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Orion Marine Group Inc. (OMGI)
Q1 2009 Earnings Call
May 7, 2009; 10:00 am ET
Mike Pearson - President & Chief Executive Officer
Mark Stauffer - Executive Vice President & Chief Financial Officer
Cabell Acree - Vice President and General Counsel.
Chris DeAlmeida - Director of Investor Relations
Fred Buonocore - CJS Securities
Will Green - Stephens
Alex Rygiel - FBR Capital Market
Jack Kasprzak - BB&T Capital Markets
Will Gabrielski - Broadpoint Amtech
David Yuschak - SMH Capital
Previous Statements by ORN
» Orion Marine Group, Inc. Q4 2008 Earnings Call Transcript
» Orion Marine Group, Inc. Q3 2008 Earnings Call Transcript
» Orion Marine Group, Inc. Q2 2008 Earnings Call Transcript
Good morning and welcome to the Orion Marine Group first quarter 2009 earnings conference call. Joining me today are Mike Pearson, Orion Marine Group’s President and Chief Executive Officer; Mark Stauffer, our Executive Vice President and Chief Financial Officer; and Cabell Acree, our Vice President and General Counsel.
Regarding the format of the call, we have allocated about 15 minutes for prepared remarks in which Mike and Mark will highlight our results for the quarter and outlook for 2009, and then we will open up the call for questions.
During the course of this conference call, we will make projections and other forward-looking statements among other things, are end markets, revenues, gross profits, gross margin, EBITDA, EBITDA margin, backlog, projects and negotiation of pending awards as well as our estimates and assumptions regarding our future growth, EBITDA, EBITDA margins, gross margins, administrative expenses and capital expenditures.
These statements are predictions that are subject to risks and uncertainties, including those describes in our 10-K for 2008, that may cause actual results to differ materially. Moreover, past performance is not necessarily an indicator of future results. By providing this information, we undertake no obligation to update or revise any projections or forward-looking statements, whether results of new developments or otherwise.
Also, please note that EBITDA and EBITDA margin are non-GAAP financial measures under rules of the Securities Exchange Commission, including Regulation G. Please refer to the reconciliation accompanying this earnings call available on our website at www.orionmarinegroup.com for comments on the use of non-GAAP financial measures, as well as applicable reconciliations to the most comparable GAAP measures.
Also, please refer to our earnings release issued this morning, May 7, 2009 and our quarterly and annual filings with the SEC, which are available on our website for additional discussions of risk factors that could cause actual results to differ materially from our current expectations.
Before I turn the call over to Mike, I’d like to take the opportunity to extend a personal invitation to our annual shareholders meeting, which will be held next Thursday May 14, 2009, at 11:00 am Eastern in New York, at the Hilton New York 1335 Avenue.
With that, I will turn the call over to Mike. Mike.
Thank you, Chris. Good morning and thanks for joining us. We once again delivered solid results for this quarter, with revenue and EBITDA margin that exceeded our first quarter goal. Revenues for the first quarter of 2009 increased $17.5 million or 33%, as compared to the first quarter of 2008, which exceeds our first quarter revenue growth goal or 28% to 32%. First quarter EBITDA was $12.1 million, which resulted in an EBITDA margin of 17.2%, which also exceed our first quarter goal range of 14% to 16%.
We have a very health quarter as we continue to good demand for our turnkey services, with increased activity on the federal side and continued good bid opportunities for the future. More specifically we continue to see good demand as foreign expansion plans continue, the cruise industry continue to look at adding new destinations, bridge construction remained a focal point and we saw increased bid activity from the Army Corps of Engineers.
Now turning to our end markets, an outlook for the remainder of the year, as stated before continued port expansion, the need for U.S. infrastructure improvements and coastal and wetland restoration projects, and also the expansion in the cruise industry should continue to provide us with good bid opportunities.
As a reminder, we remain in uncertain economic times and therefore we must continue to be vigilant about the state of our end markets. As we previously stated, it is not unreasonable to think that some of our end markets could see some deterioration or bidding delays as a result of the uncertainty in the economy. However, the other end markets may outperform due to increased spending on infrastructure projects, as well as hurricane protection and restoration projects.
Now, while we’ve not seen any significant pullbacks or delays to-date, we will remain vigilant as the economy continues to be under pressured, and some of our end markets maybe impacted. However, we still believe the impacts of the economic downturn maybe mitigated by the need to rehabilitate America’s crumbling infrastructure and to provide needed improvements for the future.
Now just to highlight some of the major growth drivers that we continue to see for 2009, we believe the Gulf Coast and Southeast Atlantic ports will continue with the expansion plans, despite some decrease in global shipping traffic. We believe funding for these projects has and will remain intact for most of the planned port expansion.
Additionally, the stimulus package provides additional funds for ports in our market areas. For example, recently the ports of Huston and the port of Galveston recently announced $140 million in collected stimulus monies to construct, operate and maintain area channels.