Orion (US:ORN)2022-03-03 18:45Financial Data and Key Metrics Changes - Revenues for Q4 2021 were $162 million, down from $170 million in Q4 2020, primarily due to decreased volume in the Marine business [10] - Gross profit for Q4 2021 was $6.6 million compared to $21.7 million in the prior year, with a gross profit margin of 4.1% versus 12.8% in the prior year [10] - Net loss for Q4 2021 was $8.8 million or $0.29 loss per share, including a nonrecurring expense of $2.1 million related to ERP development [13] Business Line Data and Key Metrics Changes - Marine segment revenues for Q4 2021 were $73.1 million with an adjusted EBITDA of $5.2 million and an adjusted EBITDA margin of 7.1%, down from $97.6 million and 13.5% in the prior year [11] - Concrete segment revenues increased to $89.2 million from $72.6 million in Q4 2020, but adjusted EBITDA was negative $4.3 million compared to negative $0.6 million in the prior year [12] Market Data and Key Metrics Changes - The current level of quoted work outstanding is approximately $2.6 billion, up 63% year-over-year, indicating a robust project pipeline [9] - Backlog at the end of Q4 2021 was $590 million, up from $440 million at the end of the previous year [15] Company Strategy and Development Direction - The company aims to focus on winning new awards and replenishing backlog while maintaining a disciplined bidding approach [21] - The Infrastructure Investment and Jobs Act is expected to provide a significant tailwind for public sector projects, particularly in the Marine segment [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the second half of 2021 was impacted by COVID-19 lag effects but expects a reacceleration in 2022 with improving markets and increased backlog [8] - For 2022, the company expects adjusted EBITDA to be in the mid $30 million range, with a strong pipeline of projects and improving bid margins [20] Other Important Information - The company ended the year with $39.4 million of outstanding debt and approximately $12.3 million in cash [16][17] - An amendment to the credit agreement provides for a waiver and greater flexibility regarding leverage and fixed charge coverage ratios [18] Q&A Session Summary Question: Can you provide an update on the Concrete segment and bid margins? - Management indicated that the concrete business has seen pressure on bid margins but expects to burn through lower margin backlog quickly as market conditions improve [27][28] Question: What is the guidance for adjusted EBITDA in 2022? - Management provided guidance of mid $30 million for adjusted EBITDA in 2022, with expectations of improvement as the year progresses [30] Question: Can you update on asset sales and the ERP system implementation? - Both properties remain under contract, with expected closing dates in the second quarter. The ERP system implementation has been pushed out but remains a priority [32][35] Question: What is the CapEx number for 2022? - CapEx is expected to be in the $15 million to $18 million range for the year [54]