Bowman(BWMN) - 2024 Q2 - Quarterly Report

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].