GLDD - Earnings call transcript Q1 2024 | Great Lakes Dredge & Dock Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2024 Great Lakes Dredge & Dock Corp Earnings Call Conference Call. [Operator Instructions]

Please be advised that today's conference call is being recorded. I would now like to hand over the conference to our first speaker today, Tina Baginskis, Director of Investor Relations. Tina. ahead, Go

Tina Baginskis

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

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

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

forward-looking During These this call, our statements of factors we to a results involve cause you will risks, business. from make to our could and materially other certain that expectations. understand number uncertainties help statements actual differ

inherent set Form Certain release SEC, in our earnings with are in XXXX including our our filings. in business and subsequent forth filings the and risk XX-K factors

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

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

Lasse Petterson

concluded marking quarter since the Great good financial with results, Thank Tina. fourth quarter you, the Lakes quarter EBITDA XXXX. best first the of

the quarter, were active on our the majority During fleets well. of projects and performing

of back in After normal we X the delays started projects channel quarter. omnicore channel successfully improve we Rio-grand to started dredging Freeport and five for engineers project operations. with projects project, has the the decade operations and improvement on first on major XXXX, next project containment Island the main LNG including contributing improvement of commissioned midyear more now new secured and LNG X project years, to Phase core Channel the our from was Waterway work operations Additionally, build product. deepening In awards, the and Brownsville the performance dredge, both last -- the bidding are the Channel Port LNG XXXX. expected project in Galveston hopper Ship after Arthur of project, to areas Sabine-Neches in to commence the the major Subcontractor COVID suffering effects

reservoir also Puerto in were awarded we project a large XXXX, with Dredge In Rico.

our mobilized the during the operations have dredge and We and dredging in quarter. reservoir pipeline second started

be us end quarter. Our dredging At continuing and in our opportunity backlog $X.X backlog our approved term. in solid to XX% record second Modernizing fleet a quarter, of key market was competitive of to budgets projects. quarters. a was a is long Corp with The leader With robust strong. $XXX bid the the million billion it of a be U.S. that factor our the for expected first in third capital Army the is Engineers market providing in build XXXX the is good new to with with program backdrop. a maintain of

rock Biden is Acadia honored a Acadia. the U.S. inclined Flag the vessel, subsea first ceremony for only Offshore to [indiscernible] attend Rock installation. pipe President installation Lakes expected to we have performing We our new in now Amelia sister Island with operation be well. which on trench, In newest delivered Galveston Her ship, our is in is Island, of upper program mid-sized the delivery made and the the significant for were XXXX, Great have The for XXXX. progress vessel the and Wind steel-cutting compliant

leases. schedule This spite purchase install foundations on is assembly this project of marking we shipyard, in the protection key the laying new month, milestone power year of to Equinor's offshore Empire rounds in vessels the the construction. The negative [indiscernible] XXXX. with Acadia's at had and her subsea win current headlines for rock have achieved of tendering on seen start in late cables the for Sunrise significant for XXXX we the X wind phase rock another offshore In Ørsted’s agreements XXXX, and in

growth our rapidly a wind with Great base. opportunity in Lakes activities a and broaden client Our expanding presents diversify industry, initiative offshore strong our which business will

To additional contracts. lien April, additional Lakes. program Credit and provide for provides entered million us $XXX This with into for liquidity agreement a In tenders credits new newbuild credit Great letter issue Services. also support the second to capacity Guggenheim with we and of

the commonly As the letters industries to government credits and offshore works in out gas wind where oil bonds unlike are of required the preferred most instruments. performance and

turn to then around and and the our Scott over commentary quarter I'll results the the of to some market call further and discuss provide on more I'll financing, business. now provide our the details

Scott Kornblau

by $XX.X good were XXXX year EBITDA first aided exceeded EBITDA you, due the million, income the by prior that second million and quarter, decrease in primarily maintenance revenue more prior $XX Thank the partially increased of & year's higher quarter quarter, $XX first the $XXX.X resulted protection first quarter, quarter the revenue coastal Lasse, higher walking million margin to the revenue. the $XX.X a capital startup of doubled morning, In offset and $XXX.X quarter start from net were adjusted Island, consecutive revenues the in from and million by EBITDA which and rivers lakes of first everyone. which million. respectively. Revenues than Galveston and was through and XX%, adjusted in I'll million

compared G&A million margin quarter in employee higher in same due performance number increase of profit primarily cost the $XX.X million Current utilization primarily $X.X quarter $XX.X and high-margin and than gross higher year, costs. margin $XX.X increased quarter on to and due XXXX. million X.X%, first focus gross the incentive XX.X% respectively, and The capital to last a to improved and and is quarter profit larger our benefit projects is million XXXX first continued project of gross management. respectively, of to

year's million the to current quarter. from the the up XXXX quarter in revolver first million for in borrowings Net interest an of of XXXX primarily quarter expense during $X.X $X.X first was due increase

net million quarter XXXX for income a XXXX First current higher loss compared out million Rounding benefit $XX the in year of prior $X XXXX quarter driven million $X.X from net net was income of of by the same million in the the expense tax quarter is first the a net quarter. income. up income P&L, tax to quarter of $X.X

X-year $XXX $XX million available mentioned, closed a the was $XX.X Turning which on We for until mature Lasse which to XXXX cash $XX ended lien our million in term of a in doesn't revolver, quarter our third and we loan, a million million April, year. $XXX draw at of balance with million funded quarter and million closing first sheet. and basis delayed as on second drawn on $XXX is the

we and revolver $XXX sitting currently loan liquidity proceeds, the paid fully with million. With the off term are over of

no With our total maturities this interest debt X% until is our XXXX. on average weighted with financing, rate

We million, complete new alternative including sources program capital the for the maintenance of Subsea Total the completion made are vessel $X.X for up expenditures of installation XI. million pursuing XXXX our financing, of to positioned now for and plenty Acadia, liquidity additional million the growth. build and Island, the the of of remaining flexibility million first construction with Title $X while $XX.X quarter for the of well Amelia of maintaining $X.X rock were $XXX,XXX Galveston Island the for the

change $XXX between but at guidance timing unchanged CapEx million, to million remains can't $XXX year on milestone of depending Full payments. upcoming

undergoing the the expect dredges to middle decrease to prior dry be first quarter, quarter the to and second Looking year. project in of revenue as two will utilization from the dockings the LNG regulatory we forward commencing

down commence the This anticipation quarter, we about for for will towards of on slated will work dry dredge also maintenance. cold-stacked end dredge dock to year, regulatory we this and a begin and month a planned another a previously have of

expected docks related the and quarter in first repairs. decrease of dry and second compared increase the in The to is quarter timing revenues mostly to costs

a was to All strong solid and our change of doesn't be known and this that anchored will XXXX normalcy second half. view return and year a anticipated a by

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

Lasse Petterson

Thank you, Scott.

for a Congress We support President record the Trust Biden $X.X the strong provides the and industry. March, total work the and law, the water which nation's for Corps billion In Army year $X.X XXXX. $X.X Engineer’s build Maintenance of continue and maintenance fiscal Fund core to our maintain for water and and waste. The dredging billion signed appropriation the Biden includes to modernize energy funded U.S. billion for into in see Harbor administration from funding for operations

$X.X billion approved. and reduction addition, were damage In flood and stone

impacted was by natural In will XXXX hurricanes addition, beach the to infrastructure other fiscal Disaster necessary $X.XX renourishment Relief Supplemental core Appropriation approved, that make which and Act to for coastal to projects repairs increase resiliency. the initiate and disasters billion for year includes

expect XXXX. funding very a increased strong additional budget support We and to bid for market this

XXXX port second offshore power scale a market wind major coastal In New for deepening two beach February, the the quarter to to significantly the Mobile five Vineyard said and of as projects quarters and Martha’s expect in And and becoming grid installation the bidding Coast. and and farms wind the England increase Vineyard, continuing supplying completed install and in additional number operational the project third before, U.S. with The first milestones include while Sabine supplying Massachusetts. East the Wind and in and turbines. to of offshore protection commercial of New on turbines York power grid reached of we to projects

successfully for a and South additional wind rock new all Lakes and awarded Fork turbines and we and capacity solicitation saw with part Rock the to both as wind awarded XXXX, Great using March, farm round. round of offtake the contracts the and Wind foundations combined In -- gigawatts. February New of stabilize In constructed and can offshore Sunrise Empire bidding York. New X.X of Acadia delivered were be power awarded projects, protect accelerated in been board installation awarded X installation X have to Notably, cables Win those gigawatts of power latest landmark with projects an the by the Island powered agreements Long for we'll Rockaways. York completion has Wind twelve both project an of

after to of a April the January expected finally, disputes the supply. offshore gigawatts recently results for XX. further of the 'XX or Jersey as the solicitation fourth plans of awarded round And announced to State XXXX. X.X then gigawatts scrapping New New PPAs of of announced be after on round wind in X turbine our fourth solicitation tri-state And for earlier of with the gigawatts round solicitation to offshore related for up York awarded X in wind quarter fifth third

U.S. a and position has Lakes offshore unique and bid wind projects, of a internationally, Great the domestically offshore for and continue farm onwards. wind with other established in we rock And installations planned market. business XXXX pursue number to both

streamlined have backlog, year the record we So bid project us conclusion, our with outlook remains structure. The with in a cost for providing we the strong a promising market entered new pipeline. and

program build is solid supported new Our by liquidity. progressing and

very The quarter results first strong. were

we turn are year-over-year positioned to that, I'll with questions. the So call well for improved deliver results. And over

Operator

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

Joseph Gomes

ask first quarter? question you the of I Island, get utilization to The on how that want Galveston did in the first out much

Lasse Petterson

same January. the not commissioning have. exact to The Yes. utilization project were then at number were She East each time the her started in as do we do Coast. We progressed operations working she doing on and I

if So during utilization first solid partially the our the is was she of rest for quarter operational year. the and

Joseph Gomes

on? you you first then all you about kind do from that see quarter subcontractor really project, of Did Or work ongoing. and is And talked the LNG? any in the revenue the -- mid is Great. here LNG

Scott Kornblau

work we start work when do the Joe, but subcontractor side of dredging. book actually lower the the we subcontractor Yes, on when progression revenue is starts, of

So in see up tick related year in we'll start to revenue when the that the of projects our those projects. a expectation those middle

Joseph Gomes

the about docking dry vessels about talking you're dry talked beginning you then And in docking to Originally, QX. be Okay. in

been it pushed sounds QX. like to Now they've out

when So is in docking? Or that get of typical behind your there just anything for that? dry was could timing just they

Scott Kornblau

that's it. exactly Yes,

them in one first quarter completed did into just so. of second One and in or the start that the the quarter, continued week last

had had able start quarter some in work the quarter. do anticipated to in The other we first that one were the additional to we

that. the in we'll then able and its start most the second quarter work, So quarter, duration will shortly should that run of LNG which the got get ready to and second after delayed for start for to be

Joseph Gomes

And Great. for more I'll get if back me, queue. Okay. may. I one in

towards the You're solid the in third be and book do see awards see those a budget going the tending there and about you still you project some bidding year? the coming should awarding think quarter. talking core you type? key this on burn and capital Do in some Or and second lot bid contracts

Lasse Petterson

Gulf deepening second second on happening now is improving here also is in projects Yes. several one The bid a that the been in of the We that has see and phase of are is awarded. phases going continuing market quarter. Mobile well. There Mobile, the

On the there's of protection a lot coastal East work. Coast,

go couple talking I delayed, those back think being earnings of contracts you a and coming beach that now if are were calls, market we out. about .

So quarters. the next and of there's Coast the a the exact to strong able to X should the bid difficult the general, be but quarters. burn here in say in is that We looks type on East But bid opportunities numbers. good the in for and Gulf next X in book maintain with market bidding,

Operator

question with Securities. CJS next from John our And comes

Jonathan Tanwanteng

through maybe performance there go the half dry you how first the to one more year? QX My we had? on any schedule on as space possibly sell or could docking similar to have white to the we expect thoughts is, QX is Or evolve? second Just might or more one just the

Scott Kornblau

Yes.

be lot second that this the we again, the have of a caveat right the we of of I to mentioned, quarter, white some half repairs fill year. for we in backlog the second now docks the So still and executing that with space will on the rest year, have dry

number with fairly But low. is have, we backlog that the

are again, been we've to last win, setting return still for we what preaching year. but to the a quarters be work So to X those normalcy, up

Jonathan Tanwanteng

And for talk in opportunities more it. bit the Got 'XX for the could towards the a filling you're specifically? if schedule progress little year? domestic And about international making that and you Acadia

Lasse Petterson

Yes.

XXXX out, we comes 'XX, when the -- contracts. on coming scopes have she for work out see existing additional is secured backlog the We

quite XXXX. the rounds in PPA same and 'XX. which point have bidding for internationally, then the as developing is is There seen, are time. U.S. and the looking time, that and is in And So at XXXX 'XX the opportunities you awards we this At fluid at,

pans is been some being how of And to delayed 'XX into that out. and need has see now and that just the 'XX, work delayed we

to Clearly, U.S. Acadia competitive the the we due -- but the unique in attributes. our are in also is market. very competitive market on international

we So those are working on years.

beyond you solid. U.S., the in 'XX extremely is market go and If outlook the onwards,

So here. good opportunities

the we have in this So time. point that's kind of at details

Operator

comes Adam next Thompson from And question our with and Davis.

Adam Thalhimer

out help say What QX a on bit you Scott, that can you little to from the on sequential? sequential did QX?

Scott Kornblau

in knew a completing for the second quarter that for One vessel cold-stacked had a during dry a And second that that year. bring dock I the dock, one we said end And that quarter. will then expected a that dry that's in vessels of on two we that for planned dock the dock that a begin the to in maintenance will most new then so we weeks started start towards X out the the in reactivation some about have or to we [indiscernible] get of of work end dry Q. way. be the that of will previously at year, be dry wasn't contemplated

Adam Thalhimer

the guess and we'll strong? to sounds the back -- consensus or then it my hoop need current really put to the come I So going be is down because around some question does that just half is, like is

Scott Kornblau

flipped is -- now. timing Yes. recall, of a is this portion right Again, to has is so we small one I -- second saw or is that of mean, it QX This this I a into mean, dock new or A consensus don't that how playing us. I dry out. quarter. the portion, everybody none from month

This for docking, again, I is additional you exactly shaping small vessel nothing year, for the year dry utilization. saying previous return is cold-stacked has And been So have to solid which will have obviously a make accretive some again, going we still quite and time. a it's when that. may But about adjustment think that at normalcy to the how be it's changed. We've again, up. this

Adam Thalhimer

expect How to do backlog trend? you

Scott Kornblau

as Yes. that much I the do. you coming year, have $X have billion normally mean -- don't backlog we you availability when of means it into you

rolling been we've are pretty likely would lot. going maintain a we billion $X off just in to think is to think we to happen be I that So going perpetuity because consistent not

market and in opportunities Lasse as have But are lot do XXXX. we There strong. availability this said, of up, coming extremely a is

on that push We executing of find that backlog some XXXX also the we we we can to have some right if plan the in flexibility on opportunities.

in months. consistent the up jobs but be we lot margins ready at the of we'll fitting for that So vessels, opportunities our few are getting a next come over need there to

Adam Thalhimer

LNG. And you the are capital. on or mentioned a More of Okay. lot then beach opportunities. nourishment There

Scott Kornblau

Yes, there are.

Adam Thalhimer

And then update any XI? on Title

Scott Kornblau

a As -- not lot.

going we mentioned and did not dialogue we We anymore, financing, -- with wait financing we're as But quarter, ahead this have continue that's the to to and this last but in them. went a draw we're able work of reasonably. to and provisions call flexibility feature that. it, we delay where this lot do maintains fairly can with this to favorable swap continue If we'll very out why

just but So will finally think we go as I'm that to continues, making dialogue when forward. done predictions

Adam Thalhimer

low That's then Okay. half back you but It not like I'll just that margins back now. adjusted it's the QX, row half. you've a that in back time XXs a done and to for in ask. quarters And way of margins sounds get to EBITDA going couple gross in last be the

Scott Kornblau

Yes. remainder over X/X and still lot it is, of the of get that during the will is year. comprised I mostly mean the of a capital, backlog executed

the I when have couple the this backlog. do what have proper demonstrates of I mix would much normal when we call quarters we can of to and you fill. As again, I to the half look the we filled, is going year little white reason that gets But have mentioned, think assuming there's no not of last a backlog, capital think space to second

Operator

I back Tina like This to turn closing for remarks. concludes it our now question-and-answer to would session.

Tina Baginskis

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

Operator

participation for today's in conference. you Thank the does program. This conclude now

disconnect. may You

Great Lakes Dredge & Dock (GLDD) 7 May 242024 Q1 Earnings call transcript