Wednesday, May 03, 2023
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q23. Revenue came in at $158.0 million down from $194.3 million last year, but above our $148 million projection. Gross margin was 7.7%, down from 17% in the year ago period. Adjusted EBITDA for the quarter was $10.2 million versus $29.7 million last year. The Company reported a loss of $3.2 million, or a loss of $0.05 per share for the quarter, compared to last year’s net income of $11.1 million, or $0.17 per diluted share. We had projected a net loss of $14.5 million, or a loss of $0.22 per share.
Backlog. Great Lakes ended the quarter with $327.1 million of dredging backlog, which does not include approximately $50.0 million of performance obligations related to offshore wind contracts. In addition, the Company ended the quarter with $516.9 million in low bids and options pending award. The Company’s awarded work during the quarter represented 31.7% of the first quarter bid market. Not included in the first quarter backlog is the Freeport Capital Port Deepening project, on which Great Lakes was the low bidder in April for approximately $160 million, which is the third largest domestic capital project Great Lakes has won in its history.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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