Orion Reports First-Quarter Net Loss Of $4.9 Million
Orion Group Holdings reported a net loss of $4.9 million, or $0.16 per share, for the first quarter of 2022, compared to net income of $0.9 million, or $0.03 per share for the first quarter of 2021.
The first quarter 2022 net loss included $2.1 million ($0.07 loss per diluted share) of non-recurring items and $0.5 million ($0.02 per diluted share) of tax impact from valuation allowances. Excluding the non-recurring items, Orion’s adjusted net loss was -$3.2 million, or -$0.10 diluted loss per share.
“Since stepping in as Orion Group Holdings’ interim CEO a few weeks ago, I have been working closely with leaders to ensure that we are well positioned to capitalize on industry tailwinds, improve the quality of our backlog, enhance margins and ultimately deliver for our shareholders and customers,” said Austin Shanfelter, Orion’s interim CEO. “We ended the first quarter with a solid foundation for the future, including improving markets and a backlog up 66 percent year-over-year. Since the end of the quarter, we have successfully bid for an additional $112 million in projects.”
Orion reported that contract revenues for the first quarter were $174.9 million, an increase of $21.6 million or 14.1 percent as compared to $153.3 million a year ago. The increase was primarily driven by the beginning of large jobs awarded in the second half of 2021 in the marine segment and increased cubic yard production on light commercial projects in the concrete segment, the company said.
Orion’s backlog of work under contract as of March 31 was $604.1 million, which compares with backlog under contract as of March 31, 2021, of $364.8 million. The first quarter 2022 ending backlog included $317.4 million in the marine segment and $286.7 million in the concrete segment.
At the end of the quarter, Orion had approximately $2.1 billion in outstanding bids, including successful bids on approximately $112 million in projects subsequent to the end of the first quarter of 2022, of which approximately $30 million pertains to the marine segment and approximately $82 million to the concrete segment.
“During the first quarter, we converted approximately $189 million of the approximately $1.3 billion of work on which we bid,” Shanfelter said. “This resulted in a 1.08 times book-to-bill ratio and a win rate of 14.0 percent. In the marine segment, we bid on approximately $419 million during the first quarter 2022 and were successful on approximately $25 million, representing a win rate of 6 percent and a book-to-bill ratio of 0.30 times. In the concrete segment we bid on approximately $927 million of work and were awarded approximately $164 million, representing a win rate of 17.7 percent and a book-to-bill ratio of 1.81 times.”
Based in Houston, Orion Group Holdings is a specialty construction company serving the infrastructure, industrial and building sectors, providing services both on and off the water through its marine segment and its concrete segment.