"Our first quarter results reflect a solid year-over-year increase in revenue and EBITDA," said
Financial highlights of the Company's first quarter 2013 include:
-
First quarter 2013 contract revenue was
$75.1 million , an increase of 48%, as compared with first quarter 2012 revenue of$50.9 million . While first quarter 2013 revenue was down sequentially, it was up significantly year over year as a result of the Company's adjusted pricing strategy in an effort to drive a higher volume of work.
-
The Company self-performed approximately 83% of its work as measured by cost during the first quarter 2013, as compared with 85% in the prior year period.
-
Gross profit for the quarter was
$5.8 million , which represents an increase of$8.7 million as compared with the first quarter of 2012. Gross profit margin for the quarter was 7.8%, which was higher than the prior year period of negative 5.6%. During the first quarter of 2013, gross profit margin improved due to the volume, timing, and mix of projects as compared to the prior year period.
-
Selling, General, and Administrative expenses for the first quarter 2013 were
$7.7 million as compared to$7.1 million in the prior year period. The increase is primarily related to additional overhead expenses as a result of the acquisition made in late 2012.
-
The Company's first quarter 2013 EBITDA was
$3.8 million , representing a 5.1% EBITDA margin, which compares to first quarter 2012 EBITDA of negative$4.4 million , or a negative 8.5% EBITDA margin.
Backlog of work under contract as of
The Company reminds investors that 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 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. 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.
Outlook
"We continue to see overall demand for our services grow as we track
"During the first quarter we bid on approximately
Currently, we have over
Conference Call Details
About
EBITDA and EBITDA Margin
This press release includes the financial measures "EBITDA" and "EBITDA margin". These measurements may be deemed "non-GAAP financial measures" under rules of the
A reconciliation of the Company's future EBITDA margin to the corresponding GAAP measure is not available as these are estimated goals for the performance of the overall operations over the planning period. These estimated goals are based on assumptions that may be affected by actual outcomes, including but not limited to the factors noted in the "forward looking statements" herein, in other releases, and in filings with the
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, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release (including those under "Outlook" 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, profit, EBITDA, 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 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
Orion Marine Group, Inc. and Subsidiaries | ||
Consolidated Statements of Operations | ||
(In thousands, except share and per share information) | ||
Three Months Ended | ||
March 31, 2013 |
March 31, 2012 |
|
(Unaudited) | (Unaudited) | |
Contract revenues | $ 75,059 | $ 50,890 |
Costs of contract revenues | 69,229 | 53,718 |
Gross profit (loss) | 5,830 | (2,828) |
Selling, general and administrative expenses | 7,691 | 7,091 |
Loss from operations | (1,861) | (9,919) |
Other income (expense) | ||
Other income | 298 | 181 |
Interest income | 10 | 11 |
Interest expense | (184) | (168) |
Other income, net | 124 | 24 |
Loss before income taxes | (1,737) | (9,895) |
Income tax Benefit | (640) | (3,559) |
Net loss | (1,097) | (6,336) |
Net loss attributable to noncontrolling interest | $ (7) | $ -- |
Net loss attributable to Orion common stockholders | $ (1,090) | $ (6,336) |
Basic loss per share | $ (0.04) | $ (0.23) |
Diluted loss per share | $ (0.04) | $ (0.23) |
Shares used to compute loss per share: | ||
Basic | 27,229,792 | 27,119,760 |
Diluted | 27,229,792 | 27,119,760 |
EBITDA and EBITDA Margin Reconciliations | ||
(In Thousands, except margin data) | ||
Three Months Ended |
||
March 31, 2013 |
March 31, 2012 |
|
(Unaudited) | (Unaudited) | |
Net loss | $ (1,090) | $ (6,336) |
Income tax benefit | (640) | (3,559) |
Interest expense, net | 174 | 157 |
Depreciation and amortization | 5,377 | 5,378 |
EBITDA1 | $ 3,821 | $ (4,360) |
Operating Margin2 |
(2.1)% | (19.1)% |
Impact of Depreciation and Amortization |
7.2% | 10.6% |
EBITDA margin1 |
5.1% | (8.5)% |
1 EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by contract revenues.
2 Operating income margin is calculated by dividing operating income plus other income (if any) by contract revenues.
Orion Marine Group, Inc. and Subsidiaries | |||
Supplementary Financial Information | |||
(In Thousands) | |||
Balance as of |
Balance as of |
||
March 31, 2013 |
December 31, 2012 |
||
(Unaudited) | (Unaudited) | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 45,885 | $ 43,084 | |
Accounts receivable | |||
Trade | 29,851 | 45,072 | |
Retainage | 8,476 | 8,213 | |
Other | 1,308 | 1,712 | |
Taxes receivable | 2,680 | 3,110 | |
Note receivable | 46 | 46 | |
Inventory | 5,077 | 4,354 | |
Deferred tax asset | 37 | 37 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 20,363 | 19,245 | |
Asset held for sale | 920 | 920 | |
Prepaid expenses and other | 2,377 | 2,857 | |
Total current assets | 117,020 | 128,650 | |
Property and equipment, net | 148,094 | 150,671 | |
Accounts receivable, long-term | 1,410 | 1,410 | |
Inventory, non-current | 915 | 915 | |
Goodwill | 34,817 | 34,817 | |
Intangible assets, net of amortization | 503 | 627 | |
Other assets | 223 | 225 | |
Total assets | $ 302,982 | $ 317,315 | |
Liabilities and Stockholders' Equity | |||
Current liabilities | |||
Current debt | $ 1,556 | $ 12,621 | |
Accounts payable | |||
Trade | 19,925 | 28,744 | |
Retainage | 1,774 | 2,433 | |
Accrued liabilities | 10,419 | 12,456 | |
Taxes Payable | 279 | 252 | |
Billings in excess of costs and estimated earnings on uncompleted contracts | 17,184 | 16,369 | |
Total current liabilities | 51,137 | 72,875 | |
Long-term debt | 8,176 | -- | |
Other long-term liabilities | 784 | 564 | |
Deferred income taxes | 17,829 | 18,496 | |
Deferred revenue | 131 | 146 | |
Total liabilities | 78,057 | 92,081 | |
Stockholders' equity | |||
Common stock | 276 | 275 | |
Treasury stock | (3,003) | (3,003) | |
Additional paid in capital | 161,760 | 160,973 | |
Retained earnings | 65,849 | 66,939 | |
Equity attributable to common stockholders | 224,882 | 225,184 | |
Noncontrolling interest | 43 | 50 | |
Total stockholders' equity | 224,925 | 225,234 | |
Total liabilities and stockholders' equity | $ 302,982 | $ 317,315 |
Orion Marine Group, Inc. and Subsidiaries | ||
Supplementary Financial Information | ||
(In Thousands) | ||
Three Months Ended March 31, 2013 |
Three Months Ended March 31, 2012 |
|
(Unaudited) | (Unaudited) | |
Cash flows from operating activities | ||
Net Loss | $ (1,097) | $ (6,336) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,377 | 5,378 |
Deferred financing cost amortization | 22 | 33 |
Bad debt recoveries | (5) | (1) |
Deferred income taxes | (667) | (98) |
Stock-based compensation | 582 | 774 |
Loss on sale of property and equipment | (2) | (14) |
Change in operating assets and liabilities: | ||
Accounts receivable | 15,367 | (4,355) |
Income tax receivable | 430 | (3,491) |
Inventory | (724) | 41 |
Note receivable | -- | 5 |
Prepaid expenses and other | 464 | (108) |
Restricted Cash | -- | (13,952) |
Costs and estimated earnings in excess of billings on uncompleted contracts | (1,118) | (1,964) |
Accounts payable | (9,478) | (570) |
Accrued liabilities | (1,817) | (1,030) |
Income tax payable | 27 | -- |
Billings in excess of costs and estimated earnings on uncompleted contracts | 815 | 5,677 |
Deferred revenue | (14) | (14) |
Net cash provided by (used in) operating activities | 8,162 | (20,025) |
Cash flows from investing activities | ||
Proceeds from sale of property and equipment | 13 | 40 |
Purchase of property and equipment | (2,691) | (16,260) |
Net cash used in investing activities | (2,678) | (16,220) |
Cash flows from financing activities | ||
Borrowings from Credit Facility | -- | 13,000 |
Payments made on borrowings from Credit Facility | (2,889) | -- |
Exercise of stock options | 206 | 13 |
Net cash (used in) provided by financing activities | (2,683) | 13,013 |
Net change in cash and cash equivalents | 2,801 | (23,232) |
Cash and cash equivalents at beginning of period | 43,084 | 38,979 |
Cash and cash equivalents at end of period | $ 45,885 | $ 15,747 |
CONTACT:Orion Marine Group, Inc. Mark Stauffer , Executive Vice President & CFOChris DeAlmeida , Vice President, Accounting & Finance, 713-852-6506Drew Swerdlow , Sr. Analyst, Finance & Investor Relations, 713-852-6582