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 March
31, 2022.
“We are starting the year strong with a terrific first quarter”,
said Gary Bowman, Chairman and CEO of Bowman. “It was a busy three
months and things are not slowing down. During the quarter we
acquired Perry Engineering, raised $17 million of additional equity
for growth, continued the process of integrating our acquisitions
from last year and delivered record net service revenue that
exceeded estimates. At the same time, we grew backlog and increased
our full year outlook. Last week we announced the acquisition of
McMahon Associates, our largest to date, demonstrating our
continuing commitment to strategic diversification. We remain
steadfast in our approach to disciplined growth and increasing
shareholder value.”
Financial Highlights for the three months ended March 31, 2022,
compared to March 31, 2021:
- Gross revenue of $52.5 million, compared to $31.8 million, a
65% increase
- Net service billing1 of $47.7 million, compared to $28.9
million, a 65% increase
- Net income of $1.5 million, compared to $1.0 million, a 50%
increase
- Adjusted EBITDA1 of $7.4 million, compared to $4.1 million, an
81% increase
- Adjusted EBITDA margin, net 1 of 15.5%, compared to 14.2%
million, a 130 basis point increase
- Gross backlog1 of $173 million, compared to $116 million, a 49%
increase and a $6 million, or 4%, increase from December 31,
2021
Business Highlights during the First Quarter:
- Closed on the acquisition of Perry Engineering – Jan 2022
- Closed on $16.9 million equity raise – Feb 2022
Business Highlights subsequent to the First Quarter:
- Closed on the acquisition of McMahon Associates – May 2022
Fiscal Year 2022 Guidance
The Company is increasing its full year 2022 outlook for Net
Service Billing to be in the range of $185 to $200 million and
Adjusted EBITDA in the range of $25 to $29 million. This presents
an increase from the previous guidance of $170 to $185 million of
Net Service Billing and $23 to $27 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.
FY 2022 Earnings Webcast
Bowman will host an earnings webcast to discuss the results of
the quarter as follows:
Date:
May 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 1,400 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
For the Three Months Ended
March 31,
(Amounts in thousands except per share
data)
2022
2021
Gross Contract Revenue
$
52,461
$
31,802
Contract costs: (exclusive of
depreciation and amortization below)
Direct payroll costs
20,659
13,222
Sub-consultants and expenses
4,760
2,934
Total contract costs
25,419
16,156
Operating Expenses:
Selling, general and administrative
22,821
12,749
Depreciation and amortization
2,389
1,428
(Gain) on sale
(6
)
(26
)
Total operating expenses
25,204
14,151
Income from operations
1,838
1,495
Other (income) expense
498
205
Income before tax expense
1,340
1,290
Income tax expense
(117
)
309
Net income
$
1,457
$
981
Earnings allocated to non-vested
shares
254
124
Net income attributable to common
shareholders
$
1,203
$
857
Earnings per share
Basic
$
0.12
$
0.17
Diluted
$
0.12
$
0.17
Weighted average shares
outstanding:
Basic
9,926,395
5,083,470
Diluted
10,043,794
5,096,597
BOWMAN CONSULTING GROUP LTD.
AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE
SHEETS
March 31, 2022
December 31, 2021
(Amounts in thousands except per share
data)
(Unaudited)
ASSETS
Current
Assets
Cash and equivalents
$
34,938
$
20,619
Accounts receivable, net
45,372
38,491
Contract assets
10,396
9,189
Notes receivable - officers, employees,
affiliates, current portion
1,207
1,260
Prepaid and other current assets
5,440
4,850
Total current assets
97,353
74,409
Non-Current
Assets
Property and equipment, net
20,745
20,202
Goodwill
29,148
28,471
Notes receivable
903
903
Notes receivable - officers, employees,
affiliates, less current portion
1,200
1,218
Other intangible assets, net
11,819
12,286
Other assets
721
681
Total Assets
$
161,889
$
138,170
LIABILITIES AND EQUITY
Current
Liabilities
Accounts payable and accrued liabilities,
current portion
21,026
17,921
Contract liabilities
5,551
4,623
Notes payable, current portion
4,572
4,450
Deferred rent, current portion
721
724
Capital lease obligation, current
portion
5,491
5,136
Total current liabilities
37,361
32,854
Non-Current
Liabilities
Notes payable, less current portion
7,399
8,407
Deferred rent, less current portion
4,063
4,179
Capital lease obligation, less current
portion
10,705
10,020
Deferred tax liability, net
4,290
4,290
Common shares subject to repurchase
-
7
Total liabilities
$
63,818
$
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; 14,809,363 shares issued and 12,562,009
outstanding, and 13,690,868 shares issued and 11,489,579
outstanding, respectively
148
137
Additional paid-in-capital
139,996
120,842
Treasury stock, at cost; 2,247,354 and
2,201,289, respectively
(18,476
)
(17,488
)
Stock subscription notes receivable
(253
)
(277
)
Accumulated deficit
(23,344
)
(24,801
)
Total shareholders' equity
$
98,071
$
78,413
TOTAL LIABILITIES AND EQUITY
$
161,889
$
138,170
BOWMAN CONSULTING GROUP LTD.
AND AFFILIATES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31,
(Amounts in thousands except per share
data)
2022
2021
Cash Flows from Operating
Activities:
Net Income
$
1,457
$
981
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization - property,
plant and equipment
1,922
1,360
Amortization of intangible assets
468
68
Gain on sale of assets
(6
)
(26
)
Bad debt
152
92
Stock based compensation
3,236
1,149
Deferred taxes
-
109
Deferred rent
(119
)
(95
)
Changes in operating assets and
liabilities
Accounts Receivable
(6,945
)
(3,608
)
Contract Assets
(721
)
(100
)
Prepaid expenses and other assets
(630
)
(169
)
Accounts payable and accrued expenses
2,960
698
Contract Liabilities
640
(414
)
Net cash provided by operating
activities
2,414
45
Cash Flows from Investing
Activities:
Purchases of property and equipment
(198
)
(438
)
Fixed assets converted to lease
financing
278
-
Proceeds from sale of assets
6
26
Amounts advanced under loans to
shareholders
-
(364
)
Payments received under loans to
shareholders
70
75
Acquisitions of businesses, net of cash
acquired
(550
)
(640
)
Collections under stock subscription notes
receivable
24
33
Net cash used in investing activities
(370
)
(1,308
)
Cash Flows from Financing
Activities:
Proceeds from common stock offering, net
of underwriting discounts and commissions and other offering
costs
15,475
-
Net borrowings under revolving line of
credit
-
3,460
Repayments under fixed line of credit
(182
)
(179
)
Repayment under notes payable
(905
)
(151
)
Payments on capital leases
(1,414
)
(975
)
Payment of contingent consideration from
acquisitions
-
(1
)
Payment of offering costs
-
(417
)
Payments for purchase of treasury
stock
(988
)
(559
)
Proceeds from issuance of common stock
289
18
Net cash provided by financing
activities
12,275
1,196
Net increase (decrease) in cash and cash
equivalents
14,319
(67
)
Cash and cash equivalents, beginning of
period
20,619
386
Cash and cash equivalents, end of
period
$
34,938
$
319
BOWMAN CONSULTING GROUP LTD.
AND AFFILIATES
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
For the Three Months Ended
March 31,
(Amounts in thousands except per share
data)
2022
2021
Supplemental disclosures of cash flow
information:
Cash paid for interest
$
344
$
203
Cash paid for income taxes
$
279
-
Non-cash investing and financing
activities
Property and equipment acquired under
capital lease
$
(2,456
)
$
(1,330
)
Stock redemption for exercise of stock
option
-
$
139
Issuance of notes payable for
acquisitions
$
(200
)
-
BOWMAN CONSULTING GROUP
LTD.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES
(Unaudited)
For the Three Months Ended
March 31,
(Amounts in thousands except per share
data)
2022
2021
Gross contract revenue
$
52,461
$
31,802
Contract costs (exclusive of depreciation
and amortization)
25,419
16,156
Operating expense
25,204
14,151
Income from operations
1,838
1,495
Other (income) expense
498
205
Income tax expense (benefit)
(117
)
309
Net income
$
1,457
$
981
Net margin
2.8
%
3.1
%
Other financial information 1
Net service billing
$
47,701
$
28,868
Adjusted EBITDA
7,404
4,086
Adjusted EBITA margin, net
15.5
%
14.2
%
For the Three Months Ended
March 31,
(Amounts in thousands except per share
data)
2022
2021
Gross revenue
$
52,461
$
31,802
Less: sub-consultants and other direct
expenses
4,760
2,934
Net services billing
$
47,701
$
28,868
BOWMAN CONSULTING GROUP
LTD.
GROSS CONTRACT REVENUE
COMPOSITION
For the Three Months Ended
March 31,
(Amounts in thousands)
2022
%GCR
2021
%GCR
Change
% Change
Building Infrastructure 1
$
38,762
73.9
%
$
21,037
66.1
%
$
17,725
84.3
%
Transportation
3,970
7.6
%
4,122
13.0
%
(152
)
(3.7
%)
Power & Utilities
7,637
14.5
%
5,045
15.9
%
2,592
51.4
%
Other emerging markets 2
2,092
4.0
%
1,598
5.0
%
494
30.9
%
Total:
$
52,461
100.0
%
$
31,802
100.0
%
$
20,659
65.0
%
Organic
$
42,910
81.6
%
$
29,879
94.0
%
$
13,031
43.6
%
Acquired
9,551
18.4
%
1,923
6.0
%
7,628
21.3
%
Total:
$
52,461
100.0
%
$
31,802
100.0
%
$
20,659
65.0
%
1 formerly referred to as Communities,
homes & buildings
2 represents renewable energy, mining,
water resources and other
BOWMAN CONSULTING GROUP
LTD.
BACKLOG AT MARCH 31,
2022
(Unaudited)
(Amounts in thousands)
Gross Backlog
Building Infrastructure
112,450
Transportation
31,140
Power & Utilities
25,950
Emerging Markets
3,460
Total
$
173,000
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511005638/en/
Investor Relations Bruce Labovitz ir@bowman.com (703)
787-3403
Megan McGrath mmcgrath@finprofiles.com (310) 622-8248
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