Posted on November 7, 2016
Orion Group Holdings, Inc. (NYSE:ORN) (the “Company”), a leading specialty construction company, today reported net income for the three months ended September 30, 2016, of $4.7 million ($0.17 diluted earnings per share). These results compare to a net loss of $7.4 million ($0.27 diluted loss per share) for the same period a year ago.
Consolidated Results for the Third Quarter of 2016
– Third quarter 2016 contract revenue was $164.0 million, an increase of 19.7%, as compared to third quarter 2015 revenue of $137.1 million.
– Gross profit for the third quarter 2016 was $24.2 million, or a gross profit margin of 14.7%, an increase of approximately $15.9 million as compared to the third quarter 2015.
– Selling, General and Administrative (SG&A) expenses for the third quarter 2016 were $15.3 million as compared to $14.5 million in the prior year period, an increase of $0.8 million, or 5.5%. The increase is attributable to a full quarter of SG&A expenses from TAS Commercial Concrete (TAS) in the current period as well as increases in group health expenses, partially offset by general cost savings.
– Third quarter 2016 EBITDA was $18.1 million, representing a 11.0% EBITDA margin which compares to third quarter 2015 pro forma EBITDA of $1.2 million, or a 0.7% EBITDA margin (EBITDA and EBITDA margin are non-GAAP measures, defined on P. 3 of this release; reconciliation tables are provided on pages 7-8).
– Backlog of work under contract as of September 30, 2016, was approximately $388 million, excluding approximately $171 million of work on which the Company is the apparent low bidder, or has been awarded subsequent to the end of the third quarter.
“We believe our company is on the right track,” said Mark Stauffer, Orion Group Holding Inc.’s President and Chief Executive Officer. “Our Heavy Civil Marine Construction (HCMC) segment had a strong operating performance during the quarter with solid job execution. Our Commercial Concrete Construction (CCC) segment once again produced strong results, delivering consecutive record-setting revenue months in August and September, enhancing the Company’s overall results. As anticipated, third quarter consolidated results reflect significant year-over-year increases to EBITDA and EBITDA margin, underpinning the Company’s strategy and ability to overcome previously discussed challenges. With the structural changes we’ve made, the amount of backlog and low bid work we have, and the market opportunities we anticipate, we believe 2017 is set up to be a strong year with solid bottom line performance.”
Source: ORION
