Orion Group Holdings, Inc. · NYSE:ORN
Orion — D.A. Davidson Conference 2011
21 slides from Orion's conference presentation, Sep 21, 2011
Slide 1: Building the Future
Building the Future D.A. DAVIDSON CONFERENCE SEPTEMBER 21, 2011
Slide 2: A Leading Heavy Civil Marine Contractor
A Leading Heavy Civil Marine Contractor MIKE PEARSON PRESIDENT & CEO
Slide 3: 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 of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending awards, as w
Slide 4: 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 5: Solid Historical Performance
SOLID HISTORICAL PERFORMANCE Revenue EBITDA* Net Income Growth Growth Growth (2006 – 2010) (2006 – 2010) (2006 – 2010) 93% 64% 83% $353 $54 $24 $360 $22 $51 $50 $20 $20 $294 $300 $17 $262 $41 $ Millions $40 $16 $ Millions $ Millions $40 $14 $240 $210 $12 $33 $12 $183 $30 $180 $8 $120 $20 $4 2006 200
Slide 6: Pricing Has Impacted Our Win Rate
PRICING HAS IMPACTED OUR WIN RATE Dollar amount of projects bid and won during 2nd Quarter of 2011 Amount $563 Million Bid $51 Million Amount Won 6
Slide 7: Win Rate Has Pressured Bookings
WIN RATE HAS PRESSURED BOOKINGS Historic Book-to-Bill Ratio 2.5x 2.01x 2.0x Book to Bill Ratio 1.5x 1.40x 1.11x 1.03x 0.99x 1.0x 0.75x 0.71x 0.64x 0.58x 0.5x 0.32x 0.0x Q1’09 Q2’09 Q3’09 Q4’09 Q1’10 Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 7 Please See GAAP to Non GAAP Reconciliation at end of this presentatio
Slide 8: Challenging Environment Continues
CHALLENGING ENVIRONMENT CONTINUES Anemic GDP growth Economic uncertainties Continued pricing pressure Pace of Federal lettings has been slow 8
Slide 9: The Path Forward
THE PATH FORWARD Protect the Intrinsic Protect Value of the Company The Plan Manage Manage through the downturn Forward Prepare for the future Prepare and market opportunities ahead 9
Slide 10: Bid Market Outlook Has Grown
BID MARKET OUTLOOK HAS GROWN 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 10 Source: Internal Company Database
Slide 11: Waterways Continues to Grow
WATERWAYS CONTINUES TO GROW Total Waterborne Commerce of the U.S. 1970-2008 3,000 $50,000.00 2,800 $45,000.00 Millions of Short Tons (Total Imports & Exports) 2,600 $40,000.00 2,400 $35,000.00 GDP/Capita (2005 Dollars) 2,200 $30,000.00 2,000 $25,000.00 1,800 $20,000.00 1,600 $15,000.00 1,400 $10,000
Slide 12: Panama Canal Widening
PANAMA CANAL WIDENING Expansion Facts Estimated Completion: 2014-2015 New locks will be able to handle ships with drafts up to 50 ft Will nearly triple the current cargo capacity that can transit 12,600 TEU 4,800 TEU 12 Source: Panama Canal Authority
Slide 13: Army Corps Vital To Waterways
ARMY CORPS VITAL TO WATERWAYS Army Corps of Engineers is the primary funding source for the Nations Waterways Annual Fiscal Year Budget $2.5 $2.5 $2.5 Proposed $2.4 $2.3 $2.3 $ Billions $1.7 $1.7 $1.6 $1.5 $1.5 $1.4 $1.0 2007 2008 2009 2010 2011 2012 Operations & Maintenance Construction Emergency F
Slide 14: Coastal Restoration
COASTAL RESTROATION 14 Source: Coastal Protection and Restoration Authority Louisiana 2012 Master Plan
Slide 15: Bridges Are in a State of Disrepair
BRIDGES ARE IN A STATE OF DISREPAIR 2009 Infrastructure Report Card CONGRESS CURRENTLY Aviation D DEBATING NEW Bridges C Dams D TRANSPORTATION BILL Drinking Water D- Energy D+ Hazardous Waste D Current Bill extended for 4 months Inland Waterways D- Levees D- Public Parks and Recreation C- Rail C-
Slide 16: Summary
SUMMARY Managing Strong Long Building Through The Term Market The Downturn Opportunity Future Multiple end-market Position Orion to meet Protect, Manage, drivers for future demand Prepare future growth opportunities 16
Slide 17: GAAP to Non-GAAP
A Leading Heavy Civil Marine Contractor GAAP TO NON-GAAP
Slide 18: GAAP to Non-GAAP
GAAP TO NON-GAAP EBITDA and EBITDA Margin This presentation includes the financial measures “EBITDA” and “EBITDA margin”. These measurements may be deemed “non-GAAP financial measures” under rules of the Securities and Exchange Commission, including Regulation G. The non-GAAP financial information m
Slide 19: GAAP to Non-GAAP
GAAP TO NON-GAAP Earnings Before Interest, Taxes, Depreciation and Amortization, and deferred financing costs, (“EBITDA”). Full Year 2006, 2007, 2008, 2009, 2010 EBITDA (in Thousands) 2006 2007 2008 2009 2010 Net income $ 12,403 $ 17,399 $ 14,475 $ 20,030 $ 21,882 Income tax expense 7,040 10,178 7,2
Slide 20: GAAP to Non-GAAP
GAAP TO NON-GAAP Bookings = Backlog Ending + Revenue + (Backlog Beginning) Book-to-Bill Ratio = Bookings / Revenue Quarterly 2009, 2010, 2011 Book-to-Bill Ratio (in Millions) Q12009 Q22009 Q32009 Q42009 Q12010 Q22010 Q32010 Q42010 Q12011 Q22011 Backlog Ending $ 134.1 $ 141.8 $ 224.3 $ 252.9 $ 255.0
Slide 21: Building the Future
Building the Future D.A. DAVIDSON CONFERENCE SEPTEMBER 21, 2011