Orion Group Holdings, Inc. · NYSE:ORN
Orion — Investor Presentation (August 2024)
23 slides from Orion's investor presentation, Aug 16, 2024
Slide 1: Orion Group Holdings, Inc. Delivering Predictable Excellence
Orion Group Holdings, Inc. Delivering Predictable Excellence August 2024
Slide 2: Disclaimer
DISCLA IMER This presentation contains, and the officers and directors of the Company may from time to time make, may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Exchange Act of 1933, as ame
Slide 3: At a Glance
A T A G LA N CE 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 NYSE:ORN Ticker ~2,400 Employees C O M PA N Y O VERVIEW Marine Transportation facilit
Slide 4: Phase One of Strategic Plan Completed
PHA SE 1 O F STRA TEG IC PLA N CO MPLETED 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 –Bolste
Slide 5: Accomplishments: What We Said We Would Do
2 0 2 3 A CCO MPLISHMEN TS 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
Slide 6: Driving our growth potential
Driving our growth potential Foundation in place, turning full attention to growth PHA SE 2 O F STRA TEG IC PLA N 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 p
Slide 7: Strong Industry Tailwinds
STRO N G IN DUSTRY TA ILW IN DS $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 via expanded Panama Canal require deeper shipping ch
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 SEG MEN T OVERVIEW Orion Marine benefits from high -margin projects with high barriers to entry and consistent ma
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 CO N CRETE SEG MEN T OVERVIEW Improved project margin focus has laid the groundwork for future success • Turnkey concr
Slide 10: Backlog Wins
BA CK LO G W INS $572.3 $439.5 $590.0 $448.8 $762.2 2019 2020 2021 2022 2023 ($ in millions) 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 opp
Slide 11: Experienced Management Team
EXPERIEN CED MA N A G EMEN T TEA M 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 cons
Slide 12: Financial Overview
FINANCIAL OVERVIEW <2ORION
Slide 13: Financial Overview
FIN A N CIA L O V ERV IEW $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 68% 32% Marine Concrete 75% 25% Marine Co
Slide 14: Second Quarter 2024
Q2 2024 Q2 2023 Growth (YoY) Revenue $192.2M $182.5M +5% GAAP EPS ($0.20) ($0.01) N/A Adjusted EBITDA $5.5M $3.7M +49% Adjusted EBITDA Margin 2.9% 2.0% +90 bps SECO N D Q UA RTER 2 0 2 4
Slide 15: Balance Sheet and Liquidity
BA LA N CE SHEET A N D LIQ UIDITY Cash & Cash Equivalents $4.8M Net Debt Outstanding $60.3M Availability on Revolver $16.6M June 30, 2024 Monetized $26 million in sale leaseback transactions in 2023
Slide 16: 2024 Guidance
FY 2024 Revenue $850M - $900M GAAP EPS $(0.14) - $0.01 Adjusted EPS1 $0.07 - $0.20 Adjusted EBITDA $40M - $45M 2024 G UIDAN CE 1 Adjusted EPS excluding share-based compensation
Slide 17: Investment Highlights
IN V ESTMEN T HIG HLIG HTS Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 01. Experienced Management Team Focused on Growth and Financial Performance 02. Large Market Opportunity with Strong Tailwinds and Demand Drivers 03. Diversified Revenue with Blue-Chip
Slide 18: Appendix
APPENDIX <2ORION
Slide 19: Non-GAAP Supplemental Information
NON -G A A P SUPPLEMEN TA L IN FO RMA TIO N Net Income to Adjusted EBITDA Reconciliation (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization. (2) Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for stock-based compensa
Slide 20: Non-GAAP Supplemental Information: Guidance Adjusted EBITDA
NON -G A A P SUPPLEMEN TA L IN FO RMA TIO N Guidance Range - Adjusted EBITDA Reconciliation (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization. (2) Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for stock-based compe
Slide 21: Non-GAAP Supplemental Information: Guidance Adjusted EPS
NON -G A A P SUPPLEMEN TA L IN FO RMA TIO N Guidance Range – Reconciliation of Adjusted EPS (1) Items are taxed discretely using the Company's effective tax rate which differs from the Company’s statutory federal rate primarily due to state income taxes and the non-deductibility of other permanent i
Slide 22: Net Loss to Adjusted 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 11,556 4,352 Depreciation and amortization 6,996 5,631 23,878 24,057 EBITDA (1) 6,458 2,225 1
Slide 23: Thank You!
THANK YOU!
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