GLDD - Earnings call transcript Q2 2024 | Great Lakes Dredge & Dock Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Q2 2024 Great Lakes Dredge & Dock Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference to your first speaker today, Tina Baginskis, Director of Investor Relations. ahead. go Please

Tina Baginskis

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

outlook on update morning will for Chief will Joining and call the financial an this 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

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

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

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

Lasse Petterson

Lakes Thank project results driven performance, delivered you, by Tina. Dredge control. solid Great excellent disciplined and well-executed Dock & second cost quarter dry-dock program

full net the $X.X dry-dock a have and quarter. the million in now in achieved of capital for adjusted $XX.X income pre we result strong third projects, very is new quarter, considering million. preparation in which of second This the we commenced For in LNG dredges EBITDA had

of bid billion, expected deepenings the robust of for year port prime first has so rest of With the is Engineers' a Corps been year, U.S. particular record projects. our budget market capital markets remain in the coastal and for of and the for half protection $X.X to XXXX the Army

of most strong, in the our $XXX.X off the keep quarter, projects. us year. the first our firm in dredging the stood The that half of replacing market to backlog enabled has end bid of of capital at revenue XX% dredging robust backlog burn the with million At

had we million bids award. addition, $XXX.X and in pending options In low

the we with dredging new have pending $XXX.X continued awards approximately Post on to million. be quarter low for bidder end, projects

Additionally, for $XX.X offshore million, an award. was in wind, $XX.X options with our million backlog additional pending

will Arthur full On Rio LNG the Corporation's Ship are and continue improvement Port swing Phase in and channel we work and mobilized project, the Grande third project projects, LNG-related be the project XXXX quarter in X the fully for now Next LNG Channel and Brownsville dredging main Decade XXXX. into

the to already has greatly not Energy projects We had continue LNG projects pause There we of of temporary on dredging Department on has and the our bids. also the that on our and support new awarded impact diversifying The large has on licenses these number our approved client tender -- continuation export expanding of base. by X approving projects. which sector minimal impact private an Biden been administration's business

leader quarter. for solid X,XXX-cubic-yard-capacity market trials project she long contributed have our Island. second from through fleet and to time, vessel on in significant of factor the made The operation performance quarter competitive Galveston shipyard commissioning with first in the sea the program progress in our dredge, is building best full hopper staying and record went key and Modernizing term, being our in newest the a delivery strongly to the a we new

sea levels. and designed beaches to subject which under projects continual expected these construction rising and currently improve delivered the are that lines, on to have and the the due our half sistership, is Amelia to Island, second redevelop damage in dredges be -- specially of to XXXX. Her is We storms been shore and operate

to start Jones Sunrise The and subsea currently XXXX on The XXXX. rock foundations installation scheduled for to to construction is compliant perform the Philly Wind Wind and the vessel, for a contracted placement cables protect Equinor's I fallpipe only Shipyard. rock first at project subsea Acadia Act the is U.S.-flagged under install rock Acadia, scheduled for inclined Empire Orsted’'s

in several and and addition market, protection In over wind cable oil and offshore and pipelines suited market, markets, power there carbon offshore She installing U.S. the cables. to the can wind markets well in for. work the can Acadia capture the she market are telecommunications opportunity that other is international rock and gas work the

both beyond. rock Acadia for We in have placements the of prequalified number internationally, a for and work projects tendered U.S. the plan we and and on XXXX

financial over to quarter, provide of $XXX and now of Title results second the liquidity an aggregate business. the of further amount flexibility to around facility alternatives, into and our draw delayed I'll $XXX and second-lien principal the turn million million in the we for million to new call then program the a the to aggregate build Scott amount entered additional provide financing loan commentary including will agreement XI. I quarter, our market to pursue further In discuss a other MARAD $XX term provide support and credit

Scott Kornblau

respectively. million, and Thank through million and and which net EBITDA adjusted income of $XX.X revenues resulted morning, by I'll margin in you, second XX.X%, of and Lasse, good walking everyone. adjusted of million the start quarter, EBITDA $XXX.X $X.X

in by our offset the the total a made of up Galveston of decrease of XX% and Revenues increased Island, addition which entire and quarter revenues of revenue. in capital coastal protection million the higher revenues second which due -- project worked the primarily XXXX, prior over of to XXXX, quarter together $XXX.X maintenance second and project partially from year million quarter, second $XX.X the

yield the compared margin improved typically which margin capital to margins. to and protection higher the Current higher $XX.X increased gross profit -- $XX.X increase quarter XXXX. And quarter quarter-over-quarter due million in gross project respectively, primarily in coastal performance XX.X%, and and gross million is respectively, XX.X%, to of profit and revenue, and second

last to higher is due XXXX $X.X Second XXXX. of employee than same $XX.X quarter incentive and primarily G&A expense benefit with first quarter the and consistent quarter G&A million costs year, the of higher in million

up million the second quarter term in second million from and $X.X primarily closed was XXXX the Net interest due loan, the -- the second quarter. in to for which of related quarter XXXX, earlier expense interest to $X.X

income income. Second tax $X.X by expense quarter of XXXX driven of increased compared million higher net $X million quarter quarter same the current XXXX, to the

year million, from increased million. adjusted Rounding was out second the $X.X and the up EBITDA the million quarter, XXXX to P&L, net million quarter income for $X.X prior in $X.X $XX.X

a cash our which on Total XXXX. to balance million until Turning third in sheet. and ended our quarter mature of -- drawn $XX.X the the second million quarter revolver, We nothing with doesn't liquidity We end was $XXX program we debt great build just the and ample our new at putting of complete position have no XXXX, to the quarter liquidity. million, over until with us maturities in $XXX

million quarter subsea $XXX,XXX for and of vessel, of for were second dredge for made Amelia the the payment $XX.X $XX.X final of We -- the expenditures million, Total $XX.X the rock for installation Island, million hopper maintenance CapEx. $X.X XXXX capital up Island for construction the the the Acadia, million Galveston

timing to to $XXX from CapEx million full to due the of payments our XXXX projected between certain million early late $XXX year million lowering from $XXX and milestone pushing between XXXX. $XXX guidance million are to We

second third commence. from as quarter forward to LNG utilization and the Looking both expect revenue we quarter, projects to the increase

quarter dockings we the originally will dry have have vessels for now quarter period but no of short a will for planned a second during down we regulatory the year, X for of the the While third. planned planned maintenance, was rest in time the including few occur third for that

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

Lasse Petterson

Scott. Energy and billion storm $X.X million bill $X.X includes White billion $X.X of and for which waterways, flood of the of $X.X law, reduction for and dredging Maintenance funding enhance the and Harbor course support damage U.S. Water appropriation Engineers’ Biden use to to This Thanks, Army and into XXXX. for which both Congress. our allocates beneficial from of operations the continues House the March in Corps nation's see On dredge President from signed, material. The billion for industry came Trust Fund billion year fiscal $XX total strong for maintenance, the

been and very coastal infrastructure resilience. has post billion Relief natural for additional to necessary repair disasters, year Disaster to budget Corps for the $X.X make market which for bolster as Furthermore, This other the Act and XXXX, and initiatives Supplemental fiscal hurricanes Appropriations a XXXX. includes approved, renourishment supported well -- increased have strong beach as funding bid

$X.X billion to and Water Maintenance Corps billion Appropriation bill Looking Corps' is with be includes Subcommittee another Energy structure. providing Representatives, for XXXX, forward which for Appropriation $X.XX Bill, budget House and passed of XX, On expected of their Maintenance projects, record $X.X appropriation. the XXXX June the Operations the The is is to from what billion. expected Harbor the

its billion in to another water the energy industry. The X, $XX.X On of up the total for strong set the appropriations spending August approved the Corps. of Committee these market funding XXXX bid XXXX draft Senate dredge be included for bill, passing Appropriations which and

X seen Resource of and the in years. has the ahead, to financing closer XXXX, XXXX House strong to and and that further the X-year Development and the WRDA, or includes already the X WRDA and Water of XXnd legislation Act Looking moving of support has a Committee on by Committee cycle Environment is and Transportation Senate the next approved bipartisan full congressional House bill renewal projects approved the U.S. authorizes approval. one Infrastructure the the Works been WRDA step Public the July, Corps' Representatives

offshore offshore power York market of supplying XXXX, scale commercial in operational Massachusetts. wind wind The the with grid half first X farms becoming in milestones U.S. New and the and to reached historic

Tri-State wind awarding saw quarter. agreements also expected in for purchase Rhode gigawatts the power of Island X gigawatts of solicitation Jersey and Massachusetts, third offshore We Connecticut X.X New are and

wind very with tenfold of to with X XXX and capacity gigawatts which offshore The show our outlook, Kingdom installed offshore the States market strong wind the provides approximately United to long-term global X of supporting us expected top latest offshore our the wind by opportunity. revenue Bloomberg producers, United be a grow market forecasted with energy outlook growth XXXX,

is that is very Lakes In my in time. exciting my view Great it positioned -- a well now view

We flexible dredging have port deepening capital a large projects. of strong a consisting LNG backlog and

We for will improved deliver greatly flow solid year-over-year offshore continue our support upgrade cash have this free higher expect same to wind XXXX. of with and support and to generation the a continue results, the to growth the high-growth, revenue market improve to market. position our supports dredges And expansion fleet into robust bid XXXX and and modernize more our again productive which high-margin in

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

Operator

Instructions]. [Operator

Gomes Our from Capital. NOBLE comes Joe from first question

Joseph Gomes

of nice won you that like of up you kind weren't of Joe. your you quarter, guys us know expecting in the out. I the share you Were some flip don't side, and share, the there the market win bid provide can the the Very driver's seat? in win out quarter for start there projects wanted if I to to quarter? statistics particular any that projects that were being thought any particular on driver's ended or and you that not seat your

Lasse Petterson

No.

market And where East -- back a that restoration and has beach market is XXXX, in see happy said, [ has I years, very deepening we market general, and strongly. the Coast are deepening last over the As delayed forward. also now forward, has perform in in are and moving typically strong that the Gulf the -- very been That the port on particular, ] the market well. X bid is been that moving we projects in in to come

Joseph Gomes

on in if little in some a that the coming saying, as the of the telecom, about some this power to -- recall Okay. and U.S.? a industries I markets. vessel." in kind can market more we for of "Hey, to I'm U.S. other take great speaking also use And previously. that are then participants potential trying else those more wind These Or that color Acadia, just you the things what protection don't you're out potential least opportunities. mentioned doesn't make get these of done cable, offshore, gas, could anticipated oil for Is is pointed off looking legs be the of and offshore just you at opportunities other

Lasse Petterson

can installed substations need over that things, in support which need of vessel of pipelines do places monopiles, also There The places Yes. the all I it a described. rock number our cable being these over protection. offshore It wind that protection now, and rock the are pipelines. installations,

a for so market large cable protection worldwide. very And

here which That's is internationally. we address. us bump also market the pipelines, rock sector very requires do when the hit we market a there's -- also for at well, wind wind So for do internationally looked vessel can offshore kind offshore the a clear strong and of last the And look very the we term. opportunities over where in it's and a that large market oil what short we year, cable and gas protection where

the compete internationally sectors. markets -- targeted, in wind it's these was the all prime market So market offshore a are we can as the U.S. Acadia. open on for all these but Acadia

Joseph Gomes

then just more And me. queue. Okay. get I'll in one back for

all Is on Galveston So how you mention the and hiccups the up running quarter? up are in Galveston that Any expectations? Island? the vessel of the full performance Island pleased the with quarter. to Or

Lasse Petterson

No, we performance. are very the pleased with

you getting vessel the As had know, in delivered. we delays some

very since a And commissioning went effort as much into well record we for of So the performed was sea was lot and in we being and trials built. as delivered. put vessel she when commission time has could us she through

Operator

Julio from & Romero Sidoti comes question next from Company. Our

Julio Romero

for coastal is then be and expected give back maybe Can you in much 'XX? the sense talk reflected coastal protection bid work be to could half us And your when about how that a demand backlog? of over of

Lasse Petterson

Yes.

has As very about we've there there . is and of back, been has on more high slow. now protection is It's are market -- before, in looking, addressing. range we And it's -- for projects kind East in around that. Coast, which than coastal in we of a of East million now Coast are protection of years, maybe $XXX where been number the particularly and end the the bidding on last market, come coastal the X the particularly the that talking

great So the that approvals and along a East come see funding project lot that lack with projects a of market of also market. that the that's has to uptick because we these these are dependent in see now And in and the with back years vengeance, for the a And great tourist and communities has Coast Florida suffered. last over industry. X on

Scott Kornblau

second a July And that Julio, the come. work. month I'll very strong. call, $XX month. over There looks the the just on won add. million was $XXX with to million half sector July a just of to we've the We mentioned mentioned just busy for million very lot in July we about was $XX of more

Julio Romero

that being next the Can it. it helpful. X And big hold could well part a trend of backlog up talk how Got the continue projects you That's mix the was quarters? to see capital should of and with the of backlog mix. about for mix

Scott Kornblau

Yes.

So both the commencement we're now, working capital projects all the including of LNG.

was over are into we'll up, So we'll There start second burning our quarter. million. off quite year. mentioned a did bit capital the second half get That jobs coming of projects We added July, strong July. see X though, the win of the I in tune so backlog, very some capital in next $XX a about of half. that

we're coastal the $X.X spend the right billion, to starting likely The out now. larger bill so the in second is There's that the of segment with the just coming much year market supplemental of protection. half see

still but number that strongest of projects So think will piece, the that a there's we're be capital eyeing. I

Julio Romero

one Can just expected on Okay. guidance you then CapEx last left the you much that's us how to build is quickly Understood. I the and remind for -- appreciate the And is just me on updated new program complete. when gave.

Scott Kornblau

Yes.

and of year, this to roughly million -- -- $XX Acadia million done, million. $XX give And the the million so million in $XX should maintenance we on and And build all the for second we take, third Amelia the the or additional have the of Island about we delivery half said build $XX an program million, call with program, quarter. in of of So $XX of new roughly new $XXX both $XX then million take -- and roughly in left to that XXXX. left have CapEx

Operator

from One next Our Tanwanteng CJS question. question John comes Securities. from

Jonathan Tanwanteng

the just was activity talk I given much have could if left year, the of all the about space July. in for the you remainder you schedule in wondering white how

Lasse Petterson

much have white program. don't in left We our Yes. space

the that for coming and here market fleet. beach revenue cutter a with our year. good some good fourth next are see But of strong we There towards, on utilization of there have say, are let's dredges. up, our opportunity opportunities the quarter We generation side into

Scott Kornblau

one the beach and capital projects of projects add, flexibility. I we these a provide And they Jon, large really will reasons of like ton us as

XXXX though have the we into have from 'XX So number planned some push we utilization penciled find if may even in on full we a can work this year, still to of other of work opportunities. we opportunities bid vessels as

Jonathan Tanwanteng

Got -- out any maintenance QX do heading in it. have And QX? other QX? impact maintenance the how pushed much how And into you then being of was to much planned of

Scott Kornblau

Yes.

-- to getting had one of we few a some vessels do was delay them the needed of the a in backlog, in full and to had planned it had was we that So parts we yard. there QX,

working kept and of we in planned that will It in now QX QX. down. had be just we that happen So a will will weeks it couple take

vessels, planned but end payroll. or just week we we between on note do nothing year, normal of on needs have be taken have always We planned to these really back that have of to them handful done vessels for maintenance just and the so and the get will of out be what now that

Jonathan Tanwanteng

for fourth the ] it. the kind the assume reasonable you to Between not it maybe the is QX and third dry or the quarters, -- of of in year, end [ of utilization that performance the the earnings Got approach docking through and later [indiscernible]? could if end no the

Scott Kornblau

on working on were high do is of. well capital very be we margins. we projects very, projects. extremely of typically lot high to extremely We grand up shaping A in QX, were QX, had particular, that utilization the slams.

half year. the have and of second backlog the backlog the very a mix of have we solid to So

Jonathan Tanwanteng

opportunities that projects on movement give that to that the project. window Acadia more update approach into pulling I a being go go set or Orsted’ the recall just And delayed that bit fill might projects might I Could into move at were in in the then last that the actually window as us you open little it. in that end 'XX? opportunity you of about maybe the you that finally, Got time window. could for that utilization think spoke into any

Lasse Petterson

Yes.

there and We the fill agreements. these where are and to projects then of XXXX. we 'XX out coming new bid the we need have but time. clients And that could some for in negotiating options point a end that have 'XX, looking number we into awards of are And are at this resolution

Europe. a situation, the utilized going Particular in you the are strong, well as on confident But and in XXXX imagine 'XX the is fluid out in It's U.S. can internationally. and onwards. onwards and and 'XX the have both in with well the also and in market, vessel all things U.S. both we to extremely

So need utilization to for we that looking in fill just short-term there. we that are

Jonathan Tanwanteng

a of I it. competition there. could one time? in for of sneak more that Got If Is window lot there

Lasse Petterson

not. that's No,

is vessel. As the Jones only Acadia the compliant you know, Act

U.S. position. and strong also at So very and And levels opportunities activity the looking market. then cable in are gas And a the internationally, said, for projects, I as the protection oil are in are we high. we internationally still

Acadia, the situation a So outlook due a -- so bit the for of there fluid in political U.S. situation the to good but

Operator

Davis. Thalhimer comes Our Thompson next from question from Adam

Adam Thalhimer

behavior? curious, here. the pretty The strong are terms of market competitive QX what I'm looks on seeing you Congrats just in beat.

Lasse Petterson

behaviors let's I that. the and strong, Weeks, some, biggest and market year say, also sees as is everybody said, entrants the very into saw last bid ownership. new competitor But interesting with We Yes. changing our market

activity the see let's say, in behaviors as or market. So there's we no, extraordinary it

there spread comes see is busy you they quite that and when on come at time. the and the also announcements bids a out, is competition, The big on being from and bid this we're the market pricing, strong quite can

Adam Thalhimer

sense is how away of to billion. of going low are for the hear. That good bids to guys blown What's I'm July you And then quarter? $XXX the out finish your kind by

Scott Kornblau

$XXX slightly million so actually, one over sixth that's all awards were $XXX actually a Yes X they're of We estimate. low -- bidder the million. over just had We government but awardable. and and

with awarded. that them path working find to we're get to So a one

grow So that July even number potentially tend than higher that.

The than be quarter. good to will a be July was second We Again, third over strong, August than shaping stronger quarter indication, higher million. number the July. extremely up think $XXX is a

for that particularly lot but be We out. a many that bids July have potentially and we win, dependent work in the many ones putting out we the is we on second out quarter. XX coming there of half projects working will the are we in that those of have put How of third how on year, eyed availability earlier

Adam Thalhimer

growth like trying we million. still 'XX is, think for I'm is but in as my much versus question ask to stack? Like how potential how about this, 'XX to 'XX cold versus What's 'XX? framework think the

Scott Kornblau

mean we take come I and that to even need a That's worked we've the reason back. cold they long-term haven't money in They for a to years, in said Yes. it again. a of of would out may not stacked. vessels had That's this bit couple we quite have the make. come market, that decision

Where of be is may work. have the right that vessel work capital we're and in mechanical flux the seeing suited of the cold kind the well in or now that we for not work, may that beach stacked work

very So out. I to an take this that it even that market cold-stacked robust opportunity wouldn't in expect gives vessel us

call, I see on now have mention are the we did a same that I unlikely did follow path. Now we other reactivating a think because cold-stacked did it's the we we job the one vessel last win

Adam Thalhimer

think next have you Okay. mean, guess, as I Acadia. the towards But from earnings do we I year,

So . helps. that

Scott Kornblau

we decision to as comes Island on. will the it said can we've remember, But the make possible half second now. of always be need replacement Acadia it's the in that We additional, that, not Adam, instead come will capacity on. of Amelia make Yes. a year

Operator

remarks. it showing this I will now am questions back at no further turn over Baginskis, to I for you. Thank closing time. Tina

Tina Baginskis

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

Operator

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

now You disconnect. may

Great Lakes Dredge & Dock (GLDD) 6 Aug 242024 Q2 Earnings call transcript