Orion Group Holdings, Inc. (ORN) has reported a net income of $4.0 million ($0.14 diluted earnings per share) for the third quarter ended September 30, 2019.
“For the third quarter, we posted our highest quarterly revenues in the company’s history and delivered positive operating profit in both segments,” stated Mark Stauffer, Orion Group Holding’s President and Chief Executive Officer.
“Our top and bottom line increased significantly on both a year-over-year and sequential basis driven by effective execution on projects in our sizeable backlog, and the benefits of our Invest, Scale and Grow (ISG) initiative. Marine segment results were driven by the ramp-up of a broad range of projects awarded over the past few quarters, including projects involving dredging services, leading to higher fleet utilization with increased absorption of fixed costs,” he added.
According to Mr. Stauffer, even with the significant amount of work executed in the third quarter, backlog remained near all-time highs and was up significantly relative to the end of the third quarter of 2018.
Mr. Stauffer concluded, “While our fourth quarter can be seasonally weaker than the third quarter, we do expect to see material year-over-year improvement in revenues and profitability compared to the fourth quarter of 2018. With respect to 2020, we are already adding projects to backlog for the second half of the year, providing us with better visibility for the full year.”
Third Quarter 2019 Highlights
- Contract revenues were $199.5 million, up 59.5% from $125.1 million for the third quarter of 2018. Operating income was $6.1 million for the third quarter of 2019 compared to operating loss of $7.4 million for the third quarter of 2018.
- Net income was $4.0 million ($0.14 diluted earnings per share) for the third quarter of 2019 compared to net loss of $6.4 million ($0.22 diluted loss per share) for the third quarter of 2018.
- The third quarter 2019 net income included $0.3 million ($0.01 per diluted share) of non-recurring costs and other charges. Third quarter 2019 adjusted net income was $4.3 million ($0.15 diluted earnings per share).
- EBITDA, adjusted to exclude the impact of the aforementioned non-recurring costs, was $14.3 million in the third quarter of 2019, which compares to adjusted EBITDA of $0.7 million for the third quarter of 2018.
- Backlog was $630.5 million on a third quarter book-to-bill of 0.85x.
For the full third quarter results, please click here.