Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bowman Consulting Group Announces Record Second Quarter Results and Increases 2022 Outlook By: Bowman Consulting Group Ltd. via Business Wire August 11, 2022 at 16:05 PM EDT 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/Contacts Investor Relations Bruce Labovitz ir@bowman.com (703) 787-3403 Megan McGrath mmcgrath@finprofiles.com (310) 622-8248 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 Consulting Group Announces Record Second Quarter Results and Increases 2022 Outlook By: Bowman Consulting Group Ltd. via Business Wire August 11, 2022 at 16:05 PM EDT 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/Contacts Investor Relations Bruce Labovitz ir@bowman.com (703) 787-3403 Megan McGrath mmcgrath@finprofiles.com (310) 622-8248
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