GLDD - Earnings call transcript Q2 2021 | Great Lakes Dredge & Dock Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Great Lakes Second Quarter Earnings Call. At this time, all participants are in a listen only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Tina Baginskis. ahead. go Please

Tina Baginskis

morning Good to quarterly our Thank and call. conference you. welcome

the Officer, the morning the quarter. Petterson; with President Financial the will quarter, on with events me the will update on is outlook an and Marinko. update business update provide an call Chief then Lasse Joining of of and Officer, on conclude this our market. our Lasse, the results Lasse for will Executive and our on continue Mark Mark an Chief financial

there their questions. Following an will comments, be opportunity for

to in this our you involve SEC, subsequent will During uncertainties could we forth our business make our from XX-K XXXX materially are call, of results earnings number our with the certain and inherent in and in statements forward-looking These actual including statements filings our factors that differ cause and Form help expectations. business. other Certain risks, understand filings. factors to a release set risk

call, with we operations, which call During release on continuing data. over Relations non-GAAP to net our in the attached operations including explained that, adjusted turn operating along to our from also income measures, will posted reconciliation certain this website, the earnings from EBITDA are certain continuing adjusted refer other and to EBITDA With Investor financial I Lasse. to

Lasse Petterson

COVID-XX our a substantial saw pandemic. operations impact In XXXX, result Tina. of you, a of half Thank the first the as

order of ambitious stands vaccination of our or quarter, vessel end of the continued a to at have the initiated vaccinated infected pandemic quarter. our of in an additional staff mitigate have extensive been our of quarter of crews in through the target vaccinated. crews wave vaccines vaccinated significant company-wide Thus currently interruptions our we direct being outbreaks, second protocols. extensive and started isolation and set successful, despite Several by third the we vaccination an operational see our and the employees of the fully were far, XXXX. In testing available majority population, and to as and As became staff spread effort XX% our we cost to first partially

We prior are operations all and to have startup coming back including to new vaccinated requiring all protocols, projects from vaccination to now crews. XXX% implementing drydocks XXX% vessels have new into

two additional second Direct and easily $X seen not million performance-related project, of of international been the Southeast, which Mexico. in Beach Beach in One worst one Coastal project majority to be quarter. operational to the costs as direct now and and and The are on were The costs disinfecting were Additionally, on until of vaccines not the we operational of projects replacement later continue of in of costs crews require increased experienced with QX. quarter million several home we Unfortunately, crew related proof an quarantine and Hence, any testing, main second year. of of vaccination readily at on several project included but projects projects bringing quarter the $X.X were affected be site expected our first COVID quantified, vessels this the the challenges available completed, offices. incur jobs. on Gulf cost infective the but in tracked, COVID capital can projects and during to in access easily in an margins lower than in the could incurred the impact Northeast COVID

with the -- of $XX.X $X.X impacts see year. remainder which the our reduced million. million vaccination adjusted and reduced in income with ended our on quarter to of expect We net of EBITDA effects positive of initiative, We the corporate operation

related the project impacts not and expectations meet to COVID did half Our first of mentioned. XXXX performance results due

remainder of activity, new awards drydocks project we backlog, and for year. currently fewer with vessel coupled project are the Given in, engaged the

XXXX of be quarter fourth We to expect of outperforming and the stronger, quarter and third third XXXX. fourth the

we However, results XXXX. discuss turn our for update on will allow fully backlog original the and quarter the to now development. achieve to of expect the an stronger expectations further half Mark I the to us for second call do not over to

Mark Marinko

results I Lasse. you, will Thank start with business. our related Great. the to specifics discuss then and quarterly dredging some

compared Gross related revenue. foreign prior company lower offset and second productivity XXXX. of quarter million were of second million margin and projects. higher several profit quarter quarter domestic the to million net in partially increase the profit by year quarter. impacts the EBITDA an capital XX.X% Gross the affected of a million was second protection $XXX.X The $X XXXX to in revenue, caused Lakes $XX.X costs For Rivers quarter COVID-XX profit $XX.X income $X.X million. compared second $XX or adjusted impact increase XXXX, was was unfavorable $X compared million of and quarter revenues was million, of represented and the was for coastal to by had Direct maintenance, and and during Total X.X% revenues gross on XXXX. the second delays XX.X%

As stated previously, now effective projects the majority of have those completed.

the had the Alaska, in of million of Net of a administrative over the which direct All lower quarter Texas, quarter are was tax $X.X debt second were in million net of million $X.X is quarter. to and the to adjusted and million for of year the returning quarter of to of third of gross quarter EBITDA million General of Terrapin, XXXX, and quarter. second of quarter $X.X $X.X Terrapin York, margin. expense except expense compared result second million we $X.X XXXX the a second Approximately quarter, by second million $X million. current expenses includes the the $X for extinguishment year current income interest vessels, $XX.X in for work Total refinancing to of interest the prior net is XXXX income EBITDA and quarter. notes. was expense. $X.X income million, included XXXX The New income for quarter in operating included income the is drydock. senior prior XXXX. our the expense was million $X.X the Income Liberty interest of company million prior is decrease tax year $XX.X During sub Adjusted the in the than The slightly decrease lower which of $X.X million. expense compared in related

million to where Next, we June $XXX.X at balance we turn our had cash. sheet, XX, XXXX, in

continue During a of the on we cash X maintain second XXXX, revolver. quarter balance to

multi quarter X, a of In $XXX million offering. related XXXX, notes million construction senior which of a design vessel. X.XX% for the installation second million years, and to we vessels rock notes to eight $X.X with the priced were sold and Our dredge investors $X.X XXXX XXXX capital were midsize will to savings pursuant June new unsecured build par of and a interest moving $X back in more new XXXX. the on to May were the outlook million I expenditure over offering, included the of X% aggregate turn result in company the related hopper and new the on for The all Lasse approximately at on $XXX principal $XX.X These The of redeem million, $X.X the With the stable the cap net in company private term a mature that, the notes of his forward. structure terms debt an senior call with amount to remarks from together million that the proceeds XXXX. to expense hand for favorable of longer-term give due used annual cash its basis. for on outstanding million

Lasse Petterson

you, Thank Mark.

expansion execute of billion and along and we still the market country and maintenance deepening our coastal domestic that Army of Gulf the port are large-scale and are and essential confident types projects. East impacts XXXX, including to strong will projects XXXX by dredging, protection and critical the the projects. and an In as Corps deemed market restoration Coasts. challenges schedule continued infrastructure continued and as facing of all in we to will The COVID-XX, Engineers has port continued bid that port as prioritize deepenings, EURX.X project and has needed their include work dredging reached remain industry domestic driven As the follow U.S. the XXXX, service bid,

port for will Norfolk, for the phases years. Christi, that will continue XXXX We for Corpus in expect channel projects see and ship several Houston next in that bids the Houston deepening Freeport multi project

XXXX. $XX.X quarter, port that XX.X% in projects. maintenance first XXXX sea half and addition, and second $XXX.X year. market the of Lakes to In new Backlog coastal June coast are nation's rise, erosion Beach our which and After million, Beach renourishment year. versus late $XXX at million, Lakes for in low Project were which for this $XXX.X deepening projects million. Deepening was the end, the low XX, Renourishment and XXXX, May to in in the nature increase In on the commence add Thimble level our results $XX.X On million last Phase Cape need subject work the million Corpus the an announced quarter a damage Christi Great events to million more bidder the of resulting climate second of were backlog, we we that in June of increasing our Project were business July awards and Shoal on $XXX.X successful severe recurring other Great bidder weather for awarded change, the QX of at XX, for adds III and will share of frequent protection

we some build Funds billion Harbor market XXXX, that U.S. allow seen million the record on that which Our slated since which the approved remains XXXX Trust $X.XX $X.X is this that Harbor of in the funding support Hopper XXXX. resource to and In of will dredge, this the have schedule. increase another million, This in announced XXXX in levels. included being is be budget at Corps with Trust dredging by draw in execution representatives in Development Dredge $XXX to level. the lifted of billion, water house on delivery course to the support an a Fund was addition cap the Harbor the for of new first build the Act, broad mid Engineers record To over year, on appropriations. Funds In Great the the July receive Army which the this is on the is Maintenance Shipyard Maintenance would hopper surplus new XXXX a fund. confidence reforms annual the market The down proposed year's XX% to and Lakes budget that the Maintenance the to of the the budget Congress with approved $X.XX additional in Louisiana industry demand contract domestic bill, in XXXX quarter XXXX budget in reinforced high expected over is Conrad

increase to productivity we addition domestic is believe U.S. the new continue and the fleet growth current our existing In with fleet and meet to technology to our future upgrade equipment new equipped bill, to well in market. and

new support earnings the wind transportation exciting development, to the As energy turbine areas expect $X I've set wind would the expand in of wind dollars place anticipate plans administration. represents And improving million subsea infrastructure goal wind guarantees by billion all about of full new an offshore vessels to first offshore future that this decision represent the delivery We for fund U.S. announced of ambitious a And for offshore and the environmental infrastructure having committed the permitting the earmark by confirms stated of building making projects and the administration Energy. projects. offshore wind our in strong building half on critical the year port advance of new talked House for compliant to significant in will power XX pipe by for generating new This nation's advancement it loan in for the $XXX federal offshore XXXX. capacity foundations. vessel initiatives in opportunity wind support House offshore direct an coming calls, financing generation Biden in March, White XXXX. installation decade opening of and the first investment Rock XXXX. see will logistics the in Great We vessel for approving an the industry. from of XX market And in to in gigawatts public Lakes. White previous new to U.S. by U.S. Jones this generation Flag This from power power enter administration's Department target client The increasing QX

the have us confident wind with this a on to Additionally, to to we in reengaged special through we as strategies operational vaccinated, remainder have with In our Dock of year. in that time the & of members as steps market the U.S. the assist turn the remain Great generation the market questions. see growth Consulting is Group Dredge developments this for. conclusion, see Lakes evaluating fully initiatives an team's power are and our opportunities optimistic defining operational And provide our Boston And company. offshore avenue the in through us further the for revenue short-term that, we And we are and will year for in participate further focus I'll call growing confirming wind in this channel the over the performance, offshore our with for growth known market. COVID with

Operator

Instructions]. [Operator

line of Davis. Thalhimer Adam Your Thompson first question comes with from the

Adam Thalhimer

give you -- I'm new. us any Can sense for

for you question, QX kind to directly and answer sorry, want say Any sense of magnitude? but year-over-year? sense of So if this you up kind for don't QX any when of kind

Mark Marinko

sure. Yes,

file later or our backlog see we revenue about forward, be look as look we if XX% of this the about at revenue we of the -- week, of as for June So at this Q all, first year. when rest for you'll of week all, backlog this the our that will first first, going recognized

So over $XXX of that's revenue. million

back what percentage We expect profit drydock vessels little Lasse versus similar expect QX -- a QX be be QX reason the for XXXX in to to was. margin do that some be then more is fewer And lot and year related for as year many and QX in QX. as QX talking half full what G&A We gross to QX. well, activity the down mentioned, and QX to second and a higher are When the X earlier to half money the plus mentioned we we BCG. half, about in days, drydock than almost drydock due specifically QX's the just days the to expect Lasse I in had of to in in of less

we little be stronger QX expect a to So than QX.

Adam Thalhimer

sense you segments. actually. Can sense just of the what color, trying -- are us to X you And I'm that boats because great boats to then of returning returning can revenue That's to? -- give the Okay. of a those give half, that in projects the have a you back to kind us get where

Mark Marinko

more of a bit detail have front one, -- That to I that's here. I'll little than me have in

So across deepenings side, side, obviously, to beach but have It's the the -- the board. do port -- jobs It's in going to number we do domestic nothing have deepenings, continued on. be we on really QX. continuing a international on our port go but

So it's cross-border and really maintenance.

Adam Thalhimer

that Okay. XXXX. it in me. And then bidding the last up one from core Is be too early to say will

Mark Marinko

we X that add, that it So of couple the billion in could for been the last from bill at point, the years to core it this exception bidding I this with kind X with to close years. $X.X the infrastructure has it of, would this we've of seen be last increase expect where or

build the projects timing of that piece infrastructure of it's when -- early. tell types increase. early our would So for too we be those, the that to could it's those too But industry,

Operator

from Jonathan line with Tanwanteng of comes CJS question the Securities. next Your

Jonathan Tanwanteng

wondering as if especially if you seeing expense any to with could up much I lingering in impacting there us might rates COVID the extending insight that was across country? going how QX, you're July, into be these give

Mark Marinko

Yes.

goes. $X our one, million. -- mix us. $X what second million the kind how so variant, of right say, third see expectation kind $X bit. to we're quarter, We'll million were how we'll first Obviously, mix is slightly of, In moving of a delta It's in -- about see But we expecting terms delta in variant I'd of million the we it this expecting rare the before this new quarter, of $X up expected, little impacts we quarter. we're had kind now, this the in in

Jonathan Tanwanteng

last And delays it. stoppages as the Got month? or were a interruptions there or any result in

Mark Marinko

In of any had in month, because or haven't the variant. vessels taken last we this stopped

Jonathan Tanwanteng

Got it.

thinking rate win terms half of visitor projects And I what that the there thoughts rating on Okay. -- the your rate. for. both perspective? just smaller the the of year your usual, best you're suited your XX% Great first for I'm from also market market, recognize just are the out wondering win it the than your total kind versus rest in normal of wondering, was just the I'm news. as XX% and you at looked was the bid I

Mark Marinko

Yes, sure, John. That's a great looked question at. we

So good which million, on Corpus, low over bidder Lasse the news Thimble low which low was were -- $XX That but was estimate. government just happened Shoals. just the bid bidder is we XX. July is June million. as XX, on We about were mentioning, post And big were we're Freeport $XXX on we're deepening, a around

how bids added that would of shakes see are kind us. to our be $XXX to backlog, X we'll that awarded those out. So But if million

number. about of first that's of big billion market. year, kind to half back of second another We bid But expect half talked $X.X get million this So year. the bidding, in $X.X of year us half the a we -- the $XXX the with to billion about the of one the to in

up But a of do great to have where well start a say, say, that here off would bids. be bit suited the during the coming we're year than, get win at we projects And it little up -- of the X the this us. these So have as around with end to higher are I XX% backlog to for similar XXXX. are would to come that end let's to

of of gate. to great a the out start half been this back it's So year the right

Jonathan Tanwanteng

we year? progress? think And of this the of And forward? projects or update you've aren't of been they there's yet. but next any backlog those awarded if on year should any just in then impact terms that Got in been it. How LNG moving Are

Mark Marinko

expect but the -- beginning to the to along. of the of this one did at year, is two possibly year, They this we that Yes. still to that the isn't going moving that this start some smaller year some roads and start work -- revenue land I land just relocate can to so beginning have where heard to they contracts. purchased sign on that are yesterday there. They The that they --

one could movement signed like earlier final larger to closer. But that still to proceed So to, out. in some there's a a that getting there's looks get few one is there, positive that further but still the The more notice smaller be we there. XXXX. is hopefully but Still hurdles

Lasse Petterson

client sold the what to saying first Yes. optic the early got two is have they -- Mark. for that next That's get that year. like on I'd means estimating. add, facility, then they trains that start now can are construction The Bechtel to contracts clients the which LNG

Jonathan Tanwanteng

And BCG I really on it. expanding the the X vessels And Got just number were the What's business or is the about? thinking about. you of guess, kind beyond quickly from that one? cost X, you're talking what opportunities foundation that, engagement the additional for

Lasse Petterson

crystallized offshore to wanted we X what have with the market Mark I'll fill opportunities represents And joint an now with off us, the market the and in offshore as years. and that, are work, us. that for market and independent Yes. looked being opportunities We the can bidding wind we in. to that start wind last and stop in at of the review

analysis related close and ability through activities have other the is our also of to the that opportunity and to there for that the are an perform. foundations rock extensive competencies placement we So for gone

is do Mark? years reengage them X As very us that I And I'm the us do successfully, forward. restructuring did, we with this optimistic we that to analysis. that and about they we engaged say, to opportunities to let's helped say BCG presenting to ago and this, had decided you going very must know, the out industry some

Mark Marinko

Yes.

on less So million. cost, related just the specifics than to it's the $X

longer-term making push the going also on versus we're at wind that's earlier, the confirm offshore a But very and business of a G&A basis. second first little half they investments half. in looking relooking kind we're mentioned we I is yes, our about other our up reaffirming at as as the As in look to forward in dredging what bit excited

Operator

Wal Halston Your & next Company. of line comes from question Hinman the DeForest with

DeForest Hinman

Just at vessels potentially vessel? offshore wind or thoughts another just vessels, clarity for is lines on rock outlook looking of further are the confirming the along we cranes, around service more other this -- is doing

Lasse Petterson

offshore But the our I go get crane vessel The -- lot into for there we Well, with investment opportunities on rock a to the installation. can are business is basis reach and impacting administrations or XXXX. has side, of gigawatts the made a There the the tripled more installed say first on we bid there of by we're that to how going now installation design capacity think XX that year, good is vessel not pursue decision and installation issues, ahead that be but for rock decision opportunities business. generating that Last vessel. will target. we target, power chain which supply the than for definitely X

that. So we're at looking

further market are to services, the an to are addition, to In we into want that in performed lifting vessel which there competencies an which is on large just offshore us the under for to additional installation presents I opportunity is -- segment. this our and close investment, we very is a invest that But considering. which not build are new company water, under and repeat that

DeForest Hinman

an -- are there aware on bids working update Army the any Corp then of? discussion give projects that on us And we're be private should you that lot we of a market, Okay. on but market can bid

Lasse Petterson

category private the as awarded LNG for market do in bid, the Well, low bids not that we have developments.

don't are slated come that these projects decisions Mark, I the we And in to other clients, projects are currently by final have those So fruition category. and could think upon XXXX based the significant. in investment that projects XXXX.

Mark Marinko

side, the correct. That's on our pending point, in not two award are yes, two really in private That's bid correct. this It's at low those just those backlog.

DeForest Hinman

in talk terms this spending Can been potentially a more I've priority money and give capital on vessels. the a Where anymore, refinanced. debt priorities, helpful. Very a refresh fall that pay in it you've but new you Okay. got and allocation from forever. asking vessels there? potentially Can does of perspective, we're about lot rundown can't and I you us just money repurchases? And us down stock dividends a of on new give

Mark Marinko

I'll Yes. that changed much. one, Yes, take too Lasse. nothing's

let it this at me So just point. refresh

hopper building the dredge, the So we're of -- dredge. our in hopper the middle midsized

will next So and $X I cats, this We're smaller in The $XX now this this million that's after It in another, $XX be million. going to the are have final help priority our that's somewhere and between million $XX vessels those safely. million, $XXX being then $XX it $XXX in-flight think, million million since vessel, last pipelines to building year million a still our year. that year. working offshore -- That pricing then to more confirmed multi the is will yet. vessel. obviously, That's the But X be be year with already efficiently we XXXX. -- on these constructed don't total of about wind

example, of But some but at the are that we're So we large the so -- those with about of about on on we kind changed a longer do big the cutter we the these option And confirmed. have for for side, talking carbon talked we've of hopper dredges, vessel that versus are dredging BCG, things look the copy dredge. the term, as that of as things as kind the island. forward Ellis a haven't look

the in and wait at wind next to then look So And decision on second we'll outcome that. the half we'll early moving We've something too a more until to wind second year, make other summer. that -- do at or of forward, offshore have a vessel invest there We else. to want we market, got look whether offshore the tell another that

analyzing in have middle Those yet don't that. the I we on are So update are an where currently.

the -- stock in like repurchase are as we a share supportive year, Ford undervalued, very would we repurchase, did Lasse year. last last terms In put just believe program the share to and be we like of if of the

out So the an that's so. itself. opportunity if that to ready that presents there We'll on to still and be do keep eye do

DeForest Hinman

was of dividend? the question the And the part last

Mark Marinko

Yes.

So the I we to probably of obviously dividend growing effective have and was related repurchase to those focus those all fairly are year. of would then the say last priorities what on business last to priorities do the do share

And in all say the it's so just we I would priorities. let's probably the priority, tell definitely those priorities. you the other say something consider at latter it's It's of of

DeForest Hinman

Okay. fixed reflect -- we exercise the a which helpful. quite Very the price on dredge, gone if option does clarity is the that option? price it up bit? relates as Or has environment on hopper current to And option, that just steel, a does it

Mark Marinko

Yes.

so current that lower million So we're you But -- it did price, than a do these was lower $X get about we options, prices. of there one the range when a steel building. right, is

off. steel little in higher if than a are prices contract, of But So it be and range that's bit at could leveled steel more. the that this point, prices have kind

if market how us to material -- based to have is. see we enormously that next But the to be where just say, I summer, is, impact today. and are let's how So it on don't see

DeForest Hinman

Perfect. question. Okay. last And then

to on dumping out the understand rock vessel us relates decision help there. this Just the financing it that's as

that? on You would an financing the DOE? into through question, Or it to weird possible this, after come just specific be could willing the make potential understand that very make press kind is on a we reference in us help you decision, that, but your of it release, rock can financing decision play investment just without an we being but favorable did vessel investment

Mark Marinko

add don't can these sheet, been I take items the did I've the would we've could. additional I generate necessarily to have able on that the we vessel, offshore looking talked need we do we allocation, new that wind flow to current cash ability, If at looking including at capital balance debt. about, items So or then off our

earlier But have, conversations it be, point, stuck So I it last don't would Department that's we we're yes, attractive committed to, And had that. to of could looks like Energy. take don't in this I to. like the said if financing, we've kind any advantage debt. take and I we the at more what of call, have we with of

DeForest Hinman

that -- what you can of that of in potentially be? cost understanding what any that terms have we Do would that, share

Mark Marinko

the vessel? of cost The

DeForest Hinman

The debt.

Mark Marinko

Yes.

rate. it's it number floating rating, plus rating, LIBOR range it's but credit X% in credit a based So on a be floating today. your It's essentially based on a the and your would -- -- the kind of it's in

Operator

line question Capital comes Poe Markets. Fratt of the next Noble with Your from

Poe Fratt

Freeport, Mark, awards said the you little mentioned on you sort $XX a I some estimate. core's bit release? had included Freeport, it on above give be thing you color in of look it First you're at pending that? the might that you're Can the think the like sounds press you is, award million you but if

Mark Marinko

Freeport actually. we're the was $XX But again, about above estimate. government million,

presently working make awardable. see with to So if that them we we're can

Poe Fratt

How the estimate were above much you?

Mark Marinko

say I going to number, recall $XX about, million, that I'm say of that. that, but don't something to like I want

Poe Fratt

Okay. estimate, above their XX% roughly. Like

Mark Marinko

Yes.

Poe Fratt

And it you I to number didn't typically, the actual award number. couple give bit you pending a low of hear but an then referred times,

Mark Marinko

Oh, it's was -- pending sure, XXX $XXX X/XX million. award at bid low

Poe Fratt

based Okay. sounds funding. point Corp. not it projects forward U.S. And that increased Army is then just any to any the on confirm, like indication seeing engineers you're

Mark Marinko

can sorry, you repeat I'm sorry. that? Poe,

Poe Fratt

than And have up any anticipated? seeing to core's that any with they're budget forward what projects? to preparing Are indication the them out that you bid sooner put potentially pull going you

Mark Marinko

their a right? of and been say more kind bidding, there's wouldn't I earlier of into impact But yet. fiscal we'd That kind here, at set XXXX, fiscal QX for bids for We're and too. earlier set the see September. this now have coming is season nothing while, So of busy market have year into ends would really bid to yet. year. Remember, anything QX for this No. yes, obviously, those point, be probably something

that would would kind push happen So that It this for fixed that's -- I seen later, yet. of haven't year. but all

Poe Fratt

I always has be, projects. view point win would Yes. the the mean, in that issue. I my has guess I core's ability mean, not to pipeline the budget more my been of schedule their and handle been few It

fairway market impact a bid it And extends year-to-year in lot so but maybe it longer, the materially? doesn't really that the

Mark Marinko

on Army seen -- It's much slowed we mean, I down. expected. Yes. haven't where much been Bids all pretty really the we a Corp. pretty

and a all early asking little yes, passed hear done, is, bills positive able completed. projects -- handle get would everything think obviously. think don't mean, you're for I got want us, think until and so. now, you been potentially, Corp. the I But it's positive. bit. I so overload up a are potentially those they tell. I it's And a The It's to that -- a that just think little that to but to it would I to get important they've what too Army I So

Poe Fratt

on any the that out significant give you're far seeing the project. on Houston Houston And ship the an a pretty been Yes. channel? horizon the of Can timing update as has project, standpoint from you us as

Mark Marinko

Yes. I can take that last.

Lasse Petterson

Okay.

Mark Marinko

have So we first level. the

First, bidding million. potentially $XXX in of that's of August, in coming range the up

Poe Fratt

highlighted then, charge. And rock be that dumping in Mark, you that you and of $XXX Or $XXX Would to for that million mainly the you hit XXXX more cost decision Okay. CapEx? Great. would million the investment see XXXX 'XX? as

Mark Marinko

right? to tie when of looking will market, could that is the time be kind we be Yes. when There the do being we we'll So we with the we that investment a there to do first think potential it that make end year to market XXXX. year. near have of When ready this based vessel have in the is payment that If commence? and will kind on ready? a And projects this decision of potential the at these could, the

just when construction. have that of continue that to So to need gauge the to they're do going market the ready to

Lasse Petterson

Yes.

Mark Marinko

is But it pretty...

Lasse Petterson

today are that we make the in year. as will offshore investment It have construction as early in meet projects deliveries, we having to those QX probably decision this to XXXX. our And will. starting Yes. are season order Mark, bidding

Poe Fratt

is XXXX hopper have a numbers hopper the $XX first you year CapEx dredges, million, 'XX? you Can the us should asked, I multicats maybe full number, give could boards CapEx And $XX out Okay. round million. for the

Mark Marinko

Yes, sure, sure.

When our the million exactly a this done $XX And right half hopper new $X will you what million for wind the now year, falling see fleet And the million. we million design did multicats, offshore the the the So going. keeps -- in statement, capital on $XX a million first flow about the the buyouts $XX through couple lease look regular of about $XX -- are we've cash at the of on on expenditures. CapEx, those from separately vessel, that you -- cues.

that include neighbor So on to just start do of not million, construction vessel. call Lasse -- there $XXX made the if that does to is what in and the mentioned, total we wind the offshore the the

Poe Fratt

And would than reach higher that? deposit project would moving the as cost it far XX% it forward? Or the be -- as estimate it be the at is of

Mark Marinko

would than one it think if -- at like as dredge we're about higher kind was of building, the XX%. -- I the we It be Now, looked could that. where about you it don't be hopper think -- the

So could don't higher. it I -- yes, will be think be it

XX% around a little less. be would or it think I maybe

Poe Fratt

Or just stock couple Great. one, far where last been stock as from stock Okay. sort potentially buyback as I yet. But where maybe -- as was standpoint -- you're the last matrix heard there thinking line buyback little buyback might could far of you clear color us any a was sure, you would stock not a helpful. the maybe illuminate where revisited undervalued? give a you I'm the color thought kick on just be And as in? then hasn't of

Mark Marinko

situation back with that September time. we it in mean, a I call little a the in in where Board at I last believe, when -- was year, different made at was, we're $X.XX of Yes. the stock point different the

little in we obviously, reinstating but one being Lasse higher the be, don't -- point near number, that a I it I to to at but but a been can't would give doing of this it's based undervalued. you I would preliminary So a yes, yes, clear that -- But time, new just needed -- just supportive we be supportive, we're be if anywhere a that a where number. have very higher, Board on -- we'll on yet very want number not has

what our stock -- be where the performance our will we what's forward-looking looking price sits. on the that So -- think and is and forward based market and

Poe Fratt

could Great. you play address contractor that in Lasse, assessing you how a through agreement? if clean the sort And of completed exercise June government the just play agreeing to went of versus agreement risk and was that as that

Lasse Petterson

Yes.

old a this know, you As case. is very

subcontractor and was responsible and client We with through on X hole it spill. Some here a with we in responsible not believe where the lot by also had a And of so punched incident for discussions a subcontractor. directly forth. caused a pipeline we caused this an been authorities a for years a that have ago, the who's were that responsible we bill,

resources spent case a management was of pursuing on this out. drawing case. and We and being lot this time However, discussing

then which So better a decided us this -- that plea to and for a this miner, we year, as our get probably it on with -- business. was company to

are we are we that us. for claims in responsible being million this with determined $X we conclusion an of spill, the And involved fine time, came matter. be successful would if in $X aside not the agreed we to then guilty million on the a that at our not set in have pay civil then $X for which And of So of plea. this by amount expense that trial the million, is

Poe Fratt

guess, was quarter? Mark, I question that's in this will And recognized simple then, first second of Great. and recognized if the in the second been quarter? And be fine recognized, any

Mark Marinko

first Yes. recognized quarter. We've we actually already that the in --

wasn't not insurance that it we aside, also called a or restricted restitution that it's to set awarded That at plaintiffs. hit P&L time. has cash. the in The And was the expect was impact. essentially million there So believe to $X P&L that's that, cover this point

Operator

questions. no Tina hand would the There like over call further now Baginskis. to are to I

Tina Baginskis

you joining earnings our We this Thank we the developments you. our discussion forward business next to and appreciate partners, in during the initiatives shareholders, of and discussion. about Thank and look support our business. We thank you important for in you. us employees with speaking

Operator

this conference does Ladies conclude call. and gentlemen, today's

now disconnect this at You time. may

Great Lakes Dredge & Dock (GLDD) 3 Aug 212021 Q2 Earnings call transcript