Orion Group Holdings, Inc. · NYSE:ORN
Orion — DA Davidson Diversified Industrials & Services Virtual Conference (September 2020)
20 slides from Orion's conference presentation, Sep 22, 2020
Slide 1: DA Davidson Diversified Industrials & Services Virtual Conference
DA Davidson Diversified Industrials & Services Virtual Conference September 22, 2020
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: ~2,700 59% construction segment and its 47% 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 • Institutional developments and expansion • Downstream energy • Structural developments • Bridges and causeways • Recreational developments • Marine infrastructure • Industrial developments • Coastal
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 • 51 spud and material barges • 7 cutter suction dredges • 21 tug and push boats • 1 portable dredge ~400 pieces of • 43 crawler and hydraulic cranes other equipment $2.59 Book Value per Share Estimated Replacement Spud Bar
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 mark
Slide 11: Breadth of Concrete Services
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 pouring, including columns, elevated beams, and structural walls • Industrial – Ware
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 Project Awards
Recent Project Awards Project Segment Location Value Start Date Construction of Multi-use Concrete Texas $30 million Q2’20 Tower Structure Corpus Christi Ship Channel Marine Texas $17 million Q2’20 Port Mansfield Dredging Marine Texas $15 million Q3’20 Deep Hole Dredging Marine Texas $5 million Q3’2
Slide 14: Backlog at Near Record Levels
Backlog at Near Record Levels Concrete Marine $600 $558.5 $528.4 $500 $434.0 $438.6 $400 $360.6 326.9 312.2 ($ in millions) $300 254.9 280.7 177.0 $200 231.6 216.2 $100 183.6 183.7 153.3 $0 2016 2017 2018 2019 Q2’20 14
Slide 15: Expansion In Industrial Sector
Expansion In Industrial Sector Orion Capabilities Service Structural Excavations & Backfill Foundations (Drive, Piles, Pile Caps, Footings, Existing New “ Piers) Form/Concrete/Rebar The industrial sector represents a broad range of Columns/Pipe Supports/Walls opportunities for our company. B
Slide 16: Recent Annual Results
Recent Annual Results ($ in thousands 2017 2018 2019 1H 2020 except EPS data) Contract Revenues $578,553 $520,894 $708,390 $350,333 Operating Income $1,538* ($39,811)** $2,193 $8,449 Adjusted EBITDA $31,070 $24,036 $36,797 $24,861 Adjusted EPS ($0.14) ($0.37) $0.00 $0.12 Operating Cash $34,133 $21,9
Slide 17: Recent Quarterly Results
Recent Quarterly Results ($ in thousands) 1H 2020 1H 2019 Variance Contract Revenues $350,333 $309,090 13% Operating Income $8,449 ($6,600) 228% Adjusted EBITDA $24,861 $13,191 88% Adjusted EBITDA Margin (%) 7.1% 4.3% 280 bps Contract Revenues were up due to: Operating income increased due to: • Inc
Slide 18: Liquidity to Fund Operations
Liquidity to Fund Operations As of June 30, 2020 ($ in millions) Cash and equivalents $10.3 Current Assets $191.4 Working Capital $54.0 Total Assets $371.4 • Conservative Balance Sheet • Low Leverage Current Liabilities $137.5 • Strong Liquidity Position Total Debt $52.0 • Access to Capital Markets
Slide 19: Appendix
Appendix EBITDA/Adjusted EBITDA reconciliation 19
Slide 20: Adj. EBITDA and EBITDA Margin Reconciliation
Adj. EBITDA and EBITDA Margin Reconciliation ($ in thousands) 2012 2013 2014 2015 2016 2017 2018 2019 1H 2020 Net income (loss) ($11,866) $331 $6,877 ($8,060) ($3,620) $400 ($94,422) ($5,359) $4,751 Income tax ($4,640) ($937) $3,175 ($2,519) $1,581 ($4,541) ($12,233) $1,868 $1,357 Interest expense,