Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 | Large 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 | 66,083,310 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 75,420 | $ 145,459 |
Accounts receivable—net | 69,325 | 82,953 |
Contract revenues in excess of billings | 62,615 | 39,844 |
Inventories | 31,132 | 30,760 |
Prepaid expenses and other current assets | 44,628 | 28,416 |
Total current assets | 283,120 | 327,432 |
PROPERTY AND EQUIPMENT—Net | 495,220 | 455,102 |
OPERATING LEASE ASSETS | 77,449 | 62,233 |
GOODWILL | 76,576 | 76,576 |
INVENTORIES—Noncurrent | 73,205 | 65,049 |
OTHER | 9,580 | 11,278 |
TOTAL | 1,015,150 | 997,670 |
LIABILITIES AND EQUITY | ||
Accounts payable | 95,793 | 85,566 |
Accrued expenses | 24,717 | 37,626 |
Operating lease liabilities | 18,441 | 16,729 |
Billings in excess of contract revenues | 2,614 | 14,814 |
Total current liabilities | 141,565 | 154,735 |
LONG-TERM DEBT | 321,246 | 320,971 |
OPERATING LEASE LIABILITIES—Noncurrent | 59,655 | 45,986 |
DEFERRED INCOME TAXES | 72,908 | 68,497 |
OTHER | 7,588 | 8,484 |
Total liabilities | 602,962 | 598,673 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
EQUITY: | ||
Common stock—$.0001 par value; 90,000 authorized, 66,083 and 65,746 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively. | 6 | 6 |
Additional paid-in capital | 308,790 | 308,482 |
Retained earnings | 97,393 | 90,369 |
Accumulated other comprehensive income | 5,999 | 140 |
Total equity | 412,188 | 398,997 |
TOTAL | $ 1,015,150 | $ 997,670 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 66,083,000 | 65,746,000 |
Common stock, shares outstanding | 66,083,000 | 65,746,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Contract revenues | $ 149,428 | $ 169,914 | $ 343,777 | $ 347,547 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Costs of contract revenues | $ 138,947 | $ 146,992 | $ 300,241 | $ 291,549 |
Cost, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Gross profit | $ 10,481 | $ 22,922 | $ 43,536 | $ 55,998 |
General and administrative expenses | 10,820 | 14,224 | 25,424 | 30,546 |
(Gain) loss on sale of assets—net | 3 | (138) | (318) | (32) |
Operating income (loss) | (342) | 8,836 | 18,430 | 25,484 |
Interest expense—net | (3,424) | (6,657) | (7,449) | (13,243) |
Other income (expense) | (1,120) | 755 | (1,525) | 896 |
Income (loss) before income taxes | (4,886) | 2,934 | 9,456 | 13,137 |
Income tax (provision) benefit | 853 | (829) | (2,432) | (2,218) |
Net income (loss) | $ (4,033) | $ 2,105 | $ 7,024 | $ 10,919 |
Basic earnings (loss) per share | $ (0.06) | $ 0.03 | $ 0.11 | $ 0.17 |
Basic weighted average shares | 66,071 | 65,646 | 65,959 | 65,458 |
Diluted earnings (loss) per share | $ (0.06) | $ 0.03 | $ 0.11 | $ 0.16 |
Diluted weighted average shares | 66,071 | 66,137 | 66,480 | 66,187 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (4,033) | $ 2,105 | $ 7,024 | $ 10,919 | |
Net change in cash flow derivative hedges—net of tax | [1] | (376) | 404 | 5,859 | 2,290 |
Comprehensive income (loss) | $ (4,409) | $ 2,509 | $ 12,883 | $ 13,209 | |
[1]Net of income tax (provision) benefit of $127 and $(136) for the three months ended June 30, 2022 and 2021, respectively. Net of income tax provision of $(1,979) and $(773) for the six months ended June 30, 2022 and 2021, respectively. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) on derivatives, tax | $ 127 | $ (136) | $ (1,979) | $ (773) |
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 (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE - value at Dec. 31, 2020 | $ 346,668 | $ 6 | $ 304,757 | $ 40,937 | $ 968 |
BALANCE - shares at Dec. 31, 2020 | 65,023 | ||||
Share-based compensation, value | 2,564 | 2,564 | |||
Share-based compensation, shares | 73 | ||||
Vesting of restricted stock units and impact of shares withheld for taxes, value | (3,784) | (3,784) | |||
Vesting of restricted stock units and impact of shares withheld for taxes, shares | 410 | ||||
Exercise of stock options and purchases from employee stock purchase plan, value | 1,440 | 1,440 | |||
Exercise of stock options and purchases from employee stock purchase plan, shares | 148 | ||||
Net income (loss) | 10,919 | 10,919 | |||
Other comprehensive income (loss) net of tax | 2,290 | 2,290 | |||
BALANCE - value at Jun. 30, 2021 | 360,097 | $ 6 | 304,977 | 51,856 | 3,258 |
BALANCE - shares at Jun. 30, 2021 | 65,654 | ||||
BALANCE - value at Mar. 31, 2021 | 356,610 | $ 6 | 303,999 | 49,751 | 2,854 |
BALANCE - shares at Mar. 31, 2021 | 65,620 | ||||
Share-based compensation, value | 798 | 798 | |||
Share-based compensation, shares | 12 | ||||
Exercise of stock options and purchases from employee stock purchase plan, value | 180 | 180 | |||
Exercise of stock options and purchases from employee stock purchase plan, shares | 22 | ||||
Net income (loss) | 2,105 | 2,105 | |||
Other comprehensive income (loss) net of tax | 404 | 404 | |||
BALANCE - value at Jun. 30, 2021 | 360,097 | $ 6 | 304,977 | 51,856 | 3,258 |
BALANCE - shares at Jun. 30, 2021 | 65,654 | ||||
BALANCE - value at Dec. 31, 2021 | 398,997 | $ 6 | 308,482 | 90,369 | 140 |
BALANCE - shares at Dec. 31, 2021 | 65,746 | ||||
Share-based compensation, value | 1,552 | 1,552 | |||
Share-based compensation, shares | 16 | ||||
Vesting of restricted stock units and impact of shares withheld for taxes, value | (1,827) | (1,827) | |||
Vesting of restricted stock units and impact of shares withheld for taxes, shares | 212 | ||||
Exercise of stock options and purchases from employee stock purchase plan, value | 583 | 583 | |||
Exercise of stock options and purchases from employee stock purchase plan, shares | 109 | ||||
Net income (loss) | 7,024 | 7,024 | |||
Other comprehensive income (loss) net of tax | 5,859 | 5,859 | |||
BALANCE - value at Jun. 30, 2022 | 412,188 | $ 6 | 308,790 | 97,393 | 5,999 |
BALANCE - shares at Jun. 30, 2022 | 66,083 | ||||
BALANCE - value at Mar. 31, 2022 | 415,404 | $ 6 | 307,597 | 101,426 | 6,375 |
BALANCE - shares at Mar. 31, 2022 | 66,046 | ||||
Share-based compensation, value | 1,000 | 1,000 | |||
Share-based compensation, shares | 7 | ||||
Exercise of stock options and purchases from employee stock purchase plan, value | 193 | 193 | |||
Exercise of stock options and purchases from employee stock purchase plan, shares | 30 | ||||
Net income (loss) | (4,033) | (4,033) | |||
Other comprehensive income (loss) net of tax | (376) | (376) | |||
BALANCE - value at Jun. 30, 2022 | $ 412,188 | $ 6 | $ 308,790 | $ 97,393 | $ 5,999 |
BALANCE - shares at Jun. 30, 2022 | 66,083 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net income | $ 7,024 | $ 10,919 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Depreciation and amortization | 22,930 | 20,681 |
Deferred income taxes | 2,432 | 2,218 |
Gain on sale of assets | (318) | (32) |
Amortization of deferred financing fees | 634 | 1,715 |
Share-based compensation expense | 1,552 | 2,564 |
Changes in assets and liabilities: | ||
Accounts receivable | 13,628 | 3,249 |
Contract revenues in excess of billings | (22,771) | (2,450) |
Inventories | (8,528) | (1,233) |
Prepaid expenses and other current assets | (8,052) | 4,131 |
Accounts payable and accrued expenses | 3,906 | (2,668) |
Billings in excess of contract revenues | (12,200) | (3,775) |
Other noncurrent assets and liabilities | 609 | 282 |
Cash provided by operating activities | 846 | 35,601 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (71,701) | (64,828) |
Proceeds from dispositions of property and equipment | 2,060 | 223 |
Cash used in investing activities | (69,641) | (64,605) |
FINANCING ACTIVITIES: | ||
Deferred financing fees | (4,395) | |
Taxes paid on settlement of vested share awards | (1,827) | (3,784) |
Exercise of options and purchases from employee stock plans | 583 | 1,440 |
Cash used in financing activities | (1,244) | (6,739) |
Net decrease in cash, cash equivalents and restricted cash | (70,039) | (35,743) |
Cash, cash equivalents and restricted cash at beginning of period | 147,459 | 216,510 |
Cash, cash equivalents and restricted cash at end of period | 77,420 | 180,767 |
Cash and cash equivalents | 75,420 | 180,767 |
Restricted cash included in other long-term assets | 2,000 | |
Supplemental Cash Flow Information | ||
Cash paid for interest | 8,808 | 13,984 |
Cash paid for income taxes | 1,239 | 332 |
Non-cash Investing and Financing Activities | ||
Property and equipment purchased but not yet paid | $ 13,921 | $ 11,139 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. 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 June 30, 2022 and December 31, 2021, and its results of operations for the three and six months ended June 30, 2022 and 2021 and cash flows for the six months ended June 30, 2022 and 2021 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 annual test of impairment as of July 1, 2021 with no indication of impairment as of the test date. The Company will perform its next scheduled annual test of goodwill in the third quarter of 2022. The condensed consolidated results of operations and comprehensive income for the interim periods presented herein are not necessarily indicative of the results to be expected for the full year. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 2. Earnings per share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share is computed similar to basic earnings 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 per share are as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) $ (4,033 ) $ 2,105 $ 7,024 $ 10,919 Weighted-average common shares outstanding — basic 66,071 65,646 65,959 65,458 Effect of stock options and restricted stock units - 491 521 729 Weighted-average common shares outstanding — diluted 66,071 66,137 66,480 66,187 Earnings (loss) per share — basic $ (0.06 ) $ 0.03 $ 0.11 $ 0.17 Earnings (loss) per share — diluted $ (0.06 ) $ 0.03 $ 0.11 $ 0.16 For the three months ended June 30, 2022, 447 stock options and restricted stock units were excluded from the diluted weighted average common shares outstanding because the Company incurred a loss for quarter ended June 30, 2022. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 3 . Accrued expenses Accrued expenses at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 Insurance $ 12,193 $ 12,821 Other 5,598 6,427 Payroll and employee benefits 4,166 13,533 Interest 1,459 1,460 Income and other taxes 1,301 2,941 Contract reserves — 444 Total accrued expenses $ 24,717 $ 37,626 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 4 . Long-term debt Credit agreement As of June 30, 2022 and December 31, 2021, the Company had no borrowings outstanding under our $200,000 amended and restated revolving credit and security agreement (as amended the “Amended Credit Agreement”). There were $21,527 and $25,127 of letters of credit outstanding and $178,076 and $174,546 of availability under the Amended Credit Agreement as of June 30, 2022 and December 31, 2021, respectively. The availability under the Amended Credit Agreement is suppressed by $397 and $327, respectively, as of June 30, 2022 and December 31, 2021, as a result of certain limitations set forth in the Amended 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 with the Company, 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 The New 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 New 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 New 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 New 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 New 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 more than 1.10 to 1.00. The New 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 New 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 New Amended Credit Agreement will be used to pay fees and expenses related to the New Amended Credit Agreement, finance acquisitions permitted under the New 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 New 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 New Amended Credit Agreement. The obligations under the New 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 New 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 New 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 New 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. 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 8.000% Senior Notes due 2022 (the “8% Notes”). 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 New 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 | 6 Months Ended |
Jun. 30, 2022 | |
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 and foreign currency exchange rate 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 June 30, 2022 December 31, 2021 Levels Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: Fuel Hedge Contracts 2 $ 8,710 $ - $ 630 $ - Foreign Currency Exchange Hedge Contracts 2 81 322 - - Total derivatives $ 8,791 $ 322 $ 630 $ - Fuel hedge contracts The Company is exposed to certain market risks, including 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 typical goal is to hedge approximately 80% of the eligible fuel requirements for work in domestic backlog. As of June 30, 2022, the Company was party to various swap arrangements to hedge a portion of the price of its diesel fuel purchase requirements for work in its backlog to be performed through June 2023. As of June 30, 2022, there were 6.2 million gallons remaining on these contracts representing forecasted domestic fuel purchases through February 2023. Under these swap agreements, the Company will pay fixed prices ranging from $1.91 to $3.95 per gallon. At June 30, 2022 and December 31, 2021, the fair value asset of the fuel hedge contracts were estimated to be $8,710 and $630, respectively, and are recorded in prepaid expenses and other current assets. 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 six months ended June 30, 2022 were $7,200. The remaining gains and losses included in accumulated other comprehensive income (loss) at June 30, 2022 will be reclassified into earnings over the next twelve 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 T he 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 Dollar could have an adverse impact on cash flows associated with its equipment builds. As of June 30, 2022, the Company was party to various foreign exchange forward contract arrangements to hedge the purchase of materials through November 2024. As of June 30, 2022, there were 17.5 million Euro of payments remaining on these hedge contracts which is the full value of the hedge contacts through November 2024 as the first settlement will not occur until the third quarter of 2022. Under these hedge contracts, the Company will pay fixed prices ranging from $1.06 to $1.13 per Euro. As of June 30, 2022, the fair value asset of the foreign currency exchange hedge contracts was estimated to be $81 and is recorded in prepaid expenses and other current assets. As of June 30, 2022, the fair value liability of foreign currency exchange hedge contracts was estimated to be $322 and is recorded in accrued liabilities. There were no foreign currency exchange hedge contracts as of December 31, 2021. For foreign currency exchange 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 six months ended June 30, 2022 were $0. The remaining gains and losses included in accumulated other comprehensive income (loss) at June 30, 2022 will be reclassified into earnings over the next twenty-nine 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 Six Months Ended June 30, June 30, 2022 2021 2022 2021 Derivatives: Fuel Hedge Contracts Reclassification of derivative gains to earnings—net of tax $ (4,719 ) $ (1,878 ) $ (7,200 ) $ (3,404 ) Change in fair value of derivatives—net of tax 4,584 2,282 13,300 5,694 Net change in cash flow derivative fuel hedges—net of tax $ (135 ) $ 404 $ 6,100 $ 2,290 Foreign Currency Exchange Hedge Contracts Change in fair value of derivatives—net of tax (241 ) - (241 ) - Net change in cash flow derivative foreign currency hedges—net of tax $ (241 ) $ - $ (241 ) $ - Total net change in cash flow derivative hedges—net of tax $ (376 ) $ 404 $ 5,859 $ 2,290 Adjustments reclassified from accumulated balances of other comprehensive income (loss) to earnings are as follows: Three Months Ended Six Months Ended June 30, June 30, Statement of Operations Location 2022 2021 2022 2021 Derivatives: Fuel Hedge Contracts Costs of contract revenues $ (6,313 ) $ (2,513 ) $ (9,632 ) $ (4,554 ) Income tax provision (1,594 ) (635 ) (2,432 ) (1,150 ) $ (4,719 ) $ (1,878 ) $ (7,200 ) $ (3,404 ) 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 our revolving credit agreement approximates fair value. In May 2021, the Company sold $325,000 of the 2029 Notes, which were outstanding at June 30, 2022 (see Note 4, Long-term debt). The 2029 Notes are senior unsecured obligations of the Company and its subsidiaries that guarantee the 2029 Notes. The fair value of the 2029 Notes was $281,180 at June 30, 2022, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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. During the six months ended June 30, 2022, the Company granted 603 thousand 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 $1,000 and $798 for the three months ended June 30, 2022 and 2021, respectively. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 7 . Revenue At June 30, 2022, the Company had $373,801 of remaining performance obligations, which the Company refers to as total backlog. Approximately 73% of the Company’s backlog is expected to be completed in 2022 with the remaining balance expected to be completed in 2023. Revenue by category The following series of tables presents our 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. The Company’s contract revenues by type of work, for the periods indicated, are as follows: Three Months Ended Six Months Ended June 30, June 30, Revenues 2022 2021 2022 2021 Dredging: Capital—U.S. $ 89,693 $ 79,399 $ 190,704 $ 157,005 Capital—foreign — 1,613 — 6,322 Coastal protection 45,119 46,631 117,036 93,262 Maintenance 12,648 37,278 32,460 82,579 Rivers & lakes 1,968 4,993 3,577 8,379 Total revenues $ 149,428 $ 169,914 $ 343,777 $ 347,547 The Company’s contract revenues by type of customer, for the periods indicated, are as follows: Three Months Ended Six Months Ended June 30, June 30, Revenues 2022 2021 2022 2021 Dredging: Federal government $ 95,360 $ 127,331 $ 262,934 $ 258,063 State and local government 50,922 37,069 75,523 71,844 Private 3,146 3,901 5,320 11,318 Foreign — 1,613 — 6,322 Total revenues $ 149,428 $ 169,914 $ 343,777 $ 347,547 Accounts receivable at June 30, 2022 and December 31, 2021 are as follows: June 30, December 31, 2022 2021 Completed contracts $ 34,030 $ 10,612 Contracts in progress 31,211 65,415 Retainage 4,648 7,490 69,889 83,517 Allowance for doubtful accounts (564 ) (564 ) Total accounts receivable—net $ 69,325 $ 82,953 The components of contracts in progress at June 30, 2022 and December 31, 2021 are as follows: June 30, December 31, 2022 2021 Costs and earnings in excess of billings: Costs and earnings for contracts in progress $ 277,373 $ 270,998 Amounts billed (239,568 ) (240,941 ) Costs and earnings in excess of billings for contracts in progress 37,805 30,057 Costs and earnings in excess of billings for completed contracts 25,917 10,894 Total contract revenues in excess of billings $ 63,722 $ 40,951 Current portion of contract revenues in excess of billings $ 62,615 $ 39,844 Long-term contract revenues in excess of billings 1,107 1,107 Total contract revenues in excess of billings $ 63,722 $ 40,951 Billings in excess of costs and earnings: Amounts billed $ (155,455 ) $ (224,381 ) Costs and earnings for contracts in progress 152,841 209,567 Total billings in excess of contract revenues $ (2,614 ) $ (14,814 ) In the three and six months ending June 30, 2022, a revision to the estimated gross profit percentage of a project was recognized due to a positive settlement of a claim from the recently completed project resulting in a cumulative net impact on the project margin, which increased gross profit by $5,638 and $17,362, respectively. At June 30, 2022 and December 31, 2021, costs to fulfill a contract with a customer recognized as an asset were $4,492 and $5,652, respectively, and are recorded in other current assets and other noncurrent assets. These costs relate to pre-contract and pre-construction activities. During the three and six months ended June 30, 2022 and 2021, the Company amortized $2,061 and $5,909 and $4,452 and $11,756, respectively, of pre-construction costs. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
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, Berkley Insurance Company, Chubb Surety and Liberty Mutual Insurance Company, under which the Company can obtain performance, bid and payment bonds. The Company also has outstanding bonds with Travelers Casualty, Surety Company of America 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 June 30, 2022, the Company had outstanding performance bonds with a notional amount of approximately $976,656. The revenue value remaining in backlog totaled approximately $373,801. 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 these proceedings, individually or in the aggregate, would be expected to have a material effect on results of operations, cash flows or financial condition. On April 23, 2014, the Company completed the sale of NASDI, LLC (“NASDI”) and Yankee Environmental Services, LLC (“Yankee”), which together comprised the Company’s historical demolition business, to a privately-owned demolition company. Under the terms of the agreement, the Company received cash of $5,309 and retained the right to receive additional proceeds based upon future collections of outstanding accounts receivable and work in process existing at the date of close. On January 14, 2015, the Company and its subsidiary, NASDI Holdings, LLC, brought an action in the Delaware Court of Chancery to enforce the terms of the Company's agreement to sell NASDI and Yankee. The Company seeks specific performance of the buyer’s obligation to collect and to remit the additional proceeds, and other related relief. Defendants have filed counterclaims alleging that the Company misrepresented the quality of its contracts and receivables prior to the sale. The Company denies the defendants’ allegations. In addition, the Company has been granted a judgment in the amount of $21,934 based upon the buyer’s default of its obligations to indemnify the Company for losses resulting from failure to perform in accordance with terms of surety performance bond. The defendants filed a notice of appeal from that judgment. On April 11, 2022, the Supreme Court of Delaware issued its decision denying that appeal and affirming the Chancery Court judgment. The Company continues to aggressively pursue collection from the buyer on outstanding amounts owed under the sale and the indemnification. An estimate of a range of potential gains or losses relating to these matters cannot reasonably be made. On April 22, 2021, the U.S. Attorney’s Office for the Eastern District of Louisiana filed a bill of information against the Company charging the Company with a negligent discharge violation of the Clean Water Act (the “CWA”) arising from a September 2016 oil spill. The spill occurred during the Company’s Cheniere Ronquille project and resulted in the discharge of around one hundred sixty barrels of crude oil in Bay Long, Louisiana. The Company cooperated with the U.S. Attorney’s Office and other relevant agencies in their investigation of the oil spill and on June 15, 2021, the Company pleaded guilty to the misdemeanor violation alleged in the bill of information and agreed to pay a fine of $1,000. In the first quarter of 2022, the Company entered into a settlement of a civil suit arising from the same matter which was primarily covered by its insurance policies. On June 14, 2022, the Company was sentenced in the criminal matter, and paid a fine of $1,000. The Company had previously deposited $2,000 into the registry of the Court to pay any ordered restitution, however, the Company was not ordered to pay any restitution and the deposited funds, less the amount of the fine and administrative costs, were returned to the Company. The CWA provides that, upon an entity’s conviction of certain offenses, the entity is automatically disqualified from eligibility to receive certain federal contracts, if it will perform any part of the awarded contract at the facility giving rise to the conviction (called the “violating facility”). Accordingly, the Court’s entry of the Company’s conviction under the CWA resulted in the automatic disqualification of the Company’s eligibility to be awarded contracts at the violating facility, which the federal suspension and debarment officer (the “SDO”) determined to be the Company’s field office for the Cheniere Ronquille project, located at 28465 Hwy 23, Port Sulphur, Louisiana. The disqualification was imposed on June 23, 2022 and only applied to the Port Sulphur facility and not the Company as a whole. On the same day, June 23, 2022, the SDO issued a decision reinstating the Company’s Port Sulphur facility based on the SDO’s determination that the Company had addressed the causes of the CWA violation. This matter is now fully resolved and will not have any future impact on the Company’s business, financial condition or results of operations. Lease obligations The Company leases certain operating equipment and office facilities under long-term operating 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 New 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 New 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computations for Basic and Diluted Earnings Per Share | The computations for basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income (loss) $ (4,033 ) $ 2,105 $ 7,024 $ 10,919 Weighted-average common shares outstanding — basic 66,071 65,646 65,959 65,458 Effect of stock options and restricted stock units - 491 521 729 Weighted-average common shares outstanding — diluted 66,071 66,137 66,480 66,187 Earnings (loss) per share — basic $ (0.06 ) $ 0.03 $ 0.11 $ 0.17 Earnings (loss) per share — diluted $ (0.06 ) $ 0.03 $ 0.11 $ 0.16 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses at June 30, 2022 and December 31, 2021 were as follows: June 30, December 31, 2022 2021 Insurance $ 12,193 $ 12,821 Other 5,598 6,427 Payroll and employee benefits 4,166 13,533 Interest 1,459 1,460 Income and other taxes 1,301 2,941 Contract reserves — 444 Total accrued expenses $ 24,717 $ 37,626 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Levels Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: Fuel Hedge Contracts 2 $ 8,710 $ - $ 630 $ - Foreign Currency Exchange Hedge Contracts 2 81 322 - - Total derivatives $ 8,791 $ 322 $ 630 $ - |
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 Six Months Ended June 30, June 30, 2022 2021 2022 2021 Derivatives: Fuel Hedge Contracts Reclassification of derivative gains to earnings—net of tax $ (4,719 ) $ (1,878 ) $ (7,200 ) $ (3,404 ) Change in fair value of derivatives—net of tax 4,584 2,282 13,300 5,694 Net change in cash flow derivative fuel hedges—net of tax $ (135 ) $ 404 $ 6,100 $ 2,290 Foreign Currency Exchange Hedge Contracts Change in fair value of derivatives—net of tax (241 ) - (241 ) - Net change in cash flow derivative foreign currency hedges—net of tax $ (241 ) $ - $ (241 ) $ - Total net change in cash flow derivative hedges—net of tax $ (376 ) $ 404 $ 5,859 $ 2,290 |
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 Six Months Ended June 30, June 30, Statement of Operations Location 2022 2021 2022 2021 Derivatives: Fuel Hedge Contracts Costs of contract revenues $ (6,313 ) $ (2,513 ) $ (9,632 ) $ (4,554 ) Income tax provision (1,594 ) (635 ) (2,432 ) (1,150 ) $ (4,719 ) $ (1,878 ) $ (7,200 ) $ (3,404 ) |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Six Months Ended June 30, June 30, Revenues 2022 2021 2022 2021 Dredging: Capital—U.S. $ 89,693 $ 79,399 $ 190,704 $ 157,005 Capital—foreign — 1,613 — 6,322 Coastal protection 45,119 46,631 117,036 93,262 Maintenance 12,648 37,278 32,460 82,579 Rivers & lakes 1,968 4,993 3,577 8,379 Total revenues $ 149,428 $ 169,914 $ 343,777 $ 347,547 The Company’s contract revenues by type of customer, for the periods indicated, are as follows: Three Months Ended Six Months Ended June 30, June 30, Revenues 2022 2021 2022 2021 Dredging: Federal government $ 95,360 $ 127,331 $ 262,934 $ 258,063 State and local government 50,922 37,069 75,523 71,844 Private 3,146 3,901 5,320 11,318 Foreign — 1,613 — 6,322 Total revenues $ 149,428 $ 169,914 $ 343,777 $ 347,547 |
Schedule of Accounts Receivable | Accounts receivable at June 30, 2022 and December 31, 2021 are as follows: June 30, December 31, 2022 2021 Completed contracts $ 34,030 $ 10,612 Contracts in progress 31,211 65,415 Retainage 4,648 7,490 69,889 83,517 Allowance for doubtful accounts (564 ) (564 ) Total accounts receivable—net $ 69,325 $ 82,953 |
Components of Contracts in Progress | The components of contracts in progress at June 30, 2022 and December 31, 2021 are as follows: June 30, December 31, 2022 2021 Costs and earnings in excess of billings: Costs and earnings for contracts in progress $ 277,373 $ 270,998 Amounts billed (239,568 ) (240,941 ) Costs and earnings in excess of billings for contracts in progress 37,805 30,057 Costs and earnings in excess of billings for completed contracts 25,917 10,894 Total contract revenues in excess of billings $ 63,722 $ 40,951 Current portion of contract revenues in excess of billings $ 62,615 $ 39,844 Long-term contract revenues in excess of billings 1,107 1,107 Total contract revenues in excess of billings $ 63,722 $ 40,951 Billings in excess of costs and earnings: Amounts billed $ (155,455 ) $ (224,381 ) Costs and earnings for contracts in progress 152,841 209,567 Total billings in excess of contract revenues $ (2,614 ) $ (14,814 ) |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating Segments | 1 |
Number of reportable segments | 1 |
Number of reportable segment with goodwill | 1 |
Earnings Per Share - (Computati
Earnings Per Share - (Computations for Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ (4,033) | $ 2,105 | $ 7,024 | $ 10,919 |
Weighted-average common shares outstanding — basic | 66,071 | 65,646 | 65,959 | 65,458 |
Effect of stock options and restricted stock units | 491 | 521 | 729 | |
Weighted-average common shares outstanding — diluted | 66,071 | 66,137 | 66,480 | 66,187 |
Earnings (loss) per share — basic | $ (0.06) | $ 0.03 | $ 0.11 | $ 0.17 |
Earnings (loss) per share — diluted | $ (0.06) | $ 0.03 | $ 0.11 | $ 0.16 |
Earnings Per Share - (Narrative
Earnings Per Share - (Narrative) (Details) shares in Thousands | 3 Months Ended |
Jun. 30, 2022 shares | |
Earnings Per Share [Abstract] | |
Stock options and restricted stock, excluded from computation of earnings per share | 447 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Insurance | $ 12,193 | $ 12,821 |
Other | 5,598 | 6,427 |
Payroll and employee benefits | 4,166 | 13,533 |
Interest | 1,459 | 1,460 |
Income and other taxes | 1,301 | 2,941 |
Contract reserves | 444 | |
Total accrued expenses | $ 24,717 | $ 37,626 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 29, 2022 | May 31, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility | $ 0 | $ 0 | ||
Letters of credit outstanding | 21,527,000 | 25,127,000 | ||
Letter of credit remaining borrowing capacity | 178,076,000 | 174,546,000 | ||
Availability under credit agreement suppressed | 397,000 | 327,000 | ||
Debt instrument, face amount | $ 325,000,000 | |||
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% | |||
Subsequent Event [Member] | Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Subsequent Event [Member] | Daily Simple SOFR Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1% | |||
Subsequent Event [Member] | Green Loan Advance Rates [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.05% | |||
Subsequent Event [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Fixed charge coverage ratio | 1.10% | |||
Subsequent Event [Member] | Maximum [Member] | Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.75% | |||
Subsequent Event [Member] | Maximum [Member] | Daily Simple SOFR Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Subsequent Event [Member] | Minimum [Member] | Domestic Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 0.25% | |||
Subsequent Event [Member] | 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 | $ 200,000,000 | $ 200,000,000 | ||
Credit facility expiration description | The New 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 New Amended Credit Agreement. | |||
Revolving Credit Facility [Member] | Subsequent Event [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 | |||
Revolving credit facility, maturity date | Jul. 29, 2027 | |||
Green Loan Option [Member] | Subsequent Event [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 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 8,791 | $ 630 |
Derivatives liabilities | 322 | |
Fuel Hedge Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets | 8,710 | $ 630 |
Foreign Currency Exchange Hedge Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivatives assets | 81 | |
Derivatives liabilities | $ 322 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) € in Millions, gal in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) $ / gal € / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / gal € / shares gal | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) $ / gal € / shares | Dec. 31, 2021 USD ($) | May 31, 2021 USD ($) | |
Derivatives Fair Value [Line Items] | |||||||
Derivative, nonmonetary notional amount, volume | gal | 6.2 | ||||||
Fair value hedge assets | $ 8,710,000 | $ 8,710,000 | $ 630,000 | ||||
Reclassification of derivative (gains) losses to earnings net of tax | (7,200,000) | ||||||
Debt instrument, face amount | $ 325,000,000 | ||||||
Fair Value, Inputs, Level 1 [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fair value of debt | $ 281,180,000 | $ 281,180,000 | |||||
Minimum [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fixed price range | $ / gal | 1.91 | 1.91 | 1.91 | ||||
Maximum [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fixed price range | $ / gal | 3.95 | 3.95 | 3.95 | ||||
Fuel Hedge Contracts [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Derivative underlying hedge percent | 80% | ||||||
Reclassification of derivative (gains) losses to earnings net of tax | $ (4,719,000) | $ (1,878,000) | $ (7,200,000) | $ (3,404,000) | |||
Foreign Currency Exchange Hedge Contracts [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fair value hedge assets | 81,000 | 81,000 | |||||
Reclassification of derivative (gains) losses to earnings net of tax | 0 | ||||||
Derivative notional amount | € | € 17.5 | ||||||
Fair value hedge liabilities | $ 322,000 | $ 322,000 | |||||
Fair value hedges | $ 0 | ||||||
Foreign Currency Exchange Hedge Contracts [Member] | Minimum [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fixed price range | € / shares | 1.06 | 1.06 | 1.06 | ||||
Foreign Currency Exchange Hedge Contracts [Member] | Maximum [Member] | |||||||
Derivatives Fair Value [Line Items] | |||||||
Fixed price range | € / shares | 1.13 | 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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Derivatives Fair Value [Line Items] | |||||
Reclassification of derivative (gains) losses to earnings net of tax | $ (7,200) | ||||
Net change in cash flow derivative hedges—net of tax | [1] | $ (376) | $ 404 | 5,859 | $ 2,290 |
Fuel Hedge Contracts [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Reclassification of derivative (gains) losses to earnings net of tax | (4,719) | (1,878) | (7,200) | (3,404) | |
Change in fair value of derivatives—net of tax | 4,584 | 2,282 | 13,300 | 5,694 | |
Net change in cash flow derivative hedges—net of tax | (135) | $ 404 | 6,100 | $ 2,290 | |
Foreign Currency Exchange Hedge Contracts [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Reclassification of derivative (gains) losses to earnings net of tax | 0 | ||||
Change in fair value of derivatives—net of tax | (241) | (241) | |||
Net change in cash flow derivative foreign currency hedges—net of tax | $ (241) | $ (241) | |||
[1]Net of income tax (provision) benefit of $127 and $(136) for the three months ended June 30, 2022 and 2021, respectively. Net of income tax provision of $(1,979) and $(773) for the six months ended June 30, 2022 and 2021, respectively. |
Fair Value Measurements (Adjust
Fair Value Measurements (Adjustments Reclassified from Accumulated Balances Other Comprehensive Income (Loss) to Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Costs of contract revenues | $ 138,947 | $ 146,992 | $ 300,241 | $ 291,549 |
Income tax (provision) benefit | 853 | (829) | (2,432) | (2,218) |
Net income (loss) | 4,033 | (2,105) | (7,024) | (10,919) |
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 | (6,313) | (2,513) | (9,632) | (4,554) |
Income tax (provision) benefit | (1,594) | (635) | (2,432) | (1,150) |
Net income (loss) | $ (4,719) | $ (1,878) | $ (7,200) | $ (3,404) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
May 11, 2017 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 05, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units | 603 | |||||
Share-based compensation expense | $ 1,000 | $ 798 | $ 1,552 | $ 2,564 | ||
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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Revenue From Contract With Customer [Line Items] | ||||||
Revenue, remaining performance obligation | $ 373,801 | $ 373,801 | ||||
Percentage of performance obligation to be recognized as revenue | 73% | |||||
Performance obligation, expected to be recognized as revenue year | 2022 | |||||
Remaining performance obligation, expected timing of satisfaction, year | 2023 | 2023 | ||||
Increased gross profit | $ 5,638 | $ 17,362 | ||||
Amortization on pre-construction costs | $ 2,061 | $ 4,452 | 5,909 | $ 11,756 | ||
Other Current and Noncurrent Assets [Member] | ||||||
Revenue From Contract With Customer [Line Items] | ||||||
Costs to fulfill a contract with customer recognized as an asset | $ 4,492 | $ 4,492 | $ 5,652 |
Revenue (Summary of Type of Wor
Revenue (Summary of Type of Work, Contract Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 149,428 | $ 169,914 | $ 343,777 | $ 347,547 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 149,428 | 169,914 | 343,777 | 347,547 |
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 | 89,693 | 79,399 | 190,704 | 157,005 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Capital-Foreign [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,613 | 6,322 | ||
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 | 45,119 | 46,631 | 117,036 | 93,262 |
Type of Work [Member] | Operating Segment [Member] | Dredging [Member] | Maintenance [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 12,648 | 37,278 | 32,460 | 82,579 |
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 | $ 1,968 | $ 4,993 | $ 3,577 | $ 8,379 |
Revenue (Summary of Type of Cus
Revenue (Summary of Type of Customer, Contract Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 149,428 | $ 169,914 | $ 343,777 | $ 347,547 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 149,428 | 169,914 | 343,777 | 347,547 |
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 | 95,360 | 127,331 | 262,934 | 258,063 |
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 | 50,922 | 37,069 | 75,523 | 71,844 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | Private [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 3,146 | 3,901 | $ 5,320 | 11,318 |
Type of Customer [Member] | Operating Segment [Member] | Dredging [Member] | Foreign [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,613 | $ 6,322 |
Revenue (Schedule of Accounts R
Revenue (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Completed contracts | $ 34,030 | $ 10,612 |
Contracts in progress | 31,211 | 65,415 |
Retainage | 4,648 | 7,490 |
Accounts receivable, gross | 69,889 | 83,517 |
Allowance for doubtful accounts | (564) | (564) |
Total accounts receivable—net | $ 69,325 | $ 82,953 |
Revenue (Components of Contract
Revenue (Components of Contracts in Progress) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings in excess of billings for contracts in progress | $ 37,805 | $ 30,057 |
Costs and earnings in excess of billings for completed contracts | 25,917 | 10,894 |
Total contract revenues in excess of billings | 63,722 | 40,951 |
Current portion of contract revenues in excess of billings | 62,615 | 39,844 |
Long-term contract revenues in excess of billings | 1,107 | 1,107 |
Total billings in excess of contract revenues | (2,614) | (14,814) |
Costs And Earnings In Excess Of Billings [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings for contracts in progress | 277,373 | 270,998 |
Amounts billed | (239,568) | (240,941) |
Billings In Excess Of Costs And Earnings [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Costs and earnings for contracts in progress | 152,841 | 209,567 |
Amounts billed | $ (155,455) | $ (224,381) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) | 6 Months Ended | |||||
Jun. 14, 2022 | Jun. 15, 2021 | Apr. 23, 2021 | Jan. 14, 2015 | Jun. 30, 2022 | Apr. 22, 2022 | |
Commitments And Contingencies [Line Items] | ||||||
Outstanding performance bonds | $ 976,656,000 | |||||
Revenue value remaining from outstanding performance bonds | 373,801,000 | |||||
Proceeds from Legal Settlements | $ 5,309,000 | |||||
Fine for violation | $ 1,000,000 | |||||
Restitution owe on liability for criminal matters previously deposited | $ 2,000,000 | |||||
Fine paid for criminal matters | $ 1,000,000 | |||||
Indemnification Commitment [Member] | ||||||
Commitments And Contingencies [Line Items] | ||||||
Aggregate demolition surety performance bond | $ 21,934,000 | |||||
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 |