Orbital Energy Group, Inc. (OEG) Reports Q1 Loss of $0.24

Orbital Energy Group, Inc. (NASDAQ: OEG) reported Q1 EPS of ($0.24), versus ($0.13) reported last year. Revenue for the quarter came in at $5.7 million, versus $5.5 million reported last year.

Financial and Operating Highlights:

• Reported total revenues of $5.7 million for the first quarter of 2020, compared to $5.5 million for the first quarter of 2019;
• Gross profit was $559,000 for the first quarter of 2020, compared to $1.2 million for the first quarter of 2019, the decline attributable entirely to start-up costs at the Company's Orbital Power Services group and expected to improve throughout the remainder of 2020;
• Gross margin was 9.8% for the first quarter of 2020, compared to 21.7% for the first quarter of 2019, respectively;
• Operating loss was $7.1 million for the first quarter of 2020, compared to $4.2 million in the prior year period, mainly due to higher SG&A associated with Orbital Power Services start-up costs and acquisition-related expenses;
• Held Cash and cash equivalents of $6.7 million and Restricted cash of $1.0 million as of March 31, 2020, with increased uses of cash in the first quarter primarily related to acquisition activity, working capital adjustment on sale of CUI Power business, normal administrative costs and start-up costs for Orbital Power Services;
• Energy segment backlog was $9.5 million at March 31, 2020, down slightly from $9.6 million at December 31, 2019 due to lower translation rates in the U.K. and timing of customer projects;
• Subsequent to quarter end, completed the acquisition of Reach Construction Group ("Reach"), an engineering, procurement and construction ("EPC") company with expertise in the utility scale solar renewable energy industry; and
• Consummated the Company's name change to Orbital Energy Group, Inc., listed for trading under ticker symbol 'OEG' as of May 11, 2020.

Commentary

"During the first quarter, we continued to move forward with our transformational strategy to become a diversified energy infrastructure services company," said Jim O'Neil, vice chairman and CEO of Orbital Energy. "We successfully completed our accretive, platform acquisition of Reach Construction Group, a utility scale solar engineering, procurement, and construction services company. At the same time, we expanded our capabilities in Houston to capitalize on secular trends in the North American renewable energy market. Complementing this, we continued to develop our Orbital Power Services operation in Dallas, which is focused on electric transmission and distribution services. With this foundation in place and the divestiture of our non-energy related businesses last year, we are well positioned to establish ourselves as a leading energy services infrastructure company."

Mr. O'Neil continued, "While we began to experience the impact of COVID-19 on construction activity in the first quarter of this year, we continue to operate in all areas of our business as an essential service provider. However, we have seen a significant decrease in business opportunities company-wide. Despite uncertainty in our near-term construction outlook, our long-term business fundamentals remain intact. The number one priority during this pandemic is the health and safety of our employees. Accordingly, we have taken actions to protect our employees, focus on business continuity and bolster our liquidity. Looking forward, we remain confident our strong foundation of energy-focused operations will be successful in capitalizing on the attractive underlying market fundamentals and long-term secular growth trends in the energy infrastructure market. By following this course, we will continue to build a diversified platform for growth and generate greater value for our shareholders once normal commerce resumes and our nation's economy recovers."

For earnings history and earnings-related data on Orbital Energy Group, Inc. (OEG) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Optimum Communications gets NYSE non-compliance notice over stock price
• Movano (MOVE) Misses Q2 EPS by 195c