Record Backlog of $741 Million for GLDD
For the quarter ended March 31, 2015, Great Lakes Dredge & Dock Corporation (GLDD) reported revenue of $174.6 million, net loss of $8.4 million, and adjusted EBITDA from continuing operations of $4.4 million. Total contracted backlog at quarter end was a record $741.2 million.
“In the first quarter of 2015, we were awarded $208 million, or 84% of the domestic dredging bidding market, with the $135 million Savannah project accounting for a significant portion of our awards. The Savannah project will commence this summer and is expected to be completed by summer 2018. We were also awarded a $23 million coastal protection project in New York and $46 million in maintenance dredging awards,” GLDD said.
Chief Executive Officer Jonathan Berger commented: “Our first quarter performance was impacted by expected business cyclicality losses in the environmental & remediation segment. The expected operating loss was further negatively impacted by pending change orders and claims. Change orders are being negotiated, and we are confident that their resolution will result in revenues and net income in subsequent quarters that will partially offset first quarter losses.
“We do not expect the first quarter results to be indicative of the Company’s annual results. Dredging activity has picked up in the second quarter, with more of our year-end backlog expected to be worked off compared to the first quarter, and our environmental & remediation segment is beginning to enter its busy season.”
– Dredging revenues decreased in the first quarter compared to the first quarter of the prior year, with lower coastal protection and rivers & lakes dredging revenue partially offset by higher foreign, domestic capital and maintenance dredging;
– Gross profit margin decreased slightly during the first quarter 2015 compared to the same quarter last year, primarily as a result of project mix;
– Operating income was slightly higher in the first quarter 2015 compared to the prior year quarter. Lower G&A expenses offset the small decline in gross profit margin;
– Dredging backlog was $637.0 million at the end of the first quarter, which is an increase of $42.7 million compared to backlog at December 31, 2014.
“Given our large backlog, we have had a busy start to the second quarter, and we expect our dredges to be working at an elevated level through the third quarter. Domestically, dredging is well underway on some of the large Sandy-related coastal projection projects in New Jersey that were in backlog at year-end. Only 10% of the $211 million in Sandy-related work was worked off during the first quarter. In addition, we will continue to execute on the PortMiami deepening, which is on schedule to be completed towards the end of the summer, as well as other capital and maintenance projects. Internationally, we will continue to execute on the Suez Canal widening and deepening project. Looking beyond the second quarter, we have even more of our fleet committed during the year than we did at year-end, well positioning the dredging segment to have a strong year,” concluded Mr. Berger.