Bowman Consulting Group Announces Second Quarter 2021 Financial Results

Bowman Consulting Group Ltd. BWMN ("Bowman" or the "Company"), a national engineering services firm supporting owners and developers of the built environment, today announced results of operations for the three and six months ended June 30, 2021, which include record revenue.

"I am extremely pleased with our results for the second quarter and the progress we are making as we execute on our commitment to deliver long-term shareholder value," said Gary Bowman, Chairman and CEO of Bowman. "In May we completed our IPO and once again turned our attention to achieving increased scale through organic growth and acquisitions. We delivered record revenue in the second quarter and continue to expand backlog with a strong pace of new contracts and assignments. We recently closed on our first acquisition as a public company and are encouraged by our current pipeline of M&A opportunities."

Financial highlights of the three months ended June 30, 2021:

  • Gross revenue of $36.5 million, a year-over-year increase of 15%
  • Net service billing1 of $32.5 million, a year-over-year increase of 20%
  • Adjusted EBITDA1of $4.2 million
  • Adjusted EBITDA margin, net1 of 12.9%
  • Net loss of $0.4 million
  • Net income of $1.0 million as adjusted for $1.4 million one-time IPO expenses
  • Acquisitions contributed $2.6 million, or 7%, of gross revenue
  • Backlog1 increased to $124 million, an increase of 7% from March 31, 2021

Financial highlights of the six months ended June 30, 2021:

  • Gross revenue of $68.3 million, a year-over-year increase of 13%
  • Net service billing1 of $61.3 million, a year-over-year increase of 18%
  • Adjusted EBITDA1of $8.3 million, a year-over-year increase of 23%
  • Adjusted EBITDA margin, net1 of 13.5%, up from 12.9% in the first six months of 2020
  • Net income of $0.5 million
  • Net income of $1.9 million as adjusted for $1.4 million one-time IPO expenses
  • Acquisitions contributed $4.5 million, or 7% of gross revenue

Other Recent Business Highlights:

  • Closed on McFarland-Dyer & Associates acquisition in Atlanta on August 3, 2021
  • Renewed revolving credit facility with Bank of America on favorable terms

Year-End Guidance:

The Company is introducing its full year 2021 outlook for Net Service Billing1 to be in the range of $125 to $130 million with Adjusted EBITDA expected to be in the range of $15.0 to $15.6 million. The current outlook is based on completed acquisitions as of the date of this release and does not include the benefit of any future acquisitions. The Company expects to continue making strategically and financially accretive acquisitions that are not yet reflected in this current 2021 guidance or outlook.

"Adding back $1.4 million of one-time IPO related expenses, our net income was $1.0 million for the quarter and $1.9 million year to date. We expect to grow net service billing by 20% to 25% in 2021, including nearly 14% organic growth at the midpoint of our revenue range," said Bruce Labovitz, Chief Financial Officer of Bowman. "This is a transitional year for Bowman as we absorb the incremental cost of being a public company. Post-IPO, our priority is to utilize our increased capital to further scale our business. This increased scale should allow us meaningful opportunities to expand margin, profitability, and operating cash flow. Our impressive top line growth year-to-date, accompanied by increasing adjusted EBITDA, sets a solid foundation for delivering positive financial results in 2021 and beyond."

-----------------------

1 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.

Q1 2021 Earnings Webcast

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

Date:

August 12, 2021

Time:

9:00 a.m. Eastern Time

Hosts:

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

Where:

http://investors.bowman.com

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is an established professional services firm delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. With over 750 employees in more than 30 offices throughout the United States, Bowman provides a variety of planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets. On May 11, 2021, Bowman completed its $53.3 million initial public offering and began trading on the Nasdaq under the symbol BWMN. For more information, visit bowman.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the 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" 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. These risks and uncertainties are detailed in the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 424B4 dated May 6, 2021, which is available on the SEC's website at sec.gov. Such risks and uncertainties may be amplified by the COVID-19 pandemic and its potential impact on our business and the global economy. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. 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 anticipated 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 INCOME STATEMENTS

(Amounts in thousands except per share data)

(Unaudited)

 

 

For the Three Months
Ended June 30,

 

For the Six Months
Ended June 30,

 

2021

 

2020

 

2021

 

2020

Gross Contract Revenue

$

36,524

 

$

31,749

 

$

68,326

 

$

60,360

 

Contract costs: (exclusive of depreciation and amortization
below)

 

 

 

 

 

 

 

 

 

 

 

 

Direct payroll costs

 

14,123

 

 

12,059

 

 

27,345

 

 

23,694

 

Sub-consultants and expenses

 

4,065

 

 

4,581

 

 

6,999

 

 

8,459

 

Total contract costs

 

18,188

 

 

16,640

 

 

34,344

 

 

32,153

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

17,204

 

 

12,082

 

 

29,953

 

 

24,168

 

Depreciation and amortization

 

1,480

 

 

320

 

 

2,908

 

 

640

 

(Gain) loss on sale

 

(27

)

 

-

 

 

(53

)

 

(15

)

Total operating expenses

 

18,657

 

 

12,402

 

 

32,808

 

 

24,793

 

Income (loss) from operations

 

(321

)

 

2,707

 

 

1,174

 

 

3,414

 

Other (income) expense

 

187

 

 

(67

)

 

392

 

 

(76

)

Income (loss) before tax expense

 

(508

)

 

2,774

 

 

782

 

 

3,490

 

Income tax (benefit) expense

 

(69

)

 

1,157

 

 

240

 

 

1,447

 

Net income (loss)

$

(439

)

$

1,617

 

$

542

 

$

2,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings allocated to non-vested shares

 

-

 

 

100

 

 

93

 

 

96

 

Net income (loss) attributable to common
shareholders

$

(439

)

$

1,517

 

$

449

 

$

1,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.06

)

$

0.27

 

$

0.07

 

$

0.35

 

Diluted

$

(0.06

)

$

0.27

 

$

0.07

 

$

0.35

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

6,973,055

 

 

5,555,697

 

 

6,029,054

 

 

5,570,013

 

Diluted

 

6,973,055

 

 

5,591,118

 

 

6,029,054

 

 

5,605,434

 

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

 

 

June 30,

2021

 

December 31,

2020

 

(unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and equivalents

$

38,545

 

$

386

 

Accounts Receivable, net

 

33,323

 

 

24,183

 

Contract assets

 

7,538

 

 

7,080

 

Notes receivable - officers, employees, affiliates, current portion

 

1,117

 

 

1,182

 

Prepaid and other current assets

 

3,406

 

 

2,271

 

Total current assets

 

83,929

 

 

35,102

 

Non-Current Assets

 

 

 

 

 

 

Property and equipment, net

 

16,843

 

 

15,357

 

Goodwill

 

11,723

 

 

9,179

 

Notes receivable

 

903

 

 

903

 

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

 

1,281

 

 

1,297

 

Other intangible assets, net

 

1,865

 

 

1,131

 

Other assets

 

736

 

 

669

 

Total Assets

$

117,280

 

$

63,638

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Bank line of credit

 

-

 

 

3,481

 

Accounts payable and accrued liabilities, current portion

 

18,140

 

 

12,203

 

Contract liabilities

 

1,914

 

 

1,943

 

Notes payable, current portion

 

2,093

 

 

1,592

 

Deferred rent, current portion

 

680

 

 

619

 

Capital lease obligation, current portion

 

4,089

 

 

3,495

 

Total current liabilities

 

26,916

 

 

23,333

 

Non-Current Liabilities

 

 

 

 

 

 

Other non-current obligations

 

1,243

 

 

1,244

 

Notes payable, less current portion

 

3,717

 

 

2,829

 

Deferred rent, less current portion

 

4,226

 

 

4,278

 

Capital lease obligation, less current portion

 

7,904

 

 

7,503

 

Deferred tax liability, net

 

5,133

 

 

6,472

 

Common shares subject to repurchase

 

7

 

 

842

 

Total liabilities

$

49,146

 

$

46,501

 

Shareholders' Equity

 

 

 

 

 

 

Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding

 

-

 

 

-

 

Common stock, $0.01 par value; 30,000,000 shares authorized; 13,273,673 shares issued and 11,092,245 outstanding, and 7,840,244 shares issued and 5,744,594 outstanding, respectively

 

133

 

 

2

 

Additional paid-in-capital

 

110,218

 

 

58,866

 

Treasury Stock, at cost; 2,181,428 and 2,095,650, respectively

 

(17,117

)

 

(16,022

)

Stock subscription notes receivable

 

(542

)

 

(609

)

Accumulated deficit

 

(24,558

)

 

(25,100

)

Total shareholders' equity

$

68,134

 

$

17,137

 

TOTAL LIABILITIES AND EQUITY

$

117,280

 

$

63,638

 

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

For the Six Months Ended June 30,

 

2021

2020

Cash Flows from Operating Activities:

 

 

 

 

 

 

Net Income

$

542

 

$

2,043

 

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

 

 

 

 

 

 

Depreciation and amortization - property, plant and equipment

 

2,771

 

 

501

 

Amortization of intangible assets

 

137

 

 

139

 

Gain on sale of assets

 

(53

)

 

(15

)

Bad debt

 

251

 

 

276

 

Stock based compensation

 

2,707

 

 

536

 

Deferred taxes

 

(1,340

)

 

163

 

Deferred rent

 

9

 

 

319

 

Changes in operating assets and liabilities

 

 

 

 

 

 

Accounts Receivable

 

(9,391

)

 

201

 

Contract Assets

 

(242

)

 

5,113

 

Prepaid expenses

 

(1,116

)

 

958

 

Other Assets

 

(66

)

 

(51

)

Accounts payable and accrued expenses

 

5,764

 

 

2,567

 

Contract Liabilities

 

(445

)

 

(4,427

)

Net cash (used in) provided by operating activities

 

(472

)

 

8,323

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

Purchases of property and equipment

 

(757

)

 

(809

)

Proceeds from sale of assets and disposal of leases

 

53

 

 

15

 

Amounts advanced under loans to shareholders

 

(374

)

 

(607

)

Payments received under loans to shareholders

 

81

 

 

145

 

Amounts advanced under notes receivable

 

-

 

 

(277

)

Acquisitions of businesses, net of cash acquired

 

(640

)

 

-

 

Collections under stock subscription notes receivable

 

67

 

 

91

 

Net cash used in investing activities

 

(1,570

)

 

(1,442

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

Proceeds from initial public offering, net of underwriting discounts and
commissions and other offering costs

 

47,104

 

 

-

 

Net borrowings under revolving line of credit

 

(3,481

)

 

(7,231

)

Repayments under fixed line of credit

 

(359

)

 

(178

)

Borrowings under fixed line of credit

 

-

 

 

1,985

 

Repayment under notes payable

 

(454

)

 

(613

)

Payments on capital leases

 

(2,052

)

 

(141

)

Payment of contingent consideration from acquisitions

 

(2

)

 

(17

)

Payments for purchase of treasury stock

 

(582

)

 

-

 

Proceeds from issuance of common stock

 

27

 

 

28

 

Net cash provided by (used in) financing activities

 

40,201

 

 

(6,167

)

Net increase in cash and cash equivalents

 

38,159

 

 

714

 

Cash and cash equivalents, beginning of period

 

386

 

 

509

 

Cash and cash equivalents, end of period

$

38,545

 

$

1,223

 

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

For the Three Months Ended June 30,

Net Service Billing

 

2021

 

2020

Gross revenue

 

$

36,524

 

 

$

31,749

 

Less: sub-consultants and other direct expenses

 

 

4,065

 

 

 

4,581

 

Net services billing

 

$

32,459

 

 

$

27,168

 

 

 

For the Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

2021

 

 

2020

 

 

 

$ Change

 

 

% Change

 

Net Income

 

$

(439

)

 

$

1,617

 

 

 

$

(2,056

)

 

 

-127.2

%

+ interest expense

 

 

215

 

 

 

100

 

 

 

 

115

 

 

 

115.0

%

+ depreciation & amortization

 

 

1,480

 

 

 

320

 

 

 

 

1,160

 

 

 

362.5

%

+ tax expense

 

 

(69

)

 

 

1,157

 

 

 

 

(1,226

)

 

 

-106.0

%

EBITDA

 

$

1,187

 

 

$

3,194

 

 

 

$

(2,007

)

 

 

-62.8

%

+ non-recurring operating lease rent

 

 

-

 

 

 

842

 

 

 

 

(842

)

 

 

-100.0

%

+ non-cash stock compensation

 

 

1,558

 

 

 

1,079

 

 

 

 

479

 

 

 

44.4

%

+ transaction related expenses

 

 

1,440

 

 

 

-

 

 

 

 

1,440

 

 

 

100.0

%

Adjusted EBITDA

 

$

4,185

 

 

$

5,115

 

 

 

$

(930

)

 

 

-18.2

%

Adjusted EBITDA margin, net

 

 

12.9

%

 

 

18.8

%

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30,

 

Net Service Billing

 

2021

 

 

2020

 

Gross revenue

 

$

68,326

 

 

$

60,360

 

Less: sub-consultants and other direct expenses

 

 

6,999

 

 

 

8,459

 

Net services billing

 

$

61,327

 

 

$

51,901

 

 

 

For the Six Months Ended June 30,

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Net Income

 

$

542

 

 

$

2,043

 

 

$

(1,501

)

 

 

-73.5

%

+ interest expense

 

 

434

 

 

 

249

 

 

 

185

 

 

 

74.3

%

+ depreciation & amortization

 

 

2,908

 

 

 

640

 

 

 

2,268

 

 

 

354.4

%

+ tax expense

 

 

240

 

 

 

1,447

 

 

 

(1,207

)

 

 

-83.4

%

EBITDA

 

$

4,124

 

 

$

4,379

 

 

$

(255

)

 

 

-5.8

%

+ non-recurring operating lease rent

 

 

-

 

 

 

1,789

 

 

 

(1,789

)

 

 

-100.0

%

+ non-cash stock compensation

 

 

2,707

 

 

 

536

 

 

 

2,171

 

 

 

405.0

%

+ transaction related expenses

 

 

1,440

 

 

 

-

 

 

 

1,440

 

 

 

100.0

%

Adjusted EBITDA

 

$

8,271

 

 

$

6,704

 

 

$

1,567

 

 

 

23.0

%

Adjusted EBITDA margin, net

 

 

13.5

%

 

 

12.9

%

 

 

 

 

 

 

 

 

Backlog

 

June 30, 2021

 

 

December 31, 2020

 

Communities, homes & buildings

 

 

50

%

 

 

43

%

Transportation

 

 

25

%

 

 

28

%

Power & Utilities

 

 

21

%

 

 

25

%

Other emerging markets

 

 

4

%

 

 

4

%

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands except per share data)

(Unaudited)

 

 

 

For the Three Months Ended June 30,

 

 

 

 

 

 

 

 

 

Consolidated Gross Contract Revenue

 

2021

 

 

%GCR

 

 

2020

 

 

%GCR

 

 

Change

 

 

% Change

 

Communities, homes & buildings

 

$

25,187

 

 

 

69.0

%

 

$

19,571

 

 

 

61.6

%

 

$

5,616

 

 

 

28.7

%

Transportation

 

 

4,174

 

 

 

11.4

%

 

 

5,406

 

 

 

17.0

%

 

 

(1,232

)

 

 

(22.8

%)

Power & Utilities

 

 

6,184

 

 

 

16.9

%

 

 

5,477

 

 

 

17.3

%

 

 

707

 

 

 

12.9

%

Other emerging markets 1

 

 

979

 

 

 

2.7

%

 

 

1,295

 

 

 

4.1

%

 

 

(316

)

 

 

-24.4

%

Total:

 

$

36,524

 

 

 

100.0

%

 

$

31,749

 

 

 

100.0

%

 

$

4,775

 

 

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic and Acquired Gross Contract
Revenue

 

2021

 

 

%GCR

 

 

2020

 

 

%GCR

 

 

Change

 

 

% Change

 

Organic

 

$

33,957

 

 

 

93.0

%

 

$

31,749

 

 

 

100.0

%

 

$

2,208

 

 

 

7.0

%

Acquired

 

 

2,567

 

 

 

7.0

%

 

 

-

 

 

 

0.0

%

 

 

2,567

 

 

 

100.0

%

Total:

 

$

36,524

 

 

 

100.0

%

 

$

31,749

 

 

 

100.0

%

 

$

4,775

 

 

 

15.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 represents renewable energy, mining, water resources and other

 

 

 

For the Six Months Ended June 30,

 

 

 

 

 

 

 

 

Consolidated Gross Contract Revenue

 

 

2021

 

 

%GCR

 

 

2020

 

 

%GCR

 

 

Change

 

% Change

 

Communities, homes & buildings

 

 

$

46,224

 

 

 

67.7

%

 

$

36,009

 

 

 

59.7

%

 

$

10,215

 

 

28.4

%

Transportation

 

 

 

8,295

 

 

 

12.1

%

 

 

10,287

 

 

 

17.0

%

 

 

(1,992

)

 

(19.4

%)

Power & Utilities

 

 

 

11,230

 

 

 

16.4

%

 

 

11,190

 

 

 

18.5

%

 

 

40

 

 

0.4

%

Other emerging markets 1

 

 

 

2,577

 

 

 

3.8

%

 

 

2,874

 

 

 

4.8

%

 

 

(297

)

 

-10.3

%

Total:

 

 

$

68,326

 

 

 

100.0

%

 

$

60,360

 

 

 

100.0

%

 

$

7,966

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Organic and Acquired Gross Contract Revenue

 

 

2021

 

 

%GCR

 

 

2020

 

 

%GCR

 

 

Change

 

% Change

 

Organic

 

 

$

63,836

 

 

 

93.4

%

 

$

60,360

 

 

 

100.0

%

 

$

3,476

 

 

5.8

%

Acquired

 

 

 

4,490

 

 

 

6.6

%

 

 

-

 

 

 

0.0

%

 

 

4,490

 

 

100.0

%

Total:

 

 

$

68,326

 

 

 

100.0

%

 

$

60,360

 

 

 

100.0

%

 

$

7,966

 

 

13.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 represents renewable energy, mining, water resources and other

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted In: Press Releases