Financial Data and Key Metrics Changes - The company reported over 103 million revenue from 2020, the last full year before the IPO [6][14] - Gross revenue increased by 21% year-over-year to 101 million [14] - Year-to-date gross revenue reached 281 million, up 26% year-over-year [14][18] - Adjusted EBITDA for the quarter was just under 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 44 million, with a sequential increase of 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 23.89 per share [33] - The company expects to achieve a net revenue outlook for 2025 of 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]
Bowman(BWMN) - 2024 Q3 - Earnings Call Transcript