gldd-10q_20200630.htm

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 29, 2020, 64,946,952 shares of the Registrant’s Common Stock, par value $.0001 per share, were outstanding.

	June 30,			December 31,
	2020			2019
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	233,527		$	186,995
Accounts receivable—net		33,894			19,785
Contract revenues in excess of billings		20,436			22,560
Inventories		30,377			30,189
Prepaid expenses and other current assets		29,602			41,183
Total current assets		347,836			300,712

PROPERTY AND EQUIPMENT—Net		374,327			374,596
OPERATING LEASE ASSETS		71,316			72,612
GOODWILL		76,576			76,576
INVENTORIES—Noncurrent		65,671			61,126
ASSETS HELD FOR SALE— Noncurrent		3,970			3,970
OTHER		8,372			7,960
TOTAL	$	948,068		$	897,552

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	76,376		$	76,091
Accrued expenses		44,938			51,225
Operating lease liabilities		20,069			21,351
Billings in excess of contract revenues		55,087			55,266
Total current liabilities		196,470			203,933

LONG-TERM DEBT		323,289			322,843
OPERATING LEASE LIABILITIES—Noncurrent		51,390			51,131
DEFERRED INCOME TAXES		48,926			35,740
OTHER		6,991			4,506
Total liabilities		627,066			618,153

COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Common stock—$.0001 par value; 90,000 authorized, 64,947 and 64,283 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively.		6			6
Additional paid-in capital		304,531			302,189
Retained earnings (accumulated deficit)		19,856			(23,091	)
Accumulated other comprehensive income (loss)		(3,391	)		295
Total equity		321,002			279,399
TOTAL	$	948,068		$	897,552

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020			2019			2020			2019

Contract revenues	$	167,920		$	184,811		$	385,615		$	377,448
Costs of contract revenues		134,904			147,325			284,125			290,085
Gross profit		33,016			37,486			101,490			87,363
General and administrative expenses		14,804			14,613			30,375			29,438
(Gain) loss on sale of assets—net		(39	)		81			(184	)		360
Operating income		18,251			22,792			71,299			57,565
Interest expense—net		(6,725	)		(7,188	)		(13,355	)		(14,739	)
Other income (expense)		565			123			(556	)		295
Income from continuing operations before income taxes		12,091			15,727			57,388			43,121
Income tax provision		(3,131	)		(4,230	)		(14,441	)		(11,076	)
Income from continuing operations		8,960			11,497			42,947			32,045
Loss from discontinued operations, net of income taxes		—			(3,251	)		—			(6,631	)
Net income	$	8,960		$	8,246		$	42,947		$	25,414

Basic earnings per share attributable to continuing operations	$	0.14		$	0.18		$	0.66		$	0.51
Basic loss per share attributable to discontinued operations, net of tax		—			(0.05	)		—			(0.10	)
Basic earnings per share	$	0.14		$	0.13		$	0.66		$	0.41
Basic weighted average shares		64,864			63,605			64,659			63,243

Diluted earnings per share attributable to continuing operations	$	0.14		$	0.18		$	0.65		$	0.50
Diluted loss per share attributable to discontinued operations, net of tax		—			(0.05	)		—			(0.10	)
Diluted earnings per share	$	0.14		$	0.13		$	0.65		$	0.40
Diluted weighted average shares		65,758			64,990			65,802			64,654


															Retained			Accumulated
	Shares of					Shares of						Additional			Earnings			Other
	Common			Common		Treasury			Treasury			Paid-In			(Accumulated			Comprehensive
	Stock			Stock		Stock			Stock			Capital			Deficit)			Income (Loss)			Total

BALANCE—January 1, 2020		64,283		$	6		—		$	—		$	302,189		$	(23,091	)	$	295		$	279,399

Share-based compensation		61			—		—			—			3,130			—			—			3,130
Vesting of restricted stock units and impact of shares withheld for taxes		412			—		—			—			(2,106	)		—			—			(2,106	)
Exercise of options and purchases from employee stock plans		191			—		—			—			1,318			—			—			1,318
Net income		—			—		—			—			—			42,947			—			42,947
Other comprehensive loss—net of tax		—			—		—			—			—			—			(3,686	)		(3,686	)
BALANCE—June 30, 2020		64,947		$	6		—		$	—		$	304,531		$	19,856		$	(3,391	)	$	321,002

BALANCE—January 1, 2019		62,830		$	6		(278	)	$	(1,433	)	$	295,135		$	(74,971	)	$	(3,809	)	$	214,928

Cumulative effect of recent accounting pronouncements		—			—		—			—			—			2,802			—			2,802
Share-based compensation		45			—		—			—			4,530			—			—			4,530
Vesting of restricted stock units and impact of shares withheld for taxes		554			—		—			—			(2,929	)		—			—			(2,929	)
Exercise of options and purchases from employee stock plans		618			—		—			—			3,756			—			—			3,756
Cancellation of treasury stock		(278	)		—		278			1,433			(1,173	)		(261	)		—			—
Net income		—			—		—			—			—			25,414			—			25,414
Other comprehensive income—net of tax		—			—		—			—			—			—			2,977			2,977
BALANCE—June 30, 2019		63,769		$	6		—		$	—		$	299,320		$	(47,016	)	$	(832	)	$	251,478

															Retained			Accumulated
	Shares of					Shares of						Additional			Earnings			Other
	Common			Common		Treasury			Treasury			Paid-In			(Accumulated			Comprehensive
	Stock			Stock		Stock			Stock			Capital			Deficit)			Income (Loss)			Total

BALANCE—March 31, 2020		64,795		$	6		—		$	—		$	302,558		$	10,896		$	(6,831	)	$	306,629

Share-based compensation		22			—		—			—			1,455			—			—			1,455
Vesting of restricted stock units and impact of shares withheld for taxes		24			—		—			—			(178	)		—			—			(178	)
Exercise of options and purchases from employee stock plans		106			—

Delaware		20-5336063
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2122 York Road, Oak Brook, IL		60523
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (Par Value $0.0001)	GLDD	Nasdaq Stock Market, LLC

		Page

	Part I Financial Information (Unaudited)	3

Item 1	Financial Statements	3

	Condensed Consolidated Balance Sheets at June 30, 2020 and December 31, 2019	3

	Condensed Consolidated Statements of Operations for the Three and Six Months ended June 30, 2020 and 2019	4

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months ended June 30, 2020 and 2019	5

	Condensed Consolidated Statements of Equity for the Three and Six Months ended June 30, 2020 and 2019	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and 2019	7

	Notes to Condensed Consolidated Financial Statements	9

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4	Controls and Procedures	25

	Part II Other Information	26

Item 1	Legal Proceedings	26

Item 1A	Risk Factors	26

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3	Defaults Upon Senior Securities	26

Item 4	Mine Safety Disclosures	26

Item 5	Other Information	26

Item 6	Exhibits	27

	Signature	28

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐