Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GLDD | |
Entity Registrant Name | Great Lakes Dredge & Dock Corporation | |
Entity Central Index Key | 0001372020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, Address Line One | 9811 Katy Freeway | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Common Stock, Shares Outstanding | 67,009,319 | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-33225 | |
Entity Tax Identification Number | 20-5336063 | |
City Area Code | 346 | |
Local Phone Number | 359-1010 | |
Entity Address, Postal Zip Code | 77024 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock (Par Value $0.0001) | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 22,802 | $ 22,841 |
Accounts receivable—net | 40,482 | 54,810 |
Contract revenues in excess of billings | 68,761 | 68,735 |
Inventories | 32,038 | 33,912 |
Prepaid expenses | 2,025 | 1,486 |
Other current assets | 45,070 | 44,544 |
Total current assets | 211,178 | 226,328 |
PROPERTY AND EQUIPMENT—Net | 613,116 | 614,608 |
OPERATING LEASE ASSETS | 81,633 | 88,398 |
GOODWILL | 76,576 | 76,576 |
INVENTORIES—Noncurrent | 89,746 | 86,325 |
OTHER | 22,839 | 18,605 |
TOTAL | 1,095,088 | 1,110,840 |
LIABILITIES AND EQUITY | ||
Accounts payable | 89,601 | 83,835 |
Accrued expenses | 32,484 | 37,361 |
Operating lease liabilities | 28,348 | 28,687 |
Billings in excess of contract revenues | 18,066 | 29,560 |
Total current liabilities | 168,499 | 179,443 |
LONG-TERM DEBT | 382,207 | 412,070 |
OPERATING LEASE LIABILITIES—Noncurrent | 54,835 | 61,444 |
DEFERRED INCOME TAXES | 69,657 | 62,232 |
OTHER | 10,850 | 10,103 |
Total liabilities | 686,048 | 725,292 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
EQUITY: | ||
Common stock-$.0001 par value; 90,000 authorized, 66,941 and 66,623 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively. | 6 | 6 |
Additional paid-in capital | 318,517 | 317,337 |
Retained earnings | 91,244 | 70,220 |
Accumulated other comprehensive loss | (727) | (2,015) |
Total equity | 409,040 | 385,548 |
TOTAL | $ 1,095,088 | $ 1,110,840 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 66,941,000 | 66,623,000 |
Common stock, shares outstanding | 66,941,000 | 66,623,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Contract revenues | $ 198,660 | $ 158,044 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Costs of contract revenues | $ 153,086 | $ 145,909 |
Cost, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Gross profit | $ 45,574 | $ 12,135 |
General and administrative expenses | 16,111 | 13,017 |
Other gains | (2,016) | (18) |
Operating income (loss) | 31,479 | (864) |
Interest expense—net | (3,891) | (3,385) |
Other income | 425 | 227 |
Income (loss) before income taxes | 28,013 | (4,022) |
Income tax (provision) benefit | (6,989) | 791 |
Net income (loss) | $ 21,024 | $ (3,231) |
Basic earnings (loss) per share | $ 0.32 | $ (0.05) |
Basic weighted average shares | 66,729 | 66,264 |
Diluted earnings (loss) per share | $ 0.31 | $ (0.05) |
Diluted weighted average shares | 67,494 | 66,264 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 21,024 | $ (3,231) | |
Net change in cash flow derivative hedges—net of tax | [1] | 1,288 | (1,409) |
Comprehensive income (loss) | $ 22,312 | $ (4,640) | |
[1] Net of income tax (provision) benefit of $ ( 435 ) and $ 476 for the three months ended March 31, 2024 and 2023, respectively . |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized gain (loss) on derivatives, tax | $ (435) | $ 476 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE - value at Dec. 31, 2022 | $ 368,220 | $ 6 | $ 312,091 | $ 56,314 | $ (191) |
BALANCE - shares at Dec. 31, 2022 | 66,188 | ||||
Share-based compensation, value | 215 | 215 | |||
Share-based compensation, shares | 20 | ||||
Vesting of restricted stock units and impact of shares withheld for taxes, value | (335) | (335) | |||
Vesting of restricted stock units and impact of shares withheld for taxes, shares | 93 | ||||
Exercise of options and purchases from employee stock purchase plan, value | 562 | 562 | |||
Exercise of options and purchases from employee stock purchase plan, shares | 115 | ||||
Net Income (Loss) | (3,231) | (3,231) | |||
Other comprehensive income (loss) net of tax | (1,409) | (1,409) | |||
BALANCE - value at Mar. 31, 2023 | 364,022 | $ 6 | 312,533 | 53,083 | (1,600) |
BALANCE - shares at Mar. 31, 2023 | 66,416 | ||||
BALANCE - value at Dec. 31, 2023 | 385,548 | $ 6 | 317,337 | 70,220 | (2,015) |
BALANCE - shares at Dec. 31, 2023 | 66,623 | ||||
Share-based compensation, value | 999 | 999 | |||
Share-based compensation, shares | 10 | ||||
Vesting of restricted stock units and impact of shares withheld for taxes, value | (681) | (681) | |||
Vesting of restricted stock units and impact of shares withheld for taxes, shares | 187 | ||||
Exercise of options and purchases from employee stock purchase plan, value | 862 | 862 | |||
Exercise of options and purchases from employee stock purchase plan, shares | 121 | ||||
Net Income (Loss) | 21,024 | 21,024 | |||
Other comprehensive income (loss) net of tax | 1,288 | 1,288 | |||
BALANCE - value at Mar. 31, 2024 | $ 409,040 | $ 6 | $ 318,517 | $ 91,244 | $ (727) |
BALANCE - shares at Mar. 31, 2024 | 66,941 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 21,024 | $ (3,231) |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||
Depreciation and amortization | 11,020 | 10,850 |
Deferred income taxes | 6,989 | (791) |
Gain on sale of assets | (2,016) | (18) |
Amortization of deferred financing fees | 241 | 241 |
Share-based compensation expense | 756 | 237 |
Changes in assets and liabilities: | ||
Accounts receivable | 14,328 | 13,344 |
Contract revenues in excess of billings | (26) | (15,379) |
Inventories | (1,546) | (3,766) |
Prepaid expenses and other current assets | (1,424) | 2,981 |
Accounts payable and accrued expenses | 2,730 | 4,000 |
Billings in excess of contract revenues | (11,495) | 2,530 |
Other noncurrent assets and liabilities | (2,140) | (1,678) |
Cash provided by operating activities | 38,441 | 9,320 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (11,912) | (33,629) |
Proceeds from dispositions of property and equipment | 3,641 | 55 |
Cash used in investing activities | (8,271) | (33,574) |
FINANCING ACTIVITIES: | ||
Taxes paid on settlement of vested share awards | (681) | (335) |
Exercise of options and purchases from employee stock plans | 862 | 562 |
Borrowing under revolving loans | 75,000 | |
Repayments of revolving loans | (30,000) | (25,000) |
Payments on finance lease obligations | (390) | |
Cash (used in) provided by financing activities | (30,209) | 50,227 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (39) | 25,973 |
Cash, cash equivalents and restricted cash at beginning of period | 23,761 | 6,546 |
Cash, cash equivalents and restricted cash at end of period | 23,722 | 32,519 |
Reconciliation of cash, cash equivalents and restricted cash | ||
Cash and cash equivalents | 22,802 | 32,519 |
Restricted cash included in other long-term assets | 920 | |
Supplemental Cash Flow Information | ||
Cash paid for interest | 2,065 | 536 |
Cash paid (received) for income taxes | 176 | (45) |
Non-cash Investing and Financing Activities | ||
Property and equipment purchased but not yet paid | $ 4,288 | $ 3,755 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 21,024 | $ (3,231) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Securities Trading Plans of Executive Officers and Directors Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables pre-arranged transactions in securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information. Our Securities Trading and Disclosure of Confidential Information policy permits our officers and directors to enter into trading plans designed to comply with Rule 10b5-1. During the quarterly period ended March 31, 2024 , none of our officers (as defined in Rule 16a-1(f) under the Exchange Act) or directors adopted or terminated a Rule 10b5-1 trading plan or adopted or terminated a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K). |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of presentation The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of Great Lakes Dredge & Dock Corporation and Subsidiaries (the “Company” or “Great Lakes”) and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The condensed consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. In the opinion of management, all adjustments, which are of a normal and recurring nature (except as otherwise noted), that are necessary to present fairly the Company’s financial position as of March 31, 2024 and December 31, 2023, and its results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023 have been included. The components of costs of contract revenues include labor, equipment (including depreciation, maintenance, insurance and long-term rentals), subcontracts, fuel, supplies, short-term rentals and project overhead. Hourly labor is generally hired on a project-by-project basis. Costs of contract revenues vary significantly depending on the type and location of work performed and assets utilized. The Company has one operating segment which is also the Company’s reportable segment and reporting unit of which the Company tests goodwill for impairment. The Company performed its most recent test of impairment as of July 1, 2023 with no indication of impairment as of the test date. When performing the qua ntitative test, the Company assessed the fair values of its reporting unit using both a market-based approach and an income-based approach. The assessment used estimates based on assumptions that the Company believes to be reasonable, but such assumptions are subject to unpredictability and uncertainty. Likewise, changes in terminal value and discount rate assumptions, unfavorable economic environment or market conditions and other factors in the future may cause a different assessment. Changes in these estimates and assumptions could materially affect the determination of fair value, and may result in the impairment of goodwill in the event that actual results differ from those estimates. As of the test date, the fair value of the reporting unit was in excess of its carrying value by at least 10 %. The Company will continue to monitor for changes in facts or circumstances that may impact its estimates. The Company will perform its next scheduled annual impairment test of goodwill in the third quarter of 2024 should no triggering events occur which would require a test prior to the next annual test. The condensed consolidated statements of operations and comprehensive income (loss) for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. Recently Issued Accounting Pronouncements —In December 2023, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic 740)” (“ASU 2023-09”). The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. One of the amendments in ASU 2023-09 includes disclosure of, on an annual basis, a tabular rate reconciliation of (i) the reported income tax expense (or benefit) from continuing operations, to (ii) the product of the income (or loss) from continuing operations before income taxes and the applicable statutory federal income tax rate of the jurisdiction of domicile using specific categories, including separate disclosure for any reconciling items within certain categories that are equal to or greater than a specified quantitative threshold of 5 %. ASU 2023-09 also requires disclosure of, on an annual basis, the year to date amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign jurisdictions, including additional disaggregated information on income taxes paid (net of refunds received) to an individual jurisdiction equal to or greater than 5 % of total income taxes paid (net of refunds received). The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024, and should be applied prospectively. Management is currently evaluating the impact of this guidance. On January 1, 2024, we adopted FASB ASU 2023-07, “Segment Reporting (Topic 280)” (“ASU 2023-07”). The amendments in ASU 2023-07 improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. ASU 2023-07 requires a public entity to report a measure of segment profit or loss that the chief operating decision maker (CODM) uses to assess segment performance and make decisions about allocating resources. ASU 2023-07 also requires other specified segment items and amounts, such as depreciation, amortization, and depletion expense, to be disclosed under certain circumstances. The amendments in ASU 2023-07 do not change or remove those disclosure requirements. The amendments in ASU 2023-07 also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, adopted retrospectively. The adoption of ASU 2023-07 did not have a material effect on the Company’s consolidated financial statements or disclosures. |
Earnings (loss) per share
Earnings (loss) per share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per share | 2. Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock. The computations for basic and diluted earnings (loss) per share are as follows: Three Months Ended March 31, 2024 2023 Net income (loss) $ 21,024 $ ( 3,231 ) Weighted-average common shares outstanding — basic 66,729 66,264 Effect of stock options and restricted stock units 765 — Weighted-average common shares outstanding — diluted 67,494 66,264 Earnings (loss) per share — basic $ 0.32 $ ( 0.05 ) Earnings (loss) per share — diluted $ 0.31 $ ( 0.05 ) For the three months ended March 31, 2024, there were 765 stock options ("NQSOs") and restricted stock units ("RSUs") included in the diluted weighted average common shares outstanding. For the three months ended March 31, 2023, there were 246 NQSOs and RSUs excluded from the diluted weighted average common shares outstanding because the Company incurred a loss during these periods. For the three months ended March 31, 2024, there were 240 NQSOs and RSUs excluded from the calculation of diluted earnings per share based on the application of the treasury stock method, as such NQSOs and RSUs were determined to be anti-dilutive. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 3. Accrued expenses Accrued expenses at March 31, 2024 and December 31, 2023 were as follows: March 31, December 31, 2024 2023 Insurance $ 13,960 $ 12,521 Payroll and employee benefits 4,979 11,986 Contract reserves 2,148 3,964 Fuel hedge contracts 390 2,918 Interest 6,101 2,388 Income and other taxes 2,056 1,900 Finance lease liabilities 1,640 1,047 Other 1,210 637 Total accrued expenses $ 32,484 $ 37,361 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4. Long-term debt Credit agreement On July 29, 2022, the Company, Great Lakes Dredge & Dock Company, LLC, NASDI Holdings, LLC, Great Lakes Environmental & Infrastructure Solutions, LLC, Great Lakes U.S. Fleet Management, LLC, and Drews Services LLC (collectively, the “Credit Parties”) entered into a second amended and restated revolving credit and security agreement (as amended, supplemented or otherwise modified from time to time, the “Amended Credit Agreement”) with certain financial institutions from time to time party thereto as lenders, PNC Bank, National Association, as Agent (the “Agent”), PNC Capital Markets, CIBC Bank USA, Bank of America, N.A. and Truist Securities, Inc., as Joint Lead Arrangers and Joint Bookrunners, CIBC Bank USA and Truist Bank as Co-Syndication Agents, Bank of America, N.A., as Documentation Agent and PNC Bank National Association, as Green Loan Coordinator. The Amended Credit Agreement amends and restates the prior Amended Credit Agreement dated as of May 3, 2019 by and among the financial institutions from time to time party thereto as lenders, the Agent and the Credit Parties party thereto such that the terms and conditions of the prior credit agreement have been subsumed and replaced in their entirety by the terms and conditions of the Amended Credit Agreement, including the amount available under the revolving credit facility. The terms of the Amended Credit Agreement are summarized below. The Amended Credit Agreement provides for a senior secured revolving credit facility in an aggregate principal amount of up to $ 300,000 of which the full amount is available for the issuance of standby letters of credit. The maximum borrowing capacity under the Amended Credit Agreement is determined by a formula and may fluctuate depending on the value of the collateral included in such formula at the time of determination. The Amended Credit Agreement also includes an increase option that will allow the Company to increase the senior secured revolving credit facility by an aggregate principal amount of up to $ 100,000 . This increase is subject to lenders providing incremental commitments for such increase, the Credit Parties having adequate borrowing capacity and provided that no default or event of default exists both before and after giving effect to such incremental commitment increase. The Amended Credit Agreement contains a green loan option where the Company can borrow at the lower interest rates described below so long as such funds are used to fund capital investments related to renewable energy and clean transportation projects and are consistent with green loan principles. The green loan option is subject to a $ 35,000 sublimit. The Amended Credit Agreement contains customary representations and affirmative and negative covenants, including a springing financial covenant that requires the Credit Parties to maintain a fixed charge coverage ratio (ratio of earnings before income taxes, depreciation and amortization, net interest expenses, non-cash charges and losses and certain other non-recurring charges, minus capital expenditures, income and franchise taxes, to net cash interest expense plus scheduled cash principal payments with respect to debt plus restricted payments paid in cash) of not less than 1.10 to 1.00. The springing financial covenant is triggered when the undrawn availability of the Amended Credit Agreement is less than 12.5 % of the maximum loan amount for five consecutive days. The Amended Credit Agreement also contains customary events of default (including non-payment of principal or interest on any material debt and breaches of covenants) as well as events of default relating to certain actions by the Company’s surety bonding providers. The obligations of the Credit Parties under the Amended Credit Agreement will be unconditionally guaranteed, on a joint and several basis, by each existing and subsequently acquired or formed material direct and indirect domestic subsidiary of the Company. Borrowings under the Amended Credit Agreement will be used to pay fees and expenses related to the Amended Credit Agreement, finance acquisitions permitted under the Amended Credit Agreement, finance ongoing working capital, for other general corporate purposes, and with respect to any green loan, fund capital investments related to renewable energy and clean transportation projects. The Amended Credit Agreement matures on the earlier of July 29, 2027 or the date that is ninety-one (91) days prior to the scheduled maturity date of the Company’s unsecured senior notes, which is currently June 1, 2029, if the Company fails to refinance its unsecured senior notes prior to their scheduled maturity date but only if such scheduled maturity date is prior to the maturity date of the Amended Credit Agreement. The obligations under the Amended Credit Agreement are secured by substantially all of the assets of the Credit Parties. The outstanding obligations thereunder shall be secured by a valid first priority perfected lien on substantially all of the U.S. flagged and located vessels of the Credit Parties and a valid perfected lien on all domestic accounts receivable and substantially all other assets of the Credit Parties, subject to the permitted liens and interests of other parties (including the Company’s surety bonding providers). Interest on the senior secured revolving credit facility of the Amended Credit Agreement is equal to either a Domestic Rate option or Secured Overnight Financing Rate (“SOFR”) option, at the Company’s election. As of July 29, 2022, (a) the Domestic Rate option is the highest of (1) the base commercial lending rate of PNC Bank, National Association, as publicly announced, (2) the sum of the overnight bank funding rate plus 0.5 % and (3) the sum of the daily simple SOFR plus 1.0 %, so long as a daily Simple SOFR is offered, ascertainable and not unlawful and (b) the SOFR option is the rate that applies for the applicable interest period determined by the Agent and based on the rate published by the CME Group Benchmark Administration Limited (or a successor administrator). After the date on which a borrowing base certificate is required to be delivered under Section 9.2 of the Amended Credit Agreement (commencing with the fiscal quarter ending September 30, 2022), the Domestic Rate option will be the Domestic Rate plus an interest margin ranging between 0.25 % and 0.75 % and the SOFR option will be the SOFR plus an interest margin ranging between 1.25 % and 1.75 %, in each case, depending on the quarterly average undrawn availability on the Amended Credit Agreement. Additionally, the Company will have an option to borrow at Green Loan Advance Rates, each of which will be 0.05 % lower than the corresponding applicable rate if the Company certifies that it will use such proceeds to invest in renewable energy and clean transportation projects and it complies with green loan principles. The Company had $ 60,000 and $ 90,000 borrowings on the revolver as of March 31, 2024 and December 31, 2023, respectively. There were $ 49,777 of letters of credit outstanding as of March 31, 2024 and December 31, 2023. The Company had $ 152,320 and $ 122,320 of availability under the Amended Credit Agreement as of March 31, 2024 and December 31, 2023, respectively. Availability is suppressed by $ 37,903 as of March 31, 2024 and December 31, 2023, as a result of certain limitations of borrowing related to reserves and compliance with the Company’s obligations set forth in the Amended Credit Agreement. Based on the aforementioned variable interest rate components, the weighted average interest rate on the revolver borrowings is 6.90 % as of March 31, 2024. See Note 9, “ Subsequent events ” for information regarding changes to the Company’s long-term debt that occurred after March 31, 2024. Senior Notes and subsidiary guarantors In May 2021, the Company sold $ 325,000 of unsecured 5.25 % Senior Notes (the “2029 Notes”) pursuant to a private offering. The 2029 Notes were priced to investors at par and will mature on June 1, 2029 . The Company used the net proceeds from the offering, together with cash on hand, to redeem all $ 325,000 aggregate principal amount of its outstanding 8.00 % Senior Notes due 2022. The Company’s obligations under these 2029 Notes are guaranteed by each of the Company’s existing and future 100 % owned domestic subsidiaries that are co-borrowers or guarantors under the Amended Credit Agreement. Such guarantees are full, unconditional and joint and several. The parent company issuer has no independent assets or operations and all non-guarantor subsidiaries have been determined to be minor. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair value measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has been established by GAAP that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance describes three levels of inputs that may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company is exposed to counterparty credit risk associated with non-performance of its various derivative instruments. The Company’s risk would be limited to any unrealized gains on current positions. To help mitigate this risk, the Company transacts only with counterparties that are rated as investment grade or higher. In addition, all counterparties are monitored on a continuous basis. The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. At times, the Company holds certain derivative contracts that it uses to manage commodity price risk or foreign currency risk. The Company does not hold or issue derivatives for speculative or trading purposes. The fair values of these financial instruments are summarized as follows: Fair Value at Fair Value Hierarchy Levels March 31, 2024 December 31, 2023 Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: Fuel hedge contracts 2 $ — $ 390 $ — $ 2,918 Foreign currency exchange hedge contracts 2 — 131 358 — Total derivatives $ — $ 521 $ 358 $ 2,918 Fuel hedge contracts The Company is exposed to certain market risks, primarily commodity price risk as it relates to diesel fuel purchase requirements, which occur in the normal course of business. The Company enters into heating oil commodity swap contracts to hedge the risk that fluctuations in diesel fuel prices could have an adverse impact on cash flows associated with its domestic dredging contracts. The Company’s goal is to hedge approximately 80 % of the eligible fuel requirements for work in dredging backlog. As of March 31, 2024, the Company was party to various swap arrangements to hedge the price of a portion of its diesel fuel purchase requirements for work in its backlog to be performed through September 2025. As of March 31, 2024, there were 11.7 million gallons remaining on these contracts representing forecasted domestic fuel purchases through September 2025. Under these swap agreements, the Company will pay fixed prices ranging from $ 2.35 to $ 2.90 per gallon. At March 31, 2024 and December 31, 2023, the fair value liabilities of the fuel hedge contracts were estimated to be $ 390 and $ 2,918 , respectively, and are recorded in accrued expenses in the condensed consolidated balance sheets. For fuel hedge contracts considered to be highly effective, the gains reclassified to earnings from changes in fair value of derivatives, net of cash settlements and taxes, for the three months ended March 31, 2024 were $ 122 . The remaining gains and losses included in accumulated other comprehensive loss at March 31, 2024 will be reclassified into earnings over the next eighteen months, corresponding to the period during which the hedged fuel is expected to be utilized. Changes in the fair value of fuel hedge contracts not considered highly effective are recorded as cost of contract revenues in the statement of operations. The fair values of fuel hedges are corroborated using inputs that are readily observable in public markets; therefore, the Company determines fair value of these fuel hedges using Level 2 inputs. Foreign currency exchange hedge contracts The Company is exposed to certain market risks, including foreign currency exchange rate risks related to the purchase of new vessel build materials in Europe. The Company enters into foreign currency exchange forward contracts to hedge the risk that fluctuations in the Euro in relation to the US Dollar could have an adverse impact on cash flows associated with its equipment builds. As of March 31, 2024, the Company was party to various foreign exchange forward contract arrangements to hedge the purchase of materials through November 2024. As of March 31, 2024, there were 8.6 million Euro of payments remaining on these hedge contracts. Under these hedge contracts, the Company will pay fixed prices ranging from $ 1.09 to $ 1.13 per Euro. As of March 31, 2024 . the fair value liability of foreign currency exchange hedge contracts was $ 131 and is recorded in accrued expenses in the condensed consolidated balance sheets. As of December 31, 2023, the fair value asset of foreign currency exchange hedge contracts was $ 358 and is recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. For foreign currency exchange hedge contracts considered to be highly effective, the losses reclassified to earnings from changes in fair value of derivatives, net of cash settlements and taxes, for the three months ended March 31, 2024 were $ 36 . The remaining gains and losses included in accumulated other comprehensive loss at March 31, 2024 will be reclassified into earnings over the next eight months, corresponding to the period during which the hedged currency is expected to be utilized. Changes in the fair value of foreign currency exchange hedge contracts not considered highly effective are recorded as other expenses in the statement of operations. The fair values of foreign currency exchange hedges are corroborated using inputs that are readily observable in public markets; therefore, the Company determines the fair value of these foreign currency exchange hedges using Level 2 inputs. Accumulated other comprehensive income (loss) Changes in the components of the accumulated balances of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2024 2023 Derivatives: Fuel Hedge Contracts Reclassification of derivative (gains) losses to earnings—net of tax ( 122 ) $ 370 Change in fair value of derivatives—net of tax 2,011 ( 1,906 ) Net change in cash flow derivative fuel hedges—net of tax $ 1,889 $ ( 1,536 ) Foreign Currency Exchange Hedge Contracts Reclassification of derivative gains to earnings—net of tax $ 36 $ ( 42 ) Change in fair value of derivatives—net of tax ( 637 ) 169 Net change in cash flow derivative foreign currency hedges—net of tax $ ( 601 ) $ 127 Total net change in cash flow derivative hedges - net of tax $ 1,288 $ ( 1,409 ) Adjustments reclassified from accumulated balances of other comprehensive income (loss) to earnings are as follows: Three Months Ended March 31, Statement of Operations Location 2024 2023 Derivatives: Fuel hedge contracts Costs of contract revenues $ ( 163 ) $ 495 Foreign currency exchange hedge contracts Other expense (income) 49 ( 52 ) Income tax (provision) benefit ( 29 ) 112 $ ( 85 ) $ 331 Other financial instruments The carrying value of financial instruments included in current assets and current liabilities approximates fair value due to the short-term maturities of these instruments. Based on timing of the cash flows and comparison to current market interest rates, the carrying value of the revolving credit agreement approximates fair value. In May 2021, the Company sold $ 325,000 of the 2029 Notes, which were outstanding at March 31, 2024 (see Note 4, Long-term debt). The fair value of the 2029 Notes was $ 289,153 at March 31, 2024, which is a Level 1 fair value measurement as the senior notes’ value was obtained using quoted prices in active markets. It is impracticable to determine the fair value of outstanding letters of credit or performance, bid and payment bonds due to uncertainties as to the amount and timing of future obligations, if any. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 6. Share-based compensation On May 5, 2021, the Company’s stockholders approved the Great Lakes Dredge & Dock Corporation 2021 Long-Term Incentive Plan (the “Incentive Plan”), which previously had been approved by the Company’s board of directors subject to stockholder approval. The Incentive Plan replaces the 2017 Long-Term Incentive Plan (the “Prior Plan”) and is largely based on the Prior Plan, but with updates to the available shares and other administrative changes. The Incentive Plan permits the granting of stock options, stock appreciation rights, restricted stock and restricted stock units to the Company’s employees and directors for up to 1.5 million shares of common stock, plus the number of shares that remained available for future grant under the Prior Plan as of the effectiveness of the Incentive Plan. The Prior Plan permitted the granting of stock options, stock appreciation rights, restricted stock and restricted stock units to the Company’s employees and directors for up to 3.3 million shares of common stock, plus an additional 1.7 million shares underlying equity awards issued under the 2007 Long-Term Incentive Plan. The Company may also issue share-based compensation as inducement awards to new employees upon approval of the Board of Directors and/or the applicable committee or committees thereof, as may be required. During the three months ended March 31, 2024, the Company granted 676 restricted stock units to certain employees. In addition, all non-employee directors on the Company’s board of directors are paid a portion of their board-related compensation in stock grants or restricted stock units. Compensation cost charged to expense related to share-based compensation arrangements was $ 756 and $ 237 for the three months ended March 31, 2024 and 2023 , respectively. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 7. Revenue At March 31, 2024, the Company had $ 879.4 million of remaining performance obligations, which the Company refers to as total dredging backlog. Total dredging backlog does not include $ 203.0 million of domestic low bids pending formal award and additional phases (“options”) pending on projects currently in dredging backlog at March 31, 2024 . Additionally, it does not include $ 44.6 million of performance obligations or $ 12.7 million of options pending award related to offshore wind contracts. Approximately 45 % of the Company’s dredging backlog at March 31, 2024 is expected to be completed during the remainder of 2024 , with the remaining balance expected to be completed between 2025 and 2026 . Revenue by category The following series of tables presents the Company's revenue disaggregated by several categories. Domestically, the Company’s work generally is performed in coastal waterways and deep-water ports. The U.S. dredging market consists of four primary types of work: capital, coastal protection, maintenance and rivers & lakes. Foreign projects typically involve capital work. The Company’s contract revenues by type of work, for the periods indicated, are as follows: Three Months Ended March 31, Revenues 2024 2023 Dredging: Capital—U.S. $ 69,900 $ 32,475 Coastal protection 63,926 51,305 Maintenance 64,411 71,928 Rivers & lakes 423 2,336 Total revenues $ 198,660 $ 158,044 The Company’s contract revenues by type of customer, for the periods indicated, are as follows: Three Months Ended March 31, Revenues 2024 2023 Dredging: Federal government $ 134,789 $ 142,162 State and local government 47,700 15,882 Private 16,171 — Total revenues $ 198,660 $ 158,044 Accounts receivable at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Completed contracts $ 6,157 $ 2,920 Contracts in progress 22,566 40,743 Retainage 12,123 11,511 40,846 55,174 Allowance for credit losses ( 364 ) ( 364 ) Total accounts receivable—net $ 40,482 $ 54,810 The components of contracts in progress at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Costs and earnings in excess of billings: Costs and earnings for contracts in progress $ 477,609 $ 206,330 Amounts billed ( 476,587 ) ( 196,520 ) Costs and earnings in excess of billings for contracts in progress 1,022 9,810 Costs and earnings in excess of billings for completed contracts 67,739 58,925 Total contract revenues in excess of billings $ 68,761 $ 68,735 Current portion of contract revenues in excess of billings $ 68,761 $ 68,735 Long-term contract revenues in excess of billings — — Total contract revenues in excess of billings $ 68,761 $ 68,735 Billings in excess of costs and earnings: Amounts billed $ ( 54,924 ) $ ( 258,948 ) Costs and earnings for contracts in progress 36,858 229,388 Total billings in excess of contract revenues $ ( 18,066 ) $ ( 29,560 ) At March 31, 2024 and December 31, 2023, costs to fulfill a contract with a customer recognized as an asset were $ 21,718 and $ 22,166 , respectively, and are recorded in other current assets and other noncurrent assets in the condensed consolidated balance sheets. These costs relate to pre-contract and pre-construction activities. During the three months ended March 31, 2024 and 2023, the Company amortized $ 4,419 and $ 3,666 , respectively, of pre-construction costs. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and contingencies Commercial commitments Performance and bid bonds are customarily required for dredging and marine construction projects. The Company has bonding agreements with Argonaut Insurance Company, ACE Holdings, Liberty Mutual Insurance Company and Philadelphia Indemnity Insurance Company, under which the Company can obtain performance, bid and payment bonds. The Company also has outstanding bonds with Travelers Casualty and Surety Company of America, Berkley Insurance Company and Zurich American Insurance Company. Bid bonds are generally obtained for a percentage of bid value and amounts outstanding typically range from $ 1,000 to $ 10,000 . At March 31, 2024, the Company had outstanding performance bonds with a notional amount of approximately $ 907,634 . The revenue value remaining in dredging backlog related to the outstanding performance bonds totaled approximately $ 381,216 . Certain foreign projects performed by the Company have warranty periods, typically spanning no more than one to three years beyond project completion, whereby the Company retains responsibility to maintain the project site to certain specifications during the warranty period. Generally, any potential liability of the Company is mitigated by insurance, shared responsibilities with consortium partners, and/or recourse to owner-provided specifications. Legal proceedings and other contingencies As is customary with negotiated contracts and modifications or claims to competitively bid contracts with the federal government, the government has the right to audit the books and records of the Company to ensure compliance with such contracts, modifications, or claims, and the applicable federal laws. The government has the ability to seek a price adjustment based on the results of such audit. Any such audits have not had, and are not expected to have, a material impact on the financial position, operations, or cash flows of the Company. Various legal actions, claims, assessments and other contingencies arising in the ordinary course of business are pending against the Company and certain of its subsidiaries. The Company will defend itself vigorously on all matters. These matters are subject to many uncertainties, and it is possible that some of these matters could ultimately be decided, resolved, or settled adversely to the Company. Although the Company is subject to various claims and legal actions that arise in the ordinary course of business, except as described below, the Company is not currently a party to any material legal proceedings or environmental claims. The Company records an accrual when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe any of its proceedings, individually or in the aggregate, would be expected to have a material effect on results of operations, cash flows or financial condition. Lease obligations The Company leases certain operating equipment and office facilities under long-term operating and financing leases expiring at various dates through 2030. The equipment leases contain renewal or purchase options that specify prices at the then fair value upon the expiration of the lease terms. The leases also contain default provisions that are triggered by an acceleration of debt maturity under the terms of the Company’s Amended Credit Agreement, or, in certain instances, cross default to other equipment leases and certain lease arrangements require that the Company maintain certain financial ratios comparable to those required by its Amended Credit Agreement. Additionally, the leases typically contain provisions whereby the Company indemnifies the lessors for the tax treatment attributable to such leases based on the tax rules in place at lease inception. The tax indemnifications do not have a contractual dollar limit. To date, no lessors have asserted any claims against the Company under these tax indemnification provisions. |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events Management has evaluated subsequent events through the date of issuance of these financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the consolidated financial statements other than those disclosed below. Second Lien Credit Agreement On April 24, 2024, the Credit Parties entered into a $ 150.0 million second lien credit agreement (as amended, supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”) with Guggenheim Corporate Funding, LLC, on behalf of one or more clients, as the lender, and Guggenheim Credit Services, LLC as Administrative Agent, Collateral Agent and Lead Arranger. The Company borrowed $ 100.0 under the Second Lien Credit Agreement on the closing date and has the option to borrow an additional $ 50.0 million for a period of 12 months following the closing date of the initial loan. The net proceeds from the Second Lien Credit Agreement were used to repay amounts outstanding under the Amended Credit Agreement, to pay fees and expenses associated with the Second Lien Credit Agreement and ABL Amendment described below and for general corporate purposes, including to fund upcoming new build payments. The Second Lien Credit Agreement matures on the earlier of April 24, 2029 and the date that is ninety-one (91) days prior to the scheduled maturity date of the Company’s 5.25 % Senior Notes due 2029. ABL Amendment On April 24, 2024, the Credit Parties, PNC Bank, National Association, as agent for the lenders, and certain financial institutions party thereto entered into an amendment to the ABL Credit Agreement (the “ABL Amendment”). The ABL Amendment (w) eliminates the Company’s ability to increase the commitments under the senior secured revolving credit facility (x) modifies the pricing of loans and undrawn commitments, (y) adds a minimum liquidity covenant, for so long as the Second Lien Credit Agreement has not been prepaid and terminated, that requires the Credit Parties to maintain consolidated liquidity of (a) $ 12.5 million at any time the fixed charge coverage ratio for the most recently ended four fiscal quarter period is less than 1.10 to 1.00 and (b) $ 50.0 million at any time the fixed charge coverage ratio for the most recently ended four fiscal quarters is greater than or equal to 1.10 to 1.00 and (z) makes certain other customary changes in connection with the Credit Parties’ entry into the Second Lien Credit Agreement. For further discussion of the Second Lien Credit Agreement and ABL Amendment see the Company’s current report on Form 8-K filed with the SEC on April 25, 2024. |
Loss per share (Tables)
Loss per share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computations for Basic and Diluted Loss Per Share | The computations for basic and diluted earnings (loss) per share are as follows: Three Months Ended March 31, 2024 2023 Net income (loss) $ 21,024 $ ( 3,231 ) Weighted-average common shares outstanding — basic 66,729 66,264 Effect of stock options and restricted stock units 765 — Weighted-average common shares outstanding — diluted 67,494 66,264 Earnings (loss) per share — basic $ 0.32 $ ( 0.05 ) Earnings (loss) per share — diluted $ 0.31 $ ( 0.05 ) |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued expenses at March 31, 2024 and December 31, 2023 were as follows: March 31, December 31, 2024 2023 Insurance $ 13,960 $ 12,521 Payroll and employee benefits 4,979 11,986 Contract reserves 2,148 3,964 Fuel hedge contracts 390 2,918 Interest 6,101 2,388 Income and other taxes 2,056 1,900 Finance lease liabilities 1,640 1,047 Other 1,210 637 Total accrued expenses $ 32,484 $ 37,361 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values of Financial Instruments and Nonfinancial Assets and Liabilities Measured at the Reporting Date | The fair values of these financial instruments are summarized as follows: Fair Value at Fair Value Hierarchy Levels March 31, 2024 December 31, 2023 Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: Fuel hedge contracts 2 $ — $ 390 $ — $ 2,918 Foreign currency exchange hedge contracts 2 — 131 358 — Total derivatives $ — $ 521 $ 358 $ 2,918 |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | Changes in the components of the accumulated balances of other comprehensive income (loss) are as follows: Three Months Ended March 31, 2024 2023 Derivatives: Fuel Hedge Contracts Reclassification of derivative (gains) losses to earnings—net of tax ( 122 ) $ 370 Change in fair value of derivatives—net of tax 2,011 ( 1,906 ) Net change in cash flow derivative fuel hedges—net of tax $ 1,889 $ ( 1,536 ) Foreign Currency Exchange Hedge Contracts Reclassification of derivative gains to earnings—net of tax $ 36 $ ( 42 ) Change in fair value of derivatives—net of tax ( 637 ) 169 Net change in cash flow derivative foreign currency hedges—net of tax $ ( 601 ) $ 127 Total net change in cash flow derivative hedges - net of tax $ 1,288 $ ( 1,409 ) |
Adjustments Reclassified from Accumulated Balances Other Comprehensive Income (Loss) to Earnings | Adjustments reclassified from accumulated balances of other comprehensive income (loss) to earnings are as follows: Three Months Ended March 31, Statement of Operations Location 2024 2023 Derivatives: Fuel hedge contracts Costs of contract revenues $ ( 163 ) $ 495 Foreign currency exchange hedge contracts Other expense (income) 49 ( 52 ) Income tax (provision) benefit ( 29 ) 112 $ ( 85 ) $ 331 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Revenues by Type of Work and Customer | The Company’s contract revenues by type of work, for the periods indicated, are as follows: Three Months Ended March 31, Revenues 2024 2023 Dredging: Capital—U.S. $ 69,900 $ 32,475 Coastal protection 63,926 51,305 Maintenance 64,411 71,928 Rivers & lakes 423 2,336 Total revenues $ 198,660 $ 158,044 The Company’s contract revenues by type of customer, for the periods indicated, are as follows: Three Months Ended March 31, Revenues 2024 2023 Dredging: Federal government $ 134,789 $ 142,162 State and local government 47,700 15,882 Private 16,171 — Total revenues $ 198,660 $ 158,044 |
Schedule of Accounts Receivable | Accounts receivable at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Completed contracts $ 6,157 $ 2,920 Contracts in progress 22,566 40,743 Retainage 12,123 11,511 40,846 55,174 Allowance for credit losses ( 364 ) ( 364 ) Total accounts receivable—net $ 40,482 $ 54,810 |
Components of Contracts in Progress | The components of contracts in progress at March 31, 2024 and December 31, 2023 are as follows: March 31, December 31, 2024 2023 Costs and earnings in excess of billings: Costs and earnings for contracts in progress $ 477,609 $ 206,330 Amounts billed ( 476,587 ) ( 196,520 ) Costs and earnings in excess of billings for contracts in progress 1,022 9,810 Costs and earnings in excess of billings for completed contracts 67,739 58,925 Total contract revenues in excess of billings $ 68,761 $ 68,735 Current portion of contract revenues in excess of billings $ 68,761 $ 68,735 Long-term contract revenues in excess of billings — — Total contract revenues in excess of billings $ 68,761 $ 68,735 Billings in excess of costs and earnings: Amounts billed $ ( 54,924 ) $ ( 258,948 ) Costs and earnings for contracts in progress 36,858 229,388 Total billings in excess of contract revenues $ ( 18,066 ) $ ( 29,560 ) |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - Segment | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Number of operating Segments | 1 | |
Number of reportable segments | 1 | |
Number of reportable segment with goodwill | 1 | |
Percentage of Fair Value of Reporting Unit in Excess of Carrying Value | 10% | |
Quantitative threshold | 5% | |
Percentage of income taxes paid (net of refunds received) | 5% |
Earnings (loss) per share - (Co
Earnings (loss) per share - (Computations for Basic and Diluted Earnings (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss) | $ 21,024 | $ (3,231) |
Weighted-average common shares outstanding — basic | 66,729 | 66,264 |
Effect of stock options and restricted stock units | 765 | |
Weighted-average common shares outstanding — diluted | 67,494 | 66,264 |
Earnings (loss) per share - basic | $ 0.32 | $ (0.05) |
Earnings (loss) per share - diluted | $ 0.31 | $ (0.05) |
Earnings (loss) per share - (Na
Earnings (loss) per share - (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Anti-dilutive Due to Period Loss [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted stock, excluded from computation of earnings per share | 765 | 246 |
Anti-dilutive Due to Treasury Stock Method [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options and restricted stock, excluded from computation of earnings per share | 240 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Insurance | $ 13,960 | $ 12,521 |
Payroll and employee benefits | 4,979 | 11,986 |
Contract reserves | 2,148 | 3,964 |
Fuel hedge contracts | 390 | 2,918 |
Interest | 6,101 | 2,388 |
Income and other taxes | 2,056 | 1,900 |
Finance lease liabilities | 1,640 | 1,047 |
Other | 1,210 | 637 |
Total accrued expenses | $ 32,484 | $ 37,361 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 29, 2022 | May 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 60,000,000 | $ 90,000,000 | ||
Letters of credit outstanding | 49,777,000 | 49,777,000 | ||
Letter of credit remaining borrowing capacity | 152,320,000 | 122,320,000 | ||
Line of credit facility suppressed capacity | $ 37,903,000 | $ 37,903,000 | ||
Minimum fixed charge coverage ratio per covenant | 1.10% | |||
Debt instrument covenant description | The springing financial covenant is triggered when the undrawn availability of the Amended Credit Agreement is less than 12.5% of the maximum loan amount for five consecutive days. | |||
Debt instrument, face amount | $ 325,000,000 | |||
Debt instruments weighted average interest rate | 6.90% | |||
2029 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 325,000,000 | |||
Debt instrument, interest rate, stated percentage | 5.25% | |||
Maturity date | Jun. 01, 2029 | |||
8.000% Senior Notes Due in 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 325,000,000 | |||
Debt instrument, interest rate, stated percentage | 8% | |||
Owned Domestic Subsidiaries Percent | 100% | |||
Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Daily Simple SOFR Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Green Loan Advance Rates [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.05% | |||
Maximum [Member] | Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.75% | |||
Maximum [Member] | Daily Simple SOFR Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Minimum [Member] | Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.25% | |||
Minimum [Member] | Daily Simple SOFR Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.25% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | |||
Line of credit facility optional increase capacity | $ 100,000,000 | |||
Maximum covenant percentage of undrawn availability of amended credit agreement | 12.50% | |||
Green Loan Option [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 35,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Values of Financial Instruments and Nonfinancial Assets and Liabilities Measured at the Reporting Date) (Details) - Level 2 [Member] - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 358 | |
Derivatives liabilities | $ 521 | 2,918 |
Fuel Hedge Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 390 | 2,918 |
Foreign Currency Exchange Hedge Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 358 | |
Derivatives liabilities | $ 131 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) € in Millions, gal in Millions | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) $ / gal € / shares gal | Mar. 31, 2023 USD ($) | Mar. 31, 2024 EUR (€) $ / gal € / shares | Dec. 31, 2023 USD ($) | May 31, 2021 USD ($) | |
Derivatives Fair Value [Line Items] | |||||
Debt instrument, face amount | $ 325,000,000 | ||||
Fair Value, Inputs, Level 1 [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fair value of debt | $ 289,153,000 | ||||
Fuel Hedge Contracts [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Derivative underlying hedge percent | 80% | ||||
Derivative, nonmonetary notional amount, volume | gal | 11.7 | ||||
Reclassification of derivative gain (losses) to earnings net of tax | $ 122,000 | $ (370,000) | |||
Fair value hedge liabilities | $ 390,000 | $ 2,918,000 | |||
Fuel Hedge Contracts [Member] | Minimum [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fixed price range | $ / gal | 2.35 | 2.35 | |||
Fuel Hedge Contracts [Member] | Maximum [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fixed price range | $ / gal | 2.9 | 2.9 | |||
Foreign Currency Exchange Hedge Contracts [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fair value hedge assets | $ 131,000 | $ 358,000 | |||
Reclassification of derivative gain (losses) to earnings net of tax | $ (36,000) | $ 42,000 | |||
Derivative notional amount | € | € 8.6 | ||||
Foreign Currency Exchange Hedge Contracts [Member] | Minimum [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fixed price range | € / shares | 1.09 | 1.09 | |||
Foreign Currency Exchange Hedge Contracts [Member] | Maximum [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Fixed price range | € / shares | 1.13 | 1.13 |
Fair Value Measurements (Change
Fair Value Measurements (Changes in Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Derivatives Fair Value [Line Items] | |||
Net change in cash flow derivative hedges—net of tax | [1] | $ 1,288 | $ (1,409) |
Fuel Hedge Contracts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Reclassification of derivative (gains) losses to earnings - net of tax | (122) | 370 | |
Change in fair value of derivatives—net of tax | 2,011 | (1,906) | |
Net change in cash flow derivative hedges—net of tax | 1,889 | (1,536) | |
Foreign Currency Exchange Hedge Contracts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Reclassification of derivative (gains) losses to earnings - net of tax | 36 | (42) | |
Change in fair value of derivatives—net of tax | (637) | 169 | |
Net change in cash flow derivative hedges—net of tax | $ (601) | $ 127 | |
[1] Net of income tax (provision) benefit of $ ( 435 ) and $ 476 for the three months ended March 31, 2024 and 2023, respectively . |
Fair Value Measurements (Adjust
Fair Value Measurements (Adjustments Reclassified from Accumulated Balances Other Comprehensive Income (Loss) to Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||
Costs of contract revenues | $ 153,086 | $ 145,909 |
Other expense (income) | 425 | 227 |
Income tax (provision) benefit | (6,989) | 791 |
Net income (loss) | 21,024 | (3,231) |
Accumulated Gain Loss Net Cash Flow Hedge Parent [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Income tax (provision) benefit | (29) | 112 |
Net income (loss) | (85) | 331 |
Fuel Hedge Contracts [Member] | Accumulated Gain Loss Net Cash Flow Hedge Parent [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Costs of contract revenues | (163) | 495 |
Foreign Currency Exchange Hedge Contracts [Member] | Accumulated Gain Loss Net Cash Flow Hedge Parent [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Other expense (income) | $ 49 | $ (52) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
May 11, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | May 05, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units | 676 | |||
Share-based compensation expense | $ 756 | $ 237 | ||
Employees and Directors [Member] | 2017 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 3,300 | 1,500 | ||
Employees and Directors [Member] | 2007 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Underlying equity awards issued | 1,700 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue From Contract With Customer [Line Items] | |||
Revenue, remaining performance obligation | $ 879,400 | ||
Performance obligations exclude from dredging backlog | 44,600 | ||
Performance obligations domestic low bids pending formal award and additional phases | $ 203,000 | ||
Percentage of performance obligation to be recognized as revenue | 45% | ||
Performance obligation, expected to be recognized as revenue year | 2024 | ||
Remaining performance obligation, expected timing of satisfaction, year | 2025 2026 | ||
Amortization on pre-construction costs | $ 4,419 | $ 3,666 | |
Options pending award related to offshore wind contracts | 12,700 | ||
Other Current and Noncurrent Assets [Member] | |||
Revenue From Contract With Customer [Line Items] | |||
Costs to fulfill a contract with customer recognized as an asset | $ 21,718 | $ 22,166 |
Revenue (Summary of Type of Wor
Revenue (Summary of Type of Work, Contract Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 198,660 | $ 158,044 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 198,660 | 158,044 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Capital-U.S. [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 69,900 | 32,475 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Coastal Protection [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 63,926 | 51,305 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Maintenance [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 64,411 | 71,928 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Rivers & Lakes [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 423 | $ 2,336 |
Revenue (Summary of Type of Cus
Revenue (Summary of Type of Customer, Contract Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 198,660 | $ 158,044 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 198,660 | 158,044 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | Federal Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 134,789 | 142,162 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | State and Local Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 47,700 | $ 15,882 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | Private [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 16,171 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Completed contracts | $ 6,157 | $ 2,920 |
Contracts in progress | 22,566 | 40,743 |
Retainage | 12,123 | 11,511 |
Accounts receivable, gross | 40,846 | 55,174 |
Allowance for credit losses | (364) | (364) |
Total accounts receivable—net | $ 40,482 | $ 54,810 |
Revenue (Components of Contract
Revenue (Components of Contracts in Progress) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings in excess of billings for contracts in progress | $ 1,022 | $ 9,810 |
Costs and earnings in excess of billings for completed contracts | 67,739 | 58,925 |
Total contract revenues in excess of billings | 68,761 | 68,735 |
Current portion of contract revenues in excess of billings | 68,761 | 68,735 |
Total billings in excess of contract revenues | (18,066) | (29,560) |
Costs And Earnings In Excess Of Billings [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings for contracts in progress | 477,609 | 206,330 |
Amounts billed | (476,587) | (196,520) |
Billings In Excess Of Costs And Earnings [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings for contracts in progress | 36,858 | 229,388 |
Amounts billed | $ (54,924) | $ (258,948) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments And Contingencies [Line Items] | |
Outstanding performance bonds | $ 907,634,000 |
Revenue value remaining from outstanding performance bonds | 381,216,000 |
Minimum [Member] | |
Commitments And Contingencies [Line Items] | |
Bids bond range | $ 1,000,000 |
Warranty periods | 1 year |
Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Bids bond range | $ 10,000,000 |
Warranty periods | 3 years |
Subsequent events (Narrative) (
Subsequent events (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Apr. 24, 2024 | Jul. 29, 2022 | May 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Short-Term Debt [Line Items] | |||||
Letter of credit remaining borrowing capacity | $ 152,320 | $ 122,320 | |||
Minimum fixed charge coverage ratio per covenant | 1.10% | ||||
Second Lien Credit Agreement [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt | $ 150,000 | ||||
Maturity date | Apr. 24, 2029 | ||||
Proceeds from second lien credit agreement | $ 100,000 | ||||
Letter of credit remaining borrowing capacity | $ 50,000 | ||||
Line of credit, remaining borrowing capacity, period | 12 months | ||||
ABL Amendment [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Maximum fixed charge coverage ratio per covenant | 1.10% | ||||
Minimum fixed charge coverage ratio per covenant | 1.10% | ||||
ABL Amendment [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Amount of liquidity | $ 12,500 | ||||
ABL Amendment [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Amount of liquidity | $ 50,000 | ||||
2029 Notes [Member] | |||||
Short-Term Debt [Line Items] | |||||
Maturity date | Jun. 01, 2029 | ||||
Debt instrument, interest rate, stated percentage | 5.25% | ||||
2029 Notes [Member] | Second Lien Credit Agreement [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.25% |