Orion Group Holdings, Inc. (ORN), one of the leading dredging companies in the US, yesterday reported net income of $0.9 million for the first quarter ended March 31, 2021.
According to Mark Stauffer, Orion’s Chief Executive Officer, the results for the first quarter were in-line with the company’s expectations. “First quarter results reflect the impact of the historic winter storm that affected our Texas operations, causing work on Texas projects in both segments, including for dredging projects, to stop for up to ten days. This reduced revenue for the quarter by approximately $8.2 million and lowered earnings per share by approximately $0.03.”
“Also, worth noting was the year-over-year EBITDA comparison in our marine segment wherein the first quarter of 2020 was up as a result of execution related margin gains on several large projects,” stated Mark Stauffer.
Consolidated Results for First Quarter 2021 Compared to First Quarter 2020
- Contract revenues were $153.3 million, down 8.0% as compared to $166.6 million. The decrease was primarily driven by the severe winter storm and the timing and mix of projects in the marine segment in the prior period.
- Gross profit was $15.5 million, as compared to $19.8 million. Gross profit margin was 10.1%, as compared to 11.9%. The decrease in gross profit dollars and percentage was primarily driven by winter weather related decreases in utilization.
- Selling, General, and Administrative expenses were $14.6 million, as compared to $15.9 million. As a percentage of total contract revenues, SG&A expenses remained flat. The decrease in SG&A dollars was driven in part by reduced business development, based on timing of project pursuits, and travel costs in the current year period.
- Operating income was $2.1 million as compared to $4.4 million. The decrease in operating income in the first quarter of 2021 reflects the aforementioned factors above.
- EBITDA was $8.6 million, representing a 5.6% EBITDA margin, as compared to EBITDA of $11.4 million, or a 6.8% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the first quarter of 2021 was $9.5 million, representing a 6.2% EBITDA margin.
Backlog of work under contract as of March 31, 2021, was $364.8 million, which compares with backlog under contract as of March 31, 2020, of $591.9 million.
The first quarter 2021 ending backlog was comprised of $154.8 million for the marine segment, and $210.0 million for the concrete segment.
At the end of the first quarter 2021, the company had approximately $1.9 billion worth of bids outstanding, including approximately $134 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the first quarter of 2021, the highest reported level in over four quarters, of which approximately $78 million pertains to the marine segment and approximately $56 million to the concrete segment.
For the full First Quarter 2021 results, please click here.