Orbital Energy Group reports second quarter 2021 financial results

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;
  • The 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 on June 30, 2021, up from $40.4 million on 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
  • After quarter-end, the company announced the synergistic tuck-in acquisition of IMMCO, Inc., a privately-owned full-service telecom engineering and network design company.

Author: KS | Source: Orbital Energy Group