NASDAQ$GLDD

Great Lakes Dredge & Dock Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Great Lakes's financial results in the second quarter of 2020 were lower than prior year, but the company had an active and solid first half of the year.

Great Lakes Dredge & Dock Corporation reported second quarter results with income from continuing operations of $9.0 million and an adjusted EBITDA from continuing operations of $28.1 million. The company ended the quarter with a cash position of $233.5 million.

  • Second quarter income from continuing operations was $9.0 million.
  • Second quarter adjusted EBITDA from continuing operations was $28.1 million.
  • Cash position was $233.5 million at June 30, 2020.
  • The domestic bid market was greater than the prior year with $428.6 million in total project bids.

Headline financials

Total Revenue

$168M

Previous: $185M-9.1%
EPS (adj)

$0.14

Previous: $0.18-22.2%
Capital Expenditures

-$21.1M

Previous: -$24.3M+13.3%
Free Cash Flow

$46.4M

Previous: $81.7M-43.2%
Net Income

$8.96M

Previous: $8.25M+8.7%
Operating Income

$18.3M

Previous: $22.8M-19.9%
Gross Profit

$33M

Previous: $37.5M-11.9%
Cash & Equivalents

$234M

Previous: $126M+86.0%
Total Assets

$948M

Previous: $869M+9.1%
Stock-Based Comp

$1.46M

Previous: $1.62M-10.1%

Revenue & EPS history

Great Lakes · Revenue · Quarterly

$168M

Q2 2020-9.1%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Great Lakes remains confident in its 2020 outlook and continues to actively investigate safety and operational contingency plans to be able to respond to potential changes to the evolving pandemic and economic environment.

Tailwinds

  • The U.S. Army Corps of Engineers is continuing to advertise new projects.
  • Support for the dredging industry in the CARES Act, which includes a provision that lifts caps on the Harbor Maintenance Trust Fund.
  • The 2021 House Appropriations Bill showed an increase of $1.7 billion above the President’s budget request for the U.S. Army Corps of Engineers.
  • Projects coming into the market pipeline include additional phases of Charleston, Jacksonville and Corpus Christi deepenings.
  • New deepenings for ports in Mobile, Alabama and the Sabine-Neches in Texas are planned.

Headwinds

  • The country is still facing the challenges of COVID-19.
  • Planned dry dockings of certain vessels had an expected impact on second quarter results.
  • The Company also pushed drydock days from the first quarter into the second quarter.
  • The effects of the drydocks were offset with better than anticipated productivity on certain projects.
  • Potential changes to the evolving pandemic and economic environment may impact results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+3.2%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+30.5%

Q1 2024

Best reaction

-24.5%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-0.1%+0.5%+0.6%
Q3 2025+12.1%+7.6%+13.1%
Q2 2025+7.9%+8.9%+9.8%
Q1 2025+5.0%+12.2%+20.8%
Q4 2024-18.4%-23.5%-15.2%
Q3 2024+7.3%+9.3%+9.3%
Q2 2024+5.9%+7.8%+13.2%
Q1 2024+30.5%+28.8%+30.7%
Q4 2023+18.2%+14.4%+6.7%
Q3 2023-16.7%-15.5%-6.8%
Q2 2023+7.6%+3.5%+5.1%
Q1 2023+1.0%-1.4%+19.0%
Q4 2022-9.1%-5.9%-28.4%
Q3 2022-6.1%-10.2%-5.3%
Q2 2022-24.5%-24.4%-26.6%
Q1 2022+7.5%+2.3%+7.3%
Q4 2021+6.4%+3.1%+5.1%
Q3 2021-2.7%-1.2%-2.9%
Q2 2021-5.1%-4.0%+2.8%
Q1 2021-11.8%-12.2%-7.9%
Q4 2020-5.8%-1.9%-9.0%
Q3 2020+0.1%+2.5%+10.6%
Q2 2020+10.6%+11.2%+6.8%
Q1 2020+6.2%+3.8%+17.3%
Q4 2019+3.2%+3.5%-19.4%
Q3 2019-7.8%-9.4%+5.2%
Q2 2019+1.9%-4.9%+3.0%
Q1 2019+13.1%+19.7%+14.7%
Q4 2018+7.1%+9.9%+20.1%
Q3 2018+22.0%+23.5%+20.4%
Q2 2018-1.9%+0.9%+1.5%
Q1 2018+8.9%+13.3%+15.6%
Q4 2017-0.5%-1.1%-2.2%
Q3 2017-9.7%-7.8%-1.0%
Q2 2017-7.5%-5.0%+1.3%
Q1 2017-3.2%-3.2%-8.5%
Q4 2016-6.2%-8.2%-11.3%
Q3 2016-12.0%-9.9%+21.1%
Q2 2016-14.4%-12.2%-11.0%
Q1 2016-2.6%
Q4 2015-3.4%
Q3 2015-4.0%
Q2 2015+12.0%
Q1 2015-4.3%
Q4 2014-13.2%
Q3 2014+0.4%
Q2 2014+0.8%
Q1 2014-11.5%
Q4 2013+2.3%
Q3 2013+3.0%
Q2 2013-5.9%
Q1 2013+12.2%
Q4 2012-13.9%
Q3 2012+0.4%
Q2 2012+1.9%
Q1 2011+0.6%
Q1 2012-4.6%
Q4 2009-0.6%
Q4 2011-0.6%
Q3 2011-2.7%
Q3 2010-2.7%
Q2 2010-14.3%
Q4 2010-14.3%
Q2 2011-14.3%
Q1 2010+6.7%

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