Bowman Announces Record Full Year 2022 Revenue and Adjusted EBITDA
Bowman Consulting Group Ltd. (Nasdaq: BWMN) reported record financial results for 2022, marking a successful first year as a public company. Key highlights include:
- Gross revenue of $261.7 million, up 74% from 2021.
- Net income of $5.0 million, a turnaround from a $0.3 million profit the previous year.
- Adjusted EBITDA of $34.0 million, a 106% increase.
- Acquisitions closed in 2022 contributed over $60 million in annualized revenue.
For 2023, Bowman increased its guidance for net service billing to $280-$295 million and adjusted EBITDA to $43-$49 million, driven by robust demand in infrastructure.
- Gross revenue increased by 74% to $261.7 million.
- Net income improved to $5.0 million from a $0.3 million profit.
- Adjusted EBITDA rose by 106% to $34.0 million.
- Gross backlog increased by 46% to $243 million.
- Acquired companies contributed over $60 million in annualized revenue.
- None.
“During 2022, our first full year as a public company, we exceeded expectations and delivered on our commitment to strategic growth,” said
Financial highlights for the three months ended
-
Gross revenue of
$75.6 million $41.9 million 80% increase -
Year-over-year organic gross revenue growth1 of
30% -
Net service billing2 of
$66.2 million $37.8 million 75% increase -
Year-over-year organic net service billing growth of
24% -
Net income of
$0.5 million ( $0.6) million -
Adjusted EBITDA2 of
$9.4 million $3.5 million 169% increase -
Adjusted EBITDA margin, net 2 of
14.2% , compared to9.4% , a 480 bps increase -
Gross backlog2 of
$243 million $167 million 46% increase
Financial highlights for the twelve months ended
-
Gross revenue of
$261.7 million $150.0 million 74% increase -
Year-over-year organic gross revenue growth of
31% -
Net service revenue1 of
$235.2 million $134.9 million 74% increase -
Year-over-year organic net service billing growth of
26% -
Net income of
$5.0 million $0.3 million -
Adjusted EBITDA1 of
$34.0 million $16.5 million 106% increase -
Adjusted EBITDA margin, net 1 of
14.5% , compared to12.2% , a 230 bps increase
Business highlights during the fourth quarter 2022:
-
Closed on the acquisition of Spatial Acuity –
November 2022 -
Closed on the acquisition of SEI Engineering –
November 2022 -
Closed on the acquisition of H2H Geoscience Engineering –
December 2022
Increasing FY 2023 Guidance
The Company is increasing its full year 2023 outlook for Net Service Billing to be in the range of
FY 2022 Earnings Webcast
Bowman will host an earnings webcast to discuss the results of the quarter as follows:
Date: |
|
Time: |
|
Hosts: |
|
Where: |
| 1 | Revenue from acquired companies is reclassified as organic revenue in the first full quarter following the 12-month anniversary of closing. |
|
| 2 | Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. |
About
Headquartered in
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the
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.
| CONSOLIDATED BALANCE SHEETS | ||||||
| (Amounts in thousands except per share data) | ||||||
2022 |
2021 |
|||||
| ASSETS | ||||||
| Current Assets | ||||||
| Cash and equivalents | $ |
13,282 |
|
$ |
20,619 |
|
| Accounts receivable, net |
|
64,443 |
|
|
38,491 |
|
| Contract assets |
|
16,321 |
|
|
9,189 |
|
| Notes receivable - officers, employees, affiliates, current portion |
|
1,016 |
|
|
1,260 |
|
| Prepaid and other current assets |
|
7,068 |
|
|
4,850 |
|
| Total current assets |
|
102,130 |
|
|
74,409 |
|
| Non-Current Assets | ||||||
| Property and equipment, net |
|
25,104 |
|
|
20,202 |
|
| Operating lease, right-of-use assets |
|
30,264 |
|
|
- |
|
|
53,210 |
|
|
28,471 |
|
|
| Notes receivable |
|
903 |
|
|
903 |
|
| Notes receivable - officers, employees, affiliates, less current portion |
|
1,417 |
|
|
1,218 |
|
| Other intangible assets, net |
|
27,950 |
|
|
12,286 |
|
| Deferred tax asset, net |
|
13,759 |
|
|
- |
|
| Other assets |
|
1,020 |
|
|
681 |
|
| Total Assets | $ |
255,757 |
|
$ |
138,170 |
|
| LIABILITIES AND EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts payable and accrued liabilities | $ |
40,293 |
|
$ |
17,921 |
|
| Contract liabilities |
|
6,370 |
|
|
4,623 |
|
| Notes payable, current portion |
|
10,168 |
|
|
4,450 |
|
| Deferred rent, current portion |
|
- |
|
|
724 |
|
| Operating lease obligation, less current portion |
|
6,949 |
|
|
- |
|
| Finance lease obligation, current portion |
|
5,297 |
|
|
5,136 |
|
| Total current liabilities |
|
69,077 |
|
|
32,854 |
|
| Non-Current Liabilities | ||||||
| Other non-current obligations |
|
356 |
|
|
- |
|
| Notes payable, less current portion |
|
16,276 |
|
|
8,407 |
|
| Deferred rent, less current portion |
|
- |
|
|
4,179 |
|
| Operating lease obligation, less current portion |
|
28,087 |
|
|
- |
|
| Finance lease obligation, less current portion |
|
14,254 |
|
|
10,020 |
|
| Pension and post-retirement obligation, less current portion |
|
4,848 |
|
|
- |
|
| Deferred tax liability, net |
|
- |
|
|
4,290 |
|
| Common shares subject to repurchase |
|
- |
|
|
7 |
|
| Total liabilities | $ |
132,898 |
|
$ |
59,757 |
|
| Shareholders' Equity | ||||||
| Preferred Stock, |
$ |
- |
|
$ |
- |
|
| Common stock, |
|
159 |
|
|
137 |
|
| Additional paid-in-capital |
|
162,922 |
|
|
120,842 |
|
| Accumulated other comprehensive income |
|
578 |
|
|
- |
|
|
(20,831 |
) |
|
(17,488 |
) |
|
| Stock subscription notes receivable |
|
(173 |
) |
|
(277 |
) |
| Accumulated deficit |
|
(19,796 |
) |
|
(24,801 |
) |
| Total shareholders' equity | $ |
122,859 |
|
$ |
78,413 |
|
| TOTAL LIABILITIES AND EQUITY | $ |
255,757 |
|
$ |
138,170 |
|
| CONSOLIDATED INCOME STATEMENT | ||||||||||||||||
| (Amounts in thousands except per share data) | ||||||||||||||||
| For the Three Months Ended |
For the Year Ended |
|||||||||||||||
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
||
| Gross Contract Revenue | $ |
75,609 |
|
$ |
41,929 |
|
$ |
261,714 |
|
$ |
149,970 |
|
||||
| Contract costs: (exclusive of depreciation and amortization below) | ||||||||||||||||
| Direct payroll costs |
|
26,753 |
|
|
16,527 |
|
|
100,076 |
|
|
59,416 |
|
||||
| Sub-consultants and expenses |
|
9,424 |
|
|
4,149 |
|
|
26,510 |
|
|
15,116 |
|
||||
| Total contract costs |
|
36,177 |
|
|
20,676 |
|
|
126,586 |
|
|
74,532 |
|
||||
| Operating Expenses: | ||||||||||||||||
| Selling, general and administrative |
|
34,993 |
|
|
20,717 |
|
|
117,839 |
|
|
69,029 |
|
||||
| Depreciation and amortization |
|
3,901 |
|
|
1,865 |
|
|
12,251 |
|
|
6,371 |
|
||||
| (Gain) on sale |
|
(39 |
) |
|
(23 |
) |
|
(82 |
) |
|
(122 |
) |
||||
| Total operating expenses |
|
38,855 |
|
|
22,559 |
|
|
130,008 |
|
|
75,278 |
|
||||
| Income from operations |
|
577 |
|
|
(1,306 |
) |
|
5,120 |
|
|
160 |
|
||||
| Other expense |
|
1,297 |
|
|
734 |
|
|
3,384 |
|
|
1,440 |
|
||||
| Income (loss) before tax expense |
|
(720 |
) |
|
(2,040 |
) |
|
1,736 |
|
|
(1,280 |
) |
||||
| Income tax (benefit) expense |
|
(1,190 |
) |
|
(1,441 |
) |
|
(3,269 |
) |
|
(1,579 |
) |
||||
| Net income | $ |
470 |
|
$ |
(599 |
) |
$ |
5,005 |
|
$ |
299 |
|
||||
| Earnings allocated to non-vested shares |
|
67 |
|
|
- |
|
|
783 |
|
|
56 |
|
||||
| Net income attributable to common shareholders | $ |
403 |
|
$ |
(599 |
) |
$ |
4,222 |
|
$ |
243 |
|
||||
| Earnings per share | ||||||||||||||||
| Basic | $ |
0.03 |
|
$ |
(0.07 |
) |
$ |
0.39 |
|
$ |
0.03 |
|
||||
| Diluted | $ |
0.03 |
|
$ |
(0.07 |
) |
$ |
0.37 |
|
$ |
0.03 |
|
||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic |
|
11,538,128 |
|
|
9,073,424 |
|
|
10,887,620 |
|
|
7,525,206 |
|
||||
| Diluted |
|
12,234,109 |
|
|
9,073,424 |
|
|
11,683,758 |
|
|
7,635,615 |
|
||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
| For the Year Ended |
||||||||
|
2022 |
|
|
2021 |
|
|||
| Cash Flows from Operating Activities: | ||||||||
| Net Income | $ |
5,005 |
|
$ |
299 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization - property, plant and equipment |
|
8,363 |
|
|
5,974 |
|
||
| Amortization of intangible assets |
|
3,888 |
|
|
397 |
|
||
| Gain on sale of assets |
|
(82 |
) |
|
(122 |
) |
||
| Bad debt |
|
742 |
|
|
496 |
|
||
| Stock based compensation |
|
15,097 |
|
|
8,217 |
|
||
| Deferred taxes |
|
(18,049 |
) |
|
(2,183 |
) |
||
| Deferred rent |
|
- |
|
|
5 |
|
||
| Accretion of discounts on notes payable |
|
258 |
|
|
- |
|
||
| Changes in operating assets and liabilities, net of acquisition of businesses | ||||||||
| Accounts receivable |
|
(13,779 |
) |
|
(8,802 |
) |
||
| Contract assets |
|
(4,575 |
) |
|
(387 |
) |
||
| Prepaid expenses |
|
(2,021 |
) |
|
(2,251 |
) |
||
| Other assets |
|
(105 |
) |
|
(31 |
) |
||
| Accounts payable and accrued expenses |
|
15,802 |
|
|
3,297 |
|
||
| Contract liabilities |
|
(1,374 |
) |
|
(192 |
) |
||
| Net cash provided by operating activities |
|
9,170 |
|
|
4,717 |
|
||
| Cash Flows from Investing Activities: | ||||||||
| Purchases of property and equipment |
|
(902 |
) |
|
(905 |
) |
||
| Proceeds from sale of assets |
|
35 |
|
|
127 |
|
||
| Amounts advanced under loans to shareholders |
|
(5 |
) |
|
(779 |
) |
||
| Payments received under loans to shareholders |
|
49 |
|
|
36 |
|
||
| Acquisitions of businesses, net of cash acquired |
|
(18,035 |
) |
|
(20,345 |
) |
||
| Collections under stock subscription notes receivable |
|
104 |
|
|
332 |
|
||
| Net cash used in investing activities |
|
(18,754 |
) |
|
(21,534 |
) |
||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs |
|
- |
|
|
47,104 |
|
||
| Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs |
|
15,475 |
|
|
- |
|
||
| Net payments under revolving line of credit |
|
- |
|
|
(3,481 |
) |
||
| Repayments under fixed line of credit |
|
(734 |
) |
|
(722 |
) |
||
| Repayment under notes payable |
|
(4,595 |
) |
|
(1,084 |
) |
||
| Payments on finance leases |
|
(6,027 |
) |
|
(4,663 |
) |
||
| Payment of contingent consideration from acquisitions |
|
- |
|
|
(2 |
) |
||
| Payment of subsequent common stock offering costs |
|
- |
|
|
(75 |
) |
||
| Payments for purchase of treasury stock |
|
(3,343 |
) |
|
(582 |
) |
||
| Proceeds from issuance of common stock |
|
1,471 |
|
|
555 |
|
||
| Net cash provided by financing activities |
|
2,247 |
|
|
37,050 |
|
||
| Net (decrease) increase in cash and cash equivalents |
|
(7,337 |
) |
|
20,233 |
|
||
| Cash and cash equivalents, beginning of period |
|
20,619 |
|
|
386 |
|
||
| Cash and cash equivalents, end of period | $ |
13,282 |
|
$ |
20,619 |
|
||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ |
1,896 |
|
$ |
887 |
|
||
| Cash paid for income taxes | $ |
400 |
|
|
1,921 |
|
||
| Non-cash investing and financing activities: | ||||||||
| Property and equipment acquired under capital lease | $ |
(8,118 |
) |
$ |
(8,877 |
) |
||
| Stock redemption for exercise of stock option |
|
- |
|
$ |
139 |
|
||
| Issuance of notes payable for acquisitions | $ |
(19,089 |
) |
$ |
(10,200 |
) |
||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||
| (amounts in thousands except per share data) | |||||||||||||||||
| Condensed Combined Statement of Operations Reconciliation | For the Three Months Ended |
For the Year Ended |
|||||||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||||
| Gross contract revenue | $ |
75,609 |
|
$ |
41,929 |
|
$ |
261,714 |
|
$ |
149,970 |
|
|||||
| Contract costs (exclusive of depreciation and amortization) |
|
36,177 |
|
|
20,676 |
|
|
126,586 |
|
|
74,532 |
|
|||||
| Operating expense |
|
38,855 |
|
|
22,559 |
|
|
130,008 |
|
|
75,278 |
|
|||||
| Income from operations |
|
577 |
|
|
(1,306 |
) |
|
5,120 |
|
|
160 |
|
|||||
| Other (income) expense |
|
1,297 |
|
|
734 |
|
|
3,384 |
|
|
1,440 |
|
|||||
| Income tax expense (benefit) |
|
(1,190 |
) |
|
(1,441 |
) |
|
(3,269 |
) |
|
(1,579 |
) |
|||||
| Net income | $ |
470 |
|
$ |
(599 |
) |
$ |
5,005 |
|
$ |
299 |
|
|||||
| Net margin |
|
0.6 |
% |
|
-1.4 |
% |
|
1.9 |
% |
|
0.2 |
% |
|||||
| Other financial information1 | |||||||||||||||||
| Net service billing | $ |
66,185 |
|
$ |
37,780 |
|
$ |
235,204 |
|
$ |
134,854 |
|
|||||
| Adjusted EBITDA |
|
9,415 |
|
|
3,534 |
|
|
34,022 |
|
|
16,485 |
|
|||||
| Adjusted EBITA margin, net |
|
14.2 |
% |
|
9.4 |
% |
|
14.5 |
% |
|
12.2 |
% |
|||||
| Gross Revenue to Net Services Billing Reconciliation | For the Three Months Ended |
For the Year Ended |
|||||||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||||
| Gross contract revenue | $ |
75,609 |
|
$ |
41,929 |
|
$ |
261,714 |
|
$ |
149,970 |
|
|||||
| Less: sub-consultants and other direct expenses |
|
9,424 |
|
|
4,149 |
|
|
26,510 |
|
|
15,116 |
|
|||||
| Net services billing | $ |
66,185 |
|
$ |
37,780 |
|
$ |
235,204 |
|
$ |
134,854 |
|
|||||
| Adjusted EBITDA Reconciliation | For the Three Months Ended |
For the Year Ended |
|||||||||||||||
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||||
| Net Income | $ |
470 |
|
$ |
(599 |
) |
$ |
5,005 |
|
$ |
299 |
|
|||||
| + interest expense |
|
1,234 |
|
|
268 |
|
|
2,457 |
|
|
918 |
|
|||||
| + depreciation & amortization |
|
3,901 |
|
|
1,865 |
|
|
12,251 |
|
|
6,371 |
|
|||||
| + tax (benefit) expense |
|
(1,190 |
) |
|
(1,441 |
) |
|
(3,269 |
) |
|
(1,579 |
) |
|||||
| EBITDA | $ |
4,415 |
|
$ |
93 |
|
$ |
16,444 |
|
$ |
6,009 |
|
|||||
| + non-cash stock compensation |
|
3,922 |
|
|
2,876 |
|
|
15,409 |
|
|
8,217 |
|
|||||
| + transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
1,555 |
|
|||||
| + settlements and other non-core expenses |
|
439 |
|
|
- |
|
|
654 |
|
|
- |
|
|||||
| + acquisition expenses |
|
639 |
|
|
565 |
|
|
1,515 |
|
|
704 |
|
|||||
| Adjusted EBITDA | $ |
9,415 |
|
$ |
3,534 |
|
$ |
34,022 |
|
$ |
16,485 |
|
|||||
| Adjusted EBITDA margin, net |
|
14.2 |
% |
|
9.4 |
% |
|
14.5 |
% |
|
12.2 |
% |
|||||
| 1 | Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations. |
|
||||||||||||
GROSS CONTRACT REVENUE COMPOSITION |
||||||||||||
(Amounts in thousands) |
||||||||||||
| (dollars in thousands) | For the Year ended |
|||||||||||
| Consolidated Gross Revenue | 2022 |
% |
2021 |
% |
Change | % Change | ||||||
| Building Infrastructure | 170,431 |
|
105,242 |
|
65,189 |
|
||||||
| Transportation | 44,846 |
|
16,537 |
|
28,309 |
|
||||||
| Power and Utilities | 32,672 |
|
22,525 |
|
10,147 |
|
||||||
| Emerging Markets | 13,765 |
|
5,666 |
|
8,099 |
|
||||||
| Total | 261,714 |
|
149,970 |
|
111,744 |
|
||||||
| For the Year ended |
||||||||||||
| Organic v Acquired Revenue 1 | 2022 |
% GCR | 2021 |
% GCB | Change | % Change | ||||||
| Baseline organic revenue | 193,251 |
|
148,021 |
|
45,230 |
|
||||||
| Acquired revenue | 68,463 |
|
1,949 |
|
66,514 |
n/a |
||||||
| Total | 261,714 |
|
149,970 |
|
111,744 |
|
||||||
| (dollars in thousands) | For the three months ended |
|||||||||||
| Consolidated Gross Revenue | 2022 |
% |
2021 |
% |
Change | % Change | ||||||
| Building Infrastructure | 44,338 |
|
31,559 |
|
12,779 |
|
||||||
| Transportation | 18,382 |
|
3,845 |
|
14,537 |
|
||||||
| Power and Utilities | 8,302 |
|
4,925 |
|
3,377 |
|
||||||
| Emerging Markets | 4,587 |
|
1,600 |
|
2,987 |
|
||||||
| Total | 75,609 |
|
41,929 |
|
33,680 |
|
||||||
| For the three months ended |
||||||||||||
| Organic v Acquired Revenue 1 | 2022 |
% |
2021 |
% |
Change | % Change | ||||||
| Baseline organic revenue | 51,870 |
|
39,980 |
|
11,890 |
|
||||||
| Acquired revenue | 23,739 |
|
1,949 |
|
21,790 |
n/a |
||||||
| Total | 75,609 |
|
41,929 |
|
33,680 |
|
||||||
| 1 | Revenue from acquired companies is reclassified as organic revenue in the first full quarter following the 12-month anniversary of closing. |
|
|
GROSS BACKLOG BY CATEGORY AT |
|
| Category | Percentage |
| Building Infrastructure |
|
| Transportation |
|
| Power and Utilities |
|
| Emerging Markets |
|
| TOTAL |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230309005681/en/
Investor Relations
ir@bowman.com
(703) 787-3403
lclark@finprofiles.com
(310) 622-8223
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