Orion Group Holdings, Inc. · NYSE:ORN
Orion — Orion Marine Group — FBR Capital Markets Fall Investor Conference 2009
23 slides from Orion's conference presentation, November 2009
Slide 1: FBR Capital Markets Fall Investor Conference
A Leading Heavy Civil Marine Contractor FBR CAPITAL MARKETS FALL INVESTOR CONFERENCE
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT The matters discussed in this presentation may make projections and other forward-looking g statements regarding, g g, among g other things, g , estimates for the remainder of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending
Slide 3: A Different Kind of Company
A DIFFERENT KIND OF COMPANY Recognized single source turn-key heavy civil marine construction solutions and specialty services provider Solid growth with diversified end markets Strong St financial fi i l position iti to t supportt organic i growth th 3
Slide 4: An Impressive Performance Record
AN IMPRESSIVE PERFORMANCE RECORD 158% 170% 197% $300 $262 $20 $50 $17 $240 $222 $41 $210 $40 $40 $16 $40 $14 $183 $ $183 $ $180 $167 $33 $12 $12 $11 $30 $27 $120 $22 $8 $20 $5 $5 $60 $4 $10 $0 $0 $0 2005 2006 2007 2008 YTD YTD 2005 2006 2007 2008 YTD YTD 2008 2009 2005 2006 2007 2008 YTD YTD 2008 20
Slide 5: Leading Industry EBITDA Margin
LEADING INDUSTRY EBITDA MARGIN Full Year 2008 EBITDA Margin* 15.8% 16% 14% 13.3% Group Average: ge 12% 9 2% 9.2% EBITDA Marrgin Percentag 10.8% 10.3% 10% 9.7% 9.5% 8% 6.0% 5.5% 6% 4% 1.8% 2% 0% ORN FWLT MTRX GVA STRL GLDD JEC FLR CBI * Please see reconciliation at the end of this presentation 5
Slide 6: A Strong Foundation
A Leading Heavy Civil Marine Contractor A STRONG FOUNDATION THE ROAD AHEAD
Slide 7: Complete Suite of Marine Solutions
COMPLETE SUITE OF MARINE SOLUTIONS Marine Transportation Facility Construction Construction • Repair • Maintenance • Demolition • Salvage • Bridges • Causeways • Port Facilities • Terminals • Cruise Ship Facilities • Marinas • Docks Marine Pipeline Construction Construction • Repair • Maintenance •
Slide 8: Diverse End Markets
DIVERSE END MARKETS Port Expansion & Maintenance Bridges & Causeways Marine Infrastructure Cruise Industry Department of Defense Oil & Gas Industry Coastal Protection & Reclamation Hurricane Restoration & Repair Environmental Remediation 8
Slide 9: Large Specialized Fleet
LARGE SPECIALIZED FLEET Almost 400 Vessels and Pieces of Specialized Equipment – 62 spud and material barges – 60 tug and push boats – 10 cutter suction dredges – 74 crawler and hydraulic y cranes – 4 portable dredges – 130 pieces of other equipment – numerous pieces of other equipment ~100% owned
Slide 10: Diverse Geographic Footprint
DIVERSE GEOGRAPHIC FOOTPRINT Covering the Gulf Coast, Atlantic Seaboard and Caribbean Basin 10
Slide 11: Project Portfolio
PROJECT PORTFOLIO Number of Projects as of June 30, 2009 ($MM) Increasing Project Size ($MM) $3.2 $ 2/3 of Revenue >$5 MM > $10 $2.4 $1.8 509 $5 - $10 301 322 YTD $0 - $5 2006 2008 2009 YTD* Contract Structure 85% - 95% of work is self-performed self performed Typical size $2 - $4 MM, bid projec
Slide 12: Diverse Customer Mix
DIVERSE CUSTOMER MIX Federal Customers Full Year 2007 USACOE Federal 18% US Navy Full Year 2008 US Coast Guard Private State USDA 43% 6% State Customers Federal 11% State Government Local TXDOT 33% State FLDOT 14% Private LADOT 50% MSDOT Local NCDOT 25% SCDOT VADOT Private Customers Local Customers
Slide 13: 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 p Low leveraged position Access to capital markets $400+ million in bonding capacity Strategic long-term focus on grow
Slide 14: 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 ® ® Mi Microsoft ft Solomon S l Forecasting g Scheduling g Real-Time Project Management Microsoft Solomon® Financial
Slide 15: The Road Ahead
A Leading Heavy Civil Marine Contractor A STRONG FOUNDATION THE ROAD AHEAD
Slide 16: Executing Growth Strategy
EXECUTING GROWTH STRATEGY Remain opportunistic with regard to strategic opportunities in key Pursue Strategic markets Acquisitions Continue Organic Growth Pursue organic g and Greenfield growth opportunities in key markets Reinvest in Continue to grow fleet through the purchase and Core Business dev
Slide 17: Good Growth Drivers
GOOD 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 SAFTEA-LU Dredging Army Corps of Engineers focused on expanding the usability of the Gulf Intracoastal Waterways Hurricane
Slide 18: Goal: Continued Growth In 2010
GOAL: CONTINUED GROWTH IN 2010 $350 - $360 Million* 2010 Year Year- Y -Over Over- O -Year Y Revenue R Goal G l $244M** + $1.8B Current C t 2010 Potential Backlog*** Revenue (as of 11/5/09) Opportunities** (as of 9/30/09) *Stated goal as of November 5, 2009. ** Expected 2009 liquidation of backlog as
Slide 19: 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 19
Slide 20: GAAP To Non-GAAP
A Leading Heavy Civil Marine Contractor GAAP TO NON-GAAP
Slide 21: 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. G The non-GAAP non GAAP financial in
Slide 22: 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 23: 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 Thousands) ORN FWLT MTRX GVA STRL GLDD JEC FLR CBI Net
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