Business Wire | Aug 11, 2021 04:06PM EDT

Bowman Consulting Group Announces Second Quarter 2021 Financial Results

Aug. 11, 2021

RESTON, Va.--(BUSINESS WIRE)--Aug. 11, 2021--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 six months ended June 30, 2021, which include record revenue.

"I am extremely pleased with our results for the second quarter and the progress we are making as we execute on our commitment to deliver long-term shareholder value," said Gary Bowman, Chairman and CEO of Bowman. "In May we completed our IPO and once again turned our attention to achieving increased scale through organic growth and acquisitions. We delivered record revenue in the second quarter and continue to expand backlog with a strong pace of new contracts and assignments. We recently closed on our first acquisition as a public company and are encouraged by our current pipeline of M&A opportunities."

Financial highlights of the three months ended June 30, 2021:

* Gross revenue of $36.5 million, a year-over-year increase of 15% * Net service billing1 of $32.5 million, a year-over-year increase of 20% * Adjusted EBITDA1of $4.2 million * Adjusted EBITDA margin, net1 of 12.9% * Net loss of $0.4 million * Net income of $1.0 million as adjusted for $1.4 million one-time IPO expenses * Acquisitions contributed $2.6 million, or 7%, of gross revenue * Backlog1 increased to $124 million, an increase of 7% from March 31, 2021

Financial highlights of the six months ended June 30, 2021:

* Gross revenue of $68.3 million, a year-over-year increase of 13% * Net service billing1 of $61.3 million, a year-over-year increase of 18% * Adjusted EBITDA1of $8.3 million, a year-over-year increase of 23% * Adjusted EBITDA margin, net1 of 13.5%, up from 12.9% in the first six months of 2020 * Net income of $0.5 million * Net income of $1.9 million as adjusted for $1.4 million one-time IPO expenses * Acquisitions contributed $4.5 million, or 7% of gross revenue

Other Recent Business Highlights:

* Closed on McFarland-Dyer & Associates acquisition in Atlanta on August 3, 2021 * Renewed revolving credit facility with Bank of America on favorable terms

Year-End Guidance:

The Company is introducing its full year 2021 outlook for Net Service Billing1 to be in the range of $125 to $130 million with Adjusted EBITDA expected to be in the range of $15.0 to $15.6 million. The current outlook is based on completed acquisitions as of the date of this release and does not include the benefit of any future acquisitions. The Company expects to continue making strategically and financially accretive acquisitions that are not yet reflected in this current 2021 guidance or outlook.

"Adding back $1.4 million of one-time IPO related expenses, our net income was $1.0 million for the quarter and $1.9 million year to date. We expect to grow net service billing by 20% to 25% in 2021, including nearly 14% organic growth at the midpoint of our revenue range," said Bruce Labovitz, Chief Financial Officer of Bowman. "This is a transitional year for Bowman as we absorb the incremental cost of being a public company. Post-IPO, our priority is to utilize our increased capital to further scale our business. This increased scale should allow us meaningful opportunities to expand margin, profitability, and operating cash flow. Our impressive top line growth year-to-date, accompanied by increasing adjusted EBITDA, sets a solid foundation for delivering positive financial results in 2021 and beyond."

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

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

Q1 2021 Earnings Webcast

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

Date: August 12, 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

(Amounts in thousands except per share data)

(Unaudited)

For the Three Months For the Six Months Ended June 30, Ended June 30,

2021 2020 2021 2020

Gross Contract Revenue $ 36,524 $ 31,749 $ 68,326 $ 60,360

Contract costs:(exclusive ofdepreciation and amortizationbelow)

Direct payroll costs 14,123 12,059 27,345 23,694

Sub-consultants and 4,065 4,581 6,999 8,459 expenses

Total contract costs 18,188 16,640 34,344 32,153

Operating Expenses:

Selling, general and 17,204 12,082 29,953 24,168 administrative

Depreciation and 1,480 320 2,908 640 amortization

(Gain) loss on sale (27 ) - (53 ) (15 )

Total operating 18,657 12,402 32,808 24,793 expenses

Income (loss) from (321 ) 2,707 1,174 3,414 operations

Other (income) expense 187 (67 ) 392 (76 )

Income (loss) before (508 ) 2,774 782 3,490 tax expense

Income tax (benefit) (69 ) 1,157 240 1,447 expense

Net income (loss) $ (439 ) $ 1,617 $ 542 $ 2,043



Earnings allocated to - 100 93 96 non-vested shares

Net income (loss)attributable to common $ (439 ) $ 1,517 $ 449 $ 1,947 shareholders



Earnings (loss) per share

Basic $ (0.06 ) $ 0.27 $ 0.07 $ 0.35

Diluted $ (0.06 ) $ 0.27 $ 0.07 $ 0.35

Weighted average shares outstanding:

Basic 6,973,055 5,555,697 6,029,054 5,570,013

Diluted 6,973,055 5,591,118 6,029,054 5,605,434

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)



June 30, December 31, 2021 2020

(unaudited)

ASSETS

Current Assets

Cash and equivalents $ 38,545 $ 386

Accounts Receivable, net 33,323 24,183

Contract assets 7,538 7,080

Notes receivable - officers, employees, affiliates, 1,117 1,182 current portion

Prepaid and other current assets 3,406 2,271

Total current assets 83,929 35,102

Non-Current Assets

Property and equipment, net 16,843 15,357

Goodwill 11,723 9,179

Notes receivable 903 903

Notes receivable - officers, employees, affiliates, 1,281 1,297 less current portion

Other intangible assets, net 1,865 1,131

Other assets 736 669

Total Assets $ 117,280 $ 63,638

LIABILITIES AND EQUITY

Current Liabilities

Bank line of credit - 3,481

Accounts payable and accrued liabilities, current 18,140 12,203 portion

Contract liabilities 1,914 1,943

Notes payable, current portion 2,093 1,592

Deferred rent, current portion 680 619

Capital lease obligation, current portion 4,089 3,495

Total current liabilities 26,916 23,333

Non-Current Liabilities

Other non-current obligations 1,243 1,244

Notes payable, less current portion 3,717 2,829

Deferred rent, less current portion 4,226 4,278

Capital lease obligation, less current portion 7,904 7,503

Deferred tax liability, net 5,133 6,472

Common shares subject to repurchase 7 842

Total liabilities $ 49,146 $ 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 sharesauthorized; 13,273,673 shares issued and 11,092,245 133 2 outstanding, and 7,840,244 shares issued and5,744,594 outstanding, respectively

Additional paid-in-capital 110,218 58,866

Treasury Stock, at cost; 2,181,428 and 2,095,650, (17,117 ) (16,022 )respectively

Stock subscription notes receivable (542 ) (609 )

Accumulated deficit (24,558 ) (25,100 )

Total shareholders' equity $ 68,134 $ 17,137

TOTAL LIABILITIES AND EQUITY $ 117,280 $ 63,638

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended June 30,

2021 2020

Cash Flows from Operating Activities:

Net Income $ 542 $ 2,043

Adjustments to reconcile net income to net cashprovided by operating activities

Depreciation and amortization - property, plant and 2,771 501 equipment

Amortization of intangible assets 137 139

Gain on sale of assets (53 ) (15 )

Bad debt 251 276

Stock based compensation 2,707 536

Deferred taxes (1,340 ) 163

Deferred rent 9 319

Changes in operating assets and liabilities

Accounts Receivable (9,391 ) 201

Contract Assets (242 ) 5,113

Prepaid expenses (1,116 ) 958

Other Assets (66 ) (51 )

Accounts payable and accrued expenses 5,764 2,567

Contract Liabilities (445 ) (4,427 )

Net cash (used in) provided by operating activities (472 ) 8,323

Cash Flows from Investing Activities:

Purchases of property and equipment (757 ) (809 )

Proceeds from sale of assets and disposal of leases 53 15

Amounts advanced under loans to shareholders (374 ) (607 )

Payments received under loans to shareholders 81 145

Amounts advanced under notes receivable - (277 )

Acquisitions of businesses, net of cash acquired (640 ) -

Collections under stock subscription notes receivable 67 91

Net cash used in investing activities (1,570 ) (1,442 )

Cash Flows from Financing Activities:

Proceeds from initial public offering, net ofunderwriting discounts and 47,104 - commissions and other offering costs

Net borrowings under revolving line of credit (3,481 ) (7,231 )

Repayments under fixed line of credit (359 ) (178 )

Borrowings under fixed line of credit - 1,985

Repayment under notes payable (454 ) (613 )

Payments on capital leases (2,052 ) (141 )

Payment of contingent consideration from acquisitions (2 ) (17 )

Payments for purchase of treasury stock (582 ) -

Proceeds from issuance of common stock 27 28

Net cash provided by (used in) financing activities 40,201 (6,167 )

Net increase in cash and cash equivalents 38,159 714

Cash and cash equivalents, beginning of period 386 509

Cash and cash equivalents, end of period $ 38,545 $ 1,223

BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands except per share data)

(Unaudited)

For the Three Months Ended June 30,

Net Service Billing 2021 2020

Gross revenue $ 36,524 $ 31,749

Less: sub-consultants and other direct 4,065 4,581 expenses

Net services billing $ 32,459 $ 27,168

For the Three Months Ended June 30,

Adjusted EBITDA

2021

2020

$ Change

% Change

Net Income

$

(439

)

$

1,617

$

(2,056

)

-127.2

%

+ interest expense

215

100

115

115.0

%

+ depreciation & amortization

1,480

320

1,160

362.5

%

+ tax expense

(69

)

1,157

(1,226

)

-106.0

%

EBITDA

$

1,187

$

3,194

$

(2,007

)

-62.8

%

+ non-recurring operating lease rent

-

842

(842

)

-100.0

%

+ non-cash stock compensation

1,558

1,079

479

44.4

%

+ transaction related expenses

1,440

-

1,440

100.0

%

Adjusted EBITDA

$

4,185

$

5,115

$

(930

)

-18.2

%

Adjusted EBITDA margin, net

12.9

%

18.8

%

For the Three Months Ended June 30,

Adjusted EBITDA 2021 2020 $ Change % Change

Net Income $ (439 ) $ 1,617 $ (2,056 ) -127.2 %

+ interest expense 215 100 115 115.0 %

+ depreciation & 1,480 320 1,160 362.5 %amortization

+ tax expense (69 ) 1,157 (1,226 ) -106.0 %

EBITDA $ 1,187 $ 3,194 $ (2,007 ) -62.8 %

+ non-recurring - 842 (842 ) -100.0 %operating lease rent

+ non-cash stock 1,558 1,079 479 44.4 %compensation

+ transaction related 1,440 - 1,440 100.0 %expenses

Adjusted EBITDA $ 4,185 $ 5,115 $ (930 ) -18.2 %

Adjusted EBITDA margin, 12.9 % 18.8 % net

For the Six Months Ended June 30,

Net Service Billing

2021

2020

Gross revenue

$

68,326

$

60,360

Less: sub-consultants and other direct expenses

6,999

8,459

Net services billing

$

61,327

$

51,901

For the Six Months Ended June 30,

Net Service Billing 2021 2020

Gross revenue $ 68,326 $ 60,360

Less: sub-consultants and other direct 6,999 8,459 expenses

Net services billing $ 61,327 $ 51,901

For the Six Months Ended June 30,

Adjusted EBITDA

2021

2020

$ Change

% Change

Net Income

$

542

$

2,043

$

(1,501

)

-73.5

%

+ interest expense

434

249

185

74.3

%

+ depreciation & amortization

2,908

640

2,268

354.4

%

+ tax expense

240

1,447

(1,207

)

-83.4

%

EBITDA

$

4,124

$

4,379

$

(255

)

-5.8

%

+ non-recurring operating lease rent

-

1,789

(1,789

)

-100.0

%

+ non-cash stock compensation

2,707

536

2,171

405.0

%

+ transaction related expenses

1,440

-

1,440

100.0

%

Adjusted EBITDA

$

8,271

$

6,704

$

1,567

23.0

%

Adjusted EBITDA margin, net

13.5

%

12.9

%

For the Six Months Ended June 30,

Adjusted EBITDA 2021 2020 $ Change % Change

Net Income $ 542 $ 2,043 $ (1,501 ) -73.5 %

+ interest expense 434 249 185 74.3 %

+ depreciation & 2,908 640 2,268 354.4 %amortization

+ tax expense 240 1,447 (1,207 ) -83.4 %

EBITDA $ 4,124 $ 4,379 $ (255 ) -5.8 %

+ non-recurring operating - 1,789 (1,789 ) -100.0 %lease rent

+ non-cash stock 2,707 536 2,171 405.0 %compensation

+ transaction related 1,440 - 1,440 100.0 %expenses

Adjusted EBITDA $ 8,271 $ 6,704 $ 1,567 23.0 %

Adjusted EBITDA margin, 13.5 % 12.9 % net

Backlog June 30, 2021 December 31, 2020

Communities, homes & buildings 50 % 43 %

Transportation 25 % 28 %

Power & Utilities 21 % 25 %

Other emerging markets 4 % 4 %

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands except per share data)

(Unaudited)

For the Three Months Ended June 30,

Consolidated Gross Contract Revenue

2021

%GCR

2020

%GCR

Change

% Change

Communities, homes & buildings

$

25,187

69.0

%

$

19,571

61.6

%

$

5,616

28.7

%

Transportation

4,174

11.4

%

5,406

17.0

%

(1,232

)

(22.8

%)

Power & Utilities

6,184

16.9

%

5,477

17.3

%

707

12.9

%

Other emerging markets 1

979

2.7

%

1,295

4.1

%

(316

)

-24.4

%

Total:

$

36,524

100.0

%

$

31,749

100.0

%

$

4,775

15.0

%

Organic and Acquired Gross Contract Revenue

2021

%GCR

2020

%GCR

Change

% Change

Organic

$

33,957

93.0

%

$

31,749

100.0

%

$

2,208

7.0

%

Acquired

2,567

7.0

%

-

0.0

%

2,567

100.0

%

Total:

$

36,524

100.0

%

$

31,749

100.0

%

$

4,775

15.0

%

1 represents renewable energy, mining, water resources and other

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands except per share data)

(Unaudited)

For the Three Months Ended June 30,

Consolidated %Gross Contract 2021 %GCR 2020 %GCR Change Change Revenue

Communities,homes & $ 25,187 69.0 % $ 19,571 61.6 % $ 5,616 28.7 %buildings

Transportation 4,174 11.4 % 5,406 17.0 % (1,232 ) (22.8 %)

Power & 6,184 16.9 % 5,477 17.3 % 707 12.9 %Utilities

Other emerging 979 2.7 % 1,295 4.1 % (316 ) -24.4 %markets ^1

Total: $ 36,524 100.0 % $ 31,749 100.0 % $ 4,775 15.0 %





Organic andAcquired Gross 2021 %GCR 2020 %GCR Change % Contract ChangeRevenue

Organic $ 33,957 93.0 % $ 31,749 100.0 % $ 2,208 7.0 %

Acquired 2,567 7.0 % - 0.0 % 2,567 100.0 %

Total: $ 36,524 100.0 % $ 31,749 100.0 % $ 4,775 15.0 %



^1 represents renewable energy, mining, water resources and other

For the Six Months Ended June 30,

Consolidated Gross Contract Revenue

2021

%GCR

2020

%GCR

Change

% Change

Communities, homes & buildings

$

46,224

67.7

%

$

36,009

59.7

%

$

10,215

28.4

%

Transportation

8,295

12.1

%

10,287

17.0

%

(1,992

)

(19.4

%)

Power & Utilities

11,230

16.4

%

11,190

18.5

%

40

0.4

%

Other emerging markets 1

2,577

3.8

%

2,874

4.8

%

(297

)

-10.3

%

Total:

$

68,326

100.0

%

$

60,360

100.0

%

$

7,966

13.2

%

Organic and Acquired Gross Contract Revenue

2021

%GCR

2020

%GCR

Change

% Change

Organic

$

63,836

93.4

%

$

60,360

100.0

%

$

3,476

5.8

%

Acquired

4,490

6.6

%

-

0.0

%

4,490

100.0

%

Total:

$

68,326

100.0

%

$

60,360

100.0

%

$

7,966

13.2

%

1 represents renewable energy, mining, water resources and other

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005841/en/

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

CONTACT: Megan McGrath mmcgrath@finprofiles.com (310) 622-8248