GLDD Delivers Strong Results

November 3, 2015

Great Lakes Dredge and Dock Corporation (GLDD) today reported financial results for the quarter ended September 30, 2015.

During the quarter, Great Lakes won $218 million, or 37%, of the domestic dredging bid market, with the Delaware River deepening and the Corpus Christi LNG projects representing a significant portion of the awards.

At September 30, 2015, the company had a low bid pending award for a $103 million coastal restoration project in the Gulf Coast.

The contract for this award was subsequently finalized and will be included in fourth quarter 2015 backlog.

Jonathan Berger, GLDD CEO, said: “The company’s core dredging business delivered another strong quarter, posting robust gross profit and operating margins. With favorable dredging tailwinds and record backlog, we remain confident in the continued elevated performance of this segment for the rest of the year.

Third Quarter 2015 Highlights

Dredging

Revenue decreased slightly in the third quarter 2015 compared to the third quarter 2014, with lower foreign, domestic capital and maintenance dredging offset by slightly higher coastal protection and rivers & lakes dredging revenue. The prior year quarter included a greater amount earned from the PortMiami port deepening project.
Gross profit margin increased during the third quarter compared to the same quarter 2014, primarily as a result of improved utilization and favorable project mix, both leading to strong margins.
Operating income was higher in the third quarter 2015 compared to the prior year quarter, primarily driven by the improvement in gross profit margin on increased fleet utilization, project mix and strong project margins.
Dredging backlog was $644.8 million at the end of the third quarter, which is an increase of $50.6 million compared to backlog at December 31, 2014.

“Domestically, we expect to commence work on the deepening project on the Delaware River and the Corpus Christi LNG project this month. We will continue work on the Savannah Harbor deepening project, the Jesuit Bend project on the Mississippi River in Louisiana, several large Sandy-related coastal projection projects in New Jersey and New York, and other capital and maintenance projects,” concluded Berger.