Bowman Announces Record Third Quarter Results; Exceeds Consensus Estimates and Raises Guidance
Bowman Consulting Group Ltd. (BWMN) announced record financial results for Q3 2022, reporting gross revenue of $71.2 million, a 79% increase from Q3 2021. Year-over-year organic gross revenue growth was 23%, with net service billing reaching $64.9 million (up 82%). Net income rose to $3.4 million from $0.4 million, and adjusted EBITDA increased 118% to $9.6 million. The company raised its FY 2022 guidance for net service billing to $230-$234 million and introduced FY 2023 guidance of $270-$290 million.
- Gross revenue increased by 79% year-over-year to $71.2 million.
- Net service billing saw an 82% increase, reaching $64.9 million.
- Net income rose significantly to $3.4 million, up from $0.4 million.
- Adjusted EBITDA grew 118% to $9.6 million, with an increased margin of 14.8%.
- Gross backlog rose by 65% to $230 million.
- FY 2022 guidance for net service billing increased to $230-$234 million.
- None.
“We have once again reported a record quarter that exceeded estimates,” said
Financial Highlights for the three months ended
-
Gross revenue of
$71.2 million $39.7 million 79% increase -
Year-over-year organic gross revenue growth of
23% -
Net service billing1 of
$64.9 million $35.7 million 82% increase -
Year-over-year organic net service billing growth of
25% -
Net income of
$3.4 million $0.4 million -
Adjusted EBITDA1 of
$9.6 million $4.4 million 118% increase -
Adjusted EBITDA margin, net 1 of
14.8% , compared to12.4% , a 240-basis point increase -
Gross backlog1 of
$230 million $139 million 65% increase
Financial Highlights for the nine months ended
-
Gross revenue of
$186.1 million $108.0 million 72% increase -
Year-over-year organic gross revenue growth of
28% -
Net service billing1 of
$169.0 million $97.1 million 74% increase -
Year-over-year organic net service billing growth of
31% -
Net income of
$4.5 million $0.9 million -
Adjusted EBITDA1 of
$24.6 million $12.7 million 94% increase -
Adjusted EBITDA margin, net 1 of
14.6% , compared to13.1% , a 150-basis point increase
Business Highlights during the Third Quarter:
-
Closed on the acquisition of
Project Design Consultants –July 2022 -
Closed on the acquisition of Anchor Engineering –
August 2022
Business Highlights after the Third Quarter:
-
Closed on the acquisition of Spatial Acuity –
November 2022 -
Closed on the acquisition of SEI Engineering –
November 2022
Increasing FY 2022 Guidance and Introducing FY 2023 Guidance
The Company is increasing its full year 2022 outlook for Net Service Billing to be in the range of
Q3 2022 Earnings Webcast
Bowman will host an earnings webcast to discuss the results of the quarter as follows:
Date: |
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Time: |
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Hosts: |
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Where: |
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1 |
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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.
| CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) | ||||||||||||||||
| (Amounts in thousands except per share data) | ||||||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||||
| Gross Contract Revenue | $ |
71,246 |
|
$ |
39,715 |
|
$ |
186,105 |
|
$ |
108,041 |
|
||||
| Contract costs: (exclusive of depreciation and amortization below) | ||||||||||||||||
Direct payroll costs |
|
27,641 |
|
|
15,531 |
|
|
73,353 |
|
|
42,873 |
|
||||
Sub-consultants and expenses |
|
6,343 |
|
|
3,967 |
|
|
17,086 |
|
|
10,967 |
|
||||
Total contract costs |
|
33,984 |
|
|
19,498 |
|
|
90,439 |
|
|
53,840 |
|
||||
| Operating Expenses: | ||||||||||||||||
Selling, general and administrative |
|
31,916 |
|
|
18,373 |
|
|
82,819 |
|
|
48,328 |
|
||||
Depreciation and amortization |
|
3,138 |
|
|
1,598 |
|
|
8,350 |
|
|
4,506 |
|
||||
Gain on sale |
|
(11 |
) |
|
(46 |
) |
|
(44 |
) |
|
(99 |
) |
||||
Total operating expenses |
|
35,043 |
|
|
19,925 |
|
|
91,125 |
|
|
52,735 |
|
||||
| Income from operations |
|
2,219 |
|
|
292 |
|
|
4,541 |
|
|
1,466 |
|
||||
| Other expense |
|
595 |
|
|
314 |
|
|
2,086 |
|
|
706 |
|
||||
| Income (loss) before tax expense |
|
1,624 |
|
|
(22 |
) |
|
2,455 |
|
|
760 |
|
||||
| Income tax (benefit) expense |
|
(1,773 |
) |
|
(379 |
) |
|
(2,079 |
) |
|
(139 |
) |
||||
| Net income | $ |
3,397 |
|
$ |
357 |
|
$ |
4,534 |
|
$ |
899 |
|
||||
| Earnings allocated to non-vested shares |
|
504 |
|
|
71 |
|
|
731 |
|
|
165 |
|
||||
| Net income attributable to common shareholders | $ |
2,893 |
|
$ |
286 |
|
$ |
3,803 |
|
$ |
734 |
|
||||
Earnings per share |
||||||||||||||||
Basic |
$ |
0.26 |
|
$ |
0.03 |
|
$ |
0.36 |
|
$ |
0.10 |
|
||||
Diluted |
$ |
0.25 |
|
$ |
0.03 |
|
$ |
0.34 |
|
$ |
0.10 |
|
||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
|
11,304,946 |
|
|
8,920,505 |
|
|
10,669,221 |
|
|
7,003,462 |
|
||||
Diluted |
|
11,768,411 |
|
|
8,935,274 |
|
|
11,129,478 |
|
|
7,008,440 |
|
||||
|
||||||
2022 |
2021 |
|||||
| (Unaudited) | ||||||
| ASSETS | ||||||
Current Assets |
||||||
Cash and equivalents |
$ |
23,844 |
|
$ |
20,619 |
|
Accounts receivable, net |
|
61,550 |
|
|
38,491 |
|
Contract assets |
|
11,772 |
|
|
9,189 |
|
Notes receivable - officers, employees, affiliates, current portion |
|
1,162 |
|
|
1,260 |
|
Prepaid and other current assets |
|
9,825 |
|
|
4,850 |
|
Total current assets |
|
108,153 |
|
|
74,409 |
|
Non-Current Assets |
||||||
Property and equipment, net |
|
22,683 |
|
|
20,202 |
|
|
|
55,264 |
|
|
28,471 |
|
Notes receivable |
|
903 |
|
|
903 |
|
Notes receivable - officers, employees, affiliates, less current portion |
|
1,183 |
|
|
1,218 |
|
Other intangible assets, net |
|
15,734 |
|
|
12,286 |
|
Other assets |
|
809 |
|
|
681 |
|
| Total Assets | $ |
204,729 |
|
$ |
138,170 |
|
| LIABILITIES AND EQUITY | ||||||
Current Liabilities |
||||||
Accounts payable and accrued liabilities |
$ |
28,541 |
|
$ |
17,921 |
|
Contract liabilities |
|
7,689 |
|
|
4,623 |
|
Notes payable, current portion |
|
9,843 |
|
|
4,450 |
|
Deferred rent, current portion |
|
729 |
|
|
724 |
|
Capital lease obligation, current portion |
|
7,473 |
|
|
5,136 |
|
Total current liabilities |
|
54,275 |
|
|
32,854 |
|
Non-Current Liabilities |
||||||
Other non-current obligations |
|
522 |
|
|
- |
|
Notes payable, less current portion |
|
15,807 |
|
|
8,407 |
|
Deferred rent, less current portion |
|
3,851 |
|
|
4,179 |
|
Capital lease obligation, less current portion |
|
10,021 |
|
|
10,020 |
|
Deferred tax liability, net |
|
3,456 |
|
|
4,290 |
|
Common shares subject to repurchase |
|
- |
|
|
7 |
|
Total liabilities |
$ |
87,932 |
|
$ |
59,757 |
|
| Shareholders' Equity | ||||||
Preferred Stock, |
$ |
- |
|
$ |
- |
|
Common stock, |
|
157 |
|
|
137 |
|
Additional paid-in-capital |
|
156,966 |
|
|
120,842 |
|
|
|
(19,857 |
) |
|
(17,488 |
) |
Stock subscription notes receivable |
|
(202 |
) |
|
(277 |
) |
Accumulated deficit |
|
(20,267 |
) |
|
(24,801 |
) |
Total shareholders' equity |
$ |
116,797 |
|
$ |
78,413 |
|
| TOTAL LIABILITIES AND EQUITY | $ |
204,729 |
|
$ |
138,170 |
|
|
||||||||
| For the Nine Months Ended |
||||||||
2022 |
2021 |
|||||||
| Cash Flows from Operating Activities: | ||||||||
Net Income |
$ |
4,534 |
|
$ |
899 |
|
||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation and amortization - property, plant and equipment |
|
6,366 |
|
|
4,283 |
|
||
Amortization of intangible assets |
|
1,984 |
|
|
223 |
|
||
Gain on sale of assets |
|
(44 |
) |
|
(99 |
) |
||
Bad debt |
|
527 |
|
|
266 |
|
||
Stock based compensation |
|
11,487 |
|
|
5,341 |
|
||
Deferred taxes |
|
(833 |
) |
|
(1,340 |
) |
||
Deferred rent |
|
(323 |
) |
|
(6 |
) |
||
Changes in operating assets and liabilities, net of acquisition of businesses |
||||||||
Accounts Receivable |
|
(12,356 |
) |
|
(10,015 |
) |
||
Contract Assets |
|
(104 |
) |
|
(961 |
) |
||
Prepaid expenses and other assets |
|
(4,376 |
) |
|
(1,462 |
) |
||
Accounts payable and accrued expenses |
|
5,122 |
|
|
6,132 |
|
||
Contract Liabilities |
|
186 |
|
|
(31 |
) |
||
Net cash provided by operating activities |
|
12,170 |
|
|
3,230 |
|
||
| Cash Flows from Investing Activities: | ||||||||
Purchases of property and equipment |
|
(901 |
) |
|
(609 |
) |
||
Fixed assets converted to lease financing |
|
196 |
|
|
- |
|
||
Proceeds from sale of assets and disposal of leases |
|
54 |
|
|
100 |
|
||
Amounts advanced under loans to shareholders |
|
- |
|
|
(473 |
) |
||
Payments received under loans to shareholders |
|
151 |
|
|
88 |
|
||
Acquisitions of businesses, net of cash acquired |
|
(14,806 |
) |
|
(3,000 |
) |
||
Collections under stock subscription notes receivable |
|
75 |
|
|
170 |
|
||
Net cash used in investing activities |
|
(15,231 |
) |
|
(3,724 |
) |
||
| Cash Flows from Financing Activities: | ||||||||
Proceeds from initial public offering, net of underwriting discounts and
|
|
- |
|
|
47,104 |
|
||
Proceeds from common stock offering, net of underwriting discounts and
|
|
15,475 |
|
|
- |
|
||
Net borrowings under revolving line of credit |
|
- |
|
|
(3,481 |
) |
||
Repayments under fixed line of credit |
|
(547 |
) |
|
(540 |
) |
||
Repayment under notes payable |
|
(2,720 |
) |
|
(735 |
) |
||
Payments on capital leases |
|
(4,575 |
) |
|
(3,208 |
) |
||
Payment of contingent consideration from acquisitions |
|
- |
|
|
(2 |
) |
||
Payments for purchase of treasury stock |
|
(2,368 |
) |
|
(582 |
) |
||
Proceeds from issuance of common stock |
|
1,021 |
|
|
297 |
|
||
Net cash provided by financing activities |
|
6,286 |
|
|
38,853 |
|
||
Net increase in cash and cash equivalents |
|
3,225 |
|
|
38,359 |
|
||
Cash and cash equivalents, beginning of period |
|
20,619 |
|
|
386 |
|
||
Cash and cash equivalents, end of period |
$ |
23,844 |
|
$ |
38,745 |
|
||
|
||||||||
| For the Nine Months Ended |
||||||||
2022 |
2021 |
|||||||
| Supplemental disclosures of cash flow information: | ||||||||
Cash paid for interest |
$ |
1,131 |
|
$ |
647 |
|
||
Cash paid for income taxes |
$ |
383 |
|
|
1,040 |
|
||
| Non-cash investing and financing activities: | ||||||||
Property and equipment acquired under capital lease |
$ |
(6,623 |
) |
$ |
(5,704 |
) |
||
Stock redemption for exercise of stock option |
|
- |
|
$ |
139 |
|
||
Issuance of notes payable for acquisitions |
$ |
(16,059 |
) |
$ |
(3,450 |
) |
||
Condensed Combined Statement of Operations Reconciliation |
||||||||||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|||||||||||||
| Gross contract revenue | $ |
71,246 |
|
$ |
39,715 |
|
$ |
186,105 |
|
$ |
108,041 |
|
||||||||
| Contract costs (exclusive of depreciation and amortization) |
|
33,984 |
|
|
19,498 |
|
|
90,439 |
|
|
53,840 |
|
||||||||
| Operating expense |
|
35,043 |
|
|
19,925 |
|
|
91,125 |
|
|
52,735 |
|
||||||||
| Income from operations |
|
2,219 |
|
|
292 |
|
|
4,541 |
|
|
1,466 |
|
||||||||
| Other (income) expense |
|
595 |
|
|
314 |
|
|
2,086 |
|
|
706 |
|
||||||||
| Income tax expense (benefit) |
|
(1,773 |
) |
|
(379 |
) |
|
(2,079 |
) |
|
(139 |
) |
||||||||
| Net income | $ |
3,397 |
|
$ |
357 |
|
$ |
4,534 |
|
$ |
899 |
|
||||||||
| Net margin |
|
4.8 |
% |
|
0.9 |
% |
|
2.4 |
% |
|
0.8 |
% |
||||||||
| Other financial information 1 | ||||||||||||||||||||
| Net service billing | $ |
64,903 |
|
$ |
35,748 |
|
$ |
169,019 |
|
$ |
97,074 |
|
||||||||
| Adjusted EBITDA |
|
9,624 |
|
|
4,426 |
|
|
24,606 |
|
|
12,697 |
|
||||||||
| Adjusted EBITA margin, net |
|
14.8 |
% |
|
12.4 |
% |
|
14.6 |
% |
|
13.1 |
% |
||||||||
Gross Revenue to Net Service Billing Reconciliation |
|||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
||||||||||||
2022 |
2021 |
2022 |
2021 |
||||||||||
| Gross contract revenue | $ |
71,246 |
$ |
39,715 |
$ |
186,105 |
$ |
108,041 |
|||||
| Less: sub-consultants and other direct expenses |
|
6,343 |
|
3,967 |
|
17,086 |
|
10,967 |
|||||
| Net services billing | $ |
64,903 |
$ |
35,748 |
$ |
169,019 |
$ |
97,074 |
|||||
Adjusted EBITDA Reconciliation |
||||||||||||||||||||
| For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||||||
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|||||||||||||
| Net Income | $ |
3,397 |
|
$ |
357 |
|
$ |
4,534 |
|
$ |
899 |
|
||||||||
+ interest expense |
|
538 |
|
|
216 |
|
|
1,223 |
|
|
650 |
|
||||||||
+ depreciation & amortization |
|
3,138 |
|
|
1,598 |
|
|
8,350 |
|
|
4,506 |
|
||||||||
+ tax expense |
|
(1,773 |
) |
|
(379 |
) |
|
(2,079 |
) |
|
(139 |
) |
||||||||
| EBITDA | $ |
5,300 |
|
$ |
1,792 |
|
$ |
12,028 |
|
$ |
5,916 |
|
||||||||
+ non-cash stock compensation |
|
4,214 |
|
|
2,634 |
|
|
11,487 |
|
|
5,341 |
|
||||||||
+ transaction related expenses |
|
- |
|
|
- |
|
|
- |
|
|
1,440 |
|
||||||||
+ settlements and other non-core expenses |
|
- |
|
|
- |
|
|
215 |
|
|
- |
|
||||||||
+ acquisition expenses |
|
110 |
|
|
- |
|
|
876 |
|
|
- |
|
||||||||
| Adjusted EBITDA | $ |
9,624 |
|
$ |
4,426 |
|
$ |
24,606 |
|
$ |
12,697 |
|
||||||||
| Adjusted EBITDA margin, net |
|
14.8 |
% |
|
12.4 |
% |
|
14.6 |
% |
|
13.1 |
% |
||||||||
|
||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||
| Consolidated Gross Contract Revenue | 2022 |
|
%GCR |
|
2021 |
|
%GCR |
|
Change |
|
% Change |
|||||||||
| Building Infrastructure | $ |
44,765 |
62.8 |
% |
$ |
28,303 |
71.3 |
% |
$ |
16,462 |
58.2 |
% |
||||||||
| Transportation |
|
13,218 |
18.6 |
% |
|
4,033 |
10.2 |
% |
|
9,185 |
227.7 |
% |
||||||||
| Power & Utilities |
|
8,809 |
12.4 |
% |
|
6,295 |
15.9 |
% |
|
2,514 |
39.9 |
% |
||||||||
| Other emerging markets 1 |
|
4,454 |
6.2 |
% |
|
1,084 |
2.6 |
% |
|
3,370 |
310.8 |
% |
||||||||
| Total: | $ |
71,246 |
100.0 |
% |
$ |
39,715 |
100.0 |
% |
$ |
31,531 |
79.4 |
% |
||||||||
| Organic | $ |
47,827 |
67.1 |
% |
$ |
38,853 |
97.8 |
% |
$ |
8,974 |
23.1 |
% |
||||||||
| Acquired 2 |
|
23,419 |
32.9 |
% |
|
862 |
2.2 |
% |
|
22,557 |
n/a |
|||||||||
| Total: | $ |
71,246 |
100.0 |
% |
$ |
39,715 |
100.0 |
% |
$ |
31,531 |
79.4 |
% |
||||||||
1 |
Represents renewable energy, 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. | ||||||||||||||
| For the Nine Months Ended |
||||||||||||||||||
| Consolidated Gross Contract Revenue | 2022 |
|
%GCR |
|
|
2021 |
|
%GCR |
|
Change |
|
% Change |
||||||
| Building Infrastructure | $ |
126,093 |
67.8 |
% |
$ |
74,511 |
69.0 |
% |
$ |
51,582 |
69.2 |
% |
||||||
| Transportation |
|
26,464 |
14.2 |
% |
|
12,344 |
11.4 |
% |
|
14,120 |
114.4 |
% |
||||||
| Power & Utilities |
|
24,370 |
13.1 |
% |
|
17,524 |
16.2 |
% |
|
6,846 |
39.1 |
% |
||||||
| Other emerging markets 1 |
|
9,178 |
4.9 |
% |
|
3,662 |
3.4 |
% |
|
5,516 |
150.6 |
% |
||||||
| Total: | $ |
186,105 |
100.0 |
% |
$ |
108,041 |
100.0 |
% |
$ |
78,064 |
72.3 |
% |
||||||
| Organic and Acquired Gross Contract Revenue | 2022 |
%GCR |
2021 |
%GCR |
Change |
% Change |
||||||||||||
| Organic | $ |
137,086 |
73.7 |
% |
$ |
107,179 |
99.2 |
% |
$ |
29,907 |
27.9 |
% |
||||||
| Acquired 2 |
|
49,019 |
26.3 |
% |
|
862 |
0.8 |
% |
|
48,157 |
n/a |
|||||||
| Total: | $ |
186,105 |
100.0 |
% |
$ |
108,041 |
100.0 |
% |
$ |
78,064 |
72.3 |
% |
||||||
1 |
Represents renewable energy, 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. | ||||||
|
|||
| (Amounts in thousands) | Gross Backlog | ||
| Building Infrastructure |
|
116,531 |
|
| Transportation |
|
76,228 |
|
| Power & Utilities |
|
30,216 |
|
| Other Emerging Markets |
|
7,388 |
|
$ |
230,363 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005937/en/
Investor Relations
ir@bowman.com
(703) 787-3403
mmcgrath@finprofiles.com
(310) 622-8248
Source:
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