Orion (US:ORN)2021-03-02 22:09Financial Performance - In 2020, the company recorded revenues of $709.9 million, a 0.2% increase compared to 2019, with $388.2 million from the marine segment and $321.7 million from the concrete segment [186]. - The company achieved a net income of $20.2 million in 2020, compared to a net loss of $5.4 million in 2019 [186]. - EBITDA for 2020 was $54.15 million, an increase from $31.37 million in 2019 [180]. - Adjusted EBITDA for 2020 was $54.423 million, up from $39.55 million in 2019 [180]. - Gross profit for the year ended December 31, 2020, was $84.7 million, an increase of $20.7 million or 32.3% from $64.0 million in 2019, with a gross margin of 11.9% compared to 9.0% in the prior year [202]. - Contract revenues for the year ended December 31, 2020, were $709.9 million, a slight increase of approximately 0.2% from $708.4 million in 2019 [201]. Segment Performance - Marine segment revenues for the year ended December 31, 2020, were $388.2 million, an increase of $19.1 million or 5.2% compared to $369.1 million in 2019 [214]. - Concrete segment revenues for the year ended December 31, 2020, were $321.8 million, a decrease of $17.5 million or 5.2% compared to 2019 [216]. - Operating income for the marine segment for the year ended December 31, 2020, was $16.9 million, compared to $1.1 million in 2019, an increase of $15.8 million [215]. - Operating income for the concrete segment increased to $9.7 million in 2020 from $1.1 million in 2019, an increase of $8.6 million [217]. Financial Position - Total assets as of 2020 were $414.189 million, compared to $394.844 million in 2019 [176]. - Total debt, net of debt issuance costs, decreased to $33.867 million in 2020 from $71.697 million in 2019 [176]. - As of December 31, 2020, working capital was $54.8 million, down from $62.2 million at December 31, 2019 [240]. - Unrestricted cash on hand as of December 31, 2020, was $1.6 million, with a borrowing capacity of approximately $63.3 million [240]. - The company reported $1.6 billion of quoted bids outstanding at year-end 2020, with $96 million being the apparent low bidder or awarded contracts subsequent to the end of fiscal 2020 [196]. Cash Flow and Liquidity - In 2020, the company generated approximately $46.0 million in cash from operating activities, compared to a cash outflow of $0.7 million in 2019 [242][243]. - The company expects to meet future liquidity and working capital needs through operating activities for at least the next 12 months [241]. - The company expects to meet its future liquidity and working capital needs through operating cash flows for at least the next 12 months [259]. Debt Management - The company repaid $41.0 million on its revolving line of credit in 2020, in addition to regular debt payments totaling $7.2 million [247]. - As of December 31, 2020, total debt obligations amounted to $35.1 million, with $4.5 million due within one year and $30.6 million due in 1-3 years [268]. - The total long-term debt decreased from $73.3 million in 2019 to $35.1 million in 2020, indicating a significant reduction in debt levels [270]. Strategic Outlook - The company plans to focus on organic growth, greenfield expansion, and strategic acquisitions in 2021 [187]. - The company expects long-term demand for services driven by the need to repair and improve degrading U.S. marine infrastructure and increased cargo volume due to larger ships transiting the Panama Canal [193]. - The company is monitoring federal infrastructure spending, which could create bid opportunities in the future [191]. - The company has nearly $7 billion of federal funding provided by the USACE in connection with disaster recovery in Texas, which may create additional opportunities [198]. - The company anticipates opportunities from local port authorities related to the widened Panama Canal and coastal restoration funded through the RESTORE Act [192]. Risk Factors - The company is exposed to commodity price risks for concrete, steel products, and fuel, which may impact operational results due to fixed-price contracts [273]. - The company does not hedge against increases in commodity prices, which may affect bidding costs for construction contracts [273]. - The company has entered into interest rate swaps to hedge against variability in interest payments on the term loan component of the credit facility [274].