Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bowman Announces Financial Results for Three Months Ended March 31, 2024 By: Bowman Consulting Group via Business Wire May 06, 2024 at 16:05 PM EDT Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering and infrastructure services firm supporting owners and developers of the built environment, today released financial results for the three months ended March 31, 2024. “The first quarter delivered the revenue rebound we were expecting,” said Gary Bowman, Chairman and CEO of Bowman. “Net service billing increased consecutively each month during the quarter in line with our expectations. Demand for engineering services remains strong and we generated healthy new orders during the quarter, especially in transportation which showed a meaningful increase as a percentage of total backlog. With the bulk of our organic growth anticipated to occur during the balance of 2024, we are confident we have sufficient revenue in backlog and a right-sized organizational infrastructure to deliver expanding margins as we realize the increasing benefits of scale throughout the year. We are pleased to increase our net service billing and adjusted EBITDA guidance once again for 2024.” “In early April we closed on an equity offering that included approximately $51 million of gross proceeds to the company,” continued Bowman. “Then, last week we closed on a new $100 million revolving credit facility with Bank of America and TD Bank and separately on an $11 million cash-out refinancing of recently acquired Surdex aviation assets. As a result of these efforts, we believe we are sufficiently capitalized to continue to grow and execute on our current high-frequency acquisition strategy.” Financial Highlights for the Three Months Ended March 31, 2024, Compared to March 31, 2023: Gross contract revenue of $94.9 million, compared to $76.1 million, a 25% increase Year-over-year organic gross contract revenue growth1 of 1% Net service billing2 of $85.7 million, compared to $67.6 million, a 27% increase Year-over-year organic net service billing growth of 3% Net loss of $1.6 million3, compared to net income of $0.5 million Adjusted EBITDA2 of $12.1 million, compared to $9.7 million, a 25% increase Adjusted EBITDA margin, net 2 of 14.2% compared to 14.3%, a 10 bps decrease Gross backlog2 of $330 million, compared to $252 million, a 31% increase Subsequent Events of Note: On April 1, 2024, the Company closed on a $51 million equity offering On April 4, 2024, the Company closed on the acquisition of Surdex Corporation On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America On May 3, 2024, the Company closed on a new $11 million cash-out refinancing of its Surdex aviation assets Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results the Company reported the non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”) as follows: For the three months ended March 31, 2024, compared to March 31, 2023: Basic Adjusted EPS was $0.22 compared to $0.28 Diluted Adjusted EPS was $0.20 compared to $0.26 To calculate Adjusted EPS, the Company adds back non-reoccurring expenses specific to acquisitions, non-cash stock compensation expense associated with pre-IPO grants, and other expenses not in the ordinary course of business. With respect to the elimination of any non-cash stock compensation expense, the Company computes an adjusted tax expense or benefit which accounts for the elimination of any periodic windfall or shortfall tax effects resulting from the difference between grant date fair value and vest date value. With respect to all other eliminations, the Company applies its average marginal statutory tax rate, currently 25.6%, to derive the tax adjustment associated with the elimination of these expenses. A reconciliation of non-GAAP Adjusted EPS to GAAP EPS, both basic and diluted, is included with this press release for reference. Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $382 to $397 million and Adjusted EBITDA2 in the range of $63 to $69 million. The current outlook for 2024 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management discusses the Company’s acquisition pipeline and its prospective impact during regularly scheduled earnings calls. Q1 2024 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: May 7, 2024 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 To the extent applicable, includes reclassification of acquisitions closed in same period of the prior year to organic revenue in the prior period. 2 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. 3 Includes an additional $1.3 million accrual for penalties and interest (P&I) in connection with the Company’s Section 174-related uncertain tax provision (UTP). Accruals for P&I are subject to reversal prior to payment if the Company elects to unwinds its UTP. About Bowman Consulting Group Ltd. Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. 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. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets Cash and equivalents $ 11,673 $ 20,687 Accounts receivable, net 95,975 87,565 Contract assets 36,673 33,520 Notes receivable - officers, employees, affiliates, current portion 1,181 1,199 Prepaid and other current assets 17,365 11,806 Total current assets 162,867 154,777 Non-Current Assets Property and equipment, net 28,122 27,601 Operating lease, right-of-use assets 40,236 40,743 Goodwill 102,538 96,393 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,116 1,119 Other intangible assets, net 45,525 46,294 Deferred tax asset, net 37,981 33,780 Other assets 1,250 1,175 Total Assets $ 420,538 $ 402,785 LIABILITIES AND EQUITY Current Liabilities Revolving credit facility 47,254 45,290 Accounts payable and accrued liabilities, current portion 49,015 44,394 Contract liabilities 7,955 7,481 Notes payable, current portion 13,672 13,989 Operating lease obligation, less current portion 9,567 9,016 Finance lease obligation, current portion 7,271 6,586 Total current liabilities 134,734 126,756 Non-Current Liabilities Other non-current obligations 50,095 42,288 Notes payable, less current portion 12,177 13,738 Operating lease obligation, less current portion 36,659 37,660 Finance lease obligation, less current portion 14,987 14,408 Pension and post-retirement obligation, less current portion 4,630 4,654 Total liabilities $ 253,282 $ 239,504 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 18,191,818 shares issued and 15,428,519 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of March 31, 2024 and December 31, 2023, respectively 182 177 Additional paid-in-capital 226,681 215,420 Accumulated other comprehensive income 579 590 Treasury stock, at cost; 2,763,299 and 2,600,217, respectively (32,142 ) (26,410 ) Stock subscription notes receivable (66 ) (76 ) Accumulated deficit (27,978 ) (26,420 ) Total shareholders' equity $ 167,256 $ 163,281 TOTAL LIABILITIES AND EQUITY $ 420,538 $ 402,785 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) (Unaudited) For the Three Months Ended March 31, 2024 2023 Gross Contract Revenue $ 94,907 $ 76,100 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 37,687 28,835 Sub-consultants and expenses 9,218 8,538 Total contract costs 46,905 37,373 Operating Expenses: Selling, general and administrative 44,713 33,636 Depreciation and amortization 5,995 3,565 Gain on sale (96 ) (11 ) Total operating expenses 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 (Loss) Income before tax expense (5,011 ) 324 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Earnings allocated to non-vested shares – 69 Net (loss) income attributable to common shareholders $ (1,558 ) $ 468 (Loss) Earnings per share Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Weighted average shares outstanding: Basic 13,827,728 11,800,308 Diluted 13,827,728 12,669,581 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities: Net (Loss) Income $ (1,558 ) $ 537 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 2,656 2,196 Amortization of intangible assets 3,339 1,369 Gain on sale of assets (96 ) (11 ) Credit losses 402 222 Stock based compensation 7,829 4,363 Accretion of discounts on notes payable 117 140 Deferred taxes (4,201 ) (3,669 ) Changes in operating assets and liabilities Accounts receivable (7,946 ) (2,943 ) Contract assets (2,151 ) (3,610 ) Prepaid expenses and other assets (5,523 ) (533 ) Accounts payable and accrued expenses 10,614 7,748 Contract liabilities (963 ) 469 Net cash provided by operating activities 2,519 6,278 Cash Flows from Investing Activities: Purchases of property and equipment (262 ) (536 ) Fixed assets converted to lease financing 424 - Proceeds from sale of assets and disposal of leases 96 11 Payments received under loans to shareholders 20 105 Acquisitions of businesses, net of cash acquired (3,027 ) - Collections under stock subscription notes receivable 10 22 Net cash used in investing activities (2,739 ) (398 ) Cash Flows from Financing Activities: Borrowings under revolving credit facility 1,964 – Repayments under fixed line of credit (49 ) (185 ) Repayment under notes payable (3,734 ) (2,685 ) Payments on finance leases (1,716 ) (1,687 ) Payments for purchase of treasury stock (5,732 ) (667 ) Proceeds from issuance of common stock 473 390 Net cash used in financing activities (8,794 ) (4,834 ) Net (decrease) increase in cash and cash equivalents (9,014 ) 1,046 Cash and cash equivalents, beginning of period 20,687 13,282 Cash and cash equivalents, end of period $ 11,673 $ 14,328 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,962 $ 757 Cash paid for income taxes $ 11 $ - Non-cash investing and financing activities Property and equipment acquired under finance lease $ (3,002 ) $ (2,964 ) Note payable converted to common shares $ (672 ) $ - Issuance of notes payable for acquisitions $ (2,461 ) $ - BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended March 31, 2024 2023 Net (loss) income (GAAP) $ (1,558 ) $ 537 + tax (benefit) (GAAP) (3,453 ) (213 ) (Loss) Income before tax expense (GAAP) $ (5,011 ) $ 324 + acquisition related expenses 1,350 849 + amortization of intangibles 3,339 1,369 + non-cash stock comp related to pre-IPO 1,557 1,722 + other non-core expenses 399 – Adjusted income before tax expense $ 1,634 $ 4,264 Adjusted income tax (benefit) expense (1,660 ) 496 Adjusted net income $ 3,294 $ 3,768 Adjusted earnings allocated to non-vested shares 310 488 Adjusted net income attributable to common shareholders $ 2,984 $ 3,280 (Loss) Earnings per share (GAAP) Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Adjusted earnings per share (Non-GAAP) Basic $ 0.22 $ 0.28 Diluted $ 0.20 $ 0.26 Weighted average shares outstanding Basic 13,827,728 11,800,308 Diluted 14,561,032 12,669,581 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax basic per share adjustments $ 0.23 $ 0.32 Adjusted earnings per share before tax expense $ 0.12 $ 0.36 Tax (benefit) expense per share adjustment $ (0.12 ) $ 0.04 Adjusted earnings per share - adjusted net income $ 0.24 $ 0.32 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.04 Adjusted earnings per share attributable to common shareholders $ 0.22 $ 0.28 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax diluted per share adjustments $ 0.22 $ 0.30 Adjusted earnings per share before tax expense $ 0.11 $ 0.34 Tax (benefit) expense per share adjustment $ (0.11 ) $ 0.03 Adjusted earnings per share - adjusted net income $ 0.22 $ 0.31 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.05 Adjusted earnings per share attributable to common shareholders $ 0.20 $ 0.26 BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands except per share data) Combined Statement of Operations Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Contract costs (exclusive of depreciation and amortization) 46,905 37,373 Operating expense 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Net margin (1.6 )% 0.7 % Other financial information 1 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA 12,128 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Less: sub-consultants and other direct expenses 9,218 8,538 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA Reconciliation For the Three Months Ended March 31, 2024 2023 Net Service Billing $ 85,689 $ 67,562 Net (loss) income $ (1,558 ) $ 537 + interest expense 2,131 896 + depreciation & amortization 5,995 3,565 + tax (benefit) (3,453 ) (213 ) EBITDA $ 3,115 $ 4,785 + non-cash stock compensation 7,861 4,434 + settlements and other non-core expenses 399 – + acquisition expenses 753 454 Adjusted EBITDA $ 12,128 $ 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % 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 2024 % 2023 % Change % Change Building Infrastructure 52,785 55.6 % 44,337 58.3 % 8,448 19.1 % Transportation 18,128 19.1 % 16,019 21.0 % 2,109 13.2 % Power and Utilities 18,467 19.5 % 13,324 17.5 % 5,143 38.6 % Other Emerging Markets1 5,527 5.8 % 2,420 3.2 % 3,107 128.4 % Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % (dollars in thousands) For the Three Months Ended March 31, Organic v Acquired Revenue 2024 % 2023 % Change % Change Organic 76,433 80.5 % 76,100 100.0 % 333 0.4 % Acquired2 18,474 19.5 % – – % 18,474 n/a Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % 1 Represents environmental, mining, water resources and other. 2 After four quarters post-closing, acquired revenue is reclassified as organic; this results in a change from previously reported numbers. BOWMAN CONSULTING GROUP LTD. GROSS BACKLOG BY CATEGORY AT MARCH 31, 2024 (Unaudited) Category Percentage Building Infrastructure 51 % Transportation 28 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240506684225/en/Contacts Investor Relations: Bruce Labovitz ir@bowman.com (703) 464-1029 Betsy Patterson ir@bowman.com (310) 622-8227 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Bowman Announces Financial Results for Three Months Ended March 31, 2024 By: Bowman Consulting Group via Business Wire May 06, 2024 at 16:05 PM EDT Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering and infrastructure services firm supporting owners and developers of the built environment, today released financial results for the three months ended March 31, 2024. “The first quarter delivered the revenue rebound we were expecting,” said Gary Bowman, Chairman and CEO of Bowman. “Net service billing increased consecutively each month during the quarter in line with our expectations. Demand for engineering services remains strong and we generated healthy new orders during the quarter, especially in transportation which showed a meaningful increase as a percentage of total backlog. With the bulk of our organic growth anticipated to occur during the balance of 2024, we are confident we have sufficient revenue in backlog and a right-sized organizational infrastructure to deliver expanding margins as we realize the increasing benefits of scale throughout the year. We are pleased to increase our net service billing and adjusted EBITDA guidance once again for 2024.” “In early April we closed on an equity offering that included approximately $51 million of gross proceeds to the company,” continued Bowman. “Then, last week we closed on a new $100 million revolving credit facility with Bank of America and TD Bank and separately on an $11 million cash-out refinancing of recently acquired Surdex aviation assets. As a result of these efforts, we believe we are sufficiently capitalized to continue to grow and execute on our current high-frequency acquisition strategy.” Financial Highlights for the Three Months Ended March 31, 2024, Compared to March 31, 2023: Gross contract revenue of $94.9 million, compared to $76.1 million, a 25% increase Year-over-year organic gross contract revenue growth1 of 1% Net service billing2 of $85.7 million, compared to $67.6 million, a 27% increase Year-over-year organic net service billing growth of 3% Net loss of $1.6 million3, compared to net income of $0.5 million Adjusted EBITDA2 of $12.1 million, compared to $9.7 million, a 25% increase Adjusted EBITDA margin, net 2 of 14.2% compared to 14.3%, a 10 bps decrease Gross backlog2 of $330 million, compared to $252 million, a 31% increase Subsequent Events of Note: On April 1, 2024, the Company closed on a $51 million equity offering On April 4, 2024, the Company closed on the acquisition of Surdex Corporation On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America On May 3, 2024, the Company closed on a new $11 million cash-out refinancing of its Surdex aviation assets Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results the Company reported the non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”) as follows: For the three months ended March 31, 2024, compared to March 31, 2023: Basic Adjusted EPS was $0.22 compared to $0.28 Diluted Adjusted EPS was $0.20 compared to $0.26 To calculate Adjusted EPS, the Company adds back non-reoccurring expenses specific to acquisitions, non-cash stock compensation expense associated with pre-IPO grants, and other expenses not in the ordinary course of business. With respect to the elimination of any non-cash stock compensation expense, the Company computes an adjusted tax expense or benefit which accounts for the elimination of any periodic windfall or shortfall tax effects resulting from the difference between grant date fair value and vest date value. With respect to all other eliminations, the Company applies its average marginal statutory tax rate, currently 25.6%, to derive the tax adjustment associated with the elimination of these expenses. A reconciliation of non-GAAP Adjusted EPS to GAAP EPS, both basic and diluted, is included with this press release for reference. Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $382 to $397 million and Adjusted EBITDA2 in the range of $63 to $69 million. The current outlook for 2024 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management discusses the Company’s acquisition pipeline and its prospective impact during regularly scheduled earnings calls. Q1 2024 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: May 7, 2024 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 To the extent applicable, includes reclassification of acquisitions closed in same period of the prior year to organic revenue in the prior period. 2 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. 3 Includes an additional $1.3 million accrual for penalties and interest (P&I) in connection with the Company’s Section 174-related uncertain tax provision (UTP). Accruals for P&I are subject to reversal prior to payment if the Company elects to unwinds its UTP. About Bowman Consulting Group Ltd. Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. 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. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets Cash and equivalents $ 11,673 $ 20,687 Accounts receivable, net 95,975 87,565 Contract assets 36,673 33,520 Notes receivable - officers, employees, affiliates, current portion 1,181 1,199 Prepaid and other current assets 17,365 11,806 Total current assets 162,867 154,777 Non-Current Assets Property and equipment, net 28,122 27,601 Operating lease, right-of-use assets 40,236 40,743 Goodwill 102,538 96,393 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,116 1,119 Other intangible assets, net 45,525 46,294 Deferred tax asset, net 37,981 33,780 Other assets 1,250 1,175 Total Assets $ 420,538 $ 402,785 LIABILITIES AND EQUITY Current Liabilities Revolving credit facility 47,254 45,290 Accounts payable and accrued liabilities, current portion 49,015 44,394 Contract liabilities 7,955 7,481 Notes payable, current portion 13,672 13,989 Operating lease obligation, less current portion 9,567 9,016 Finance lease obligation, current portion 7,271 6,586 Total current liabilities 134,734 126,756 Non-Current Liabilities Other non-current obligations 50,095 42,288 Notes payable, less current portion 12,177 13,738 Operating lease obligation, less current portion 36,659 37,660 Finance lease obligation, less current portion 14,987 14,408 Pension and post-retirement obligation, less current portion 4,630 4,654 Total liabilities $ 253,282 $ 239,504 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 18,191,818 shares issued and 15,428,519 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of March 31, 2024 and December 31, 2023, respectively 182 177 Additional paid-in-capital 226,681 215,420 Accumulated other comprehensive income 579 590 Treasury stock, at cost; 2,763,299 and 2,600,217, respectively (32,142 ) (26,410 ) Stock subscription notes receivable (66 ) (76 ) Accumulated deficit (27,978 ) (26,420 ) Total shareholders' equity $ 167,256 $ 163,281 TOTAL LIABILITIES AND EQUITY $ 420,538 $ 402,785 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) (Unaudited) For the Three Months Ended March 31, 2024 2023 Gross Contract Revenue $ 94,907 $ 76,100 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 37,687 28,835 Sub-consultants and expenses 9,218 8,538 Total contract costs 46,905 37,373 Operating Expenses: Selling, general and administrative 44,713 33,636 Depreciation and amortization 5,995 3,565 Gain on sale (96 ) (11 ) Total operating expenses 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 (Loss) Income before tax expense (5,011 ) 324 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Earnings allocated to non-vested shares – 69 Net (loss) income attributable to common shareholders $ (1,558 ) $ 468 (Loss) Earnings per share Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Weighted average shares outstanding: Basic 13,827,728 11,800,308 Diluted 13,827,728 12,669,581 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities: Net (Loss) Income $ (1,558 ) $ 537 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 2,656 2,196 Amortization of intangible assets 3,339 1,369 Gain on sale of assets (96 ) (11 ) Credit losses 402 222 Stock based compensation 7,829 4,363 Accretion of discounts on notes payable 117 140 Deferred taxes (4,201 ) (3,669 ) Changes in operating assets and liabilities Accounts receivable (7,946 ) (2,943 ) Contract assets (2,151 ) (3,610 ) Prepaid expenses and other assets (5,523 ) (533 ) Accounts payable and accrued expenses 10,614 7,748 Contract liabilities (963 ) 469 Net cash provided by operating activities 2,519 6,278 Cash Flows from Investing Activities: Purchases of property and equipment (262 ) (536 ) Fixed assets converted to lease financing 424 - Proceeds from sale of assets and disposal of leases 96 11 Payments received under loans to shareholders 20 105 Acquisitions of businesses, net of cash acquired (3,027 ) - Collections under stock subscription notes receivable 10 22 Net cash used in investing activities (2,739 ) (398 ) Cash Flows from Financing Activities: Borrowings under revolving credit facility 1,964 – Repayments under fixed line of credit (49 ) (185 ) Repayment under notes payable (3,734 ) (2,685 ) Payments on finance leases (1,716 ) (1,687 ) Payments for purchase of treasury stock (5,732 ) (667 ) Proceeds from issuance of common stock 473 390 Net cash used in financing activities (8,794 ) (4,834 ) Net (decrease) increase in cash and cash equivalents (9,014 ) 1,046 Cash and cash equivalents, beginning of period 20,687 13,282 Cash and cash equivalents, end of period $ 11,673 $ 14,328 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,962 $ 757 Cash paid for income taxes $ 11 $ - Non-cash investing and financing activities Property and equipment acquired under finance lease $ (3,002 ) $ (2,964 ) Note payable converted to common shares $ (672 ) $ - Issuance of notes payable for acquisitions $ (2,461 ) $ - BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended March 31, 2024 2023 Net (loss) income (GAAP) $ (1,558 ) $ 537 + tax (benefit) (GAAP) (3,453 ) (213 ) (Loss) Income before tax expense (GAAP) $ (5,011 ) $ 324 + acquisition related expenses 1,350 849 + amortization of intangibles 3,339 1,369 + non-cash stock comp related to pre-IPO 1,557 1,722 + other non-core expenses 399 – Adjusted income before tax expense $ 1,634 $ 4,264 Adjusted income tax (benefit) expense (1,660 ) 496 Adjusted net income $ 3,294 $ 3,768 Adjusted earnings allocated to non-vested shares 310 488 Adjusted net income attributable to common shareholders $ 2,984 $ 3,280 (Loss) Earnings per share (GAAP) Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Adjusted earnings per share (Non-GAAP) Basic $ 0.22 $ 0.28 Diluted $ 0.20 $ 0.26 Weighted average shares outstanding Basic 13,827,728 11,800,308 Diluted 14,561,032 12,669,581 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax basic per share adjustments $ 0.23 $ 0.32 Adjusted earnings per share before tax expense $ 0.12 $ 0.36 Tax (benefit) expense per share adjustment $ (0.12 ) $ 0.04 Adjusted earnings per share - adjusted net income $ 0.24 $ 0.32 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.04 Adjusted earnings per share attributable to common shareholders $ 0.22 $ 0.28 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax diluted per share adjustments $ 0.22 $ 0.30 Adjusted earnings per share before tax expense $ 0.11 $ 0.34 Tax (benefit) expense per share adjustment $ (0.11 ) $ 0.03 Adjusted earnings per share - adjusted net income $ 0.22 $ 0.31 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.05 Adjusted earnings per share attributable to common shareholders $ 0.20 $ 0.26 BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands except per share data) Combined Statement of Operations Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Contract costs (exclusive of depreciation and amortization) 46,905 37,373 Operating expense 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Net margin (1.6 )% 0.7 % Other financial information 1 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA 12,128 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Less: sub-consultants and other direct expenses 9,218 8,538 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA Reconciliation For the Three Months Ended March 31, 2024 2023 Net Service Billing $ 85,689 $ 67,562 Net (loss) income $ (1,558 ) $ 537 + interest expense 2,131 896 + depreciation & amortization 5,995 3,565 + tax (benefit) (3,453 ) (213 ) EBITDA $ 3,115 $ 4,785 + non-cash stock compensation 7,861 4,434 + settlements and other non-core expenses 399 – + acquisition expenses 753 454 Adjusted EBITDA $ 12,128 $ 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % 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 2024 % 2023 % Change % Change Building Infrastructure 52,785 55.6 % 44,337 58.3 % 8,448 19.1 % Transportation 18,128 19.1 % 16,019 21.0 % 2,109 13.2 % Power and Utilities 18,467 19.5 % 13,324 17.5 % 5,143 38.6 % Other Emerging Markets1 5,527 5.8 % 2,420 3.2 % 3,107 128.4 % Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % (dollars in thousands) For the Three Months Ended March 31, Organic v Acquired Revenue 2024 % 2023 % Change % Change Organic 76,433 80.5 % 76,100 100.0 % 333 0.4 % Acquired2 18,474 19.5 % – – % 18,474 n/a Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % 1 Represents environmental, mining, water resources and other. 2 After four quarters post-closing, acquired revenue is reclassified as organic; this results in a change from previously reported numbers. BOWMAN CONSULTING GROUP LTD. GROSS BACKLOG BY CATEGORY AT MARCH 31, 2024 (Unaudited) Category Percentage Building Infrastructure 51 % Transportation 28 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240506684225/en/Contacts Investor Relations: Bruce Labovitz ir@bowman.com (703) 464-1029 Betsy Patterson ir@bowman.com (310) 622-8227
Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering and infrastructure services firm supporting owners and developers of the built environment, today released financial results for the three months ended March 31, 2024. “The first quarter delivered the revenue rebound we were expecting,” said Gary Bowman, Chairman and CEO of Bowman. “Net service billing increased consecutively each month during the quarter in line with our expectations. Demand for engineering services remains strong and we generated healthy new orders during the quarter, especially in transportation which showed a meaningful increase as a percentage of total backlog. With the bulk of our organic growth anticipated to occur during the balance of 2024, we are confident we have sufficient revenue in backlog and a right-sized organizational infrastructure to deliver expanding margins as we realize the increasing benefits of scale throughout the year. We are pleased to increase our net service billing and adjusted EBITDA guidance once again for 2024.” “In early April we closed on an equity offering that included approximately $51 million of gross proceeds to the company,” continued Bowman. “Then, last week we closed on a new $100 million revolving credit facility with Bank of America and TD Bank and separately on an $11 million cash-out refinancing of recently acquired Surdex aviation assets. As a result of these efforts, we believe we are sufficiently capitalized to continue to grow and execute on our current high-frequency acquisition strategy.” Financial Highlights for the Three Months Ended March 31, 2024, Compared to March 31, 2023: Gross contract revenue of $94.9 million, compared to $76.1 million, a 25% increase Year-over-year organic gross contract revenue growth1 of 1% Net service billing2 of $85.7 million, compared to $67.6 million, a 27% increase Year-over-year organic net service billing growth of 3% Net loss of $1.6 million3, compared to net income of $0.5 million Adjusted EBITDA2 of $12.1 million, compared to $9.7 million, a 25% increase Adjusted EBITDA margin, net 2 of 14.2% compared to 14.3%, a 10 bps decrease Gross backlog2 of $330 million, compared to $252 million, a 31% increase Subsequent Events of Note: On April 1, 2024, the Company closed on a $51 million equity offering On April 4, 2024, the Company closed on the acquisition of Surdex Corporation On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America On May 3, 2024, the Company closed on a new $11 million cash-out refinancing of its Surdex aviation assets Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results the Company reported the non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”) as follows: For the three months ended March 31, 2024, compared to March 31, 2023: Basic Adjusted EPS was $0.22 compared to $0.28 Diluted Adjusted EPS was $0.20 compared to $0.26 To calculate Adjusted EPS, the Company adds back non-reoccurring expenses specific to acquisitions, non-cash stock compensation expense associated with pre-IPO grants, and other expenses not in the ordinary course of business. With respect to the elimination of any non-cash stock compensation expense, the Company computes an adjusted tax expense or benefit which accounts for the elimination of any periodic windfall or shortfall tax effects resulting from the difference between grant date fair value and vest date value. With respect to all other eliminations, the Company applies its average marginal statutory tax rate, currently 25.6%, to derive the tax adjustment associated with the elimination of these expenses. A reconciliation of non-GAAP Adjusted EPS to GAAP EPS, both basic and diluted, is included with this press release for reference. Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $382 to $397 million and Adjusted EBITDA2 in the range of $63 to $69 million. The current outlook for 2024 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. Management discusses the Company’s acquisition pipeline and its prospective impact during regularly scheduled earnings calls. Q1 2024 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: May 7, 2024 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 To the extent applicable, includes reclassification of acquisitions closed in same period of the prior year to organic revenue in the prior period. 2 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. 3 Includes an additional $1.3 million accrual for penalties and interest (P&I) in connection with the Company’s Section 174-related uncertain tax provision (UTP). Accruals for P&I are subject to reversal prior to payment if the Company elects to unwinds its UTP. About Bowman Consulting Group Ltd. Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. 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. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Current Assets Cash and equivalents $ 11,673 $ 20,687 Accounts receivable, net 95,975 87,565 Contract assets 36,673 33,520 Notes receivable - officers, employees, affiliates, current portion 1,181 1,199 Prepaid and other current assets 17,365 11,806 Total current assets 162,867 154,777 Non-Current Assets Property and equipment, net 28,122 27,601 Operating lease, right-of-use assets 40,236 40,743 Goodwill 102,538 96,393 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,116 1,119 Other intangible assets, net 45,525 46,294 Deferred tax asset, net 37,981 33,780 Other assets 1,250 1,175 Total Assets $ 420,538 $ 402,785 LIABILITIES AND EQUITY Current Liabilities Revolving credit facility 47,254 45,290 Accounts payable and accrued liabilities, current portion 49,015 44,394 Contract liabilities 7,955 7,481 Notes payable, current portion 13,672 13,989 Operating lease obligation, less current portion 9,567 9,016 Finance lease obligation, current portion 7,271 6,586 Total current liabilities 134,734 126,756 Non-Current Liabilities Other non-current obligations 50,095 42,288 Notes payable, less current portion 12,177 13,738 Operating lease obligation, less current portion 36,659 37,660 Finance lease obligation, less current portion 14,987 14,408 Pension and post-retirement obligation, less current portion 4,630 4,654 Total liabilities $ 253,282 $ 239,504 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of March 31, 2024 and December 31, 2023 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 18,191,818 shares issued and 15,428,519 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of March 31, 2024 and December 31, 2023, respectively 182 177 Additional paid-in-capital 226,681 215,420 Accumulated other comprehensive income 579 590 Treasury stock, at cost; 2,763,299 and 2,600,217, respectively (32,142 ) (26,410 ) Stock subscription notes receivable (66 ) (76 ) Accumulated deficit (27,978 ) (26,420 ) Total shareholders' equity $ 167,256 $ 163,281 TOTAL LIABILITIES AND EQUITY $ 420,538 $ 402,785 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) (Unaudited) For the Three Months Ended March 31, 2024 2023 Gross Contract Revenue $ 94,907 $ 76,100 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 37,687 28,835 Sub-consultants and expenses 9,218 8,538 Total contract costs 46,905 37,373 Operating Expenses: Selling, general and administrative 44,713 33,636 Depreciation and amortization 5,995 3,565 Gain on sale (96 ) (11 ) Total operating expenses 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 (Loss) Income before tax expense (5,011 ) 324 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Earnings allocated to non-vested shares – 69 Net (loss) income attributable to common shareholders $ (1,558 ) $ 468 (Loss) Earnings per share Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Weighted average shares outstanding: Basic 13,827,728 11,800,308 Diluted 13,827,728 12,669,581 BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Three Months Ended March 31, 2024 2023 Cash Flows from Operating Activities: Net (Loss) Income $ (1,558 ) $ 537 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 2,656 2,196 Amortization of intangible assets 3,339 1,369 Gain on sale of assets (96 ) (11 ) Credit losses 402 222 Stock based compensation 7,829 4,363 Accretion of discounts on notes payable 117 140 Deferred taxes (4,201 ) (3,669 ) Changes in operating assets and liabilities Accounts receivable (7,946 ) (2,943 ) Contract assets (2,151 ) (3,610 ) Prepaid expenses and other assets (5,523 ) (533 ) Accounts payable and accrued expenses 10,614 7,748 Contract liabilities (963 ) 469 Net cash provided by operating activities 2,519 6,278 Cash Flows from Investing Activities: Purchases of property and equipment (262 ) (536 ) Fixed assets converted to lease financing 424 - Proceeds from sale of assets and disposal of leases 96 11 Payments received under loans to shareholders 20 105 Acquisitions of businesses, net of cash acquired (3,027 ) - Collections under stock subscription notes receivable 10 22 Net cash used in investing activities (2,739 ) (398 ) Cash Flows from Financing Activities: Borrowings under revolving credit facility 1,964 – Repayments under fixed line of credit (49 ) (185 ) Repayment under notes payable (3,734 ) (2,685 ) Payments on finance leases (1,716 ) (1,687 ) Payments for purchase of treasury stock (5,732 ) (667 ) Proceeds from issuance of common stock 473 390 Net cash used in financing activities (8,794 ) (4,834 ) Net (decrease) increase in cash and cash equivalents (9,014 ) 1,046 Cash and cash equivalents, beginning of period 20,687 13,282 Cash and cash equivalents, end of period $ 11,673 $ 14,328 Supplemental disclosures of cash flow information: Cash paid for interest $ 1,962 $ 757 Cash paid for income taxes $ 11 $ - Non-cash investing and financing activities Property and equipment acquired under finance lease $ (3,002 ) $ (2,964 ) Note payable converted to common shares $ (672 ) $ - Issuance of notes payable for acquisitions $ (2,461 ) $ - BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended March 31, 2024 2023 Net (loss) income (GAAP) $ (1,558 ) $ 537 + tax (benefit) (GAAP) (3,453 ) (213 ) (Loss) Income before tax expense (GAAP) $ (5,011 ) $ 324 + acquisition related expenses 1,350 849 + amortization of intangibles 3,339 1,369 + non-cash stock comp related to pre-IPO 1,557 1,722 + other non-core expenses 399 – Adjusted income before tax expense $ 1,634 $ 4,264 Adjusted income tax (benefit) expense (1,660 ) 496 Adjusted net income $ 3,294 $ 3,768 Adjusted earnings allocated to non-vested shares 310 488 Adjusted net income attributable to common shareholders $ 2,984 $ 3,280 (Loss) Earnings per share (GAAP) Basic $ (0.11 ) $ 0.04 Diluted $ (0.11 ) $ 0.04 Adjusted earnings per share (Non-GAAP) Basic $ 0.22 $ 0.28 Diluted $ 0.20 $ 0.26 Weighted average shares outstanding Basic 13,827,728 11,800,308 Diluted 14,561,032 12,669,581 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax basic per share adjustments $ 0.23 $ 0.32 Adjusted earnings per share before tax expense $ 0.12 $ 0.36 Tax (benefit) expense per share adjustment $ (0.12 ) $ 0.04 Adjusted earnings per share - adjusted net income $ 0.24 $ 0.32 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.04 Adjusted earnings per share attributable to common shareholders $ 0.22 $ 0.28 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended March 31, 2024 2023 (Loss) Earnings per share (GAAP) $ (0.11 ) $ 0.04 Pre-tax diluted per share adjustments $ 0.22 $ 0.30 Adjusted earnings per share before tax expense $ 0.11 $ 0.34 Tax (benefit) expense per share adjustment $ (0.11 ) $ 0.03 Adjusted earnings per share - adjusted net income $ 0.22 $ 0.31 Adjusted earnings per share allocated to non-vested shares $ 0.02 $ 0.05 Adjusted earnings per share attributable to common shareholders $ 0.20 $ 0.26 BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Amounts in thousands except per share data) Combined Statement of Operations Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Contract costs (exclusive of depreciation and amortization) 46,905 37,373 Operating expense 50,612 37,190 (Loss) Income from operations (2,610 ) 1,537 Other expense 2,401 1,213 Income tax (benefit) (3,453 ) (213 ) Net (loss) income $ (1,558 ) $ 537 Net margin (1.6 )% 0.7 % Other financial information 1 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA 12,128 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended March 31, 2024 2023 Gross contract revenue $ 94,907 $ 76,100 Less: sub-consultants and other direct expenses 9,218 8,538 Net service billing $ 85,689 $ 67,562 Adjusted EBITDA Reconciliation For the Three Months Ended March 31, 2024 2023 Net Service Billing $ 85,689 $ 67,562 Net (loss) income $ (1,558 ) $ 537 + interest expense 2,131 896 + depreciation & amortization 5,995 3,565 + tax (benefit) (3,453 ) (213 ) EBITDA $ 3,115 $ 4,785 + non-cash stock compensation 7,861 4,434 + settlements and other non-core expenses 399 – + acquisition expenses 753 454 Adjusted EBITDA $ 12,128 $ 9,673 Adjusted EBITDA margin, net 14.2 % 14.3 % 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 2024 % 2023 % Change % Change Building Infrastructure 52,785 55.6 % 44,337 58.3 % 8,448 19.1 % Transportation 18,128 19.1 % 16,019 21.0 % 2,109 13.2 % Power and Utilities 18,467 19.5 % 13,324 17.5 % 5,143 38.6 % Other Emerging Markets1 5,527 5.8 % 2,420 3.2 % 3,107 128.4 % Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % (dollars in thousands) For the Three Months Ended March 31, Organic v Acquired Revenue 2024 % 2023 % Change % Change Organic 76,433 80.5 % 76,100 100.0 % 333 0.4 % Acquired2 18,474 19.5 % – – % 18,474 n/a Total 94,907 100.0 % 76,100 100.0 % 18,807 24.7 % 1 Represents environmental, mining, water resources and other. 2 After four quarters post-closing, acquired revenue is reclassified as organic; this results in a change from previously reported numbers. BOWMAN CONSULTING GROUP LTD. GROSS BACKLOG BY CATEGORY AT MARCH 31, 2024 (Unaudited) Category Percentage Building Infrastructure 51 % Transportation 28 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240506684225/en/
Investor Relations: Bruce Labovitz ir@bowman.com (703) 464-1029 Betsy Patterson ir@bowman.com (310) 622-8227
