Orion Group Holdings, Inc. · NYSE:ORN
Orion — Orion Marine Group — D.A. Davidson Conference 2012
16 slides from Orion's conference presentation, Sep 11, 2012
Slide 1: Building the Future - D.A. Davidson Conference
Building the Future D A DAVIDSON CONFERENCE D.A. SEPTEMBER 11, 2012
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT The matters discussed in this presentation may make projections and other forward-looking statements regarding, among other things, estimates for the remainder off fiscal f year revenues, gross profit,f gross margin, EBITDA, backlog, projects in negotiation and pending awards,
Slide 3: Leading Heavy Civil Marine Contractor
LEADING HEAVY CIVIL MARINE CONTRACTOR Orion Marine Group specializes in heavy-civil marine construction Operates in shallow water environments (typically <= 50 ft) Services: marine facilities construction (bridges, docks, pipelines, environmental), dredging, specialty services Diverse custom
Slide 4: Financial Strength
FINANCIAL STRENGTH Orion Marine Group has a solid financial background to help drive future growth in markets and projects Conservative balance sheet Solid cash position p Low Debt Access to capital markets $400 million in bonding capacity Strategic long-term focus on growth 4
Slide 5: Bookings Are Holding Steady
BOOKINGS ARE HOLDING STEADY 2010 2011 2012 2.00x 2.00x 1.80x 1 60x 1.60x 1 48 1.48x 1.40x 1.33x 1.20x Bill 1 03x 1.03x Book‐to‐B 0.99x 1.00x 0.80x 0.75x 0.71x 0.68x 0.58x 0 60 0.60x 0.40x 0.32x 0.20x - Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 5
Slide 6: Healthy Backlog Level
HEALTHY BACKLOG LEVEL $300 2010 2011 2012 $255.0 $250 $218.1 $217.3 $215.4 $194.5 $193.7 $200 $ Millions) $164.5 $146.1 $150 $140.5 Backlog ($ $119.8 $100 $50 $0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 6
Slide 7: Maintaining Success Rate
MAINTAINING SUCCESS RATE Dollar amount of projects bid and won during 2nd Quarter of 2012* Amount $310 Million Bid $52 Million 17% Win Rate Amount Won * Per Q2’12 earnings release 7
Slide 8: Challenging Environment Continues
CHALLENGING ENVIRONMENT CONTINUES U Uncertain ce a pace o of Co Corps ps lettings e gs Lack L k off clarity l i on FY2013 b budget d ffor the Corps of Engineers Continued pricing pressure on marine construction jobs 8
Slide 9: Bid Market Outlook Remains High
BID MARKET OUTLOOK REMAINS HIGH We believe there are ample opportunities to continue to grow our market database Market Database Opportunities $6.0 $5.0 $ Billions $4.5 $4.0 $3.5 $3.0 $ 2007 2008 2009 2010 2011 2012 9 Source: Internal Company Database
Slide 10: Waterways Usage Continues to Grow
$ Millions $- $50,000 $100 000 $100,000 $150,000 $200,000 $250,000 J Jan-09 Feb-09 F Mar-09 M Apr-09 A Source: US Census Bureau May-09 M JJun-09 Jul-09 Aug-09 A Sep-09 S Oct-09 O Nov-09 N Dec-09 D JJan-10 Feb-10 F Mar-10 M Apr-10 A May-10 M JJun-10 Exports Jul-10 Aug-10 A Sep-10 S Oct-10 O Imports N
Slide 11: Preparing for the Expansion
PREPARING FOR THE EXPANSION Panama Canal Expansion Gulf and East Coast Ports deepening p g channels and expanding facilities to handle larger ships Recent Survey by the AAPA predicts $22.1 billion in Capital spending by ports along the Gulf Coast alone for 2012 ‐ 2016 11 Source: Panama Canal Aut
Slide 12: Corps Vital to Waterways
CORPS VITAL TO WATERWAYS US Army Corps of Engineers is the primary funding source for the Nations Waterways Annual Fiscal Year Budget $2.5 $2.5 $2.5 $2.5 $2.4 $2.4 $2.3 ns $ Billion $1.7 $1.7 $1.7 $1.6 $1.5 $1.5 $1.4 2007 2008 2009 2010 2011 2012 2013* Operations & Maintenance Construction Source: U
Slide 13: Coastal Restoration
COASTAL RESTROATION RESTORE Act recently signed into law by the President dedicates 80% of fines against BP to go towards coastal restoration in the 5 Gulf Coast States Fines have yet to be levied but are estimated to be between $5 ‐ $20 billion as dictated by the Clean Water Act Will be a lon
Slide 14: Bridges Are in a State of Disrepair
BRIDGES ARE IN A STATE OF DISREPAIR 2009 Infrastructure Report Card CONGRESS PASSES NEW Aviation D TRANSPORTATION BILL Bridges C Dams D Drinkingg Water D‐ Energy D+ 2 YYear, $ 105 billi billion hi highway h bill passed d Hazardous Waste D in June Inland Waterways D‐ Levees D‐ Public Parks and Recr
Slide 15: Summary
SUMMARY Managing Strong Long Building Th Through h Th The Term Market The Downturn Opportunity Future Multiple end-market Position Orion to meet Protect, Manage, drivers for future demand Prepare future growth opportunities 15
Slide 16: D.A. Davidson Conference
Building the Future D A DAVIDSON CONFERENCE D.A. SEPTEMBER 11, 2012