ORN releases fourth quarter and full year 2021 results

Orion Group Holdings, Inc. (ORN) has reported a net loss of $8.8 million for the fourth quarter ended December 31, 2021.

“Our fourth quarter reflects the lag effects from the COVID-19 pandemic, which reduced the volume of work in our marine business and pressured project margins in our concrete business,” stated Mark Stauffer, Orion’s Chief Executive Officer. “Additionally, the Omicron variant of the COVID-19 virus impacted our operations during the latter part of the quarter.”

He also added that marine segment revenues began recovering during the quarter but were still down significantly year over year.

Mr. Stauffer continued, “That said, we ended the year with backlog up sequentially and up significantly year over year. Fueled by recent awards, the amount of work we won during 2021 was up 27% over the prior year, allowing us to enter 2022 with confidence that revenues will grow, leading to better capacity utilization, overhead absorption, and improved results.”

The company closed the fourth quarter with year-ending backlog of $590.0 million, up 34% from the end of 2020. Within that backlog figure, approximately 75% is due to burn in FY’22.

According to Mr. Stauffer, the recently passed Infrastructure Investment and Jobs Act will provide a long-term tailwind, both directly in the form of funds earmarked for work in the markets, and indirectly as market capacity utilization increases as it is deployed on projects funded through the Act.

At the end of the fourth quarter 2021, ORN had approximately $2.6 billion worth of bids outstanding, including approximately $138 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the fourth quarter of 2021, of which approximately $24 million pertains to the marine segment and approximately $114 million to the concrete segment.

Fourth Quarter 2021 Highlights

  • Operating loss was $8.2 million for the fourth quarter of 2021 compared to operating income of $5.1 million for the fourth quarter of 2020;
  • Net loss was $8.8 million ($0.29 diluted loss per share) for the fourth quarter of 2021 compared to net income of $3.7 million ($0.12 diluted earnings per share) for the fourth quarter of 2020;
  • The fourth quarter 2021 net loss included $1.9 million ($0.06 loss per diluted share) of non-recurring items and $1.6 million ($0.06 loss per diluted share) of tax expense associated with the movement of certain valuation allowances. Fourth quarter 2021 adjusted net loss was $5.3 million ($0.17 diluted loss per share);
  • EBITDA, adjusted to exclude the impact of the aforementioned non-recurring items, was 0.8 million in the fourth quarter of 2021, which compares to adjusted EBITDA of $12.6 million for the fourth quarter of 2020;
  • Backlog at the end of the fourth quarter was $590.0 million on a fourth quarter book-to-bill of 1.11x.

Fourth Quarter and Full Year 2021 Results

Photo: ORN