Orbital Energy Group, Inc. (OEG) Misses Q4 EPS by 9c, Revenues Miss

Orbital Energy Group, Inc. (NASDAQ: OEG) reported Q4 EPS of ($0.26), $0.09 worse than the analyst estimate of ($0.17). Revenue for the quarter came in at $11.3 million versus the consensus estimate of $17.82 million.

Financial and Operating Highlights:

• Reported total revenues of $11.3 million for the fourth quarter of 2020 and $38.4 million for the full year 2020, compared to $5.7 million and $23.5 million for the fourth quarter and full year 2019, respectively;
• Gross profit was $3.1 million for the fourth quarter of 2020 and $7.1 million for the full year 2020, compared to $1.5 million for the fourth quarter of 2019 and $5.8 million for the full year 2019, the improvement attributable to increased revenues; this improvement is expected to continue throughout 2021;
• Gross margin was 27.7% for the fourth quarter of 2020 and 18.5% for the full year 2020, compared to 26.0% and 24.7% for the fourth quarter and full year 2019, respectively;
• Operating loss was $8.2 million for the fourth quarter of 2020 and $28.8 million for the full year 2020, compared to $4.9 million and $16.0 million for the fourth quarter and full year 2019, respectively, mainly due to higher SG&A expenses associated with Orbital Solar and Orbital Power Services;
• Held Cash and cash equivalents of $3.0 million and Restricted cash of $1.5 million as of December 31, 2020;
• Total backlog was $40.4 million compared to $9.6 million at December 31, 2019, reflecting backlog growth at both Orbital Solar and Orbital Power Services;
• Signed Master Services Agreement with a midwestern investor-owned utility, expected to generate significant recurring monthly revenues and increase the T&D division's revenues by approximately 30% on an annualized basis;
• Subsequent to year end, launched new subsidiary, Eclipse Foundation Group, a drilled shaft foundation construction company that specializes in providing services to the electric transmission and substation, industrial, communication towers and disaster restoration market sectors, with expertise in water, marsh and rock terrains;
• During January 2021, the Company raised $45 million in equity capital, before costs and fees, to accelerate growth both organically and through strategic acquisitions;
• The Orbital Solar Services subsidiary was named the engineering, procurement, and construction ("EPC") company "of choice" for the newly-formed Black Sunrise Half Century Fund, which over the next three years expects to build over 1 gigawatt of solar power with a beginning investment of $725 million.

Commentary

"During 2020, we continued to successfully execute on our strategy to transform Orbital Energy Group into a diversified energy infrastructure services provider," said Jim O'Neil, vice chairman and CEO of Orbital Energy Group. "This includes the formation of our Orbital Power, Orbital Solar and Eclipse Foundation Services businesses, as well as expanding our gas products and integration services into renewable gas opportunities. Despite last year's COVID related challenges, we made progress in advancing our infrastructure strategy in 2020 and believe we are now well positioned for robust, long-term growth throughout our various business segments."

Mr. O'Neil added, "Our electric power transmission and distribution, utility scale solar, and foundation services are well positioned to take advantage of positive multi-year industry trends. Aging electric power infrastructure, the shift from fossil fuel to renewable generation, and advancing grid technologies are all factors supporting OEG's growth opportunities."

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

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