![]() So since these bids for new dredge projects did not materialize as early as in previous years, two dredges were idle for part of the second quarter. Bidding for projects for the core was unusually slow in Q1 and for the two first months of Q2, resulting in delayed bidding for beach and maintenance projects that we have historically seen in the second quarter for execution in the current year. However, the following impact on the delayed start and scheduled completion of their assigned projects had a major impact on our Q2 results. These extended idle periods increased the cost of the dry dockings. Also the delivery of the Carolinas new emission reduction equipment was delivered late, which delayed her mobilization by about a month to the Houston Ship Channel project, where she eventually started work in third quarter in July. The high-earning Hopper Dredge Liberty Island had dry dock extended by several weeks as installation of her new system for automation and dredge process systems were delayed. Moreover, supply chain issues extended the duration of dry dockings and delayed mobilization on several projects. During the quarter, we saw inflation impact labor, operating supply cost and the cost of dry dockings. Unfortunately, weather patterns seems to be changing, and we will, on future projects, adjust the estimates to include more frequent severe weather.Īlthough these severe weather events caused short-term impacts to our projects, they also caused an increase in beach and barrier island erosion and sedimentation of shipping channels and ports that, in turn, need to be renourished and maintained in the following years, which add to the recurring nature of our business. Our product estimates include weather event days based upon historic weather records. These weather events cost several vessels to stop upgrading a seek shelter, which extended completion time lines and delayed scheduled commencement to work on subsequent projects. We also had several projects impacted by unseasonably rough sea conditions along the East Coast. However, revenue and profit recognition is delayed until these discussions are agreed upon and finalized. We are now working to resolve the cost impacts through contractual discussions with our customers. As we navigated a challenging environment, driven by external factors, including supply chain delays, inflationary pressures and adverse weather conditions, combined with some atypical dredging project challenges.ĭuring the quarter, we had three projects encountering differing and unanticipated site conditions, which negatively impacted production and internal margins. With that, I will turn the call over to Lasse.Īs stated in our earnings release, our second quarter results did not meet expectations. During this call, we also refer to certain non-GAAP financial measures, including adjusted EBITDA, which are explained in the net income to adjusted EBITDA reconciliation attached to our earnings release and posted on our Investor Relations website, along with certain other operating data. Certain risk factors inherent in our business are set forth in our earnings release and in filings with the SEC, including our 2021 Form 10-K and subsequent filings. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Following their comments, there will be an opportunity for questions.ĭuring this call, we will make certain forward-looking statements to help you understand our business. #GREAT LAKES DREDGE UPDATE#Lasse will conclude with an update on the outlook for the business and market. Lasse will provide an update on the events of the quarter, then Scott will continue with an update on our financial results for the quarter. Joining me on the call this morning is our President and Chief Executive Officer, Lasse Petterson and our Chief Financial Officer, Scott Kornblau. Good morning, and welcome to our second quarter conference call. I would now like to hand the conference over to your speaker today, Tina Baginskis, Director, Investor Relations and Financial Planning. Please be advised that today's conference is being recorded. Welcome to the Q2 2022 Great Lakes Dregde & Dock Corporation Earnings Conference Call. Tina Baginskis - Director, IR and Financial Planning Great Lakes Dredge & Dock Corporation ( NASDAQ: GLDD) Q2 2022 Earnings Conference Call Aug10:00 AM ET ![]()
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