Orion Group Holdings, Inc. · NYSE:ORN
Orion — Investor Presentation (March 2024)
20 slides from Orion's investor presentation, Mar 25, 2024
Slide 1: Orion Group Holdings, Inc. Delivering Predictable Excellence
Orion Group Holdings, Inc. Delivering Predictable Excellence March 2024
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: At a Glance
AT A GLANCE Orion is a leading marine and specialty construction company in the U.S., Canada and Caribbean Basin KEY STATISTICS $711.8M 2023 Revenue $23.8M 2023 Adj. EBITDA 1994 Founded Houston, TX Headquarters ORN(NYSE) Ticker ~2,400 Employees COMPANY OVERVIEW Marine Transportation facility & infra
Slide 4: Phase of Strategic Plan Completed
PHASE 1 OF STRATEGIC PLAN COMPLETED Improved profitability in the concrete business Strengthened business development to drive growth Fortified financial flexibility to optimize growth potential opportunities Implemented minimum bid margins – Pursuing work with strong value proposition –Bolstering m
Slide 5: 2023 Accomplishments
2023 ACCOMPLISHMENTS FINANCIALS $711.8M 2023 Revenue $23.8M 2023 Adj. EBITDA GAAP EPS Loss of $0.55 Adjusted EPS Loss of $0.35 per share per diluted share Phase 1 of strategic plan completed • Returned the Concrete segment to profitability • Significant wins: o $435M contract to build dry dock in Pe
Slide 6: Driving our growth potential: Phase 2 of Strategic Plan
Driving our growth potential Foundation in place, turning full attention to growth PHASE 2 OF STRATEGIC PLAN Demand for specialized Marine construction exceeds supply Strategic M&A/Geographic expansion Build out IT capabilities for greater efficiency Integrating all business units on a single platfo
Slide 7: Strong Industry Tailwinds
STRONG INDUSTRY TAILWINDS $1.2 trillion Infrastructure Act 01. Multi-year catalyst for public sector projects such as transportation funding, ports, waterways, water infrastructure and bridges. Port expansion and maintenance 02. Larger ships passing through the expanded Panama canal demand larger po
Slide 8: Marine Segment Overview
$340.7 $202.6 $376.9 $216.7 $602.5 2019 2020 2021 2022 2023 $369.1 $388.2 $263.9 $339.2 $395.9 10.4% 12.3% 8.1% 9.3% 5.2% 2019 2020 2021 2022 2023 Marine Revenue Adj EBITDA Margin MARINE SEGMENT OVERVIEW Orion Marine benefits from high -margin projects with high barriers of entry and consistent main
Slide 9: Concrete Segment Overview
$231.6 $236.9 $213.1 $232.1 $159.7 2019 2020 2021 2022 2023 $339.3 $321.8 $337.4 $409.1 $315.9 0.3% 2.1% -1.2% -2.1% 1.0% 2019 2020 2021 2022 2023 Concrete Revenue Adj EBITDA Margin CONCRETE SEGMENT OVERVIEW Improved project margin focus has laid the groundwork for future success • Provides turnkey
Slide 10: Backlog Wins
BACKLOG WINS $572.3 $439.5 $590.0 $448.8 $762.2 2019 2020 2021 2022 2023 ($ in millions) +70% 2022 vs. 2023 Record Backlog Entering 2024 $435M contract (largest in company history) to build dry dock in Pearl Harbor, HI $120M contract to build dry dock in Grand Bahamas shipyard Quadrupled pipeline op
Slide 11: Deep and Talented Management Team
DEEP AND TALENTED MANAGEMENT TEAM Travis Boone, PE Chief Executive Officer Leadership and management experience in civil, utility/pipeline, commercial building and construction industries. Former regional Chief Executive of AECOM Ardell Allred Executive Vice President Orion Concrete Group Held const
Slide 12: Financial Review
Financial Review
Slide 13: Financial Overview
FINANCIAL OVERVIEW $708.4 $709.8 $601.4 $748.3 $711.8 2019 2020 2021 2022 2023 Annual Revenue ($ in millions) $39.6 $54.4 $17.3 $22.9 $23.8 2019 2020 2021 2022 2023 Adj EBITDA ($ in millions) Revenue by Segment Adj EBITDA by Segment Backlog by Segment 56% 44% Marine Concrete 79% 21% Marine Concrete
Slide 14: Fourth Quarter 2023
Q4 2023 Q4 2022 Growth (YoY) Revenue $201.6M $196.2M +3% GAAP EPS ($0.13) ($0.15) +13% Adjusted EBITDA $14.8M $3.2M +366% Adjusted EBITDA Margin 7.3% 1.6% +570 bps FOURTH QUARTER 2023
Slide 15: Balance Sheet and Liquidity
BALANCE SHEET AND LIQUIDITY Cash & Cash Equivalents $30.9M Net Debt Outstanding $37.2M Availability on Credit Facility $47.7M December 31, 2023 On December 1, 2023, Orion and White Oak amended Orion’s credit facility to extend the maturity date for the $15.0 million pre-payment, and then on February
Slide 16: 2024 Outlook
Q1 2024 FY 2024 Revenue $170M - $190M $860M - $950M GAAP EPS ($0.33) – ($0.20) $0.00 - $0.15 Adjusted EPS ($0.29) – ($0.16) $0.16 - $0.33 Adjusted EBITDA $0M - $4M $45M - $50M 2024 OUTLOOK • Revenue and EBITDA lower in Q1 due to normal seasonality and to delays on two major projects, expected to be
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 01. Experienced Management Team Focused on Improved Financial Performance 02. Large Market Opportunity with Strong Tailwinds and Demand Drivers 03. Diversified Revenue with Blue-Chip and Go
Slide 18: Appendix
APPENDIX {2ORION
Slide 19: Non-GAAP Supplemental Information
NON-GAAP SUPPLEMENTAL INFORMATION Net Income to Adjusted Operating EBITDA Reconciliation Three months ended Year ended December 31, December 31, 2023 2022 2023 2022 Net loss $ (4,365) $ (4,949) $ (17,875) $ (12,612) Income tax (benefit) expense (145) 33 330 429 Interest expense, net 3,972 1,510 11,5
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