Orion Group Holdings, Inc. (NYSE:ORN) (the “Company”), a leading
specialty construction company, today reported a net loss for the
three months ended June 30, 2017, of $2.3 million ($0.08
diluted loss per share). These results compare to a net loss
of $0.8 million ($0.03 diluted loss per share) for the same period
a year ago.
“The second quarter was impacted by continued
delays in our customers' ability to obtain necessary permits on
certain projects in our marine segment,” said Mark Stauffer, Orion
Group Holdings' President and Chief Executive Officer. “These
permitting delays, resulted in a resequencing of work on a couple
of large projects, which led to increased costs as a result of idle
crews and equipment. While this situation is unfortunate, we
have diligently worked with our customers on these impacted
projects to expedite the permitting process and we believe the
permits will be coming in the next couple of weeks. Without
these delays, our results for the second quarter would have been
above market expectations due to solid job execution and continued
strong demand for our services across both segments. We are
pleased with our progress in the second quarter, and believe we
will see strong financial improvements in the back half of this
year. Additionally, we continue to focus on developing
opportunities across the infrastructure, industrial, and building
sectors through organic growth, greenfield expansion, and strategic
acquisition opportunities.”
Second Quarter 2017 Highlights
- Increased total backlog 12% year-over-year
- Improved sequential win rate and book-to-bill metrics across
both operating segments
- Fully integrated the recently acquired Central Texas concrete
company
- Successfully pursued and were awarded multiple concrete
projects in Central Texas extending into the San Antonio
market
- Further developed our targeted infrastructure, industrial and
building sectors
Consolidated Results for the Second
Quarter of 2017 compared to Second Quarter 2016
- Contract revenues were $137.4 million, a decrease of 2.1%, as
compared to revenues of $140.3 million. The decrease is
primarily attributable to delays in customers obtaining necessary
permits, which caused interruptions in the execution of certain
projects within the marine segment.
- Gross profit was $15.4 million, or a gross profit margin of
11.2%, as compared to gross profit of $16.9 million, or a gross
profit margin of 12.1%. The decrease is primarily
attributable to delays in customers obtaining necessary permits,
which caused interruptions in the execution of certain projects
within the marine segment.
- Selling, General and Administrative (SG&A) expenses were
$17.5 million, as compared to $16.9 million. The increase is
primarily attributable to the recently acquired Central Texas
concrete company.
- Net loss was $2.3 million, as compared to a net loss of $0.8
million. Diluted loss per share was $0.08, as compared to
$0.03. The change is primarily attributable to delays in
customers obtaining necessary permits which caused interruptions in
the execution of certain projects within the marine segment.
- EBITDA was $5.1 million, representing an 3.7% EBITDA margin
which compares to EBITDA of $8.9 million, or a 6.4% EBITDA margin
(EBITDA and EBITDA margin are non-GAAP measures, defined on pages
4-5 of this release; reconciliation tables are provided on Page
7).
Mr. Stauffer continued, "Overall our operations
remained solid during the second quarter, with continued strong bid
opportunities across both segments. While permitting delays
put pressure on the marine segment, the concrete segment performed
as expected and halfway through the year, is on track to have solid
performance. During the second quarter, we completed the
integration of our recently acquired Central Texas concrete
company. We are pleased with the operating performance and
strong demand in Central Texas, including the geographic expansion
efforts into the San Antonio market.”
Segment Results for Second Quarter 2017 Compared to
Second Quarter 2016
Marine Segment
- Contract revenues were $62.0 million, a decrease of $18.0
million, or 22.5%. The decrease is primarily attributable to
delays in customers obtaining necessary permits, which caused
interruptions in the execution of certain projects within the
marine segment.
- Operating loss was $8.6 million, as compared to an operating
loss of $1.2 million. Operating margin for second quarter
2017 was (10.2)%, as compared to 0.2%. The changes in
operating loss and operating margin are primarily attributable to
delays in customers obtaining necessary permits, which caused
interruptions in the execution of certain projects within the
marine segment.
- Pre-tax loss was $7.8 million, as compared to $1.5 million.
This decrease is primarily attributable to delays in customers
obtaining necessary permits, which caused interruptions in the
execution of certain projects.
- EBITDA was $(1.2) million, representing a (2.0)% EBITDA margin
which compares to EBITDA of $5.3 million, or a 6.7% EBITDA margin
(EBITDA and EBITDA margin are non-GAAP measures, defined on pages
4-5 of this release; reconciliation tables are provided on pages
7-8).
Concrete Segment
- Contract revenues were $75.4 million, an increase of $15.1
million, or 25.0%. The increase is the result of the solid
execution of operations, continued demand for services, and the
inclusion of the recently acquired Central Texas concrete
company.
- Operating income was $6.2 million, an increase of $4.7
million. Operating income margin for second quarter 2017 was
5.1%, as compared to 0.2%. The improved operating income and
operating margin are the result of solid execution of operations
and better weather conditions compared to the prior year
period.
- Pre-tax income was $3.8 million, as compared to $0.1
million. The improved operating income and operating margin
are the result of solid execution of operations and better weather
conditions compared to the prior year period.
- EBITDA was $6.3 million, representing an 8.4% EBITDA margin
which compares to EBITDA of $3.6 million, or a 6.0% EBITDA margin
(EBITDA and EBITDA margin are non-GAAP measures, defined on pages
4-5 of this release; reconciliation tables are provided on pages
7-8).
Backlog
Backlog of work under contract as of June 30,
2017 was approximately $412 million, which compares with backlog
under contract at June 30, 2016 of approximately $368 million, or
an increase of 12% year-over-year. Of the backlog as of June
30, 2017, approximately $210 million was attributable to the marine
segment, while $202 million was attributable to the concrete
segment. Currently, the Company has approximately $583
million worth of bids outstanding, including approximately $34
million on which we are apparent low bidder, or have been
awarded subsequent to the end of the second quarter, of which,
approximately $26 million pertains to the marine segment
and approximately $8 million is in the concrete
segment.
"During the second quarter, we bid on
approximately $471 million of opportunities and were successful on
approximately $156 million," said Chris DeAlmeida, Orion Group
Holdings' Executive Vice President and Chief Financial
Officer. "This resulted in a 1.13 times book-to-bill ratio
for the quarter and a 33% win rate. In the marine segment, we
bid on approximately $161 million during the second quarter 2017
and were successful on $34 million. This resulted in a 0.54
times book-to-bill ratio and a win rate of 21.2% for the
quarter. In the concrete segment, we bid on approximately
$310 million in work while being awarded approximately $122
million. This resulted in a 1.61 times book-to-bill ratio and
a win rate of 39.2% for the quarter. Overall, we continue to
see strong demand for our services with good bid opportunities
across both business segments,” commented Mr. DeAlmeida.
Outlook
"As we look at the second half of 2017 and into
next year, we expect high-quality bid opportunities to continue
across each of the infrastructure, industrial, and building sectors
we target," commented Mr. Stauffer. "Our solid backlog level
at quarter end, and the ongoing operational improvements, provides
long-term visibility to support our future success.
"The infrastructure sector, which today is made
up of our Marine Segment, continues to provide both public and
private opportunities to maintain and expand marine facilities on
and over U.S. waterways," continued Mr. Stauffer. "Throughout
our operating areas, market fundamentals remain positive, and we
are seeing pockets of margin expansion in certain areas.
While prolonged permitting delays have continued to shift near term
marine revenue to the right, we are committed to profitably
delivering our services to meet our customers’ needs. Private
sector bid opportunities from downstream energy customers continue
as they expand their waterside facilities associated with refining
and storage. Recreational demand continues to persist from
private customers as local marinas are being expanded and
remodeled, while business opportunities from cruise lines remain
promising as we track opportunities related to new destinations, or
refurbishment of existing destinations in the Caribbean. In
the public sector, we expect continued lettings from the U.S. Army
Corp of Engineers, however we anticipate the federal government to
still operate under continuing resolutions rather than
appropriations for the upcoming fiscal year.
"Additionally, we continue to work on
collaboration efforts between our current businesses to develop our
service offerings in the industrial sector, and we are currently
pursuing industrial construction projects. The massive,
long-term petrochemical driven opportunities along the Gulf Coast
provides significant upside potential. Specifically, the U.S.
is on pace to become a net exporter of natural gas by 2018 as a
result of the shale revolution, which has led to increased domestic
production of natural gas. According to the American
Chemistry Council, there are 294 new projects planned in the
petrochemical industry with a total new capital investment of $179
billion as of March 2017, much of which will occur in our existing
markets. This will lead to an outpaced growth in of the
petrochemical industry that should account for more than half of
the construction spending in the manufacturing sector. As a
result, we are aligning ourselves to leverage our skill sets and
customer base to target projects in the industrial sector.
Mr. Stauffer continued, "The building sector,
which today houses our Concrete Segment, is in solid shape as its
three major metropolitan markets continuously retain their
positions as leading destinations for families and businesses to
reside. Population growth throughout our markets continue to
drive new distribution centers, office expansion, retail and
grocery establishments and new multi-family housing units,
educational facilities and medical facilities. In Houston,
warehouse construction and new education facilities comprised
nearly half of the second quarter sales mix. We are focused
on expanding our Dallas-Fort Worth market share including targeting
structural construction opportunities. As anticipated,
Central Texas operations are off to a great start, as we are seeing
solid project execution and expanding market share along the I-35
corridor. Sustained demand for concrete services in Houston
and Dallas/Fort Worth markets coupled with the early progress being
made in Central Texas, indicate the concrete segment should
continue providing meaningful contribution to EBITDA during the
second half of the year. We maintain confidence in each of
our current building sector markets and strongly believe there are
additional market opportunities for us to pursue in the future,”
concluded Mr. Stauffer.
Mr. DeAlmeida commented, "Each of the Company’s
business sectors continued to see solid demand for services, and we
placed competitive bids for projects throughout the second
quarter. While total bidding was lower than recent quarters
due to timing, we remain encouraged by the volume and mix of
projects scheduled or anticipated within our operating areas.
"As mentioned, the permitting delays we
experienced during the second quarter continued to create
volatility in our Marine Segment, which has impacted our future
near-term financial results. These delays affected various
marine services including dredging services. Unfortunately,
making up the lost days of dredging services during 2017 will be
difficult. As a result, when compared to full year 2016
results, we are now targeting full year 2017 EBITDA to be neutral,
to 10% growth. Our goal is, and will always be, to deliver
profitable returns to shareholders. Expansion of our existing
operations or future operations in the infrastructure, industrial,
or building sectors could provide further catalyst for EBITDA
growth outperformance. While we are disappointed with the
second quarter and pressure it will put on our full year results,
we remain excited about where the Company is headed and we remain
committed to profitability during the full year 2017."
Conference Call Details
Orion Group Holdings will host a conference call
to discuss results for the second quarter 2017 at 10:00 a.m.
Eastern Time/9:00 a.m. Central Time on Thursday, August 3,
2017. To participate in the call, please dial the Orion Group
Holdings, Inc. Second Quarter 2017 Earnings Conference Call toll
free at (855) 478-9690; participant code: 51019336. To listen
to a live webcast of the conference call, or access the replay,
visit the Calendar of Events page of the Investor Relations section
of the website at www.oriongroupholdingsinc.com.
About Orion Group Holdings
Orion Group Holdings, Inc., a leading specialty
construction company, provides services both on and off the water
in the continental United States, Alaska, Canada and the Caribbean
Basin through its heavy civil marine construction segment and its
commercial concrete segment. The Company’s heavy civil marine
construction segment services includes marine transportation,
facility construction, marine pipeline construction, marine
environmental structures, dredging of waterways, channels and
ports, environmental dredging, design, and specialty
services. Its commercial concrete segment provides
turnkey concrete construction services including pour and finish,
dirt work, layout, forming, rebar, and mesh across the light
commercial, structural and other associated business areas.
The Company is headquartered in Houston, Texas with regional
offices throughout its operating areas.
Non-GAAP Financial Measures
This press release includes the financial
measures “EBITDA” and “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 and other GAAP financial
information, which information is of equal or greater
importance.
Orion Group Holdings defines EBITDA as net
income before net interest expense, income taxes, depreciation and
amortization. EBITDA margin is calculated by dividing EBITDA
for the period by contract revenues for the period. The GAAP
financial measure that is most directly comparable to EBITDA is net
income, while the GAAP financial measure that is most directly
comparable to EBITDA margin is operating margin, which represents
operating income divided by contract revenues. EBITDA and
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 and EBITDA margin provide useful information
regarding the Company's ability to meet future debt repayment
requirements 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 and EBITDA margin to
provide transparency to investors as they are commonly used by
investors and others in assessing performance. EBITDA and
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
generally accepted accounting principles in the United States,
or as a measure of the Company's profitability or liquidity.
Backlog
Backlog consists of projects under contract that
have either (a) not been started, or (b) are in progress and not
yet complete, and the Company cannot guarantee that the revenue
projected in 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. Given
the typical duration of the Company's projects, which generally
range from three to nine months, the Company's backlog at any point
in time usually represents only a portion of the revenue it expects
to realize during a twelve-month period.
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 Private Securities Litigation
Reform Act of 1995, the provisions of which 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 (including those under “Outlook”
above), and any other statement, express or implied, concerning
future operating results or the future generation of or ability to
generate revenues, income, net income, profit, EBITDA, 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 estimated project start date, 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 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.
Please refer to the Company's Annual Report on
Form 10-K, filed on March 24, 2017, 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.
Orion Group Holdings, Inc. and SubsidiariesCondensed
Consolidated Statements of Operations(In thousands, except share
and per share information)(Unaudited) |
|
|
Three months ended June 30, |
Six months ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
Contract revenues |
$ |
137,420 |
|
$ |
140,301 |
|
276,177 |
|
269,924 |
|
Costs
of contract revenues |
122,023 |
|
123,355 |
|
247,795 |
|
238,267 |
|
Gross profit |
15,397 |
|
16,946 |
|
28,382 |
|
31,657 |
|
Selling, general and administrative expenses |
17,528 |
|
16,899 |
|
32,507 |
|
32,437 |
|
Loss
(gain) on sale of assets, net |
335 |
|
(234 |
) |
(177 |
) |
(606 |
) |
Operating loss from operations |
(2,466 |
) |
281 |
|
(3,948 |
) |
(174 |
) |
Other
(expense) income |
|
|
|
|
Other income |
11 |
|
9 |
|
21 |
|
22 |
|
Interest income |
— |
|
— |
|
— |
|
1 |
|
Interest expense |
(1,462 |
) |
(1,600 |
) |
(2,817 |
) |
(3,117 |
) |
Other expense, net |
(1,451 |
) |
(1,591 |
) |
(2,796 |
) |
(3,094 |
) |
Loss before income taxes |
(3,917 |
) |
(1,310 |
) |
(6,744 |
) |
(3,268 |
) |
Income tax benefit |
(1,624 |
) |
(502 |
) |
(2,643 |
) |
(1,252 |
) |
Net loss |
(2,293 |
) |
(808 |
) |
(4,101 |
) |
(2,016 |
) |
|
|
|
|
|
Basic
loss per share |
$ |
(0.08 |
) |
$ |
(0.03 |
) |
$ |
(0.15 |
) |
$ |
(0.07 |
) |
Diluted loss per share |
$ |
(0.08 |
) |
$ |
(0.03 |
) |
$ |
(0.15 |
) |
$ |
(0.07 |
) |
Shares used to compute loss per share |
|
|
|
|
Basic |
27,941,814 |
|
27,464,683 |
|
27,867,090 |
|
27,383,748 |
|
Diluted |
27,941,814 |
|
27,464,683 |
|
27,867,090 |
|
27,383,748 |
|
Orion Group Holdings, Inc. and SubsidiariesSelected
Results of Operations(In thousands, except share and per share
information)(Unaudited) |
|
|
Three months ended June 30, |
Six months ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
Marine
Segment |
|
|
|
|
Contract
revenues |
$ |
62,003 |
|
$ |
79,966 |
|
$ |
129,183 |
|
$ |
142,381 |
|
Operating
loss |
(8,617 |
) |
(1,212 |
) |
(16,323 |
) |
(4,354 |
) |
|
|
|
|
|
Concrete
Segment |
|
|
|
|
Contract
revenues |
$ |
75,417 |
|
$ |
60,335 |
|
$ |
146,994 |
|
$ |
127,543 |
|
Operating
income |
6,150 |
|
1,493 |
|
12,375 |
|
4,180 |
|
Orion Group Holdings, Inc. and SubsidiariesEBITDA and
EBITDA Margin Reconciliations(In Thousands, except margin
data)(Unaudited) |
|
|
Three months ended June 30, |
Six months ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
|
|
|
|
|
Operating income
(loss) |
$ |
(2,466 |
) |
$ |
281 |
|
$ |
(3,948 |
) |
$ |
(174 |
) |
Other income |
11 |
|
9 |
|
21 |
|
22 |
|
Depreciation and
amortization |
7,591 |
|
8,653 |
|
15,119 |
|
17,203 |
|
EBITDA(1) |
$ |
5,136 |
|
$ |
8,943 |
|
$ |
11,192 |
|
$ |
17,051 |
|
Operating income (loss)
margin(2) |
(1.8 |
)% |
0.2 |
% |
(1.4 |
)% |
— |
% |
Impact of depreciation
and amortization |
5.5 |
% |
6.2 |
% |
5.5 |
% |
6.4 |
% |
EBITDA margin(1) |
3.7 |
% |
6.4 |
% |
4.1 |
% |
6.4 |
% |
(1) EBITDA is a non-GAAP measure that represents earnings
before interest, taxes, depreciation and amortization. EBITDA
margin is a non-GAAP measure calculated by dividing EBITDA by
contract revenues.(2) Operating margin is calculated by
dividing operating income (loss), plus other income, by contract
revenues.
Orion Group Holdings, Inc. and SubsidiariesEBITDA and
EBITDA Margin Reconciliations by Segment(In Thousands, except
margin data)(Unaudited) |
|
|
Marine Segment |
|
Three months ended June 30, |
Six months ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
|
|
|
|
|
Operating loss |
$ |
(8,617 |
) |
$ |
(1,212 |
) |
(16,323 |
) |
(4,354 |
) |
Other income |
2,317 |
|
1,362 |
|
4,149 |
|
3,824 |
|
Depreciation and
amortization |
5,087 |
|
5,176 |
|
10,342 |
|
10,243 |
|
EBITDA(1) |
$ |
(1,213 |
) |
$ |
5,326 |
|
$ |
(1,832 |
) |
$ |
9,713 |
|
Operating loss
margin(2) |
(10.2 |
)% |
0.2 |
% |
(9.4 |
)% |
(0.4 |
)% |
Impact of depreciation
and amortization |
8.2 |
% |
6.5 |
% |
8.0 |
% |
7.2 |
% |
EBITDA margin(1) |
(2.0 |
)% |
6.7 |
% |
(1.4 |
)% |
6.8 |
% |
|
Concrete Segment |
|
Three months ended June 30, |
Six months ended June 30, |
|
2017 |
2016 |
2017 |
2016 |
|
|
|
|
|
Operating income |
$ |
6,150 |
|
$ |
1,493 |
|
12,375 |
|
4,180 |
|
Other expense |
(2,306 |
) |
(1,353 |
) |
(4,128 |
) |
(3,802 |
) |
Depreciation and
amortization |
2,505 |
|
3,477 |
|
4,777 |
|
6,960 |
|
EBITDA(1) |
$ |
6,349 |
|
$ |
3,617 |
|
$ |
13,024 |
|
$ |
7,338 |
|
Operating income
margin(2) |
5.1 |
% |
0.2 |
% |
5.6 |
% |
0.3 |
% |
Impact of depreciation
and amortization |
3.3 |
% |
5.8 |
% |
3.2 |
% |
5.5 |
% |
EBITDA margin(1) |
8.4 |
% |
6.0 |
% |
8.8 |
% |
5.8 |
% |
(1) EBITDA is a non-GAAP measure that represents earnings
before interest, taxes, depreciation and amortization. EBITDA
margin is a non-GAAP measure calculated by dividing EBITDA by
contract revenues.(2) Operating margin is calculated by
dividing operating income (loss), plus other income, by contract
revenues.
Orion Group Holdings, Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(In Thousands, except share and per
share information) |
|
|
|
June 30, 2017 |
December 31, 2016 |
|
|
Unaudited |
Audited |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
|
$ |
920 |
|
$ |
305 |
|
Accounts receivable: |
|
|
|
Trade, net of allowance of $0 and $0, respectively |
|
87,619 |
|
92,202 |
|
Retainage |
|
32,482 |
|
40,201 |
|
Other current |
|
3,723 |
|
4,634 |
|
Income taxes receivable |
|
2,335 |
|
133 |
|
Inventory |
|
5,467 |
|
5,392 |
|
Deferred tax asset |
|
— |
|
2,013 |
|
Costs and estimated earnings in excess of billings on uncompleted
contracts |
|
41,829 |
|
39,968 |
|
Assets held for sale |
|
1,375 |
|
6,375 |
|
Prepaid expenses and other |
|
3,170 |
|
3,885 |
|
Total current assets |
|
178,920 |
|
195,108 |
|
Property and equipment, net |
|
151,501 |
|
158,082 |
|
Accounts receivable, non-current |
|
1,304 |
|
733 |
|
Inventory, non-current |
|
3,927 |
|
3,998 |
|
Goodwill |
|
68,913 |
|
66,351 |
|
Intangible assets, net of amortization |
|
20,298 |
|
22,032 |
|
Other noncurrent |
|
1,609 |
|
$ |
1,372 |
|
Total assets |
|
$ |
426,472 |
|
$ |
447,676 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current debt, net of debt issuance costs |
|
$ |
13,093 |
|
$ |
19,188 |
|
Accounts payable: |
|
|
|
Trade |
|
48,049 |
|
49,123 |
|
Retainage |
|
1,167 |
|
893 |
|
Accrued liabilities |
|
17,471 |
|
19,946 |
|
Taxes payable |
|
— |
|
689 |
|
Billings in excess of costs and estimated earnings on uncompleted
contracts |
|
28,951 |
|
27,681 |
|
Total current liabilities |
|
108,731 |
|
117,520 |
|
Long
term debt, net of debt issuance costs |
|
72,739 |
|
82,077 |
|
Other
long-term liabilities |
|
3,050 |
|
2,493 |
|
Deferred income taxes |
|
16,637 |
|
19,000 |
|
Interest rate swap liability |
|
272 |
|
382 |
|
Total liabilities |
|
201,429 |
|
221,472 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock
-- $0.01 par value, 10,000,000 authorized, none issued |
|
— |
|
— |
|
Common
stock -- $0.01 par value, 50,000,000 authorized, 28,904,566 and
28,405,850 issued; 28,193,342 and 27,694,626 outstanding at June
30, 2017 and December 31, 2016, respectively |
|
288 |
|
283 |
|
Treasury stock, 711,231 and 711,231 shares, at cost, as of June 30,
2017 and December 31, 2016, respectively |
|
(6,540 |
) |
(6,540 |
) |
Accumulated other comprehensive loss |
|
(272 |
) |
(382 |
) |
Additional paid-in capital |
|
173,221 |
|
171,079 |
|
Retained earnings |
|
58,346 |
|
61,764 |
|
Total stockholders’ equity |
|
225,043 |
|
226,204 |
|
Total liabilities and stockholders’ equity |
|
$ |
426,472 |
|
$ |
447,676 |
|
Orion Group Holdings, Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows(In Thousands)(Unaudited) |
|
|
|
Six months ended June 30, |
|
|
2017 |
2016 |
Cash
flows from operating activities |
|
|
|
Net loss |
|
$ |
(4,101 |
) |
$ |
(2,016 |
) |
Adjustments to reconcile net loss to net cash provided by (used
in): |
|
|
|
Operating activities: |
|
|
|
Depreciation and amortization |
|
15,119 |
|
17,203 |
|
Deferred financing cost amortization |
|
631 |
|
620 |
|
Deferred income taxes |
|
(760 |
) |
(1,180 |
) |
Stock-based compensation |
|
1,207 |
|
1,302 |
|
(Gain) on sale of property and equipment |
|
(177 |
) |
(606 |
) |
Change in operating assets and liabilities |
|
|
|
Accounts receivable |
|
17,742 |
|
1,037 |
|
Income tax receivable |
|
(2,202 |
) |
— |
|
Inventory |
|
(5 |
) |
779 |
|
Prepaid expenses and other |
|
720 |
|
861 |
|
Costs and estimated earnings in excess of billings on uncompleted
contracts |
|
(1,853 |
) |
11,207 |
|
Accounts payable |
|
(3,318 |
) |
(11,857 |
) |
Accrued liabilities |
|
(2,445 |
) |
(5,469 |
) |
Income tax payable |
|
(689 |
) |
(306 |
) |
Billings
in excess of costs and estimated earnings on uncompleted
contracts |
|
252 |
|
(1,444 |
) |
Net cash provided by operating activities |
|
20,121 |
|
10,131 |
|
Cash
flows from investing activities: |
|
|
|
Proceeds from sale of property and equipment |
|
5,547 |
|
888 |
|
Contributions to CSV life insurance |
|
(241 |
) |
(471 |
) |
TAS acquisition adjustment |
|
— |
|
(369 |
) |
Acquisition of TBC |
|
(6,000 |
) |
— |
|
Purchase of property and equipment |
|
(3,689 |
) |
(12,513 |
) |
Net cash used in investing activities |
|
(4,383 |
) |
(12,465 |
) |
Cash
flows from financing activities: |
|
|
|
Borrowings from Credit Facility |
|
37,000 |
|
32,000 |
|
Payments made on borrowings from Credit Facility |
|
(53,063 |
) |
(29,021 |
) |
Loan costs from Credit Facility |
|
— |
|
(486 |
) |
Exercise of stock options |
|
940 |
|
8 |
|
Net cash (used in) provided by financing activities |
|
(15,123 |
) |
2,501 |
|
Net
change in cash and cash equivalents |
|
615 |
|
167 |
|
Cash
and cash equivalents at beginning of period |
|
305 |
|
1,345 |
|
Cash
and cash equivalents at end of period |
|
$ |
920 |
|
$ |
1,512 |
|
Supplemental disclosures of cash flow information: |
|
|
|
Cash
paid during the period for: |
|
|
|
Interest |
|
$ |
2,193 |
|
$ |
2,588 |
|
Taxes (net of refunds) |
|
$ |
1,067 |
|
$ |
235 |
|
David Griffith
Investor Relations Manager
(713) 852-6582
Orion (NYSE:ORN)
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