Orion Group Holdings, Inc.

Good day and welcome to the Ryan Group Holdings 4th Quarter and Full Year 2022 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by the zero. On today's call, management will provide prepared remarks and then we will open up the call for your questions. To ask a question, analysts may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your headset before pressing the key and to withdraw your question. Please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Margaret Boyce, Investor Relations for Orion. Please go ahead, ma'am.

Thank you, Operator, and thank you all for joining us today to discuss Orion Group Holdings' fourth quarter and full year 2022 financial results. We issued our earnings release after market last night. It is available in the investor relations section of our website at oriongroupholdingsinc.com. I'm here today with Travis Boone, Chief Executive Officer of Orion, and Scott Banish, Chief Financial Officer. On today's call, management will provide prepared remarks and then we'll open up the call for your questions. Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases. Statements that are not historical facts such as statements regarding the current and expected status of our negotiations regarding a replacement credit facility and our expectations regarding the filing of our audited financial statements tomorrow with a going concern or forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from those forward-looking statements are contained in our SEC filings, including our reports on Form 10-Q. With that, I would now like to turn the call over to Travis. Travis, please go ahead.

Thank you, Margaret, and thank you all for joining our fourth quarter and year-end 2022 conference call. Here with me today is Scott Banish, our Chief Financial Officer. We have a lot of ground to cover today, so let's get started. I'll begin with our strategic plan to put Orion on the right course for improved performance, and then Scott will discuss operations and financials. In the six months since Scott and I joined Orion, we've formed a great partnership and have been busy dividing and conquering our workload. We both continue to be impressed by the talent and energy of our team and are excited about the enormous opportunity ahead of us. Today, we have a much deeper understanding of our company's strengths and our opportunities for improvement. We believe our recent financial results barely scratched the surface of Orion's potential, and we are confident our business will continue to improve in 2023. In fact, 2023 is off to a great start. We are building great momentum. Since the beginning of the year, we announced contract wins totaling over $582 million. including on Friday afternoon when we were awarded a $448 million contract with the United States Navy to build a dry dock at Pearl Harbor as part of a joint venture. The overall contract for the JV is $2.8 billion. We've secured concrete winds in our Dallas and Houston market of around $100 million and won our largest diving services contract in our history, a $20 million project. Our year-end backlog, combined with our recent winds, comprises almost a billion dollars of work to complete in the next few years. You may recall on a November earnings call, I mentioned that we were bidding on our largest projects ever in both concrete and marine. And with the win on Friday, we won both of those projects. We are very proud of the focus of our teams to secure higher margin wins over the past few months. Since assuming the role of CEO, I've been able to validate the potential that first drew me to Orion. We're a vital provider of services to mission-critical infrastructure projects within the marine and building sectors in some of our nation's fastest-growing areas. We have long-tenured relationships with Blue Chip clients across the government and private sectors in both our marine and concrete segments, including the U.S. Navy and Army Corps of Engineers, many of the largest ports in the U.S. and the Caribbean, Metro Petrochem owners, and in our concrete division, significant general contractors in the Dallas and Houston markets. The talent pool we have is especially impressive to Scott and me and the willingness of our people to adapt and learn to achieve greater growth and success both for Orion and professionally is essential to executing our strategy. Lastly, we have a highly engaged and supportive board of independent directors with diverse backgrounds and complimentary expertise to guide us. We are confident that Orion has all the elements for success and the right team to unlock the value of our assets and deliver improved financial performance. That said, we have a big shift to turn around. It won't happen overnight, but we know what needs to be done to maximize the profitability and potential of this business. As announced in yesterday's press release, we have a three-point strategic plan, which we believe will unlock Orion's potential for long-term sustainable growth to the benefit of all of our stakeholders.