8-K
Bowman Consulting Group Ltd. (BWMN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 6, 2024
Bowman Consulting Group Ltd.
(Exact name of registrant as specified in its charter)
| Delaware | 001-40371 | 54-1762351 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
12355 Sunrise Valley Drive, Suite 520
Reston, Virginia 20191
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code (703) 464-1000
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading<br>Symbol(s) | Name of Each Exchange<br> <br>on Which Registered |
|---|---|---|
| Common stock, par value $0.01 per share | BWMN | Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On May 6, 2024, Bowman Consulting Group Ltd. (“Bowman” or the “Company) issued a press release announcing its financial results for the first quarter ended March 31, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Report.
The information in this Report under this item, including the exhibit, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section. Furthermore, the information in this Report, including the exhibits, shall not be deemed to be incorporated by reference into the Company’s filings under the Securities Act of 1933, as amended.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit<br> <br>No. | Description |
|---|---|
| 99.1 | Bowman Consulting Group Ltd. press release dated May 6, 2024. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BOWMAN CONSULTING GROUP LTD. | ||
|---|---|---|
| Date: May 7, 2024 | By: | /s/ Bruce Labovitz |
| Bruce Labovitz | ||
| Chief Financial Officer |
EX-99.1
Exhibit 99.1
Bowman Announces Financial Results for Three Months Ended March 31, 2024
Reston, Va., May 6, 2024 (BUSINESS WIRE) – 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 three months ended March 31, 2024.
“The first quarter delivered the revenue rebound we were expecting,” said Gary Bowman, Chairman and CEO of Bowman. “Net service billing increased consecutively each month during the quarter in line with our expectations. Demand for engineering services remains strong and we generated healthy new orders during the quarter, especially in transportation which showed a meaningful increase as a percentage of total backlog. With the bulk of our organic growth anticipated to occur during the balance of 2024, we are confident we have sufficient revenue in backlog and a right-sized organizational infrastructure to deliver expanding margins as we realize the increasing benefits of scale throughout the year. We are pleased to increase our net service billing and adjusted EBITDA guidance once again for 2024.”
“In early April we closed on an equity offering that included approximately $51 million of gross proceeds to the company,” continued Bowman. “Then, last week we closed on a new $100 million revolving credit facility with Bank of America and TD Bank and separately on an $11 million cash-out refinancing of recently acquired Surdex aviation assets. As a result of these efforts, we believe we are sufficiently capitalized to continue to grow and execute on our current high-frequency acquisition strategy.”
Financial Highlights for the Three Months Ended March 31, 2024, Compared to March 31, 2023:
| • | Gross contract revenue of $94.9 million, compared to $76.1 million, a 25% increase<br> |
|---|---|
| • | Year-over-year organic gross contract revenue growth^1^ of 1%<br> |
| --- | --- |
| • | Net service billing^2^ of $85.7 million, compared to<br>$67.6 million, a 27% increase |
| --- | --- |
| • | Year-over-year organic net service billing growth of 3% |
| --- | --- |
| • | Net loss of $1.6 million^3^, compared to net income of<br>$0.5 million |
| --- | --- |
| • | Adjusted EBITDA^2^ of $12.1 million, compared to<br>$9.7 million, a 25% increase |
| --- | --- |
| • | Adjusted EBITDA margin, net^2^of 14.2% compared to 14.3%, a<br>10 bps decrease |
| --- | --- |
| • | Gross backlog^2^ of $330 million, compared to<br>$252 million, a 31% increase |
| --- | --- |
Subsequent Events of Note:
| • | On April 1, 2024, the Company closed on a $51 million equity offering |
|---|---|
| • | On April 4, 2024, the Company closed on the acquisition of Surdex Corporation |
| --- | --- |
| • | On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers<br> |
| --- | --- |
| • | On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit<br>facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America |
| --- | --- |
| • | On May 3, 2024, the Company closed on a new $11 million<br>cash-out refinancing of its Surdex aviation assets |
| --- | --- |
Non-GAAP Adjusted Earnings per Share:
In connection with the release of financial results the Company reported the non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”) as follows:
For the three months ended March 31, 2024, compared toMarch 31, 2023:
| • | Basic Adjusted EPS was $0.22 compared to $0.28 |
|---|---|
| • | Diluted Adjusted EPS was $0.20 compared to $0.26 |
| --- | --- |
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.
Updating FY 2024 Guidance
The Company is adjusting its full year 2024 outlook for net service billing^2^ to be in the range of $382 to $397 million and Adjusted EBITDA^2^ in the range of $63 to $69 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.
Q1 2024 Earnings Webcast
| Bowman will host an earnings webcast to discuss the results of the quarter as follows: | |
|---|---|
| Date: | May 7, 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^ | To the extent applicable, includes reclassification of acquisitions closed in same period of the prior yearto organic revenue in the prior period. |
| --- | --- |
| ^2^ | Non-GAAP financial metrics the Company believes offer valuableperspective on results of operations. See Non-GAAP tables below for reconciliations. |
| --- | --- |
| ^3^ | Includes an additional $1.3 million accrual for penalties and interest (P&I) in connection with theCompany’s Section 174-related uncertain tax provision (UTP). Accruals for P&I are subject to reversal prior to payment if the Company elects to unwinds its UTP. |
| --- | --- |
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 2,200 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.
Investor Relations Contacts:
| Bruce Labovitz | Betsy Patterson |
|---|---|
| ir@bowman.com | ir@bowman.com |
| (703) 464-1029 | (310) 622-8227 |
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. PrivateSecurities 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 plansand 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 aboutfuture 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 aresubject 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 importantfactors 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 clientsthat 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 inthis 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-lookingstatements 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 thansimilarly 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 beconsidered 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 financialperformance 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 BALANCE SHEETS
(Amounts in thousands except per share data)
| December 31,2023 | |||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current Assets | |||||
| Cash and equivalents | 11,673 | $ | 20,687 | ||
| Accounts receivable, net | 95,975 | 87,565 | |||
| Contract assets | 36,673 | 33,520 | |||
| Notes receivable - officers, employees, affiliates, current portion | 1,181 | 1,199 | |||
| Prepaid and other current assets | 17,365 | 11,806 | |||
| Total current assets | 162,867 | 154,777 | |||
| Non-Current Assets | |||||
| Property and equipment, net | 28,122 | 27,601 | |||
| Operating lease,<br>right-of-use assets | 40,236 | 40,743 | |||
| Goodwill | 102,538 | 96,393 | |||
| Notes receivable | 903 | 903 | |||
| Notes receivable - officers, employees, affiliates, less current portion | 1,116 | 1,119 | |||
| Other intangible assets, net | 45,525 | 46,294 | |||
| Deferred tax asset, net | 37,981 | 33,780 | |||
| Other assets | 1,250 | 1,175 | |||
| Total Assets | 420,538 | **** | $ | 402,785 | **** |
| LIABILITIES AND EQUITY | |||||
| Current Liabilities | |||||
| Revolving credit facility | 47,254 | 45,290 | |||
| Accounts payable and accrued liabilities, current portion | 49,015 | 44,394 | |||
| Contract liabilities | 7,955 | 7,481 | |||
| Notes payable, current portion | 13,672 | 13,989 | |||
| Operating lease obligation, less current portion | 9,567 | 9,016 | |||
| Finance lease obligation, current portion | 7,271 | 6,586 | |||
| Total current liabilities | 134,734 | 126,756 | |||
| Non-Current Liabilities | |||||
| Other non-current obligations | 50,095 | 42,288 | |||
| Notes payable, less current portion | 12,177 | 13,738 | |||
| Operating lease obligation, less current portion | 36,659 | 37,660 | |||
| Finance lease obligation, less current portion | 14,987 | 14,408 | |||
| Pension and post-retirement obligation, less current portion | 4,630 | 4,654 | |||
| Total liabilities | 253,282 | **** | $ | 239,504 | **** |
| Shareholders’ Equity | |||||
| Preferred Stock, 0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as<br>of March 31, 2024 and December 31, 2023 | — | — | |||
| Common stock, 0.01 par value; 30,000,000 shares authorized as of March 31, 2024 and<br>December 31, 2023; 18,191,818 shares issued and 15,428,519 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of March 31, 2024 and December 31, 2023, respectively | 182 | 177 | |||
| Additional<br>paid-in-capital | 226,681 | 215,420 | |||
| Accumulated other comprehensive income | 579 | 590 | |||
| Treasury stock, at cost; 2,763,299 and 2,600,217, respectively | (32,142 | ) | (26,410 | ) | |
| Stock subscription notes receivable | (66 | ) | (76 | ) | |
| Accumulated deficit | (27,978 | ) | (26,420 | ) | |
| Total shareholders’ equity | 167,256 | **** | $ | 163,281 | **** |
| TOTAL LIABILITIES AND EQUITY | 420,538 | **** | $ | 402,785 | **** |
All values are in US Dollars.
BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Amounts in thousands except per share data)
( Unaudited )
| For the Three MonthsEnded March 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Gross Contract Revenue | $ | 94,907 | $ | 76,100 | ||
| Contract costs: (exclusive of depreciation and amortization below) | ||||||
| Direct payroll costs | 37,687 | 28,835 | ||||
| Sub-consultants and expenses | 9,218 | 8,538 | ||||
| Total contract costs | 46,905 | 37,373 | ||||
| Operating Expenses: | ||||||
| Selling, general and administrative | 44,713 | 33,636 | ||||
| Depreciation and amortization | 5,995 | 3,565 | ||||
| Gain on sale | (96 | ) | (11 | ) | ||
| Total operating expenses | 50,612 | 37,190 | ||||
| (Loss) Income from operations | (2,610 | ) | 1,537 | |||
| Other expense | 2,401 | 1,213 | ||||
| (Loss) Income before tax expense | (5,011 | ) | 324 | |||
| Income tax (benefit) | (3,453 | ) | (213 | ) | ||
| Net (loss) income | $ | (1,558 | ) | $ | 537 | **** |
| Earnings allocated to non-vested shares | — | 69 | ||||
| Net (loss) income attributable to common shareholders | $ | (1,558 | ) | $ | 468 | |
| (Loss) Earnings per share | ||||||
| Basic | $ | (0.11 | ) | $ | 0.04 | |
| Diluted | $ | (0.11 | ) | $ | 0.04 | |
| Weighted average shares outstanding: | ||||||
| Basic | 13,827,728 | 11,800,308 | ||||
| Diluted | 13,827,728 | 12,669,581 |
BOWMAN CONSULTING GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
( Unaudited )
| For the Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Cash Flows from Operating Activities: | ||||||
| Net (Loss) Income | $ | (1,558 | ) | $ | 537 | |
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Depreciation and amortization—property, plant and equipment | 2,656 | 2,196 | ||||
| Amortization of intangible assets | 3,339 | 1,369 | ||||
| Gain on sale of assets | (96 | ) | (11 | ) | ||
| Credit losses | 402 | 222 | ||||
| Stock based compensation | 7,829 | 4,363 | ||||
| Accretion of discounts on notes payable | 117 | 140 | ||||
| Deferred taxes | (4,201 | ) | (3,669 | ) | ||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable | (7,946 | ) | (2,943 | ) | ||
| Contract assets | (2,151 | ) | (3,610 | ) | ||
| Prepaid expenses and other assets | (5,523 | ) | (533 | ) | ||
| Accounts payable and accrued expenses | 10,614 | 7,748 | ||||
| Contract liabilities | (963 | ) | 469 | |||
| Net cash provided by operating activities | 2,519 | 6,278 | ||||
| Cash Flows from Investing Activities: | ||||||
| Purchases of property and equipment | (262 | ) | (536 | ) | ||
| Fixed assets converted to lease financing | 424 | — | ||||
| Proceeds from sale of assets and disposal of leases | 96 | 11 | ||||
| Payments received under loans to shareholders | 20 | 105 | ||||
| Acquisitions of businesses, net of cash acquired | (3,027 | ) | — | |||
| Collections under stock subscription notes receivable | 10 | 22 | ||||
| Net cash used in investing activities | (2,739 | ) | (398 | ) | ||
| Cash Flows from Financing Activities: | ||||||
| Borrowings under revolving credit facility | 1,964 | — | ||||
| Repayments under fixed line of credit | (49 | ) | (185 | ) | ||
| Repayment under notes payable | (3,734 | ) | (2,685 | ) | ||
| Payments on finance leases | (1,716 | ) | (1,687 | ) | ||
| Payments for purchase of treasury stock | (5,732 | ) | (667 | ) | ||
| Proceeds from issuance of common stock | 473 | 390 | ||||
| Net cash used in financing activities | (8,794 | ) | (4,834 | ) | ||
| Net (decrease) increase in cash and cash equivalents | (9,014 | ) | 1,046 | |||
| Cash and cash equivalents, beginning of period | 20,687 | 13,282 | ||||
| Cash and cash equivalents, end of period | $ | 11,673 | $ | 14,328 | ||
| Supplemental disclosures of cash flow information: | ||||||
| Cash paid for interest | $ | 1,962 | $ | 757 | ||
| Cash paid for income taxes | $ | 11 | $ | — | ||
| Non-cash investing and financingactivities | ||||||
| Property and equipment acquired under finance lease | $ | (3,002 | ) | $ | (2,964 | ) |
| Note payable converted to common shares | $ | (672 | ) | $ | — | |
| Issuance of notes payable for acquisitions | $ | (2,461 | ) | $ | — |
BOWMAN CONSULTING GROUP LTD.
RECONCILIATION OF EPS TO ADJUSTED EPS
(Amounts in thousands except per share data)
| For the Three Months EndedMarch 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Net (loss) income (GAAP) | $ | (1,558 | ) | $ | 537 | **** |
| + tax (benefit) (GAAP) | (3,453 | ) | (213 | ) | ||
| (Loss) Income before tax expense (GAAP) | $ | (5,011 | ) | $ | 324 | **** |
| + acquisition related expenses | 1,350 | 849 | ||||
| + amortization of intangibles | 3,339 | 1,369 | ||||
| + non-cash stock comp related to pre-IPO | 1,557 | 1,722 | ||||
| + other non-core expenses | 399 | — | ||||
| Adjusted income before tax expense | $ | 1,634 | **** | $ | 4,264 | **** |
| Adjusted income tax (benefit) expense | (1,660 | ) | 496 | |||
| Adjusted net income | $ | 3,294 | **** | $ | 3,768 | **** |
| Adjusted earnings allocated to non-vested shares | 310 | 488 | ||||
| Adjusted net income attributable to common shareholders | $ | 2,984 | $ | 3,280 | ||
| (Loss) Earnings per share (GAAP) | ||||||
| Basic | $ | (0.11 | ) | $ | 0.04 | |
| Diluted | $ | (0.11 | ) | $ | 0.04 | |
| Adjusted earnings per share (Non-GAAP) | ||||||
| Basic | $ | 0.22 | $ | 0.28 | ||
| Diluted | $ | 0.20 | $ | 0.26 | ||
| Weighted average shares outstanding | ||||||
| Basic | 13,827,728 | 11,800,308 | ||||
| Diluted | 14,561,032 | 12,669,581 | ||||
| Basic Adjusted Earnings Per Share Summary - Non-GAAP | For the Three Months EndedMarch 31, | |||||
| 2024 | 2023 | |||||
| (Loss) Earnings per share (GAAP) | $ | (0.11 | ) | $ | 0.04 | **** |
| Pre-tax basic per share adjustments | $ | 0.23 | $ | 0.32 | ||
| Adjusted earnings per share before tax expense | $ | 0.12 | $ | 0.36 | ||
| Tax (benefit) expense per share adjustment | $ | (0.12 | ) | $ | 0.04 | |
| Adjusted earnings per share - adjusted net income | $ | 0.24 | $ | 0.32 | ||
| Adjusted earnings per share allocated to non-vested<br>shares | $ | 0.02 | $ | 0.04 | ||
| Adjusted earnings per share attributable to common shareholders | $ | 0.22 | $ | 0.28 | ||
| Diluted Adjusted Earnings Per Share Summary - Non-GAAP | For the Three Months EndedMarch 31, | |||||
| 2024 | 2023 | |||||
| (Loss) Earnings per share (GAAP) | $ | (0.11 | ) | $ | 0.04 | **** |
| Pre-tax diluted per share adjustments | $ | 0.22 | $ | 0.30 | ||
| Adjusted earnings per share before tax expense | $ | 0.11 | $ | 0.34 | ||
| Tax (benefit) expense per share adjustment | $ | (0.11 | ) | $ | 0.03 | |
| Adjusted earnings per share - adjusted net income | $ | 0.22 | $ | 0.31 | ||
| Adjusted earnings per share allocated to non-vested<br>shares | $ | 0.02 | $ | 0.05 | ||
| Adjusted earnings per share attributable to common shareholders | $ | 0.20 | $ | 0.26 |
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 EndedMarch 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Gross contract revenue | $ | 94,907 | $ | 76,100 | ||
| Contract costs (exclusive of depreciation and amortization) | 46,905 | 37,373 | ||||
| Operating expense | 50,612 | 37,190 | ||||
| (Loss) Income from operations | (2,610 | ) | 1,537 | |||
| Other expense | 2,401 | 1,213 | ||||
| Income tax (benefit) | (3,453 | ) | (213 | ) | ||
| Net (loss) income | $ | (1,558 | ) | $ | 537 | |
| Net margin | (1.6 | )% | 0.7 | % | ||
| Other financial information ^1^ | ||||||
| Net service billing | $ | 85,689 | $ | 67,562 | ||
| Adjusted EBITDA | 12,128 | 9,673 | ||||
| Adjusted EBITDA margin, net | 14.2 | % | 14.3 | % | ||
| Gross Contract Revenue to Net Service Billing Reconciliation | For the Three Months EndedMarch 31, | |||||
| 2024 | 2023 | |||||
| Gross contract revenue | $ | 94,907 | $ | 76,100 | ||
| Less: sub-consultants and other direct expenses | 9,218 | 8,538 | ||||
| Net service billing | $ | 85,689 | $ | 67,562 | ||
| Adjusted EBITDA Reconciliation | For the Three Months EndedMarch 31, | |||||
| 2024 | 2023 | |||||
| Net Service Billing | $ | 85,689 | $ | 67,562 | ||
| Net (loss) income | $ | (1,558 | ) | $ | 537 | |
| + interest expense | 2,131 | 896 | ||||
| + depreciation & amortization | 5,995 | 3,565 | ||||
| + tax (benefit) | (3,453 | ) | (213 | ) | ||
| EBITDA | $ | 3,115 | $ | 4,785 | ||
| + non-cash stock compensation | 7,861 | 4,434 | ||||
| + settlements and other non-core expenses | 399 | — | ||||
| + acquisition expenses | 753 | 454 | ||||
| Adjusted EBITDA | $ | 12,128 | $ | 9,673 | ||
| Adjusted EBITDA margin, net | 14.2 | % | 14.3 | % | ||
| ^1^ | Non-GAAP financial metrics the Company believes offer valuableperspective 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 March 31, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Gross Revenue | 2024 | % | 2023 | % | Change | % | |||||||||
| Building Infrastructure | 52,785 | 55.6 | % | 44,337 | 58.3 | % | 8,448 | 19.1 | % | ||||||
| Transportation | 18,128 | 19.1 | % | 16,019 | 21.0 | % | 2,109 | 13.2 | % | ||||||
| Power and Utilities | 18,467 | 19.5 | % | 13,324 | 17.5 | % | 5,143 | 38.6 | % | ||||||
| Other Emerging Markets^1^ | 5,527 | 5.8 | % | 2,420 | 3.2 | % | 3,107 | 128.4 | % | ||||||
| Total | **** | 94,907 | **** | 100.0 | % | **** | 76,100 | **** | 100.0 | % | **** | 18,807 | **** | 24.7 | % |
| (dollars in thousands) | For the Three Months Ended March 31, | ||||||||||||||
| Organic v Acquired Revenue | 2024 | % | 2023 | % | Change | % Change | |||||||||
| Organic | 76,433 | 80.5 | % | 76,100 | 100.0 | % | 333 | 0.4 | % | ||||||
| Acquired^2^ | 18,474 | 19.5 | % | — | — | % | 18,474 | n/a | |||||||
| Total | **** | 94,907 | **** | 100.0 | % | **** | 76,100 | **** | 100.0 | % | **** | 18,807 | **** | 24.7 | % |
| ^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 frompreviously reported numbers. | ||||||||||||||
| --- | --- |
BOWMAN CONSULTING GROUP LTD.
GROSS BACKLOG BY CATEGORY AT MARCH 31, 2024
( Unaudited )
| Category | Percentage | ||
|---|---|---|---|
| Building Infrastructure | 51 | % | |
| Transportation | 28 | % | |
| Power and Utilities | 17 | % | |
| Emerging Markets | 4 | % | |
| TOTAL | **** | 100 | % |