Great Lakes Dredge concludes strategic review

AUGUST 4, 2016 — Dredging giant Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) reported revenue of $192.2 million, net loss of $1.7 million and Adjusted EBITDA of $18.3 million for the quarter ended June 30, 2016.

Commenting on the review of strategic alternatives announced in October 2015, Chairman of the Board Mike Walsh said, “The process commenced with the understanding of our advisors that we would execute a transaction only if it provided for the value we see in our expectations for the ATB hopper dredge once it is operational in 2017, as well as our plan to turnaround the Environmental & infrastructure (E&I) segment. The Board, in conjunction with its advisors, concluded that we best serve our stockholders by focusing on executing our current strategic plan, including having the ATB join our hopper fleet and returning the E&I segment to profitability by divesting non-profitable services and focusing on its core strengths.”

Mr. Walsh added that the strategic review process has been concluded.

Chief Executive Officer Jonathan Berger said, “Subsequent to the second quarter close, as part of our strategic plan, the Company entered into a definitive agreement to sell the assets associated with certain services lines of the Terra Contracting Services, LLC business – excluding the assets supporting the remediation service line – for a minimum $11.5 million.”

Noting that the “the Dredging segment performed well on several domestic projects during the second quarter,” Mr. Berger said that,  due to the slowdown in the international market and a strategy to optimize the fleet, the company sold the Reem Island, an older, foreign-flagged hopper dredge, during the quarter resulting in net cash proceeds of $10 million.  There was a $0.7 million loss recorded on the income statement associated with the sale of this vessel. He said the company would  save approximately $1.6 million in costs related to operation of the Reem Island in the second half of the year.   

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