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Bowman Consulting Group Announces First Quarter 2021 Financial Results

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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 financial results for the quarter ended March 31, 2021 which included year-over-year increases of 11% in gross revenue and 157% in adjusted EBITDA.

"The first quarter was our final quarter as a private company and it was clearly a busy period for us," said Gary Bowman, Chairman and CEO of Bowman. "We booked over $36 million of new work while generating just under $32 million of gross revenue. In January we closed on the KTA acquisition and we have already integrated operations and started cross selling services. We strengthened our leadership with people who bring significant industry experience and extensive client relationships. At the same time, our team worked tirelessly on our $53 million IPO which closed in May. So far, the second quarter has been in line with our expectations for new bookings and gross contract revenue. I am very proud of our accomplishments and look forward to delivering growth and value to shareholders."

Financial Highlights of First Quarter 2021:

  • Gross revenue increased 11% to $31.8 million

  • Net service billing increased 17% to $28.9 million 1

  • Net income increased 130% to $1.0 million

  • Adjusted EBITDA increased 157% to $4.1 million 1

  • Adjusted EBITDA margin, net increased 120% to 14.2% 1

  • Acquisitions contributed $1.9 million or 6% of gross revenue

  • Backlog increased by $3 million to $116 million 1

Other Reported Business Highlights:

  • Closed on KTA Group acquisition and commenced cross-selling initiatives

  • Hired Michael Ginsberg to launch national energy transition services practice

  • Added impactful senior operations and business development leadership

  • Hired Tim Vaughn to lead and accelerate M&A efforts

_____________________________

1 Non-GAAP financial metrics the Company believes offer valuable perspective on results of operations

Q1 2021 Earnings Webcast

Bowman will host an earnings webcast to discuss first quarter 2021 financial results:

Date:

June 11, 2021

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 750 employees in more than 30 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. On May 11, 2021, Bowman completed its $53.3 million initial public offering and began trading on the Nasdaq under the symbol BWMN. For more information, visit 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 Form 424B4 dated May 6, 2021, which is available on the SEC's website at sec.gov. 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 are included in the financial tables accompanying this press release.

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)

For the Three Months

Ended March 31,

(in thousands except share data)

2021

2020

Gross Contract Revenue

$

31,802

$

28,611

Contract costs: (exclusive of depreciation and amortization below)

Direct payroll costs

13,222

11,652

Sub-consultants and expenses

2,934

3,878

Total contract costs

16,156

15,530

Operating Expenses:

Selling, general and administrative

12,749

12,069

Depreciation and amortization

1,428

320

(Gain) loss on sale

(26

)

(15

)

Total operating expenses

14,151

12,374

Income from operations

1,495

707

Other (income) expense

205

(9

)

Income before tax expense

1,290

716

Income tax expense

309

290

Net income

$

981

$

426

Earnings allocated to non-vested shares

124

14

Net income attributable to common shareholders

$

857

$

412

Earnings per share

Basic

$

0.17

$

0.07

Diluted

$

0.17

$

0.07

Weighted average shares outstanding:

Basic

5,083,470

5,584,321

Diluted

5,096,597

5,622,700

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31,
2021

December 31,
2020

(in thousands)

(unaudited)

ASSETS

Current Assets

Cash and equivalents

319

386

Accounts Receivable, net

27,699

24,183

Contract assets

7,396

7,080

Notes receivable - officers, employees, affiliates, current portion

1,116

1,182

Prepaid and other current assets

2,825

2,271

Total current assets

39,355

35,102

Non-Current Assets

Property and equipment, net

16,218

15,357

Goodwill

11,723

9,179

Notes receivable, less current portion

903

903

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

1,289

1,297

Other intangible assets, net

1,934

1,131

Other assets

718

669

Total Assets

$

72,140

$

63,638

LIABILITIES AND EQUITY

Current Liabilities

Bank line of credit

6,941

3,481

Accounts payable and accrued liabilities, current portion

13,200

12,203

Contract liabilities

1,945

1,943

Notes payable, current portion

2,124

1,592

Deferred rent, current portion

654

619

Capital lease obligation, current portion

3,797

3,495

Total current liabilities

28,661

23,333

Non Current Liabilities

Other non-current obligations

1,243

1,244

Notes payable, less current portion

4,167

2,829

Deferred rent, less current portion

4,148

4,278

Capital lease obligation, less current portion

7,556

7,503

Deferred tax liability, net

6,581

6,472

Common shares subject to repurchase

1,401

842

Total liabilities

$

53,757

$

46,501

Shareholders' Equity

Common stock

2

2

Additional paid-in-capital

60,161

58,866

Treasury Stock

(17,085

)

(16,022

)

Stock subscription notes receivable

(576

)

(609

)

Accumulated deficit

(24,119

)

(25,100

)

Total shareholders' equity

$

18,383

$

17,137

TOTAL LIABILITIES AND EQUITY

$

72,140

$

63,638

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Three Months Ended
March 31,

(in thousands)

2021

2020

Cash Flows from Operating Activities:

Net Income

$

981

$

426

Adjustments to reconcile net income to net cash provided by operating activities

Depreciation and amortization - property, plant and equipment

1,360

250

Amortization of intangible assets

68

70

Gain on sale of assets

(26

)

(15

)

Bad debt

92

122

Stock based compensation

1,149

(543

)

Deferred taxes

109

75

Deferred rent

(95

)

176

Changes in operating assets and liabilities

Accounts Receivable

(3,608

)

(3,082

)

Contract Assets

(100

)

4,815

Prepaid expenses

(148

)

831

Deposits and other assets

(21

)

(16

)

Accounts payable and accrued expenses

698

(1,751

)

Contract Liabilities

(414

)

(2,874

)

Net cash provided by (used in) operating activities

45

(1,516

)

Cash Flows from Investing Activities:

Purchases of property and equipment

(438

)

(183

)

Proceeds from sale of assets and disposal of leases

26

15

Amounts advanced under loans to shareholders

(364

)

(337

)

Payments received under loans to shareholders

75

57

Amounts advanced under notes receivable

-

(140

)

Acquisitions of businesses, net of cash acquired

(640

)

-

Collections under stock subscription notes receivable

33

47

Net cash used in investing activities

(1,308

)

(541

)

Cash Flows from Financing Activities:

Net repayments under revolving line of credit

3,460

456

Repayments under fixed line of credit

(179

)

(49

)

Borrowings under fixed line of credit

-

1,985

Repayment under notes payable

(151

)

(407

)

Payments on capital leases

(975

)

(71

)

Payment of contingent consideration from acquisitions

(1

)

(17

)

Payment of offering costs

(417

)

-

Payments for purchase and retirement of common stock

(559

)

-

Proceeds from issuance of common stock

18

15

Net cash provided by financing activities

1,196

1,912

Net decrease in cash and cash equivalents

(67

)

(145

)

Cash and cash equivalents, beginning of period

386

509

Cash and cash equivalents, end of period

$

319

$

364

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(in thousands)

For the Three Months Ended
March 31,

Net Service Billing

2021

2020

Gross revenue

$

31,802

$

28,611

Less: sub-consultants and other direct expenses

2,934

3,878

Net services billing

$

28,868

$

24,733

(in thousands)

For the Three Months Ended
March 31,

Adjusted EBITDA and Adjusted EBITDA Margin, net

2021

2020

Net Income

$

981

$

426

+ interest expense

219

149

+ depreciation & Amortization

1,428

320

+ tax expense

309

290

EBITDA

$

2,937

$

1,185

+ non-reoccurring operating lease rent

-

947

+ non-cash stock compensation

1,149

(543

)

Adjusted EBITDA

$

4,086

$

1,589

Adjusted EBITDA margin, net

14.2%

6.4%

(in thousands)

For the Three Months Ended
March 31,

Gross Margin, gross and Gross Margin, net

2021

2020

Gross revenue

$

31,802

$

28,611

Less: sub-consultants and other direct expenses

2,934

3,878

Net service billing

$

28,868

$

24,733

Direct payroll

13,222

11,652

Gross profit (excluding depreciation and amortization)

$

15,646

$

13,081

Gross margin, gross

49.2%

45.7%

Gross margin, net

54.2%

52.9%

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Unaudited)

(dollars in millions)

For the three months ended March 31,

Consolidated Gross Revenue

2021

%GCR

2020

%GCR

Change

% of Change

Communities, Homes & Buildings

$21,037

66.2%

$16,437

57.5%

$4,600

28.0%

Transportation

4,122

13.0%

4,882

17.1%

(760)

-15.6%

Power and Utilities

5,045

15.8%

5,712

19.9%

(667)

-11.7%

Emerging Markets

1,598

5.0%

1,580

5.5%

18

1.1%

Total

$31,802

100.0%

28,611

100.0%

3,191

11.2%

For the three months ended March 31,

Organic v Acquired Revenue

2,021

%GCR

2,020

%GCR

Change

% of Change

Organic Growth

$29,879

94.0%

$28,611

100.0%

$1,268

39.7%

Acquired Growth - KTA Group

1,923

6.0%

-

0.0%

1,923

60.3%

Total

$31,802

100.0%

$28,611

100.0%

$3,191

100.0%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210610005882/en/

Contacts

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