Orion Posts Second Quarter 2015 Results

Orion Marine Group, Inc. today reported net loss for the three months ended June 30, 2015, of $1.8 million ($0.07 diluted loss per share). 

These results compare to a net loss of $1.2 million ($0.04 diluted loss per share) for the same period a year ago.

“As expected, inconsistent lettings by the Army Corps of Engineers led to underutilized equipment in the second quarter,” said Mark Stauffer, Orion Marine Group’s President and Chief Executive Officer. 

“Additionally, Texas experienced what was the wettest three months from April to June in over 120 years. This inclement weather caused delays in existing jobs and the startup of new jobs, which further impacted our second quarter results. Despite the temporary impact of these delays, we expect to see additional opportunities related to the record rainfall in the form of additional work in the coming months. In fact, we recently received a change order on an existing contract to perform dredging where excess shoaling occurred as a result of the recent rains. Additionally, we continue to see a robust bid market and strong bid opportunities for the remainder of the year.”

Second Quarter 2015

• Second quarter 2015 contract revenue was $86.1 million, a decrease of 4.6% from the prior year period. The decrease is primarily related to the startup of new projects being delayed due to inclement weather;
• Gross profit for the quarter was $6.0 million, which represents an increase of $0.2 million as compared with the second quarter of 2014. Gross profit margin for the quarter was 7.0%, which was higher than the prior year period of 6.5%. The increase was a result of continued incremental bid margin improvement;
• Selling, General, and Administrative expenses for the second quarter 2015 were $8.8 million as compared to $8.1 million in the prior year period. The increase in SG&A is primarily attributable to increase in stock compensation, one-time recruitment expenses and acquisition related costs;
• The Company’s second quarter 2015 EBITDA was $2.5 million, representing a 2.9% EBITDA margin, a decrease of $1.4 million compared to the second quarter 2014 EBITDA of $3.9 million, or 4.4%.

Backlog of work under contract as of June 30, 2015, was $223.0 million, which compares with backlog under contract at June 30, 2014, of $281.6 million.

Outlook

“Overall, we are pleased with our current business drivers and we are excited for the additional growth potential the TAS Commercial Concrete acquisition brings to our business,” said Mr. Stauffer. “We continue to see a healthy bid market and we are pleased with the visibility the strong level of bookings in the second quarter has provided us with for the remainder of 2015.

“In the heavy civil marine construction segment, we continue to see strong private sector opportunities from both energy and recreational customers. Additionally, expansion work for local port authorities remains a solid source of bid opportunities as port authorities continue to execute on capital expansion plans, many of which are related to the opening of the widened Panama Canal in 2016.”