Orbital Energy Group Reports Record Revenues in the Fourth Quarter of $41.0 Million and Record Backlog of $523.7 Million

Revenue and Backlog increases of 65% and 28%, respectively from the Third Quarter of 2021

HOUSTON, March 30, 2022 /PRNewswire/ -- Orbital Energy Group, Inc. (NASDAQ:OEG) ("Orbital Energy" or the "Company") today reported its financial results for the three months and twelve months ended December 31, 2021.

• Revenues of $41.0 million, compared to $24.8 million in the prior quarter and $7.6 million for the fourth quarter of 2020;
• Loss from continuing operations, net of income taxes of $15.7 million compared to a loss of $9.5 million in the prior quarter and a loss of $6.3 million in the fourth quarter of 2020;
• Adjusted EBITDA loss from continuing operations of $1.2 million compared to a loss of $7.0 million in the prior quarter and a loss of $3.2 million in the fourth quarter of 2020;
• Acquired Front Line Power Construction, LLC ("Front Line Power") and Full Moon Telecom, LLC ("Full Moon");
• Industry veteran, Nick Grindstaff, joins as Chief Financial Officer;
• Repositioned Orbital Gas Systems as discontinued operations and held for sale.

• Revenues of $82.9 million, compared to $21.5 million in 2020
• Loss from continuing operations, net of income taxes of $49.8 million, compared to a loss of $25.7 million in 2020;
• Adjusted EBITDA loss from continuing operations of $27.0 million, compared to a loss of $16.5 million in 2020;
• Awarded multiple utility-scale solar farm projects;
• Completed four acquisitions, including platform companies Gibson Technical Services, LLC ("GTS") and Front Line Power.

"Our fourth quarter results reflect a meaningful sequential improvement in our financial performance and positions the company for success in 2022 and beyond.  The electric power, telecommunications, and renewable industries are in robust market environments and we anticipate an increasing demand for our infrastructure services going forward." said Jim O'Neil, Vice Chairman and CEO of Orbital Energy Group. "Furthermore, our acquisition of Front Line Power in the quarter was transformational for our company, by providing a significant base of recurring, profitable revenue streams with strong organic growth opportunities for years to come."

Total revenue was $41.0 million, compared to $24.8 million in the previous quarter and $7.6 million in the fourth quarter of 2020. The sequential and year-over-year improvement is primarily due to the acquisitions of GTS and Front Line Power in 2021.

Electric Power revenue for the fourth quarter was $23.3 million, compared to $12.2 million in the previous quarter and $3.6 million in the fourth quarter of 2020.  The increase was primarily due to the acquisition of Front Line Power. Telecommunications revenue for the quarter was $13.0 million, compared to $8.7 million in the prior quarter and zero revenue in the fourth quarter of 2020. Renewables revenue was $4.8 million in the fourth quarter 2021, compared to $3.9 million in the prior quarter and $4.0 million in the fourth quarter of 2020. 

Gross profit in the fourth quarter was $7.4 million, compared to a gross profit of $2.3 million in the third quarter and gross profit of $2.1 million in the fourth quarter of 2020.  Total operating expenses were $16.1 million, compared to $13.1 in the prior quarter and $8.5 million in the fourth quarter of 2020. Loss from continuing operations before taxes was $15.2 million, compared to a loss of $11.6 million in the previous quarter and a loss of $6.3 million in the fourth quarter of 2020.

The financial performance in the quarter was impacted by continued investment in the growth of our electric power and telecommunications segments as well as construction delays on utility scale solar projects.

Total revenue was $82.9 million, compared to $21.5 million in 2020.

Electric Power revenue for the year was $43.6 million, compared to $8.5 million in 2020.  The increase was primarily due to organic growth in Orbital Power Inc. and the acquisition of Front Line Power in November 2021. Telecommunications revenue for 2021 was $27.8 million, reflecting the acquisition of GTS and two tuck-in's, Full Moon and IMMCO, Inc., in 2021. Renewables revenue was $11.6 million in 2021, compared to $13.0 million in the prior year.

Gross profit in 2021 was $4.3 million, compared to $1.9 million in the prior year. Total operating expenses were $57.1 million, compared to $24.0 in the prior year.  Loss from continuing operations net of taxes was $49.8 million, compared to $25.7 million in the prior year.

The year-over-year trend in financial performance was attributable to start-up costs at the Electric Power segment and projects with lower than normal margins during the period for the Renewables segment due to supply chain delays caused by COVID-19 leading to inefficiencies.

Management will host a conference call today, March 30, 2022 at 5:00 pm 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 4586413. 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 (www.orbitalenergygroup.com).

For those unable to attend the live call, a telephonic replay will be available until April 9, 2022. To access the replay of the call dial (404) 537-3406 and provide conference ID 4586413. An archived copy of the webcast and slide presentation will also be available via the link referenced above.

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

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.

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, 2020 and 2021 (when filed), its periodic reports on Form 10-Q, and its Current Reports on Form 8-K filed in 2020 and 2021, 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

[email protected] 

 

 

 

EBITDA and Adjusted EBITDA from Continuing Operations for the Three and Twelve Months Ended December 31, 2021, and 2020

The following table presents reconciliations of the non-GAAP financial measures of EBITDA and Adjusted EBITDA from continuing operations to loss from continuing operations, net of taxes for the three and twelve months ended December 31, 2021, and 2020. These reconciliations are intended to provide useful information to investors and analysts as they evaluate the Company's performance. EBITDA from continuing operations is defined as loss from continuing operations before interest, taxes, depreciation and amortization, and Adjusted EBITDA from continuing operations is defined as EBITDA from continuing operations adjusted for certain other items as described below. We believe that the exclusion of these items from loss from continuing operations enables management and investors to more effectively evaluate the Company's operations period over period and to identify operating trends that might not be apparent when including the excluded items. However, these measures should not be considered as an alternative to loss from continuing operations or other measures of performance that are derived in accordance with GAAP. As to certain of the items below, (i) stock-based compensation and expense may vary from period to period due to fair value adjustments from changes in market conditions, forfeiture rates, accelerated vesting and amounts granted; (ii) acquisition costs vary from period to period depending on the Company's level of acquisition activity; (iii) equity in (earnings) losses of non-integral unconsolidated affiliates varies from period to period depending on the activity and financial performance of non-integral unconsolidated affiliates, including other than temporary impairment charges on the value of the investment using the equity method of accounting; (iv) gain or loss on disposal of assets varies from period to period depending on operational wear and tear and condition of the Company's fixed assets; (v) gain or loss on extinguishment and modification of debt varies from period to period depending on changes in the Company's financing activities and the exercise of certain debt-to-equity conversion features; and (vi) fair value adjustments to equity-linked financial instrument liabilities varies from period to period depending on changes in the market price of Orbital Energy's common stock and certain assumptions used in fair valuation calculations. Because EBITDA and adjusted EBITDA from continuing operations, as defined, exclude some, but not all, items that affect loss from continuing operations, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, loss from continuing operations, net of income taxes and information reconciling the GAAP and non-GAAP financial measures, are included below. See notes to follow:

 

 

 

Estimated EBITDA and Adjusted EBITDA from Continuing Operations for the Full Year 2022

The following table presents reconciliations of the non-GAAP financial measures of EBITDA and Adjusted EBITDA from continuing operations to loss from continuing operations, net of income taxes for the full year ending December 31, 2022. These reconciliations are intended to provide useful information to investors and analysts as they evaluate the Company's expected performance. EBITDA from continuing operations is defined as loss from continuing operations before interest, taxes, depreciation and amortization, and Adjusted EBITDA from continuing operations is defined as EBITDA from continuing operations adjusted for certain other items as described below. We believe that the exclusion of these items from loss from continuing operations enables management and investors to more effectively evaluate the Company's operations period over period and to identify operating trends that might not be apparent when including the excluded items. However, these measures should not be considered as an alternative to loss from continuing operations or other measures of performance that are derived in accordance with GAAP. As to certain of the items below, stock-based compensation expense may vary from period to period due to fair value adjustments from changes in market conditions, forfeiture rates, accelerated vesting and amounts granted. Because EBITDA and adjusted EBITDA from continuing operations, as defined, exclude some, but not all, items that affect loss from continuing operations, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, loss from continuing operations, net of income taxes and information reconciling the GAAP and non-GAAP financial measures, are included below. See notes to follow:

 

 

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SOURCE Orbital Energy Group, Inc.