Bowman Consulting Group Announces Record First Quarter Results and Increases 2022 Outlook
RESTON, Va.–(BUSINESS WIRE)–Bowman Consulting Group Ltd. (Nasdaq: BWMN) (“Bowman” or the “Company”), a national engineering services firm supporting owners and developers of the built environment, today announced record revenue and results of operations for the three months ended 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: |
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 |
||||||||
|
(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, |
December 31, |
|||||||
|
(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 |
|
— |
|
|
— |
|
||
|
Common stock, $0.01 par value; 30,000,000 shares authorized; |
|
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 |
|
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 |
Contacts
Investor Relations
Bruce Labovitz
ir@bowman.com
(703) 787-3403
Megan McGrath
mmcgrath@finprofiles.com
(310) 622-8248
