First Quarter Summary
- Revenues of $70.3 million, compared to $41.0 million in the prior quarter and $5.6 million for the first quarter of 2021;
- Gross profit of $11.6 million compared to a gross loss of $2.5 million in the first quarter of 2021;
- Operating loss of $1.8 million, an improvement of $13.8 million from the first quarter of 2021;
- Loss from continuing operations, net of income taxes of $36.7 million, including a non-cash charge of $26.0 million. Excluding this charge, loss from continuing operations would have been $10.4 million, a $5.3 million improvement from the prior quarter and a $5.9 million improvement from the first quarter of 2021;
- Adjusted EBITDA from continuing operations was a positive $3.8 millioncompared to a loss of $1.2 million in the prior quarter and a loss of $9.6 million in the first quarter of 2021;
- Backlog of $513.5 million as of March 31, 2022, with $294.6 million expected to be recognized in the next twelve months.
Items Subsequent to the End of First Quarter
- Named Robert Burns as President of Orbital Solar Services
- Extended maturity on portion of seller notes to December 31, 2022
- Completed a registered direct offering of $21 million;
- Completed the sale of Orbital Gas Systems Ltd.
“Our first quarter results reflect the continued progress of building out our infrastructure services platform, and we accomplished a significant milestone in achieving positive adjusted EBITDA for the first time since I joined the company,” said Jim O’Neil, Vice Chairman and CEO of Orbital Energy Group. “Our backlog and end market drivers remain strong, as well as customer demand for our services and we believe we are well positioned to achieve our 2022 financial guidance provided on our year end call, which we are reiterating today.”
First Quarter 2022 Financial Results
Total revenue was $70.3 million, compared to $41.0 million in the previous quarter and $5.6 million in the first quarter of 2021. The sequential and year-over-year improvement is primarily due to the acquisitions of GTS and Front Line Power last year.
Electric Power revenue for the first quarter was $39.7 million, compared to $23.3 million in the prior quarter and $3.2 million in the first quarter of 2021. The increase was primarily due to the acquisition of Front Line Power. Telecommunications revenue for the first quarter was $16.1 million, compared to $13.0 million in the prior quarter and zero revenue in the first quarter of 2021. Renewables revenue for the first quarter was $14.5 million, compared to $4.8 million in the prior quarter and $2.4 million in the first quarter of 2021.
Gross profit in the first quarter was $11.6 million, compared to gross profit of $7.4 million in the prior quarter and gross loss of $2.5 million in the first quarter of 2021. Total operating expenses in the first quarter were $13.4 million, compared to $16.1 in the prior quarter and $13.1 million in the first quarter of 2021. Loss from continuing operations before taxes in the first quarter was $36.4 million, including a $26.0 million non-cash charge. Excluding this charge, loss from continuing operations would have been $10.4 million, compared to a loss of $15.2 million in the prior quarter and a loss of $16.3 million in the first quarter of 2021.
Full Year 2022 Outlook
The Company expects full year consolidated revenue to be in the range of $375M to $425M and adjusted EBITDA to be in the range of $38M to $43M. This reflects year-over-year revenue growth of 382% and an improvement of $67.5 million in Adjusted EBITDA for the full year 2022 compared to 2021 from the midpoint of the Company’s guidance. This revenue growth and improvement in adjusted EBITDA is expected to be led by strong double-digit organic growth in the Company’s electric power and telecommunications segments largely due to projects under contract and the unprecedented demand for the Company’s services in these segments.
Conference Call
Management will host a conference call today, May 16, 2022 at 8:30 am ET to discuss these results and recent corporate developments. After management’s opening remarks, there will be a question-and-answer period. To access the call, please dial (678) 894-3054 and provide conference ID 3716707. A live webcast of the conference call and accompanying slide presentation can be accessed via the Investor Relations/Events & Presentations section of the Orbital Energy website (http://www.orbitalenergygroup.com).
For those unable to attend the live call, a telephonic replay will be available until June 1, 2022. To access the replay of the call dial (404) 537-3406 and provide conference ID 3716707. An archived copy of the webcast and slide presentation will also be available via the link referenced above.
About Orbital
Orbital Energy Group, Inc. (Nasdaq: OEG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in the electric power, telecommunications, and renewable industries.
Orbital Energy Group is dedicated to maximizing shareholder value, by striving to exceed our customers’ expectations, building a diverse workforce and making a positive difference in the lives of our employees and the communities in which we operate, and contributing to reducing the carbon footprint through the services we provide.
For more information please visit: www.orbitalenergygroup.com
Non-GAAP Financial Measures
The financial measures not prepared in conformity with generally accepted accounting principles in the United States (GAAP) that are utilized in this press release are provided to enable investors, analysts and management to evaluate Orbital Energy’s performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing Orbital Energy’s operating results with those of its competitors. These measures should be used in addition to, and not in lieu of, financial measures prepared in conformity with GAAP. Please see the accompanying tables for reconciliations of the following non-GAAP financial measures for Orbital Energy’s current and historical results (as applicable): EBITDA and adjusted EBITDA from continuing operations (non-GAAP financial measures) to loss from continuing operations, net of income taxes.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the expected use of proceeds. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms. These statements relate to future events and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by the forward-looking statements. Such factors include the risk factors set forth in the Company’s filings with the SEC, including, without limitation, its Annual Report on Form 10-K for the years ended December 31, 2021, its periodic reports on Form 10-Q, and its Current Reports on Form 8-K filed in 2021 and 2022, as well as the risks identified in the shelf registration statement and the prospectus supplement relating to the offering. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. Orbital undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Relations:
Three Part Advisors
John Beisler or Steven Hooser
817-310-8776
investors@orbitalenergygroup.com