Financial Performance - Gross contract revenue for Q4 2024 was $113.2 million, a 21.7% increase from $93.0 million in Q4 2023[5] - Net service billing for Q4 2024 reached $98.6 million, up 22.5% from $80.5 million in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $17.0 million, reflecting a 51.8% increase compared to $11.2 million in Q4 2023[5] - The company reported net income of $5.9 million for Q4 2024, compared to a net loss of $7.7 million in Q4 2023[5] - For the full year 2024, adjusted EBITDA was $59.5 million, a 26.6% increase from $47.0 million in 2023[5] - Net income for the year 2024 was $3.034 million, compared to a net loss of $6.624 million in 2023, marking a significant turnaround[23] - Adjusted earnings per share for Q4 2024 were $0.72, up from $0.33 in Q4 2023, reflecting a 118.2% increase[26] - Basic earnings per share for Q4 2024 were $0.34, compared to a loss of $0.59 in Q4 2023[26] Operational Metrics - Full-year 2024 gross backlog increased to $399.0 million, a 30.4% rise from $306.0 million in 2023[5] - Cash flows from operations for Q4 2024 were $11.9 million, compared to a negative cash flow of $0.5 million in Q4 2023[5] - Cash provided by operating activities for the year 2024 was $24.301 million, compared to $11.722 million in 2023, indicating a 107.3% increase[23] - The company reported a total gross revenue of $426.564 million for the year 2024, representing a 23.2% increase from $346.256 million in 2023[34] - The company’s organic growth for gross revenue in 2024 was 6.6%, with notable contributions from the Transportation segment, which grew by 16.7%[36] Strategic Initiatives - The company made eight strategic acquisitions in 2024, contributing approximately $60 million in run-rate net service billing[12] - Bowman is increasing its fiscal year 2025 guidance to a net revenue range of $428 - $440 million and adjusted EBITDA of $70 - $76 million[10] - The company incurred $24.450 million in acquisitions during 2024, slightly down from $25.687 million in 2023[23] Segment Performance - The Emerging Markets segment saw significant growth, with Q4 2024 revenue of $12.939 million, a 152.9% increase from $5.116 million in Q4 2023[34] - For the year ended December 31, 2024, the Building Infrastructure segment accounted for 51.4% of total gross revenue, while Emerging Markets contributed 10.4%[34] - The company’s gross backlog as of December 31, 2024, was composed of 41% Building Infrastructure, 35% Transportation, 15% Power and Utilities, and 9% Emerging Markets[42] Cash and Stock Management - The company repurchased $34.4 million of common stock during the twelve months ended December 31, 2024[6] - The company reported a decrease in cash and cash equivalents to $6.698 million at the end of 2024, down from $20.687 million at the beginning of the period[24] - The weighted average shares outstanding for Q4 2024 were 16,345,248, an increase from 13,043,111 in Q4 2023[21] - The company reported a net cash used in investing activities of $27.466 million for the year 2024, compared to $27.156 million in 2023[23] Expense Management - Total operating expenses for the year 2024 were $224.803 million, an increase from $176.689 million in 2023, representing a 27.2% rise[21]

Investment Preferences - The analyst favors investing in infrastructure and consulting service businesses due to their high margins and asset-light nature [1] - Bowman Consulting Group (NASDAQ: BWMN) is highlighted as a preferred investment target [1] - The analyst focuses on undercovered European and US companies, emphasizing value and income as key components of the investment thesis [1] - A diversified portfolio is recommended, with Europe containing several undercovered companies worth considering [1] - The analyst often adopts a contrarian stance toward prevailing market opinions [1] Analyst Background - The analyst has 20 years of consulting experience across various sectors, including Hi-Tech, Biotech, Healthcare, Mission Critical, Retail, Residential, and Commercial Sectors [1] - The analyst has been investing in the markets for over 15 years [1] - The analyst is associated with BioCGT Investor, who is also an author on Seeking Alpha [1] Disclosure - The analyst has no current stock, option, or derivative positions in the mentioned companies but may initiate a beneficial Long position in BWMN within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2]

Group 1 - The Municipality of Princeton has authorized Bowman Consulting Group, Ltd. to revamp Community Park South, allocating $709,201.50 for design services in the first phase of the project [2][4]. - The project involves renovating a 26-acre area bordered by Route 206, Birch Avenue, Community Park Elementary School, and Community Park Pool [2]. - The selection process for the consulting firm included proposals from nine firms, with four shortlisted for interviews, leading to a unanimous decision in favor of Bowman Consulting Group based on performance and criteria [3][4]. Group 2 - Funding for the initial phase of the project has been included in the 2024 capital budget, indicating a long-term commitment to the park's revitalization [4]. - Councilwoman Michelle Pirone Lambros emphasized the park's significance to the community and the importance of investing in its future for health, fitness, and recreation [5]. - Once the revitalization process begins, officials plan to seek additional funding from state and local federal programs [5].

Financial Data and Key Metrics Changes - The company reported over $100 million in net revenue for Q3 2024, marking a historic achievement as it surpassed the $103 million revenue from 2020, the last full year before the IPO [6][14] - Gross revenue increased by 21% year-over-year to $113.9 million, while net revenue rose by 23% to $101 million [14] - Year-to-date gross revenue reached $313 million, reflecting a 24% increase, and net revenue was $281 million, up 26% year-over-year [14][18] - Adjusted EBITDA for the quarter was just under $17 million, a $1.9 million increase from last year, representing a 16.7% margin on net revenue [18][19] Business Line Data and Key Metrics Changes - The distribution of gross revenue for the quarter was 49% from Building Infrastructure, 19% from Transportation, 18% from Power and Utilities, and 14% from emerging markets [21] - Year-over-year, Building Infrastructure's contribution to gross revenue decreased by 550 basis points, while emerging markets increased by nearly 800 basis points [22] - Organic growth of net revenue for the trailing four quarters was approximately 8.3%, with the most significant growth in emerging markets at 63% [24][27] Market Data and Key Metrics Changes - The company experienced a 27% year-over-year growth in backlog, with a total backlog of $380 million at the end of Q3 2024 [12][34] - The cash flow from operations for the nine months was $44 million, with a sequential increase of $5.5 million from June 30 [30] - The company has approximately $12 million in cash on hand and a leverage ratio of 1.6 times trailing four quarters adjusted EBITDA [29] Company Strategy and Development Direction - The acquisition of Exeltech Consulting is expected to enhance the company's national transportation practice and expand its service offerings [40][42] - The company aims to focus on larger M&A deals moving forward, recognizing that larger acquisitions are necessary to significantly impact growth [60] - The strategy includes a commitment to operational excellence and improving economies of scale to support margin expansion [82] Management's Comments on Operating Environment and Future Outlook - Management noted that the first Fed rate cut in years has energized real estate markets, although uncertainty remains regarding future rate cuts [43] - The company anticipates continued growth in the transportation sector, particularly with the recent awards and projects starting to move forward [44][65] - Management expressed optimism about the impact of the recent election on infrastructure spending and the potential for increased activity in fossil fuels and renewables [68] Other Important Information - The company repurchased approximately 500,000 shares of common stock under a $25 million authorization at an average price of $23.89 per share [33] - The company expects to achieve a net revenue outlook for 2025 of $422 million to $437 million, representing organic growth of 5% to 9% [37] Q&A Session Summary Question: Are internal changes complete, and is the company heading into Q4 with a clean slate? - Management confirmed that they consider the internal changes complete and are diligent in monitoring ongoing operations [56] Question: What level of organic growth is assumed for the updated 2025 guidance? - The midpoint for organic growth is projected at around 7% for 2025, based on adjusted figures from the current year [58] Question: How is the Surdex acquisition performing? - Management reported positive performance from the Surdex acquisition, noting cross-selling and revenue synergies [60] Question: How does the backlog for 2025 compare to historical levels? - The backlog is described as similar in nature but larger than in previous years, with more ready-to-go projects expected to hit quicker [72] Question: What are the levers for margin expansion in 2025? - Management indicated that improving economies of scale and operational excellence will support margin expansion [82]

Bowmar TRANSPORTATION POWER & UTILITIES ENERGY BUILDING INFRASTRUCTURE WATER RESOURCES Q3 2024 EARNINGS CALL | NOVEMBER 7, 2024 | NASDAQ: BWMN Presenters: Gary Bowman Chairman & CEO Bruce Labovitz Chief Financial Officer Safe Harbor Statement Please note that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to diffe ...

Financial Performance - Gross contract revenue for Q3 2024 was $113.9 million, a year-over-year increase of 20.7% from $94.4 million in Q3 2023[148] - For the nine months ended September 30, 2024, gross contract revenue reached $313.3 million, reflecting a year-over-year growth of 23.7% compared to $253.3 million in the same period of 2023[148] - Net income for Q3 2024 was $0.8 million, down from $1.2 million in Q3 2023, while Adjusted EBITDA increased to $17.0 million from $15.1 million[148] - Adjusted EBITDA for Q3 2024 was $16.97 million, with an adjusted EBITDA margin of 16.7% compared to 18.3% in Q3 2023[175] - Adjusted EBITDA increased by $1.9 million or 12.7% to $17.0 million for the three months ended September 30, 2024, compared to $15.1 million for the same period in 2023[195] - Adjusted EBITDA increased by $6.7 million or 18.8% to $42.5 million for the nine months ended September 30, 2024, compared to $35.8 million for the same period in 2023[215] Revenue Composition - The company reported that gross contract revenue derived from its workforce was 89.0% for Q3 2024, compared to 87.0% in Q3 2023[148] - Hourly contracts accounted for approximately 9% of gross contract revenue in Q3 2024, down from 12% in Q3 2023[157] - Lump sum contracts represented approximately 91% of gross contract revenue for Q3 2024, up from 88% in Q3 2023[158] - Revenue from acquisitions contributed $23.3 million to the increase in gross contract revenue for Q3 2024[175] - Revenue from emerging markets surged by $11.7 million or 280.5% in Q3 2024, primarily due to the acquisition of Surdex Corporation[178] - The public sector represented 32.3% of gross contract revenue in Q3 2024, up from 14.8% in Q3 2023[179] Cost and Expenses - Direct payroll costs increased by $8.3 million or 24.9% to $41.7 million in Q3 2024, accounting for 76.8% of total contract costs[182] - Operating expenses rose by $13.1 million or 28.4% to $59.2 million in Q3 2024 compared to $46.1 million in Q3 2023[186] - Total contract costs for Q3 2024 increased by $8.6 million or 18.8% to $54.3 million, representing 47.7% of total contract revenue[181] - Total contract costs increased by $26.7 million or 21.5% to $150.8 million for the nine months ended September 30, 2024, compared to $124.1 million for the same period in 2023[202] - Direct payroll costs increased by $24.2 million or 25.7% to $118.5 million for the nine months ended September 30, 2024, compared to $94.3 million for the same period in 2023[203] - Total operating expenses rose by $39.8 million or 31.5% to $166.0 million for the nine months ended September 30, 2024, compared to $126.2 million for the same period in 2023[207] Tax and Income - Income tax benefit for Q3 2024 was $1.9 million, an increase of $1.8 million from a $0.1 million benefit in Q3 2023[191] - Income tax benefit increased by $4.6 million to $6.5 million for the nine months ended September 30, 2024, compared to $1.9 million for the same period in 2023[211] - Loss before tax increased by $2.2 million to ($1.1) million for the three months ended September 30, 2024, compared to $1.1 million of income for the same period in 2023[192] Financing and Capital Structure - On April 1, 2024, the company raised approximately $51.1 million from a common stock offering, issuing 1,502,942 shares at $34.00 per share[152] - The Company entered into a new $100 million revolving credit facility, replacing the previous $70 million facility, with an outstanding balance of $32.3 million as of September 30, 2024[228] - Interest rates on the new revolving credit facility range from 7.22% to 9.20% as of September 30, 2024[228] - The Company has finance lease obligations totaling $28.6 million as of September 30, 2024, with fixed interest rates, indicating no exposure to market risk related to these obligations[240] - The New Credit Agreement requires compliance with certain financial covenants, including a fixed charge coverage ratio and leverage ratio of debt to EBITDA[228] - The Company is in compliance with all covenants under the New Credit Agreement as of September 30, 2024[228] Growth and Backlog - Backlog increased by $74.1 million or 24.2% to $379.8 million during the nine months ended September 30, 2024, compared to $305.7 million at December 31, 2023[217] - The Company evaluates options for capital and operational growth, considering structured debt and equity as potential sources of additional capital[229]

Core Viewpoint - Bowman Consulting (BWMN) reported quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.44 per share, representing an earnings surprise of -31.82% [1]. Financial Performance - The company posted revenues of $113.93 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.51%, compared to year-ago revenues of $94.43 million [2]. - Over the last four quarters, Bowman Consulting has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2]. Stock Performance - Bowman Consulting shares have lost about 37.5% since the beginning of the year, while the S&P 500 has gained 21.2% [3]. - The current consensus EPS estimate for the coming quarter is $0.38 on revenues of $110.37 million, and for the current fiscal year, it is $0.92 on revenues of $424.3 million [7]. Industry Outlook - The Business - Services industry, to which Bowman Consulting belongs, is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook [8]. - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5].

Financial Performance - Gross contract revenue for Q2 2024 was $104.5 million, a year-over-year increase of 26.2% from $82.8 million in Q2 2023[127]. - For the first half of 2024, gross contract revenue reached $199.4 million, reflecting a 25.5% growth compared to $158.9 million in the same period of 2023[127]. - The net loss for Q2 2024 was ($2.1) million, compared to a net loss of ($0.6) million in Q2 2023[127]. - Adjusted EBITDA for Q2 2024 was $13.4 million, up from $11.1 million in Q2 2023[127]. - Adjusted EBITDA for Q2 2024 was $13.4 million, representing a margin of 14.3%, compared to $11.1 million and a margin of 15.0% in Q2 2023[157]. - Adjusted EBITDA increased by $2.4 million or 21.3% to $13.4 million for the three months ended June 30, 2024, compared to $11.1 million for the same period in 2023[168]. - Adjusted EBITDA increased by $4.8 million or 23.2% to $25.5 million for the six months ended June 30, 2024, compared to $20.7 million for the same period in 2023[188]. - Net loss increased by $3.5 million to ($3.6) million for the six months ended June 30, 2024, compared to ($0.1) million in 2023[185]. Revenue Breakdown - Hourly contracts accounted for 10% of gross contract revenue in Q2 2024, totaling approximately $10.5 million[134]. - Lump sum contracts represented 90% of gross contract revenue for both Q2 2024 and the first half of 2024, totaling approximately $94.0 million and $179.1 million, respectively[136]. - Revenue from acquisitions contributed $17.5 million to the increase in gross contract revenue for Q2 2024[151]. - Revenue from the building infrastructure market increased by $7.3 million or 15.0% in Q2 2024, with 33.2% derived from residential assignments[154]. - Revenue from power and utilities increased by $3.9 million or 24.8% in Q2 2024, primarily due to acquisitions and expansion of utility projects[154]. - Revenue from emerging markets surged by $7.2 million or 269.2% in Q2 2024, largely due to the acquisition of Surdex Corporation[155]. - Revenue from the building infrastructure market increased by $15.7 million or 16.9% for the six months ended June 30, 2024, compared to the same period in 2023[173]. - Revenue from power and utilities increased by $9.0 million or 31.2% for the six months ended June 30, 2024, compared to the same period in 2023[173]. - Revenue from emerging markets increased by $10.3 million or 202.4% for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to the acquisition of Surdex Corporation[174]. Costs and Expenses - Total contract costs for Q2 2024 increased by $8.6 million or 21.0% to $49.6 million, representing 47.5% of total contract revenue[157]. - Direct payroll costs rose by $7.0 million or 21.8% to $39.1 million in Q2 2024, accounting for 78.8% of total contract costs[157]. - Operating expenses increased by $13.3 million or 31.1% to $56.1 million in Q2 2024, driven by higher selling, general, and administrative expenses[160]. - Total contract costs increased by $18.1 million or 23.1% to $96.5 million for the six months ended June 30, 2024, compared to $78.4 million for the same period in 2023[176]. - Direct payroll costs increased by $15.9 million or 26.1% to $76.8 million for the six months ended June 30, 2024, compared to $60.9 million for the same period in 2023[176]. - Total operating expenses increased by $26.7 million or 33.4% to $106.7 million for the six months ended June 30, 2024, compared to $80.0 million in 2023[180]. Cash Flow and Financing - Net cash provided by operating activities was $5.6 million for the six months ended June 30, 2024, compared to $2.1 million in 2023[195]. - Net cash used in investing activities increased by $5.0 million to $20.6 million for the six months ended June 30, 2024, compared to $15.6 million for the same period in 2023, primarily due to acquisitions[199]. - Net cash provided by financing activities during the six months ended June 30, 2024, was $17.5 million, an increase of $7.5 million from $10.0 million for the same period in 2023, mainly due to net proceeds of $47.2 million from a common stock offering[200]. - The Company entered into a new $100 million revolving credit facility on May 2, 2024, replacing the previous $70 million facility, with an outstanding balance of $27.8 million as of June 30, 2024[201]. - As of June 30, 2024, the interest rates on the Revolving Credit Facility ranged from 7.66% to 9.70%[201]. - The Company sold 1,502,942 shares of common stock for gross proceeds of approximately $51.1 million on April 1, 2024, under a shelf registration statement[204]. Tax and Losses - Income tax benefit decreased by $0.4 million to $1.2 million for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023, with an effective tax rate of 34.0%[164]. - Loss before tax increased by $1.0 million to a loss of $3.3 million for the three months ended June 30, 2024, compared to a loss of $2.3 million for the same period in 2023[165]. - Income tax benefit increased by $2.8 million to $4.6 million for the six months ended June 30, 2024, compared to a $1.8 million benefit in 2023[184]. Backlog and Future Outlook - Backlog increased by $45.7 million or 14.9% to $351.4 million during the six months ended June 30, 2024, compared to $305.7 million at December 31, 2023[190]. Compliance and Risk - The Company is required to comply with certain covenants under the New Credit Agreement, including maintaining a fixed charge coverage ratio and leverage ratio of debt to EBITDA[201]. - The Company has no material off-balance sheet arrangements or special purpose entities[205]. - The Company is not party to any litigation that would materially affect its results of operations or financial position as of the date of the report[216].

Financial Data and Key Metrics Changes - Gross revenue for Q2 2024 reached $104.5 million, marking a significant milestone as the first time surpassing $100 million in a single quarter [7] - Net revenue was $94 million, reflecting a 27% increase compared to Q2 2023, with a net to gross ratio of 90% [7] - Gross margin improved to 52% from 50% year-over-year, while SG&A expenses remained steady at around 52% of net revenue [7] - Adjusted EBITDA increased by 21% to $13.4 million, representing a 14.3% margin on net revenue [8] - For the first half of 2024, gross revenue totaled $199.4 million, with net revenue up 27% to $179.7 million compared to the first half of 2023 [8][9] Business Line Data and Key Metrics Changes - Revenue by vertical for Q2 2024 included building infrastructure at 53%, transportation at 18%, power at 19%, and emerging markets at 9% [10] - Organic growth rates for Q2 2024 were 33% for emerging markets, 17% for transportation, 10% for power, and effectively 0% for building infrastructure, resulting in a weighted average of around 6% [11] - For the first half of 2024, organic growth rates were 57% for emerging markets, 23% for power, 15% for transportation, and around 2% for building infrastructure, leading to a weighted average of approximately 10% [12] Market Data and Key Metrics Changes - Backlog increased by 19% year-over-year and 5% compared to the end of the previous quarter, with 48% in building infrastructure, 27% in transportation, 18% in power, and 9% in emerging markets [10] - The company noted a slowdown in the build-for-rent market, which is expected to reignite once interest rates decrease [31] Company Strategy and Development Direction - The company is focused on diversifying its services and expanding capabilities in renewable energy engineering and geospatial business [4] - Management emphasized the importance of post-closing integration of acquired firms to enhance operational efficiency and reporting accuracy [5] - The company is committed to maintaining a right-sized workforce and rationalized overhead to improve profitability [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the building infrastructure sector but remains optimistic about its long-term performance [29] - The company is adjusting its outlook for 2024 net service billing to a range of $375 million to $385 million and adjusted EBITDA to $58 million to $63 million, reflecting a conservative approach due to current market conditions [18] - Management expressed confidence in the transportation segment, anticipating that delayed projects will commence in the second half of the year [34] Other Important Information - Non-cash stock compensation decreased by nearly 12% year-over-year, with projections for 2024 expected to be between $24 million and $26 million [9] - The company had approximately $71 million in net debt at the end of the quarter, with a debt to adjusted EBITDA ratio of just under 1.4 times [14] Q&A Session Summary Question: Changes in Building Infrastructure Market - Management noted that while they believe in the long-term strength of the building infrastructure market, clients are currently holding off on projects due to interest rate concerns [29][30] Question: Delays in Transportation Projects - Delays in transportation projects are attributed to longer negotiation processes and personnel shortages, but management remains confident that these projects will commence in the second half of the year [32][34] Question: Free Cash Flow Expectations - Free cash flow conversion is expected to remain around 70%, but short-term impacts from tax changes may affect cash flow [39] Question: EBITDA Growth Analysis - The increase in EBITDA is constrained by not hitting expected revenue levels and the need to optimize the cost structure [43] Question: Market Focus and Labor Adjustments - The company is assessing labor utilization to improve margins without making drastic workforce changes [54]

Bowmar TRANSPORTATION POWER & UTILITIES ENERGY BUILDING INFRASTRUCTURE WATER RESOURCES Q2 2024 EARNINGS CALL | AUGUST 7, 2024 | NASDAQ: BWMN Presenters: Gary Bowman Chairman & CEO Bruce Labovitz Chief Financial Officer Safe Harbor Statement Please note that many of the comments made today are considered forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ ...