BWMN - Earnings call transcript Q3 2024 | Bowman Consulting Group Ltd.

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Operator

Good morning. My name is Tia, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bowman Consulting Group Third 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

most with find earnings company's be investors.bowman.com. after the and the from of reconciliations prepared remarks, information prepared company's can with release may GAAP together filed which and You on to in will this published press the analysts. deliver the take you Management SEC directly questions X-K the they investor comparable information investor at the will on live remarks. company's Instructions] Replays research [Operator's call Bowman, website. available the will website Mr. your begin

Gary Bowman

Call. Good for to to is Thank morning, you Q&A. morning ExelTech including Tia. I Consulting discuss results. from us back Consulting Bruce joining with which Labovitz, you, is Then our Group's into our to all Bruce remarks our XXXX, morning. I'll everyone now me XXXX moment end comments, for With who our trajectory take a joining CFO. this Bowman Thank going in employees, with we'll and Earnings new will want welcome financial the about Third come State. This some introductory additional after some I'm start Washington Quarter off

our You'll on Slide quarterly highlights find X.

in been our Interest rates adjusted billings And X infrastructure of public The in This be goal first frequently in the market. came to continue years, healthy time quarter. run revenue as was years leadership large got We as a during and affected in For advance our operations. of Chief IPO, across This rate of the in noteworthy strength within waiting third Swayze year as down is promoted X on transportation of net our quarter, we building in first exciting the we that net he's given the an would EBITDA running. a Dan us that annual in In prior $XXX had time the the continuing Officer, growth year-over-year markets reaching quarter. divisions the million last firm's $XXX late within service nearly change revenue for all discussed full a $XXX that first our July, Operating the for history. company. gross several our we million we revenue, hit reported over we resulted and was toward a to services accomplishment role of reenergized million. which awards the underway is case, have the and ground finally hoped to XXXX,

decided and elected Mike to retirement. leadership the company. his In upon both interest Bruen with Mike leadership the of operations from responsibilities, expected non-day-to-day retire of resigned immediately of independent however, settle Bowman from after clarity timely the engaging Once reassignment nearly and him position in not it he oversight what he company. the We was newly into wanted, and role, an and strategy Mike of governance his years announcing the President, both of roles of to XX

forecasting commitment paying of revenue improvement efforts forecasting. we confident to third and redoubled continual started labor labor, as the to in squarely been refill we've align is operations the our extremely diligent I'm there pleased. the to Dan's At position adjustments and during hands, do revenue. I'm evidenced already leading of dividends staffing couple we have He's or same Bruce past intend better job of now, we day-to-day implemented of the alongside bottom-up by performance. will results. For The alignment remain President. about now me and not and These quarter time, of proper as accurately reassign right months

outpace backlog backlog X. $XX revenue. during X/X in million, was to markets Our attributable grew end QX, work work, increased Since to balance the XX%. remain approximately of well and bookings new from that Year-over-year, book-to-burn was resulted healthy a which acquired which of ratio by new quarter, our of the continues sales robust backlog coming the of with above

With Okay. to call Bruce over going I'm that, financial to the results. turn discuss to Bruce? the

Bruce Labovitz

Well, was results Gary. and Thanks, we to Terrific. last during an it our all-hands-on the to effort deck quarter solid released operations realign night. refocus certainly the deliver

Net project industry quick the revenue we expenses non-GAAP billing refer metric to standard net that by revenue a revenue revenue. gross reminder everyone, generated from our by an eliminating to service interchangeably. pass-through As and net represents is workforce

I'll Slide respectively. at year-over-year we've revenue net third quarter Year-to-date, to year-over-year and revenue million. generated $XXX and $XXX X. with was of So gross XX% Gross of of revenue revenue, XX% $XXX.X million with XX% the revenue XX%, million million in net $XXX represents increases which start on up up

we revenue. implemented quarter, with align targeted staffing company and current forecast the During the to labor our adjustments throughout better

of for effect last last margin been compared QX labor adjustments XX.X% any margin was basis points XXX SG&A basis, of XX.X% quarter gross On this XX.X%. revenue down at gross a to third XX.X% quarter these gross as compared time sequential year, to the year. without giving Year-to-date a this as XX% in percent to the to Our as has year. was as compared

stock you'll compared in million which progress not as which XXXX, revenue. roughly of in stock expense related million in grow. is still leverage X% Year-to-date, roughly net economies $XX.X of million $X.X million, our total year. is expense to noncash purchase be to we of $X.X X% for will noncash it quarter the stock scale to million the destination, X, Slide expense $X.X On our meaningful stock projecting last employee compensation We're compensation was this efforts see a While is includes $XX plan. to compensation

this around X% under quarter ahead, around in to EBITDA the thereafter. restructuring from the net to related that during X% Looking X% million to onetime a last labor adjustments year are just to We to in or increased Adjusted and expect million for XXXX drop we the percentage range labor us. settle believe the margin $X.X of XX.X% behind quarter EBITDA of million roughly quarter. $XX costs revenue. now $X.X Adjusted on included

ended For which the XX.X% labor. achieve still million a million, on can sustained was year teens September revenue. margin X last believe over margin we $X.X high adjusted XX, scale optimized a We increased EBITDA net to months with at $XX.X

received of acquired I by detail, Before and part change comments companies of to in acquired I'll To small the after Based in quarters. our on revenue market of X organic periods. revenue base we're to filings, current consistency revenue prior no of gross organic we point prior our about talk of growth, presentation considering out the the a from presentation we've be methodology quickly between the longer calculate revenue however, from in relating reported table. remain modifying revenue consistent period

As was the XX% the release Utilities from mapping, from XX% Slide XX% includes environmental detailed in from Infrastructure, mining markets, and press and and quarter XX% Transportation, from Power services. gross revenue emerging on water X, resources, Building for of and imaging which

basis As more emerging percentage nearly is or basis markets down compared Building or doubling. Infrastructure year, with a The last from also Environmental part by large to was revenue the XXX but increasing the distribution Services. XXX roughly of vertical XX%, revenue points This acquisition points gains of it's nearly due is than other gross Water in net to same. Serdex, of in as and

revenue and quarter, revenue of and $XX.X gross third During or roughly $XX.X was net net acquired million gross from companies million was revenue. XX% the

of acquired in This High year-end, QX FCS. and revenue acquisitions Excellence, through Blankenship, Roundtry Moore, acquisition made At TCE, list. included CFA, revenue Cerdix, we quarter, the Dennis, Hess will Excellence XXXX, off Spefluis, SRoundry, Mesa, Element, fall Robel meaning

Slide followed of to that different was for past. growth end net and XX%, which at Building Utilities period the markets the trailing by Power the at trailing total Transportation we've organic quarter was basis. Infrastructure. Organic Power revenue X.X% XX% last Building net in emerging significant a revenue all little view a organic revenue the the X growth to followed the year, of X largest On third X. compared of quarters X-quarter basis, was of contributor, end markets during during in with trailing quarter Transportation at Turning by as at approximately most than and Nominally, organic at emerging is Utilities, included next X%. This growth quarters net the and was revenue Infrastructure at of net third presented in and the XX%,

the timing a created the volatility and this quarters, growth for Given growth X-quarter feel we understanding inconsistent by frequency trailing acquisitions presentation trends. better perspective between of offers of

Power period Again, X.X% approximately basis companies largest last XX, XX% growth. the at emerging growth bit of considered Organic Building roughly markets continue percentage or contributed X and XXXX, Infrastructure months net was September XX%, revenue ended net from higher. the And to at We and growth Infrastructure months X.X% both will and all the $XX.X largest Transportation rebound moderate a likewise was X compared at gross same will revenue Utilities markets from to followed was growth that $XX.X XX%, revenue that the was the and X-month revenue. was net into net transportation believe gross at while organic. acquired under growth is nominal from the again, as now million just starting X%. organic year, little for Building of where revenue million For by emerging

X. Slide to Turning

plenty million on as available. capital with hand, is of of $XX leverage sheet balance Our been healthy low and it's as roughly cash

X.Xx adopted capital. line to to sequentially of X operations a $XX and XX debt XXXX CapEx up back flow available, $XX position the with from ratio $X.X use changes from X.Xx in opportunity we a was of R&D in forward file interestingly, respect $XX year-to-date having of 'XX which capacity million returns. close flow Net of cover found from for adjusted our ourselves was our XX liquidity, leverage X before operations to the returns had cash quarters through June of position sufficient in roughly October, unexpectedly Our our million $XX quarters Cash accordance approximately and financing million With in credit million working September represents we EBITDA million, adjusted is $XX cash at XXXX. with the months X is and for equipment trailing cash EBITDA. on to million, the from

Pricewaterhouse continued This As filing our us to advisers the without guidance reach expected at released to IRS expected returns. was approximately allowed been we payment basis tax it to us not a accruing and as without million and R&D we issued to had make approach $XX for our enabled expense to penalties. out, position the October definitive have deductibility, turned for file remitting reasonable prior

to further see in disclosure So will stay for about was will that XX-Q. since deemed return now. the be event, the filing a $XX the you the subsequent UTP us with And million of reportable

cover just back to an $XX.XX stock XXX,XXX buy the to of treasury $XX associated approximately the outstanding. had vesting. average quarter. million million September to of include of XX, shares price of million our we about does authorization And XX.X common authorization not During of stock This have today, shares purchased we used with under outstanding. end since share. stock as at the shares we quarter, our On capital We've repurchase under the shares approximately taxes per shares continued XX.X

that than Slide million the You $XX over the XX. backlog quarter, we Gary $XX $XXX more is end X million more said, of as at QX can of of the gross XXXX, had and June million, see which end than on

derived distribution result While quarter transportation in the quarter. to The from was was the backlog last revenue over a the of million overweighted $XX sequential balance orders. new of is increase third slightly to relative of acquired backlog, approximately

Given much I read not that of and projects, cycle mismatch. into sales the transportation nature longer-term the of nature would our generally

revenue acquisition yesterday, up threshold net we Turning added not have accommodate XXXX to we it. recent Slide increased and the the release reaffirmed EBITDA, the the which rounding we'll XX. reached outlook ExelTech revenue adjusted In our pick to would if from

net pro We net a of full for X% year represents outlook XXXX organic for to which revenue based million, growth net million acquisitions adjusted year as revenue revenue forma introduced between basis. on also $XXX the partial XXXX and of $XXX X%

to adjusted million $XX $XX of EBITDA, net XXXX a XX% range a for we're For revenue with projecting our outlook margin XX% on million. to

closed As always, future that today. as excludes acquisitions of not

response benefit in revenue evidenced more EBITDA roughly with respect the to message equity XXXX last reduction clear and X% by to As at guidance, time. than no X% reduction quarter's there's stretching this that adjusted reduction is value the XX% guidance to to to our guidance roughly to

compared size. meaningfully revisit throughout multiples to our we will not our quarterly with that undervalued we such, XXXX. reports is firms our As comparable demonstrates current as at to in marketplace and for in hopeful other connection our year-end We're this that damaged the transactions equity outlook quarter the peers Bowman and our see market is and

Before I New the in see week, Chicago the the website year. Baird be remainder throughout our Check be a person. the Conference and calendar at and and I'll presenting in of we'll that I'll Conference next quickly where into Gary? others investor go, in next York mention Craig-Hallum year investors to meeting of

Gary Bowman

a capabilities. Okay. acquisition a and our utility rate by fact bridge management of several in professional Bruce. announced right combination growth well-established FCS The fueling has and Washington each a an Washington-based breadth and week, acquisition markets. industries. objectives engineering, firm. relationships the Geographically, cut of expanding FCS Fed It's state-based macro established Exeltech operational the They perspective, to structural is design, you, our practice and Consulting. beyond. Last and Exel with in complements the offerings. energized services renewable fits and immediate of consulting energy Tech rate years have design strategic on financial firm our first expertise, close for that are acquisition the Exel environmental other our and to this acquisition focused and provides of estate Group, Pacific planning program real July of Tech regional From Thank Bowman which we extensive transportation the associated national of into Northwest proximity XX-year-old engineering transportation expansion sciences customer the footprint The of

the real are sort apartments. future notable paralyzing and starts markets in policy And news rate effect However, build and markets, this for and project preparing landscape in estate-related see for multifamily first of around economic a uptick planning the on we the for particularly in such uncertainty that steps and rent restarts. is market pace as Good engineering us having regulatory and a in is activity market. of of cuts

Okay.

we're in were corridor of improvement of And transportation X the Several Ports roadway to making long-standing end of quarter. part where got Notable award and we Authority and year XX. In third our providing now is Cook which activity project with the through and contracting awarded expect quarter -- XX-mile comprehensive include to practice, Slide starts Illinois Philadelphia. include the project, now contracts the over the Allegheny XX to the $XX finally furthermore, first delivered we section a Turning for the the project award transportation, increase customers. highway. underway of developing that in the in expect project we with their Large Tunnel third from management million the and relating be dollars harbors to through the build fully transportation way Virginia group rehabilitation Others DOTI Right delayed for of wins million for County, part Illinois. XXXX both a these bypass several DOT were Turnpike among the a year. multiyear we a new Pennsylvania design in design services for U.S. latter

Our marine for with has disasters. resiliency got an platform in moving developed and and engineering, proprietary ever natural that sector enhanced and we've its facility Coastal aftermath more to high customers private public the delivery operators, asset forward. frequent new ability for altitude hopes pursue ferocious we've conditions prospects and innovative high is surveying aerial kit of combined our port

start expanding enhanced Also, opportunities been including waterfront to includes capabilities, South other leaders to areas, work recreational Savannah, and work and by Charlotte, Douglas Maine. in in comprehensive On waterfront recently and traditional others. our leveraged Airport facilities we services the focus development new we're to as this at redevelopment protection our The practice International expansion Pittsburgh, such Another of a inland of Charlotte Kentucky, contracted Carolina runway. Houston for North our and fronts, shore urban scope Ports in Charleston, aspect Philadelphia, boating Carolina. Harbors immediately which areas survey includes XX,XXX-foot and coastal marinas have pursue

toward agreement trending power our the seeing and and in Northern with Acquisitions awarded solutions. services. into is our moves were electrification service impact commissioning of A the the long- in Nevada we're more strength Gas, ongoing upwards in markets, decarbonization and our organic engineering with on-call positive is MEP California. our short-term uptick from and Revenue came have growth on in and And as an zero the protection a net notable growing expanding example Western acquisition. fifth assessments practice, industry fire we business. to all-electric the Additionally, continue area Southwest which group Fisher

surveying expanded hazardous additional facilities XX storage Marine from the recently sites. U.S. was for Corps Our an Japan contract and bases by material in

always years of and business, focus of Over growth has growth to a XX organic expansion. the in course nearly central approach been our our

long-term us culture, These tolerance attitude, growth robust is characterize track risk an attributes organic and eye record Our can a of today. markets. still a result good for of

us inclusion our elites as XXX premier ENR among design an global design engineering Our solutions. provider industry recent to brand in a and of top puts as firm comprehensive and company works solidify good

continue I to frequent markets we attractive over average and with readily be been several We'll that and XXXX, significantly adjacent revenue into Going size grow we'll acquisitive, to past likely can years. over continue in expect the bit less that time. we've focus than businesses on integrate a larger

ever culture multiples the activities. our firms, competitive While in make industry outsized and and play continue active more to that private for continues M&A equity in paying to our role approach we're larger successful us an will confident

to commitments year working. of remainder forecasting, XXXX. footing is stumbled we've the last Clearly, are the strategy firm and terms of our in deliver into our poised during and we but Our recovered quarter on

footprint services, our operator share make and answers. relationships deliver toward flow to turn diversification, for the deepening and organically, acquisitions for and value to creation importantly, have that process transition our cash leadership that, profitability, integration, most now I'll shareholders. excellence conversion efforts and call wallet With customer our long-term expand our broaden the Our while grow us and positioned questions back

Operator

comes first from Capital Jeff [Operator's line ROTH Martin of with the Instructions] The question Partners.

Jeff Martin

Good to quarter starting the show see put efforts through. the into to

So we if into done? the fourth I are -- heading internal guess quarter be a head the Are what with done to clean first in changes? did you remains not, we And with question, slate?

Gary Bowman

third But that changes We're always we that. and reached we've in journey. eye we -- destination there. our Clean quarter, the diligent an ever It's deliberate yes. made, consider over slate, on a keeping the

always that something So it's deal. done but evolves,

Jeff Martin

that. hear to Good

And Okay. updated different And that of assuming growth guidance, in you are maybe what organic for then you year? growth for respect you're had level us. with assuming to assumed, to previously detail that your if organic XXXX what that equation any relative help

Bruce Labovitz

growth focus basically Yes, organic year. this of looking out as it's Jeff, that is year around adjusted know on that conservative coming these next Again, that We've in than other the that. shute growing for X% -- for the related midpoint probably next I forward. on of as at don't there's significant acquisitions markets in. continuing we're any base to shifts strategy year

Jeff Martin

last Great. for And then the one me.

that moving mentioned And up? Could the you going maybe is would Surdex help to to plan give curious largest much of update you your date. forward. I acquisitions since move up relative You the of an us be then deals to on how question perspective how on to second get one part some acquisition the M&A that is performing size guess

Gary Bowman

it deals larger Right. we're needle. move as M&A it's strategy. Really, larger, an it's recognition and takes I'll in larger to say, getting a the evolution our the

a get, don't just -- we real we but little almost they target have frequent. the less a larger don't definition, a and size, get So larger by strategy, have any

We're and revenue lots moving fine. we're far synergy pleased seeing Surdex, far. of along As and it's cross-selling so as

Bruce Labovitz

goal in bought. we year, terms this next was Jeff, and of and you into a get we've double acquisitions an of the Surdex that. -XX year of revenue averaged to that about outlier revenue, in sort our talk digits about think that number sub setting acquisitions right, in

closer the to species that in of, that cut aside, and in revenue of ones increase ExelTech, to elements things the terms year that a acquisitions of call in more ExelTech as closer which of continue doing in of still XXs to was TCEs out, to of the kind were opposed putting that recent FCS, the it, bought. So smaller I the think let's couple and earlier and the the -- the turns but the the try amount number sort

Operator

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

Aaron Spychalla

to of half pipeline back know been I to Can big So awards focus more see to about a of in how that in there. first the continuing those you come you. some maybe out here just that Good to on and transportation. that's see for talk DOTs funding IIJA year? there, expand the starting come looks

Gary Bowman

seeing call, We of pipeline are mentioned continuing Exel the like we several expand the on acquisitions, to in Tech. our

inorganic robust the Chicago ago seeing So of operations, growth big of several they're and transportation our focus it's acquisition and a our strategy, some large but McMahon years projects. good

Bruce Labovitz

to you'll depth, brings of projects started bridge of an with see than we already certainly. also to do of with entrenched base already have we with Exel acquisition, their a already we how where nationally, Tech engineering additional groups them an structural we're sort but advance that That's things DOT, -- ever-growing of additional focused on opportunities let's started on there's larger try and but element being skill would the set engineering, that things expand bridge capabilities departments the of with for been they scope a can call we've kind like transportation teaming design in and services. better like, -- transportation they're Gary, many are and that working clients. mentioned of to breadth and adding breadth that

Gary Bowman

actively marketing We're markets with that in to early we're big aerial looking work brings. was the DOTs serve Surdex, with able state prior for survey not broad And innings us. transportation Surdex Surdex to our clientele, joining into now but

Bruce Labovitz

an of accelerant. those of bit it kind one momentum. of It's that a adds It's

DOTs. X, You XX X, get X, X,

Now to easier first than get XX the XX them are the of next XX. to

Aaron Spychalla

that and you can on No, reads for your might mean here that's business really forward? helpful some second election color. just what just early just me, moving the or for maybe thoughts And then

Gary Bowman

of that. innings. plate speaking be barely the early if think, We're assessing for in business. up we're positive We on anything, it to will our Certainly,

change some that. infrastructure fossil We We is that on and spending forward looking in cast in presence more market. fully anticipate robust make the regulatory will the gas. that. the environment have We to think that fuels a oil dice is and -- We're the

quite adverse So won't confident we that. see any on effect that we're

Some analysts feel to the of may that new administration privatization move infrastructure. some more

had in presence renewables, on robust the hopefully different in our will red effect. continue we're confident we So the we're in probably will how a already on created thinking apt in to our be part be PPP states clients. double If but the we regulatory thought party that lot on to the what down a economic in of increased lack more the marketing mining, renewables we'd our stay of so the of optimistic other renewables, fully do. change the environment probably And there's renewables focus party, the the to activity that developer election, IRA mining. it We're that won cautiously has much -- a

Operator

The next line Baird. the from question comes with J. Wittmann of Andy

Andrew J. Wittmann

guess just some it of historical to levels early you're to amount ask more backlog bit compare this just that terms to today, delays of shortfall. out work it XXXX. Is last those where just little it some look And work more? comes that of guiding if as received you it Is And were the at at about how on covered? the wanted received of in level the that permitting comment can that's and quarter of does here XXXX about a I I you also you've like looked reasons the for your the specifically, of notices less?

work confidence are wanted permitting 'XX your just that things in to and that for this place needed get outlook. to the get I the to So are

Gary Bowman

little Andy, some similar, these So might little couple of or I quicker. quarters relative next I'd because the characteristically in say, for bit backlog stacked characteristically stuff issues year kind more we've speaking, think little so is what only it's a But more relatively we bigger, for had bit to timing say been. it's similar is of that But obviously, generally year, next I the forecast last of It's a in that the of there's of quarters ready-to-go beneficially that a would nature. backlog and maybe a aligned. than hit

anticipate again, terms don't In of any permitting, hurdles that. real we with

Andrew J. Wittmann

Okay. That's helpful.

couple Just -- then. it the adjusted maybe Bruce? there's it looks Is and EBITDA bridge associated -- more looks been in bit the added clarifications there of your adjustments. other costs like historically. It in with line here has like back, Was that staffing than little for onetime is a it than the a

Bruce Labovitz

Yes.

Andrew J. Wittmann

sure And the time, related doing sorry, the organic make so script, in your then I go I'm through calculation you -- just on that the the Okay. -- can on changes just -- comments more to what can of understood growth just one you're now.

Gary Bowman

calculate base net which growing. eliminated organic were in acquired total the we've that to from trailing quarters revenue used than the X-quarter the For we prior from looking in top that. the was is using anything of the in is X rate quarter, same methodology was a terms last organic growth on at of X the so at third that growth looked quarters Anything used quarter, we more

of as the year-to-date, terms same been. it's In the it's

Andrew J. Wittmann

Sorry.

So you're in saying highlighted is that your release that a for that this NSR you Did the correctly? understand X% growth X-quarter I based organic quarter. result reported on that's

Gary Bowman

Trailing quarters X from third quarter. X quarters -- trailing

third to 'XX. and versus be So then it to third 'XX fourth third X through -- 'XX 'XX would

Andrew J. Wittmann

it. Got

the quarter? the going would under for I'm old been this a calculation different of methodology to third ways. What the have couple Okay. try maybe

Gary Bowman

flat -- would been quarter the So timing the there about discretely year. because the was third of have because of previous acquisitions in

Andrew J. Wittmann

Yes.

was to I trying Okay. understand. that's Yes, what

sense Okay. more makes That Okay.

curious, in you're I'm company did impact for in of the -- exclusive kind M&A just flow then terms the Or of deal kind quarter? mutually the I'm the of So they all to able organizational quarter actions execute? the just at pace, were changes the during that

Bruce Labovitz

changes a adversely didn't ability deals pace in is place. and machine affect The I'll to do deals. organizational our of it, still our call

Operator

comes line Company. The D.A. with of Davidson & the Brent Thielman next from question

Andrew J. Wittmann

to going XXXX. it able to thus expansion levers I A to able the context contract you're be in implied question in what that far? going it pull Is seen be in XXXX in around thinking XXXX? margin Is mix? expansion to of support levers the mean, beneficial Just What we've support that? implied what you're the that? are to are the margin about pull to

Bruce Labovitz

it's -- that costs starting We again, to we are would built I revenue. scale. think marginal we meter be line, top these think are, of the of that to that some associated are seeing in, growing projects to all don't the getting I we we overhead able some the certainly rates. improve improvement. So we're and multipliers -- it is that better can with be of into we're the takes the the continuing improvement think, economies some We marginally, our of know on think say we I Like contract as that's some

Gary Bowman

that. A continued always focus that pushed, and renewed on to a lever That's it's operational on be one focus excellence. that

Bruce Labovitz

at When we range We're of this quarter... look the in that.

Andrew J. Wittmann

Right.

able here than So -- well the is, you've with outgrow last that X more should been doing your things months the to in the some expectation you be especially of internally SG&A?

Gary Bowman

where I the labor with relationship revenue a more the and can the Yes. year. want next multiple in this labor SG&A. squeeze out again, We think of multiple quarter, of to for bit think little we're And range labor, of of year -- we be whole we

Andrew J. Wittmann

based business per stable having. the It se, tied you're that talking maybe affairs, of about exposure, maybe you're anticipating on state of then know sort of area And sort residential directly to companies you? I just your late. really slower some sounds building on as it is for like guess I trends the you're but just not to infrastructure, stats reaccelerate conversations of Okay. of

Just could around if curious be that. you talk

Gary Bowman

Yes, conversations, based just but are proposal quit -- we stable to into XXXX. injected level said, being that on do activity activity, and what on based not we new it's you into on of energy going see

Operator

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

Alexander Rygiel

quick questions A here. couple of

you of First Is comp swap compensation on first, about comp, more a comp? revenue. in a strategy? Is more? Can declining into stock-based as this little stock-based bit change percentage cash a that comment talk it a

Gary Bowman

it be that it but paradigm in is -- know absorbs now from of metering days. the has it There that of some into burn compensation, shifting compensation a do off just I growing more couple the of -- shift a of a a that revenue an cash-based with off level of grants stock bit is utilization of it's stock as to of percentage basis towards the pre-IPO may comp. increase of and think overall I don't there more things. is burned there yes, at old that compensation. the from of such looking It Yes, a grow ahead. combination having

Andrew J. Wittmann

helpful. And relates is X end of markets. your then as it some That to questions

comments the on if any reaccelerate? whether these First, any provide market opportunities data large data center or update And you can centers? and on secondly, then you're particular, multifamily really in AI seeing not

Bruce Labovitz

is centers, the robust. the activity On data

to engineering that continue it's site our market. We do the civil for building, in grow presence the Right we outside almost and of now, -- engineering.

mechanical the inside year, and building are looking the facilities. into electrical looking to We get at with opportunities opportunities some next

movement market. yes, multifamily. On the as significant I level the we proposals, are seeing multifamily, the of some say, residential -- interest from on as far Like in

of have year. that a activity we some see optimism we'll acceleration next the high degree multifamily So in

Gary Bowman

Yes, the Alex, the data today land. constraint is not power, the center market

ways, things a us. in of bleeding of couple lot so different a across for sectors are And

provide So is physical capacity of I for what an locations. is there in see data the demand ever-increasing activity for think center the side we power to

as You're certainly preliminarily about power very reading at folks are data starting centers. to for sources how look SMRs

directions. X -- coming we're from different it's So at us

Bruce Labovitz

hearing that centers, seeing, it's the I so market, not term, -- of data latency. this the they're AI think -- use the we're And from data right, to extensive I one things center in

data So to located as there's far as corridors. the can AI a be proximity flexibility where fiber to centers more lot

just for that that doing opens So opportunities up with work that areas it in to weren't before. dispersion more data us -- our we geographic center do

Gary Bowman

a about couple acres Hey, to Everybody a of inquiries, I get about center? told, rezonings landowners got applications a over. do left data be now data to lot or I'm from We reuse of a has can center. thinking change be

Operator

back additional remarks. for are closing I will left hand There it this to no questions at time. Gary

Gary Bowman

Thank Tia. you,

by you for over the quarter, close for this who all for Bowman work stockholders. hard of you all our participating and certainly morning. those good to I'll to part everybody work Just this done, Thank the investors thanking the are progress goals. And company us. everyone. wrap we'll evolve morning. into put we're continuing you, you reach for QX faith our our it to Thank with the this the pleased growth and quite With Thank in pleased with and quite that, up

Operator

concludes conference Thank call. today's That you.

You may now disconnect your lines.

Bowman Consulting (BWMN) 7 Nov 242024 Q3 Earnings call transcript