GREAT LAKES | |
MITIGATING THE EFFECT OF | DREDGE & DOCK |
CORPORATION | |
CLIMATE CHANGE | |
FORGING THE WAY | INVESTOR |
PRESENTATION | |
FOR SUSTAINABLE | |
ENERGY | May 2024 |
IT ALL STARTS WITH DREDGING®
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
SAFE HARBOR
Forward-Looking Statements
This presentation includes "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 or in releases made by the SEC, all as may be amended from time to time. Such statements include declarations regarding the intent, belief, or current expectations of the Company and its management. The Company cautions that any such forward-looking statements are not guarantees of future performance, and involve a number of risks, assumptions and uncertainties that could cause actual results of the Company and its subsidiaries, or industry results, to differ materially from those expressed or implied by any forward-looking statements contained herein, including, but not limited to, as a result of the factors, risks and uncertainties described in securities filings of the Company made with the SEC, including the Company's most recent Report on Form 10-K and Form 10-Q. You should not place undue reliance upon these forward-looking statements provided herein are made only as of the date
hereof or as a specified date herein and the Company does not have or undertake any obligation to update or revise them, unless required by law.
Non-GAAP Measures
This presentation includes certain non-GAAP measures, including Adjusted EBITDA from continuing operations, Pro Forma Adjusted EBITDA from continuing operations and operational results excluding restructuring. In addition to providing key metrics for management to evaluate the Company's performance, we believe these measurements assist investors in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measure are available in the Appendix. Investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP.
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
2
TABLE OF CONTENTS
COMPANY OVERVIEW
FINANCIAL OVERVIEW
APPENDIX
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
3
GLDD HIGHLIGHTS
Entered 2024 with record
backlog of $1.04 billion; 71% of
backlog in capital projects
First Quarter 2024 EBITDA of
$43 million, highest since the fourth quarter of 2021
Backlog remains strong with
ending first quarter 2024
backlog of $879.4 million with 77% of our backlog in capital
Great Lakes entered into $150 million second lien agreement providing flexibility and additional liquidity to complete new build program
New hopper dredge, the
Galveston Island, successfully placed in production in the first quarter of 2024
Great Lakes' contracts, Equinor's
Empire Wind I and Ørsted's Sunrise Wind awarded offtake agreements and are expected to make significant contributions to the state's clean energy goals
The Acadia, GLDD's
subsea rock installation
vessel marked the assembly portion of construction with her keel laying in May 2024
Record U.S. Army Corps of Engineers budget of $8.7 billion approved in the first quarter of 2024
OUTLOOK REMAINS POSITIVE
4
COMPANY OVERVIEW
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
5
ABOUT US SNAPSHOT
Great Lakes Dredge & Dock Corporation (GLDD) is the leading provider of dredging services in the United States. With a strong portfolio of major dredging projects, a strong safety record and our extensive experience, we specialize in projects that help improve and protect our nation's infrastructure and coastlines. GLDD is the only U.S. dredging service provider with a long history of performing significant international projects. In addition, we are the only dredging contractor entering into the emerging U.S. offshore wind market. Our diverse fleet of equipment includes hopper, mechanical and hydraulic dredges, and approximately 200 support vessels. GLDD is a publicly-traded company with corporate headquarters in Houston, Texas, regional business offices in Jacksonville and Staten Island, and marine yards in five U.S. locations.
- LEADING DREDGER IN THE UNITED STATES
- PORT DEEPENING, COASTAL PROTECTION & BARRIER ISLANDS & LAND RECLAMATION
- EXPANDING CORE BUSINESS INTO THE RAPIDLY DEVELOPING OFFSHORE WIND ENERGY INDUSTRY
- AN INCIDENT & INJURY-FREE® (IIF®) COMPANY
- MARKET LEADER WITH 134-YEAR HISTORY
- CLIENTS INCLUDE FEDERAL, STATE, LOCAL, AND FOREIGN GOVERNMENTS, DOMESTIC AND FOREIGN PRIVATE COMPANIES, SUCH AS UTILITIES AND ENERGY COMPANIES, LNG PRODUCERS, AND OFFSHORE WIND DEVELOPERS
COMPANY BACKLOGa $879 MILLION LOW BIDS AND OPTIONS PENDING $203 MILLION Q1 2024 ADJUSTED EBITDA $43 MILLION
$ as of March 31, 2024
GREAT LAKES DREDGE & DOCK CORPORATION
(a) Backlog amount does not include approximately $45 million related to offshore wind contracts. | INFO@GLDD.COM | GLDD.COM |
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ABOUT US WORK WE DO
SPECIALIZING IN PROJECTS THAT HELP IMPROVE AND PROTECT OUR NATION'S INFRASTRUCTURE AND COASTLINES
CAPITAL | COASTAL PROTECTION |
32% OF REVENUE(A) | 33% OF REVENUE(A) |
↓ | ↓ |
LNG, PORT DEEPENING / | CREATING AND REBUILDING |
EXPANSION, COASTAL | |
BEACHES | |
RESTORATION, LAND | |
BID MARKET SHARE(B) 18% | |
RECLAMATION, & EXCAVATION | |
OF UNDERWATER TRENCHES | |
BID MARKET SHARE(B) 36% |
MAINTENANCE | FOREIGN | |
32% OF REVENUE(A) | 0% OF REVENUE(A) | |
↓ | ↓ |
Maintenance | Capital |
+ R&L | |
BALANCED MIX OF REVENUE
Coastal
Protection
RIVERS & LAKES
3% OF REVENUE(A)
↓
MAINTAINING DEPTH OF | INTERNATIONAL LAND | INLAND MAINTENANCE AND LAKE | |
RECLAMATIONS, CHANNEL | DREDGING, ENVIRONMENTAL & | ||
WATERWAYS AND HARBORS | |||
DEEPENING & PORT | HABITAT RESTORATION | ||
BID MARKET SHARE(B) 40% | |||
INFRASTRUCTURE DEVELOPMENT | BID MARKET SHARE(B) 6% | ||
3-YEAR AVERAGE REVENUE: | |||
$7MM | GREAT LAKES DREDGE & DOCK CORPORATION | ||
(A) Revenue of FY 2023 | INFO@GLDD.COM | GLDD.COM | ||
(B) The Company's dredging bid market is defined as the aggregate dollar value of domestic projects on which the Company bid or could have bid if not for capacity |
constraints. Bid market share represents bid market average over the prior three years (2021-2023) | 7 |
ABOUT US DREDGING FLEET
LARGE & DIVERSE FLEET WITH THREE MAJOR VESSELS ADDED TO FLEET SINCE 2018
HOPPER
- 5 U.S. VESSELS (1 ADDITIONAL VESSEL UNDER CONSTRUCTION)
- THE ELLIS ISLAND IS THE LARGEST HOPPER IN THE U.S. FLEET
- HIGHLY MOBILE, ABLE TO OPERATE IN ROUGH WATERS
- LITTLE INTERFERENCE WITH OTHER SHIP TRAFFIC
MECHANICAL
- 4 U.S.VESSELS
- OPERATES ONE ENVIRONMENTALLY FRIENDLY ELECTRIC CLAMSHELL DREDGE
- THE DREDGE 58 IS ONE OF THE LARGEST CLAMSHELLS IN THE U.S. FLEET
- MANEUVERABILITY IN TIGHT AREAS SUCH AS DOCKS AND TERMINALS
HYDRAULIC
- 5 OCEAN CLASS U.S.VESSELS
- 2 INLAND CLASS U.S. VESSELS
- MOST POWERFUL ROCK CUTTER DREDGES IN U.S. MARKET
- SUPPORTED BY 8 BOOSTER PUMPING STATIONS
- CAPABLE OF EXCAVATING CHALLENGING SOILS, INCLUDING ROCK
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
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ABOUT US DOMESTIC COMPETITION
3-YEAR AVERAGE
DOMESTIC BID MARKET SHARE ($2,004 MILLION)(a)
NUMBER OF
DREDGES
OTHERS | ||||||
33% | 20% | 27% | ||||
7% | 6% | 5% | 2% | |||
16(b) | 8 10 | 4 | 4 | 3 N/A |
GREAT LAKES DREDGE & DOCK CORPORATION | ||
(a) 2021 - 2023 including Rivers & Lakes, excludes LNG | INFO@GLDD.COM | GLDD.COM | |
(b) Excludes one hopper under construction | ||
. | 9 | |
ABOUT US DREDGING MARKET
STRONG MARKET FUNDING WITH ROBUST MARKET OUTLOOK
ATTRACTIVE NEAR & LONG-TERM CATALYSTS IN U.S. DREDGING
- RECORD FUNDING APPROVED FOR THE 2024 U.S. ARMY CORPS OF ENGINEERS' BUDGET
- USACE fiscal year 2024 budget totaled $8.7 billion
- the 2023 bid market, not including LNG projects, saw bids for seven capital projects including, Norfolk, Freeport, Corpus, San Juan, and Sabine. Several large capital projects expected to bid in 2024 including multiple phases of Houston and Mobile
- ADDITIONAL $1.48 BILLION APPROVED UNDER THE DISASTER RELIEF SUPPLEMENTAL APPROPRIATIONS ACT FOR FISCAL YEAR 2023
- supports projects impacted by hurricanes and other natural disasters
- initiates projects that will increase coastal resiliency
- work on projects started in 2023 with additional projects expected in 2024
- WRDA 2022 PASSED FOR 5th STRAIGHT CONGRESS
- including authorization of NY/NJ shipping channel deepening estimated at $6 billion and an estimated $30 billion for the Coastal Texas Program
- GLDD AWARDED LNG PROJECTS
- in the third quarter of 2023, two previously permitted LNG projects were added to backlog
- Rio Grande LNG - sub work started in 2023 with dredging to start in the middle 2024
- Port Arthur LNG - sub work starting early 2024 with dredging to start in the middle of 2024
- additional LNG projects proceeding to bidding process
GREAT LAKES DREDGE & DOCK CORPORATION
INFO@GLDD.COM | GLDD.COM
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Great Lakes Dredge & Dock Corporation published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 18:39:03 UTC.