Orion Group Holdings Reports Permitting Delays, Net Loss in Q2
Orion Group Holdings Inc. today reported a net loss for the three months ended June 30, 2017, of $2.3 million ($0.08 diluted loss per share).
These results compare to a net loss of $0.8 million ($0.03 diluted loss per share) for the same period a year ago.
“The second quarter was impacted by continued delays in our customers’ ability to obtain necessary permits on certain projects in our marine segment,” said Mark Stauffer, Orion Group Holdings’ President and Chief Executive Officer.
“These permitting delays, resulted in a resequencing of work on a couple of large projects, which led to increased costs as a result of idle crews and equipment. While this situation is unfortunate, we have diligently worked with our customers on these impacted projects to expedite the permitting process and we believe the permits will be coming in the next couple of weeks. Without these delays, our results for the second quarter would have been above market expectations due to solid job execution and continued strong demand for our services across both segments.”
“We are pleased with our progress in the second quarter, and believe we will see strong financial improvements in the back half of this year. Additionally, we continue to focus on developing opportunities across the infrastructure, industrial, and building sectors through organic growth, greenfield expansion, and strategic acquisition opportunities.”
Consolidated Results for the Second Quarter of 2017 compared to Second Quarter 2016
- Contract revenues were $137.4 million, a decrease of 2.1%, as compared to revenues of $140.3 million. The decrease is primarily attributable to delays in customers obtaining necessary permits, which caused interruptions in the execution of certain projects within the marine segment;
- Gross profit was $15.4 million, or a gross profit margin of 11.2%, as compared to gross profit of $16.9 million, or a gross profit margin of 12.1%. The decrease is primarily attributable to delays in customers obtaining necessary permits, which caused interruptions in the execution of certain projects within the marine segment;
- Selling, General and Administrative (SG&A) expenses were $17.5 million, as compared to $16.9 million. The increase is primarily attributable to the recently acquired Central Texas concrete company;
- Net loss was $2.3 million, as compared to a net loss of $0.8 million. Diluted loss per share was $0.08, as compared to $0.03. The change is primarily attributable to delays in customers obtaining necessary permits which caused interruptions in the execution of certain projects within the marine segment;
- EBITDA was $5.1 million, representing an 3.7% EBITDA margin which compares to EBITDA of $8.9 million, or a 6.4% EBITDA margin.