Orion Group Holdings, Inc (ORN) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $4.74 million, or $ 0.17 a share in the quarter, against a net loss of $7.40 million, or $0.27 a share in the last year period. Revenue during the quarter grew 19.67 percent to $164.02 million from $137.06 million in the previous year period. Gross margin for the quarter expanded 870 basis points over the previous year period to 14.74 percent. Operating margin for the quarter period stood at positive 5.81 percent as compared to a negative 6.07 percent for the previous year period.
Operating income for the quarter was $9.53 million, compared with an operating loss of $8.32 million in the previous year period.
"We believe our company is on the right track," said Mark Stauffer, Orion Group Holding Inc.’s President and Chief Executive Officer. "Our Heavy Civil Marine Construction (HCMC) segment had a strong operating performance during the quarter with solid job execution. Our Commercial Concrete Construction (CCC) segment once again produced strong results, delivering consecutive record-setting revenue months in August and September, enhancing the Company’s overall results. As anticipated, third quarter consolidated results reflect significant year-over-year increases to EBITDA and EBITDA margin, underpinning the Company’s strategy and ability to overcome previously discussed challenges. With the structural changes we’ve made, the amount of backlog and low bid work we have, and the market opportunities we anticipate, we believe 2017 is set up to be a strong year with solid bottom line performance."
Operating cash flow turns positive
Orion Group Holdings, Inc has generated cash of $13.43 million from operating activities during the nine month period as against cash outgo of $2.62 million in the last year period. The company has spent $15.60 million cash to meet investing activities during the nine month period as against cash outgo of $125.24 million in the last year period. It has incurred net capital expenditure of $14.60 million on net basis during the nine month period, up 13.07 percent or $1.69 million from year ago period.
Cash flow from financing activities was $3.97 million for the nine month period, down 96.30 percent or $103.28 million, when compared with the last year period.
Cash and cash equivalents stood at $3.15 million as on Sep. 30, 2016, down 82.79 percent or $15.13 million from $18.28 million on Sep. 30, 2015.
Working capital declines
Orion Group Holdings, Inc has witnessed a decline in the working capital over the last year. It stood at $76.04 million as at Sep. 30, 2016, down 21.93 percent or $21.36 million from $97.40 million on Sep. 30, 2015. Current ratio was at 1.60 as on Sep. 30, 2016, down from 1.74 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 47 days for the last year period. Days sales outstanding went down to 55 days for the quarter compared with 70 days for the same period last year.
Days inventory outstanding has decreased to 2 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went down to 26 days for the quarter from 28 for the same period last year.
Debt comes down
Orion Group Holdings, Inc has recorded a decline in total debt over the last one year. It stood at $111.49 million as on Sep. 30, 2016, down 24.33 percent or $35.84 million from $147.33 million on Sep. 30, 2015. Total debt was 23.81 percent of total assets as on Sep. 30, 2016, compared with 29.21 percent on Sep. 30, 2015. Debt to equity ratio was at 0.48 as on Sep. 30, 2016, down from 0.65 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
