First quarter internet revenue of $11.1 million
First quarter adjusted EBITDA of $29.7 million
Backlog of $473.5 million at March 31, 2022
HOUSTON, Might 03, 2022 (GLOBE NEWSWIRE) — Nice Lakes Dredge & Dock Company (“Nice Lakes” or the “Firm”) (Nasdaq:GLDD), the biggest supplier of dredging providers in america, immediately reported monetary outcomes for the quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Income was $194.3 million within the first quarter
- Complete working revenue was $18.8 million within the first quarter
- Web revenue was $11.1 million within the first quarter
- Adjusted EBITDA was $29.7 million within the first quarter
Administration Commentary
Lasse Petterson, President and Chief Govt Officer commented, “Though we reported strong ends in the primary quarter of 2022, we didn’t totally meet our expectations as we skilled delays from irregular climate occasions, manufacturing impacts, and a few lingering prices from the COVID-19 pandemic that diminished because the quarter progressed.
As beforehand mentioned on our final earnings name, two bomb cyclones introduced heavy snow and coastal flooding to the Northeastern United States in January and robust sustained winds impacted a number of tasks within the Southeastern United States pushing manufacturing into later quarters. Local weather change continues to impression our nation, and our coasts proceed to see injury that could be a results of extreme storms and rising waters. Though these climate occasions have quick time period impacts to our operations, we anticipate the ensuing injury so as to add to the recurring nature and elevated long run demand for dredging associated tasks.
Along with the bizarre climate impacts, the Liberty Island was in scheduled dry dock your entire first quarter and two of our cutter dredges had been partially idle through the quarter because of venture begin delays.
In April, after the quarter shut, Empire Offshore Wind, a three way partnership between Equinor and BP p.l.c., awarded to Nice Lakes, in consortium with Van Oord, a contract to carry out the offshore subsea rock set up work for the Empire Wind I and II wind farms off the east coast of america. This venture is estimated to offer over 2 gigawatts (“GW”) of renewable vitality for the State of New York. The renewable energy generated by the 2 wind farms is predicted to energy multiple million households in New York. This venture is taken into account a flagship offshore wind growth, shaping the way forward for this trade in america.
This award is important for our entry into this new market. The offshore subsea rock set up will begin in 2025 and this award will present a strong basis as we construct the backlog for our new subsea rock set up vessel from 2025 and onwards. Nice Lakes shall be producing native content material, employment, and financial exercise within the State of New York by buying rock from home New York quarries, and utilizing its marine logistics base in Staten Island for its website operations.”
Quarterly Outcomes
- Income was $194.3 million, a rise of $16.7 million from the primary quarter of 2021. The upper income within the first quarter of 2022 was because of greater home capital and coastal safety income, offset partially by a lower in income from upkeep dredging, rivers and lakes and international tasks.
- Gross margin proportion declined to 17.0% within the first quarter of 2022 from 18.6% within the first quarter of 2021. The Dredge 54 accomplished her drydock on the finish of the primary quarter and has returned to work within the second quarter. The Liberty Island remained in drydock all through the primary quarter and is predicted to return to work in the course of the second quarter. The cutter dredge Carolina went into the shipyard for emission upgrades and is predicted to return to work in June. As famous above, we have now skilled climate delays and several other manufacturing points which have impacted a number of tasks.
- Working revenue was $18.8 million, which is a $2.2 million enhance from the prior 12 months quarter. The rise is a results of $1.7 million decrease common and administrative bills than the prior 12 months quarter. The lower normally and administrative bills for the quarter was because of decrease share-based compensation and Houston relocation bills.
- Web revenue for the quarter was $11.1 million in comparison with $8.8 million within the prior 12 months quarter. The rise is pushed by greater working revenue and decrease curiosity expense, offset partially by greater revenue tax expense.
- At March 31, 2022, the Firm had $142.6 million in money and complete long-term debt of $321.1 million.
- At March 31, 2022, the Firm had $473.5 million in backlog, a lower of $78.1 million from December 31, 2021. This lower was anticipated as bidding exercise is traditionally low within the first quarter of the 12 months.
- Capital expenditures for the primary quarter of 2022 had been $25.6 million, which incorporates $8.7 million for our new hopper dredge, $3.9 million for our new scows and multicats, and $0.2 million for our rock set up vessel.
Market Replace
On the finish of 2021 the home dredging bid market reached $1.8 billion in tasks bid. We anticipate the 2022 bid market to be as robust as 2021 because the market continues to be pushed by the large-scale port deepening tasks alongside the east and gulf coasts. We ended the quarter with a 50% bid market share, consisting of a number of coastal safety tasks that can added to our complete backlog. In 2022, we anticipate to see the continuation of port deepening bids within the ports of Norfolk, Freeport, Cell, Sabine and extra phases within the Houston Ship Channel. As well as, our nation’s coasts are topic to local weather change, rising extreme climate occasions like Hurricane Ida, and sea degree rise, which may trigger a rise in seashore erosion and different injury that provides to the recurring nature of our enterprise and the necessity for extra frequent coastal safety and port upkeep tasks.
We proceed to see robust assist from the Biden Administration for the dredging trade. On March 15, 2022, the Omnibus Appropriations Invoice for fiscal 12 months 2022 was signed into regulation, which included funding for the U.S. Military Corps of Engineers totaling $8.3 billion for fiscal 12 months 2022. This is a rise of $548 million above the fiscal 12 months 2021 degree and a rise of $1.6 billion above the President’s unique price range request. Appropriations included $4.57 billion for Operation & Upkeep, $2.49 billion for the Harbor Upkeep Belief Fund in accordance with the Coronavirus Help, Reduction and Financial Safety Act and the Water Useful resource Improvement Act, and $35 million for the Flood Management and Coastal Emergencies account together with $19.8 million for the development of shore safety tasks.
This previous 12 months we have now seen robust assist for offshore wind from the Biden Administration to confront local weather change. We consider the Biden Administration’s dedication to offshore wind will create 1000’s of jobs, and assist our nation transition to a cleaner, extra numerous vitality future. In March 2021, the White Home introduced new initiatives that can advance the Administration’s targets to broaden the nation’s offshore wind vitality capability within the coming decade by opening new areas of growth, bettering environmental allowing, and rising public financing for tasks. As a part of that initiative the Departments of the Inside, Vitality and Commerce dedicated to a shared purpose of putting in 30 GW of offshore wind energy era capability in United States waters by 2030. As well as, in January 2022 the Biden Administration introduced plans to public sale greater than 480,000 acres within the New York Bight for six new offshore wind vitality leases, the Biden Administration’s first wind sale and the biggest lease space ever supplied, with potential build-out capability as much as 7 GW.
The Firm shall be holding a convention name at 9:00 a.m. C.D.T. immediately the place we’ll additional focus on these outcomes. Info on this convention name may be discovered under.
Convention Name Info
The Firm will conduct a quarterly convention name, which shall be held on Tuesday, Might 3, 2022 at 9:00 a.m. C.S.T. (10:00 a.m. E.S.T.). The decision-in quantity is (877) 377-7553 and Convention ID is 1383479. The convention name shall be accessible by replay till Thursday, Might 5, 2022 by calling (855) 859-2056 and offering Convention ID 1383479. The reside name and replay will also be heard on the Firm’s web site, www.gldd.com, underneath Occasions & Displays on the investor relations web page. Info associated to the convention name will even be accessible on the investor relations web page of the Firm’s web site.
Use of Non-GAAP measures
Adjusted EBITDA, as offered herein, represents internet revenue (loss) from continued operations, adjusted for internet curiosity expense, revenue taxes, depreciation and amortization expense, debt extinguishment, accelerated upkeep expense for brand new worldwide deployments, goodwill or asset impairments and features on cut price buy acquisitions. Adjusted EBITDA is just not a measure derived in accordance with GAAP. The Firm presents Adjusted EBITDA as an extra measure by which to judge the Firm’s working traits. The Firm believes that Adjusted EBITDA is a measure steadily used to judge efficiency of firms with substantial leverage and that the Firm’s main stakeholders (i.e., its stockholders, bondholders and banks) use Adjusted EBITDA to judge the Firm’s interval to interval efficiency. Moreover, administration believes that Adjusted EBITDA offers a clear measure of the Firm’s recurring working efficiency and permits administration and buyers to readily view working traits, carry out analytical comparisons and establish methods to enhance working efficiency. Because of this, the Firm makes use of a measure based mostly upon Adjusted EBITDA to evaluate efficiency for functions of figuring out compensation underneath the Firm’s incentive plan. Adjusted EBITDA shouldn’t be thought-about an alternative choice to, or extra significant than, quantities decided in accordance with GAAP together with: (a) working revenue as an indicator of working efficiency; or (b) money flows from operations as a measure of liquidity. As such, the Firm’s use of Adjusted EBITDA, as a substitute of a GAAP measure, has limitations as an analytical software, together with the shortcoming to find out profitability or liquidity because of the exclusion of accelerated upkeep expense for brand new worldwide deployments, goodwill or asset impairments, features on cut price buy acquisitions, curiosity and revenue tax expense and the related vital money necessities and the exclusion of depreciation and amortization, which signify vital and unavoidable working prices given the extent of indebtedness and capital expenditures wanted to take care of the Firm’s enterprise. For these causes, the Firm makes use of working revenue to measure the Firm’s working efficiency and makes use of Adjusted EBITDA solely as a complement. Adjusted EBITDA is reconciled to internet revenue attributable to widespread stockholders of Nice Lakes Dredge & Dock Company within the desk of monetary outcomes. For additional rationalization, please seek advice from the Firm’s SEC filings.
The Firm
Nice Lakes Dredge & Dock Company is the biggest supplier of dredging providers in america. As well as, Nice Lakes is totally engaged in increasing its core enterprise into the quickly growing offshore wind vitality trade. The Firm has a protracted historical past of performing vital worldwide tasks. The Firm employs skilled civil, ocean and mechanical engineering employees in its estimating, manufacturing and venture administration capabilities. In its over 132-year historical past, the Firm has by no means failed to finish a marine venture. Nice Lakes owns and operates the biggest and most numerous fleet within the U.S. dredging trade, comprised of roughly 200 specialised vessels. Nice Lakes has a disciplined coaching program for engineers that ensures experienced-based efficiency as they advance by way of Firm operations. The Firm’s Incident-and Harm-Free® (IIF®) security administration program is built-in into all points of the Firm’s tradition. The Firm’s dedication to the IIF® tradition promotes a piece atmosphere the place worker security is paramount.
Cautionary Be aware Concerning Ahead-Trying Statements
Sure statements on this press launch might represent “forward-looking” statements as outlined in Part 21E of the Securities Trade Act of 1934 (the “Trade Act”), the Personal Securities Litigation Reform Act of 1995 (the “PSLRA”) or in releases made by the Securities and Trade Fee (the “SEC”), all as could also be amended once in a while. Such forward-looking statements contain recognized and unknown dangers, uncertainties and different essential elements that might trigger the precise outcomes, efficiency or achievements of Nice Lakes and its subsidiaries, or trade outcomes, to vary materially from any future outcomes, efficiency or achievements expressed or implied by such forward-looking statements. Statements that aren’t historic reality are forward-looking statements. Ahead-looking statements may be recognized by, amongst different issues, using forward-looking language, such because the phrases “plan,” “consider,” “anticipate,” “anticipate,” “intend,” “estimate,” “venture,” “might,” “would,” “might,” “ought to,” “seeks,” “are optimistic,” or “scheduled to,” or different comparable phrases, or the destructive of those phrases or different variations of those phrases or comparable language, or by dialogue of technique or intentions. These cautionary statements are being made pursuant to the Trade Act and the PSLRA with the intention of acquiring the advantages of the “protected harbor” provisions of such legal guidelines. Nice Lakes cautions buyers that any forward-looking statements made by Nice Lakes should not ensures or indicative of future efficiency. Vital assumptions and different essential elements that might trigger precise outcomes to vary materially from these forward-looking statements with respect to Nice Lakes embody, however should not restricted to: the impression of the COVID-19 pandemic and associated responsive measures, together with productiveness impacts and elevated expenditures; our capability to acquire and retain federal authorities dredging and different contracts, which is impacted by the quantity of presidency funding for dredging and different tasks and the diploma to which authorities funding is directed to the Corps and sure different clients, which in flip could possibly be impacted by prolonged federal authorities shutdowns or declarations of extra nationwide emergencies; our capability to qualify as an eligible bidder underneath authorities contract standards and to compete efficiently in opposition to different certified bidders so as to acquire authorities dredging and different contracts; price over-runs, working price inflation and potential claims for liquidated damages, significantly with respect to our fastened price contracts; the timing of our efficiency on contracts and new contracts being awarded to us; vital liabilities that could possibly be imposed had been we to fail to adjust to authorities contracting rules; rising prices to function and keep getting old vessels and adjust to relevant rules or requirements; rising prices of fleet enhancements to stay aggressive; tools or mechanical failures; impacts to our services and suppliers from pandemics, epidemics or outbreaks of infectious illness affecting our markets; market or provide chain disruptions on account of warfare or rebellion; impacts to our provide chain for procurement of recent vessel construct supplies: our worldwide dredging operations; instability and declining relationships amongst sure governments within the Center East and the impression this will likely have on infrastructure funding, asset worth of such operations, and native licensing, allowing and royalty points; capital and operational prices because of environmental rules or excessive climate occasions; market and regulatory responses to local weather change; contract penalties for any tasks which can be accomplished late; power majeure occasions, together with pure disasters, pandemics and terrorists’ actions; modifications within the quantity of our estimated backlog; vital destructive modifications to giant, single buyer contracts; our capability to acquire potential financing for the development of recent vessels, together with our new offshore wind vessel; potential incapability to safe contracts to make the most of new offshore wind vessel; unexpected delays and price overruns associated to the development of recent vessels, together with potential mechanical and engineering points and unexpected modifications in environmental rules; any failure to adjust to Part 27 of the Jones Act provisions on coastwise commerce, or if these provisions had been modified or repealed; fluctuations in gasoline costs, significantly given our dependence on petroleum-based merchandise; impacts of nationwide inflation on procurement of recent construct supplies; our capability to acquire bonding or letters of credit score and dangers related to attracts by the surety on excellent bonds or calls by the beneficiary on excellent letters of credit score; acquisition integration and consolidation, together with transaction bills, sudden liabilities and operational challenges and dangers; divestitures and discontinued operations, together with retained liabilities from companies that we promote or discontinue; potential penalties and reputational injury on account of authorized and regulatory proceedings, together with a pending felony continuing in Louisiana; any liabilities imposed on us for the obligations of joint ventures, companions and subcontractors; elevated prices of sure materials utilized in our operations because of newly imposed tariffs; unionized labor power work stoppages; any liabilities for job-related claims underneath federal regulation, which doesn’t present for the legal responsibility limitations sometimes current underneath state regulation; operational hazards, together with any liabilities or losses relating to non-public or property injury ensuing from our operations; our capability to establish and contract with certified MBE or DBE contractors to carry out as subcontractors; our substantial quantity of indebtedness, which makes us extra susceptible to hostile financial and aggressive circumstances; restrictions on the operation of our enterprise imposed by financing covenants; impacts of hostile capital and credit score market circumstances on our capability to fulfill liquidity wants and entry capital; our capability to take care of or broaden our credit score capability; limitations on our hedging technique imposed by statutory and regulatory necessities for spinoff transactions; international change dangers, specifically, because it pertains to the brand new offshore wind vessel construct; losses attributable to our investments in privately financed tasks; restrictions on international possession of our widespread inventory; restrictions imposed by Delaware regulation and our constitution on takeover transactions that stockholders might take into account to be favorable; restrictions on our capability to declare dividends imposed by our financing agreements and Delaware regulation; vital fluctuations out there worth of our widespread inventory, which can make it troublesome for holders to resell our widespread inventory when they need or at costs that they discover enticing; modifications in earlier recorded internet income and revenue on account of the numerous estimates made in reference to our strategies of accounting for acknowledged income; sustaining an ample degree of insurance coverage protection; our capability to seek out, appeal to and retain key personnel and expert labor; disruptions, failures, knowledge corruptions, cyber-based assaults or safety breaches of the knowledge expertise programs on which we rely to conduct our enterprise; and impairments of our goodwill or different intangible belongings. For added info on these and different dangers and uncertainties, please see Merchandise 1A. “Threat Elements” of Nice Lakes’ Annual Report on Kind 10-Okay for the 12 months ended December 31, 2021.
Though Nice Lakes believes that its plans, intentions and expectations mirrored in or steered by such forward-looking statements are affordable, precise outcomes might differ materially from a projection or assumption in any forward-looking statements. Nice Lakes’ future monetary situation and outcomes of operations, in addition to any forward-looking statements, are topic to vary and inherent dangers and uncertainties. The forward-looking statements contained on this press launch are made solely as of the date hereof and Nice Lakes doesn’t have or undertake any obligation to replace or revise any forward-looking statements whether or not on account of new info, subsequent occasions or in any other case, until in any other case required by regulation.
| Nice Lakes Dredge & Dock Company | |||||||
| Condensed Consolidated Statements of Operations | |||||||
| (Unaudited and in 1000’s, besides per share quantities) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Contract revenues | $ | 194,349 | $ | 177,633 | |||
| Gross revenue | 33,055 | 33,076 | |||||
| Normal and administrative bills | 14,604 | 16,322 | |||||
| (Acquire) loss on sale of belongings—internet | (321 | ) | 106 | ||||
| Working revenue | 18,772 | 16,648 | |||||
| Curiosity expense—internet | (4,025 | ) | (6,586 | ) | |||
| Different revenue (expense) | (405 | ) | 141 | ||||
| Revenue earlier than revenue taxes | 14,342 | 10,203 | |||||
| Revenue tax provision | (3,285 | ) | (1,389 | ) | |||
| Web revenue | $ | 11,057 | $ | 8,814 | |||
| Fundamental earnings per share | $ | 0.17 | $ | 0.14 | |||
| Fundamental weighted common shares | 65,847 | 65,269 | |||||
| Diluted earnings per share | $ | 0.17 | $ | 0.13 | |||
| Diluted weighted common shares | 66,436 | 66,159 | |||||
| Nice Lakes Dredge & Dock Company | |||||||
| Reconciliation of Web Revenue to Adjusted EBITDA | |||||||
| (Unaudited and in 1000’s) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Revenue | $ | 11,057 | $ | 8,814 | |||
| Adjusted for: | |||||||
| Curiosity expense—internet | 4,025 | 6,586 | |||||
| Revenue tax provision | 3,285 | 1,389 | |||||
| Depreciation and amortization | 11,316 | 10,053 | |||||
| Adjusted EBITDA | $ | 29,683 | $ | 26,842 | |||
| Nice Lakes Dredge & Dock Company | |||||||
| Chosen Steadiness Sheet Info | |||||||
| (Unaudited and in 1000’s) | |||||||
| Interval Ended | |||||||
| March 31, | December 31, | ||||||
| 2022 | 2021 | ||||||
| Money and money equivalents | $ | 142,583 | $ | 145,459 | |||
| Complete present belongings | 328,042 | 327,432 | |||||
| Complete belongings | 1,018,839 | 997,670 | |||||
| Complete present liabilities | 151,854 | 154,735 | |||||
| Lengthy-term debt | 321,108 | 320,971 | |||||
| Complete fairness | 415,404 | 398,997 | |||||
| Nice Lakes Dredge & Dock Company | |||||||
| Income and Backlog Information | |||||||
| (Unaudited and in 1000’s) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| Revenues | 2022 | 2021 | |||||
| Dredging: | |||||||
| Capital – U.S. | $ | 101,010 | $ | 77,606 | |||
| Capital – international | – | 4,709 | |||||
| Coastal safety | 71,917 | 46,631 | |||||
| Upkeep | 19,812 | 45,301 | |||||
| Rivers & lakes | 1,610 | 3,386 | |||||
| Complete revenues | $ | 194,349 | $ | 177,633 | |||
| As of | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| Backlog | 2022 | 2021 | 2021 | ||||||||
| Dredging: | |||||||||||
| Capital – U.S. | $ | 320,352 | $ | 398,748 | $ | 310,163 | |||||
| Capital – international | – | – | $ | 2,077 | |||||||
| Coastal safety | 120,457 | 99,048 | $ | 82,589 | |||||||
| Upkeep | 31,451 | 50,966 | $ | 84,820 | |||||||
| Rivers & lakes | 1,211 | 2,826 | $ | 6,334 | |||||||
| Complete backlog | $ | 473,471 | $ | 551,588 | $ | 485,983 | |||||
For additional info contact:
Tina Baginskis
Director, Investor Relations
630-574-3024
