Great Lakes Dredge & Dock Corporation (GLDD) today reported financial results for the quarter ended September 30, 2019.
According to GLDD Chief Executive Officer, Lasse Petterson, bidding activity increased significantly, with over $1.0 billion in projects bid in the third quarter. Operationally, the quarter had lower dredging activity, due to several vessel dry dockings.
The company also added that most of these dry dockings are now complete and those vessels are actively engaged on projects in the fourth quarter.
”The impact was partially offset by improved performance on the San Jacinto flood prevention project in Houston, Texas and the Jacksonville port deepening project in Florida. Strong performance is also a result of safe project execution as we continue to focus on improving safety on our projects,” commented Lasse Petterson.
“As expected, the 2019 domestic bid market remains strong after an active third quarter. We continue to expect the trend of additional phases of multiple large deepening and other capital projects to be bid in the fourth quarter and in 2020. The projects coming into the pipeline include additional phases of work in Corpus Christi and new projects in the Ports of Norfolk, Virginia and Freeport, Texas,” said Mr. Petterson.
Third Quarter 2019 Highlights
- Revenue was $169.8 million in the third quarter, bringing year-to-date revenue to $547.2 million, an increase of $99.6 million over year-to-date revenue for the same period in the prior year.
- Gross margin percentage decreased to 18.8% in the third quarter from 22.2% in the prior year quarter.
- Total operating income from continuing operations was $18.4 million, bringing year-to-date operating income to $75.9 million, an increase of $40 million over year-to-date operating income for the same period in the prior year.
- Net income from continuing operations was $8.8 million, bringing total year-to-date net income from continuing operations to $40.9 million, an increase of $34.8 million over year-to-date net income for the same period in the prior year.
- Adjusted EBITDA from continuing operations was $27.1 million, bringing total year-to-date adjusted EBITDA to $103.0 million, an increase of $30.9 million over the same period in the prior year.
- Ratio of net debt to adjusted EBITDA from continuing operations was 1.08x.
For the full third quarter results, please click here.