Great Lakes Dredge & Dock Corp (GLDD) 2014 Q1 法說會逐字稿

Good Day ladies and gentlemen and welcome to the First Quarter 2014 Great Lakes Dredge and Dock Corporation Earnings Conference Call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. If anyone should require assistance during this conference, please press star then 0 on your touch tone telephone to reach an Operator. As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mary Morrissey. Please go ahead.

Good morning this is Mary Morrissey and I welcome to our quarterly conference call. John Berger our Chief Executive Officer and Katie Hayes, our Interim Chief Financial Officer will discussion operational and financial results for the quarter, ended March 31, 2014.

Following their comments there will be an opportunity for questions. During this call we will make certain forward looking statements to help you understand our business. These statements involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations. Certain risk factors inherent in our business are set forth in our filings with the SEC, including our 2014 form 10k and subsequent filings.

During this call we also refer to certain non-GAAP financial measures including adjusted EBITDA from continuing operations which I explain 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.

I would first like to turn the call over to Katie Hayes our Interim CFO.

Thank you Mary. Good morning. Total company revenues for the first quarter of 2014 we $174.4 million, a decrease of 3.2% from a very strong first quarter of 2013. Our Dredging segment recorded lower revenues in the current quarter largely due to severe weather which both contributed to longer project durations and equipment down times for maintenance.

Total company gross profit margin for the first quarter declined 12% compared to 17.1% for, again, the strong first quarter of 2013.

Primary drivers of total company gross profit margin include tightening margins in certain of our dredging contracts due to the severe weather and equipment down time which were partially upset by higher gross profit margins from the Rivers and Lakes project as well as our Environmental and Remediation line of business.

The margin contraction was also driven by minimal dredging activity in the Middle East.

So company operating income was $2.9 million for the quarter, down 11.6% from our prior year quarter, primarily due to the lower gross profit I just noted. Operating income in our Dredging segment decreased to $7.4 million compared to last year due to the lower fixed cost coverage driven by downtime, while the Environmental and Remediation segment experienced an operating loss similar to the prior year quarter due to higher G&A partially offset by stronger operating results.

The domestic dredging bid market for the quarter ended March 31, 2014, totaled $376 million compared to $237 million in 2013. The company won 37% of the overall domestic dredging bid market during the quarter, which is below our prior three year average of 46%. Please remember the variability in contracts wins from quarter to quarter is not unusual and the win rate for one quarter is not necessarily indicative of the win rates the company is likely to achieve for the full year.

Through the first quarter Great Lakes won 22% or $45.8 million of the Capital projects awarded. 100% or $4.9 million of the Coastal Protection projects awarded. 74% or $89.3 million of the Rivers & Lakes projects awarded. Great Lakes was not awarded any Maintenance projects during the quarter.

Contracted dredging backlog at March 31, 2014, was $515.1 million which is a 49% increase compared to the same quarter in 2013. Award of the Lake Decatur and another phase of Miami helps keeps backlog levels constant from year end.

In April the company was low bidder on three contracts, totaling nearly $51 million which included a $25 million river deepening project in Delaware, a coastal protection project in New Jersey for nearly $18 million, and a $7.8 million maintenance project on the Mississippi River in Louisiana.

Environmental and Remediation segment backlog was $77 million at March 31, 2014, compared to $28 million March 31, 2013. The award of a new phase of long term remediation project in the Midwest is the primary component of this backlog. This is the highest backlog for the segment specifically, [Beterra] the main business in this segment.

During the first quarter we were able to decrease our investment in working capital and keep debt levels fairly constant with year end. We continue to focus with working capital and the free cash flow of the business.

We spent $22.9 million in capital expenditures in the quarter of which $12.4 million was for the [ATV]. We are currently finalizing financing for the ATV that will allow us to fund the remaining construction of this vessel and provide long term financing upon completion.

I would now like to turn the call over to John Berger, who is going to discuss our markets as well as strategic planning and growth considerations for moving forward.

Thank you Katie, as Katie discussed the harsh winter had a significant impact during our first quarter. Projects were slowed down in each of our operating units. None the less, given our solid backlog and improved weather conditions we are optimistic that we will have solid performance in the second quarter.

Let's turn to Dredging. First, we are pleased about the Rivers and Lakes being awarded the $89 million contracting for dredging on Lake Decatur in Illinois. Not only is Rivers and Lakes backlogged the largest it has ever been, but also this contract demonstrates that there is a market for our combined dredging and remediation services platform.

As you may recall, the contract involves dredging nearly 11 million cubic yards of material from Lake Decatur's basins one through four and rehabilitating the Oakley Sediment Basin at the site. This will be performed by our remediation subsidiary.

Once completed this project will restore roughly 30% of Lake Decatur's capacity, additionally this is a complex project where we will be pumping materials over 50,000 feet involving coordination of four booster pumps through the pipeline system. This is very similar to the work we did in our Empire Pipeline project in the Gulf.

Given the growing scarcity of water in some regions throughout the United States, we expect other municipalities to make similar investments in their water systems. Successful execution of the Lake Decatur project will make us well suited for similar projects in the future.

I would also like to mention that as an Illinois based company the vast majority of work for us at this project was locally sourced in the communities funding this project in Illinois.

As Katie mentioned, our Domestic Production Dredging segment recorded lower revenues in the current quarter versus quarter one which was an extremely strong quarter in 2013. This is largely due to severe weather. This revenue will be captured in the coming months, but this does contribute to longer project durations and equipment downtime for maintenance during the quarter.

Turning to the East Coast and Coastal Protection. There is still significant work that was put out under the Sand Island appropriation that should be put out. In the next round of contracts to come are more mega-contracts compared to the work that was done to date. They will include fortifying the beaches for the future as opposed to the last set of work that focused in repairing damage to the shore line. This work has been delayed but we expect these projects to be awarded later in 2014.

I would like to give you a quick update on the Port of Miami deepening project. This project is going well and is on schedule. An artificial reef has been built and we are currently relocating the live coral from the channel that is going to be dredged, to the new reef.

We have one of our cutter suction dredges, the Texas, pretreating certain rock areas for excavation by another Great Lakes dredge, which is improving the overall work schedule on this project.

Let's switch to International for a moment. Internationally the Wheatstone project in Australia is going as anticipated and is on budget. As Katie mentioned we had minimal dredging in the Middle East during the first quarter but we had one project in the Middle East in our backlog and are pursuing several additional opportunities to improve utilization of our fleet.

In the Southern Hemisphere we originally won a project for a port in Brazil to create a berth at the Port of Santos. As we said in the past Brazil is an attractive market for us and we think there is a significant opportunity for us to grow our presence there.

Let's know talk about Washington for a moment and the Water Bill. As you know we follow this Bill very closely given the impact its passage will have on the dredging industry. Based on our knowledge and discussions and comments from key members of Congress we are optimistic that the passage of this bill will occur by the end of the second quarter.

This is exciting news for several reasons but especially because it will make more funding available for dredging. It provides authorization, thought not appropriations for some large port projects, deepenings, such as the Port of Savannah, which will have a higher dollar value amount appropriated to it once the Bill passes. I should also mentioned that the Bill will improve and expedite the planning process for dredging projects. Clearly passage of this Bill will be a benefit to the whole dredging industry.

Let's turn to the Environmental and Remediation Demolition segment. As we previously announced, we completed the sale of our historic demolition subsidiary NASDI and Yankee Environmental on April 23 of this year. With the divestiture finalized we look forward to being able to focus even more executing our strategy of successfully providing a growing set of environmental remediation services that compliment our core dredging business.

We will be spending the next few months working with the buyer to collect certain assets for our account including WIP, Accounts Receivable, and Claims resulting from work prior to the sale.

We are pleased that despite the harsh winter weather the Environmental and Remediation segment had a strong performance and more than double the revenue in the first quarter 2014 compared to the same period 2013.

We are nearly triple the amount of backlog at 331 compared to the same period last year. This segm3ent is clearly positioned to have another strong year. The segments successful execution on several larger projects along with the platform of services available under the corporate umbrella will contribute to continued growth in this market. This business gives us a good base to grow this segment and with the sale of the Demolition segment beyond us, now let's us turn our focus to doing just that.

Finally, I would like to talk about Safety Week. Every year more than 80,000 workers suffer an injury on the construction job site across the US. And obviously, one incident is one too many. Life is too precious to not make Safety the number one focus in the US construction industry.

That is why 31 of our national and global construction firms, comprising the Construction Industry Safety Group and the Incident and Industry Free CEO Forum have joined forces with a single aim. To inspire everyone in the industry to be leaders in safety. Each of us has dedicated this week to especially refocus our efforts with all our employees, whether on water, shoreline, or in the offices to talk about and focus on safety both on the job site and at home with their families.

With that I would like to open it up for questions.

I can't believe no one has any questions. So moderator?

(Operator's Instructions) Our first question comes from the line of John Tanwanteng of CJS Securities. Your line is open.

Good morning and thank you for taking my questions.

Sure John.

Good morning John.

Good morning. Can you give us a little more detail on the loss of JV's. Was that from Amboy or TerraSea or just some more color and what caused it?

Sure. The weather, it was probably about two-thirds at the JV with TerraSea and a one-third at Amboy. Amboy's was largely because of weather, don't forget they provide both sand and aggregates to the construction industry in New York and New Jersey and the weather, obviously, had a significant impact on that in January and February, especially, as did it with each of our divisions.

The TerraSea joint venture, we have one project where we have a significant claim on that project that we are in the process of working through with the customer. But that was what caused that JV to have losses in the quarter until we can get acknowledgment and recognize the claim we did the work with out benefit of the revenue.

OK, thanks. And then just on the foreign capital business. How should we think about the run rate for that going forward? You have had a bout half of what you have been doing for the past six quarters, is it going to be similar Q1?

It better not be. I think we talked to everyone on the phone that that was one of our big concerns. We were low bid on a very significant contract in the Middle East, the contract was withdrawn, and then subsequently awarded to a dredging company from one of the Middle Eastern countries that offered to basically pay for the project. So that was very disappointing for us. We had committed our assets to that, we have talked about that. There is another project, I was actually over in 1Bahrain over the weekend with the expectations of sitting in meetings with the government, that we are told is hopefully being awarded to us. But we are seeing a lot of bidding opportunity, but we have got to get our equipment in the Middle East, working, and occupied.

And right now we have a nice project in Saudi Arabia that we are subsidiary for that is going very, very well, but that isn't taking our full fleet of equipment and we have got to get that equipment working. So we are working hard and we are looking well beyond the Middle East borders. We are quoting work in Africa, we are quoting work in far east Asia, but we have got to get that to work.

Certainly the project that we were low bid and was taken away from us certainly set us back some.

OK, got it. And then just on the coastal restoration business. You had a record quarter even despite the poor weather. Do you expect the momentum to continue or is it going to be a bit of a gap as you wait for these more preventative projects to be let later in the year?

That is the coastal protection work and some of that was delayed in the quarter. So we expect to have a strong quarter with that for the second quarter. And we did win another project in April that we will work on. I don't think we will see a huge gap, we might see a little gap, but not huge as we expect more work to be coming out here over the next few months.

I mean, yes, hopefully, we believe the Army Corps was a little slow in getting some of this work to be bid. But the bidding schedule looks very nice and as we stated, there are some very chunky projects coming out. So, we hope not with the award, we did the $18 million award that we won after the end of the quarter. We hope the schedule for coastal protection will not we weak this year in total.

We still have $70 million in backlog right now as well.

Right.

Great thank you very much.

Yes, thanks John.

Thank you, our next question will be coming from the line of Andrew Kaplowitz from Barclays, your line is open.

Morning, this is (inaudible) on for Andy how are you?

Good, how are you?

Good, thanks. Maybe first, can you talk about in the Environmental and Remediation business, nice quarter there and very strong backlog. Can you talk about visibility that you have for additional large projects in that business over the course of this year?

Yes, there are some potential opportunities that would be third and fourth quarter, they also do a significant amount of $1 million to $5 million projects, but they have two rather large projects. They, obviously, have the project we did last year. [Cambridge] has another phase this year that is in the field now and going. It was slow because of the weather getting up and running. They have a $15 million project, that brownfield project that we transferred over from our demolition business the vast majority of that should be executed this year. And they have, I believe, $11 million worth of work in their back log associated with Lake Decatur to do the land side rehabilitation of the disposal basin.

So for the next two quarters, they have a tremendous amount of people in the field, but we are bidding some work. I am not sure it is, what I will call, a mega project, $30 million, $40 million, $50 million project out there at the moment. But there are some nice $5 million to $10 million projects that we are looking at.

OK, that is helpful. And then maybe just internationally, you mentioned Brazil in your commentary, on a port there. Can you give us an update or elaborate on some of the other opportunities that you are seeing in Brazil and how that market is unfolding today?

Certainly there is big discussions in Brazil on a whole second phase of dredging in their key ports. We play what I will call, the smaller segment of that market, our big hoppers, our hoppers that we dedicate to the international don't compete with the big international hoppers, but there is clam shell market along certain smaller ports, along the inland side of the ports, along around the docks that we think is very well suited for our clam shell set of dredges. We have one set of clam shell down there, we believe there is potential to bring another clam shell down there. And there aren't many, if any clam shells of the size that we would bring down there to work in that area. And the clam shells are more efficient than the very, very big hoppers that handle the middel3e of the port. So that is where we see is a nice little opportunity for us.

That is very helpful. Maybe one last question and then I will get back in the queue. Just on the mechanical delays in dredging in 1Q. Can you just give us some color on that. Was that related to one particular vessel or project and has that all been remedied now?

Yes, Katie, why don't you take that one.

There were a couple of projects where the dredges had some mechanical down time. It was two of them, they have all been remedied and are back to work. And then in addition, just due to the severe weather, also caused some mechanical issues on some other projects. But again, those have been fixed and the projects are either completed or in the process.

OK, thanks very much.

Yes.

Absolutely.

Thank you our next question will be coming from the line of Scott Levine of Imperial Capital, your line is open.

Hello, good morning guys.

Morning Scott.

I know it is not your policy to give formal financial guidance, but I was hoping for a little bit more color on your expectation fro both potential for backlog to increase further going forward and also some color regarding your expectations for margins and whether you are seeing any improvement in pricing, generally, particularly within the US market?

Sure, let's start-that was probably three questions so I am going to try to get to them all in some order.

Obviously, our backlog if we can [GAAP] and get in the boat one of these international projects that we are chasing would change dramatically. Because, the international capital projects we are looking at are rather large. It would give us nice coverage for probably 300 days to 400 days of a good suite of equipment out there.

Domestically we do think there are going to be some good chunky contracts coming out on the east coast for the beach work. And so we think we should be in to maintain our backlog or hopefully, increase it.

On the Savannah River, deepening, everybody talks about the fourth quarter or third, fourth quarter coming out to bid. If Water gets passed it is authorized. And there are two phases. You have to get authorized and then you have to be appropriated. Well, it hasn't been appropriated but the State has certain money that they will contribute and like Miami, I think you are going to see a growing trend of State and Local funding of significantly larger portion of those than you have seen in the past from a share standpoint. Miami has kind of led the way. I anticipate Savannah will be no different.

So if that comes out, there is a significant amount of dredging there. Obviously, the prices they talk about the $500 million to $600 million for the whole project also involves a lot of land side, a lot of things that aren't pure dredging.

And Gulf coast we are just kind of waiting to see there. But I think there are projects there. It is a long winded answer to say that for most of our markets, we do think that we will continue to operate at backlogs that are at this level or hopefully more.

The real fulcrum is again, the Middle East, we have to get that equipment occupied.

Understood. And as a follow up, I don't know if this is possible, but can you quantify in your estimation the earnings that were lost or revenue that was lost as a result of weather and comment as to whether you would expect that to come back in Q2 or most of it or all of it. A little bit of help with regard to modeling the quarter that is in front of us?

Yes, I am not sure the exact number of revenue, is it (inaudible). To give you exact numbers, but yes, it is all deferred revenue. Now obviously, the margin on all that deferred revenue will shift on those projects because when you have dredges tied up because the dredge is totally iced over or the weather is just too, too cold or rough to put somebody out there safely, we don't send people home and able to defray that cost. So, the individual project that we are operating on should have depressed margins but the revenues itself we should be able to recoup it in the second and third quarter.

And I can't give you specific numbers but the northeast projects were all delayed and the problem could be it is one day here, four days there.

The basin work in Lake Decatur probably got delayed a month because we couldn't dig in the ground it was just too iced over. And we expected to be able to start that in March so that effected both Rivers and Lakes and our Environmental business. The brownfield project slowed down because of the severe weather in Jersey. So it is bits and pieces on a lot of little jobs so that is why it is not easy for us to quantify it.

But just maybe try for a little bit more in general. Would you expect just maybe more than a general seasonal uptick in activity because of a catchup?

We will definitely expect a strengthening in Q2 versus Q1.

Q2, all indications are that it should be a very solid quarter.

Got it thank you.

Yes.

Thank you. Our next question will be coming from the line of John Rogers from D.A. Davidson, your line is open.

Hello, good morning.

Good morning John.

A couple of things. I guess on your two largest projects, Wheatstone and Miami, how much is left on those to complete?

Miami, let's see it is May, we probably have about another year left on that at least.

Yes, I would say for sure.

And Wheatstone?

Through the rest of this year. Wheatstone should be the rest of this year.

OK, I guess what I am trying to understand. Were either of those impacted by the weather?

Miami was impacted a little bit by the weather. It is still on schedule and everything but they certainly have some rough seas even though it is Miami. They experience some rough seas when they go to the outer areas. But overall for that project obviously, we do build in some weather.

And Wheatstone it is typhoon season or...

Cyclone.

Cyclone, right now. So there are times that we have to, I think in the first quarter...

We had to pull off.

We had to pull off the project totally.

I mean if you just think about the scale of these. They should be generating on the straight line basis $10 million to $15 million a month. I am just trying to understand. I thought they would have been adding holding your margins up or the other projects losing a lot of money? Am I just thinking about this the wrong way,

No, they have good margins and we are reporting revenue. It is obviously a big part of our results, but they are only a portion of our equipment. We have a lot of other equipment out there that is working on different projects.

So if you think about it. Wheatstone, we have one dredge plus port equipment. Miami, we have the Texas, and intermittently we had a hopper down there and a clam shell there. Plus other support equipment, obviously, a [scouse], a spider barge.

With the size of our fleet those are certainly big revenue generators but we have other dredges that we have a reasonably sized fleet that a lot of that, historically, don't forget the beach work is typically done during the winter in the northeast, because people use the beaches during the summer.

And is Wheatstone in your foreign capital dredging?

Yes it is.

OK.

That is what is bolstering our foreign numbers in total.

OK. And in terms of your utilization schedule into the second quarter. Seasonally, I assume this will be your strongest period before people start using the beaches again in the summer. Is that the way you are thinking about it and then ramp back up again in the fourth quarter?

Yes.

Second quarter should be very strong. You have turtle windows we deal with and but...

Yes, so the third quarter we do have environmental issues, we are down, so we can't work because you don't want to put sand on the people and you don't want to do turtle nesting and various things like that that keep us from doing a lot of work in certain areas in the third quarter.

Right. And the fourth quarter becomes another strong quarter.

Yes.

OK. And John your expectation still is that you can get this back up in the double digit operating margins?

Yes, absolutely.

OK great. Alright, thank you both appreciate it very much.

Thanks John.

Thanks John.

Thank you, our next question is from [Rick Dodfuel] from Columbia Management, your line is open.

Morning.

Morning.

Just a couple of questions, the first one relates to the sale of the demo business. What is the expectation of what is hanging out there for you to collect. You have prior claims and you have receivables and you said, John I think mentioned...

Yes, we have Wip, AR, and I think Claims. All of which prior to closing are ultimately financial instruments that we will get back in the structure. So, hopefully, the Wip and the AR should turn, I would assume, in the next 60 days to 150 days and then the claims are claims we are just going to have to work through. And we have been working through them in the last six months to a year.

And then is your ability to collect influenced by the sale of the assets?

There are structural mechanisms in place, such as the Wip should be very good, the AR we don't see major problems. We have scrubbed that AR very, very good, obviously, it is the construction industry. The claims are out there. The claims have been out there. We have ultimately the responsibility and we make the investment decision to how to go after those.

There are two especially big ones. One of which we feel very, very good about. The other one we think it will be a negotiation. But ultimately, the total collections from all of those assets will proceed or hold onto the book value which we had booked it after our write down. We think we should do OK.

Yes. And there are mechanisms in the sale contract that allow us to be able to execute those claims and collect that WHIP and AR and work with the buyer and...

Work with the buyer and even though we sold those assets we have the financial instrument based on the fact that we do have an ability to influence how we collect those.

And those two large claims have been out there now, I think, multiple years. Can we button all this up by the end of December?

You it is our goal. We have a remediation on one in three to four weeks depending on the level of discount we want to take, I certainly can button one up.

The other one is with a governmental agency. This one I actually think is a very strongly, it is a good claim. But it is tied up in a subcontractor's work that they did and before we get paid that has to be resolved. So there is some complication but all indications from the city agency in New York on that one is we have done very, very good work. They are not really disputing our work whether it is poorly done, the work we have done. So I feel very strongly about that one.

The other one is with a private contractor for work we did in New York City. That one is going to be a slug fest unless we come to a mediation and get comfortable.

OK and then with the exit of the business, what is being done on the cost reduction. Both visually and on the corporate side to rightsize the business for that exit.

Yes, right now we probably have one or two people full time on the demolition size helping us to collect. And then we have a couple of project managers on a consulting basis as we need them to help us document our claims aspect. And that is all from an operating perspective we have going forward on the demolition segment.

From our corporate overhead we have switched people to our ERP. Our ERP implementation which we knew as opposed to hiring people to work on that or hire consultants, we have taken some of our staff functions to work on that. We also have done a nice job of starting to manage down some of our litigation costs, but that will take really the third and fourth quarter before we see demonstrable take down in that.

But we are watching all of our costs very closely and by the sale of NASDI we did get the vast majority of people. The people they didn't take we laid off at the end of April.

At corporate there were no layoffs still?

We transferred people to an ERP where we had anticipated otherwise having to hire them.

Right. So we had them working on the ERP as well as the segment that was left. The Environmental Remediation is growing. So we wanted to ensure we are supporting them as well.

If you really look at our base people we transferred that NASDI into a remediation revenue. We did let go of one attorney who worked specifically for our demolition business. Worked in corporate. So we out placed him and he found a job very quickly, which was great. So we did outplace him associated with the sale.

OK and then this Middle East project that is large that you are talking about. What is the timing of that and what is your confidence level. The Middle East has been a tough market for your guys and I get the fact that you think you are a winner at work and then it is taken back away and it is not easy to move the equipment around.

Right the project that we were low bid that ultimately got withdrawn, we were joint venture with one of the international dredging companies and it was over a $200 million project. Over $100 million with us. We were low bid, they kept it open and so it is hard for us to dedicate that equipment to something else.

This other project is a project that could get going in two or three weeks. It is back in the Minister of Finance. The [Tender] Board has approved again awarding this to Great Lakes. It would be a variation order on an open contract we have. So if the Ministry of Finance does not try to sell this project to someone else, i.e. the same government in the Middle East that funded the other job, we can get going.

There is a time constraint on getting this project done. It is a land reclamation which actually is going to put new manufacturing facility [the Mondelez] in Bahrain and the first segment they promised them the land, I think sometime before the end of the year. That is why we have a level of comfort that we can execute on that that the other people can't.

I went to Bahrain this weekend, spent time, we talked to our Ambassador and his team. Ambassador left Thursday night, we actually tried to talk to the Crown Prince but he was busy, but these things aren't done until you get them.

What is the plan B, John?

Plan B is, I think we are on Plan C now just to be fair. Plan A was the first project, Plan B is Mondelez. There are some other projects coming out to bid, there are some subcontract work. We are talking to some of our competitors to use some of our equipment. We will probably go back to the other dredging company that was awarded that project and see if we can sell some of our equipment to them for a period of time.

We are bidding some work in Mozambique. We are looking plenty of places and honestly the midterm bidding opportunity is very nice for some of this international work. There has been some big uptick. But Plan B is an important project for us to get. It takes a good portion of our fleet and keeps them busy for the next 300 days to 400 days if we get that project.

We night see something as early...you put out a release on this that it would be later this month.

That would be our hope. Time is waning for them to get this and to meet any commitments they would have for the manufacturer, Mondeleze for getting that land so that they can build according to their schedules.

Thank you.

Yes.

Thank you our next question comes from the line of [Paul Betts] from BB&T Capital Markets, your line is open.

Hello, thank you. Sorry if I missed this. Could you give the operating income breakdown between Dredging and Remediation group?

Yes, I believe I did and let me just pull out my cheat sheet. So the operating income for Dredging for 2014 was $7.4 million. Operating income for Environmental and Remediation was a operating loss of $4.5 million.

Could I have that for last year as well?

Sure. Dredging is $19 million for 2013 for the first quarter. And Environmental and Remediation was essentially the same as this year a negative $4.5 million.

OK, thank you very much.

Thank you and at this time I am not showing any further questions. I would like to turn the call back over to Mary Morrissey for any closing remarks.

Just that we appreciate the support of our shareholders, employees and business partners and we thank you for joining us in this discussions this morning about the important development and initiatives in our business. We look forward to speaking with you during our next earnings discussion in August. Thank you.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program and you may all disconnect. Everyone have a great day.