ORN reports second quarter 2020 results

Orion Group Holdings, Inc. (ORN) yesterday reported net income of $2.0 million ($0.07 diluted earnings per share) for the second quarter ended June 30, 2020.

“Once again, I would like to thank all of our employees and team members for continuing to safely and diligently work on our projects and in our yards, shops and support offices during this unprecedented period,” stated Mark Stauffer, Orion Group Holdings’ President and Chief Executive Officer. “Despite the continued spread of the COVID-19 virus and the spike in some of the states in which we work, we continue to execute on our projects in backlog while keeping our focus on maintaining the health and safety of the most important resource of our business, our people.”

“We continued to post year-over-year improvement in both our top and bottom line and also generated solid free cash flow in the second quarter, which reflects the benefits of the operational improvement initiatives we implemented over the past 18 months. Adjusted EBITDA margin declined for our marine segment due to lower utilization of our dredging assets as we performed scheduled maintenance to ensure continued operation of our dredge fleet for upcoming projects in backlog,” added Stauffer.

He continued, “Though the pandemic may continue to create uncertainty in the marketplace, we are confident in our ability to efficiently and profitably execute our projects in backlog, and in our ability to maintain or grow our backlog level by targeting and winning new bid opportunities.”

Backlog

Backlog of work under contract as of June 30, 2020 was $528.4 million, which compares with backlog under contract at June 30, 2019 of $645.2 million, a decrease of 18.1%.

The prior period backlog number reflects the booking of a large project during the period with a contract value of $160 million. The second quarter 2020 ending backlog was comprised of $312.2 million for the marine segment, and $216.2 million for the concrete segment.

Currently, the company has approximately $1.3 billion worth of bids outstanding, including approximately $73 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the second quarter of 2020, of which approximately $60 million pertains to the marine segment and approximately $13 million to the concrete segment.

For the full second quarter results, please click here.

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