Orion Marine Group, Inc. (ORN), today reported a net loss for the three months ended March 31, 2016, of $1.2 million.
These results compare to a net loss of $0.3 million for the same period a year ago.
According to Mark Stauffer, Orion Marine Group’s President and Chief Executive Officer, the first quarter has historically been the company’s slowest quarter of the year in its Heavy Civil Marine Construction segment, and this year was no different.
“We experienced slightly slower productivity during the quarter as a result of specific adverse weather on certain jobs, primarily on the East Coast. The Heavy Civil Marine Construction segment had solid performance during the quarter, and overall results would have been in line with expectations,” said Mark Stauffer.
“As we look ahead, we expect first quarter impacts to continue well into the second quarter, however we anticipate significant improvement in our results in the second half of 2016,” continued Mr. Stauffer.
“We continue to experience a high level of demand for all of our services across both operating segments, and our Commercial Concrete Construction segment has exceeded our expectations. In our Heavy Civil Marine Construction segment we are focused on completing the remaining troubled Tampa projects, pursuing our claims on these projects and resuming profitable operations in our Tampa office. Overall, we are targeting $70 million of EBITDA for 2017 and maintaining overall EBITDA margins in the 10 to 12% range,” said Mr. Stauffer.
Consolidated Results for the First Quarter of 2016
- First quarter 2016 contract revenue was $129.6 million an increase of 59.1%, as compared with first quarter 2015 revenue of $81.5 million, primarily as a result of the addition of TAS.
- Gross profit for the quarter was $14.7 million or a gross profit margin of 11.3%, an increase of approximately $6.3 million as compared with the first quarter of 2015. Gross profit margin for the first quarter of 2015 was 10.4%.
- Selling, General, and Administrative expenses for the first quarter 2016 were $15.5 million as compared to $8.7 million an increase of $6.8 million or 78.8% in the prior year period. The increase in SG&A is primarily attributable to the addition of TAS and SG&A labor costs.
- First quarter 2016 EBITDA was $8.1 million, representing a 6.3% EBITDA margin which compares to first quarter 2015 EBITDA of $13.1 million, or a 18.9% EBITDA margin.
- Backlog of work under contract as of March 31, 2016, was $384.8 million.