Orion Marine Group, Inc., a heavy civil marine contractor, today reported net income for the three months ended December 31, 2014, of $5.3 million ($0.19 diluted earnings per share).
For the full year 2014, Orion Marine Group reported net income of $6.9 million ($0.25 diluted earnings per share), which compares to the prior full year 2013 net income of $0.3 million ($0.01 diluted earnings per share).
“2014 was another solid year with record revenue and improved gross margin as a result of the plan we put in place in 2011,” said Mark Stauffer, Orion Marine Group’s President and Chief Executive Officer.
“For the second consecutive year the Orion Marine Group team has delivered record fourth quarter revenue through a dedication to successful project execution with a focus on a safe work environment. The strong performance of several turnkey projects and improved asset utilization in the second half of 2014 led to sequential and year over year quarterly improvements in revenue, gross margin, and EBITDA. Our backlog, identified bid opportunities, continued strength in the private sector and improved asset utilization gives us optimism that 2015 can be another growth year for us.”
Full Year 2014 Results
– Full year 2014 contract revenue was $385.8 million, the highest in the Company’s history, and an increase of 8.8% as compared with full year 2013 revenues of $354.5 million;
– Gross profit for the year was $44.6 million, which represents an increase of $12.6 million as compared with the full year 2013. Gross profit margin for the full year 2014 was 11.6%, which is up from 9.0% for the full year 2013. The year over year increase in gross profit margin was primarily attributable to sustained increases in the Company’s equipment utilization in the second half of 2014;
– The Company self-performed approximately 83% of its work as measured by cost during 2014, which is comparable to the prior year period;
– Selling, General, and Administrative expense for the full year 2014 was $34.7 million as compared with $32.1 million in the prior year period. The increase in SG&A expense for the year is primarily attributable to an increase in bad debt and bonus expense;
– The Company’s full year 2014 EBITDA was $34.2 million, representing an 8.9% EBITDA margin, which compares to full year 2013 EBITDA of $21.4 million, or a 6.0% EBITDA margin.