Orion (US:ORN)2021-07-31 17:27Financial Data and Key Metrics Changes - Revenues for Q2 2021 were $145.9 million, down from $183.7 million in Q2 2020, attributed to weather, supply chain disruptions, and project timing [14] - Gross profit decreased to $12.3 million from $20.7 million year-over-year, with a gross profit margin of 8.4% compared to 11.3% in the prior year [14][15] - Net income for Q2 2021 was $3.5 million or $0.11 diluted earnings per share, including a one-time gain of $3 million from the sale of a property [19] Business Segment Data and Key Metrics Changes - Marine segment revenues were $63.9 million with an adjusted EBITDA of $7.8 million and a margin of 12.2%, compared to $91.7 million and 10.8% margin in the prior year [16] - Concrete segment revenues were $81.9 million, down from $92 million, with an adjusted EBITDA loss of $433,000 compared to a profit of $2.8 million in the prior year [17] - SG&A expenses were $13.7 million or 9.4% of revenues, down from $16.5 million or 9% of revenues in the prior year [18] Market Data and Key Metrics Changes - The current level of quoted work is approximately $2 billion, up 50% from the previous year, indicating a positive trend in project letting activity [12] - The backlog as of June 30, 2021, was $394.4 million, with $170.2 million from the marine segment and $224.2 million from the concrete segment [20] - The company bid on approximately $2 billion worth of opportunities in Q2 2021, achieving a book-to-bill ratio of 1.2 times and a win rate of 8.8% [20] Company Strategy and Development Direction - The company remains focused on disciplined bidding, avoiding low-margin projects, and targeting larger, longer-duration projects for better operational visibility [11][26] - The strategy includes pursuing opportunities in public sector projects, particularly in marine, and expanding concrete operations into new markets like Florida [27][28] - The company is also investing in an ERP system to enhance decision-making and operational efficiency [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the end markets, particularly in energy and cruise sectors, as they emerge from the pandemic [11][24] - The company anticipates a robust project pipeline due to improved macroeconomic conditions and potential infrastructure funding [12][24] - Management acknowledged challenges from weather and supply chain issues but remains optimistic about achieving long-term profitability goals [19][52] Other Important Information - The company completed the sale of its Tampa property, enhancing liquidity and strengthening the balance sheet [9][21] - As of June 30, 2021, the company had $2.4 million in cash and $42.3 million available under its revolving credit facility, with a leverage ratio of 0.36 times [21][22] Q&A Session Summary Question: Federal transportation bill and its impact on ports - Management confirmed that ports are included in the infrastructure bill, which could act as a catalyst for future projects [33] Question: Timeline for awards on outstanding bids - The timeline varies, with some awards expected soon while others may take months due to evaluation processes [34] Question: Revenue impact from weather in Texas - Weather significantly impacted the concrete business, with an estimated $10 million to $11 million revenue loss due to inefficiencies [50] Question: Update on guidance for adjusted EBITDA - Management is still targeting mid to high $40 million adjusted EBITDA for fiscal 2021, though some performance may shift to 2022 [52] Question: Interest in property sales and asset sales timing - Management reported increased interest in the East West Jones property and expects the Port Lavaca sale to close within 30 to 45 days [60]