Great Lakes Dredge & Dock CORP [GLDD] Filings

10-Q 1 gldd-20220930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-33225

Great Lakes Dredge & Dock Corporation

(Exact name of registrant as specified in its charter)


Delaware		20-5336063
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

9811 Katy Freeway, Suite 1200, Houston, TX		77024
(Address of principal executive offices)		(Zip Code)

(346) 359-1010

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (Par Value $0.0001)	GLDD	Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 28, 2022, 66,169,959 shares of the Registrant’s Common Stock, par value $.0001 per share, were outstanding.

Great Lakes Dredge & Dock Corporation and Subsidiaries

Quarterly Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

For the Quarterly Period ended September 30, 2022

INDEX


		Page

	Part I Financial Information (Unaudited)	3

Item 1	Financial Statements	3

	Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021	3

	Condensed Consolidated Statements of Operations for the Three and Nine Months ended September 30, 2022 and 2021	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months ended September 30, 2022 and 2021	5

	Condensed Consolidated Statements of Equity for the Three and Nine Months ended September 30, 2022 and 2021	6

	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4	Controls and Procedures	25

	Part II Other Information	26

Item 1	Legal Proceedings	26

Item 1A	Risk Factors	26

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3	Defaults Upon Senior Securities	26

Item 4	Mine Safety Disclosures	26

Item 5	Other Information	26

Item 6	Exhibits	27

	Signature	28

PART I — Financial Information

Item 1. Financial Statements.

GREAT LAKES DREDGE & DOCK CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share amounts)


	September 30,			December 31,
	2022			2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	38,833		$	145,459
Accounts receivable—net		68,670			82,953
Contract revenues in excess of billings		61,638			39,844
Inventories		27,302			30,760
Prepaid expenses and other current assets		36,336			28,416
Total current assets		232,779			327,432

PROPERTY AND EQUIPMENT—Net		517,839			455,102
OPERATING LEASE ASSETS		86,158			62,233
GOODWILL		76,576			76,576
INVENTORIES—Noncurrent		82,149			65,049
OTHER		8,019			11,278
TOTAL	$	1,003,520		$	997,670

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	81,248		$	85,566
Accrued expenses		37,667			37,626
Operating lease liabilities		22,668			16,729
Billings in excess of contract revenues		5,451			14,814
Total current liabilities		147,034			154,735

LONG-TERM DEBT		321,383			320,971
OPERATING LEASE LIABILITIES—Noncurrent		64,316			45,986
DEFERRED INCOME TAXES		67,188			68,497
OTHER		6,693			8,484
Total liabilities		606,614			598,673

COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Common stock—$.0001 par value; 90,000 authorized, 66,167 and 65,746 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively.		6			6
Additional paid-in capital		310,640			308,482
Retained earnings		87,483			90,369
Accumulated other comprehensive income (loss)		(1,223	)		140
Total equity		396,906			398,997
TOTAL	$	1,003,520		$	997,670

See notes to unaudited condensed consolidated financial statements.

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021

Contract revenues	$	158,346		$	168,638		$	502,123		$	516,185
Costs of contract revenues		154,547			132,357			454,788			423,906
Gross profit		3,799			36,281			47,335			92,279
General and administrative expenses		13,292			15,167			38,716			45,713
Gain on sale of assets—net		(40	)		(291	)		(358	)		(323	)
Operating income (loss)		(9,453	)		21,405			8,977			46,889
Interest expense—net		(3,551	)		(4,214	)		(11,000	)		(17,457	)
Other income (expense)		(253	)		(204	)		(1,778	)		692
Income (loss) before income taxes		(13,257	)		16,987			(3,801	)		30,124
Income tax (provision) benefit		3,347			(3,181	)		915			(5,399	)
Net income (loss)	$	(9,910	)	$	13,806		$	(2,886	)	$	24,725

Basic earnings (loss) per share	$	(0.15	)	$	0.21		$	(0.04	)	$	0.38
Basic weighted average shares		66,111			65,691			66,010			65,535

Diluted earnings (loss) per share	$	(0.15	)	$	0.21		$	(0.04	)	$	0.37
Diluted weighted average shares		66,111			66,311			66,010			66,246

See notes to unaudited condensed consolidated financial statements.

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2022			2021			2022			2021

Net income (loss)	$	(9,910	)	$	13,806		$	(2,886	)	$	24,725
Net change in cash flow derivative hedges—net of tax (1)		(7,222	)		(1,211	)		(1,363	)		1,079
Comprehensive income (loss)	$	(17,132	)	$	12,595		$	(4,249	)	$	25,804

(1)

Net of income tax benefit of $2,176 and $409 for the three months ended September 30, 2022 and 2021, respectively. Net of income tax (provision) benefit of $197 and $(364) for the nine months ended September 30, 2022 and 2021, respectively.

See notes to unaudited condensed consolidated financial statements.

Great Lakes Dredge & Dock Corporation and Subsidiaries

Condensed Consolidated Statements of Equity

(Unaudited)

(in thousands)


											Accumulated
	Shares of				Additional						Other
	Common		Common		Paid-In			Retained			Comprehensive
	Stock		Stock		Capital			Earnings			Income (Loss)			Total
BALANCE—January 1, 2022		65,746	$	6	$	308,482		$	90,369		$	140		$	398,997
Share-based compensation		30	—			2,837		—			—				2,837
Vesting of restricted stock units and impact of shares withheld for taxes		212	—			(1,827	)	—			—				(1,827	)
Exercise of options and purchases from employee stock plans		179	—			1,148		—			—				1,148
Net loss	—		—		—				(2,886	)	—				(2,886	)
Other comprehensive loss—net of tax	—		—		—			—				(1,363	)		(1,363	)
BALANCE—September 30, 2022		66,167	$	6	$	310,640		$	87,483		$	(1,223	)	$	396,906

BALANCE—January 1, 2021		65,023	$	6	$	304,757		$	40,937		$	968		$	346,668
Share-based compensation		131	—			3,772		—			—				3,772
Vesting of restricted stock units and impact of shares withheld for taxes		431	—			(3,785	)	—			—				(3,785	)
Exercise of options and purchases from employee stock plans		152	—			2,321		—			—				2,321
Net income	—		—		—				24,725		—				24,725
Other comprehensive income—net of tax	—		—		—			—				1,079			1,079
BALANCE—September 30, 2021		65,737	$	6	$	307,065		$	65,662		$	2,047		$	374,780


										Accumulated
	Shares of				Additional					Other
	Common		Common		Paid-In		Retained			Comprehensive
	Stock		Stock		Capital		Earnings			Income (Loss)			Total
BALANCE—June 30, 2022		66,083		6		308,790		97,393			5,999		$	412,188

Share-based compensation		14	—			1,285	—			—				1,285
Exercise of options and purchases from employee stock plans		70	—			565	—			—				565
Net loss	—		—		—			(9,910	)	—				(9,910	)
Other comprehensive loss—net of tax	—		—		—		—				(7,222	)		(7,222	)
BALANCE—September 30, 2022	$	66,167	$	6	$	310,640	$	87,483		$	(1,223	)	$	396,906

BALANCE—June 30, 2021		65,654	$	6	$	304,977	$	51,856		$	3,258		$	360,097

Share-based compensation		58	—			1,207	—			—				1,207
Vesting of restricted stock units and impact of shares withheld for taxes		21	—		—		—			—			—
Exercise of options and purchases from employee stock plans		4	—			881	—			—				881
Net income	—		—		—			13,806		—				13,806
Other comprehensive loss—net of tax	—

Great Lakes Dredge & Dock CORP [GLDD] Filings
10-Q	[2022-11-01]
10-Q	[2022-08-02]
10-Q	[2022-05-03]
10-K	[2022-02-23]
10-Q	[2021-11-02]
10-Q	[2021-08-03]
10-Q	[2021-05-04]
10-K	[2021-02-24]
10-Q	[2020-11-04]
10-Q	[2020-08-04]
10-Q	[2020-05-05]
10-K	[2020-02-26]
10-Q	[2019-11-05]
10-Q	[2019-08-02]
10-Q	[2019-05-03]
10-K	[2019-02-26]
10-Q	[2018-11-06]
10-Q	[2018-08-01]
10-Q	[2018-05-04]
10-K	[2018-03-01]
10-Q	[2017-11-07]
10-Q	[2017-08-03]
10-Q	[2017-05-03]
10-K	[2017-02-28]
10-Q	[2016-11-02]
10-Q	[2016-08-04]
10-Q	[2016-05-03]
10-K	[2016-02-29]
10-Q	[2015-11-04]
10-Q	[2015-08-04]
10-Q	[2015-05-06]
10-K	[2015-03-06]
10-Q	[2014-11-06]
10-Q	[2014-08-06]
10-Q	[2014-05-07]
10-K	[2014-03-11]
10-Q	[2013-11-05]
10-Q	[2013-08-09]
10-Q	[2013-05-08]
10-K	[2013-03-29]
10-Q	[2012-11-07]
10-Q	[2012-08-07]
10-Q	[2012-05-04]
10-K	[2012-03-09]