BWMN Bowman Consulting Group Ltd

Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering and infrastructure services firm supporting owners and developers of the built environment, today released financial results for the three and six months ended June 30, 2024.

“Despite challenges we faced this quarter with conversion of awards to revenue, our sales are strong, our backlog is growing, and our M&A pipeline remains robust,” said Gary Bowman, Chairman and CEO of Bowman. “We believe the infrastructure design and engineering market continues to present positive demand signals supported by significant funding as evidenced by our backlog being up nearly 5% from the end of last quarter and 19% year-over-year, excluding backlog acquired in Q2. We have been notified of selection on multiple large transportation projects which are taking longer than expected to work their way through the final contracting and notice to proceed process, delaying our ability to begin our work and earn the associated revenue. We remain optimistic that several of these will commence in earnest during the second half of the year. We continue to focus on sustainable, long-term organic revenue growth and margin improvement, and I am confident that adjustments we are making with respect to market focus and labor will benefit our ability to deliver improvements on both fronts throughout the remainder of this year and into 2025.”

“Acquisitive growth continues to be a significant ingredient in our long-term strategy,” continued Bowman. “Nonetheless, we recognize that organic growth remains a critical element of our success. Our diversification into transportation, power and utilities, water, mining and other emerging markets has contributed to a decreasing concentration of building infrastructure in our business and is paying dividends. Excluding all acquisitions closed during 2023 and 2024, year-over-year organic growth from non-building infrastructure verticals during the first half of 2024 was approximately 14% when compared to the same period last year. This gain was unfortunately offset by organic contraction of our building infrastructure vertical during the same period, excluding the same acquisitions. While we have continued to deliver strong nominal growth in our building infrastructure practice through acquisitions, we believe a lower interest rate environment will release sufficient pent-up demand to generate a rebound in organic growth.”

Financial Results for the Three Months Ended June 30, 2024, Compared to June 30, 2023:

• Gross contract revenue of $104.5 million, compared to $82.8 million, a 26% increase
• Year-over-year increase in organic gross revenue1 of 5%
• Net service billing2 of $94.0 million, compared to $73.8 million, a 27% increase
• Year-over-year increase in organic net service billing1 of 6%
• Net loss of $2.0 million3, compared to net loss of $0.6 million
• Adjusted EBITDA2 of $13.4 million, compared to $11.1 million, a 21% increase
• Adjusted EBITDA margin, net 2 of 14.3% compared to 15.0%, a 70-bps decrease

Financial Results for the Six Months Ended June 30, 2024, Compared to June 30, 2023:

• Gross contract revenue of $199.4 million, compared to $158.9 million, a 25% increase
• Year-over-year increase in organic gross revenue1 of 9%
• Net service billing2 of $179.7 million, compared to $141.4 million, a 27% increase
• Year-over-year increase in organic net service billing1 of 10%
• Net loss of $3.6 million3, compared to net loss of $0.1 million
• Adjusted EBITDA2 of $25.5 million, compared to $20.7 million, a 23% increase
• Adjusted EBITDA margin, net 2 of 14.2% compared to 14.7%, a 50-bps decrease
• Gross backlog2 of $352 million, compared to $295 million, a 19% increase

Items of Note During the Quarter:

• On April 1, 2024, the Company closed on a $51 million equity offering
• On April 4, 2024, the Company closed on the acquisition of Surdex Corporation
• On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers
• On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America
• On May 3, 2024, the Company closed on a new $11 million cash-out refinancing of its Surdex aviation assets
• Reversed uncertain tax position (UTP) with respect to changes to Section 174 R&D expense deductibility

Subsequent Events of Note:

• On July 11, 2024, the Company closed on the acquisition of Element Engineering
• On July 17, 2024, the Company closed on the acquisition of FCS Group

Non-GAAP Adjusted Earnings per Share:

In connection with the release of financial results the Company reported the non-GAAP financial metric of Adjusted (Loss) Earnings per Share3 (“Adjusted EPS”) as follows:

For the three months ended June 30, 2024, compared to June 30, 2023:

• Basic Adjusted EPS was ($0.03) compared to $0.15
• Diluted Adjusted EPS was ($0.03) compared to $0.13

For the six months ended June 30, 2024, compared to June 30, 2023:

• Basic Adjusted EPS was $0.17 compared to $0.43
• Diluted Adjusted EPS was $0.16 compared to $0.39

Updating FY 2024 Guidance

The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $375 to $385 million and Adjusted EBITDA2 to be in the range of $58 to $63 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.

Q2 2024 Earnings Webcast

Bowman will host an earnings webcast to discuss the results of the quarter as follows:

Date: August 7, 2024

Time: 9:00 a.m. Eastern Time

Hosts: Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer

Where: http://investors.bowman.com

1 Calculation excludes revenue from acquisitions closed after 06/30/23 with revenue recognized from acquisitions closed on or before 06/30/23 reclassified as non-acquisition revenue in prior periods. Allocation of revenue to integrated acquired companies is based solely on performance of work. Calculation of organic growth does not include or contemplate any pro-forma normalization of revenue from acquisitions prior to closing.

2 Non-GAAP financial metric the Company believes offers valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.

3 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.

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,200 employees and more than 90 offices throughout the United States, Bowman provides a variety of planning, engineering, geospatial, construction management, commissioning, environmental consulting, land procurement and other technical services to customers operating in a diverse set of regulated end markets. Bowman trades on the Nasdaq under the symbol BWMN. For more information, visit bowman.com or investors.bowman.com.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, “goal” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. Considering these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipates or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements after the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures and Other Key Metrics

We supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, with certain non-GAAP financial measures, as described below, to help represent, explain, and understand our operating performance. These non-GAAP financial measures may be different than similarly referenced measures used by other companies. The non-GAAP measures are intended to enhance investors’ overall understanding and evaluation of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We present these non-GAAP financial measures to assist investors in seeing our financial performance in a manner more aligned with management’s view and believe these measures provide additional tools by which investors can evaluate our core financial performance over multiple periods relative to other companies in our industry. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

 

 

June 30, 2024

 

December 31, 2023

 

(Unaudited)

 

 

ASSETS

 

 

 

Current Assets

 

 

 

Cash and equivalents

$

23,143

 

 

$

20,687

 

Accounts receivable, net

 

99,368

 

 

 

87,565

 

Contract assets

 

42,193

 

 

 

33,520

 

Notes receivable - officers, employees, affiliates, current portion

 

1,151

 

 

 

1,199

 

Prepaid and other current assets

 

9,544

 

 

 

11,806

 

Total current assets

 

175,399

 

 

 

154,777

 

Non-Current Assets

 

 

 

Property and equipment, net

 

44,636

 

 

 

27,601

 

Operating lease, right-of-use assets

 

40,316

 

 

 

40,743

 

Goodwill

 

123,587

 

 

 

96,393

 

Notes receivable

 

903

 

 

 

903

 

Notes receivable - officers, employees, affiliates, less current portion

 

1,113

 

 

 

1,119

 

Other intangible assets, net

 

55,840

 

 

 

46,294

 

Deferred tax asset, net

 

20,166

 

 

 

33,780

 

Other assets

 

1,427

 

 

 

1,175

 

Total Assets

$

463,387

 

 

$

402,785

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

Revolving credit facility

 

27,848

 

 

 

45,290

 

Accounts payable and accrued liabilities

 

69,163

 

 

 

44,394

 

Contract liabilities

 

7,873

 

 

 

7,481

 

Notes payable, current portion

 

15,169

 

 

 

13,989

 

Operating lease obligation, less current portion

 

10,059

 

 

 

9,016

 

Finance lease obligation, current portion

 

9,182

 

 

 

6,586

 

Total current liabilities

 

139,294

 

 

 

126,756

 

Non-Current Liabilities

 

 

 

Other non-current obligations

 

5,353

 

 

 

42,288

 

Notes payable, less current portion

 

22,541

 

 

 

13,738

 

Operating lease obligation, less current portion

 

36,332

 

 

 

37,660

 

Finance lease obligation, less current portion

 

19,099

 

 

 

14,408

 

Pension and post-retirement obligation, less current portion

 

5,184

 

 

 

4,654

 

Total liabilities

$

227,803

 

 

$

239,504

 

 

 

 

 

Shareholders' Equity

 

 

 

Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023

 

-

 

 

 

-

 

Common stock, $0.01 par value; 30,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 20,570,916 shares issued and 17,599,049 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of June 30, 2024 and December 31, 2023, respectively

 

206

 

 

 

177

 

Additional paid-in-capital

 

303,453

 

 

 

215,420

 

Accumulated other comprehensive income

 

569

 

 

 

590

 

Treasury stock, at cost; 2,971,867 and 2,600,217, respectively

 

(38,531

)

 

 

(26,410

)

Stock subscription notes receivable

 

(53

)

 

 

(76

)

Accumulated deficit

 

(30,060

)

 

 

(26,420

)

Total shareholders' equity

$

235,584

 

 

$

163,281

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

$

463,387

 

 

$

402,785

 

BOWMAN CONSULTING GROUP LTD.

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,

 

2024

 

2023

 

2023

 

2022

Gross Contract Revenue

$

104,501

 

 

$

82,755

 

 

$

199,409

 

 

$

158,855

 

Contract costs: (exclusive of depreciation and amortization below)

 

 

 

 

 

 

 

Direct payroll costs

 

39,096

 

 

 

32,075

 

 

 

76,776

 

 

 

60,919

 

Sub-consultants and expenses

 

10,520

 

 

 

8,963

 

 

 

19,738

 

 

 

17,501

 

Total contract costs

 

49,616

 

 

 

41,038

 

 

 

96,514

 

 

 

78,420

 

Operating Expenses:

 

 

 

 

 

 

 

Selling, general and administrative

 

49,154

 

 

 

38,340

 

 

 

93,874

 

 

 

71,965

 

Depreciation and amortization

 

7,181

 

 

 

4,719

 

 

 

13,177

 

 

 

8,285

 

(Gain) on sale

 

(215

)

 

 

(226

)

 

 

(311

)

 

 

(237

)

Total operating expenses

 

56,120

 

 

 

42,833

 

 

 

106,740

 

 

 

80,013

 

(Loss) Income from operations

 

(1,235

)

 

 

(1,116

)

 

 

(3,845

)

 

 

422

 

Other expense

 

2,027

 

 

 

1,143

 

 

 

4,428

 

 

 

2,358

 

Loss before tax expense

 

(3,262

)

 

 

(2,259

)

 

 

(8,273

)

 

 

(1,936

)

Income tax (benefit)

 

(1,180

)

 

 

(1,625

)

 

 

(4,633

)

 

 

(1,839

)

Net loss

$

(2,082

)

 

$

(634

)

 

$

(3,640

)

 

$

(97

)

Earnings allocated to non-vested shares

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

Net loss attributable to common shareholders

$

(2,082

)

 

$

(634

)

 

$

(3,640

)

 

$

(97

)

Loss per share

 

 

 

 

 

 

 

Basic

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Diluted

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

16,301,926

 

 

 

12,276,173

 

 

 

15,064,827

 

 

 

12,022,550

 

Diluted

 

16,301,926

 

 

 

12,276,173

 

 

 

15,064,827

 

 

 

12,022,550

 

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

For the Six Months Ended June 30,

 

2024

 

2023

Cash Flows from Operating Activities:

 

 

 

Net Loss

$

(3,640

)

 

$

(97

)

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

Depreciation and amortization - property, plant and equipment

 

6,023

 

 

 

4,620

 

Amortization of intangible assets

 

7,154

 

 

 

3,665

 

Gain on sale of assets

 

(311

)

 

 

(237

)

Credit losses

 

656

 

 

 

289

 

Stock based compensation

 

13,876

 

 

 

11,169

 

Accretion of discounts on notes payable

 

307

 

 

 

264

 

Deferred taxes

 

5,348

 

 

 

(7,339

)

Changes in operating assets and liabilities

 

 

 

Accounts receivable

 

(6,080

)

 

 

(10,885

)

Contract assets

 

(4,366

)

 

 

(5,267

)

Prepaid expenses and other assets

 

4,063

 

 

 

(4,174

)

Accounts payable and accrued expenses

 

(15,633

)

 

 

9,535

 

Contract liabilities

 

(1,809

)

 

 

523

 

Net cash provided by operating activities

 

5,588

 

 

 

2,066

 

Cash Flows from Investing Activities:

 

 

 

Purchases of property and equipment

 

(600

)

 

 

(632

)

Fixed assets converted to lease financing

 

(29

)

 

 

-

 

Proceeds from sale of assets and disposal of leases

 

317

 

 

 

237

 

Payments received under loans to shareholders

 

54

 

 

 

108

 

Acquisitions of businesses, net of cash acquired

 

(20,347

)

 

 

(15,408

)

Collections under stock subscription notes receivable

 

23

 

 

 

48

 

Net cash used in investing activities

 

(20,582

)

 

 

(15,647

)

Cash Flows from Financing Activities:

 

 

 

Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs

 

47,151

 

 

 

–

 

(Repayments) Borrowings under revolving credit facility

 

(17,441

)

 

 

21,189

 

Repayments under fixed line of credit

 

(345

)

 

 

(283

)

Proceeds from notes payable

 

6,209

 

 

 

–

 

Repayment under notes payable

 

(7,464

)

 

 

(4,743

)

Proceeds from finance leases

 

4,567

 

 

 

–

 

Payments on finance leases

 

(4,053

)

 

 

(3,309

)

Payments for purchase of treasury stock

 

(10,037

)

 

 

(3,586

)

Repurchases of common stock

 

(2,084

)

 

 

–

 

Proceeds from issuance of common stock

 

947

 

 

 

777

 

Net cash used in financing activities

 

17,450

 

 

 

10,045

 

Net increase (decrease) in cash and cash equivalents

 

2,456

 

 

 

(3,536

)

Cash and cash equivalents, beginning of period

 

20,687

 

 

 

13,282

 

Cash and cash equivalents, end of period

$

23,143

 

 

$

9,746

 

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

3,457

 

 

$

1,547

 

Cash paid for income taxes

$

1,552

 

 

$

745

 

Non-cash investing and financing activities

 

 

 

Property and equipment acquired under finance lease

$

(6,755

)

 

$

(4,385

)

Note payable converted to common shares

$

(2,696

)

 

$

–

 

Issuance of notes payable for acquisitions

$

(13,636

)

 

$

(7,825

)

Issuance of contingent considerations

$

(1,504

)

 

$

–

 

Settlement of contingent consideration

$

567

 

$

–

 

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF EPS TO ADJUSTED EPS

(Amounts in thousands except per share data)

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net loss (GAAP)

 

$

(2,082

)

 

$

(634

)

 

$

(3,640

)

 

$

(97

)

+ tax (benefit) (GAAP)

 

 

(1,180

)

 

 

(1,625

)

 

 

(4,633

)

 

 

(1,839

)

Loss before tax expense (GAAP)

 

$

(3,262

)

 

$

(2,259

)

 

$

(8,273

)

 

$

(1,936

)

+ acquisition related expenses

 

 

1,936

 

 

 

772

 

 

 

3,286

 

 

 

1,621

 

+ amortization of intangibles

 

 

3,815

 

 

 

2,296

 

 

 

7,154

 

 

 

3,665

 

+ non-cash stock comp related to pre-IPO

 

 

1,121

 

 

 

1,742

 

 

 

2,678

 

 

 

3,464

 

+ other non-core expenses

 

 

414

 

 

 

113

 

 

 

813

 

 

 

113

 

Adjusted income before tax expense

 

$

4,024

 

 

$

2,664

 

 

$

5,658

 

 

$

6,927

 

Adjusted income tax expense

 

 

4,593

 

 

 

550

 

 

 

2,933

 

 

 

1,046

 

Adjusted net (loss) income

 

$

(569

)

 

$

2,114

 

 

$

2,725

 

 

$

5,881

 

Adjusted earnings allocated to non-vested shares

 

 

–

 

 

 

285

 

 

 

229

 

 

 

773

 

Adjusted net (loss) income attributable to common shareholders

 

$

(569

)

 

$

1,829

 

 

$

2,496

 

 

$

5,108

 

Loss per share (GAAP)

 

 

 

 

 

 

 

 

Basic

 

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Diluted

 

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Adjusted (loss) earnings per share (Non-GAAP)

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

0.15

 

 

$

0.17

 

 

$

0.43

 

Diluted

 

$

(0.03

)

 

$

0.13

 

 

$

0.16

 

 

$

0.39

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

16,301,926

 

 

 

12,276,173

 

 

 

15,064,827

 

 

 

12,022,550

 

Diluted

 

 

16,301,926

 

 

 

13,176,766

 

 

 

15,766,765

 

 

 

12,930,018

 

 

 

 

 

 

 

 

 

 

Basic Adjusted (Loss) Earnings Per Share Summary - Non-GAAP

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Loss per share (GAAP)

 

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Pre-tax basic per share adjustments

 

$

0.38

 

 

$

0.27

 

 

$

0.62

 

 

$

0.59

 

Adjusted earnings per share before tax expense

 

$

0.25

 

 

$

0.22

 

 

$

0.38

 

 

$

0.58

 

Tax expense per share adjustment

 

$

0.28

 

 

$

0.04

 

 

$

0.19

 

 

$

0.08

 

Adjusted (loss) earnings per share - adjusted net income

 

$

(0.03

)

 

$

0.18

 

 

$

0.19

 

 

$

0.50

 

Adjusted earnings per share allocated to non-vested shares

 

$

–

 

 

$

0.03

 

 

$

0.02

 

 

$

0.07

 

Adjusted (loss) earnings per share attributable to common shareholders

 

$

(0.03

)

 

$

0.15

 

 

$

0.17

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

Diluted Adjusted (Loss) Earnings Per Share Summary - Non-GAAP

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Loss per share (GAAP)

 

$

(0.13

)

 

$

(0.05

)

 

$

(0.24

)

 

$

(0.01

)

Pre-tax diluted per share adjustments

 

$

0.38

 

 

$

0.25

 

 

$

0.60

 

 

$

0.55

 

Adjusted earnings per share before tax expense

 

$

0.25

 

 

$

0.20

 

 

$

0.36

 

 

$

0.54

 

Tax expense per share adjustment

 

$

0.28

 

 

$

0.05

 

 

$

0.19

 

 

$

0.09

 

Adjusted (loss) earnings per share - adjusted net (loss) income

 

$

(0.03

)

 

$

0.15

 

 

$

0.17

 

 

$

0.45

 

Adjusted earnings per share allocated to non-vested shares

 

$

–

 

 

$

0.02

 

 

$

0.01

 

 

$

0.06

 

Adjusted (loss) earnings per share attributable to common shareholders

 

$

(0.03

)

 

$

0.13

 

 

$

0.16

 

 

$

0.39

 

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 June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

2023

 

 

2022

 

Gross contract revenue

 

$

104,501

 

$

82,755

 

 

$

199,409

 

$

158,855

 

Contract costs (exclusive of depreciation and amortization)

 

 

49,616

 

 

41,038

 

 

 

96,514

 

 

78,420

 

Operating expense

 

 

56,120

 

 

42,833

 

 

 

106,740

 

 

80,013

 

(Loss) Income from operations

 

 

(1,235

)

 

(1,116

)

 

$

(3,845

)

$

422

 

Other expense

 

 

2,027

 

 

1,143

 

 

 

4,428

 

 

2,358

 

Income tax (benefit)

 

 

(1,180

)

 

(1,625

)

 

 

(4,633

)

 

(1,839

)

Net loss

 

$

(2,082

)

$

(634

)

 

$

(3,640

)

$

(97

)

Net margin

 

 

(2.0

)%

 

(0.8

)%

 

 

(1.8

)%

 

(0.1

)%

 

 

 

 

 

 

 

Other financial information 1

 

 

 

 

 

 

Net service billing

 

$

93,981

 

$

73,792

 

 

$

179,671

 

$

141,354

 

Adjusted EBITDA

 

 

13,412

 

 

11,053

 

 

 

25,541

 

 

20,725

 

Adjusted EBITDA margin, net

 

 

14.3

%

 

15.0

%

 

 

14.2

%

 

14.7

%

 

 

 

 

 

 

 

Gross Contract Revenue to Net Service Billing Reconciliation

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Gross contract revenue

 

$

104,501

 

$

82,755

 

 

$

199,409

 

$

158,855

 

Less: sub-consultants and other direct expenses

 

 

10,520

 

 

8,963

 

 

 

19,738

 

 

17,501

 

Net service billing

 

$

93,981

 

$

73,792

 

 

$

179,671

 

$

141,354

 

 

 

 

 

 

 

 

Adjusted EBITDA Reconciliation

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Net Service Billing

 

$

93,981

 

$

73,792

 

 

$

179,671

 

$

141,354

 

 

 

 

 

 

 

 

Net loss

 

$

(2,082

)

$

(634

)

 

$

(3,640

)

$

(97

)

+ interest expense

 

 

1,775

 

 

1,112

 

 

 

3,906

 

 

2,007

 

+ depreciation & amortization

 

 

7,181

 

 

4,719

 

 

 

13,177

 

 

8,285

 

+ tax (benefit)

 

 

(1,180

)

 

(1,625

)

 

 

(4,633

)

 

(1,839

)

EBITDA

 

$

5,694

 

$

3,572

 

 

$

8,810

 

$

8,356

 

+ non-cash stock compensation

 

 

6,077

 

 

6,888

 

 

 

13,938

 

 

11,322

 

+ transaction related expenses

 

 

–

 

 

123

 

 

–

 

 

123

 

+ settlements and other non-core expenses

 

 

414

 

 

113

 

 

813

 

 

113

 

+ acquisition expenses

 

 

1,227

 

 

357

 

 

 

1,980

 

 

811

 

Adjusted EBITDA

 

$

13,412

 

$

11,053

 

 

$

25,541

 

$

20,725

 

Adjusted EBITDA margin, net

 

 

14.3

%

 

15.0

%

 

 

14.2

%

 

14.7

%

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 June 30,

Consolidated Gross Revenue

2024

%

2023

%

Change

% Change

Building Infrastructure

55,903

53.5

%

48,616

58.7

%

7,287

15.0

%

Transportation

19,233

18.4

%

15,870

19.2

%

3,363

21.2

%

Power and Utilities

19,456

18.6

%

15,585

18.8

%

3,871

24.8

%

Other Emerging Markets1

9,909

9.5

%

2,684

3.3

%

7,225

269.2

%

Total

104,501

100.0

%

82,755

100.0

%

21,746

26.3

%

 

 

 

 

 

 

 

(dollars in thousands)

For the Three Months Ended June 30,

Organic v Acquired Revenue

2024

%

2023

%

Change

% Change

Organic

87,072

83.3

%

82,755

100.0

%

4,317

5.2

%

Acquired2

17,429

16.7

%

–

–

%

17,429

n/a

 

Total

104,501

100.0

%

82,755

100.0

%

21,746

26.3

%

 

 

 

 

 

 

 

(dollars in thousands)

For the Six Months Ended June 30,

Consolidated Gross Revenue

2024

%

2023

%

Change

% Change

Building Infrastructure

108,689

54.5

%

92,953

58.5

%

15,736

16.9

%

Transportation

37,361

18.7

%

31,889

20.1

%

5,472

17.2

%

Power and Utilities

37,923

19.0

%

28,909

18.2

%

9,014

31.2

%

Emerging Markets1

15,436

7.8

%

5,104

3.2

%

10,332

202.4

%

Total

199,409

100.0

%

158,855

100.0

%

40,554

25.5

%

 

 

 

 

 

 

 

(dollars in thousands)

For the Six Months Ended June 30,

Organic v Acquired Revenue 2

2024

%

2023

%

Change

% Change

Organic

172,974

86.7

%

158,855

100.0

%

14,119

8.9

%

Acquired2

26,435

13.3

%

–

–

%

26,435

n/a

 

Total

199,409

100.0

%

158,855

100.0

%

40,554

25.5

%

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 JUNE 30, 2024

(Unaudited)

 

Category

Percentage

Building Infrastructure

48

%

Transportation

27

%

Power and Utilities

16

%

Emerging Markets

9

%

TOTAL

100

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805650683/en/

Investor Relations Contacts:

Bruce Labovitz ir@bowman.com (703) 464-1029

Betsy Patterson ir@bowman.com (310) 622-8227