Orion Group Holdings Reports Second Quarter 2024 Results
Orion Group Holdings (NYSE: ORN) reported its Q2 2024 financial results with contract revenues of $192.2 million, up 5.3% year-over-year. The company posted a GAAP net loss of $6.6 million or $0.20 per diluted share and an adjusted net loss of $5.2 million or $0.16 per diluted share. Adjusted EBITDA was $5.5 million.
Due to project delays, Orion lowered its 2024 guidance to revenue of $850-900 million and adjusted EBITDA of $40-45 million. The company's backlog and contracts awarded after Q2 totaled $876.3 million. Orion won $118 million in new projects in July across its Marine and Concrete segments.
Orion Group Holdings (NYSE: ORN) ha riportato i risultati finanziari del secondo trimestre 2024 con entrate da contratti di 192,2 milioni di dollari, in aumento del 5,3% rispetto all'anno precedente. L'azienda ha registrato una perdita netta GAAP di 6,6 milioni di dollari o 0,20 dollari per azione diluita, e una perdita netta rettificata di 5,2 milioni di dollari o 0,16 dollari per azione diluita. L'EBITDA rettificato è stato di 5,5 milioni di dollari.
A causa dei ritardi nei progetti, Orion ha abbassato le previsioni per il 2024 a entrate di 850-900 milioni di dollari e un EBITDA rettificato di 40-45 milioni di dollari. Il portafoglio ordini e i contratti assegnati dopo il secondo trimestre sono ammontati a 876,3 milioni di dollari. Orion ha ottenuto nuovi progetti per 118 milioni di dollari a luglio nei segmenti Marine e Concrete.
Orion Group Holdings (NYSE: ORN) informó sus resultados financieros del segundo trimestre de 2024 con ingresos por contratos de 192,2 millones de dólares, un aumento del 5,3% interanual. La compañía registró una pérdida neta GAAP de 6,6 millones de dólares o 0,20 dólares por acción diluida y una pérdida neta ajustada de 5,2 millones de dólares o 0,16 dólares por acción diluida. El EBITDA ajustado fue de 5,5 millones de dólares.
Debido a retrasos en los proyectos, Orion redujo sus proyecciones para 2024 a ingresos de 850-900 millones de dólares y un EBITDA ajustado de 40-45 millones de dólares. El backlog de la compañía y los contratos adjudicados después del segundo trimestre totalizaron 876,3 millones de dólares. Orion ganó 118 millones de dólares en nuevos proyectos en julio en sus segmentos de Marina y Concreto.
오리온 그룹 홀딩스 (NYSE: ORN)는 2024년 2분기 재무 결과를 보고하며 계약 수익이 1억 9,220만 달러로 전년 대비 5.3% 증가했다고 발표했습니다. 이 회사는 GAAP 기준으로 660만 달러의 순손실 또는 희석 주당 0.20달러의 손실과 조정된 순손실 520만 달러 또는 희석 주당 0.16달러의 손실을 기록했습니다. 조정된 EBITDA는 550만 달러였습니다.
프로젝트 지연으로 인해 오리온은 2024년 가이던스를 수익 8억 5천만-9억 달러와 조정된 EBITDA 4천만-4천5백만 달러로 낮췄습니다. 이 회사의 백로그와 계약은 2분기 이후 총 8억 7천6백30만 달러에 달합니다. 오리온은 7월에 해양 및 콘크리트 부문에서 1억 1천8백만 달러의 새로운 프로젝트를 획득했습니다.
Orion Group Holdings (NYSE: ORN) a publié ses résultats financiers pour le deuxième trimestre 2024, avec des revenus de contrats de 192,2 millions de dollars, en hausse de 5,3 % par rapport à l'année précédente. L'entreprise a affiché une perte nette GAAP de 6,6 millions de dollars ou 0,20 dollar par action diluée et une perte nette ajustée de 5,2 millions de dollars ou 0,16 dollar par action diluée. L'EBITDA ajusté était de 5,5 millions de dollars.
En raison de retards de projets, Orion a abaissé ses prévisions pour 2024 à des revenus de 850-900 millions de dollars et un EBITDA ajusté de 40-45 millions de dollars. Le carnet de commandes de l'entreprise et les contrats attribués après le deuxième trimestre s'élevaient à 876,3 millions de dollars. Orion a remporté 118 millions de dollars de nouveaux projets en juillet dans ses segments Marine et Béton.
Die Orion Group Holdings (NYSE: ORN) hat ihre Finanz Ergebnisse für das zweite Quartal 2024 bekannt gegeben, mit Vertragsumsätzen von 192,2 Millionen USD, was einem Anstieg von 5,3 % im Jahresvergleich entspricht. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 6,6 Millionen USD oder 0,20 USD pro verwässerter Aktie sowie einen bereinigten Nettoverlust von 5,2 Millionen USD oder 0,16 USD pro verwässerter Aktie. Das bereinigte EBITDA betrug 5,5 Millionen USD.
Aufgrund von Projektverzögerungen senkte Orion seine Prognose für 2024 auf Umsätze von 850-900 Millionen USD und ein bereinigtes EBITDA von 40-45 Millionen USD. Der Auftragsbestand des Unternehmens und die nach dem 2. Quartal vergebenen Verträge beliefen sich auf insgesamt 876,3 Millionen USD. Orion gewann im Juli neue Projekte im Wert von 118 Millionen USD in den Bereichen Marine und Beton.
- Contract revenues increased 5.3% year-over-year to $192.2 million
- Gross profit margin improved to 9.5% from 7.6% in Q2 2023
- Adjusted EBITDA increased to $5.5 million, with a 2.9% margin compared to 2.0% in Q2 2023
- Backlog and contracts awarded totaled $876.3 million
- Won $118 million in new projects in July 2024
- GAAP net loss of $6.6 million or $0.20 per diluted share
- Adjusted net loss of $5.2 million or $0.16 per diluted share
- Lowered 2024 guidance due to project delays
- SG&A expenses increased to 11.0% of revenue from 9.9% in Q2 2023
- Total debt outstanding of $60.3 million as of June 30, 2024
Insights
Orion Group Holdings' Q2 2024 results present a mixed picture. The company reported
The company's gross profit margin improved to
Notably, Orion's backlog stands at
However, the company has lowered its 2024 guidance, now expecting revenues between
While the company's strategic focus on disciplined bidding and improved execution is commendable, the financial results indicate ongoing challenges in translating these efforts into consistent profitability. Investors should closely monitor Orion's ability to manage project timelines and control costs in the coming quarters.
Orion Group Holdings' Q2 results highlight both the opportunities and challenges in the specialty construction sector. The company's increased revenue and improved gross margins demonstrate its ability to secure higher-quality projects. However, the project delays in key contracts like the Grand Bahama Shipyard Dry Dock and Pearl Harbor underscore the inherent risks in large-scale construction projects.
The company's strategic shift towards disciplined bidding is a positive move in an industry often plagued by razor-thin margins. This approach has led to improved project pricing, as evidenced by the increase in gross profit margin to
Orion's diverse project portfolio, spanning marine and concrete segments, provides some insulation against sector-specific downturns. The recent wins in data center projects (now totaling 24) are particularly noteworthy, as this is a growing subsector within construction.
The company's substantial backlog of
The lowered guidance for 2024 is a concern, but the company's optimism for 2025 suggests that these challenges are viewed as temporary. Investors should watch for improvements in project management and execution efficiency in the coming quarters to gauge the long-term viability of Orion's strategy.
HOUSTON, July 24, 2024 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported its financial results for the second quarter ended June 30, 2024.
Highlights for the quarter ended June 30, 2024:
- Contract revenues of
$192.2 million - GAAP net loss of
$6.6 million or$0.20 per diluted share - Adjusted net loss of
$5.2 million or$0.16 per diluted share - Adjusted EBITDA of
$5.5 million - Backlog and contracts awarded subsequent to quarter end totaled
$876.3 million
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“In the second quarter, we generated revenue of
“Our market continues to expand – activity is scaling up. Our business development efforts translated into some significant second-quarter wins in both the Marine and Concrete segments, including our first large Orion Concrete award in Florida since expanding our concrete business there. In addition to the awards previously announced, in July we won a total of
“As we enter the second half of the year, I am optimistic about our future. Together with our teams, we have made great strides in strengthening the foundation and infrastructure of our company. By instilling disciplined bidding and project performance processes, and investing in business development, training and IT systems, we are far stronger today. Most importantly, our teams are aligned on the same mission: delivering predictable excellence through outstanding execution,” concluded Boone.
Second Quarter 2024 Results
Contract revenues of
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
Net loss for the second quarter was
Second quarter 2024 net loss included
EBITDA for the second quarter of 2024 was
New Contract Awards
Subsequent to quarter end, the Company won several notable projects in its Concrete and Marine segments, which totaled
Backlog
Total backlog at June 30, 2024 was
Balance Sheet Update
As of June 30, 2024, current assets were
Conference Call Details
Orion Group Holdings will host a conference call to discuss results for the second quarter 2024 at 9:00 a.m. Eastern Time/8:00 a.m. Central Time on Thursday, July 25, 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 or maintain compliance with debt covenants, 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, ramp-up of contract activity, 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. Considering 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 2023 Annual Report on Form 10-K, filed on March 1, 2024 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.
Contact:
Financial Profiles, Inc.
Margaret Boyce 310-622-8247
orn@finprofiles.com
| Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Operations (In Thousands, Except Share and Per Share Information) (Unaudited) | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Contract revenues | $ | 192,167 | $ | 182,534 | $ | 352,839 | $ | 341,708 | ||||||||
| Costs of contract revenues | 173,886 | 168,748 | 319,020 | 322,082 | ||||||||||||
| Gross profit | 18,281 | 13,786 | 33,819 | 19,626 | ||||||||||||
| Selling, general and administrative expenses | 21,135 | 18,119 | 40,134 | 35,136 | ||||||||||||
| Amortization of intangible assets | — | 162 | — | 324 | ||||||||||||
| Gain on disposal of assets, net | (86 | ) | (6,534 | ) | (423 | ) | (7,230 | ) | ||||||||
| Operating (loss) income | (2,768 | ) | 2,039 | (5,892 | ) | (8,604 | ) | |||||||||
| Other (expense) income: | ||||||||||||||||
| Other income | 120 | 250 | 192 | 543 | ||||||||||||
| Interest income | 7 | 41 | 24 | 69 | ||||||||||||
| Interest expense | (3,345 | ) | (2,627 | ) | (6,719 | ) | (4,260 | ) | ||||||||
| Other expense, net | (3,218 | ) | (2,336 | ) | (6,503 | ) | (3,648 | ) | ||||||||
| Loss before income taxes | (5,986 | ) | (297 | ) | (12,395 | ) | (12,252 | ) | ||||||||
| Income tax expense (benefit) | 617 | (42 | ) | 265 | 598 | |||||||||||
| Net loss | $ | (6,603 | ) | $ | (255 | ) | $ | (12,660 | ) | $ | (12,850 | ) | ||||
| Basic loss per share | $ | (0.20 | ) | $ | (0.01 | ) | $ | (0.39 | ) | $ | (0.40 | ) | ||||
| Diluted loss per share | $ | (0.20 | ) | $ | (0.01 | ) | $ | (0.39 | ) | $ | (0.40 | ) | ||||
| Shares used to compute loss per share: | ||||||||||||||||
| Basic | 33,111,987 | 32,290,392 | 32,832,868 | 32,235,842 | ||||||||||||
| Diluted | 33,111,987 | 32,290,392 | 32,832,868 | 32,235,842 | ||||||||||||
| Orion Group Holdings, Inc. and Subsidiaries Selected Results of Operations (In Thousands, Except Share and Per Share Information) (Unaudited) | |||||||||||||||
| Three months ended June 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 103,341 | 78.9 | % | $ | 74,743 | 74.3 | % | |||||||
| Private sector | 27,612 | 21.1 | % | 25,800 | 25.7 | % | |||||||||
| Marine segment total | $ | 130,953 | 100.0 | % | $ | 100,543 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 6,025 | 9.8 | % | $ | 5,542 | 6.8 | % | |||||||
| Private sector | 55,189 | 90.2 | % | 76,449 | 93.2 | % | |||||||||
| Concrete segment total | $ | 61,214 | 100.0 | % | $ | 81,991 | 100.0 | % | |||||||
| Total | $ | 192,167 | $ | 182,534 | |||||||||||
| Operating (loss) income | |||||||||||||||
| Marine segment | $ | (5,466 | ) | (4.2 | ) | % | $ | 3,492 | 3.5 | % | |||||
| Concrete segment | 2,698 | 4.4 | % | (1,453 | ) | (1.8 | ) | % | |||||||
| Total | $ | (2,768 | ) | $ | 2,039 | ||||||||||
| Six months ended June 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 196,276 | 82.7 | % | $ | 132,669 | 73.8 | % | |||||||
| Private sector | 41,002 | 17.3 | % | 47,172 | 26.2 | % | |||||||||
| Marine segment total | $ | 237,278 | 100.0 | % | $ | 179,841 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 9,429 | 8.2 | % | $ | 9,688 | 6.0 | % | |||||||
| Private sector | 106,132 | 91.8 | % | 152,179 | 94.0 | % | |||||||||
| Concrete segment total | $ | 115,561 | 100.0 | % | $ | 161,867 | 100.0 | % | |||||||
| Total | $ | 352,839 | $ | 341,708 | |||||||||||
| Operating (loss) income | |||||||||||||||
| Marine segment | $ | (10,332 | ) | (4.4 | ) | % | $ | (2,588 | ) | (1.4 | ) | % | |||
| Concrete segment | 4,440 | 3.8 | % | (6,016 | ) | (3.7 | ) | % | |||||||
| Total | $ | (5,892 | ) | $ | (8,604 | ) | |||||||||
| Orion Group Holdings, Inc. and Subsidiaries Reconciliation of Adjusted Net Income (Loss) (In thousands except per share information) (Unaudited) | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net loss | $ | (6,603 | ) | $ | (255 | ) | $ | (12,660 | ) | $ | (12,850 | ) | |||||
| One-time charges and the tax effects: | |||||||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | (5,202 | ) | — | (5,202 | ) | |||||||||||
| ERP implementation | 613 | 310 | 1,299 | 496 | |||||||||||||
| Severance | 19 | 24 | 81 | 126 | |||||||||||||
| Tax rate applied to one-time charges (1) | (13 | ) | 584 | (239 | ) | 550 | |||||||||||
| Total one-time charges and the tax effects | 619 | (4,284 | ) | 1,141 | (4,030 | ) | |||||||||||
| Federal and state tax valuation allowances | 825 | 13 | 2,410 | 2,070 | |||||||||||||
| Adjusted net loss | $ | (5,159 | ) | $ | (4,526 | ) | $ | (9,109 | ) | $ | (14,810 | ) | |||||
| Adjusted EPS | $ | (0.16 | ) | $ | (0.14 | ) | $ | (0.28 | ) | $ | (0.46 | ) | |||||
____________________________
| (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 Subsidiaries Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations (In Thousands, Except Margin Data) (Unaudited) | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net loss | $ | (6,603 | ) | $ | (255 | ) | $ | (12,660 | ) | $ | (12,850 | ) | |||||
| Income tax expense (benefit) | 617 | (42 | ) | 265 | 598 | ||||||||||||
| Interest expense, net | 3,338 | 2,586 | 6,695 | 4,191 | |||||||||||||
| Depreciation and amortization | 5,970 | 5,343 | 11,990 | 10,789 | |||||||||||||
| EBITDA (1) | 3,322 | 7,632 | 6,290 | 2,728 | |||||||||||||
| Share-based compensation | 1,556 | 945 | 1,914 | 1,469 | |||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | (5,202 | ) | — | (5,202 | ) | |||||||||||
| ERP implementation | 613 | 310 | 1,299 | 496 | |||||||||||||
| Severance | 19 | 24 | 81 | 126 | |||||||||||||
| Adjusted EBITDA(2) | $ | 5,510 | $ | 3,709 | $ | 9,584 | $ | (383 | ) | ||||||||
| Operating income margin | (1.3 | ) | % | 1.1 | % | (1.7 | ) | % | (2.5 | ) | % | ||||||
| Impact of other income | — | % | 0.1 | % | 0.1 | % | 0.2 | % | |||||||||
| Impact of depreciation and amortization | 3.1 | % | 2.9 | % | 3.4 | % | 3.2 | % | |||||||||
| Impact of share-based compensation | 0.8 | % | 0.5 | % | 0.5 | % | 0.4 | % | |||||||||
| Impact of net gain on Port Lavaca South Yard property sale | — | % | (2.8 | ) | % | — | % | (1.5 | ) | % | |||||||
| Impact of ERP implementation | 0.3 | % | 0.2 | % | 0.4 | % | 0.1 | % | |||||||||
| Impact of severance | — | % | — | % | — | % | — | % | |||||||||
| Adjusted EBITDA margin(2) | 2.9 | % | 2.0 | % | 2.7 | % | (0.1 | ) | % | ||||||||
____________________________
| (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 share-based compensation, net gain on Port Lavaca South Yard property sale, ERP implementation, and severance. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues. |
| Orion Group Holdings, Inc. and Subsidiaries Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment (In Thousands, Except Margin Data) (Unaudited) | |||||||||||||||||
| Marine | Concrete | ||||||||||||||||
| Three months ended | Three months ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Operating (loss) income | $ | (5,466 | ) | $ | 3,492 | $ | 2,698 | $ | (1,453 | ) | |||||||
| Other income | 83 | 250 | 37 | — | |||||||||||||
| Depreciation and amortization | 4,922 | 3,812 | 1,048 | 1,531 | |||||||||||||
| EBITDA (1) | (461 | ) | 7,554 | 3,783 | 78 | ||||||||||||
| Share-based compensation | 1,494 | 923 | 62 | 22 | |||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | (5,202 | ) | — | — | ||||||||||||
| ERP implementation | 420 | 168 | 193 | 142 | |||||||||||||
| Severance | 19 | 2 | — | 22 | |||||||||||||
| Adjusted EBITDA(2) | $ | 1,472 | $ | 3,445 | $ | 4,038 | $ | 264 | |||||||||
| Operating income margin | (4.2 | ) | % | 3.5 | % | 4.4 | % | (1.8 | ) | % | |||||||
| Impact of other income | 0.1 | % | 0.2 | % | 0.1 | % | — | % | |||||||||
| Impact of depreciation and amortization | 3.8 | % | 3.8 | % | 1.7 | % | 1.9 | % | |||||||||
| Impact of share-based compensation | 1.1 | % | 0.9 | % | 0.1 | % | — | % | |||||||||
| Impact of net gain on Port Lavaca South Yard property sale | — | % | (5.2 | ) | % | — | % | — | % | ||||||||
| Impact of ERP implementation | 0.3 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||||||||
| Impact of severance | — | % | — | % | — | % | — | % | |||||||||
| Adjusted EBITDA margin (2) | 1.1 | % | 3.4 | % | 6.6 | % | 0.3 | % | |||||||||
| Marine | Concrete | ||||||||||||||||
| Six months ended | Six months ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Operating income (loss) | $ | (10,332 | ) | $ | (2,588 | ) | $ | 4,440 | $ | (6,016 | ) | ||||||
| Other income | 131 | 543 | 61 | — | |||||||||||||
| Depreciation and amortization | 9,853 | 7,647 | 2,137 | 3,142 | |||||||||||||
| EBITDA (1) | (348 | ) | 5,602 | 6,638 | (2,874 | ) | |||||||||||
| Share-based compensation | 1,820 | 1,442 | 94 | 27 | |||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | (5,202 | ) | — | — | ||||||||||||
| ERP implementation | 874 | 261 | 425 | 235 | |||||||||||||
| Severance | 81 | 38 | — | 88 | |||||||||||||
| Adjusted EBITDA(2) | $ | 2,427 | $ | 2,141 | $ | 7,157 | $ | (2,524 | ) | ||||||||
| Operating income margin | (4.4 | ) | % | (1.4 | ) | % | 3.8 | % | (3.7 | ) | % | ||||||
| Impact of other income | — | % | 0.3 | % | 0.1 | % | — | % | |||||||||
| Impact of depreciation and amortization | 4.2 | % | 4.3 | % | 1.8 | % | 1.9 | % | |||||||||
| Impact of share-based compensation | 0.8 | % | 0.8 | % | 0.1 | % | — | % | |||||||||
| Impact of net gain on Tampa property sale | — | % | (2.9 | ) | % | — | % | — | % | ||||||||
| Impact of ERP implementation | 0.4 | % | 0.1 | % | 0.4 | % | 0.1 | % | |||||||||
| Impact of severance | — | % | — | % | — | % | 0.1 | % | |||||||||
| Adjusted EBITDA margin (2) | 1.0 | % | 1.2 | % | 6.2 | % | (1.6 | ) | % | ||||||||
____________________________
| (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 share-based compensation, net gain on Port Lavaca South Yard property sale, ERP implementation, and severance. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues. |
| Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Cash Flows Summarized (In Thousands) (Unaudited) | |||||||||||||||||
| Three months ended | Six months ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net loss | $ | (6,603 | ) | $ | (255 | ) | $ | (12,660 | ) | $ | (12,850 | ) | |||||
| Adjustments to remove non-cash and non-operating items | 10,506 | 1,511 | 19,512 | 8,179 | |||||||||||||
| Cash flow from net income (loss) after adjusting for non-cash and non-operating items | 3,903 | 1,256 | 6,852 | (4,671 | ) | ||||||||||||
| Change in operating assets and liabilities (working capital) | (19,235 | ) | (10,199 | ) | (45,009 | ) | (7,305 | ) | |||||||||
| Cash flows used in operating activities | $ | (15,332 | ) | $ | (8,943 | ) | $ | (38,157 | ) | $ | (11,976 | ) | |||||
| Cash flows (used in) provided by investing activities | $ | (4,560 | ) | $ | 8,341 | $ | (6,133 | ) | $ | 7,041 | |||||||
| Cash flows provided by financing activities | $ | 20,091 | $ | 8,182 | $ | 18,189 | $ | 11,576 | |||||||||
| Capital expenditures (included in investing activities above) | $ | (4,634 | ) | $ | (2,415 | ) | $ | (6,487 | ) | $ | (4,291 | ) | |||||
| Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Cash Flows (In Thousands) (Unaudited) | ||||||||
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (12,660 | ) | $ | (12,850 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 8,326 | 9,314 | ||||||
| Amortization of ROU operating leases | 4,912 | 2,464 | ||||||
| Amortization of ROU finance leases | 3,664 | 1,475 | ||||||
| Amortization of deferred debt issuance costs | 995 | 537 | ||||||
| Deferred income taxes | (38 | ) | 5 | |||||
| Share-based compensation | 1,914 | 1,469 | ||||||
| Gain on disposal of assets, net | (423 | ) | (7,230 | ) | ||||
| Allowance for credit losses | 162 | 26 | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (28,135 | ) | (10,068 | ) | ||||
| Income tax receivable | (70 | ) | (196 | ) | ||||
| Inventory | (261 | ) | (309 | ) | ||||
| Prepaid expenses and other | 723 | 2,794 | ||||||
| Contract assets | 10,910 | 8,954 | ||||||
| Accounts payable | 7,291 | (12,495 | ) | |||||
| Accrued liabilities | (14,160 | ) | 3,188 | |||||
| Operating lease liabilities | (4,492 | ) | (2,495 | ) | ||||
| Income tax payable | 166 | 176 | ||||||
| Contract liabilities | (16,981 | ) | 3,146 | |||||
| Net cash used in operating activities | (38,157 | ) | (11,976 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property and equipment | 354 | 11,332 | ||||||
| Purchase of property and equipment | (6,487 | ) | (4,291 | ) | ||||
| Net cash (used in) provided by investing activities | (6,133 | ) | 7,041 | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings on credit | 29,216 | 57,822 | ||||||
| Payments made on borrowings on credit | (6,809 | ) | (54,960 | ) | ||||
| Loan costs from Credit Facility | (343 | ) | (5,978 | ) | ||||
| Payments of finance lease liabilities | (4,209 | ) | (1,618 | ) | ||||
| Payments related to tax withholding for share-based compensation | (34 | ) | (189 | ) | ||||
| Exercise of stock options | 368 | — | ||||||
| Net cash provided by financing activities | 18,189 | 11,576 | ||||||
| Net change in cash, cash equivalents and restricted cash | (26,101 | ) | 6,641 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 30,938 | 3,784 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 4,837 | $ | 10,425 | ||||
| Orion Group Holdings, Inc. and Subsidiaries Condensed Balance Sheets (In Thousands, Except Share and Per Share Information) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,837 | $ | 30,938 | ||||
| Accounts receivable: | ||||||||
| Trade, net of allowance for credit losses of | 135,167 | 101,229 | ||||||
| Retainage | 36,428 | 42,044 | ||||||
| Income taxes receivable | 696 | 626 | ||||||
| Other current | 3,515 | 3,864 | ||||||
| Inventory | 2,007 | 2,699 | ||||||
| Contract assets | 70,612 | 81,522 | ||||||
| Prepaid expenses and other | 8,207 | 8,894 | ||||||
| Total current assets | 261,469 | 271,816 | ||||||
| Property and equipment, net of depreciation | 85,975 | 87,834 | ||||||
| Operating lease right-of-use assets, net of amortization | 33,685 | 25,696 | ||||||
| Financing lease right-of-use assets, net of amortization | 24,029 | 23,602 | ||||||
| Inventory, non-current | 7,314 | 6,361 | ||||||
| Intangible assets, net of amortization | — | — | ||||||
| Deferred income tax asset | 25 | 26 | ||||||
| Other non-current | 1,522 | 1,558 | ||||||
| Total assets | $ | 414,019 | $ | 416,893 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current debt, net of issuance costs | $ | 14,320 | $ | 13,453 | ||||
| Accounts payable: | ||||||||
| Trade | 87,452 | 80,294 | ||||||
| Retainage | 2,579 | 2,527 | ||||||
| Accrued liabilities | 25,569 | 37,074 | ||||||
| Income taxes payable | 736 | 570 | ||||||
| Contract liabilities | 47,098 | 64,079 | ||||||
| Current portion of operating lease liabilities | 9,133 | 9,254 | ||||||
| Current portion of financing lease liabilities | 10,363 | 8,665 | ||||||
| Total current liabilities | 197,250 | 215,916 | ||||||
| Long-term debt, net of debt issuance costs | 45,932 | 23,740 | ||||||
| Operating lease liabilities | 24,948 | 16,632 | ||||||
| Financing lease liabilities | 11,315 | 13,746 | ||||||
| Other long-term liabilities | 23,486 | 25,320 | ||||||
| Deferred income tax liability | 25 | 64 | ||||||
| Total liabilities | 302,956 | 295,418 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock -- | — | — | ||||||
| Common stock -- | 341 | 333 | ||||||
| Treasury stock, 711,231 shares, at cost, as of June 30, 2024 and December 31, 2023, respectively | (6,540 | ) | (6,540 | ) | ||||
| Additional paid-in capital | 191,969 | 189,729 | ||||||
| Retained loss | (74,707 | ) | (62,047 | ) | ||||
| Total stockholders’ equity | 111,063 | 121,475 | ||||||
| Total liabilities and stockholders’ equity | $ | 414,019 | $ | 416,893 | ||||
| Orion Group Holdings, Inc. and Subsidiaries Guidance - Adjusted EBITDA Reconciliation (In Thousands) (Unaudited) | ||||||||
| Twelve Months Ended | ||||||||
| December 31, 2024 | ||||||||
| Net (loss) income | $ | (4,727 | ) | $ | 233 | |||
| Income tax expense | 380 | 420 | ||||||
| Interest expense, net | 13,391 | 13,391 | ||||||
| Depreciation and amortization | 24,097 | 24,097 | ||||||
| EBITDA (1) | 33,141 | 38,141 | ||||||
| Share-based compensation | 4,484 | 4,484 | ||||||
| ERP implementation | 2,294 | 2,294 | ||||||
| Severance | 81 | 81 | ||||||
| Adjusted EBITDA(2) | $ | 40,000 | $ | 45,000 | ||||
____________________________
| (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 share-based compensation, ERP implementation, and severance. |
FAQ
What were Orion Group Holdings' (ORN) Q2 2024 revenue and earnings?
How did Orion's (ORN) Q2 2024 results compare to the previous year?
What is Orion Group Holdings' (ORN) updated guidance for 2024?
What was Orion Group Holdings' (ORN) backlog as of June 30, 2024?
How much new contract work did Orion (ORN) win in July 2024?
