BWMN - Earnings call transcript Q2 2024 | Bowman Consulting Group Ltd.

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Operator

Good morning. My name is Megan, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Bowman Consulting Group Second Quarter 2024 Conference Call. [Operator's Instructions] Please note that many of the comments made today are considered forward-looking statements under federal securities laws.

As described in the company's filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ from those expressed, and the company is not obligated to publicly update or revise these forward-looking statements.

call, as will income adjusted service today's financial certain and on billing. such information, EBITDA, addition, the discuss company non-GAAP net In adjusted net

published Throughout most with find will earnings company's deliver analysts. on in may be may investors.bowman.com. which the begin and research to But the website. the will after the reconciliations information company's can the with questions post release GAAP they together remarks. call prepared available filed live prepared and You webcast your to will in the from remarks, be call, attendees this investor the Mr. on press questions the on webcast Bowman, will for Management SEC directly management X-K the investor comparable of company's attendees. information at no from there subsequent the you answer take live on Q&A or website Replays call communications. the

Gary Bowman

and our back the joining come also start on and including I'm want me results. joined all thank the Labovitz, will from into who Bruce in for introductory and I trajectory This this comments, which XXXX CFO. Q&A. Thanks, then going State. With in recently Megan. line off our additional morning, Group FCS Washington Engineering to new after our some end financial Colorado of you Element about morning, remarks with discuss Call. us I'll with some our Consulting Good the Group to Quarter Earnings for everyone morning, Bruce XXXX Second employees, Bowman welcome

Okay.

surpassing for first quarterly June generated ended time. a single months quarter we X the record the in gross revenue, and net million XXXX, $XXX During XX,

revenue, around first a and and our is we toward years sector a during X acquisitions add made pace our of $XXX as broaden of services pleased after our our and vision. grow confidence meaningful within increase we're and they short of to It great evolving practice. national expanded firm geospatial to our me the advance gives While position engineering public business the the that I'm marketplace annual capabilities long-term The our on a gross ability million growing execute the company. revenue goal collective using strategy business. the public renewable expectations, energy our it quarter in water with in the

we're more By the firm often reaches is have, overall to even from Bowman. integration. throughout the and post-closing integrated our the much proficient at overall staff to within difficult during our an organization a to we with sometimes lot through distinction meet of organic to and and time rates. tricky while are It's it between calls we XX-month by and it growth distinguishing it and In both acquisitive anniversary as that distinguish individual spend has we our areas So disaggregate of and associated practice professional results quarterly a of highly challenging and we acquired investors, committed highly operations. been acquired cases, the its growth because systems, time closing, make revenue also acquisition, most time,

sharing geographic challenge. While growth this affiliations, by reporting at boundaries enables makes efficient legacy acquired to organic us work it to and on be unconstrained or

that adds from many seeing it's value this our aspect distinguishes a will that a this going With in this, present rates been suffice an of of and I'm Bruce extremely say, his Bruce? growth to efforts approach impactful. to into call it opposed believe dive shareholders. as financial deeper over to to results. the to for As and believe our negative, our turn proud diversification our Bruce But we discuss have we presentation. of we're peers

Bruce Labovitz

Thanks, Gary.

revenue revenue net generally meaningful revenue it metric reminder, revenue, that the because are subcontractors net billings contributing net non-GAAP press a night. Let's pass-through non-GAAP reflects associated costs. service eliminates quick net margin issued our is to This without refer A to available discuss and pass-through we billings production turn Slide billings last and release workforce. service is with X. revenue by outside metrics we Reconciliations generated in we'll Since are markup of all interchangeably.

holding ratio, margin start to was net loss a XX% Gross of XX% improved a loss pace revenue with compared quarter after Net SG&A net the during XX% $X.X by to around XXXX, was a the tax million growth for revenue second for before Gary over us. Gross $X.X is increase which quarter of of of Let's Net increased mentioned, slightly million, milestone $X.X with with by million, XX% million XX% the of revenue. to quarter. a as representing revenue net which, Net quarter $X a second with last from $XXX.X revenue. at is keeping million. million gross loss loss $X.X growth a year, the gross shows loss $XX steady to increased approximately tax was at about net million. of

in is $XX.X Our in was to unwinding points had over adjusted XX our which $X.X that margin basis the revenue $X.X hoped labor rightsized nonetheless, in relating on second for on a quarter Adjusted bit. would XX% our and in our direction. margins projections, tax to it ensure right which overhead, XXX revenue, for actions us was holding taking for XX.X% not accounting positions so uncertain of higher but a half. -- we're after XXXX, We're we up for million the where first be, to committed the up the approximately net more EBITDA tax position quarter benefit Section million, or quarter the million R&D is at expensing,

action does or this require to not Fortunately, accomplish. dramatic extreme

of at for improved X XX% slightly $XX.X margins as net months XX% million at margin million which revenue EBITDA the the up last net of SG&A half $X.X tax increased of for $XXX.X first to million with $XX.X year, ended Net was June or on $XXX.X XX.X% XXXX. the revenue is half revenue. after compared for million million, loss Gross at months XX Adjusted approximately compared $X.X percentage $X.X of the loss to a by X at or was net Turning months around revenue. XXXX. X Net X a to first up was XX% to point XX% XX% million. the was million. up Gross

quarter turn nearly issued for nearly currently to and million second second was the XXXX. Let's $XX quarter projecting out from only. down $X.X Slide from in Non-cash of that be non-cash the stock I'll just stock including is stock footnote comp compensation expense the table early point the quarter, XXXX. of million, awards in the until of million We're for awards future be XXXX XXXX to accruals under limited number X. in related XXXX the will not range to in XX-Q $XX first issued compensation of the XX% XX% the to that

months. X. +$X.XX, and -$X.XX Let's months, were metric, for also respectively, quarter year. at are net the in for losses for -$X.XX X in Basic the turn and X the each and Based Slide and basic the period for EPS diluted to the non-GAAP they were and and months, both a on diluted +$X.XX EPS, -$X.XX the quarter X the same adjusted

turn to Slide Let's X.

a as revenue introduction Second emerging of at verticals quarter slight allocated markets of gross by to XX%, markets Surdex Surdex the will to revenue by with at XX% be at was transportation other infrastructure of XX%; impacted power the included vertical at dilution their markets revenue X%. for related and remainder calendar year. resulted in building continue emerging the emerging vertical. the was the in This

to turn X. Slide Let's

Based the transportation, closing X%. disaggregated June approach, infrastructure, for and revenue of average same weighted of Now the our then the organic of second their reported growth as X acquired effectively months approach, converted emerging I'm for going revenue to the and organic Blankinship, prior Fisher, to the take minutes for XX%. in transportation vertical detail. and period anniversary included resulted XXXX for past. discuss building the underlying growth around pool XX-month release, for In just first for was Surdex earnings X% Pomona, disaggregated weighted we of reported markets, the net to Speece XX% was By CFA, more. organic in Dennis, a the nonacquired. in acquisitions acquired revenue High organic underlying how average XX% consistent from Lewis, just around XX, non-acquired. reported net XX% bucket for growth quarter Mesa, vertical their Excellence, Infrastructure TCE, and On by XXXX, the X% revenue with power emerging Richter, MTX organic reclassifies results. Hess-Rountree, eliminates to in for compare XX% building growth that and We power, the a more revenue approach few on we've by growth of bit in XX% infrastructure, This resulting markets, around a for after XX% it

further went little half first ways. organic we X of growth additional in however, a and for quarter, This evaluated XXXX the

first pro the half the first revenue. to adjusted to This revenue reported at of the pro it we XXXX on looked the quarter First, the quarter second as for XXXX. our basis, second no effectively normalized of whereby for longer of in we during base their forma results and revenue it increased although add companies a period, forma ties acquired

second XXXX, the again For the the after half eliminated XXXX. revenue of from we acquired first companies of quarter

XX% eliminated we for In on and average of building -XX% revenue average of with the it a organic a first XXXX for 'XX growth a approach, was for XXXX. X Keep disaggregated acquisitions all under This by with all revenue transportation, X.X% overall. pro a case, both infrastructure transportation, XXXX, the was power this pro and with months. a approach revenue ignores growth created emerging forma second effectively completed beyond. XX% forma Second organic building from net half for X.X% just the the XXXX for playing of revenue for of as half X.X% revenue. negative a X the XXXX power, pro end just XX.X% from both half XX% the case, at -X for for weighted has adjusted associated vertical by the of the XX% for field infrastructure, of XXXX, XXXX markets, net of half for based for XX% of acquisitions for first for first in first the basis, and whereby first organic we weighted of in months eliminated 'XX on vertical markets, under eliminated XXXX forma In as and from of looked nonbuilding growth emerging a for infrastructure level mind,

X. the million $XX with on million million in We debt cash the at turn quarter Let's over balance sheet. of available the had net Transitioning new to and of approximately $XX $XX Slide revolver. to the end

cash first under our flow, cash finance cash X.Xx leases X.Xx under was or capitalization to Shares a trailing is with million adjusted revenue and have total half, months, from X the just million. roughly XX, Our the X-quarter flow, CapEx. during and debt to free is June There's property from We're on during year's flow capabilities $X.X will our of these which results. was X $X.X operating and equipment CapEx you to that to last XXXX, pleased point and cash outstanding EBITDA we lines of With on of adjusted respect important the of respect out on with which XX% million spending acquired activities I distress growth. purchase statement in $XX.X property our after together. basis. conversion to roughly was EBITDA gross the ratio no of continue generated equipment X.X% invest

the the cover million only X between today, would repeal reversal through finalizing the $XX returns October. not our real to impact if unwind the reversal to plan that approximately forfeiture. tax the this withhold in of including balance only XXX,XXX acquisitions, box shareholder and on diminishing and and next the short-term effect tax years. net today's to the repealed, Those our Returning act are position sheet. interest total adjust The of Otherwise, of P&L Senate on liability accrued likelihood million is included subject returns The million provision. was is to this an of additional on In in accounting We the decided in no count. buy based $X vest close. is bonus reversed shares and previously position. shares was increasingly accounts accordingly. with unfavorable on anticipation house with XXXX stock activity under outstanding which guidance, had and units, the accounts share the performance tax to of the of uncertain Between long- case R&D. subsequent period incentive tax those being we approximately change resolution penalties reclassifications our approximately There alone we activity our will retroactively it time $X.X As over future,

Let's turn to XX. Slide

in XX% of backlog last XX% on As yesterday, year-over-year backlog building X% quarter. was end to is mentioned and the release distribution as Gary the XX of June up compared power XX% The the in infrastructure, emerging transportation increase is relative increase X% the issues some markets. reflective transportation, for This of we've having XX% markets been with starts. transportation and emerging of after

Let's turn to Slide XX.

margin to and for to implying detailed around XXXX the a and $XXX of million, million EBITDA adjusted net of $XXX narrowing our to in likewise as range midpoint for revising our service Lastly, a to $XX outlook a release, million million press we're adjusting range $XX outlook XX%. are of billing

to While forward patterns reset the to with to we're having guidance company, our ability as first we pleased and look guidance. the to return time old with for public respect lower not to the a

always, not As does we guidance contemplate to that year-end. announce Gary? now between expect and acquisitions additional

Gary Bowman

Thank you, Bruce.

turn let's to Slide Now #XX.

prime now and extensive exhibiting the excited infrastructure, foundation as expanded group Before public skills its in few and The we vertical Anchor area. up a submarket an port to everyone focused a Ports with and is ports been leader distinguished a our some what take geographic this that successes and This providing minutes reassure in excited and where demands operators, the added port are conditions active the micro sophisticated call down our for integrated of areas our diverse for awards, future depth our That's Philadelphia and a Group. harbors the harvest several inroads want practice. extremely Ports the some in and bridge on systems utilizing as short, & interesting industry. and acquired recent laid on safety are team the sustainability ports touch East to on us planning. member, both With flourishing Harbors, company to or to logistics, has a the the for management. of a has engineering. staff delivery is assessment business Q&A, asset Group and share we're Coast from and markets, successes and of we the of there of tracking, XXXX, private along firms leadership, for clients consultants. and technology the land performance the for and biggest themselves, proving Leveraging and very wins our laser focused small we're economies to our marine making about GIS is as lately really information seeing about water-based operations. promising In and opening we're I'm I acquisition transportation to address potential practice future of talented harbors be now that

high-resolution pace Bowman. of growth mapping multiple capabilities our one variety and being to has terrestrial-based firm to from practice we've the aerial scanning offers Accelerated services other the of with recent of including altitudes imaging, addition underwater. scanning, geospatial that portfolio. We've a in past geospatial, and couple kept related services both of Over by areas GIS and added Surdex, to gone new imaging, our surveying LiDAR at the the years, a

federal acquisitions, methane remediation long-lived information high end-to-end As to terrestrial-based available detection, mapping, and emissions evolutions enabled developed altitude surveying aerial MTX, management Elsewhere interesting including a enormous numerous we've acuity an funding we're provides methane is By and XXXX seeing combining local company, offering the to state aligned potential. The with planning combination example, low has scanning this and opportunities others foreseeable and pursue scanning and future. of Surdex us spatial credibly well XLE, over markets. GIS, documentation, in multiple the and throughout transitions opportunity. that mobile long-term comprehensive

weather significant an usable electric have patterns voracious assess quarters preparedness that alterations historical and us center and not land and and residential owners along areas land-use commercial extreme have As major modifications. in land demand led data example, to the of change the have assignments response been viability is in past. of the overhead to susceptible Climate are utilizing weather storm in for to

a Storm a during As team what predicted on X,XXX-year presence announced experience just Tropical We and in we was resiliency. level dump rise the to XX example, a ago was -- a real-time in that to leadership X rain climate Charleston. years very experienced more storm have meer recently active extensive coastal Debbie yesterday, X it our to Charleston senior than change, as added with categorized was executive-level inches sea then City

to public has increased. manage and utilities As attack utility staff their professionals their and operations, municipalities demand to services augmentation struggle for

In X,XXX opportunity The the exported acre were engineering result company Texas operation. is from which our solar in skills progresses. Also Chicago project, a example, approximately were and a known embed X-year county $X of This local and XXXX. recently of to Texas, is throughout add in roadway contract SEI we awarded were recently management in infrastructure a more. acquisitions wins. several at at is the oriented for assurance a renewables an As as jurisdiction construction heap we In a SEI inspection a SEI mining million just engineers other substantial we valued just to Arizona, result quality recent awarded as construction and one valued projects more Houston, selected leach $XX of was million assignment than acquisition of Austin in and opportunity direct our staff significant such the as services with result a support project California. within

likely over XX that awarded have Arizona, and anecdotal contracts we master-planned us infrastructure valued both and evidence causes a Texas for lagged organic recently $X in ahead. past In new engineering were the months, growth we million. to at has both foresee experiential over communities single-family rebound building While of terms

to building subverticals and with well-known the are active housing. us retailers big-box infrastructure national market, for particularly multifamily projects. Convenience even quick our stores, new build reductions forthcoming We customers of rent expect restaurants of service many in reignite rates engaging with and brand

assignment standards. philosophies national surveys practice of the Fisher Our facilities part HVAC year our to EPA been by Continental is is regulatory growing Corps changes to to storage from good Protection, serving recently poised clients Marine example synergy and complementary in time support the for to public engineering protection last worldwide, of and refrigerant buildings acquisition U.S. has a The award fire any medium-scale aircraft our new of opportunities. of of for benefit to expanding sector bases NaVfac catalyzed and of perform practice including tremendous internationally Japan. MEP recent customers crossover materials, hazardous fire a needed. footprint notified notified pending of provide Fire protection anywhere not We This are were and our alternative as small- perform fire in hangers. a we approaches testing spill also working

Okay.

evolving Slide of while a that, we're I'm time a to overhead our by to is Every sustainable visibility plan demand is adjacent and And success all bottom a while advancing I've to right-sized skill winning in to this is my The what necessarily long-term constantly opportunity and We at overhead. assignments a our revenue, XX. around we built verticals must be sets. day, turn the not improvement I've business accompanied and me And short- workforce committing rationalized this both experience line is line promising, considering and collectively for propelling that growth results. the growth. workforce assess bottom This diversification assurance. grow. let's growth across our and customer we working. industry in that's recognize our complementary quality all time, been Bowman outlined that is long the is tells for individually Now are newsworthy and as

and As With Megan for circumstances I'll cross in needed, as to changing the evolve. are now turn future, we back to that, adopt Q&A. we the currently call they again, we structure have, our will,

Operator

[Operator's the Hallum. Aaron Instructions] Your first line with comes of from question Spychalla Craig

Aaron Spychalla

Bruce. and Gary

seeing for data of out appreciate contraction most? you first kind kind markets a the you what's organic First that. few about? looking that What changed And last quarter, you half. about past be for excited end talk for past the in Can building centers calling you infrastructure strong were now months? year what noted may are slowdown the and we've just about areas I'd the in you are me, very in talked of

Bruce Labovitz

be from. I'll It's we say a think building assess investing we mean, we I do performer. place organic in to withdraw infrastructure detail start it's to you want it to are We be. believe the aggregate in something and in between it. that it's granular when very still is not acquired, going a good to strong

So to there. we do strong think that be there's going performance

Gary Bowman

but being put in for -- rate promising work a favorable a interest more selling or hold, We're it's multifamily booked, and waiting environment. but more being on

what that's environment our models interest we we're So amongst for but rates new a waiting -- business and they're both sitting clients, are tight decrease. -- for to interest optimism rate the seeing rationalizing their

Bruce Labovitz

think, confusion these think, have of discussion evolution I impacts going temporary. sort I and quickly, in the but than in even And the between rate late, general, lot marketplace world last us few in months in the impacted have, a discussions, like uncertainties. think circumstances the certainly of changing more on, the trajectory I geopolitical of those These of they're of past

a certainly new multifamily, lot MEP as regulatory still going on retailers center Data definitely us commercial, big for of in they going really affect drag the it's think terms of doesn't protection, about in orders fire We transitions of and We've environments, market. got issuing dramatically health all got that area. the in is world a are on box urban a our which obviously group. sort submarkets talked stores. who very you But and lot preparing We've As are got for care. in strong. promising in new

Gary Bowman

that hear and us market poised for start reignite interest to market very What strong down. slowed in once was build-for-rent we A until market, clients coming that rates was that that a has our down. up the from year they're ago, really

Aaron Spychalla

large final you Understood. to you bit you've notice the projects mean and to multiple you on backlog? little are on -- are How that still noted in a we and transportation, And what selected confident through are items causing to 'XX. up give where detail been look just still contracting that working more then proceed. those what second kind And they'll are delays? this of for segment they'll could added growth start half they that be as towards Can

Bruce Labovitz

Yes.

process get is the So -- broad strokes awarded that submit, you here. you in

You get awarded, then you go through a negotiation.

So of price contract and a the still target you've to last get but through they're backlog contracted. has seemed then more recently. don't go a They get submitted added until negotiation, and to to X That characteristic have then your notice take you to executed longer a package, in months a proceed. the just get

process just bit it of things into So with cases, everybody talked up some at getting we getting these of and there's to projects. and shortages larger then of about little backlog some the personnel, Gary the getting a with longer are contract a sort as In of proceed. than wind dragging authorities anticipated

Gary Bowman

clients and of in this to give second lot it We the will confident a touch these us are DOT they indeed with year. commence of in be that half reason continuously

Operator

Wittman comes the next question Baird. Andy of with Your from line

Andrew J. Wittmann

before are some to or to you and it holding that else off for the the I got kind was there of -- rates mentioned had a happen about like something developers Bruce, you you've sounds are the of guess like award, interest like I work. here contract, multifamily able get to just waiting question but

the you beautiful, comfortable a do proceed, moving in number? still that, wind the So backlog have like isn't the contract, also proceed. you backlog? the job you have up situation yet that Does putting your in but that notice to Or don't to need in notice where

Bruce Labovitz

little So a bit the different world. multifamily in

determination to more big is to don't notice a sort number. proceed. comes You it's backlog. reasonable single going contract generally It is of like get phases is goes same proceed. But in big and when so philosophy with contract a than It under our there contract that the into one

Andrew J. Wittmann

it. Got

Okay.

to things you about reporting So given this that time? in the is all given fair just you consistent little burn do are backlog answer your are comments a assumption of maybe and how the extending averages. rate with in historical a longer, Or bit think the is about taking out it quarter this prior be will think

Bruce Labovitz

I think be. there may

go that with sort projects turns right out than of than of of still end of a backlog the that come might it the small portion was we later a what figure be bit maybe current in of your backfill that longer long a of in -- I the -- shorter-term don't period, the in portion that normally you I previously. it otherwise a and backlog. the there's rest of part, little months, turns within mean turns Maybe XX-month a to little normally XX%-XX% and XX it's but longer is the months little than little it But XX turns so now but the delaying, it On turns backlog, continue a longer. do

don't bit opposed a to would years of probably little year. there's I yes, X So as okay, say like, it's know there. an it's that I now a extension

Gary Bowman

of backlog. the little year a bit That's of drag half the okay, of the is there may of part second be reassessment that in contemplating that

Andrew J. Wittmann

I end. Yes, are makes maybe to year, expectations kind that that know of a I talk don't this your sense. kind just of what cash thinking, comment on you're your would I free what about ask I thought outlook on form but Bruce. for to good just thought flow you

Bruce Labovitz

of sort in definitions X of net I sense think the CapEx, about I people, net talked how X In -- flow. EBITDA simplest is flow of get cash saying, conversion they everybody So well, to of cash absolute and we're adjusted running if that us, a cash the are Things taxes a flow. little to think of range to for big change the this to write on year. in EBITDA tax bit XX% our impacted you an having year by advance about going adjusted free get this

tax So is I have of that because a up. are adjusted think money conversion short-term about EBITDA that for basis, to we're forward. you goes not with real on accounting negative going door consistent timing But today still going cash flow change, that's impact for GAAP portion we out going it on where a from go if to the think

Operator

comes question with next from And the Brent line of D.A. Thielman Davidson.

Brent Thielman

I annualized guys of EBITDA and second hoping a up quarter million versus net of and I since EBITDA some within could $X.X year mean up I you last guess maybe a more have create year, that? of million year. pieces Bruce, billings, we're last from go in kind this of the of deals you around tally back if $XX-plus moving the bridge the done little last in the it's service but kind

of some against working maybe you? EBITDA, have you in perspective, deals. around thought Because the just seen organic the you've pieces but for understand bigger I we'd what's given a and just working I moving would increase from So an those what's

Bruce Labovitz

Yes. think I we're a against mean and revenue in our expectation. expected not designed base adjusted able to labor is structure cost how be the that we hitting that revenue to I and that force revenue what's to cost are for we working somewhat the is addressing higher have we structure us generate optimize we a

associated of we're and that So our on answer think labor out little the profitability. revenue is conversion of I whack a that to

Brent Thielman

heard in going it that's Okay. And converting any versus of of awards give the sort ramp couple implied here, is kind in give if August maybe Gary, half other transportation the now, it. to but of is details there, here backlog kind and an any of me wrong, in -- like signals I'm I business a that this lot being EBITDA half correct or on that that back a there's obviously, that's contingent you of seems and confidence you convert pushing there in evidence second happening?

Gary Bowman

outlook the a I we think do delay a little differently, slightly revision some Brett, that strong we of strong business. that there base revenue. it's bit have we suggest a in our is contemplates And have in

structure a We the where point and to there strong us that -- time this we at good We reason to from we've in that, need have backlog, a is additional and believe that's do generate demand is don't we cost visible have to feel achievable. revenue. that adjusted clients additional is

some second So in than increase can we sooner little we in think in scheduled we things than think we we a pace that a with think, think. are half from coming the the later that -- of little upside the

Brent Thielman

the long assignments. few question that evolved here consider the issues? kind do on that business? we diversity seems in and last mean Does lumpiness? has normal isolated larger benefited Okay. of in of of years the the sort the you Or in the you last it the these you've sort you expect though taking are Is And just new agree sort as more is But business of run. should

Gary Bowman

isolated are isolation. there I think frankly little be issues that they regularity more may the to -- may be a

We growing. are

We bigger. getting are

short-term Impact also them but in the can have assignments. to bigger bigger can on productive very they're to taking long are run We effect. -- also They have.

projects bigger from I So that some where likelihood more I'm I period think the new little think I and all some there transitioning, a is there there them. -- some it impact we it more sure would be have not But extreme. honesty, are can call could be in is normal this -- may

that to effect. the they of We they there side don't the will and are other are them where really enough have and get of norm

growth that that I a sense. bit of the spurt sort for more where visibility, think short in they have term, little makes could if we're

Operator

Thank you.

Alex the Your Rygiel next question B. line of with Riley. comes from

Alexander Rygiel

of A and here. couple quarters Bruce. Gary

directionally growth, over rates? softness With the organic on next pressure are couple margin quarters? billing you gross the seeing in on any of And any thoughts

Gary Bowman

issue downward. pricing been pressures That's in we're not the an marketplace. that seeing We're not seeing

Alexander Rygiel

don't service then of up is XX% this Net year-over-year. kind up And think came billing really I yet. question growth

growth only XX%. is about backlog up Your

So you now? think right is backlog organic what inside do growth

Bruce Labovitz

than it it -- it's way of their sort respect, to is, we the there it's complicated in backlog consistent other delivers it growth expect first I exactly with because from little the how parse sure point think in a they're when not I'm growth at what life in some that not organic in of depends pausing about an whether slightly or what say, set terms only overall period rate. mid-single-digit of organic in is it of year our I'm out cycle to in terms acquisition

Operator

from comes with MKM. Jeff question Martin next the of Instructions] Your Roth [Operator's line

Jeff Martin

the are starts? new are funding existing a more down those Or And segment. little those the Those is are drill transportation to new on markets? Are primary wanted markets? factors I delaying other that awards, issue? there

Bruce Labovitz

That's They're really at clients. say all. existing And funding issue. new they're geographies. the not existing you when Not markets, generally

the things subcontracting and services new they're of are expanding are the the they portfolio within Sometimes authorities we do because of outsourcing. that range things

continually capabilities in expanding the are those we adjacently So markets.

Gary Bowman

get said, been They proceed notice in big contracts Bruce sitting are tight to I just markets that serving. what on. to that we've Yes, were the reinforce

Jeff Martin

services on time, you've the a if X take an that's business then And lines? ability long almost just know to months Surdex you integration their update I but provide could now. across your owned was curious not one into

Gary Bowman

maybe integration pace the We're and early The some mean cross-selling. successes and getting -- seeing being some are ourselves very opportunities some excited with new this provider. reluctance that I very are progress of and of been cross-selling pleased hearing synergies, anecdotally even the that bit initial have reluctance. also There's the I'm with and a to the over of pleased a folks on. folks go that about very to and good That

we're So of synergies. pleased prospect with the quite

Jeff Martin

then And more, I if one could. Great.

You labor and mentioned focus adjustments. market a

one. could And time be on Just two, line of curious over? to what that you if elaborate you that was anticipate do kind

Bruce Labovitz

would making where we be fourth can assessing where we and the at Well, -- of we looking revenue quarter during addressing factor deliver units we what better how It's sharing rest deciding how particularly we going through evidenced, of not -- we're want our around to able and by at Jeff, course adjustments. by optimize to huge as can year, where labor this margin -- be we're -- the the improved the system. growing we It's business around labor looking call to opposed on utilize labor. and the be

Operator

comes line Spychalla Craig the Aaron with of Hallum. question from next Your

Aaron Spychalla

high guidance. maybe on quarter? wanted growth just just guidance. you kind some year? single still fourth conservative like I one split It digits, Are last one on just then you're breakdown the might And to somewhat but it just talk of confirm. and to had just mid- the between in thinking on organic just third about given XQ Can I you seems how of had be about follow-up trying issues to be a

Bruce Labovitz

Yes.

third a at moment, fourth the dramatic, at certainly. and quarter slight but kind the of marginal relatively think ratably higher maybe So we're looking not I third fourth, than

X% I talked forma at in about adjusted of but call, at to doing about maybe in basis ahead pro that's that rate of not tie digits. year. to midpoint X% the mid-single and I the the a As the the X% forma on organic guidance That's right, look of revenue, for think to we going the our as actual we're about to kind sort because a pro year-end basis,

Aaron Spychalla

Right.

that's I that helpful No, out, to think Thanks try kind Okay. parse that. of just to for

Operator

call Mr. Bowman, I over turn you. back to the

Gary Bowman

Megan. Thanks, Great.

growth both wrap be Rest both and organic entire are our Just public excellence achieve said, a that run continue to operational to team. to myself we've X and going of do and goals. our our focus a not assured company. up, to we on for profitability long-term got organic a We've years will to growth primary successful leadership as had and work lot are in a our very But that first rest laurels.

morning's morning. thank So this everybody participation Good the in I call. want to for

Operator

This concludes today's conference call.

You now may disconnect.

Bowman Consulting (BWMN) 7 Aug 242024 Q2 Earnings call transcript