Orion Group Holdings, Inc. · NYSE:ORN
Orion — NobleCon19 (December 2023)
20 slides from Orion's conference presentation, December 2023
Slide 1: Investor Presentation
Investor Presentation NobleCon19 -- December 2023
Slide 2: Disclaimer
Disclaimer This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are su
Slide 3: Orion at a Glance
Orion at a Glance Orion is a leading specialty construction company in the U.S., Canada and Caribbean Basin Company Overview Key Statistics • Marine: $748.3mm $22.9mm • Engineering & design services 2022 2022 Revenue Adj. EBITDA • Transportation facility & infrastructure construction • Dredging for
Slide 4: Three Takeaways
Three Takeaways 1 2 3 EXPERIENCED VITAL PROVIDER OF SIGNIFICANT UPSIDE MANAGEMENT TEAM MARINE AND POTENTIAL FOCUSED ON CONCRETE SERVICES IMPROVING TO CRITICAL Changes made in the last FINANCIAL INFRASTRUCTURE year have laid the AND COMMERCIAL foundation for accelerated, PERFORMANCE profitable growth
Slide 5: Compelling Investment Opportunity
Compelling Investment Opportunity 1 Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 6 2 Significant Upside Potential: Experienced New Strong demand in both Management Team concrete and marine Focused on Improved segments Financial Performance 5 3 3-Point Stra
Slide 6: Mission Critical Specialty Construction Provider with Sustainable Advantages
1 Mission Critical Specialty Construction Provider with Sustainable Advantages Market Credibility Market Leader Critical Service Provider High-Barriers to Entry ► Trusted provider with ► Leading specialty concrete ► Leading specialty ► Jones Act prohibits decades of operating constructor in attracti
Slide 7: Deep and Talented Management Team Focused on Operational Transformation
2 Deep and Talented Management Team Focused on Operational Transformation Travis Boone, PE Scott Thanisch Chief Executive Officer Chief Financial Officer 30 30 Years of Industry Experience Years of Industry Experience • Leadership and management experience across the civil, utility / • Multi-discipl
Slide 8: Large Market Opportunity with Strong Tailwinds and Demand Drivers
3 Large Market Opportunity with Strong Tailwinds and Demand Drivers Favorable drivers across business segments include the Infrastructure Investment & Jobs Act, with a regional focus in rapidly growing regions and other key developments Orion’s Core Markets(1) Marine Growth Drivers U.S. Navy expansi
Slide 9: Marine Segment Overview
Marine Segment Overview Orion Marine benefits from high-margin projects with high barriers of entry and consistent maintenance demand Overview Marine Revenue & Adj EBITDA Margin ($ in millions) • Services the infrastructure sector to carry out construction, $369.1 $388.2 design and specialty service
Slide 10: Concrete Segment Overview
Concrete Segment Overview Improved project margin focus has laid the groundwork for future success Overview Concrete Revenue & Adj EBITDA Margin ($ in millions) • Provides turnkey concrete construction services including place and finish, site work, layout, forming, rebar $409.1 • Focusied on Dallas
Slide 11: Diversified Revenue with Industry Leaders
4 Diversified Revenue with Industry Leaders Long-tenured relationships with blue-chip clients across federal, state, local and private customers in both the marine and concrete segments High Quality Customer Base Marine Concrete 1% 5% 34% 46% Revenue by Revenue by Customer Customer Type(1) Type(1) 2
Slide 12: Clearly Defined Plan to Deliver Enhanced Growth and Returns
5 Clearly Defined Plan to Deliver Enhanced Growth and Returns Expand Concrete business Bidding Discipline into Public Sector Construction Focus on high-quality projects at healthier margins New market for Concrete that diversifies portfolio from only relying on developers Fleet & Systems Upgrade Seg
Slide 13: Execution Against Three-Point Strategic Plan
Execution Against Three-Point Strategic Plan Orion is capitalizing on industry dynamics and refocusing the business on high-margin services and projects 3 Investment and Resources • Secured $103mm ABL 2 Significant Contract credit facility; monetized Wins - Improved $25mm of non-core assets Business
Slide 14: Financial Overview
{ORION Financial Overview
Slide 15: Financial Overview
Financial Overview Annual Revenue Adj EBITDA ($ in millions) ($ in millions) $708.4 $709.8 $748.3 $54.4 $601.4 $39.6 $22.9 $17.3 2019 2020 2021 2022 2019 2020 2021 2022 Revenue by Segment Adj EBITDA by Segment Backlog by Segment 45% 33% 48% 55% 52% 67% Marine Concrete Marine Concrete Marine Concrete
Slide 16: Third Quarter Financial Results
Third Quarter Financial Results Contract revenues: $168.5 million, down 8% from 3Q22 Operating income increased to $2.6 million from $2.0 million in 3Q22 Net loss was $0.7 million vs. net income of $0.3 million in 3Q22 Adjusted EPS was $0.02 - the same as in 3Q22 Adjusted EBITDA improved to $9.4 mil
Slide 17: Balance Sheet and Liquidity
Balance Sheet and Liquidity September 30, 2023 Cash & Cash Net Debt Availability on Equivalents: Outstanding Credit Facility $3.8M $50.3M $31.7M Significant increase in liquidity from refinancing and non-core asset monetization In May 2023, Orion closed a new 3-year $103mm senior secured asset-based
Slide 18: Compelling Investment Opportunity
Compelling Investment Opportunity 1 Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 6 2 Significant Upside Potential: Experienced New Strong demand in both Management Team concrete and marine Focused on Improved segments Financial Performance 5 3 3-Point Stra
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Supplemental Information
Non-GAAP Supplemental Information Net Income to Adjusted EBITDA Reconciliation Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Net loss $ (660) $ 247 $ (13,510) $ (7,663) Income tax (benefit) expense (123) (247) 475 396 Interest expense, net 3,393 1,179 7,584 2,8