GLDD - Earnings call transcript Q3 2021 | Great Lakes Dredge & Dock Corporation

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Operator

Good day everyone and thank you for standing by. Welcome to the Third Quarter of 2021 Great Lakes Dredge & Dock Corporation Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] and please be advised that today’s conference is being recorded. to Director conference of like speaker to now the today, Investor would hand over the your I Relations Ms. Baginskis. Tina ahead. go Please

Tina Baginskis

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

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

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

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

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

Lasse Petterson

Thank you, Tina.

working XX-years recently team. comes of industry and of closely to at Drilling. financial would quarter, financial Great and us start our Officer. to we most maintaining me with will Lakes Financial strategic member leadership Before Chief nearly I as Scott He CFO including like Offshore was our Scott the Kornblau, financial experience operations, Diamond of with the the the executive of has the our as results a plan introduce who joined on integrity oversee

the an We on Now quarter over financial to I for it ended and backlog. third improved a results the turn and quarter Scott update solid will discuss with results. then

negative impacts first For the half pandemic. of COVID-XX from saw substantial operations XXXX,

been and in our priority current And in will this is always tool important to goal. be all that we of this the believe safety Our an people. achieving has situation, and ensure vaccination health

in As became now we parts have quarter, available our widely and have our target the organization set second target. vaccines all a vaccinated, reached of we to

caused we quarter, safety largely on Although and did frequency operations million an our increase in the in at-home the inefficiencies related however, performance the third inspection $X.X decrease we of first we $X.X COVID-XX successful, experience projects second costs lingering quarantining we were and realized project by easily not a in the and million efforts third our additional and COVID-XX we on-site quarter vaccine have costs related going and will $X.X efforts reduced total impacts vessel. confident vaccination that improving, in seen to ensure Direct quarter, protocols of year-to-date. are saw forward. and a attribute some efforts for $X quantified, in were margins, crews And supervision vaccination million COVID-XX cost testing project in COVID-XX. Indirect allow quarter. to Today, the for and our which our management are million to

we the to the work due - to impacted, COVID-XX in projects to In ports. of Gulf and project Ida. the addition were to and experienced debris our East impact, Several in returning Coast delays experienced delays on due we the Hurricane damage and to

quarter in income EBITDA and We in million. and Terrapin was Island, with vessels the $XX.X adjusted ended million quarter. the back of that are net a of affected resulted damaged our the vessels, the write-off. unplanned in work of six-week One storm, All at $XX.X fourth

awards, will improving Scott project currently the fourth are expectations with we backlog, discuss in Unfortunately, we I drydock new results efforts, now and to results COVID-XX for improved or the quarter the call Given turn around project which XXXX. results, year, further to of achieve vessels in and commentary market. expect remainder activity coupled the original of further I to mitigation of engaged, in fewer our even the over provide we do expect our XXXX. the then for the not quarter, some will with

Scott Kornblau

morning, good everyone. and Lasse, Thanks,

start giving results. on Let color by our third-quarter me some

higher adjusted decrease The XXXX, million. quarter of coastal third contract prior-year compared revenues Ida, in $XX.X revenues in we quarter-over-quarter for caused net current by Contract a relatively to foreign quarter profit mentioned $XX.X and the revenue margin compared offset quarter-over-quarter revenue. XXXX. capital, and the to maintenance, quarter the represented in Hurricane quarter $XX.X quarter partially was this were third achieved delays million the and Lakes due of the Despite XXXX was as revenues, Rivers to a in million of $XXX.X expenses. previously decrease of or the domestic profit and XXXX XX.X% third quarter. decrease the For was million million, at lower compared gross X.X% protection flat EBITDA quarter income million, third Gross was XX.X% and $X.X decrease $XX.X to by was

related by to the projects. in further which million was of impact COVID-XX During addition delays gross cost direct quarter, affected current productivity profit several and affected negatively $X.X

the $X.X engagement Group discussed Boston down this earlier quarter Consulting Alabama. was and were of quarter from due quarter The million of decrease to had quarter’s current million the XXXX use was was quarter, to on third to in $XX.X expense $XX.X rate returned the of in the million of The a the XXXX third preparing to from in million million and XXXX, was due, quarter. income the million refinanced XX, for current the of year. Terrapin the Dredge call. Dredge third net a to quarter the notes and quarter XXXX quarter, non-repeating XX $X.X $X.X XXXX, of to primarily quarter the in third $X.X received lower the in last the up tax for returned Alaska, Income for quarter. credit interest compared in which up expense year. in third for the expense loss on is to XXXX, prior-year start million, of last $X.X the large million $XX.X slightly $XX.X million decrease prior-year primarily Alaska over for part, During a third third $X.X claim the G&A the work earlier Operating is million, Net in the quarter $XX.X senior interest operations which in Island the Mobile, same of quarter, due is the from of the million, XXXX Island work fourth was the Terrapin we to quarter drydock. income

adjusted of third Finally, prior-year to quarter. the $XX.X million third EBITDA of for compared flat quarter was XXXX

fourth to Looking $XXX in in less as expect to revenues third the scheduled range ahead be to to quarter, the million drydock have million $XXX to the we vessels quarter. compared of we are

quarter. and G&A based to be up gross a of on in expenses, line the third interest expect margin third with to and be certain We couple annual expense to quarter of compared expect million timing we dollars the

XXXX Capital the turn related me $X.X had $X.X respectively, to quarter of related million moving Multi back of new and to million maintenance turn over rock and XX, vessel. his hopper new new cash vessels, $XXX,XXX outlook for were on let XXXX, and for of $XXX.X of call was X.X the $XX.X the continue the million cash bills which will Capex, sheet, in to our expenditures dredge, installation at we With no the to the the draws design Next, for $X.X where remarks third the to our I Cats for million, revolver. have September Lasse million and that, balance on construction forward. the scows of

Lasse Petterson

In of we U.S. of face all dredging has as big expansion, we strong. to in $X.X and and the on including reached the coastal billion. market deepening, prioritize as the track that follow protection Corps schedule to restoration bid the maintenance impacts domestic COVID-XX, and projects. XXXX, of just continued be port Engineers types And and XXXX, As challenges port Army see and

deepenings several see and of continue Sabine, bids will channel We the ship Houston technical expertise, XXXX, from port that our next us ideally Mobile, projects for Freeport, for large multiple port and of experience, deepening with are suited These Norfolk, Great diverse excel we the expect phases will in safety that additional product a years. as phases we performance, can and Lakes, fleet.

million $XXX the slated to was in would from We In the bill, over Maintenance billion, support of be levels. Senate. Army It budget increase for budget is that which Harbor the XXXX XX% an House year’s Fund, increase is the approximately proposed projects, much-needed course prior dredging $X.X infrastructure to the billion, XXXX Corps, an of the through over continue receive $X.XX the fund. and operations Trust the including see by

In addition, flood dredging. funding infrastructure the climate and billion to additionally including change, projects the be to $XX.X nation’s passed in improve effects Beach control, $X.X granted for bill, wetlands where the the the Senate of Corps U.S. trillion resilience and restoration, will waterways

anticipate disaster resolution With dredging. in approved we was to restoration will that there Corps maintenance which given will about an the $X billion additional go be continuing billion September, $X coastal relief, for in the and Army

bringing quarter were bid the awarded $XXX backlog work, third in quarter, resulting new a to XX.X% $XXX year-to-date we million. During million third share, in market our

decision we quarter dredge widening midsized on with support Conrad XXXX. new Harbor Houston. optimistic awarded projects, of in of ended have notice on million added two million. quarter low award in Oak pending dredge an market to million for bids the by $XXX a are bids we Regional which domestic additional announced not budget we expected that Project Project our XX pending an XXXX, The low and are both, of build are XXXX. Atlantic the Houston that million, pending, to with $XX.X Post-quarter-end, I the an to addition we strong in award, hopper Dredging includes is client. Shipyard of And Beach final if schedule. low still channel The investment And the award. announced as for receive pending build awarded were the first in this the In Renourishment $XX.X backlog projects in and Project ship South proceed Included in to Phase To we one, $XXX options and our Island bid port and deepening, by new delivery Louisiana the will FID LNG hopper to

we in continue our future the ESG with this current the market. to efforts, and we we demand and groups addition that various result equipped projects we existing In to fleet touch the and organizations U.S. executed build, standard all to and productivity, that build technologies meet improved of believe state work we we areas the that an fleet leave environmental this upgrade as of to ensuring growth we philosophy, impact. that are to support equipment new increase non-government are to support our well In is and new with environmental conservation To relationships a assist robust with improving will in our and safety in continue that perform. committed

continue partnered which with the Jekyll Hospital, by mission we to Turtle approach coral of injured example, Island unique and man with or Florida turtles Aquarium, whose a to have For save has machine, to partner rehabilitation reefs. is we

wind and announced March, in the with offshore administration’s The offshore - bidding a advance to a the public rock building with wind first with increasing Biden the four-pipe compliant and enter by energy are power XX-gigawatt of of on vessel for Act capacity offshore administration XXXX. Anticipate opening delivery fourth to contract XXXX, valuable US-flagged wind multitude developments, a Biden builder farm a our subsea inclined areas for common of market the installations projects second have Major a the in initiatives parallel, we the to in this source wind projects. House in goal by new environmental renewable Lakes market half for the plans support and for will decade Virginia, Great and they the in process Rhode wind wind as and for turning wind administration’s growth. improving to strong the late offshore energy In nation’s The financing Jones foundations. of installation White RFQs issued of for generation. opportunity that of developers planned coast continues selecting with Orsted, for generation by wind XXXX York, beyond. will confirms Grid suppliers Dominion, are the Massachusetts, XXXX energy. this Equinor, the farm New provide farm already for target Now permitting, Alan developments of like new expand expected quarter for sign new And offshore vessel wind This turbine Island. year, to

York proposed X.X in the XXXX, power New with generation wind sale BOEM Bight New of notice Additionally, for issued additional area for offshore potential June an gigawatts for a York.

developments offshore wind remain are here be of US, offshore wind offshore confident booming installed industry see in are in the more focus and and capacity the returns results will and for than and product As generation domestic a the our growth resulting our in environment that in continues in assist with provide In COVID-XX performance. wind will challenges the And global us employees, avenue years short-term that our duration execution ten on for initiatives in globally for ongoing strong for developing will and positive optimistic safe wind to we the our an is next through offshore demand the project Great to coming operational conclusion, improving Lakes year company. expected market shareholders. gigawatts strong XXX to we U.S. this the working our remain years. markets crews will

I turn call over with will Now to the questions. that,

Operator

question from Thalhimer you coming Adam and is our [Operator Davis. Thompson Thank Lasse. Instructions] first of

Please is go ahead. line Your open.

Adam Thalhimer

calls He the guys morning to Scott. welcome good

Scott Kornblau

thank good morning. you Adam

Adam Thalhimer

So I in on with there thanks margin big the was little baked details QX? there flat gross revenue. all conservatism being for just if on QX, front was a the curious

Scott Kornblau

drydockings the say I we kind looked I do during now. conservatism forward, was this the Yes, mean, always right have of we quarter. When plan. less wouldn’t

be with side our side second look aligned should QX should than guidance, margin. on the or if range, is expectation the the but better last couple chunkier But versus calls don’t a that I compared much that I give QX would be this that think of think the so we first. point the in half gave in revenue it you on announced to we QX QX. either

conclude put that range. in that is that conservative there I So I think and wouldn’t be will in we

Adam Thalhimer

business, about ask then and just just see inflation, the how wanted And QX, then that, in and year in of well? you waiver to kind general high next as impacting level how in that

Lasse Petterson

markets. On in the labor see we market do very is the supply, what tight

reducing I is are have new the lingering some our of COVID, effects we of think the to there projects. which number that applicants

is So going forward. tight be fair do when labor some a expect market. see there will impact think we to inflation mobilize we some labor in I on rates And it

Adam Thalhimer

dealing What about fuel with and so how are that? you

Lasse Petterson

hedging we consumption. fuel off Well, are

projects. So we new include that in our

Adam Thalhimer

on year? should then fall think vessel the on congrats And on moving forward rock that. we How about next CapEx

Scott Kornblau

Yes.

know, So in negotiations have now. But we I vessel if said $XXX still past we you around the be right think million. are in should the with right that

is of million payment on, to some take weighted and could in with We in payment a schedule, and XXXX range and this expect payment critical The yard put hit in though, year. of see you the probably Upon XXXX. this that a will if more the much million. is year, about $XX will that $XX $XX million scope happens of back outside that we will to equipment we shipyard, the have the signing

I don’t the we But yet than again, XXXX can for So and numbers heavier through much, negotiations. are you on the half tell much I exact XXXX. still second be of will the in bill have going

Adam Thalhimer

helpful. is Thanks will over. guys. That Okay. it I turn

Operator

CJS question coming And next our Jon of Securities. from Tanwanteng for

Your is open. line

Jon Tanwanteng

heading my growth you right wondering, And taking size given for the expectations just of morning you into the guys. year we Should next out number number the if way think any there you questions. year, a market heading seeing size and now, Hi that? two, as else guess is talk in we if QX. for into or could bid QX are what have about should quarter do one. of Thank lot backlog, obviously first given next your good I I comparable was your or think we about of QX you how size

Lasse Petterson

Yes.

focus when Corp. and made see through available on for increased Engineers. expect you being We next year, for bid funds a market the bills going infrastructure also the strong the Congress

in what should saw better is we I see market or is, similar that think than it XXXX. we big a

we next and to do addition a fourth year. In that, fairly backlog quarter quarter first full for have

there think new next next good for strong. year. I over enter activities. six to So flow opportunities the for we contracts Still, the is months, are very see vessels activity some first will But quarter,

Jon Tanwanteng

three Thank to then as front years these and on opportunities two, great. I completion. and new it then the advantage could number trend And if new opportunities there you that the you. fall so that you for is rock follow-up Okay, available to equipment vessels over and wondering next spend vessel have expect other wondering, big I that on was investment one, you you or know, was of take plans in I going financing next to number and the right for CapEx inflation and of how the kind about the are options question. talk relative nears the of as to you for out now. year

Lasse Petterson

have Scott about to talked bit financing. talk a and I little it let’s about

We one Conrad the that option will at have next is build an year. expire more to address hop option yard,

So in there that of one the building we be needed do we the other more copy that are market going are we forward. evaluating equipment of whether that or a types see if will are should we

will the fleet. market dredge type either it So come I for exercise to that will is think or of new fair a we the say we option to

Scott Kornblau

Sorry, go Jon. ahead.

Jon Tanwanteng

when you done. No, ahead go just first. I follow-up

Scott Kornblau

installation going we the remaining new now it, as vessel the was on whether of being that piece is we not, have address lock hopper likely to hopper built and payments of do on I financing still a just the the course, well. or

vessel. XXX rush we from for us have have favorable very if cash no time to at will around to that and we untapped the looking want what there mentioned, terms decide but is we we the new various front. an we a of options, will timing revolver the we to flow hand operations we anything want already million make methodical. I cash, do if know, on the the started decision with be something, have do do, payment and Meaning I cash of luxury on have to and financing have As

Jon Tanwanteng

just ago have the how price the great. have Is And given relatively received guess you up actually since costs created a advantageous and, how was to of I long much labor field would hopper. that relative that the terms in was option second pay, you gone Okay, that for that past, that option? option you in

Lasse Petterson

would design since it of is I Yes, can are by we copy the in efficiencies. and fabrication you or see a say building, also in vessel have first you that advantages

You are building coffee. or creating

yes, for us it. is go with good ahead So project a it we if

Jon Tanwanteng

in I you. Got Thank Okay. jump it. will back queue.

Operator

the question, for & And from go DeForest next ahead. Please Walthausen Hinman, Company.

DeForest Hinman

vessel fall Is you. about us going just of allow see that steel thank is over time? a decrease hopper to Hi, are rock these and lower to negotiation are the prices questions the we do of vessel part barge, level, high a highs A you steel potentially were projects other years. the the some built that and level if number and of prices there of couple we over talking on the at it construction price, decade looking

Lasse Petterson

The answer is yes.

downwards. provisions taking price those have part which the and in the on upwards we contracts both of We developments, risk where are

DeForest Hinman

forward any it And being Okay, for moving as contingency tied DOE forward we this the available? to is vessel, financing without is with decision can helpful. move that the fall relates potential there to financing the that or very rock

Lasse Petterson

to need obviously with forward the move build. we No,

due had of Ida. possibly Hurricane in We some delays discussions slight development yards the to the the have with

the with we So ahead project. are moving

support And there the for I is supply market market of will to the think towers. developments a both XXXX, and in U.S. XXXX, generating there in starting equipment rock offshore in be supply the internationally. under of in the wind installation tremendous

with are that is market believe forward as to this award good but we quickly a project then moving very can we So move as into to we yard. a

Scott Kornblau

conversations soon I with arrival, And as move only what that and we that decide prior like. on DOE well to just financing do our meeting I team understand know DOE, the has I on option look with plan forward. if to could him had is to will But the add not my

the we So just tool can that we if decide toolbox it is to. another use and

DeForest Hinman

we like in vessel? past Okay, thank you. we or the IRR return of when potential XX some to investment Island, fall Are were incremental the Ellis rock what on is comments the we for the EBITDA. we we what the And think then in projects had this terms prepared doing call larger discuss

Lasse Petterson

the have same said is the to equipment. on on be dredging in as expect the we IRR range we calls earlier we that get What our

this investment that is be. to where So anticipate we

DeForest Hinman

is? Can remind that what us you number just

Lasse Petterson

What we looking teams. at is have set we on the that dredging side are high

will new onto capacity that the in So replacing and capacity. teens, when market low it the it is bring is when teams

DeForest Hinman

it these this some the price gas. speculation the importing and push very projects get the U.S. know on the is to everybody. some energy needs some part any is provide you my despite just And in you. the natural seeing that helpful thank spreads you color gas fact had Do any out are I the but to color might backlog cost there. could Okay, the, of Maybe know that briefly, in get is some of to notices I is of colossal on natural in these just there proceed, in final the notice some meaningful mentioned we we be rising prices the a then And gas really the you very the world environment. the still of terms needed markets to but interesting There to U.S. gas of between the are of that be proceed that LNG are question, there. on asking would think have recognizing out

Lasse Petterson

the American [Tellurian and have our spread see in $X, and together – you financing. interesting we putting is a see very beats will is happening I gas have now is, similarly coming That U.S., My Stock to decade to to also so and (Ph) of positive be prices about And the you is It now Exchange around the now interesting. we if is in Tellurian Souki] moving $XX the you is U.S. here NASDAQ to Europe talking listen the $X that see it news, what is from know Clearly, in one dredging we next to bank early start conservative move or the next news. so, projects if consortium FID would expectation. anticipate next up to the is say very for and with that late to the anticipation year. year year maybe following

DeForest Hinman

Thanks questions. and all thanks for color the taking my

Operator

And Fratt, for Capital the next question coming Noble Markets. from Poe

open. Your line is

Poe Fratt

fourth of either what is of burned. pretty an the at stick Great, do thank your XXXX, high If second, first of aging you that just backlog to is if the do going and revenue in and backlog idea so backlog. quarter of backlog, for going have be could then all much. a second, could looking Well, have Scott, off sort aging give the welcome we backlog, on number you you me the an for you for then an

Scott Kornblau

Yes, good morning Poe.

exact roll XX% into of for in backlog that of quarter-by-quarter but the the a for QX, So don’t QX, we does covered to earned quarter. and And the good chunk QX. I are XXXX, well have be is then breakout expected

second are pretty half of that and on but first some of the have QX, we for on the the rolling fully for projects some year. there is into that year, visibility of bidding to right much So half next now opportunities covered

Poe Fratt

for can bids, press then - split options. pending out at low in Great. the you when bids release, options award thanks the And the And low those putting versus options. look that, you and

was in for third? it number second a I options XX think the million quarter. the you Do have

Scott Kornblau

No.

Lasse Petterson

Poe. No

Poe Fratt

all is That right.

sort fourth at try a But for can of of me margin? to XXXX XXXX XXXX you can quarter. you well from standpoint. like at gross think could a you and XXXX, targeted of standpoint full sort - you idea, of from to first maybe your frame frame the you original a you give stab can expectations then, pretty an backlog do If did looking And XXXX year revenues take or could half recover the

Scott Kornblau

through Yes, the so are going we Poe. process. still budget

color on more make on give comments, of will the in though I couple call. will a meantime. next I So the that

year cycle which hopefully the COVID course, sign backlog next though, to say strong minimal, heavy up way drydocking calendar, good mentioned, next period of is Island, the with for the G&A the the year. the a for the and I budget we And along the Lasse business. is increased, a And go And which we should just gearing have be the a have is will as slight may that side seen hopefully, built we the down As we XXXX see includes start runs period. into in that of drydocking. impacts, worst uptick will obviously year. also a then be of Ellis time to wind of

the give So color on more level just out. kind how a will of see shaping call we some year high comments next but the little on

Poe Fratt

of Scott Ellis and the Island do frame year middle time should Great or? what sort of

Scott Kornblau

probably it middle of Yes, QX. is maybe the year,

Poe Fratt

the whether Okay but on it the with off and is bat, QX. of the quarter lot to kind - then fourth right at of this into would stronger. quantify quarter, helpful Ida is know want weather didn’t Any that be a out when I you then going to be And might color the because you you thanks and fourth quantifying have revenue can maybe a But color more any of just costs margin and margin to to sort COVID, point you kind that indirect dealing you basis - or indirect can from COVID. for QX the impact, COVID, or that look got and days that little lost third you a us give quarter was pushed of maybe impact try frame the COVID? within you XXX cost can

Scott Kornblau

know is We COVID is even Let quantify one indirect that we me to and is on an But is the put don’t number that real. my it, it is would say want higher but take is difficult quantify. you It the it not right. it I exact to to direct belief difficult it. there. It the the impact. are is than

Poe Fratt

indirect the Scott direct? is Sorry, lower the than

Scott Kornblau

these indirect impact direct million impact is far that seen say No, I the than so we year-to-date. have of $X.X would the higher

Poe Fratt

the And a is Any that frame weather quarter. That the helpful. Okay. from impact third to standpoint? on revenue on then way

Lasse Petterson

saw and broad Yes. another course, could spend impacted of you also by that quarter, it, on part quarter of as that revenues three store to which say we read third the four Well about impact, That vessel moved fourth third was in the to had the hoppers. quarter in terms, for from maybe but and was was, I remarks, in where we and had damaged mentioned from repairs, the to in moved six that to nine Terrapin to quarter-to-quarter. of not five was And was what days at she In was already quarter. days dock eight my weeks drydock got was of

Poe Fratt

way any Lasse? quantify the And impact revenue to

Lasse Petterson

off bat. Right No. the

Poe Fratt

Okay. And and that Is the the quarter dropped the looks it multi of fourth us CapEx like, give can just in or you CapEx then a quarter. a bounce fourth would roll quarter an helpful. number back timing in from be third there quarter your second maybe idea to will

helpful. CapEx the XXXX bit, You be number number fourth for little but the gave us sort a of quarter frame would maybe a

Scott Kornblau

sure. Yes,

so and rest have CapEx. September, $XX to We million, do through breakdown kind scales the year-to-date, million still million million on million maintenance a on hopper, are CapEx of quick and on track we full on to $XX the the We or $X in about multicast. on the $X have were year So, that. a XX $XXX a payment new

a may reiterate Now, be that that $XX million. would anything of include will in installation which shipyard range have I execution assumes, not about for does said upon what before rock vessel, the new that the we contract of I

Poe Fratt

queue be out, when will today be will And the out later Yes, maybe the or? queue understood.

Scott Kornblau

if Yes. to be The later today, plan tomorrow. not is

Poe Fratt

capital like, it cash at of that cash quarter Okay. items, look working just as quarter big have missing else And the third figure as working is there or you cash capital I’m anything drains at either that to any any big look I’m the items looks far impacted if trying just would number? third sort when just walk. other

Scott Kornblau

offline. ordinary No, mean to of I out nothing with the work happy you

jumps nothing we to would out that to problems call an me where having are and you anomaly. If up reconciling I ended

Poe Fratt

capital had like then was but Yes, I Lasse, queue. working other out maybe figure whether the so at looking overall look just trying use looks XX at was market. I negative will a to I I’m the it - dredging things, can to or you that just And look million then just when Scott at the cash get

not Your more competition but win less - it can at comment there, looks having you a rate, whether of an look impact high-XX are quarter out seeing is down whether level. down, about it the sort another? went competition, it or the just in broad pricing When competition for of one you give you was and sort like way on

Lasse Petterson

three projects at strong good industry years. taking period on market the new building challenge front, do Yes. Clearly, new Corps Engineers is been of the from that quite service with so U.S. market. budgets to And the The the and a the competition, to see the our build industry is a of in long building we for quiet and because good the vessels, again looking industry, which really last is very the dredging dredging refreshing there fleet. good has

harbor. For Middle new dredge to of added delivery and also us, the we the we the in now largest dry you the East is bought or mechanical U.S. two our we competition And know, building are dredge from as vessels a then, by large since we and from margin. and markets took hopper was some Island, market which a took Ellis back

well. increased read, expertise good it project and as the would is this can budgets two and market. gives improved When new can both huge one large you court, rise on it is say in our fair diverse focus then are we our difficult comes special. to to and this House, we infrastructure addressing the there projects with is hear But is in is excel competition, share, market improving have because strong, every all in market to for So where general, fleet. The with our and which Senate driving and is in and on we this deepening the which as is I say, projects

we you easy and execute. large fairly to excel is monitory can local that but taking will terms, fairly with smaller most see fleet contractors projects Sometimes our complex, Once inshore get projects on of expertise. projects the are dredging in that and

market the market. needed both have exactly and in and It the So are a with dredge. we that good fleet is a renewing competition fleet it is we aging strong as the

Poe Fratt

And process was congratulations on the - was RFP to that was that open about bid. will my Houston. as of that an you I’m not when sort think that be finalized discussed the talk understanding process sure that much. But and just opposed you can

additional potentially you project and are when position get can So XX? then understand, that to that me in within on going does better a is help mean, you finalized work the

Lasse Petterson

Yes.

port you press, in contractor announced that As low the the we Houston announced. the and the and select the XX of has are has million been have value bidder, contract the of seen

or very are forward We items And a are to believe are contract. and full the is shortly. just between we $XXX phase looking I as and forward, larger the next of out And been Houston in for contract million contract. the has a discussing will award million size some some bid looking shortly announced. that $XXX we come the points that in then is

phase first is and coming in us winning phases. phase up So well positions the clearly of work ship channel there the next Houston is for a or the next lot

a get clarified shortly. was clarify in first with Just which of to looking being forward and is are we project, options discussions to one days, the the signed that now on scope our really is phase the there up port

Poe Fratt

it your could your or footprint at I squeeze more environmental just one willingness if on to the in seemed that was highlighted press carbon the look just, And and release project like talk Can fleet emissions, any? maybe guess to have if your important your modifications of you an I what that. about to part potential you and fleet, that from make might was

Lasse Petterson

We new top are scrubbers engine. emissions technology reducing not the alluded much as U.S. the with it vessels fleet is our by XX%. which dredging And putting vessels to on all I on are the NOx

the equipment environmental footprint and do existing what the our substantially. add we take we we So scrubbers and that improves

Poe Fratt

you much. Thank so

Operator

CJS your next the Jon Mr. of ask is Tanwanteng Securities. question question. And from Please

Jon Tanwanteng

the a on. on from cost a number for just was I operating One either side side was and or the drydocking couple and me. one CapEx QX both in Terrapin I wondering what actual Hi, QX the of does then follow-ups two an

I think, anything insurance guess a so general clause another I’m there heard coverage from that? any by is was either vessel or like correctly from I struck wondering I if their or I whether liability

Scott Kornblau

The a QX between know Terrapin I drydocking exact about the breakout and million dollars don’t total. QX. is

under was the We - a dollars. dollars going as million retention. it a we are don’t think million to under our far damage point could well this As at we hit

it looks right cost our actually up be under some exceeds is now. could there that So $X.X is like coverage. If what shaping is million. it That it insurance

Jon Tanwanteng

And I you vaccination you wondering, was so was in guess if and you. the Thank for to progress seen kind any have made. just it. what and COVID got wondering I the QX your plans Okay, then of expect costs I given far have quarter?

Scott Kornblau

Yes.

I a was over said, million. you will $X.X had that this tell $X of I QX, under So we as piece in a million little September

in But And it in will decrease that we trend starting saw be down. So I that. standalone a don’t my going right it September, hoping going the is to see if expectations still I’m a zero. trend month-over-month XXX as to think is direction.

of no and in would have that million there direction. more color new seen kind the none it the but will we where definitely So right but next I is moving actually came assumes call anticipated, variants our give on call it right now, that is course $X us of up. That

Lasse Petterson

September are that, at positive XXst. XXX% add case we that company. was the in we Just The in our vaccination to last now case, had

in had XXXX vaccinated have total. we So staff

get think back way operation. make normal We sure have forward to few. but commendation, the few to very a And is I this that we

and reduce COVID are very costs and I’m improved fourth quarter improved in about optimistic operations. So the

Jon Tanwanteng

Okay.

look should million no, other As nine next again think possible? on that of have XXXX, variant basis Delta said assuming an that just year million of you XX oh apples-to-apples at cost an we we shouldn’t maybe no you -

Scott Kornblau

- XXXX. our and Yes, mean, I will I is events that won’t XXXX a in we we repeating mean, non cost have that is, expectation have a that in that

Jon Tanwanteng

thank Great, Okay. guys. you

Operator

Investment] Instructions] ahead here from And Hansel (Ph). [Stephen sir. question Eclectic [Operator from go coming our Please is next

Unidentified Analyst

to Thank in there for on extent to as don’t quarter. which congratulations the you you the that? the to about performance. and I’m last shares and the and the basis, in extent year good on curious bid market year-to-date the relative bid worthwhile to are quarter on that, third at bid all which is a more of talk projects And that continued also to the market it

Lasse Petterson

far because awards, that In at our XXs low look before and margins because there being the did, the in is the was XX%, we year expertise it the we high year-to-year. projects not to be XX% the we our XXs when Clearly we year decide our Well, bid projects to fleet, mostly market we XX%, ones of at when are them from various timing best of suit selecting this expectations and it share, XX%. the projects so those that projects. on size with should we XXXX the look around the last in awarded year was but our project and

are selecting the share fairly us will have So process in midmarket the the include for give projects that robust do the a bid best sure ones around the that that we and yes, make we our and company. contribution ones

Unidentified Analyst

Thank you.

Operator

Instructions] on [Operator don’t point it And continue. At like over would I we to queue, questions Baginskis the to this Tina have more to Ms. any turn

Tina Baginskis

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

Operator

you Thank concludes today’s everyone call. for this conference participation. your And

And disconnect. I’m the transferring you speakers hold of now back the all to may presenters to conference please You room.

Great Lakes Dredge & Dock (GLDD) 2 Nov 212021 Q3 Earnings call transcript