Q1 2024 Bowman Consulting Group Ltd Earnings Call - Q&A
Good morning, ladies and gentlemen, welcome to the Bowman Consulting group L. T. D Q1, 'twenty 'twenty four earnings conference call and webcast. My name is Joe cleanup I will be your moderator for today's call all lines will be muted during the presentation portion of the call with the opportunity for questions.
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If you would like to ask a question. Please press star one on your telephone keypad I would now like to pass the conference over to your host Bruce. Please go ahead.
Bruce: Thank you <unk> before we get started please note that many of the comments made today are considered forward looking statements under federal Securities law.
Bruce: 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.
Bruce: And the company is not obligated to publicly update or revise these forward looking statements.
Bruce: In addition on today's call the company will discuss certain non-GAAP financial information such as adjusted EBITDA adjusted net income and net service billing.
Bruce: You can find this information together with the reconciliations to the most direct comparable GAAP information in the company's earnings press release, and 8-K filed with the SEC and on the company's Investor website at investors <unk> com.
Bruce: We will deliver prepared remarks today after which we will be taking live questions from published research analysts.
Bruce: Throughout the call attendees on the webcast may post questions for management to answer on the call or in subsequent communications, but there'll be no live Q&A for the webcast attendees.
Bruce: Replays of the call will be available on the company's investor website with that I'm going to turn the call over to Gary Bachman.
Gary P. Bowman: Thank you Bruce and.
Gary P. Bowman: And good morning, everyone and thank you for joining the Beaumont Consulting group Q1 2024 earnings call.
Bruce: Yes.
Bruce: Introduced.
Gary P. Bowman: With me this morning is Bruce labor, but it's our CFO.
Gary P. Bowman: We want to welcome all of our new shareholders and thank everybody for taking time to participate this morning.
Speaker Change: I also want to welcome all of the firm's new employees, including everyone, who joined US recently from <unk> and more consulting engineers.
Speaker Change: As usual I'm going to start off with a quick business update then Bruce will discuss our financial results.
Speaker Change: After that I'll talk about our markets and pipeline before opening the line for questions.
Gary P. Bowman: The first quarter of 2024, along with the start of the second quarter have been both busy and impactful to our long term journey.
Gary P. Bowman: Turning first to the results for the quarter I am pleased to report that our net service billing rebounded from december's drop off with three consecutive months of <unk>.
Gary P. Bowman: Revenue increases.
Gary P. Bowman: With year end 2023, now in our rearview mirror, we are on track as expected for healthy growth in 2024.
Gary P. Bowman: As mentioned in our press release last night demand for engineering services remains strong in all of our markets.
Gary P. Bowman: Certainly notable backlog is up $78 million or 31% year over year I think it's more relevant to note the $24 million increase in gross backlog during the first quarter represented an increase of 8% over three months.
Gary P. Bowman: Bulk of that increase was generated through new orders with transportation commitments being a meaningful component of the quarter's sales.
Gary P. Bowman: As is typically the case in consequential election years, we see an uptick and urgency to produce transportation related projects as local state and federal administrations promote infrastructure accomplishments.
Gary P. Bowman: Since the end of the quarter, we significantly increased our capital resources through a follow on equity offering and increase in availability under our primary under our primary revolver and the refinance of the <unk> X aviation and imaging assets.
Gary P. Bowman: As of today, we have access to nearly $100 million of deployable capital between cash on hand available debt and free cash flow.
Gary P. Bowman: As such we are well positioned to continue to execute on our current strategic growth initiatives.
Gary P. Bowman: At this point I'm going to turn the call over to Bruce Bruce. Thanks, Gary just as a reminder, we refer to net service billing and net revenue interchangeably. This is a non-GAAP revenue metric that nets subcontractor and outside production cost from gross revenue.
Bruce: A reconciliation of all non-GAAP metrics is available in the press release, we issued last night.
Bruce: As of the end of March at.
Bruce: At the end of March we completed a $57 $5 million equity offering which included $51 1 million of gross primary proceeds after exercise of the shoe.
Bruce: Due to the timing of the offering with respect to good Friday, the offering closed on Monday April one 2024.
Bruce: As a result, the offering will be accounted for entirely as a second quarter event and none of the association associated activity is reflected in Q1.
Bruce: This means the share counts reflected on the balance sheet and the P&L will not reflect the dilution, but the share count on the cover of the 10-Q, we file.
Bruce: Tonight, we will reflect all shares issued in connection with the offering along with subsequent acquisitions any other stock related activities.
Bruce: From a revenue perspective, the first quarter was a good rebound from the end of the fourth quarter for sure.
Bruce: We generated just under $95 million in gross revenue and just under $86 million and net service billing for a roughly 90.
Speaker Change: Ladies and gentlemen, please standby.
Bruce: As we reconnect gross line again, please standby.