Orion Group Holdings, Inc. · NYSE:ORN
Orion — Orion Marine Group — D.A. Davidson 8th Annual E&C Conference (2009)
39 slides from Orion's conference presentation, 2009
Slide 1: A Leading Heavy Civil Marine Contractor
A Leading Heavy Civil Marine Contractor D.A. DAVIDSON 8TH ANNUAL E&C CONFERENCE
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 of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending awards, as w
Slide 3: Overview
OVERVIEW Leading heavy civil marine infrastructure contractor in the U.S. Focused on near shore / shallow water - “brown water” Services Broad range of marine construction capabilities Maintenance, repair, and inspection services Dredging services Customers Federal, state, municipal
Slide 4: An Impressive Performance Record
AN IMPRESSIVE PERFORMANCE RECORD 158% 170% 197% $300 $50 $20 $262 $17 $41 $40 $240 $40 $16 $14 $210 $33 $183 $12 $180 $167 $30 $27 $12 $11 $141 $22 $120 $120 $20 $17 $8 $5 $5 $60 $10 $4 $0 $0 $0 2005 2006 2007 2008 YTD** YTD ** 2005 2006 2007 2008 YTD** YTD** 2005 2006 2007 2008 YTD** YTD** 2008 200
Slide 5: Leading Industry EBITDA Margin
LEADING INDUSTRY EBITDA MARGIN Full Year 2008 EBITDA Margin* 15.8% 16% 14% 13.3% Group Average: EBITDA Margin Percentage 12% 9.2% 10.8% 10.3% 10% 9.7% 9.5% 8% 6.0% 5.5% 6% 4% 1.8% 2% 0% ORN FWLT MTRX GVA STRL GLDD JEC FLR CBI * Please see reconciliation at the end of this presentation 5
Slide 6: 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 Recently raised $92 million in a secondary offering $400 million in bonding capacity Strategic long-term focus on growth
Slide 7: Diverse Geographic Footprint
DIVERSE GEOGRAPHIC FOOTPRINT Covering the Gulf Coast, Atlantic Seaboard and Caribbean Basin 7
Slide 8: Core Strengths
A Leading Heavy Civil Marine Contractor CORE STRENGTHS THE ROAD AHEAD
Slide 9: Foundation For Success
FOUNDATION FOR SUCCESS Process Philosophy Maximize asset utilization Project Selection Demand a highly specialized marine fleet Remain inside the Company’s risk tolerance High degree of self-performance Utilize management expertise to build accurate precise bids Bidding Reflect the true
Slide 10: The Systems To Make It Happen
THE SYSTEMS TO MAKE IT HAPPEN State of the art scalable systems in place for unified bidding, project execution, and project accounting Project Life Cycle Custom Reporting Estimation ® Microsoft Solomon® Forecasting Scheduling Real-Time Project Management Microsoft Solomon® Financial Project Reporti
Slide 11: Good Market Visibility
GOOD MARKET VISIBILITY Visibility Matrix Indicators of general market trends and actions Market Drivers such as Port Expansion and WRDA that will lead to project development Project or event level information that can be Project Tracking quantified at some level for price and work scope Prospect
Slide 12: The Road Ahead
A Leading Heavy Civil Marine Contractor CORE STRENGTHS THE ROAD AHEAD
Slide 13: Multiple Diverse End Markets
MULTIPLE DIVERSE END MARKETS Port Expansion & Maintenance Bridges & Causeways Marine Infrastructure Cruise Industry Department of Defense Oil & Gas Industry Coastal Protection & Reclamation Hurricane Restoration & Repair Environmental Remediation 13
Slide 14: Good Future Growth Drivers
GOOD FUTURE GROWTH DRIVERS Port Expansion Over $10B in planned port expansion due to Panama Canal Expansion Bridge Construction $4.5B in planned bridge expenditures in 2009 under SAFETEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways H
Slide 15: Beaumont Port Expansion – Texas
BEAUMONT PORT EXPANSION – TEXAS 15
Slide 16: Beaumont Port Expansion – Texas
BEAUMONT PORT EXPANSION – TEXAS 16
Slide 17: Port Expansion – Texas
PORT EXPANSION – TEXAS 17
Slide 18: Port Expansion – Texas
PORT EXPANSION – TEXAS 18
Slide 19: Port Expansion – Texas
PORT EXPANSION – TEXAS 19
Slide 20: Good Future Growth Drivers
GOOD FUTURE GROWTH DRIVERS Port Expansion Over $10B in planned port expansion due to Panama Canal Expansion Bridge Construction $4.5B in planned bridge expenditures in 2009 under SAFETEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways H
Slide 21: Belleair Causeway - Florida
BELLEAIR CAUSEWAY - FLORDIA 21
Slide 22: Belleair Causeway - Florida
BELLEAIR CAUSEWAY - FLORDIA 22
Slide 23: Sebastian River Bridge - Florida
SEBASTIAN RIVER BRIDGE - FLORIDA 23
Slide 24: US19 Bridge - Florida
US19 BRIDGE - FLORIDA 24
Slide 25: Good Future Growth Drivers
GOOD FUTURE GROWTH DRIVERS Port Expansion Over $10B in planned port expansion due to Panama Canal Expansion Bridge Construction $4.5B in planned bridge expenditures in 2009 under SAFETEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways H
Slide 26: Dredging Activities - All Markets
DREDGING ACTIVITIES - ALL MARKETS 26
Slide 27: Good Future Growth Drivers
GOOD FUTURE GROWTH DRIVERS Port Expansion Over $10B in planned port expansion due to Panama Canal Expansion Bridge Construction $4.5B in planned bridge expenditures in 2009 under SAFETEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways H
Slide 28: Hurricane Repair – Texas
HURRICANE REPAIR – TEXAS 28
Slide 29: Good Future Growth Drivers
GOOD FUTURE GROWTH DRIVERS Port Expansion Over $10B in planned port expansion due to Panama Canal Expansion Bridge Construction $4.5B in planned bridge expenditures in 2009 under SAFETEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways H
Slide 30: Bayport Cruise Terminal – Texas
BAYPORT CRUISE TERMINAL – TEXAS 30
Slide 31: Cruise Pier – Turks & Caicos
CRUISE PIER – TURKS & CAICOS 31
Slide 32: Cruise Ship Pier – Haiti
CRUISE SHIP PIER – HAITI 32
Slide 33: Continue To Execute Growth Strategy
CONTINUE TO EXECUTE GROWTH STRATEGY Remain opportunistic with regard to strategic opportunities in key Pursue Strategic markets Acquisitions Continue Organic Growth Pursue organic and Greenfield growth opportunities in key markets Reinvest in Continue to grow fleet through the purchase and Core Busi
Slide 34: Why ORN?
WHY ORN? Industry Strong Anticipated Leader Performance Growth Strong EBITDA and Multiple end-market #3 Heavy Civil Marine Revenue growth drivers for Contractor* continued growth *Source: ENR Source Book 2008 excluding GLDD 34
Slide 35: GAAP To Non-GAAP
A Leading Heavy Civil Marine Contractor GAAP TO NON-GAAP
Slide 36: 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 37: GAAP To Non-GAAP
GAAP TO NON-GAAP Earnings Before Interest, Taxes, Depreciation and Amortization, and deferred financing costs, (“EBITDA”). Full Year 2003, 2004, 2005, 2006, 2007, 2008 EBITDA Predecessor Successor January 1 October 14 Year Ended to to Year Ended December 31, October 13, December 31, December 31, (in
Slide 38: GAAP To Non-GAAP
GAAP TO NON-GAAP Earnings Before Interest, Taxes, Depreciation and Amortization, and deferred financing costs, (“EBITDA”). EBITDA Margin = Period EBITDA / Period Revenue Full Year 2008 EBITDA Full Year 2008 (January 1, 2008 - December, 2008) (In Thous ands ) ORN FWLT MTRX GVA STRL GLDD JEC FLR CBI N
Slide 39: D.A. Davidson 8th Annual E&C Conference
A Leading Heavy Civil Marine Contractor D.A. DAVIDSON 8TH ANNUAL E&C CONFERENCE
Orion Marine Group — D.A. Davidson 8th Annual E&C Conference (2009) on 6ix