• Fourth Quarter Adjusted EBITDA Growth of 6%, Led by Strong Construction Products Performance
• Full Year Adjusted EBITDA Growth of 18% Demonstrated the Resilience of the Company's Infrastructure Businesses
• Full Year Free Cash Flow of $178 Million, Second Consecutive Year of Conversion Greater than 100% of Net Income
• Continued Progress on Strategic Positioning with 2020 Acquisitions in Aggregates and Engineered Structures

DALLAS--(BUSINESS WIRE)--Arcosa, Inc. (NYSE: ACA) (“Arcosa,” the “Company,” “We,” or “Our”), a provider of infrastructure-related products and solutions, today announced results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter Highlights (All comparisons are versus the prior-year quarter unless noted otherwise)

• Revenues increased 3% to $458.9 million
• Net income of $10.5 million and Adjusted Net Income of $16.5 million
• Diluted EPS of $0.21 and Adjusted Diluted EPS of $0.33
• Adjusted EBITDA increased 6% to $56.4 million
• Operating cash flow of $33.2 million and free cash flow of $8.0 million
• Net income reduced by $4.5 million pre-tax, non-cash impairment on a barge manufacturing asset acquisition from 2018

Full Year Highlights (All comparisons are versus the prior year unless noted otherwise)

• Revenues increased 11% to $1,935.6 million
• Net income of $106.6 million and Adjusted Net Income of $119.8 million
• Diluted EPS of $2.18 and Adjusted Diluted EPS of $2.45, an increase of 4% year-over-year
• Adjusted EBITDA increased 18% to $283.7 million
• Operating cash flow of $259.9 million; free cash flow of $177.8 million, 167% of net income
• Net debt to Adjusted EBITDA of 0.5X for the trailing twelve months and total liquidity of $467.2 million, including cash of $95.8 million

Commenting on 2020 performance, Antonio Carrillo, President and Chief Executive Officer, noted, “During one of the most challenging business periods in recent history, our 2020 results demonstrate the resilience of our company and the strength of our culture. Our teams did an outstanding job prioritizing the health and safety of our employees and communities, while continuing to provide critical infrastructure products for our customers.

“We achieved 18% Adjusted EBITDA growth, generated $178 million of free cash flow, and maintained a healthy balance sheet in a challenging macroeconomic environment.

“Our Construction Products segment was a key driver of our strong 2020 financial results. The segment reported 35% revenue growth and 50% Adjusted EBITDA growth, driven by the Cherry acquisition and improved margins across the segment. Our outlook for these businesses remains favorable, and we expect to continue to deploy capital to strengthen our current market positions and expand our geographic footprint.

“In 2020, we also strategically expanded our product lines in Engineered Structures to include telecom, traffic, and concrete structures. We are integrating these acquisitions and expect to replicate these platforms in other regions.

“I am very pleased with the progress we have made in positioning Arcosa around more stable infrastructure products since we became an independent company in 2018. Our portfolio is less cyclical than it was three years ago, and we are well-positioned to maintain our momentum even when our Transportation Products businesses are in downturns. Although our guidance range is below 2020’s performance due to the COVID-related downturn in our barge business, the outlook for our key growth businesses in Construction Products and Engineered Structures remains positive.”

Carrillo concluded, “I want to thank all our employees for their dedication under difficult circumstances. The way we have executed in the last year makes me proud to lead such a high performing and resilient company. I am excited about our prospects for the future, and the organic and acquisition growth opportunities we have ahead of us.”

2021 Outlook and Guidance

Based on our current portfolio of businesses, the Company expects full year 2021 revenues of $1.78 billion to $1.90 billion, and Adjusted EBITDA of $250 million to $270 million.

Looking ahead into 2021, we are optimistic on the underlying health of most of our markets, and our key growth businesses in Construction Products and Engineered Structures are positioned well for organic and acquisition growth.

• Construction activity remains robust, particularly in key states like Texas, and could see additional upside from new state and federal infrastructure spending. We continue to see healthy activity in infrastructure and residential markets, while non-residential markets have performed better than expected, led by increased demand for distribution and data centers.
• Our Engineered Structures product lines continue to experience healthy demand led by increased spending on electrical transmission, telecom, and traffic infrastructure, although we expect lower production for wind towers in 2021.

The largest year-over-year challenge in 2021 will be in our Transportation Products segment, as the barge business continues to be impacted by the effects of COVID-19. As a result, we expect the segment to generate Adjusted EBITDA in the $35-40 million range in 2021, down from $78 million in 2020. We remain confident in the medium and long-term fundamentals of these businesses once short-term macroeconomic conditions improve.

• Dry barge demand is fundamentally strong, and a recovering agricultural economy drove our barge business to a 1.0 book-to-bill in Q4 2020. However, dry barge orders have recently been deferred by the rapid acceleration in steel prices since December 2020, driven by steel capacity that was idled during COVID.
• Liquid barge demand remains depressed by reduced demand for refined products and petrochemicals, which began declining during the COVID pandemic and has not recovered to pre-pandemic levels. We are optimistic about a recovery, but that is unlikely to occur in time for 2021 production.
• Demand in rail components has stabilized, but 2021 is expected to be a lower year for new railcar deliveries in North America than 2020. Industry analysts expect a recovery in new railcar deliveries in the second half of 2021 and into 2022.

The February 2021 winter storm in Texas and the broader Southern United States will impact our Q1 performance, as we lost more than one week of production across a significant part of our operating footprint. As of the date of this release, we have restored operations in most of our facilities but may experience continuing impacts in our supply chain, particularly for steel mill production that was impacted by the storm.

We expect Corporate expenses of approximately $13-14 million per quarter in 2021, excluding potential non-recurring expenses. Additionally, we expect 2021 capital expenditures of $100-110 million, consisting of maintenance capital of approximately $80 million and growth capital of $20-30 million.

Fourth Quarter 2020 Results and Commentary

Construction Products

• Revenues increased 46% to $149.1 million in the fourth quarter, led by higher volumes in our legacy natural aggregates business in North and Central Texas, as well as the Cherry and Strata acquisitions.
• Fourth quarter Adjusted Segment EBITDA increased 73% to $31.0 million, representing a 20.8% margin compared to a 17.5% margin a year ago. The 330 basis-point increase in margin was primarily due to volume and operating improvements in our legacy business, the contributions of Cherry and Strata, and lower fuel costs.
• The Cherry acquisition continued to perform well, driven by healthy demand across natural and recycled aggregates in the Houston area.
• In our natural aggregates business, we experienced strong volumes in Texas from healthy residential and highway demand as well as newly acquired locations. We experienced continued weakness from plants serving oil and gas markets.
• Revenues were also higher in our specialty materials businesses as demand conditions continued to improve from mid-2020 COVID-19 related lows.
• Our trench shoring business stabilized during the fourth quarter, with roughly flat profitability compared to the prior year despite lower revenues.

Engineered Structures * The Company has renamed the segment formerly called Energy Equipment Group to "Engineered Structures" to more accurately reflect the product portfolio within the segment

• Fourth quarter revenues were down 2% year-over-year to $209.1 million, driven primarily by lower volumes in storage tanks and wind towers. Volumes were higher for utility structures and supported by the addition of the traffic and telecom structures product lines acquired during 2020.
• Adjusted Segment EBITDA decreased 16% to $23.3 million, representing an 11.1% margin compared to a 13.0% margin a year ago. The year-over-year decrease in EBITDA and margin was primarily due to the temporary idling of a wind tower facility for retooling to make larger towers, operational challenges in our utility structures business related to COVID-19, and the ramp-up of a new utility structures facility.
• Inquiry levels for utility structures, wind towers, and the newly acquired product lines remained healthy, driven by robust spending in transmission, renewable energy, telecom, and traffic markets. We are encouraged by recent inquiry activity in wind towers that would add to our backlog for 2021 and 2022 production.
• The combined backlog for utility, wind, and related structures decreased to $334.0 million from $429.3 million at the end of the third quarter.

Transportation Products

• Fourth quarter revenues were $100.6 million, down 24% year-over-year. Barge revenues decreased 18% driven by lower tank barge deliveries. Rail Components revenues declined 44% year-over-year, as the new railcar market remained depressed.
• We incurred a non-cash impairment charge of $4.5 million related to unusable non-operating assets from a barge manufacturing asset acquisition in 2018. This impairment was added back to Adjusted EBITDA.
• Adjusted Segment EBITDA decreased 17% year-over-year to $15.8 million, representing a 15.7% margin compared to a 14.4% margin a year ago. Segment margins increased due to improved profitability in the barge backlog and strong operational performance that more than offset weakness in the components business.
• The barge business received orders of approximately $81 million in the quarter, for a book-to-bill of 1.0. The bulk of these orders were for dry barges. The barge backlog was $175.5 million, compared to $177.5 million at the end of the third quarter.
• We have reduced our capacity in all three barge operating plants to align with lower production levels in 2021, while remaining flexible to allow time for fundamentals to recover. We are evaluating additional cost reduction alternatives and if demand does not improve in the near term, we will take additional actions to reduce our cost structure.
• In our rail components business, we have also reduced our capacity and lowered our cost structure until market conditions improve.

Corporate

• Corporate expenses increased $4.0 million to $16.5 million in the fourth quarter, primarily due to $1.6 million of acquisition-related transaction and integration costs from the Company's 2020 acquisitions.

Cash Flow and Liquidity

• During the fourth quarter, operating cash flow was $33.2 million and free cash flow was $8.0 million.
• For the full year, operating cash flow was $259.9 million and free cash flow was $177.8 million, or approximately 167% of net income.
• We invested $25.2 million in capital expenditures during the quarter, for a full year total of $82.1 million.
• We also invested $94.0 million in two complementary acquisitions during the quarter, including the $87.0 million acquisition of Strata and the $7.0 million acquisition of an additional traffic structures business with operations in Florida.
• We returned approximately $6.5 million to shareholders during the fourth quarter, through $2.5 million in dividends and $4.0 million in share repurchases. In December 2020 our board authorized a new $50 million share repurchase program effective January 1, 2021 through December 31, 2022.
• We ended the quarter with total liquidity of $467.2 million, including $95.8 million of cash, and net debt to Adjusted EBITDA of 0.5X for the trailing twelve months.

Non-GAAP Financial Information

This earnings release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the accompanying tables to this earnings release.

Conference Call Information

A conference call is scheduled for 8:30 a.m. Eastern Time on February 25, 2021 to discuss fourth quarter and full year ended December 31, 2020 results. To listen to the conference call webcast, please visit the Investor Relations section of Arcosa’s website at https://ir.arcosa.com. A slide presentation for this conference call will be posted on the Company’s website in advance of the call at https://ir.arcosa.com. The audio conference call number is 866-342-8588 for domestic callers and 203-518-9865 for international callers. The conference ID is ARCOSA and the passcode is 272672. An audio playback will be available through 11:59 p.m. Eastern Time on March 11, 2021, by dialing 800-756-8809 for domestic callers and 402-220-7214 for international callers. A replay of the webcast will be available for one year on Arcosa’s website at https://ir.arcosa.com/news-events/events-presentations.

About Arcosa

Arcosa, Inc. (NYSE:ACA), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets. Arcosa reports its financial results in three principal business segments: the Construction Products segment, the Engineered Structures segment, and the Transportation Products segment. For more information, visit www.arcosa.com.

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” “strategy,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding the impact of the COVID-19 pandemic on Arcosa’s customer demand for Arcosa’s products and services, Arcosa’s supply chain, Arcosa’s employees ability to work because of COVID-19 related illness, the health and safety of our employees, the effect of governmental regulations imposed in response to the COVID-19 pandemic; assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa’s spin-off from Trinity; tax treatment of the spin-off; failure to successfully integrate Strata, or failure to achieve the expected benefits of the acquisition; market conditions and customer demand for Arcosa’s business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; ability to improve margins; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see "Risk Factors" and the "Forward-Looking Statements" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Arcosa's Form 10-K for the year-ended December 31, 2020 to be filed on or about February 25, 2021, and as may be revised and updated by Arcosa's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

INVESTOR CONTACTS
Scott C. Beasley
Chief Financial Officer

Gail M. Peck
SVP, Finance & Treasurer

T 972.942.6500
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David Gold
ADVISIRY Partners

T 212.661.2220
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MEDIA CONTACT
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Resilient Labor Force Keeps Cargo Moving

HOUSTON--(BUSINESS WIRE)--The Port Commission of the Port of Houston Authority met virtually in regular session on Tuesday, following the unprecedented winter storm that hit Texas last week. Chairman Ric Campo opened the meeting by expressing his concern and gratitude for the work of employees and partners impacted by this historic weather event and its aftermath.

Many Texans, including Port Houston employees and partners, suffered from the loss of electricity, heat, and water and damage to their homes during the record-breaking sub-freezing temperatures, as Port Houston suspended operations temporarily at its public facilities.

“Throughout the week, our main priority was the safety of our people and keeping everyone out of harm’s way,” Chairman Campo said. “Thank you to employees who continued to carry out their duties under these challenging conditions.” Multiple teams staffed port facilities during the event to help ensure safety, security, and the protection of infrastructure.

The event impacted several public terminal facilities, which experienced a loss of power, water, and other systems. “Following the suspension of operations, our team members and partners worked around the clock to support the reopening of Port Houston,” Chairman Campo said. Subsequently, the customer service hours at the container facilities were extended to help alleviate the backlog and maximize cargo flow.

“Much of what comes across our docks supplies millions of people in our region with food and other essential goods, making our role especially critical in times of crisis,” Chairman Campo said. “We reopened our terminals to begin moving cargo and support our community as recovery moves forward.”

Roughly 80% of Port Houston employees experienced impacts from the winter storm, according to an internal survey. “Looking ahead, we are committed to supporting our people and their wellbeing as they also work to recover,” Chairman Campo stressed.

Port Houston staff has activated its Employee Catastrophic Assistance Fund to support employees who experienced harm following the storm. This program provides grants of up to $5,000 for employees in need and through employee donation of leave time hours.

“We’re pleased to coordinate that effort and see port employees supporting one another in this time of need, just as the port supports our region,” Chairman Campo said. “Together, we will get back to normal as soon as possible.”

The chairman also provided an update on the Houston Ship Channel Expansion program, Project 11. The project is transitioning from planning and design to its first physically tangible action, with work beginning soon to convert a Port Authority site to a dredge material placement area. Proposals are due in March, with a contract expected to be awarded in April.

During the meeting, Port Houston also announced its 46th consecutive Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association for its 2019 Comprehensive Annual Financial Report (CAFR). This certificate is the highest form of recognition for governmental accounting and financial reporting.

The next regular Port Commission meeting is scheduled for March 23.

About Port Houston

For more than 100 years, Port Houston has owned and operated the public wharves and terminals along the Houston Ship Channel, including the area’s largest breakbulk facility and two of the most efficient and fastest-growing container terminals in the country. Port Houston is the advocate and a strategic leader for the Channel. The Houston Ship Channel complex and its more than 200 public and private terminals, collectively known as the Port of Houston, is the nation’s largest port for waterborne tonnage and an essential economic engine for the Houston region, the state of Texas, and the U.S. The Port of Houston supports the creation of nearly 1.35 million jobs in Texas and 3.2 million jobs nationwide, and economic activity totaling $339 billion in Texas – 20.6 percent of Texas’ total gross domestic product (GDP) – and $801.9 billion in economic impact across the nation. For more information, visit the website at www.PortHouston.com.

Lisa Ashley, Director, Media Relations
Office: 713-670-2644; Mobile: 832-247-8179
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Reports results at the top of the guidance range
Over 20,500 water and wastewater customer connections added
Invests a record amount in infrastructure improvements

BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities Inc. (NYSE: WTRG), today reported results for the fourth quarter and year ended Dec. 31, 2020.

“2020 marks another remarkable year in our company’s history. We changed our name, acquired Peoples, reported another year of operational excellence and strong growth and invested a record amount in infrastructure,” said Essential Chairman and Chief Executive Officer Christopher Franklin. “These accomplishments during a year filled with so many challenges are what allowed us to remain strong and dedicated to our mission of providing essential natural resources to our customers.”

“As we look to 2021, I am confident that we have positioned ourselves to play a critical role in solving our country’s infrastructure challenges while recognizing our responsibility to be an industry leader in protecting our environment,” said Franklin.

Full-year 2020 Operating Results

Essential reported total operating revenues of $1.46 billion in 2020, an increase of 64.4% compared to $889.7 million in the prior year. The acquisition of Peoples in the first quarter contributed $520.9 million of this revenue growth, while the remainder was due to rate and surcharge increases, increased volume and growth in the regulated water segment. Water usage was up 0.8% year over year due to the work-from-home orders and favorable weather. Adjusted revenues for 2020, which exclude water and gas rate credits issued one time to utility customers, were $1.49 billion (non-GAAP).

Operations and maintenance expenses were $528.6 million for 2020 compared to $333.1 million in the prior year. The increase in operations and maintenance expenses was primarily a result of operations and maintenance expenses of $199.9 million from the acquisition of Peoples.

Essential reported adjusted net income for the full year 2020 of $403.1 million (non-GAAP), or $1.58 per share (non-GAAP) compared to $1.47 per share (non-GAAP) in 2019, an increase of 7.5% from the prior year. Adjusted income and adjusted income per share (both non-GAAP financial measures) for 2020 exclude the impact of both the Peoples transaction-related one-time rate credits issued to utility customers of $23.0 million and Peoples transaction-related expenses, and include a normalized pro forma adjustment for the Peoples operating results for the period Jan. 1, 2020 to March 15, 2020 to provide the basis for a 2020 full-year run rate of operating results. Please refer to the reconciliation of GAAP to non-GAAP financial measures later in this press release for additional information on Essential’s use of non-GAAP financial measures as a supplement to its GAAP results.

Essential’s net income of $284.8 million (GAAP), or $1.12 per share (GAAP), compared to $224.5 million, or $1.04 per share in 2019, an increase in net income of 26.9% from the prior year. Results for the full year 2020 include the operating results of Peoples, representing the company’s regulated natural gas segment, and results for the full year 2019 include Peoples transaction-related items.

Fourth Quarter 2020 Operating Results

Revenues increased to $474.0 million in the fourth quarter compared to $226.0 million in the same period of 2019, an increase of 109.7%. The Peoples acquisition contributed $240.6 million of this revenue growth, while the remainder was due to increased volume, growth and rate and surcharge increases in the regulated water segment. Adjusted revenues for the fourth quarter of 2020, which exclude gas rate credits issued one-time to Pennsylvania utility customers, were $492.9 million (non-GAAP).

Operations and maintenance expenses increased to $157.2 million for the fourth quarter of 2020 compared to $85.3 million in the fourth quarter of 2019. The increase in operations and maintenance expenses was primarily a result of operations and maintenance expenses of $72.6 million from the acquisition of Peoples.

For the fourth quarter 2020, Essential reported net income of $102.7 million (GAAP), or $0.40 per share (GAAP), compared to $64.2 million, or $0.28 per share, for the fourth quarter 2019. Results for the fourth quarter of 2020 include the operating results of Peoples, which largely comprises the company’s regulated natural gas segment, and results for the fourth quarter of 2019 include Peoples transaction-related items. Adjusting for transaction-related gas rate credits issued to utility customers, adjusted net income in the fourth quarter of 2020 was $116.2 million (non-GAAP), or $0.46 per share (non-GAAP). Please refer to the reconciliation of GAAP to non-GAAP financial measures later in this press release for additional information on Essential’s use of non-GAAP financial measures as a supplement to its GAAP results.

Dividend

On Jan. 27, 2021, Essential’s board of directors declared a quarterly cash dividend of $0.2507 per share of common stock. This dividend will be payable on March 1, 2021 to shareholders of record on Feb. 12, 2021. The company has paid a consecutive quarterly cash dividend for more than 76 years.

Water Utility Acquisition Growth

In 2020, Essential invested approximately $62.9 million to acquire six water and wastewater systems. These acquisitions added approximately 12,000 new customer equivalents to the company’s footprint. Coupled with organic growth, the company increased its water and wastewater customer base by 2.0% with over 20,500 new customer connections. Essential’s continued acquisition growth allows the company to provide safe and reliable water and wastewater service to an even larger customer base.

The company currently has six signed purchase agreements for additional water and wastewater systems that are expected to serve approximately 227,000 equivalent retail customers or equivalent dwelling units and add approximately $438 million in rate base. This includes the recently announced agreements to acquire East Whiteland Township’s wastewater system for $54.9 million and Willistown Township’s wastewater system for $17.5 million, together serving approximately 10,475 customer equivalents in Pennsylvania. Also included is the company’s 2019 agreement to acquire the Delaware County Regional Water Quality Control Authority (DELCORA) for $276.5 million. DELCORA, a Pennsylvania sewer authority, serves approximately 198,000 equivalent dwelling units in the Philadelphia suburbs. According to the statutory timeline, the company expects a PUC decision on the DELCORA acquisition in March 2021.

The pipeline of potential water and wastewater municipal acquisitions the company is actively pursuing represents approximately 375,000 total customers.

Capital Expenditures

In 2020, Essential invested approximately $900 million to improve its regulated water and natural gas infrastructure systems and to enhance its customer service across its operations. This includes $53.5 million that was invested by Peoples, pre-closing, during the period from Jan. 1, 2020 to March 15, 2020. The company expects to invest approximately $550 million in 2021 to replace and expand its water and wastewater utility infrastructure and $450 million in 2021 to replace and upgrade its natural gas utility infrastructure, leading to significant reductions in methane emissions that occur in aged gas pipes. In total, infrastructure investments of approximately $3 billion are expected through 2023 to improve water and natural gas systems and better serve our customers through improved information technology. The capital investments made to rehabilitate and expand the infrastructure of the communities Essential serves are critical to its mission of safely and reliably delivering Earth’s most essential resources.

Environmental, Social and Governance

As announced in January, Essential is committed to substantially reducing Scope 1 and 2 greenhouse gas emissions and by 2035, the company plans to reduce its emissions by 60% from its 2019 baseline. This will be achieved by extensive gas pipeline replacement, renewable energy purchasing, accelerated methane leak detection and repair, and various other currently planned initiatives that are highly feasible with proven technology. In a further commitment to ESG, the company’s 2021 Proxy Statement will include compensation metrics that include a multiyear plan to increase the amount of diverse supplier spend to 15% and a multiyear plan to achieve 17% employees of color.

Financing

At year-end 2020, Essential’s weighted average cost of fixed-rate long-term debt was 3.73%, and the company had $749 million available on its credit lines.

Rate Activity

In 2020, the regulated water segment received rate awards or infrastructure surcharges in Illinois, Indiana, North Carolina, Ohio, Virginia and Pennsylvania totaling an estimated increase in annualized revenues of $21.0 million. Additionally, the regulated natural gas segment has received infrastructure surcharges in Kentucky and Pennsylvania totaling an estimated increase to annualized revenues of $1.0 million.

To date in 2021, the company’s regulated water segment received rate awards in New Jersey, North Carolina, Ohio and Pennsylvania of $8.5 million. The company currently has proceedings pending in Virginia and Indiana for its regulated water segment, which would add an estimated $1.8 million in incremental revenue.

2021 Essential Guidance

Essential continues to monitor the effects of the COVID-19 pandemic on its customers, employees and the business and will update guidance impacts from the pandemic in the future if needed. The following is the company’s 2021 full-year guidance:

• Net income per diluted common share of $1.64 to $1.69
• Earnings per share growth CAGR of 5 to 7% for 2020 through 2023
• Regulated water segment infrastructure investments of approximately $550 million in 2021
• Regulated natural gas segment infrastructure investments of approximately $450 million in 2021
• Infrastructure investments of approximately $3 billion through 2023 to rehabilitate and strengthen water, wastewater and natural gas systems
• Regulated water segment rate base compound annual growth rate of 6 to 7% through 2023
• Regulated natural gas segment rate base compound annual growth rate of 8 to 10% through 2023
• Average annual regulated water segment customer (or equivalent dwelling units) growth of between 2 and 3% from acquisitions and organic customer growth
• Gas customer count stable for 2021
• Reduction of Scope 1 and Scope 2 greenhouse gas emissions by 60% by 2035
• Multiyear plan to increase diverse supplier spend to 15%
• Multiyear plan to achieve 17% employees of color

Essential Utilities does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission.

Earnings Call Information

Date: Feb. 25, 2021
Time: 11 a.m. EST (please dial in by 10:45 a.m.)
Webcast and slide presentation link: https://www.essential.co/events-and-presentations/events-calendar
Replay Dial-in #: 888.203.1112 (U.S.) & +1 719.457.0820 (International)
Confirmation code: 7428652

The company’s conference call with financial analysts will take place Thursday, Feb. 25, 2021 at 11 a.m. Eastern Standard Time. The call and presentation will be webcast live so that interested parties may listen over the internet by logging on to Essential.co and following the link for Investors. The conference call will be archived in the Investor Relations section of the company’s website for 90 days following the call. Additionally, the call will be recorded and made available for replay at 2 p.m. on Feb. 25, 2021 for 10 business days following the call. To access the audio replay in the U.S., dial 888-203-1112 (pass code 7428652). International callers can dial +1 719-457-0820 (pass code 7428652).

About Essential

Essential is one of the largest publicly traded water, wastewater and natural gas providers in the U.S., serving approximately 5 million people across 10 states under the Aqua and Peoples brands. Essential is committed to excellence in proactive infrastructure investment, regulatory expertise, operational efficiency and environmental stewardship. The company recognizes the importance water and natural gas play in everyday life and is proud to deliver safe, reliable services that contribute to the quality of life in the communities it serves. For more information, visit http://www.essential.co.

Forward-looking statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others: the company’s role in the United States’ infrastructure investments; its ability to be an industry leader in protecting the environment; the guidance range of adjusted income per diluted common share for the fiscal year ending in 2021; the 3-year earnings growth from 2021 to 2023; the projected total regulated water segment customer growth for 2021; the anticipated amount of capital investment in 2021; the anticipated amount of capital investment from 2021 through 2023; and the company’s anticipated rate base growth from 2021 through 2023. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: disruptions in the global economy; financial and workforce impacts from the COVID-19 pandemic; the continuation of the company's growth-through-acquisition program; the company’s continued ability to adapt itself for the future and build value by fully optimizing company assets; general economic business conditions; the company’s ability to fund needed infrastructure; housing and customer growth trends; unfavorable weather conditions; the success of certain cost-containment initiatives; changes in regulations or regulatory treatment; availability and access to capital; the cost of capital; disruptions in the credit markets; the success of growth initiatives; the company’s ability to successfully close municipally owned systems presently under agreement; the company’s ability to continue to deliver strong results; the company’s ability to continue to pay its dividend, add shareholder value and grow earnings; municipalities’ willingness to privatize their water and/or wastewater utilities; the company’s ability to control expenses and create and maintain efficiencies; the company’s ability to acquire municipally owned water and wastewater systems listed in its “pipeline”; and other factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential's business, please refer to Essential's annual, quarterly and other SEC filings. Essential is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRGF

Essential Utilities, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts)
(Unaudited)

The Company is providing disclosure of the reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. The Company believes that the non-GAAP financial measures "adjusted operating revenues," "adjusted income," and "adjusted income per common share" provide investors the ability to measure the Company’s financial operating performance by adjustment, which is more indicative of the Company’s ongoing performance and is more comparable to measures reported by other companies. The Company further believes that the presentation of these non-GAAP financial measures is useful to investors as a more meaningful way to compare the Company’s operating performance against its historical financial results.

This reconciliation includes a presentation of the non-GAAP financial measures "adjusted operating revenues," “adjusted income,” and “adjusted income per common share” and have been adjusted for the following items:

(1) Transaction-related rate credits issued to Pennsylvania utility customers in September and December 2020.

(2) Transaction-related expenses for the Company's Peoples acquisition that closed on March 16, 2020, which consists of costs of $1,005 recorded as operations and maintenance expenses for the three months ended December 31, 2019 and $25,397 and $22,891 for the year ended December 31, 2020 and 2019, respectively, primarily representing expenses associated with investment banking fees, obtaining regulatory approvals, legal expenses, and integration planning. Additionally included in transaction-related expenses for the year ended December 31, 2019 are mark-to-market fair value adjustments of $23,742 associated with interest rate swap agreements for debt issued related to the Peoples transaction. The interest rate swap agreements were settled on April 24, 2019, which coincided with the debt financings to partially fund the Peoples acquisition. Further, expenses of $19,433 for the year ended December 31, 2019 associated with the refinancing of existing debt that occurred in May 2019 are included in transaction-related expenses;

(3) In order to illustrate the full-year 2020 effects of the Peoples acquisition as if this transaction closed on January 1, 2020, this adjustment includes both the estimated impact of Peoples Gas pre-tax operating results for the period in 2020 prior to closing from January 1, 2020 to March 15, 2020, as well as the additional net interest expense expected to have been incurred for partially funding the estimated purchase price of Peoples;

(4) Pre-acquisition interest expense of $4,684, net of interest income of $2,041, for the three months ended December 31, 2019 and $12,933, net of interest income of $6,972 for the year ended December 31, 2019, commencing in the second quarter of 2019 for funds borrowed prior to the completion of the Company's Peoples acquisition on March 16, 2020;

(5) On April 26, 2019, the Company issued $313,500 of notes so as to complete an early extinguishment of $313,500 of existing debt on May 18, 2019. The Company incurred overlapping interest expense during this 22-day period of $858, net of interest income earned of $406, on the borrowed funds, and considers this overlapping net interest expense of $452 to be a transaction-related expense;

(6) Interest income earned on the proceeds received from our April 2019 equity offerings of common shares and tangible equity units prior to the completion of the Company's Peoples acquisition on March 16, 2020;

(7) The income tax impact of the non-GAAP adjustments described above; and

(8) The effect on average diluted shares outstanding of the shares issued in April 2019 for our common share and tangible equity unit issuances prior to the completion of the Company's Peoples acquisition on March 16, 2020.

These financial measures are measures of the Company’s operating performance that do not comply with U.S. generally accepted accounting principles (GAAP), and are thus considered to be “non-GAAP financial measures” under applicable Securities and Exchange Commission regulations. These non-GAAP financial measures are derived from our consolidated financial information, if available, and is provided to supplement the Company's GAAP measures, and should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP.

The following reconciles our GAAP results to the non-GAAP information we disclose :

Brian Dingerdissen
Essential Utilities Inc.
Investor Relations
O: 610.645.1191
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Dan Lockwood
Communications and Marketing
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DUBLIN--(BUSINESS WIRE)--The "India Solar Inverter Market (2020-2026): Market Forecast by Types, by System Type, by Applications, by Power Rating, by Regions, and Competitive Landscape" report has been added to ResearchAndMarkets.com's offering.

The India Solar Inverter Market size is projected to grow at a CAGR of 14.4% during 2020-2026F.

The Indian solar inverter market grew at a considerable rate during the period 2016-2019 as a result of several government efforts to improve the share of solar power in the country's energy generation mix such as the National Solar Mission by the Government of India targeting 100 GW solar energy by the year 2022.

Rising consumer awareness, the growing participation of residential and commercial segments towards solar system installations, supportive government policies & solar schemes, and increasing private sector involvement are the other major factors contributing to the growth of the solar inverter market in India.

However, the ongoing pandemic COVID-19 slowed down the growth rate of market revenues during the year 2020 as a result of a decline in market demand in the lockdown phase across the country. Moreover, with the gradual opening of the economy and removal of lockdown measures, the market began to show signs of improvement during the second half of the year and is anticipated to return to a normal growth trajectory in the upcoming years.

Increasing environmental awareness, financial support from the government in the form of subsidies, new initiatives and targets for renewable energy launched by the Ministry of New and Renewable Energy (MNRE) would further drive the solar inverter market revenues in India over the coming years.

The market is dominated by the utility sector owing to its large-scale solar projects deploying a large number of solar inverters. Further, the commercial segment is estimated to exhibit the highest growth rate during the forecast period. The high growth is attributed to growing solar installations across educational institutes, offices, factories, hospitals, and warehouses. In addition, the residential segment is also exhibiting significant growth with a focus on sustainable development and overlaying the rising power cost in the country.

Government initiatives such as the Smart City project, the development of solar parks, and the solar energy subsidy scheme would further accelerate the adoption of solar installations across residential and commercial segments.

Moreover, among system types, on-grid systems dominated the market in 2019 owing to huge adoption across different applications, whereas, off-grid systems are majorly limited to rural electrification applications only however, growth is expected in coming years.

The India solar inverter market report comprehensively covers the market by type, system type, power rating, application and region. The India solar inverter market outlook report provides an unbiased and detailed analysis of the India solar inverter market trends, opportunities, high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Key Highlights of the Report

• India Solar Inverter Market Overview
• India Solar Inverter Market Outlook
• India Solar Inverter Market Forecast
• India Solar Inverter Market Share, By Regions
• India Solar Inverter Market Size and India Solar Inverter Market Forecast, for the Period 2016-2026F
• Historical data of India Solar Inverter Market Revenues, By Types for the Period 2016-2019
• Market Size & Forecast data of India Solar Inverter Market Revenues, By Types until 2026F
• Historical data of India Solar Inverter Market Revenues, By System Types for the Period 2016-2019
• Market Size & Forecast data of India Solar Inverter Market Revenues, By System Types until 2026F
• Historical data of India Solar Inverter Market Revenues, By Applications for the Period 2016-2019
• Market Size and Forecast data of India Solar Inverter Market Revenues, By Applications until 2026F
• Historical data of India Solar Inverter Market Revenues, By Power Rating for the Period 2016-2019
• Market Size and Forecast data of India Solar Inverter Market Revenues, By Power Rating until 2026F
• Historical data of India Solar Inverter Market Revenues, By Region for the Period 2016-2019
• Market Size and Forecast data of India Solar Inverter Market Revenues, By Region until 2026F
• India Solar Inverter Market Drivers and Restraints
• India Solar Inverter Market Trends
• Industry Life Cycle
• Porter's Five Force Analysis
• Market Opportunity Assessment
• India Solar Inverter Market Share, By Companies
• India Solar Inverter Market Overview, By Competitive Benchmarking
• Company Profiles
• Key Strategic Recommendations

Markets Covered:

India solar inverter market report provides a detailed analysis of the following market segments:

By Type

• Central
• String
• Micro

By System Type

• Off-Grid
• On-Grid

By Applications

• Commercial
• Power Utility
• Residential

By Power Rating

• Below 10 kW
• 10-100 kW
• 1-1 MW
• Above 1 MW

By Regions

• Northern
• Eastern
• Western
• Southern

Companies Mentioned

• Delta Electronics India Pvt. Ltd.
• FIMER Ltd.
• Hitachi Hi-Rel Power Electronics Power Ltd.
• Huawei Technology Co Ltd
• Kehua Technology Pvt Ltd.
• Medha Servo Drives Pvt. Ltd.
• Sineng Electric Co Ltd
• Sungrow Power Supply Co., Ltd
• TBEA Energy (India) Pvt. Ltd.
• Toshiba Mitsubishi-Electric Industrial Systems Corporation

For more information about this report visit https://www.researchandmarkets.com/r/6dr7ns

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
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TULSA, Okla--(BUSINESS WIRE)--Blueknight Energy Partners, L.P. (“Blueknight” or the “Partnership”) (NASDAQ: BKEP and BKEPP), plans to release fourth quarter and full year 2020 financial results after market close on Tuesday, March 9, 2021.

The Partnership will discuss its fourth quarter and full year 2020 results during a conference call on Wednesday, March 10, 2021, at 10:00 a.m. CST (11:00 a.m. EST). The conference call will be accessible by telephone at 1-855-327-6837. International participants will be able to access the conference call at 1-631-891-4304.

Participants are requested to dial in five to ten minutes before the scheduled start time. An audio replay will be available through the “Investors” section of the Partnership’s website at investor.bkep.com.

About Blueknight

Blueknight owns and operates a diversified portfolio of complementary midstream energy assets consisting of:

• 8.8 million barrels of liquid asphalt storage located at 53 terminals in 26 states; and
• 6.6 million barrels of above-ground crude oil storage capacity located at the Cushing Interchange terminalling facility in Cushing, Oklahoma.

Blueknight provides integrated terminalling services for companies engaged in the production, distribution and marketing of liquid asphalt and crude oil. Blueknight is headquartered in Tulsa, Oklahoma. For more information, visit the Partnership’s website at www.bkep.com.

Blueknight Investor Relations
Chase Jacobson, (918) 237-4032
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HOUSTON--(BUSINESS WIRE)--Genesis Energy, L.P. (NYSE: GEL) announced today that it will participate in the Barclays Midstream & Clean Infrastructure Corporate Access Days. The conference is being held virtually on February 24th and 25th.

The Partnership’s latest presentation materials are available and may be downloaded by visiting the Partnership’s website at www.genesisenergy.com under “Presentations” under the Investors tab.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation and marine transportation. Genesis’ operations are primarily located in the Gulf Coast region of the United States, Wyoming and the Gulf of Mexico.

Genesis Energy, L.P.
Ryan Sims
SVP – Finance and Corporate Development
(713) 860-2521

HOUSTON--(BUSINESS WIRE)--Orion Group Holdings, Inc. (NYSE:ORN) (the “Company”), a leading specialty construction company, today reported net income of $3.7 million ($0.12 diluted earnings per share) for the fourth quarter ended December 31, 2020. Fourth quarter highlights are discussed below. For full year results please refer to the financial statements starting on page 7.

Fourth Quarter 2020 Highlights

• Operating income was $5.1 million for the fourth quarter of 2020 compared to operating income of $2.7 million for the fourth quarter of 2019.
• Net income was $3.7 million ($0.12 diluted earnings per share) for the fourth quarter of 2020 compared to net income of $0.2 million ($0.01 diluted earnings per share) for the fourth quarter of 2019.
• The fourth quarter 2020 net income included $0.6 million ($0.02 earnings per diluted share) of non-recurring items and $0.7 million ($0.02 earnings per diluted share) of tax benefit associated with the movement of certain valuation allowances. Fourth quarter 2020 adjusted net income was $3.5 million ($0.12 diluted earnings per share). (Please see page 9 of this release for a reconciliation of adjusted net income).
• EBITDA, adjusted to exclude the impact of the aforementioned non-recurring items, was $12.6 million in the fourth quarter of 2020, which compares to adjusted EBITDA of $11.5 million for the fourth quarter of 2019. (Please see page 10 of this release for an explanation of EBITDA, adjusted EBITDA and a reconciliation to the nearest GAAP measure).
• Backlog at the end of the fourth quarter was $439.5 million on a fourth quarter book-to-bill of 1.06x.

“We delivered strong growth in profitability and cash flow for the full year 2020,” stated Mark Stauffer, Orion’s Chief Executive Officer. “Despite the headwinds to the U.S. economy and our business resulting from the COVID-19 pandemic, our adjusted EBITDA increased more than 35% over 2019 and we improved our adjusted EBITDA margin by 210 basis points. This was the direct result of the commitment and resolve of our employees, coupled with the benefits of our Invest, Scale and Grow program, which we initiated in 2019.”

“Fourth quarter results were in-line with our expectations. Gross profit improved year over year in both dollars and margin, with gross profit margin improving by 320 basis points. The improvement was driven by production efficiency gains at the project level in both segments. Consolidated adjusted EBITDA for the fourth quarter also increased by 9.2% year over year. Our team’s focus remains on continued performance efficiency despite any macroeconomic challenges. We view our ability to generate improved profitability in a difficult market as a testament to Orion’s processes, procedures, and focus on bottom line results. We believe that this profitability improvement will be sustainable and scalable moving forward as bidding opportunities begin to normalize.”

“While bidding opportunities have been affected in some of our end markets, we still see bidding activity in both of our segments, largely driven by end markets that are continuing operations through the COVID-19 pandemic. As we have said previously, our efforts are focused on targeting the end markets in which we expect to have the best opportunities and on projects that we expect to be the most profitable projects. One of the key strengths of our Company is the wide array of potential users of our broad range of services, enabling us to pursue the most attractive bid opportunities in the end markets that are providing opportunities at any given point in time. This strategy has served us well and we believe it will continue to do so.”

“We continue to be confident in our ability to profitably execute our projects in backlog, and in our ability to maintain and grow our backlog level by targeting and winning new bid opportunities. We believe chances for a new infrastructure bill have improved, and if enacted, will be a further catalyst for continued strength in our end-market opportunities. We continue to focus on our liquidity position, which remains strong and provides us with more than sufficient financial flexibility to continue to pursue new awards and execute on existing projects in backlog. Our diverse end markets, broad range of construction capabilities and assets, and our highly experienced and professional personnel make us confident in our ability to deliver increasing levels of profitability and free cash flow, particularly in a post-pandemic environment.”

Consolidated Results for Fourth Quarter 2020 Compared to Fourth Quarter 2019

• Contract revenues were $170.2 million, down 14.8% as compared to $199.8 million. The decrease was primarily driven by the timing of projects for the marine and concrete segments.
• Gross profit was $21.7 million, as compared to $19.1 million. Gross profit margin was 12.8%, as compared to 9.6%. The increase in gross profit dollars and percentage was primarily driven by production efficiency gains in both segments.
• Selling, General, and Administrative expenses were $17.4 million, as compared to $16.3 million. As a percentage of total contract revenues, SG&A expenses increased to 10.2% from 8.2%. The increase in SG&A dollars was primarily attributable to the increased accrual of the annual incentive compensation plan during the current year period as compared to the prior year period.
• Operating income was $5.1 million as compared to $2.7 million. The operating income in the fourth quarter of 2020 reflects the aforementioned factors that improved gross profit.
• EBITDA was $11.7 million, representing a 6.9% EBITDA margin, as compared to EBITDA of $10.0 million, or a 5.0% EBITDA margin. When adjusted for non-recurring items, adjusted EBITDA for the fourth quarter of 2020 was $12.6 million, representing a 7.4% EBITDA margin. (Please see page 10 of this release for an explanation of EBITDA, Adjusted EBITDA and a reconciliation to the nearest GAAP measure).

Backlog

Backlog of work under contract as of December 31, 2020 was $439.5 million, which compares with backlog under contract at December 31, 2019 of $558.5 million. The fourth quarter 2020 ending backlog was comprised of $202.6 million for the marine segment, and $236.9 million for the concrete segment. At the end of 2020, the Company had approximately $1.6 billion worth of bids outstanding, including approximately $96 million on which it is the apparent low bidder or has been awarded contracts subsequent to the end of the fourth quarter of 2020, of which approximately $46 million pertains to the marine segment and approximately $50 million to the concrete segment.

“During the fourth quarter, we bid on approximately $954 million of work and were successful on approximately $181 million of these bids,” stated Robert Tabb, Orion Group Holding's Vice President and Chief Financial Officer. “This resulted in a 1.06 times book-to-bill ratio and a win rate of 19.0%. In the marine segment, we bid on approximately $254 million during the fourth quarter 2020 and were successful on approximately $59 million, representing a win rate of 23.1% and a book-to-bill ratio of 0.60 times. In the concrete segment we bid on approximately $700 million of work and were awarded approximately $122 million, representing a win rate of 17.5% and a book-to-bill ratio of 1.69 times."

Backlog consists of projects under contract that have either (a) not been started, or (b) are in progress and not yet complete. The Company cannot guarantee that the revenue implied by its backlog will be realized, or, if realized, will result in earnings. Backlog can fluctuate from period to period due to the timing and execution of contracts. Given the typical duration of the Company's projects, which generally range from three to nine months, the Company's backlog at any point in time usually represents only a portion of the revenue it expects to realize during a twelve-month period.

Conference Call Details

Orion Group Holdings will host a conference call to discuss results for the fourth quarter 2020 at 10:00 a.m. Eastern Time/9:00 a.m. Central Time on Thursday, February 25, 2021. To listen to a live webcast of the conference call, or access the replay, visit the Calendar of Events page of the Investor Relations section of the website at www.oriongroupholdingsinc.com. To participate in the call, please dial (201) 493-6739 and ask for the Orion Group Holdings Conference Call.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design, and specialty services. Its concrete segment provides turnkey concrete construction services including pour and finish, dirt work, layout, forming, rebar, and mesh across the light commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas.

Non-GAAP Financial Measures

This press release includes the financial measures “adjusted net income,” “adjusted earnings per share,” “EBITDA,” "Adjusted EBITDA" and “Adjusted EBITDA margin." These measurements are “non-GAAP financial measures” under rules of the Securities and Exchange Commission, including Regulation G. The non-GAAP financial information may be determined or calculated differently by other companies. By reporting such non-GAAP financial information, the Company does not intend to give such information greater prominence than comparable GAAP financial information. Investors are urged to consider these non-GAAP measures in addition to and not in substitute for measures prepared in accordance with GAAP.

Adjusted net income and adjusted earnings per share are not an alternative to net income or earnings per share. Adjusted net income and adjusted earnings per share exclude certain items that management believes impairs a meaningful comparison of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other companies. Generally, items excluded, are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items.

Orion Group Holdings defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is calculated by adjusting EBITDA for certain items that management believes impairs a meaningful comparison of operating results. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA for the period by contract revenues for the period. The GAAP financial measure that is most directly comparable to EBITDA and Adjusted EBITDA is net income, while the GAAP financial measure that is most directly comparable to Adjusted EBITDA margin is operating margin, which represents operating income divided by contract revenues. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are used internally to evaluate current operating expense, operating efficiency, and operating profitability on a variable cost basis, by excluding the depreciation and amortization expenses, primarily related to capital expenditures and acquisitions, and net interest and tax expenses. Additionally, EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide useful information regarding the Company's ability to meet future debt service and working capital requirements while providing an overall evaluation of the Company's financial condition. In addition, EBITDA is used internally for incentive compensation purposes. The Company includes EBITDA, Adjusted EBITDA and Adjusted EBITDA margin to provide transparency to investors as they are commonly used by investors and others in assessing performance. EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have certain limitations as analytical tools and should not be used as a substitute for operating margin, net income, cash flows, or other data prepared in accordance with generally accepted accounting principles in the United States, or as a measure of the Company's profitability or liquidity.

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, the provisions of which the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, outlook, assumptions, or goals. In particular, statements regarding future operations or results, including those set forth in this press release, and any other statement, express or implied, concerning future operating results or the future generation of or ability to generate revenues, income, net income, gross profit, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, or cash flow, including to service debt, and including any estimates, forecasts or assumptions regarding future revenues or revenue growth, are forward-looking statements. Forward looking statements also include estimated project start date, anticipated revenues, and contract options which may or may not be awarded in the future. Forward looking statements involve risks, including those associated with the Company's fixed price contracts that impacts profits, unforeseen productivity delays that may alter the final profitability of the contract, cancellation of the contract by the customer for unforeseen reasons, delays or decreases in funding by the customer, levels and predictability of government funding or other governmental budgetary constraints, the effects of the ongoing COVID-19 pandemic, and any potential contract options which may or may not be awarded in the future, and are at the sole discretion of award by the customer. Past performance is not necessarily an indicator of future results. In light of these and other uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise.

Please refer to the Company's Annual Report on Form 10-K, filed on February 28, 2020, which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.