399,356
Diluted
9,073,424
4,906,478
7,635,615
5,412,218
BOWMAN CONSULTING GROUP
LTD.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands except per
share data)
December 31,
December 31,
2021
2020
ASSETS
Current Assets Cash and
equivalents
20,619
386
Accounts Receivable, net
38,491
24,183
Contract assets
9,189
7,080
Notes receivable - officers, employees, affiliates, current portion
1,260
1,182
Prepaid and other current assets
4,850
2,271
Total current assets
74,409
35,102
Non-Current Assets Property and
equipment, net
20,202
15,357
Goodwill
28,471
9,179
Notes receivable
903
903
Notes receivable - officers, employees, affiliates, less current
portion
1,218
1,297
Other intangible assets, net
12,286
1,131
Other assets
681
669
Total Assets
$
138,170
$
63,638
LIABILITIES AND EQUITY
Current
Liabilities Bank line of credit
-
3,481
Accounts payable and accrued liabilities, current portion
17,921
12,203
Contract liabilities
4,623
1,943
Notes payable, current portion
4,450
1,592
Deferred rent, current portion
724
619
Capital lease obligation, current portion
5,136
3,495
Total current liabilities
32,854
23,333
Non Current Liabilities Other
non-current obligations
-
1,244
Notes payable, less current portion
8,407
2,829
Deferred rent, less current portion
4,179
4,278
Capital lease obligation, less current portion
10,020
7,503
Deferred tax liability, net
4,290
6,472
Common shares subject to repurchase
7
842
Total liabilities
$
59,757
$
46,501
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;
13,690,868 shares issued and 11,489,579 outstanding, and 7,840,244
shares issued and 5,744,594 outstanding, respectively
137
2
Additional paid-in-capital
120,842
58,866
Treasury Stock, at cost; 2,201,289 and 2,095,650, respectively
(17,488
)
(16,022
)
Stock subscription notes receivable
(277
)
(609
)
Accumulated deficit
(24,801
)
(25,100
)
Total shareholders' equity (deficit)
$
78,413
$
17,137
TOTAL LIABILITIES AND EQUITY
$
138,170
$
63,638
BOWMAN CONSULTING GROUP
LTD.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in thousands)
For the Twelve Months Ended December 31,
2021
2020
Cash Flows from Operating Activities: Net Income
$299
$990
Adjustments to reconcile net income to net cash provided by
operating activities Depreciation and amortization - property,
plant and equipment
5,974
2,036
Amortization of intangible assets
397
241
Gain on sale of assets
(122
)
(110
)
Bad debt
496
3,008
Stock based compensation
8,217
5,085
Deferred taxes
(2,183
)
326
Deferred rent
5
530
Changes in operating assets and liabilities Accounts Receivable
(8,802
)
1,506
Contract Assets
(387
)
3,028
Prepaid expenses
(2,251
)
623
Other assets
(31
)
(28
)
Accounts payable and accrued expenses
3,297
(520
)
Contract Liabilities
(192
)
(5,945
)
Net cash provided by operating activities
4,717
10,770
Cash Flows from Investing Activities: Purchases of
property and equipment
(905
)
(924
)
Proceeds from sale of assets
127
110
Amounts advanced under loans to shareholders
(779
)
(1,207
)
Payments received under loans to shareholders
36
228
Amounts advanced under notes receivable
(0
)
(420
)
Payments received under notes receivable
-
19
Acquisitions of businesses, net of cash acquired
(20,345
)
(416
)
Collections under stock subscription notes receivable
332
196
Net cash used in investing activities
(21,534
)
(2,414
)
Cash Flows from Financing Activities: Proceeds from
initial public offering, net of underwriting discounts and
commissions and other offering costs
47,104
-
Net repayments under revolving line of credit
(3,481
)
(4,867
)
Repayments under fixed line of credit
(722
)
(485
)
Borrowings under fixed line of credit
-
1,985
Repayment under notes payable
(1,084
)
(1,800
)
Payments on capital leases
(4,663
)
(1,088
)
Payment of contingent consideration from acquisitions
(2
)
(106
)
Payment of subsequent common stock offering costs
(75
)
(920
)
Payments for purchase of treasury stock
(582
)
(1,261
)
Proceeds from issuance of common stock
555
63
Net cash provided by (used in) financing activities
37,050
(8,479
)
. Net increase (decrease) in cash and cash equivalents
20,233
(123
)
Cash and cash equivalents, beginning of period
386
509
Cash and cash equivalents, end of period
$20,619
$386
COMBINED STATEMENT OF CASH FLOWS For
the Twelve Months Ended December 31,
2021
2020
Supplemental disclosures of cash flow information:
Cash paid for interest
$887
$609
Cash paid for income taxes
$1,921
$543
Non-cash investing and financing activities Property
and equipment acquired under capital lease
($8,877
)
($11,370
)
Settlement of redeemable common stock
$0
$36,927
Stock redemption for exercise of stock option
$139
$0
Issuance of common stock for a note receivable
$0
($533
)
Stock redemption for payment of shareholder loans
$0
$1,457
Stock redemption for payment on note receivable
$0
$6,130
Issuance of notes payable for purchase of intangible asset
$0
($165
)
Issuance of notes payable for acquisitions
($10,200
)
$0
Issuance of notes payable for redemption of stock
$0
($900
)
BOWMAN CONSULTING GROUP
LTD.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Amounts in thousands except
per share data)
For the Three Months Ended December 31, For the Twelve
Months Ended December 31,
2021
2020
2021
2020
Gross revenue
$
41,929
$
29,894
$
149,970
$
122,020
Less: sub-consultants and other direct expenses
4,149
3,547
15,116
18,360
Net service billing
$
37,780
$
26,347
$
134,854
$
103,660
For the Three Months Ended December 31, For the Twelve
Months Ended December 31,
2021
2020
2021
2020
Net Income (loss)
$
(599
)
$
196
$
299
$
990
+ interest expense
268
198
918
565
+ depreciation & Amortization
1,865
1,325
6,371
2,277
+ tax (benefit) expense
(1,441
)
522
(1,579
)
989
EBITDA
$
93
$
2,241
$
6,009
$
4,821
+ non-recurring operating lease rent
-
91
-
2,521
+ non-cash stock compensation
2,876
1,003
8,217
5,085
+ transaction related expenses
-
-
1,555
-
+ settlements and other non-core expenses
-
-
-
1,461
+ acquisition expenses
565
-
704
-
Adjusted EBITDA
$
3,534
$
3,335
$
16,485
$
13,888
BOWMAN CONSULTING GROUP
LTD.
GROSS CONTRACT REVENUE
COMPOSITION
(Amounts in thousands)
For the three months ended December 31,
Consolidated Gross Revenue
2021
%CGR
2020
%CGR
Change
% Change
Building Infrastructure
$
31,559
75.3
%
$
19,589
65.5
%
$
11,970
61.1
%
Transportation
3,845
9.2
%
4,975
16.6
%
(1,130
)
-22.7
%
Power and Utilities
4,925
11.7
%
4,375
14.6
%
550
12.6
%
Emerging Markets
1,600
3.8
%
956
3.2
%
644
67.4
%
Total
$
41,929
100.0
%
$
29,894
100.0
%
$
12,035
40.3
%
Organic
$
36,836
87.9
%
$
29,894
100.0
%
$
6,942
23.2
%
Acquired
5,093
12.1
%
-
0.0
%
5,093
-
For the Year ended December 31, Consolidated Gross
Revenue
2021
%CGR
2020
%CGR
Change
% Change
Building Infrastructure1
$
105,242
70.2
%
$
76,873
63.0
%
$
28,369
36.9
%
Transportation
16,537
11.0
%
19,157
15.7
%
(2,620
)
(13.7
%)
Power & Utilities
22,525
15.0
%
20,377
16.7
%
2,148
10.5
%
Other emerging markets2
5,666
3.8
%
5,613
4.6
%
53
0.9
%
Total:
$
149,970
100.0
%
$
122,020
100.0
%
$
27,950
22.9
%
Organic
$
138,136
92.1
%
$
122,020
100.0
%
$
16,116
13.2
%
Acquired
11,834
7.9
%
-
0.0
%
11,834
-
1 formerly referred to as Communities,
homes & buildings
2 represents renewable energy, mining,
water resources and other
BOWMAN CONSULTING GROUP
LTD.
GROSS BACKLOG AT DECEMBER 31,
2021
2021
2020
Building Infrastructure
62.3%
42.7%
Transportation
19.0%
28.0%
Power & Utilities
16.2%
24.8%
Emerging Markets
2.5%
4.5%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220321005572/en/
Investor Relations Bruce Labovitz ir@bowman.com (703)
787-3403
Megan McGrath mmcgrath@finprofiles.com (310) 622-8248
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