I've been trying to get to the bottom of the resignations and volatility in share price in Great Lakes Dredge and Docks ($GLDD), as the shit hit the fan this morning, sending shares down another 20% to $4.00 per share. This places shares down 50% for the year on huge volume for this stock.
It looks like you have an exodus of longtime shareholders and internal board members, and it still remains unclear why this is happening. I believe it has to do with the company falling short of revenue numbers, but this series of events seems like overly drastic action for simple revenue misses.
I put a call to Mary Morrissey, listed as the internal IR person at the company, and look forward to hearing back from her. Mary, call me! I've followed this company for more than a decade, and written many articles over the years, and I am totally perplexed by the recent action.
Keep in mind, this company has been around since 1890, and has offered great services to customers while achieving operating margins, but something is amiss, and we will get to the bottom of it. Below is some information the company put out in recent days:
The company is announcing its withdrawal of previously announced Adjusted EBITDA guidance for the year ending December 31, 2015 due to unanticipated project losses, delays and lower than expected new business in the environmental and remediation segment during the third quarter, and continued uncertainties in the segment. The company does not intend to provide Adjusted EBITDA guidance going forward for the year ending December 31, 2015. Greater detail on the third quarter results will be provided in the upcoming earnings release and investor call.
The company reported the following changes to the Board of Directors: The Board elected Robert Uhler as a director on its Board of Directors, effective immediately. Mr. Uhler is President and Owner of The Uhler Group, a privately held strategy and marketing firm that assists companies with successful execution of strategic objectives.
Earlier this week, Nathan D. Leight tendered his resignation as director and Chairman of the Board and Denise E. Dickins tendered her resignation as director and Chair of the Audit Committee of the company, in each case effective as of October 13, 2015. The company thanks both Mr. Leight and Ms. Dickins for their many contributions to the company, and in particular is grateful for Mr. Leight's leadership to the Board since becoming Chairman in 2011.
The Board appointed current director Major General (Ret.) Michael J. Walsh as Chairman of the Board, effective immediately.
I am reaching out to Great Lakes Dredge and Dock to assist shareholders and value buyers who need more information. The company is the largest provider of dredging services in the United States and the only US dredging company with significant international operations. The company is also a significant provider of environmental and remediation services on land and water. The company employs civil, ocean and mechanical engineering staff in its estimating, production and project management functions. Great Lakes also owns and operates the largest and most diverse fleet in the US dredging industry, comprised of over 200 specialized vessels.
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