ORN Presents First Quarter 2020 Results
Orion Group Holdings, Inc. (ORN) yesterday reported net income of $2.7 million ($0.09 diluted earnings per share) for the first quarter ended March 31, 2020.
“I want to sincerely thank our team members who are safely working at our project sites, yards, field support offices, and remote locations around the nation and outside the country. Our focus has been to ensure the health and safety of all our people,” stated Mark Stauffer, Orion Group Holdings’ President and Chief Executive Officer.
According to Mr. Stauffer, ORN posted a strong year-over-year improvement in both revenues and profitability in the first quarter, and the company also had a strong book-to-bill, leading to a healthy expansion of the backlog.
“Marine revenues and operating profit were up significantly in the first quarter of 2020, driven by execution related margin gains on several projects in backlog. Also contributing to marine’s year-over-year improvement was increased equipment utilization, which led to higher absorption of fixed costs,” continued Mr. Stauffer.
Backlog of work under contract as of March 31, 2020 was $609.5 million, which compares with backlog under contract at March 31, 2019 of $411.4 million, an increase of 48.2%.
The first quarter 2020 ending backlog was comprised of $362.2 million for the marine segment, and a record $247.3 million for the concrete segment.
Currently, the company has approximately $848 million worth of bids outstanding, including approximately $57 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the first quarter of 2020, of which approximately $28 million pertains to the marine segment and approximately $29 million to the concrete segment.
First Quarter 2020 Highlights
- Contract revenues were $166.6 million, up 16.4% from $143.1 million for the first quarter of 2019.
- Operating income was $4.4 million for the first quarter of 2020 compared to operating loss of $6.2 million for the first quarter of 2019.
- Net income was $2.7 million ($0.09 diluted earnings per share) for the first quarter of 2020 compared to net loss of $7.9 million ($0.27 diluted loss per share) for the first quarter of 2019.
- The first quarter 2020 net income included $0.3 million ($0.01 loss per diluted share) of non-recurring costs and $0.6 million ($0.02 earnings per diluted share) of tax benefit associated with the reduction of certain valuation allowances. First quarter 2020 adjusted net income was $2.4 million ($0.08 diluted earnings per share).
- EBITDA, adjusted to exclude the impact of the aforementioned non-recurring costs, was $12.2 million in the first quarter of 2020, which compares to adjusted EBITDA of $3.1 million for the first quarter of 2019.
- Backlog was $609.5 million on a first quarter book-to-bill of 1.22x.