HOUSTON, Dec. 17, 2007 (PRIME NEWSWIRE) -- Orion Marine Group, Inc. (the "Company") provides a broad range of marine construction and specialty services on, over and under the water along the Gulf Coast, the Atlantic Seaboard and the Caribbean Basin and acts as a single-source turnkey solution for its customers' marine contracting needs. The Company's heavy civil marine construction services include marine transportation facility construction, dredging, repair and maintenance, bridge building, marine pipeline construction, as well as specialty services. Specialty services include salvage, demolition, diving, surveying, towing and underwater inspection, excavation and repair. The Company is headquartered in Houston, Texas and has a 70-year legacy of successful operations.
Highlights of the Company's results of operations for its third quarter and nine month period ended September 30, 2007 include:
* Net income for the third quarter of $5.8 million, or $0.26 per diluted share, on revenues of $60.0 million. This compares with 2006 third quarter net income of $3.5 million, or $0.22 per diluted share, on revenues of $47.8 million. * Third quarter EBITDA of $12.2 million, an increase of $2.6 million, or 26.4%, from the third quarter last year. * Net income for the first nine months of 2007 was $10.6 million, or $0.55 per diluted share, on revenues of $149.8 million, as compared with $7.0 million, or $0.42 per diluted share, on revenues of $129.9 million in the comparable period last year. * Gross profit for the nine months ended September 30, 2007 increased 43.4% from $24.4 million to $34.9 million and gross margin increased from 18.7% to 23.3%, as compared with the comparable period ended September 30, 2006. * EBITDA for the nine months ended September 30, 2007 was $27.8 million, an increase of 18.2%, compared with $23.5 million in the first nine months of last year.
Backlog of work under contract as of September 30, 2007 was approximately $115.9 million, which represents an increase of 44.3% from September 30, 2006 backlog of approximately $80.3 million. Given the typical duration of the Company's projects, which range from three months 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. Backlog consists of projects under contract that have either (a) not been started or (b) are in progress and not yet complete. The Company cannot guarantee that the revenue projected in its backlog will be realized or, if realized, will result in earnings.
Mike Pearson, Orion Marine Group's President and Chief Executive Officer, said, "The Company's successful financial performance reflects our continuing commitment to achieve strong revenue growth while we monitor our projects for opportunities to enhance productivity and improve performance."
With regard to the Company's goals, Mr. Pearson said, "Our goal is to become the leading heavy civil marine contractor in the United States. We intend to meet this goal by growing our business through a combination of organic growth, greenfield expansion, and acquisitions. Our goal is to grow an average of 15% per year while maintaining an average EBITDA margin of 18%. We believe that our full year 2007 growth and EBITDA margins will be consistent with our long-term targets."
Mark Stauffer, the Company's Chief Financial Officer, said, "Our goal for 2008 anticipates continued growth of 14% to 16%, while achieving EBITDA margins of 17% to 19%. We expect to invest approximately $12 to $14 million in capital assets in 2008 to support our growth strategy."
Orion Marine Group will conduct a telephone briefing to discuss its results for the third quarter and nine months ended September 30, 2007 and the Company's financial performance goals with investors, the financial community and media at 4:00 p.m. Eastern Time/3:00 p.m. Central Time on Monday, December 17, 2007. To listen to a live broadcast of this briefing, visit the Investor Relations section of the Company's website at www.orionmarinegroup.com. To participate in the call, please call the Orion Marine Group Third Quarter Earnings Conference Call at 877-604-9672.
A replay of this briefing will be available on the Web site within 24 hours and will be archived for at least two weeks.
EBITDA, as provided herein, represents net income, adjusted for income taxes, net interest expense, deferred financing cost and depreciation and amortization expense. EBITDA should not be considered an alternative to, or more meaningful than, amounts determined in accordance with GAAP including: (a) operating income as an indicator of operating performance; or (b) cash flows from operations as a measure of liquidity. As such, the Company's use of EBITDA, instead of GAAP measure, has limitations as an analytical tool, including the inability to determine profitability or liquidity due to the exclusion of interest expense and the associated significant cash requirements and the exclusion of depreciation and amortization, which represent significant and unavoidable operating costs given the level of indebtedness and capital expenditures needed to maintain the Company's business. For these reasons, the Company uses operating income to measure its operating performance and uses EBITDA only as a supplement. EBITDA is reconciled to net income in the table of financial results.
The matters discussed in this news release may make projections and other forward-looking statements regarding, among other things, the Company's estimates for the remainder of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending award, as well as estimates and assumptions regarding future revenue growth, EBITDA, gross margins, administrative expenses and capital expenditures. These statements are predictions that are subject to risks and uncertainties that may cause actual results to differ materially. Moreover, past performance is not necessarily an indicator of future results. By providing this information, the Company undertakes no obligation to update or revise any projections or forward-looking statements, whether as a result of new developments or otherwise.
Please refer to the Company's Form S-1 as amended filed on December 12, 2007, which is available on its website at www.orionmarinegroup.com, for additional discussion of risk factors that could cause actual results to differ materially from our current expectations.
The Orion Marine Group, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4539
Orion Marine Group, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except share and per share information)
Three Months Three Months Nine Months Nine Months
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2007 2006 2007 2006
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Contract revenues $ 59,999 $ 47,793 $ 149,771 $ 129,917
Costs of contract
revenues 45,668 36,951 114,850 105,565
----------- ----------- ----------- -----------
Gross profit 14,331 10,842 34,921 24,352
Selling, general
and administrative
expenses 5,281 4,110 16,649 9,550
----------- ----------- ----------- -----------
9,050 6,732 18,272 14,802
----------- ----------- ----------- -----------
Other (income)
expense
Interest (income)
expense, net (143) 418 136 1,368
Other income (7) -- (27) 32
----------- ----------- ----------- -----------
Other (income)
expense, net (150) 418 109 1,400
----------- ----------- ----------- -----------
Income before
income taxes 9,200 6,314 18,163 13,402
Income tax
expense 3,437 2,306 6,834 4,874
----------- ----------- ----------- -----------
Net income $ 5,763 $ 4,008 $ 11,329 $ 8,528
=========== =========== =========== ===========
Net income $ 5,763 $ 4,008 $ 11,329 $ 8,528
Preferred
dividends -- 529 777 1,571
----------- ----------- ----------- -----------
Earnings
available for
common
shareholders $ 5,763 $ 3,479 $ 10,552 $ 6,957
=========== =========== =========== ===========
Basic earnings
per share--Common $ 0.27 $ 0.22 $ 0.57 $ 0.44
Diluted earnings
per share--Common $ 0.26 $ 0.22 $ 0.55 $ 0.42
Shares used to
compute earnings
per share:
Basic--Common 21,447,492 15,941,317 18,631,171 15,832,362
Diluted--Common 21,851,108 15,976,271 19,271,091 16,432,013
Orion Marine Group, Inc. and Subsidiaries
Supplementary Financial Information
(In Thousands)
Three Months Three Months Nine Months Nine Months
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2007 2006 2007 2006
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net income $ 5,763 $ 4,008 $ 11,329 $ 8,528
Income tax
expense 3,437 2,306 6,834 4,874
Interest (income)
expense, net (143) 418 136 1,368
Deferred
financing costs 58 43 150 129
Depreciation and
amortization 3,114 2,897 9,342 8,605
----------- ----------- ----------- -----------
EBITDA $ 12,229 $ 9,672 $ 27,791 $ 23,504
=========== =========== =========== ===========
Net cash flow
from operating
activities $ 6,328 $ 25,406
=========== ===========
Cash and cash
equivalents $ 14,420 $ 19,324
=========== ===========
Term debt
outstanding $ 1,643 $ 30,942
=========== ===========