Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading
specialty construction company, today reported its financial
results for the fourth quarter and full year ended December 31,
2023.
Highlights for the quarter ended
December 31, 2023:
- Contract revenues of $201.6
million
- GAAP net loss was $4.4 million or
$0.13 per diluted share
- Adjusted net income was $2.6
million or $0.08 per diluted share
- Adjusted EBITDA was $14.8
million
- Backlog and contracts awarded
subsequent to quarter end totaled $883 million
Highlights for the year ended December
31, 2023:
- Contract revenues of $711.8
million
- GAAP net loss was $17.9 million or
$0.55 per diluted share
- Adjusted net loss was $11.4 million
or $0.35 per diluted share
- Adjusted EBITDA was $23.8
million
See definitions and reconciliation of non-GAAP measures
elsewhere in this release.
Management Commentary
“We are pleased that our fourth-quarter results demonstrated
progress against our strategic plan to deliver profitable growth.
Fourth-quarter 2023 adjusted EBITDA was $14.8 million or a 7.3%
adjusted EBITDA margin--a significant year-over-year improvement
from fourth quarter 2022 adjusted EBITDA of $3.2 million or an
adjusted EBITDA margin of 1.6%,” said Travis Boone, CEO of Orion
Group Holdings.
“While our 2023 financial performance improved over the prior
year, I think we are in the early stages of what our team can
deliver going forward. What we accomplished in 2023 has transformed
Orion into a more focused, more competitive and more driven
company. In a short time, we implemented a disciplined project
bidding and delivery strategy; attracted high-caliber business
development executives; invested in systems, training and tools;
secured a three-year, $103 million credit facility; and closed over
$25 million in equipment and real estate sale-leaseback
transactions. With these critical building blocks in place, we are
prepared to take advantage of our industry tailwinds.”
“In 2024, we expect our financial performance to continue to
improve relative to 2023. Given the positive changes we have
implemented, the improving market outlook, the quality of our
current backlog and the volume of opportunities in our pipeline, we
are confident that 2025 will be even stronger than 2024,” concluded
Boone.
Fourth Quarter 2023 Results
Contract revenues of $201.6 million increased
2.8% from $196.2 million in the fourth quarter last year, primarily
due to an increase in marine segment revenue related to the Pearl
Harbor, Hawaii drydock project, partially offset by a decrease in
concrete segment revenue reflecting the planned wind-down of the
Company’s Central Texas concrete operations.
Gross profit increased to $23.0 million or 11.4% of revenue, up
from $10.2 million or 5.2% of revenue in the fourth quarter of
2022. The increase in gross profit dollars and margin was primarily
driven by margin improvements in both segments stemming from higher
quality projects and improved execution, partially offset by lower
margin and mix of dredging revenue.
Selling, general and administrative (“SG&A”) expenses were
$17.2 million, up from $13.7 million in the fourth quarter of
2022. As a percentage of total contract revenues, SG&A
expenses increased to 8.5% from 7.0%. The increase in
SG&A dollars and percentage reflected an increase in IT and
business development spending and higher legal costs related to
pursuing project-related claims.
Net loss for the fourth quarter was $4.4 million or $0.13 per
diluted share compared to net loss of $4.9 million or $0.15 per
diluted share in the fourth quarter of 2022.
Fourth quarter 2023 net income included $7.0 million ($0.21
diluted income per share) of non-recurring items. Fourth quarter
2023 adjusted net income was $2.6 million ($0.08 diluted income per
share).
EBITDA for the fourth quarter of 2023 was $6.5 million,
representing a 3.2% EBITDA margin, as compared to EBITDA of $2.2
million, or a 1.1% EBITDA margin in the fourth quarter last year.
Adjusted for non-recurring items, EBITDA for the fourth quarter of
2023 increased to $14.8 million, representing a 7.3% adjusted
EBITDA margin, as compared to adjusted EBITDA for the fourth
quarter of 2022 of $3.2 million, representing a 1.6% adjusted
EBITDA margin.
Backlog
Total backlog at December 31, 2023 was $762.2 million,
compared to $877.5 million at September 30, 2023 and $448.8 million
at December 31, 2022. Backlog for the Marine segment was $602.5
million, compared to $699.9 million at September 30, 2023 and
$216.7 million at December 31, 2022. Backlog for the Concrete
segment was $159.7 million, compared to $177.6 million at September
30, 2023 and $232.1 million at December 31, 2022. In addition, the
Company has been awarded $121 million in new project work
subsequent to the fourth quarter that is not included in backlog at
the end of the quarter.
Balance Sheet Update
As of December 31, 2023, current assets were $271.8 million,
including unrestricted cash and cash equivalents of $30.9 million.
Total debt outstanding as of December 31, 2023 was $37.2 million.
At the end of the quarter, the Company had no outstanding
borrowings under its revolving credit facility. On December 1,
2023, the Company and White Oak amended the Company’s credit
facility to extend the maturity date for the $15.0 million
pre-payment. On February 27, 2024, the Company and White Oak
further amended the Company’s credit facility to lower the interest
rate on its $65 million revolver by 50 basis points and its $38
million term loan by 100 basis points.
Asset Sales
The Company entered into a contract for the sale
of its East West Jones properties in Harris County, Texas. The
purchase price is $34 million and the transaction is expected to
close in the second quarter of 2024. The Company expects to use the
proceeds to reduce debt and for general corporate purposes.
Conference Call Details
Orion Group Holdings will host a conference call
to discuss results for the fourth quarter and full year 2023 at
9:00 a.m. Eastern Time/8:00 a.m. Central Time on Thursday, February
29, 2024. To participate, please call (844) 481-2994 and ask for
the Orion Group Holdings Conference Call. A live audio webcast of
the call will also be available on the Investor Relations section
of Orion’s website at
https://www.oriongroupholdingsinc.com/investor/ and will be
archived for replay.
About Orion Group Holdings
Orion Group Holdings, Inc., a leading specialty construction
company serving the infrastructure, industrial and building
sectors, provides services both on and off the water in the
continental United States, Alaska, Hawaii, Canada and the Caribbean
Basin through its marine segment and its concrete segment. The
Company’s marine segment provides construction and dredging
services relating to marine transportation facility construction,
marine pipeline construction, marine environmental structures,
dredging of waterways, channels and ports, environmental dredging,
design and specialty services. Its concrete segment provides
turnkey concrete construction services including place and finish,
site prep, layout, forming, and rebar placement for large
commercial, structural and other associated business areas. The
Company is headquartered in Houston, Texas with regional offices
throughout its operating areas. The Company’s website is located
at: https://www.oriongroupholdingsinc.com.
Backlog Definition
Backlog consists of projects under contract that have either (a)
not been started, or (b) are in progress but are not yet complete.
The Company cannot guarantee that the revenue implied by its
backlog will be realized, or, if realized, will result in earnings.
Backlog can fluctuate from period to period due to the timing and
execution of contracts. The typical duration of the Company’s
projects ranges from three to nine months on shorter projects to
multiple years on larger projects. The Company's backlog at any
point in time includes both revenue it expects to realize during
the next twelve-month period as well as revenue it expects to
realize in future years.
Non-GAAP Financial Measures
This press release includes the financial measures “adjusted net
income/loss,” “adjusted earnings/loss per share,” “EBITDA,”
"Adjusted EBITDA" and “Adjusted EBITDA margin." These
measurements are “non-GAAP financial measures” under rules of
the Securities and Exchange Commission, including Regulation
G. The non-GAAP financial information may be determined or
calculated differently by other companies. By reporting such
non-GAAP financial information, the Company does not intend to give
such information greater prominence than comparable GAAP financial
information. Investors are urged to consider these non-GAAP
measures in addition to and not in substitute for measures prepared
in accordance with GAAP.
Adjusted net income/loss and adjusted earnings/loss per share
should not be viewed as an equivalent financial measure to net
income/loss or earnings/loss per share. Adjusted net income/loss
and adjusted earnings/loss per share exclude certain items that
management believes impairs a meaningful evaluation of the
Company’s financial performance. The Company believes these
adjusted financial measures are a useful supplement to
earnings/loss calculated in accordance with GAAP because they
better inform our common stockholders as to the Company's
operational trends and performance relative to other companies.
Generally, items excluded are one-time items or items whose timing
or amount cannot be reasonably estimated. Accordingly, any guidance
provided by the Company generally excludes information regarding
these types of items.
Orion Group Holdings defines EBITDA as net income/loss
before net interest expense, income taxes, depreciation and
amortization. Adjusted EBITDA is calculated by adjusting EBITDA for
certain items that management believes impairs a meaningful
comparison of operating results. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA for the period by contract
revenues for the period. The GAAP financial measure that is most
directly comparable to EBITDA and Adjusted EBITDA is net income,
while the GAAP financial measure that is most directly comparable
to Adjusted EBITDA margin is operating margin, which represents
operating income divided by contract revenues. EBITDA, Adjusted
EBITDA and Adjusted EBITDA margin are used internally to evaluate
current operating expense, operating efficiency, and operating
profitability on a variable cost basis, by excluding the
depreciation and amortization expenses, primarily related to
capital expenditures and acquisitions, and net interest and tax
expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA
margin provide useful information regarding the Company's ability
to meet future debt service and working capital requirements while
providing an overall evaluation of the Company's financial
condition. In addition, EBITDA is used internally for incentive
compensation purposes. The Company includes EBITDA, Adjusted EBITDA
and Adjusted EBITDA margin to provide transparency to investors as
they are commonly used by investors and others in assessing
performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin
have certain limitations as analytical tools and should not be used
as a substitute for operating margin, net income, cash flows, or
other data prepared in accordance with GAAP, or as a measure of the
Company's profitability or liquidity.
Forward-Looking Statements
The matters discussed in this press release may constitute or
include projections or other forward-looking statements within the
meaning of the “safe harbor” provisions of Section 27A of the
Securities Exchange Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, of which provisions
the Company is availing itself. Certain forward-looking statements
can be identified by the use of forward-looking terminology, such
as 'believes', 'expects', 'may', 'will', 'could', 'should',
'seeks', 'approximately', 'intends', 'plans', 'estimates', or
'anticipates', or the negative thereof or other comparable
terminology, or by discussions of strategy, plans, objectives,
intentions, estimates, forecasts, outlook, assumptions, or goals.
In particular, statements regarding future operations or results,
including those set forth in this press release, and any other
statement, express or implied, concerning future operating results
or the future generation of or ability to generate revenues,
income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted
EBITDA margin, or cash flow, including to service debt, and
including any estimates, forecasts or assumptions regarding future
revenues or revenue growth, are forward-looking statements.
Forward-looking statements also include project award
announcements, estimated project start dates, anticipated revenues,
and contract options which may or may not be awarded in the future.
Forward-looking statements involve risks, including those
associated with the Company's fixed price contracts that impacts
profits, unforeseen productivity delays that may alter the final
profitability of the contract, cancellation of the contract by the
customer for unforeseen reasons, delays or decreases in funding by
the customer, levels and predictability of government funding or
other governmental budgetary constraints, and any potential
contract options which may or may not be awarded in the future, and
are at the sole discretion of award by the customer. Past
performance is not necessarily an indicator of future results. In
light of these and other uncertainties, the inclusion of
forward-looking statements in this press release should not be
regarded as a representation by the Company that the Company's
plans, estimates, forecasts, goals, intentions, or objectives will
be achieved or realized. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof. The Company assumes no obligation to update
information contained in this press release whether as a result of
new developments or otherwise, except as required by law.
Please refer to the Company's 2022 Annual Report on Form 10-K,
filed on March 16, 2023, which is available on its website at
www.oriongroupholdingsinc.com or at the SEC's website at
www.sec.gov, for additional and more detailed discussion of risk
factors that could cause actual results to differ materially from
our current expectations, estimates or forecasts.
Contacts:
Financial Profiles, Inc.Margaret Boyce
310-622-8247orn@finprofiles.com
Orion Group Holdings, Inc. and
SubsidiariesCondensed Statements of
Operations(In Thousands, Except Share and Per
Share Information)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Contract revenues |
|
|
201,594 |
|
|
|
196,195 |
|
|
|
711,778 |
|
|
|
748,322 |
|
Costs of contract
revenues |
|
|
178,627 |
|
|
|
186,032 |
|
|
|
650,115 |
|
|
|
697,580 |
|
Gross profit |
|
|
22,967 |
|
|
|
10,163 |
|
|
|
61,663 |
|
|
|
50,742 |
|
Selling, general and
administrative expenses |
|
|
17,160 |
|
|
|
13,720 |
|
|
|
69,431 |
|
|
|
62,503 |
|
Amortization of intangible
assets |
|
|
44 |
|
|
|
310 |
|
|
|
427 |
|
|
|
1,239 |
|
Gain on disposal of assets,
net |
|
|
(540 |
) |
|
|
(409 |
) |
|
|
(8,455 |
) |
|
|
(4,970 |
) |
Intangible asset impairment
loss |
|
|
6,890 |
|
|
|
— |
|
|
|
6,890 |
|
|
|
— |
|
Operating loss |
|
|
(587 |
) |
|
|
(3,458 |
) |
|
|
(6,630 |
) |
|
|
(8,030 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
49 |
|
|
|
52 |
|
|
|
641 |
|
|
|
199 |
|
Interest income |
|
|
13 |
|
|
|
33 |
|
|
|
103 |
|
|
|
104 |
|
Interest expense |
|
|
(3,985 |
) |
|
|
(1,543 |
) |
|
|
(11,659 |
) |
|
|
(4,456 |
) |
Other expense, net |
|
|
(3,923 |
) |
|
|
(1,458 |
) |
|
|
(10,915 |
) |
|
|
(4,153 |
) |
Loss before income taxes |
|
|
(4,510 |
) |
|
|
(4,916 |
) |
|
|
(17,545 |
) |
|
|
(12,183 |
) |
Income tax expense |
|
|
(145 |
) |
|
|
33 |
|
|
|
330 |
|
|
|
429 |
|
Net loss |
|
$ |
(4,365 |
) |
|
$ |
(4,949 |
) |
|
$ |
(17,875 |
) |
|
$ |
(12,612 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.13 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.40 |
) |
Diluted loss per share |
|
$ |
(0.13 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.40 |
) |
Shares used to compute loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
32,528,213 |
|
|
|
32,060,822 |
|
|
|
32,346,992 |
|
|
|
31,402,328 |
|
Diluted |
|
|
32,528,213 |
|
|
|
32,060,822 |
|
|
|
32,346,992 |
|
|
|
31,402,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesSelected Results of
Operations(In Thousands, Except Share and Per
Share Information)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
|
2023 |
|
2022 |
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
|
(dollar amounts in thousands) |
Contract
revenues |
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
98,275 |
|
|
72.7 |
% |
|
$ |
73,006 |
|
|
75.8 |
% |
Private sector |
|
|
36,888 |
|
|
27.3 |
% |
|
|
23,310 |
|
|
24.2 |
% |
Marine segment total |
|
$ |
135,163 |
|
|
100.0 |
% |
|
$ |
96,316 |
|
|
100.0 |
% |
Concrete segment |
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
2,635 |
|
|
4.0 |
% |
|
$ |
7,216 |
|
|
7.2 |
% |
Private sector |
|
|
63,796 |
|
|
96.0 |
% |
|
|
92,663 |
|
|
92.8 |
% |
Concrete segment total |
|
$ |
66,431 |
|
|
100.0 |
% |
|
$ |
99,879 |
|
|
100.0 |
% |
Total |
|
$ |
201,594 |
|
|
|
|
$ |
196,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
4,257 |
|
|
3.1 |
% |
|
$ |
234 |
|
|
0.2 |
% |
Concrete segment |
|
|
(4,844 |
) |
|
(7.3 |
)% |
|
|
(3,692 |
) |
|
(3.7 |
)% |
Total |
|
$ |
(587 |
) |
|
|
|
$ |
(3,458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended December 31, |
|
|
2023 |
|
2022 |
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
|
(dollar amounts in thousands) |
Contract
revenues |
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
292,088 |
|
|
73.8 |
% |
|
$ |
237,363 |
|
|
70.0 |
% |
Private sector |
|
|
103,829 |
|
|
26.2 |
% |
|
|
101,850 |
|
|
30.0 |
% |
Marine segment total |
|
$ |
395,917 |
|
|
100.0 |
% |
|
$ |
339,213 |
|
|
100.0 |
% |
Concrete segment |
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
20,297 |
|
|
6.4 |
% |
|
$ |
30,284 |
|
|
7.4 |
% |
Private sector |
|
|
295,564 |
|
|
93.6 |
% |
|
|
378,825 |
|
|
92.6 |
% |
Concrete segment total |
|
$ |
315,861 |
|
|
100.0 |
% |
|
$ |
409,109 |
|
|
100.0 |
% |
Total |
|
$ |
711,778 |
|
|
|
|
$ |
748,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
3,670 |
|
|
0.9 |
% |
|
$ |
9,787 |
|
|
2.9 |
% |
Concrete segment |
|
|
(10,300 |
) |
|
(3.3 |
)% |
|
|
(17,817 |
) |
|
(4.4 |
)% |
Total |
|
$ |
(6,630 |
) |
|
|
|
$ |
(8,030 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesReconciliation of Adjusted Net Income
(Loss)(In thousands except per share
information)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
|
$ |
(4,365 |
) |
|
$ |
(4,949 |
) |
|
$ |
(17,875 |
) |
|
$ |
(12,612 |
) |
One-time charges and the tax effects: |
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on Port Lavaca South Yard property sale |
|
|
— |
|
|
|
— |
|
|
|
(5,202 |
) |
|
|
— |
|
ERP implementation |
|
|
568 |
|
|
|
308 |
|
|
|
1,378 |
|
|
|
1,867 |
|
Severance |
|
|
683 |
|
|
|
4 |
|
|
|
809 |
|
|
|
948 |
|
Intangible asset impairment loss |
|
|
6,890 |
|
|
|
— |
|
|
|
6,890 |
|
|
|
— |
|
Professional fees related to management transition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,118 |
|
Tax rate applied to one-time charges (1) |
|
|
(1,456 |
) |
|
|
(265 |
) |
|
|
(642 |
) |
|
|
(544 |
) |
Total one-time charges and the
tax effects |
|
|
6,685 |
|
|
|
47 |
|
|
|
3,233 |
|
|
|
3,389 |
|
Federal and state tax valuation allowances |
|
|
277 |
|
|
|
1,158 |
|
|
|
3,238 |
|
|
|
2,114 |
|
Adjusted net income
(loss) |
|
$ |
2,597 |
|
|
$ |
(3,744 |
) |
|
$ |
(11,404 |
) |
|
$ |
(7,109 |
) |
Adjusted EPS |
|
$ |
0.08 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Items are
taxed discretely using the Company's effective tax rate which
differs from the Company’s statutory federal rate primarily due to
state income taxes and the non-deductibility of other permanent
items. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesAdjusted EBITDA and Adjusted EBITDA
Margin Reconciliations(In Thousands, Except Margin
Data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
|
$ |
(4,365 |
) |
|
$ |
(4,949 |
) |
|
$ |
(17,875 |
) |
|
$ |
(12,612 |
) |
Income tax (benefit)
expense |
|
|
(145 |
) |
|
|
33 |
|
|
|
330 |
|
|
|
429 |
|
Interest expense, net |
|
|
3,972 |
|
|
|
1,510 |
|
|
|
11,556 |
|
|
|
4,352 |
|
Depreciation and
amortization |
|
|
6,996 |
|
|
|
5,631 |
|
|
|
23,878 |
|
|
|
24,057 |
|
EBITDA (1) |
|
|
6,458 |
|
|
|
2,225 |
|
|
|
17,889 |
|
|
|
16,226 |
|
Stock-based compensation |
|
|
209 |
|
|
|
639 |
|
|
|
2,042 |
|
|
|
2,754 |
|
Net gain on Port Lavaca South
Yard property sale |
|
|
— |
|
|
|
— |
|
|
|
(5,202 |
) |
|
|
— |
|
ERP implementation |
|
|
568 |
|
|
|
308 |
|
|
|
1,378 |
|
|
|
1,867 |
|
Professional fees related to
management transition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,118 |
|
Severance |
|
|
683 |
|
|
|
4 |
|
|
|
809 |
|
|
|
948 |
|
Intangible asset impairment
loss |
|
|
6,890 |
|
|
|
— |
|
|
|
6,890 |
|
|
|
— |
|
Adjusted EBITDA(2) |
|
$ |
14,808 |
|
|
$ |
3,176 |
|
|
$ |
23,806 |
|
|
$ |
22,913 |
|
Operating income margin |
|
|
(0.3 |
)% |
|
|
(1.8 |
)% |
|
|
(0.9 |
)% |
|
|
(1.1 |
)% |
Impact of depreciation and
amortization |
|
|
3.5 |
% |
|
|
2.9 |
% |
|
|
3.3 |
% |
|
|
3.2 |
% |
Impact of stock-based
compensation |
|
|
0.1 |
% |
|
|
0.3 |
% |
|
|
0.3 |
% |
|
|
0.4 |
% |
Impact of net gain on Port
Lavaca South Yard property sale |
|
|
— |
% |
|
|
— |
% |
|
|
(0.7 |
)% |
|
|
— |
% |
Impact of ERP
implementation |
|
|
0.3 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
Impact of professional fees
related to management transition |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
0.1 |
% |
Impact of severance |
|
|
0.3 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
0.2 |
% |
Impact of intangible asset
impairment loss |
|
|
3.4 |
% |
|
|
— |
% |
|
|
1.0 |
% |
|
|
— |
% |
Adjusted EBITDA margin(2) |
|
|
7.3 |
% |
|
|
1.6 |
% |
|
|
3.3 |
% |
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA is a
non-GAAP measure that represents earnings before interest, taxes,
depreciation and amortization. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted
EBITDA is a non-GAAP measure that represents EBITDA adjusted for
stock-based compensation, net gain on Port Lavaca South Yard
property sale, ERP implementation, professional fees related to
management transition, severance and intangible asset impairment
loss. Adjusted EBITDA margin is a non-GAAP measure calculated by
dividing Adjusted EBITDA by contract revenues. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesAdjusted EBITDA and Adjusted EBITDA
Margin Reconciliations by Segment(In Thousands,
Except Margin Data)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
Concrete |
|
|
Three months ended |
|
Three months ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating income (loss) |
|
|
4,257 |
|
|
|
234 |
|
|
|
(4,844 |
) |
|
|
(3,692 |
) |
Other income |
|
|
49 |
|
|
|
52 |
|
|
|
— |
|
|
|
— |
|
Depreciation and
amortization |
|
|
5,801 |
|
|
|
3,841 |
|
|
|
1,195 |
|
|
|
1,790 |
|
EBITDA (1) |
|
|
10,107 |
|
|
|
4,127 |
|
|
|
(3,649 |
) |
|
|
(1,902 |
) |
Stock-based compensation |
|
|
175 |
|
|
|
636 |
|
|
|
34 |
|
|
|
3 |
|
ERP implementation |
|
|
352 |
|
|
|
160 |
|
|
|
216 |
|
|
|
148 |
|
Severance |
|
|
683 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
Intangible asset impairment
loss |
|
|
— |
|
|
|
— |
|
|
|
6,890 |
|
|
|
— |
|
Adjusted EBITDA(2) |
|
$ |
11,317 |
|
|
$ |
4,927 |
|
|
$ |
3,491 |
|
|
$ |
(1,751 |
) |
Operating income margin |
|
|
3.1 |
% |
|
|
0.2 |
% |
|
|
(7.3 |
)% |
|
|
(3.7 |
)% |
Impact of other income |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Impact of depreciation and
amortization |
|
|
4.3 |
% |
|
|
4.0 |
% |
|
|
1.8 |
% |
|
|
1.8 |
% |
Impact of stock-based
compensation |
|
|
0.1 |
% |
|
|
0.7 |
% |
|
|
0.1 |
% |
|
|
— |
% |
Impact of ERP
implementation |
|
|
0.3 |
% |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
0.1 |
% |
Impact of severance |
|
|
0.5 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Impact of intangible asset
impairment loss |
|
|
0.1 |
% |
|
|
— |
% |
|
|
10.4 |
% |
|
|
— |
% |
Adjusted EBITDA margin
(2) |
|
|
8.4 |
% |
|
|
5.1 |
% |
|
|
5.3 |
% |
|
|
(1.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
Concrete |
|
|
Year ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Operating income (loss) |
|
|
3,670 |
|
|
|
9,787 |
|
|
|
(10,300 |
) |
|
|
(17,817 |
) |
Other income |
|
|
641 |
|
|
|
199 |
|
|
|
— |
|
|
|
— |
|
Depreciation and
amortization |
|
|
18,219 |
|
|
|
16,592 |
|
|
|
5,659 |
|
|
|
7,465 |
|
EBITDA (1) |
|
|
22,530 |
|
|
|
26,578 |
|
|
|
(4,641 |
) |
|
|
(10,352 |
) |
Stock-based compensation |
|
|
1,958 |
|
|
|
2,671 |
|
|
|
84 |
|
|
|
83 |
|
Net gain on Port Lavaca South
Yard property sale |
|
|
(5,202 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
ERP implementation |
|
|
766 |
|
|
|
846 |
|
|
|
612 |
|
|
|
1,021 |
|
Professional fees related to
management transition |
|
|
— |
|
|
|
494 |
|
|
|
— |
|
|
|
624 |
|
Severance |
|
|
721 |
|
|
|
948 |
|
|
|
88 |
|
|
|
— |
|
Intangible asset impairment
loss |
|
|
— |
|
|
|
— |
|
|
|
6,890 |
|
|
|
— |
|
Adjusted EBITDA(2) |
|
$ |
20,773 |
|
|
$ |
31,537 |
|
|
$ |
3,033 |
|
|
$ |
(8,624 |
) |
Operating income margin |
|
|
0.8 |
% |
|
|
2.9 |
% |
|
|
(3.3 |
)% |
|
|
(4.4 |
)% |
Impact of other income |
|
|
0.2 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Impact of depreciation and
amortization |
|
|
4.6 |
% |
|
|
5.0 |
% |
|
|
1.9 |
% |
|
|
1.9 |
% |
Impact of stock-based
compensation |
|
|
0.5 |
% |
|
|
0.8 |
% |
|
|
— |
% |
|
|
— |
% |
Impact of net gain on Tampa
property sale |
|
|
(1.3 |
)% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Impact of ERP
implementation |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
|
|
0.2 |
% |
Impact of professional fees
related to management transition |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.2 |
% |
Impact of severance |
|
|
0.2 |
% |
|
|
0.3 |
% |
|
|
— |
% |
|
|
— |
% |
Impact of intangible asset
impairment loss |
|
|
— |
% |
|
|
— |
% |
|
|
2.2 |
% |
|
|
— |
% |
Adjusted EBITDA margin
(2) |
|
|
5.2 |
% |
|
|
9.3 |
% |
|
|
1.0 |
% |
|
|
(2.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) EBITDA is a
non-GAAP measure that represents earnings before interest, taxes,
depreciation and amortization. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Adjusted
EBITDA is a non-GAAP measure that represents EBITDA adjusted for
stock-based compensation, net gain on Port Lavaca South Yard
property sale, ERP implementation, professional fees related to
management transition, severance and intangible asset impairment
loss. Adjusted EBITDA margin is a non-GAAP measure calculated by
dividing Adjusted EBITDA by contract revenues. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesCondensed Statements of Cash Flows
Summarized(In
Thousands)(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss |
|
$ |
(4,365 |
) |
|
$ |
(4,949 |
) |
|
$ |
(17,875 |
) |
|
$ |
(12,612 |
) |
Adjustments to remove non-cash
and non-operating items |
|
|
16,248 |
|
|
|
7,249 |
|
|
|
32,641 |
|
|
|
27,413 |
|
Cash flow from net loss after
adjusting for non-cash and non-operating items |
|
|
11,883 |
|
|
|
2,300 |
|
|
|
14,766 |
|
|
|
14,801 |
|
Change in operating assets and
liabilities (working capital) |
|
|
33,796 |
|
|
|
(1,836 |
) |
|
|
2,412 |
|
|
|
(5,236 |
) |
Cash flows provided by
operating activities |
|
$ |
45,679 |
|
|
$ |
464 |
|
|
$ |
17,178 |
|
|
$ |
9,565 |
|
Cash flows (used in) provided
by investing activities |
|
$ |
(3,221 |
) |
|
$ |
(3,549 |
) |
|
$ |
2,170 |
|
|
$ |
(9,704 |
) |
Cash flows (used in) provided
by financing activities |
|
$ |
(15,401 |
) |
|
$ |
4,132 |
|
|
$ |
7,806 |
|
|
$ |
(8,370 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (included
in investing activities above) |
|
$ |
(2,231 |
) |
|
$ |
(3,957 |
) |
|
$ |
(8,909 |
) |
|
$ |
(14,584 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesCondensed Statements of Cash
Flows(In
Thousands)(Unaudited)
|
|
Year ended December 31, |
|
|
2023 |
|
2022 |
Cash flows from operating
activities |
|
|
|
|
|
|
Net loss |
|
$ |
(17,875 |
) |
|
$ |
(12,612 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
18,844 |
|
|
|
20,915 |
|
Amortization of ROU operating leases |
|
|
6,763 |
|
|
|
4,813 |
|
Amortization of ROU finance leases |
|
|
5,034 |
|
|
|
3,142 |
|
Write-off of debt issuance costs upon debt modification |
|
|
119 |
|
|
|
— |
|
Amortization of deferred debt issuance costs |
|
|
1,616 |
|
|
|
424 |
|
Deferred income taxes |
|
|
(103 |
) |
|
|
13 |
|
Stock-based compensation |
|
|
2,042 |
|
|
|
2,754 |
|
Gain on disposal of assets, net |
|
|
(8,455 |
) |
|
|
(4,970 |
) |
Intangible asset impairment loss |
|
|
6,890 |
|
|
|
— |
|
Allowance for credit losses |
|
|
(109 |
) |
|
|
322 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
14,129 |
|
|
|
(28,660 |
) |
Income tax receivable |
|
|
(224 |
) |
|
|
3 |
|
Inventory |
|
|
(729 |
) |
|
|
(1,485 |
) |
Prepaid expenses and other |
|
|
(55 |
) |
|
|
1,645 |
|
Contract assets |
|
|
(37,619 |
) |
|
|
(15,374 |
) |
Accounts payable |
|
|
(4,507 |
) |
|
|
39,370 |
|
Accrued liabilities |
|
|
11,817 |
|
|
|
(6,630 |
) |
Operating lease liabilities |
|
|
(6,807 |
) |
|
|
(4,748 |
) |
Income tax payable |
|
|
48 |
|
|
|
(79 |
) |
Contract liabilities |
|
|
26,359 |
|
|
|
10,722 |
|
Net cash provided by operating activities |
|
|
17,178 |
|
|
|
9,565 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
Proceeds from sale of property and equipment |
|
|
11,079 |
|
|
|
4,880 |
|
Purchase of property and equipment |
|
|
(8,909 |
) |
|
|
(14,584 |
) |
Net cash provided by (used in) investing activities |
|
|
2,170 |
|
|
|
(9,704 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
Borrowings on credit |
|
|
106,958 |
|
|
|
24,000 |
|
Payments made on borrowings on credit |
|
|
(104,431 |
) |
|
|
(28,274 |
) |
Proceeds from failed sale-leaseback arrangement |
|
|
14,702 |
|
|
|
— |
|
Proceeds from sale-leaseback financing |
|
|
2,397 |
|
|
|
— |
|
Loan costs from Credit Facility |
|
|
(6,537 |
) |
|
|
(664 |
) |
Payments of finance lease liabilities |
|
|
(4,791 |
) |
|
|
(2,992 |
) |
Payments related to tax withholding for share-based
compensation |
|
|
(492 |
) |
|
|
(440 |
) |
Net cash provided by (used in) financing activities |
|
|
7,806 |
|
|
|
(8,370 |
) |
Net change in cash, cash
equivalents and restricted cash |
|
|
27,154 |
|
|
|
(8,509 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
3,784 |
|
|
|
12,293 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
30,938 |
|
|
$ |
3,784 |
|
|
|
|
|
|
|
|
|
|
Orion Group Holdings, Inc. and
SubsidiariesCondensed Balance
Sheets(In Thousands, Except Share and Per Share
Information)
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
30,938 |
|
|
|
3,784 |
|
Accounts receivable: |
|
|
|
|
|
|
Trade, net of allowance for credit losses of $361 and $606,
respectively |
|
|
101,229 |
|
|
|
106,758 |
|
Retainage |
|
|
42,044 |
|
|
|
50,873 |
|
Income taxes receivable |
|
|
626 |
|
|
|
402 |
|
Other current |
|
|
3,864 |
|
|
|
3,526 |
|
Inventory |
|
|
2,699 |
|
|
|
2,862 |
|
Contract assets |
|
|
81,522 |
|
|
|
43,903 |
|
Prepaid expenses and other |
|
|
8,894 |
|
|
|
8,229 |
|
Total current assets |
|
|
271,816 |
|
|
|
220,337 |
|
Property and equipment, net of
depreciation |
|
|
87,834 |
|
|
|
100,977 |
|
Operating lease right-of-use
assets, net of amortization |
|
|
25,696 |
|
|
|
14,978 |
|
Financing lease right-of-use
assets, net of amortization |
|
|
23,602 |
|
|
|
15,839 |
|
Inventory, non-current |
|
|
6,361 |
|
|
|
5,469 |
|
Intangible assets, net of
amortization |
|
|
— |
|
|
|
7,317 |
|
Deferred income tax asset |
|
|
26 |
|
|
|
70 |
|
Other non-current |
|
|
1,558 |
|
|
|
2,168 |
|
Total assets |
|
$ |
416,893 |
|
|
$ |
367,155 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current debt, net of issuance costs |
|
$ |
13,453 |
|
|
$ |
34,956 |
|
Accounts payable: |
|
|
|
|
|
|
Trade |
|
|
80,294 |
|
|
|
87,605 |
|
Retainage |
|
|
2,527 |
|
|
|
1,198 |
|
Accrued liabilities |
|
|
37,074 |
|
|
|
18,466 |
|
Income taxes payable |
|
|
570 |
|
|
|
522 |
|
Contract liabilities |
|
|
64,079 |
|
|
|
37,720 |
|
Current portion of operating lease liabilities |
|
|
9,254 |
|
|
|
4,738 |
|
Current portion of financing lease liabilities |
|
|
8,665 |
|
|
|
4,031 |
|
Total current liabilities |
|
|
215,916 |
|
|
|
189,236 |
|
Long-term debt, net of debt
issuance costs |
|
|
23,740 |
|
|
|
716 |
|
Operating lease
liabilities |
|
|
16,632 |
|
|
|
11,018 |
|
Financing lease
liabilities |
|
|
13,746 |
|
|
|
11,102 |
|
Other long-term
liabilities |
|
|
25,320 |
|
|
|
17,072 |
|
Deferred income tax
liability |
|
|
64 |
|
|
|
211 |
|
Total liabilities |
|
|
295,418 |
|
|
|
229,355 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock -- $0.01 par value, 10,000,000 authorized, none
issued |
|
|
— |
|
|
|
— |
|
Common stock -- $0.01 par value, 50,000,000 authorized,
33,260,011 and 32,770,550 issued; 32,548,780 and 32,059,319
outstanding at December 31, 2023 and
December 31, 2022, respectively |
|
|
333 |
|
|
|
328 |
|
Treasury stock, 711,231 shares, at cost, as of December 31, 2023
and December 31, 2022, respectively |
|
|
(6,540 |
) |
|
|
(6,540 |
) |
Additional paid-in
capital |
|
|
189,729 |
|
|
|
188,184 |
|
Retained loss |
|
|
(62,047 |
) |
|
|
(44,172 |
) |
Total stockholders’ equity |
|
|
121,475 |
|
|
|
137,800 |
|
Total liabilities and stockholders’ equity |
|
$ |
416,893 |
|
|
$ |
367,155 |
|
Orion (NYSE:ORN)
過去 株価チャート
から 5 2024 まで 6 2024
Orion (NYSE:ORN)
過去 株価チャート
から 6 2023 まで 6 2024