This conference call transcript was computer generated and almost certianly contains errors. This transcript is provided for information purposes only.EarningsCall, LLC makes no representation about the accuracy of the aforementioned transcript, and you are cautioned not to place undue reliance on the information provided by the transcript.
spk01: Thank you, Jaquita. Before we get started, please note that many of the comments made today are considered forward-looking statements under federal securities law. 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. 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. You can find this information together with the reconciliations to the most direct comparable GAAP information in the company's earnings press release and 8K filed with the SEC and on the company's investor website at investors.bowman.com. We will deliver prepared remarks today after which we will be taking live questions from published research analysts. Throughout the call, attendees on the webcast may post questions for management to answer on the call or in subsequent communications, but there will be no live Q&A for the webcast attendees. 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 Bowman.
spk00: Thank you, Bruce. And good morning, everyone, and thank you for joining the Bowman Consulting Group Q1 2024 earnings call. As he introduced with me this morning is Bruce Labovitz, our CFO. We want to welcome all of our new shareholders and thank everybody for taking time to participate this morning. We also want to welcome all the firm's new employees, including everyone who joined us recently from CertX and more consulting engineers. As usual, I'm going to start off with a quick business update, then Bruce will discuss our financial results. After that, I'll talk about our markets and pipeline before opening the line for questions. The first quarter of 2024, along with the start of the second quarter, have been both busy and impactful to our long-term journey. Turning first to the results of the quarter, I'm pleased to report that our net service billing rebounded from December's drop-off with three consecutive months of revenue increases. With year end 2023 now in our rearview mirror, we're on track as expected for healthy growth in 2024. As mentioned in our press release last night, demand for engineering services remains strong in all of our markets. While it's certainly notable the backlog is up $78 million or 31% year over year, I think it's more relevant to note the $24 million increase in growth backlog during the first quarter represented an increase of 8% over three months. The bulk of that increase was generated through new orders, with transportation commitments being a meaningful component of the quarter sales. As is typically the case in consequential election years, we see an uptick in urgency to produce transportation related projects as local, state and federal administrations promote infrastructure accomplishments. Since the end of the quarter, we have significantly increased our capital resources through a follow on equity offering. and increase in availability under our primary revolver, and the refinance of the CERDEX aviation and imaging assets. As of today, we have access to nearly $100 million of deployable capital between cash on hand, available debt, and free cash flow. As such, we are well positioned to continue to execute on our current strategic growth initiatives. At this point, I'm going to turn the call over to Bruce. Bruce?
spk01: 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 costs from gross revenue. A reconciliation of all non-GAAP metrics is available in the press release we issued last night. We completed a $57.5 million equity offering, which included $51.1 million of gross primary proceeds after exercise of the SHU. Due to the timing of the offering with respect to Good Friday, the offering closed on Monday, April 1st, 2024. As a result, the offering will be accounted for entirely as a second quarter event and none of the associated activity is reflected in Q1. 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 10Q we filed tonight will reflect all shares issued in connection with the offering along with subsequent acquisitions and any other stock-related activities. From a revenue perspective, the first quarter was a good rebound from the end of the fourth quarter for sure. We generated just under $95 million in gross revenue and just under $86 million in net service billing for a roughly
spk02: Ladies and gentlemen, please stand by as we reconnect Bruce Lyon. Again, please stand by. Again, ladies and gentlemen, please stand by again, ladies and gentlemen, please stand by.
Disclaimer