Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), the
largest provider of dredging services in the United States and a
major provider of environmental and infrastructure services, today
reported financial results for the three and nine months ended
September 30, 2018.
For the three months ended September 30, 2018,
Great Lakes reported revenue of $204.3 million, net income
from continuing operations of $11.7 million and Adjusted
EBITDA from continuing operations of $35.9 million.
Third Quarter Highlights (includes
restructuring)
- Net income from continuing operations was $11.7 million which
is a $14.9 million increase over the prior year quarter.
- Adjusted EBITDA from continuing operations was $35.9 million, a
$22.8 million increase from the prior year quarter.
- Dredging segment’s gross margin percentage increased to 22.2%
in the current quarter from 14.6% in the prior year quarter.
- Environmental & Infrastructure (“E&I”) gross margin
percentage increased to 9.9% in the current quarter from 0.9% in
the prior year quarter.
- Consolidated operating income increased to $23.4 million, a
$21.3 million increase over the prior year quarter. Dredging
operating income increased by 329% and E&I operating income
loss improved by 55% as compared to the prior year quarter.
- Net debt decreased by $85 million as compared to year end 2017;
current revolver balance is $31 million.
- Backlog increased $142 million from year end 2017.
Management Commentary
Chief Executive Officer Lasse Petterson
commented, “Today we announced continued strong performance
including a record quarter for Great Lakes’ Adjusted EBITDA from
continuing operations. During the quarter, we saw strong results
from our dredging operations, in particular on our Charleston II
project where three of the largest dredges in the United States
produced at expectations despite delays caused by Hurricanes
Florence and Michael. The third quarter also benefited from high
equipment utilization, solid project execution and savings from our
restructuring plan.
In addition to excellent results in the third
quarter, we also made significant progress on our goal to de-lever
and reduce our net debt. Compared to year end 2017, we have
decreased net debt by $85 million and we plan to continue to
de-lever throughout the fourth quarter and beyond.
We continued implementing our restructuring
plan, and as of September 30, 2018, we have realized $22.5 million
of cost savings and expect to remain on track to achieve the full
run rate savings of $40 million by year end 2018 and to be
recognized in 2019. As planned, we recognized a restructuring
charge of $4.5 million in third quarter which reduced adjusted
EBITDA from continuing operations by $3.2 million.
During the quarter, we announced two significant
awards for capital deepening work in the ports of Jacksonville and
Tampa. The Jacksonville Deepening award was $210 million comprised
of a base contract of $113 million and options of $97 million
expected to be awarded in the third quarter of 2019. We are
commencing operations on this project in November and expect the
project with all options to be completed in the second quarter of
2021. The Tampa Deepening award was $74 million divided into a $48
million base contract and $26 million of options which are expected
to be awarded by year end 2018. Operations commenced on this
project in October and are expected to finish in the third quarter
of 2019.”
Consistent with our 2017 year-end earnings
release, the Company has chosen to exclude restructuring charges in
certain comparisons to the prior year. As discussed in the “Use of
Non-GAAP measures” disclosure, certain pieces of the discussion
below remove the impact of these restructuring charges.
Reconciliations to results prepared in accordance with accounting
principles generally accepted in the United States of
America ("GAAP") are provided within the schedules attached.
Also, beginning in 2018, the Company chose to account for plant and
overhead in the same interim period in which costs were spent as
opposed to the accrual / deferral method previously used. As
required by guidance, the Company has recast the prior interim
period as if this accounting standard had always been in place for
all periods presented.
Operational Update (without
restructuring)
Dredging Segment
- Dredging segment revenue increased by $44.8 million or 33%
compared to the third quarter of 2017. Revenues from domestic
capital projects increased by $75.4 million over the prior year
quarter mainly as a result of our Charleston and MSCIP projects.
This increase was offset by a $30.7 million decrease in maintenance
project revenues. All other markets, including foreign capital,
varied slightly when comparing the current quarter to the third
quarter of 2017.
- Dredging segment gross margin percentage improved to 23.3% in
the current quarter from 14.8% in the third quarter of 2017 on
strong project performance combined with lower plant and overhead
costs resulting from operational improvements and higher
utilization.
- Dredging segment operating income was $29.1 million, an
increase of 289% compared to $7.5 million in the prior year
quarter.
- Dredging segment backlog was $654.2 million at September 30,
2018.
E&I Segment
- E&I segment revenue decreased $4.0 million compared to the
third quarter of 2017. The decrease is related to the lower than
expected new work.
- E&I segment gross margin increased to 9.9% in the current
year quarter from 0.9% in the prior year quarter. The increase is a
result of better project execution as well as lower overall plant
costs.
- E&I segment operating loss was $1.2 million, compared to a
$3.3 million loss in the prior year quarter.
- E&I segment backlog was $35.0 million at September 30,
2018.
Consolidated Company
- Consolidated general and administrative expenses increased by
$0.8 million when compared to the prior year quarter. The
increase was mainly due to an increase in incentive pay of $3.2
million. General and administrative expenses also included
reductions in labor and technical and consulting expenses due to
restructuring savings initiatives.
- Net income for the quarter was $15.0 million compared to a loss
of $2.0 million in the prior year quarter primarily as a result of
better operational results in the dredging segment. The current
year quarter includes interest expense of $8.1 million and tax
expense of $5.0 million while the prior year quarter included
interest expense of $6.4 million and a tax benefit of $0.5
million.
- Cash at September 30, 2018 was $23.1 million with total debt of
$353.5 million, compared to cash of $15.9 million and total debt of
$430.9 million at December 31, 2017.
- Capital expenditures were $2.3 million in the third quarter of
2018 compared to $12.6 million in the same quarter in 2017. The
third quarter of 2017 included $8.5 million related to the
construction of the Ellis Island.
Market Update
During the third quarter of 2018, GLDD was
awarded 49% of the overall $889 million bid market consisting of
the following types of work.
- $298 million or 70% of capital projects,
- $26 million or 37% of coastal protection projects,
- $43 million or 13% of maintenance projects, and
- $70 million or 100% of the large scale rivers and lakes
projects that the Company targets.
The domestic market continues to be driven by
large scale port deepening projects; we expect a strong future with
multiple deepenings scheduled for bid over the next 12-18 months.
In Washington D.C., the budget for the U.S. Army Corps of Engineers
was passed at another record level and the Water Resources
Development Act of 2018 (“WRDA”) was signed into law in October.
These positive developments combined with the supplemental
appropriations from Hurricanes Harvey, Irma, Maria and Florence
should provide for a strong pipeline of domestic project
opportunities going forward. We look forward to continuing to work
with the U.S. Army Corps of Engineers on this important work for
our country’s coastlines.
The Company will be holding a conference call
at 9:00 a.m. C.S.T. today where we will further discuss
these results. Information on this conference call can be found
below.
Conference Call Information
The Company will conduct a quarterly conference
call, which will be held on Tuesday, November 6, 2018 at 9:00 a.m.
C.S.T (10:00 a.m. E.S.T.). The call in number is (877) 377-7553 and
Conference ID is 7689246. The conference call will be available by
replay until Thursday, November 8, 2018 by calling (855)
859-2056 and providing Conference ID 7689246. The live call
and replay can also be heard on the Company’s website,
www.gldd.com, under Events & Presentations on the investor
relations page. Information related to the conference call will
also be available on the investor relations page of the Company’s
website.
Use of Non-GAAP measures
Adjusted EBITDA from continuing operations, as
provided herein, represents net income attributable to common
stockholders of Great Lakes Dredge & Dock Corporation, adjusted
for net interest expense, income taxes, depreciation and
amortization expense, debt extinguishment, accelerated maintenance
expense for new international deployments, goodwill or asset
impairments and gains on bargain purchase acquisitions. Adjusted
EBITDA from continuing operations is not a measure derived in
accordance with GAAP. The Company presents Adjusted EBITDA from
continuing operations as an additional measure by which to evaluate
the Company's operating trends. The Company believes that Adjusted
EBITDA from continuing operations is a measure frequently used to
evaluate performance of companies with substantial leverage and
that the Company's primary stakeholders (i.e., its stockholders,
bondholders and banks) use Adjusted EBITDA from continuing
operations to evaluate the Company's period to period performance.
Additionally, management believes that Adjusted EBITDA from
continuing operations provides a transparent measure of the
Company’s recurring operating performance and allows management and
investors to readily view operating trends, perform analytical
comparisons and identify strategies to improve operating
performance. For this reason, the Company uses a measure based upon
Adjusted EBITDA from continuing operations to assess performance
for purposes of determining compensation under the Company's
incentive plan. Adjusted EBITDA from continuing operations should
not be considered an alternative to, or more meaningful than,
amounts determined in accordance with GAAP including: (a) operating
income as an indicator of operating performance; or (b) cash flows
from operations as a measure of liquidity. As such, the Company's
use of Adjusted EBITDA from continuing operations, instead of a
GAAP measure, has limitations as an analytical tool, including the
inability to determine profitability or liquidity due to the
exclusion of accelerated maintenance expense for new international
deployments, goodwill or asset impairments, gains on bargain
purchase acquisitions, interest and income tax expense and the
associated significant cash requirements and the exclusion of
depreciation and amortization, which represent significant and
unavoidable operating costs given the level of indebtedness and
capital expenditures needed to maintain the Company's business. For
these reasons, the Company uses operating income to measure the
Company's operating performance and uses Adjusted EBITDA from
continuing operations only as a supplement. Adjusted EBITDA from
continuing operations is reconciled to net income (loss)
attributable to common stockholders of Great Lakes Dredge &
Dock Corporation in the table of financial results. For further
explanation, please refer to the Company's SEC filings.
Starting with our December 2017 year-end
earnings release, the Company has chosen to exclude restructuring
charges in comparisons to the prior year. This exclusion
allows the user to better evaluate the Company’s financial results
from operations and drivers of variances from the prior year
without the impact of this special item. Restructuring items can
include costs of contract revenues (depreciation and other),
general and administrative expenses and gains / losses on sale of
assets. Reconciliations to results prepared in accordance with GAAP
are provided within the schedules attached.
The Company
Great Lakes Dredge & Dock Corporation
(“Great Lakes” or the “Company”) is the largest provider of
dredging services in the United States and the only U.S. dredging
company with significant international operations. The Company is
also a significant provider of environmental and remediation
services on land and water. The Company employs experienced
civil, ocean and mechanical engineering staff in its estimating,
production and project management functions. In its over
128-year history, the Company has never failed to complete a marine
project. Great Lakes has a disciplined training program for
engineers that ensures experienced-based performance as they
advance through Company operations. The Company’s Incident-and
Injury-Free (IIF®) safety management program is integrated into all
aspects of the Company’s culture. The Company’s commitment to the
IIF® culture promotes a work environment where employee safety is
paramount. Great Lakes also owns and operates the largest and
most diverse fleet in the U.S. dredging industry, comprised of over
200 specialized vessels.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 21E of the
Securities Exchange Act of 1934 (the "Exchange Act"), the Private
Securities Litigation Reform Act of 1995 (the "PSLRA") or in
releases made by the Securities and Exchange Commission (the
"SEC"), all as may be amended from time to time. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the
actual results, performance or achievements of Great Lakes and its
subsidiaries, or industry results, to differ materially from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Statements that are not historical
fact are forward-looking statements. Forward-looking statements can
be identified by, among other things, the use of forward-looking
language, such as the words "plan," "believe," "expect,"
"anticipate," "intend," "estimate," "project," "may," "would,"
"could," "should," "seeks," “are optimistic,” or "scheduled
to," or other similar words, or the negative of these terms or
other variations of these terms or comparable language, or by
discussion of strategy or intentions. These cautionary statements
are being made pursuant to the Exchange Act and the PSLRA with the
intention of obtaining the benefits of the "safe harbor" provisions
of such laws. Great Lakes cautions investors that any
forward-looking statements made by Great Lakes are not guarantees
or indicative of future performance. Important assumptions and
other important factors that could cause actual results to differ
materially from those forward-looking statements with respect to
Great Lakes, include, but are not limited to: our ability to obtain
federal government dredging and other contracts; our ability to
qualify as an eligible bidder under government contract criteria
and to compete successfully against other qualified bidders; risks
associated with cost over-runs, operating cost inflation and
potential claims for liquidated damages, particularly with respect
to our fixed cost contracts; the timing of our performance on
contracts; significant liabilities that could be imposed were we to
fail to comply with government contracting regulations; risks
related to international dredging operations, including instability
and declining relationships amongst certain governments in the
Middle East and the impact this may have on infrastructure
investment, asset value of such operations, and local licensing,
permitting and royalty issues; increased cost of certain material
used in our operations due to newly imposed tariffs; a significant
negative change to large, single customer contracts from which a
significant portion of our international revenue is derived;
changes in previous-recorded net revenue and profit as a result of
the significant estimates made in connection with our methods of
accounting for recognizing revenue; consequences of any lapse in
disclosure controls and procedures or internal control over
financial reporting; changes in the amount of our estimated
backlog; our ability to obtain bonding or letters of credit and
risks associated with draws by the surety on outstanding bonds or
calls by the beneficiary on outstanding letters of credit;
increasing costs to operate and maintain aging vessels; equipment
or mechanical failures; acquisition integration and consolidation
risks; liabilities related to our historical demolition business;
impacts of legal and regulatory proceedings; unforeseen delays and
cost overruns related to the construction of new vessels, including
potential mechanical and engineering issues; our becoming liable
for the obligations of joint ventures, partners and subcontractors;
capital and operational costs due to environmental regulations;
unionized labor force work stoppages; maintaining an adequate level
of insurance coverage; information technology security breaches;
our substantial amount of indebtedness; restrictions imposed by
financing covenants; the impact of adverse capital and credit
market conditions; limitations on our hedging strategy imposed by
new statutory and regulatory requirements for derivative
transactions; foreign exchange risks; changes in macroeconomic
indicators and the overall business climate; uncertainties of the
impact of the Tax Cuts and Jobs Act and implementation of certain
provisions of the Dodd-Frank Wall Street Reform and Consumer
Protection Act; losses attributable to our investments in privately
financed projects and the likelihood of realizing, and amount of,
expected restructuring charges to be realized in connection with
the restructuring activities; and our ability to realize the
expected benefits from our restructuring activities. For additional
information on these and other risks and uncertainties, please see
Item 1A. "Risk Factors" of Great Lakes' Annual Report on Form 10-K
for the year ended December 31, 2017, and in other securities
filings by Great Lakes with the SEC.
Although Great Lakes believes that its plans,
intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, actual results could
differ materially from a projection or assumption in any
forward-looking statements. Great Lakes' future financial condition
and results of operations, as well as any forward-looking
statements, are subject to change and inherent risks and
uncertainties. The forward-looking statements contained in this
press release are made only as of the date hereof and Great Lakes
does not have or undertake any obligation to update or revise any
forward-looking statements whether as a result of new information,
subsequent events or otherwise, unless otherwise required by
law.
Dredging
Segment |
|
Select Income Statement
Results Excluding Restructuring |
|
(Unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months Ended |
|
|
September
30, |
|
|
September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
Variance |
|
|
|
2018 |
|
2017 |
|
Variance |
|
Revenue |
$ |
178,671 |
|
$ |
133,862 |
|
$ |
44,809 |
|
|
$ |
447,564 |
|
$ |
439,423 |
|
$ |
8,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
39,584 |
|
|
19,550 |
|
|
20,034 |
|
|
|
75,846 |
|
|
48,647 |
|
|
27,199 |
|
Restructuring exclusions |
|
2,106 |
|
|
316 |
|
|
1,790 |
|
|
|
7,767 |
|
|
316 |
|
|
7,451 |
|
Gross profit excluding restructuring |
|
41,690 |
|
|
19,866 |
|
|
21,824 |
|
|
|
83,613 |
|
|
48,963 |
|
|
34,650 |
|
Gross profit margin |
|
22.2 |
% |
|
14.6 |
% |
|
|
|
|
|
16.9 |
% |
|
11.1 |
% |
|
|
|
Gross profit margin excluding restructuring |
|
23.3 |
% |
|
14.8 |
% |
|
|
|
|
|
18.7 |
% |
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
25,081 |
|
|
5,848 |
|
|
19,233 |
|
|
|
38,826 |
|
|
9,573 |
|
|
29,253 |
|
Restructuring exclusions |
|
3,996 |
|
|
1,622 |
|
|
2,374 |
|
|
|
8,789 |
|
|
1,622 |
|
|
7,167 |
|
Operating income excluding restructuring |
|
29,077 |
|
|
7,470 |
|
|
21,607 |
|
|
|
47,615 |
|
|
11,195 |
|
|
36,420 |
|
Operating margin |
|
14.0 |
% |
|
4.4 |
% |
|
|
|
|
|
8.7 |
% |
|
2.2 |
% |
|
|
|
Operating margin excluding restructuring |
|
16.3 |
% |
|
5.6 |
% |
|
|
|
|
|
10.6 |
% |
|
2.5 |
% |
|
|
|
Environmental &
Infrastructure Segment |
|
Select Income Statement
Results Excluding Restructuring |
|
(Unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months Ended |
|
|
September
30, |
|
|
September
30, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
Variance |
|
|
|
2018 |
|
2017 |
|
Variance |
|
Revenue |
$ |
25,651 |
|
$ |
29,667 |
|
$ |
(4,016 |
) |
|
$ |
53,941 |
|
$ |
73,602 |
|
$ |
(19,661 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
2,548 |
|
|
268 |
|
|
2,280 |
|
|
|
3,232 |
|
|
6,265 |
|
|
(3,033 |
) |
Restructuring exclusions |
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
- |
|
Gross profit excluding restructuring |
|
2,548 |
|
|
268 |
|
|
2,280 |
|
|
|
3,232 |
|
|
6,265 |
|
|
(3,033 |
) |
Gross profit margin |
|
9.9 |
% |
|
0.9 |
% |
|
|
|
|
|
6.0 |
% |
|
8.5 |
% |
|
|
|
Gross profit margin excluding restructuring |
|
9.9 |
% |
|
0.9 |
% |
|
|
|
|
|
6.0 |
% |
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(1,692 |
) |
|
(3,727 |
) |
|
2,035 |
|
|
|
(8,343 |
) |
|
(6,600 |
) |
|
(1,743 |
) |
Restructuring exclusions |
|
535 |
|
|
415 |
|
|
120 |
|
|
|
694 |
|
|
415 |
|
|
279 |
|
Operating loss excluding restructuring |
|
(1,157 |
) |
|
(3,312 |
) |
|
2,155 |
|
|
|
(7,649 |
) |
|
(6,185 |
) |
|
(1,464 |
) |
Operating margin |
|
-6.6 |
% |
|
-12.6 |
% |
|
|
|
|
|
-15.5 |
% |
|
-9.0 |
% |
|
|
|
Operating margin excluding restructuring |
|
-4.5 |
% |
|
-11.2 |
% |
|
|
|
|
|
-14.2 |
% |
|
-8.4 |
% |
|
|
|
Great Lakes Dredge &
Dock Corporation |
|
Condensed Consolidated
Statements of Operations |
|
(Unaudited and in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months Ended |
|
|
September
30, |
|
|
September
30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Contract revenues |
$ |
204,322 |
|
|
$ |
163,317 |
|
|
$ |
501,505 |
|
|
$ |
510,762 |
|
Gross profit |
|
42,134 |
|
|
|
19,818 |
|
|
|
79,079 |
|
|
|
54,912 |
|
General and administrative expenses |
|
17,293 |
|
|
|
17,522 |
|
|
|
48,406 |
|
|
|
51,584 |
|
Loss on sale of assets—net |
|
1,452 |
|
|
|
175 |
|
|
|
190 |
|
|
|
355 |
|
Operating income |
|
23,389 |
|
|
|
2,121 |
|
|
|
30,483 |
|
|
|
2,973 |
|
Interest expense—net |
|
(8,062 |
) |
|
|
(6,417 |
) |
|
|
(25,719 |
) |
|
|
(18,440 |
) |
Equity in earnings (loss) of joint ventures |
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
(1,441 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,330 |
) |
Other income (expense) |
|
165 |
|
|
|
(266 |
) |
|
|
(2,808 |
) |
|
|
(343 |
) |
Income (loss) from continuing operations before
income taxes |
|
15,492 |
|
|
|
(4,536 |
) |
|
|
1,956 |
|
|
|
(19,581 |
) |
Income tax (provision) benefit |
|
(3,790 |
) |
|
|
1,308 |
|
|
|
(549 |
) |
|
|
7,555 |
|
Income (loss) from continuing operations |
|
11,702 |
|
|
|
(3,228 |
) |
|
|
1,407 |
|
|
|
(12,026 |
) |
Loss from discontinued operations, net of income
taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,697 |
) |
Net income (loss) |
$ |
11,702 |
|
|
$ |
(3,228 |
) |
|
$ |
1,407 |
|
|
$ |
(24,723 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to continuing
operations |
$ |
0.19 |
|
|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
|
$ |
(0.19 |
) |
Basic loss per share attributable to discontinued operations, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.21 |
) |
Basic earnings (loss) per share |
$ |
0.19 |
|
|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
|
$ |
(0.40 |
) |
Basic weighted average shares |
|
62,358 |
|
|
|
61,462 |
|
|
|
62,147 |
|
|
|
61,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share attributable to continuing
operations |
$ |
0.18 |
|
|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
|
$ |
(0.19 |
) |
Diluted loss per share attributable to discontinued operations, net
of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.21 |
) |
Diluted earnings (loss) per share |
$ |
0.18 |
|
|
$ |
(0.05 |
) |
|
$ |
0.02 |
|
|
$ |
(0.40 |
) |
Diluted weighted average shares |
|
63,260 |
|
|
|
61,462 |
|
|
|
63,340 |
|
|
|
61,290 |
|
Great Lakes Dredge &
Dock Corporation |
|
Reconciliation of Net
Income (Loss) to Adjusted EBITDA from Continuing
Operations |
|
(Unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months Ended |
|
|
September
30, |
|
|
September
30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net income (loss) |
$ |
11,702 |
|
|
$ |
(3,228 |
) |
|
$ |
1,407 |
|
|
$ |
(24,723 |
) |
Loss from discontinued operations, net of income taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,697 |
) |
Income (loss) from continuing operations |
|
11,702 |
|
|
|
(3,228 |
) |
|
|
1,407 |
|
|
|
(12,026 |
) |
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense—net |
|
8,062 |
|
|
|
6,417 |
|
|
|
25,719 |
|
|
|
18,440 |
|
Income tax provision (benefit) |
|
3,790 |
|
|
|
(1,308 |
) |
|
|
549 |
|
|
|
(7,555 |
) |
Depreciation and amortization |
|
12,309 |
|
|
|
11,206 |
|
|
|
41,290 |
|
|
|
38,707 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,330 |
|
Adjusted EBITDA from continuing operations |
$ |
35,863 |
|
|
$ |
13,087 |
|
|
$ |
68,965 |
|
|
$ |
39,896 |
|
Excluded for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of restructuring |
|
3,190 |
|
|
|
2,037 |
|
|
|
5,489 |
|
|
|
2,037 |
|
Adjusted EBITDA from continuing operations, excluding
restructuring |
$ |
39,053 |
|
|
$ |
15,124 |
|
|
$ |
74,454 |
|
|
$ |
41,933 |
|
Great Lakes Dredge &
Dock Corporation |
|
Selected Balance Sheet
Information |
|
(Unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
Ended |
|
|
|
|
|
|
September
30, |
|
|
December 31, |
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
$ |
23,127 |
|
|
$ |
15,852 |
|
Total current assets |
|
|
|
|
|
217,358 |
|
|
|
262,184 |
|
Total assets |
|
|
|
|
|
750,306 |
|
|
|
832,357 |
|
Total current liabilities |
|
|
|
|
|
139,774 |
|
|
|
150,250 |
|
Long-term debt |
|
|
|
|
|
352,609 |
|
|
|
428,141 |
|
Total equity |
|
|
|
|
|
224,435 |
|
|
|
221,296 |
|
Great Lakes Dredge &
Dock Corporation |
Revenue and Backlog
Data |
(Unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Nine Months Ended |
|
|
September
30, |
|
|
September
30, |
|
Revenues |
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Dredging: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital - U.S. |
$ |
105,934 |
|
|
$ |
30,561 |
|
|
$ |
252,537 |
|
|
$ |
128,634 |
|
Capital - foreign |
|
5,045 |
|
|
|
5,849 |
|
|
|
13,847 |
|
|
|
37,423 |
|
Coastal protection |
|
42,691 |
|
|
|
40,726 |
|
|
|
122,673 |
|
|
|
141,365 |
|
Maintenance |
|
11,581 |
|
|
|
42,282 |
|
|
|
38,461 |
|
|
|
98,532 |
|
Rivers & lakes |
|
13,420 |
|
|
|
14,444 |
|
|
|
20,046 |
|
|
|
33,469 |
|
Total dredging revenues |
|
178,671 |
|
|
|
133,862 |
|
|
|
447,564 |
|
|
|
439,423 |
|
Environmental & infrastructure |
|
25,651 |
|
|
|
29,667 |
|
|
|
53,941 |
|
|
|
73,602 |
|
Intersegment revenue |
|
— |
|
|
|
(212 |
) |
|
|
— |
|
|
|
(2,263 |
) |
Total revenues |
$ |
204,322 |
|
|
$ |
163,317 |
|
|
$ |
501,505 |
|
|
$ |
510,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
September
30, |
|
|
December
31, |
|
|
September
30, |
|
Backlog |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2017 |
|
Dredging: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital - U.S. |
|
|
|
|
$ |
415,291 |
|
|
$ |
383,577 |
|
|
$ |
256,940 |
|
Capital - foreign |
|
|
|
|
|
— |
|
|
|
8,575 |
|
|
|
12,720 |
|
Coastal protection |
|
|
|
|
|
121,672 |
|
|
|
76,460 |
|
|
|
78,670 |
|
Maintenance |
|
|
|
|
|
41,313 |
|
|
|
23,662 |
|
|
|
54,068 |
|
Rivers & lakes |
|
|
|
|
|
75,886 |
|
|
|
19,046 |
|
|
|
25,444 |
|
Total dredging backlog |
|
|
|
|
|
654,162 |
|
|
|
511,320 |
|
|
|
427,843 |
|
Environmental & infrastructure |
|
|
|
|
|
34,996 |
|
|
|
35,357 |
|
|
|
58,191 |
|
Total backlog |
|
|
|
|
$ |
689,158 |
|
|
$ |
546,677 |
|
|
$ |
486,034 |
|
|
For further information contact: Abby
SullivanInvestor
Relations630-574-3024
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