Orion Group Holdings Reports Third Quarter 2024 Results
Orion Group Holdings (NYSE: ORN) reported strong Q3 2024 results with contract revenues of $226.7 million, up 34.5% year-over-year. The company posted a GAAP net income of $4.3 million ($0.12 per share) and adjusted net income of $5.6 million ($0.16 per share). Adjusted EBITDA grew 62% to $15.2 million, with cash flow from operations of $35.2 million. The growth was primarily driven by the Pearl Harbor and Grand Bahama Shipyard Dry Dock projects. Total backlog stood at $690.5 million, with $116 million in new contract awards subsequent to quarter end. The company maintains its full-year 2024 Adjusted EBITDA guidance of $40-45 million.
Orion Group Holdings (NYSE: ORN) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi da contratti pari a 226,7 milioni di dollari, in aumento del 34,5% rispetto all'anno precedente. La società ha registrato un reddito netto GAAP di 4,3 milioni di dollari (0,12 dollari per azione) e un reddito netto rettificato di 5,6 milioni di dollari (0,16 dollari per azione). L'EBITDA rettificato è cresciuto del 62%, raggiungendo 15,2 milioni di dollari, con un flusso di cassa dalle operazioni di 35,2 milioni di dollari. La crescita è stata principalmente guidata dai progetti di Dry Dock di Pearl Harbor e Grand Bahama Shipyard. L'ammontare totale degli ordini in portafoglio si attesta a 690,5 milioni di dollari, con 116 milioni di dollari in nuovi contratti assegnati dopo la fine del trimestre. L'azienda mantiene le sue previsioni per l'EBITDA rettificato dell'intero anno 2024, pari a 40-45 milioni di dollari.
Orion Group Holdings (NYSE: ORN) reportó resultados sólidos en el tercer trimestre de 2024, con ingresos por contratos de 226,7 millones de dólares, un aumento del 34,5% en comparación con el año anterior. La empresa presentó una ganancia neta GAAP de 4,3 millones de dólares (0,12 dólares por acción) y una ganancia neta ajustada de 5,6 millones de dólares (0,16 dólares por acción). El EBITDA ajustado creció un 62% hasta 15,2 millones de dólares, con un flujo de efectivo de las operaciones de 35,2 millones de dólares. El crecimiento fue impulsado principalmente por los proyectos de Dry Dock de Pearl Harbor y Grand Bahama Shipyard. El total de la cartera de pedidos se situó en 690,5 millones de dólares, con 116 millones de dólares en nuevos contratos adjudicados tras el cierre del trimestre. La empresa mantiene su guía de EBITDA ajustado para todo el año 2024 de 40-45 millones de dólares.
오리온 그룹 홀딩스 (NYSE: ORN)는 2024년 3분기 강력한 실적을 발표했습니다. 계약 수익은 2억 2,670만 달러로, 전년 대비 34.5% 증가했습니다. 회사는 GAAP 기준의 순이익 430만 달러 (주당 0.12 달러)와 조정된 순이익 560만 달러 (주당 0.16 달러)를 기록했습니다. 조정된 EBITDA는 1,520만 달러로 62% 성장했으며, 운영으로부터의 현금 흐름은 3,520만 달러입니다. 성장은 주로 펄 하버와 그랜드 바하마 조선소 드라이 독 프로젝트에 의해 주도되었습니다. 총 백로그는 6억 9,050만 달러로, 분기 종료 후 1억 1,600만 달러의 신규 계약 수상이 있었습니다. 회사는 2024년 전체 연간 조정 EBITDA 가이던스를 4천만~4천5백만 달러로 유지합니다.
Orion Group Holdings (NYSE: ORN) a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus contractuels de 226,7 millions de dollars, soit une hausse de 34,5% par rapport à l'an dernier. L'entreprise a affiché un bénéfice net GAAP de 4,3 millions de dollars (0,12 dollar par action) et un bénéfice net ajusté de 5,6 millions de dollars (0,16 dollar par action). L'EBITDA ajusté a augmenté de 62% pour atteindre 15,2 millions de dollars, avec un flux de trésorerie provenant des activités de 35,2 millions de dollars. La croissance a été principalement stimulée par les projets de Dry Dock de Pearl Harbor et Grand Bahama Shipyard. Le carnet de commandes total s'élevait à 690,5 millions de dollars, avec 116 millions de dollars en nouvelles attributions de contrats après la fin du trimestre. L'entreprise maintient ses prévisions de l'EBITDA ajusté pour l'ensemble de l'année 2024 entre 40 et 45 millions de dollars.
Orion Group Holdings (NYSE: ORN) berichtete über starke Ergebnisse im dritten Quartal 2024 mit Vertragsumsätzen von 226,7 Millionen US-Dollar, was einem Anstieg von 34,5% im Vergleich zum Vorjahr entspricht. Das Unternehmen verzeichnete einen GAAP-Nettogewinn von 4,3 Millionen US-Dollar (0,12 US-Dollar pro Aktie) und einen angepassten Nettogewinn von 5,6 Millionen US-Dollar (0,16 US-Dollar pro Aktie). Das angepasste EBITDA stieg um 62% auf 15,2 Millionen US-Dollar, mit einem Cashflow aus betrieblicher Tätigkeit von 35,2 Millionen US-Dollar. Das Wachstum wurde hauptsächlich durch die Projekte von Pearl Harbor und den Grand Bahama Shipyard Dry Dock getrieben. Der gesamte Auftragsbestand betrug 690,5 Millionen US-Dollar, mit 116 Millionen US-Dollar an neuen Vertragsvergaben nach Quartalsende. Das Unternehmen hält an seiner Prognose für das angepasste EBITDA für das Gesamtjahr 2024 von 40-45 Millionen US-Dollar fest.
- Revenue growth of 34.5% to $226.7 million
- Turnaround to net income of $4.3 million from previous year's loss
- 62% growth in Adjusted EBITDA to $15.2 million
- Strong cash flow from operations of $35.2 million
- Gross profit margin improvement to 11.9% from 11.3%
- New contract awards of $116 million post-quarter
- Decline in backlog to $690.5 million from $877.5 million year-over-year
- Increased SG&A expenses to $20.8 million from $17.1 million
- Share dilution from 5.6 million share offering
Insights
The Q3 results demonstrate significant operational improvement with
The backlog of
The infrastructure and construction market dynamics remain favorable for Orion. Key growth drivers include Department of Defense investments in Pacific operations, Infrastructure Investment and Jobs Act funding and data center construction demand. The company's strategic presence in high-growth markets like Houston and Dallas positions it well for commercial construction opportunities when interest rates moderate.
The deliberate shift toward higher-margin projects, particularly in the concrete segment, demonstrates disciplined execution of the company's strategy. The recent contract wins across marine and concrete segments, including the
HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported its financial results for the third quarter ended September 30, 2024.
Highlights for the quarter ended September 30, 2024:
- Contract revenues of
$226.7 million - GAAP net income of
$4.3 million or$0.12 per diluted share - Adjusted net income of
$5.6 million or$0.16 per diluted share - Adjusted EBITDA of
$15.2 million - Cash flow from operations of
$35.2 million - Backlog and contracted or awarded subsequent to quarter end totaled
$806.7 million
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“I am pleased to report that our team delivered a strong third quarter, including
“Looking ahead, we are excited about our future. We continue to see indicators of increasing market demand for our specialty marine and concrete services funded by both the government and private sector. From the Department of Defense’s investment to protect U.S. interests in the Pacific, to Infrastructure Investment and Jobs Act funds beginning to trickle down into construction hands, there is significant marine project work to pursue and win over the coming years. On the Concrete side of the business, data centers continue to generate significant opportunities while a lower interest rate and cost of capital may also stimulate commercial construction in our key Houston and Dallas markets, which continue to be growth centers. With our highly-skilled teams, improved business fundamentals, and strengthened balance sheet, we are well positioned to capitalize on the opportunities ahead,” concluded Boone.
Third Quarter 2024 Results
Contract revenues of
Gross profit increased to
Selling, general and administrative (“SG&A”) expenses were
Net income for the third quarter was
Third quarter 2024 net income included
EBITDA for the third quarter of 2024 was
Backlog
Total backlog at September 30, 2024 was
Recent Contract Wins
Subsequent to the quarter end, the Company was awarded
In addition, the Orion Marine Gulf operation will be performing Turning Basin North Wharf 16 Bulkhead Repairs for the Port of Houston, an
In the Concrete business, Orion was awarded a
Balance Sheet Update
On September 12, 2024, the Company raised
As of September 30, 2024, current assets were
Conference Call Details
Orion Group Holdings will host a conference call to discuss results for the third quarter 2024 at 9:00 a.m. Eastern Time/8:00 a.m. Central Time on Thursday, October 31, 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 impair 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 impair 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.
Contacts:
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 | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Contract revenues | $ | 226,675 | $ | 168,476 | $ | 579,514 | $ | 510,184 | ||||||||
| Costs of contract revenues | 199,611 | 149,406 | 518,631 | 471,488 | ||||||||||||
| Gross profit | 27,064 | 19,070 | 60,883 | 38,696 | ||||||||||||
| Selling, general and administrative expenses | 20,846 | 17,135 | 60,980 | 52,271 | ||||||||||||
| Amortization of intangible assets | — | 59 | — | 383 | ||||||||||||
| Gain on disposal of assets, net | (1,563 | ) | (685 | ) | (1,986 | ) | (7,915 | ) | ||||||||
| Operating income (loss) | 7,781 | 2,561 | 1,889 | (6,043 | ) | |||||||||||
| Other (expense) income: | ||||||||||||||||
| Other income | 107 | 49 | 299 | 592 | ||||||||||||
| Interest income | 73 | 21 | 97 | 90 | ||||||||||||
| Interest expense | (3,617 | ) | (3,414 | ) | (10,336 | ) | (7,674 | ) | ||||||||
| Other expense, net | (3,437 | ) | (3,344 | ) | (9,940 | ) | (6,992 | ) | ||||||||
| Income (loss) before income taxes | 4,344 | (783 | ) | (8,051 | ) | (13,035 | ) | |||||||||
| Income tax expense (benefit) | 82 | (123 | ) | 347 | 475 | |||||||||||
| Net income (loss) | $ | 4,262 | $ | (660 | ) | $ | (8,398 | ) | $ | (13,510 | ) | |||||
| Basic net income (loss) per share | $ | 0.12 | $ | (0.02 | ) | $ | (0.25 | ) | $ | (0.42 | ) | |||||
| Diluted net income (loss) per share | $ | 0.12 | $ | (0.02 | ) | $ | (0.25 | ) | $ | (0.42 | ) | |||||
| Shares used to compute net income (loss) per share: | ||||||||||||||||
| Basic | 34,494,302 | 32,384,446 | 33,390,722 | 32,285,921 | ||||||||||||
| Diluted | 34,518,680 | 32,384,446 | 33,390,722 | 32,285,921 | ||||||||||||
| Orion Group Holdings, Inc. and Subsidiaries Selected Results of Operations (In Thousands, Except Share and Per Share Information) (Unaudited) | |||||||||||||||
| Three months ended September 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 94,719 | 67.7 | % | $ | 61,144 | 75.6 | % | |||||||
| Private sector | 45,294 | 32.3 | % | 19,769 | 24.4 | % | |||||||||
| Marine segment total | $ | 140,013 | 100.0 | % | $ | 80,913 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 10,782 | 12.4 | % | $ | 7,974 | 9.1 | % | |||||||
| Private sector | 75,880 | 87.6 | % | 79,589 | 90.9 | % | |||||||||
| Concrete segment total | $ | 86,662 | 100.0 | % | $ | 87,563 | 100.0 | % | |||||||
| Total | $ | 226,675 | $ | 168,476 | |||||||||||
| Operating income | |||||||||||||||
| Marine segment | $ | 5,485 | 3.9 | % | $ | 2,001 | 2.5 | % | |||||||
| Concrete segment | 2,296 | 2.6 | % | 560 | 0.6 | % | |||||||||
| Total | $ | 7,781 | $ | 2,561 | |||||||||||
| Nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 290,995 | 77.1 | % | $ | 193,813 | 74.3 | % | |||||||
| Private sector | 86,296 | 22.9 | % | 66,941 | 25.7 | % | |||||||||
| Marine segment total | $ | 377,291 | 100.0 | % | $ | 260,754 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 20,211 | 10.0 | % | $ | 17,662 | 7.1 | % | |||||||
| Private sector | 182,012 | 90.0 | % | 231,768 | 92.9 | % | |||||||||
| Concrete segment total | $ | 202,223 | 100.0 | % | $ | 249,430 | 100.0 | % | |||||||
| Total | $ | 579,514 | $ | 510,184 | |||||||||||
| Operating (loss) income | |||||||||||||||
| Marine segment | $ | (4,847 | ) | (1.3 | )% | $ | (587 | ) | (0.2 | )% | |||||
| Concrete segment | 6,736 | 3.3 | % | (5,456 | ) | (2.2 | )% | ||||||||
| Total | $ | 1,889 | $ | (6,043 | ) | ||||||||||
| Orion Group Holdings, Inc. and Subsidiaries Reconciliation of Adjusted Net Income (Loss) (In thousands except per share information) (Unaudited) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 4,262 | $ | (660 | ) | $ | (8,398 | ) | $ | (13,510 | ) | |||||
| Adjusting items and the tax effects: | ||||||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | — | — | (5,202 | ) | |||||||||||
| Share-based compensation | 1,016 | 364 | 2,930 | 1,833 | ||||||||||||
| ERP implementation | 342 | 314 | 1,641 | 810 | ||||||||||||
| Severance | 4 | — | 85 | 126 | ||||||||||||
| Process improvement initiatives | 393 | — | 393 | — | ||||||||||||
| Tax rate applied to one-time charges (1) | (1,309 | ) | 90 | (1,879 | ) | 464 | ||||||||||
| Total adjusting items and the tax effects | 446 | 768 | 3,170 | (1,969 | ) | |||||||||||
| Federal and state tax valuation allowances | 934 | 891 | 3,344 | 2,961 | ||||||||||||
| Adjusted net income (loss) | $ | 5,642 | $ | 999 | $ | (1,884 | ) | $ | (12,518 | ) | ||||||
| Adjusted EPS | $ | 0.16 | $ | 0.03 | $ | (0.06 | ) | $ | (0.39 | ) | ||||||
(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 | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 4,262 | $ | (660 | ) | $ | (8,398 | ) | $ | (13,510 | ) | |||||
| Income tax expense (benefit) | 82 | (123 | ) | 347 | 475 | |||||||||||
| Interest expense, net | 3,544 | 3,393 | 10,239 | 7,584 | ||||||||||||
| Depreciation and amortization | 5,568 | 6,093 | 17,558 | 16,882 | ||||||||||||
| EBITDA (1) | 13,456 | 8,703 | 19,746 | 11,431 | ||||||||||||
| Share-based compensation | 1,016 | 364 | 2,930 | 1,833 | ||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | — | — | (5,202 | ) | |||||||||||
| ERP implementation | 342 | 314 | 1,641 | 810 | ||||||||||||
| Severance | 4 | — | 85 | 126 | ||||||||||||
| Process improvement initiatives | 393 | — | 393 | — | ||||||||||||
| Adjusted EBITDA(2) | $ | 15,211 | $ | 9,381 | $ | 24,795 | $ | 8,998 | ||||||||
| Operating income margin | 3.4 | % | 1.5 | % | 0.3 | % | (1.2 | ) | % | |||||||
| Impact of other income | — | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
| Impact of depreciation and amortization | 2.5 | % | 3.6 | % | 3.0 | % | 3.3 | % | ||||||||
| Impact of share-based compensation | 0.4 | % | 0.2 | % | 0.5 | % | 0.4 | % | ||||||||
| Impact of net gain on Port Lavaca South Yard property sale | — | % | — | % | — | % | (1.0 | ) | % | |||||||
| Impact of ERP implementation | 0.2 | % | 0.2 | % | 0.3 | % | 0.2 | % | ||||||||
| Impact of severance | — | % | — | % | — | % | — | % | ||||||||
| Impact of process improvement initiatives | 0.2 | % | — | % | 0.1 | % | — | % | ||||||||
| Adjusted EBITDA margin(2) | 6.7 | % | 5.6 | % | 4.3 | % | 1.8 | % | ||||||||
(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, severance and process improvement initiatives. 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 | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Operating income | $ | 5,485 | $ | 2,001 | $ | 2,296 | $ | 560 | |||||||||
| Other income | 86 | 49 | 21 | — | |||||||||||||
| Depreciation and amortization | 4,552 | 4,771 | 1,016 | 1,322 | |||||||||||||
| EBITDA (1) | 10,123 | 6,821 | 3,333 | 1,882 | |||||||||||||
| Share-based compensation | 915 | 341 | 101 | 23 | |||||||||||||
| ERP implementation | 194 | 153 | 148 | 161 | |||||||||||||
| Severance | 4 | — | — | — | |||||||||||||
| Process improvement initiatives | 256 | — | 137 | — | |||||||||||||
| Adjusted EBITDA(2) | $ | 11,492 | $ | 7,315 | $ | 3,719 | $ | 2,066 | |||||||||
| Operating income margin | 3.9 | % | 2.5 | % | 2.6 | % | 0.6 | % | |||||||||
| Impact of other income | — | % | — | % | — | % | — | % | |||||||||
| Impact of depreciation and amortization | 3.3 | % | 5.9 | % | 1.2 | % | 1.6 | % | |||||||||
| Impact of share-based compensation | 0.7 | % | 0.4 | % | 0.1 | % | — | % | |||||||||
| Impact of ERP implementation | 0.1 | % | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||
| Impact of severance | — | % | — | % | — | % | — | % | |||||||||
| Impact of process improvement initiatives | 0.2 | % | — | % | 0.2 | % | — | % | |||||||||
| Adjusted EBITDA margin (2) | 8.2 | % | 9.0 | % | 4.3 | % | 2.4 | % | |||||||||
| Marine | Concrete | ||||||||||||||||
| Nine months ended | Nine months ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Operating (loss) income | $ | (4,847 | ) | $ | (587 | ) | $ | 6,736 | $ | (5,456 | ) | ||||||
| Other income | 217 | 592 | 82 | — | |||||||||||||
| Depreciation and amortization | 14,405 | 12,418 | 3,153 | 4,464 | |||||||||||||
| EBITDA (1) | 9,775 | 12,423 | 9,971 | (992 | ) | ||||||||||||
| Share-based compensation | 2,735 | 1,783 | 195 | 50 | |||||||||||||
| Net gain on Port Lavaca South Yard property sale | — | (5,202 | ) | — | — | ||||||||||||
| ERP implementation | 1,068 | 414 | 573 | 396 | |||||||||||||
| Severance | 85 | 38 | — | 88 | |||||||||||||
| Process improvement initiatives | 256 | — | 137 | — | |||||||||||||
| Adjusted EBITDA(2) | $ | 13,919 | $ | 9,456 | $ | 10,876 | $ | (458 | ) | ||||||||
| Operating income margin | (1.3 | )% | (0.2 | )% | 3.3 | % | (2.2 | )% | |||||||||
| Impact of other income | 0.1 | % | 0.1 | % | — | % | — | % | |||||||||
| Impact of depreciation and amortization | 3.8 | % | 4.8 | % | 1.6 | % | 1.8 | % | |||||||||
| Impact of share-based compensation | 0.7 | % | 0.7 | % | 0.1 | % | — | % | |||||||||
| Impact of net gain on Port Lavaca South Yard property sale | — | % | (2.0 | )% | — | % | — | % | |||||||||
| Impact of ERP implementation | 0.3 | % | 0.2 | % | 0.3 | % | 0.2 | % | |||||||||
| Impact of severance | — | % | — | % | — | % | — | % | |||||||||
| Impact of process improvement initiatives | 0.1 | % | — | % | 0.1 | % | — | % | |||||||||
| Adjusted EBITDA margin (2) | 3.7 | % | 3.6 | % | 5.4 | % | (0.2 | )% | |||||||||
(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, severance and process improvement initiatives. 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 | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) | $ | 4,262 | $ | (660 | ) | $ | (8,398 | ) | $ | (13,510 | ) | |||||
| Adjustments to remove non-cash and non-operating items | 8,362 | 8,214 | 27,874 | 16,393 | ||||||||||||
| Cash flow from net income after adjusting for non-cash and non-operating items | 12,624 | 7,554 | 19,476 | 2,883 | ||||||||||||
| Change in operating assets and liabilities (working capital) | 22,532 | (24,079 | ) | (20,163 | ) | (31,384 | ) | |||||||||
| Cash flows provided by (used in) operating activities | $ | 35,156 | $ | (16,525 | ) | $ | (687 | ) | $ | (28,501 | ) | |||||
| Cash flows (used in) provided by investing activities | $ | (2,589 | ) | $ | (1,650 | ) | $ | (8,722 | ) | $ | 5,391 | |||||
| Cash flows (used in) provided by financing activities | $ | (9,150 | ) | $ | 13,990 | $ | 6,725 | $ | 23,207 | |||||||
| Capital expenditures (included in investing activities above) | $ | (4,157 | ) | $ | (2,387 | ) | $ | (10,644 | ) | $ | (6,678 | ) | ||||
| Orion Group Holdings, Inc. and Subsidiaries Condensed Statements of Cash Flows (In Thousands) (Unaudited) | ||||||||
| Nine months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (8,398 | ) | $ | (13,510 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 11,961 | 13,874 | ||||||
| Amortization of ROU operating leases | 7,491 | 4,456 | ||||||
| Amortization of ROU finance leases | 5,597 | 3,008 | ||||||
| Amortization of deferred debt issuance costs | 1,562 | 1,067 | ||||||
| Deferred income taxes | (36 | ) | (76 | ) | ||||
| Share-based compensation | 2,930 | 1,833 | ||||||
| Gain on disposal of assets, net | (1,986 | ) | (7,914 | ) | ||||
| Allowance for credit losses | 355 | 26 | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (40,276 | ) | (9,410 | ) | ||||
| Income tax receivable | (69 | ) | (66 | ) | ||||
| Inventory | (567 | ) | (514 | ) | ||||
| Prepaid expenses and other | 4,940 | 3,076 | ||||||
| Contract assets | 23,027 | (715 | ) | |||||
| Accounts payable | 33,481 | (36,223 | ) | |||||
| Accrued liabilities | (14,333 | ) | 7,096 | |||||
| Operating lease liabilities | (6,625 | ) | (4,566 | ) | ||||
| Income tax payable | (54 | ) | 3 | |||||
| Contract liabilities | (19,687 | ) | 9,935 | |||||
| Net cash used in operating activities | (687 | ) | (28,501 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property and equipment | 1,922 | 12,069 | ||||||
| Purchase of property and equipment | (10,644 | ) | (6,678 | ) | ||||
| Net cash (used in) provided by investing activities | (8,722 | ) | 5,391 | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings on credit | 39,279 | 89,491 | ||||||
| Payments made on borrowings on credit | (39,671 | ) | (73,236 | ) | ||||
| Payments made on term loan | (10,000 | ) | — | |||||
| Proceeds from failed sale-leaseback arrangements | — | 14,140 | ||||||
| Payments made on failed sale-leaseback arrangements | (3,172 | ) | — | |||||
| Proceeds from sale-leaseback financing | — | 2,359 | ||||||
| Loan costs from Credit Facility | (393 | ) | (6,532 | ) | ||||
| Payments of finance lease liabilities | (6,456 | ) | (2,524 | ) | ||||
| Proceeds from issuance of common stock | 27,206 | — | ||||||
| Payments related to tax withholding for share-based compensation | (436 | ) | (491 | ) | ||||
| Exercise of stock options | 368 | — | ||||||
| Net cash provided by financing activities | 6,725 | 23,207 | ||||||
| Net change in cash, cash equivalents and restricted cash | (2,684 | ) | 97 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 30,938 | 3,784 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 28,254 | $ | 3,881 | ||||
| Orion Group Holdings, Inc. and Subsidiaries Condensed Balance Sheets (In Thousands, Except Share and Per Share Information) | ||||||||
| September 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 28,254 | $ | 30,938 | ||||
| Accounts receivable: | ||||||||
| Trade, net of allowance for credit losses of | 147,446 | 101,229 | ||||||
| Retainage | 36,486 | 42,044 | ||||||
| Income taxes receivable | 695 | 626 | ||||||
| Other current | 3,153 | 3,864 | ||||||
| Inventory | 2,317 | 2,699 | ||||||
| Contract assets | 58,495 | 81,522 | ||||||
| Prepaid expenses and other | 4,141 | 8,894 | ||||||
| Total current assets | 280,987 | 271,816 | ||||||
| Property and equipment, net of depreciation | 86,254 | 87,834 | ||||||
| Operating lease right-of-use assets, net of amortization | 29,202 | 25,696 | ||||||
| Financing lease right-of-use assets, net of amortization | 25,179 | 23,602 | ||||||
| Inventory, non-current | 7,309 | 6,361 | ||||||
| Deferred income tax asset | 27 | 26 | ||||||
| Other non-current | 1,371 | 1,558 | ||||||
| Total assets | $ | 430,329 | $ | 416,893 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current debt, net of issuance costs | $ | 4,694 | $ | 13,453 | ||||
| Accounts payable: | ||||||||
| Trade | 114,231 | 80,294 | ||||||
| Retainage | 2,328 | 2,527 | ||||||
| Accrued liabilities | 23,581 | 37,074 | ||||||
| Income taxes payable | 516 | 570 | ||||||
| Contract liabilities | 44,392 | 64,079 | ||||||
| Current portion of operating lease liabilities | 8,215 | 9,254 | ||||||
| Current portion of financing lease liabilities | 10,852 | 8,665 | ||||||
| Total current liabilities | 208,809 | 215,916 | ||||||
| Long-term debt, net of debt issuance costs | 23,276 | 23,740 | ||||||
| Operating lease liabilities | 21,844 | 16,632 | ||||||
| Financing lease liabilities | 11,300 | 13,746 | ||||||
| Other long-term liabilities | 22,656 | 25,320 | ||||||
| Deferred income tax liability | 29 | 64 | ||||||
| Total liabilities | 287,914 | 295,418 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock -- | — | — | ||||||
| Common stock -- | 396 | 333 | ||||||
| Treasury stock, 711,231 shares, at cost, as of September 30, 2024 and December 31, 2023, respectively | (6,540 | ) | (6,540 | ) | ||||
| Additional paid-in capital | 219,004 | 189,729 | ||||||
| Retained loss | (70,445 | ) | (62,047 | ) | ||||
| Total stockholders’ equity | 142,415 | 121,475 | ||||||
| Total liabilities and stockholders’ equity | $ | 430,329 | $ | 416,893 | ||||
| Orion Group Holdings, Inc. and Subsidiaries Guidance - Adjusted EBITDA Reconciliation (In Thousands) (Unaudited) | |||||||
| Twelve Months Ended | |||||||
| December 31, 2024 | |||||||
| Net (loss) income | $ | (3,543 | ) | $ | 1,457 | ||
| Income tax expense | 728 | 728 | |||||
| Interest expense, net | 12,675 | 12,675 | |||||
| Depreciation and amortization | 23,168 | 23,168 | |||||
| EBITDA (1) | 33,028 | 38,028 | |||||
| Share-based compensation | 4,023 | 4,023 | |||||
| ERP implementation | 2,092 | 2,092 | |||||
| Process improvement initiatives | 680 | 680 | |||||
| Severance | 177 | 177 | |||||
| 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, severance and process improvement initiatives.
FAQ
What was Orion Group Holdings (ORN) revenue in Q3 2024?
What is ORN's current backlog as of Q3 2024?
How much did Orion Group (ORN) raise in their September 2024 share offering?
What is ORN's Adjusted EBITDA guidance for full-year 2024?
