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
%
1 Represents 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
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005637/en/
Investor Relations Bruce Labovitz ir@bowman.com (703)
787-3403
Megan McGrath mmcgrath@finprofiles.com (310) 622-8248
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