ORN - Earnings call transcript Q2 2020 | Orion Group Holdings, Inc.

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Operator

Good morning, everyone, and welcome to Orion Group Holdings' Second Quarter 2020 Earnings Conference Call and Webcast.

Joining me today are Mark Stauffer, Orion Group Holdings' President and Chief Executive Officer; and Robert Tabb, our Vice President and Chief Financial Officer.

Regarding the format of the call, we've allocated about 10 minutes for prepared remarks, in which Mark and Robert will highlight our results and update our market outlook.

We will then open the call for questions.

For the course of this conference call, we'll make projections and forward-looking statements regarding, among other things, our end-markets, revenues, gross profits, gross margin, EBITDA, EBITDA margin, backlog, projects, and negotiation and pending awards, as well as our estimates and assumptions regarding our future growth, administrative expenses and capital expenditures. those that in to cause our to materially predictions including and actual are differ described those XX-K, from statements are risks subject uncertainties, results These statements. that may necessarily Moreover, past indicator future results. an performance of not is

income, from filings release Also, that issued at cause to website can this risk release of and obligation EBITDA otherwise. refer information, rules factors new the revise that Also, annual the SEC, Securities which forward-looking our Stauffer, the whether of and please Mark no or and section of that, result under net inclusive over of Officer. materially press update the as current And morning. on measures the results Executive go could financial ahead, non-GAAP be call available our within press G. or measures Please to note For are also found Commission, earnings providing a Exchange undertake refer to to GAAP our Chief adjusted The new our with the Relations the Regulation like to website. Investor I'd for actual President accompany in reconciliations the expectations, share, this quarterly including reconciliation comparable discussion statements, we margin to EBITDA earnings and definitions tables and any sir. call per the projections to Please are turn developments please most with additional www.oriongroupholdingsinc.com. and adjusted differ or

Mark Stauffer

I'll to a few then the COVID-XX quarter, the state more through some over we to then results an turn our on discuss we as comments turn Thanks concluding we to and Q&A. of our to quarter I'll our for detail, second navigate before review financial and call and in make joining remarks current everyone. business on our will Thank with you, provide the begin update you Today, good XXXX results Robert the morning, continue pandemic. call. with

to those I'd at members affected by others like First, or team virus. have who continued to or continue of construction to around to like been our support sites, able family had work to country. these and thank COVID-XX the safely the sincerely efforts entire company our also our and our I'd by in It's yards, sympathies be to project team who unprecedented offices members shops deepest affected friends extend have through we've that our perform the combined times. during field

serve remain recent the safety the COVID-XX implemented and array projects best to will all improvements opportunities future. both forward. profitable second will of response the we've ensuring Our well the Even backlog, have initiatives of best by continued pursue of end-markets COVID-XX with in profitability end-markets In focus projects place improvement well markets, and we've health disruptions. most historically flow, in of minor this strategy moving which has be expect we benefits on environment, our in employees, We wide during the cash that given revenue The implemented enables that performing the opportunities attractive we serve continued post some period, and elevated served safety to targeting cases the and efforts year-over-year we point us time. quarter, we at operational the To for all and the are people. ensure of been encouraged measures foreseeable and in on to in kept to our focus serve. the solid will This last our resiliency be will health and working us we and over in only the free our our the has any the continued continue generated spike and XX with us reflects to bid that on of remain of months. this and productivity end-markets in to variety end-markets our we the of

as be met have year, our the through the that on. to we'll health the taken also of necessary challenges the have backlog foremost position and as steps strength the this on to bid our executing of to able enables We confident and ensure with head us priority. safety from and is of believe projects pandemic we position liquidity entered that I'm effects we pandemic in navigate employees pursue our new and these continue a We solid opportunities. move

call turn detail. our to to Robert? the results Now, Robert more QX discuss I'll over in

Robert Tabb

for us. joining you, everyone, and thanks, Thank Mark,

the that Before into out and the I'd $XX employees this increased like quarter growth earnings, quarters quarter by hard quarterly revenue our XXXX generated million Orion $XXX.X for past year. $XXX in EBITDA the second work The over over of past to was segment. the to second compared production months, in our XX I have get of indicative is XXXX. adjusted driven details, posted million that contributed of straight Revenues positive the has all over point in million, of four something were of concrete

million, margin in increase $XX.X XXXX last a year. XXX-basis-point X%, in by gross improvement driven costs. indirect quarter million, second was Second XX.X%, reported of $XX the profit to project as or or to quarter support year-over-year The was compared

period utilization, Now in and moving margins the for year-over-year, increased by from executed points points to attributable gross-up of which project-level as came excluding in basis partially from segments, uninstalled mix which marine of margins, XXX projects decrease to is expenses accounting offset to changes XXX-basis-point the of segment's basis indirect the impacts materials, XX labor by equipment a the period. such

segment's an margins labor of project-related concrete by our which and Now, driven in concrete basis project-level came I'll XX from This improvement points project was efficiency. The indirect XX margins turn from by support points, segment. the to concrete segment's year-over-year basis basis XXX margins. came in points improved costs, increase

second primarily ratable plan full from expenses million, of SG&A SG&A, accrual $XX.X up during quarter of XXXX, were the to the million the for increase quarter $XX.X year incentive current the annual compensation by in Moving is period. second The XXXX. the driven

percentage being XXXX on X.X% down a that recognizing may was quarterly As or quarter. revenues focused from year see at SG&A revenues, SG&A We full slightly remain the in X%, year, below of second quarter the prior X.X% for of we fluctuation.

of operating last quarter Second to quarter million, income loss was second XXXX million the operating in compared $X.X year. an $X.X

the bottom-line to results. Now

allowances, For XXXX, per same share, the period million, a $X.X the net adjusting income per $X XXXX pre-tax of for of $X benefit of net associated of million, have second quarter was million approximately $X.XX results loss $X.X with the to nonrecurring a of loss ago. for $X.XX share. $XXX,XXX reduction earnings tax for been million, earnings year $X.XX compared of of costs income valuation a second the or These certain per would and share. After or reported quarter or net of

X.X%, second win on $XX.X adjusted of X.XXx. approximately XXXX, we've X.X%, million, This quarter year. in of of a Second opportunities book-to-bill rate second margin million, adjusted a adjusted quarter of of million. an were billion representing to compared worth quarter $XX EBITDA of in XXXX was $X.X $XXX and of EBITDA on the XX% of the and successful resulted last a bid In EBITDA or margin

million $XXX the the XX, bid. end As subsequent is bidder backlog to over currently or marine contracts we of been projects of which strength that was bids In company something have and XXXX, the of with worth the with segment low indicative was end-markets. of awarded Currently, of has billion the the total, $XXX $XXX low which $XXX is million, million including million $XX and our concrete has backlog worth associated XXXX, million apparent quarter second of $X.X of the June between we segment. view outstanding, of

measures Moving on provide into continue take. discussions, update proactive I'll an to we further COVID the

our continue needs we and operating As costs. always, CapEx monitor to

during a sufficient new As and flexibility management, continue million To our backlog. to on to Also, entered controls that we cash to continue projects that facility. execute awards provides operate we new This the pursue certain into the revolver increase and XXX-day, management, be end, and a result, QX heightened expenditures. around risk announced to broader call. financial selective the earnings we operational existing capital with credit and continue to us than more quarter, we $XX adds with mitigation

solid, was enhanced cash flow. position which second we in generated further is current as in liquidity million the quarter Our free $XX

of of We on Orion XXXX, last and from million million a with $XX to was credit, million the in In full are under X.XXx. more we $XX had $XX company which ratio $XX our revolver. total $XX.X hand translated quarters free in generated million QX, charge leverage of end generation almost cash includes X.XXx $XX to line in access revolving At fixed pleased We This of new to has over flow related cash first ratio million debt, and any with ended our cash of the the than the two flow terminal. six into year revolver history. and a the free quarter the which months. of million related the

comfortable profile. our are with current We leverage

continuing to situation, and with us our opportunities comfort execute noncore level pursue awards, on will reiterate which including of to the enable new current liquidity assets. enhance I work However, will want to liquidity backlog. in position, the continue we with process our evaluate perform my to selling strategy,

to over back to up. Mark call the wrap turn I'll Now,

Mark Stauffer

Robert. Thanks,

Turning activity to our markets, see we bidding both in segments. to continue our

base have bid the diversified due bid customer to other right, move opportunities and to some shifted in impacted While in end-markets. forward opportunities continue to end-markets our end-markets

Our opportunities. focus on profitably is these bidding

record will continue and bid track of end-market strong our of pursuit longer-duration adjusting between we select opportunities, a have We larger and also projects.

part bid interface state to monitor recently agencies. opportunities $XX In federal, plans, which marine dredging segment, we with our and of both target dredge during maintaining government spending and the we of and continue to into first their sectors, to of continue the announced half will local across back customers and We our and private fleets million contribute the of in XXXX XXXX. the awards utilization public

bid a relief Harvey quarters. One in the additional relief projects of result coming is and funding of related Hurricane Harvey to announced funding, expect we these as significant opportunities

expanding on our structural to announced. these the for strategy have to increase projects improved million bid our We of on an our on well of dynamics this evidenced in spending replacement stimulus awards may significant structural the of by infrastructure business. work, of that and as the plans to bill on. will part also segment, federal either are positioned future track in infrastructure continue as FAST to In a any continue movement concrete Any be funding opportunities to COVID-XX. the the response we or provide on we recently Act a operating type contributed projects our capitalize action concrete execute performance that performance for significantly business, concrete structural led we competitive project $XX has to The of

We half in the had business in period. the low bids addition continues continue industry of technology XXXX the first combined of despite the growth despite opportunities to with second currently we perform environment. monitor we in and Texas, team center to for COVID-XX the billion our higher that in to levels impacts. light the outstanding, Texas prior performance, and and $X.X continue year projects of challenges strong enter relocations distribution confident and into and bid we general to operating which at bid year slightly I'm provide have have backlog current the place We than to improved We half market. solid much completed the with the in commercial

on we and sustainability We are markets. in we meeting and long-term drivers the our our and focused be confident of always customers' will remain safely needs,

turn out back will thank Once of for team I'd have conditions. virus, been market by all those our to through the this to and our advantage pandemic, affected deepest call again, members we that, for efforts. and to With operator I'll who will to We positioned the questions. take well go again post-pandemic their get sympathies like be the

Operator

FBR. first B. [Operator Alex Instructions] question Please comes with with the Our Rygiel question. proceed line of from Riley your

Alex Rygiel

then And us on some could bit real listings nice next settled and or of other sales that's any an sort update six a little of on that your gentlemen. estate the claims quarter, give Can any how Very resolutions update other of months? dispute in be you proceeding? or

Robert Tabb

talk before. it a about I'll estate take the the where will bit real claims. The is much and estate Mark update little was pretty real update,

on to push With properties. little could will COVID confident pieces I'm on, that we timing noncore able from be a as deemed move continue be but We assets. that move shaky, to the the going to those we've

Mark Stauffer

the was On piece, me, sorry, other of remind that part the I'm what Alex. question? other

Alex Rygiel

claims the and Just dispute resolutions.

Mark Stauffer

I apologize.

making We're we some of these. side, that. on claims to focus the progress On continue on

have we'll that of I resolved think it's some probable these this year.

bit on others, probably duration. think longer a I little

resolved but next of the it quantify of that and off I that be, could So think, I'm part depending year. not prepared year, impact push will the other goes, on get might again, how think to we one what this into

Alex Rygiel

commercial changed over secondly, fantastic. pursue were Congratulations on two the is of business? the business year you that. How that, this And or structural kind how as has and margins concrete sustainable this last

Mark Stauffer

Well, we are that in lot did, focused I we've of the last bearing think, over a improvements on things fruit year, us. operational again, for that of the kind

pleased that we've with indirects, that division at at year. we Our a on are to going forward. The in we right be structural place, right today. that progress group and, we job business. part that can a that very there on done have we spot. and focus keeping above think We're progress seeing the we made making on job. of pleased. concrete pay-off. seeing and from we've them what got And, that very continue the on again, or bid And focused that, I'm We're good think sustainable. making more we've improving that again, But strategy think done people we the progress too make is expand last in -- where projects and we controlling Again, focused been more progress our in the and team to our make, can the has in bringing has in our fantastic we we the we're in there's

Alex Rygiel

little was just back the at. looking little to I the second -- higher to of that the your in it accrual, then, me, comments SG&A about worth SG&A second bit where insurance comp the quarter that the why that looks bonus quarter? incentive accrual Did and in bonus was excuse due Is of accrual high? And circling a comp a accrual. sort X-months' than I you was comp suspect recognize

Robert Tabb

No.

and equally accrued SG&A was being a be timing expect do up expenses of is bonus they and but to off nature little fall, X.X% mentioned where by my we or closer the year-end. the So just bit every it I in different below quarter. taper to the as notes, of by

Operator

comes question of proceed the Marco with Markets. Please next your Our with Capital line Rodriguez question. Stonegate from

Marco Rodriguez

on spend the margins a was little guys more I segments. you wanting in to bit see the if could gross time

rather, forward. basis improvements margins. saw about a those -- a if group little what you talk point that from improvements per then You you standpoint bit make or, costs; did costs the those the push and that maybe project out doing kind you go called wondering indirect out of from to more indirect the level could you're I was

Mark Stauffer

one a that's said kind efficiency, focus effort, process of big lot were the I we're Well, addressed about the last or a things just did again, our that And decisions. as they try providing reminder to improve that and so of just our was faster of labor those, recall, our we the if to again, Again, equipment -- efficiency of we our did tools months, a been it and you'll we can directed as managers that, last year and a minute over kind what goes decisions that we to when improvements better information so make some XX around the ago. back enhance of of review quicker of back teams.

of to I ours, focus be is So, margins. that a ours, and going we're in that's again, the the of huge a reflected of think benefits continue been seeing focus to

Marco Rodriguez

your some -- I I prepared that side, due the read And may believe and you the dredging improvements was the that utilization it. the little margin remarks offline I marine I you to Can side on had pretty levels marine a the in thought good mentioned but dredging some year-over-year you in mean, while Got be kind maintenance. of for there quantify equipment? equipment drag the saw on you

Mark Stauffer

QX to We reasons, utilization in utilization think we for kind were but, sort the the Yes. that just quarter, I on flow dredge to specific we're get maintenance, sometimes, -- point we schedules around dip maintenance, first below did mean, that XX% on we schedule again, are, competitive we can And in fluctuate depending so what if like on we that's but scheduled above just that. that scheduled zone and project very our of maintenance. see. again, and that too that about again very XX%, don't of of adaptable

what that's talked get getting announced earlier, out So, going my utilization, and were anticipating we've we and in saw pulled were to the some on or during that and are projects the off maintenance wanted the time go quarter that quarter remarks that's of some in so to either the go some to took ahead and schedule why the and dredges, recently ahead the that we work knocked that that as of second of several address to really scheduled some second we we maintenance back. we Again, based about contribute during quarter. getting

Marco Rodriguez

the the Got run then, prior just to bit more you it. versus -- comment, little I'm segment if trying at concrete looking here. rate, margins will. of just historical kind the understand a of impressive And very kind echoing

is or the trying its that versus back and of a the historical of that a helps that indirect little kind emphasis structural margin to is shift higher helping cost situation, up sort Your recent more that's this of do margin focus come on bit kind trend? your work, of of

Mark Stauffer

several it's combination think of a things. Yes, I

do, controlling our I think we work but group our think, to focus spoken good good what structural at those, said, on performs that. we and all one, we're were -- I it's of indirects our Two, we well. I've as what at structural and

guys business in of change types projects the really been different up competitors, and so group, are first projects, dynamics bidding half quarter, we're performing a smaller there that all markets, the are of kind -- well, year. a those competitive light production, commercial competitors, better so in we us. of in in that less had against and different for better our mean, weather again, -- in our types good that's of of bit But big have true the and on across had well, we work of meaning is dynamics for had usually little we're really performing We good as we the going our the I

think, I we've starting our better we've work we're that and pay bit that consistency the made performing again, business on in not of commercial more focus margin. performing having some around the a pull down on not projects that a of that and changes light so made little off, to we're is getting on

So those think combination three of it's a things. I of all

Marco Rodriguez

but work Houston a Very And know the alleviating movement discussed segment. of bit last in was in seen concrete you've Austin, could little I Dallas like the kind then towards your structural specifically, maybe the more in now. in that we've wondering pricing your pricing kind Houston, a contracts on so down comment the again pressures where bid helpful. if area on bidding question, for environment markets sounds of is that it you and the the works I are past just somewhat, concrete

Mark Stauffer

be said again, it makes want part we up of competitive. the that work. It business business, a Well, more and the the side, are but like I less light we business concrete. on still remains earlier, of still also focused say do commercial of or can that course, a on Again, the the on competitive. favorability dynamics be business It's it significant projects, careful depending light competitive, in commercial and competition pursuing the in structural like the to to is competitive opportunities I

perform best businesses, those moving target then in in to my that -- with earlier, on As we out, comments overall sectors is perform things, strategy about forward focus and I it. talked are win kind work our opportunity obviously, the to including of work the give coming think target those that's concrete, us both that the and opportunities

there, again, So, always work, be we're our be very it's that in what approach very again, and we're to after achieve so, go -- to so bid trying but, our going objectives. about this disciplined trying strategic we're we we being we out competitive can as

Operator

from Noble comes Please Poe line Our your Capital of with next with proceed Fratt question question. the Markets.

Poe Fratt

you didn't amount that of you impact, May quantify on claims? you you -- the just I Can potential follow-up quantify outstanding know want could just claims but have? I quantify the to the

Mark Stauffer

we won't have quantify the claims in think I -- again, but amount. think in in booked not claims booked some we about -- claims, booked. claims a total that's that get we reasons amount of the $X.X you'll the don't that million And about $X see actually the million quarter, do total the in I our that I for public. of fraction of outstanding want are just to overall into negotiating Q

Poe Fratt

in great. But the detailed be Q? Okay, they'll

Mark Stauffer

Yes.

Poe Fratt

the below thanks. has then been running front, And second And give on just for working year consistent an over cash quarter. average, how half has then you your your you focus CapEx cash can because we generation? flow, of pretty Can expectations $X at is the been been net also, quarters year, part of highlight a the or working of changes. CapEx that's of cash positive look positive you idea there? level us then, of The when free the capital the that flow of below Great, Can over net flow operating million half two the -- first capital looks but on the year? second because the free sort

Robert Tabb

$XX year Yes, that bringing million. we business what's to the to I'll continue we'll we'll our see year. done it, of the million watch first the and need to between year expect I for half working good want million in to million, to right so was assets CapEx $X continue what this get and to But for $X we do $XX keep million the these. do year. and full monitor somewhere Obviously, condition. for Yes, take the us to of $X roughly rest

the the know year, working last year, liquidation end in I of has it half the we of been capital back at right, the build good first saw really year. up. You're absolutely

half think I year, talked we and really, bit we're in about of cash some uptick, buildup when of management, try you about into see second QX next heightened year controls then and minimize going working of a management a capital put of more But the to but and really in so the So QX that working the of around little that QX I liquidate AP place year. the more time we to we do runs, tend burn we that cost just see where see to so and see it's capital buildup. expect

Poe Fratt

then backlog part That's $XX is quarter, that marine, like awards. in of that is that of bids while helpful. And it looks million down have pending assume has And million do low already awarded $XX number? -- was been you I the

Robert Tabb

it believe I it is. Yes, is.

Poe Fratt

context the maintenance second the Mark? have maintenance, In of second do of quarter year, the Okay. any you that's for half scheduled

Mark Stauffer

we in upcoming but change, less That the now for it's could of second quick today. hit did bit The kind of to the of stuff do, in normal kind little some more a of the kind duration just ready work. involved stuff. get right We was quarter

Poe Fratt

And left your the -- would quantify past, you've but sure able great. in to this how X quantify backlog? Terminal much in not is Okay, be do you done if you I'm of

Mark Stauffer

get to you back have We might on it. to

probably XX% project right that I think now, we're minus. plus complete on about or

Poe Fratt

So, million maybe $XXX left.

Mark Stauffer

on go that. Yes, a ways have to we still

Poe Fratt

bids was been low look like going comment but really those you now your two as and previously, pending the out then, a just win to on right bids pointed strong award, back little concrete like business; $XX rate below the quarter, looked it bit Can And average. metrics? great. million Okay, it's low

Mark Stauffer

Yes.

correct the that yes, is there. the million think -- $XX I

a bids in work and of we We we're seeing divisions, as still pursuing that lot of have both a lot those divisions. in outstanding, we're said, opportunities

think obviously, we're we when impacted rate, quarter. the at a look as during the win I book-to-bill,

COVID our QX the normal of COVID the it on win look -- particularly kind when work, marine. and Some to quarter, flow Obviously, some of bids. wound the been that we impacted impacted, win some on especially of sliding right. were of rate in beginning timing efforts at and has of just rate focused by like At timing of and is of that being the therefore, projects areas were up we and, the

lower we the win where and saw quarter And as at to went on. we out, a we so were quarter, had the end-markets beginning that other coming of rate improve projects if pivoted other will, book-to-bill, the as and you areas,

So the again, it's sliding of who flow, projects focusing of bit little on a bit is maybe opportunities by normal ebb of see and us reset kind that little is was market COVID and of we terms a attention the impacted then that. the and where that right, seeing pivoting in and to to our

of that's kind So in QX. happened what

the performing that we work get in to want to could work, win to key work see that on. the it. after work say win is We're is and on have see it so can't we do that, in I but We're refill and I to all and refill again, we're you that our those to -- again, fluctuate. but backlog. see with we what forward, win, up, what's with to rates win bid work rates focused there move forward, profitable we could and out work more going can things are predict As on bidding on happen the to on also we're getting We there is volumes half focused second and And moving we're order that, our potentially want focused it. we might out targeting go us win the

Poe Fratt

cash, and debt you the potentially down Thank just I'm million sort I Can could north looking think adding sort you That's then you amount of year. you, paid just you context half on mentioned Backlogs revolver quarter? of you of had $XX why liquidity of are win -- a availability expand about of just $XX you about total second $XXX so of capacity million. $XX at about healthy helpful. still in you near-term in in million, so $XX at about revolver less the the of of million the have of the looked million, the Mark. concerned Robert, that rate.

Robert Tabb

Yes.

the So us would Those didn't when working shutdowns of there uncertainty of would of you've that broke available down that out paid of still. happen, ahead And that capacity of like get abundance we things from lot out, availability down. around generate happened, flow, COVID in revolver, two kind to stop slowed been that. on as on as we which first see we've it customers was in continue we solid cash to hasn't anything and things but free wanted have able would to debt cash to hoard so caution, seen, widespread turn a projects, us we

was of we country don't weather an and of to come. to the caution. storm we as point, weather be we we to again, the able for any it widespread any is have the But shutdowns this be might lessened, reserves, where that and about are, of that room storm our think I that cash today, to think comes. reserves, so stomach likelihood I has here have able out So At but some do we abundance position good some feel sit

Poe Fratt

have yard on or up helpful. that if the Has That's And on engaged actually great. could Okay, listed, sale? you you a the Tampa follow broker potential question. real estate then been

Robert Tabb

place, process there are to possible, that needs as that in the PSA of closed the diligence think I like due that. a deal get be in to as too have and actually weeds get re-zonings I am but things completed. it's pushing I but soon that, into early to

Tampa, we could really from could in working move. that as the home see late not this of going to quickly usually government, is. the that how they early COVID, So it's see it It's People as so year, are next year. we depend and just efficient on or can City

lock want that to to confident So don't guiding timetable, of we're completed. just a I but matter timing. myself deal hopeful into It's that can a and get we

Mark Stauffer

Yes. view listed. to estate of the has just And wanted it all too as Poe, surplus, that I we real been reiterate

the to along move. that It's question all said, had to further levels is a we've and we're COVID. one the some Robert various we're of just again, right ready three. property, The is and, listed, it's So bit as little a Robert now said, confident seeing that activity due Tampa with of than inefficiencies other as ones, timing, on of

Poe Fratt

much. detail really of amount mind. last I so One you Thank in Great. Q&A. you one, appreciate if wouldn't the the

when or all at reported the and did thoughts this COVID given Why not on quarter and why guidance in looks suspend the what reestablish just guidance? first Any second you outlook? didn't you half for reaffirm -- backlog a solid the given performance quarter, like You uncertainty. quarter the guidance the reestablish

Mark Stauffer

remarks, confident got we've I the ability Again, backlog. I performing to securing focused executing We're work. again, think, the in our I Well, the team. in think work on on new in as said we're right We're perform. focused our and

sort I back but, to we're put know to think previously again, were we kind at a the good pathway on of it's of second That now the talking and again are unusual -- times. today, know the we again, at when about, perform we as up we guidance performance just, year levels to think that of and half it's see in what appropriate. and a continuing well we right we focused We'll that. look performing. said, We

emphasize trying that out. So laid the previously just But put again, execute, well we this junction, to plan we at according I to think want it's and to back up. that at we're mean not not point, that execute that this doesn't execute to prudent

Operator

the proceed question Gerry comes Heffernan next of Our Walthausen Please with Company. from with your & line question.

Gerry Heffernan

a last on In were that I COVID going and things discussion our from very quarter, of knowledge here. Perhaps concerns of believe we'll different high. lack a that good it the was a here of system couple at Lots in way. look EBITDA the that putting at an press the spoke schedule adjusted in stop ERP time of release abundance I we noticed new caution. of there expenses the implementation. project to ERP out of our for

with a to are So back I you're of it's looking implementation? abilities important that the the system improvements management's very it. forward with we know on

Robert Tabb

Yes.

we this the are So it's a system. of approaching is kind kind way that back answer I is, on. would way that yes, gate toll of question The

far over of under new reengaged we're plan our planning the our And through we once that the and our last like, solid will costs. year, we'll order, how a have we in, and then detailed what month decision put the we'll what's we looks on so, a the get scope go, new do what we do world do year, next together phase, and kind will or out, project, what we're through So make phase and we a a reevaluating timetables, this going what's schedule, we'll plan.

talk So call. the this and back on process have we'll more in about you're next QX, that start correct, a did we to up lot

Gerry Heffernan

Okay, thanks.

$X.X backlog work I'm is of out there that if normal the for the have is speaking with regards of however for of bids a -- bids construction been there, to indicated level that process completing companies, outstanding. still are you extended. You a Could indicated bidding wondering the bids has other greatly number lot that billion in in frame they that outstanding?

of before is wow, why just it is number you saying, is they're a are that So what, just or there's billion the business, the that get $X.X way not lot backlog out extending saying, more we know reasons our whole one bids did the it answers? moved completing, these

Mark Stauffer

Well, both. of little bit it's a

So $X.X the the in Yes, billion my I quoted previous outstanding, And year of to that is same from some over as billion been slightly we've first mentioned it's the $X.X a billion in is normal? outstanding It the remarks, that was though, work period question, safe ago. say, your to that's is it of part had in outstanding, $X quarters. answer worth -- up particularly decisions impacted. some that projects at ahead. whatever. is being at in have are good that during that that other areas and it, the quoted are a in or of the the quarter, moving deferred end-markets some -- of there been are quarter, is beginning by, slow looking driven that end-markets But walked are or way we other That again, work more of that

number So that that that have think work of a forward. there but the are I we is is probably fits that moving work majority in of markets is in piece category, the that that that into

have amount of not that So, -- outstanding work to untypical again, it's or work quoted outstanding.

Gerry Heffernan

regards the yes, the maintenance last of occur sparking? I'm lining of have think on kind saw preparing you get is these in Did business dredges so Robert, you I good, see the depending often, business. be on to now step something implementation don't great. when know can hey, quarter, very for it, over couple Okay, particularly you dredges, Mark us cylinders actual that these I may on last between really of really of the bigger way about vary better guys windows. wondering work the year and in In been the up months you your with six every for change as recall up upcoming as with projects, can in a what three a so to talking far they main for how going the maintenance about the months, but hitting the you so said, all this done we maintenance what, projects we maintenance expense upcoming

Mark Stauffer

Yes.

that be in you of of again, correct that on repairs that did when call last dependent work. it repairs scheduled we capital are very but get. the call do that dynamic the we out So, scheduling type and can -- our work terms we on the that, of be on can Also,

win going type for, that the we're dredging additional and that hand to dredge. type up work projects, alter know the sometimes have the we work coming we we in is to that that do dredges. Particularly, given setup may we that that in deeper there work, of of the need things a given of planning for that if that's we're other may we can have So period,

on And going actual that the the the get work, comes B, work A, or, we do of when and we along and -- know timing physically either, thought our on we're it to we to going sometimes when we're don't that that again, sometimes, dredges. work changes work schedule that

bit changed we half thought that on our on was be different of the did but circumstances of So bit we work about a terms it, When that we going very maintenance case a had is on what of look and getting -- a of so the schedule like, the to year, process of at the altered end we of spoke saw and being some going both had a executing thought comment then was of in that quarter. little combination and to April, little not in second done back in won that what were what dynamic.

Gerry Heffernan

over a even question like some out just kind statement? Robert for really even with or expected, ground. I guidance flag his were we where and question marine awful, you're have you're here. most know which we're why business months you positive million, last -- I and the and is other think you're already margins you guidance doing able to XX you originally I guys and in have chuckled matter, rate the million that previous ago, mean, made in comfortable a there of EBITDA six a you months. that than put I doing adjusted It go that being your the came in the are ahead thoughts of comment being got, some the on remarks sounds unless $XX.X not million. non-adjusted does the was because, around better $XX the asked in regarding pretty the you about were better than in the EBITDA second guidance beg Poe memory of what, the hey, $XX.X to established, my half say,

Robert Tabb

agree Yes, that things don't our I of it's that, there, prudent still but and that right the the the the still I good progressing we you, where company a the But about done, into some time, particular characterize work to to be are. challenges we for we is we is there's feel yes, the way have too, we we the see way but characterized place, you, have segments. that But place have There -- we in out both point I think good assets in uncertainties hear are it range, right we where Mark are it level feel we there talked team in future back bright right is and this but think in would people with in overcome; to in about, well. the we we be are are, we that back able is deliver to confidence increasing, at bring place, have level confidence pathway rising, range in place, that guidance. our we is and marketplace to

Gerry Heffernan

And bonuses accrue SG&A. Did That's quarter? you thing, spoke for of the one bonus first that last accrual in great. on the in you

Robert Tabb

Yes.

by So for our year-over-year, the so quarterly expense bonus when is is The accrue expense. amount, the out up, at -- bonus that expense, SG&A primarily it is our reason driven bonus call to look it. we you I we're turning

where the So we've haven't seen if obviously, you you been our looked year. past to years, incentive the at able the bonus that range accrual a full meet in halfway be performed, and, of to plan through of we've performance expense, few

year-over-year pay So we we because bonuses need increase, able potentially to call in out that to to out the this year. be are range

Gerry Heffernan

good. that Sounds a understood whether comparison I comparison. was sure I or to sequential wanted make year-over-year just

Robert Tabb

a it's Yes, comparison. year-over-year

Gerry Heffernan

everybody hopefully for Business and the keeping healthy. the we just work, need market is coming it. along well, much up as expected. we recognize and you We Thank stay to continue good

Operator

question Partners. the next Greg comes question. with Please proceed Our from your line with of Boston Weiss

Greg Weiss

it to cash been in you balance the statement, the income performance. flow and nice and Congratulations It's continued improved see, see on sheet. can

any So more by you kinds -- how more sales, it's give asked come. able from be real might estate Most how questions by much noncore sales last more but we just of answered of my for harvest to much of were callers, cash more whether the -- the can measures? asset little hopefully two or or those there's insights a to granularity,

Robert Tabb

way could that's $X the big bigger property process be the stage Well, $XX be million, sales one standpoint But to then I in behind the mean, -- another process. real one million, a estate than could further the and could significant, property upward that's much in those. earlier upwards from be $X million of

cash really, really the that and want Greg, to think is to happen, I timing are But because of call sales. real get when it unknown. it those into is $XX estate, don't that's going ones the COVID, from it I to million $XX just potential is So closer, million exactly

Greg Weiss

by will but or caller I And I $XX as million, market look, million. the over the stated, at past is last up $XX down the $X mean, cash point or No, debt just you've ago, by some understand notice, Right. million year, completely. and year brought a

You've results. improved the

despite that I at are the lifting, in capital thought levered been heavy your but your guys do what how not you process? has north stock understand we COVID, point allocation anymore. You're given reevaluate

Robert Tabb

Well, we're all the that time. thinking about

ratio As standpoint. Xx a you've pointed out, leverage we're a over from little bit

and So, forward, and debt. about everything yes, But cash whether and to we're allocations we evaluating capital go thinking free the flow, we're as always on that we should and where apply the going is table, to deal the buybacks. as make that our cash put XXX-day into, highest we that usage. we there stock is a the point part of I best sure will out, though, restrictions on entered

continue that strategy that more that. we'll say around So and the if to We're going continue capital. going to it, deal we're ends we're to May to on in year, monitor watch going changes put to have but to of where next

Greg Weiss

to only current the are been, might your highlighted has profitable, also company balance. you that equates profitable, now the that to debt increasingly you not future, you point levered, real on just and at Xx knock essentially be over in estate able wood, sell just some But

Robert Tabb

Correct. correct. That's

Greg Weiss

It's it. the as staggering, Hopefully, up. pretty good, health. everybody's Keep stays thanks. Got well it but weather as

Operator

that floor comments. final and questions. concludes I'll back time turn any Mr. the Ladies to for gentlemen, allowed our Tabb for

Robert Tabb

joining us Thanks for today.

is planning everybody let conference know to on next As virtual attending a week. I the Jefferies want note, that management

those few wants look and our earnings. as a late for everybody healthy, Stay IR anybody forward we'll to safe, we with in to to people management; get reach October open slots if stay so scheduled. available those talking we We pick one-to-one's have out and up, QX left report to

Operator

concludes This conference. you. today's Thank

disconnect may at time. you your Thank this You participation. your for lines

Orion (ORN) 2 Aug 202020 Q2 Earnings call transcript