Orion Group Holdings, Inc. (ORN) recently reported net income of $11.8 million ($0.39 diluted earnings per share) for the third quarter ended September 30, 2020.
During the third quarter an explosion and fire occurred in the Port of Corpus Christi Ship Channel while the company’s dredge Waymon Boyd was working near a pipeline, which resulted in the deaths of five crewmen and injuries, some severe, to several other crewmen.
“Our primary concern remains the well-being of our crew members and their families involved in this incident,” said Mark Stauffer, Orion’s President and Chief Executive Officer. “Safety is an integral part of our Guiding Beliefs at Orion and we remain deeply committed to our Target Zero program to support our vision of an incident free workplace. Our support, thoughts, and prayers remain with the crew of the Waymon Boyd and their families.”
As a result of this incident, third quarter results include a net $2.9 million gain on the disposal of assets related to insurance recoveries as a result of the loss of the dredge Waymon Boyd and associated vessels. The Company is currently evaluating the best dredging asset alternatives to reinvest this capital.
“Turning to our financial results, year over year consolidated bottom line growth was driven by continued improved operating performance in both segments. Despite the challenges faced during the quarter, our marine segment saw sequential improvement in operating performance and EBITDA margin,” continued Mr. Stauffer.
Third Quarter 2020 Highlights
- Contract revenues were $189.4 million, down 5.0% from $199.5 million for the third quarter of 2019.
- Operating income was $13.1 million for the third quarter of 2020 compared to operating income of $6.1 million for the third quarter of 2019.
- Net income was $11.8 million ($0.39 diluted earnings per share) for the third quarter of 2020 compared to net income of $4.0 million ($0.14 diluted earnings per share) for the third quarter of 2019.
- The third quarter 2020 net income included $2.5 million ($0.08 earnings per diluted share) of non-recurring items and $2.2 million ($0.08 earnings per diluted share) of tax benefit associated with the movement of certain valuation allowances. Third quarter 2020 adjusted net income was $7.1 million ($0.23 diluted earnings per share). (Please see page 9 of this release for a reconciliation of adjusted net income).
- EBITDA, adjusted to exclude the impact of the aforementioned non-recurring costs, was $17.0 million in the third quarter of 2020, which compares to adjusted EBITDA of $14.9 million for the third quarter of 2019. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure).
- Backlog at the end of the third quarter was $428.8 million on a third quarter book-to-bill of 0.47x.
For the full third quarter results, please click here.