Orion Group Holdings Reports Third Quarter 2024 Results

GlobeNewswire Inc.

October 30, 2024 8:06PM GMT

HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading specialty construction company, today reported its financial results for the third quarter ended September 30, 2024.

Highlights for the quarter ended September 30, 2024:

Contract revenues of $226.7 million
GAAP net income of $4.3 million or $0.12 per diluted share
Adjusted net income of $5.6 million or $0.16 per diluted share
Adjusted EBITDA of $15.2 million
Cash flow from operations of $35.2 million
Backlog and contracted or awarded subsequent to quarter end totaled $806.7 million

See definitions and reconciliation of non-GAAP measures elsewhere in this release.

Management Commentary

“I am pleased to report that our team delivered a strong third quarter, including 35% contract revenue growth, 62% Adjusted EBITDA growth, and cash flow from operations of $35.2 million. In the beginning of the year, we said that we expected momentum to pick up in the back half of the year and that played out in the third quarter,” said Travis Boone, CEO of Orion Group Holdings. “Our top line growth was largely driven by the Pearl Harbor and Grand Bahama Shipyard Dry Dock projects in addition to several projects that began this summer. Our third quarter results demonstrate the level of profitability our business can generate as we scale and grow. For the full year, we are on target to deliver Adjusted EBITDA within our previously communicated guidance range of $40 million to $45 million for 2024, which would greatly exceed our Adjusted EBITDA over the last several years.”

“Looking ahead, we are excited about our future. We continue to see indicators of increasing market demand for our specialty marine and concrete services funded by both the government and private sector. From the Department of Defense’s investment to protect U.S. interests in the Pacific, to Infrastructure Investment and Jobs Act funds beginning to trickle down into construction hands, there is significant marine project work to pursue and win over the coming years. On the Concrete side of the business, data centers continue to generate significant opportunities while a lower interest rate and cost of capital may also stimulate commercial construction in our key Houston and Dallas markets, which continue to be growth centers. With our highly-skilled teams, improved business fundamentals, and strengthened balance sheet, we are well positioned to capitalize on the opportunities ahead,” concluded Boone.

Third Quarter 2024 Results

Contract revenues of $226.7 million increased $58.2 million or 34.5% from $168.5 million in the third quarter last year, primarily due to an increase in Marine segment revenue related to the Pearl Harbor drydock project, partially offset by lower Concrete segment revenue due to our deliberate efforts to adhere to disciplined bidding standards to win quality work at attractive margins.

Gross profit increased to $27.1 million or 11.9% of revenue, up from $19.1 million or 11.3% of revenue in the third quarter of 2023. The increase in gross profit dollars and margin was primarily driven by improved pricing of projects in both segments stemming from higher quality projects and improved execution.

Selling, general and administrative (“SG&A”) expenses were $20.8 million, up from $17.1 million in the third quarter of 2023. As a percentage of total contract revenues, SG&A expenses decreased to 9.2% from 10.2%. The increase in SG&A dollars reflected an increase in compensation expense, business development spending and legal expenses.

Net income for the third quarter was $4.3 million ($0.12 per diluted share) compared to a net loss of $0.7 million ($0.02 per diluted share) in the third quarter of 2023.

Third quarter 2024 net income included $1.4 million ($0.04 diluted income per share) of non-recurring items. Third quarter 2024 adjusted net income was $5.6 million ($0.16 diluted income per share).

EBITDA for the third quarter of 2024 was $13.5 million, representing a 5.9% EBITDA margin, as compared to EBITDA of $8.7 million, or a 5.2% EBITDA margin in the third quarter last year. Adjusted EBITDA increased to $15.2 million, or a 6.7% Adjusted EBITDA margin. This compares to Adjusted EBITDA of $9.4 million, or 5.6% Adjusted EBITDA margin in the prior year period.

Backlog

Total backlog at September 30, 2024 was $690.5 million, compared to $758.4 million at June 30, 2024 and $877.5 million at September 30, 2023. Backlog for the Marine segment was $537.0 million at September 30, 2024, compared to $567.1 million at June 30, 2024 and $699.9 million at September 30, 2023. Backlog for the Concrete segment was $153.5 million at September 30, 2024, compared to $191.3 million at June 30, 2024 and $177.6 million at September 30, 2023.

Recent Contract Wins

Subsequent to the quarter end, the Company was awarded $116 million in new contract awards. Orion Marine in the Pacific Region was awarded a $30.6 million marine subcontract to support Skanska USA to perform phased temporary trestle activities for the SR 520, I-5 to Montlake, Portage Bay Bridge project. The owner is the Washington State Department of Transportation. This work is expected to begin in the fourth quarter of 2024 with a construction duration of approximately six months for the first phase.

In addition, the Orion Marine Gulf operation will be performing Turning Basin North Wharf 16 Bulkhead Repairs for the Port of Houston, an $8.5 million contract, with a start date in the fourth quarter of 2024 with an expected completion in the middle of 2025.

In the Concrete business, Orion was awarded a $18.2 million contract as a subcontractor to Harvey Builders, for the Ritz Carlton Residences in The Woodlands, Texas. The project is expected to begin in the fourth quarter of 2024 with an expected duration of approximately two years.

Balance Sheet Update

On September 12, 2024, the Company raised $26.5 million in net proceeds from a 5.6 million share offering, which included the exercise in full of the underwriter’s overallotment option, at $5.15 per share. The Company will use the net proceeds from this offering for working capital and general corporate purposes, including the continued repayment of indebtedness under its credit agreement.

As of September 30, 2024, current assets were $281.0 million, including unrestricted cash and cash equivalents of $28.3 million. Total debt outstanding as of September 30, 2024 was $28.0 million. At the end of the quarter, the Company had no outstanding borrowings under its revolving credit facility.

Conference Call Details

Orion Group Holdings will host a conference call to discuss results for the third quarter 2024 at 9:00 a.m. Eastern Time/8:00 a.m. Central Time on Thursday, October 31, 2024. To participate, please call (844) 481-2994 and ask for the Orion Group Holdings Conference Call. A live audio webcast of the call will also be available on the Investor Relations section of Orion’s website at https://www.oriongroupholdingsinc.com/investor/ and will be archived for replay.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. The Company’s website is located at: https://www.oriongroupholdingsinc.com.

Backlog Definition

Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress but are not yet complete. The Company cannot guarantee that the revenue implied by its backlog will be realized, or, if realized, will result in earnings. Backlog can fluctuate from period to period due to the timing and execution of contracts. The typical duration of the Company’s projects ranges from three to nine months on shorter projects to multiple years on larger projects. The Company's backlog at any point in time includes both revenue it expects to realize during the next twelve-month period as well as revenue it expects to realize in future years.

Non-GAAP Financial Measures

This press release includes the financial measures “adjusted net income/loss,” “adjusted earnings/loss per share,” “EBITDA,” "Adjusted EBITDA" and “Adjusted EBITDA margin." These measurements are “non-GAAP financial measures” under rules of the Securities and Exchange Commission, including Regulation G. The non-GAAP financial information may be determined or calculated differently by other companies. By reporting such non-GAAP financial information, the Company does not intend to give such information greater prominence than comparable GAAP financial information. Investors are urged to consider these non-GAAP measures in addition to and not in substitute for measures prepared in accordance with GAAP.

Adjusted net income/loss and adjusted earnings/loss per share should not be viewed as an equivalent financial measure to net income/loss or earnings/loss per share. Adjusted net income/loss and adjusted earnings/loss per share exclude certain items that management believes impair a meaningful evaluation of the Company’s financial performance. The Company believes these adjusted financial measures are a useful supplement to earnings/loss calculated in accordance with GAAP because they better inform our common stockholders as to the Company's operational trends and performance relative to other companies. Generally, items excluded are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.

Orion Group Holdings defines EBITDA as net income/loss before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that management believes impair a meaningful comparison of operating results. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for the period by contract revenues for the period. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA margin is operating margin, which represents operating income divided by contract revenues. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are used internally to evaluate current operating expense, operating efficiency, and operating profitability on a variable cost basis, by excluding the depreciation and amortization expenses, primarily related to capital expenditures and acquisitions, and net interest and tax expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information regarding the Company's ability to meet future debt service and working capital requirements while providing an overall evaluation of the Company's financial condition. In addition, EBITDA is used internally for incentive compensation purposes. The Company includes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to provide transparency to investors as they are commonly used by investors and others in assessing performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have certain limitations as analytical tools and should not be used as a substitute for operating margin, net income, cash flows, or other data prepared in accordance with GAAP, or as a measure of the Company's profitability or liquidity.

Forward-Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt or maintain compliance with debt covenants, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward-looking statements also include project award announcements, estimated project start dates, ramp-up of contract activity, anticipated revenues, and contract options, which may or may not be awarded in the future. Forward-looking statements involve risks, including those associated with the Company's fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. Considering these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to the Company's 2023 Annual Report on Form 10-K, filed on March 1, 2024 which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contacts:

Financial Profiles, Inc.
Margaret Boyce 310-622-8247
orn@finprofiles.com

Orion Group Holdings, Inc. and SubsidiariesCondensed Statements of Operations(In Thousands, Except Share and Per Share Information)(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2024			2023			2024		2023
Contract revenues	$	226,675			$	168,476		$	579,514		$	510,184
Costs of contract revenues		199,611				149,406			518,631			471,488
Gross profit		27,064				19,070			60,883			38,696
Selling, general and administrative expenses		20,846				17,135			60,980			52,271
Amortization of intangible assets		—				59			—			383
Gain on disposal of assets, net		(1,563	)			(685	)		(1,986	)		(7,915	)
Operating income (loss)		7,781				2,561			1,889			(6,043	)
Other (expense) income:
Other income		107				49			299			592
Interest income		73				21			97			90
Interest expense		(3,617	)			(3,414	)		(10,336	)		(7,674	)
Other expense, net		(3,437	)			(3,344	)		(9,940	)		(6,992	)
Income (loss) before income taxes		4,344				(783	)		(8,051	)		(13,035	)
Income tax expense (benefit)		82				(123	)		347			475
Net income (loss)	$	4,262			$	(660	)	$	(8,398	)	$	(13,510	)

Basic net income (loss) per share	$	0.12			$	(0.02	)	$	(0.25	)	$	(0.42	)
Diluted net income (loss) per share	$	0.12			$	(0.02	)	$	(0.25	)	$	(0.42	)
Shares used to compute net income (loss) per share:
Basic		34,494,302				32,384,446			33,390,722			32,285,921
Diluted		34,518,680				32,384,446			33,390,722			32,285,921

Orion Group Holdings, Inc. and SubsidiariesSelected Results of Operations(In Thousands, Except Share and Per Share Information)(Unaudited)

	Three months ended September 30,
	2024			2023
	Amount		Percent		Amount		Percent
	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	94,719			67.7	%		$	61,144		75.6	%
Private sector		45,294			32.3	%			19,769		24.4	%
Marine segment total	$	140,013			100.0	%		$	80,913		100.0	%
Concrete segment
Public sector	$	10,782			12.4	%		$	7,974		9.1	%
Private sector		75,880			87.6	%			79,589		90.9	%
Concrete segment total	$	86,662			100.0	%		$	87,563		100.0	%
Total	$	226,675					$	168,476

Operating income
Marine segment	$	5,485			3.9	%		$	2,001		2.5	%
Concrete segment		2,296			2.6	%			560		0.6	%
Total	$	7,781					$	2,561

	Nine months ended September 30,
	2024			2023
	Amount		Percent		Amount		Percent
	(dollar amounts in thousands)
Contract revenues
Marine segment
Public sector	$	290,995			77.1	%		$	193,813		74.3	%
Private sector		86,296			22.9	%			66,941		25.7	%
Marine segment total	$	377,291			100.0	%		$	260,754		100.0	%
Concrete segment
Public sector	$	20,211			10.0	%		$	17,662		7.1	%
Private sector		182,012			90.0	%			231,768		92.9	%
Concrete segment total	$	202,223			100.0	%		$	249,430		100.0	%
Total	$	579,514					$	510,184

Operating (loss) income
Marine segment	$	(4,847	)		(1.3	)%		$	(587	)	(0.2	)%
Concrete segment		6,736			3.3	%			(5,456	)	(2.2	)%
Total	$	1,889					$	(6,043	)

Orion Group Holdings, Inc. and SubsidiariesReconciliation of Adjusted Net Income (Loss)(In thousands except per share information)(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2024			2023			2024		2023
Net income (loss)	$	4,262			$	(660	)	$	(8,398	)	$	(13,510	)
Adjusting items and the tax effects:
Net gain on Port Lavaca South Yard property sale		—				—			—			(5,202	)
Share-based compensation		1,016				364			2,930			1,833
ERP implementation		342				314			1,641			810
Severance		4				—			85			126
Process improvement initiatives		393				—			393			—
Tax rate applied to one-time charges (1)		(1,309	)			90			(1,879	)		464
Total adjusting items and the tax effects		446				768			3,170			(1,969	)
Federal and state tax valuation allowances		934				891			3,344			2,961
Adjusted net income (loss)	$	5,642			$	999		$	(1,884	)	$	(12,518	)
Adjusted EPS	$	0.16			$	0.03		$	(0.06	)	$	(0.39	)

(1) Items are taxed discretely using the Company's effective tax rate which differs from the Company’s statutory federal rate primarily due to state income taxes and the non-deductibility of other permanent items.

Orion Group Holdings, Inc. and SubsidiariesAdjusted EBITDA and Adjusted EBITDA Margin Reconciliations(In Thousands, Except Margin Data)(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2024		2023			2024			2023
Net income (loss)	$	4,262		$	(660	)		$	(8,398	)		$	(13,510	)
Income tax expense (benefit)		82			(123	)			347				475
Interest expense, net		3,544			3,393				10,239				7,584
Depreciation and amortization		5,568			6,093				17,558				16,882
EBITDA (1)		13,456			8,703				19,746				11,431
Share-based compensation		1,016			364				2,930				1,833
Net gain on Port Lavaca South Yard property sale		—			—				—				(5,202	)
ERP implementation		342			314				1,641				810
Severance		4			—				85				126
Process improvement initiatives		393			—				393				—
Adjusted EBITDA(2)	$	15,211		$	9,381			$	24,795			$	8,998
Operating income margin		3.4	%		1.5		%		0.3		%		(1.2	)	%
Impact of other income		—	%		0.1		%		0.1		%		0.1		%
Impact of depreciation and amortization		2.5	%		3.6		%		3.0		%		3.3		%
Impact of share-based compensation		0.4	%		0.2		%		0.5		%		0.4		%
Impact of net gain on Port Lavaca South Yard property sale		—	%		—		%		—		%		(1.0	)	%
Impact of ERP implementation		0.2	%		0.2		%		0.3		%		0.2		%
Impact of severance		—	%		—		%		—		%		—		%
Impact of process improvement initiatives		0.2	%		—		%		0.1		%		—		%
Adjusted EBITDA margin(2)		6.7	%		5.6		%		4.3		%		1.8		%

(1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.

(2) Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for share-based compensation, net gain on Port Lavaca South Yard property sale, ERP implementation, severance and process improvement initiatives. Adjusted EBITDA margin is a non-GAAP measure calculated by dividing Adjusted EBITDA by contract revenues.

Orion Group Holdings, Inc. and SubsidiariesAdjusted EBITDA and Adjusted EBITDA Margin Reconciliations by Segment(In Thousands, Except Margin Data)(Unaudited)

	Marine		Concrete
	Three months ended		Three months ended
	September 30,		September 30,
	2024			2023			2024		2023
Operating income	$	5,485			$	2,001		$	2,296		$	560
Other income		86				49			21			—
Depreciation and amortization		4,552				4,771			1,016			1,322
EBITDA (1)		10,123				6,821			3,333			1,882
Share-based compensation		915				341			101			23
ERP implementation		194				153			148			161
Severance		4				—			—			—
Process improvement initiatives		256				—			137			—
Adjusted EBITDA(2)	$	11,492			$	7,315		$	3,719		$	2,066
Operating income margin		3.9	%			2.5	%		2.6	%		0.6	%
Impact of other income		—	%			—	%		—	%		—	%
Impact of depreciation and amortization		3.3	%			5.9	%		1.2	%		1.6	%
Impact of share-based compensation		0.7	%			0.4	%		0.1	%		—	%
Impact of ERP implementation		0.1	%			0.2	%		0.2	%		0.2	%
Impact of severance		—	%			—	%		—	%		—	%
Impact of process improvement initiatives		0.2	%			—	%		0.2	%		—	%
Adjusted EBITDA margin (2)		8.2	%			9.0	%		4.3	%		2.4	%

	Marine		Concrete
	Nine months ended		Nine months ended
	September 30,		September 30,
	2024			2023			2024		2023
Operating (loss) income	$	(4,847	)		$	(587	)	$	6,736		$	(5,456	)
Other income		217				592			82			—
Depreciation and amortization		14,405				12,418			3,153			4,464
EBITDA (1)		9,775				12,423			9,971			(992	)
Share-based compensation		2,735				1,783			195			50
Net gain on Port Lavaca South Yard property sale		—				(5,202	)		—			—
ERP implementation		1,068				414			573			396
Severance		85				38			—			88
Process improvement initiatives		256				—			137			—
Adjusted EBITDA(2)	$	13,919			$	9,456		$	10,876		$	(458	)
Operating income margin		(1.3	)%			(0.2	)%		3.3	%		(2.2	)%
Impact of other income		0.1	%			0.1	%		—	%		—	%
Impact of depreciation and amortization		3.8	%			4.8	%		1.6	%		1.8	%
Impact of share-based compensation		0.7	%			0.7	%		0.1	%		—	%
Impact of net gain on Port Lavaca South Yard property sale		—	%			(2.0	)%		—	%		—	%
Impact of ERP implementation		0.3	%			0.2	%		0.3	%		0.2	%
Impact of severance		—	%			—	%		—	%		—	%
Impact of process improvement initiatives		0.1	%			—	%		0.1	%		—	%
Adjusted EBITDA margin (2)		3.7	%			3.6	%		5.4	%		(0.2	)%

(1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.

Orion Group Holdings, Inc. and SubsidiariesCondensed Statements of Cash Flows Summarized(In Thousands)(Unaudited)

	Three months ended		Nine months ended
	September 30,		September 30,
	2024			2023			2024		2023
Net income (loss)	$	4,262			$	(660	)	$	(8,398	)	$	(13,510	)
Adjustments to remove non-cash and non-operating items		8,362				8,214			27,874			16,393
Cash flow from net income after adjusting for non-cash and non-operating items		12,624				7,554			19,476			2,883
Change in operating assets and liabilities (working capital)		22,532				(24,079	)		(20,163	)		(31,384	)
Cash flows provided by (used in) operating activities	$	35,156			$	(16,525	)	$	(687	)	$	(28,501	)
Cash flows (used in) provided by investing activities	$	(2,589	)		$	(1,650	)	$	(8,722	)	$	5,391
Cash flows (used in) provided by financing activities	$	(9,150	)		$	13,990		$	6,725		$	23,207

Capital expenditures (included in investing activities above)	$	(4,157	)		$	(2,387	)	$	(10,644	)	$	(6,678	)

Orion Group Holdings, Inc. and SubsidiariesCondensed Statements of Cash Flows(In Thousands)(Unaudited)


	Nine months ended September 30,
	2024			2023
Cash flows from operating activities
Net loss	$	(8,398	)		$	(13,510	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		11,961				13,874
Amortization of ROU operating leases		7,491				4,456
Amortization of ROU finance leases		5,597				3,008
Amortization of deferred debt issuance costs		1,562				1,067
Deferred income taxes		(36	)			(76	)
Share-based compensation		2,930				1,833
Gain on disposal of assets, net		(1,986	)			(7,914	)
Allowance for credit losses		355				26
Change in operating assets and liabilities:
Accounts receivable		(40,276	)			(9,410	)
Income tax receivable		(69	)			(66	)
Inventory		(567	)			(514	)
Prepaid expenses and other		4,940				3,076
Contract assets		23,027				(715	)
Accounts payable		33,481				(36,223	)
Accrued liabilities		(14,333	)			7,096
Operating lease liabilities		(6,625	)			(4,566	)
Income tax payable		(54	)			3
Contract liabilities		(19,687	)			9,935
Net cash used in operating activities		(687	)			(28,501	)
Cash flows from investing activities:
Proceeds from sale of property and equipment		1,922				12,069
Purchase of property and equipment		(10,644	)			(6,678	)
Net cash (used in) provided by investing activities		(8,722	)			5,391
Cash flows from financing activities:
Borrowings on credit		39,279				89,491
Payments made on borrowings on credit		(39,671	)			(73,236	)
Payments made on term loan		(10,000	)			—
Proceeds from failed sale-leaseback arrangements		—				14,140
Payments made on failed sale-leaseback arrangements		(3,172	)			—
Proceeds from sale-leaseback financing		—				2,359
Loan costs from Credit Facility		(393	)			(6,532	)
Payments of finance lease liabilities		(6,456	)			(2,524	)
Proceeds from issuance of common stock		27,206				—
Payments related to tax withholding for share-based compensation		(436	)			(491	)
Exercise of stock options		368				—
Net cash provided by financing activities		6,725				23,207
Net change in cash, cash equivalents and restricted cash		(2,684	)			97
Cash, cash equivalents and restricted cash at beginning of period		30,938				3,784
Cash, cash equivalents and restricted cash at end of period	$	28,254			$	3,881

Orion Group Holdings, Inc. and SubsidiariesCondensed Balance Sheets(In Thousands, Except Share and Per Share Information)

	September 30,		December 31,
	2024			2023
	(Unaudited)

Current assets:
Cash and cash equivalents	$	28,254			$	30,938
Accounts receivable:
Trade, net of allowance for credit losses of $716 and $361, as of September 30, 2024 and December 31, 2023, respectively		147,446				101,229
Retainage		36,486				42,044
Income taxes receivable		695				626
Other current		3,153				3,864
Inventory		2,317				2,699
Contract assets		58,495				81,522
Prepaid expenses and other		4,141				8,894
Total current assets		280,987				271,816
Property and equipment, net of depreciation		86,254				87,834
Operating lease right-of-use assets, net of amortization		29,202				25,696
Financing lease right-of-use assets, net of amortization		25,179				23,602
Inventory, non-current		7,309				6,361
Deferred income tax asset		27				26
Other non-current		1,371				1,558
Total assets	$	430,329			$	416,893
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current debt, net of issuance costs	$	4,694			$	13,453
Accounts payable:
Trade		114,231				80,294
Retainage		2,328				2,527
Accrued liabilities		23,581				37,074
Income taxes payable		516				570
Contract liabilities		44,392				64,079
Current portion of operating lease liabilities		8,215				9,254
Current portion of financing lease liabilities		10,852				8,665
Total current liabilities		208,809				215,916
Long-term debt, net of debt issuance costs		23,276				23,740
Operating lease liabilities		21,844				16,632
Financing lease liabilities		11,300				13,746
Other long-term liabilities		22,656				25,320
Deferred income tax liability		29				64
Total liabilities		287,914				295,418
Stockholders’ equity:
Preferred stock -- $0.01 par value, 10,000,000 authorized, none issued		—				—
Common stock -- $0.01 par value, 50,000,000 authorized, 39,610,116 and 33,260,011 issued; 38,898,885 and 32,548,780 outstanding at September 30, 2024 and December 31, 2023, respectively		396				333
Treasury stock, 711,231 shares, at cost, as of September 30, 2024 and December 31, 2023, respectively		(6,540	)			(6,540	)
Additional paid-in capital		219,004				189,729
Retained loss		(70,445	)			(62,047	)
Total stockholders’ equity		142,415				121,475
Total liabilities and stockholders’ equity	$	430,329			$	416,893

Orion Group Holdings, Inc. and SubsidiariesGuidance - Adjusted EBITDA Reconciliation(In Thousands)(Unaudited)

	Twelve Months Ended
	December 31, 2024
Net (loss) income	$	(3,543	)	$	1,457
Income tax expense		728			728
Interest expense, net		12,675			12,675
Depreciation and amortization		23,168			23,168
EBITDA (1)		33,028			38,028
Share-based compensation		4,023			4,023
ERP implementation		2,092			2,092
Process improvement initiatives		680			680
Severance		177			177
Adjusted EBITDA(2)	$	40,000		$	45,000

(1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation and amortization.

(2) Adjusted EBITDA is a non-GAAP measure that represents EBITDA adjusted for share-based compensation, ERP implementation, severance and process improvement initiatives.