Business Wire | Jul 29, 2020 04:06PM EDT

Orion Group Holdings, Inc. Reports Second Quarter 2020 Results

Jul. 29, 2020

HOUSTON--(BUSINESS WIRE)--Jul. 29, 2020--Orion Group Holdings, Inc. (NYSE: ORN) (the "Company"), a leading specialty construction company, today reported net income of $2.0 million ($0.07 diluted earnings per share) for the second quarter ended June 30, 2020. Second quarter highlights are discussed below.

Second Quarter 2020 Highlights

* Contract revenues were $183.7 million, up 10.7% from $166.0 million for the second quarter of 2019. * Operating income was $4.1 million for the second quarter of 2020 compared to operating loss of $0.4 million for the second quarter of 2019. * Net income was $2.0 million ($0.07 diluted earnings per share) for the second quarter of 2020 compared to net loss of $1.6 million ($0.06 diluted loss per share) for the second quarter of 2019. * The second quarter 2020 net income included $0.3 million ($0.01 loss per diluted share) of non-recurring costs and $1.0 million ($0.03 earnings per diluted share) of tax benefit associated with the movement of certain valuation allowances to offset our losses. Second quarter 2020 adjusted net income was $1.3 million ($0.04 diluted earnings per share). (Please see page 9 of this release for a reconciliation of adjusted net income.) * EBITDA, adjusted to exclude the impact of the aforementioned non-recurring costs, was $12.6 million in the second quarter of 2020, which compares to adjusted EBITDA of $10.1 million for the second quarter of 2019. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure.) * Backlog was $528.4 million on a second quarter book-to-bill of 0.65x.

"Once again, I would like to thank all of our employees and team members for continuing to safely and diligently work on our projects and in our yards, shops and support offices during this unprecedented period," stated Mark Stauffer, Orion Group Holdings' President and Chief Executive Officer. "Despite the continued spread of the COVID-19 virus and the spike in some of the states in which we work, we continue to execute on our projects in backlog while keeping our focus on maintaining the health and safety of the most important resource of our business, our people."

"We continued to post year-over-year improvement in both our top and bottom line and also generated solid free cash flow in the second quarter, which reflects the benefits of the operational improvement initiatives we implemented over the past 18 months. Our concrete segment significantly improved operating performance driven by higher production volumes during the quarter. On a sequential basis, adjusted EBITDA margin declined for our marine segment due to lower utilization of our dredging assets as we performed scheduled maintenance to ensure continued operation of our dredge fleet for upcoming projects in backlog."

Mr. Stauffer continued, "While certain of our end markets have been impacted by the COVID-19 pandemic, we continue to see bidding activity in both of our segments. A key element of our growth strategy is the wide array of end markets we serve, which enables us to pursue the most attractive bid opportunities in the end markets that are performing the best at any given point in time. This strategy serves us well in this challenging and uncertain environment, and we will continue to focus our efforts on targeting the end markets and projects we expect to have the best opportunities to be successful and profitable moving forward."

"Though the pandemic may continue to create uncertainty in the marketplace, we are confident in our ability to efficiently and profitably execute our projects in backlog, and in our ability to maintain or grow our backlog level by targeting and winning new bid opportunities. Our liquidity position remains strong. The additional $16 million of free cash flow that we generated in the second quarter coupled with our $20 million, 1-year revolver that we recently added to our credit facility provides us with more than sufficient financial flexibility to continue to pursue new awards and execute existing backlog. We are encouraged by our strong operational performance in the second quarter and we have the right team in place to continue to perform well despite the macroeconomic challenges. Considering our combination of diverse end markets, broad range of construction capabilities and assets, and our highly experienced and professional personnel, we are confident in our ability to deliver increasing levels of profitability and free cash flow in the quarters and years to come, particularly in a post-pandemic environment," concluded Mr. Stauffer.

Consolidated Results for Second Quarter 2020 Compared to Second Quarter 2019

* Contract revenues were $183.7 million, up 10.7% as compared to $166.0 million. The increase was primarily driven by an increase in production volumes in the concrete segment and a moderate year over year increase in the marine segment. * Gross profit was $20.7 million, as compared to $15.0 million. Gross profit margin was 11.3%, as compared to 9.0%. The increase in gross profit dollars and percentage were primarily driven by the increased revenue and improved recovery of indirect project cost such as equipment and labor utilization. * Selling, General, and Administrative expenses were $16.5 million, as compared to $15.1 million. As a percentage of total contract revenues, SG&A expenses decreased from 9.1% to 9.0%. The increase in SG&A dollars was primarily attributable to the full ratable accrual of the annual incentive compensation plan during the current year period. * Operating income was $4.1 million as compared to operating loss of $0.4 million. The operating income in the second quarter of 2020 reflects the aforementioned factors that improved revenue and gross profit. * EBITDA was $11.1 million, representing a 6.1% EBITDA margin, as compared to EBITDA of $7.3 million, or a 4.4% EBITDA margin. When adjusted for the aforementioned charges and other non-recurring costs, adjusted EBITDA for the second quarter of 2020 was $12.6 million, representing a 6.9% EBITDA margin. (Please see page 10 of this release for an explanation of EBITDA, Adjusted EBITDA and a reconciliation to the nearest GAAP measure.)

Backlog

Backlog of work under contract as of June 30, 2020 was $528.4 million, which compares with backlog under contract at June 30, 2019 of $645.2 million, a decrease of 18.1%. The prior period backlog number reflects the booking of a large project during the period with a contract value of $160 million. The second quarter 2020 ending backlog was comprised of $312.2 million for the marine segment, and $216.2 million for the concrete segment. Currently, the Company has approximately $1.3 billion worth of bids outstanding, including approximately $73 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the second quarter of 2020, of which approximately $60 million pertains to the marine segment and approximately $13 million to the concrete segment.

"During the second quarter, we bid on approximately $1.2 billion of work and were successful on approximately $120 million of these bids," stated Robert Tabb, Orion Group Holding's Vice President and Chief Financial Officer. "This resulted in a 0.65 times book-to-bill ratio and a win rate of 10.4%. In the marine segment, we bid on approximately $279 million during the second quarter 2020 and were successful on approximately $59 million, representing a win rate of 21.2% and a book-to-bill ratio of 0.65 times. In the concrete segment we bid on approximately $876 million of work and were awarded approximately $61 million, representing a win rate of 6.9% and a book-to-bill ratio of 0.66 times."

Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress and not yet complete, and the Company cannot guarantee that the revenue projected in its backlog will be realized, or, if realized, will result in earnings. Backlog can fluctuate from period to period due to the timing and execution of contracts. Given the typical duration of the Company's projects, which generally range from three to nine months, the Company's backlog at any point in time usually represents only a portion of the revenue it expects to realize during a twelve-month period.

Conference Call Details

Orion Group Holdings will host a conference call to discuss results for the second quarter 2020 at 10:00 a.m. Eastern Time/9:00 a.m. Central Time on Thursday, July 30, 2020. To listen to a live webcast of the conference call, or access the replay, visit the Calendar of Events page of the Investor Relations section of the website at www.oriongroupholdingsinc.com. To participate in the call, please dial (201) 493-6739 and ask for the Orion Group Holdings Conference Call.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company's marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas.

Non-GAAP Financial Measures

This press release includes the financial measures "adjusted net income," "adjusted earnings per share," "EBITDA," "Adjusted EBITDA" and "Adjusted EBITDA margin." These measurements are "non-GAAP financial measures" under rules of the Securities and Exchange Commission, including Regulation G. The non-GAAP financial information may be determined or calculated differently by other companies. By reporting such non-GAAP financial information, the Company does not intend to give such information greater prominence than comparable and other GAAP financial information, which information is of equal or greater importance.

Adjusted net income and adjusted earnings per share are not an alternative to net income or earnings per share. Adjusted net income and adjusted earnings per share exclude certain items that management believes impairs a meaningful comparison of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other companies. Generally, items excluded, are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

Orion Group Holdings defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that management believes impairs a meaningful comparison of operating results. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for the period by contract revenues for the period. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA margin is operating margin, which represents operating income divided by contract revenues. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are used internally to evaluate current operating expense, operating efficiency, and operating profitability on a variable cost basis, by excluding the depreciation and amortization expenses, primarily related to capital expenditures and acquisitions, and net interest and tax expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information regarding the Company's ability to meet future debt service and working capital requirements while providing an overall evaluation of the Company's financial condition. In addition, EBITDA is used internally for incentive compensation purposes. The Company includes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to provide transparency to investors as they are commonly used by investors and others in assessing performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have certain limitations as analytical tools and should not be used as a substitute for operating margin, net income, cash flows, or other data prepared in accordance with generally accepted accounting principles in the United States, or as a measure of the Company's profitability or liquidity.

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release (including those under "Update on Scale and Growth Initiative" above), and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start date, anticipated revenues, and contract options which may or may not be awarded in the future. Forward looking statements involve risks, including those associated with the Company's fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.

Please refer to the Company's Annual Report on Form 10-K, filed on February 28, 2020, which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In Thousands, Except Share and Per Share Information)

(Unaudited)



Three months ended Six months ended

June 30, June 30,

2020 2019 2020 2019

Contract 183,713 165,985 350,333 309,090 revenues

Costs ofcontract 162,969 151,008 309,831 285,031 revenues

Gross profit 20,744 14,977 40,502 24,059

Selling,general and 16,512 15,114 32,381 30,087 administrativeexpenses

Amortizationof intangible 517 658 1,033 1,318 assets

Gain from sale (369 ) (372 ) (1,361 ) (746 )of assets, net

Operating 4,084 (423 ) 8,449 (6,600 )income (loss)

Other(expense) income:

Other income 39 534 136 557

Interest 54 94 94 242 income

Interest (1,169 ) (1,978 ) (2,571 ) (3,303 )expense

Other expense, (1,076 ) (1,350 ) (2,341 ) (2,504 )net

Income (loss)before income 3,008 (1,773 ) 6,108 (9,104 )taxes

Income taxexpense 980 (140 ) 1,357 453 (benefit)

Net income $ 2,028 $ (1,633 ) $ 4,751 $ (9,557 )(loss)



Basic earnings(loss) per $ 0.07 $ (0.06 ) $ 0.16 $ (0.33 )share

Dilutedearnings $ 0.07 $ (0.06 ) $ 0.16 $ (0.33 )(loss) pershare

Shares used tocompute income (loss) pershare:

Basic 30,031,188 29,097,094 29,842,298 29,086,811

Diluted 30,031,188 29,097,094 29,842,298 29,086,811

Orion Group Holdings, Inc. and Subsidiaries

Selected Results of Operations

(In Thousands, Except Share and Per Share Information)

(Unaudited)



Three months ended June 30,

2020 2019

Amount Percent Amount Percent

(dollar amounts in thousands)

Contract revenues

Marine segment

Public sector $ 59,820 65.2 % $ 60,557 68.0 %

Private sector 31,899 34.8 % 28,466 32.0 %

Marine segment total $ 91,719 100.0 % $ 89,023 100.0 %

Concrete segment

Public sector $ 12,022 13.1 % $ 13,629 17.7 %

Private sector 79,972 86.9 % 63,333 82.3 %

Concrete segment total $ 91,994 100.0 % $ 76,962 100.0 %

Total $ 183,713 $ 165,985



Operating income (loss)

Marine segment $ 596 0.6 % $ 9 0.0 %

Concrete segment 3,488 3.8 % (432 ) (0.6) %

Total $ 4,084 $ (423 )



Six months ended June 30,

2020 2019

Amount Percent Amount Percent

(dollar amounts in thousands)

Contract revenues

Marine segment

Public sector $ 113,331 63.8 % $ 106,566 70.8 %

Private sector 64,337 36.2 % 43,944 29.2 %

Marine segment total $ 177,668 100.0 % $ 150,510 100.0 %

Concrete segment

Public sector $ 28,074 16.3 % $ 26,382 16.6 %

Private sector 144,591 83.7 % 132,198 83.4 %

Concrete segment total $ 172,665 100.0 % $ 158,580 100.0 %

Total $ 350,333 $ 309,090



Operating income (loss)

Marine segment $ 3,451 1.9 % $ (6,447 ) (4.3) %

Concrete segment 4,998 2.9 % (153 ) (0.1) %

Total $ 8,449 $ (6,600 )

Orion Group Holdings, Inc. and Subsidiaries

Reconciliation of Adjusted Net Income (Loss)

(In thousands except per share information)

(Unaudited)



Three months ended Six months ended

June 30, June 30,

2020 2019 2020 2019

Net income (loss) $ 2,028 $ (1,633 ) $ 4,751 $ (9,557 )

One-time charges and the tax effects:

ERP implementation 310 - 310 -

ISG initiative - 1,257 369 2,804

Severance 38 440 72 440

Unamortized debt issuance - 399 - 399 costs on debt extinguishment

Tax rate of 23% applied to (80 ) (482 ) (173 ) (838 )one-time charges (1)

Total one-time charges and 268 1,614 578 2,805 the tax effects

Federal and state tax (968 ) 299 (1,631 ) 1,046 valuation allowances

Adjusted net income (loss) $ 1,328 $ 280 $ 3,698 $ (5,706 )

Adjusted EPS $ 0.04 $ 0.01 $ 0.12 $ (0.20 )

_________________(1) Items are taxed discretely using the Company's blended tax rate.

Orion Group Holdings, Inc. and Subsidiaries

Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations

(In Thousands, Except Margin Data)

(Unaudited)



Three months ended Six months ended

June 30, June 30,

2020 2019 2020 2019

Net income (loss) $ 2,028 $ (1,633) $ 4,751 $ (9,557)

Income tax expense (benefit) 980 (140) 1,357 453

Interest expense, net 1,115 1,884 2,477 3,061

Depreciation and amortization 7,004 7,222 13,896 14,262

EBITDA (1) 11,127 7,333 22,481 8,219

Stock-based compensation 1,167 1,064 1,629 1,728

ERP implementation 310 - 310 -

ISG initiative - 1,257 369 2,804

Severance 38 440 72 440

Adjusted EBITDA(2) $ 12,642 $ 10,094 $ 24,861 $ 13,191

Operating income (loss) margin 2.3 % - % 2.4 % (1.9) %(3)

Impact of depreciation and 3.8 % 4.4 % 4.0 % 4.6 %amortization

Impact of stock-based 0.6 % 0.6 % 0.5 % 0.6 %compensation

Impact of ERP implementation 0.2 % - % 0.1 % - %

Impact of ISG initiative - % 0.8 % 0.1 % 0.9 %

Impact of severance - % 0.3 % - % 0.1 %

Adjusted EBITDA margin(2) 6.9 % 6.1 % 7.1 % 4.3 %

_________________(1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for(2) stock based compensation, the ISG initiative and severance. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

(3) Operating income margin is calculated by dividing operating income plus other income (expense), net by contract revenues.

Orion Group Holdings, Inc. and Subsidiaries

Adjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment

(In Thousands, Except Margin Data)

(Unaudited)



Marine Concrete

Three months ended Three months ended

June 30, June 30,

2020 2019 2020 2019

Operating income (loss) 596 9 3,488 (432)

Other income (expense), net (1) 3,253 3,582 (3,214) (3,048)

Depreciation and amortization 4,744 5,069 2,260 2,153

EBITDA (2) 8,593 8,660 2,534 (1,327)

Stock-based compensation 1,128 977 39 87

ERP implementation 155 - 155 -

ISG initiative - 319 - 938

Severance 14 440 24 -

Adjusted EBITDA (3) $ 9,890 $ 10,396 $ 2,752 $ (302)

Operating income (loss) margin 4.2 % 4.0 % 0.3 % (4.5) %(4)

Impact of depreciation and 5.2 % 5.7 % 2.5 % 2.8 %amortization

Impact of stock-based 1.2 % 1.1 % - % 0.1 %compensation

Impact of ERP implementation 0.2 % - % 0.2 % - %

Impact of ISG initiative - % 0.4 % - % 1.2 %

Impact of severance - % 0.5 % - % - %

Adjusted EBITDA margin (3) 10.8 % 11.7 % 3.0 % (0.4) %



Marine Concrete

Six months ended Six months ended

June 30, June 30,

2020 2019 2020 2019

Operating income (loss) 3,451 (6,447) 4,998 (153)

Other income (expense), net (1) 6,242 6,466 (6,106) (5,909)

Depreciation and amortization 9,520 10,015 4,376 4,247

EBITDA (2) 19,213 10,034 3,268 (1,815)

Stock-based compensation 1,540 1,551 89 177

ERP implementation 155 - 155 -

ISG initiative 190 1,140 179 1,664

Severance 26 440 46 -

Adjusted EBITDA (3) $ 21,124 $ 13,165 $ 3,737 $ 26

Operating(loss) income margin 5.5 % (0.1) % (0.5) % (3.8) %(4)

Impact of depreciation and 5.4 % 6.7 % 2.5 % 2.7 %amortization

Impact of stock-based 0.9 % 1.0 % 0.1 % 0.1 %compensation

Impact of ERP implementation - - - -

Impact of ISG initiative 0.1 % 0.8 % 0.1 % 1.0 %

Impact of severance - % 0.3 % - % - %

Adjusted EBITDA margin (3) 11.9 % 8.7 % 2.2 % - %

_________________ Primarily consists of corporate overhead costs recorded to the marine(1) segment as part of operating income(loss) and allocated from the marine segment to the concrete segment in other income (expense) line. Allocated amounts net to zero on a consolidated basis.

(2) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.

Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for(3) stock-based compensation, the ISG initiative and severance. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

(4) Operating income margin is calculated by dividing operating income plus other income (expense), net by contract revenues.

Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows Summary

(In Thousands)

(Unaudited)



Three months ended Six months ended

June 30, June 30,

2020 2019 2020 2019

Net income (loss) $ 2,028 $ (1,633 ) $ 4,751 $ (9,557 )

Adjustments to removenon-cash and 9,246 9,916 17,828 18,799 non-operating items

Cash flow from netincome after adjusting 11,274 8,283 22,579 9,242 for non-cash andnon-operating items

Change in operatingassets and liabilities 6,347 (7,437 ) 10,495 (10,324 )(working capital)

Cash flows provided by(used in) operating $ 17,621 $ 846 $ 33,074 $ (1,082 )activities

Cash flows used in $ (1,719 ) $ (1,378 ) $ (2,044 ) $ (5,141 )investing activities

Cash flows (used in)provided by financing $ (19,081 ) $ 666 $ (21,773 ) $ 298 activities



Capital expenditures(included in investing $ (2,283 ) $ (4,256 ) $ (5,036 ) $ (8,118 )activities above)

Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

(Unaudited)



Six months ended June 30,

2020 2019

Cash flows from operating activities

Net income (loss) $ 4,751 $ (9,557 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Depreciation and amortization 12,311 13,108

Amortization of ROU operating leases 3,066 2,927

Amortization of ROU finance leases 1,585 1,154

Unamortized debt issuance costs upon debt - 399 modification

Amortization of deferred debt issuance costs 286 186

Deferred income taxes (99 ) 43

Stock-based compensation 1,629 1,728

Gain on sale of property and equipment (1,361 ) (746 )

Allowance for doubtful accounts 411 -

Change in operating assets and liabilities, net of effects of acquisitions:

Accounts receivable 23,645 (28,257 )

Income tax receivable (97 ) (398 )

Inventory (172 ) 252

Prepaid expenses and other 900 126

Costs and estimated earnings in excess of billings 5,050 (14,424 )on uncompleted contracts

Accounts payable (23,680 ) 6,261

Accrued liabilities 2,818 (1,601 )

Operating lease liabilities (2,721 ) (2,896 )

Income tax payable (296 ) 409

Billings in excess of costs and estimated earnings 5,048 30,204 on uncompleted contracts

Net cash provided by (used in) operating activities 33,074 (1,082 )

Cash flows from investing activities:

Proceeds from sale of property and equipment 1,749 847

Purchase of property and equipment (5,036 ) (8,118 )

Contributions to CSV life insurance (99 ) (444 )

Insurance claim proceeds related to property and 1,342 2,574 equipment

Net cash used in investing activities (2,044 ) (5,141 )

Cash flows from financing activities:

Borrowings from Credit Facility 5,000 32,000

Payments made on borrowings from Credit Facility (24,500 ) (29,500 )

Loan costs from Credit Facility (391 ) (825 )

Payments of finance lease liabilities (1,858 ) (1,412 )

Purchase of vested stock-based awards (24 ) -

Exercise of stock options - 35

Net cash used in financing activities (21,773 ) 298

Net change in cash, cash equivalents and restricted 9,257 (5,925 )cash

Cash, cash equivalents and restricted cash at 1,086 8,684 beginning of period

Cash, cash equivalents and restricted cash at end $ 10,343 $ 2,759 of period

Orion Group Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Information)



June 30, December 31,

2020 2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $ 10,343 128

Restricted cash - 958

Accounts receivable:

Trade, net of allowance for credit losses of $3,011 96,146 116,540 and $2,600, respectively

Retainage 37,963 42,547

Income taxes receivable 1,059 962

Other current 2,260 2,680

Inventory 1,963 1,114

Costs and estimated earnings in excess of billings 36,339 41,389 on uncompleted contracts

Prepaid expenses and other 5,354 5,647

Total current assets 191,427 211,965

Property and equipment, net of depreciation 126,971 132,348

Operating lease right-of-use assets, net of 16,762 17,997 amortization

Financing lease right-of-use assets, net of 13,783 7,896 amortization

Inventory, non-current 6,360 7,037

Intangible assets, net of amortization 11,114 12,147

Deferred income tax asset 143 85

Other non-current 4,861 5,369

Total assets $ 371,421 $ 394,844

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current debt, net of issuance costs $ 4,358 $ 3,668

Accounts payable:

Trade 46,869 70,421

Retainage 434 562

Accrued liabilities 20,731 16,966

Income taxes payable 1,227 1,523

Billings in excess of costs and estimated earnings 53,829 48,781 on uncompleted contracts

Current portion of operating lease liabilities 5,095 5,043

Current portion of financing lease liabilities 4,919 2,788

Total current liabilities 137,462 149,752

Long-term debt, net of debt issuance costs 47,734 68,029

Operating lease liabilities 12,334 13,596

Financing lease liabilities 8,288 3,760

Other long-term liabilities 20,017 20,436

Deferred income tax liability 164 205

Interest rate swap liability 1,989 1,045

Total liabilities 227,988 256,823

Stockholders' equity:

Preferred stock -- $0.01 par value, 10,000,000 - - authorized, none issued

Common stock -- $0.01 par value, 50,000,000authorized, 31,060,101 and 30,303,395 issued; 311 303 30,348,870 and 29,592,164 outstanding at June 30,2020 and December 31, 2019, respectively

Treasury stock, 711,231 shares, at cost, as of June (6,540 ) (6,540 )30, 2020 and December 31, 2019, respectively

Accumulated other comprehensive loss (1,989 ) (1,045 )

Additional paid-in capital 184,120 182,523

Retained loss (32,469 ) (37,220 )

Total stockholders' equity 143,433 138,021

Total liabilities and stockholders' equity $ 371,421 $ 394,844

View source version on businesswire.com: https://www.businesswire.com/news/home/20200729005985/en/

CONTACT: Orion Group Holdings Inc. Robert Tabb, Vice President & CFO Rebecca Maxwell, Vice President, Finance (713) 852-6500 www.oriongroupholdingsinc.com

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CONTACT: INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Fred Buonocore, CFA (212) 836-9607 Mike Gaudreau (212) 836-9620