Building the Future D A.. DAVIDSON DA CONFERENCE SEPTEMBER 11, 2012

Transcription

1 Building the Future D A DAVIDSON CONFERENCE D.A. DAVIDSON CONFERENCE SEPTEMBER 11, 2012

2 SAFE HARBOR STATEMENT The matters discussed in this presentation may make projections and other forward-looking statements regarding, among other things, estimates for the remainder of fiscal year revenues, gross profit, gross margin, EBITDA, backlog, projects in negotiation and pending awards, as well as our estimates and assumptions regarding future revenue growth, EBITDA, gross margins, administrative expenses and capital expenditures. These statements are predictions that are subject to risks and uncertainties that may cause actual results to differ materially. Moreover, past performance is not necessarily an indicator of future results. By providing this information, Oi Orion Marine Group undertakes no obligation to update or revise any projections or forward-looking statements, whether as a result of new developments or otherwise. Please refer to the Company s Form 10-K filed on March 6, 2012, which is available on Orion Marine Group s website at for additional discussion of risk factors that could cause actual results to differ materially from our current expectations. 2

3 LEADING HEAVY CIVIL MARINE CONTRACTOR Orion Marine Group specializes in heavy-civil marine construction Operates in shallow water environments (typically <= 50 ft) Services: marine facilities construction (bridges, docks, pipelines, environmental), dredging, specialty services Diverse customer base: Federal, State, Local, and Private Orion Marine Group at a glance Founded in 1994; IPO in Revenues: $260M Employees: ~ 1,000 Geographies: Gulf Coast, Southeast Atlantic, Pacific Region, Canada, & Caribbean 3

4 FINANCIAL STRENGTH Orion Marine Group has a solid financial background to help drive future growth in markets and projects Conservative balance sheet Solid cash position Low Debt Access to capital markets $400 million in bonding capacity Strategic long-term focus on growth 4

5 BOOKINGS ARE HOLDING STEADY x 2.00x 1.80x 160x 1.60x x 1.40x 1.33x Book to B Bill 1.20x 1.00x 0.80x 1.03x 0.99x 0.75x 0.71x 0.68x 0.60x 0.58x 0.40x 0.32x 0.20x - Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 5

6 HEALTHY BACKLOG LEVEL $ $250 $255.0 $218.1 $217.3 $215.4 Backlog ($ Millions) $194.5 $200 $150 $140.5 $100 $119.8 $146.1 $164.5 $193.7 $50 $0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 6

7 MAINTAINING SUCCESS RATE Dollar amount of projects bid and won during 2 nd Quarter of 2012* $310 Million Amount Bid $52 Million * Per Q2 12 earnings release Amount Won 17% Win Rate 7

8 CHALLENGING ENVIRONMENT CONTINUES Uncertain pace of Corps lettings Lack of clarity on FY2013 budget for the Corps of Engineers Continued pricing pressure on marine construction jobs 8

9 BID MARKET OUTLOOK REMAINS HIGH We believe there are ample opportunities to continue to grow our market database Market Database Opportunities $6.0 $5.0 llions $ Bi $3.0 $3.5 $4.0 $ Source: Internal Company Database 9

10 WATERWAYS USAGE CONTINUES TO GROW $250,000 Total U.S. Exports & Imports June 2012 $200,000 $150,000 $ Millions $100, $50,000 $- Apr-12 May-12 Jun-12 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Exports Imports 10 Source: US Census Bureau

11 PREPARING FOR THE EXPANSION Panama Canal Expansion Gulf and East Coast Ports deepening channels and expanding facilities to handle larger ships Recent Survey by the AAPA predicts $22.1 billion in Capital spending by ports along the Gulf Coast alone for Source: Panama Canal Authority 11

12 CORPS VITAL TO WATERWAYS US Army Corps of Engineers is the primary funding source for the Nations Waterways Annual Fiscal Year Budget $2.3 $2.5 $2.5 $2.5 $2.4 $2.4 $2.5 $ Billion ns $1.6 $1.5 $1.4 $1.7 $1.7 $1.7 $ * Operations & Maintenance Construction Source: US Army Corps of Engineers *2013 budget has been passed in House of Representatives, awaits action by the Senate 12

13 COASTAL RESTROATION RESTORE Act recently signed into law by the President dedicates 80% of fines against BP to go towards coastal restoration in the 5 Gulf Coast States Fines have yet to be levied but are estimated to be between $5 $20 billion as dictated by the Clean Water Act Will be a long term driver of coastal restoration work 13

14 BRIDGES ARE IN A STATE OF DISREPAIR 2009 Infrastructure Report Card Aviation D Bridges C Dams D Drinking Water D Energy D+ Hazardous Waste D Inland Waterways D Levees D PublicParks Parks and Recreation C Rail C Roads D Schools D Solid Waste C+ Transit D Wastewater D America's Infrastructure GPA: D Estimated 5 yr. Investment Need: $2.2 Trillion CONGRESS PASSES NEW TRANSPORTATION BILL 2 Year, $ 105 billion highway h bill passed in June Good to see some action on the issue, would have preferred longer term bill Job pricing will be monitored closely to see the affects of the new Highway Bill in the coming months Source: ASCE 2009 Infrastructure Report Card 14

15 SUMMARY Managing Th Through h Th The Downturn Strong Long Term Market Opportunity Building The Future Protect, Manage, Prepare Multiple end-market drivers for future growth Position Orion to meet future demand opportunities 15

16 Building the Future D A DAVIDSON CONFERENCE D.A. DAVIDSON CONFERENCE SEPTEMBER 11, 2012