Orion Group Holdings, Inc.

Greetings, and welcome to the Orion Group Holdings first quarter 2021 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Francis Okanewski, Vice President of Investor Relations.

Good morning, everyone, and welcome to Orion Group Holdings' first quarter 2021 earnings conference call and webcast. My name is Fran Okanewski, Vice President, Investor Relations, and joining me today are Mark Stauffer, Orion Group Holdings President and Chief Executive Officer, and Robert Tabb, our Executive Vice President and Chief Financial Officer. Regarding the format of the call, we've allocated about 10 minutes for prepared remarks in which Mark and Robert will highlight our results and update our market outlook. We will then open the call for questions. Through the course of this conference call, we'll make projections and forward-looking statements regarding, among other things, our end markets, revenues, gross profits, gross margin, EBITDA, EBITDA margin, backlog, projects and negotiation, and pending awards, as well as our estimates and assumptions regarding our future growth administrative expenses and capital expenditures. These statements are predictions that are subject to risks and uncertainties, including those described in our 10-K that may cause actual results to differ materially from those statements. Moreover, past performance is not necessarily an indicator of future results. By providing this information, we undertake no obligation to update or revise any new projections or forward-looking statements, whether as a result of new developments or otherwise. Also, please note that adjusted net income, adjusted earnings per share, EVA DA, and EVA DA margin are non-GAAP financial measures under the rules of the Securities and Exchange Commission, including Regulation G. Please refer to the reconciliations and definitions inclusive for the most comparable GAAP measures and reconciliation tables accompanying this earnings call within the press release issued yesterday. The press release can be found at our website at www.OrionGroupHoldingsInc.com. Also, for additional discussion of risk factors that could cause actual results to differ materially from our current expectations, please refer to our quarterly and annual filings with the SEC, which are also available in the Investors section of our website. And with that, I'd like to turn the call over to Mark Stauffer, President and Chief Executive Officer. Mark?

Thank you, and good morning, everyone. Thanks for joining us today. Today, we'll discuss our first quarter 2021 results, provide updates on the benefits we continue to reap from our ISG and other operational improvement initiatives, and discuss our current outlook. I'll begin with an overview of the first quarter. Robert will then discuss our financial performance in more detail. Then I'll come back to discuss our markets and provide an update on our ERP implementation before we turn to Q&A. As always, I'd like to begin by thanking our team for their hard work and commitment to our success, not only with regard to operational and financial performance, but most importantly, with respect to safety. Our foremost priority is that all our employees go home to their families the same way they came into work, healthy and injury-free. We are deeply committed to our Target Zero program to support our vision of an incident-free workplace. With respect to the first quarter of 2021, as anticipated, our results reflected the impact of the historic winter storm in Texas during February, which disrupted our progress on projects across our concrete and marine operations, including our dredging projects. This reduced revenue for the quarter by approximately $8.2 million and lowered earnings per share by approximately three cents. Despite the weather challenges, our concrete segment delivered year-over-year growth in both revenue and profitability, which was a result of our team's solid execution and of the labor and equipment efficiencies gained by our ISG program. While our backlog was down at the end of the first quarter relative to the end of the fourth quarter and the first quarter of last year, we are very optimistic about the trends we are seeing with respect to project opportunities across our end markets. Our current level of quoted work stands at nearly 2 billion, a record level up almost 130% from this time last year, and also up meaningfully on a sequential basis. We have a significant amount of bids submitted and under evaluation in both our marine and concrete segments, and as noted in our earnings release, we currently have $134 million of low bid or awarded work, the highest reported level in five quarters. We anticipate new bidding opportunities to emerge as economic activity picks up with increasing vaccination levels and herd immunity with respect to COVID-19. These factors make us confident we will be able to maintain our project pipeline and increase backlog as 2021 progresses, positioning us well for 2021 and beyond. This favorable outlook is further enhanced by the possibility of a new federal infrastructure bill, which would be an additional catalyst for increased demand across our diverse operations. Also, during the first quarter, we continued to improve our liquidity. Now, I'll turn the call over to Robert to discuss our financial results for Q1.