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HOUSTON, Dec. 21, 2010 (GLOBE NEWSWIRE) -- Orion Marine Group, Inc. (NYSE:ORN) (the "Company"), a leading heavy civil marine contractor, today provided an operations, market and outlook update.
In December, as part of its normal monthly review of backlog and work in progress, the Company identified changes in the anticipated timing and mix of projects as well as three jobs experiencing production issues. As a result, the Company expects to see a material change in its forecasted fourth quarter 2010 revenue and EBITDA margin. The Company is lowering its full year 2010 revenue goal from between $360 million and $370 million, to between $345 million and $355 million and is lowering its full year 2010 EBITDA margin goal from 16% - 18%, to 14% - 16%.
"We are not pleased with having to make this adjustment, but feel it is imperative to promptly update you given the changes we have seen," said Mike Pearson, Orion Marine Group's President and Chief Executive Officer. "We expect the revenue from any timing related shortfalls which occur during the quarter will be recognized in 2011. We have acted on those production issues which are within our control and have made the necessary changes to eliminate them in the future."
Factors affecting the fourth quarter:
Production schedule shifts
Revenue mix change
"We remind investors, that this is the construction business, and things can shift around for a variety of reasons," said Mr. Pearson. "We know these periods of unpredictability are a concern for shareholders and we are striving to continuously bring you our most up to date relevant information. We urge you to continue to focus on long term results and not short term fluctuations. Even with these changes, we continue to be an industry leader and should end 2010 with full year revenues that are double what they were in 2005, a strong stable balance sheet, positive year-over-year net income growth, positive year-over year EBITDA growth and a 17% to 21% growth in the top line. I know this is lower than we anticipated at the beginning of the year, but I can still look back on 2010 and be pleased with our growth and accomplishments, especially given the unforeseen changes we have seen in the competitive environment during the back half of the year."