$BWMN Bowman Consulting Group Announces Fourth Quarter and Fiscal Year 2021 Financial Results

on March 21, 2022 News and Tags: , , , with 0 comments

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 results of operations for the three and twelve months ended December 31, 2021.

“We finished the year strong, generating record revenue in 2021 and ending the year with gross backlog of $167 million, up 48% year-over-year”, said Gary Bowman, Chairman and CEO of Bowman. “Consistent with our business strategy of expanding our geographic footprint, service offerings and customer base, we completed six acquisitions in the fourth quarter, bringing our total for the year to eight. Our integration process, combined with the addition of experienced team members, is creating immediate revenue synergies, and is resulting in economies of scale that we expect will positively impact our margins. We are well capitalized to continue executing on our growth initiatives and given our current pipeline of acquisition opportunities we expect to close on additional transactions this year at valuations that meet our target objectives. We remain focused on building shareholder value and delivering on our commitment to generate profitable growth.”

Financial highlights of the three months ended December 31, 2021:

Gross revenue of $41.9 million, a year-over-year increase of 40%
Net service billing1 of $37.8 million, a year-over-year increase of 44%
Net loss of $0.6 million
Adjusted EBITDA1 of $3.5 million
Adjusted EBITDA margin, net 1 of 9.3%
Gross backlog1 of $167 million, an increase of 20% from September 30, 2021, and 48% as compared to December 31, 2020

Financial highlights of the year ended December 31, 2021:

Gross revenue of $150.0 million, a year-over-year increase of 23%
Net service billing1 of $134.9 million, a year-over-year increase of 30%
Net income of $0.3 million
Adjusted EBITDA1 of $16.5 million, a year-over-year increase of 19%
Adjusted EBITDA margin, net 1 of 12.2%
Acquired revenue accounted for $11.8 million, or 8% of gross revenue

Other Business Highlights During and Subsequent to the Fourth Quarter:

Closed on six acquisitions during Q4 2021
Triangle Site Design in Raleigh, NC
PCD Engineering in Denver, CO
BTM Engineering in Louisville, KY
Kibart in Towson, MD
1519 Surveying in Waco, TX
Terra Associates in Houston, TX

Closed on the acquisition of Perry Engineering in Tucson, AZ in Q1 2022

Year-End Guidance:

The Company is increasing and narrowing its full year 2022 outlook for Net Service Billing to be in the range of $170 to $185 million and Adjusted EBITDA in the range of $23 to $27 million. This presents an increase from previous guidance of $150 to $170 million of Net Service Billing and $20 to $24 million of Adjusted EBITDA. The current outlook for 2022 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. The Company expects to continue making strategic and financially accretive acquisitions that are not yet reflected in this current outlook. Management will discuss the Company’s acquisition pipeline during its upcoming earnings call.

-----------------------

1 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.

FY 2022 Earnings Webcast

Bowman will host an earnings webcast to discuss the results of the quarter as follows:

Date: March 22, 2022
Time: 9:00 a.m. Eastern Time
Hosts: Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer
Where: http://investors.bowman.com

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 1,200 employees in more than 45 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. For more information, visit bowman.com or investors.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 final prospectus Form 424B4 dated February 8, 2022, which is available on the SEC's website at sec.gov, and other documents we have filed, or may file, with the SEC. 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 and other information about certain of these non-GAAP financial measures are included in the financial tables accompanying this press release.

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands except per share data)

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

2021

2020

2021

2020

Gross Contract Revenue
$

41,929

$

29,894

$

149,970

$

122,020

Contract costs: (exclusive of depreciation and amortization below)
Direct payroll costs

16,527

11,384

59,416

48,152

Sub-consultants and expenses

4,149

3,546

15,116

18,360

Total contract costs

20,676

14,930

74,532

66,512

Operating Expenses:
Selling, general and administrative

20,717

12,914

69,029

51,469

Depreciation and amortization

1,865

1,325

6,371

2,277

(Gain) loss on sale

(23

)

(62

)

(122

)

(107

)

Total operating expenses

22,559

14,177

75,278

53,639

Income (loss) from operations

(1,306

)

787

160

1,869

Other (income) expense

734

69

1,440

(110

)

Income (loss) before tax expense

(2,040

)

718

(1,280

)

1,979

Income tax (benefit) expense

(1,441

)

522

(1,579

)

989

Net income (loss)
$

(599

)

$

196

$

299

$

990

Earnings allocated to nonvested shares

-

14

56

55

Net income (loss) attributable to common shareholders
$

(599

)

$

182

$

243

$

935

Earnings (loss) per share
Basic
$

(0.07

)

$

0.04

$

0.03

$

0.17

Diluted
$

(0.07

)

$

0.04

$

0.03

$

0.17

Weighted average shares outstanding:
Basic

9,073,424

4,893,615

7,525,206

5,399,356

Diluted

9,073,424

4,906,478

7,635,615

5,412,218

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

December 31,

December 31,

2021

2020

ASSETS
Current Assets
Cash and equivalents

20,619

386

Accounts Receivable, net

38,491

24,183

Contract assets

9,189

7,080

Notes receivable - officers, employees, affiliates, current portion

1,260

1,182

Prepaid and other current assets

4,850

2,271

Total current assets

74,409

35,102

Non-Current Assets
Property and equipment, net

20,202

15,357

Goodwill

28,471

9,179

Notes receivable

903

903

Notes receivable - officers, employees, affiliates, less current portion

1,218

1,297

Other intangible assets, net

12,286

1,131

Other assets

681

669

Total Assets
$

138,170

$

63,638

LIABILITIES AND EQUITY
Current Liabilities
Bank line of credit

-

3,481

Accounts payable and accrued liabilities, current portion

17,921

12,203

Contract liabilities

4,623

1,943

Notes payable, current portion

4,450

1,592

Deferred rent, current portion

724

619

Capital lease obligation, current portion

5,136

3,495

Total current liabilities

32,854

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23,333

Non Current Liabilities
Other non-current obligations

-

1,244

Notes payable, less current portion

8,407

2,829

Deferred rent, less current portion

4,179

4,278

Capital lease obligation, less current portion

10,020

7,503

Deferred tax liability, net

4,290

6,472

Common shares subject to repurchase

7

842

Total liabilities
$

59,757

$

46,501

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; 13,690,868 shares issued and 11,489,579 outstanding, and 7,840,244 shares issued and 5,744,594 outstanding, respectively

137

2

Additional paid-in-capital

120,842

58,866

Treasury Stock, at cost; 2,201,289 and 2,095,650, respectively

(17,488

)

(16,022

)

Stock subscription notes receivable

(277

)

(609

)

Accumulated deficit

(24,801

)

(25,100

)

Total shareholders' equity (deficit)
$

78,413

$

17,137

TOTAL LIABILITIES AND EQUITY
$

138,170

$

63,638

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

For the Twelve Months Ended December 31,

2021

2020

Cash Flows from Operating Activities:
Net Income
$299

$990

Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization - property, plant and equipment

5,974

2,036

Amortization of intangible assets

397

241

Gain on sale of assets

(122

)

(110

)

Bad debt

496

3,008

Stock based compensation

8,217

5,085

Deferred taxes

(2,183

)

326

Deferred rent

5

530

Changes in operating assets and liabilities
Accounts Receivable

(8,802

)

1,506

Contract Assets

(387

)

3,028

Prepaid expenses

(2,251

)

623

Other assets

(31

)

(28

)

Accounts payable and accrued expenses

3,297

(520

)

Contract Liabilities

(192

)

(5,945

)

Net cash provided by operating activities

4,717

10,770

Cash Flows from Investing Activities:
Purchases of property and equipment

(905

)

(924

)

Proceeds from sale of assets

127

110

Amounts advanced under loans to shareholders

(779

)

(1,207

)

Payments received under loans to shareholders

36

228

Amounts advanced under notes receivable

(0

)

(420

)

Payments received under notes receivable

-

19

Acquisitions of businesses, net of cash acquired

(20,345

)

(416

)

Collections under stock subscription notes receivable

332

196

Net cash used in investing activities

(21,534

)

(2,414

)

Cash Flows from Financing Activities:
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs

47,104

-

Net repayments under revolving line of credit

(3,481

)

(4,867

)

Repayments under fixed line of credit

(722

)

(485

)

Borrowings under fixed line of credit

-

1,985

Repayment under notes payable

(1,084

)

(1,800

)

Payments on capital leases

(4,663

)

(1,088

)

Payment of contingent consideration from acquisitions

(2

)

(106

)

Payment of subsequent common stock offering costs

(75

)

(920

)

Payments for purchase of treasury stock

(582

)

(1,261

)

Proceeds from issuance of common stock

555

63

Net cash provided by (used in) financing activities

37,050

(8,479

)

.
Net increase (decrease) in cash and cash equivalents

20,233

(123

)

Cash and cash equivalents, beginning of period

386

509

Cash and cash equivalents, end of period
$20,619

$386

COMBINED STATEMENT OF CASH FLOWS

For the Twelve Months Ended December 31,

2021

2020

Supplemental disclosures of cash flow information:

Cash paid for interest
$887

$609

Cash paid for income taxes
$1,921

$543

Non-cash investing and financing activities
Property and equipment acquired under capital lease
($8,877

)

($11,370

)

Settlement of redeemable common stock
$0

$36,927

Stock redemption for exercise of stock option
$139

$0

Issuance of common stock for a note receivable
$0

($533

)

Stock redemption for payment of shareholder loans
$0

$1,457

Stock redemption for payment on note receivable
$0

$6,130

Issuance of notes payable for purchase of intangible asset
$0

($165

)

Issuance of notes payable for acquisitions
($10,200

)

$0

Issuance of notes payable for redemption of stock
$0

($900

)

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands except per share data)

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

2021

2020

2021

2020

Gross revenue
$

41,929

$

29,894

$

149,970

$

122,020

Less: sub-consultants and other direct expenses

4,149

3,547

15,116

18,360

Net service billing
$

37,780

$

26,347

$

134,854

$

103,660

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

2021

2020

2021

2020

Net Income (loss)
$

(599

)

$

196

$

299

$

990

+ interest expense

268

198

918

565

+ depreciation & Amortization

1,865

1,325

6,371

2,277

+ tax (benefit) expense

(1,441

)

522

(1,579

)

989

EBITDA
$

93

$

2,241

$

6,009

$

4,821

+ non-recurring operating lease rent

-

91

-

2,521

+ non-cash stock compensation

2,876

1,003

8,217

5,085

+ transaction related expenses

-

-

1,555

-

+ settlements and other non-core expenses

-

-

-

1,461

+ acquisition expenses

565

-

704

-

Adjusted EBITDA
$

3,534

$

3,335

$

16,485

$

13,888

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands)

For the three months ended December 31,
Consolidated Gross Revenue

2021

%CGR

2020

%CGR

Change

% Change

Building Infrastructure
$

31,559

75.3

%

$

19,589

65.5

%

$

11,970

61.1

%

Transportation

3,845

9.2

%

4,975

16.6

%

(1,130

)

-22.7

%

Power and Utilities

4,925

11.7

%

4,375

14.6

%

550

12.6

%

Emerging Markets

1,600

3.8

%

956

3.2

%

644

67.4

%

Total
$

41,929

100.0

%

$

29,894

100.0

%

$

12,035

40.3

%

Organic
$

36,836

87.9

%

$

29,894

100.0

%

$

6,942

23.2

%

Acquired

5,093

12.1

%

-

0.0

%

5,093

-

For the Year ended December 31,
Consolidated Gross Revenue

2021

%CGR

2020

%CGR

Change

% Change

Building Infrastructure1
$

105,242

70.2

%

$

76,873

63.0

%

$

28,369

36.9

%

Transportation

16,537

11.0

%

19,157

15.7

%

(2,620

)

(13.7

%)

Power & Utilities

22,525

15.0

%

20,377

16.7

%

2,148

10.5

%

Other emerging markets2

5,666

3.8

%

5,613

4.6

%

53

0.9

%

Total:
$

149,970

100.0

%

$

122,020

100.0

%

$

27,950

22.9

%

Organic
$

138,136

92.1

%

$

122,020

100.0

%

$

16,116

13.2

%

Acquired

11,834

7.9

%

-
0.0
%

11,834

-

1 formerly referred to as Communities, homes & buildings

2 represents renewable energy, mining, water resources and other

BOWMAN CONSULTING GROUP LTD.

GROSS BACKLOG AT DECEMBER 31, 2021

2021

2020

Building Infrastructure

62.3%

42.7%

Transportation

19.0%

28.0%

Power & Utilities

16.2%

24.8%

Emerging Markets

2.5%

4.5%

View source version on businesswire.com: https://www.businesswire.com/news/home/20220321005572/en/

Contacts:

Investor Relations
Bruce Labovitz
ir@bowman.com
(703) 787-3403