Wednesday, June 09, 2021
Orion Group Holdings (ORN)
No Appeal on Rezoning Approval and Tampa Yard Sale Closed
Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Tampa yard sale closing is a positive step forward. There was no appeal of the May 6th second reading and approval by a 4-1-2 vote of REZ-20-92 to rezone the West Tyson property to PD (planned development, etc) so the sale of the Tampa yard closed. The sale generated net proceeds of $22 million and a unquantified gain will be recognized.
Financial flexibility increases. Pro forma cash should approach $30 million in 2Q2021 and other asset sales of ~$5 million should close in 3Q2021. While the ERP program is under way, there is a strong preference for growth-oriented investments, like the renovation of an existing barge. Absent an acquisition, a dividend and/or a stock buyback seem possible since the one-year credit facility recently …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
