Bowman Announces Fiscal Year 2023 Financial Results
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.
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.
03/11/2024 - 04:05 PM
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 %
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311475972/en/
Investor Relations Contacts:
Bruce Labovitz
ir@bowman.com
(703) 464-1029
Betsy Patterson
ir@bowman.com
(310) 622-8227
Source: Bowman Consulting Group
The ticker symbol for Bowman Consulting Group Ltd. is BWMN.
Bowman reported over $300 million in net service billing for the fiscal year 2023.
Bowman completed 11 acquisitions in 2023, totaling approximately $60 million in annualized net service billing.
Bowman aims to become one of the 50 largest domestic engineering firms.
Bowman is committed to weaving together acquired organizations into one common culture.