New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
July 10, 2014
05:39 EDTORNOrion Marine remains encouraged about 2H14
Orion Marine remains encouraged about 2H14 and beyond, as positive developments in its various end markets continue. As expected, utilization of some of the company's assets declined sequentially in the second quarter due to the accelerated completion of projects in the first quarter, as well as project starts that pushed out into Q3. The company also experienced slightly more than expected idle labor and idle equipment costs due to delays in project start dates. However, these jobs have now begun and, as previously discussed, the company expects to see a strong second half leading to positive results for FY14. During Q2, the company bid on approximately $429M worth of opportunities and was successful on approximately $113M, representing a win rate of approximately 26%. Additionally, the company currently has approximately $110M worth of bids outstanding, of which it is the apparent low bidder on approximately $10M. The company reminds investors that the timing and size of awards can and does affect the win rate in any particular quarter. The company has begun work on its $68M project with the Port of Houston Authority to widen and deepen the entrance channels leading to two container terminals in the Port of Houston. This project represents an important step taken by the Port of Houston to expand its facilities for larger ships eventually transiting through an expanded Panama Canal. The Port's ability to entirely self-fund the project also demonstrates that ports throughout our operating areas may be able to pursue alternative methods of funding capital improvements, rather than relying on an inconsistent federal budgeting process to provide the necessary funds. The private sector continues to drive sustained increases in equipment utilization for the company. As mentioned in the past, the demand for expanded waterside infrastructure from the private sector has largely been driven by energy related customers, private terminal developments and recreational dock infrastructure developments. Bid opportunities remain strong in this sector and are expected to continue for the foreseeable future.
News For ORN From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
September 25, 2014
05:42 EDTORNOrion Marine continues to see positive development in 2H14
Orion Marine Group' outlook for the second half of 2014 continues to show positive development. Delayed projects from Q2 have now fully begun and are contributing to higher levels of overall asset utilization. As expected, the company has also seen an improvement in lettings from the U.S. Army Corps of Engineers during Q3. To date, during Q3, the company has bid on approximately $209M worth of opportunities and has been successful on approximately $66M, representing a win rate of approximately 32%. Additionally, the company currently has approximately $170M worth of bids outstanding, of which it is the apparent low bidder on approximately $47M. The company reminds investors that the timing and size of awards can and does affect the win rate in any particular quarter. During Q3, the company has had a sequential decline in the amount of bid opportunities the company bid on due to normal fluctuations in the timing of lettings and the bid selection process. The company remains pleased with its level of bid opportunities in its tracking database and believes there is ample opportunity to support the continued growth of the company. While the company would have preferred to see a full FY15 appropriations bill passed, Congress did pass a Continuing Resolution to fund the federal government until December 11. The company is hopeful that Congress will fund the Federal Government, including the Corps of Engineers, for the balance of the Government's FY15, once Congress returns after the mid-term elections. Private sector opportunities continue, as demand for expanded waterside infrastructure remains strong. The company expects private sector opportunities to remain strong for the foreseeable future.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use