Orion Group Reports Fourth Quarter Results

Orion Group Holdings, Inc. (ORN) today reported financial results for the fourth quarter and full year ended December 31, 2018.

We remain focused on the operational transformation underway throughout our Company, which we believe will become increasingly evident as 2019 progresses,” stated Mark Stauffer, Orion Group Holding’s President and Chief Executive Officer.

Our reported results for the fourth quarter were impacted by shifts in the timing of the commencement of several Marine projects, as well as weather-related delays for our concrete operations as a result of heavy rains and disruptive weather patterns throughout our key Texas markets,” added Mark Stauffer. “Additionally, our fourth quarter results included non-cash charges for the impairment of goodwill, as well as a write-down of revenues as a result of losses in our Marine segment resulting from cost overruns on certain projects created by customer schedules, customer delays, and other customer impacts to production.

Mr. Stauffer continued, “Despite our fourth quarter reported results, we believe we have reason for optimism with respect to our outlook for 2019 and beyond. We’ve begun this year with our backlog at an all-time high for the Company, with a variety of high-quality projects carrying strong margin opportunity, particularly in our Marine segment.

Consolidated Results for Fourth Quarter 2018 Compared to Fourth Quarter 2017

  • Contract revenues were $99.2 million, a decrease of 38.8%, as compared to $162.2 million. The decrease is primarily attributable to a $22.8 million charge related to customer-driven cost overruns on certain projects in the Marine segment, coupled with the impact of continued rainy weather patterns in Texas in the Concrete segment.
  • Gross (loss) profit was $(20.9) million, as compared to $27.8 million. Gross (loss) profit margin was (21.0)%, as compared to 17.1%. The decrease reflects the aforementioned decline in contract revenues, along with a $22.8 million charge related to customer-driven cost overruns on certain projects in the Marine segment and a $4.3 million non-cash charge for reserves on disputed accounts receivables.
  • Selling, General, and Administrative expenses were $15.2 million, as compared to $17.0 million. The decrease is driven by cost saving initiatives and decreased legal fees.
  • Operating loss was $104.8 million as compared to operating income of $10.8 million. The operating loss in the fourth quarter of 2018 reflects the aforementioned contract adjustments of $22.8 million, the goodwill impairment charge of $69.5 million, and the $4.3 million non-cash charge for reserves on disputed accounts receivables.
  • EBITDA was $(94.1) million, representing a (94.8)% EBITDA margin, as compared to EBITDA of $17.9 million, or 11.1% EBITDA margin. When adjusted for the aforementioned non-cash charges and other non-recurring costs, adjusted EBITDA for the fourth quarter of 2018 was $2.5 million, representing a 2.5% EBITDA margin.

Segment Results for Fourth Quarter 2018 Compared to Fourth Quarter 2017

Marine Segment

  • Contract revenues were $36.9 million, a decrease of 58.1%, as compared to $88.2 million. The decrease is primarily attributed to a $22.8 million charge related to customer-driven costs overruns on certain projects  and to the timing and mix of projects.
  • Operating loss was $65.4 million, as compared to operating income of $7.8 million. The decrease was primarily attributable to $22.8 million of aforementioned project adjustments related to customer-driven cost overruns. In addition, fourth quarter 2018 Marine segment operating loss includes a $4.3 million non-cash charge related to reserves surrounding certain customers’ disputed accounts receivables. Also, Marine segment operating loss for the fourth quarter of 2018 includes a $33.8 million non-cash charge for the impairment of goodwill.
  • EBITDA was $(55.2) million, representing a (149.6)% EBITDA margin, as compared to $15.4 million EBITDA and a 17.4% EBITDA margin in the prior year period. When adjusted for the aforementioned non-cash charges and other non-recurring costs, the Marine segment’s adjusted EBITDA for the fourth quarter of 2018 was $5.6 million, representing a 15.3% EBITDA margin.

Orion Group Holdings, Inc. Fourth Quarter and Full Year 2018 Results

 

Share this article

Follow Dredging Today

Events>

<< Aug 2019 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1

Eastern Chapter WEDA Fall 2019 Conference

Wednesday (10/16/19) afternoon will start the program with an opportunity to take the Dredging 101 course.

read more >

10TH Annual Conference Dredging in India

The conference will focus on strategies and solutions to meet the future dredging requirements…

read more >

Australasian Coasts and Ports 2019

Conference Theme “Future directions from 40°S and beyond” reflects the increasing awareness about the need to find suitable…

read more >

PORTS Conference

The PORTS Conference series is internationally recognized as an outstanding opportunity to network with…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of DredgingToday.com, you'll reach countless professionals in the sector. For more information, click below....

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of DredgingToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Dredging jobs in Abu Dhabi at NMDC

National Marine Dredging Company “NMDC” aims to be the largest dredging player in the Arab’s Gulf region...

apply