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 Announces Fiscal Year 2023 Financial Results By: Bowman Consulting Group via Business Wire March 11, 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 fiscal year ended December 31, 2023. “This past year we surpassed $300 million in net service billing representing nearly 30% year-over-year growth and approximately 31% compound annual growth since 2020, the year before our May 2021 initial public offering,” said Gary Bowman, Chairman and CEO of Bowman. “We remain focused on becoming one of the 50 largest domestic engineering firms and are continually working to optimize the utilization of our resources as we advance toward this goal. Our pipeline of opportunities, including both new and existing customer assignments and prospective acquisitions, is healthy, and the significant public funding available for infrastructure projects provides a positive outlook for the future.” “During 2023 we completed 11 acquisitions representing approximately $60 million in annualized net service billing,” continued Bowman. “We added new customers and grew our relationships with existing customers while expanding our geographic footprint and increasing our ability to gain both market-share and wallet-share through the introduction of adjacent service offerings and leading-edge geospatial solutions. We remain committed to our fully integrated operating model as we continue to weave together a diverse mix of acquired organizations into one common culture. We are confident about our long-term prospects and believe our approach to growth will continue to deliver shareholder value.” Financial highlights for the three months ended December 31, 2023, compared to December 31, 2022: Gross contract revenue of $93.0 million, compared to $75.6 million, a 23% increase Year-over-year organic gross contract revenue growth1 of 6% Net service billing2 of $80.5 million, compared to $66.2 million, a 22% increase Year-over-year organic net service billing growth of 4% Net loss of $7.7 million, compared to net income of $0.5 million Adjusted EBITDA2 of $11.2 million, compared to $9.4 million, a 19% increase Adjusted EBITDA margin, net 2 of 14.0% compared to 14.2%, a 20 bps decrease Gross backlog2 of $306 million, compared to $243 million, a 26% increase Financial highlights for fiscal year 2023, compared to fiscal year 2022: Gross contract revenue of $346.3 million, compared to $261.7 million, a 32% increase Year-over-year organic gross contract revenue growth1 of 21% Net service billing2 of $304.0 million, compared to $235.2 million, a 29% increase Year-over-year organic net service billing growth of 18% Net loss of $6.6 million, compared to a net income of $5.0 million Adjusted EBITDA2 of $47.0 million, compared to $34.0 million, a 38% increase Adjusted EBITDA margin, net 2 of 15.5% compared to 14.5%, a 100 bps increase Impact of IRC Section 174 Research & Development Tax Expense Deductibility The Tax Cuts and Jobs Act (“TCJA”) drastically altered IRC Section 174 and the treatment of Research and Experimental (“R&E”) expenditures for tax years beginning after December 31, 2021. Prior to this alteration, under IRC Sec. 174 businesses were permitted to deduct the full amount of R&E expenditures as an expense in the taxable year in which they were incurred. As amended, IRC Sec. 174 eliminated the ability for U.S. businesses to deduct their R&E expenditures as an expense, instead requiring businesses to capitalize these expenses and amortize them over a period of five years resulting in acceleration of tax remittance. The Company maintains an uncertain tax position (“UTP”) with respect to its position that its R&E expenses are not subject to the altered IRC Sec. 174 treatment based on specific facts and circumstances. The Company’s tax expense for the three months ended December 31, 2023 and full-year 2023 include a $4.6 million accrual relating to the UTP and the Company is carrying approximately $38 million of associated deferred tax assets. On January 31, 2024, the US House of Representatives passed HR 7024, the Tax Relief for American Families and Workers Act of 2024, on a bi-partisan basis, which, among other things, restores U.S. taxpayers’ ability to deduct currently, and retroactively, domestic R&E costs paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2026. If HR 7024 is adopted by the U.S. Senate and the President, the Company would reverse its UTP related liability, tax expense and deferred tax assets. Activity Under Stock Repurchase Program: In November 2022, the Company's Board of Directors authorized a stock repurchase program ("2022 Stock Repurchase Program") to repurchase up to $10.0 million of the Company’s common stock. As previously disclosed, during the twelve months ended December 31, 2023 the Company repurchased a total of 28,704 shares of its common stock at an average price of $25.94. The 2022 Stock Repurchase Program expired on November 10, 2023. On November 17, 2023, the Company’s Board of Directors authorized a new $10.0 million repurchase program ("2023 Stock Repurchase Program"). As of March 11, 2024, the Company has $10.0 million remaining under the 2023 Stock Repurchase Program. Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results for the three and nine months ended September 30, 2023, the Company introduced the new non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”). 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. For the three months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $0.33 compared to $0.44 Diluted Adjusted EPS was $0.31 compared to $0.41 For the twelve months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $1.12 compared to $1.46 Diluted Adjusted EPS was $1.03 compared to $1.36 Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $363 to $378 million and Adjusted EBITDA2 in the range of $59 to $65 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. “Our 2024 forecast assumes uneven growth in net service billing from first to third quarter with an accommodation for a modest seasonal impact during the fourth quarter,” said Bruce Labovitz, Chief Financial Officer at Bowman. “Generally speaking, we have found that it can take acquisitions a couple of months to return to normal net service billing levels due to the unusual demands of immediate post-closing integration. We reiterate that when acquisitions are added to guidance, we include a pro-rated amount of announced annualized net service billing run rate that is based on the timing of closing and anticipated integration related revenue disruptions.” Q4 2023 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: March 12, 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 Includes reclassification of 2022 Q4 acquisitions as organic revenue. 2 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 a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,000 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. CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) December 31, 2023 December 31, 2022 ASSETS Current Assets Cash and equivalents $ 20,687 $ 13,282 Accounts receivable, net 87,565 64,443 Contract assets 33,520 16,321 Notes receivable - officers, employees, affiliates, current portion 1,199 1,016 Prepaid and other current assets 11,806 7,068 Total current assets 154,777 102,130 Non-Current Assets Property and equipment, net 27,601 25,104 Operating lease, right-of-use assets 40,743 30,264 Goodwill 96,393 53,210 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,119 1,417 Other intangible assets, net 46,294 27,950 Deferred tax asset, net 33,780 13,759 Other assets 1,175 1,020 Total Assets $ 402,785 $ 255,757 LIABILITIES AND EQUITY Current Liabilities Bank line of credit 45,290 – Accounts payable and accrued liabilities, current portion 44,394 40,293 Contract liabilities 7,481 6,370 Notes payable, current portion 13,989 10,168 Operating lease obligation, less current portion 9,016 6,949 Finance lease obligation, current portion 6,586 5,297 Total current liabilities 126,756 69,077 Non-Current Liabilities Other non-current obligations 42,288 356 Notes payable, less current portion 13,738 16,276 Operating lease obligation, less current portion 37,660 28,087 Finance lease obligation, less current portion 14,408 14,254 Pension and post-retirement obligation, less current portion 4,654 4,848 Total liabilities $ 239,504 $ 132,898 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of December 31, 2023 and 2022; 17,694,495 shares issued and 15,094,278 outstanding, and 15,949,805 shares issued and 13,556,550 outstanding as of December 31, 2023 and 2022, respectively 177 159 Additional paid-in-capital 215,420 162,922 Treasury stock, at cost; 2,393,255 and 2,201,289, respectively (26,410 ) (20,831 ) Accumulated other comprehensive income 590 578 Stock subscription notes receivable (76 ) (173 ) Accumulated deficit (26,420 ) (19,796 ) Total shareholders' equity $ 163,281 $ 122,859 TOTAL LIABILITIES AND EQUITY $ 402,785 $ 255,757 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross Contract Revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 33,679 26,753 127,961 100,076 Sub-consultants and expenses 12,453 9,424 42,262 26,510 Total contract costs 46,132 36,177 170,223 126,586 Operating Expenses: Selling, general and administrative 44,655 34,993 158,377 117,839 Depreciation and amortization 5,939 3,901 18,723 12,251 Gain on sale (64 ) (39 ) (411 ) (82 ) Total operating expenses 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 (Loss) Income before tax expense (5,632 ) (720 ) (6,447 ) 1,736 Income tax (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Earnings allocated to non-vested shares – 67 – 783 Net (loss) income attributable to common shareholders $ (7,710 ) $ 403 $ (6,624 ) $ 4,222 (Loss) Earnings per share Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Weighted average shares outstanding: Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,043,111 12,234,109 12,490,914 11,683,758 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2023 2022 Cash Flows from Operating Activities: Net (Loss) Income $ (6,624 ) $ 5,005 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 9,732 8,363 Amortization of intangible assets 8,991 3,888 Gain on sale of assets (411 ) (82 ) Bad debt 515 742 Stock based compensation 24,738 15,097 Deferred taxes (25,529 ) (18,049 ) Accretion of discounts on notes payable 642 258 Changes in operating assets and liabilities Accounts receivable (13,559 ) (13,779 ) Contract assets (10,866 ) (4,575 ) Prepaid expenses and other assets 143 (2,126 ) Accounts payable and accrued expenses 27,728 15,802 Contract liabilities (3,778 ) (1,374 ) Net cash provided by operating activities 11,722 9,170 Cash Flows from Investing Activities: Purchases of property and equipment (2,093 ) (902 ) Proceeds from sale of assets 411 35 Amounts advanced under loans to shareholders – (5 ) Payments received under loans to shareholders 115 49 Acquisitions of businesses, net of cash acquired (25,687 ) (18,035 ) Collections under stock subscription notes receivable 98 104 Net cash used in investing activities (27,156 ) (18,754 ) Cash Flows from Financing Activities: Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs – 15,475 Borrowings under revolving credit facility 45,290 – Repayments under fixed line of credit (430 ) (734 ) Repayment under notes payable (11,237 ) (4,595 ) Payments on finance leases (6,782 ) (6,027 ) Payments for purchase of treasury stock (4,833 ) (3,343 ) Repurchases of common stock (745 ) – Proceeds from issuance of common stock 1,576 1,471 Net cash provided by financing activities 22,839 2,247 Net increase (decrease) in cash and cash equivalents 7,405 (7,337 ) Cash and cash equivalents, beginning of period 13,282 20,619 Cash and cash equivalents, end of period $ 20,687 $ 13,282 Supplemental disclosures of cash flow information: Cash paid for interest $ 4,212 $ 1,896 Cash paid for income taxes $ 1,133 $ 400 Non-cash investing and financing activities Property and equipment acquired under finance lease $ (8,246 ) $ (8,118 ) Note payable converted to common shares $ (1,343 ) $ - Issuance of notes payable for acquisitions $ (13,650 ) $ (19,089 ) Issuance of contingent consideration $ (8,909 ) $ (487 ) BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net (loss) income (GAAP) $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + tax expense (benefit) (GAAP) 2,078 (1,190 ) 177 (3,269 ) (Loss) Income before tax expense (GAAP) $ (5,632 ) $ (720 ) $ (6,447 ) $ 1,736 + acquisition related expenses 2,849 978 5,025 2,414 + amortization of intangibles 3,378 1,904 8,991 3,888 + non-cash stock comp related to pre-IPO 1,747 1,879 6,955 7,992 + other non-core expenses 249 439 923 654 Adjusted income before tax expense $ 2,591 $ 4,480 $ 15,447 $ 16,684 Adjusted income tax (benefit) (2,285 ) (1,394 ) (620 ) (2,216 ) Adjusted net income $ 4,876 $ 5,874 $ 16,067 $ 18,900 Adjusted earnings allocated to non-vested shares 584 837 2,028 2,955 Adjusted net income attributable to common shareholders $ 4,292 $ 5,037 $ 14,039 $ 15,945 (Loss) Earnings per share (GAAP) Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Adjusted earnings per share (Non-GAAP) Basic $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted $ 0.31 $ 0.41 $ 1.03 $ 1.36 Weighted average shares outstanding Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,984,138 12,234,109 13,681,711 11,683,758 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Pre-tax basic per share adjustments $ 0.79 $ 0.35 $ 1.78 $ 1.14 Adjusted earnings per share before tax expense $ 0.20 $ 0.38 $ 1.25 $ 1.53 Tax (benefit) per share adjustment $ (0.18 ) $ (0.12 ) $ (0.04 ) $ (0.20 ) Adjusted earnings per share - adjusted net income $ 0.38 $ 0.50 $ 1.29 $ 1.73 Adjusted earnings per share allocated to non-vested shares $ 0.05 $ 0.06 $ 0.17 $ 0.27 Adjusted earnings per share attributable to common shareholders $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Pre-tax diluted per share adjustments $ 0.78 $ 0.34 $ 1.66 $ 1.06 Adjusted earnings per share before tax expense $ 0.19 $ 0.37 $ 1.13 $ 1.43 Tax (benefit) per share adjustment $ (0.16 ) $ (0.11 ) $ (0.05 ) $ (0.19 ) Adjusted earnings per share - adjusted net income $ 0.35 $ 0.48 $ 1.18 $ 1.62 Adjusted earnings per share allocated to non-vested shares $ 0.04 $ 0.07 $ 0.15 $ 0.26 Adjusted earnings per share attributable to common shareholders $ 0.31 $ 0.41 $ 1.03 $ 1.36 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 December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs (exclusive of depreciation and amortization) 46,132 36,177 170,223 126,586 Operating expense 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 Income tax expense (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Net margin (8.3 ) % 0.6 % (1.9 ) % 1.9 % Other financial information 1 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA 11,249 9,415 47,031 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Less: sub-consultants and other direct expenses 12,453 9,424 42,262 26,510 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net Service Billing $ 80,516 $ 66,185 $ 303,994 $ 235,304 Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + interest expense 1,795 1,234 5,340 2,457 + depreciation & amortization 5,939 3,901 18,723 12,251 + tax (benefit) expense 2,078 (1,190 ) 177 (3,269 ) EBITDA $ 2,102 $ 4,415 $ 17,616 $ 16,444 + non-cash stock compensation 6,504 3,922 24,984 15,409 + settlements and other non-core expenses 310 439 1,170 654 + acquisition expenses 2,333 639 3,261 1,515 Adjusted EBITDA $ 11,249 $ 9,415 $ 47,031 $ 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % 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 December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 49,967 53.7 % 44,338 58.6 % 5,629 12.7 % Transportation 21,202 22.8 % 18,382 24.3 % 2,820 15.3 % Power and Utilities 16,684 17.9 % 8,302 11.0 % 8,382 101.0 % Emerging Markets1 5,116 5.6 % 4,587 6.1 % 529 11.5 % Total 92,969 100.0 % 75,609 100.0 % 17,360 23.0 % (dollars in thousands) For the Year Ended December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 194,867 56.3 % 170,431 65.1 % 24,436 14.3 % Transportation 72,829 21.0 % 44,846 17.1 % 27,983 62.4 % Power and Utilities 64,156 18.5 % 32,672 12.5 % 31,484 96.4 % Emerging Markets1 14,404 4.2 % 13,765 5.3 % 639 4.6 % Total 346,256 100.0 % 261,714 100.0 % 84,542 32.3 % (dollars in thousands) For the Three Months Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 79,974 86.0 % 75,609 100.0 % 4,366 5.8 % Acquired revenue 12,995 14.0 % – n/a n/a n/a Total 92,969 100.0 % 75,609 100.0 % 4,366 5.8 % (dollars in thousands) For the Year Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 315,759 91.2 % 261,714 100.0 % 54,045 20.7 % Acquired revenue 30,497 8.8 % – n/a n/a n/a Total 346,256 100.0 % 261,714 100.0 % 54,045 20.7 % 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 DECEMBER 31, 2023 (Unaudited) Category Percentage Building Infrastructure 55 % Transportation 24 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240311475972/en/Contacts Investor Relations Contacts: 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 Fiscal Year 2023 Financial Results By: Bowman Consulting Group via Business Wire March 11, 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 fiscal year ended December 31, 2023. “This past year we surpassed $300 million in net service billing representing nearly 30% year-over-year growth and approximately 31% compound annual growth since 2020, the year before our May 2021 initial public offering,” said Gary Bowman, Chairman and CEO of Bowman. “We remain focused on becoming one of the 50 largest domestic engineering firms and are continually working to optimize the utilization of our resources as we advance toward this goal. Our pipeline of opportunities, including both new and existing customer assignments and prospective acquisitions, is healthy, and the significant public funding available for infrastructure projects provides a positive outlook for the future.” “During 2023 we completed 11 acquisitions representing approximately $60 million in annualized net service billing,” continued Bowman. “We added new customers and grew our relationships with existing customers while expanding our geographic footprint and increasing our ability to gain both market-share and wallet-share through the introduction of adjacent service offerings and leading-edge geospatial solutions. We remain committed to our fully integrated operating model as we continue to weave together a diverse mix of acquired organizations into one common culture. We are confident about our long-term prospects and believe our approach to growth will continue to deliver shareholder value.” Financial highlights for the three months ended December 31, 2023, compared to December 31, 2022: Gross contract revenue of $93.0 million, compared to $75.6 million, a 23% increase Year-over-year organic gross contract revenue growth1 of 6% Net service billing2 of $80.5 million, compared to $66.2 million, a 22% increase Year-over-year organic net service billing growth of 4% Net loss of $7.7 million, compared to net income of $0.5 million Adjusted EBITDA2 of $11.2 million, compared to $9.4 million, a 19% increase Adjusted EBITDA margin, net 2 of 14.0% compared to 14.2%, a 20 bps decrease Gross backlog2 of $306 million, compared to $243 million, a 26% increase Financial highlights for fiscal year 2023, compared to fiscal year 2022: Gross contract revenue of $346.3 million, compared to $261.7 million, a 32% increase Year-over-year organic gross contract revenue growth1 of 21% Net service billing2 of $304.0 million, compared to $235.2 million, a 29% increase Year-over-year organic net service billing growth of 18% Net loss of $6.6 million, compared to a net income of $5.0 million Adjusted EBITDA2 of $47.0 million, compared to $34.0 million, a 38% increase Adjusted EBITDA margin, net 2 of 15.5% compared to 14.5%, a 100 bps increase Impact of IRC Section 174 Research & Development Tax Expense Deductibility The Tax Cuts and Jobs Act (“TCJA”) drastically altered IRC Section 174 and the treatment of Research and Experimental (“R&E”) expenditures for tax years beginning after December 31, 2021. Prior to this alteration, under IRC Sec. 174 businesses were permitted to deduct the full amount of R&E expenditures as an expense in the taxable year in which they were incurred. As amended, IRC Sec. 174 eliminated the ability for U.S. businesses to deduct their R&E expenditures as an expense, instead requiring businesses to capitalize these expenses and amortize them over a period of five years resulting in acceleration of tax remittance. The Company maintains an uncertain tax position (“UTP”) with respect to its position that its R&E expenses are not subject to the altered IRC Sec. 174 treatment based on specific facts and circumstances. The Company’s tax expense for the three months ended December 31, 2023 and full-year 2023 include a $4.6 million accrual relating to the UTP and the Company is carrying approximately $38 million of associated deferred tax assets. On January 31, 2024, the US House of Representatives passed HR 7024, the Tax Relief for American Families and Workers Act of 2024, on a bi-partisan basis, which, among other things, restores U.S. taxpayers’ ability to deduct currently, and retroactively, domestic R&E costs paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2026. If HR 7024 is adopted by the U.S. Senate and the President, the Company would reverse its UTP related liability, tax expense and deferred tax assets. Activity Under Stock Repurchase Program: In November 2022, the Company's Board of Directors authorized a stock repurchase program ("2022 Stock Repurchase Program") to repurchase up to $10.0 million of the Company’s common stock. As previously disclosed, during the twelve months ended December 31, 2023 the Company repurchased a total of 28,704 shares of its common stock at an average price of $25.94. The 2022 Stock Repurchase Program expired on November 10, 2023. On November 17, 2023, the Company’s Board of Directors authorized a new $10.0 million repurchase program ("2023 Stock Repurchase Program"). As of March 11, 2024, the Company has $10.0 million remaining under the 2023 Stock Repurchase Program. Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results for the three and nine months ended September 30, 2023, the Company introduced the new non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”). 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. For the three months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $0.33 compared to $0.44 Diluted Adjusted EPS was $0.31 compared to $0.41 For the twelve months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $1.12 compared to $1.46 Diluted Adjusted EPS was $1.03 compared to $1.36 Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $363 to $378 million and Adjusted EBITDA2 in the range of $59 to $65 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. “Our 2024 forecast assumes uneven growth in net service billing from first to third quarter with an accommodation for a modest seasonal impact during the fourth quarter,” said Bruce Labovitz, Chief Financial Officer at Bowman. “Generally speaking, we have found that it can take acquisitions a couple of months to return to normal net service billing levels due to the unusual demands of immediate post-closing integration. We reiterate that when acquisitions are added to guidance, we include a pro-rated amount of announced annualized net service billing run rate that is based on the timing of closing and anticipated integration related revenue disruptions.” Q4 2023 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: March 12, 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 Includes reclassification of 2022 Q4 acquisitions as organic revenue. 2 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 a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,000 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. CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) December 31, 2023 December 31, 2022 ASSETS Current Assets Cash and equivalents $ 20,687 $ 13,282 Accounts receivable, net 87,565 64,443 Contract assets 33,520 16,321 Notes receivable - officers, employees, affiliates, current portion 1,199 1,016 Prepaid and other current assets 11,806 7,068 Total current assets 154,777 102,130 Non-Current Assets Property and equipment, net 27,601 25,104 Operating lease, right-of-use assets 40,743 30,264 Goodwill 96,393 53,210 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,119 1,417 Other intangible assets, net 46,294 27,950 Deferred tax asset, net 33,780 13,759 Other assets 1,175 1,020 Total Assets $ 402,785 $ 255,757 LIABILITIES AND EQUITY Current Liabilities Bank line of credit 45,290 – Accounts payable and accrued liabilities, current portion 44,394 40,293 Contract liabilities 7,481 6,370 Notes payable, current portion 13,989 10,168 Operating lease obligation, less current portion 9,016 6,949 Finance lease obligation, current portion 6,586 5,297 Total current liabilities 126,756 69,077 Non-Current Liabilities Other non-current obligations 42,288 356 Notes payable, less current portion 13,738 16,276 Operating lease obligation, less current portion 37,660 28,087 Finance lease obligation, less current portion 14,408 14,254 Pension and post-retirement obligation, less current portion 4,654 4,848 Total liabilities $ 239,504 $ 132,898 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of December 31, 2023 and 2022; 17,694,495 shares issued and 15,094,278 outstanding, and 15,949,805 shares issued and 13,556,550 outstanding as of December 31, 2023 and 2022, respectively 177 159 Additional paid-in-capital 215,420 162,922 Treasury stock, at cost; 2,393,255 and 2,201,289, respectively (26,410 ) (20,831 ) Accumulated other comprehensive income 590 578 Stock subscription notes receivable (76 ) (173 ) Accumulated deficit (26,420 ) (19,796 ) Total shareholders' equity $ 163,281 $ 122,859 TOTAL LIABILITIES AND EQUITY $ 402,785 $ 255,757 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross Contract Revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 33,679 26,753 127,961 100,076 Sub-consultants and expenses 12,453 9,424 42,262 26,510 Total contract costs 46,132 36,177 170,223 126,586 Operating Expenses: Selling, general and administrative 44,655 34,993 158,377 117,839 Depreciation and amortization 5,939 3,901 18,723 12,251 Gain on sale (64 ) (39 ) (411 ) (82 ) Total operating expenses 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 (Loss) Income before tax expense (5,632 ) (720 ) (6,447 ) 1,736 Income tax (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Earnings allocated to non-vested shares – 67 – 783 Net (loss) income attributable to common shareholders $ (7,710 ) $ 403 $ (6,624 ) $ 4,222 (Loss) Earnings per share Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Weighted average shares outstanding: Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,043,111 12,234,109 12,490,914 11,683,758 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2023 2022 Cash Flows from Operating Activities: Net (Loss) Income $ (6,624 ) $ 5,005 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 9,732 8,363 Amortization of intangible assets 8,991 3,888 Gain on sale of assets (411 ) (82 ) Bad debt 515 742 Stock based compensation 24,738 15,097 Deferred taxes (25,529 ) (18,049 ) Accretion of discounts on notes payable 642 258 Changes in operating assets and liabilities Accounts receivable (13,559 ) (13,779 ) Contract assets (10,866 ) (4,575 ) Prepaid expenses and other assets 143 (2,126 ) Accounts payable and accrued expenses 27,728 15,802 Contract liabilities (3,778 ) (1,374 ) Net cash provided by operating activities 11,722 9,170 Cash Flows from Investing Activities: Purchases of property and equipment (2,093 ) (902 ) Proceeds from sale of assets 411 35 Amounts advanced under loans to shareholders – (5 ) Payments received under loans to shareholders 115 49 Acquisitions of businesses, net of cash acquired (25,687 ) (18,035 ) Collections under stock subscription notes receivable 98 104 Net cash used in investing activities (27,156 ) (18,754 ) Cash Flows from Financing Activities: Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs – 15,475 Borrowings under revolving credit facility 45,290 – Repayments under fixed line of credit (430 ) (734 ) Repayment under notes payable (11,237 ) (4,595 ) Payments on finance leases (6,782 ) (6,027 ) Payments for purchase of treasury stock (4,833 ) (3,343 ) Repurchases of common stock (745 ) – Proceeds from issuance of common stock 1,576 1,471 Net cash provided by financing activities 22,839 2,247 Net increase (decrease) in cash and cash equivalents 7,405 (7,337 ) Cash and cash equivalents, beginning of period 13,282 20,619 Cash and cash equivalents, end of period $ 20,687 $ 13,282 Supplemental disclosures of cash flow information: Cash paid for interest $ 4,212 $ 1,896 Cash paid for income taxes $ 1,133 $ 400 Non-cash investing and financing activities Property and equipment acquired under finance lease $ (8,246 ) $ (8,118 ) Note payable converted to common shares $ (1,343 ) $ - Issuance of notes payable for acquisitions $ (13,650 ) $ (19,089 ) Issuance of contingent consideration $ (8,909 ) $ (487 ) BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net (loss) income (GAAP) $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + tax expense (benefit) (GAAP) 2,078 (1,190 ) 177 (3,269 ) (Loss) Income before tax expense (GAAP) $ (5,632 ) $ (720 ) $ (6,447 ) $ 1,736 + acquisition related expenses 2,849 978 5,025 2,414 + amortization of intangibles 3,378 1,904 8,991 3,888 + non-cash stock comp related to pre-IPO 1,747 1,879 6,955 7,992 + other non-core expenses 249 439 923 654 Adjusted income before tax expense $ 2,591 $ 4,480 $ 15,447 $ 16,684 Adjusted income tax (benefit) (2,285 ) (1,394 ) (620 ) (2,216 ) Adjusted net income $ 4,876 $ 5,874 $ 16,067 $ 18,900 Adjusted earnings allocated to non-vested shares 584 837 2,028 2,955 Adjusted net income attributable to common shareholders $ 4,292 $ 5,037 $ 14,039 $ 15,945 (Loss) Earnings per share (GAAP) Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Adjusted earnings per share (Non-GAAP) Basic $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted $ 0.31 $ 0.41 $ 1.03 $ 1.36 Weighted average shares outstanding Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,984,138 12,234,109 13,681,711 11,683,758 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Pre-tax basic per share adjustments $ 0.79 $ 0.35 $ 1.78 $ 1.14 Adjusted earnings per share before tax expense $ 0.20 $ 0.38 $ 1.25 $ 1.53 Tax (benefit) per share adjustment $ (0.18 ) $ (0.12 ) $ (0.04 ) $ (0.20 ) Adjusted earnings per share - adjusted net income $ 0.38 $ 0.50 $ 1.29 $ 1.73 Adjusted earnings per share allocated to non-vested shares $ 0.05 $ 0.06 $ 0.17 $ 0.27 Adjusted earnings per share attributable to common shareholders $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Pre-tax diluted per share adjustments $ 0.78 $ 0.34 $ 1.66 $ 1.06 Adjusted earnings per share before tax expense $ 0.19 $ 0.37 $ 1.13 $ 1.43 Tax (benefit) per share adjustment $ (0.16 ) $ (0.11 ) $ (0.05 ) $ (0.19 ) Adjusted earnings per share - adjusted net income $ 0.35 $ 0.48 $ 1.18 $ 1.62 Adjusted earnings per share allocated to non-vested shares $ 0.04 $ 0.07 $ 0.15 $ 0.26 Adjusted earnings per share attributable to common shareholders $ 0.31 $ 0.41 $ 1.03 $ 1.36 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 December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs (exclusive of depreciation and amortization) 46,132 36,177 170,223 126,586 Operating expense 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 Income tax expense (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Net margin (8.3 ) % 0.6 % (1.9 ) % 1.9 % Other financial information 1 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA 11,249 9,415 47,031 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Less: sub-consultants and other direct expenses 12,453 9,424 42,262 26,510 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net Service Billing $ 80,516 $ 66,185 $ 303,994 $ 235,304 Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + interest expense 1,795 1,234 5,340 2,457 + depreciation & amortization 5,939 3,901 18,723 12,251 + tax (benefit) expense 2,078 (1,190 ) 177 (3,269 ) EBITDA $ 2,102 $ 4,415 $ 17,616 $ 16,444 + non-cash stock compensation 6,504 3,922 24,984 15,409 + settlements and other non-core expenses 310 439 1,170 654 + acquisition expenses 2,333 639 3,261 1,515 Adjusted EBITDA $ 11,249 $ 9,415 $ 47,031 $ 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % 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 December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 49,967 53.7 % 44,338 58.6 % 5,629 12.7 % Transportation 21,202 22.8 % 18,382 24.3 % 2,820 15.3 % Power and Utilities 16,684 17.9 % 8,302 11.0 % 8,382 101.0 % Emerging Markets1 5,116 5.6 % 4,587 6.1 % 529 11.5 % Total 92,969 100.0 % 75,609 100.0 % 17,360 23.0 % (dollars in thousands) For the Year Ended December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 194,867 56.3 % 170,431 65.1 % 24,436 14.3 % Transportation 72,829 21.0 % 44,846 17.1 % 27,983 62.4 % Power and Utilities 64,156 18.5 % 32,672 12.5 % 31,484 96.4 % Emerging Markets1 14,404 4.2 % 13,765 5.3 % 639 4.6 % Total 346,256 100.0 % 261,714 100.0 % 84,542 32.3 % (dollars in thousands) For the Three Months Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 79,974 86.0 % 75,609 100.0 % 4,366 5.8 % Acquired revenue 12,995 14.0 % – n/a n/a n/a Total 92,969 100.0 % 75,609 100.0 % 4,366 5.8 % (dollars in thousands) For the Year Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 315,759 91.2 % 261,714 100.0 % 54,045 20.7 % Acquired revenue 30,497 8.8 % – n/a n/a n/a Total 346,256 100.0 % 261,714 100.0 % 54,045 20.7 % 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 DECEMBER 31, 2023 (Unaudited) Category Percentage Building Infrastructure 55 % Transportation 24 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240311475972/en/Contacts Investor Relations Contacts: 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 fiscal year ended December 31, 2023. “This past year we surpassed $300 million in net service billing representing nearly 30% year-over-year growth and approximately 31% compound annual growth since 2020, the year before our May 2021 initial public offering,” said Gary Bowman, Chairman and CEO of Bowman. “We remain focused on becoming one of the 50 largest domestic engineering firms and are continually working to optimize the utilization of our resources as we advance toward this goal. Our pipeline of opportunities, including both new and existing customer assignments and prospective acquisitions, is healthy, and the significant public funding available for infrastructure projects provides a positive outlook for the future.” “During 2023 we completed 11 acquisitions representing approximately $60 million in annualized net service billing,” continued Bowman. “We added new customers and grew our relationships with existing customers while expanding our geographic footprint and increasing our ability to gain both market-share and wallet-share through the introduction of adjacent service offerings and leading-edge geospatial solutions. We remain committed to our fully integrated operating model as we continue to weave together a diverse mix of acquired organizations into one common culture. We are confident about our long-term prospects and believe our approach to growth will continue to deliver shareholder value.” Financial highlights for the three months ended December 31, 2023, compared to December 31, 2022: Gross contract revenue of $93.0 million, compared to $75.6 million, a 23% increase Year-over-year organic gross contract revenue growth1 of 6% Net service billing2 of $80.5 million, compared to $66.2 million, a 22% increase Year-over-year organic net service billing growth of 4% Net loss of $7.7 million, compared to net income of $0.5 million Adjusted EBITDA2 of $11.2 million, compared to $9.4 million, a 19% increase Adjusted EBITDA margin, net 2 of 14.0% compared to 14.2%, a 20 bps decrease Gross backlog2 of $306 million, compared to $243 million, a 26% increase Financial highlights for fiscal year 2023, compared to fiscal year 2022: Gross contract revenue of $346.3 million, compared to $261.7 million, a 32% increase Year-over-year organic gross contract revenue growth1 of 21% Net service billing2 of $304.0 million, compared to $235.2 million, a 29% increase Year-over-year organic net service billing growth of 18% Net loss of $6.6 million, compared to a net income of $5.0 million Adjusted EBITDA2 of $47.0 million, compared to $34.0 million, a 38% increase Adjusted EBITDA margin, net 2 of 15.5% compared to 14.5%, a 100 bps increase Impact of IRC Section 174 Research & Development Tax Expense Deductibility The Tax Cuts and Jobs Act (“TCJA”) drastically altered IRC Section 174 and the treatment of Research and Experimental (“R&E”) expenditures for tax years beginning after December 31, 2021. Prior to this alteration, under IRC Sec. 174 businesses were permitted to deduct the full amount of R&E expenditures as an expense in the taxable year in which they were incurred. As amended, IRC Sec. 174 eliminated the ability for U.S. businesses to deduct their R&E expenditures as an expense, instead requiring businesses to capitalize these expenses and amortize them over a period of five years resulting in acceleration of tax remittance. The Company maintains an uncertain tax position (“UTP”) with respect to its position that its R&E expenses are not subject to the altered IRC Sec. 174 treatment based on specific facts and circumstances. The Company’s tax expense for the three months ended December 31, 2023 and full-year 2023 include a $4.6 million accrual relating to the UTP and the Company is carrying approximately $38 million of associated deferred tax assets. On January 31, 2024, the US House of Representatives passed HR 7024, the Tax Relief for American Families and Workers Act of 2024, on a bi-partisan basis, which, among other things, restores U.S. taxpayers’ ability to deduct currently, and retroactively, domestic R&E costs paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2026. If HR 7024 is adopted by the U.S. Senate and the President, the Company would reverse its UTP related liability, tax expense and deferred tax assets. Activity Under Stock Repurchase Program: In November 2022, the Company's Board of Directors authorized a stock repurchase program ("2022 Stock Repurchase Program") to repurchase up to $10.0 million of the Company’s common stock. As previously disclosed, during the twelve months ended December 31, 2023 the Company repurchased a total of 28,704 shares of its common stock at an average price of $25.94. The 2022 Stock Repurchase Program expired on November 10, 2023. On November 17, 2023, the Company’s Board of Directors authorized a new $10.0 million repurchase program ("2023 Stock Repurchase Program"). As of March 11, 2024, the Company has $10.0 million remaining under the 2023 Stock Repurchase Program. Non-GAAP Adjusted Earnings per Share: In connection with the release of financial results for the three and nine months ended September 30, 2023, the Company introduced the new non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”). 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. For the three months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $0.33 compared to $0.44 Diluted Adjusted EPS was $0.31 compared to $0.41 For the twelve months ended December 31, 2023, compared to December 31, 2022: Basic Adjusted EPS was $1.12 compared to $1.46 Diluted Adjusted EPS was $1.03 compared to $1.36 Updating FY 2024 Guidance The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $363 to $378 million and Adjusted EBITDA2 in the range of $59 to $65 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. “Our 2024 forecast assumes uneven growth in net service billing from first to third quarter with an accommodation for a modest seasonal impact during the fourth quarter,” said Bruce Labovitz, Chief Financial Officer at Bowman. “Generally speaking, we have found that it can take acquisitions a couple of months to return to normal net service billing levels due to the unusual demands of immediate post-closing integration. We reiterate that when acquisitions are added to guidance, we include a pro-rated amount of announced annualized net service billing run rate that is based on the timing of closing and anticipated integration related revenue disruptions.” Q4 2023 Earnings Webcast Bowman will host an earnings webcast to discuss the results of the quarter as follows: Date: March 12, 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 Includes reclassification of 2022 Q4 acquisitions as organic revenue. 2 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 a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,000 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. CONSOLIDATED BALANCE SHEETS (Amounts in thousands except per share data) December 31, 2023 December 31, 2022 ASSETS Current Assets Cash and equivalents $ 20,687 $ 13,282 Accounts receivable, net 87,565 64,443 Contract assets 33,520 16,321 Notes receivable - officers, employees, affiliates, current portion 1,199 1,016 Prepaid and other current assets 11,806 7,068 Total current assets 154,777 102,130 Non-Current Assets Property and equipment, net 27,601 25,104 Operating lease, right-of-use assets 40,743 30,264 Goodwill 96,393 53,210 Notes receivable 903 903 Notes receivable - officers, employees, affiliates, less current portion 1,119 1,417 Other intangible assets, net 46,294 27,950 Deferred tax asset, net 33,780 13,759 Other assets 1,175 1,020 Total Assets $ 402,785 $ 255,757 LIABILITIES AND EQUITY Current Liabilities Bank line of credit 45,290 – Accounts payable and accrued liabilities, current portion 44,394 40,293 Contract liabilities 7,481 6,370 Notes payable, current portion 13,989 10,168 Operating lease obligation, less current portion 9,016 6,949 Finance lease obligation, current portion 6,586 5,297 Total current liabilities 126,756 69,077 Non-Current Liabilities Other non-current obligations 42,288 356 Notes payable, less current portion 13,738 16,276 Operating lease obligation, less current portion 37,660 28,087 Finance lease obligation, less current portion 14,408 14,254 Pension and post-retirement obligation, less current portion 4,654 4,848 Total liabilities $ 239,504 $ 132,898 Shareholders' Equity Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022 - - Common stock, $0.01 par value; 30,000,000 shares authorized as of December 31, 2023 and 2022; 17,694,495 shares issued and 15,094,278 outstanding, and 15,949,805 shares issued and 13,556,550 outstanding as of December 31, 2023 and 2022, respectively 177 159 Additional paid-in-capital 215,420 162,922 Treasury stock, at cost; 2,393,255 and 2,201,289, respectively (26,410 ) (20,831 ) Accumulated other comprehensive income 590 578 Stock subscription notes receivable (76 ) (173 ) Accumulated deficit (26,420 ) (19,796 ) Total shareholders' equity $ 163,281 $ 122,859 TOTAL LIABILITIES AND EQUITY $ 402,785 $ 255,757 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED INCOME STATEMENTS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross Contract Revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs: (exclusive of depreciation and amortization below) Direct payroll costs 33,679 26,753 127,961 100,076 Sub-consultants and expenses 12,453 9,424 42,262 26,510 Total contract costs 46,132 36,177 170,223 126,586 Operating Expenses: Selling, general and administrative 44,655 34,993 158,377 117,839 Depreciation and amortization 5,939 3,901 18,723 12,251 Gain on sale (64 ) (39 ) (411 ) (82 ) Total operating expenses 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 (Loss) Income before tax expense (5,632 ) (720 ) (6,447 ) 1,736 Income tax (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Earnings allocated to non-vested shares – 67 – 783 Net (loss) income attributable to common shareholders $ (7,710 ) $ 403 $ (6,624 ) $ 4,222 (Loss) Earnings per share Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Weighted average shares outstanding: Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,043,111 12,234,109 12,490,914 11,683,758 BOWMAN CONSULTING GROUP LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2023 2022 Cash Flows from Operating Activities: Net (Loss) Income $ (6,624 ) $ 5,005 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization - property, plant and equipment 9,732 8,363 Amortization of intangible assets 8,991 3,888 Gain on sale of assets (411 ) (82 ) Bad debt 515 742 Stock based compensation 24,738 15,097 Deferred taxes (25,529 ) (18,049 ) Accretion of discounts on notes payable 642 258 Changes in operating assets and liabilities Accounts receivable (13,559 ) (13,779 ) Contract assets (10,866 ) (4,575 ) Prepaid expenses and other assets 143 (2,126 ) Accounts payable and accrued expenses 27,728 15,802 Contract liabilities (3,778 ) (1,374 ) Net cash provided by operating activities 11,722 9,170 Cash Flows from Investing Activities: Purchases of property and equipment (2,093 ) (902 ) Proceeds from sale of assets 411 35 Amounts advanced under loans to shareholders – (5 ) Payments received under loans to shareholders 115 49 Acquisitions of businesses, net of cash acquired (25,687 ) (18,035 ) Collections under stock subscription notes receivable 98 104 Net cash used in investing activities (27,156 ) (18,754 ) Cash Flows from Financing Activities: Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs – 15,475 Borrowings under revolving credit facility 45,290 – Repayments under fixed line of credit (430 ) (734 ) Repayment under notes payable (11,237 ) (4,595 ) Payments on finance leases (6,782 ) (6,027 ) Payments for purchase of treasury stock (4,833 ) (3,343 ) Repurchases of common stock (745 ) – Proceeds from issuance of common stock 1,576 1,471 Net cash provided by financing activities 22,839 2,247 Net increase (decrease) in cash and cash equivalents 7,405 (7,337 ) Cash and cash equivalents, beginning of period 13,282 20,619 Cash and cash equivalents, end of period $ 20,687 $ 13,282 Supplemental disclosures of cash flow information: Cash paid for interest $ 4,212 $ 1,896 Cash paid for income taxes $ 1,133 $ 400 Non-cash investing and financing activities Property and equipment acquired under finance lease $ (8,246 ) $ (8,118 ) Note payable converted to common shares $ (1,343 ) $ - Issuance of notes payable for acquisitions $ (13,650 ) $ (19,089 ) Issuance of contingent consideration $ (8,909 ) $ (487 ) BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF EPS TO ADJUSTED EPS (Amounts in thousands except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net (loss) income (GAAP) $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + tax expense (benefit) (GAAP) 2,078 (1,190 ) 177 (3,269 ) (Loss) Income before tax expense (GAAP) $ (5,632 ) $ (720 ) $ (6,447 ) $ 1,736 + acquisition related expenses 2,849 978 5,025 2,414 + amortization of intangibles 3,378 1,904 8,991 3,888 + non-cash stock comp related to pre-IPO 1,747 1,879 6,955 7,992 + other non-core expenses 249 439 923 654 Adjusted income before tax expense $ 2,591 $ 4,480 $ 15,447 $ 16,684 Adjusted income tax (benefit) (2,285 ) (1,394 ) (620 ) (2,216 ) Adjusted net income $ 4,876 $ 5,874 $ 16,067 $ 18,900 Adjusted earnings allocated to non-vested shares 584 837 2,028 2,955 Adjusted net income attributable to common shareholders $ 4,292 $ 5,037 $ 14,039 $ 15,945 (Loss) Earnings per share (GAAP) Basic $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Diluted $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Adjusted earnings per share (Non-GAAP) Basic $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted $ 0.31 $ 0.41 $ 1.03 $ 1.36 Weighted average shares outstanding Basic 13,043,111 11,538,128 12,490,914 10,887,620 Diluted 13,984,138 12,234,109 13,681,711 11,683,758 Basic Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.39 Pre-tax basic per share adjustments $ 0.79 $ 0.35 $ 1.78 $ 1.14 Adjusted earnings per share before tax expense $ 0.20 $ 0.38 $ 1.25 $ 1.53 Tax (benefit) per share adjustment $ (0.18 ) $ (0.12 ) $ (0.04 ) $ (0.20 ) Adjusted earnings per share - adjusted net income $ 0.38 $ 0.50 $ 1.29 $ 1.73 Adjusted earnings per share allocated to non-vested shares $ 0.05 $ 0.06 $ 0.17 $ 0.27 Adjusted earnings per share attributable to common shareholders $ 0.33 $ 0.44 $ 1.12 $ 1.46 Diluted Adjusted Earnings Per Share Summary - Non-GAAP For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 (Loss) Earnings per share (GAAP) $ (0.59 ) $ 0.03 $ (0.53 ) $ 0.37 Pre-tax diluted per share adjustments $ 0.78 $ 0.34 $ 1.66 $ 1.06 Adjusted earnings per share before tax expense $ 0.19 $ 0.37 $ 1.13 $ 1.43 Tax (benefit) per share adjustment $ (0.16 ) $ (0.11 ) $ (0.05 ) $ (0.19 ) Adjusted earnings per share - adjusted net income $ 0.35 $ 0.48 $ 1.18 $ 1.62 Adjusted earnings per share allocated to non-vested shares $ 0.04 $ 0.07 $ 0.15 $ 0.26 Adjusted earnings per share attributable to common shareholders $ 0.31 $ 0.41 $ 1.03 $ 1.36 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 December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Contract costs (exclusive of depreciation and amortization) 46,132 36,177 170,223 126,586 Operating expense 50,530 38,855 176,689 130,008 (Loss) Income from operations (3,693 ) 577 (656 ) 5,120 Other expense 1,939 1,297 5,791 3,384 Income tax expense (benefit) 2,078 (1,190 ) 177 (3,269 ) Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 Net margin (8.3 ) % 0.6 % (1.9 ) % 1.9 % Other financial information 1 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA 11,249 9,415 47,031 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % Gross Contract Revenue to Net Service Billing Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Gross contract revenue $ 92,969 $ 75,609 $ 346,256 $ 261,714 Less: sub-consultants and other direct expenses 12,453 9,424 42,262 26,510 Net service billing $ 80,516 $ 66,185 $ 303,994 $ 235,204 Adjusted EBITDA Reconciliation For the Three Months Ended December 31, For the Year Ended December 31, 2023 2022 2023 2022 Net Service Billing $ 80,516 $ 66,185 $ 303,994 $ 235,304 Net (loss) income $ (7,710 ) $ 470 $ (6,624 ) $ 5,005 + interest expense 1,795 1,234 5,340 2,457 + depreciation & amortization 5,939 3,901 18,723 12,251 + tax (benefit) expense 2,078 (1,190 ) 177 (3,269 ) EBITDA $ 2,102 $ 4,415 $ 17,616 $ 16,444 + non-cash stock compensation 6,504 3,922 24,984 15,409 + settlements and other non-core expenses 310 439 1,170 654 + acquisition expenses 2,333 639 3,261 1,515 Adjusted EBITDA $ 11,249 $ 9,415 $ 47,031 $ 34,022 Adjusted EBITDA margin, net 14.0 % 14.2 % 15.5 % 14.5 % 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 December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 49,967 53.7 % 44,338 58.6 % 5,629 12.7 % Transportation 21,202 22.8 % 18,382 24.3 % 2,820 15.3 % Power and Utilities 16,684 17.9 % 8,302 11.0 % 8,382 101.0 % Emerging Markets1 5,116 5.6 % 4,587 6.1 % 529 11.5 % Total 92,969 100.0 % 75,609 100.0 % 17,360 23.0 % (dollars in thousands) For the Year Ended December 31, Consolidated Gross Revenue 2023 % 2022 % Change % Change Building Infrastructure 194,867 56.3 % 170,431 65.1 % 24,436 14.3 % Transportation 72,829 21.0 % 44,846 17.1 % 27,983 62.4 % Power and Utilities 64,156 18.5 % 32,672 12.5 % 31,484 96.4 % Emerging Markets1 14,404 4.2 % 13,765 5.3 % 639 4.6 % Total 346,256 100.0 % 261,714 100.0 % 84,542 32.3 % (dollars in thousands) For the Three Months Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 79,974 86.0 % 75,609 100.0 % 4,366 5.8 % Acquired revenue 12,995 14.0 % – n/a n/a n/a Total 92,969 100.0 % 75,609 100.0 % 4,366 5.8 % (dollars in thousands) For the Year Ended December 31, Organic v Acquired Revenue 2 2023 % 2022 % Change % Change Baseline organic revenue 315,759 91.2 % 261,714 100.0 % 54,045 20.7 % Acquired revenue 30,497 8.8 % – n/a n/a n/a Total 346,256 100.0 % 261,714 100.0 % 54,045 20.7 % 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 DECEMBER 31, 2023 (Unaudited) Category Percentage Building Infrastructure 55 % Transportation 24 % Power and Utilities 17 % Emerging Markets 4 % TOTAL 100 % View source version on businesswire.com: https://www.businesswire.com/news/home/20240311475972/en/
Investor Relations Contacts: Bruce Labovitz ir@bowman.com (703) 464-1029 Betsy Patterson ir@bowman.com (310) 622-8227