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HOUSTON, Jan. 22, 2014 (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.
As the Company begins a new year, it remains pleased with strong market fundamentals and continued steady demand for its heavy civil marine construction services. The private sector remains a dependable source of bid opportunities and the Company expects this trend to continue throughout 2014. In the fourth quarter, the Company bid on approximately $498 million worth of opportunities and was successful on approximately $137 million, representing a win rate of approximately 28%. Additionally, the Company currently has approximately $224 million worth of bids outstanding, of which it is the apparent low bidder on approximately $39 million. The Company reminds investors that the timing and size of awards can and does affect the win rate in any particular quarter.
During the fourth quarter, the Company experienced better production on several projects, which led to better than expected utilization of the Company's equipment. This will result in some improvement in gross margin and revenue when compared to the third quarter. However, the better than expected production during the fourth quarter will result in less production during the first quarter 2014 due to the timing of project schedules. It is important to remember that most of the recently announced jobs will not begin until the second quarter of 2014, as currently planned. These two factors will negatively impact the Company's overall fleet utilization and gross margins in the first quarter of 2014. However, the Company continues to build a strong backlog for 2014, and is pleased with a steady level of identified projects in its market tracking database. This coupled with continued strong demand from the private sector, should lead to full year 2014 profitable results.