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,
|
|
December 31,
|
||||
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
|
For the Year
|
||||||||||||
|
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
|
|
For the Year Ended
|
||||||||||||
|
|
|
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
|
|
For the Year Ended
|
||||||||||||
|
|
|
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
|
|
For the Year Ended
|
||||||||||||
|
|
|
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
|
|
For the Year Ended
|
|||||||||||
|
|
|
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
|
|
For the Year Ended
|
|||||||||||
|
|
|
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
|
|
For the Year Ended
|
|||||||||||
|
|
|
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
