Great Lakes Dredge & Dock Corporation, the largest provider of dredging services in the United States, today reported financial results for the quarter ended June 30, 2020, saying that company ended the second quarter with a strong net cash position, balance sheet and substantial liquidity.
“At GLDD we have been fortunate to be able to continue working as a federally-designated “Critical Infrastructure” company. As such, during this unprecedented COVID-19 pandemic, we have remained focused on strong project performance while ensuring the safety and continued protection of our crew members and employees,” commented Lasse Petterson, Chief Executive Officer and President.
Taking into account current circumstances, the Company’s financial results in the second quarter of 2020 were lower than prior year, but Great Lakes had an active and solid first half of the year, resulting in income from continuing operations of $42.9 million, a $10.9 million or a 34% increase over the prior year.
Year to date adjusted EBITDA from continuing operations was $89.5 million, a $13.6 million or 17.9% increase over 2019.
“As we noted in our last earnings release, planned dry dockings of certain vessels had an expected impact on second quarter results. In addition, the company also pushed drydock days from the first quarter into the second quarter. The effects of the drydocks were offset with better than anticipated productivity on the West of Shinnecock Inlet project, the Jacksonville deepening, and additional work on the Delaware River Reach B deepening project,” said the company.
Second Quarter 2020 Highlights
- Revenue was $167.9 million in the second quarter, a $16.9 million or 9.1% decrease over the prior year quarter;
- Gross margin percentage was 19.7% in the second quarter compared with 20.3% in the prior year quarter;
- Total operating income from continuing operations was $18.3 million, a $4.5 million decrease over the prior year quarter;
- Income from continuing operations was $9.0 million, a $2.5 million decrease from the prior year quarter;
- General & Administrative expenses in the second quarter were essentially flat with the prior year quarter;
- Adjusted EBITDA from continuing operations was $28.1 million as compared to $32.0 million in the prior year quarter;
- Net interest expense was $6.7 million in the second quarter as compared to $7.2 million in the prior year quarter.