Profile: Great Lakes Dredge & Dock Corporation (GLDD.O)

Great Lakes Dredge & Dock Corporation (Great Lakes) is a provider of dredging services in the United States. The Company is engaged in the business of marine construction, primarily dredging, and commercial and industrial demolition services. Great Lakes operates in two segments: dredging and demolition. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Great Lakes’ primary dredging customers are domestic and foreign government agencies, as well as private entities, and its primary demolition customers are general contractors, corporations that commission projects, nonprofit institutions, such as universities and hospitals, and local government and municipal agencies. On April 30, 2008 the Company acquired North American Site Developers, Inc. (NASDI). On January 1, 2009, the Company acquired Yankee Environmental Services (Yankee).

Dredging Operations

The Company’s fleet includes 14 dredges, 22 material transportation barges, two drillboats and numerous other specialized support vessels. The Company has 12 dredges and several other specialized support vessels located in the Middle East. The Company’s domestic dredging operations comprise various dredging activities in the United States, including capital dredging, beach nourishment and maintenance dredging. Capital dredging projects are primarily port expansion projects, which involve the deepening of channels to allow access by larger, deeper draft ships, and the providing of land fill for building additional port facilities. Capital projects also include other land reclamations, trench digging for pipes, tunnels and cables, and other dredging related to the construction of breakwaters, jetties, canals and other marine structures.

Beach nourishment projects involve moving sand from the ocean floor to shoreline locations when erosion has progressed to a stage that threatens substantial shoreline assets. Beach nourishment is primarily for shore protection but also safeguards shoreline real estate and tourism. Maintenance dredging consists of the re-dredging of previously deepened waterways and harbors to remove silt, sand and other accumulated sediments.

Foreign capital projects typically relate to land reclamations, channel deepening and port infrastructure development. Great Lakes targets international opportunities that are suited to its equipment. Great Lakes has performed dredging work in the Middle East, Africa, India, Mexico and Central and South America. Great Lakes has focused its efforts on the opportunities in the Middle East.

Demolition Operations

The majority of NASDI's work is performed in the New England area. NASDI's core business is exterior and interior demolition. Exterior demolition involves the complete dismantling and demolition of structures and foundations. Interior demolition involves removing specific structures within a building. Other business activities include site development and the removal of asbestos, and other hazardous materials. NASDI contracts hazardous material removal to insured subcontractors and does not take possession of hazardous materials, which remain the property of the site owner.