Orion Marine Group Inc. (ORN, Financial) filed Quarterly Report for the period ended 2011-09-30.
Orion Marine Group has a market cap of $179 million; its shares were traded at around $6.7 with a P/E ratio of 21.6 and P/S ratio of 0.5.
For the three months ended September 30, 2011 and 2010, depreciation expense was $5.6 million and $4.9 million, respectively, and for the comparable nine month period depreciation expense was $16.7 million and $14.0 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company s Condensed Consolidated Statements of Income. The assets of the Company are pledged as collateral for the Company s line of credit.
Contract Revenues. Revenues for the three months ended September 30, 2011 decreased approximately 45% as compared with the same period last year, reflecting a general slowdown in the letting of contracts by government agencies faced with budgetary constraints. The decrease was due primarily to gaps between project end dates and the remobilization of equipment to new projects. In addition, we were unable to commence work as expected on two major projects due to permitting and other factors beyond our control, which has shifted revenue to later periods. Contract revenue generated from public agencies, including the US Corps of Engineers, represented 85% of total revenues in the third quarter of 2011, as compared with 60% of publicly funded projects in the prior year period. Revenue generated from the private sector was 15% and 40% in the third quarter of 2011 and 2010, respectively. The shift in work toward the public sector is due in part to the dredging assets purchased in 2010, which added to our capacity to bid on federal projects, as well as to the weak economy, which has reduced capital expenditure spending by the private sector.
Contract Revenues. Revenues for the nine months ended September 30, 2011 decreased approximately 22% as compared with the comparable period last year. The decrease was due to changes in the size, composition and schedules of the jobs in each period. During the second and third quarters of 2011, continued delays in the level of federal government funding for capital infrastructure projects slowed projects put out to bid, and created gaps between project ends and new project starts. Contract revenue generated from public agencies, including the US Corps of Engineers, represented 82% of total revenues in the first nine months of 2011, as compared with 60% of publicly funded projects in the prior year period. Revenue generated from the private sector was 18% and 40% in the first nine months of 2011 and 2010, respectively.
Gross Profit. Gross profit was $9.8 million in the nine month period ended September 30, 2011, a decrease of $43.8 million compared with the nine months ended September 30, 2010, primarily related to increased equipment costs, including an increase in depreciation as a result of acquisitions completed in 2010, and to maintenance and repairs, mainly on dredging assets. Gross profit was impacted additionally by underutilized equipment and to crews idled when projects completed, and by an increase in our estimated for self-insurance claims, related to two non-fatal job related accidents. Gross margin in the in the first nine months of 2011 was 4.8%, as compared with 20.4% in the prior year period. The variance between periods related to the factors described above, to pricing pressure, and to the mix and scope of the contracts in projects in the current year as compared with the same period last year. Our contract self-performance rate during the period was approximately 85% of costs, slightly higher than the first nine months of 2010, when the rate was 83%, as measured by costs.
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Orion Marine Group has a market cap of $179 million; its shares were traded at around $6.7 with a P/E ratio of 21.6 and P/S ratio of 0.5.
Highlight of Business Operations:
At September 30, 2011, 16.3% of our accounts receivable was due from a single customer, and at December 31, 2010, one customer accounted for 17.7% of total receivables. In the three months ended September 30, 2011 four customers generated 64.3% of revenues in the period, of which one was the US Army Corps of Engineers (the "Corps"), which generated 26% of total revenues, and in the three months ended September 30, 2010, two customers generated 47.5% of total revenues, of which the Corps represented 35%. In the nine months ended September 30, 2011, two customers represented 36.1% of total revenues, of which one was the Corps, at 24.6% of total revenues, whereas in the comparable period in 2010, the Corps generated 30.3% of total revenue. Revenue and receivables are a reflection of the nature, scope, schedules and customer base of projects under contract at a given point in time. The Company believes that the loss of a single customer, other than the Corps, would not have a material adverse effect on the Company and its subsidiaries and affiliates.For the three months ended September 30, 2011 and 2010, depreciation expense was $5.6 million and $4.9 million, respectively, and for the comparable nine month period depreciation expense was $16.7 million and $14.0 million, respectively. Substantially all depreciation expense is included in the cost of contract revenue in the Company s Condensed Consolidated Statements of Income. The assets of the Company are pledged as collateral for the Company s line of credit.
Contract Revenues. Revenues for the three months ended September 30, 2011 decreased approximately 45% as compared with the same period last year, reflecting a general slowdown in the letting of contracts by government agencies faced with budgetary constraints. The decrease was due primarily to gaps between project end dates and the remobilization of equipment to new projects. In addition, we were unable to commence work as expected on two major projects due to permitting and other factors beyond our control, which has shifted revenue to later periods. Contract revenue generated from public agencies, including the US Corps of Engineers, represented 85% of total revenues in the third quarter of 2011, as compared with 60% of publicly funded projects in the prior year period. Revenue generated from the private sector was 15% and 40% in the third quarter of 2011 and 2010, respectively. The shift in work toward the public sector is due in part to the dredging assets purchased in 2010, which added to our capacity to bid on federal projects, as well as to the weak economy, which has reduced capital expenditure spending by the private sector.
Contract Revenues. Revenues for the nine months ended September 30, 2011 decreased approximately 22% as compared with the comparable period last year. The decrease was due to changes in the size, composition and schedules of the jobs in each period. During the second and third quarters of 2011, continued delays in the level of federal government funding for capital infrastructure projects slowed projects put out to bid, and created gaps between project ends and new project starts. Contract revenue generated from public agencies, including the US Corps of Engineers, represented 82% of total revenues in the first nine months of 2011, as compared with 60% of publicly funded projects in the prior year period. Revenue generated from the private sector was 18% and 40% in the first nine months of 2011 and 2010, respectively.
Gross Profit. Gross profit was $9.8 million in the nine month period ended September 30, 2011, a decrease of $43.8 million compared with the nine months ended September 30, 2010, primarily related to increased equipment costs, including an increase in depreciation as a result of acquisitions completed in 2010, and to maintenance and repairs, mainly on dredging assets. Gross profit was impacted additionally by underutilized equipment and to crews idled when projects completed, and by an increase in our estimated for self-insurance claims, related to two non-fatal job related accidents. Gross margin in the in the first nine months of 2011 was 4.8%, as compared with 20.4% in the prior year period. The variance between periods related to the factors described above, to pricing pressure, and to the mix and scope of the contracts in projects in the current year as compared with the same period last year. Our contract self-performance rate during the period was approximately 85% of costs, slightly higher than the first nine months of 2010, when the rate was 83%, as measured by costs.
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