false 0001847590 0001847590 2024-08-06 2024-08-06

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2024

 

 

Bowman Consulting Group Ltd.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-40371   54-1762351

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

12355 Sunrise Valley Drive, Suite 520

Reston, Virginia 20191

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (703) 464-1000

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

 

Trading

Symbol(s)

 

Name of Each Exchange

on Which Registered

Common stock, par value $0.01 per share   BWMN   Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 


Item 2.02.

Results of Operations and Financial Condition.

On August 6, 2024, Bowman Consulting Group Ltd. (“Bowman” or the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Report.

The information in this Report under this item, including the exhibit, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that section. Furthermore, the information in this Report, including the exhibits, shall not be deemed to be incorporated by reference into the Company’s filings under the Securities Act of 1933, as amended.


Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit
No.
   Description
99.1    Bowman Consulting Group Ltd. press release dated August 6, 2024.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    BOWMAN CONSULTING GROUP LTD.
Date: August 7, 2024     By:  

/s/ Bruce Labovitz

      Bruce Labovitz
      Chief Financial Officer

Exhibit 99.1

 

LOGO

Bowman Announces Financial Results for Three and Six Months Ended June 30, 2024

Reston, Va., August 6, 2024 (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 three and six months ended June 30, 2024.

“Despite challenges we faced this quarter with conversion of awards to revenue, our sales are strong, our backlog is growing, and our M&A pipeline remains robust,” said Gary Bowman, Chairman and CEO of Bowman. “We believe the infrastructure design and engineering market continues to present positive demand signals supported by significant funding as evidenced by our backlog being up nearly 5% from the end of last quarter and 19% year-over-year, excluding backlog acquired in Q2. We have been notified of selection on multiple large transportation projects which are taking longer than expected to work their way through the final contracting and notice to proceed process, delaying our ability to begin our work and earn the associated revenue. We remain optimistic that several of these will commence in earnest during the second half of the year. We continue to focus on sustainable, long-term organic revenue growth and margin improvement, and I am confident that adjustments we are making with respect to market focus and labor will benefit our ability to deliver improvements on both fronts throughout the remainder of this year and into 2025.”

“Acquisitive growth continues to be a significant ingredient in our long-term strategy,” continued Bowman. “Nonetheless, we recognize that organic growth remains a critical element of our success. Our diversification into transportation, power and utilities, water, mining and other emerging markets has contributed to a decreasing concentration of building infrastructure in our business and is paying dividends. Excluding all acquisitions closed during 2023 and 2024, year-over-year organic growth from non-building infrastructure verticals during the first half of 2024 was approximately 14% when compared to the same period last year. This gain was unfortunately offset by organic contraction of our building infrastructure vertical during the same period, excluding the same acquisitions. While we have continued to deliver strong nominal growth in our building infrastructure practice through acquisitions, we believe a lower interest rate environment will release sufficient pent-up demand to generate a rebound in organic growth.”

Financial Results for the Three Months Ended June 30, 2024, Compared to June 30, 2023:

 

   

Gross contract revenue of $104.5 million, compared to $82.8 million, a 26% increase

 

   

Year-over-year increase in organic gross revenue1 of 5%

 

   

Net service billing2 of $94.0 million, compared to $73.8 million, a 27% increase

 

   

Year-over-year increase in organic net service billing1 of 6%

 

   

Net loss of $2.0 million3, compared to net loss of $0.6 million

 

   

Adjusted EBITDA2 of $13.4 million, compared to $11.1 million, a 21% increase

 

   

Adjusted EBITDA margin, net 2 of 14.3% compared to 15.0%, a 70-bps decrease

Financial Results for the Six Months Ended June 30, 2024, Compared to June 30, 2023:

 

   

Gross contract revenue of $199.4 million, compared to $158.9 million, a 25% increase

 

   

Year-over-year increase in organic gross revenue1 of 9%

 

   

Net service billing2 of $179.7 million, compared to $141.4 million, a 27% increase

 

   

Year-over-year increase in organic net service billing1 of 10%

 

   

Net loss of $3.6 million3, compared to net loss of $0.1 million

 

   

Adjusted EBITDA2 of $25.5 million, compared to $20.7 million, a 23% increase

 

   

Adjusted EBITDA margin, net 2 of 14.2% compared to 14.7%, a 50-bps decrease

 

   

Gross backlog2 of $352 million, compared to $295 million, a 19% increase


Items of Note During the Quarter:

 

   

On April 1, 2024, the Company closed on a $51 million equity offering

 

   

On April 4, 2024, the Company closed on the acquisition of Surdex Corporation

 

   

On April 17, 2024, the Company closed on the acquisition of Moore Consulting Engineers

 

   

On May 2, 2024, the Company closed on a new $100 million accordion-style syndicated revolving credit facility with Bank of America, N.A. and TD Bank, N.A., replacing the Company’s $70 million facility with Bank of America

 

   

On May 3, 2024, the Company closed on a new $11 million cash-out refinancing of its Surdex aviation assets

 

   

Reversed uncertain tax position (UTP) with respect to changes to Section 174 R&D expense deductibility

Subsequent Events of Note:

 

   

On July 11, 2024, the Company closed on the acquisition of Element Engineering

 

   

On July 17, 2024, the Company closed on the acquisition of FCS Group

Non-GAAP Adjusted Earnings per Share:

In connection with the release of financial results the Company reported the non-GAAP financial metric of Adjusted (Loss) Earnings per Share3 (“Adjusted EPS”) as follows:

For the three months ended June 30, 2024, compared to June 30, 2023:

 

   

Basic Adjusted EPS was ($0.03) compared to $0.15

 

   

Diluted Adjusted EPS was ($0.03) compared to $0.13

For the six months ended June 30, 2024, compared to June 30, 2023:

 

   

Basic Adjusted EPS was $0.17 compared to $0.43

 

   

Diluted Adjusted EPS was $0.16 compared to $0.39

Updating FY 2024 Guidance

The Company is adjusting its full year 2024 outlook for net service billing2 to be in the range of $375 to $385 million and Adjusted EBITDA2 to be in the range of $58 to $63 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.

Q2 2024 Earnings Webcast

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

 

Date:

 

Time:

 

Hosts:

 

Where:

  

August 7, 2024

 

9:00 a.m. Eastern Time

 

Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer

 

http://investors.bowman.com


1 Calculation excludes revenue from acquisitions closed after 06/30/23 with revenue recognized from acquisitions closed on or before 06/30/23 reclassified as non-acquisition revenue in prior periods. Allocation of revenue to integrated acquired companies is based solely on performance of work. Calculation of organic growth does not include or contemplate any pro-forma normalization of revenue from acquisitions prior to closing.

2 Non-GAAP financial metric the Company believes offers valuable perspective on results of operations. See Non-GAAP tables below for reconciliations.

3 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.

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 2,200 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.

Investor Relations Contacts:

 

Bruce Labovitz

 

ir@bowman.com

 

(703) 464-1029

  

Betsy Patterson

 

ir@bowman.com

 

(310) 622-8227

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.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

 

     June 30,
2024
    December 31,
2023
 
     (Unaudited)        

ASSETS

    

Current Assets

    

Cash and equivalents

   $ 23,143     $ 20,687  

Accounts receivable, net

     99,368       87,565  

Contract assets

     42,193       33,520  

Notes receivable - officers, employees, affiliates, current portion

     1,151       1,199  

Prepaid and other current assets

     9,544       11,806  
  

 

 

   

 

 

 

Total current assets

     175,399       154,777  

Non-Current Assets

    

Property and equipment, net

     44,636       27,601  

Operating lease, right-of-use assets

     40,316       40,743  

Goodwill

     123,587       96,393  

Notes receivable

     903       903  

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

     1,113       1,119  

Other intangible assets, net

     55,840       46,294  

Deferred tax asset, net

     20,166       33,780  

Other assets

     1,427       1,175  
  

 

 

   

 

 

 

Total Assets

   $ 463,387     $ 402,785  
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Current Liabilities

    

Revolving credit facility

     27,848       45,290  

Accounts payable and accrued liabilities

     69,163       44,394  

Contract liabilities

     7,873       7,481  

Notes payable, current portion

     15,169       13,989  

Operating lease obligation, less current portion

     10,059       9,016  

Finance lease obligation, current portion

     9,182       6,586  
  

 

 

   

 

 

 

Total current liabilities

     139,294       126,756  

Non-Current Liabilities

    

Other non-current obligations

     5,353       42,288  

Notes payable, less current portion

     22,541       13,738  

Operating lease obligation, less current portion

     36,332       37,660  

Finance lease obligation, less current portion

     19,099       14,408  

Pension and post-retirement obligation, less current portion

     5,184       4,654  
  

 

 

   

 

 

 

Total liabilities

   $ 227,803     $ 239,504  
  

 

 

   

 

 

 

Shareholders’ Equity

    

Preferred Stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding as of June 30, 2024 and December 31, 2023

     —        —   

Common stock, $0.01 par value; 30,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 20,570,916 shares issued and 17,599,049 outstanding, and 17,694,495 shares issued and 15,094,278 outstanding as of June 30, 2024 and December 31, 2023, respectively

     206       177  

Additional paid-in-capital

     303,453       215,420  

Accumulated other comprehensive income

     569       590  

Treasury stock, at cost; 2,971,867 and 2,600,217, respectively

     (38,531     (26,410

Stock subscription notes receivable

     (53     (76

Accumulated deficit

     (30,060     (26,420
  

 

 

   

 

 

 

Total shareholders’ equity

   $ 235,584     $ 163,281  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND EQUITY

   $ 463,387     $ 402,785  
  

 

 

   

 

 

 


BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands except per share data)

(Unaudited)

 

     For the Three Months
Ended June 30,
    For the Six Months
Ended June 30,
 
     2024     2023     2023     2022  

Gross Contract Revenue

   $ 104,501     $ 82,755     $ 199,409     $ 158,855  

Contract costs: (exclusive of depreciation and amortization below)

        

Direct payroll costs

     39,096       32,075       76,776       60,919  

Sub-consultants and expenses

     10,520       8,963       19,738       17,501  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total contract costs

     49,616       41,038       96,514       78,420  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses:

        

Selling, general and administrative

     49,154       38,340       93,874       71,965  

Depreciation and amortization

     7,181       4,719       13,177       8,285  

(Gain) on sale

     (215     (226     (311     (237
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     56,120       42,833       106,740       80,013  
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income from operations

     (1,235     (1,116     (3,845     422  
  

 

 

   

 

 

   

 

 

   

 

 

 

Other expense

     2,027       1,143       4,428       2,358  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before tax expense

     (3,262     (2,259     (8,273     (1,936

Income tax (benefit)

     (1,180     (1,625     (4,633     (1,839
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (2,082   $ (634   $ (3,640   $ (97
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings allocated to non-vested shares

     —        —        —        —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to common shareholders

   $ (2,082   $ (634   $ (3,640   $ (97
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share

        

Basic

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Diluted

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Weighted average shares outstanding:

        

Basic

     16,301,926       12,276,173       15,064,827       12,022,550  

Diluted

     16,301,926       12,276,173       15,064,827       12,022,550  


BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     For the Six Months Ended June 30,  
      2024       2023   

Cash Flows from Operating Activities:

    

Net Loss

   $ (3,640   $ (97

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

    

Depreciation and amortization - property, plant and equipment

     6,023       4,620  

Amortization of intangible assets

     7,154       3,665  

Gain on sale of assets

     (311     (237

Credit losses

     656       289  

Stock based compensation

     13,876       11,169  

Accretion of discounts on notes payable

     307       264  

Deferred taxes

     5,348       (7,339

Changes in operating assets and liabilities

    

Accounts receivable

     (6,080     (10,885

Contract assets

     (4,366     (5,267

Prepaid expenses and other assets

     4,063       (4,174

Accounts payable and accrued expenses

     (15,633     9,535  

Contract liabilities

     (1,809     523  
  

 

 

   

 

 

 

Net cash provided by operating activities

     5,588       2,066  

Cash Flows from Investing Activities:

    

Purchases of property and equipment

     (600     (632

Fixed assets converted to lease financing

     (29     —   

Proceeds from sale of assets and disposal of leases

     317       237  

Payments received under loans to shareholders

     54       108  

Acquisitions of businesses, net of cash acquired

     (20,347     (15,408

Collections under stock subscription notes receivable

     23       48  
  

 

 

   

 

 

 

Net cash used in investing activities

     (20,582     (15,647
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

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

     47,151       —   

(Repayments) Borrowings under revolving credit facility

     (17,441     21,189  

Repayments under fixed line of credit

     (345     (283

Proceeds from notes payable

     6,209      
— 
 

Repayment under notes payable

     (7,464     (4,743

Proceeds from finance leases

     4,567       —   

Payments on finance leases

     (4,053     (3,309

Payments for purchase of treasury stock

     (10,037     (3,586

Repurchases of common stock

     (2,084     —   

Proceeds from issuance of common stock

     947       777  
  

 

 

   

 

 

 

Net cash used in financing activities

     17,450       10,045  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     2,456       (3,536
  

 

 

   

 

 

 

Cash and cash equivalents, beginning of period

     20,687       13,282  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 23,143     $ 9,746  
  

 

 

   

 

 

 

Supplemental disclosures of cash flow information:

    

Cash paid for interest

   $ 3,457     $ 1,547  
  

 

 

   

 

 

 

Cash paid for income taxes

   $ 1,552     $ 745  
  

 

 

   

 

 

 

Non-cash investing and financing activities

    

Property and equipment acquired under finance lease

   $ (6,755   $ (4,385
  

 

 

   

 

 

 

Note payable converted to common shares

   $ (2,696   $ —   
  

 

 

   

 

 

 

Issuance of notes payable for acquisitions

   $ (13,636   $ (7,825
  

 

 

   

 

 

 

Issuance of contingent considerations

   $ (1,504   $ —   
  

 

 

   

 

 

 

Settlement of contingent consideration

   $ 567     $ —   
  

 

 

   

 

 

 


BOWMAN CONSULTING GROUP LTD.

RECONCILIATION OF EPS TO ADJUSTED EPS

(Amounts in thousands except per share data)

 

     For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2024     2023  

Net loss (GAAP)

   $ (2,082   $ (634   $ (3,640   $ (97

+ tax (benefit) (GAAP)

     (1,180     (1,625     (4,633     (1,839
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before tax expense (GAAP)

   $ (3,262   $ (2,259   $ (8,273   $ (1,936

+ acquisition related expenses

     1,936       772       3,286       1,621  

+ amortization of intangibles

     3,815       2,296       7,154       3,665  

+ non-cash stock comp related to pre-IPO

     1,121       1,742       2,678       3,464  

+ other non-core expenses

     414       113       813       113  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted income before tax expense

   $ 4,024     $ 2,664     $ 5,658     $ 6,927  

Adjusted income tax expense

     4,593       550       2,933       1,046  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income

   $ (569   $ 2,114     $ 2,725     $ 5,881  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings allocated to non-vested shares

     —        285       229       773  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net (loss) income attributable to common shareholders

   $ (569   $ 1,829     $ 2,496     $ 5,108  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss per share (GAAP)

        

Basic

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Diluted

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Adjusted (loss) earnings per share (Non-GAAP)

        

Basic

   $ (0.03   $ 0.15     $ 0.17     $ 0.43  

Diluted

   $ (0.03   $ 0.13     $ 0.16     $ 0.39  

Weighted average shares outstanding

        

Basic

     16,301,926       12,276,173       15,064,827       12,022,550  

Diluted

     16,301,926       13,176,766       15,766,765       12,930,018  
Basic Adjusted (Loss) Earnings Per Share Summary - Non-GAAP    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2024     2023  

Loss per share (GAAP)

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Pre-tax basic per share adjustments

   $ 0.38     $ 0.27     $ 0.62     $ 0.59  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per share before tax expense

   $ 0.25     $ 0.22     $ 0.38     $ 0.58  

Tax expense per share adjustment

   $ 0.28     $ 0.04     $ 0.19     $ 0.08  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (loss) earnings per share - adjusted net income

   $ (0.03   $ 0.18     $ 0.19     $ 0.50  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per share allocated to non-vested shares

   $ —      $ 0.03     $ 0.02     $ 0.07  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (loss) earnings per share attributable to common shareholders

   $ (0.03   $ 0.15     $ 0.17     $ 0.43  
  

 

 

   

 

 

   

 

 

   

 

 

 
Diluted Adjusted (Loss) Earnings Per Share Summary - Non-GAAP    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2024     2023  

Loss per share (GAAP)

   $ (0.13   $ (0.05   $ (0.24   $ (0.01

Pre-tax diluted per share adjustments

   $ 0.38     $ 0.25     $ 0.60     $ 0.55  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per share before tax expense

   $ 0.25     $ 0.20     $ 0.36     $ 0.54  

Tax expense per share adjustment

   $ 0.28     $ 0.05     $ 0.19     $ 0.09  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (loss) earnings per share - adjusted net (loss) income

   $ (0.03   $ 0.15     $ 0.17     $ 0.45  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings per share allocated to non-vested shares

   $ —      $ 0.02     $ 0.01     $ 0.06  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (loss) earnings per share attributable to common shareholders

   $ (0.03   $ 0.13     $ 0.16     $ 0.39  
  

 

 

   

 

 

   

 

 

   

 

 

 


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
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2023     2022  

Gross contract revenue

   $ 104,501     $ 82,755     $ 199,409     $ 158,855  

Contract costs (exclusive of depreciation and amortization)

     49,616       41,038       96,514       78,420  

Operating expense

     56,120       42,833       106,740       80,013  
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) Income from operations

     (1,235     (1,116   $ (3,845   $ 422  

Other expense

     2,027       1,143       4,428       2,358  

Income tax (benefit)

     (1,180     (1,625     (4,633     (1,839
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (2,082   $ (634   $ (3,640   $ (97
  

 

 

   

 

 

   

 

 

   

 

 

 

Net margin

     (2.0 )%      (0.8 )%      (1.8 )%      (0.1 )% 

Other financial information1

        

Net service billing

   $ 93,981     $ 73,792     $ 179,671     $ 141,354  

Adjusted EBITDA

     13,412       11,053       25,541       20,725  

Adjusted EBITDA margin, net

     14.3     15.0     14.2     14.7
Gross Contract Revenue to Net Service Billing Reconciliation    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2023     2022  

Gross contract revenue

   $ 104,501     $ 82,755     $ 199,409     $ 158,855  

Less: sub-consultants and other direct expenses

     10,520       8,963       19,738       17,501  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net service billing

   $ 93,981     $ 73,792     $ 179,671     $ 141,354  
Adjusted EBITDA Reconciliation    For the Three Months Ended
June 30,
    For the Six Months Ended
June 30,
 
     2024     2023     2023     2022  

Net Service Billing

   $ 93,981     $ 73,792     $ 179,671     $ 141,354  

Net loss

   $ (2,082   $ (634   $ (3,640   $ (97

+ interest expense

     1,775       1,112       3,906       2,007  

+ depreciation & amortization

     7,181       4,719       13,177       8,285  

+ tax (benefit)

     (1,180     (1,625     (4,633     (1,839
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 5,694     $ 3,572     $ 8,810     $ 8,356  

+ non-cash stock compensation

     6,077       6,888       13,938       11,322  

+ transaction related expenses

     —        123       —        123  

+ settlements and other non-core expenses

     414       113       813       113  

+ acquisition expenses

     1,227       357       1,980       811  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 13,412     $ 11,053     $ 25,541     $ 20,725  

Adjusted EBITDA margin, net

     14.3     15.0     14.2     14.7

 

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)

 

     For the Three Months Ended June 30,  
(dollars in thousands)    2024      %     2023      %     Change      %  
Consolidated Gross Revenue                

Building Infrastructure

     55,903        53.5     48,616        58.7     7,287        15.0

Transportation

     19,233        18.4     15,870        19.2     3,363        21.2

Power and Utilities

     19,456        18.6     15,585        18.8     3,871        24.8

Other Emerging Markets1

     9,909        9.5     2,684        3.3     7,225        269.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     104,501        100.0     82,755        100.0     21,746        26.3
     For the Three Months Ended June 30,  
(dollars in thousands)    2024      %     2023      %     Change      % Change  

Organic v Acquired Revenue

               

Organic

     87,072        83.3     82,755        100.0     4,317        5.2

Acquired2

     17,429        16.7     —         —      17,429        n/a  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     104,501        100.0     82,755        100.0     21,746        26.3
     For the Six Months Ended June 30,  
(dollars in thousands)    2024      %     2023      %     Change      %  

Consolidated Gross Revenue

               

Building Infrastructure

     108,689        54.5     92,953        58.5     15,736        16.9

Transportation

     37,361        18.7     31,889        20.1     5,472        17.2

Power and Utilities

     37,923        19.0     28,909        18.2     9,014        31.2

Emerging Markets1

     15,436        7.8     5,104        3.2     10,332        202.4
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     199,409        100.0     158,855        100.0     40,554        25.5
     For the Six Months Ended June 30,  
(dollars in thousands)    2024      %     2023      %     Change      % Change  

Organic v Acquired Revenue2

               

Organic

     172,974        86.7     158,855        100.0     14,119        8.9

Acquired2

     26,435        13.3     —         —      26,435        n/a  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total

     199,409        100.0     158,855        100.0     40,554        25.5

 

represents environmental, mining, water resources and other.

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 JUNE 30, 2024

(Unaudited)

 

Category

   Percentage  

Building Infrastructure

     48

Transportation

     27

Power and Utilities

     16

Emerging Markets

     9
  

 

 

 

TOTAL

     100
  

 

 

 
v3.24.2.u1
Document and Entity Information
Aug. 06, 2024
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001847590
Document Type 8-K
Document Period End Date Aug. 06, 2024
Entity Registrant Name Bowman Consulting Group Ltd.
Entity Incorporation State Country Code DE
Entity File Number 001-40371
Entity Tax Identification Number 54-1762351
Entity Address, Address Line One 12355 Sunrise Valley Drive
Entity Address, Address Line Two Suite 520
Entity Address, City or Town Reston
Entity Address, State or Province VA
Entity Address, Postal Zip Code 20191
City Area Code (703)
Local Phone Number 464-1000
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Common stock, par value $0.01 per share
Trading Symbol BWMN
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false

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