Dredging Segment Earns Revenue of $587 Million
Company Maintains Over $400 Million in Backlog
Misses Adjusted EBITDA Guidance
Restates Second and Third Quarter 2012 Results
Announces Departure of Bruce Biemeck, President and COO
OAK BROOK, Ill.--(BUSINESS WIRE)--
Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), the largest
provider of dredging services in the United States and a major provider
of commercial and industrial demolition and remediation services, today
reported financial results for the quarter and year ended December 31,
2012.
For the three months ended December 31, 2012, Great Lakes reported
Revenue of $207.1 million, Net Income attributable to Great Lakes of
$0.3 million and Adjusted EBITDA of $21.3 million. For the year ended
December 31, 2012, Great Lakes reported Revenue of $687.6 million, Net
Loss attributable to Great Lakes of $2.7 million and Adjusted EBITDA of
$60.9 million.
The Company will amend its September 30, 2012 and June 30, 2012
Quarterly Reports on Form 10-Q which will delay its filing of the 2012
Form 10-K. The Company expects to file its 2012 Form 10-K and amendments
to its September 30, 2012 and June 30, 2012 Quarterly Reports on Form
10-Q by March 29, 2013. The Company will also identify and disclose a
material weakness in internal control over financial reporting.
Restatement of Second and Third Quarters
During the preparation of its year-end financial statements, the Company
identified instances in its demolition segment where revenue was
recognized in a manner not consistent with Great Lakes' accounting
policy. Great Lakes' policy regarding pending change orders is to
immediately recognize the costs but defer the recognition of the related
revenue until the recovery is probable and collectability is reasonably
assured. Certain pending change orders where client acceptance has not
been finalized were included as revenue. After a review, the Company
concluded 2012 second and third quarter demolition segment revenues were
overstated by $3.9 million and $4.3 million, respectively. The Company
believes recognition of a significant portion of these amounts is a
timing issue. However, the Company cannot provide assurance the revenue
from these pending change orders is certain to be realized.
Restatements of the financial statements to be included in the amended
Quarterly Reports on Form 10-Q for the second and third quarters of 2012
will also include adjustments to dredging operating income to record
$1.3 million and $0.9 million, respectively, of expenses previously
capitalized and incurred in the preparation of vessels for the
Wheatstone Australia LNG project. These expenses were incurred as a
strategic decision to minimize downtime and positively impact the
project gross margin while we work in a remote area of Australia in 2013
and 2014.
Fourth Quarter
For the fourth quarter, $5.6 million of demolition revenue originally
expected to be realized did not meet the Company's revenue recognition
standards. The Company also believes recognition of a significant
portion of these amounts is a timing issue. However, the Company cannot
provide assurance the revenue from these pending change orders is
certain to be realized.
Executive Departure
The Company also announced the departure of Bruce J. Biemeck, President
and Chief Operating Officer effective March 13, 2013 with recognition of
his years of service as an officer and member of the Board of Directors.
Mr. Biemeck served as Chief Financial Officer until August 20, 2012.
Please refer to the Form 12b-25 and Form 8-K which will be filed with
the SEC later today for additional information.
Commentary
Jonathan Berger, Chief Executive Officer, said "I am deeply disappointed
with the issues in our demolition segment, which contributed to the need
to restate our second and third quarter financial results, and deferral
of the recognition of revenue and Adjusted EBITDA. We will be focusing
on improving controls at our demolition segment and throughout the
Company. We at Great Lakes are committed to growing our business and
increasing shareholder value. The demolition segment is a key part of
our growth strategy, and we are committed to having the right personnel
and tools in place to effectively grow the segment while maintaining
adequate operational and financial controls.
"On December 31, 2012 we purchased the assets of Terra Contracting, a
respected provider of a wide variety of essential services for
environmental, maintenance and infrastructure-related applications. With
Terra's environmental expertise we expect to broaden the service
offerings of our demolition and environmental businesses and expand
their market reach."
William Steckel, Chief Financial Officer said "The dredging segment had
a strong quarter, with record revenue of $190.1 million. The dredging
segment safely and efficiently executed over 18 domestic projects in the
quarter. Although our results in dredging were outstanding, we fell
short of our high expectations for the fourth quarter. This was in part
because three dredging projects shifted from the fourth quarter into the
first quarter of 2013 and there were cost overruns in two other
projects. The dredging segment had also expected to sell an
underutilized dredge prior to year end. The buyer experienced funding
delays and we now expect to realize the $4.0 million gain on the sale of
this dredge in 2013.
"We maintained our strategic investment in working capital for key
projects and balanced these investments with our overall objective of
maximizing shareholder value, with the decrease in cash in the quarter
resulting primarily from our $15 million special dividend. As previously
disclosed, we have committed substantial working capital to large
projects this year with the most significant investments being
Wheatstone and the Scofield island coastal restoration project in
Louisiana. Across these two projects, we have invested nearly $60
million. We expect to recapture this working capital throughout 2013. We
have a strong focus going forward on working capital management and
generating positive cash flow.
"During 2012 we incurred $4.7 million of accelerated maintenance
expenses related to preparation of vessels for the Wheatstone project in
Australia, which we expected to recognize in future periods based on
project performance. In our amended June 30, 2012 and September 30, 2012
Form 10-Qs we will adjust dredging operating income to record $1.3
million and $0.9 million, respectively, of these expenses as a period
cost. The remaining $2.5 million was expensed in the fourth quarter. The
Company does not frequently incur significant accelerated maintenance as
a part of its international deployments. We have therefore excluded
these accelerated maintenance expenses from the calculation of Adjusted
EBITDA that we are including in this earnings release. Exclusion of
these expenses from the calculation of Adjusted EBITDA allows users of
the financial statements to more easily compare our year-to-year results.
"As a result of the matters described in this release, we did not meet
one of our financial covenants in our senior revolving credit facility
("Credit Agreement") and our International Letter of Credit Facility at
December 31, 2012. Both the Credit Agreement and the International
Letter of Credit Facility require us to maintain a minimum fixed charge
coverage ratio of 1.25 to 1.0. Our fixed charge coverage ratio as of
December 31, 2012 was 1.12x, resulting in a default under the Credit
Agreement and International Letter of Credit Facility, and a potential
default due to a change of condition under our bonding agreement. While
there can be no guarantees, we expect to receive all necessary waivers
from our banks and our surety prior to filing our Form 10-K and we
anticipate being in full compliance will all financial covenants in the
first quarter of 2013."
2012 Fourth Quarter Operating Results &
Highlights
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|
Q4 2012
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Q4 2011
|
Revenue
|
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$207.1 million |
|
$158.6 million |
Increase
|
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30.6%
|
|
|
|
|
|
|
|
Gross Profit
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$21.9 million |
|
$18.4 million |
Gross Profit Margin
|
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10.6%
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11.6%
|
|
|
|
|
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Operating Income
|
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$5.1 million |
|
$15.2 million |
Decrease
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66.4%
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|
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Net Income attributable to
|
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$0.3 million |
|
$6.8 million |
Great Lakes
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Per Diluted Share
|
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$0.01
|
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$0.12
|
|
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|
|
Adjusted EBITDA
|
|
$21.3 million |
|
$25.8 million |
Decrease
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17.4%
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December 31, 2012
|
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December 31, 2011
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Total Debt
|
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$263.1 million |
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$255.6 million |
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Net Debt (Debt less cash)
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$238.7 million |
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$142.3 million |
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Cash and cash equivalents
|
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$24.4 million |
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$113.3 million |
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Revenue & Gross Profit
-
Revenue increases in the quarter included:
-
123% increase in domestic capital dredging revenue driven by
deepening work in the Ports of New York and New Jersey and coastal
restoration in Louisiana;
-
118% increase in maintenance dredging revenue driven by a
maintenance project in Baltimore, Maryland and concluding work on
a maintenance project in Louisiana as well as other projects along
the East Coast that were worked in the quarter;
-
112% increase in foreign capital dredging related to revenue
recognized on the Wheatstone project as well as two land
reclamation projects in Bahrain;
-
The above increases were partially offset by decreases in
demolition revenue (52%) and coastal protection (previously
referred to as beach nourishment) revenue (27%). Significant work
was done in the demolition segment in 2012 on projects where
revenue was not recognized because of pending change orders. In
addition, demolition revenue was higher in 2011 due to the revenue
recorded on a large bridge demolition project in Louisiana that
did not reoccur in 2012. Coastal protection revenue was atypically
high in 2011.
-
Gross profit margin (gross profit divided by revenue) decreased due to:
-
The impact of costs incurred in excess of revenue recognized
related to pending change orders on certain demolition projects;
-
This was partially offset by an increase in revenue in the
dredging segment, specifically higher margin capital projects.
Operating Income
-
Declined compared to the prior year quarter due to the decrease in
gross profit noted above and due to $8.6 million in gains that were
recognized in the prior year as a result of the sale of two
underutilized assets.
Cash and cash equivalents
-
Cash and cash equivalents declined in the quarter primarily due to the
issuance of a $15 million special dividend. Throughout 2012 cash and
cash equivalents have declined due to continued investments in working
capital on long term projects, including the $60 million invested in
the Wheatstone and Scofield projects, as well as capital investments
in our fleet and new equipment. Cash also declined due to costs
incurred on pending change orders for demolition segment projects.
Year Ended December 31, 2012 Operating Results
& Highlights
|
|
YTD 12/31/12
|
|
YTD 12/31/11
|
Revenue
|
|
$687.6 million |
|
$627.3 million |
Increase
|
|
9.6%
|
|
|
|
|
|
|
|
Gross Profit
|
|
$68.4 million |
|
$93.0 million |
Gross Profit Margin
|
|
9.9%
|
|
14.8%
|
|
|
|
|
|
Operating Income
|
|
$15.5 million |
|
$54.3 million |
Decrease
|
|
71.5%
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to
|
|
$(2.7) million |
|
$16.5 million |
Great Lakes
|
|
|
|
|
Per Diluted Share
|
|
$(0.05)
|
|
$0.28
|
|
|
|
|
|
Adjusted EBITDA
|
|
$60.9 million |
|
$93.7 million |
Decrease
|
|
35.0%
|
|
|
|
|
|
|
|
Revenue & Gross Profit
-
Full year 2012 revenue increased primarily due to an increase in four
of the five dredging markets compared to 2011; however, the gross
profit margin was down due to costs incurred in excess of revenue
recognized related to pending change orders in the demolition segment,
and weather impacts and lower dredge utilization during the 2012 first
and third quarters.
Operating Income
-
Operating income was down for the full year 2012 compared to the prior
year, due to lower gross profit, as discussed above. In addition, in
2011 the Company sold two underutilized hopper dredges and an
underutilized piece of land, which generated cash proceeds of $15.6
million and resulted in a gain of $11.7 million.
Net Income (Loss) Attributable to Great Lakes
-
A net loss attributable to Great Lakes was recorded for the full year
2012, versus net income attributable to Great Lakes in 2011, due to
lower operating income.
Bid Market & Backlog
The domestic dredging bid market for 2012 totaled $939 million, compared
to $1,041 million in 2011. The Company won 37% of the overall domestic
bid market during this period, in line with its prior three year average
of 39%. In 2012 Great Lakes won:
-
52%, or $108 million, of the coastal protection projects awarded;
-
35%, or $84 million, of the capital projects awarded;
-
29%, or $115 million, of the maintenance projects awarded; and
-
45%, or $42 million, of the rivers & lakes projects awarded.
The 2012 bid market was down slightly from the prior year, driven by a
decrease in capital and coastal protection dredging. The coastal
protection market was atypically high in 2011, with the highest volume
of coastal protection work ever awarded. The coastal protection market
in 2012 was the third highest coastal protection market ever bid.
Great Lakes was the low bidder in the fourth quarter on a $68 million
deepening in the Port of New York/New Jersey. $41 million of that
project was awarded in January and the remaining $27 million was awarded
in March. Proposals on the Miami Harbor deepening project were submitted
during the first quarter of 2013.
Great Lakes' backlog remains at a high level. Dredging backlog and
pending domestic awards at December 31, 2012 reached $471 million, which
compares favorably to $355 million at December 31, 2011. The Company's
contracted dredging backlog without pending domestic awards was $389
million at December 31, 2012 compared to $319 million at December 31,
2011.
Demolition segment backlog was $60 million at December 31, 2012,
including $7.7 million from Terra, and $51 million at December 31, 2011.
Demolition backlog includes a $23.3 million brownfield development
project in New Jersey and an $11.3 million demolition project in
Columbus, Ohio.
Commentary
Mr. Steckel said, "While the quarter was strong, with record revenue and
Adjusted EBITDA in the dredging segment, it fell short of our
expectations. As to the future, we believe we are well positioned to
take advantage of key opportunities in our dredging and demolition
markets that will, with strong execution, result in revenue growth and
improved margins.
"We are focusing on improving our internal controls. We will undergo a
thorough retraining of our demolition segment personnel, we will add key
personnel where needed and we will strengthen our procedures to ensure
our divisions comply with all of our operational and accounting
policies. We will be installing new estimating and project management
software at the demolition segment."
Mr. Berger added, "We continue to be excited about our businesses and
the opportunities available to us. Domestically, we submitted our
proposal for the Miami Harbor Deepening project in January, and we are
waiting to hear from the Army Corps of Engineers. In the first quarter
of 2013 we were awarded a $68 million deepening project in the Ports of
New York and New Jersey. In our capital dredging market, this month we
were also awarded a $40 millionShell Island East coastal restoration
project in Louisiana. This work will be adjacent to the Scofield Island
project on which we are currently working.
"We have seen new funding sources for both coastal restoration and
coastal protection projects. Criminal and civil penalties settled to
date related to the Deepwater Horizon Oil spill should result in over
$1.5 billion being directed to coastal restoration in the Gulf Coast
area. Additional BP civil penalties could further increase funding in
the Gulf. Legislation passed in January will also provide emergency
funding for those areas affected by Superstorm Sandy. We are currently
working with the Corps to understand which projects are expected to be
bid and when, and feel confident there will be a significant positive
impact to the 2013 market and for the foreseeable future. We believe
this funding provides the foundation for renewed federal government
commitment to coastal protection for the long term and is being met with
renewed interest in funding projects at the State levels as well.
"Internationally, our Middle East market has been bolstered by a $40
million project in Qatar, and we are cautiously optimistic about
additional large scale projects in that region. We expect to see our
results positively impacted from the Wheatstone project in 2013 and
2014. We are also moving one of our clamshell dredges to Brazil to
complete a $20 million project and expect to bid on other projects in
that region with our dredge.
"The acquisition of Terra Contracting broadens our remediation
capabilities and also brings a stronger market presence outside of the
northeast where we have traditionally focused. The successful
partnership of our broadened demolition and remediation capabilities
with our dredging expertise is an important component to our Company's
growth.
"Our enthusiasm for the near and long term prospects for Great Lakes
remains strong. Recognition of the need for additional investment in
U.S. ports and waterways is expected to support an increase of
appropriations to future U.S. Army Corps of Engineers' budgets for
maintenance and capital dredging. Sequestration may have an impact in
the short term on projects coming out to bid, but we believe once
Washington straightens out the budget issues, they will continue to
focus on infrastructure investment as their rhetoric consistently
suggests. The public investment in port infrastructure is necessary as
the ongoing expansion of the Panama Canal and initiatives to increase
exports heightens the need for the U.S. to deepen its East and Gulf
Coast ports to facilitate larger draft vessels. We believe coastal
restoration and coastal protection efforts will increase as a result of
the recognition of the value of such projects post Superstorm Sandy.
Settlements between the Justice Department and BP related to the
Deepwater Horizon Oil Spill also are expected to generate a significant
number of coastal projects. Proudly, Great Lakes is building the largest
hopper dredge in the U.S. because of these market dynamics. This will
strategically position the Company to capitalize on future deepenings,
coastal restoration and coastal protection projects throughout the U.S."
Use of Adjusted EBITDA
Adjusted EBITDA, as provided herein, represents net income (loss)
attributable to Great Lakes Dredge & Dock Corporation, adjusted for net
interest expense, income taxes, depreciation and amortization expense,
debt extinguishment and accelerated maintenance expense for new
international deployments. Beginning in the fourth quarter of 2012, we
have modified our Adjusted EBITDA calculation for accelerated
maintenance expense for new international deployments that are not
directly recoverable under the related dredging contract and are
therefore expensed as incurred. The Company does not frequently incur
significant maintenance as a part of its international deployments. As
such, the exclusion of these accelerated maintenance expenses from the
calculation of Adjusted EBITDA allows users of our financial statements
to more easily compare our year-to-year results. Adjusted EBITDA should
not be considered an alternative to, or more meaningful than, amounts
determined in accordance with accounting principles generally accepted
in the United States of America ("GAAP") including: (a) operating income
as an indicator of operating performance; or (b) cash flows from
operations as a measure of liquidity. As such, the Company's use of
Adjusted EBITDA, instead of a GAAP measure, has limitations as an
analytical tool, including the inability to determine profitability or
liquidity due to the exclusion of accelerated maintenance expense for
new international deployments, interest and income tax expense and the
associated significant cash requirements, and depreciation and
amortization, which represent significant and unavoidable operating
costs given the level of indebtedness and capital expenditures needed to
maintain the Company's business. For these reasons, the Company uses
operating income to measure its operating performance and uses Adjusted
EBITDA as a means to provide meaningful supplemental information in
addition to the GAAP metrics and provide comparability and consistency
to prior periods. Adjusted EBITDA is reconciled to net income (loss)
attributable to Great Lakes Dredge & Dock Corporation in the table of
financial results. For further explanation, please refer to the
Company's SEC filings.
Conference Call Information
The Company will conduct a quarterly conference call, which will be held
on Friday, March 15, 2013 at 8:00 a.m. C.D.T (9:00 a.m. E.D.T.). The
call in number is 877-377-7553 and conference ID is 23701956. The
conference call will be available by replay until March 20, 2013, by
calling 800-585-8367 and providing passcode 23701956. The live call and
replay can also be heard on the Company's website, www.gldd.com,
under Events & Presentations on the investor relations page. Information
related to the conference call will also be available on the investor
relations page of the Company's website.
The Company
Great Lakes Dredge & Dock Corporation is the largest provider of
dredging services in the United States and the only U.S. dredging
company with significant international operations. The Company is also
one of the largest U.S. providers of commercial and industrial
demolition and remediation services primarily in the Northeast. The
Company owns a 50% interest in a marine sand mining operation in New
Jersey that supplies sand and aggregate for road and building
construction and a 50% interest in an environmental service operation
with the ability to remediate soil and dredged sediment treatment. Great
Lakes employs over 150 degreed engineers, most specializing in civil and
mechanical engineering, which contributes to its 122-year history of
never failing to complete a marine project. Great Lakes has a
disciplined training program for engineers that ensures
experienced-based performance as they advance through Company
operations. Great Lakes also owns and operates the largest and most
diverse fleet in the U.S. industry, comprised of over 200 specialized
vessels.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 21E of the Securities
Exchange Act of 1934 (the "Exchange Act"), the Private Securities
Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the
Securities and Exchange Commission (the "SEC"), all as may be amended
from time to time. Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of Great Lakes and
its subsidiaries, or industry results, to differ materially from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Statements that are not historical fact are
forward-looking statements. Forward-looking statements can be identified
by, among other things, the use of forward-looking language, such as the
words "plan," "believe," "expect," "anticipate," "intend," "estimate,"
"project," "may," "would," "could," "should," "seeks," or "scheduled
to," or other similar words, or the negative of these terms or other
variations of these terms or comparable language, or by discussion of
strategy or intentions. These cautionary statements are being made
pursuant to the Exchange Act and the PSLRA with the intention of
obtaining the benefits of the "safe harbor" provisions of such laws.
Great Lakes cautions investors that any forward-looking statements made
by Great Lakes are not guarantees or indicative of future performance.
Important assumptions and other important factors that could cause
actual results to differ materially from those forward-looking
statements with respect to Great Lakes, include, but are not limited to,
risks associated with Great Lakes' leverage, fixed price contracts,
dependence on government contracts and funding, bonding requirements and
obligations, international operations, backlog, severe weather related
costs, uncertainty related to pending litigation, uncertainty relating
to our ability to recognize in subsequent periods demolition segment
revenues that previously had been or were expected to be recognized
during 2012, government regulation, our ability to strengthen our
internal control over financial reporting and disclosure controls and
procedures, particularly in light of the matters disclosed in this
earnings release as well as in the Form 12b-25 and Form 8-K that we
filed today, our ability to secure waivers from our banks, surety and
other third parties, as applicable, with regard to the covenant matter
described in this press release, restrictive debt covenants and
fluctuations in quarterly operations, costs associated with
environmental compliance efforts and the possibility that we may incur
substantial environmental liabilities, liabilities associated with our
joint ventures, partners and subcontractors and those factors, risks and
uncertainties that are described in Item 1A "Risk Factors" of Great
Lakes' Annual Report on Form 10-K for the year ended December 31, 2011,
and in other securities filings by Great Lakes with the SEC.
Although Great Lakes believes that its plans, intentions and
expectations reflected in or suggested by such forward-looking
statements are reasonable, actual results could differ materially from a
projection or assumption in any forward-looking statements. Great Lakes'
future financial condition and results of operations, as well as any
forward-looking statements, are subject to change and inherent risks and
uncertainties. The forward-looking statements contained in this press
release are made only as of the date hereof and Great Lakes does not
have or undertake any obligation to update or revise any forward-looking
statements whether as a result of new information, subsequent events or
otherwise, unless otherwise required by law.
|
|
|
|
|
|
|
|
|
|
|
|
|
Great Lakes Dredge & Dock Corporation
|
Condensed Consolidated Statements of Operations
|
(Unaudited and in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACT REVENUES
|
|
$
|
207,086
|
|
|
$
|
158,568
|
|
|
$
|
687,584
|
|
|
$
|
627,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
21,851
|
|
|
|
18,418
|
|
|
|
68,399
|
|
|
|
93,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL AND ADMINISTRATIVE EXPENSES
|
|
|
17,069
|
|
|
|
11,987
|
|
|
|
53,459
|
|
|
|
50,434
|
|
GAIN ON SALE OF ASSETS—Net
|
|
|
(333
|
)
|
|
|
(8,809
|
)
|
|
|
(565
|
)
|
|
|
(11,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
5,115
|
|
|
|
15,240
|
|
|
|
15,505
|
|
|
|
54,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense—net
|
|
|
(5,175
|
)
|
|
|
(5,233
|
)
|
|
|
(20,922
|
)
|
|
|
(21,665
|
)
|
Equity in earnings (loss) of joint ventures
|
|
|
(29
|
)
|
|
|
(298
|
)
|
|
|
124
|
|
|
|
(406
|
)
|
Loss on foreign currency transactions—net
|
|
|
(63
|
)
|
|
|
262
|
|
|
|
(118
|
)
|
|
|
(282
|
)
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(5,145
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
(152
|
)
|
|
|
9,971
|
|
|
|
(5,411
|
)
|
|
|
26,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX (PROVISION) BENEFIT
|
|
|
35
|
|
|
|
(2,945
|
)
|
|
|
2,071
|
|
|
|
(9,545
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
|
(117
|
)
|
|
|
7,026
|
|
|
|
(3,340
|
)
|
|
|
17,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
419
|
|
|
|
(198
|
)
|
|
|
645
|
|
|
|
(723
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS OF GREAT LAKES
DREDGE & DOCK CORPORATION
|
|
$
|
302
|
|
|
$
|
6,828
|
|
|
$
|
(2,695
|
)
|
|
$
|
16,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share attributable to Great Lakes Dredge &
Dock Corporation |
|
$
|
0.01
|
|
|
$
|
0.12
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.28
|
|
Basic weighted average shares
|
|
|
59,316
|
|
|
|
58,973
|
|
|
|
59,195
|
|
|
|
58,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share attributable to Great Lakes Dredge
& Dock Corporation |
|
$
|
0.01
|
|
|
$
|
0.12
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.28
|
|
Diluted weighted average shares
|
|
|
59,851
|
|
|
|
59,236
|
|
|
|
59,195
|
|
|
|
59,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Great Lakes Dredge & Dock Corporation
|
Reconciliation of Net Income attributable to Great Lakes Dredge &
Dock Corporation to Adjusted EBITDA
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Great Lakes Dredge & Dock
Corporation |
|
$
|
302
|
|
|
$
|
6,828
|
|
$
|
(2,695
|
)
|
|
$
|
16,528
|
Adjusted for:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated maintenance expenses
|
|
|
2,474
|
|
|
|
-
|
|
|
4,672
|
|
|
|
-
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
5,145
|
Interest expense—net
|
|
|
5,175
|
|
|
|
5,233
|
|
|
20,922
|
|
|
|
21,665
|
Income tax provision (benefit)
|
|
|
(35
|
)
|
|
|
2,945
|
|
|
(2,071
|
)
|
|
|
9,545
|
Depreciation and amortization
|
|
|
13,397
|
|
|
|
10,839
|
|
|
40,034
|
|
|
|
40,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
21,313
|
|
|
$
|
25,845
|
|
$
|
60,862
|
|
|
$
|
93,721
|
|
|
|
|
|
|
|
Great Lakes Dredge & Dock Corporation
|
Selected Balance Sheet Information
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
Period Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
24,440
|
|
$
|
113,288
|
Total current assets
|
|
|
313,690
|
|
|
325,778
|
Total assets
|
|
|
826,395
|
|
|
788,460
|
Total short-term debt
|
|
|
13,098
|
|
|
3,033
|
Total current liabilities
|
|
|
185,950
|
|
|
130,526
|
Long-term debt
|
|
|
250,000
|
|
|
252,558
|
Total equity
|
|
|
273,425
|
|
|
292,537
|
|
|
|
|
|
|
|
|
|
|
|
|
Great Lakes Dredge & Dock Corporation
|
Revenue and Backlog Data
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
|
December 31,
|
Revenues (in thousands)
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
Dredging:
|
|
|
|
|
|
|
|
|
|
|
|
Capital - U.S.
|
$
|
57,770
|
|
$
|
25,964
|
|
$
|
175,317
|
|
$
|
156,251
|
Capital - foreign
|
|
37,040
|
|
|
17,453
|
|
|
112,242
|
|
|
77,232
|
Coastal protection
|
|
34,297
|
|
|
47,217
|
|
|
126,873
|
|
|
135,164
|
Maintenance
|
|
51,251
|
|
|
23,491
|
|
|
136,550
|
|
|
116,016
|
Rivers & lakes
|
|
10,072
|
|
|
9,736
|
|
|
35,873
|
|
|
35,471
|
Total dredging revenues
|
|
190,430
|
|
|
123,861
|
|
|
586,855
|
|
|
520,134
|
Demolition
|
|
16,656
|
|
|
34,707
|
|
|
100,729
|
|
|
107,199
|
Total revenues
|
$
|
207,086
|
|
$
|
158,568
|
|
$
|
687,584
|
|
$
|
627,333
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Dredging contract revenues for the year ended December 31,
2012 are net of $1,374 in intersegment revenues. Demolition contract
revenues for the year ended December 31, 2012 are net of $75 in
intersegment revenues.
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
Backlog (in thousands)
|
2012
|
|
2011
|
|
|
|
|
|
Dredging:
|
|
|
|
|
|
|
|
|
|
|
|
Capital - U.S.
|
$
|
43,177
|
|
$
|
109,897
|
|
|
|
|
|
|
Capital - foreign
|
|
218,953
|
|
|
78,379
|
|
|
|
|
|
|
Coastal protection
|
|
80,245
|
|
|
84,607
|
|
|
|
|
|
|
Maintenance
|
|
22,406
|
|
|
31,293
|
|
|
|
|
|
|
Rivers & lakes
|
|
24,510
|
|
|
15,256
|
|
|
|
|
|
|
Total dredging backlog
|
|
389,291
|
|
|
319,432
|
|
|
|
|
|
|
Demolition
|
|
60,148
|
|
|
50,672
|
|
|
|
|
|
|
Total backlog
|
$
|
449,439
|
|
$
|
370,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: December 31, 2012 demolition backlog includes $7,700 of
backlog acquired by the Company on December 31, 2012 in connection
with the Terra acquisition.
|

Great Lakes Dredge & Dock Corporation
Katie Hayes,
Investor Relations
630-574-3012
Source: Great Lakes Dredge & Dock Corporation
News Provided by Acquire Media