Orion Group Holdings, Inc. · NYSE:ORN
Orion — Orion Marine Group — Imperial Capital Global Opportunities Conference 2015
28 slides from Orion's conference presentation, Sep 23, 2015
Slide 1: Imperial Capital – Global Opportunities Conference
Imperial Capital – Global Opportunities Conference September 17, 2015
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
Slide 3: Investment Highlights
Investment Highlights Focuses on Diverse end Unique turnkey Diversification of returning markets with project services through value to improving market capabilities accretive shareholders demand acquisitions 3
Slide 4: Segment Overview
Segment Overview Ticker: ORN (NYSE) Headquarters: Houston, Texas Two Operating Segments Founded: 1994, IPO in 2007 Employees: ~ 2,400 Shares Outstanding: 27.4MM Geographies: Continental United States, Commercial Concrete Heavy Civil Marine Alaska, Canada and the Segment Construction Segment Caribbea
Slide 5: Heavy Civil Marine Construction
Heavy Civil Marine Construction
Slide 6: Extensive Suite of Marine Capabilities
Extensive Suite of Marine Capabilities Marine Transportation • Port Facilities • Bulkheads • Piers • Docks Facility Construction • Wharves • Military Installations • Dry Bulk Terminals • Marinas • Cruise Ship Terminals • Liquid Cargo Terminals • Container Terminals • Marine Construction • Intracoast
Slide 7: Large, Diverse Fleet
Large, Diverse Fleet • Orion operates and maintains a diverse equipment fleet, substantially all of which is owned, that includes the following: • Barges (62) - Spud barges, material barges, deck barges, anchor barges, hopper barges, and fuel barges. These vessels are used to provide work platforms
Slide 8: Strengthening Demand Environment
Strengthening Demand Environment Second Quarter 2015 Bidding Activity • Strong Market Fundamentals Amount Bid Amount Won $320 Million $75 Million • Capital Projects Providing bid opportunities in the private sector • Healthy list of potential bid opportunities from the Corp of Engineers in Q3 2015 T
Slide 9: Attractive End Markets – Private Sector
Attractive End Markets – Private Sector • Recreational Marine – Increase in the number and size of cruise ships in operation has generated demand for substantial port development • Orion currently serves several popular cruise line destinations, including the ports of Miami, Galveston, Tampa, New Or
Slide 10: Panama Canal Expansion
Panama Canal Expansion Gulf and East Coast Ports deepening channels and Panama Canal Expansion expanding facilities to handle larger ships • Expected increases in cargo volume and future demands from larger ships transiting the Panama Canal will require ports along the Gulf Coast and Atlantic Seaboa
Slide 11: Favorable Government Funding Outlook
Favorable Government Funding Outlook US Army Corp of Engineers (USACE) • USACE is the primary funding source for the nation’s waterways • Focused on expanding the usability of the Gulf Intracoastal Waterways • Annual budget: $2.9 Billion (Operations and Maintenance) and $1.7 Billion (Construction) R
Slide 12: Commercial Concrete
Commercial Concrete
Slide 13: Accretive Acquisitions to Enhance Growth
Accretive Acquisitions to Enhance Growth Pursuing strategic growth opportunities via acquisition: Capturing additional market share Diversifying through acquisitions that in existing service lines provide complementary services Dredge Schneider Material Mid-Gulf Industrial Inter-Bay Marine F. Miller
Slide 14: Commercial Concrete Segment
Commercial Concrete Segment • Founded in 1980 and headquartered in Houston, Texas, TAS Commercial Concrete is the second largest Texas-based concrete contractor and provides turnkey services covering all phases of commercial concrete construction TAS Comprehensive, Turnkey Service Offering Dirt Work
Slide 15: Proven, Capable Management Team
Proven, Capable Management Team • TAS’s executive team, led by President and founder Mark Scully, is an experienced group committed to growing the Target with a strong track record of doing so, as evidenced by a 30-year revenue CAGR of 16.0%. Since 2011, TAS has performed exceptionally well and is p
Slide 16: Owned Equipment Fleet
Owned Equipment Fleet • Similar to Orion, TAS owns the majority of its operational equipment, enabling TAS to reduce its dependence on the equipment rental market to provide a full suite of services. TAS’s asset base is comprised of essential equipment that is well maintained and whose useful life g
Slide 17: Long-Term, Diverse Customer Mix
Long-Term, Diverse Customer Mix • TAS has developed a reputation for safely delivering reliable, quality work, that when combined with its leading market position, distinguishes the Target as a premier provider of concrete contracting services • Over 90.0% of TAS’s business is generated through repe
Slide 18: Diversified End Markets With Favorable Trends
Diversified End Markets With Favorable Trends • TAS’s end markets are primarily driven by population growth, which leads to increased investments in Key Operating Areas residential and non-residential construction to provide a larger and more efficient infrastructure • Since 2007, Texas has consiste
Slide 19: Financial Review
Financial Review
Slide 20: Growing Revenue
Growing Revenue Marine Construction Commercial Concrete ($ in mil) ($ in mil) $450 $450 $400 $385.8 $400 $354.5 $350 $350 $300 $292.0 $300 $259.9 $250 $250 $236.2 $195.5 $200 $200 $153.4 $150 $150 $114.6 $100 $100 $50 $50 $0 $0 2011 2012 2013 2014 2011 2012 2013 2014 20
Slide 21: Growing EBITDA
Growing EBITDA Marine Construction Commercial Concrete ($ in mil) ($ in mil) $40 $30 $34.2 $25 $24.2 $35 $30 $20 $18.3 $25 $15 $21.4 10.3% $20 $10 $9.4 9.4% 6.1% $15 $5 8.9% $10 -$1.3 $0 $5.8 6.0% -1.5% $5 $2.9 2.0% -$5 1.1% $0 2011 2012 2013 2014 2011 2012 2013 2014 21
Slide 22: Solid Backlog
Solid Backlog Marine Construction Commercial Concrete $300.0 $300 $243.7 $250.0 $250 $223.0 $215.3 $200.0 $200 Backlog ($ Millions) $184.1 $174.3 $164.5 $145.4 $150.0 $150 $115.2 $100.0 $100 $87.7 $59.8 $50.0 $50 $0.0 $0 Q4'11 Q4'12 Q4'13 Q4'14 Q2'15 Q4'11 Q4'12 Q4'13 Q4'14 Q2'15 22
Slide 23: Compelling Growth Outlook
Compelling Growth Outlook Pursuing acquisitions to enhance diversification and organic growth Expanding market opportunities Strengthening demand environment Robust backlog 23
Slide 24: Investment Highlights
Investment Highlights Focuses on Diverse end Unique turnkey Diversification of returning markets with project services through value to improving market capabilities accretive shareholders demand acquisitions 24
Slide 25: Appendix
Appendix
Slide 26: Reconciliation: EBITDA
Reconciliation: EBITDA Orion Marine Group EBITDA and EBITDA Margin Reconciliations (In thousands, except margin data) Twelve months ended December 31 Three months ended 2011 2012 2013 2014 9/30/2014 12/31/2014 3/31/2015 6/30/2015 Net income (13,114) (11,866) 331 6,877 2,962 5,288 (258) (1,845) Incom
Slide 27: Reconciliation: EBITDA
Reconciliation: EBITDA TAS Commercial Concrete EBITDA and EBITDA Margin Reconciliations (In thousands, except margin data) Twelve months ended December 31 2011 2012 2013 2014 Net income (3,622) 4,143 10,644 14,479 Income tax benefit (1,674) 1,914 4,917 6,689 (loss) Interest expense, net 1,089 1,192
Slide 28: Contact Us
Contact Us Investor Relations Contact Orion Marine Group, Inc., a leading construction company, Drew Swerdlow provides services both on and off the water in the Investor Relations Manager continental United States, Alaska, Canada and the Caribbean Phone: 713-852-6582 Basin through its heavy civil ma
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