Posted on July 27, 2022
Interim CEO Shanfelter stated:
“As we endeavor to conclude the onboarding of leadership, the steps we are taking now enhances the foundation for success of the new leadership team. These steps include:
- Company-wide focus to obtain margin improvements on all projects
- Ensuring the ability to capture all cost escalations
- Downsizing unproductive markets
- Monetizing real estate
- Improving liquidity
- Increasing project wins from negotiations, not just low bidding
- Onboarding new management”
HOUSTON, July 27, 2022 (GLOBE NEWSWIRE) — Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported a net loss of $3.1 million ($0.10 diluted loss per share) for the second quarter ended June 30, 2022. Excluding non-recurring items, adjusted net loss was $0.9 million ($0.03 diluted loss per share).
Second Quarter 2022 Highlights
- Operating loss was $2.8 million for the second quarter of 2022 compared to operating income of $5.6 million for the second quarter of 2021.
- Net loss was $3.1 million ($0.10 diluted loss per share) for the second quarter of 2022 compared to net income of $3.5 million ($0.11 diluted earnings per share) for the second quarter of 2021.
- The second quarter 2022 net loss included $0.8 million ($0.03 loss per diluted share) of non-recurring items and $1.4 million ($0.04 per diluted share) of tax impact from valuation allowances. Second quarter 2022 adjusted net loss was $0.9 million ($0.03 diluted loss per share). (Please see page 7 of this release for an explanation of adjusted net loss, adjusted loss per share and a reconciliation to the nearest GAAP measure).
- EBITDA, adjusted to exclude the impact of the aforementioned non-recurring items, was $5.7 million in the second quarter of 2022, which compares to adjusted EBITDA of $7.4 million for the second quarter of 2021. (Please see page 8 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure).
- Backlog at the end of the second quarter was $603.2 million on a second quarter book-to-bill of 1.00x.
“I want to thank the entire team for embracing the changes and new expectations that are being set”, stated Austin Shanfelter, Orion’s Interim Chief Executive Officer. “I appreciate the actions that are underway and needed to provide a successful path forward.”
Mr. Shanfelter continued, “As we endeavor to conclude the onboarding of leadership, the steps we are taking now enhances the foundation for success of the new leadership team. These steps include:
- Company-wide focus to obtain margin improvements on all projects
- Ensuring the ability to capture all cost escalations
- Downsizing unproductive markets
- Monetizing real estate
- Improving liquidity
- Increasing project wins from negotiations, not just low bidding
- Onboarding new management
Consolidated Results for Second Quarter 2022 Compared to Second Quarter 2021
- Contract revenues were $194.6 million, an increase of $48.7 million or 33.4% as compared to $145.9 million. The increase was primarily driven by higher volume in the concrete segment and the start up on large jobs awarded in the second half of 2021 in the marine segment.
- Gross profit was $14.3 million, as compared to $12.3 million. Gross profit margin was 7.4%, as compared to 8.4%. The increase in gross profit dollars was primarily driven by efficiencies in equipment and labor utilization and a change in the mix of work in the marine segment in the current period, partially offset by unabsorbed indirect expenses in the concrete segment. The decrease in gross profit percentage was primarily driven by additional costs in the concrete segment as a result of project performance and conditions and a change in the mix of work in the current period partially offset by the impact from change orders recognized related to work primarily recognized in previous periods.
- Selling, General, and Administrative expenses were $17.2 million, as compared to $13.7 million. As a percentage of total contract revenues, SG&A expenses decreased from 9.3% to 8.9%, primarily due to higher revenues in the current period. The increase in SG&A dollars was driven primarily by severance, consulting fees related to the management transition, property tax true-ups in the current year period and as a result of a true-up reducing bonus expense in the prior year period.
- Operating loss was $2.8 million as compared to operating income of $5.6 million in the prior year period.
- EBITDA was $3.3 million, representing a 1.7% EBITDA margin, as compared to EBITDA of $12.1 million, or an 8.3% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the second quarter of 2022 was $5.7 million, representing a 2.9% adjusted EBITDA margin, as compared to adjusted EBITDA for the second quarter of 2021 of $7.4 million, representing a 5.1% adjusted EBITDA margin. (Please see page 8 of this release for an explanation of EBITDA, Adjusted EBITDA and a reconciliation to the nearest GAAP measure).
According to financial analysts, the expected results were as follows:
- On Wednesday July 27, Orion Marine Group released its earnings Q2.
- Analysts expected Orion Marine Group to report losses per share of $0.055.
4 analysts expected losses of $0.055 per share compared to earnings of $0.110 per share in the same quarter of the previous year.
Wall Street expected sales to increase by 10.75% over the previous year’s quarter to $145.9 million.
For the fiscal year, analysts expected losses per share of $0.093 compared to $-0.470 in the previous year. On average, they are expecting revenue to come in at $680.7 million, compared to $ 601.4 million last year.
This story was written by Markets Insider’s RoboEddy, which automatically writes these stories based on data provided by our partners
