EX-99.1 2 d481797dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

Bowman Announces Record Full Year 2022 Revenue and Adjusted EBITDA

Reston, Va., March 9, 2023 (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 released record financial results for the year ended December 31, 2022.

“During 2022, our first full year as a public company, we exceeded expectations and delivered on our commitment to strategic growth,” said Gary Bowman, Chairman and CEO of Bowman. “We generated record revenue, doubled our adjusted EBITDA, added close to 700 professionals, and made meaningful progress on margin expansion. During the year we closed on eight acquisitions representing over $60 million of annualized revenue as of closing. Demand for infrastructure related design and engineering continues to be strong across our markets, providing us continued optimism about our ability to grow and deliver on our strategic plans for 2023.”

Financial highlights for the three months ended December 31, 2022, compared to December 31, 2021:

 

  •  

Gross revenue of $75.6 million, compared to $41.9 million, an 80% increase

 

  •  

Year-over-year organic gross revenue growth1 of 30%

 

  •  

Net service billing2 of $66.2 million, compared to $37.8 million, a 75% increase

 

  •  

Year-over-year organic net service billing growth of 24%

 

  •  

Net income of $0.5 million, compared to a net loss of ($0.6) million

 

  •  

Adjusted EBITDA2 of $9.4 million, compared to $3.5 million, a 169% increase

 

  •  

Adjusted EBITDA margin, net 2 of 14.2%, compared to 9.4%, a 480 bps increase

 

  •  

Gross backlog2 of $243 million, compared to $167 million, a 46% increase

Financial highlights for the twelve months ended December 31, 2022, compared to December 31, 2021:

 

  •  

Gross revenue of $261.7 million, compared to $150.0 million, a 74% increase

 

  •  

Year-over-year organic gross revenue growth of 31%

 

  •  

Net service revenue1 of $235.2 million, compared to $134.9 million, 74% increase

 

  •  

Year-over-year organic net service billing growth of 26%

 

  •  

Net income of $5.0 million, compared to a net income of $0.3 million

 

  •  

Adjusted EBITDA1 of $34.0 million, compared to $16.5 million, a 106% increase

 

  •  

Adjusted EBITDA margin, net 1 of 14.5%, compared to 12.2%, 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 $280 to $295 million and Adjusted EBITDA in the range of $43 to $49 million. The current outlook for 2023 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. 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:    March 10, 2023
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

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 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 1,700 employees more than 65 locations 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.

 

Contact:   
Investor Relations   
Bruce Labovitz    Larry Clark
ir@bowman.com    lclark@finprofiles.com
(703) 787-3403    (310) 622-8223

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,
2022		     December 31,
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       —    

Goodwill

      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, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding

    $ —       $ —    

Common stock, $0.01 par value; 30,000,000 shares authorized; 15,949,805 shares issued and 13,556,550 outstanding, and 13,690,868 shares issued and 11,489,579 outstanding, respectively

      159       137  

Additional paid-in-capital

      162,922       120,842  

Accumulated other comprehensive income

      578       —    

Treasury stock, at cost; 2,393,255 and 2,201,289, respectively

      (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  
  

 

 

    

 

 

  

BOWMAN CONSULTING GROUP LTD.

CONSOLIDATED INCOME STATEMENT

(Amounts in thousands except per share data)

 

     For the Three Months
Ended December 31,		     For the Year
Ended December 31,		  
     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  

BOWMAN CONSULTING GROUP LTD.

CONSOLIDATED STATEMENT OF CASH FLOWS

 

     For the Year Ended December 31,  
     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  
  

 

 

    

 

 

  

BOWMAN CONSULTING GROUP LTD.

CONSOLIDATED STATEMENT OF CASH FLOWS

 

     For the Year Ended December 31,  
     2022     2021  

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 ) 
  

 

 

    

 

 

  

BOWMAN CONSULTING GROUP LTD.

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 December 31,     For the Year Ended December 31,  
     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 information 1

        

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 December 31,     For the Year Ended December 31,  
     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 EDITDA Reconciliation    For the Three Months Ended December 31,     For the Year Ended December 31,  
     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.

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands)

 

(dollars in thousands)    For the Year ended December 31,  
     2022      %     2021      %     Change      % Change  
Consolidated Gross Revenue                

Building Infrastructure

      170,431        65.1 %      105,242        70.2 %      65,189        61.9 % 

Transportation

      44,846        17.1 %      16,537        11.0 %      28,309        171.2 % 

Power and Utilities

      32,672        12.5 %      22,525        15.0 %      10,147        45.0 % 

Emerging Markets

      13,765        5.3 %      5,666        3.8 %      8,099        142.9 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total

      261,714        100.0 %      149,970        100.0 %      111,744        74.5 % 
     For the Year ended December 31,  
     2022      % GCR     2021      % GCB     Change      % Change  

Organic v Acquired Revenue 1

                

Baseline organic revenue

      193,251        73.8 %      148,021        98.7 %      45,230        30.6 % 

Acquired revenue

      68,463        26.2 %      1,949        1.3 %      66,514        n/a  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total

      261,714        100.0 %      149,970        100.0 %      111,744        74.5 % 
(dollars in thousands)    For the three months ended December 31,  
     2022      %     2021      %     Change      % Change  

Consolidated Gross Revenue

                

Building Infrastructure

      44,338        58.6 %      31,559        75.3 %      12,779        40.5 % 

Transportation

      18,382        24.3 %      3,845        9.2 %      14,537        378.1 % 

Power and Utilities

      8,302        11.0 %      4,925        11.7 %      3,377        68.6 % 

Emerging Markets

      4,587        6.1 %      1,600        3.8 %      2,987        186.7 % 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total

      75,609        100.0 %      41,929        100.0 %      33,680        80.3 % 
     For the three months ended December 31,  
     2022      %     2021      %     Change      % Change  

Organic v Acquired Revenue 1

                

Baseline organic revenue

      51,870        68.6 %      39,980        95.4 %      11,890        29.7 % 

Acquired revenue

      23,739        31.4 %      1,949        4.6 %      21,790        n/a  
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total

      75,609        100.0 %      41,929        100.0 %      33,680        80.3 % 

 

1 

Revenue from acquired companies is reclassified as organic revenue in the first full quarter following the 12-month anniversary of closing.

BOWMAN CONSULTING GROUP LTD.

GROSS BACKLOG BY CATEGORY AT DECEMBER 31, 2022

 

Category

    Percentage  

Building Infrastructure

      51.2 % 

Transportation

      30.6 % 

Power and Utilities

      13.4 % 

Emerging Markets

      4.8 % 
  

 

 

  

TOTAL

      100.0 %