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Orion Marine Group, Inc. Reports Fourth Quarter And Full Year 2010 Results

Stocks in this article: ORN

HOUSTON, March 3, 2011 (GLOBE NEWSWIRE) -- Orion Marine Group, Inc. (NYSE:ORN) (the "Company"), a leading heavy civil marine contractor, today reported net income for the three months ended December 31, 2010, of $3.0 million ($0.11 diluted earnings per share). These results compare to net income of $4.0 million ($0.15 diluted earnings per share) for the same period a year ago. For the full year 2010, Orion Marine Group reported net income of $21.9 million ($0.81 diluted earnings per share), which compares to 2009 net income of $20.0 million ($0.84 diluted earnings per share). Full year 2010 earnings per share calculations include additional shares outstanding as a result of the secondary offering made during the third quarter 2009.

"During 2010, we saw many challenges and many accomplishments," said Mike Pearson, Orion Marine Group's President and Chief Executive Officer. "Although less than we initially expected, we continued to grow the business which resulted in record full year revenue with a solid bottom line performance and strong EBITDA margins. In fact, we ended 2010 with more than double the amount of revenue we had in 2005, while maintaining industry leading EBITDA margins."   

Financial highlights of the Company's fourth quarter and full year 2010 include:

Fourth Quarter 2010

  • Fourth quarter 2010 contract revenues were $90.4 million, an increase of 26.9%, as compared with fourth quarter of 2009 revenues of $71.2 million.  
  • Gross profit for the quarter was $11.6 million which represents a decrease of $1.9 million as compared with the fourth quarter of 2009. Gross profit margin for the quarter was 12.9%, which was lower than the prior year period of 19.0%.  During the fourth quarter 2010 gross profit margin was impacted by production issues on a couple of jobs and changes in the mix of contracts as compared to the prior year period.  
  • Selling, General, and Administrative expenses for the fourth quarter 2010 were $7.2 million as compared to $7.3 in the prior year period.  
  • The Company's fourth quarter 2010 EBITDA was $9.3 million, representing a 10.3% EBITDA margin, which compares to fourth quarter 2009 EBITDA of $10.1 million, or a 14.2% EBITDA margin. 

Full Year 2010

  • Full year 2010 contract revenues increased to $353.1 million, up 20.3% year-over-year as compared with full year 2009 revenues of $293.5 million.   
  • Gross profit for the year was $65.2 million which represents an increase of $2.5 million as compared with the full year 2009. Gross profit margin for the year was 18.5%, which was down from 21.4% for the full year 2009. Gross profit margin was primarily impacted during the year by pricing pressure in the East Coast construction market.  
  • The Company self-performed approximately 82% of its work as measured by cost during 2010 as compared with 88% during the prior year period. Self performance was lower than the Company's historical average due to changes in the mix of contracts as compared to the prior year period.   
  • Selling, General, and Administrative expenses for the full year 2010 were $32.6 million as compared with $30.7 million in the prior year period.  
  • The Company's full year 2010 EBITDA was $53.6 million, representing a 15.2% EBITDA margin, which compares to full year 2009 EBITDA of $50.5 million, or a 17.2% EBITDA margin. 

Backlog of work under contract as of December 31, 2010 was $194.5 million which compares with backlog under contract at December 31, 2009 of $252.9 million. Subsequent to the end of the year, the Company has been successful in continuing to obtain additional awards for new work. The Company reminds investors that 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 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. 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. 

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