HOUSTON, Sept. 20, 2013 (GLOBE NEWSWIRE) -- Orion Marine Group, Inc. (NYSE:ORN) (the "Company"), a leading heavy civil marine contractor serving the infrastructure sector, today is providing it's investors an update on the Company's outlook and end markets.
The Company continues to enjoy a steady demand for its heavy civil marine construction services, and overall, has continued to see a healthy pace of bid opportunities, particularly in the private sector. Quarter to date, the Company has bid on approximately $290 million worth of opportunities and was successful on approximately $65 million, representing a win rate of approximately 22%. Additionally, the Company currently has approximately $175 million worth of bids outstanding of which it is the apparent low bidder on approximately $85 million. The Company reminds investors that the timing and size of awards can and does affect the win rate in any particular quarter.The Company has seen the start date on some jobs, particularly those involving dredging services, move to future periods to meet customer demands. This is a normal occurrence in the construction industry, but can create uncertain, choppy results and cause temporary underutilization of assets, as the Company has seen in the third quarter. Additionally, the Company has experienced an increase in certain job costs associated with differing site conditions, which should result in recovery through change orders in future periods. Given the timing of these developments, profitability in the third quarter is unlikely; however, the Company expects to have positive EBITDA in the period. Additionally, the gaps in our schedule may continue into the fourth quarter as several large jobs begin. However, these changes, particularly the shift in job start dates and recovery through change orders, should benefit 2014 results. Sustained increases in backlog, a steady level of identified projects in the Company's market tracking database, and continued strong demand from the private sector demonstrates the market for the Company's services has not diminished and should lead to full year 2014 profitable results.
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