Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2022 Great Lakes Dregde & Dock Corporation Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Director, to will Relations. now speaker conference to like Baginskis, I your the today, go ahead. Please Investor Tina

Tina Baginskis

morning, quarter Good Thank our welcome fourth you. conference and call. to

me President Chief our our Financial Executive morning Kornblau. and and Officer, Petterson; the Scott this Lasse Joining on Chief is call Officer,

quarter with for will and on results year. Then the provide quarter the and financial will Lasse an Lasse year. and the our will the update an continue conclude of for update on on the the the events an market. update Scott with business outlook

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

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

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

that, call turn over the I will With to Lasse.

Lasse Petterson

Thanks, Tina.

COVID-XX overcoming position XXXX. had from challenging. As the results after high cash turned record the a return enter We in to be $X.X with XXXX Army seen billion. year budget financial normal good Corps to expectations of We our solid and in out of and challenges U.S. a backlog, XXXX operations to Engineers

XXXX. XX and capital saw we overall in the as into days delayed, dredging and bid were year specifically market, Unfortunately, projects moved bid with delays now the significant large bidding progressed,

half the overall our less which XXXX utilization bid in previous audit markets months XX% to the XXXX. records, than fleet averages, severely of first the was impacted second X.X According in of dredging of years’

call of within As projects rely and portion booking burn. annual our revenues on bid we executed a which year, the

majority and coastal restoration bid projects about XXXX the were beach beach overall and typically, higher coastal re-nourishment the for of levels are the XX% XXXX And only at these are of projects of projects, re-nourishment carry And margins. market XXXX restoration which projects, XX% projects for or levels.

lack maintenance extent, work. in work some To by increase the of an replaced capital was

However, typically of the maintenance lower the margins due work earn the competitive projects to nature landscape. and

dredging up open we with picked projects the in being year of the volumes, XX% the $XXX.X As million of backlog, won of big the $XXX.X half pending and million year, and ended award. in and second auctions

the Corps have we resolve Army held and is and leadership to U.S. constructive bid on discussions what market client positive the for the started and year a the how The during to see with largest core impacting and numerous Engineers was we developments of issues XXXX.

also cost High operations. up issues up projects impacted chain inflation impacted external significantly Other dried delay and dried supply incompletions. issues and in

site conditions are discussions of and East and impacted on experienced completed. more recognitions projects profit on experienced challenging normal, projects. are related the are still We than until Claims our and We these Coast. pending revenue some projects weather these to unseasonal extreme resolution, conditions and soils on

stays An have the in the requirements some quarter same on experienced which by dredge in offer of has than fourth lengthy as we and dress, revenues costs impacts storms Island the both Island and and further the issues earlier Padre have The impacted into drydock, we increased Terrapin Northeast. year, was delayed significant Island planned this XXXX. Ellis specifically the

preparing conditions for the to as as the action through taking have current well year been market We years. adjust future to difficult

market be reactivated improve. temporarily will operating edges the bid reduce called which costs. can we to Because equipment, sector support have stack easily We see unrelated dredges when

dredge with improvement in fleet a the was combined retire of XXXX. market mid-XXXX. hopper major mechanical to delayed for new the in and the issues the our her dredge of issue hopper led to our a or -- renewal delivery Island In retirement fourth decision the program, following Island and scheduled Galveston XX-year-old Terrapin quarter But XX mechanical now

this general XXXX X% correspondingly additional And year natural overhead staff had we the been attrition. through reducing target the market during have we cost conditions. an administration reflect G&A current in and reduction structure a reduction XX% further our in and overhead and to we and Earlier month,

and market we to remain we As long for win optimistic markets. adjust current the offshore dredging situation, the outlooks both in term

the of our be renewal to selected keep an planned. continue is our to our market in to as program segments. is forward And ambition moving strategy U.S. industry leader part Our important fleet

of After the Amelia decommissioning to we dredge sister invested XXXX. in in vessels. XXXX and is the Island of best And to in hopper in middle have on and upgrades ship, productivity several her oldest be to new XXXX. treasures the expected delivered operational Island budget is And our be our performing XXXX, expected Galveston is our

flagged be rock U.S. the is subsea for vessels for budget both ready Act-compliant installation Our on for operations one and two and projects half Equinor of the and first d with working claim to for expect Sea start empire XXXX in Jones BP. on it to

results Scott business. then around of the commentary year will over turn now further and to quarter I discuss and the the further provide and the will I the market And to call our

Scott Kornblau

Lasse. Thank And everyone. you morning good

of $X.X fourth writedown results, Island. include Let million a by our quarter through me the which walking retirement for start the Terrapin non-cash

fourth revenues million. was quarter XXXX was the of $XXX.X adjusted EBITDA $XX.X million, were and net loss For $XX.X negative million

and retirement a the Terrapin few Revenue the protection million production result the was and Island, XXXX dredging by longer substantial higher in the lower in Padre of due of and year a driven Island issues by project to a to quarter capital unexpected prior Corps docking lower XXXX bid as expected offset decrease mostly fourth lower projects capital revenue significant fourth on revenue, primarily Ellis coastal from the quarter, early Fourth than jobs revenue. million which dry maintenance island, revenue, Army due in decreased came expected downtime $XX.X quarter weather. the than partially of in $XXX.X of

margin Similar XX% the quarter Current quarter dredges respectively, negative gross million XX.X% delays Padre additional the and the Island. scope fourth in to for $XX XXXX. unexpected Island and increases of gross profit revenue gross compared to $XX.X by were negative in was and drydocking which million profit resulted and Ellis costs respectively the and the margin impacted

the in margin, XXXX the impacted unusual compared capital the to as and production slow quarter projects. few had on The than we Island projects of driven retirement same Earlier fourth expected of the of XXXX, negatively bid gross market. less issues Terrapin the revenue and also half quarter a XXXX mix by than

coast northeast impact severely In continues addition, to those weather the jobs. along

quarter, to major northeast working the these inclement we in During projects. jobs quarter Collectively, due XX% weather. were had three over the downtime

coast other along the east were smaller several worked impacted. also jobs We that similarly

to current is a loss quarter. retirement lower for margin non-cash the straight compared of of the offset of the of income Operating result decrease the partially $X year $XX.X fourth prior quarter's Terrapin, the The million lower of $XX.X decrease the gross by quarter Administration due is charge from million. General expenses year prior to operating and million one-time

million on on million is capitalized down as quarter continued expense than of million $X.X quarter bills. cost G&A of the Net $X.X interest the and last Payment $XX.X of due for in the interest to quarter same lower the XXXX primarily from new reduction. year, XXXX. to $X million due expected, XXXX fourth quarter efforts Fourth our fourth was of additional

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

$XXX.X full adjusted decrease million Turning for net represent results. and EBITDA million. now a a of decrease was our revenue, million was a to $XXX.X Net in in was income million. $XX.X of Revenue million year-over-year $XX.X results EBITDA. in adjusted year million and These loss decrease $XX $XX.X XXXX

a inflation by project, delays, weather conditions supply on less greatly margin hindered and site projects. were higher production number differing results delays, XXXX maintenance high chain significant issues, unplanned rampant capital of

bid with idle year. than the more time the expected In addition us slow with left to during market

dredges and most largest we a drydocking Liberty XXXX had also our Island, dredges. regulatory five the Island including and on During productive of the two Ellis

In performed the emission Carolina. to addition, we upgrades

million, in for which of million and our included to million our million $XXX.X multicast. the million Turning balance capital for sheet. ended for million with cash XXXX CapEx $X.X on $XX.X and drawn Island new were upgrades, expenditures and maintenance emission $XX.X construction revolver. $XX.X scouts Galveston the XXXX We nothing $XXX

our of Island. the of and the the the $XX.X vessel subsea second dredge build for rock million build $XX.X installation new for million Amelia design hopper and

quarter. the some I'll and conclude on with commentary year upcoming

are the million of with year entering We $XXX backlog.

contingent million the backlog year. the levels the up This backlog of of capital historical of widening in of unusual entering the market, because prior million quarter first in XXXX project first deepening to the bidding normal year. large on of returning the two than the fourth margins the three work However, work. XX% XXXX made only is of of margins quarters is average of during lower be of year. half four-year capital high and Because past the $XXX margin to $XXX of The the bid this in will port is

the to Moving fleet.

stack cold no earlier, we and with minimal mentioned two crews vessels have Lawson costs. As currently

work quickly follow take If market working other out dredges, efficiently stacking for a can of the to we and costs. on older reactivate materialize take When similar will not up, these we bid call vessels. does on picks them couple currently actions

support a operating ongoing, cost other headcount rationalization and greatly reductions, have further We budget. of the expense reduced including cutting initiatives recent equipment,

the are in the of drydock second drydock. or are the move docking in estimates can Timing other this years to year, The third and quarter. in Ohio scheduling. the two quarter her regulatory scheduled and XXXX. be one drydock right XXXX depending in the left on lighter one a dredges will Currently, is shipyard go to for dry into

wind CapEx of around CapEx. and respectively, maintenance for new and million the $XX Amelia $XXX expenditures, $XX and million, bills capital Turning for $XX million, $XX.X $XX we construction Island million Galveston the $XX to million to to approximately be the multicast, for million Island of comprised expect finish SRI vessel,

plant operating the this were continue in new the we that drawn So support $XX bill on fund year, to utilizing far revolver revolver program. our due cash the have and payments to flow help progress million

Department the Administration, terms. XX or However, which a applied of this in we attractive comes January the Maritime which very is unit year, typically with of title with of for Transportation MARAD, financing,

XXXX, installation prioritize will which ship, our offshore wind title designated vessels through MARAD want they and subsea have announced our for national as application that like XX. facilitate funding interest, and of construction, in to rock more vessels review

take can capital. will to which While process, explore other nine months, to up sources we MARAD we of work with on the continue

to Both docking first of the go of end regulatory Ellis from the the working solid, the the their XXXX, looks towards Island worked the available straight following complete a quarter dry to of currently Padre job. Moving Ohio quarter the yard of Island drydock. quarter. are and majority and vessels utilization have the first In for her most will to as

is first So on be projects drag remaining strong, still quarter ongoing. are the prior some utilization that will negatively year by impacted

weather a continues multiple Northeast. projects in to addition, In the on problem be

we lower margin work. high projects of of consists working the Finally, QX volume are in a maintenance

back will moving forward. remarks the the call over With outlook for that on turn to Lasse his I

Lasse Petterson

Scott. you, Thank

saw record maintain maintenance judging XXXX support industry. which the X.X Works and which We Harbor omnibus the for was December Trust is of for for Civil see of passed, for waterways. provided billion in to XXXX, the billion fiscal bill to the and strong continue Army you Engineers Corps year Biden from And budget $X.X modernize the of included nation's our as administration program, appropriation another Fund U.S. for Congress

which initiate fiscal will relief hurricanes approved, that coastal year Corps an for beach billion $X.X and the additional include resiliency. projects other addition, to impacted to disasters, for make In infrastructure and re-nourishment disaster appropriations supplemental repairs was to by increase necessary natural XXXX

Christi be to XXXX. for Expected bids port bids larger it. phases be half of planned of were Freeport, include projects anticipate north additional core of one and phases to We Corpus in Mobile, Sabine, first deepening bid XXXX, bid deepening in the the ports Huston for and new previously

Included spending. in a low bid

has proceed notice natural gas that for two awaiting liquid my been Our to clients. project

these appear final our have delayed targeting Several past of and we the North projects LNG investment been in LNG projects while that couple but will export year. during of gaining in decisions American this projects momentum expectation years at pandemic, one is major dredging be the contract XXXX. these to least Oresteia are

funding projects a market. and expectation strong additional XXXX for support and budget combined with projects port deepening increased expected The delayed bid the bids our for LNG

WRDA Water into the restoration financing XXXX, of WRDA on authorizes and approved and XXXX President. legislation includes Resources of and the XXXX, protection, Corps’ or by two-year five Development hurricane At is flood construction projects year, signed was over cycle Act for renewal the other the that by end next and law years. Congress the a ecosystem the dredging, projects

things channels feet, be many at estimated New to Program, authorization billion, among the for well as to York Jersey other Texas featured and XX shipping XXXX at WRDA estimated deepened $X as Coastal $XX billion. New

XXXX comments loan wind. Administration wind offshore GW of for current ambitious wind the announced billion offshore around federal guarantees provided goal XXXX, in Finally, of In a few by offshore the XX projects. and $X.X

Wind developers. the installation and awarded commencing and in our XXXX Great already Empire As contracts a and work Projects. vessels tender have II previously projects the which several baseness rock have They you XXXX. our stated wind other in the have as and supports discussions operation plan I Equinor offshore Lakes for BP in But rock scheduled farm with SRI for to full beyond, start

beyond. environment with managing have and in have second the the to in are place, through and market Combined work and volumes initiatives to forward are results unusual XXXX. onwards. We year XXXX the of starting and And manage we Galveston improvements been and we the the in delivery conclusion, cost XXXX. look situation very we and improve operational improved Island, difficult of dredging in confident In current an deliver a and half markets reduction in we difficult

that, questions. call for the with And turn I'll

Operator

[Operator Davis. Instructions] Thalhimer Our from Adam first question comes from Thompson

is Your line open.

Adam Thalhimer

little bidding you you're that as your then what year? of this Thanks. bit And core move Good improve a morning, details from more guys. the seeing on the in what's Can currently us you bidding? give will terms through confidence

Lasse Petterson

to activity XXXX to on works. mix from has see dredging of this last bid comment And projects we the capital That's were mix. bid maintenance, was market from that can a that I the works year change the delayed in really the -- ‘XX defined the fairly.

bid are projects now to we and capital these see XXXX. executed optimistic through and So being

volumes, time the dredging happening will large of will picks The take that before year. LNG projects the some work towards stuff up that end but receive the in

Adam Thalhimer

now the from your or still Okay, teams are but on you're more projects on waiting capital working the for Lasse, larger you're notifications those court?

Lasse Petterson

for bid to on for be time port that six dates. No, bids before, is typically dredging said firm port I the to to issued markets eight we look these as the to deepening’s the we mentioned deepening we the are seems mentioned weeks. projects it's started And then that waiting the issued have and have until the for bids ports that I from some had

Adam Thalhimer

Perfect.

QX, for a curious should least we on kind gross then Scott, I positive Okay, you about of the for think very just willing And to set? of line help at margins to specifically, results. margins you helpful. think gave are level I'm QX margin if XXXX. way good for But expect

Scott Kornblau

Yes.

bid not strong be dry quarter. the docking, there's the utilization year, is we challenges of like will that give will I this are, weather of working, I'm Adam, and utilization on of kind like updates, the terms has fleet this continue, up did, this kind see we on any we're this shaping to market, vessels if the facing, in give which quarter we'll how So, granularity, going

I to to that about all not we The all want vessels giving the dock I'm dry that are commentary the have I've see on drag quarter been it not up. cold and that the have while we macro influence quarter, results but I shy this guidance. how majority quarter, give shaping will talked with of stacker do do drivers the working are

We question, seen your QX? the obvious But like is answer far, To saying expect do expected? is we not margin yes. but for higher except have than QX have as is weather. The up not I QX with surprises to that's see shaping any so answer

Adam Thalhimer

Good.

I'll over compensation with then it those? potential you are one, on the customers site Last turn still in differing on Okay. discussions conditions,

Lasse Petterson

last third Those submitted. job not ones, they wrapping reason year this pointed three we've up is hit be last of three the is Yes, claims out quarter. claims have to two have we various have quarter. right done should that those settled, and of are period. in called been now, discussions these the stages out The one And unusual in large

So visibility we wanted have that. to on

we it we other conversations standing of these conditions, was we and said those anomaly. previously The are major long are good good may we and any mentioned, haven't relationship and it's in clients an or very have to the expect claims And as with quarter with settle is, next to site proven a that news two seen on so. have be, out going I different have

different set one longer The to government this one is third entity resolve. a we that smaller, all along, will take

are So But nothing that. they just as time. has do. normally some changed take They on progressing these

Adam Thalhimer

Thanks, QX. good Good guys. color. in luck Okay,

Operator

One our moment question. next for

comes open. question CJS Jon from is next from your Tanwanteng line Our Securities,

Jon Tanwanteng

into just stuff? you Hey, good the were you QX, in unexpected each issues, headwinds Scott, faced dry questions. it's size wondering morning. buckets us how the and inflation taking between kind Thank whether docks you those break tell if my out much of I the the whether relative and you of of budgeted sight was retirements. could that or replace in what's for in those Could for leaking whether other QX, you

Scott Kornblau

did, will, addition tariff however, obviously, offs. projected the as of can us, severity half lose though, write-off in million of the in and I'm talk tariff, and degree center mean, the of We well, it not $X margin of kind we Yes, quantify the write from impacted to I going to quarter I what that. normalize about on

just work. last So, that was

double to But you there some increases, the And the is whammy, more that as was of she have not especially margin. relevant, margins did again, drydocking top know, that’s to increased were I The her the scope delay, the think for vessels. earn costs. allow at right LS

three impact, jobs we're the And in impactful. work was is weather, was, it XX% with only that that talked production, seen would seats, does was to way working. working actually told having I major So those it when even the higher project. big it zero impactful had, adjustments downtime, were not I down The the impact past. that to the of about in as I that had that, as you largest was days. we the we time, -- really That was were the able not pretty say in drivers XX% to and make inflation we going XX% bid

A that million we win we of work $XXX in that projects working these QX QX. lot of in started that was did

So adjustments we did make there.

did writedown. impact of see the huge was really the It we production and drydocking missed then not So that. Terrapin a opportunity and whether

Jon Tanwanteng

Okay, impact much it's far? How of so weather great. in an was been QX

Lasse Petterson

particular, end, still our mean, is did QX, much impact, it of a weather year on did be estimate through as our end we the at the So because impact adjustments kind up expectation of it's has of estimates been, turned when from I January at won't just job the nasty. severe. The December, but made have January kind to we you adjusted was pretty follow when pretty we it that an out year, we of

big not they in as impact. some impact of have is it'll my expectation had as So But an QX.

Jon Tanwanteng

the is And backlogs Okay. that for weather? for have scheduled adjusted liquidation of a quarter? you Do

Lasse Petterson

I'm that? sorry, can you repeat

Jon Tanwanteng

this have is a that? into schedule factoring you And liquidation for weather Do backlog quarter?

Lasse Petterson

best after issues based December, is. had. estimate been It's the we It is, saw adjusted weather it that we on our all

Jon Tanwanteng

Would Okay, that care do investors. you today? you to frequently to provided that number

Lasse Petterson

unusual. as the tell on above we quantity XX% not jobs how in far downtime impact? as down? quantify The can had when well going put these was I'm I weather worked gave we estimated that the way these on you, I it many days jobs to the is the first bid

Jon Tanwanteng

we’re expect the in meant generate looking I'm backlog. number for. revenue the that sorry, to That's you the quarter I from

Lasse Petterson

additional backlog all, revenue it, we for where you're what -- QX. going if we not on So assuming top have have of in any any we're don't with

going or revenue but forward. give I'm a So, for quarter to this again, not going number

Jon Tanwanteng

Okay. Understood.

expectations if Second, of to finding you what's more other? any little for I and any much terms wondering color -- you was on progress we just How your how just in is quarter just draw these start give there expect on at schedule bit than your one based can obviously, worst the through for margin. worse year to as schedule? a could the expect release makes see revolver drawdown shifts? in you their And And that us a backlog CapEx

Lasse Petterson

way CapEx to Yes, however, so, will again, my is quarter expected you of the kind is is flowing. I long give shot. what QX give to I'm cadence a not a going the going draw of CapEx by be. heaviest the

CapEx You into our under And pushed got because payments QX. XXXX some were expecting. year saw that we the what full of was that's QX

So of see are full fairly million. I balance And can year, the to will you is that gets between split remaining $XX these amount, and of $XXX largest million million that left kind $XX Again, I guided then equally or light. QX QX but think right, fluid, QX. then move the to for the they

Jon Tanwanteng

you. have What year a your once forecast a level Lasse, bid lower expected. do there? confidence than this intuitive, you Thank being for year? what's great. Last lot do for was have a market obviously you expected that Okay,

Lasse Petterson

for no us the months overall the to in ‘XX. Yes, last bidding. we What bids impact was the out lateness somewhat very was issued what There where of in for two than was really XXXX, came bid there last less issued. X.X the market year one, on little was had bid so the addition

that stream on burn. let's delayed So revenue or for us booking say

not projects in was off The mix. big port of issued the XXXX. delayed capital by really for up thought change issued were we the And July, to June into the was that And bids teed and a then happen. impact Corps and again. tapered it did they deepening’s was There already lot be of the

budget good additional now the we very the a have So for appropriation. the Corps has year,

fund done, in was the southeast. beach restoration will that as which So

bid in we're I it good XXXX. but market the actually high a capital facts. those There's on have world, confidence have projects. upon certain to for market Based going this nothing bid very certainly looks

I LNG or would one projects, two those go to think the of fit.

optimistic. I'm So

Scott Kornblau

that. right, really let just little losses, mix. more color And was a the We the it about put beginning talked this me -- at Jonathan, slowness on

If you course the projects look levels in at sorry, in XXXX or compared – the XX% budget, XXXX. capital I'm capital the XXXX, of on XXXX, XXXX, of in to Corps, bids the

again, good of didn't were Now, into go this from was jobs news half these the that is of pretty anywhere. severe They we what are on first but mix just it year, pushing project expecting. the

Jon Tanwanteng

Okay, jump great. in you. I'll back queue. Thank

Operator

question Capital, comes is from next your line of Joe Gomez open. Our Noble line

Joe Gomez

taking And morning. Good questions. you. Thank thanks for my

just, touched a today? maybe more how mean, you of and how you opportunities I Hurricane things Ian seeing fair were little think out? some it come those talked to and about, the with the of might seeing the on get And you previously, and some one jobs restore of by the had you That we hurricane? about impacted those bit, color, talked replenishment So are Are had I number you help beaches? quickly a impact.

Lasse Petterson

then And we'd of additional projects flurry think [indiscernible] put Congress. would I year, that was on South East, is that funded mid-XXXX. be here to call, coming bid commented that by the mid and the a the this billion Yes, for last through

come execution to QX projects come to and and XXXX. protection then market mid-year to the expect into it say during QX bid and I to I coastal and So call don’t let's to to want beach renourishment these

Joe Gomez

on lot people subsidies poor I've more for a and the to And, technology thanks start some reading here, in Siemens projects, offshore been business. turbine been a of need to Okay, number negatively action wind economics reporting supposedly in loss, and of GE has wind. stating that really these continue articles they've that a that. some impacted here really government big quoting its

try and out get looking in of New Supposedly, somebody's a to project Hampshire.

status, to right the of the had in to the now, you wind, been just So now starting obstacles get up, is see kind are a that of better offshore anticipated what come status we some maybe see trying previously. not the feel

Lasse Petterson

have our vessel. on contract don't already know, for agreements we projects. request We we And with market. Equinor the the any the comment activity have our bidding activity for want clients reservation one comment also their not I Yes, for you we that estimates do MVP. I plans to can requirements in on seen see firm But and for and as diminishing in

activity suffering bids the turbine doesn't involved do manufacturers delay and say, the what impacting The market issues, you we leads delays. the low supply And are I So with in Really, in. the are correct. some we vessel match. Yes, see margins. which chain are that from any also don't our are there to

forward. the have be moving been But to addressing projects we that seems

Joe Gomez

Scott, any, you any Okay, to given great. the that. line, Thank see expecting this can out for year? good that's what you're draw That's give us indication play interest expense? going where down Kind on some news. for you credit to of kind how And you then just of the drawdown of or

Lasse Petterson

first first that way down. it will, diminishing going line to that's and that year, draw you or so part, particular, But not half it the it was definitely the that be the the the of mentioned hired that will trickle year extrapolate heavy the I'll no, be Joe, don't QX, is down, weighted, over I of and give Yes, in no, drawn that the have, we're how of quarter will I half, the the tell rest beginning you that the the then don't we CapEx because very draw. for seeing the straight

As revolver last we upsize you the recall, year. did

right there on availability ample is there now. So

we're X%. a time borrowing terms. today still at it very at did We're also to able get We favorable

of So, this the that it's year drive come interest it. very will see the manageable, and the cadence way from we the kind burden of

Joe Gomez

questions. Okay, my great. taking Thanks for

Operator

Our of next [indiscernible]. question comes line

Your open. line is

Unidentified Analyst

stand of Can kind like gave us, you our help we're with? with us to we lenders, commentary it And covenants XXXX. us of to what need to the of then follow as where the course the questions. us have there covenants Hi, just on help over in some lower thanks bridge taking ups. dealing And levels for give seems relates based it profitability of I going update we're understand terms just you through some the an some

Lasse Petterson

the on there it's so X.XX%. notes unsecured covenants, Yes, that in are due are XXXX, no

than So has Also. it is a availability fixed we It won't it build new don't of covenant the was Once of neither the have test, when that that have meet coverage and only less caps them. covenants at on a XX.X%, program, next revolver availability the springing hard pass That's springs becomes XX.X%. if than likely for If we ratio, that do less charge we covenants revolver. no one XX.X%. the the years. the test. the couple with the It's availability we does that

Unidentified Analyst

then financing a us more about? financing? a give think of was that thinking Dot I looking kind bit at Okay, and type was the rate we'll or term this type discussed something be on ago. couple previously, little you you color of can be on that quarters What of would

Lasse Petterson

the as they [indiscernible]. was last deemed we different program. the a last was Yes, or the the in It a year is of year, had July DOE. This ours when vessel and interest. is actually national Earlier through wind through about free so and talked vessel what like year offshore different June,

attractive. it very then became So really

our that tenors, to points it's out to XX amortization. that XX-year and application around, no show had And go to is rates, Treasury years, XX.X low you they very that If play plus what their is quoting asked website are up for. basis does it

encourage backed the again, in as attractive, again, to really government this. So, they're very investment by trying

QX, some after and as The submitted in I points having them dialogue with call their think weeks take a application I a was said this, what are this but already on know time. good we a I continue them. would that we put very we few ago, QX we'll to work It's with will application it

Unidentified Analyst

spent And we've that vessel, we we've on or a to how will given loan, started already money work spending only that on forward rock progress able be go on already for basis? the and put payments would that take

for. we And of what that vessel it's is up of in can value XX.X% full those No the play for. to you the that's loan put

Unidentified Analyst

give taken the of mean, of -- the it the odd just Corps, covered I view being bids it kind and kind seems just as I've just XX,XXX-foot then that a things relates and to of stock released. occur and give team, Army the was very there Okay, you the kind bidding year. time, management of would think a and of expectation would I of an for that lots that amount the would for previous long even for

get Some to case. XXXX, put certain be seem and we out, really up will percentage of it the -- And of most it. didn't it went

because was in And -- give had never money year you can And situation said you the as than more there color last of you terms a there, year out. appropriations, script also that strikes why said it left kind this higher me that was where any to was budget funding the too, that you us was happened. of same

this going that year, a issues transition you've there? within to happen result happen? leadership to did be problematic. I there Were why again it's layoff having Army guess gives And to that that people voiced Was that probably them, like, And lost confidence of to highly because not key you're workers, were as us this. which it's what proving there Corps, the

Lasse Petterson

Yes.

a As was at I the we, about pass year, budgets, the my in their we Corps backlog, pandemic good position, we started were the that beginning and that issues. had we thought of will commentary good the

out bid was work there's that different was around to put was was low there maintenance year projects was certainly X.X capital larger the competitive was that little the projects. work And, of happened those put what a And environment margins. the very the work, first market. and out compared into bid being carries the And majority being unfortunately, which the

one a of Corps have always continued them. Army they for with meetings of the dialogue numerous first the in is year. giving was had, I good Engineers. that have have with the the And we And very a and of there place are that We resolution half reasons

resolution, continue in under So to continued our is new fund the limited funding Corps ongoing They projects. can projects.

under we continuing gave, they are this year. not was that resolution a reason So one

And So the this fast. Corps omniverse the year. has money was the for

similar situation. that’s So

is back or federal in Corps on also short the And agencies and then the the personnel, partially office.

that company, being and a because not as the larger that during in do very As the it's year, year been difficult we the a we for in in team. projects movements together back to -- We office last saw have core.

setup in good So recover, confidence in bid to dialogue, XXXX think projects. will mix that variants that we, I gives market And I for the we different will have capital the me XXXX. think that the a also believe and to back more

Unidentified Analyst

month long the China. LNG pretty doing so, And Qatar of seemingly with couple contracts question, the or sizable a some you. thank announcements term, Okay, just last last then over

that Is been dredging potentially revenue an or Middle The redeploying international there for involved that while We a assets? haven't is there's really too some now. opportunity something East that opportunity? a in not

Lasse Petterson

market short here there's I hear is the do versions the The next recover, domestic over U.S. see years, not for need of in opportunity. do answer to capacity I an to big see couple our the the

development. are work, addressing following international not or activity So are bidding the we we

would have is this our But, at we U.S. market with. the international wind. the to go where into to competitive order market see And moment, that And in that we best to have offshore going competitive. dredging equipment investments address to That's market, modern opportunities. are and that

Unidentified Analyst

and get you of a to it does just, stack? long question. How vessel? take take define last cold How it invest my this guess cold does Okay, lot will that to how be stack? long then I recruit And guys

Lasse Petterson

have is to until but the to field. what get and depending find to do Well, cold different, you And give running need it's then the the vessel, have once from of this again. difficult stack we back we you to estimates. the you actually bids, bid on and mobilize out on type be crews work the But will up the to it need exact the

that up couple and sufficient get So the we on have dredge months. get a should and the running of be to And crew board. back

Unidentified Analyst

Okay, thank you

Operator

have up line open. CJS we follow securities, line of Jon a your Tanwantengfrom Next, is the from

Jon Tanwanteng

weather environment. work follow how that, given hurting and obviously assume competitors any out are has issue. guys, an like competitiveness that bidding? on everyone for deal of But to taking Is you're change bids has and Hi, inflation other the that's there as with well to prices my just bidding been have question just up I there. your to that. things would and a thanks Obviously the amount of

a pressure of little bit seeing being market? more that take on the you Are in things Or you rationality able just they're in terms pricing? these to entire seeing are the that fact

Lasse Petterson

can market. you think big from the market you is of I pressure Yes, can end assume there changing on the that a

the and these projects capital we target So contractor I have that the market think suited larger to are where I best projects. currently, but leading those we execute

So, addressed added crops. on there have been that by some capacity earlier have additional competitors we

We new have and seen some a couple the of cutter property dredges market dredges. to come

it dredge have we modern at very time we as fleet point have will Hopper and in this fleet. a efficient Our

has address last been current year's. productivity fleet for also Our over upgraded and rationalized

solid military fleet mechanical have with really a be we So is have And the on a complimentary and projects hoppers. color fleet the two in larger U.S. or used in the equipment combination most we cutters mechanical the to of dredgers efficient

forward. our I situation is think competitive and going good So strong

Jon Tanwanteng

for biggest sources as or same those spoken it the for for Is do comes the the fulfill to work particular capacity year? given the scheduled earnings maybe of that this when the great. question well will two of you Ellis year be Galveston just for on still And have dredge? Okay, the you rest

Lasse Petterson

is answer yes. the Yes,

on We comes to put have backlog to she out when her

Jon Tanwanteng

Okay, great.

Okay and great, the Ellis?

Lasse Petterson

to Yes, this work. is going straight

Scott Kornblau

on and majority and end good on but the came the Still working right year. backlog now is the already right we her in Yes, of Ellis a with fulfill tail for it's now backlog. some position the out Ellis and have

Jon Tanwanteng

Okay, great.

for Just major next market projects couple will to follow-up. and released wind be a the and bed have go going you question on of Do any timing expected when the there I'm work?

Lasse Petterson

Can you repeat that?

Jon Tanwanteng

will for wind to announce sense you any timing the have Do awards? project next when able be you of

Lasse Petterson

hopeful that the during that we do can Well, very year. I'm

Jon Tanwanteng

And earlier the year? any in or the of sense whether later

Lasse Petterson

Mid-year quarter. that the awarded developer when listen to being the to power And the our determines But, these timing being the going we projects third sell that agreements. developed, are the way contracts. are of secure sales power is and

additional looks But XXXX. I'm it the we very hopeful here, way secure can mid-year contract one that currently,

Scott Kornblau

And, out, submitted we bids. Jon, when the come bids have have

award. going Now they're we're the at to do their on timing when

to other based on when not It's it's bids on going come already going the are are are to So outstanding. award that when out. bids they

Jon Tanwanteng

run that Understood. the right you, you so Thank keep expect savings one your that G&A to planning rate the had be is the with cost down QX, put that coming rate in you we Scott, to using? or

Scott Kornblau

as that run is the adjustments, There's not mean, I to some you're I comparable Yes, think rate. aware. always normalized QX for incentive,

QX, not maybe trending. kind quite together, kind but So if how think it's and look of we're QX of I that's you at

Jon Tanwanteng

last one return any associated those getting costs storage. Are then And there great. a would backup when Lasse, Okay, that be you cold for chips from with unusual?

Lasse Petterson

and not we don't some to in that bids there again, that not, Yes, take to to be we start If vessels need will any the that as in. major And included we will additional a the are be costs for articles I costs them will them up this. of putting that to course. into get outlay us, see for put out,

Jon Tanwanteng

sense. you. it. That Thank makes Got

Operator

call not for trying over questions any I queue? to was in closing am further showing I Tina you. any back remarks. Thank the to

Tina Baginskis

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

Operator

call. concludes conference This for today's you participating. Thank

You may now day. great has disconnect. Everyone a

Great Lakes Dredge & Dock (GLDD) 15 Feb 232022 Q4 Earnings call transcript