Orion Group Holdings Inc (ORN) saw its loss widen to $1.81 million, or $0.07 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.21 million, or $0.04 a share. Revenue during the quarter grew 7.05 percent to $138.76 million from $129.62 million in the previous year period. Gross margin for the quarter contracted 199 basis points over the previous year period to 9.36 percent. Operating margin for the quarter stood at negative 1.07 percent as compared to a negative 0.35 percent for the previous year period.
Operating loss for the quarter was $1.48 million, compared with an operating loss of $0.46 million in the previous year period.
“We were pleased with our market opportunities during the first quarter,” said Mark Stauffer, Orion Group Holdings' president and chief executive officer. “As we previously mentioned, during the first quarter we saw delays in customers obtaining their permits on certain marine construction segment projects, which prevented us from starting these projects due to delayed notices to proceed, and which affected the overall mix of our project work during the quarter. In recent weeks, we’ve seen some of our customers receive their permits and we anticipate more to follow, which will allow some of our delayed work to start. Ultimately, we are hopeful that project timing will normalize over the next few quarters. Our concrete construction segment continues to perform very well and it generated strong results in both the Houston and Dallas-Fort Worth markets. We have begun the integration process on our recently acquired commercial concrete construction company, Tony Bagliore Concrete, Inc. (“TBC”) located in Central Texas, which is a market we targeted for entry. We believe 2017 is off to a good start and we are encouraged by the steady demand for construction services throughout our operating footprint.”
Operating cash flow turns positive
Orion Group Holdings has generated cash of $11.04 million from operating activities during the quarter as against cash outgo of $3.36 million in the last year period. The company has spent $1.39 million cash to meet investing activities during the quarter as against cash outgo of $6.73 million in the last year period. It has incurred net capital expenditure of $1.26 million on net basis during the quarter, down 80.84 percent or $5.33 million from year ago period.
The company has spent $8.41 million cash to carry out financing activities during the quarter as against cash inflow of $10.32 million in the last year period.
Cash and cash equivalents stood at $1.55 million as on Mar. 31, 2017, down 1.84 percent or $0.03 million from $1.58 million on Mar. 31, 2016.
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