GLDD - Earnings call transcript Q2 2022 | Great Lakes Dredge & Dock Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Q2 2022 Great Lakes Dregde & Dock Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tina Baginskis, Director, Investor Relations and Financial Planning. Please go ahead.

Tina Baginskis

to quarter welcome call. and morning, our conference second Good

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

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

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

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

Lasse Petterson

Tina. you, Thank

As expectations. stated results in quarter our meet earnings release, not did our second

pressures navigated we challenges. weather adverse and conditions, inflationary including a dredging combined delays, project As challenging some chain environment, factors, driven external supply with atypical by

three projects production had differing we impacted and conditions, quarter, the negatively unanticipated margins. During encountering and site internal which

discussions the impacts contractual our working with customers. now resolve We cost to are through

and agreed until delayed profit finalized. However, these recognition is revenue are upon discussions and

commencement Coast. the extended vessels cost upgrading several seek to weather lines scheduled unseasonably We to which rough also by events work projects on had projects. sea These time subsequent delayed shelter, conditions a and stop along completion several East impacted

estimates to weather future Unfortunately, changing, include estimates product the include weather. severe will, projects, and seems on we historic frequent weather event upon be based patterns adjust weather records. Our days to more

increase Although which and need our short-term island channels recurring the and events to an erosion and to impacts beach add in of turn, these business. caused that, nature shipping renourished our also years, be weather barrier in to maintained in ports of following severe the caused and projects, they sedimentation

the her quarter, of During Moreover, automation cost weeks dock Dredge the Liberty dry dry several on labor, the operating for the inflation extended dockings. of by extended saw high-earning The cost duration several delayed system and and we chain had impact supply dockings new dry issues supply projects. of mobilization installation a Island as Hopper she Also process idle dredge extended systems to equipment Carolinas were dry the and Channel eventually in Ship the which These delivery quarter dockings. work the started project, in reduction where was Houston July. third month by increased her cost delayed mobilization about delayed. of of late, the periods new delivered emission

beach and for QX projects quarter historically in impact projects second bidding in QX months seen However, maintenance the slow following the in year. in their was the core the and scheduled Bidding execution major start delayed results. first and of for for we on unusually QX, two resulting on our had that the the projects current a impact completion of for delayed assigned have for

Army now of Corps full two more and the will expect QX, to Bidding Port Engineers new early for this years, pending since use with year dredge Phase idle in the of and is II strong and previous notice XX be not one were and in LNG quarter. the So bid XXXX. local And picking Project as market in private dredges for the Houston substantial potentially these the or bids addition, bids for in projects. potential state and bid second of Phase up to did as III materialize market the of part as for as the projects year's be proceed for clients on we

on As up we the well the enter executed start resolving as contractual half mitigating as first QX, we and from the are the focused schedule that issues new on are year. events ensuring and in of projects

Great we the second meeting it a Despite not half of fully strong. full year. not half the expected of Lakes However, to year in is do the of challenges, year's outlook anticipate short-term first the be the the as expectation effect event, for remains recovered

to see facilities by benefit The driving market We Europe will Great Engineers our expect demand years. Corps XXXX. towards backed the market position add from of continue and XXXX and we in the the U.S. U.S. to in Lakes that FID, government increased our energy expect to strong we Army here is markets coming export situation the final in in which LNG support

in dredge, on new program which Our the half the Island, build Galveston the is with XXXX. new in to schedule be first ready Hopper for operation expected is

and option June, XXXX, exercise build productivity fleet the -- emissions. engines renewal sistership vessels. the in which will through port are for we to upgrades reduce or In have best-performing in be program, several our decommissioning we the that a strategies installing efficient newer, tier our invested to Throughout announced fleet help older conserve Island addition, in we more our of After fuel will operation in ready Galveston XXXX.

now sulfur environmental ongoing position our low will all hydraulic future to fuel renewal fleet a market using minus and is demands. meet We to from our Our impacts are believe us well systems using program product current already biodegradable the bills. fleet avoid and

Rock the the formal month. Turning to of momentum Empire initiative. Offshore Wind this our gaining for It past is Wind Equinor installation contract with signing

to and for starts in developers for the I'll optimistic schedule quarter the very year, further and have with I'll business. the full further several a it XXXX. are the work commencing are other to now vessel projects in in our the as We discussions XXXX over operation Scott discuss market provide results turn commentary our to now and call then for around and

Scott Kornblau

Thanks, Lasse, and good morning, everyone.

were second quarter quarter revenues loss XX.X% of $X decreased second from which $XXX.X walking $XX.X and net was the revenue. Let million for million. of through $XXX.X EBITDA to revenues start year me million, Contract in higher of million adjusted second million, was by capital due results the in maintenance offset primarily project lower revenue second quarter. domestic XXXX The dredging quarter by or prior lower revenue, XXXX $XX.X was the our partially

XXXX revenue month about of less dry Liberty The quarter caused of the Second given Island mentioned. the than below guidance number dockings to previously quarter. a anticipated for Carolina earnings about call reasons extended the one to came in due Lasse XX% operate in last the dredge each on the

impacts. unusually of quarter weather second large amount an the quarter, last like Additionally, saw

of the and in Xx And XXXX had conditions. second days weather the experienced we unusual For the of on quarter number days in of issues context, production of a we to same of site quarter number the saw finally, differing projects, handful relating was XXXX. we most over

our we impact So with clients, results through adverse our the the on these go conditions have process of projects.

and profit to was XX.X% last by quarter margin revenue. compared the this However, quarter the X% profit we $XX.X and was get year call, the we prior in discussions, impacts decreased differing lag of until often the record to of can on guidance second quarter any don't that million Current initial weather after multiple driven given production closer lower potential Gross $XX.X site benefit than quarters the the which quarter affected gross million from assessment. finalizing condition XXXX.

Liberty of Carolina impacting dry of extended operating costs, the dockings addition, costs. came In we and and the most saw increased our Island at inflation

on bid While we'll were we prior margins. to in ongoing most increases contributing of are drag currently large projects increased working properly the for costs in account the inflation bids, and the future to the

$X.X mitigated time of Operating fuel, usage margin, for general of most due which contract award. million lower hedge year the our loss costs decreased the the we impact current the from Fortunately, the million administrative represents of to lower of large compared a as quarter, prior inflation prior partially quarter of year operating expenses profit quarter. at we offset to estimated gross and fuel our second portion $X.X primarily by

G&A and of relocation lower primarily million lower Second $XX.X million Houston quarter, to prior costs. the decreased incentive quarter $X.X due expense year XXXX second from

incentive quarter $X.X for on XXXX interest expense the in rate second and in G&A lower the the lower down and were senior quarter additional the million million second from guidance cost of came quarter to savings. in to notes on interest also the was the capitalized nonrecurring for was focus which one-time Second primarily and new of refinanced continued of adjustment at XXXX prior $X.X due XXXX of primarily builds. Net expense interest quarter guidance due quarter lower-than-expected than a a second

for the million same quarter $X by out benefit to income from quarter. Second quarter million $X.X million, XXXX the Rounding of quarter year of million of net from prior XXXX of in current expense $X.X net quarter income $X.X the of P&L, loss tax tax down income. the was driven XXXX income lower was second compared the

to we turn with balance our we where XXXX maturities second quarter $XX.X in until debt and cash Next, XXXX. no million of ended sheet, the

undrawn our July and build until XXXX, to providing to maturity liquidity extended was Our new us revolver upsized $XXX was recently the million, support additional program.

timing announcing capital million installation million, the new build million of half million third $X.X commentary Galveston and in for second multicast, Carolina or dredge to the Subsea conclude for the to upgrades XXXX. is and scouts revised $XXX fluctuate $X.X with greatly the Buster, million new of be After million million earlier our vessel based up Second for Liberty some on expected full our in payments. were includes $X to new quarter $XX.X rock the upgrades the $X.X CapEx. build, Island and second can expenditures XXXX Island, CapEx $X.X the and year maintenance which I'll on emission hopper for quarter, million quarter the down Booster second progress $XX.X of but for

quarter working by We the quarter. the and $XXX Island revenues of $XXX to of the dock million majority driven to third quarter dry between in compared Liberty projected expect and the the the second second the Carolina million. is increase quarter being majority be third from The both

Island majority and the that dry was second quarter, be the In are begin the most quarter. Ellis repairs idle entering undergoing expected projected in completed Padre work partially the most for dockings idle the currently increase, dock third maintenance dredges is scheduled Island offsetting addition, is the of the their and to York end third the Also Texas of towards be quarter are to is New to expected quarter, quarter one that expected of June. dry and after the third of by mid-third the the of to

with We half production expect lower impact. and year remaining teens from some weather margin profit gross drag the to be third in the quarter first

offshore the a is onetime nonrecurrence mentioned the team. adjustment Third to expected G&A the due mostly gradual quarter, ramp-up dollars few expense of previously of second to increase quarter the wind million quarter the from second and

to as Finally, net continue more throughout is quarter progress. capitalized interest as interest expense the should bills year decrease slightly new each the

the be we Lasse the of than XXXX second As mentioned, much to first. expect half better

While guidance, Lasse will provide going ready for than XXXX a to up to on fourth fourth to the what that, specific call forward. results, quarter his our quarter solid which the on quarter is I'm strong par, first give turn I'll shaping outlook not not higher, XXXX. appears back be if to the be momentum moving remarks into of With over

Lasse Petterson

in to Scott. group. and you, the the discuss I we changes with before operations discuss recently market, that the made take Thank announcement a like I'd moment But our

Dave the has Project have with decided after having position But the I'm of international domestic of Chris Engineering. years to Chief report XXXX, position and his appointment decided on $X.X experience. as continue We projects and us Simonelli, pleased Dave adviser and to a our of Senior the Dave we of President, us Operations; worked has our we announced have adjust more to of taking years for directly XX market company, and needed. billion organization. to on as many years And in of will senior and Chris special Dave's Simonelli, Operating they service of Acquisition work to that announce and I XX Vice with retire. Officer, Fleet than domestic and the Vice David Constant, So of to extensive see President retirement, bid. projects Johansen both Project the thank in to will both me. projects Senior dredging David reached experience, In Services for Both Dave service

earlier. of market be backlog expect as however, with later that bid as $XXX.X $XXX of will and the mentioned and XXXX, award, to the second and million of XXXX somewhat options quarter backlog the in $XX.X as options million backlog We $XXX.X low million quarter occurring bids award. million in in and in ended which strong with low year, year's We a pending and million $XXX last compares pending bids a

of has at Houston widening the second the the includes not the have be the the in low you phase, of XXXX, second the were risks accordingly. backlog second several are Houston Port As in which phase project. Lakes or work Ship won offshore we in The going quarter, our the late challenges, its but of projects At we we know, phase. that Great projects as successful and There the that Channel forward, first Houston bid on active going pending awards. LNG to bids and are end bid

invasion of sourcing our the pilot market. and is and I Both new in their $XXX client we after the Ukraine, dredging on the projects third of we dry we clients. will low mentioned, reevaluating which faces energy should in large still for quarter low has of port bidder received imports addition, substantially on seen work, which LNG. picked have Norfolk, schedules LNG Mobile, pending for of QX million in Sabine Houston bid projects of are multiple works in as of require to XXXX. quarter, and bidding project the that in our close projects FID Europe In two bids Ship pending bid and projects And activities July, up deepening increased momentum on for of gaining notice additional expect see represents XX% the are Russian in the quantities awards, post XX. currently start Channel based these Included were Freeport,

$XX passed strong Development for of which in recently, the that of Act this signed expected see senate from construction and history. of projects. Corps Since Army the as passage This it, the the to conferenced legislation legislation XXXX, XX U.S. for modified continue for also investments projects House Engineers is and earliest we and Water Biden and finance by includes hurricane help President other support of We industry. is protection, about to July On law the Congress the in infrastructure dredging, call XX, legislation Alberta, authorizes trading the order. version Resources new be billion and flood ecosystem restoration version their into recent to passed short

public proposals core. and support final to the increased house infrastructure the fiscal the $X.X of billion, strong XXXX. funding market sending Biden announced that year meet March June by XX, Corps nation's in XXXX, new The to capacity a financing advance their expectation the and increased would new passed opening proposal the offshore prior the initiatives Senate budget from million of agree this coming which to XXXX.In development build of White As Engineers for for both will likely the budget into to the $X.X our budget areas administration expand for energy senate and was House decade was the administration's goal wind be And projects. for respective House President another the entering on house proposal for amount, will a and Signature, and senate record

six for energy and new offered sale and gigawatts. ever XXX,XXX interior, of part the lease of out more to XX As of the York in administration's largest to administration gigawatts generation initiative, build installing XXXX, leases first the wind with of the up announced auction and offshore committed than January department offshore by in the U.S. New potentially capacity In blight wind acres area shared waters plans a XXXX. the Biden the to wind X Energy the power for Commerce, goal capacity

planned and be working in project the year late scout market. project by installation mobilized a future will employment starting York its announced the team recently focus York for New into through selecting the of for for rock like state they offshore Island built this, vessel The are Dominion, by in be The strong projects wind entering Lakes a content, quarters more beyond. issued renewable subsea of from will, XXXX. We XXXX. we the by base our two and award Major for for multitude protection XXXX developers in New this major and Great and will suppliers households new currently power the farm contract, RFQs, generating operations. and farm with offshore In solidifies the stop with of million using domestic of developments. offshore rock bidding Great installation a have Equinor installations farms for wind local Lakes U.S. York. the on U.S. wind the purchasing Avangrid logistics marine rock Orsted, activities in and New and in vessel wind the With Staten continue X the delivery maintain wind rock to parallel Equinor, generated and the VP process our to being to economic our wind wind award build the power already farm and are than

implemented wind, in we wind contractors developing with gigawatts equipment expect wind focused global the grow And XXX high. And wind over a demand capacity have As the business. fleet vessels as we confident seeking to call from industry the turn encountered, globally addressing, large XXXX the market here the States, to are the United questions. in years. we busy years new solid to very next offshore onwards. and offshore to offshore issues and activity providing add generation expected keep of strategic enhance is faced are be our although and decisions are will with more vessel, have mitigating made the XX And for conclusion, our challenging than be resolution booming we opportunities quarter, international that, with remain in we over installed contractual projects good and backlog, In and for our we to I'll second this next for to keeping the the initiatives the involved ahead we have our offshore

Operator

Instructions] Our Joe question come [Operator with first Gomes Capital. will Noble from

is open. line now Your

Joe Gomes

good the Thank for morning. taking Thanks you, questions.

Lasse Petterson

good Hi, Joe. morning,

Joe Gomes

in. kind to encountering The throw the we is you little first of wanted I color, projects one, on more out there difficulties a that are detail maybe get can

You in also also, mentioned kind clients. impact appreciated. Just something can? revenue be through have, quarter? that more you did say it impacting you be in the color would with And the third What negotiating the release of there or if difficulty that's or the size quarter any is will are the you additional that and

Scott Kornblau

Yes, Joe, this is Scott.

So we've the three projects deteriorated being site identified we the mentioned, conditions the that second quarter. in

to So hit complete the point. percent we is way take a the need at to catch-up get accounting a to works that

the have second to is take we'll until drag project in will to remaining - until end of complete the the we're So we the the prior resolve a but to quarter, that bigger dispute estimated impact project. have to unless able

So project. that multi claims to walk it in will But of the I also we're prior other kind in this still These There impact remainder quarters now. to the through. want particular right continue multimillion quarter. had three of drag were drag-on the multi, dollar a for seeing

We open take things are based have just gave not time. of on bid typically we customers the with this information very we they are. been have what We've customer. demonstrate when the at and are that working job conditions claims the on successful unresolved of tens dollars of These conditions been that through we the can millions that us our point our

Joe Gomes

think Okay, wind, helpful you on additional opportunities. out I you're that. And for on looking thank there the that's then mentioned very that you offshore

project. to of two take rest might mentioned when you the are the build years on do is looking and is, to these time, do the build, of go-no-go had not New you ahead think think three have ship? with quarter know I to where an XXXX half a you be you obviously, a a the contracts the you open and stand first of to yet. had And complete that I guess, second vessel one filling awarded given But time? the while you half at option two I going the option on that one York open with XXXX last

Lasse Petterson

at know, the vessel, you last of end ready back Yes of contracted as first will XXXX. in for be we and December the year, delivery it

six coming bidding work months. a are We the lot that of over next out here is

by next we have the so, of And that to And will have or time. of utilized picture vessel certain utilization we early end the the fully by are fairly the a of year year. that vessel optimistic first

we So together that Oord. a going say will we second first based upon probably We're would also have have make the into with But half rock decision next on partner have the outcome of I a of vessel They our this vessels. year. also Van in discussions, to offshore wind. doing those installation

and us the use such, is pick rock However, Oord as internationally they but run out to it, the an to the has case to down to we up are to flagged. And install option have we'll of in U.S. come go for it Van in capacity Canada overall. that capacity

Joe Gomes

back in Okay great I'll I you. jump on may more, And one that, queue. if thank

going You here understand confidence confident the while Ukraine Russia actually of projects. and term? are to to least alternative I gives near talked are starting what here kind for these and you guess, at the that fruition in I LNG shape for take you But and projects how look come a supply. and the Europe the on to

Lasse Petterson

and looking their the energy the Ukraine in developments energy in Europe Europeans and diversification and Europe. happened of supply. continues for happen situation Ukraine to more Well, in in are with what And

So in this the States. for direction in right the all United points here exports the LNG

be during we entering and are be contracts based schedules that the into potentially upon at will are the developers projects what negotiations looking can discussions the developers, really As in work in read what that backlog final included according discussed that from XXXX. will you awards the pending executed two is then are know, and from have we it And investment we ongoing. you final a also to so These press. we being year, decision. this XXXX hear in or And our have and and

Joe Gomes

I'll Great, in queue. get back thank very much. you

Operator

Please question. our standby for next

with Davis. Thalhimer question Adam next comes Our from Thompson

Your line open. is now

Adam Thalhimer

Hi, good morning, guys.

bidding good result July outlook to I you First, the and Obviously bidding August in just see September? for for in wanted about the do ask environment. what

Lasse Petterson

Well, QX is that we there But work will for towards the that bidding very for of the be a still always year. busy are would season us. execution utilization we like are to XXXX. some Most secure the third quarter bidding of in in here end

in that the said do translate the of been notes, I projects needs been first half for engineers came bid They some U.S. work And for be late bids to delay executed As in my we've June. we those the there of totality year. what to have into expect has funding record to increased years, of Corps this to in and year getting and next the Army the market. has the very although late seen Corps previous out the is the in in year for similar Engineers market budgets,

QX. expect was there to But year. we in of the also delay half substantially up a QX in here bidding substantial pick in the first the So and

a everything So XXXX and months development to of strong backlog points six in the executed remainder for to year onwards. of very be work over the

Adam Thalhimer

think say signed formally in I And you, Okay. I Lasse you that July. Equinor heard

will backlog? QX the go So into that

Lasse Petterson

will. it Yes,

Adam Thalhimer

thing? for do your How Are easy bids to Okay. right competitors is me. you same the And into then it seeing put the one last inflation now?

Lasse Petterson

Yes, to well cost project. of the has it be cost, cost added to doing is and the

if this first tell but and substantial. of of fuel last are explosive expenses, up that chemicals half end bid ropes you the our wire executed XX%. of And before price to the year saw very half So can saw I this first was rapid were you year increases projects happened XXX%, hedging kind in this up we what we pressure. the was inflation are XX% that during the just is we here here

So for we our bids do increases on expectation now, forward. cost going we what update do

of as Scott, add that? to issue. this do want you see a I So kind to passing

Scott Kornblau

And got we not - not certain we continue very model mean, I risk, getting on on this in, also be recent to you we're costs right, results, we we've July we when we the are sure they doing, to competitors will successful a want do. still had the I'm have to getting of that's that our margin in what make pricing we the mean, based that month. hit. our sure are And and have where we're done I and we a build what not new did No cost quite up bids, our need but was bid, only to see that

Adam Thalhimer

Got it, QX. thanks okay guys, in good luck

Lasse Petterson

Thanks Adam.

Operator

for standby Please question. next our

Our next Securities. comes Tanwanteng with from CJS Jon question

Your line is now open.

Jon Tanwanteng

taking Hi, good thank my guys, you questions. morning for

Just a got The color clarify. you due [ph]. the margin it had there? to on issues to last target want just your was little or that competitive had more is that think to bids anything at answers or more may one deflation want be It the like July that be I just a on is low I follow-up - work that you margins in that

Lasse Petterson

is correct. that No,

it, we We in strong bid do bidding as here very and expect are QX, market the QX a see for and we XXXX. market

always are have. we as yes, bidding we So

Jon Tanwanteng

something chain deliveries? not, obviously, as for little that and equipment than we unexpected year? was the should How dry think supply Okay. of was especially the more inflation it a rest Because bit of probably the docking and concerns risk

Scott Kornblau

year not the inflation second I the hopeful front, captured the we'll the but on have were we're so we rolling of should again, we as Yes, be we impact the are prior that projects half more bid start into and much, all still projects, of that to we into on as continue mentioned, have to. that and recent that working bid, as

three second the the We half will left continue do drag, for will see for hopefully, as have of we but decline. vessels to So old a new dry that projects projects replace docking year.

it, that we're else we need dock have can find we risk order of we it's the ready are start. time ahead we properly but at to to sure we when There's We and always have can get we do the something to into to know done dry and yard everything that to doing what there. need need, we we once make prepare everything that we everything

Jon Tanwanteng

should where and of down think How lots to the and do credit rebound drawn needs other that you kind wanted kind of of soon some your expect quite out agreement. you or underway with we there? cash great. we EBITDA utilize to to your investments financing Okay you you be be or of extended help very not Should flow will you your to expect cash

Scott Kornblau

in been negative so the will cash saying have as you it of the short-term up year in we've we this take next for few cash XXXX year. some last have drastically the flow And second have financing. with now to revolver with starts in cash everything, flow is possible quarters, ramp the a of for into leveling said, do the flow XXXX. bridge hopper, XXXX. we - Yes, It And should our expectation addition cash, we once will negative off that we tap delivery then this

especially We of just funds, are for financing if tires taking just short what's bridge fine out now, we're kicking to exploring a delivery expanded doing and it until other options there. into right amount the tap earning we comfortable, know with But we're start now, right need revolver that. to we

Jon Tanwanteng

the Why done What queue. bid? and a and one back the happened Houston with one you last post-mortem I'll me, that? And of didn't Have win opportunity like? great. Okay from that on what in the you Houston jump looks remaining

Lasse Petterson

only to risks we compare competition - of price the and rest as going on we I year when that's And course, what for projects forward we - believe a We our year in the that. market both we to assess our post-mortem large is - accordingly. strong project, the there has And next year doing. and always we dredging do understand production of about that onwards. been we particular can a and how Yes and say thing risks see believe this the project have next a

We market bidding the it. are as see we

Scott Kornblau

risk bidder And that very I of we all risks go there Jon, doing we stick to to understand the of even material now to only frankly, that know right trying back add would where and priced the margins guess, how the get thing we with is the there bid are there. we I re-figure we the post-mortem We're and the and And conditions comfortable there. at after Houston, winning the even get with the couldn't what did we're out in. and

we it's while price about project. have And we're backyard, with and Lasse very said, we have liked in would as very So feel XXXX our it, that the XXXX we market. strong how to comfortable

this not on to it's if disciplined. So the one, one we'll move and next stay

Jon Tanwanteng

Understood, thank luck. good you and

Operator

Thompson Davis. Adam with Thalhimer

now is line open. Your

Adam Thalhimer

thanks in. for Oh, me getting back

to margin to Just think as at reason one you of any is the changed guys the out has there business all? look profile XXXX, question

Lasse Petterson

in are has the Margin solid. looking as profile, said, have margin EBITDA The business have as changed. expectations, past. our And we is not we we at

a go We also dredge are our we - market to decided modern this be we with to upon addition forward. looking at will why a We optimistic hopper option. nice fleet for see a getting a as new the both there year, And which very out new next dredge. in do that's go

Adam Thalhimer

that flow cost out comes and reclamation that And there. then, of EBITDA Scott, Does tens when mentioned straight to the millions in? of you tens

Scott Kornblau

we're Yes, one the I of it through these, is through down resolve yes, go that If project to the EBITDA. to then is will project we while settle when end straight flow able complete, the already still to project revenue. will in of mean progress, if

Adam Thalhimer

you get jobs or likely are you year? think and on And these in outstanding this for items, sometime hoping Okay. previously three more payback XXXX to

Scott Kornblau

happened the QX. have I prior I've as to this mean, could Yes some I most mean, happen of that and again, amounts mentioned, quarters it large I mentioned, those takes year. of

absolutely a chance resolution. that get So is there we

that the mean I does that that say, the on see dollar. we're that not we claim Now way to $XXX necessarily That going now. the settle it at right the amounts is

very, to rate high, not that necessarily penny but historically every been very at coming we is believe Our us. success has

Adam Thalhimer

But of Okay. you HX that you haven't put any outlook gave? into the that

Scott Kornblau

In These the the any talked also the haven't up other we way in ebb half. potential that outlook, that pop may we goes put, do haven't claims flow. about and second

Adam Thalhimer

Thanks enough okay. guys. Fair

Scott Kornblau

Yes.

Operator

for next standby Please our question.

Alliance. with Fratt comes Our Poe next question from

open. Your is now line

Poe Fratt

Lasse, morning, Hi, good Scott. and good morning,

Lasse Petterson

Hi Poe.

Poe Fratt

looks catch give and Hi adjustment? quarter like adjustments second G&A on a adjustment more nature just one-time the that of color - Scott, the that third hit Can quarter sort it to too. you of the will didn't little I us the the amount just

Scott Kornblau

do talked G&A that. the the benefit I'm the to incentive won't third third has in between when It third It bridge not I pay quarter. quarter the second talking about lowered will QX. to that it it But lower of adjustment was so quarter. the quarter. Yes, quarter adjustment quarter have isolated that was the the to strictly And with second a hit about to in related also an the

Poe Fratt

difference of the that between would G&A? quarter that sort it? the be way first G&A full Is the and And second to frame quarter the Okay.

Scott Kornblau

it. not big all it. a That's of That's of part

We have in we're rolled really and see well. look out mentioned - a at of to one I as of payoffs starting are reduction we number those a I we calls, costs earlier have the also cost initiatives, and taking hard think

would say wind the build both I combination we of of as So a partially it's offset team. those, up

Poe Fratt

short Houston claims, unresolved lines, how possible conditions that changed. projects, then where larger us flavor the the can to the conclusion I'm a Is given those on reading just jobs more necessarily you to between you the the And the you And expect is only coming Great. on three ago the time three expect not that complete that give projects, when to then resolve three projects? little one project of site started a also claims? when the or

Lasse Petterson

discussions by and the and the going these we will be projects before it gets QX, the Yes we are take quarter, QX to expect executed clients the question, look we that resolved. - to individual time with in in projects. done projects some not third discuss projects But we and also

Poe Fratt

quarter three XXXX? these completed projects all the so will in third Lasse, clarify, of to be Just

Lasse Petterson

That yes. way is schedule the today, the looks

Poe Fratt

build the then the that the impact issue the seeing of level? you're has Okay But inflation great. new talk in talk on new new you level. your there build And been about about context operating a program Is operating you costs? can an on potential inflation and the on can build costs the

Lasse Petterson

builds issues Well, chain coming some equipment delay pressures. on supply the with there seen have are new of inflationary we some to And the yard.

However and coming prices moderating down. we've even steel lately, seen

- to say into can So when we hopper really we first what And price of contract that's we entered build about the option. the the that. negotiated vessel, the

agreement are adjustments some doing up and the we yard an down. where have with on steel We pricing

of the projects. inflation you not do we do the want new Scott, So build to... any see on major continued impact

Scott Kornblau

add and a Yes just color. Poe, little to

because Lasse So when of - steel of increased. steel. the the on and fixed million the Galveston Island, delivery was couple of would orders in it increase which a increase as that was it's we're lower a was take price to impact of signed and mentioned, obviously, pretty change steel exception - this years contract of price The contract a couple ago of the dollars, in steel. We be of about drastic

we nominal XXX price price. negotiated new a that already and was that now the steel the at And So we've given when one, much impact. the was higher a signed low in

So our we increase we an go down, so - up see and expectation that it or don't does a is see potentially clawback.

Poe Fratt

for Great, your thanks time.

Operator

Tina remarks. At this to like Q&A. to this back turn for I concludes the closing now conference Baginskis would time, the

Tina Baginskis

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

Operator

conference today's concludes This for call. Thanks participating.

disconnect. may You now

Great Lakes Dredge & Dock (GLDD) 3 Aug 222022 Q2 Earnings call transcript