Orbital Energy Group Reports Second Quarter 2021 Financial Results

HOUSTON, Aug. 16, 2021 /PRNewswire/ -- Orbital Energy Group, Inc. (Nasdaq: OEG) ("Orbital Energy" or the "Company") today reported unaudited financial results for the three and six months ended June 30, 2021.

Financial and Operating Highlights:

• Reported total revenues of $16.3 million for the second quarter of 2021, a 110% increase compared to $7.8 million for the second quarter of 2020;
• Gross loss was $1.2 million for the second quarter of 2021, compared to gross profit of $1.0 million for the second quarter of 2020, the decrease was attributable to ramp-up costs associated with onboarding additional equipment, supplies and personnel to meet future requirements to fulfill backlog and the absence of sizable projects during the period for Orbital Solar Services;
• The Company expects margins to improve substantially during the course of 2021 as Orbital Telecom Services contributes more revenues, Orbital Power Services continues to gain efficiencies and increase revenues, and several large Orbital Solar Services projects begin;
• Operating loss was $18.3 million for the second quarter of 2021, compared to $7.2 million for the comparable 2020 period, mainly due to the items previously mentioned, ongoing operating costs as well as costs for vesting equity compensation and costs related to the acquisition of Gibson Technical Services, Inc. ("GTS");
• As of June 30, 2021, the Company held cash and cash equivalents of $9.6 million and restricted cash of $1.2 million;
• Total backlog increased to $294.9 million at June 30, 2021, up from $40.4 million at December 31, 2020, reflecting backlog growth across all operating segments;
• Completed the acquisition of 100% of Gibson Technical Service, Inc., an Atlanta-based telecommunications company providing diversified telecommunications services nationally since 1990; and
• Subsequent to quarter end, announced the synergistic tuck-in acquisition of IMMCO, Inc. a privately-owned full-service telecom engineering and network design company.

Commentary

"Early in the quarter, we established a strong foothold in the telecommunications industry with the platform acquisition of Gibson Technical Services," said Jim O'Neil, vice chairman and CEO of Orbital Energy Group. "Since that time, we've been awarded substantial telecommunications projects while experiencing significant expansion at Orbital Power Services. In addition, Orbital Solar was awarded its first large utility scale solar project. Further, we recently announced the tuck-in acquisition of IMMCO and another sizeable utility scale solar project award. These accomplishments will drive our continued evolution into a full-service infrastructure services platform. Our significant growth in backlog is a leading indicator that Orbital Energy Group is on a path to profitability. Going forward, we will continue to pursue synergistic strategic acquisitions that will generate strong organic growth. Through this strategy, we expect to build greater value for our shareholders and are on a trajectory to achieve profitable, long-term growth."

Conference Call

Management will host a conference call today, August 16, 2021 at 8:30 AM ET to discuss these results as well as recent corporate developments. After management's opening remarks, there will be a question-and-answer period. To access the call, please dial (888) 734-0328 or (678) 894-3054 and provide conference ID 8195529. 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 September 1, 2021. To access the replay of the call dial (855) 859-2056 or (404) 537-3406 and provide conference ID 8195529. An archived copy of the webcast and slide presentation will also be available via the link provided above.

About Orbital Energy Group

Orbital Energy Group, Inc. [Nasdaq: OEG] is creating a diversified energy services platform through the acquisition and development of innovative companies. Orbital Energy's group of businesses includes Orbital Power Services, Orbital Solar Services, Orbital Telecom Services and Orbital Gas Systems.

Orbital Power Services provides engineering, construction, maintenance and emergency response solutions to the power, utilities and midstream markets.

Orbital Solar Services provides engineering, procurement and construction ("EPC") expertise in the renewable energy industry and established relationships with solar developers and panel manufacturers in the utility scale solar market.

Orbital Telecom Services, operating as Gibson Technical Services, has nationwide locations equipped to effectively support multi-vendor OEM technology environments and outside plant construction operations on an as-needed basis with specialized services in broadband, wireless, outside plant and building technologies, including healthcare.

Orbital Gas Systems is a 30-year leader in innovative gas solutions, serving the energy, power and processing markets through the design, installation and commissioning of industrial gas sampling, measurement and delivery systems.

As a publicly traded company, Orbital Energy is dedicated to maximizing shareholder value. But most important, our commitment to conduct business with a high level of integrity, respect, and philanthropic dedication allows the organization to make a difference in the lives of their customers, employees, investors and global community.

For more information please visit: www.orbitalenergygroup.com 

Important Cautions Regarding Forward Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information regarding these and other factors, which could materially affect the Company and its operations, are included in certain forms the Company has filed with the Securities and Exchange Commission.

Investor Relations:
KCSA Strategic Communications
David Hanover
T: 212-896-1220
[email protected]   

Reconciliation of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) are non-GAAP financial measures and are reconciled in the table below. These non-GAAP financial measures do not represent funds available for management's discretionary use and are not intended to represent cash flow from operations. EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) exclude components that are significant in understanding and assessing the company's results of operations and cash flows. In addition, EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) are not terms defined by GAAP and as a result our measure of EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) might not be comparable to similarly titled measures used by other companies. However, EBITDA, Adjusted EBITDA and Adjusted Net Income (loss) are used by management to evaluate, assess and benchmark the company's operational results and the company believes EBITDA, Adjusted EBITDA, and Adjusted Net Income (loss) are relevant and useful information which are often reported and widely used by analysts, investors and other interested parties in the Company's industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the Company's ability to meet future debt service, capital expenditure and working capital requirements. Adjusted Net Income (loss) eliminates the amortization expenses associated with intangible assets acquired with Orbital Gas Systems Limited, Orbital Solar Services and GTS as well as non-cash expenses associated with impairments, non-cash gains and losses related to the Company's equity method investment in VPS and stock-based compensation, royalties and services during the period.

SOURCE Orbital Energy Group, Inc.

Related Links

https://www.orbitalenergygroup.com