Great Lakes Dredge & Dock Corporation today reported financial results for the quarter and year ended December 31, 2015.
For the three months ended December 31, 2015, Great Lakes reported revenue of $222.6 million, net loss from continuing operations of $0.8 million and Adjusted EBITDA from continuing operations of $22.2 million.
For the year ended December 31, 2015, Great Lakes reported revenue of $856.9 million, net loss from continuing operations of $6.2 million and Adjusted EBITDA from continuing operations of $83.0 million.
GLDD Chief Executive Officer, Jonathan Berger, said: “During 2015, the Company’s results were driven by a strong performance in our dredging business. Domestically, dredging successfully executed on several port deepening, coastal protection and maintenance projects. Internationally, alongside several international dredging contractors, we completed work on the Suez Canal project.”
“With higher than anticipated production, the Suez Canal project was completed in July, well ahead of schedule, leading to robust contract margin, significantly boosting the Company’s overall performance.”
Mark Marinko, Chief Financial Officer, added: “At December 31, 2015, total assets and total liabilities on our balance sheet remained fairly consistent with year-end 2014. Throughout the year, we continued to deploy our free cash flow to finance the $140.0 million construction cost for our ATB hopper dredge, which is expected to be completed on schedule and on budget at the end of this year.”
Fourth Quarter 2015 Highlights
- Dredging revenue in the fourth quarter 2015 decreased 17.5% over the prior year period due to lower foreign capital, maintenance and domestic capital revenues partially offset by higher coastal protection and rivers & lakes revenues;
- Gross profit increased 15.9% during the fourth quarter compared to the same quarter 2014 primarily due to strong performance on several domestic coastal protection projects, strong production and execution on the Suez Canal project and lower overhead costs, primarily related to labor and benefits;
- Operating income increased in the fourth quarter 2015 compared to the prior year quarter due to higher gross profit margin, partially offset by higher G&A expense;
- Dredging backlog was $677.7 million at the end of the fourth quarter, which is an increase of $83.5 million compared to backlog at December 31, 2014.
Year Ended December 31, 2015 Highlights
- Revenue decreased 2.4% for the year ended December 31, 2015 compared to the prior year, driven by a decrease in foreign capital, coastal protection and maintenance revenue partially offset by higher domestic capital and rivers & lakes revenue;
- Gross profit increased 23.7% for the year ended December 31, 2015 compared to the prior year, due to strong contract margins, particularly on the Suez Canal project, and higher absorption of fixed costs due to improved utilization of our fleet;
- Operating income increased in 2015 primarily driven by higher gross profit;
- The Company won 57%, or $738.4 million, of the 2015 domestic dredging bid market in which the Company participates of $1.3 billion at December 31, 2015, with an additional $82.8 million in low bids and options pending awards at December 31, 2015.