Great Lakes Dredge & Dock (GLDD) Corporation reported financial results for the second quarter ended March 31.
Chief Executive Officer Lasse Petterson said, “The first quarter of 2019 was an exceptional quarter driven by strong project performance, resulting in net income from continuing operations of $20.5 million and an adjusted EBITDA from continuing operations of $43.8 million. During the quarter, we saw better than expected productivity on the Tampa Big Bend project, which was completed ahead of schedule in the quarter, and the San Jacinto project, which we expect will be completed in the second quarter. We also had a contract modification to increase the scope of work on a project in Delaware that was not budgeted to contribute in 2019. While the first quarter of 2019 was operationally very strong, our planned dry docking of certain vessels will start to have an impact on results starting in the second quarter and continuing into the third quarter.”
Highlights of the first quarter include:
- Revenue was $192.6 million, a $59.0 million or 44.2 percent increase over the prior year quarter.
- Gross margin percentage increased to 25.9 percent in the first quarter from 10.6 perecent in the prior year quarter.
- Total operating income from continuing operations was $34.8 million, a $33.5 million increase over the prior year quarter.
- Net income from continuing operations was $20.5 million, a $27.6 million increase over the prior year quarter.
- Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) from continuing operations was $43.8 million as compared to $13.7 million in the prior year quarter.
- Net debt to adjusted EBITDA from continuing operations was 53x.
- Capital expenditures for the quarter were $7.7 million. This compares to $6.9 million in capital expenditures during the first quarter of 2018. The company continues to expect total capital expenditures to be $40 million for 2019.
GLDD was awarded $35.1 million of the total $219 million in project awards for the domestic market. The company expects additional phases of multiple large deepening and other capital projects to bid in the second half of the year, resulting in another strong domestic bid market in 2019. Upcoming projects include additional phases of work in Charleston, Savannah, Corpus Christi and Mississippi, as well as new projects in Virginia, Texas and Louisiana. In addition to this anticipated capital work, GLDD also expects to bid on multiple projects funded by the $17.4 billion supplemental hurricane funding.