Great Lakes Dredge and Dock (GLDD) released its financial results for the first quarter ending March 31. Revenue was reported at $146.6 million, net loss from continuing operations of $9.3 million and Adjusted EBITDA from continuing operations of $11.7 million. Excluding the charges relating to previously announced restructuring, for the three months that ended March 31, GLDD reported the net loss from continuing operations was reported at $4.6 million and Adjusted EBITDA from continuing operations of $15.1 million. These results compare to revenue of $170.6 million, net loss from continuing operations of $4.6 million and Adjusted EBITDA from continuing operations of $11.7 million for the same quarter in 2017.
According to Chief Executive Officer Lasse Petterson, during the first quarter the run-in period for the Ellis Island hopper dredge was completed. The dredge has contributed $14 million of revenue on the Mississippi Coastal Improvement Program (MSCIP) project during the first quarter and is on track to deliver expected annualized EBITDA results.
Awards during the quarter included $65 million of options on the Charleston II project, which is at $278 million and is now fully awarded. The company has $151 million in pending bids and expects bids to be issued for the first phase of the Corpus Christi deepening, the Tampa Big Bend Channel deepening and the Mississippi Coastal Improvements Program (MSCIP) II in the next few months. Further phases of the Jacksonville, Savannah, Charleston and Corpus Christi port deepening projects are expected to tender later this year.
“During the first quarter we did experience one major unplanned mechanical delay in our domestic fleet which negatively impacted our results for the quarter, decreasing revenue and gross profit by approximately $12.3 million and $4.3 million, respectively. The dredge is back to work and we expect this revenue timing delay to be recovered throughout the remainder of 2018,” Petterson said.
Chief Financial Officer Mark Marinko commented that GLDD has reduced its revolver balance by $4 million and overall net debt by $14 million since December 31, 2017.
Beginning in 2018, GLDD will account for plant and overhead in the same period in which costs were spent as opposed to the accrual / deferral method previously used. As required by guidance, the company has recast the prior year as if this accounting standard had always been in place for all periods presented.