Third Quarter Summary

  • Revenues of $99.8 million compared to $24.8 million for the third quarter of 2021;
  • Adjusted EBITDA loss from continuing operations of $14.6 million compared to a loss of $6.3 million in the third quarter of 2021; excluding the results of the renewables segment, adjusted EBITDA for the third quarter of 2022 was a positive $6.0 million;
  • Backlog of $472.3 million as of September 30, 2022, up 15% from the third quarter of 2021, with $265.9 million expected to be recognized in the next twelve months;
  • Non-cash impairment charges of $104.7 million related to goodwill, other intangible assets and financed leased assets due to the company’s book value to market value evaluation and the impairment of leases for surplus equipment derived from synergistic cost savings initiatives.

HOUSTONNov. 14, 2022 /PRNewswire/ — Orbital Infrastructure Group, Inc. (“OIG”) [NASDAQ: OIG] today reported its financial results for the third quarter ended September 30, 2022.

OIG’s Vice-Chairman and CEO, Jim O’Neil, commented, “I am disappointed in our quarterly results, primarily driven by losses in the renewables segment, specifically the underperformance of one of our utility scale solar projects currently under construction. Despite reporting significant year-over-year and sequential revenue growth, the third quarter results fell short of our prior expectations and led to a downward revision to our fiscal year 2022 guidance. We believe profitable growth in the electric power and telecommunications segments, coupled with the shift in our renewables strategy away from fixed price EPC projects, will result in more consistent performance in the future”

O’Neil continued, “Our backlog remains healthy at $472.3 million, and we continue to see broad-based infrastructure market strength driven by continued investments in grid resiliency and upgrades to aging infrastructure, ongoing demand for renewable power and the 5G network transition. We remain committed to the execution of our growth strategy, improving profitability, and successfully restructuring our balance sheet to create a sustainable capital structure that matches the strength of our operating business.”

Third Quarter 2022 Financial Results

Total revenue was $99.8 million compared to $24.8 million in the third quarter of 2021. The year-over-year improvement is primarily due to acquisitions in the electric power and telecommunications segments as well as organic growth across all operating segments.

Electric Power revenue for the third quarter was $36.7 million compared to $12.2 million in the third quarter of 2021, an increase due to an acquisition in the electric power segment. Telecommunications revenue for the third quarter was $24.1 million compared to $8.7 million in the third quarter of 2021. The increase from prior periods is due to continued acceleration of infrastructure buildout associated with Rural Digital Opportunity Fund (RDOF) deployment.

Renewables revenue for the third quarter was $39.0 million compared to $3.9 million in the third quarter of 2021.  This increase is due to the ramp-up of construction activity on utility scale solar projects.

Gross loss in the third quarter was $5.8 million compared to gross profit of $2.3 million in the third quarter of 2021. Total operating expenses in the third quarter were $122.9 million compared to $13.1 million in the third quarter of 2021. Loss from continuing operations before income taxes in the third quarter was $141.4 million compared to a loss of $11.6 million in the third quarter of 2021.

Loss from continuing operations in the third quarter primarily includes a loss on impairment of goodwill and other intangible assets of $100.3 million associated with a shortfall in market value as compared to book value, a loss of $25.5 million in the renewable segment and a $4.5 million impairment of excess equipment derived from synergistic cost savings initiatives.

Full Year 2022 Outlook

On November 2, 2022, the Company announced its updated financial guidance for the full year 2022. The Company lowered its full year 2022 consolidated revenue guidance to a range of $350 million to $375 million from its previous range of $405 million to $450 million and lowered its full year 2022 adjusted EBITDA to a range of $4 million to $6 million from its previous range of $38 million to $43 million. Challenges primarily in the Company’s Renewable Segment led to a revision of its full year 2022 revenue and adjusted EBITDA range.

Conference Call / Webcast Information

As previously announced, management will host a conference call today, November 14, 2022 at 9:00 am ET to discuss the Company’s results and recent corporate developments. After management’s opening remarks, there will be a question-and-answer period.

For those planning to participate in the call, please dial +1 (800) 715-9871(domestic) or +1 (646) 307-1963 (international) and provide conference ID 1846091.

The live webcast will be available on the Investors Relations/Events & Presentations section of the Company’s website at

For those unable to attend the live call, a telephonic replay will be available until November 30, 2022. To access the replay of the call dial +1 (800) 770-2030 (domestic) or +1 (609) 800-9909 (international) and provide conference ID 1846091. An archived copy of the webcast will also be available via the website.

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.

About Orbital Infrastructure Group

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.

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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 Company’s forecasted full year 2022 revenue, EBITDA and adjusted EBITDA from continuing operations. 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 year ended December 31, 2021, and its periodic reports on Form 10-Q. 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:
TraDigital Investor Relations
Kevin McGrath
+1 (646) 418-7002