Attached files
| file | filename |
|---|---|
| EX-21.1 - LIST OF SUBSIDIARIES - Orion Group Holdings Inc | exhibit_211.htm |
| EX-31.1 - CERTIFICATION OF CEO - Orion Group Holdings Inc | exhibit_311.htm |
| EX-23.2 - CONSENT OF GARLAND SANDHOP, CPA - Orion Group Holdings Inc | exhibit_232.htm |
| EX-31.2 - CERTIFICATION OF CFO - Orion Group Holdings Inc | exhibit_312.htm |
| EX-23.1 - CONSENT OF GRANT THORNTON - Orion Group Holdings Inc | exhibit_231.htm |
| EX-32.1 - CERTIFICATION OF CEO AND CFO - Orion Group Holdings Inc | exhibit_321.htm |
| EX-99.1 - 2008 TWL FINANCIAL STATEMENTS - Orion Group Holdings Inc | exhibit_991twl.htm |
| EX-99.2 - SEPTEMBER 30 2009 TWL FINANCIAL STATEMENTS - Orion Group Holdings Inc | exhibit_992twl.htm |
| 10-K - ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2009 - Orion Group Holdings Inc | annualreportonform10k.htm |
Exhibit 99.3
ORION
MARINE GROUP, INC.
UNAUDITED
PRO FORMA CONDENSED COMBINED FINANCIAL DATA
The
following unaudited pro forma condensed combined financial information gives pro
forma effect to the acquisition of T.W. LaQuay Dredging, LLC (“TWLD”) by Orion
Marine Group, Inc. (“Orion or the “Company”), accounted for as a business
combination using the purchase method of accounting. The purchase
price was allocated to the assets acquired and the liabilities assumed using
estimated fair values as of the acquisition date. The estimates and
assumptions are subject to change upon the finalization of valuations, which are
contingent upon final appraisals of property and equipment, identifiable
intangible assets, and other adjustments through January 28,
2010. Revisions to the preliminary purchase price allocation could
result in significant deviations from the accompanying pro forma
information.
The
following unaudited pro forma condensed consolidated financial statements and
explanatory notes present how the financial statements of Orion may have
appeared had the acquisition occurred on January 1, 2009 (with respect to the
results of operations) or as of September 30, 2009 (with respect to the balance
sheet information).
These
unaudited pro forma condensed consolidated financial statements have been
derived from and should be read together with the historical financial
statements and related notes of Orion included in its Annual Report on Form 10-K
for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q for
the quarter and nine months ended September 30, 2009, both of which as filed
with the Securities and Exchange. With respect to TWLD, this
information is included as exhibits 99.1 and 99.2 to this Annual
Report on Form 10-K for the year ended December 31, 2009.
The
unaudited pro forma condensed consolidated financial information has been
prepared by management, are presented for illustrative purposes only, and do not
purport to represent what the results of operations or financial position of the
Company would have been had the acquisition occurred as of the dates indicated,
nor is it indicative of future financial position or results of operations for
any period. The unaudited pro forma adjustments reflect, among other
things, pre-closing distributions by TWLD to its equity holders of certain
assets and the repayment of the debt held by TWLD. In addition,
classifications of certain combined financial accounts of TWLD may differ from
those of Orion, and have been reflected to conform to Orion’s
presentation. The unaudited pro forma condensed consolidated
financial information reflects the acquisition of TWLD, which Orion financed
through cash which had been principally raised from the proceeds of the sale of
its common stock in August 2009.
ORION
MARINE GROUP, INC.
Unaudited
Pro Forma Condensed Combined Balance Sheet
At
September 30, 2009
($ in
thousands)
|
Orion
|
TWLD
|
Pro
Forma
Adjustments
|
Pro
Forma
Balance
Sheet
|
|||||||||||||||||
|
Assets
|
||||||||||||||||||||
|
Current
assets
|
||||||||||||||||||||
|
Cash
and cash equivalents
|
$ | 108,984 | $ | 2,641 | $ | (64,000 | ) | b | $ | 47,625 | ||||||||||
|
Short-term
investments
|
29 | (29 | ) | a | -- | |||||||||||||||
|
Accounts
receivable, including retainage
|
48,730 | 4,268 | (12 | ) | a | 52,986 | ||||||||||||||
|
Taxes
receivable
|
2,197 | 2,197 | ||||||||||||||||||
|
Note
receivable
|
765 | 765 | ||||||||||||||||||
|
Inventories
|
1,744 | 1,744 | ||||||||||||||||||
|
Deferred
tax asset
|
1,642 | 1,642 | ||||||||||||||||||
|
Costs
and estimated earnings in excess of billings
|
9,094 | 2,291 | 11,385 | |||||||||||||||||
|
Prepaid
expenses
|
1,834 | 904 | 2,738 | |||||||||||||||||
|
Total
current assets
|
174,989 | 10,134 | (64,041 | ) | 121,082 | |||||||||||||||
|
Property
and equipment, net of accumulated
|
80,451 | 29,395 | 19,199 | c | 129,045 | |||||||||||||||
|
Goodwill
|
12,096 | 8,664 | c | 20,761 | ||||||||||||||||
|
Intangible
assets, net of amortization
|
320 | 14 | (14 | ) | a | 320 | ||||||||||||||
|
Investment
in subsidiary
|
b,c | -- | ||||||||||||||||||
|
Other
assets
|
66 | 66 | ||||||||||||||||||
|
Total
assets
|
$ | 267,922 | $ | 39,543 | $ | (36,192 | ) | $ | 271,273 | |||||||||||
|
Liabilities
and Stockholders’ Equity
|
||||||||||||||||||||
|
Current
liabilities
|
||||||||||||||||||||
|
Current
portion of long-term debt
|
$ | -- | $ | 2,713 | $ | (2,713 | ) | a | $ | -- | ||||||||||
|
Accounts
payable
|
21,259 | 1,069 | 21,549 | |||||||||||||||||
|
Accrued
liabilities
|
11,739 | 1,198 | 12,937 | |||||||||||||||||
|
Taxes
payable
|
353 | 353 | ||||||||||||||||||
|
Billings
in excess of costs and estimated earnings
|
5,402 | 1,084 | 6,486 | |||||||||||||||||
|
Total
current liabilities
|
38,753 | 6,064 | (2,713 | ) | 42,105 | |||||||||||||||
|
Long-term
debt, less current portion
|
-- | 11,989 | (11,989 | ) | a | -- | ||||||||||||||
|
Other
long-term liabilities
|
409 | 210 | (210 | ) | a | 409 | ||||||||||||||
|
Deferred
income taxes
|
11,383 | 11,383 | ||||||||||||||||||
|
Deferred
revenue
|
330 | 330 | ||||||||||||||||||
|
Total
liabilities
|
50,875 | 18,264 | (14,912 | ) | 54,226 | |||||||||||||||
|
Stockholders’
equity
|
||||||||||||||||||||
|
Common
stock
|
268 | 268 | ||||||||||||||||||
|
Treasury
stock
|
-- | -- | ||||||||||||||||||
|
Additional
paid in capital
|
150,748 | 1,848 | 150,748 | |||||||||||||||||
|
Retained
earnings
|
66,031 | 19,431 | (21,279 | ) | a,c | 66,031 | ||||||||||||||
|
Total
stockholders’ equity
|
217,047 | 21,280 | (21,279 | ) | 217,047 | |||||||||||||||
|
Total
liabilities and stockholders’ equity
|
$ | 267,922 | 39,543 | (36,192 | ) | $ | 271,273 | |||||||||||||
See Pro
Forma Adjustments and Explanatory Notes on next page.
Orion
Marine Group, Inc.
Unaudited
Pro Forma Condensed Combined Balance Sheet
Pro Forma
Adjustments and Explanatory Notes
At
September 30, 2009
Amounts
in thousands
|
Pro Forma Adjustments
|
|||||||||||
|
(a)
|
Current
portion of long-term debt
|
$ | 2,713 | ||||||||
|
Long
term debt, net of current portion
|
11,989 | ||||||||||
|
Other
long-term liabilities
|
210 |
|
|||||||||
|
Short
term investments
|
(29 | ) | |||||||||
|
Employee
receivables
|
(12 | ) | |||||||||
|
Loan
costs, net of amortization
|
(14 | ) | |||||||||
|
Retained
earnings
|
(14,857 | ) | |||||||||
|
Record
TWLD assets and liabilities not assumed
|
|||||||||||
|
(b)
|
Investment
in TWLD
|
$ | 64,000 | ||||||||
|
Cash
and cash equivalents
|
(64,000 | ) | |||||||||
|
Record
investment in TWLD
|
|||||||||||
|
(c)
|
Goodwill
|
$ | 8,664 | ||||||||
|
Property
and equipment
|
19,199 | ||||||||||
|
Retained
earnings
|
36,137 | ||||||||||
|
Investment
in TWLD
|
(64,000 | ) | |||||||||
|
Entries
in consolidation to reflect goodwill and step-up in basis of property and
equipment
|
|||||||||||
|
Explanatory Notes
|
|||||||||||
| (1 | ) |
Summary
of purchase price
|
|||||||||
|
Cash
and cash equivalents
|
$ | 64,000 | |||||||||
| $ | 64,000 | * | |||||||||
|
Pro
Forma Preliminary Allocation of Purchase Price
|
|||||||||||
|
Working
capital
|
$ | 6,742 | |||||||||
|
Property
and equipment
|
48,594 | ||||||||||
|
Goodwill
|
8,664 | ||||||||||
|
Total
preliminary purchase price allocation
|
$ | 64,000 | |||||||||
*$4.0
million has been placed in escrow, payable to the Seller as a result of an
increase in the purchase price of the membership interests by the amount of any
additional taxes incurred by the Seller arising from the allocation of the
membership interests purchase price, as further described in Section 1060 of the
U.S. Internal Revenue Code, as amended. An additional $4.0 million
has been placed in escrow, to be paid to the Seller one year from the date of
closing, after satisfaction of all representations and warranties.
Orion
Marine Group, Inc.
Unaudited
Pro Forma Condensed Combined Statements of Income
In
thousands, except share and per share information
|
Year
ended December 31, 2008
|
||||||||||||||||||||
|
Orion
|
TWLD
|
Pro
Forma Adjustments
|
Pro
Forma Combined
|
|||||||||||||||||
|
Contract
revenues
|
$ | 261,802 | $ | 22,279 | $ | 109 | b | $ | 284,190 | |||||||||||
|
Cost
of contract revenues
|
211,351 | 12,054 | 7,408 | a,b,d | 230,813 | |||||||||||||||
|
Gross
profit
|
50,451 | 10,225 | (7,299 | ) | 53,377 | |||||||||||||||
|
Selling,
general and administrative
|
27,978 | 9,614 | (7,279 | ) | a | 30,313 | ||||||||||||||
|
Operating
income
|
22,473 | 612 | (20 | ) | 23,065 | |||||||||||||||
|
Other
(income) expense
|
||||||||||||||||||||
|
Other
income
|
-- | (1,785 | ) | 1,284 | b,c | (501 | ) | |||||||||||||
|
Interest
(income)
|
(530 | ) | (1 | ) | (531 | ) | ||||||||||||||
|
Interest
expense
|
1,246 | -- | -- | a | 1,246 | |||||||||||||||
|
Other
(income) expense, net
|
716 | (1,786 | ) | 1,304 | 715 | |||||||||||||||
|
Income
before income taxes
|
21,757 | 2,398 | (1,304 | ) | 22,851 | |||||||||||||||
|
Income
tax expense
|
7,282 | -- | 366 | e | 7,648 | |||||||||||||||
|
Net
income
|
$ | 14,475 | $ | 2,398 | $ | 1,670 | $ | 15,203 | ||||||||||||
|
Basic
earnings per share
|
$ | 0.67 | $ | 0.71 | ||||||||||||||||
|
Diluted
earnings per share
|
$ | 0.66 | $ | 0.69 | ||||||||||||||||
|
Shares
used to compute earnings per share:
|
21,561,201 | 21,561,201 | ||||||||||||||||||
|
Basic
|
21,979,535 | 21,979,535 | ||||||||||||||||||
|
Diluted
|
||||||||||||||||||||
Pro Forma
Adjustments and Explanatory Notes
(amounts
in thousands)
|
Pro
forma adjustments and explanatory notes:
|
|||||
|
(a)
|
Cost
of contract revenues
|
$ |
6,641
|
||
|
Interest
expense
|
638
|
||||
|
Selling,
general and administrative expenses
|
(7,279)
|
||||
|
Reclassification
of project related expenses to cost of contract revenues to conform to
Orion presentation
|
|||||
|
(b)
|
Cost
of contract revenues
|
$ |
17
|
||
|
Other
income
|
92
|
||||
|
Contract
revenues
|
(109)
|
||||
|
Reclassification
of other income/expense to conform to Orion
presentation
|
|||||
|
(c)
|
Other
income
|
$ |
1,192
|
||
|
Fixed
assets
|
(1,192)
|
||||
|
Reclassification
of Texas equipment grant to reduce fixed asset cost to conform to Orion
presentation
|
|||||
|
(d)
|
Depreciation
|
$ |
750
|
||
|
Accumulated
depreciation
|
(750)
|
||||
|
Record
additional depreciation related to step-up of assets
|
|||||
|
(e)
|
Tax
expense
|
$ |
366
|
||
|
Taxes
payable
|
(366)
|
||||
|
Record
additional taxes at Orion’s effective tax rate at 33.5%
|
|||||
Orion Marine Group, Inc.
Unaudited
Pro Forma Condensed Combined Statements of Income
In
thousands, except share and per share information
|
Nine
months ended September 30, 2009
|
||||||||||||||||||||
|
Orion
|
TWLD
|
Pro
Forma Adjustments
|
Pro
Forma Combined
|
|||||||||||||||||
|
Contract
revenues
|
$ | 222,259 | $ | 29,060 | $ | 432 | b | $ | 251,751 | |||||||||||
|
Cost
of contract revenues
|
173,112 | 12,699 | 6,876 | a,b,d | 192,686 | |||||||||||||||
|
Gross
profit
|
49,147 | 16,361 | (6,444 | ) | 59,064 | |||||||||||||||
|
Selling,
general and administrative
|
23,638 | 8,844 | (7,010 | ) | a | 25,472 | ||||||||||||||
|
Operating
income
|
25,509 | 7,518 | 566 | 33,593 | ||||||||||||||||
|
Other
(income) expense
|
||||||||||||||||||||
|
Other
income
|
-- | (2,329 | ) | 1,973 | b,c | (356 | ) | |||||||||||||
|
Interest
(income)
|
(274 | ) | -- | (274 | ) | |||||||||||||||
|
Interest
expense
|
523 | -- | -- | a | 523 | |||||||||||||||
|
Other
(income) expense, net
|
249 | (2,329 | ) | (1,973 | ) | (107 | ) | |||||||||||||
|
Income
before income taxes
|
25,260 | 9,847 | (1,407 | ) | 33,700 | |||||||||||||||
|
Income
tax expense
|
9,236 | -- | 3,086 | e | 12,322 | |||||||||||||||
|
Net
income
|
$ | 16,024 | $ | 9,847 | $ | (4,493 | ) | $ | 21,378 | |||||||||||
|
Basic
earnings per share
|
$ | 0.71 | $ | 1.00 | ||||||||||||||||
|
Diluted
earnings per share
|
$ | 0.70 | $ | 0.97 | ||||||||||||||||
|
Shares
used to compute earnings per share:
|
22,485,770 | 22,485,770 | ||||||||||||||||||
|
Basic
|
22,896,150 | 22,896,150 | ||||||||||||||||||
|
Diluted
|
||||||||||||||||||||
Pro Forma
Adjustments and Explanatory Notes
(amounts
in thousands)
|
Pro
forma adjustments and explanatory notes:
|
|||||
|
(a)
|
Cost
of contract revenues
|
$ |
6,313
|
||
|
Interest
expense
|
697
|
||||
|
Selling,
general and administrative expenses
|
(7,010)
|
||||
|
Reclassification
of project related expenses to cost of contract revenues to conform to
Orion presentation
|
|||||
|
(b)
|
Other
income
|
$ |
432
|
||
|
Contract
revenues
|
(432)
|
||||
|
Reclassification
of other income/expense to conform to Orion
presentation
|
|||||
|
(c)
|
Other
income
|
$ |
1,541
|
||
|
Fixed
assets
|
(1,541)
|
||||
|
Reclassification
of Texas equipment grant to reduce fixed asset cost to conform to Orion
presentation
|
|||||
|
(d)
|
Depreciation
|
$ |
563
|
||
|
Accumulated
depreciation
|
(563)
|
||||
|
Record
additional depreciation related to step-up of assets
|
|||||
|
(e)
|
Tax
expense
|
$ |
3,086
|
||
|
Taxes
payable
|
(3,086)
|
||||
|
Record
additional taxes at Orion’s effective tax rate at 36.6%
|
|||||