Record Quarterly Revenue of $93.9 Million
Raises Full-Year 2022 Revenue Guidance to a Range of $405 Million to $450 Million
HOUSTON, Aug. 11, 2022 /PRNewswire/ — Orbital Infrastructure Group, Inc. (Nasdaq: OIG) (“Orbital Infrastructure” or the “Company”) today reported its financial results for the second quarter ended June 30, 2022.
Second Quarter Summary
- Revenues of $93.9 million, compared to $70.3 million in the prior quarter and $11.5 million for the second quarter of 2021;
- Gross profit of $9.8 million compared to a gross loss of $2.9 million in the second quarter of 2021;
- Operating loss of $7.7 million, an improvement of $9.9 million from the second quarter of 2021;
- Adjusted EBITDA from continuing operations was a positive $2.1 million compared to a positive $3.8 million in the prior quarter and a loss of $10.0 million in the second quarter of 2021;
- Backlog of $495.3 million as of June 30, 2022, with $291.0 million expected to be recognized in the next twelve months.
Item Subsequent to the End of Second Quarter
- Rebranded to Orbital Infrastructure Group to better reflect Company’s go-forward strategy
“Our second quarter results reflect the continued strength of our infrastructure services platform, including our Electric Power and Telecommunications segments,” said Jim O’Neil, Vice Chairman and CEO of Orbital Infrastructure Group. “Our backlog and end market drivers remain strong thanks to historic spending to rebuild our electric grid and expand broadband access. Overall, we remain confident in our strategy and believe the mega-trends across our segments will lead to long-term shareholder value.”
Second Quarter 2022 Financial Results
Total revenue was $93.9 million, compared to $70.3 million in the previous quarter and $11.5 million in the second 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 second quarter was $41.3 million, compared to $39.7 million in the prior quarter and $4.9 million in the second quarter of 2021. The increase was primarily due to the acquisition of Front Line Power. Telecommunications revenue for the second quarter was $20.4 million, compared to $16.1 million in the prior quarter and $6.1 million in the second quarter of 2021. Renewables revenue for the first quarter was $32.3 million, compared to $14.5 million in the prior quarter and $0.5 million in the second quarter of 2021.
Gross profit in the second quarter was $9.8 million, compared to gross profit of $11.6 million in the prior quarter and gross loss of $2.9 million in the second quarter of 2021. Total operating expenses in the second quarter were $17.5 million, compared to $13.4 million in the prior quarter and $14.7 million in the second quarter of 2021. Loss from continuing operations before taxes in the second quarter was $29.7 million, compared to a loss of $36.4 million in the first quarter, and loss of $17.3 million in the second quarter of 2021.
Full Year 2022 Outlook
The Company is raising its full-year consolidated revenue guidance to a range of $405 million to $450 million, from a range of $375 million to $425 million, and reaffirming its full-year Adjusted EBITDA guidance of $38 to $43 million. The revenue revision is due to improved performance with its Electric Power and Telecommunications segments, which are experiencing significant demand for its services, partially offset by the Renewables segment.
Conference Call
Management will host a conference call today, August 11, 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 (412) 317-1826. A live webcast of the conference call can be accessed via the Investor Relations/Events & Presentations section of the website (http://www.orbitalenergygroup.com).
For those unable to attend the live call, a telephonic replay will be available until August 27, 2022. To access the replay of the call dial (412) 317-0088 and provide conference ID 8068575. An archived copy of the webcast will also be available via the website.
About Orbital
Orbital Infrastructure Group, Inc. (Nasdaq: OIG) is a diversified infrastructure services platform, providing engineering, design, construction, and maintenance services to customers in three operating segments; electric power, telecommunications, and renewables.
Beginning in April 2021, Orbital Infrastructure Group transformed its infrastructure strategy with the acquisitions of GTS and Front Line Power Construction, the company’s telecommunications and electric power segment platforms, as well as three synergistic “tuck in” acquisitions (IMMCO, Inc, Full Moon Telecom, and Coax Fiber Solutions) and the divestiture of its legacy Orbital Gas Systems business. The Company is now positioned to profitably grow its infrastructure services platform for years to come, organically and through synergistic acquisitions to capitalize on strong multi-year end market drivers in the industries we serve.
Orbital Infrastructure 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: http://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 Infrastructure’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 Infrastructure’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 Infrastructure’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