Fourth Quarter 2020 Highlights
-
Operating income was
$5.1 million for the fourth quarter of 2020 compared to operating income of$2.7 million for the fourth quarter of 2019. -
Net income was
$3.7 million ($0.12 diluted earnings per share) for the fourth quarter of 2020 compared to net income of$0.2 million ($0.01 diluted earnings per share) for the fourth quarter of 2019. -
The fourth quarter 2020 net income included
$0.6 million ($0.02 earnings per diluted share) of non-recurring items and$0.7 million ($0.02 earnings per diluted share) of tax benefit associated with the movement of certain valuation allowances. Fourth quarter 2020 adjusted net income was$3.5 million ($0.12 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
$12.6 million in the fourth quarter of 2020, which compares to adjusted EBITDA of$11.5 million for the fourth quarter of 2019. (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 fourth quarter was
$439.5 million on a fourth quarter book-to-bill of 1.06x.
“We delivered strong growth in profitability and cash flow for the full year 2020,” stated
“Fourth quarter results were in-line with our expectations. Gross profit improved year over year in both dollars and margin, with gross profit margin improving by 320 basis points. The improvement was driven by production efficiency gains at the project level in both segments. Consolidated adjusted EBITDA for the fourth quarter also increased by 9.2% year over year. Our team’s focus remains on continued performance efficiency despite any macroeconomic challenges. We view our ability to generate improved profitability in a difficult market as a testament to Orion’s processes, procedures, and focus on bottom line results. We believe that this profitability improvement will be sustainable and scalable moving forward as bidding opportunities begin to normalize.”
“While bidding opportunities have been affected in some of our end markets, we still see bidding activity in both of our segments, largely driven by end markets that are continuing operations through the COVID-19 pandemic. As we have said previously, our efforts are focused on targeting the end markets in which we expect to have the best opportunities and on projects that we expect to be the most profitable projects. One of the key strengths of our Company is the wide array of potential users of our broad range of services, enabling us to pursue the most attractive bid opportunities in the end markets that are providing opportunities at any given point in time. This strategy has served us well and we believe it will continue to do so.”
“We continue to be confident in our ability to profitably execute our projects in backlog, and in our ability to maintain and grow our backlog level by targeting and winning new bid opportunities. We believe chances for a new infrastructure bill have improved, and if enacted, will be a further catalyst for continued strength in our end-market opportunities. We continue to focus on our liquidity position, which remains strong and provides us with more than sufficient financial flexibility to continue to pursue new awards and execute on existing projects in backlog. Our diverse end markets, broad range of construction capabilities and assets, and our highly experienced and professional personnel make us confident in our ability to deliver increasing levels of profitability and free cash flow, particularly in a post-pandemic environment.”
Consolidated Results for Fourth Quarter 2020 Compared to Fourth Quarter 2019
-
Contract revenues were
$170.2 million , down 14.8% as compared to$199.8 million . The decrease was primarily driven by the timing of projects for the marine and concrete segments. -
Gross profit was
$21.7 million , as compared to$19.1 million . Gross profit margin was 12.8%, as compared to 9.6%. The increase in gross profit dollars and percentage was primarily driven by production efficiency gains in both segments. -
Selling, General, and Administrative expenses were
$17.4 million , as compared to$16.3 million . As a percentage of total contract revenues, SG&A expenses increased to 10.2% from 8.2%. The increase in SG&A dollars was primarily attributable to the increased accrual of the annual incentive compensation plan during the current year period as compared to the prior year period. -
Operating income was
$5.1 million as compared to$2.7 million . The operating income in the fourth quarter of 2020 reflects the aforementioned factors that improved gross profit. -
EBITDA was
$11.7 million , representing a 6.9% EBITDA margin, as compared to EBITDA of$10.0 million , or a 5.0% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the fourth quarter of 2020 was$12.6 million , representing a 7.4% EBITDA margin. (Please see page 10 of this release for an explanation of EBITDA, Adjusted EBITDA and a reconciliation to the nearest GAAP measure).
Backlog
Backlog of work under contract as of
“During the fourth quarter, we bid on approximately
Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress and 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
About
Non-GAAP Financial Measures
This press release includes the financial measures “adjusted net income,” “adjusted earnings per share,” “EBITDA,” "Adjusted EBITDA" and “Adjusted EBITDA margin." These measurements are “non-GAAP financial measures” under rules of the
Adjusted net income and adjusted earnings per share are not an alternative to net income or earnings per share. Adjusted net income and adjusted earnings 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 calculated in accordance with GAAP because management uses adjusted net income 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.
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, 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.
Please refer to the Company's Annual Report on Form 10-K, filed on
|
||||||||||||||||
Condensed Statements of Operations |
||||||||||||||||
(In Thousands, Except Share and Per Share Information) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Contract revenues |
|
|
170,176 |
|
|
|
199,793 |
|
|
|
709,942 |
|
|
|
708,390 |
|
Costs of contract revenues |
|
|
148,476 |
|
|
|
180,704 |
|
|
|
625,239 |
|
|
|
644,349 |
|
Gross profit |
|
|
21,700 |
|
|
|
19,089 |
|
|
|
84,703 |
|
|
|
64,041 |
|
Selling, general and administrative expenses |
|
|
17,440 |
|
|
|
16,335 |
|
|
|
65,091 |
|
|
|
61,012 |
|
Amortization of intangible assets |
|
|
518 |
|
|
|
660 |
|
|
|
2,070 |
|
|
|
2,640 |
|
Gain on disposal of assets, net |
|
|
(1,310 |
) |
|
|
(607 |
) |
|
|
(9,044 |
) |
|
|
(1,804 |
) |
Operating income |
|
|
5,052 |
|
|
|
2,701 |
|
|
|
26,586 |
|
|
|
2,193 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income |
|
|
96 |
|
|
|
197 |
|
|
|
347 |
|
|
|
771 |
|
Interest income |
|
|
32 |
|
|
|
36 |
|
|
|
183 |
|
|
|
353 |
|
Interest expense |
|
|
(1,198 |
) |
|
|
(1,827 |
) |
|
|
(4,920 |
) |
|
|
(6,808 |
) |
Other expense, net |
|
|
(1,070 |
) |
|
|
(1,594 |
) |
|
|
(4,390 |
) |
|
|
(5,684 |
) |
Income (loss) before income taxes |
|
|
3,982 |
|
|
|
1,107 |
|
|
|
22,196 |
|
|
|
(3,491 |
) |
Income tax expense |
|
|
316 |
|
|
|
948 |
|
|
|
1,976 |
|
|
|
1,868 |
|
Net income (loss) |
|
$ |
3,666 |
|
|
$ |
159 |
|
|
$ |
20,220 |
|
|
$ |
(5,359 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings (loss) per share |
|
$ |
0.12 |
|
|
$ |
0.01 |
|
|
$ |
0.67 |
|
|
$ |
(0.18 |
) |
Diluted earnings (loss) per share |
|
$ |
0.12 |
|
|
$ |
0.01 |
|
|
$ |
0.67 |
|
|
$ |
(0.18 |
) |
Shares used to compute income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
30,426,454 |
|
|
|
29,562,635 |
|
|
|
30,122,362 |
|
|
|
29,322,054 |
|
Diluted |
|
|
30,427,940 |
|
|
|
29,574,145 |
|
|
|
30,122,362 |
|
|
|
29,322,054 |
|
|
||||||||||||
Selected Results of Operations |
||||||||||||
(In Thousands, Except Share and Per Share Information) |
||||||||||||
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|||||||||
|
|
2020 |
|
2019 |
|
|||||||
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
|||
|
|
(dollar amounts in thousands) |
|
|||||||||
Contract revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
58,669 |
|
60.1 |
% |
$ |
77,349 |
|
69.5 |
% |
|
Private sector |
|
|
38,955 |
|
39.9 |
% |
|
33,875 |
|
30.5 |
% |
|
Marine segment total |
|
$ |
97,624 |
|
100.0 |
% |
$ |
111,224 |
|
100.0 |
% |
|
Concrete segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
4,995 |
|
6.9 |
% |
$ |
8,624 |
|
9.7 |
% |
|
Private sector |
|
|
67,557 |
|
93.1 |
% |
|
79,945 |
|
90.3 |
% |
|
Concrete segment total |
|
$ |
72,552 |
|
100.0 |
% |
$ |
88,569 |
|
100.0 |
% |
|
Total |
|
$ |
170,176 |
|
|
|
$ |
199,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
4,492 |
|
4.6 |
% |
$ |
2,641 |
|
2.4 |
% |
|
Concrete segment |
|
|
560 |
|
0.8 |
% |
|
60 |
|
0.1 |
% |
|
Total |
|
$ |
5,052 |
|
|
|
$ |
2,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended |
|
|||||||||
|
|
2020 |
|
2019 |
|
|||||||
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
|||
|
|
(dollar amounts in thousands) |
|
|||||||||
Contract revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
240,353 |
|
61.9 |
% |
$ |
258,039 |
|
69.9 |
% |
|
Private sector |
|
|
147,820 |
|
38.1 |
% |
|
111,099 |
|
30.1 |
% |
|
Marine segment total |
|
$ |
388,173 |
|
100.0 |
% |
$ |
369,138 |
|
100.0 |
% |
|
Concrete segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
41,853 |
|
13.0 |
% |
$ |
49,175 |
|
14.5 |
% |
|
Private sector |
|
|
279,916 |
|
87.0 |
% |
|
290,077 |
|
85.5 |
% |
|
Concrete segment total |
|
$ |
321,769 |
|
100.0 |
% |
$ |
339,252 |
|
100.0 |
% |
|
Total |
|
$ |
709,942 |
|
|
|
$ |
708,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
16,935 |
|
4.4 |
% |
$ |
1,057 |
|
0.3 |
% |
|
Concrete segment |
|
|
9,651 |
|
3.0 |
% |
|
1,136 |
|
0.3 |
% |
|
Total |
|
$ |
26,586 |
|
|
|
$ |
2,193 |
|
|
|
|
||||||||||||||||
Reconciliation of Adjusted Net Income (Loss) |
||||||||||||||||
(In thousands except per share information) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net income (loss) |
|
$ |
3,666 |
|
|
$ |
159 |
|
|
$ |
20,220 |
|
|
$ |
(5,359 |
) |
One-time charges and the tax effects: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
ERP implementation |
|
|
692 |
|
|
|
— |
|
|
|
1,488 |
|
|
|
— |
|
ISG initiative |
|
|
— |
|
|
|
919 |
|
|
|
369 |
|
|
|
4,781 |
|
Severance |
|
|
55 |
|
|
|
162 |
|
|
|
175 |
|
|
|
645 |
|
Unamortized debt issuance costs on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
399 |
|
Insurance recovery on disposal, net |
|
|
— |
|
|
|
— |
|
|
|
(2,859 |
) |
|
|
— |
|
Recovery on disputed receivable |
|
|
— |
|
|
|
— |
|
|
|
(898 |
) |
|
|
— |
|
Tax rate of 23% applied to one-time charges (1) |
|
|
(172 |
) |
|
|
(250 |
) |
|
|
397 |
|
|
|
(1,340 |
) |
Total one-time charges and the tax effects |
|
|
575 |
|
|
|
831 |
|
|
|
(1,328 |
) |
|
|
4,485 |
|
Federal and state tax valuation allowances |
|
|
(722 |
) |
|
|
465 |
|
|
|
(4,584 |
) |
|
|
916 |
|
Adjusted net income |
|
$ |
3,519 |
|
|
$ |
1,455 |
|
|
$ |
14,308 |
|
|
$ |
42 |
|
Adjusted EPS |
|
$ |
0.12 |
|
|
$ |
0.05 |
|
|
$ |
0.47 |
|
|
$ |
— |
|
_______________ | ||
(1) |
Items are taxed discretely using the Company's blended tax rate. |
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations |
||||||||||||||||
(In Thousands, Except Margin Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended |
Year ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2020 |
2019 |
2020 |
2019 |
|||||||||||
Net income (loss) |
|
$ |
3,666 |
|
$ |
159 |
|
$ |
20,220 |
|
$ |
(5,359 |
) |
|||
Income tax expense |
|
|
316 |
|
|
948 |
|
|
1,976 |
|
|
1,868 |
|
|||
Interest expense, net |
|
|
1,166 |
|
|
1,791 |
|
|
4,737 |
|
|
6,455 |
|
|||
Depreciation and amortization |
|
|
6,555 |
|
|
7,065 |
|
|
27,217 |
|
|
28,407 |
|
|||
EBITDA (1) |
|
|
11,703 |
|
|
9,963 |
|
|
54,150 |
|
|
31,371 |
|
|||
Stock-based compensation |
|
|
111 |
|
|
461 |
|
|
1,998 |
|
|
2,753 |
|
|||
ERP implementation |
|
|
692 |
|
|
— |
|
|
1,488 |
|
|
— |
|
|||
ISG initiative |
|
|
— |
|
|
919 |
|
|
369 |
|
|
4,781 |
|
|||
Severance |
|
|
55 |
|
|
162 |
|
|
175 |
|
|
645 |
|
|||
Insurance recovery on disposal, net |
|
|
— |
|
|
— |
|
|
(2,859 |
) |
|
— |
|
|||
Recovery on disputed receivable |
|
|
— |
|
|
— |
|
|
(898 |
) |
|
— |
|
|||
Adjusted EBITDA(2) |
|
$ |
12,561 |
|
$ |
11,505 |
|
$ |
54,423 |
|
$ |
39,550 |
|
|||
Operating income margin (3) |
|
|
3.0 |
% |
|
1.5 |
% |
|
3.8 |
% |
|
0.4 |
% |
|||
Impact of depreciation and amortization |
|
|
3.9 |
% |
|
3.5 |
% |
|
3.8 |
% |
|
4.0 |
% |
|||
Impact of stock-based compensation |
|
|
0.1 |
% |
|
0.2 |
% |
|
0.3 |
% |
|
0.4 |
% |
|||
Impact of ERP implementation |
|
|
0.4 |
% |
|
— |
% |
|
0.2 |
% |
|
— |
% |
|||
Impact of ISG initiative |
|
|
— |
% |
|
0.5 |
% |
|
0.1 |
% |
|
0.7 |
% |
|||
Impact of severance |
|
|
— |
% |
|
0.1 |
% |
|
— |
% |
|
0.1 |
% |
|||
Impact of insurance recovery on disposal, net |
|
|
— |
% |
|
— |
% |
|
(0.4 |
)% |
|
— |
% |
|||
Impact of recovery on disputed receivable |
|
|
— |
% |
|
— |
% |
|
(0.1 |
)% |
|
— |
% |
|||
Adjusted EBITDA margin(2) |
|
|
7.4 |
% |
|
5.8 |
% |
|
7.7 |
% |
|
5.6 |
% |
_______________ | ||
(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, the ISG initiative, severance, insurance recovery on disposal, net, and recovery on disputed accounts receivable. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues. |
|
(3) |
Operating income margin is calculated by dividing operating income plus other income (expense), net by contract revenues. |
|
||||||||||||||||
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment |
||||||||||||||||
(In Thousands, Except Margin Data) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Marine |
Concrete |
|||||||||||||
|
|
Three months ended |
Three months ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2020 |
2019 |
2020 |
2019 |
|||||||||||
Operating income |
|
|
4,492 |
|
|
2,641 |
|
|
560 |
|
|
60 |
|
|||
Other income (expense), net (1) |
|
|
3,836 |
|
|
3,214 |
|
|
(3,739 |
) |
|
(3,018 |
) |
|||
Depreciation and amortization |
|
|
4,306 |
|
|
4,914 |
|
|
2,248 |
|
|
2,152 |
|
|||
EBITDA (2) |
|
|
12,634 |
|
|
10,769 |
|
|
(931 |
) |
|
(806 |
) |
|||
Stock-based compensation |
|
|
74 |
|
|
406 |
|
|
37 |
|
|
55 |
|
|||
ERP implementation |
|
|
378 |
|
|
— |
|
|
314 |
|
|
— |
|
|||
ISG initiative |
|
|
— |
|
|
781 |
|
|
— |
|
|
138 |
|
|||
Severance |
|
|
55 |
|
|
126 |
|
|
— |
|
|
36 |
|
|||
Adjusted EBITDA(3) |
|
$ |
13,141 |
|
$ |
12,082 |
|
$ |
(580 |
) |
$ |
(577 |
) |
|||
Operating income margin (4) |
|
|
8.5 |
% |
|
5.3 |
% |
|
(4.3 |
)% |
|
(3.3 |
)% |
|||
Impact of depreciation and amortization |
|
|
4.4 |
% |
|
4.4 |
% |
|
3.1 |
% |
|
2.4 |
% |
|||
Impact of stock-based compensation |
|
|
0.1 |
% |
|
0.4 |
% |
|
— |
% |
|
— |
% |
|||
Impact of ERP implementation |
|
|
0.4 |
% |
|
— |
% |
|
0.4 |
% |
|
— |
% |
|||
Impact of ISG initiative |
|
|
— |
% |
|
0.7 |
% |
|
— |
% |
|
0.2 |
% |
|||
Impact of severance |
|
|
0.1 |
% |
|
0.1 |
% |
|
— |
% |
|
— |
% |
|||
Adjusted EBITDA margin (3) |
|
|
13.5 |
% |
|
10.9 |
% |
|
(0.8 |
)% |
|
(0.7 |
)% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Marine |
Concrete |
|||||||||||||
|
|
Year ended |
Year ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2020 |
2019 |
2020 |
2019 |
|||||||||||
Operating income |
|
|
16,935 |
|
|
1,057 |
|
|
9,651 |
|
|
1,136 |
|
|||
Other income (expense), net (1) |
|
|
13,225 |
|
|
11,976 |
|
|
(12,877 |
) |
|
(11,206 |
) |
|||
Depreciation and amortization |
|
|
18,369 |
|
|
19,889 |
|
|
8,847 |
|
|
8,519 |
|
|||
EBITDA (2) |
|
|
48,529 |
|
|
32,922 |
|
|
5,621 |
|
|
(1,551 |
) |
|||
Stock-based compensation |
|
|
1,841 |
|
|
2,470 |
|
|
157 |
|
|
283 |
|
|||
ERP implementation |
|
|
795 |
|
|
— |
|
|
693 |
|
|
— |
|
|||
ISG initiative |
|
|
190 |
|
|
2,491 |
|
|
179 |
|
|
2,290 |
|
|||
Severance |
|
|
81 |
|
|
609 |
|
|
94 |
|
|
36 |
|
|||
Insurance recovery on disposal, net |
|
|
(2,859 |
) |
|
— |
|
|
— |
|
|
— |
|
|||
Recovery on disputed receivable |
|
|
(898 |
) |
|
— |
|
|
— |
|
|
— |
|
|||
Adjusted EBITDA(3) |
|
$ |
47,679 |
|
$ |
38,492 |
|
$ |
6,744 |
|
$ |
1,058 |
|
|||
Operating income margin (4) |
|
|
7.8 |
% |
|
3.5 |
% |
|
(0.9 |
)% |
|
(3.0 |
)% |
|||
Impact of depreciation and amortization |
|
|
4.7 |
% |
|
5.4 |
% |
|
2.7 |
% |
|
2.5 |
% |
|||
Impact of stock-based compensation |
|
|
0.5 |
% |
|
0.6 |
% |
|
— |
% |
|
0.1 |
% |
|||
Impact of ERP implementation |
|
|
0.2 |
% |
|
— |
% |
|
0.2 |
% |
|
— |
% |
|||
Impact of ISG initiative |
|
|
— |
% |
|
0.7 |
% |
|
0.1 |
% |
|
0.7 |
% |
|||
Impact of severance |
|
|
— |
% |
|
0.2 |
% |
|
— |
% |
|
— |
% |
|||
Impact of insurance recovery on disposal, net |
|
|
(0.7 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
|||
Impact of recovery on disputed receivable |
|
|
(0.2 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
|||
Adjusted EBITDA margin (3) |
|
|
12.3 |
% |
|
10.4 |
% |
|
2.1 |
% |
|
0.3 |
% |
_______________ | ||
(1) |
Primarily consists of corporate overhead costs recorded to the marine segment as part of operating income(loss) and allocated from the marine segment to the concrete segment in other income (expense) line. Allocated amounts net to zero on a consolidated basis. |
|
(2) |
EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization. |
|
(3) |
Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for stock-based compensation, ERP implementation, the ISG initiative, severance, insurance recovery on disposal, net, and recovery on disputed accounts receivable. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues. |
|
(4) |
Operating income margin is calculated by dividing operating income plus other income (expense), net by contract revenues. |
|
||||||||||||||||
Condensed Statements of Cash Flows Summary |
||||||||||||||||
(In Thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Net income (loss) |
|
$ |
3,666 |
|
|
$ |
159 |
|
|
$ |
20,220 |
|
|
$ |
(5,359 |
) |
Adjustments to remove non-cash and non-operating items |
|
|
7,005 |
|
|
|
8,120 |
|
|
|
26,338 |
|
|
|
35,457 |
|
Cash flow from net income after adjusting for non-cash and non-operating items |
|
|
10,671 |
|
|
|
8,279 |
|
|
|
46,558 |
|
|
|
30,098 |
|
Change in operating assets and liabilities (working capital) |
|
|
(3,015 |
) |
|
|
(7,098 |
) |
|
|
(526 |
) |
|
|
(30,814 |
) |
Cash flows provided by (used in) operating activities |
|
$ |
7,656 |
|
|
$ |
1,181 |
|
|
$ |
46,032 |
|
|
$ |
(716 |
) |
Cash flows used in investing activities |
|
$ |
(932 |
) |
|
$ |
(3,683 |
) |
|
$ |
(3,129 |
) |
|
$ |
(13,331 |
) |
Cash flows (used in) provided by financing activities |
|
$ |
(7,867 |
) |
|
$ |
2,238 |
|
|
$ |
(42,400 |
) |
|
$ |
6,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures (included in investing activities above) |
|
$ |
(5,250 |
) |
|
$ |
(4,164 |
) |
|
$ |
(14,694 |
) |
|
$ |
(17,199 |
) |
|
||||||||
Condensed Statements of Cash Flows |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Year ended |
||||||
|
|
2020 |
|
2019 |
||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
20,220 |
|
|
$ |
(5,359 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
23,893 |
|
|
|
26,096 |
|
Amortization of ROU operating leases |
|
|
5,874 |
|
|
|
5,177 |
|
Amortization of ROU finance leases |
|
|
3,324 |
|
|
|
2,312 |
|
Write-off of debt issuance costs upon debt modification |
|
|
— |
|
|
|
399 |
|
Amortization of deferred debt issuance costs |
|
|
763 |
|
|
|
453 |
|
Deferred income taxes |
|
|
17 |
|
|
|
71 |
|
Stock-based compensation |
|
|
1,998 |
|
|
|
2,753 |
|
Gain on disposal of assets, net |
|
|
(6,185 |
) |
|
|
(1,804 |
) |
Gain on involuntary disposition of assets, net |
|
|
(2,859 |
) |
|
|
— |
|
Allowance for credit losses |
|
|
(487 |
) |
|
|
— |
|
Change in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
23,587 |
|
|
|
(51,709 |
) |
Income tax receivable |
|
|
543 |
|
|
|
(495 |
) |
Inventory |
|
|
148 |
|
|
|
503 |
|
Prepaid expenses and other |
|
|
(1,070 |
) |
|
|
131 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
9,118 |
|
|
|
(32,172 |
) |
Accounts payable |
|
|
(22,015 |
) |
|
|
28,894 |
|
Accrued liabilities |
|
|
11,092 |
|
|
|
1,334 |
|
Operating lease liabilities |
|
|
(5,399 |
) |
|
|
(5,843 |
) |
Income tax payable |
|
|
(884 |
) |
|
|
1,523 |
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
|
(15,646 |
) |
|
|
27,020 |
|
Net cash provided by (used in) operating activities |
|
|
46,032 |
|
|
|
(716 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Proceeds from sale of property and equipment |
|
|
5,944 |
|
|
|
2,015 |
|
Purchase of property and equipment |
|
|
(14,694 |
) |
|
|
(17,199 |
) |
Contributions to CSV life insurance |
|
|
(99 |
) |
|
|
(721 |
) |
Insurance claim proceeds related to property and equipment |
|
|
5,720 |
|
|
|
2,574 |
|
Net cash used in investing activities |
|
|
(3,129 |
) |
|
|
(13,331 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings from Credit Facility |
|
|
10,000 |
|
|
|
63,000 |
|
Payments made on borrowings from Credit Facility |
|
|
(48,204 |
) |
|
|
(70,210 |
) |
Loan costs from Credit Facility |
|
|
(389 |
) |
|
|
(1,680 |
) |
Payments of finance lease liabilities |
|
|
(3,619 |
) |
|
|
(2,906 |
) |
Purchase of vested stock-based awards |
|
|
(188 |
) |
|
|
— |
|
Exercise of stock options |
|
|
— |
|
|
|
35 |
|
Net cash (used in) provided by financing activities |
|
|
(42,400 |
) |
|
|
6,449 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
503 |
|
|
|
(7,598 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
1,086 |
|
|
|
8,684 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,589 |
|
|
$ |
1,086 |
|
|
||||||||
Condensed Balance Sheets |
||||||||
(In Thousands, Except Share and Per Share Information) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
2020 |
|
2019 |
||||
|
|
(Unaudited) |
|
|
|
|||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,589 |
|
|
|
128 |
|
Restricted cash |
|
|
— |
|
|
|
958 |
|
Accounts receivable: |
|
|
|
|
|
|
||
Trade, net of allowance for credit losses of |
|
|
96,369 |
|
|
|
116,540 |
|
Retainage |
|
|
36,485 |
|
|
|
42,547 |
|
Income taxes receivable |
|
|
419 |
|
|
|
962 |
|
Other current |
|
|
59,492 |
|
|
|
2,680 |
|
Inventory |
|
|
1,548 |
|
|
|
1,114 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
32,271 |
|
|
|
41,389 |
|
Prepaid expenses and other |
|
|
7,229 |
|
|
|
5,647 |
|
Total current assets |
|
|
235,402 |
|
|
|
211,965 |
|
Property and equipment, net of depreciation |
|
|
125,497 |
|
|
|
132,348 |
|
Operating lease right-of-use assets, net of amortization |
|
|
18,874 |
|
|
|
17,997 |
|
Financing lease right-of-use assets, net of amortization |
|
|
12,858 |
|
|
|
7,896 |
|
Inventory, non-current |
|
|
6,455 |
|
|
|
7,037 |
|
Intangible assets, net of amortization |
|
|
10,077 |
|
|
|
12,147 |
|
Deferred income tax asset |
|
|
70 |
|
|
|
85 |
|
Other non-current |
|
|
4,956 |
|
|
|
5,369 |
|
Total assets |
|
$ |
414,189 |
|
|
$ |
394,844 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current debt, net of issuance costs |
|
$ |
4,344 |
|
|
$ |
3,668 |
|
Accounts payable: |
|
|
|
|
|
|
||
Trade |
|
|
48,252 |
|
|
|
70,421 |
|
Retainage |
|
|
716 |
|
|
|
562 |
|
Accrued liabilities |
|
|
84,637 |
|
|
|
16,966 |
|
Income taxes payable |
|
|
639 |
|
|
|
1,523 |
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
|
33,135 |
|
|
|
48,781 |
|
Current portion of operating lease liabilities |
|
|
4,989 |
|
|
|
5,043 |
|
Current portion of financing lease liabilities |
|
|
3,901 |
|
|
|
2,788 |
|
Total current liabilities |
|
|
180,613 |
|
|
|
149,752 |
|
Long-term debt, net of debt issuance costs |
|
|
29,523 |
|
|
|
68,029 |
|
Operating lease liabilities |
|
|
14,537 |
|
|
|
13,596 |
|
Financing lease liabilities |
|
|
8,376 |
|
|
|
3,760 |
|
Other long-term liabilities |
|
|
19,837 |
|
|
|
20,436 |
|
Deferred income tax liability |
|
|
207 |
|
|
|
205 |
|
Interest rate swap liability |
|
|
1,602 |
|
|
|
1,045 |
|
Total liabilities |
|
|
254,695 |
|
|
|
256,823 |
|
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock -- |
|
|
— |
|
|
|
— |
|
Common stock -- |
|
|
312 |
|
|
|
303 |
|
|
|
|
(6,540 |
) |
|
|
(6,540 |
) |
Accumulated other comprehensive loss |
|
|
(1,602 |
) |
|
|
(1,045 |
) |
Additional paid-in capital |
|
|
184,324 |
|
|
|
182,523 |
|
Retained loss |
|
|
(17,000 |
) |
|
|
(37,220 |
) |
Total stockholders’ equity |
|
|
159,494 |
|
|
|
138,021 |
|
Total liabilities and stockholders’ equity |
|
$ |
414,189 |
|
|
$ |
394,844 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224006110/en/
(346) 616-4138
www.oriongroupholdingsinc.com
-OR-
INVESTOR RELATIONS COUNSEL:
Source: