Orion Group Holdings, Inc. (NYSE:ORN) Q1 2024 Earnings Call Transcript

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Travis Boone: It was just a timing thing. We had — there wasn’t one specific win that drove that. There was quite a few wins in both Concrete and Marine that drove that number. And so, it wasn’t one specific project, which is a good thing, right? It’s not just driven by one. I think that’s had a pretty good run of wins there that drove that number.

David Storms: Understood. Thank you. And then just on the scheduling delays that you mentioned, are you able to give us a sense of maybe the magnitude of that and the spacing of any catch up? Should we expect most of that to be in Q2 or will it kind of be equally spread out through the remainder of the year? How should we be thinking about that?

Travis Boone: Yeah, it’ll be spread out through the remainder of the year. Some of it, I think — on one of the projects, most of the catch up will happen in Q3 and the other one will be probably sort of some in Q2 and then more in Q3 and Q4.

David Storms: Understood. And then just one more from me. Your press release mentioned that your opportunity pipeline has almost quadrupled. Are there any specific initiatives that you’re onboarding to try to capture obviously as much of this pipeline as you can?

Travis Boone: We’ve been in progress for the last year plus working on quite a few things to capture that market. We had a pretty strong sense that it was going to be improving significantly, which has driven a lot of the investments and work that we’ve been doing over the past year plus, David. So, it’s been not necessarily that we’ve — we’re starting something new now. We’ve already been working on it for quite some time as we saw the market starting to blossom.

David Storms: Understood. Thank you for taking my questions, and good luck on the second quarter.

Travis Boone: Thanks, David.

Scott Thanisch: Thanks, David.

Operator: [Operator Instructions] Our next question comes from Josh Zoepfel from Noble Capital Markets. Please go ahead.

Unidentified Analyst: Good morning, guys. This is Phil in for Joe this morning.

Travis Boone: Hey, Josh.

Unidentified Analyst: Hey. So, you guys talked a little bit of Hawaii. It seems to be obviously having some delays. But can you guys just provide any just really additional color on the Grand Bahama project? How is that looking?

Travis Boone: It’s looking very good. That one had some delays with a subcontractor, kind of moved some non-critical path work to the right. They got a little delayed on some other things, and we’ll be starting up a little later on their portion of the work than we had anticipated. But it was, again, non-critical path work and it didn’t impact the schedule of the project or any of our work. It just sort of delayed their work for — until the end of second quarter.

Unidentified Analyst: Okay, perfect. And obviously, there hasn’t been a lot of time between fourth quarter and now. But can you kind of speak on the dredging environment? You guys mentioned kind of it will pick back later — in the later half of this year, but do you guys still kind of expect that?

Travis Boone: That’s what we’re — I’d say we’re optimistic that it will start picking back up later this year. We haven’t seen signs of it yet, but it’s kind of the same sort of status that has been for a little while at this point. Again, we’re optimistic that will — things will start clicking a little more regularly with the core here later this year.

Unidentified Analyst: Okay, perfect. And then, I guess last one I will squeeze in here. I guess, in the SG&A, obviously, it’s higher kind of — than we kind of anticipated. Should we kind of expect this to kind of continue throughout the year, this kind of run rate?

Scott Thanisch: Yeah, I think that this absolute dollar amount is probably a good run rate to use going forward as we continue to incur some costs related to claims and as we make the most of our business development opportunities by investing in that function.

Unidentified Analyst: All right, perfect. Yeah, thank you guys so much for taking my questions.

Scott Thanisch: Thanks, Josh. And while we wait for more calls, it might be a good time to say there was a typo in our press release that went across the wires and that was to the balance sheet which had an incorrect current debt number. That has been corrected in the 8-K which was filed with the press release there.

Operator: [Operator Instructions] There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Travis Boone for any closing remarks.

Travis Boone: Thank you. Thank you everyone for joining today. We appreciate your time. And I guess in closing, I just want to thank all of our employees who are working really hard in our business every day to work safely and to work profitably and bring the best that they can to work every day. Also want to thank our shareholders for continued confidence in us, and look forward to continued growth in the company here going forward. Thanks everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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