GLDD Cost Savings Initiatives on Track

Great Lakes Dredge & Dock Corporation (GLDD) today announced financial results for the last quarter of 2017, reporting revenue of $191.7 million and net loss from continuing operations of $8.8 million.

“Excluding the charges relating to our previously announced restructuring, for the three months ended December 31, 2017, Great Lakes reported net income from continuing operations of $8.0 million and Adjusted EBITDA from continuing operations of $12.2 million,” GLDD said.

These results compare to revenue of $213.4 million, net loss from continuing operations of $7.0 million and Adjusted EBITDA from continuing operations of $11.6 million for the same quarter in 2016.

Commenting the results, Chief Executive Officer, Lasse Petterson, said: “For the year ended December 31, 2017, we recognized a $29.5 million charge related to the previously announced restructuring. This charge was comprised of $23.0 million in cost of contract revenues, $1.8 million in general and administrative expenses and a $4.7 million loss on sale of assets. We expect to recognize an additional $13 – $18 million of restructuring charges during 2018.”

“We are also pleased to confirm that our cost savings initiatives are on track, and we continue to expect to recognize approximately $20 million of cost savings in 2018 with the full run rate of $40 million in cost savings starting in 2019. 

“During the fourth quarter of 2017, we also successfully commenced operations of the Ellis Island which is currently working and earning revenue on the Mississippi Coastal Improvement Program project in the Gulf of Mexico.

“As stated in previous communications, we expect there to be a three month run in period for the Ellis Island to achieve her design production capacity. We continue to expect the Ellis Island to provide an incremental $20-$30 million of EBITDA on an annual basis.” 

For the year ended December 31, 2017, Great Lakes reported revenue of $702.5 million, net loss from continuing operations of $18.6 million and Adjusted EBITDA from continuing operations of $34.7 million.

Excluding the charges relating to the previously announced restructuring, for the year ended December 31, 2017, Great Lakes reported net loss from continuing operations of $0.5 million and Adjusted EBITDA from continuing operations of $57.3 million.

These results compare to revenue of $767.6 million, net loss from continuing operations of $8.2 million and Adjusted EBITDA from continuing operations of $72.0 million in the prior year.