Fourth Quarter 2019 Highlights
-
Contract revenues were
$199.8 million , up 101.4% from$99.2 million for the fourth quarter of 2018. Operating income was$2.7 million for the fourth quarter of 2019 compared to operating loss of$104.8 million for the fourth quarter of 2018. -
Net income was
$0.2 million ($0.01 diluted earnings per share) for the fourth quarter of 2019 compared to net loss of$94.4 million ($3.32 diluted loss per share) for the fourth quarter of 2018. -
The fourth quarter 2019 net income included
$1.3 million ($0.04 per diluted share) of non-recurring costs and other charges. Fourth quarter 2019 adjusted net income was$1.5 million ($0.05 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 costs, was
$11.0 million in the fourth quarter of 2019, which compares to adjusted EBITDA of$2.5 million for the fourth quarter of 2018. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure.) -
Backlog was
$572.3 million on a fourth quarter book-to-bill of 0.71x.
“Our fourth quarter was a solid finish to a year of significant progress for Orion,” stated
“With respect to our segment performance, our concrete business generated significant year-over-year improvement facilitated by increased productivity as measured by greater cubic yard production and improved man hours per cubic yard. Even with the impact of customer scheduling delays, marine revenues and operating profit were up sharply in the fourth quarter of 2019, driven by execution on large construction projects in backlog. Also contributing to marine’s year-over-year growth was increased dredging work, which led to higher fleet utilization and increased absorption of fixed costs.”
“Our year-end backlog was up by 30% relative to the end of last year, reflecting our favorable end market positioning, and the high level of expansion activity in our markets. We currently see a robust bid market and pipeline of projects that we are pursuing. We see the Industrial end market as a particularly compelling opportunity for Orion and have been encouraged by our initial success in penetrating this space. Additionally, over the course of 2020, we will be focused on bidding and winning select larger and longer jobs that can produce greater visibility and stronger profit potential for our operations, and we feel confident that we have the infrastructure and people in place to be successful in this regard. ”
Consolidated Results for Fourth Quarter 2019 Compared to Fourth Quarter 2018
-
Contract revenues were
$199.8 million , up 101.4% as compared to$99.2 million . The increase was primarily driven by improved project execution in our marine segment and higher cubic yardage production in our concrete segment. Additionally, in 2018, the marine and concrete segments were negatively impacted by the delay of several large projects and disruptive weather patterns, respectively. -
Gross profit was
$19.1 million , as compared to a gross loss of$22.2 million . Gross profit margin was 9.6%, as compared to (22.4)%. The increase reflects improved equipment utilization in our marine segment, along with improved man hours per cubic yard placed in the concrete segment and an improvement in labor efficiency resulting from the implementation of ISG initiatives, particularly in the concrete segment. The year-over-year increase also reflects certain non-recurring charges in the fourth quarter of 2018 related to customer driven cost overruns on certain projects in the marine segment and a reserve held against disputed accounts receivable. -
Selling, General, and Administrative expenses were
$16.3 million , as compared to$13.0 million . The increase is primarily driven by ISG related expenses and professional fees. -
Operating income was
$2.7 million as compared to operating loss of$104.8 million . The operating income in the fourth quarter of 2019 reflects the aforementioned factors that improved gross profit. -
EBITDA was
$10.0 million , representing a 5.0% EBITDA margin, as compared to EBITDA of$(94.1) million , or a (94.8)% EBITDA margin. When adjusted for the aforementioned charges and other non-recurring costs, adjusted EBITDA for the fourth quarter of 2019 was$11.0 million , representing a 5.5% 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, and the Company cannot guarantee that the revenue projected in 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.
Forward-Looking Statements
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 (including those under “Update on Scale and Growth Initiative” above), 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 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
|
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(In Thousands, Except Share and Per Share Information) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Contract revenues |
|
|
199,793 |
|
|
|
99,211 |
|
|
|
708,390 |
|
|
|
520,894 |
|
Costs of contract revenues |
|
|
180,704 |
|
|
|
121,419 |
|
|
|
644,349 |
|
|
|
504,118 |
|
Gross profit |
|
|
19,089 |
|
|
|
(22,208 |
) |
|
|
64,041 |
|
|
|
16,776 |
|
Selling, general and administrative expenses |
|
|
16,335 |
|
|
|
13,034 |
|
|
|
61,012 |
|
|
|
53,197 |
|
Amortization of intangible assets |
|
|
660 |
|
|
|
849 |
|
|
|
2,640 |
|
|
|
3,390 |
|
Gain from sale of assets, net |
|
|
(607 |
) |
|
|
(779 |
) |
|
|
(1,804 |
) |
|
|
(3,306 |
) |
|
|
— |
|
|
69,483 |
|
|
— |
|
|
69,483 |
|
||||
Other gain from continuing operations |
|
— |
|
— |
|
— |
|
|
(5,448 |
) |
||||||
Operating income (loss) |
|
|
2,701 |
|
|
|
(104,795 |
) |
|
|
2,193 |
|
|
|
(100,540 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
||||||||
Other income |
|
|
197 |
|
|
|
75 |
|
|
|
771 |
|
|
|
1,692 |
|
Interest income |
|
|
36 |
|
|
|
37 |
|
|
|
353 |
|
|
|
136 |
|
Interest expense |
|
|
(1,827 |
) |
|
|
(2,044 |
) |
|
|
(6,808 |
) |
|
|
(7,943 |
) |
Other expense, net |
|
|
(1,594 |
) |
|
|
(1,932 |
) |
|
|
(5,684 |
) |
|
|
(6,115 |
) |
Income (loss) before income taxes |
|
|
1,107 |
|
|
|
(106,727 |
) |
|
|
(3,491 |
) |
|
|
(106,655 |
) |
Income tax expense (benefit) |
|
|
948 |
|
|
|
(12,311 |
) |
|
|
1,868 |
|
|
|
(12,233 |
) |
Net income (loss) |
|
$ |
159 |
|
|
$ |
(94,416 |
) |
|
$ |
(5,359 |
) |
|
$ |
(94,422 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(3.32 |
) |
|
$ |
(0.18 |
) |
|
$ |
(3.31 |
) |
Diluted income (loss) per share |
|
$ |
0.01 |
|
|
$ |
(3.32 |
) |
|
$ |
(0.18 |
) |
|
$ |
(3.31 |
) |
Shares used to compute income (loss) per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
29,562,635 |
|
|
|
28,448,426 |
|
|
|
29,322,054 |
|
|
|
28,518,353 |
|
Diluted |
|
|
29,574,145 |
|
|
|
28,448,426 |
|
|
|
29,322,054 |
|
|
|
28,518,353 |
|
|
|||||||||||
Selected Results of Operations |
|||||||||||
(In Thousands, Except Share and Per Share Information) |
|||||||||||
(Unaudited) |
|||||||||||
|
|
Three months ended |
|
||||||||
|
|
2019 |
|
2018 |
|
||||||
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
||
|
|
(dollar amounts in thousands) |
|
||||||||
Contract revenues |
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
77,349 |
|
69.5 |
% |
$ |
25,486 |
|
69.0 |
% |
Private sector |
|
|
33,875 |
|
30.5 |
% |
|
11,430 |
|
31.0 |
% |
Marine segment total |
|
$ |
111,224 |
|
100.0 |
% |
$ |
36,916 |
|
100.0 |
% |
Concrete segment |
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
8,624 |
|
9.7 |
% |
$ |
12,190 |
|
19.6 |
% |
Private sector |
|
|
79,945 |
|
90.3 |
% |
|
50,105 |
|
80.4 |
% |
Concrete segment total |
|
$ |
88,569 |
|
100.0 |
% |
$ |
62,295 |
|
100.0 |
% |
Total |
|
$ |
199,793 |
|
|
|
$ |
99,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
2,641 |
|
2.4 |
% |
$ |
(65,361) |
|
(177.1) |
% |
Concrete segment |
|
|
60 |
|
0.1 |
% |
|
(39,434) |
|
(63.3) |
% |
Total |
|
$ |
2,701 |
|
|
|
$ |
(104,795) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended |
|
||||||||
|
|
2019 |
|
2018 |
|
||||||
|
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
||
|
|
(dollar amounts in thousands) |
|
||||||||
Contract revenues |
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
257,836 |
|
69.8 |
% |
$ |
124,208 |
|
50.9 |
% |
Private sector |
|
|
111,302 |
|
30.2 |
% |
|
119,675 |
|
49.1 |
% |
Marine segment total |
|
$ |
369,138 |
|
100.0 |
% |
$ |
243,883 |
|
100.0 |
% |
Concrete segment |
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
49,175 |
|
14.5 |
% |
$ |
55,883 |
|
20.2 |
% |
Private sector |
|
|
290,077 |
|
85.5 |
% |
|
221,128 |
|
79.8 |
% |
Concrete segment total |
|
$ |
339,252 |
|
100.0 |
% |
$ |
277,011 |
|
100.0 |
% |
Total |
|
$ |
708,390 |
|
|
|
$ |
520,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
1,057 |
|
0.3 |
% |
$ |
(61,012) |
|
(25.0) |
% |
Concrete segment |
|
|
1,136 |
|
0.3 |
% |
|
(39,528) |
|
(14.3) |
% |
Total |
|
$ |
2,193 |
|
|
|
$ |
(100,540) |
|
|
|
|
||||||||||||||||
Reconciliation of Adjusted Net Income (Loss) |
||||||||||||||||
(In thousands except per share information) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three months ended |
|
Twelve months ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net income (loss) |
|
$ |
159 |
|
|
$ |
(94,416 |
) |
|
$ |
(5,359 |
) |
|
$ |
(94,422 |
) |
One-time charges and the tax effects: |
|
|
|
|
|
|
|
|
||||||||
ISG initiative |
|
|
919 |
|
|
— |
|
|
4,781 |
|
|
— |
||||
Severance |
|
|
162 |
|
|
— |
|
|
645 |
|
|
— |
||||
Unamortized debt issuance costs on debt extinguishment |
|
— |
|
— |
|
|
399 |
|
|
|
2,164 |
|
||||
Legal settlement |
|
— |
|
— |
|
— |
|
|
(5,448 |
) |
||||||
Change in cost estimates |
|
— |
|
|
22,770 |
|
|
|
|
|
22,770 |
|
||||
Reserve on disputed accounts receivables |
|
— |
|
|
4,280 |
|
|
|
— |
|
|
4,280 |
|
|||
|
|
— |
|
|
69,483 |
|
|
|
|
|
69,483 |
|
||||
Tax rate of 23% applied to one-time charges (1) |
|
|
(250 |
) |
|
|
(21,044 |
) |
|
|
(1,340 |
) |
|
|
(20,328 |
) |
Total one-time charges and the tax effects |
|
|
831 |
|
|
|
75,489 |
|
|
|
4,485 |
|
|
|
72,921 |
|
Federal and state tax valuation allowances |
|
|
465 |
|
|
|
10,977 |
|
|
|
916 |
|
|
|
10,977 |
|
Adjusted net income (loss) |
|
$ |
1,455 |
|
|
$ |
(7,950 |
) |
|
$ |
42 |
|
|
$ |
(10,524 |
) |
Adjusted EPS |
|
$ |
0.05 |
|
|
$ |
(0.28 |
) |
|
$ |
— |
|
$ |
(0.37 |
) |
__________________________ | ||
(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 |
|
||||||||
|
|
|
|
|
|
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
Net income (loss) |
|
$ |
159 |
|
$ |
(94,416) |
|
$ |
(5,359) |
|
$ |
(94,422) |
|
Income tax expense (benefit) |
|
|
948 |
|
|
(12,311) |
|
|
1,868 |
|
|
(12,233) |
|
Interest expense, net |
|
|
1,791 |
|
|
2,007 |
|
|
6,455 |
|
|
7,807 |
|
Depreciation and amortization |
|
|
7,065 |
|
|
10,665 |
|
|
28,407 |
|
|
31,799 |
|
EBITDA (1) |
|
|
9,963 |
|
|
(94,055) |
|
|
31,371 |
|
|
(67,049) |
|
ISG initiative |
|
|
919 |
|
|
— |
|
|
4,781 |
|
|
— |
|
Severance |
|
|
162 |
|
|
— |
|
|
645 |
|
|
— |
|
Change in cost estimates |
|
|
— |
|
|
22,770 |
|
|
— |
|
|
22,770 |
|
Reserve on disputed accounts receivables |
|
|
— |
|
|
4,280 |
|
|
— |
|
|
4,280 |
|
|
|
|
— |
|
|
69,483 |
|
|
— |
|
|
69,483 |
|
Legal settlement |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,448) |
|
Adjusted EBITDA(2) |
|
$ |
11,044 |
|
$ |
2,478 |
|
$ |
36,797 |
|
$ |
24,036 |
|
Operating income (loss) margin (3) |
|
|
1.4 |
% |
|
(85.9) |
% |
|
0.4 |
% |
|
(18.2) |
% |
Impact of depreciation and amortization |
|
|
3.5 |
% |
|
8.7 |
% |
|
4.0 |
% |
|
5.8 |
% |
Impact of ISG initiative |
|
|
0.5 |
% |
|
— |
% |
|
0.7 |
% |
|
— |
% |
Impact of severance |
|
|
0.1 |
% |
|
— |
% |
|
0.1 |
% |
|
— |
% |
Impact of change in cost estimates |
|
|
— |
% |
|
18.7 |
% |
|
— |
% |
|
4.2 |
% |
Impact of reserve on disputed accounts receivables |
|
|
— |
% |
|
3.5 |
% |
|
— |
% |
|
0.8 |
% |
Impact of goodwill impairment charges |
|
|
— |
% |
|
57.0 |
% |
|
— |
% |
|
12.8 |
% |
Impact of legal settlement |
|
|
— |
% |
|
— |
% |
|
— |
% |
|
(1.0) |
% |
Adjusted EBITDA margin(2) |
|
|
5.5 |
% |
|
2.0 |
% |
|
5.2 |
% |
|
4.4 |
% |
__________________________ |
||
(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 the ISG initiative, severance, change in cost estimates, reserve on disputed accounts receivable, goodwill impairment charges and legal settlement. 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 |
|
||||||||
|
|
|
|
|
|
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
Operating income (loss) |
|
|
2,641 |
|
|
(65,361) |
|
|
60 |
|
|
(39,434) |
|
Other income (expense), net (1) |
|
|
3,214 |
|
|
2,251 |
|
|
(3,018) |
|
|
(2,176) |
|
Depreciation and amortization |
|
|
4,914 |
|
|
7,885 |
|
|
2,152 |
|
|
2,780 |
|
EBITDA (2) |
|
|
10,769 |
|
|
(55,225) |
|
|
(806) |
|
|
(38,830) |
|
ISG initiative |
|
|
781 |
|
|
— |
|
|
138 |
|
|
— |
|
Severance |
|
|
126 |
|
|
— |
|
|
36 |
|
|
— |
|
Change in cost estimates |
|
|
— |
|
|
22,770 |
|
|
— |
|
|
— |
|
Reserve on disputed accounts receivable |
|
|
— |
|
|
4,280 |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
33,811 |
|
|
— |
|
|
35,672 |
|
Adjusted EBITDA(3) |
|
$ |
11,676 |
|
$ |
5,636 |
|
$ |
(632) |
|
$ |
(3,158) |
|
Operating income (loss) margin (4) |
|
|
5.3 |
% |
|
(105.7) |
% |
|
(3.3) |
% |
|
(66.9) |
% |
Impact of depreciation and amortization |
|
|
4.4 |
% |
|
13.2 |
% |
|
2.4 |
% |
|
4.5 |
% |
Impact of ISG initiative |
|
|
0.7 |
% |
|
— |
% |
|
0.2 |
% |
|
— |
% |
Impact of severance |
|
|
0.1 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of change in cost estimates |
|
|
— |
% |
|
38.1 |
% |
|
— |
% |
|
— |
% |
Impact of reserve on disputed accounts receivable |
|
|
— |
% |
|
7.2 |
% |
|
— |
% |
|
— |
% |
Impact of goodwill impairment charges |
|
|
— |
% |
|
56.6 |
% |
|
— |
% |
|
57.3 |
% |
Adjusted EBITDA margin (3) |
|
|
10.5 |
% |
|
9.4 |
% |
|
(0.7) |
% |
|
(5.1) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marine |
|
Concrete |
|
||||||||
|
|
Year ended |
|
Year ended |
|
||||||||
|
|
|
|
|
|
||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
||||
Operating income (loss) |
|
|
1,057 |
|
|
(61,012) |
|
|
1,136 |
|
|
(39,528) |
|
Other income (expense), net (1) |
|
|
11,976 |
|
|
11,155 |
|
|
(11,206) |
|
|
(9,463) |
|
Depreciation and amortization |
|
|
19,889 |
|
|
22,657 |
|
|
8,519 |
|
|
9,142 |
|
EBITDA (2) |
|
|
32,922 |
|
|
(27,200) |
|
|
(1,551) |
|
|
(39,849) |
|
ISG initiative |
|
|
2,491 |
|
|
— |
|
|
2,290 |
|
|
— |
|
Severance |
|
|
609 |
|
|
— |
|
|
36 |
|
|
— |
|
Change in cost estimates |
|
|
— |
|
|
22,770 |
|
|
— |
|
|
— |
|
Reserve on disputed accounts receivable |
|
|
— |
|
|
4,280 |
|
|
— |
|
|
— |
|
|
|
|
— |
|
|
33,811 |
|
|
— |
|
|
35,672 |
|
Legal settlement |
|
|
— |
|
|
(5,448) |
|
|
— |
|
|
— |
|
Adjusted EBITDA(3) |
|
$ |
36,022 |
|
$ |
28,213 |
|
$ |
775 |
|
$ |
(4,177) |
|
Operating(loss) income margin (4) |
|
|
3.5 |
% |
|
(18.7) |
% |
|
(3.0) |
% |
|
(17.7) |
% |
Impact of depreciation and amortization |
|
|
5.4 |
% |
|
8.5 |
% |
|
2.5 |
% |
|
3.3 |
% |
Impact of ISG initiative |
|
|
0.7 |
% |
|
— |
% |
|
0.7 |
% |
|
— |
% |
Impact of severance |
|
|
0.2 |
% |
|
— |
% |
|
— |
% |
|
— |
% |
Impact of change in cost estimates |
|
|
— |
% |
|
8.5 |
% |
|
— |
% |
|
— |
% |
Impact of reserve on disputed accounts receivable |
|
|
— |
% |
|
1.6 |
% |
|
— |
% |
|
— |
% |
Impact of goodwill impairment charges |
|
|
— |
% |
|
12.7 |
% |
|
— |
% |
|
12.9 |
% |
Impact of legal settlement |
|
|
— |
% |
|
(2.0) |
% |
|
— |
% |
|
— |
% |
Adjusted EBITDA margin (3) |
|
|
9.8 |
% |
|
10.6 |
% |
|
0.2 |
% |
|
(1.5) |
% |
__________________________ | ||
(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 the ISG initiative, severance, change in cost estimates, reserve on disputed accounts receivable, goodwill impairment charges and legal settlement. 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. |
|
|
||||||||
Consolidated Statements of Cash Flows |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Year ended |
||||||
|
|
|
2019 |
|
|
|
2018 |
|
Cash flows from operating activities |
|
|
|
|
||||
Net loss |
|
$ |
(5,359 |
) |
|
$ |
(94,422 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
26,096 |
|
|
|
31,799 |
|
Amortization of ROU operating leases |
|
|
5,177 |
|
|
— |
||
Amortization of ROU finance leases |
|
|
2,312 |
|
|
— |
||
Unamortized debt issuance costs upon debt modification |
|
|
399 |
|
|
|
2,164 |
|
Amortization of deferred debt issuance costs |
|
|
453 |
|
|
|
725 |
|
Deferred income taxes |
|
|
71 |
|
|
|
(13,194 |
) |
Stock-based compensation |
|
|
2,753 |
|
|
|
2,238 |
|
Gain on sale of property and equipment |
|
|
(1,804 |
) |
|
|
(3,306 |
) |
|
|
— |
|
|
69,483 |
|
||
Allowance for doubtful accounts |
|
— |
|
|
4,280 |
|
||
Other gain from continuing operations |
|
— |
|
|
(5,448 |
) |
||
Change in operating assets and liabilities, net of effects of acquisitions: |
|
|
|
|
||||
Accounts receivable |
|
|
(51,709 |
) |
|
|
10,936 |
|
Income tax receivable |
|
|
(495 |
) |
|
|
(128 |
) |
Inventory |
|
|
503 |
|
|
|
647 |
|
Prepaid expenses and other |
|
|
131 |
|
|
|
1,671 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
(32,172 |
) |
|
|
36,789 |
|
Accounts payable |
|
|
28,894 |
|
|
|
(4,584 |
) |
Accrued liabilities |
|
|
1,334 |
|
|
|
(5,301 |
) |
Operating lease liabilities |
|
|
(5,843 |
) |
|
— |
||
Income tax payable |
|
|
1,523 |
|
|
|
(256 |
) |
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
|
27,020 |
|
|
|
(12,162 |
) |
Net cash (used in) provided by operating activities |
|
|
(716 |
) |
|
|
21,931 |
|
Cash flows from investing activities: |
|
|
|
|
||||
Proceeds from sale of property and equipment |
|
|
2,015 |
|
|
|
3,234 |
|
Purchase of property and equipment |
|
|
(17,199 |
) |
|
|
(17,714 |
) |
Contributions to CSV life insurance |
|
|
(721 |
) |
|
|
(260 |
) |
Proceeds from return of investment |
|
— |
|
|
94 |
|
||
Insurance claim proceeds related to property and equipment |
|
|
2,574 |
|
|
|
1,346 |
|
Net cash used in investing activities |
|
|
(13,331 |
) |
|
|
(13,300 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Borrowings from Credit Facility |
|
|
63,000 |
|
|
|
39,861 |
|
Payments made on borrowings from Credit Facility |
|
|
(70,210 |
) |
|
|
(48,111 |
) |
Proceeds from sale-leaseback arrangement |
|
|
18,210 |
|
|
— |
||
Loan costs from Credit Facility |
|
|
(1,680 |
) |
|
|
(861 |
) |
Capital lease liability |
|
— |
|
|
(2,737 |
) |
||
Payments of finance lease liabilities |
|
|
(2,906 |
) |
|
— |
||
Exercise of stock options |
|
|
35 |
|
|
|
2,815 |
|
Net cash provided by (used in) financing activities |
|
|
6,449 |
|
|
|
(9,033 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(7,598 |
) |
|
|
(402 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
8,684 |
|
|
|
9,086 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
1,086 |
|
|
$ |
8,684 |
|
|
||||||||||||||||
Consolidated Statements of Cash Flows Summary |
||||||||||||||||
(In Thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three months ended |
|
Year ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Cash flows provided by (used in) operating activities |
|
$ |
1,181 |
|
|
$ |
27,170 |
|
|
$ |
(716 |
) |
|
$ |
21,931 |
|
Cash flows used in investing activities |
|
$ |
(3,683 |
) |
|
$ |
(1,593 |
) |
|
$ |
(13,331 |
) |
|
$ |
(13,300 |
) |
Cash flows provided by (used in) financing activities |
|
$ |
2,238 |
|
|
$ |
(19,487 |
) |
|
$ |
6,449 |
|
|
$ |
(9,033 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures (included in investing activities above) |
|
$ |
(4,164 |
) |
|
$ |
(2,671 |
) |
|
$ |
(17,199 |
) |
|
$ |
(17,714 |
) |
|
||||||||
Consolidated Balance Sheets |
||||||||
(In Thousands, Except Share and Per Share Information) |
||||||||
|
|
|
|
|
|
|||
|
|
2019 |
|
|
2018 |
|
||
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
128 |
|
|
|
8,684 |
|
Restricted cash |
|
|
958 |
|
|
— |
||
Accounts receivable: |
|
|
|
|
||||
Trade, net of allowance of |
|
|
116,540 |
|
|
|
77,641 |
|
Retainage |
|
|
42,547 |
|
|
|
30,734 |
|
Other current |
|
|
2,680 |
|
|
|
4,257 |
|
Income taxes receivable |
|
|
962 |
|
|
|
467 |
|
Inventory |
|
|
1,114 |
|
|
|
1,056 |
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
|
41,389 |
|
|
|
9,217 |
|
Prepaid expenses and other |
|
|
5,647 |
|
|
|
5,000 |
|
Total current assets |
|
|
211,965 |
|
|
|
137,056 |
|
Property and equipment, net of depreciation |
|
|
132,348 |
|
|
|
148,003 |
|
Operating lease right-of-use assets, net of amortization |
|
|
17,997 |
|
|
— |
||
Financing lease right-of-use assets, net of amortization |
|
|
7,896 |
|
|
— |
||
Inventory, non-current |
|
|
7,037 |
|
|
|
7,598 |
|
Intangible assets, net of amortization |
|
|
12,147 |
|
|
|
14,787 |
|
Deferred income tax asset |
|
|
85 |
|
|
— |
||
Other non-current |
|
|
5,369 |
|
|
|
5,426 |
|
Total assets |
|
$ |
394,844 |
|
|
$ |
312,870 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Current debt, net of issuance costs |
|
$ |
3,668 |
|
|
$ |
2,946 |
|
Accounts payable: |
|
|
|
|
||||
Trade |
|
|
70,421 |
|
|
|
42,023 |
|
Retainage |
|
|
562 |
|
|
|
736 |
|
Accrued liabilities |
|
|
16,966 |
|
|
|
18,840 |
|
Income taxes payable |
|
|
1,523 |
|
|
— |
||
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
|
48,781 |
|
|
|
21,761 |
|
Current portion of operating lease liabilities |
|
|
5,043 |
|
|
— |
||
Current portion of financing lease liabilities |
|
|
2,788 |
|
|
— |
||
Total current liabilities |
|
|
149,752 |
|
|
|
86,306 |
|
Long-term debt, net of debt issuance costs |
|
|
68,029 |
|
|
|
76,119 |
|
Operating lease liabilities |
|
|
13,596 |
|
|
— |
||
Financing lease liabilities |
|
|
3,760 |
|
|
— |
||
Other long-term liabilities |
|
|
20,436 |
|
|
|
8,759 |
|
Deferred income tax liability |
|
|
205 |
|
|
|
49 |
|
Interest rate swap liability |
|
|
1,045 |
|
|
|
52 |
|
Total liabilities |
|
|
256,823 |
|
|
|
171,285 |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock -- |
|
— |
|
— |
||||
Common stock -- |
|
|
303 |
|
|
|
296 |
|
|
|
|
(6,540 |
) |
|
|
(6,540 |
) |
Other comprehensive loss |
|
|
(1,045 |
) |
|
|
(52 |
) |
Additional paid-in capital |
|
|
182,523 |
|
|
|
179,742 |
|
Retained loss |
|
|
(37,220 |
) |
|
|
(31,861 |
) |
Total stockholders’ equity |
|
|
138,021 |
|
|
|
141,585 |
|
Total liabilities and stockholders’ equity |
|
$ |
394,844 |
|
|
$ |
312,870 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200226006025/en/
(713) 852-6500
www.oriongroupholdingsinc.com
-OR-
INVESTOR RELATIONS COUNSEL:
Source:
Orion Group Holdings Inc.
Robert Tabb, Vice President & CFO
(713) 852-6500
www.oriongroupholdingsinc.com
-OR-
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Fred Buonocore, CFA (212) 836-9607
Mike Gaudreau (212) 836-9620