Awarded
Year-to-date contract wins total over
Announces three point strategic plan to continuously improve financial performance
Highlights for the quarter ended
- Contract revenues increased 20.9% to
$196.2 million from$162.3 million in the fourth quarter last year - Operating loss was
$3.5 million , a substantial improvement from the$8.2 million loss in the prior year period - Net loss was
$4.9 million or$0.15 per diluted share, compared to a net loss of$8.8 million or$0.29 per diluted share in the fourth quarter of 2021 - Adjusted EBITDA was
$3.2 million , a significant improvement from negative$0.8 million in the fourth quarter last year - Backlog at the end of the fourth quarter was
$448.8 million - Subsequent to quarter end, the Company announced contract wins totaling over
$582 million , including a$448 million contract with theUnited States Navy as part of a joint venture
Highlights for the year ended
- Contract revenues increased 24% to
$748.3 million from$601.4 million in the last year - Operating loss was
$8.0 million an improvement from$9.3 million in 2021 - Net loss was
$12.6 million or$0.40 per diluted share, compared to a net loss of$14.6 million or$0.47 per diluted share in 2021 - Adjusted EBITDA was
$22.9 million , a 32% increase from$17.3 million in 2021
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
“Our solid fourth quarter results reflected disciplined bidding practices and improving project management. Contract revenues increased 21% and we reduced our net loss by 44%. We believe these results just scratch the surface of Orion’s potential, and we are confident our business will continue to improve in 2023,” said
“2023 is off to a strong start with
“Following a comprehensive review of our operations, assets and talent, we developed a three point strategic plan, which we believe will unlock Orion’s full potential for long-term, sustainable growth to the benefit of all of our stakeholders.”
Three Point Strategic Plan
1.) Improve the profitability of the concrete business.
- Appointed new leadership for the concrete segment, tapping one of our senior leaders from the Marine business with many years of experience successfully and profitably delivering complex projects.
- Refocus our concrete business in core
Texas markets ofDallas andHouston , robust markets where we have a track record of success and a runway to improve profitability. - Invest in additional experienced project managers, and give our project teams the training and tools to drive efficiency and improved business outcomes.
2.) Strengthen business development to drive growth.
- Build on our successful sales efforts and capitalize on favorable industry dynamics including the
$1.2 trillion infrastructure bill; theU.S. Navy investments in the Pacific; port expansions and maintenance resulting from the Panama Canal Expansion, and strong construction demand in both private and public sectors of the rapidly growingTexas market. - Sharpen our business development focus by pursuing opportunities where our capabilities and expertise differentiate us. Our aim is to win quality projects at improved margins.
- Leverage our experience in the public infrastructure construction market from other parts of our business to assist our concrete segment in penetrating this more predictably funded sector.
- Build and deepen our client relationships to gain actionable insight into their future pursuits by investing in additional business development resources.
3.) Invest in our resources to realize Orion’s full potential.
- Strengthen our balance sheet for future growth. Complete the refinancing of our credit facility to extend our debt maturities and provide us with the capital to take advantage of our market opportunities.
- Optimize our return on assets. The completion of our
Central Texas concrete jobs in 2023 will present opportunities to sell or redeploy underutilized equipment. In addition, we will continue our efforts to monetize non-core real estate assets this year. - Invest in our dredging fleet to better service our growth. Supporting our commitment to the environment, Orion’s fleet upgrades will also include investing in more efficient engines to achieve lower carbon emissions.
- Collaborate between our concrete and marine operations to drive synergies and leverage best practices. Our teams are now working together across divisions and have a shared sense of mission and purpose.
- Continue to enhance and build our “Target Zero” safety culture, practices, and systems.
Boone continued, “Many of these initiatives are well underway and real progress is happening every day. Our people share my enthusiasm, and they are engaged, collaborative and embracing change. There is a whole new excitement in the business. Our leadership team and our board are fully committed to increasing profitability and creating value for all of our stakeholders. I want to thank our shareholders for your support and our many dedicated employees for their efforts as we work together to execute our operational transformation.”
Fourth Quarter 2022 Results
Contract revenues increased 20.9% to
Gross profit was
Selling, general and administrative (“SG&A”) expenses were
Net loss was
The fourth quarter 2022 net loss included
EBITDA was
Backlog
Total backlog at
Recent Contract Wins
Subsequent to the end of the year, Orion announced the award of additional contracts not reflected in
The
Balance Sheet Update
As of
Credit Facility
The Company is in productive discussions to secure a new credit facility, the proceeds of which will be used for general corporate purposes and to retire our existing credit facility which matures on
Asset Sales
The Company’s signed agreement for the sale-leaseback of its
Conference Call Details
About
Backlog Definition
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. The typical duration of the Company’s projects ranges from three to nine months on shorter projects to multiple years on larger projects. The Company's backlog at any point in time includes both revenue it expects to realize during the next twelve-month period as well as revenue it expects to realize in future years.
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, and our ability to negotiate and obtain the refinancing of our credit facility, the terms, restrictions, and covenants of our refinancing, and the timing of such refinancing, are forward-looking statements. Forward looking statements also include project award announcements, estimated project start dates, 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 2021 Annual Report on Form 10-K, filed on
Contacts:
orn@finprofiles.com
Condensed Statements of Operations
(In Thousands, Except Share and Per Share Information)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Contract revenues | 196,195 | 162,269 | 748,322 | 601,360 | ||||||||||||
| Costs of contract revenues | 186,032 | 155,636 | 697,580 | 560,393 | ||||||||||||
| Gross profit | 10,163 | 6,633 | 50,742 | 40,967 | ||||||||||||
| Selling, general and administrative expenses | 13,720 | 16,103 | 62,503 | 60,181 | ||||||||||||
| Amortization of intangible assets | 310 | 380 | 1,239 | 1,521 | ||||||||||||
| Gain on disposal of assets, net | (409 | ) | (1,655 | ) | (4,970 | ) | (11,418 | ) | ||||||||
| Operating loss | (3,458 | ) | (8,195 | ) | (8,030 | ) | (9,317 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Other income | 52 | 40 | 199 | 199 | ||||||||||||
| Interest income | 33 | 63 | 104 | 136 | ||||||||||||
| Interest expense | (1,543 | ) | (570 | ) | (4,456 | ) | (5,076 | ) | ||||||||
| Other expense, net | (1,458 | ) | (467 | ) | (4,153 | ) | (4,741 | ) | ||||||||
| Loss before income taxes | (4,916 | ) | (8,662 | ) | (12,183 | ) | (14,058 | ) | ||||||||
| Income tax expense | 33 | 161 | 429 | 502 | ||||||||||||
| Net loss | $ | (4,949 | ) | $ | (8,823 | ) | $ | (12,612 | ) | $ | (14,560 | ) | ||||
| Basic loss per share | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.40 | ) | $ | (0.47 | ) | ||||
| Diluted loss per share | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.40 | ) | $ | (0.47 | ) | ||||
| Shares used to compute loss per share: | ||||||||||||||||
| Basic | 32,060,822 | 30,930,000 | 31,402,328 | 30,763,527 | ||||||||||||
| Diluted | 32,060,822 | 30,930,000 | 31,402,328 | 30,763,527 | ||||||||||||
Selected Results of Operations
(In Thousands, Except Share and Per Share Information)
(Unaudited)
| Three months ended |
|||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 73,006 | 75.8 | % | $ | 42,720 | 58.5 | % | |||||||
| Private sector | 23,310 | 24.2 | % | 30,368 | 41.5 | % | |||||||||
| Marine segment total | $ | 96,316 | 100.0 | % | $ | 73,088 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 7,216 | 7.2 | % | $ | 1,365 | 1.5 | % | |||||||
| Private sector | 92,663 | 92.8 | % | 87,816 | 98.5 | % | |||||||||
| Concrete segment total | $ | 99,879 | 100.0 | % | $ | 89,181 | 100.0 | % | |||||||
| Total | $ | 196,195 | $ | 162,269 | |||||||||||
| Operating income (loss) | |||||||||||||||
| Marine segment | $ | 234 | 0.2 | % | $ | (729 | ) | (1.0 | ) | % | |||||
| Concrete segment | (3,692 | ) | (3.7 | ) | % | (7,466 | ) | (8.4 | ) | % | |||||
| Total | $ | (3,458 | ) | $ | (8,195 | ) | |||||||||
| Twelve months ended |
|||||||||||||||
| 2022 | 2021 | ||||||||||||||
| Amount | Percent | Amount | Percent | ||||||||||||
| (dollar amounts in thousands) | |||||||||||||||
| Contract revenues | |||||||||||||||
| Marine segment | |||||||||||||||
| Public sector | $ | 237,363 | 70.0 | % | $ | 164,636 | 62.4 | % | |||||||
| Private sector | 101,850 | 30.0 | % | 99,279 | 37.6 | % | |||||||||
| Marine segment total | $ | 339,213 | 100.0 | % | $ | 263,915 | 100.0 | % | |||||||
| Concrete segment | |||||||||||||||
| Public sector | $ | 30,284 | 7.4 | % | $ | 14,945 | 4.4 | % | |||||||
| Private sector | 378,825 | 92.6 | % | 322,500 | 95.6 | % | |||||||||
| Concrete segment total | $ | 409,109 | 100.0 | % | $ | 337,445 | 100.0 | % | |||||||
| Total | $ | 748,322 | $ | 601,360 | |||||||||||
| Operating income (loss) | |||||||||||||||
| Marine segment | $ | 9,787 | 2.9 | % | $ | 5,760 | 2.2 | % | |||||||
| Concrete segment | (17,817 | ) | (4.4 | ) | % | (15,077 | ) | (4.5 | ) | % | |||||
| Total | $ | (8,030 | ) | $ | (9,317 | ) | |||||||||
Reconciliation of Adjusted Net Income (Loss)
(In thousands except per share information)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (4,949 | ) | $ | (8,823 | ) | $ | (12,612 | ) | $ | (14,560 | ) | ||||
| One-time charges and the tax effects: | ||||||||||||||||
| ERP implementation | 308 | 2,103 | 1,867 | 4,925 | ||||||||||||
| Professional fees related to management transition | — | — | 1,118 | — | ||||||||||||
| Severance | 4 | 96 | 948 | 96 | ||||||||||||
| Costs related to debt extinguishment | — | — | — | 2,062 | ||||||||||||
| Net loss (gain) on |
— | 234 | — | (6,435 | ) | |||||||||||
| Tax rate applied to one-time charges (1) | (265 | ) | (560 | ) | (544 | ) | (149 | ) | ||||||||
| Total one-time charges and the tax effects | 47 | 1,873 | 3,389 | 499 | ||||||||||||
| Federal and state tax valuation allowances | 1,158 | 1,635 | 2,114 | 3,294 | ||||||||||||
| Adjusted net loss | $ | (3,744 | ) | $ | (5,315 | ) | $ | (7,109 | ) | $ | (10,767 | ) | ||||
| Adjusted EPS | $ | (0.12 | ) | $ | (0.17 | ) | $ | (0.23 | ) | $ | (0.35 | ) | ||||
(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.
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations
(In Thousands, Except Margin Data)
(Unaudited)
| Three months ended | Year ended | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net loss | $ | (4,949 | ) | $ | (8,823 | ) | $ | (12,612 | ) | $ | (14,560 | ) | |||||
| Income tax expense | 33 | 161 | 429 | 502 | |||||||||||||
| Interest expense, net | 1,510 | 507 | 4,352 | 4,940 | |||||||||||||
| Depreciation and amortization | 5,631 | 6,290 | 24,057 | 25,430 | |||||||||||||
| EBITDA (1) | 2,225 | (1,865 | ) | 16,226 | 16,312 | ||||||||||||
| Stock-based compensation | 639 | 247 | 2,754 | 2,401 | |||||||||||||
| ERP implementation | 308 | 2,103 | 1,867 | 4,925 | |||||||||||||
| Professional fees related to management transition | — | — | 1,118 | — | |||||||||||||
| Severance | 4 | 96 | 948 | 96 | |||||||||||||
| Net loss (gain) on |
— | 234 | — | (6,435 | ) | ||||||||||||
| Adjusted EBITDA(2) | $ | 3,176 | $ | 815 | $ | 22,913 | $ | 17,299 | |||||||||
| Operating income margin | (1.8 | ) | % | (5.1 | ) | % | (0.9 | ) | % | (1.4 | ) | % | |||||
| Impact of depreciation and amortization | 2.9 | % | 3.9 | % | 3.2 | % | 4.2 | % | |||||||||
| Impact of stock-based compensation | 0.3 | % | 0.2 | % | 0.4 | % | 0.4 | % | |||||||||
| Impact of ERP implementation | 0.2 | % | 1.3 | % | 0.2 | % | 0.8 | % | |||||||||
| Impact of professional fees related to management transition | — | % | — | % | 0.1 | % | — | % | |||||||||
| Impact of severance | — | % | 0.1 | % | 0.1 | % | — | % | |||||||||
| Impact of net loss (gain) on |
— | % | 0.1 | % | — | % | (1.1 | ) | % | ||||||||
| Adjusted EBITDA margin(2) | 1.6 | % | 0.5 | % | 3.1 | % | 2.9 | % | |||||||||
(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.
Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment
(In Thousands, Except Margin Data)
(Unaudited)
| Marine | Concrete | |||||||||||||||
| Three months ended | Three months ended | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating income (loss) (1) | 234 | (729 | ) | (3,692 | ) | (7,466 | ) | |||||||||
| Other income | 52 | 40 | — | — | ||||||||||||
| Depreciation and amortization | 3,841 | 4,375 | 1,790 | 1,915 | ||||||||||||
| EBITDA (2) | 4,127 | 3,686 | (1,902 | ) | (5,551 | ) | ||||||||||
| Stock-based compensation | 636 | 227 | 3 | 20 | ||||||||||||
| ERP implementation | 160 | 935 | 148 | 1,168 | ||||||||||||
| Severance | 4 | 80 | — | 16 | ||||||||||||
| Net loss on |
— | 234 | — | — | ||||||||||||
| Adjusted EBITDA(3) | $ | 4,927 | $ | 5,162 | $ | (1,751 | ) | $ | (4,347 | ) | ||||||
| Operating income margin | 0.1 | % | (1.0 | ) | % | (3.7 | ) | % | (8.4 | ) | % | |||||
| Impact of other income | 0.1 | % | 0.1 | % | — | % | — | % | ||||||||
| Impact of depreciation and amortization | 4.0 | % | 6.0 | % | 1.8 | % | 2.2 | % | ||||||||
| Impact of stock-based compensation | 0.7 | % | 0.3 | % | — | % | — | % | ||||||||
| Impact of ERP implementation | 0.2 | % | 1.3 | % | 0.1 | % | 1.3 | % | ||||||||
| Impact of severance | — | % | 0.1 | % | — | % | — | % | ||||||||
| Impact of net loss on |
— | % | 0.3 | % | — | % | — | % | ||||||||
| Adjusted EBITDA margin (3) | 5.1 | % | 7.1 | % | (1.8 | ) | % | (4.9 | ) | % | ||||||
| Marine | Concrete | |||||||||||||||
| Year ended | Year ended | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating income (loss) (1) | 9,787 | 5,760 | (17,817 | ) | (15,077 | ) | ||||||||||
| Other income | 199 | 199 | — | — | ||||||||||||
| Depreciation and amortization | 16,592 | 17,287 | 7,465 | 8,143 | ||||||||||||
| EBITDA (2) | 26,578 | 23,246 | (10,352 | ) | (6,934 | ) | ||||||||||
| Stock-based compensation | 2,671 | 2,306 | 83 | 95 | ||||||||||||
| ERP implementation | 846 | 2,161 | 1,021 | 2,764 | ||||||||||||
| Professional fees related to management transition | 494 | — | 624 | — | ||||||||||||
| Severance | 948 | 80 | — | 16 | ||||||||||||
| Net gain on |
— | (6,435 | ) | — | — | |||||||||||
| Adjusted EBITDA(3) | $ | 31,537 | $ | 21,358 | $ | (8,624 | ) | $ | (4,059 | ) | ||||||
| Operating income margin | 3.0 | % | 2.2 | % | (4.2 | ) | % | (4.5 | ) | % | ||||||
| Impact of other income | — | % | — | % | — | % | — | % | ||||||||
| Impact of depreciation and amortization | 4.9 | % | 6.6 | % | 1.8 | % | 2.4 | % | ||||||||
| Impact of stock-based compensation | 0.8 | % | 0.9 | % | — | % | 0.1 | % | ||||||||
| Impact of ERP implementation | 0.2 | % | 0.8 | % | 0.1 | % | 0.8 | % | ||||||||
| Impact of professional fees related to management transition | 0.1 | % | — | % | 0.2 | % | — | % | ||||||||
| Impact of severance | 0.3 | % | — | % | — | % | — | % | ||||||||
| Impact of net gain on |
— | % | (2.4 | ) | % | — | % | — | % | |||||||
| Adjusted EBITDA margin (3) | 9.3 | % | 8.1 | % | (2.1 | ) | % | (1.2 | ) | % | ||||||
(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.
Condensed Statements of Cash Flows Summarized
(In Thousands)
(Unaudited)
| Three months ended | Year ended | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (4,949 | ) | $ | (8,823 | ) | $ | (12,612 | ) | $ | (14,560 | ) | ||||
| Adjustments to remove non-cash and non-operating items | 7,249 | 5,988 | 27,413 | 22,726 | ||||||||||||
| Cash flow from net income after adjusting for non-cash and non-operating items | 2,300 | (2,835 | ) | 14,801 | 8,166 | |||||||||||
| Change in operating assets and liabilities (working capital) | (1,836 | ) | (1,336 | ) | (5,236 | ) | (8,097 | ) | ||||||||
| Cash flows provided by (used in) operating activities | $ | 464 | $ | (4,171 | ) | $ | 9,565 | $ | 69 | |||||||
| Cash flows (used in) provided by investing activities | $ | (3,549 | ) | $ | (3,860 | ) | $ | (9,704 | ) | $ | 10,629 | |||||
| Cash flows provided by (used in) financing activities | $ | 4,132 | $ | 19,431 | $ | (8,370 | ) | $ | 6 | |||||||
| Capital expenditures (included in investing activities above) | $ | (3,957 | ) | $ | (5,381 | ) | $ | (14,584 | ) | $ | (16,975 | ) | ||||
Condensed Statements of Cash Flows
(In Thousands)
(Unaudited)
| Year ended |
||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (12,612 | ) | $ | (14,560 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 20,915 | 22,608 | ||||||
| Amortization of ROU operating leases | 4,813 | 5,102 | ||||||
| Amortization of ROU finance leases | 3,142 | 2,822 | ||||||
| Write-off of debt issuance costs upon debt modification | — | 790 | ||||||
| Amortization of deferred debt issuance costs | 424 | 430 | ||||||
| Deferred income taxes | 13 | (9 | ) | |||||
| Stock-based compensation | 2,754 | 2,401 | ||||||
| Gain on disposal of assets, net | (4,970 | ) | (11,418 | ) | ||||
| Allowance for credit losses | 322 | — | ||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | (28,660 | ) | 4,703 | |||||
| Income tax receivable | 3 | 14 | ||||||
| Inventory | (1,485 | ) | 371 | |||||
| Prepaid expenses and other | 1,645 | 143 | ||||||
| Contract assets | (15,374 | ) | 3,742 | |||||
| Accounts payable | 39,370 | 589 | ||||||
| Accrued liabilities | (6,630 | ) | (6,544 | ) | ||||
| Operating lease liabilities | (4,748 | ) | (4,940 | ) | ||||
| Income tax payable | (79 | ) | (38 | ) | ||||
| Contract liabilities | 10,722 | (6,137 | ) | |||||
| Net cash provided by operating activities | 9,565 | 69 | ||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property and equipment | 4,880 | 27,164 | ||||||
| Purchase of property and equipment | (14,584 | ) | (16,975 | ) | ||||
| Insurance claim proceeds related to property and equipment | — | 440 | ||||||
| Net cash (used in) provided by investing activities | (9,704 | ) | 10,629 | |||||
| Cash flows from financing activities: | ||||||||
| Borrowings on credit | 24,000 | 53,000 | ||||||
| Payments made on borrowings on credit | (28,274 | ) | (49,120 | ) | ||||
| Loan costs from Credit Facility | (664 | ) | — | |||||
| Payments of finance lease liabilities | (2,992 | ) | (3,035 | ) | ||||
| Payments related to tax withholding for share-based compensation | (440 | ) | (949 | ) | ||||
| Exercise of stock options | — | 110 | ||||||
| Net cash (used in) provided by financing activities | (8,370 | ) | 6 | |||||
| Net change in cash, cash equivalents and restricted cash | (8,509 | ) | 10,704 | |||||
| Cash, cash equivalents and restricted cash at beginning of period | 12,293 | 1,589 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,784 | $ | 12,293 | ||||
Condensed Balance Sheets
(In Thousands, Except Share and Per Share Information)
| 2022 | 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,784 | 12,293 | |||||
| Accounts receivable: | ||||||||
| Trade, net of allowance for credit losses of |
106,758 | 88,173 | ||||||
| Retainage | 50,873 | 41,379 | ||||||
| Income taxes receivable | 402 | 405 | ||||||
| Other current | 3,526 | 17,585 | ||||||
| Inventory | 2,862 | 1,428 | ||||||
| Contract assets | 43,903 | 28,529 | ||||||
| Prepaid expenses and other | 8,229 | 8,142 | ||||||
| Total current assets | 220,337 | 197,934 | ||||||
| Property and equipment, net of depreciation | 100,977 | 106,654 | ||||||
| Operating lease right-of-use assets, net of amortization | 14,978 | 14,686 | ||||||
| Financing lease right-of-use assets, net of amortization | 15,839 | 14,561 | ||||||
| Inventory, non-current | 5,469 | 5,418 | ||||||
| Intangible assets, net of amortization | 7,317 | 8,556 | ||||||
| Deferred income tax asset | 70 | 41 | ||||||
| Other non-current | 2,168 | 3,900 | ||||||
| Total assets | $ | 367,155 | $ | 351,750 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current debt, net of issuance costs | $ | 34,956 | $ | 39,141 | ||||
| Accounts payable: | ||||||||
| Trade | 87,605 | 48,217 | ||||||
| Retainage | 1,198 | 923 | ||||||
| Accrued liabilities | 18,466 | 38,594 | ||||||
| Income taxes payable | 522 | 601 | ||||||
| Contract liabilities | 37,720 | 26,998 | ||||||
| Current portion of operating lease liabilities | 4,738 | 3,857 | ||||||
| Current portion of financing lease liabilities | 4,031 | 3,406 | ||||||
| Total current liabilities | 189,236 | 161,737 | ||||||
| Long-term debt, net of debt issuance costs | 716 | 259 | ||||||
| Operating lease liabilities | 11,018 | 11,637 | ||||||
| Financing lease liabilities | 11,102 | 10,908 | ||||||
| Other long-term liabilities | 17,072 | 18,942 | ||||||
| Deferred income tax liability | 211 | 169 | ||||||
| Total liabilities | 229,355 | 203,652 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock -- |
— | — | ||||||
| Common stock -- |
328 | 317 | ||||||
| (6,540 | ) | (6,540 | ) | |||||
| Additional paid-in capital | 188,184 | 185,881 | ||||||
| Retained loss | (44,172 | ) | (31,560 | ) | ||||
| Total stockholders’ equity | 137,800 | 148,098 | ||||||
| Total liabilities and stockholders’ equity | $ | 367,155 | $ | 351,750 | ||||
