Orion Group Holdings, Inc. Reports Third Quarter 2022 Results

Oct 26, 2022

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

The Company has enhanced the capabilities of its management team with the addition of two experienced and operationally-focused executives, Chief Executive Officer Travis Boone and Chief Financial Officer Scott Thanisch.
Continued efforts focusing on more attractive markets and targeting higher bid margins is yielding improved project margins on new contract awards of $128 million in the quarter.
The Company has signed an agreement for the $10.5 million sale-leaseback of its Port Lavaca property expected to close in December and continues to explore options to monetize additional real estate assets.
Operating income was $1.1 million for the third quarter of 2022 compared to an operating loss of $8.7 million for the third quarter of 2021.
Net income was $0.2 million ($0.01 diluted earnings per share) for the third quarter of 2022 compared to a net loss of $10.2 million ($0.33 diluted loss per share) for the third quarter of 2021.
The third quarter 2022 net income included $0.5 million ($0.01 diluted earnings per share) of non-recurring items. Third quarter 2022 adjusted net income was $0.8 million ($0.02 diluted earnings per share). (Please see page 7 of this release for an explanation of adjusted net income, adjusted earnings per share and a reconciliation to the nearest GAAP measure).

“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

Contract revenues were $182.6 million, an increase of $42.7 million or 30.5% as compared to $139.9 million. The increase was primarily driven by the start of large jobs awarded in the fourth quarter of 2021 in the marine segment, higher volume in the concrete segment and the impact from claims and unapproved change orders recognized related to work primarily incurred in previous periods.
Gross profit was $13.4 million, as compared to $6.6 million. Gross profit margin was 7.4%, as compared to 4.7%. The increase in gross profit dollars and margin was primarily driven by the impact from claims and unapproved change orders recognized related to work primarily incurred in previous periods, the release of discretionary project bonuses and increased dredging activity as compared to the prior year period.
Selling, General, and Administrative (“SG&A”) expenses were $15.4 million, as compared to $15.7 million. As a percentage of total contract revenues, SG&A expenses decreased from 11.2% to 8.5%, primarily due to higher revenues in the current period. The decrease in SG&A dollars was driven primarily by a decrease in Enterprise Resource Planning implementation expense as compared to the prior year period, partially offset by consulting fees related to the management transition.
EBITDA was $7.2 million, representing a 4.0% EBITDA margin, as compared to EBITDA of $(2.5) million, or an (1.8)% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the third quarter of 2022 was $8.8 million, representing a 4.8% adjusted EBITDA margin, as compared to adjusted EBITDA for the third quarter of 2021 of $(0.5) million, representing a (0.3)% 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).

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		%

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

Source: Orion Group Holdings, Inc.

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