GLDD Posts Q3 Results, Spotlight on High Equipment Utilization
Great Lakes Dredge & Dock Corporation (GLDD) today posted financial results for the three months ended September 30, 2018, reporting revenue of $204.3 million, net income from continuing operations of $11.7 million and Adjusted EBITDA from continuing operations of $35.9 million.
Commenting the latest news, GLDD Chief Executive Officer, Lasse Petterson, said: “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.”
“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,” added Petterson.
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.