Orion Group Holdings, Inc. · NYSE:ORN
Orion — Investor Presentation (September 2023)
20 slides from Orion's investor presentation, Sep 21, 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023
Slide 2: Disclaimer
2 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
Slide 3: Three Takeaways
3 Three Takeaways 1 EXPERIENCED NEW MANAGEMENT TEAM FOCUSED ON IMPROVING FINANCIAL PERFORMANCE CEO and CFO bring wealth of industry knowledge, operational experience, leadership and strong relationships in the public sector VITAL PROVIDER OF MARINE AND CONCRETE SERVICES TO CRITICAL INFRASTRUCTURE AN
Slide 4: Orion at a Glance
75% 25% $204M Concrete 4 Orion at a Glance Orion is a leading specialty construction company in the U.S., Canada and Caribbean Basin Company Overview • Marine: Transportation facility & infrastructure construction; dredging • Concrete: Commercial, structural, and industrial Key Statistics $748.3mm 2
Slide 5: Compelling Investment Opportunity
5 Compelling Investment Opportunity 5 4 3 Experienced New Management Team Focused on Improved Financial Performance 2 Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 1 Significant Upside Potential: Strong demand in both concrete and marine segments 6 3-Point
Slide 6: Mission Critical Specialty Construction Provider with Sustainable Advantages
6 Mission Critical Specialty Construction Provider with Sustainable Advantages Market Credibility ► Trusted provider with decades of operating experience ► Long-term, embedded relationships ► Diverse customer base – Federal, State, Municipal Governments (36% of 2022 Revenue) – Private commercial and
Slide 7: Deep and Talented Management Team Focused on Operational Transformation
7 Deep and Talented Management Team Focused on Operational Transformation Travis Boone, PE Chief Executive Officer • Leadership and management experience across the civil, utility / pipeline and commercial building construction industries • Formerly Regional Chief Executive of AECOM, leading a large
Slide 8: Large Market Opportunity with Strong Tailwinds and Demand Drivers
8 Large Market Opportunity with Strong Tailwinds and Demand Drivers Source: IBIS. (1) Marine market is inclusive of: U.S. Marine Construction, Conservation & Development Construction, Harbor & Port Facilities and Port Expansion, Maintenance and Dredging markets. Concrete market is inclusive of: TX C
Slide 9: Marine Segment Overview
$340.7 $202.6 $376.9 $216.7 Dec-19 Dec-20 Dec-21 Dec-22 Jun-23 9 Marine Segment Overview Orion Marine benefits from high-margin projects with high barriers of entry and consistent maintenance demand (1) Calculated over most recent 5-year period. (2) As of December 31, 2022. Overview Marine Revenue &
Slide 10: Concrete Segment Overview
$339.3 $321.8 $337.4 $409.1 2019 2020 2021 2022 Concrete Revenue 0.3% 2.1% -1.2% 2.1% Adj EBITDA Margin Concrete Revenue & Adj EBITDA Margin 10 Concrete Segment Overview Improved project margin focus has laid the groundwork for future success (1) Calculated over most recent 5-year period. (2) As of
Slide 11: Diversified Revenue with Industry Leaders
34% 20% 46% Private Federal State and Local 93% 1% 5% Private Federal State and Local 11 (1) As of December 31, 2022. $409mm 2022 revenue(1) Diversified Revenue with Industry Leaders Long-tenured relationships with blue-chip clients across federal, state, local and private customers in both the mari
Slide 12: Clearly Defined Plan to Deliver Enhanced Growth and Returns
Focus on Dallas and Houston markets; exit Central Texas. Improved project management to drive margin expansion Concrete Project Execution Capex investments in fleet improvement, technology and capabilities and systems to enhance business development Fleet & Systems Upgrade Focus on high-quality proj
Slide 13: Execution Against Three-Point Strategic Plan
13 Execution Against Three-Point Strategic Plan Orion is capitalizing on industry dynamics and refocusing the business on high-margin services and projects Improve Profitability of the Concrete Segment • Achieved profitability on an EBITDA basis in March for first time in two years – trend continues
Slide 14: Financial Overview
{ORION Financial Overview
Slide 15: Financial Overview
67% 33% Marine Concrete 15 Financial Overview Note: Financials as of 12/31/22. Revenue by Segment Adj EBITDA by Segment Backlog by Segment ($ in millions) Adj EBITDA ($ in millions) Annual Revenue $708.4 $709.8 $601.4 $748.3 2019 2020 2021 2022 $39.6 $54.4 $17.3 $22.9 2019 2020 2021 2022 45% 55% Mar
Slide 16: Second Quarter Financial Results
16 Second Quarter Financial Results Operating income (loss) improved to $2.0 million from ($10.6) million in 1Q23 Segment Revenue Segment Adjusted EBITDA Marine +27% $3.4M vs. ($1.3M) in 1Q23 Concrete +15% $0.3M vs. ($2.8M) in 1Q23 Contract revenues: +14.7% sequentially to $182.5 million Net income
Slide 17: Balance Sheet and Liquidity
June 30, 2023 17 Balance Sheet and Liquidity Cash & Cash Equivalents: $8.9M Net Debt Outstanding $28M Availability on Credit Facility $65.0M Orion closed a new 3-year $103 million senior secured asset-based credit facility with White Oak, which included a $65M revolver and $38M fixed asset term loan
Slide 18: Compelling Investment Opportunity
18 Compelling Investment Opportunity 5 4 3 Experienced New Management Team Focused on Improved Financial Performance 2 Mission Critical Specialty Construction Provider with Sustainable Competitive Advantages 1 Significant Upside Potential: Strong demand in both concrete and marine segments 6 3-Point
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Supplemental Information
20 Non-GAAP Supplemental Information Net Income to Adjusted Operating EBITDA Reconciliation Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 Net loss $ (255) $ (3,054) $ (12,850) $ (7,910) Income tax (benefit) expense (42) (681) 598 643 Interest expense, net 2,586 942 4,191
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