Orion Group Holdings, Inc. (NYSE: ORN) (the “Company”), a leading
specialty construction company, today reported its financial
results for the first quarter ended March 31, 2023.
Highlights for the quarter ended March
31, 2023:
- Backlog and awarded contracts at
the end of the first quarter totaled $1.1 billion
- Entered into a sales contract for
the Company’s East West Jones properties for a purchase price of
$36 million
- Contract revenues decreased 9.0% to
$159.2 million
- Net loss was $12.6 million or $0.39
per diluted share
- Adjusted EBITDA was negative $4.1
million
See definitions and reconciliation of non-GAAP
measures elsewhere in this release.
Management Commentary
“Our first quarter results did not meet our
expectations, primarily due to timing issues, shortfalls and the
continued wind down of legacy low-margin projects. Several of our
projects experienced unexpected customer and weather delays in
the quarter, impacting our production rates and ultimately our
quarterly revenues and profitability. We do not think this quarter
is indicative of our full-year potential by any means. We are
working to complete low-margin projects by mid-year,” said Travis
Boone, Chief Executive Officer of Orion Group Holdings.
“First quarter results withstanding, we made
great progress against our three-point strategic plan for improved
financial performance. First, our initiative to restore
profitability in the concrete segment is generating tangible
results. The month of March was the first profitable month in our
concrete segment in two years. Second, we are nearing the
completion of our ABL credit facility, a key component in
strengthening our financial flexibility. And finally, we entered
into a contract for the sale of our East West Jones properties near
the Houston Shipping Channel for a purchase price of $36 million.
With these funding sources, we will have dry powder to make
investments in the business to drive future growth.”
“There are many positive developments that will
continue to unfold during the year that gives us confidence that we
are on the right track for solid performance in 2023. We will
complete our exit of central Texas concrete jobs, realize the
benefits of our margin improvement efforts, and begin to ramp up
our work in Hawaii. Based on our current bid activity and backlog,
we anticipate that our second quarter financial results will
significantly improve over the first quarter, and we expect the
business to accelerate in the back half of the year. In the
meantime, we’re carefully managing expenses and running the
business as efficiently as possible. We are executing our plan and
are confident in our ability to generate long-term value for our
stakeholders,” concluded Boone.
First Quarter 2023 Results
Contract revenues decreased 9.0% to $159.2 million from $174.9
million in the first quarter last year, primarily due to weather
and customer delays in both businesses and a reduction of concrete
segment revenue in central Texas.
Gross profit was $5.8 million or 3.7% of revenue down from $12.8
million or 7.3% of revenue in the first quarter of
2022. Approximately half of this decrease was due to the
impact of weather in Texas, which lowered labor and equipment
utilization. The rest of the remaining decrease related to clean-up
of low-margin projects resulting in write-downs in both the marine
and concrete businesses. This was partly offset by actions to
manage costs during project delays including reallocating
equipment, reducing the size of the fleet and headcount reductions,
as well as realizing margin improvements in the concrete business
that reflected our margin improvement initiatives.
Selling, general and administrative (“SG&A”) expenses were
$17.0 million, up 5.2% from $16.2 million in the first quarter of
2022. As a percentage of total contract revenues, SG&A
expenses increased to 10.8% from 9.1%, primarily due to lower
revenues in the first quarter. The increase in SG&A
dollars was primarily due to an increase in compensation expense,
partially offset by lower consulting expense related to the
completion of the management transition.
Net loss was $12.6 million or $0.39 per diluted share compared
to a net loss of $4.9 million or $0.16 per diluted share for the
first quarter of 2022.
The first quarter 2023 net loss included $2.3 million ($0.07
diluted earnings per share) of non-recurring items. First quarter
2023 adjusted net loss was $10.3 million ($0.32 diluted loss per
share).
EBITDA was negative $4.9 million, representing a (3.1)% EBITDA
margin, as compared to EBITDA of $3.5 million, or a 2.0% EBITDA
margin in the first quarter last year. Adjusted for non-recurring
items, EBITDA for the first quarter of 2023 was negative $4.1
million, representing a (2.6)% adjusted EBITDA margin, as compared
to adjusted EBITDA for the first quarter of 2022 of $5.2 million,
representing a 3.0% adjusted EBITDA margin.
Backlog
Total backlog at March 31, 2023 was $467.4 million, compared to
$448.8 million at December 31, 2022 and $604.1 million at March 31,
2022. Backlog for the Marine segment was $187.0 million, compared
to $216.7 million at December 31, 2022 and $317.4 million at March
31, 2022. Backlog for the Concrete segment was $280.4 million,
compared to $232.1 million at December 31, 2022 and $286.7 million
at March 31, 2022. In addition, the Company has been awarded $624
million in new project work not included in backlog at the end of
the quarter.
Balance Sheet Update
As of March 31, 2023, current assets were $202.2
million, including cash and cash equivalents of $2.8 million. Total
debt outstanding was $40.0 million.
Credit Facility
The Company has reached an agreement with a
private lender and expects to complete a new ABL credit facility
shortly. This facility will consist of a term loan of $38 million
and revolving credit facility of $65 million. The proceeds of this
facility will be used to retire the Company’s existing credit
facility and for general corporate purposes.
Asset Sales
The Company entered into a contract for the sale
of its East West Jones properties in Harris County, Texas. The
purchase price is $36 million and the transaction is expected to
close in the third quarter of 2023. Proceeds will be used to reduce
debt and for general corporate purposes.
Conference Call Details
Orion Group Holdings will host a conference call
to discuss results for the first quarter 2023 at 9:00 a.m. Eastern
Time/8:00 a.m. Central Time on Tuesday, May 9, 2023. To
participate, please dial (800) 715-9871 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.
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
are not an alternative 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 impairs a
meaningful comparison of operating results. The Company believes
these adjusted financial measures are a useful adjunct to
earnings/loss calculated in accordance with GAAP because management
uses adjusted net income/loss available to common stockholders to
evaluate 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 impairs 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, and
including any estimates, forecasts or assumptions regarding future
revenues or revenue growth, and our ability to negotiate and obtain
the refinancing of our credit facility, the terms, restrictions,
and covenants of our refinancing, and the timing of such
refinancing, are forward-looking statements. Forward-looking
statements also include project award announcements, estimated
project start dates, 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, the effects of the
ongoing COVID-19 pandemic, 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. In light of 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 2022 Annual Report on Form 10-K,
filed on March 16, 2023, 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 310-622-8247orn@finprofiles.com
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Contract revenues |
|
|
159,174 |
|
|
|
174,931 |
|
Costs of contract revenues |
|
|
153,334 |
|
|
|
162,115 |
|
Gross profit |
|
|
5,840 |
|
|
|
12,816 |
|
Selling, general and administrative expenses |
|
|
17,017 |
|
|
|
16,170 |
|
Amortization of intangible assets |
|
|
162 |
|
|
|
310 |
|
Gain on disposal of assets, net |
|
|
(696 |
) |
|
|
(809 |
) |
Operating loss |
|
|
(10,643 |
) |
|
|
(2,855 |
) |
Other (expense) income: |
|
|
|
|
|
|
Other income |
|
|
293 |
|
|
|
44 |
|
Interest income |
|
|
28 |
|
|
|
19 |
|
Interest expense |
|
|
(1,633 |
) |
|
|
(740 |
) |
Other expense, net |
|
|
(1,312 |
) |
|
|
(677 |
) |
Loss before income taxes |
|
|
(11,955 |
) |
|
|
(3,532 |
) |
Income tax expense |
|
|
640 |
|
|
|
1,324 |
|
Net loss |
|
$ |
(12,595 |
) |
|
$ |
(4,856 |
) |
|
|
|
|
|
|
|
Basic loss per share |
|
$ |
(0.39 |
) |
|
$ |
(0.16 |
) |
Diluted loss per share |
|
$ |
(0.39 |
) |
|
$ |
(0.16 |
) |
Shares used to compute loss per share: |
|
|
|
|
|
|
Basic |
|
|
32,180,274 |
|
|
|
30,971,379 |
|
Diluted |
|
|
32,180,274 |
|
|
|
30,971,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
Amount |
|
Percent |
|
|
Amount |
|
Percent |
|
|
|
(dollar amounts in thousands) |
|
Contract revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
57,926 |
|
|
73.0 |
|
% |
|
$ |
57,308 |
|
|
67.8 |
|
% |
Private sector |
|
|
21,372 |
|
|
27.0 |
|
% |
27,172 |
|
|
32.2 |
|
% |
Marine segment total |
|
$ |
79,298 |
|
|
100.0 |
|
% |
|
$ |
84,480 |
|
|
100.0 |
|
% |
Concrete segment |
|
|
|
|
|
|
|
|
|
|
|
|
Public sector |
|
$ |
4,146 |
|
|
5.2 |
|
% |
|
$ |
5,493 |
|
|
6.1 |
|
% |
Private sector |
|
|
75,730 |
|
|
94.8 |
|
% |
84,958 |
|
|
93.9 |
|
% |
Concrete segment total |
|
$ |
79,876 |
|
|
100.0 |
|
% |
|
$ |
90,451 |
|
|
100.0 |
|
% |
Total |
|
$ |
159,174 |
|
|
|
|
|
$ |
174,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
Marine segment |
|
$ |
(6,080 |
) |
|
(7.7 |
) |
% |
|
$ |
1,840 |
|
|
2.2 |
|
% |
Concrete segment |
|
|
(4,563 |
) |
|
(5.7 |
) |
% |
|
|
(4,695 |
) |
|
(5.2 |
) |
% |
Total |
|
$ |
(10,643 |
) |
|
|
|
|
$ |
(2,855 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Net loss |
|
$ |
(12,595 |
) |
|
$ |
(4,856 |
) |
One-time charges and the tax effects: |
|
|
|
|
|
|
ERP implementation |
|
|
186 |
|
|
|
906 |
|
Professional fees related to management transition |
|
|
— |
|
|
|
414 |
|
Severance |
|
|
102 |
|
|
|
73 |
|
Tax rate applied to one-time charges (1) |
|
|
(34 |
) |
|
|
713 |
|
Total one-time charges and the tax effects |
|
|
254 |
|
|
|
2,106 |
|
Federal and state tax valuation allowances |
|
|
2,057 |
|
|
|
(484 |
) |
Adjusted net loss |
|
$ |
(10,284 |
) |
|
$ |
(3,234 |
) |
Adjusted EPS |
|
$ |
(0.32 |
) |
|
$ |
(0.10 |
) |
|
|
|
|
|
|
|
__________________ |
(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. |
|
|
|
|
Three months ended |
|
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Net loss |
|
$ |
(12,595 |
) |
|
$ |
(4,856 |
) |
|
Income tax expense |
|
|
640 |
|
|
|
1,324 |
|
|
Interest expense, net |
|
|
1,605 |
|
|
|
721 |
|
|
Depreciation and amortization |
|
|
5,446 |
|
|
|
6,263 |
|
|
EBITDA (1) |
|
|
(4,904 |
) |
|
|
3,452 |
|
|
Stock-based compensation |
|
|
524 |
|
|
|
370 |
|
|
ERP implementation |
|
|
186 |
|
|
|
906 |
|
|
Professional fees related to management transition |
|
|
— |
|
|
|
414 |
|
|
Severance |
|
|
102 |
|
|
|
73 |
|
|
Adjusted EBITDA(2) |
|
$ |
(4,092 |
) |
|
$ |
5,215 |
|
|
Operating income margin |
|
|
(6.5 |
) |
% |
|
(1.5 |
) |
% |
Impact of depreciation and amortization |
|
|
3.4 |
|
% |
|
3.6 |
|
% |
Impact of stock-based compensation |
|
|
0.3 |
|
% |
0.2 |
|
% |
Impact of ERP implementation |
|
|
0.1 |
|
% |
0.5 |
|
% |
Impact of professional fees related to management transition |
|
|
— |
|
% |
|
0.2 |
|
% |
Impact of severance |
|
|
0.1 |
|
% |
|
— |
|
% |
Adjusted EBITDA margin(2) |
|
|
(2.6 |
) |
% |
|
3.0 |
|
% |
|
|
|
|
|
|
|
|
__________________ |
(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 stock-based compensation, ERP implementation,
professional fees related to management transition and severance.
Adjusted EBITDA margin is a non-GAAP measure calculated by dividing
Adjusted EBITDA by contract revenues. |
|
|
|
|
Marine |
|
|
Concrete |
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
Operating (loss) income |
|
|
(6,080 |
) |
|
|
1,840 |
|
|
|
(4,563 |
) |
|
|
|
(4,695 |
) |
|
Other income |
|
|
293 |
|
|
|
44 |
|
|
|
— |
|
|
|
|
— |
|
|
Depreciation and amortization |
|
|
3,835 |
|
|
|
4,323 |
|
|
|
1,611 |
|
|
|
|
1,940 |
|
|
EBITDA (1) |
|
|
(1,952 |
) |
|
|
6,207 |
|
|
|
(2,952 |
) |
|
|
|
(2,755 |
) |
|
Stock-based compensation |
|
|
519 |
|
|
|
343 |
|
|
|
5 |
|
|
|
|
27 |
|
|
ERP implementation |
|
|
93 |
|
|
|
438 |
|
|
|
93 |
|
|
|
|
468 |
|
|
Professional fees related to management transition |
|
|
— |
|
|
|
200 |
|
|
|
— |
|
|
|
|
214 |
|
|
Severance |
|
|
36 |
|
|
|
73 |
|
|
|
66 |
|
|
|
|
— |
|
|
Adjusted EBITDA(2) |
|
$ |
(1,304 |
) |
|
$ |
7,261 |
|
|
$ |
(2,788 |
) |
|
|
$ |
(2,046 |
) |
|
Operating income margin |
|
|
(7.6 |
) |
% |
|
2.2 |
% |
|
|
(5.7 |
) |
% |
|
|
(5.1 |
) |
% |
Impact of other income |
|
|
0.4 |
|
% |
|
0.1 |
% |
|
|
— |
|
% |
|
|
— |
|
% |
Impact of depreciation and amortization |
|
|
4.8 |
|
% |
|
5.1 |
% |
|
|
2.0 |
|
% |
|
|
2.1 |
|
% |
Impact of stock-based compensation |
|
|
0.7 |
|
% |
0.4 |
% |
— |
|
% |
— |
|
% |
Impact of ERP implementation |
|
|
0.1 |
|
% |
0.5 |
% |
0.1 |
|
% |
0.5 |
|
% |
Impact of professional fees related to management transition |
|
|
— |
|
% |
0.2 |
% |
— |
|
% |
0.2 |
|
% |
Impact of severance |
|
|
— |
|
% |
|
0.1 |
% |
|
|
0.1 |
|
% |
|
|
— |
|
% |
Adjusted EBITDA margin (2) |
|
|
(1.6 |
) |
% |
|
8.6 |
% |
|
|
(3.5 |
) |
% |
|
|
(2.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________ |
(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 stock-based compensation, ERP implementation,
professional fees related to management transition and severance.
Adjusted EBITDA margin is a non-GAAP measure calculated by dividing
Adjusted EBITDA by contract revenues. |
|
|
Three months ended |
|
|
March 31, |
|
|
2023 |
|
|
2022 |
|
Net loss |
|
$ |
(12,595 |
) |
|
$ |
(4,856 |
) |
Adjustments to remove non-cash and non-operating items |
|
|
6,668 |
|
|
|
7,051 |
|
Cash flow from net loss after adjusting for non-cash and
non-operating items |
|
|
(5,927 |
) |
|
|
2,195 |
|
Change in operating assets and liabilities (working capital) |
|
|
2,894 |
|
|
|
7,865 |
|
Cash flows (used in) provided by operating activities |
|
$ |
(3,033 |
) |
|
$ |
10,060 |
|
Cash flows used in investing activities |
|
$ |
(1,300 |
) |
|
$ |
(2,810 |
) |
Cash flows provided by (used in) financing activities |
|
$ |
3,394 |
|
|
$ |
(12,817 |
) |
|
|
|
|
|
|
|
Capital expenditures (included in investing activities above) |
|
$ |
(1,876 |
) |
|
$ |
(3,523 |
) |
|
|
|
|
|
|
|
|
|
Three months ended March 31, |
|
|
2023 |
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
|
|
Net loss |
|
$ |
(12,595 |
) |
|
$ |
(4,856 |
) |
Adjustments to reconcile net Loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,721 |
|
|
|
5,503 |
|
Amortization of ROU operating leases |
|
|
1,211 |
|
|
|
1,176 |
|
Amortization of ROU finance leases |
|
|
725 |
|
|
|
760 |
|
Amortization of deferred debt issuance costs |
|
|
163 |
|
|
|
32 |
|
Deferred income taxes |
|
|
54 |
|
|
|
19 |
|
Stock-based compensation |
|
|
524 |
|
|
|
370 |
|
Gain on disposal of assets, net |
|
|
(695 |
) |
|
|
(809 |
) |
Allowance for credit losses |
|
|
(35 |
) |
|
|
— |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
5,011 |
|
|
|
(13,907 |
) |
Inventory |
|
|
76 |
|
|
|
(189 |
) |
Prepaid expenses and other |
|
|
(1,457 |
) |
|
|
2,504 |
|
Contract assets |
|
|
13,883 |
|
|
|
4,055 |
|
Accounts payable |
|
|
(14,757 |
) |
|
|
12,689 |
|
Accrued liabilities |
|
|
1,802 |
|
|
|
(3,075 |
) |
Operating lease liabilities |
|
|
(1,208 |
) |
|
|
(1,183 |
) |
Income tax payable |
|
|
688 |
|
|
|
1,376 |
|
Contract liabilities |
|
|
(1,147 |
) |
|
|
5,595 |
|
Net cash (used in) provided by operating activities |
|
|
(3,033 |
) |
|
|
10,060 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
Proceeds from sale of property and equipment |
|
|
576 |
|
|
|
713 |
|
Purchase of property and equipment |
|
|
(1,876 |
) |
|
|
(3,523 |
) |
Net cash used in investing activities |
|
|
(1,300 |
) |
|
|
(2,810 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Borrowings from Credit Facility |
|
|
5,000 |
|
|
|
— |
|
Payments made on borrowings from Credit Facility |
|
|
(69 |
) |
|
|
(11,671 |
) |
Loan costs from Credit Facility |
|
|
(586 |
) |
|
|
(494 |
) |
Payments of finance lease liabilities |
|
|
(779 |
) |
|
|
(637 |
) |
Purchase of vested stock-based awards |
|
|
(172 |
) |
|
|
(15 |
) |
Net cash provided by (used in) financing activities |
|
|
3,394 |
|
|
|
(12,817 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(939 |
) |
|
|
(5,567 |
) |
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
3,784 |
|
|
|
12,293 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
2,845 |
|
|
$ |
6,726 |
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,845 |
|
|
|
3,784 |
|
Accounts receivable: |
|
|
|
|
|
|
Trade, net of allowance for credit losses of $515 and $606,
respectively |
|
|
99,612 |
|
|
|
106,758 |
|
Retainage |
|
|
52,870 |
|
|
|
50,873 |
|
Income taxes receivable |
|
|
399 |
|
|
|
402 |
|
Other current |
|
|
3,830 |
|
|
|
3,526 |
|
Inventory |
|
|
2,791 |
|
|
|
2,862 |
|
Contract assets |
|
|
30,020 |
|
|
|
43,903 |
|
Prepaid expenses and other |
|
|
9,789 |
|
|
|
8,229 |
|
Total current assets |
|
|
202,156 |
|
|
|
220,337 |
|
Property and equipment, net of depreciation |
|
|
97,307 |
|
|
|
100,977 |
|
Operating lease right-of-use assets, net of amortization |
|
|
14,765 |
|
|
|
14,978 |
|
Financing lease right-of-use assets, net of amortization |
|
|
15,202 |
|
|
|
15,839 |
|
Inventory, non-current |
|
|
5,464 |
|
|
|
5,469 |
|
Intangible assets, net of amortization |
|
|
7,155 |
|
|
|
7,317 |
|
Deferred income tax asset |
|
|
73 |
|
|
|
70 |
|
Other non-current |
|
|
2,065 |
|
|
|
2,168 |
|
Total assets |
|
$ |
344,187 |
|
|
$ |
367,155 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current debt, net of issuance costs |
|
$ |
40,122 |
|
|
$ |
34,956 |
|
Accounts payable: |
|
|
|
|
|
|
Trade |
|
|
72,033 |
|
|
|
87,605 |
|
Retainage |
|
|
1,188 |
|
|
|
1,198 |
|
Accrued liabilities |
|
|
20,839 |
|
|
|
18,466 |
|
Income taxes payable |
|
|
1,210 |
|
|
|
522 |
|
Contract liabilities |
|
|
36,573 |
|
|
|
37,720 |
|
Current portion of operating lease liabilities |
|
|
4,936 |
|
|
|
4,738 |
|
Current portion of financing lease liabilities |
|
|
3,486 |
|
|
|
4,031 |
|
Total current liabilities |
|
|
180,387 |
|
|
|
189,236 |
|
Long-term debt, net of debt issuance costs |
|
|
(93 |
) |
|
|
716 |
|
Operating lease liabilities |
|
|
10,609 |
|
|
|
11,018 |
|
Financing lease liabilities |
|
|
10,882 |
|
|
|
11,102 |
|
Other long-term liabilities |
|
|
16,577 |
|
|
|
17,072 |
|
Deferred income tax liability |
|
|
268 |
|
|
|
211 |
|
Total liabilities |
|
|
218,630 |
|
|
|
229,355 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock -- $0.01 par value, 10,000,000 authorized, none
issued |
|
|
— |
|
|
|
— |
|
Common stock -- $0.01 par value, 50,000,000 authorized,
32,885,972 and 32,770,550 issued; 32,174,741 and 32,059,319
outstanding at March 31, 2023 and December 31, 2022,
respectively |
|
|
329 |
|
|
|
328 |
|
Treasury stock, 711,231 shares, at cost, as of March 31, 2023 and
December 31, 2022, respectively |
|
|
(6,540 |
) |
|
|
(6,540 |
) |
Additional paid-in capital |
|
|
188,535 |
|
|
|
188,184 |
|
Retained loss |
|
|
(56,767 |
) |
|
|
(44,172 |
) |
Total stockholders’ equity |
|
|
125,557 |
|
|
|
137,800 |
|
Total liabilities and stockholders’ equity |
|
$ |
344,187 |
|
|
$ |
367,155 |
|
|
|
|
|
|
|
|
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