Orion (ORN)2025-04-30 17:38Revenue Performance - Total contract revenues for the three months ended March 31, 2025, were $188.7 million, a 17.4% increase from $160.7 million in the same period of 2024[32] - Marine segment contract revenues increased to $127.2 million in Q1 2025 from $106.3 million in Q1 2024, representing a 19.6% growth[32] - Concrete segment contract revenues rose to $61.5 million in Q1 2025, up from $54.3 million in Q1 2024, marking a 13.5% increase[32] - Contract revenues generated outside the United States accounted for 6.3% of total revenues in Q1 2025, compared to 6.0% in Q1 2024[38] - The Company reported a total of $1.0 million in intersegment revenues between its marine and concrete segments for the three months ended March 31, 2025[85] Financial Position - As of March 31, 2025, the aggregate amount of remaining performance obligations was approximately $839.7 million, with an expectation to recognize $644.7 million, or 77%, in the next 12 months[41] - The Company incurred costs on uncompleted contracts totaling $1.5 billion as of March 31, 2025, down from $1.6 billion at December 31, 2024[39] - The allowance for credit losses was $787,000 as of March 31, 2025, compared to $555,000 at December 31, 2024[35] - As of March 31, 2025, total accrued liabilities decreased to $20.3 million from $26.3 million as of December 31, 2024, representing a reduction of approximately 22.8%[50] - Total debt as of March 31, 2025, was $26.7 million, slightly down from $26.8 million as of December 31, 2024[50] - Other long-term liabilities decreased to $19.7 million as of March 31, 2025, from $20.5 million as of December 31, 2024[66] Expenses and Costs - Depreciation expense for the three months ended March 31, 2025, was $3.2 million, compared to $4.2 million for the same period in 2024[42] - Total lease costs for the three months ended March 31, 2025, amounted to $7.005 million, compared to $6.114 million in 2024, indicating an increase of 14.6%[88] - The Company recorded an income tax expense of $140,000 for the three months ended March 31, 2025, with an effective tax rate of (11.0)%, compared to a benefit of $352,000 and an effective rate of 5.5% for the same period in 2024[72] Shareholder Information - Basic earnings per share for the three months ended March 31, 2025, was based on 39,056,396 weighted average shares outstanding, compared to 32,553,750 for the same period in 2024[76] - The Company issued 71,133 shares under the Employee Stock Purchase Plan (ESPP) during the three months ended March 31, 2025, generating proceeds of $0.3 million[78] - The Company has reserved a total of 1,000,000 shares under the ESPP, all authorized and available for future issuance[78] Credit and Debt Agreements - The Company entered into a Credit Agreement on May 15, 2023, providing for a $65.0 million asset-based revolving credit facility and a $38.0 million fixed asset term loan, maturing on May 15, 2028[51] - The quarterly weighted average interest rate for the Credit Agreement was 11.25% as of March 31, 2025, down from 13.09% in the same period of 2024[55] - The Company had $23.0 million in outstanding borrowings under its Credit Agreement as of March 31, 2025, with a weighted average interest rate of 10.94%[132] Segment Analysis - The Company has determined it has two reportable segments, with contract revenues disaggregated by service line for better financial analysis[32] - The gross profit margin for the marine segment improved to 14.6% in Q1 2025 from 5.8% in Q1 2024[85] - The Company granted 293,073 performance-based units to executives on March 20, 2025, with a fair value of $5.89 per share related to adjusted EBITDA targets[80] - Total share-based compensation expense for the three months ended March 31, 2025, was $1.123 million, compared to $0.358 million for the same period in 2024, representing an increase of 213%[79]