Friday, December 18, 2020

Orion Group Holdings (ORN)
Two Marine Awards for $20 million. Program Sales Initiated

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two Marine projects in Florida awarded for total of $21 million. ORN will demo and remove the existing 40th Avenue NE Bridge in St. Petersburg and replace it with a new dual concrete carriageway. The $10.7 million of work starts in 1Q2021 and runs~10 months. The second project is supporting Brantley Construction Services, LLC, on the replacement of a 550-foot wharf quay wall with a new steel sheet pile bulkhead for NAVFAC Southeast at Naval Station Mayport. The ~$10 million of work starts now and should be done by yearend 2021.


Asset sales on the horizon with potential net proceeds in the $65-$70 million range.  The sale of a ringer barge generated $4.0 million in 3Q2020 and the sale of real estate could raise ~$5.0 million in 4Q2020. Two larger properties are on the block; the Tampa yard could be sold for ~$20.0 million in 1Q2021, and the Houston Ship Channel one might at least a year out …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, December 10, 2020

Great Lakes Dredge & Dock (GLDD)
Can’t Win Them All – Houston Move Creates Some Turnover

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Bids on large project opened yesterday and a competitor bid much lower.  Bids were opened at 2pm CST yesterday by CPRA on the Barataria Basin Ridge and Marsh Creation — Spanish Pass Increment (BA 0203). Weeks Marine submitted the low apparent base bid of $80.8 million, or $42.5 million below GLDD. The work should move forward even though the low base bid was $16.0 million (~25%) above the designer’s estimate. A lost bid is certainly a lost opportunity, but the silver linings are bidding discipline remains intact and some of Weeks’ dredging equipment should be tied up for two years. Moreover, the dredging market outlook remains robust and other projects, including Lake Borgne, are moving forward.


Offshore wind dedicated investment expands fleet renewal program into the $200-$220 million range.  In our view, the most likely fleet renewal program includes the first hopper dredge and the rock dumping barge, while the option on the second hopper dredge new build for $93 million adds optionality. Late last week, GLDD moved forward on long-standing plans to enter the offshore wind construction …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Monday, December 07, 2020

Great Lakes Dredge & Dock (GLDD)
Offshore Wind Plans Drive Expansion of Fleet Renewal

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Fleet renewal program likely to include offshore wind dedicated equipment. Design/Engineering work started on rock dumper new build and FID on the $100-$120 million investment is expected by the end of 3Q2021. Late last week, GLDD announced that it is moving forward with the design and development of the first Jones Act inclined fallpipe vessel (rock dumper) for subsea rock installation to serve the developing US offshore wind market. Ulstein Design and Solution is the firm tasked with the design engineering of the state-of-the-art vessel, and delivery is slated in 1Q2024.


Rock dumper barge adds to the existing hopper dredge new build and expands total investment program into the $200-$220 million range.  Option on second hopper dredge new build for $93 million adds optionality …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, November 19, 2020

Great Lakes Dredge & Dock (GLDD)

Largest Award Ever On Horizon

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Largest project ever moving forward in Brownsville. Another big plus for backlog and intermediate term visibility. NextDecade (NEXT) has selected GLDD to improve the Brownsville Ship Channel in conjunction with the Rio Grande LNG project. The contract is the largest project ever for GLDD as it exceeds the Charleston II contract of $213 million. The contract likely exceeds $225 million, and the award will be added to backlog once the Notice to Proceed is received. At this point, work seems likely to start in 2H2021 with a completion timeline in the two year range.


First phase of Port of Brownsville improvements.  The Dredge and Disposal Construction Agreement (DDCA), which will govern the project, complements the engineering, procurement, and construction (EPC) contract awarded to Bechtel Oil, Gas & Chemicals in May 2019. Looking at the NEXT investor deck, the contract appears to include deepening and widening the Brownsville Ship Channel from RIO Grande LNG …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, November 10, 2020

Orion Group Holdings (ORN)

New Concrete awards positive – Asset sales look likely

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Three concrete awards of $52 million reflect a positive signal from 3Q2020 low bids pending award. The contracts for concrete and paving services on the construction of large distribution centers; two near Houston and one in the Dallas-Fort Worth (DFW) area. The Houston projects total $38 million, or one for $21 million and another for $17 million, and the DFW project totals $14 million. Work will begin shortly with completion in 1H2021.


Industry fundamentals remain positive despite state level concerns about COVID-19.  3Q2020 backlog dropped to $429 million, but total low bids pending award increased versus 2Q2020. Including total low bids pending award of $108 million, potential backlog approximates $537 million. Including low bids pending award of $49 million in Marine and $59 million in Concrete, potential backlog equals $291 …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, November 05, 2020

Great Lakes Dredge & Dock (GLDD)

Another Good Quarter – Execution Remains Solid

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q2020 operating results were in line expectations including loss of hire benefit. Total revenue of $175.8 million was close to our estimate of $176.5 million and profitability was in line with expectations. Adjusted EBITDA of $32.2 million was in line with expectations of $32.1 million due to a loss of hire benefit of $1.7 million, and EBITDA margin of 18.3% was in line with expectations of 18.2%.


Moving 2020 EBITDA estimate to $155.2 million.  Positive dredging market outlook intact, but costs moving slightly higher. Introducing 2021 EBITDA estimate of $150.4 million. Bar is high after strong outperformance this year …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Monday, November 02, 2020

Orion Group Holdings (ORN)

Introducing 2021 EBITDA Estimate and Raising Price Target

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

We were looking for color on the 3Q2020 call in several key areas and there were some noteworthy items discussed. Please see page two for details.


4Q2020 EBITDA guidance of $10-$12 million in line with expectations.  Fine-tuning 2020 EBITDA estimate of $52.3 million and introducing 2021 EBITDA estimate of $52.3 million. Flat outlook, but profitability remains strong. Looking for free operating cash flow of $30.5 million ($1.01/share) in 2020 and $15.3 million ($0.50/share) in 2021. Positive free cash flow is driving leverage down, and …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, October 29, 2020

Orion Group Holdings (ORN)

Another Strong Quarter – Concrete Pours It In

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Another strong quarter driven by solid execution, especially in Concrete. 3Q2020 gross profit of $22.5 million and adjusted EBITDA of $17.0 million easily beat our estimates of $17.7 million and $10.2 million, respectively. Revenue was 10% higher than expected, and gross margin of 11.9% and EBITDA margin of 9.0% were ~220-310 basis points better than our estimates. Concrete profitability was strong for the second consecutive quarter and Marine profitability remained elevated due to strong execution and solid equipment utilization.


Today’s 3Q2020 call at 10am EST should be well received.  Call number is 201-493-6739 and code is Orion Group Holdings. We will be looking for color on the call in several key areas: Corpus Christi accident update, including liability insurance coverage; extent of emergency work on Pier 58 in Seattle; tone of 4Q2020 bidding activity in both sectors; low bids pending award and backlog outlook given …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Thursday, October 29, 2020

ACCO Brands Corporation (ACCO)

Post Call Commentary and Updated Models

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Ongoing COVID Impacts. COVID-19 continued to make its presence felt in ACCO’s third quarter. Continuing work from home arrangements, high unemployment, and low business confidence negatively impacted the commercial side of the business in many geographies, while delayed and/or remote learning impacted the back-to-school season. In fact, management estimated that some 70% of all U.S. students were remote learning and back-to-school sales declined approximately 5% year-over-year in the second and third quarters combined.


But New Products and Categories Continue to Shine.  Kensington saw its revenues more than double year-over-year due to a large computer accessories contract. Demand for TruSens air purifiers continues to be strong. In EMEA, shredders, air purifiers, DIY tools, and computer accessories all showed growth …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Wednesday, October 28, 2020

ACCO Brands Corporation (ACCO)

A Third Quarter Beat

ACCO Brands Corporation designs, manufactures, sources, markets, and sells office products, academic supplies, and calendar products primarily in the United States, Canada, Northern Europe, Brazil, Australia, and Mexico. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company offers office products, such as stapling, binding and laminating equipment, and related consumable supplies, as well as shredders and whiteboards; and academic products, including notebooks, folders, decorative calendars, and stationery products. It also provides private label products, as well as business machine maintenance and repair services. The company offers its business, academic, and calendar product lines under the Artline, AT-A-GLANCE, Derwent, Esselte, Five Star, GBC, Hilroy, Leitz, Marbig, Mead, NOBO, Quartet, Rapid, Rexel, Swingline, Tilibra, Wilson Jones, and other brand names. In addition, it designs, sources, distributes, markets, and sells accessories for laptop and desktop computers, and tablets comprising security products; input devices, such as presenters, mice, and trackballs; ergonomic aids, including foot and wrist rests; docking stations; and other personal computers and tablet accessories under the Kensington, Microsaver, and ClickSafe brand names. The company sells its products to consumers and commercial end-users primarily through resellers, including traditional office supply resellers, wholesalers, mass merchandisers, and retailers, as well as directly to consumers through on-line and direct mail. ACCO Brands Corporation is headquartered in Lake Zurich, Illinois.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q20 Results. Revenue of $444.1 million declined 12.2% y-o-y with comp sales off 12.3%. GAAP net income totaled $18.8 million, or $0.20 per share, compared to $28.0 million, or $0.28, last year. Adjusted net income was $18.1 million, or $0.19 per share, versus $31.3 million, or $0.32 per share, in 3Q19. Quarterly results were negatively impacted by the COVID crisis, which reduced revenue and operating leverage. Sales were better than expected and profit was at the high end of guidance. We had forecast revenue at $405 million and adjusted net income of $0.13, while consensus was $410 million and $0.15, respectively.


Cost Reductions.  Once again, savings from cost reductions drove profits. Cost reduction actions reduced 3Q expenses by some $20 million, above the $11 million previously anticipated, and year-to-date cost savings were $63 million as management swiftly adjusted to the COVID operating environment. In the fourth quarter, the company expects to achieve an additional $15 million of cost savings …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Tuesday, October 27, 2020

Orion Group Holdings (ORN)

3Q2020 Preview – Progress Looks On Track

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Upcoming 3Q2020 operating results and call should be well received. ORN reports tomorrow (10/28) AMC and will host a call on Thursday (10/29) at 10am EST. Call number is 201-493-6739 and code is Orion Group Holdings.


Work on existing projects goes on with limited disruptions from COVID-19 and weather.  We have been pleasantly surprised that work in Seattle (Terminal 5 upgrade and a bridge replacement) continued, and there was a negligible impact from weather in 3Q2020. We are looking for operating results to remain solid, albeit a sequential moderation is expected after stronger than expected 2Q2020 operating …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.