Orion Group Holdings, Inc. · NYSE:ORN
Orion — Sidoti Virtual Conference January 2021
20 slides from Orion's conference presentation, Jan 13, 2021
Slide 1: Sidoti Virtual Conference
Sidoti Virtual Conference January 13, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement The matters discussed in this presentation may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking state
Slide 3: Core Values Consistent with Strategy
Core Values Consistent with Strategy We take pride in our personal We are committed to performing workmanship and that of the entire assigned tasks in the most efficient, organization; we are committed to timely and cost effective manner; we ensuring that each task is properly expect employees to sa
Slide 4: Company Overview
Company Overview Orion Group Holdings, Inc., a leading NYSE: ORN Marine Concrete specialty construction company, provides services in the Headquarters: Houston, Texas Infrastructure, Industrial, and Building sectors through its marine # of Employees: ~2,300 56% construction segment and its 46% concr
Slide 5: Investment Highlights
Investment Highlights • Diverse end markets with favorable macro trends • Unique turnkey project capabilities • Specialized fleet of equipment creates barriers to entry and a competitive advantage • Results reflect impact of operational transformation improvements in labor efficiency and equipment u
Slide 6: Attractive Geographic Footprint
Attractive Geographic Footprint = Headquarters 6
Slide 7: Favorable Macro Drivers Across Business Segments
Favorable Macro Drivers Across Business Segments Marine Concrete • Port expansions and maintenance • Distribution center development • Downstream energy • Institutional developments and expansion • Bridges and causeways • Structural developments • Marine infrastructure • Recreational developments •
Slide 8: Marine Segment Capabilities
Marine Segment Capabilities • Port Facility • Bulkheads • Piers • Docks Marine Transportation • Wharves • Military Installations • Dry Bulk Terminals • Marinas Facility Construction • Cruise Ship Terminals • Liquid Cargo Terminals • Container Terminals • Marine Construction • Intracoastal Waterway •
Slide 9: Fleet of Specialized Marine Equipment
Fleet of Specialized Marine Equipment Over 300 Vessels & Pieces of Equipment • 46 spud and material barges • 6 cutter suction dredges • 21 tug and push boats • ~800 pieces of other equipment • 41 crawler and hydraulic cranes $2.45 Book Value per Share Estimated Replacement Spud Barges Value of Over
Slide 10: Commercial Concrete Construction Overview
Commercial Concrete Construction Overview One of the Largest Texas-based Concrete Contractors • Concrete construction primarily driven by population growth • Houston and Dallas/Fort Worth are two of the Top 10 growing metro MSA’s in U.S. • Significant market share in Houston • Expanded to D/FW marke
Slide 11: Breadth of Concrete Services
Ready for Review Breadth of Concrete Services Provides Services Across Three Avenues: • Light Commercial – Horizontally poured concrete, tilt-walls, trenches, rebar installation, and pumping services • Structural – Elevated concrete structures, with columns, elevated beams, walls, and slabs • Indust
Slide 12: High Quality Customer Base
High Quality Customer Base Marine Segment Concrete Segment Federal Government Customers State Government Customers Local Government Customers Private Customers Federal 13% Local 15% Private 2019 2019 State 13% 30% Revenue by Revenue by Customer Customer Private 85% Local 44% 12
Slide 13: Recent Projects Won
Recent Projects Won Project Segment Location Value Start Date Port of New Orleans Marine Louisiana $47 million Q1’20 Construction of Multi-use Concrete Texas $30 million Q2’20 Tower Structure Galveston Harbor Channel Marine Texas $16 million Q1’21 Dredging Port Mansfield Dredging Marine Texas $15 mi
Slide 14: Backlog Levels
Ready for Review Backlog Levels Concrete Marine $600 $558.5 $500 $434.0 $438.6 $428.8 $400 $360.6 326.9 ($ in millions) $300 254.9 241.7 280.7 177.0 $200 231.6 $100 183.6 183.7 187.1 153.3 $0 2016 2017 2018 2019 Q3’20 14
Slide 15: Expansion In Industrial Sector
Expansion In Industrial Sector Orion Capabilities Service Structural Excavations & Backfill Foundations (Drive, Piles, Pile Caps, Footings, Existing New “ Piers) Form/Concrete/Rebar The industrial sector represents a broad range of Columns/Pipe Supports/Walls opportunities for our company. B
Slide 16: Recent Annual Results
Ready for Review Recent Annual Results ($ in thousands 2017 2018 2019 YTD 2020 except EPS data) Contract Revenues $578,553 $520,894 $708,390 $539,766 Operating Income $1,538* ($39,811)** $2,193 $21,534 Adjusted EBITDA $33,373 $26,276 $39,550 $41,862 Adjusted EPS ($0.14) ($0.37) $0.00 $0.36 Operating
Slide 17: Recent Quarterly Results
Recent Quarterly Results ($ in thousands) Q3 2020 Q3 2019 Variance Contract Revenues $189,433 $199,507 (5%) Operating Income $13,085 $6,092 53% Adjusted EBITDA $17,001 $14,854 13% Adjusted EBITDA Margin (%) 9.0% 7.4% 140 bps Contract Revenues were down due to: Operating income increased due to: • De
Slide 18: Liquidity to Fund Operations
Liquidity to Fund Operations As of September 30, 2020 ($ in millions) Cash and equivalents $2.7 Current Assets $206.2 Working Capital $56.8 Total Assets $382.5 • Conservative Balance Sheet • Low Leverage; 1x Current Liabilities $149.4 • Strong Liquidity Position Total Debt $40.6 • Access to Capital
Slide 19: Appendix
Appendix EBITDA/Adjusted EBITDA reconciliation 19
Slide 20: Adj. EBITDA and EBITDA Margin Reconciliation
Adj. EBITDA and EBITDA Margin Reconciliation ($ in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 YTD 3Q20 Net income (loss) ($11,866) $331 $6,877 ($8,060) ($3,620) $400 ($94,422) ($5,359) $16,554 Income tax ($4,640) ($937) $3,175 ($2,519) $1,581 ($4,541) ($12,233) $1,868 $1,660 Interest expense
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