Posted on May 3, 2021
Orion Marine Group (NYSE: ORN) reported Q1 EPS of $0.04, $0.02 better than the analyst estimate of $0.02. Revenue for the quarter came in at $153.3 million versus the consensus estimate of $155.1 million.
First Quarter 2021 Highlights:
- Operating income was $2.1 million for the first quarter of 2021 compared to operating income of $4.4 million for the first quarter of 2020.
- Net income was $0.9 million ($0.03 diluted earnings per share) for the first quarter of 2021 compared to net income of $2.7 million ($0.09 diluted earnings per share) for the first quarter of 2020.
- The first quarter 2021 net income included $0.5 million ($0.01 earnings per diluted share) of non-recurring items and $0.2 million ($0.00 earnings per diluted share) of tax benefit associated with the movement of certain valuation allowances. First quarter 2021 adjusted net income was $1.2 million ($0.04 diluted earnings per share). (Please see page 9 of this release for a reconciliation of adjusted net income).
- EBITDA, adjusted to exclude the impact of the aforementioned non-recurring items, was $9.5 million in the first quarter of 2021, which compares to adjusted EBITDA of $12.2 million for the first quarter of 2020. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure).
- Backlog at the end of the first quarter was $364.8 million on a first quarter book-to-bill of 0.51x.
“Our results for the first quarter were in-line with our expectations,” stated Mark Stauffer, Orion’s Chief Executive Officer. “First quarter results reflect the impact of the historic winter storm that affected our Texas operations, causing work on Texas projects in both segments, including for dredging projects, to stop for up to ten days. This reduced revenue for the quarter by approximately $8.2 million and lowered earnings per share by approximately $0.03. Also, worth noting was the year-over-year EBITDA comparison in our marine segment wherein the first quarter of 2020 was up as a result of execution related margin gains on several large projects.
“Our concrete segment continued its improved performance in the first quarter, in spite of the challenging weather conditions. Despite the impact of historically cold weather conditions in Texas during February and the related project impacts, our concrete operation delivered revenue growth and more importantly, generated a meaningful year-over-year increase in profitability. We view this as further validation of our Invest, Scale and Grow (“ISG”) program, which continues benefitting our results after its implementation in 2019.
“Our overall bidding opportunities are proceeding at a high level, and we see our intermediate-to-long term prospects as strong as they have ever been. We continue to watch end market drivers, including a possible new Federal infrastructure bill, which would be a catalyst for even greater expansion of our addressable bidding landscape. Given the breadth of our end markets and our unique and highly versatile construction capabilities and expertise, we are very well positioned to capitalize on a wide range of attractive project opportunities as they emerge throughout our operating footprint.
“Additionally, we are in an increasingly strong liquidity position. In the first quarter we generated solid free cash flow, which further enhanced our balance sheet, providing us with the flexibility to continue to execute on projects in backlog and pursue new awards, while at the same time enabling us to execute on our strategic plan, including positioning ourselves for potential accretive acquisition opportunities. We would expect our pending asset sales to contribute to additional improvement in our financial position in the coming quarters.”
Mr. Stauffer concluded, “Overall, with the project opportunities we see on the horizon, our continuously improving execution resulting from our ISG program and our strong financial position, we remain confident in our ability to achieve our goals for the current year and generate growth in profitability and shareholder value as we move toward a post-pandemic economy.”
For earnings history and earnings-related data on Orion Marine Group (ORN) click here.
