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HOUSTON, Oct. 26, 2022 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported net income of $0.2 million ($0.01 diluted earnings per share) for the third quarter ended September 30, 2022. Excluding non-recurring items, adjusted net income was $0.8 million ($0.02 diluted earnings per share).
Third Quarter 2022 Highlights
“We are excited to see bid margins of recent wins increasing in the third quarter due to more disciplined bidding practices established over the past few months,” stated Travis Boone, Orion’s Chief Executive Officer. “These higher margin projects will establish a solid base of work for 2023. We will continue to focus on disciplined bidding, along with strong project delivery, as we pursue profitable growth.”
Consolidated Results for Third Quarter 2022 Compared to Third Quarter 2021
Backlog
Backlog of work under contract as of September 30, 2022 was $548.6 million, which compares with backlog of work under contract as of September 30, 2021 of $572.8 million. The third quarter 2022 ending backlog was composed of $280.2 million in the marine segment, and $268.4 million in the concrete segment. At the end of the third quarter 2022, the Company had approximately $1.8 billion worth of bids outstanding, including successful bids on approximately $39 million of projects, subsequent to the end of the third quarter of 2022, of which approximately $36 million pertains to the marine segment and approximately $3 million to the concrete segment.
“During the third quarter, we converted to backlog $128 million of the $1.2 billion of work on which we bid,” stated Scott Thanisch, Orion’s Chief Financial Officer. “This resulted in a 0.70 times book-to-bill ratio and a win rate of 10.5%. In the marine segment, we bid on $377 million during the third quarter 2022 and were successful on $75 million, representing a win rate of 20.0% and a book-to-bill ratio of 0.99 times. In the concrete segment we bid on $849 million of work and were awarded $53 million, representing a win rate of 6.2% and a book-to-bill ratio of 0.50 times.”
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. 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.
Conference Call Details
Orion Group Holdings will host a conference call to discuss results for the third quarter 2022 at 10:00 a.m. Eastern Time/9:00 a.m. Central Time on Thursday, October 27, 2022. To listen to the call live, dial 800-715-9871 in the US and Canada or 646-307-1963 in the US and ask for the Orion Group Holdings Conference Call. To listen to the call via the Internet, please visit https://edge.media-server.com/mmc/p/a7xmvgsg. Please go to the website 15 minutes early to download and install any necessary audio software. If you are unable to listen live, a replay of the conference call may be accessed for approximately 30 days after the call at Orion Group Holdings' website.
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, 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 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 “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 are not an alternative 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 impairs a meaningful comparison of operating results. The Company believes these adjusted financial measures are a useful adjunct to earnings/loss calculated in accordance with GAAP because management uses adjusted net income/loss available to common stockholders to evaluate 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 impairs 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.
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, 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, the effects of the ongoing COVID-19 pandemic, 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. In light of 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 Annual Report on Form 10-K, filed on March 7, 2022, 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.
| CONTACT: | ||
| Orion Group Holdings Inc. | ||
| Francis Okoniewski, VP Investor Relations | ||
| (346) 616-4138 | ||
| www.oriongroupholdingsinc.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, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Contract revenues | 182,621 | 139,907 | 552,127 | 439,091 | ||||||||||||
| Costs of contract revenues | 169,189 | 133,329 | 511,548 | 404,757 | ||||||||||||
| Gross profit | 13,432 | 6,578 | 40,579 | 34,334 | ||||||||||||
| Selling, general and administrative expenses | 15,380 | 15,733 | 48,783 | 44,078 | ||||||||||||
| Amortization of intangible assets | 309 | 380 | 929 | 1,141 | ||||||||||||
| Gain on disposal of assets, net | (3,388 | ) | (792 | ) | (4,561 | ) | (9,763 | ) | ||||||||
| Operating income (loss) | 1,131 | (8,743 | ) | (4,572 | ) | (1,122 | ) | |||||||||
| Other (expense) income: | ||||||||||||||||
| Other income | 48 | 50 | 147 | 159 | ||||||||||||
| Interest income | 36 | 22 | 71 | 73 | ||||||||||||
| Interest expense | (1,215 | ) | (523 | ) | (2,913 | ) | (4,506 | ) | ||||||||
| Other expense, net | (1,131 | ) | (451 | ) | (2,695 | ) | (4,274 | ) | ||||||||
| Income (loss) before income taxes | — | (9,194 | ) | (7,267 | ) | (5,396 | ) | |||||||||
| Income tax (benefit) expense | (247 | ) | 1,001 | 396 | 341 | |||||||||||
| Net income (loss) | $ | 247 | $ | (10,195 | ) | $ | (7,663 | ) | $ | (5,737 | ) | |||||
| Basic income (loss) per share | $ | 0.01 | $ | (0.33 | ) | $ | (0.25 | ) | $ | (0.19 | ) | |||||
| Diluted income (loss) per share | $ | 0.01 | $ | (0.33 | ) | $ | (0.25 | ) | $ | (0.19 | ) | |||||
| Shares used to compute income (loss) per share: | ||||||||||||||||
| Basic | 31,613,519 | 30,979,207 | 31,180,417 | 30,707,426 | ||||||||||||
| Diluted | 31,613,519 | 30,979,207 | 31,180,417 | 30,707,426 | ||||||||||||
Orion Group Holdings, Inc. and Subsidiaries
Selected Results of Operations
(In Thousands, Except Share and Per Share Information)
(Unaudited)
| Three months ended September 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 54,769 | 72.0 | % | $ | 35,580 | 65.0 | % | |||||||
| Private sector | 21,329 | 28.0 | % | 19,159 | 35.0 | % | |||||||||
| Marine segment total | $ | 76,098 | 100.0 | % | $ | 54,739 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 10,070 | 9.5 | % | $ | 2,301 | 2.7 | % | |||||||
| Private sector | 96,453 | 90.5 | % | 82,867 | 97.3 | % | |||||||||
| Concrete segment total | $ | 106,523 | 100.0 | % | $ | 85,168 | 100.0 | % | |||||||
| Total | $ | 182,621 | $ | 139,907 | |||||||||||
| Operating income (loss) | |||||||||||||||
| Marine segment | $ | 5,197 | 6.8 | % | $ | (4,965 | ) | (9.1 | ) | % | |||||
| Concrete segment | (4,066 | ) | (3.8 | ) | % | (3,778 | ) | (4.4 | ) | % | |||||
| Total | $ | 1,131 | $ | (8,743 | ) | ||||||||||
| Nine months ended September 30, | |||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 164,357 | 67.7 | % | $ | 121,916 | 63.9 | % | |||||||
| Private sector | 78,540 | 32.3 | % | 68,911 | 36.1 | % | |||||||||
| Marine segment total | $ | 242,897 | 100.0 | % | $ | 190,827 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 23,068 | 7.5 | % | $ | 13,580 | 5.5 | % | |||||||
| Private sector | 286,162 | 92.5 | % | 234,684 | 94.5 | % | |||||||||
| Concrete segment total | $ | 309,230 | 100.0 | % | $ | 248,264 | 100.0 | % | |||||||
| Total | $ | 552,127 | $ | 439,091 | |||||||||||
| Operating income (loss) | |||||||||||||||
| Marine segment | $ | 9,553 | 3.9 | % | $ | 6,489 | 3.4 | % | |||||||
| Concrete segment | (14,125 | ) | (4.6 | ) | % | (7,611 | ) | (3.1 | ) | % | |||||
| Total | $ | (4,572 | ) | $ | (1,122 | ) | |||||||||
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, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net income (loss) | $ | 247 | $ | (10,195 | ) | $ | (7,663 | ) | $ | (5,737 | ) | |||||
| One-time charges and the tax effects: | ||||||||||||||||
| ERP implementation | 330 | 1,383 | 1,559 | 2,822 | ||||||||||||
| Professional fees related to management transition | 310 | — | 1,118 | — | ||||||||||||
| Severance | 4 | — | 944 | — | ||||||||||||
| Costs related to debt extinguishment | — | — | — | 2,062 | ||||||||||||
| Net loss (gain) on Tampa property sale | — | 98 | — | (6,669 | ) | |||||||||||
| Tax rate applied to one-time charges (1) | (183 | ) | (341 | ) | (279 | ) | 411 | |||||||||
| Total one-time charges and the tax effects | 461 | 1,140 | 3,342 | (1,374 | ) | |||||||||||
| Federal and state tax valuation allowances | 78 | 689 | 956 | 1,659 | ||||||||||||
| Adjusted net income (loss) | $ | 786 | $ | (8,366 | ) | $ | (3,365 | ) | $ | (5,452 | ) | |||||
| Adjusted EPS | $ | 0.02 | $ | (0.27 | ) | $ | (0.11 | ) | $ | (0.18 | ) | |||||
_________________________
(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, | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net income (loss) | $ | 247 | $ | (10,195 | ) | $ | (7,663 | ) | $ | (5,737 | ) | ||||||
| Income tax expense | (247 | ) | 1,001 | 396 | 341 | ||||||||||||
| Interest expense, net | 1,179 | 501 | 2,842 | 4,433 | |||||||||||||
| Depreciation and amortization | 6,065 | 6,225 | 18,426 | 19,140 | |||||||||||||
| EBITDA (1) | 7,244 | (2,468 | ) | 14,001 | 18,177 | ||||||||||||
| Stock-based compensation | 951 | 526 | 2,115 | 2,154 | |||||||||||||
| ERP implementation | 330 | 1,383 | 1,559 | 2,822 | |||||||||||||
| Professional fees related to management transition | 310 | — | 1,118 | — | |||||||||||||
| Severance | 4 | — | 944 | — | |||||||||||||
| Net loss (gain) on Tampa property sale | — | 98 | — | (6,669 | ) | ||||||||||||
| Adjusted EBITDA(2) | $ | 8,839 | $ | (461 | ) | $ | 19,737 | $ | 16,484 | ||||||||
| Operating income margin | 0.6 | % | (6.2 | ) | % | (0.8 | ) | % | (0.2 | ) | % | ||||||
| Impact of depreciation and amortization | 3.3 | % | 4.4 | % | 3.3 | % | 4.4 | % | |||||||||
| Impact of stock-based compensation | 0.5 | % | 0.4 | % | 0.4 | % | 0.5 | % | |||||||||
| Impact of ERP implementation | 0.2 | % | 1.0 | % | 0.3 | % | 0.6 | % | |||||||||
| Impact of professional fees related to management transition | 0.2 | % | — | % | 0.2 | % | — | % | |||||||||
| Impact of severance | — | % | — | % | 0.2 | % | — | % | |||||||||
| Impact of net loss (gain) on Tampa property sale | — | % | 0.1 | % | — | % | (1.5 | ) | % | ||||||||
| Adjusted EBITDA margin(2) | 4.8 | % | (0.3 | ) | % | 3.6 | % | 3.8 | % | ||||||||
_________________________
(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 stock-based compensation, ERP implementation, professional fees related to management transition and severance. 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, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating income (loss) | 5,197 | (4,965 | ) | (4,066 | ) | (3,778 | ) | |||||||||
| Other income | 48 | 50 | — | — | ||||||||||||
| Depreciation and amortization | 4,192 | 4,232 | 1,873 | 1,993 | ||||||||||||
| EBITDA (1) | 9,437 | (683 | ) | (2,193 | ) | (1,785 | ) | |||||||||
| Stock-based compensation | 924 | 509 | 27 | 17 | ||||||||||||
| ERP implementation | 131 | 571 | 199 | 812 | ||||||||||||
| Professional fees related to management transition | 127 | — | 183 | — | ||||||||||||
| Severance | 4 | — | — | — | ||||||||||||
| Net loss on Tampa property sale | — | 98 | — | — | ||||||||||||
| Adjusted EBITDA(2) | $ | 10,623 | $ | 495 | $ | (1,784 | ) | $ | (956 | ) | ||||||
| Operating income margin | 6.8 | % | (9.0 | ) | % | (3.9 | ) | % | (4.4 | ) | % | |||||
| Impact of other income | 0.1 | % | 0.1 | % | — | % | — | % | ||||||||
| Impact of depreciation and amortization | 5.5 | % | 7.7 | % | 1.8 | % | 2.3 | % | ||||||||
| Impact of stock-based compensation | 1.2 | % | 0.9 | % | — | % | — | % | ||||||||
| Impact of ERP implementation | 0.2 | % | 1.0 | % | 0.2 | % | 1.0 | % | ||||||||
| Impact of net gain on Tampa property sale | — | % | 0.2 | % | — | % | — | % | ||||||||
| Adjusted EBITDA margin (2) | 14.0 | % | 0.9 | % | (1.7 | ) | % | (1.1 | ) | % | ||||||
| Marine | Concrete | |||||||||||||||
| Nine months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating income (loss) | 9,553 | 6,489 | (14,125 | ) | (7,611 | ) | ||||||||||
| Other income | 147 | 159 | — | — | ||||||||||||
| Depreciation and amortization | 12,751 | 12,912 | 5,675 | 6,228 | ||||||||||||
| EBITDA (1) | 22,451 | 19,560 | (8,450 | ) | (1,383 | ) | ||||||||||
| Stock-based compensation | 2,035 | 2,079 | 80 | 75 | ||||||||||||
| ERP implementation | 686 | 1,226 | 873 | 1,596 | ||||||||||||
| Professional fees related to management transition | 492 | — | 626 | — | ||||||||||||
| Severance | 944 | — | — | — | ||||||||||||
| Net gain on Tampa property sale | — | (6,669 | ) | — | — | |||||||||||
| Adjusted EBITDA (2) | $ | 26,608 | $ | 16,196 | $ | (6,871 | ) | $ | 288 | |||||||
| Operating income margin | 4.0 | % | 3.4 | % | (4.5 | ) | % | (3.0 | ) | % | ||||||
| Impact of other income | 0.1 | % | 0.1 | % | — | % | — | % | ||||||||
| Impact of depreciation and amortization | 5.2 | % | 6.8 | % | 1.8 | % | 2.5 | % | ||||||||
| Impact of stock-based compensation | 0.8 | % | 1.1 | % | — | % | — | % | ||||||||
| Impact of ERP implementation | 0.3 | % | 0.6 | % | 0.3 | % | 0.6 | % | ||||||||
| Impact of ISG initiative | 0.2 | % | — | % | 0.2 | % | — | % | ||||||||
| Impact of severance | 0.4 | % | — | % | — | % | — | % | ||||||||
| Impact of net gain on Tampa property sale | — | % | (3.5 | ) | % | — | % | — | % | |||||||
| Adjusted EBITDA margin (2) | 11.0 | % | 8.5 | % | (2.2 | ) | % | 0.1 | % | |||||||
_________________________
(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 stock-based compensation, ERP implementation, professional fees related to management transition and severance. 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, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net income (loss) | $ | 247 | $ | (10,195 | ) | $ | (7,663 | ) | $ | (5,737 | ) | |||||
| Adjustments to remove non-cash and non-operating items | 5,095 | 7,234 | 20,164 | 16,738 | ||||||||||||
| Cash flow from net income (loss) after adjusting for non-cash and non-operating items | 5,342 | (2,961 | ) | 12,501 | 11,001 | |||||||||||
| Change in operating assets and liabilities (working capital) | (7,917 | ) | (4,074 | ) | (3,400 | ) | (6,761 | ) | ||||||||
| Cash flows (used in) provided by operating activities | $ | (2,575 | ) | $ | (7,035 | ) | $ | 9,101 | $ | 4,240 | ||||||
| Cash flows provided by (used in) investing activities | $ | 803 | $ | (5,973 | ) | $ | (6,155 | ) | $ | 14,489 | ||||||
| Cash flows (used in) provided by financing activities | $ | (3,580 | ) | $ | 11,491 | $ | (12,502 | ) | $ | (19,425 | ) | |||||
| Capital expenditures (included in investing activities above) | $ | (2,626 | ) | $ | (6,879 | ) | $ | (10,627 | ) | $ | (11,594 | ) | ||||
Orion Group Holdings, Inc. and Subsidiaries
Condensed Statements of Cash Flows
(In Thousands)
(Unaudited)
| Nine months ended September 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (7,663 | ) | $ | (5,737 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 16,035 | 16,881 | ||||||
| Amortization of ROU operating leases | 3,612 | 3,967 | ||||||
| Amortization of ROU finance leases | 2,391 | 2,259 | ||||||
| Write-off of debt issuance costs upon debt modification | — | 790 | ||||||
| Amortization of deferred debt issuance costs | 290 | 430 | ||||||
| Deferred income taxes | 20 | 20 | ||||||
| Stock-based compensation | 2,115 | 2,154 | ||||||
| Gain on disposal of assets, net | (4,561 | ) | (9,763 | ) | ||||
| Allowance for credit losses | 262 | — | ||||||
| Change in operating assets and liabilities, net of effects of acquisitions: | ||||||||
| Accounts receivable | (21,375 | ) | 10,402 | |||||
| Income tax receivable | (73 | ) | (64 | ) | ||||
| Inventory | (893 | ) | 279 | |||||
| Prepaid expenses and other | 6,239 | 2,006 | ||||||
| Contract assets | (7,845 | ) | 14,601 | |||||
| Accounts payable | 27,339 | (16,841 | ) | |||||
| Accrued liabilities | (2,329 | ) | (5,530 | ) | ||||
| Operating lease liabilities | (3,556 | ) | (3,803 | ) | ||||
| Income tax payable | (84 | ) | (307 | ) | ||||
| Contract liabilities | (823 | ) | (7,504 | ) | ||||
| Net cash provided by operating activities | 9,101 | 4,240 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property and equipment | 4,472 | 25,643 | ||||||
| Purchase of property and equipment | (10,627 | ) | (11,594 | ) | ||||
| Insurance claim proceeds related to property and equipment | — | 440 | ||||||
| Net cash (used in) provided by investing activities | (6,155 | ) | 14,489 | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings on credit | 9,000 | 33,000 | ||||||
| Payments made on borrowings on credit | (18,219 | ) | (49,086 | ) | ||||
| Loan costs from Credit Facility | (664 | ) | — | |||||
| Payments of finance lease liabilities | (2,235 | ) | (2,500 | ) | ||||
| Purchase of vested stock-based awards | (384 | ) | (949 | ) | ||||
| Exercise of stock options | — | 110 | ||||||
| Net cash used in financing activities | (12,502 | ) | (19,425 | ) | ||||
| Net change in cash and cash equivalents | (9,556 | ) | (696 | ) | ||||
| Cash and cash equivalents at beginning of period | 12,293 | 1,589 | ||||||
| Cash and cash equivalents at end of period | $ | 2,737 | $ | 893 | ||||
Orion Group Holdings, Inc. and Subsidiaries
Condensed Balance Sheets
(In Thousands, Except Share and Per Share Information)
| September 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,737 | 12,293 | |||||
| Accounts receivable: | ||||||||
| Trade, net of allowance for credit losses of $546 and $323, respectively | 104,208 | 88,173 | ||||||
| Retainage | 46,884 | 41,379 | ||||||
| Income taxes receivable | 478 | 405 | ||||||
| Other current | 2,912 | 17,585 | ||||||
| Inventory | 2,314 | 1,428 | ||||||
| Contract assets | 36,374 | 28,529 | ||||||
| Prepaid expenses and other | 3,121 | 8,142 | ||||||
| Total current assets | 199,028 | 197,934 | ||||||
| Property and equipment, net of depreciation | 101,774 | 106,654 | ||||||
| Operating lease right-of-use assets, net of amortization | 15,358 | 14,686 | ||||||
| Financing lease right-of-use assets, net of amortization | 16,240 | 14,561 | ||||||
| Inventory, non-current | 5,425 | 5,418 | ||||||
| Intangible assets, net of amortization | 7,627 | 8,556 | ||||||
| Deferred income tax asset | 22 | 41 | ||||||
| Other non-current | 2,682 | 3,900 | ||||||
| Total assets | $ | 348,156 | $ | 351,750 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current debt, net of issuance costs | $ | 29,892 | $ | 39,141 | ||||
| Accounts payable: | ||||||||
| Trade | 74,740 | 48,217 | ||||||
| Retainage | 1,318 | 923 | ||||||
| Accrued liabilities | 23,257 | 38,594 | ||||||
| Income taxes payable | 517 | 601 | ||||||
| Contract liabilities | 26,175 | 26,998 | ||||||
| Current portion of operating lease liabilities | 4,618 | 3,857 | ||||||
| Current portion of financing lease liabilities | 3,821 | 3,406 | ||||||
| Total current liabilities | 164,338 | 161,737 | ||||||
| Long-term debt, net of debt issuance costs | 787 | 259 | ||||||
| Operating lease liabilities | 11,515 | 11,637 | ||||||
| Financing lease liabilities | 11,753 | 10,908 | ||||||
| Other long-term liabilities | 17,427 | 18,942 | ||||||
| Deferred income tax liability | 170 | 169 | ||||||
| Interest rate swap liability | — | — | ||||||
| Total liabilities | 205,990 | 203,652 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock -- $0.01 par value, 10,000,000 authorized, none issued | — | — | ||||||
| Common stock -- $0.01 par value, 50,000,000 authorized, 32,766,116 and 31,712,457 issued; 32,054,885 and 31,001,226 outstanding at September 30, 2022 and December 31, 2021, respectively | 328 | 317 | ||||||
| Treasury stock, 711,231 shares, at cost, as of September 30, 2022 and December 31, 2021, respectively | (6,540 | ) | (6,540 | ) | ||||
| Accumulated other comprehensive loss | — | — | ||||||
| Additional paid-in capital | 187,601 | 185,881 | ||||||
| Retained loss | (39,223 | ) | (31,560 | ) | ||||
| Total stockholders’ equity | 142,166 | 148,098 | ||||||
| Total liabilities and stockholders’ equity | $ | 348,156 | $ | 351,750 | ||||