Great Lakes Dredge Unveils Second Quarter Results

Great Lakes Dredge & Dock Corporation (GLDD) has just reported financial results for the three and six months ended June 30, 2018.

For the three months ended June 30, 2018, GLDD reported revenue of $150.6 million, net loss from continuing operations of $1.0 million and Adjusted EBITDA from continuing operations of $21.4 million.

During the second quarter, GLDD was awarded 46% of the overall $360 million bid market works.

Second Quarter Highlights (includes restructuring):

• Adjusted EBITDA from Continuing Operations was $21.4 million, a $6.3 million increase from the prior year quarter;
• Dredging segment’s gross margin percentage increased to 16.4% in the current quarter from 10.5% in the prior year quarter;
• Consolidated general and administrative expenses decreased by $2.1 million compared to the second quarter of 2017;
• Net debt decreased by $35 million as compared to year end 2017;
• Backlog increased $22 million from previous quarter. $70 million San Jacinto River project awarded subsequent to quarter end and will be added to backlog in third quarter.

Chief Executive Officer Lasse Petterson commented, “Today we announced another improved quarter. June 2018 marked the beginning of our busiest time of the year including high activity on the Charleston Port Deepening project where we have two of our largest cutter dredges and one mechanical dredge in continuous operation. We look forward to high utilization during the remainder of 2018. During the quarter, we saw dredging margins increase over the prior year quarter and we continue to see the Ellis Island operate at her full design criteria.”

Petterson also added that in July, GLDD announced $234 million of awards in dredging contracts for seven projects. Five of the seven projects, with a total value of $150 million, were added to backlog during the second quarter.

“We have commenced execution on several of these projects and have entered a heavy bidding period for additional complex port deepening and coastal protection and restoration projects in the latter half of 2018. Included in the $234 million of award announcements is the $70 million San Jacinto Emergency Flood Protection project. This project is a great fit for our rivers and lakes division but was awarded subsequent to the quarter end and is therefore not reflected in our backlog reported today,” said Lasse Petterson.

According to GLDD, dredging segment revenue decreased by $17.2 million compared to the second quarter of 2017.  The overall domestic market revenue, excluding rivers and lakes, was flat with the prior year quarter on decreases in the maintenance market being offset by increases in the capital market. Dredging segment backlog was $506.5 million at June 30, 2018.

For full second-quarter results, click here.