Bowman Consulting Group Announces Third Quarter 2021 Financial Results

Reston, Va., November 10, 2021 (BUSINESS WIRE) - 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 nine months ended September 30, 2021, which include record revenue.

"The third quarter was the highest revenue quarter in company history, as we continue to experience strong demand across our end markets," said Gary Bowman, Chairman and CEO of Bowman. "This was our first full quarter as a public company, and I could not be more pleased with how we have executed on our business strategy. Since becoming a public company, we have closed on four acquisitions, and we expect to close additional acquisitions by year end. Most importantly, our entire team has met the challenge of integrating new operations while continuing to serve the growing needs of our existing clients and develop new relationships. We continue to be steadfast in our commitment to increase shareholder value over time through a combination of organic growth and strategic acquisitions."

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

Gross revenue of $39.7 million, a year-over-year increase of 25%

Net service billing1 of $35.7 million, a year-over-year increase of 41%

Adjusted EBITDA1 of $4.4 million

Adjusted EBITDA margin, net 1 of 12.4%

Net income of $0.4 million

Acquired revenue accounted for $2.3 million, or 6%, of gross revenue

Backlog1 of $139 million, an increase of 13% from June 30, 2021

Financial highlights of the nine months ended September 30, 2021:

Gross revenue of $108.0 million, a year-over-year increase of 17%

Net service billing1 of $97.1 million, a year-over-year increase of 26%

Adjusted EBITDA1 of $12.7 million, a year-over-year increase of 20%

Adjusted EBITDA margin, net 1 of 13.1%

Net income of $0.9 million

Acquired revenue accounted for $6.8 million, or 6% of gross revenue

Other Recent Business Highlights:

Closed on the acquisition of Triangle Site Design in Raleigh, NC on October 1, 2021

Closed on the acquisition of PCD Engineering in Denver, CO on October 8, 2021

Closed on the acquisition of BTM Engineering in Louisville, KY on October 15, 2021

Year-End Guidance:

The Company is increasing its full year 2021 outlook for Net Service Billing to be in the range of $130 to $133 million and Adjusted EBITDA of approximately $16.5 million from previous guidance of $125 to $130 million of Net Service Billing and $15.0-$15.6 million of Adjusted EBITDA. The Company is introducing its 2022 outlook for Net Service Billing to be in the range of $150 to $170 million, with Adjusted EBITDA expected to be in the range of $20 - $24 million. The current outlook for

2021 and 2022 is based on completed acquisitions as of the date of this release and does not include contributions from any future acquisitions. The Company expects to continue making strategic and financially accretive acquisitions that are not yet reflected in this current outlook. Management will discuss the Company's acquisition pipeline during its upcoming earnings call.

"We are updating our outlook for 2021 in part as a result of acquisitions closed since our last earnings call," said Bruce Labovitz, Chief Financial Officer of Bowman. "As is our practice, our current outlook does not include future acquisitions, since we cannot offer assurance that they will close in a timely manner. We are generating free cash flow and anticipate our current capital being sufficient to meet our near-term acquisition needs. As we continue to deploy our capital and increase scale, we expect to achieve margin expansion with respect to Adjusted EBITDA, resulting in increased free cash flow from operations."

1

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

Q3 2021 Earnings Webcast

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

Date: November 11, 2021
Time: 9:00 a.m. Eastern Time
Hosts: Gary Bowman, Chairman and CEO and Bruce Labovitz, Chief Financial Officer
Where: http://investors.bowman.com

About Bowman Consulting Group Ltd.

Headquartered in Reston, Virginia, Bowman is an established professional services firm delivering innovative engineering solutions to customers who own, develop, and maintain the built environment. With over 900 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.

Contact:

Investor Relations

Bruce Labovitz

ir@bowman.com

(703) 787-3403

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
Ended September 30,
For the Nine Months
Ended September 30,
2021 2020 2021 2020

Gross Contract Revenue

$ 39,715 $ 31,766 $ 108,041 $ 92,126

Contract costs: (exclusive of depreciation and amortization below)

Direct payroll costs

15,531 13,035 42,873 36,768

Sub-consultants and expenses

3,967 6,354 10,967 14,814

Total contract costs

19,498 19,389 53,840 51,582

Operating Expenses:

Selling, general and administrative

18,373 14,425 48,328 38,555

Depreciation and amortization

1,598 311 4,506 952

(Gain) loss on sale

(46 ) (30 ) (99 ) (45 )

Total operating expenses

19,925 14,706 52,735 39,462

Income (loss) from operations

292 (2,329 ) 1,466 1,082

Other (income) expense

314 (102 ) 706 (179 )

Income (loss) before tax expense

(22 ) (2,227 ) 760 1,261

Income tax (benefit) expense

(379 ) (979 ) (139 ) 467

Net income (loss)

$ 357 $ (1,248 ) $ 899 $ 794

Earnings allocated to non-vested shares

71 - 165 41

Net income (loss) attributable to common shareholders

$ 286 $ (1,248 ) $ 734 $ 753

Earnings (loss) per share

Basic

$ 0.03 $ (0.22 ) $ 0.10 $ 0.14

Diluted

$ 0.03 $ (0.22 ) $ 0.10 $ 0.13

Weighted average shares outstanding:

Basic

8,920,505 5,567,523 7,003,462 5,569,177

Diluted

8,935,274 5,567,523 7,008,440 5,604,804

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands except per share data)

September 30,
2021
December 31,
2020
(unaudited)

ASSETS

Current Assets

Cash and equivalents

$ 38,745 $ 386

Accounts Receivable, net

34,964 24,183

Contract assets

8,668 7,080

Notes receivable-officers, employees, affiliates, current portion

1,120 1,182

Prepaid and other current assets

3,858 2,271

Total current assets

87,355 35,102

Non-Current Assets

Property and equipment, net

17,864 15,357

Goodwill

13,484 9,179

Notes receivable

903 903

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

1,273 1,297

Other intangible assets, net

2,789 1,131

Other assets

687 669

Total Assets

$ 124,355 $ 63,638

LIABILITIES AND EQUITY

Current Liabilities

Bank line of credit

- 3,481

Accounts payable and accrued liabilities, current portion

18,634 12,203

Contract liabilities

2,558 1,943

Notes payable, current portion

2,222 1,592

Deferred rent, current portion

674 619

Capital lease obligation, current portion

4,625 3,495

Total current liabilities

28,713 23,333

Non-Current Liabilities

Other non-current obligations

1,243 1,244

Notes payable, less current portion

4,377 2,829

Deferred rent, less current portion

4,217 4,278

Capital lease obligation, less current portion

8,855 7,503

Deferred tax liability, net

5,133 6,472

Common shares subject to repurchase

7 842

Total liabilities

$ 52,545 $ 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 shares authorized; 13,367,535 shares issued and 11,179,120 outstanding, and 7,840,244 shares issued and 5,744,594 outstanding, respectively

134 2

Additional paid-in-capital

113,531 58,866

Treasury Stock, at cost; 2,188,415 and 2,095,650, respectively

(17,215 ) (16,022 )

Stock subscription notes receivable

(439 ) (609 )

Accumulated deficit

(24,201 ) (25,100 )

Total shareholders' equity

$ 71,810 $ 17,137

TOTAL LIABILITIES AND EQUITY

$ 124,355 $ 63,638

BOWMAN CONSULTING GROUP LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Nine Months Ended
September 30,
2021 2020

Cash Flows from Operating Activities:

Net Income

$ 899 $ 794

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

Depreciation and amortization-property, plant and equipment

4,283 762

Amortization of intangible assets

223 190

Gain on sale of assets

(99 ) (45 )

Bad debt

266 2,507

Stock based compensation

5,341 4,055

Deferred taxes

(1,340 ) 297

Deferred rent

(6 ) 562

Changes in operating assets and liabilities

Accounts Receivable

(10,015 ) 369

Contract Assets

(961 ) 4,179

Prepaid expenses

(430 ) 702

Other Assets

(1,032 ) (285 )

Accounts payable and accrued expenses

6,132 819

Contract Liabilities

(31 ) (5,977 )

Net cash provided by operating activities

3,230 8,929

Cash Flows from Investing Activities:

Purchases of property and equipment

(609 ) (930 )

Proceeds from sale of assets

100 45

Amounts advanced under loans to shareholders

(473 ) (878 )

Payments received under loans to shareholders

88 195

Amounts advanced under notes receivable

- (414 )

Payments received under notes receivable

- 4

Acquisitions of businesses, net of cash acquired

(3,000 ) -

Collections under stock subscription notes receivable

170 144

Net cash used in investing activities

(3,724 ) (1,834 )

Cash Flows from Financing Activities:

Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs

47,104 -

Net payments under revolving line of credit

(3,481 ) (5,717 )

Repayments under fixed line of credit

(540 ) (306 )

Borrowings under fixed line of credit

- 1,985

Repayment under notes payable

(735 ) (1,496 )

Payments on capital leases

(3,208 ) (189 )

Payment of contingent consideration from acquisitions

(2 ) (104 )

Payments for purchase of treasury stock

(582 ) (1,261 )

Proceeds from issuance of common stock

297 45

Net cash provided by (used in) financing activities

38,853 (7,043 )

Net increase in cash and cash equivalents

38,359 52

Cash and cash equivalents, beginning of period

386 509

Cash and cash equivalents, end of period

$ 38,745 $ 561

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 September 30,
2021 2020

Gross revenue

$ 39,715 $ 31,766

Less: sub-consultants and other direct expenses

3,967 6,354

Net services billing

$ 35,748 $ 25,412
For the Three Months Ended
September 30,
2021 2020 $ Change %Change

Net Income

$ 357 $ (1,248 ) $ 1,605 (128.6 %)

+ interest expense

216 118 98 83.1 %

+ depreciation & amortization

1,598 311 1,287 413.5 %

+ tax expense

(379 ) (979 ) 600 (61.3 %)

EBITDA

$ 1,792 $ (1,798 ) $ 3,590 (199.6 %)

+ non-recurring operating lease rent

- 641 (641 ) (100.0 %)

+ non-cash stock compensation

2,634 3,546 (912 ) (25.7 %)

+ transaction related expenses

- - - 0.0 %

+ settlements and other non-core expenses

- 1,461 (1,461 ) (100.0 %)

Adjusted EBITDA

$ 4,426 $ 3,850 $ 576 15.0 %

Adjusted EBITDA margin, net

12.4 % 15.2 %
For the Nine Months Ended September 30,
2021 2020

Gross revenue

$ 108,041 $ 92,126

Less: sub-consultants and other direct expenses

10,967 14,814

Net services billing

$ 97,074 $ 77,312
For the Nine Months Ended
September 30,
2021 2020 $ Change % Change

Net Income

$ 899 $ 794 $ 105 13.2 %

+ interest expense

650 367 283 77.2 %

+ depreciation & amortization

4,506 952 3,554 373.4 %

+ tax expense

(139 ) 467 (606 ) (129.8 %)

EBITDA

$ 5,916 $ 2,580 $ 3,336 129.3 %

+ non-recurring operating lease rent

- 2,430 (2,430 ) (100.0 %)

+ non-cash stock compensation

5,341 4,082 1,259 30.9 %

+ transaction related expenses

1,440 - 1,440 100.0 %

+ settlements and other non-core expenses

- 1,461 (1,461 ) (100.0 %)

Adjusted EBITDA

$ 12,697 $ 10,553 $ 2,144 20.3 %

Adjusted EBITDA margin, net

13.1 % 13.6 %
Backlog September 30,
2021
December 31,
2020

Building Infrastructure 1

53 % 43 %

Transportation

21 % 28 %

Power & Utilities

22 % 25 %

Other Emerging Markets

4 % 4 %
1

formerly referred to as Communities, homes & buildings

BOWMAN CONSULTING GROUP LTD.

GROSS CONTRACT REVENUE COMPOSITION

(Amounts in thousands)

(Unaudited)

For the Three Months Ended
September 30,
Consolidated Gross Contract Revenue 2021 %GCR 2020 %GCR Change % Change

Building Infrastructure 1

$ 28,303 71.3 % $ 20,183 63.5 % $ 8,120 40.2 %

Transportation

4,033 10.2 % 5,929 18.7 % (1,896 ) (32.0 %)

Power & Utilities

6,295 15.8 % 4,943 15.6 % 1,352 27.4 %

Other emerging markets 2

1,084 2.7 % 711 2.2 % 373 52.5 %

Total:

$ 39,715 100.0 % $ 31,766 100.0 % $ 7,949 25.0 %

Organic

$ 37,380 94.1 % $ 31,766 100.0 % $ 5,614 17.7 %

Acquired

2,335 5.9 % - 0.0 % 2,335 100.0 %
For the Nine Months Ended September 30,
Consolidated Gross Contract Revenue 2021 %GCR 2020 %GCR Change % Change

Building Infrastructure 1

$ 74,511 69.0 % $ 56,191 61.0 % $ 18,320 32.6 %

Transportation

12,344 11.4 % 16,217 17.6 % (3,873 ) (23.9 %)

Power & Utilities

17,524 16.2 % 16,133 17.5 % 1,391 8.6 %

Other emerging markets 2

3,662 3.4 % 3,585 3.9 % 77 2.1 %

Total:

$ 108,041 100.0 % $ 92,126 100.0 % $ 15,915 17.3 %

Organic

$ 101,216 93.7 % $ 92,126 100.0 % $ 9,090 9.9 %

Acquired

6,825 6.3 % - 0.0 % 6,825 100.0 %
1

formerly referred to as Communities, homes & buildings

2

represents renewable energy, mining, water resources and other

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Bowman Consulting Group Ltd. published this content on 12 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2021 17:25:12 UTC.