Great Lakes Dredge & Dock Corporation (GLDD) today reported financial results for the quarter ended September 30, 2016.
For the three months ended September 30, 2016, Great Lakes reported revenue of $198.9 million, net income of $4.6 million and Adjusted EBITDA of $29.1 million.
The company recorded the following one-time items during the quarter, positively impacting EBITDA: an $8.6 million reversal of an earn-out and restricted stock units associated with the GLEI acquisition due to failing to meet performance expectations and a $2.0 million reversal of variable employee compensation.
Chief Executive Officer Jonathan Berger stated, “During the third quarter, the Dredging segment executed well on several domestic capital, coastal protection and maintenance projects. The domestic performance was offset by weak international project performance as a project in Saudi Arabia went into a loss position, and the segment did not benefit from having a large, profitable project such as the Suez Canal deepening in this year.”
Mark Marinko, Chief Financial Officer, added, “Through the first nine months of the year, we invested $38.7 million to finance the construction cost of our ATB. As stated previously, we expect to continue to be deploying our free cash flow until construction of this vessel is complete.”
“The domestic dredging bid market through the first nine months of the year totaled $668 million, compared to $1 billion through the first nine months of 2015. Our dredging segment won 34% of our addressable bid market, which is below the average combined dredging bid market share over the prior three years. Our awards consisted of several coastal protection and maintenance projects, with the $30 million Fire Island coastal protection project being one of the larger awards. For the remainder of the year, we expect several large jobs to be tendered, particularly opportunities in the coastal protection and Gulf Coast restoration markets,” Mr. Berger concluded.
According to the report, despite the softness of the international market, GLDD has secured work for its entire international fleet through the rest of the year. Additionally, the company is pursuing several opportunities, primarily in the Middle East, and also assessing sales or retirements of several older vessels in its fleet based outside of the United States.