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Bowman Announces Fiscal Year 2023 Financial Results

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Bowman Consulting Group Ltd. (Nasdaq: BWMN) reported strong financial results for the fiscal year 2023, with over $300 million in net service billing, marking a 30% year-over-year growth. The company aims to be one of the 50 largest domestic engineering firms and has seen a 31% compound annual growth since its IPO in May 2021. Bowman completed 11 acquisitions in 2023, totaling around $60 million in annualized net service billing, expanding its customer base and geographic presence.
Positive
  • Bowman achieved over $300 million in net service billing, showing a 30% year-over-year growth.
  • The company has a 31% compound annual growth rate since its IPO in May 2021.
  • In 2023, Bowman completed 11 acquisitions totaling approximately $60 million in annualized net service billing.
  • The company aims to be one of the 50 largest domestic engineering firms.
  • Bowman is focused on optimizing resource utilization and integrating acquired organizations into a common culture.
Negative
  • None.

The financial performance of Bowman Consulting Group Ltd. indicates a robust growth trajectory with a 30% year-over-year increase in net service billing and a 31% compound annual growth rate since 2020. This growth is significant as it surpasses the organic growth rates typically seen in the engineering and infrastructure services industry. Investors may view the company's ability to consistently increase revenue as a positive indicator of operational efficiency and market penetration.

Moreover, the company's strategy of expanding through acquisitions, as evidenced by the 11 acquisitions contributing to $60 million in annualized net service billing, suggests an aggressive approach to scaling operations. This could potentially enhance the company's competitive edge by broadening its service offerings and geographic reach. However, investors should be cautious of the integration risks associated with mergers and acquisitions, including cultural assimilation and potential disruptions in operations.

Bowman's focus on becoming one of the top 50 domestic engineering firms reflects its ambition in a fragmented market. The introduction of adjacent service offerings and leading-edge geospatial solutions could cater to the evolving needs of clients and may increase the firm's market share. The healthy pipeline of opportunities and the leverage of significant public funding for infrastructure projects suggest a favorable demand environment for Bowman's services.

However, it's important to consider the cyclical nature of the infrastructure sector and the impact of economic cycles on project funding and execution. The company's optimism should be weighed against potential macroeconomic risks that could affect public and private spending on infrastructure.

The significant public funding available for infrastructure projects mentioned by Bowman's CEO underscores the current government focus on improving national infrastructure. This can be a key driver for the engineering and infrastructure services sector, potentially leading to increased demand for companies like Bowman. The firm's strategic positioning to capitalize on this trend through acquisitions and service diversification could yield positive returns in an environment where infrastructure spending is prioritized.

However, the reliance on public funding introduces a degree of uncertainty tied to political and budgetary constraints. Shifts in policy or economic downturns could alter the landscape significantly. Therefore, the company's future performance may be influenced by factors beyond its control, which stakeholders should monitor closely.

RESTON, Va.--(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 fiscal year ended December 31, 2023.

“This past year we surpassed $300 million in net service billing representing nearly 30% year-over-year growth and approximately 31% compound annual growth since 2020, the year before our May 2021 initial public offering,” said Gary Bowman, Chairman and CEO of Bowman. “We remain focused on becoming one of the 50 largest domestic engineering firms and are continually working to optimize the utilization of our resources as we advance toward this goal. Our pipeline of opportunities, including both new and existing customer assignments and prospective acquisitions, is healthy, and the significant public funding available for infrastructure projects provides a positive outlook for the future.”

“During 2023 we completed 11 acquisitions representing approximately $60 million in annualized net service billing,” continued Bowman. “We added new customers and grew our relationships with existing customers while expanding our geographic footprint and increasing our ability to gain both market-share and wallet-share through the introduction of adjacent service offerings and leading-edge geospatial solutions. We remain committed to our fully integrated operating model as we continue to weave together a diverse mix of acquired organizations into one common culture. We are confident about our long-term prospects and believe our approach to growth will continue to deliver shareholder value.”

Financial highlights for the three months ended December 31, 2023, compared to December 31, 2022:

  • Gross contract revenue of $93.0 million, compared to $75.6 million, a 23% increase
  • Year-over-year organic gross contract revenue growth1 of 6%
  • Net service billing2 of $80.5 million, compared to $66.2 million, a 22% increase
  • Year-over-year organic net service billing growth of 4%
  • Net loss of $7.7 million, compared to net income of $0.5 million
  • Adjusted EBITDA2 of $11.2 million, compared to $9.4 million, a 19% increase
  • Adjusted EBITDA margin, net 2 of 14.0% compared to 14.2%, a 20 bps decrease
  • Gross backlog2 of $306 million, compared to $243 million, a 26% increase

Financial highlights for fiscal year 2023, compared to fiscal year 2022:

  • Gross contract revenue of $346.3 million, compared to $261.7 million, a 32% increase
  • Year-over-year organic gross contract revenue growth1 of 21%
  • Net service billing2 of $304.0 million, compared to $235.2 million, a 29% increase
  • Year-over-year organic net service billing growth of 18%
  • Net loss of $6.6 million, compared to a net income of $5.0 million
  • Adjusted EBITDA2 of $47.0 million, compared to $34.0 million, a 38% increase
  • Adjusted EBITDA margin, net 2 of 15.5% compared to 14.5%, a 100 bps increase

Impact of IRC Section 174 Research & Development Tax Expense Deductibility

The Tax Cuts and Jobs Act (“TCJA”) drastically altered IRC Section 174 and the treatment of Research and Experimental (“R&E”) expenditures for tax years beginning after December 31, 2021. Prior to this alteration, under IRC Sec. 174 businesses were permitted to deduct the full amount of R&E expenditures as an expense in the taxable year in which they were incurred. As amended, IRC Sec. 174 eliminated the ability for U.S. businesses to deduct their R&E expenditures as an expense, instead requiring businesses to capitalize these expenses and amortize them over a period of five years resulting in acceleration of tax remittance. The Company maintains an uncertain tax position (“UTP”) with respect to its position that its R&E expenses are not subject to the altered IRC Sec. 174 treatment based on specific facts and circumstances. The Company’s tax expense for the three months ended December 31, 2023 and full-year 2023 include a $4.6 million accrual relating to the UTP and the Company is carrying approximately $38 million of associated deferred tax assets. On January 31, 2024, the US House of Representatives passed HR 7024, the Tax Relief for American Families and Workers Act of 2024, on a bi-partisan basis, which, among other things, restores U.S. taxpayers’ ability to deduct currently, and retroactively, domestic R&E costs paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2026. If HR 7024 is adopted by the U.S. Senate and the President, the Company would reverse its UTP related liability, tax expense and deferred tax assets.

Activity Under Stock Repurchase Program:

In November 2022, the Company's Board of Directors authorized a stock repurchase program ("2022 Stock Repurchase Program") to repurchase up to $10.0 million of the Company’s common stock. As previously disclosed, during the twelve months ended December 31, 2023 the Company repurchased a total of 28,704 shares of its common stock at an average price of $25.94. The 2022 Stock Repurchase Program expired on November 10, 2023. On November 17, 2023, the Company’s Board of Directors authorized a new $10.0 million repurchase program ("2023 Stock Repurchase Program"). As of March 11, 2024, the Company has $10.0 million remaining under the 2023 Stock Repurchase Program.

Non-GAAP Adjusted Earnings per Share:

In connection with the release of financial results for the three and nine months ended September 30, 2023, the Company introduced the new non-GAAP financial metric of adjusted earnings per share (“Adjusted EPS”). 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.

For the three months ended December 31, 2023, compared to December 31, 2022:

  • Basic Adjusted EPS was $0.33 compared to $0.44
  • Diluted Adjusted EPS was $0.31 compared to $0.41

For the twelve months ended December 31, 2023, compared to December 31, 2022:

  • Basic Adjusted EPS was $1.12 compared to $1.46
  • Diluted Adjusted EPS was $1.03 compared to $1.36

Updating FY 2024 Guidance

The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $363 to $378 million and Adjusted EBITDA2 in the range of $59 to $65 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.

“Our 2024 forecast assumes uneven growth in net service billing from first to third quarter with an accommodation for a modest seasonal impact during the fourth quarter,” said Bruce Labovitz, Chief Financial Officer at Bowman. “Generally speaking, we have found that it can take acquisitions a couple of months to return to normal net service billing levels due to the unusual demands of immediate post-closing integration. We reiterate that when acquisitions are added to guidance, we include a pro-rated amount of announced annualized net service billing run rate that is based on the timing of closing and anticipated integration related revenue disruptions.”

Q4 2023 Earnings Webcast

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

Date: March 12, 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 Includes reclassification of 2022 Q4 acquisitions as organic revenue.

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 a national engineering services firm delivering infrastructure solutions to customers who own, develop, and maintain the built environment. With over 2,000 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.

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,
2023

 

December 31,
2022

ASSETS

 

 

 

Current Assets

 

 

 

Cash and equivalents

$

20,687

 

 

$

13,282

 

Accounts receivable, net

 

87,565

 

 

 

64,443

 

Contract assets

 

33,520

 

 

 

16,321

 

Notes receivable - officers, employees, affiliates, current portion

 

1,199

 

 

 

1,016

 

Prepaid and other current assets

 

11,806

 

 

 

7,068

 

Total current assets

 

154,777

 

 

 

102,130

 

Non-Current Assets

 

 

 

Property and equipment, net

 

27,601

 

 

 

25,104

 

Operating lease, right-of-use assets

 

40,743

 

 

 

30,264

 

Goodwill

 

96,393

 

 

 

53,210

 

Notes receivable

 

903

 

 

 

903

 

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

 

1,119

 

 

 

1,417

 

Other intangible assets, net

 

46,294

 

 

 

27,950

 

Deferred tax asset, net

 

33,780

 

 

 

13,759

 

Other assets

 

1,175

 

 

 

1,020

 

Total Assets

$

402,785

 

 

$

255,757

 

LIABILITIES AND EQUITY

 

 

 

Current Liabilities

 

 

 

Bank line of credit

 

45,290

 

 

 

 

Accounts payable and accrued liabilities, current portion

 

44,394

 

 

 

40,293

 

Contract liabilities

 

7,481

 

 

 

6,370

 

Notes payable, current portion

 

13,989

 

 

 

10,168

 

Operating lease obligation, less current portion

 

9,016

 

 

 

6,949

 

Finance lease obligation, current portion

 

6,586

 

 

 

5,297

 

Total current liabilities

 

126,756

 

 

 

69,077

 

Non-Current Liabilities

 

 

 

Other non-current obligations

 

42,288

 

 

 

356

 

Notes payable, less current portion

 

13,738

 

 

 

16,276

 

Operating lease obligation, less current portion

 

37,660

 

 

 

28,087

 

Finance lease obligation, less current portion

 

14,408

 

 

 

14,254

 

Pension and post-retirement obligation, less current portion

 

4,654

 

 

 

4,848

 

Total liabilities

$

239,504

 

 

$

132,898

 

 

 

 

 

Shareholders' Equity

 

 

 

Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and 2022

 

-

 

 

 

-

 

Common stock, $0.01 par value; 30,000,000 shares authorized as of December 31, 2023 and 2022; 17,694,495 shares issued and 15,094,278 outstanding, and 15,949,805 shares issued and 13,556,550 outstanding as of December 31, 2023 and 2022, respectively

 

177

 

 

 

159

 

Additional paid-in-capital

 

215,420

 

 

 

162,922

 

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

 

(26,410

)

 

 

(20,831

)

Accumulated other comprehensive income

 

590

 

 

 

578

 

Stock subscription notes receivable

 

(76

)

 

 

(173

)

Accumulated deficit

 

(26,420

)

 

 

(19,796

)

Total shareholders' equity

$

163,281

 

 

$

122,859

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

$

402,785

 

 

$

255,757

 

BOWMAN CONSULTING GROUP LTD.

CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands except per share data)

 

 

For the Three Months
Ended December 31,

For the Year
Ended December 31,

 

2023

 

2022

2023

 

2022

Gross Contract Revenue

$

92,969

 

 

$

75,609

 

$

346,256

 

 

$

261,714

 

Contract costs: (exclusive of depreciation and amortization below)

 

 

 

 

 

 

Direct payroll costs

 

33,679

 

 

 

26,753

 

 

127,961

 

 

 

100,076

 

Sub-consultants and expenses

 

12,453

 

 

 

9,424

 

 

42,262

 

 

 

26,510

 

Total contract costs

 

46,132

 

 

 

36,177

 

 

170,223

 

 

 

126,586

 

Operating Expenses:

 

 

 

 

 

 

Selling, general and administrative

 

44,655

 

 

 

34,993

 

 

158,377

 

 

 

117,839

 

Depreciation and amortization

 

5,939

 

 

 

3,901

 

 

18,723

 

 

 

12,251

 

Gain on sale

 

(64

)

 

 

(39

)

 

(411

)

 

 

(82

)

Total operating expenses

 

50,530

 

 

 

38,855

 

 

176,689

 

 

 

130,008

 

(Loss) Income from operations

 

(3,693

)

 

 

577

 

 

(656

)

 

 

5,120

 

Other expense

 

1,939

 

 

 

1,297

 

 

5,791

 

 

 

3,384

 

(Loss) Income before tax expense

 

(5,632

)

 

 

(720

)

 

(6,447

)

 

 

1,736

 

Income tax (benefit)

 

2,078

 

 

 

(1,190

)

 

177

 

 

 

(3,269

)

Net (loss) income

$

(7,710

)

 

$

470

 

$

(6,624

)

 

$

5,005

 

Earnings allocated to non-vested shares

 

 

 

 

67

 

 

 

 

 

783

 

Net (loss) income attributable to common shareholders

$

(7,710

)

 

$

403

 

$

(6,624

)

 

$

4,222

 

(Loss) Earnings per share

 

 

 

 

 

 

Basic

$

(0.59

)

 

$

0.03

 

$

(0.53

)

 

$

0.39

 

Diluted

$

(0.59

)

 

$

0.03

 

$

(0.53

)

 

$

0.37

 

Weighted average shares outstanding:

 

 

 

 

 

 

Basic

 

13,043,111

 

 

 

11,538,128

 

 

12,490,914

 

 

 

10,887,620

 

Diluted

 

13,043,111

 

 

 

12,234,109

 

 

12,490,914

 

 

 

11,683,758

 

BOWMAN CONSULTING GROUP LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

For the Year Ended December 31,

 

 

2023

 

 

 

2022

 

Cash Flows from Operating Activities:

 

 

 

Net (Loss) Income

$

(6,624

)

 

$

5,005

 

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

 

 

 

Depreciation and amortization - property, plant and equipment

 

9,732

 

 

 

8,363

 

Amortization of intangible assets

 

8,991

 

 

 

3,888

 

Gain on sale of assets

 

(411

)

 

 

(82

)

Bad debt

 

515

 

 

 

742

 

Stock based compensation

 

24,738

 

 

 

15,097

 

Deferred taxes

 

(25,529

)

 

 

(18,049

)

Accretion of discounts on notes payable

 

642

 

 

 

258

 

Changes in operating assets and liabilities

 

 

 

Accounts receivable

 

(13,559

)

 

 

(13,779

)

Contract assets

 

(10,866

)

 

 

(4,575

)

Prepaid expenses and other assets

 

143

 

 

 

(2,126

)

Accounts payable and accrued expenses

 

27,728

 

 

 

15,802

 

Contract liabilities

 

(3,778

)

 

 

(1,374

)

Net cash provided by operating activities

 

11,722

 

 

 

9,170

 

Cash Flows from Investing Activities:

 

 

 

Purchases of property and equipment

 

(2,093

)

 

 

(902

)

Proceeds from sale of assets

 

411

 

 

 

35

 

Amounts advanced under loans to shareholders

 

 

 

 

(5

)

Payments received under loans to shareholders

 

115

 

 

 

49

 

Acquisitions of businesses, net of cash acquired

 

(25,687

)

 

 

(18,035

)

Collections under stock subscription notes receivable

 

98

 

 

 

104

 

Net cash used in investing activities

 

(27,156

)

 

 

(18,754

)

Cash Flows from Financing Activities:

 

 

 

Proceeds from common stock offering, net of underwriting discounts and commissions and other offering costs

 

 

 

 

15,475

 

Borrowings under revolving credit facility

 

45,290

 

 

 

 

Repayments under fixed line of credit

 

(430

)

 

 

(734

)

Repayment under notes payable

 

(11,237

)

 

 

(4,595

)

Payments on finance leases

 

(6,782

)

 

 

(6,027

)

Payments for purchase of treasury stock

 

(4,833

)

 

 

(3,343

)

Repurchases of common stock

 

(745

)

 

 

 

Proceeds from issuance of common stock

 

1,576

 

 

 

1,471

 

Net cash provided by financing activities

 

22,839

 

 

 

2,247

 

Net increase (decrease) in cash and cash equivalents

 

7,405

 

 

 

(7,337

)

Cash and cash equivalents, beginning of period

 

13,282

 

 

 

20,619

 

Cash and cash equivalents, end of period

$

20,687

 

 

$

13,282

 

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

4,212

 

 

$

1,896

 

Cash paid for income taxes

$

1,133

 

 

$

400

 

Non-cash investing and financing activities

 

 

 

Property and equipment acquired under finance lease

$

(8,246

)

 

$

(8,118

)

Note payable converted to common shares

$

(1,343

)

 

$

-

 

Issuance of notes payable for acquisitions

$

(13,650

)

 

$

(19,089

)

Issuance of contingent consideration

$

(8,909

)

 

$

(487

)

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF EPS TO ADJUSTED EPS

(Amounts in thousands except per share data)

 

 

 

For the Three Months Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net (loss) income (GAAP)

 

$

(7,710

)

 

$

470

 

 

$

(6,624

)

 

$

5,005

 

+ tax expense (benefit) (GAAP)

 

 

2,078

 

 

 

(1,190

)

 

 

177

 

 

 

(3,269

)

(Loss) Income before tax expense (GAAP)

 

$

(5,632

)

 

$

(720

)

 

$

(6,447

)

 

$

1,736

 

+ acquisition related expenses

 

 

2,849

 

 

 

978

 

 

 

5,025

 

 

 

2,414

 

+ amortization of intangibles

 

 

3,378

 

 

 

1,904

 

 

 

8,991

 

 

 

3,888

 

+ non-cash stock comp related to pre-IPO

 

 

1,747

 

 

 

1,879

 

 

 

6,955

 

 

 

7,992

 

+ other non-core expenses

 

 

249

 

 

 

439

 

 

 

923

 

 

 

654

 

Adjusted income before tax expense

 

$

2,591

 

 

$

4,480

 

 

$

15,447

 

 

$

16,684

 

Adjusted income tax (benefit)

 

 

(2,285

)

 

 

(1,394

)

 

 

(620

)

 

 

(2,216

)

Adjusted net income

 

$

4,876

 

 

$

5,874

 

 

$

16,067

 

 

$

18,900

 

Adjusted earnings allocated to non-vested shares

 

 

584

 

 

 

837

 

 

 

2,028

 

 

 

2,955

 

Adjusted net income attributable to common shareholders

 

$

4,292

 

 

$

5,037

 

 

$

14,039

 

 

$

15,945

 

(Loss) Earnings per share (GAAP)

 

 

 

 

 

 

 

 

Basic

 

$

(0.59

)

 

$

0.03

 

 

$

(0.53

)

 

$

0.39

 

Diluted

 

$

(0.59

)

 

$

0.03

 

 

$

(0.53

)

 

$

0.37

 

Adjusted earnings per share (Non-GAAP)

 

 

 

 

 

 

 

 

Basic

 

$

0.33

 

 

$

0.44

 

 

$

1.12

 

 

$

1.46

 

Diluted

 

$

0.31

 

 

$

0.41

 

 

$

1.03

 

 

$

1.36

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

13,043,111

 

 

 

11,538,128

 

 

 

12,490,914

 

 

 

10,887,620

 

Diluted

 

 

13,984,138

 

 

 

12,234,109

 

 

 

13,681,711

 

 

 

11,683,758

 

 

 

 

 

 

 

 

 

 

Basic Adjusted Earnings Per Share Summary - Non-GAAP

 

For the Three Months Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(Loss) Earnings per share (GAAP)

 

$

(0.59

)

 

$

0.03

 

 

$

(0.53

)

 

$

0.39

 

Pre-tax basic per share adjustments

 

$

0.79

 

 

$

0.35

 

 

$

1.78

 

 

$

1.14

 

Adjusted earnings per share before tax expense

 

$

0.20

 

 

$

0.38

 

 

$

1.25

 

 

$

1.53

 

Tax (benefit) per share adjustment

 

$

(0.18

)

 

$

(0.12

)

 

$

(0.04

)

 

$

(0.20

)

Adjusted earnings per share - adjusted net income

 

$

0.38

 

 

$

0.50

 

 

$

1.29

 

 

$

1.73

 

Adjusted earnings per share allocated to non-vested shares

 

$

0.05

 

 

$

0.06

 

 

$

0.17

 

 

$

0.27

 

Adjusted earnings per share attributable to common shareholders

 

$

0.33

 

 

$

0.44

 

 

$

1.12

 

 

$

1.46

 

 

 

 

 

 

 

 

 

 

Diluted Adjusted Earnings Per Share Summary - Non-GAAP

 

For the Three Months Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(Loss) Earnings per share (GAAP)

 

$

(0.59

)

 

$

0.03

 

 

$

(0.53

)

 

$

0.37

 

Pre-tax diluted per share adjustments

 

$

0.78

 

 

$

0.34

 

 

$

1.66

 

 

$

1.06

 

Adjusted earnings per share before tax expense

 

$

0.19

 

 

$

0.37

 

 

$

1.13

 

 

$

1.43

 

Tax (benefit) per share adjustment

 

$

(0.16

)

 

$

(0.11

)

 

$

(0.05

)

 

$

(0.19

)

Adjusted earnings per share - adjusted net income

 

$

0.35

 

 

$

0.48

 

 

$

1.18

 

 

$

1.62

 

Adjusted earnings per share allocated to non-vested shares

 

$

0.04

 

 

$

0.07

 

 

$

0.15

 

 

$

0.26

 

Adjusted earnings per share attributable to common shareholders

 

$

0.31

 

 

$

0.41

 

 

$

1.03

 

 

$

1.36

 

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 Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross contract revenue

 

$

92,969

 

$

75,609

 

 

$

346,256

 

 

$

261,714

 

Contract costs (exclusive of depreciation and amortization)

 

 

46,132

 

 

36,177

 

 

 

170,223

 

 

 

126,586

 

Operating expense

 

 

50,530

 

 

38,855

 

 

 

176,689

 

 

 

130,008

 

(Loss) Income from operations

 

 

(3,693

)

 

577

 

 

 

(656

)

 

 

5,120

 

Other expense

 

 

1,939

 

 

1,297

 

 

 

5,791

 

 

 

3,384

 

Income tax expense (benefit)

 

 

2,078

 

 

(1,190

)

 

 

177

 

 

 

(3,269

)

Net (loss) income

 

$

(7,710

)

$

470

 

 

$

(6,624

)

 

$

5,005

 

Net margin

 

 

(8.3

) %

 

0.6

%

 

 

(1.9

) %

 

 

1.9

%

 

 

 

 

 

 

 

 

Other financial information 1

 

 

 

 

 

 

 

Net service billing

 

$

80,516

 

$

66,185

 

 

$

303,994

 

 

$

235,204

 

Adjusted EBITDA

 

 

11,249

 

 

9,415

 

 

 

47,031

 

 

 

34,022

 

Adjusted EBITDA margin, net

 

 

14.0

%

 

14.2

%

 

 

15.5

%

 

 

14.5

%

 

 

 

 

 

 

 

 

Gross Contract Revenue to Net Service Billing Reconciliation

 

For the Three Months Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross contract revenue

 

$

92,969

 

$

75,609

 

 

$

346,256

 

 

$

261,714

 

Less: sub-consultants and other direct expenses

 

 

12,453

 

 

9,424

 

 

 

42,262

 

 

 

26,510

 

Net service billing

 

$

80,516

 

$

66,185

 

 

$

303,994

 

 

$

235,204

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Reconciliation

 

For the Three Months Ended
December 31,

 

For the Year Ended
December 31,

 

 

 

2023

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net Service Billing

 

$

80,516

 

$

66,185

 

 

$

303,994

 

 

$

235,304

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(7,710

)

$

470

 

 

$

(6,624

)

 

$

5,005

 

+ interest expense

 

 

1,795

 

 

1,234

 

 

 

5,340

 

 

 

2,457

 

+ depreciation & amortization

 

 

5,939

 

 

3,901

 

 

 

18,723

 

 

 

12,251

 

+ tax (benefit) expense

 

 

2,078

 

 

(1,190

)

 

 

177

 

 

 

(3,269

)

EBITDA

 

$

2,102

 

$

4,415

 

 

$

17,616

 

 

$

16,444

 

+ non-cash stock compensation

 

 

6,504

 

 

3,922

 

 

 

24,984

 

 

 

15,409

 

+ settlements and other non-core expenses

 

 

310

 

 

439

 

 

 

1,170

 

 

 

654

 

+ acquisition expenses

 

 

2,333

 

 

639

 

 

 

3,261

 

 

 

1,515

 

Adjusted EBITDA

 

$

11,249

 

$

9,415

 

 

$

47,031

 

 

$

34,022

 

Adjusted EBITDA margin, net

 

 

14.0

%

 

14.2

%

 

 

15.5

%

 

 

14.5

%

 

 

 

 

 

 

 

 

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

(Unaudited)

 

 

 

 

 

 

 

 

(dollars in thousands)

For the Three Months Ended December 31,

Consolidated Gross Revenue

2023

%

2022

%

Change

% Change

Building Infrastructure

49,967

53.7 %

44,338

58.6 %

5,629

12.7 %

Transportation

21,202

22.8 %

18,382

24.3 %

2,820

15.3 %

Power and Utilities

16,684

17.9 %

8,302

11.0 %

8,382

101.0 %

Emerging Markets1

5,116

5.6 %

4,587

6.1 %

529

11.5 %

Total

92,969

100.0 %

75,609

100.0 %

17,360

23.0 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

For the Year Ended December 31,

Consolidated Gross Revenue

2023

%

2022

%

Change

% Change

Building Infrastructure

194,867

56.3 %

170,431

65.1 %

24,436

14.3 %

Transportation

72,829

21.0 %

44,846

17.1 %

27,983

62.4 %

Power and Utilities

64,156

18.5 %

32,672

12.5 %

31,484

96.4 %

Emerging Markets1

14,404

4.2 %

13,765

5.3 %

639

4.6 %

Total

346,256

100.0 %

261,714

100.0 %

84,542

32.3 %

 

 

 

 

 

 

 

 

 

(dollars in thousands)

For the Three Months Ended December 31,

Organic v Acquired Revenue 2

2023

%

2022

%

Change

% Change

Baseline organic revenue

79,974

86.0 %

75,609

100.0 %

4,366

5.8 %

Acquired revenue

12,995

14.0 %

n/a

n/a

n/a

Total

92,969

100.0 %

75,609

100.0 %

4,366

5.8 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

For the Year Ended December 31,

Organic v Acquired Revenue 2

2023

%

2022

%

Change

% Change

Baseline organic revenue

315,759

91.2 %

261,714

100.0 %

54,045

20.7 %

Acquired revenue

30,497

8.8 %

n/a

n/a

n/a

Total

346,256

100.0 %

261,714

100.0 %

54,045

20.7 %

 

 

 

 

 

 

 

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 from previously reported numbers

BOWMAN CONSULTING GROUP LTD.

GROSS BACKLOG BY CATEGORY AT DECEMBER 31, 2023

(Unaudited)

 

Category

Percentage

Building Infrastructure

55 %

Transportation

24 %

Power and Utilities

17 %

Emerging Markets

4 %

TOTAL

100 %

 

Investor Relations Contacts:

Bruce Labovitz

ir@bowman.com

(703) 464-1029

Betsy Patterson

ir@bowman.com

(310) 622-8227

Source: Bowman Consulting Group

FAQ

What is the ticker symbol for Bowman Consulting Group Ltd.?

The ticker symbol for Bowman Consulting Group Ltd. is BWMN.

What were Bowman's net service billing results for the fiscal year 2023?

Bowman reported over $300 million in net service billing for the fiscal year 2023.

How many acquisitions did Bowman complete in 2023?

Bowman completed 11 acquisitions in 2023, totaling approximately $60 million in annualized net service billing.

What is Bowman's goal regarding its position in the engineering industry?

Bowman aims to become one of the 50 largest domestic engineering firms.

What is Bowman's approach to integrating acquired organizations?

Bowman is committed to weaving together acquired organizations into one common culture.

Bowman Consulting Group Ltd.

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