Bowman Consulting Group Announces Record First Quarter Results and Increases 2022 Outlook

Bowman Consulting Group Ltd. BWMN ("Bowman" or the "Company"), a national engineering services firm supporting owners and developers of the built environment, today announced record revenue and results of operations for the three months ended March 31, 2022.

"We are starting the year strong with a terrific first quarter", said Gary Bowman, Chairman and CEO of Bowman. "It was a busy three months and things are not slowing down. During the quarter we acquired Perry Engineering, raised $17 million of additional equity for growth, continued the process of integrating our acquisitions from last year and delivered record net service revenue that exceeded estimates. At the same time, we grew backlog and increased our full year outlook. Last week we announced the acquisition of McMahon Associates, our largest to date, demonstrating our continuing commitment to strategic diversification. We remain steadfast in our approach to disciplined growth and increasing shareholder value."

Financial Highlights for the three months ended March 31, 2022, compared to March 31, 2021:

  • Gross revenue of $52.5 million, compared to $31.8 million, a 65% increase
  • Net service billing1 of $47.7 million, compared to $28.9 million, a 65% increase
  • Net income of $1.5 million, compared to $1.0 million, a 50% increase
  • Adjusted EBITDA1 of $7.4 million, compared to $4.1 million, an 81% increase
  • Adjusted EBITDA margin, net 1 of 15.5%, compared to 14.2% million, a 130 basis point increase
  • Gross backlog1 of $173 million, compared to $116 million, a 49% increase and a $6 million, or 4%, increase from December 31, 2021

Business Highlights during the First Quarter:

  • Closed on the acquisition of Perry Engineering – Jan 2022
  • Closed on $16.9 million equity raise – Feb 2022

Business Highlights subsequent to the First Quarter:

  • Closed on the acquisition of McMahon Associates – May 2022

Fiscal Year 2022 Guidance

The Company is increasing its full year 2022 outlook for Net Service Billing to be in the range of $185 to $200 million and Adjusted EBITDA in the range of $25 to $29 million. This presents an increase from the previous guidance of $170 to $185 million of Net Service Billing and $23 to $27 million of Adjusted EBITDA. The current outlook for 2022 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. The Company expects to continue making strategic and financially accretive acquisitions that are not yet reflected in this current outlook. Management will discuss the Company's acquisition pipeline during its upcoming earnings call.

FY 2022 Earnings Webcast

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

Date:

May 12, 2022

Time:

9:00 a.m. Eastern Time

Hosts:

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

Where:

http://investors.bowman.com

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

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is an established professional services firm delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. With over 1,400 employees in more than 60 offices throughout the United States, Bowman provides a variety of planning, engineering, construction management, commissioning, environmental consulting, geomatics, survey, land procurement and other technical services to customers operating in a diverse set of regulated end markets. For more information, visit bowman.com or investors.bowman.com.

Forward-Looking Statements

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

Non-GAAP Financial Measures and Other Key Metrics

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

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED INCOME STATEMENTS

 

For the Three Months
Ended March 31,

(Amounts in thousands except per share data)

2022

2021

Gross Contract Revenue

$

52,461

 

$

31,802

 

Contract costs: (exclusive of depreciation and amortization below)

Direct payroll costs

 

20,659

 

 

13,222

 

Sub-consultants and expenses

 

4,760

 

 

2,934

 

Total contract costs

 

25,419

 

 

16,156

 

Operating Expenses:

Selling, general and administrative

 

22,821

 

 

12,749

 

Depreciation and amortization

 

2,389

 

 

1,428

 

(Gain) on sale

 

(6

)

 

(26

)

Total operating expenses

 

25,204

 

 

14,151

 

Income from operations

 

1,838

 

 

1,495

 

Other (income) expense

 

498

 

 

205

 

Income before tax expense

 

1,340

 

 

1,290

 

Income tax expense

 

(117

)

 

309

 

Net income

$

1,457

 

$

981

 

Earnings allocated to non-vested shares

 

254

 

 

124

 

Net income attributable to common shareholders

$

1,203

 

$

857

 

Earnings per share

Basic

$

0.12

 

$

0.17

 

Diluted

$

0.12

 

$

0.17

 

Weighted average shares outstanding:

Basic

 

9,926,395

 

 

5,083,470

 

Diluted

 

10,043,794

 

 

5,096,597

 

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

March 31,
2022

December 31,
2021

(Amounts in thousands except per share data)

(Unaudited)

ASSETS

Current Assets

Cash and equivalents

$

34,938

 

$

20,619

 

Accounts receivable, net

 

45,372

 

 

38,491

 

Contract assets

 

10,396

 

 

9,189

 

Notes receivable - officers, employees, affiliates, current portion

 

1,207

 

 

1,260

 

Prepaid and other current assets

 

5,440

 

 

4,850

 

Total current assets

 

97,353

 

 

74,409

 

Non-Current Assets

Property and equipment, net

 

20,745

 

 

20,202

 

Goodwill

 

29,148

 

 

28,471

 

Notes receivable

 

903

 

 

903

 

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

 

1,200

 

 

1,218

 

Other intangible assets, net

 

11,819

 

 

12,286

 

Other assets

 

721

 

 

681

 

Total Assets

$

161,889

 

$

138,170

 

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued liabilities, current portion

 

21,026

 

 

17,921

 

Contract liabilities

 

5,551

 

 

4,623

 

Notes payable, current portion

 

4,572

 

 

4,450

 

Deferred rent, current portion

 

721

 

 

724

 

Capital lease obligation, current portion

 

5,491

 

 

5,136

 

Total current liabilities

 

37,361

 

 

32,854

 

Non-Current Liabilities

Notes payable, less current portion

 

7,399

 

 

8,407

 

Deferred rent, less current portion

 

4,063

 

 

4,179

 

Capital lease obligation, less current portion

 

10,705

 

 

10,020

 

Deferred tax liability, net

 

4,290

 

 

4,290

 

Common shares subject to repurchase

 

-

 

 

7

 

Total liabilities

$

63,818

 

$

59,757

 

 

Shareholders' Equity

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

 

 

 

 

Common stock, $0.01 par value; 30,000,000 shares authorized;
14,809,363 shares issued and 12,562,009 outstanding, and 13,690,868
shares issued and 11,489,579 outstanding, respectively

 

148

 

 

137

 

Additional paid-in-capital

 

139,996

 

 

120,842

 

Treasury stock, at cost; 2,247,354 and 2,201,289, respectively

 

(18,476

)

 

(17,488

)

Stock subscription notes receivable

 

(253

)

 

(277

)

Accumulated deficit

 

(23,344

)

 

(24,801

)

Total shareholders' equity

$

98,071

 

$

78,413

 

 

 

TOTAL LIABILITIES AND EQUITY

$

161,889

 

$

138,170

 

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

For the Three Months Ended March 31,

(Amounts in thousands except per share data)

2022

2021

Cash Flows from Operating Activities:

Net Income

$

1,457

 

$

981

 

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

Depreciation and amortization - property, plant and equipment

 

1,922

 

 

1,360

 

Amortization of intangible assets

 

468

 

 

68

 

Gain on sale of assets

 

(6

)

 

(26

)

Bad debt

 

152

 

 

92

 

Stock based compensation

 

3,236

 

 

1,149

 

Deferred taxes

 

-

 

 

109

 

Deferred rent

 

(119

)

 

(95

)

Changes in operating assets and liabilities

Accounts Receivable

 

(6,945

)

 

(3,608

)

Contract Assets

 

(721

)

 

(100

)

Prepaid expenses and other assets

 

(630

)

 

(169

)

Accounts payable and accrued expenses

 

2,960

 

 

698

 

Contract Liabilities

 

640

 

 

(414

)

Net cash provided by operating activities

 

2,414

 

 

45

 

Cash Flows from Investing Activities:

Purchases of property and equipment

 

(198

)

 

(438

)

Fixed assets converted to lease financing

 

278

 

 

-

 

Proceeds from sale of assets

 

6

 

 

26

 

Amounts advanced under loans to shareholders

 

-

 

 

(364

)

Payments received under loans to shareholders

 

70

 

 

75

 

Acquisitions of businesses, net of cash acquired

 

(550

)

 

(640

)

Collections under stock subscription notes receivable

 

24

 

 

33

 

Net cash used in investing activities

 

(370

)

 

(1,308

)

Cash Flows from Financing Activities:

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

 

15,475

 

 

-

 

Net borrowings under revolving line of credit

 

-

 

 

3,460

 

Repayments under fixed line of credit

 

(182

)

 

(179

)

Repayment under notes payable

 

(905

)

 

(151

)

Payments on capital leases

 

(1,414

)

 

(975

)

Payment of contingent consideration from acquisitions

 

-

 

 

(1

)

Payment of offering costs

 

-

 

 

(417

)

Payments for purchase of treasury stock

 

(988

)

 

(559

)

Proceeds from issuance of common stock

 

289

 

 

18

 

Net cash provided by financing activities

 

12,275

 

 

1,196

 

Net increase (decrease) in cash and cash equivalents

 

14,319

 

 

(67

)

Cash and cash equivalents, beginning of period

 

20,619

 

 

386

 

Cash and cash equivalents, end of period

$

34,938

 

$

319

 

 

BOWMAN CONSULTING GROUP LTD. AND AFFILIATES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 
 

For the Three Months Ended March 31,

(Amounts in thousands except per share data)

2022

2021

Supplemental disclosures of cash flow information:

Cash paid for interest

$

344

 

$

203

 

Cash paid for income taxes

$

279

 

 

-

 

Non-cash investing and financing activities

Property and equipment acquired under capital lease

$

(2,456

)

$

(1,330

)

Stock redemption for exercise of stock option

 

-

 

$

139

 

Issuance of notes payable for acquisitions

$

(200

)

 

-

 

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

 

For the Three Months Ended March 31,

(Amounts in thousands except per share data)

2022

 

2021

Gross contract revenue

$

52,461

 

$

31,802

 

Contract costs (exclusive of depreciation and amortization)

 

25,419

 

 

16,156

 

Operating expense

 

25,204

 

 

14,151

 

Income from operations

 

1,838

 

 

1,495

 

Other (income) expense

 

498

 

 

205

 

Income tax expense (benefit)

 

(117

)

 

309

 

Net income

$

1,457

 

$

981

 

Net margin

 

2.8

%

 

3.1

%

Other financial information 1

Net service billing

$

47,701

 

$

28,868

 

Adjusted EBITDA

 

7,404

 

 

4,086

 

Adjusted EBITA margin, net

 

15.5

%

 

14.2

%

For the Three Months Ended March 31,

(Amounts in thousands except per share data)

2022

 

2021

Gross revenue

$

52,461

$

31,802

Less: sub-consultants and other direct expenses

 

4,760

 

2,934

Net services billing

$

47,701

$

28,868

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

 

For the Three Months Ended March 31,

(Amounts in thousands)

 

2022

%GCR

 

2021

%GCR

Change

% Change

Building Infrastructure 1

$

38,762

73.9

%

$

21,037

66.1

%

$

17,725

 

84.3

%

Transportation

 

3,970

7.6

%

 

4,122

13.0

%

 

(152

)

(3.7

%)

Power & Utilities

 

7,637

14.5

%

 

5,045

15.9

%

 

2,592

 

51.4

%

Other emerging markets 2

 

2,092

4.0

%

 

1,598

5.0

%

 

494

 

30.9

%

Total:

$

52,461

100.0

%

$

31,802

100.0

%

$

20,659

 

65.0

%

Organic

$

42,910

81.6

%

$

29,879

94.0

%

$

13,031

 

43.6

%

Acquired

 

9,551

18.4

%

 

1,923

6.0

%

 

7,628

 

21.3

%

Total:

$

52,461

100.0

%

$

31,802

100.0

%

$

20,659

 

65.0

%

1 formerly referred to as Communities, homes & buildings

2 represents renewable energy, mining, water resources and other

BOWMAN CONSULTING GROUP LTD.

BACKLOG AT MARCH 31, 2022

(Unaudited)

 

(Amounts in thousands)

Gross Backlog

Building Infrastructure

 

112,450

Transportation

 

31,140

Power & Utilities

 

25,950

Emerging Markets

 

3,460

Total

$

173,000

 

Posted In: Press Releases