Bowman Consulting (BWMN) 8-K Bowman Consulting Group Announces Third Quarter 2021 Financial Results

Exhibit 99.1

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