NASDAQ$GLDD

Great Lakes Dredge & Dock Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported solid project performance, resulting in strong increases in income from continuing operations and adjusted EBITDA from continuing operations compared to the prior year.

Great Lakes Dredge & Dock Corporation reported a strong third quarter with solid project performance, leading to increased income from continuing operations and adjusted EBITDA. The company was awarded $466 million in projects, resulting in a backlog of $661.3 million. They are also relocating their headquarters to Houston, Texas.

  • Third quarter income from continuing operations was $12.5 million.
  • Third quarter adjusted EBITDA from continuing operations was $32.2 million.
  • Backlog reached $661.3 million at the end of the third quarter.
  • Cash position was $229.7 million at the end of the third quarter.

Headline financials

Total Revenue

$176M

Previous: $170M+3.6%
EPS (adj)

$0.17

Previous: $0.14+21.4%
Total Backlog

$661M

No prior period
Capital Expenditures

-$30.1M

Previous: -$37.6M+19.9%
Free Cash Flow

$45.9M

Previous: $136M-66.2%
Net Income

$12.5M

Previous: $7.95M+57.8%
Operating Income

$23.2M

Previous: $18.4M+26.2%
Gross Profit

$36.4M

Previous: $31.8M+14.2%
Cash & Equivalents

$230M

Previous: $181M+27.0%
Total Assets

$954M

Previous: $893M+6.9%
Stock-Based Comp

$1.76M

Previous: $1.62M+9.0%

Revenue & EPS history

Great Lakes · Revenue · Quarterly

$176M

Q3 2020+3.6%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Great Lakes remains confident in its 2020 outlook and looks forward to the changes and opportunities that lie ahead. The company recognizes the need to actively investigate safety and operational contingency plans to respond to potential changes in the evolving COVID-19 pandemic, storm season, and economic environment.

Tailwinds

  • The company ended the third quarter with a strong net cash position, balance sheet, and substantial liquidity.
  • The Board of Directors authorized a share repurchase program in August, demonstrating confidence in the future and commitment to delivering value to shareholders.
  • The relocation of corporate offices to Houston, Texas will put the company closer to key regional customers and new markets.
  • New regional offices were opened in Jacksonville, Florida and Staten Island, New York to further support the strategic vision and engage more effectively with customers.
  • Support for the dredging industry is evident in the Coronavirus Aid, Relief and Economic Security Act and the 2021 House Appropriations Bill.

Headwinds

  • Some projects have been impacted by the COVID-19 outbreak.
  • A strong hurricane and storm season began in the third quarter and has extended into the fourth quarter.
  • The U.S. Army Corps of Engineers is working under temporary funding, called a Continuing Resolution, which may have minimal impacts on the marketplace.
  • The Water Resource Development Act bill is pending until after the election.
  • The company must continue to actively investigate safety and operational contingency plans to be able to respond to potential changes to the evolving COVID-19 pandemic, storm season and economic environment.

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 Q3 2020

Historical avgQ3 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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