Orion Group Holdings, Inc. · NYSE:ORN
Orion — Q1 2024 Earnings Presentation
20 slides from Orion's earnings presentation, May 2024
Slide 1: Orion Group Holdings, Inc. Delivering Predictable Excellence
Orion Group Holdings, Inc. Delivering Predictable Excellence May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains, and the officers and directors of the Company may from time to time make, statements that are considered forward looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are su
Slide 3: Company Overview: At a Glance
AT A GLANCE Orion is a leading marine and specialty construction company in the U.S., Canada and Caribbean Basin SERVICES KEY STATISTICS C O M PAN Y O VERVIEW Marine Concrete Transportation facility & infrastructure construction; Commercial, structural, and industrial $711.8M $23.8M 2023 Revenue 202
Slide 4: Phase 1 of Strategic Plan Completed
PHASE 1 O F STRATEGIC PLAN CO MPLETED 0 1. 0 2. 0 3. Improved profitability Strengthened business Fortified financial flexibility to in the concrete business development to drive growth optimize growth potential opportunities Implemented minimum bid margins – Pursuing Recruited high-caliber talent –
Slide 5: 2023 Accomplishments
2 0 2 3 ACCO MPLISHMENTS Phase 1 of strategic plan completed • Returned the Concrete segment to profitability FINANCIALS • Significant wins: o $435M contract to build dry dock in Pearl Harbor, HI (largest win in company history) o $120M contract to build dry dock in Grand Bahama Shipyard $711.8 M $
Slide 6: Phase 2 of Strategic Plan
PHASE 2 O F STRATEGIC PLAN Driving our growth potential Foundation in place, turning Demand for specialized full attention to growth Marine construction exceeds supply In a little over a year, we almost quadrupled our pipeline of opportunity from $3B to over $11B Massive opportunities in marine cons
Slide 7: Strong Industry Tailwinds
STRO NG INDUSTRY TAILWINDS 0 1. 0 2. 0 3. 0 4. $1.2 trillion Infrastructure Port expansion and U.S. Navy expansions in Coastal rehabilitation Act maintenance the Pacific Increased disaster recovery from regional weather events, environmental Multi-year catalyst for public sector Larger ships passing
Slide 8: Marine Segment Overview
CONSTRUCTION Marine Revenue & Adj EBITDA Margin MARINE $369.1 $388.2 $395.9 SEGMENT $339.2 $263.9 ($ in millions) 12.3% 10.4% O VERVIEW 9.3% 8.1% 5.2% 2019 2020 2021 2022 2023 Orion Marine benefits from high-margin projects with high DREDGING Marine Revenue Adj EBITDA Margin barriers of entry and co
Slide 9: Concrete Segment Overview
Concrete Revenue & Adj EBITDA Margin CO NCRETE LIGHT COMMERCIAL $409.1 SEGMENT $339.3 $337.4 $321.8 $315.9 ($ in millions) O VERVIEW 0.3% 2.1% -1.2% -2.1% 1.0% 2019 2020 2021 2022 2023 Improved project margin focus Concrete Revenue Adj EBITDA Margin has laid the groundwork for STRUCTURAL future succ
Slide 10: Backlog and Wins
BACKLO G WINS $435M $120M $762.2 $590.0 contract (largest in contract to build dry dock in ($ in millions) $572.3 company history) to build Grand Bahama Shipyard dry dock in Pearl Harbor, HI $439.5 $448.8 Record Backlog Entering 2024 2022 vs. 2023 $756.6M $80M Backlog as of 3/31/24 contract for Port
Slide 11: Deep and Talented Management Team
DEEP AND TALENTED MANAGEMENT TEAM Travis Boone, PE Scott Thanisch Chip Earle Chief Executive Officer Chief Financial Officer General Counsel impressive legal, compliance and Leadership and management Multi-disciplinary finance risk management background. experience in civil, utility/pipeline, experi
Slide 12: Financial Overview
FINANCIAL OVERVIEW <2ORION
Slide 13: Financial Overview
FINANCIAL O VERVIEW Annual Revenue $748.3 $708.4 $709.8 $711.8 $601.4 ($ in millions) Revenue by Segment Adj EBITDA by Segment Backlog by Segment 2019 2020 2021 2022 2023 23% 25% 34% Adj EBITDA 66% $54.4 77% 75% $39.6 ($ in millions) $22.9 $23.8 $17.3 Marine Concrete Marine Concrete Marine Concrete
Slide 14: First Quarter 2024
FIRST Q UARTER 2 0 2 4 Q1 2024 Q1 2023 Growth (YoY) Revenue $160.7M $159.2M +1% GAAP EPS ($0.19) ($0.39) +51% Adjusted EBITDA $4.1M ($4.1M) +199% Adjusted EBITDA Margin 2.5% (2.6%) +510 bps
Slide 15: Balance Sheet and Liquidity
BALANCE SHEET AND LIQ UIDITY March 31, 2024 Cash & Cash Equivalents Net Debt Outstanding Availability on Revolver $4.6M $37.5M $28.1M We amended our credit agreement to lower our minimum fixed charge coverage ratio covenant to one-to-one for the remainder of 2024 and reduce our June 30 prepayment fr
Slide 16: 2024 Guidance
2 0 2 4 GUIDANCE FY 2024 Revenue $860M - $950M GAAP EPS $0.00 - $0.15 Adjusted EPS $0.16 - $0.33 Adjusted EBITDA $45M - $50M
Slide 17: Investment Highlights
INVESTMENT HIGHLIGHTS 0 1. 0 2. 0 3. Mission Critical Specialty Experienced Management Large Market Opportunity Construction Provider with Team Focused on Improved with Strong Tailwinds and Sustainable Competitive Financial Performance Demand Drivers Advantages 0 4. 0 5. 0 6. Diversified Revenue wit
Slide 18: Appendix
APPENDIX
Slide 19: Non-GAAP Supplemental Information
NO N-GAAP SUPPLEMENTAL INFO RMATIO N Net Income to Adjusted Operating EBITDA Reconciliation Three months ended March 31, 2024 2023 Net loss $ (6,057) $ (12,595) Income tax (benefit) expense (352) 640 Interest expense, net 3,357 1,605 Depreciation and amortization 6,020 5,446 EBITDA (1) 2,968 (4,904)
Slide 20: Thank You!
THANK YOU!