• Full year net income from continuing operations $11.0 million
  • Full year Adjusted EBITDA from continuing operations, excluding restructuring $109.8 million
  • Net debt reduction of $115 million for the full year
  • Backlog of over $707 million as of year-end 2018, up nearly $200 million from the prior year
  • Expects to divest Environmental and Infrastructure business in 2019 to focus on core dredging operations

OAK BROOK - Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), the largest provider of dredging services in the United States, today reported financial results for the quarter and year ended December 31, 2018.

As of December 31, 2018, the Company has concluded that it intends to sell the Environmental and Infrastructure (“E&I”) business during the first half of 2019. Based on this decision, this business has been classified as an asset held for sale and all results of this business have been reflected as discontinued operations as of December 31, 2018. Consequently, the financial results for continuing operations reported within this earnings release do not include the E&I segment.

Fourth Quarter 2018 Highlights

Revenue was $173.2 million in the fourth quarter, a $20.5 million or 13.4% increase over the prior year quarter.

Gross margin percentage increased to 20.6% in the fourth quarter from negative 3.9% in the prior year quarter.

Total operating income from continuing operations was $16.7 million, a $40.9 million increase over the prior year quarter.

Restructuring charge from continuing operations of $5.3 million in the fourth quarter of 2018 as compared to $27.2 million in the prior year quarter.

Net income from continuing operations was $5.0 million, a $9.8 million increase over the prior year quarter. The prior year quarter included a tax credit of $15.7 million related to the passing of the Tax Cuts and Jobs Act of 2017.

Adjusted EBITDA from continuing operations was $28.4 million as compared to negative $3.8 million in the prior year quarter. When excluding the restructuring impact, Adjusted EBITDA from continuing operations was $33.0 million in the fourth quarter of 2018 as compared to $16.6 million in the fourth quarter of 2017.

Full Year 2018 Highlights

Revenue was $620.8 million for the full year 2018, a $28.6 million or 4.8% increase over the prior year.

Gross margin percentage increased to 18.0% in 2018 as compared to 7.2% in 2017.

Consolidated operating income from continuing operations was $52.6 million, a $71.9 million increase over the prior year.

Restructuring charge from continuing operations was $16.1 million for the full year 2018 as compared to $28.8 million in 2017.

Net income from continuing operations was $11.0 million, a $26.4 million increase over the prior year.

Adjusted EBITDA from continuing operations was $100.4 million as compared to $35.2 million in 2017. When excluding the restructuring impact, Adjusted EBITDA from continuing operations was $109.8 million for the year as compared to $57.2 million in 2017.