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 financial results for the quarter ended March 31, 2021 which included year-over-year increases of 11% in gross revenue and 157% in adjusted EBITDA.
“The first quarter was our final quarter as a private company and it was clearly a busy period for us,” said Gary Bowman, Chairman and CEO of Bowman. “We booked over $36 million of new work while generating just under $32 million of gross revenue. In January we closed on the KTA acquisition and we have already integrated operations and started cross selling services. We strengthened our leadership with people who bring significant industry experience and extensive client relationships. At the same time, our team worked tirelessly on our $53 million IPO which closed in May. So far, the second quarter has been in line with our expectations for new bookings and gross contract revenue. I am very proud of our accomplishments and look forward to delivering growth and value to shareholders.”
Financial Highlights of First Quarter 2021:
- Gross revenue increased 11% to $31.8 million
- Net service billing increased 17% to $28.9 million 1
- Net income increased 130% to $1.0 million
- Adjusted EBITDA increased 157% to $4.1 million 1
- Adjusted EBITDA margin, net increased 120% to 14.2% 1
- Acquisitions contributed $1.9 million or 6% of gross revenue
- Backlog increased by $3 million to $116 million 1
Other Reported Business Highlights:
- Closed on KTA Group acquisition and commenced cross-selling initiatives
- Hired Michael Ginsberg to launch national energy transition services practice
- Added impactful senior operations and business development leadership
- Hired Tim Vaughn to lead and accelerate M&A efforts
_____________________________
1 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations
Q1 2021 Earnings Webcast
Bowman will host an earnings webcast to discuss first quarter 2021 financial results:
Date: |
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June 11, 2021 |
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Time: |
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9:00 a.m. Eastern Time |
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Hosts: |
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Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer |
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Where: |
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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 (Unaudited) |
||||||||
|
|
For the Three Months Ended March 31, |
|
|||||
(in thousands except share data) |
|
2021 |
|
|
2020 |
|
||
Gross Contract Revenue |
|
$ |
31,802 |
|
|
$ |
28,611 |
|
Contract costs: (exclusive of depreciation and amortization below) |
|
|
|
|
|
|
|
|
Direct payroll costs |
|
|
13,222 |
|
|
|
11,652 |
|
Sub-consultants and expenses |
|
|
2,934 |
|
|
|
3,878 |
|
Total contract costs |
|
|
16,156 |
|
|
|
15,530 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
12,749 |
|
|
|
12,069 |
|
Depreciation and amortization |
|
|
1,428 |
|
|
|
320 |
|
(Gain) loss on sale |
|
|
(26 |
) |
|
|
(15 |
) |
Total operating expenses |
|
|
14,151 |
|
|
|
12,374 |
|
Income from operations |
|
|
1,495 |
|
|
|
707 |
|
Other (income) expense |
|
|
205 |
|
|
|
(9 |
) |
Income before tax expense |
|
|
1,290 |
|
|
|
716 |
|
Income tax expense |
|
|
309 |
|
|
|
290 |
|
Net income |
|
$ |
981 |
|
|
$ |
426 |
|
|
|
|
|
|
|
|
|
|
Earnings allocated to non-vested shares |
|
|
124 |
|
|
|
14 |
|
Net income attributable to common shareholders |
|
$ |
857 |
|
|
$ |
412 |
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.17 |
|
|
$ |
0.07 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.07 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
5,083,470 |
|
|
|
5,584,321 |
|
Diluted |
|
|
5,096,597 |
|
|
|
5,622,700 |
|
BOWMAN CONSULTING GROUP LTD. CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
||
(in thousands) |
(unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and equivalents |
|
319 |
|
|
|
386 |
|
Accounts Receivable, net |
|
27,699 |
|
|
|
24,183 |
|
Contract assets |
|
7,396 |
|
|
|
7,080 |
|
Notes receivable - officers, employees, affiliates, current portion |
|
1,116 |
|
|
|
1,182 |
|
Prepaid and other current assets |
|
2,825 |
|
|
|
2,271 |
|
Total current assets |
|
39,355 |
|
|
|
35,102 |
|
Non-Current Assets |
|
|
|
|
|
|
|
Property and equipment, net |
|
16,218 |
|
|
|
15,357 |
|
Goodwill |
|
11,723 |
|
|
|
9,179 |
|
Notes receivable, less current portion |
|
903 |
|
|
|
903 |
|
Notes receivable - officers, employees, affiliates, less current portion |
|
1,289 |
|
|
|
1,297 |
|
Other intangible assets, net |
|
1,934 |
|
|
|
1,131 |
|
Other assets |
|
718 |
|
|
|
669 |
|
Total Assets |
$ |
72,140 |
|
|
$ |
63,638 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Bank line of credit |
|
6,941 |
|
|
|
3,481 |
|
Accounts payable and accrued liabilities, current portion |
|
13,200 |
|
|
|
12,203 |
|
Contract liabilities |
|
1,945 |
|
|
|
1,943 |
|
Notes payable, current portion |
|
2,124 |
|
|
|
1,592 |
|
Deferred rent, current portion |
|
654 |
|
|
|
619 |
|
Capital lease obligation, current portion |
|
3,797 |
|
|
|
3,495 |
|
Total current liabilities |
|
28,661 |
|
|
|
23,333 |
|
Non Current Liabilities |
|
|
|
|
|
|
|
Other non-current obligations |
|
1,243 |
|
|
|
1,244 |
|
Notes payable, less current portion |
|
4,167 |
|
|
|
2,829 |
|
Deferred rent, less current portion |
|
4,148 |
|
|
|
4,278 |
|
Capital lease obligation, less current portion |
|
7,556 |
|
|
|
7,503 |
|
Deferred tax liability, net |
|
6,581 |
|
|
|
6,472 |
|
Common shares subject to repurchase |
|
1,401 |
|
|
|
842 |
|
Total liabilities |
$ |
53,757 |
|
|
$ |
46,501 |
|
Shareholders' Equity |
|
|
|
|
|
|
|
Common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in-capital |
|
60,161 |
|
|
|
58,866 |
|
Treasury Stock |
|
(17,085 |
) |
|
|
(16,022 |
) |
Stock subscription notes receivable |
|
(576 |
) |
|
|
(609 |
) |
Accumulated deficit |
|
(24,119 |
) |
|
|
(25,100 |
) |
Total shareholders' equity |
$ |
18,383 |
|
|
$ |
17,137 |
|
TOTAL LIABILITIES AND EQUITY |
$ |
72,140 |
|
|
$ |
63,638 |
|
| BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||||
|
|
For the Three Months Ended
|
|
|||||||
(in thousands) |
|
2021 |
|
|
2020 |
|
||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
||
Net Income |
|
$ |
981 |
|
|
$ |
426 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
||
Depreciation and amortization - property, plant and equipment |
|
|
1,360 |
|
|
|
250 |
|
||
Amortization of intangible assets |
|
|
68 |
|
|
|
70 |
|
||
Gain on sale of assets |
|
|
(26 |
) |
|
|
(15 |
) |
||
Bad debt |
|
|
92 |
|
|
|
122 |
|
||
Stock based compensation |
|
|
1,149 |
|
|
|
(543 |
) |
||
Deferred taxes |
|
|
109 |
|
|
|
75 |
|
||
Deferred rent |
|
|
(95 |
) |
|
|
176 |
|
||
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
||
Accounts Receivable |
|
|
(3,608 |
) |
|
|
(3,082 |
) |
||
Contract Assets |
|
|
(100 |
) |
|
|
4,815 |
|
||
Prepaid expenses |
|
|
(148 |
) |
|
|
831 |
|
||
Deposits and other assets |
|
|
(21 |
) |
|
|
(16 |
) |
||
Accounts payable and accrued expenses |
|
|
698 |
|
|
|
(1,751 |
) |
||
Contract Liabilities |
|
|
(414 |
) |
|
|
(2,874 |
) |
||
Net cash provided by (used in) operating activities |
|
|
45 |
|
|
|
(1,516 |
) |
||
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(438 |
) |
|
|
(183 |
) |
||
Proceeds from sale of assets and disposal of leases |
|
|
26 |
|
|
|
15 |
|
||
Amounts advanced under loans to shareholders |
|
|
(364 |
) |
|
|
(337 |
) |
||
Payments received under loans to shareholders |
|
|
75 |
|
|
|
57 |
|
||
Amounts advanced under notes receivable |
|
|
- |
|
|
|
(140 |
) |
||
Acquisitions of businesses, net of cash acquired |
|
|
(640 |
) |
|
|
- |
|
||
Collections under stock subscription notes receivable |
|
|
33 |
|
|
|
47 |
|
||
Net cash used in investing activities |
|
|
(1,308 |
) |
|
|
(541 |
) |
||
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
||
Net repayments under revolving line of credit |
|
|
3,460 |
|
|
|
456 |
|
||
Repayments under fixed line of credit |
|
|
(179 |
) |
|
|
(49 |
) |
||
Borrowings under fixed line of credit |
|
|
- |
|
|
|
1,985 |
|
||
Repayment under notes payable |
|
|
(151 |
) |
|
|
(407 |
) |
||
Payments on capital leases |
|
|
(975 |
) |
|
|
(71 |
) |
||
Payment of contingent consideration from acquisitions |
|
|
(1 |
) |
|
|
(17 |
) |
||
Payment of offering costs |
|
|
(417 |
) |
|
|
- |
|
||
Payments for purchase and retirement of common stock |
|
|
(559 |
) |
|
|
- |
|
||
Proceeds from issuance of common stock |
|
|
18 |
|
|
|
15 |
|
||
Net cash provided by financing activities |
|
|
1,196 |
|
|
|
1,912 |
|
||
Net decrease in cash and cash equivalents |
|
|
(67 |
) |
|
|
(145 |
) |
||
Cash and cash equivalents, beginning of period |
|
|
386 |
|
|
|
509 |
|
||
Cash and cash equivalents, end of period |
|
$ |
319 |
|
|
$ |
364 |
|
||
BOWMAN CONSULTING GROUP LTD. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||
(in thousands) |
|
For the Three Months Ended
|
|
|||||
Net Service Billing |
|
2021 |
|
|
2020 |
|
||
Gross revenue |
|
$ |
31,802 |
|
|
$ |
28,611 |
|
Less: sub-consultants and other direct expenses |
|
|
2,934 |
|
|
|
3,878 |
|
Net services billing |
|
$ |
28,868 |
|
|
$ |
24,733 |
|
(in thousands) |
|
For the Three Months Ended
|
|
||||||||
Adjusted EBITDA and Adjusted EBITDA Margin, net |
|
2021 |
|
|
2020 |
|
|||||
Net Income |
|
$ |
981 |
|
|
$ |
426 |
|
|
||
+ interest expense |
|
|
219 |
|
|
|
149 |
|
|
||
+ depreciation & Amortization |
|
|
1,428 |
|
|
|
320 |
|
|
||
+ tax expense |
|
|
309 |
|
|
|
290 |
|
|
||
EBITDA |
|
$ |
2,937 |
|
|
$ |
1,185 |
|
|
||
+ non-reoccurring operating lease rent |
|
|
- |
|
|
|
947 |
|
|
||
+ non-cash stock compensation |
|
|
1,149 |
|
|
|
(543 |
) |
|
||
Adjusted EBITDA |
|
$ |
4,086 |
|
|
$ |
1,589 |
|
|
||
Adjusted EBITDA margin, net |
|
|
14.2% |
|
|
|
6.4% |
|
|
||
(in thousands) |
For the Three Months Ended
|
||||
Gross Margin, gross and Gross Margin, net |
2021 |
2020 |
|||
Gross revenue |
$ |
31,802 |
$ |
28,611 |
|
Less: sub-consultants and other direct expenses |
|
2,934 |
|
3,878 |
|
Net service billing |
$ |
28,868 |
$ |
24,733 |
|
Direct payroll |
|
13,222 |
|
11,652 |
|
Gross profit (excluding depreciation and amortization) |
$ |
15,646 |
$ |
13,081 |
|
Gross margin, gross |
|
49.2% |
|
45.7% |
|
Gross margin, net |
|
54.2% |
|
52.9% |
|
BOWMAN CONSULTING GROUP LTD. GROSS CONTRACT REVENUE COMPOSITION (Unaudited) |
|||||||||||||
(dollars in millions) |
For the three months ended March 31, |
||||||||||||
Consolidated Gross Revenue |
2021 |
%GCR |
2020 |
%GCR |
Change |
% of Change |
|||||||
Communities, Homes & Buildings |
$21,037 |
66.2% |
$16,437 |
57.5% |
$4,600 |
28.0% |
|||||||
Transportation |
4,122 |
13.0% |
4,882 |
17.1% |
(760) |
-15.6% |
|||||||
Power and Utilities |
5,045 |
15.8% |
5,712 |
19.9% |
(667) |
-11.7% |
|||||||
Emerging Markets |
1,598 |
5.0% |
1,580 |
5.5% |
18 |
1.1% |
|||||||
Total |
$31,802 |
100.0% |
28,611 |
100.0% |
3,191 |
11.2% |
|||||||
For the three months ended March 31, |
|||||||||||||
Organic v Acquired Revenue |
2,021 |
%GCR |
2,020 |
%GCR |
Change |
% of Change |
|||||||
Organic Growth |
$29,879 |
94.0% |
$28,611 |
100.0% |
$1,268 |
39.7% |
|||||||
Acquired Growth - KTA Group |
1,923 |
6.0% |
- |
0.0% |
1,923 |
60.3% |
|||||||
Total |
$31,802 |
100.0% |
$28,611 |
100.0% |
$3,191 |
100.0% |
|||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210610005882/en/
Contacts
Investor Relations
Bruce Labovitz
ir@bowman.com
(703) 787-3403
