Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Gulf Island Fabrication, Inc. | |
Entity Central Index Key | 0001031623 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 16,287,469 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-34279 | |
Entity Tax Identification Number | 72-1147390 | |
Entity Address, Address Line One | 2170 Buckthorne Place | |
Entity Address, Address Line Two | Suite 420 | |
Entity Address, City or Town | The woodlands | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77380 | |
City Area Code | 713 | |
Local Phone Number | 714-6100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | LA | |
Trading Symbol | Gifi | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 23,858 | $ 33,221 | |
Restricted cash, current | 1,197 | 1,603 | |
Short-term investments | 15,165 | 9,905 | |
Contract receivables and retainage, net | 36,315 | 29,427 | |
Contract assets | [1],[2] | 6,662 | 4,839 |
Prepaid expenses and other assets | 5,015 | 6,475 | |
Inventory | 2,636 | 1,599 | |
Total current assets | 90,848 | 87,069 | |
Property, plant and equipment, net | 29,477 | 31,154 | |
Goodwill | 2,217 | 2,217 | |
Other intangibles, net | 771 | 842 | |
Other noncurrent assets | 13,180 | 13,584 | |
Total assets | 136,493 | 134,866 | |
Current liabilities: | |||
Accounts payable | 16,850 | 8,310 | |
Contract liabilities | [3],[4],[5] | 3,065 | 8,196 |
Accrued expenses and other liabilities | 11,334 | 14,283 | |
Total current liabilities | 31,249 | 30,789 | |
Other noncurrent liabilities | 1,038 | 1,453 | |
Total liabilities | 32,287 | 32,242 | |
Shareholders’ equity: | |||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | |||
Common stock, no par value, 30,000 shares authorized, 16,287 shares issued and outstanding at June 30, 2023 and 15,973 at December 31, 2022 | 11,638 | 11,591 | |
Additional paid-in capital | 107,796 | 107,372 | |
Accumulated deficit | (15,228) | (16,339) | |
Total shareholders’ equity | 104,206 | 102,624 | |
Total liabilities and shareholders’ equity | $ 136,493 | $ 134,866 | |
[1] Contract assets at June 30, 2023 and December 31, 2022, excluded $ 3.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase in contract assets compared to December 31, 2022, was primarily due to increased unbilled positions on various projects for our Fabrication Division, offset partially by decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. Contract liabilities at June 30, 2023 and December 31, 2022, includes accrued contract losses of $ 0.6 million and $ 1.6 million, respectively. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Revenue recognized during the three months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at March 31, 2023 and 2022 was $ 2.3 million and $ 0.7 million, respectively . Revenue recognized during the six months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.1 million and $ 2.5 million, respectively . The decrease in contract liabilities compared to December 31, 2022, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses on our forty-vehicle ferry projects for our Shipyard Division. See “Future Performance Obligations” above for further discussion of the project cancellation. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 16,287,000 | 15,973,000 |
Common stock, shares outstanding (in shares) | 16,287,000 | 15,973,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 39,326 | $ 35,902 | $ 101,494 | $ 64,588 |
Cost of revenue | 34,845 | 34,230 | 91,979 | 63,336 |
Gross profit | 4,481 | 1,672 | 9,515 | 1,252 |
General and administrative expense | 3,736 | 4,345 | 8,803 | 8,455 |
Other (income) expense, net | (4) | (3,206) | (365) | (2,754) |
Operating income (loss) | 749 | 533 | 1,077 | (4,449) |
Interest (expense) income, net | 340 | (18) | 660 | (58) |
Income (loss) before income taxes | 1,089 | 515 | 1,737 | (4,507) |
Income tax (expense) benefit | 13 | 13 | 6 | 8 |
Net income (loss) | $ 1,102 | $ 528 | $ 1,743 | $ (4,499) |
Per share data: | ||||
Basic income (loss) per share | $ 0.07 | $ 0.03 | $ 0.11 | $ (0.29) |
Diluted income (loss) per share | $ 0.07 | $ 0.03 | $ 0.11 | $ (0.29) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Adoption of ASU 2016-13 | After Adoption of ASU 2016-13 | Common Stock | Common Stock After Adoption of ASU 2016-13 | Additional Paid-In Capital | Additional Paid-In Capital After Adoption of ASU 2016-13 | Accumulated Deficit | Accumulated Deficit Adoption of ASU 2016-13 | Accumulated Deficit After Adoption of ASU 2016-13 |
Beginning Balance at Dec. 31, 2021 | $ 103,908 | $ 11,384 | $ 105,511 | $ (12,987) | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 15,622 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (5,027) | (5,027) | ||||||||
Vesting of restricted stock | (59) | $ (6) | (53) | |||||||
Vesting of restricted stock (in shares) | 153 | |||||||||
Stock-based compensation expense | 571 | $ 57 | 514 | |||||||
Ending Balance at Mar. 31, 2022 | 99,393 | $ 11,435 | 105,972 | (18,014) | ||||||
Ending Balance (in shares) at Mar. 31, 2022 | 15,775 | |||||||||
Beginning Balance at Dec. 31, 2021 | 103,908 | $ 11,384 | 105,511 | (12,987) | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 15,622 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (4,499) | |||||||||
Ending Balance at Jun. 30, 2022 | 100,348 | $ 11,478 | 106,356 | (17,486) | ||||||
Ending Balance (in shares) at Jun. 30, 2022 | 15,923 | |||||||||
Beginning Balance at Mar. 31, 2022 | 99,393 | $ 11,435 | 105,972 | (18,014) | ||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 15,775 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 528 | 528 | ||||||||
Vesting of restricted stock | (62) | $ (6) | (56) | |||||||
Vesting of restricted stock (in shares) | 148 | |||||||||
Stock-based compensation expense | 489 | $ 49 | 440 | |||||||
Ending Balance at Jun. 30, 2022 | 100,348 | $ 11,478 | 106,356 | (17,486) | ||||||
Ending Balance (in shares) at Jun. 30, 2022 | 15,923 | |||||||||
Beginning Balance at Dec. 31, 2022 | $ 102,624 | $ (632) | $ 101,992 | $ 11,591 | $ 11,591 | 107,372 | $ 107,372 | (16,339) | $ (632) | $ (16,971) |
Beginning Balance (in shares) at Dec. 31, 2022 | 15,973 | 15,973 | 15,973 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | $ 641 | 641 | ||||||||
Vesting of restricted stock | (181) | $ (18) | (163) | |||||||
Vesting of restricted stock (in shares) | 82 | |||||||||
Stock-based compensation expense | 509 | $ 51 | 458 | |||||||
Ending Balance at Mar. 31, 2023 | 102,961 | $ 11,624 | 107,667 | (16,330) | ||||||
Ending Balance (in shares) at Mar. 31, 2023 | 16,055 | |||||||||
Beginning Balance at Dec. 31, 2022 | $ 102,624 | $ (632) | $ 101,992 | $ 11,591 | $ 11,591 | 107,372 | $ 107,372 | (16,339) | $ (632) | $ (16,971) |
Beginning Balance (in shares) at Dec. 31, 2022 | 15,973 | 15,973 | 15,973 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | $ 1,743 | |||||||||
Ending Balance at Jun. 30, 2023 | $ 104,206 | $ 11,638 | 107,796 | (15,228) | ||||||
Ending Balance (in shares) at Jun. 30, 2023 | 16,287 | 16,287 | ||||||||
Beginning Balance at Mar. 31, 2023 | $ 102,961 | $ 11,624 | 107,667 | (16,330) | ||||||
Beginning Balance (in shares) at Mar. 31, 2023 | 16,055 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,102 | 1,102 | ||||||||
Vesting of restricted stock | (301) | $ (30) | (271) | |||||||
Vesting of restricted stock (in shares) | 232 | |||||||||
Stock-based compensation expense | 444 | $ 44 | 400 | |||||||
Ending Balance at Jun. 30, 2023 | $ 104,206 | $ 11,638 | $ 107,796 | $ (15,228) | ||||||
Ending Balance (in shares) at Jun. 30, 2023 | 16,287 | 16,287 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 1,743 | $ (4,499) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 2,725 | 2,524 |
Allowance for doubtful accounts and credit losses | (200) | |
Gain on sale or disposal of fixed assets, net | (33) | (42) |
Gain on insurance recoveries | (245) | |
Stock-based compensation expense | 953 | 1,060 |
Changes in operating assets and liabilities: | ||
Contract receivables and retainage, net | (7,110) | (10,830) |
Contract assets | (1,823) | (426) |
Prepaid expenses, inventory and other current assets | 955 | (430) |
Accounts payable | 8,742 | 2,525 |
Contract liabilities | (5,131) | (3,339) |
Accrued expenses and other current liabilities | (2,393) | (72) |
Noncurrent assets and liabilities, net | (376) | (346) |
Net cash used in operating activities | (2,193) | (13,875) |
Cash flows from investing activities: | ||
Capital expenditures | (1,056) | (474) |
Proceeds from Shipyard Transaction | 886 | |
Proceeds from sale of property and equipment | 106 | 63 |
Recoveries from insurance claims | 245 | |
Purchases of short-term investments | (15,260) | |
Maturities of short-term investments | 10,000 | |
Net cash provided by (used in) investing activities | (5,965) | 475 |
Cash flows from financing activities: | ||
Payments on Insurance Finance Arrangements | (1,129) | (248) |
Tax payments for vested stock withholdings | (482) | (121) |
Net cash used in financing activities | (1,611) | (369) |
Net decrease in cash, cash equivalents and restricted cash | (9,769) | (13,769) |
Cash, cash equivalents and restricted cash, beginning of period | 34,824 | 54,589 |
Cash, cash equivalents and restricted cash, end of period | $ 25,055 | $ 40,820 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” “the Company,” “we,” “us” and “our”) is a leading fabricator of complex steel structures and modules and a provider of specialty services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction and staffing services to the industrial and energy sectors. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in The Woodlands, Texas and our primary operating facilities are located in Houma, Louisiana (“Houma Facilities”). On April 19, 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”) and intend to wind down our remaining Shipyard Division operations (which exclude the contracts that are subject to our MPSV Litigation) by the third quarter 2023 (previously the second quarter 2023, but was delayed and is subject to the potential schedule impacts discussed in Note 2). See Note 4 for further discussion of our MPSV Litigation. On December 1, 2021, we acquired a services and industrial staffing business (“DSS Acquisition”), which increased our skilled workforce, further diversified our customer base and expanded our service offerings for our Services Division. Basis of Presentation The accompanying unaudited Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Our Consolidated Balance Sheet (“Balance Sheet”) at December 31, 2022, has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to our 2022 Financial Statements. Operating Cycle The duration of our contracts vary, but may extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current, which may not be received or paid within the next twelve months, include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. Use of Estimates General – The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with: • revenue recognition for our long-term contracts, including application of the percentage-of-completion method (“POC"), estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims (including amounts arising from disputes with customers) and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts and credit losses; • liabilities related to self-insurance programs; • costs and insurance recoveries associated with damage to our Houma Facilities resulting from Hurricane Ida discussed further in Note 2; • the impacts of volatile oil and gas prices and macroeconomic conditions on our business, estimates and judgments as discussed further below; and • assessing the probability of losses related to litigation matters. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. Oil and Gas Price Volatility and Macroeconomic Conditions – Since 2008, the prices of oil and gas have experienced significant volatility, including depressed prices over extended periods, resulting in reductions in capital spending and drilling activities from our traditional offshore oil and gas customer base. Consequently, our operating results and cash flows were negatively impacted as we experienced reductions in revenue, lower margins due to competitive pricing and under-utilization of our operating facilities and resources. Beginning in 2020, the global coronavirus pandemic (“COVID-19”) added another layer of pressure and uncertainty on oil and gas prices (with oil prices reaching a twenty-year low and gas prices reaching a four-year low), which further negatively impacted certain of our end markets during the first quarter 2022. This volatility in oil and gas prices was compounded by Russia’s invasion of Ukraine in February 2022 (and the related European energy crisis), and the U.S. and other countries actions in response (with oil prices reaching an eight-year high and gas prices reaching a fourteen-year high), which positively impacted certain of our end markets. While oil and gas prices have somewhat stabilized, the duration of such stability is uncertain and difficult to predict. In addition, global economic factors that are beyond our control, have and could continue to impact our operations, including, but are not limited to, supply chain disruptions (including global shipping and logistics challenges that began in 2020), inflationary pressures, economic slowdowns and recessions, bank failures, natural disasters, public health crises (such as COVID-19), and geopolitical conflicts (such as the conflict in Ukraine). The ultimate business and financial impacts of oil and gas price volatility and macroeconomic conditions on our business and results of operations continues to be uncertain, but the impacts have included, or may continue to include, among other things, reduced bidding activity; suspension or termination of backlog; deterioration of customer financial condition; and unanticipated project costs and schedule delays due to supply chain disruptions, labor and material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, increased safety incidents, lack of performance by subcontractors and suppliers, and contract disputes. We continue to monitor the impacts of oil and gas price volatility and macroeconomic conditions on our operations, and our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report. Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities in periods in which income is reported. See Note 5 for calculations of our basic and diluted income (loss) per share. Cash Equivalents, Restricted Cash and Short-Term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. We hold substantially all of our cash deposits with Hancock Whitney Bank (“Whitney Bank”). Restricted Cash – At June 30, 2023 and December 31, 2022, we had $ 1.2 million and $ 1.6 million of restricted cash, respectively as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Whitney Bank. Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current , and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent . See Note 3 for further discussion of our cash security requirements under our LC Facility. Short-term Investments – We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. At June 30, 2023 and December 31, 2022, our short-term investments included U.S. Treasuries with original maturities of four and six months, respectively. We intend to hold these investments until maturity and it is not more likely than not that we will be required to sell the investments prior to their maturity. The investments are stated at amortized costs, which approximates fair value due to their near-term maturities. All short-term investments are traded on active markets with quoted prices and represent Level 1 fair value measurements. Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. Allowance for Doubtful Accounts and Credit Losses As further discussed under “ New Accounting Standards” below, we adopted the new accounting standard for measuring credit losses effective January 1, 2023. In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We provide an allowance for credit losses and routinely review individual contract receivable balances and other financial assets for collectability and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, company-specific credit ratings, historical company-specific uncollectable amounts and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts and credit losses. Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. Depending on the terms of the award, we use the straight-line or graded vesting methods to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Consolidated Statements of Operations (“Statement of Operations”). Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Consolidated Statements of Cash Flows (“Statement of Cash Flows”). Depreciation and Amortization Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years . Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Intangible assets are amortized on a straight-line basis over seven years and amortization expense is reflected within general and administrative expense on our Statement of Operations. Long-Lived Assets Goodwill – Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment or when other actions require an impairment assessment (such as a change in reporting units). Our Services Division represents our only reporting unit with goodwill. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. To determine the fair value of our reporting unit and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profile of our reporting unit into our valuation model. We had no indicators of impairment during the six months ended June 30, 2023. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the period of impairment. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets), and finite-lived intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. We had no indicators of impairment during the six months ended June 30, 2023. Leases We record a right-of-use asset and an offsetting lease liability on our Balance Sheet equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining the impairments of inventory, goodwill and long-lived assets are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. Revenue Recognition General – Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate, time and materials (“T&M”) and cost-reimbursable, or a combination thereof. Our contracts primarily relate to the fabrication of steel structures and modules, and certain service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and the customer has obtained control of a promised asset. Long-term Contracts Satisfied Over Time – Revenue for our long-term contracts is recognized using the POC method based on contract costs incurred to date compared to total estimated contract costs (an input method). Fixed-price contracts, or contracts with a more significant fixed-price component, generally provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Unit-rate, T&M and cost-reimbursable contracts generally have more variability in the scope of work and provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of when revenue is recognized. Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit or loss for contracts accounted for using the POC method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and six months ended June 30, 2023 and 2022. Short-term Contracts and Contracts Satisfied at a Point In Time – Revenue for our short-term contracts (which includes revenue associated with our master services arrangements) and contracts that do not satisfy the criteria for revenue recognition over time is recognized when the work is performed or when control of the asset is transferred, the related costs are incurred and collection is reasonably assured. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Variable Consideration – Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims (including amounts arising from disputes with customers), incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. Variable consideration can also include revenue associated with work performed on a unit-rate, T&M or cost-reimbursable basis that is recognized using the POC method. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of our unapproved change orders, claims, incentives and liquidated damages. Additional Disclosures – Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At June 30, 2023 and December 31, 2022 , we had no deferred pre-contract costs. Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts and credit losses, gains or losses associated with the sale or disposition of property and equipment, and income or expense associated with certain nonrecurring items. Income Taxes Income taxes have been provided for using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are anticipated to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Our effective tax rate differs from our statutory rate for the three and six months ended June 30, 2023, and three months ended June 30, 2022, as no federal income tax expense was recorded for our income as it was fully offset by the reversal of valuation allowance on our net deferred tax assets, and for the six months ended June 30, 2022, as no federal income tax benefit was recorded for our loss as a full valuation allowance was recorded against our net deferred tax assets generated during the period. Income taxes recorded for the three and six months ended June 30, 2023 and 2022 relate to state income taxes. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. New Accounting Standards Financial Instruments – In the first quarter 2023, we adopted ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way we evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, we are required to use a new forward-looking “expected loss” model to evaluate impairment, which includes considering a broader range of information to estimate expected credit losses and may potentially result in earlier recognition of allowances for losses. The new accounting standard was adopted using the cumulative-effect transition method with any cumulative-effect adjustment being recorded to accumulated deficit on January 1, 2023. Upon adoption, we recorded a $ 0.6 million increase to beginning accumulated deficit, a $ 0.4 million decrease to contract receivables and retainage, net and contract assets, and a $ 0.2 million decrease to other noncurrent assets, on our Balance Sheet. Adoption of the new standard did not have a material effect on our results of operations or related disclosures. Business Combinations – In the first quarter 2023, we adopted ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which changes the way companies measure contract assets and contract liabilities from contracts with customers acquired in a business combination and creates an exception to the general recognition and measurement principle of ASC 805. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 6 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 2. REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS As discussed in Note 1, we recognize revenue from our contracts in accordance with Topic 606. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our operating segments, disaggregated by contract type and duration, for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 627 $ 13,399 $ 382 $ ( 2 ) $ 14,406 T&M and cost-reimbursable 22,828 1,342 — — 24,170 Other 1,015 — — ( 265 ) 750 Total $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Long-term $ 627 $ 13,508 $ 382 $ ( 2 ) $ 14,515 Short-term 23,843 1,233 — ( 265 ) 24,811 Total $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Three Months Ended June 30, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 962 $ 9,197 $ 2,968 $ ( 5 ) $ 13,122 T&M and cost-reimbursable 20,503 642 — — 21,145 Other 715 1,000 — ( 80 ) 1,635 Total $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Long-term $ 962 $ 10,197 $ 2,968 $ ( 5 ) $ 14,122 Short-term 21,218 642 — ( 80 ) 21,780 Total $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Six Months Ended June 30, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 799 $ 25,588 $ 1,729 $ ( 10 ) $ 28,106 T&M and cost-reimbursable 43,370 28,815 — — 72,185 Other 1,888 — — ( 685 ) 1,203 Total $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Long-term $ 799 $ 52,216 $ 1,729 $ ( 10 ) $ 54,734 Short-term 45,258 2,187 — ( 685 ) 46,760 Total $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Six Months Ended June 30, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 2,571 $ 14,241 $ 5,465 $ ( 6 ) $ 22,271 T&M and cost-reimbursable 38,966 1,215 — — 40,181 Other 1,307 1,000 — ( 171 ) 2,136 Total $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 Long-term $ 2,571 $ 15,241 $ 5,465 $ ( 6 ) $ 23,271 Short-term 40,273 1,215 — ( 171 ) 41,317 Total $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 Future Performance Obligations The following table summarizes our remaining performance obligations, disaggregated by operating segment and contract type, at June 30, 2023 (in thousands): June 30, 2023 Services Fabrication Shipyard Total Fixed-price and unit-rate $ 1,067 $ 7,167 $ 1,194 $ 9,428 T&M and cost-reimbursable (1) — 2,730 — 2,730 Total (2) $ 1,067 $ 9,897 $ 1,194 $ 12,158 (1) In February 2023, we received direction from our customer to suspend all activities on our offshore jackets project for our Fabrication Division, and in July 2023 , the customer cancelled the contract. Accordingly, our performance obligations were reduced by $ 76.1 million to reflect the estimated revenue amount that will not be recognized due to the cancellation. See “Other Operating and Project Matters” below for further discussion of the project cancellation. (2) Based on our current estimates we expect to recognize revenue of approximately $ 11.8 million and $ 0.4 million for the remainder of 2023 and 2024 , respectively, associated with our performance obligations at June 30, 2023. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. Contracts Assets and Liabilities The timing of customer invoicing and recognition of revenue using the POC method may occur at different times. Customer invoicing is generally dependent upon contractual billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or billings when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet, or to the extent we have an unconditional right to the consideration, is reflected as contract receivables on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to contracts that were incomplete at June 30, 2023 and December 31, 2022, is as follows (in thousands): June 30, December 31, 2023 2022 Contract assets (1), (2) $ 6,662 $ 4,839 Contract liabilities (3), (4), (5) ( 3,065 ) ( 8,196 ) Contracts in progress, net $ 3,597 $ ( 3,357 ) (1) The increase in contract assets compared to December 31, 2022, was primarily due to increased unbilled positions on various projects for our Fabrication Division, offset partially by decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. (2) Contract assets at June 30, 2023 and December 31, 2022, excluded $ 3.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. (3) The decrease in contract liabilities compared to December 31, 2022, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses on our forty-vehicle ferry projects for our Shipyard Division. See “Future Performance Obligations” above for further discussion of the project cancellation. (4) Revenue recognized during the three months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at March 31, 2023 and 2022 was $ 2.3 million and $ 0.7 million, respectively . Revenue recognized during the six months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.1 million and $ 2.5 million, respectively . (5) Contract liabilities at June 30, 2023 and December 31, 2022, includes accrued contract losses of $ 0.6 million and $ 1.6 million, respectively. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Allowance for Doubtful Accounts and Credit Losses Our provision for bad debts and credit losses is included in other (income) expense, net on our Statement of Operations. For the three and six months ended June 30, 2023, we recognized income of $ 0.2 million associated with revisions to our allowance for doubtful accounts and credit losses, and for the three and six months ended June 30, 2022, changes were not significant. Our allowance for doubtful accounts and credit losses at June 30, 2023 was $ 0.4 million, and it was not significant at December 31, 2022 . We recorded a $ 0.6 million increase to beginning accumulated deficit as of January 1, 2023, in connection with our adoption of ASU 2016-13. We had no significant write-offs or recoveries of previously recorded bad debts during the three or six months ended June 30, 2023 or 2022. See “New Accounting Standards” in Note 1 for further discussion of our adoption of ASU 2016-13. Variable Consideration For the three and six months ended June 30, 2023 and 2022, we had no material amounts in revenue related to unapproved change orders, claims or incentives. However, at June 30, 2023 and December 31, 2022, certain active projects within our Shipyard Division reflected a reduction to our estimated contract price for liquidated damages of $ 1.7 million and $ 1.4 million, respectively. Changes in Project Estimates We determine the impact of changes in estimated margins on projects for a given period by calculating the amount of revenue recognized in the period that would have been recognized in a prior period had such estimated margins been forecasted in the prior period. The total impact of changes in estimated margins for a project as disclosed on a quarterly basis may be different from the applicable year-to-date impact due to the application of the POC method and the changing progress of the project at each period end. Such impacts may also be different when a project is commenced and completed within the applicable year-to-date period but spans multiple quarters. For the three and six months ended June 30, 2023, significant changes in estimated margins on projects negatively impacted operating results for our Shipyard Division by $ 0.8 million. For the three and six months ended June 30, 2022, individual projects with significant changes in estimated margins did not have a material net impact on our operating results. The changes in estimates for the 2023 periods were associated with the following: Shipyard Division • Seventy-Vehicle Ferry Project – For each of the three and six months ended June 30, 2023, our operating results were negatively impacted by $ 0.6 million for our seventy-vehicle ferry project, resulting primarily from increased subcontracted services and duration related costs due to extensions of schedule, including forecast liquidated damages. The impacts were primarily due to subcontractor delays. We completed construction of the ferry in the second quarter 2023; however, in connection with the delivery and commissioning of the vessel, corrosion of the propeller blades was identified and replacement of the propeller blades may ultimately be required. Based on our preliminary estimates, we believe the incremental forecast costs associated with replacement of the propeller blades could range from $ 1.5 million to $ 2.0 million, with the schedule for replacement and total cost being highly dependent on the timing of receipt of the propeller blades. Additional schedule related costs could be incurred if the customer refuses to take possession of the vessel until after the propeller blade replacement. We believe the customer is responsible for the cost of the propeller blade replacement given that the customer specified the materials and the equipment manufacturers required to be used for the propulsion system and the cathodic protection to be used to mitigate corrosion . Accordingly, our forecasts at June 30, 2023 do not reflect the estimated costs to replace the propeller blades or any potential schedule related costs. The customer has not accepted responsibility for the replacement of the propeller blades and we are having ongoing correspondence with the customer regarding a path forward for the vessel. At June 30, 2023, the vessel was substantially complete, exclusive of the potential replacement of the propeller blades. The project was in a loss position at June 30, 2023 and our reserve for estimated losses was $ 0.1 million. If future subcontractor availability or costs differ from our current estimates or we are unable to achieve our progress estimates, our schedule is further extended or we incur additional liquidated damages, or we experience challenges during sea trials or commissioning of the vessel, or we are unable to recover the costs of the propeller blades replacement or schedule related impacts from our customer, the project would experience further delays and losses. • Forty-Vehicle Ferry Projects – During the first quarter 2023, we received conditional customer acceptance of one of our two forty-vehicle ferries that were under construction, and during the second quarter 2023, we received final customer acceptance of the vessel. For each of the three and six months ended June 30, 2023, our operating results were negatively impacted by $ 0.2 million for our remaining forty-vehicle ferry project, resulting primarily from increased subcontracted services and duration related costs due to extensions of schedule, including forecast liquidated damages. The impacts were primarily due to delays in the receipt of certain equipment and subcontractor delays. As discussed in our 2022 Financial Statements, we have experienced rework, construction and commissioning challenges on the two ferries, resulting in forecast cost increases and liquidated damages and the need to fabricate a new hull for the vessel that is still under construction. Accordingly, during 2021 we submitted claims to our customer, and subsequently filed a lawsuit, to extend our project schedules and recover the cost impacts of the design deficiencies. The customer denied all liability. Further, during the fourth quarter 2022 and early 2023, we received correspondence from our customer indicating that the new hull for the remaining ferry under construction is exhibiting deformation issues that are potentially beyond the customer’s desired tolerance levels. Our subsequent evaluation does not support the customer’s conclusions and we are continuing construction of the vessel as designed. At June 30, 2023, the remaining vessel under construction was approximately 95 % complete and is forecast to be completed in the third quarter 2023 (previously the second quarter 2023, but was delayed due to the aforementioned impacts). The project was in a loss position at June 30, 2023 and our reserve for estimated losses wa s $ 0.5 million. Our forecast costs and scheduled completion date for the remaining vessel are based on the current vessel design and reflect our best estimates; however, such estimates may be impacted by any future challenges with the vessel design deficiencies, including the final resolution of the aforementioned design and deformation issues in dispute. If future craft labor productivity or subcontractor availability or costs differ from our current estimates or we are unable to achieve our progress estimates, our schedule is further extended or we incur additional liquidated damages, we experience challenges during sea trials, commissioning or delivery of the remaining vessel, or other challenges associated with the design deficiencies, including unanticipated warranty costs for either vessel, and are unable to recover associated costs from our customer, or the customer rejects delivery and/or final acceptance of the remaining vessel due to the design dispute, the project would experience further delays and losses. Our forecasts at June 30, 2023 do not reflect potential future benefits, if any, from the favorable resolution of the aforementioned lawsuit and we can provide no assurance that we will be successful recovering previously incurred costs. Other Operating and Project Matters Hurricane Ida – On August 29, 2021 , Hurricane Ida made landfall near Houma, Louisiana as a high-end Category 4 hurricane, with high winds and heavy rains causing damage to buildings and equipment at our Houma Facilities and resulting in significant debris throughout the facility. Our insurance coverages in effect at the time of the storm generally specify coverage amounts for each of our buildings (including contents) and major equipment. During the six months ended June 30, 2023 and 2022, we received insurance payments of $ 0.7 million and $ 7.0 million, respectively, from our insurance carriers associated with interruptions to our operations and damage to buildings and equipment. In addition, we have received payments from our insurance carriers during other periods subsequent to the storm associated with interruptions to our operations and damage to buildings and equipment. Such payments are nonrefundable, and with respect to our buildings, represent the insurance carriers’ estimate of the damage to each building based on the estimated depreciated value of such buildings plus repair costs incurred by us in excess of such estimates for certain buildings. To the extent we incur further repair costs for a building in excess of the amounts received, we may receive additional insurance proceeds up to the limits of our insurance coverage for such building. The classification of insurance proceeds within our Statement of Cash Flows is based on our use or intended use of the proceeds. Proceeds used or intended to be used for repairs that are not deemed to be capital in nature, and proceeds associated with interruptions to our operations, are reflected within operating activities. Proceeds used or intended to be used for repairs that are deemed capital in nature, or proceeds in excess of anticipated repair costs, are reflected within investing activities. The timing of payments from our insurance carriers have, and may continue to, differ from when we incur the applicable repair and cleanup costs, and accordingly, we have accounted for such differences in timing as follows: • To the extent we incurred repair costs in excess of insurance proceeds received to date, we recorded an insurance receivable when we believe such amounts are probable of recovery under our insurance policies. • To the extent we determined that damage to an asset resulted in a complete loss, we recorded an insurance receivable up to the impairments recognized when we believe such amounts are probable of recovery under our insurance policies. • To the extent proceeds received exceeded repair costs incurred to date, we recorded an insurance gain as we do not have an obligation to perform further repair activities. Charges will be recorded in future periods to the extent such proceeds received are used for future repair activities that are not deemed to be capital in nature. • Insurance deductibles, clean-up costs and uninsured losses have been expensed. Based on the above, during the six months ended June 30, 2023, and three and six months ended June 30, 2022, we recorded gains of $ 0.2 million (related to interruptions to our operations), $ 3.4 million and $ 3.1 million , respectively, related to the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida. The gains are included in other (income) expense, net on our Statement of Operations and are reflected within our Fabrication Division. I n addition, at June 30, 2023, we had total insurance receivables on our Balance Sheet of $ 1.3 million. We are continuing to assess our restoration plans and repair efforts are ongoing. We expect to incur future repair costs of approximately $ 0.5 million to $ 1.0 million associated with previously received insurance payments for certain buildings and equipment. Further, we expect to incur future repair costs in excess of previously received insurance payments for certain buildings and equipment; however, we believe that recovery of insurance proceeds for such costs is probable. In addition to damage to our Houma Facilities, the storm resulted in damage to one of our forty-vehicle ferry projects, the multi-purpose supply vessels (“MPSVs”) and associated equipment that are in our possession and subject to our MPSV Litigation, and certain bulkheads where the vessels were moored. We are continuing to assess the extent of the storm damage and are evaluating the extent to which any damage was the result of third-party vessels that broke free from their mooring during the storm and struck the ferry, MPSVs and bulkheads. During each of the three and six months ended June 30, 2023, we recorded charges of $ 0.3 million, and during each of the three and six months ended June 30, 2022, we recorded charges of $ 0.2 million, associated with damage previously caused by Hurricane Ida. See Note 4 for further discussion of our MPSV Litigation. Offshore Jackets Project – As discussed above, in February 2023, we received direction from our customer to suspend all activities on our offshore jackets project for our Fabrication Division, and in July 2023, the customer cancelled the contract. At June 30, 2023, we had $ 11.3 million of accounts receivable on our Balance Sheet related to the project, primarily associated with obligations incurred by us for procurement activities. Subsequent to June 30, 2023, we received payments o f $ 1.0 million related to such accounts receivable and we have received a payment guarantee bond as security for the remaining accounts receivable amounts. Although such amounts are not in dispute, we have received indications from the customer that we may not receive material additional payments until the end of the third quarter 2023. |
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES AND DEBT | 3. CREDIT FACILITIES AND DEBT LC Facility On May 5, 2023, we amended our letter of credit facility with Whitney Bank (“LC Facility”) to reduce our letters of credit capacity from $ 20.0 million to $ 10.0 million, subject to our cash securitization of the letters of credit, and extend the maturity date to June 30, 2024 . Commitment fees on the unused portion of the LC Facility are 0.4 % per annum and interest on outstanding letters of credit is 1.5 % per annum. At June 30, 2023, we had $ 1.2 million of outstanding letters of credit under the LC Facility. See Note 4 for further discussion of our letters of credit and associated security obligations. Surety Bonds We issue surety bonds in the ordinary course of business to support our projects. At June 30, 2023, we h ad $ 110.9 million of outstanding surety bonds, of which $ 50.0 million relates to our MPSV projects that are subject to our MPSV Litigation, $ 45.6 million relates to our Active Retained Shipyard Contracts, and $ 15.3 million relates to our Fabrication Division contracts and certain of our insurance coverages. See Note 4 for further discussion of our surety bonds and related indemnificatio n obligations and our MPSV Litigation. Insurance Finance Arrangement In connection with the renewal of our property and equipment insurance coverages during 2022, and general liability insurance coverages during the first quarter 2023, we entered into short-term premium finance arrangements (“Insurance Finance Arrangements”). The property and equipment arrangement totaled $ 2.4 million, payable in ten equal monthly installments through March 2023 , with interest at a fixed rate of 4.3 % per annum. The general liability arrangement totaled $ 0.5 million, payable in eight equal monthly installments through August 2023 , with interest at a fixed rate of 6.6 % per annum. We consider the transactions to be non-cash financing activities, with the initial financed amount reflected within accrued expenses and other liabilities, and a corresponding asset reflected within prepaid expenses and other assets, on our Balance Sheet. For the six months ended June 30, 2023 and 2022, we have reflected principal payments of $ 1.1 million and $ 0.2 million , respectively, as a financing activity on our Statement of Cash Flows, and at June 30, 2023, our remaining principal balance was $ 0.1 million. Mortgage Agreement and Restrictive Covenant Agreement In connection with the receipt of a consent for the Shipyard Transaction from one of our Sureties, we entered into a multiple indebtedness mortgage (“Mortgage Agreement”) and a restrictive covenant arrangement (“Restrictive Covenant Agreement”) with such Surety to secure our obligations for our MPSV projects and two forty-vehicle ferry projects. The Mortgage Agreement encumbers all remaining real estate that was not sold in connection with the Shipyard Transaction and includes certain covenants and events of default. Further, the Restrictive Covenant Agreement precludes us from paying dividends or repurchasing shares of our common stock. The Mortgage Agreement and Restrictive Covenant Agreement will terminate when the obligations and liabilities of the Surety associated with the outstanding surety bonds are discharged, or any judgment against us or the Surety arising out of litigation related to such contracts is satisfied by us. See Note 1 for further discussion of the Shipyard Transaction. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 4. COMMITMENTS AND CONTINGENCIES Routine Legal Proceedings We are subject to various routine legal proceedings in the normal conduct of our business, primarily involving commercial disputes and claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these legal proceedings cannot be predicted with certainty, we believe that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on our financial position, results of operations or liquidity. MPSV Litigation On March 19, 2018, our subsidiary, Gulf Island Shipyards, LLC (“GIS”), received termination notices from its customer, Hornbeck Offshore Services, LLC (“Hornbeck”), of the contracts for the construction of two MPSVs. GIS disputed the purported terminations and disagreed with Hornbeck’s reasons for such terminations. After receipt of such notices, GIS ceased all work and the partially completed vessels and associated equipment and materials remain in its possession in Houma, Louisiana. GIS continues to hold first priority security interests and possessory liens against the MPSVs securing the obligations GIS believes it is owed by Hornbeck under the construction contracts. In connection with such purported terminations, Hornbeck also made claims against the performance bonds issued by the Surety in connection with the construction of the vessels, for which the face amount of the bonds total $ 50.0 million (“Performance Bonds”). On October 2, 2018, GIS filed a lawsuit against Hornbeck to enforce its rights and remedies under the applicable construction contracts for the two MPSVs. The lawsuit was filed in the Twenty-Second Judicial District Court for the Parish of St. Tammany, State of Louisiana and is styled Gulf Island Shipyards, LLC v. Hornbeck Offshore Services, LLC, bearing docket number 2018-14861 (“MPSV Litigation”). Hornbeck responded to the lawsuit denying many of GIS’s allegations and asserted a counterclaim against GIS seeking damages. GIS filed a response to the counterclaim denying all of Hornbeck’s claims. Hornbeck subsequently amended its counterclaim to add claims against the Surety and additional claims against GIS. Following previously disclosed developments in the litigation, on November 16, 2022, Hornbeck filed motions for partial summary judgment against GIS seeking the dismissal of GIS’s claim that Hornbeck wrongfully terminated the vessel construction contracts. On January 31, 2023, the trial court granted Hornbeck’s motions. GIS appealed such decision, and on March 2, 2023, the appellate court reversed the trial court’s decision, thereby reinstating GIS’s wrongful termination claim. As a result of the appellate court’s ruling, the trial, previously scheduled to begin on March 6, 2023, was rescheduled to begin on October 16, 2023. On April 3, 2023, Hornbeck filed a writ application with the Louisiana Supreme Court relating to such appellate court decision, and on May 23, 2023, the writ application was denied by the Louisiana Supreme Court. GIS continues to believe that Hornbeck wrongfully terminated the construction contracts and is liable to GIS for damages, including amounts due to GIS for unpaid work. However, Hornbeck is seeking damages against GIS based on Hornbeck’s estimates of the cost to complete the vessels and its claims for lost profits (all of which are disputed by GIS) that together significantly exceed the face amount of the Performance Bonds. GIS believes that Hornbeck will only be entitled to recover damages if it is determined that Hornbeck rightfully terminated the construction contracts and if Hornbeck can prove it incurred damages. Further, GIS believes that Hornbeck is only entitled to recover damages for lost profits if GIS is found to have breached the construction contracts in bad faith and if the waiver of consequential damages that is included in the construction contracts is found to be ineffective. GIS also believes that Hornbeck has significantly overstated its damages, a belief that is supported by GIS and the Surety’s expert evaluations. Due to inherent uncertainties of litigation, there is a range of potential favorable or unfavorable outcomes with respect to the disputed claims, and the amount of GIS’s potential recovery or loss, if any, or the timing of payment thereof, are uncertain. We can provide no assurances that GIS will not incur additional costs as it pursues its rights and remedies under the construction contracts and defends against Hornbeck’s claims. An unfavorable outcome to GIS in the litigation could have a material adverse effect on our financial condition, results of operations and liquidity and would be accounted for as a reversal of previously recognized revenue with respect to the construction contracts to the extent of any loss. At both June 30, 2023 and December 31, 2022, other noncurrent assets on our Balance Sheet included a net contract asset of $ 12.5 million, representing GIS’s net receivable amount (after giving effect to purported liquidated damages of $ 11.2 million) at the time of Hornbeck’s purported terminations of the construction contracts; however, an unfavorable outcome in the litigation could result in a loss from the write-off of such contract asset, or portions thereof. Insurance We maintain insurance coverage for various aspects of our business and operations. However, we may be exposed to future losses due to coverage limitations and our use of deductibles and self-insured retentions for our exposures related to property and equipment damage, builder’s risk, third-party liability and workers’ compensation and USL&H claims. In connection with our insurance coverage renewal for our property and equipment in the second quarter 2023, we determined that the benefits of maintaining insurance coverage for our property and equipment were limited due to high premium costs and deductibles and increased coverage limitations. Accordingly, we did not renew all of our property and equipment coverage and are now generally self-insured for exposures resulting from any future damage to our property and equipment. To the extent we have insurance coverage, we do not have an offset right for liabilities in excess of any deductibles and self-insured retentions. Accordingly, we have recorded a liability for estimated amounts in excess of our deductibles and retentions, and have recorded a corresponding asset related to estimated insurance recoveries, on our Balance Sheet. Further, to the extent we are self-insured, reserves are recorded based upon our estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change. See Note 2 for discussion of insurance deductibles incurred associated with damage caused by Hurricanes Ida. Letters of Credit and Surety Bonds We obtain letters of credit under our LC Facility or surety bonds from financial institutions to provide to our customers in order to secure advance payments or guarantee performance under our contracts, or in lieu of retention being withheld on our contracts. Letters of credit under our LC Facility are subject to cash securitization of the full amount of the outstanding letters of credit. In the event of non-performance under a contract, our cash securitization with respect to the letter of credit supporting such contract would become the property of Whitney Bank. With respect to surety bonds, including those relating to the construction contracts associated with our MPSV Litigation, payments by a Surety pursuant to a bond in the event of non-performance are subject to reimbursement to such Surety by us under a general indemnity agreement relating to such bond. Such indemnification obligations may include the face amount of the surety bond, or portions thereof, as well as other reimbursable items such as interest and certain investigative expenses and legal fees of the Surety. Such indemnification obligations would require us to use our cash, cash equivalents or short-term investments, and we may not have sufficient liquidity to satisfy such indemnification obligations. When a contract is complete, the contingent obligation terminates, and letters of credit or surety bonds are returned. See Note 3 for further discussion of our LC Facility and surety bonds. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries, that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances which currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our financial condition, results of operations or cash flow. Leases We maintain operating leases for our corporate office and certain operating facilities and equipment. See Note 1 for further discussion of our leases. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | 5. INCOME (LOSS) PER SHARE The following table presents the computation of basic and diluted income (loss) per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) $ 1,102 $ 528 $ 1,743 $ ( 4,499 ) Weighted average shares (1) 16,201 15,836 16,098 15,750 Basic and diluted income (loss) per common share $ 0.07 $ 0.03 $ 0.11 $ ( 0.29 ) (1) The effect of approximately 148 thousand, 82 thousand and 256 tho usand dilutive non-vested shares is not material to the calculation of diluted income per share for the three months ended June 30, 2023 and 2022, or the six months ended June 30, 2023, respectively. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | 6. OPERATING SEGMENTS We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our three operating divisions and Corporate Division are discussed below: Services Division – Our Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures and other specialty services on offshore platforms and inland structures and at industrial facilities; provides services required to connect production equipment and service modules and equipment on offshore platforms; provides project management and commissioning services; provides industrial staffing services; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. Our services activities are managed from our various Facilities and include the results of the DSS Acquisition. See Note 1 for further discussion of the DSS Acquisition. Fabrication Division – Our Fabrication Division fabricates modules, skids and piping systems for onshore refining, petrochemical, LNG and industrial facilities and offshore facilities; fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities; fabricates offshore production platforms and associated structures, including jacket foundations, piles and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and fabricates other complex steel structures and components. Our fabrication activities are performed at our Houma Facilities. Shipyard Division – Our Shipyard Division previously fabricated newbuild marine vessels and provided marine repair and maintenance services. However, on April 19, 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”). The Shipyard Transaction excluded the contracts and related obligations for our seventy-vehicle ferry and two forty-vehicle ferry projects (“Active Retained Shipyard Contracts”) that were under construction as of the transaction date and excluded the contracts and related obligations for the projects that are subject to our MPSV Litigation. The Active Retained Shipyard Contracts have been or will be completed at our Houma Facilities and we intend to wind down our Shipyard Division operations (which exclude the projects subject to our MPSV Litigation) by the third quarter 2023 (previously the second quarter 2023, but was delayed and is subject to the potential schedule impacts discussed in Note 2). At June 30, 2023 and December 31, 2022, the net operating liabilities on our Balance Sheet associated with our Shipyard Division operations totaled $ 3.4 million and $ 2.7 million, respectively. See Note 1 for further discussion of the Shipyard Transaction and Note 4 for further discussion of our MPSV Litigation. Corporate Division and Allocations – Our Corporate Division includes costs that do not directly relate to our operating divisions. Such costs include, but are not limited to, costs of maintaining our corporate office, executive management salaries and incentives, board of directors' fees, certain insurance costs and costs associated with overall corporate governance and reporting requirements for a publicly traded company. Shared resources and costs that benefit more than one operating division are allocated amongst the operating divisions based on each operating division’s estimated share of the benefit received. Such costs include, but are not limited to, human resources, insurance, information technology, accounting, business development and certain division leadership. Segment Results – We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit or loss and operating income or loss. Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of June 30, 2023 and 2022, and for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): Three Months Ended June 30, 2023 Services Fabrication Shipyard Corporate Consolidated Revenue $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Gross profit (loss) 4,101 1,564 ( 1,184 ) — 4,481 Operating income (loss) 3,269 1,295 ( 1,948 ) ( 1,867 ) 749 Depreciation and amortization expense 496 825 — 71 1,392 Capital expenditures 244 325 — — 569 Total assets (1) 31,030 47,320 14,020 44,123 136,493 Three Months Ended June 30, 2022 Services Fabrication Shipyard Corporate Consolidated Revenue $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Gross profit (loss) 3,204 ( 1,369 ) ( 163 ) — 1,672 Operating income (loss) 2,335 1,600 ( 1,384 ) ( 2,018 ) 533 Depreciation and amortization expense 386 813 — 74 1,273 Capital expenditures — 34 — — 34 Total assets (1) 33,670 33,392 17,137 48,801 133,000 Six Months Ended June 30, 2023 Services Fabrication Shipyard Corporate Consolidated Revenue $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Gross profit (loss) 7,088 4,026 ( 1,599 ) — 9,515 Operating income (loss) 5,610 3,539 ( 4,151 ) ( 3,921 ) 1,077 Depreciation and amortization expense 938 1,647 — 140 2,725 Capital expenditures 508 538 — 10 1,056 Total assets (1) 31,030 47,320 14,020 44,123 136,493 Six Months Ended June 30, 2022 Services Fabrication Shipyard Corporate Consolidated Revenue $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 Gross profit (loss) 5,132 ( 3,390 ) ( 490 ) — 1,252 Operating income (loss) 3,522 ( 1,333 ) ( 2,572 ) ( 4,066 ) ( 4,449 ) Depreciation and amortization expense 746 1,629 — 149 2,524 Capital expenditures 318 156 — — 474 Total assets (1) 33,670 33,392 17,137 48,801 133,000 (1) Cash and short-term investments are reported within our Corporate Division. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” “the Company,” “we,” “us” and “our”) is a leading fabricator of complex steel structures and modules and a provider of specialty services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction and staffing services to the industrial and energy sectors. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in The Woodlands, Texas and our primary operating facilities are located in Houma, Louisiana (“Houma Facilities”). On April 19, 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”) and intend to wind down our remaining Shipyard Division operations (which exclude the contracts that are subject to our MPSV Litigation) by the third quarter 2023 (previously the second quarter 2023, but was delayed and is subject to the potential schedule impacts discussed in Note 2). See Note 4 for further discussion of our MPSV Litigation. On December 1, 2021, we acquired a services and industrial staffing business (“DSS Acquisition”), which increased our skilled workforce, further diversified our customer base and expanded our service offerings for our Services Division. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Our Consolidated Balance Sheet (“Balance Sheet”) at December 31, 2022, has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to our 2022 Financial Statements. |
Operating Cycle | Operating Cycle The duration of our contracts vary, but may extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current, which may not be received or paid within the next twelve months, include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates General – The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with: • revenue recognition for our long-term contracts, including application of the percentage-of-completion method (“POC"), estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims (including amounts arising from disputes with customers) and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts and credit losses; • liabilities related to self-insurance programs; • costs and insurance recoveries associated with damage to our Houma Facilities resulting from Hurricane Ida discussed further in Note 2; • the impacts of volatile oil and gas prices and macroeconomic conditions on our business, estimates and judgments as discussed further below; and • assessing the probability of losses related to litigation matters. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. Oil and Gas Price Volatility and Macroeconomic Conditions – Since 2008, the prices of oil and gas have experienced significant volatility, including depressed prices over extended periods, resulting in reductions in capital spending and drilling activities from our traditional offshore oil and gas customer base. Consequently, our operating results and cash flows were negatively impacted as we experienced reductions in revenue, lower margins due to competitive pricing and under-utilization of our operating facilities and resources. Beginning in 2020, the global coronavirus pandemic (“COVID-19”) added another layer of pressure and uncertainty on oil and gas prices (with oil prices reaching a twenty-year low and gas prices reaching a four-year low), which further negatively impacted certain of our end markets during the first quarter 2022. This volatility in oil and gas prices was compounded by Russia’s invasion of Ukraine in February 2022 (and the related European energy crisis), and the U.S. and other countries actions in response (with oil prices reaching an eight-year high and gas prices reaching a fourteen-year high), which positively impacted certain of our end markets. While oil and gas prices have somewhat stabilized, the duration of such stability is uncertain and difficult to predict. In addition, global economic factors that are beyond our control, have and could continue to impact our operations, including, but are not limited to, supply chain disruptions (including global shipping and logistics challenges that began in 2020), inflationary pressures, economic slowdowns and recessions, bank failures, natural disasters, public health crises (such as COVID-19), and geopolitical conflicts (such as the conflict in Ukraine). The ultimate business and financial impacts of oil and gas price volatility and macroeconomic conditions on our business and results of operations continues to be uncertain, but the impacts have included, or may continue to include, among other things, reduced bidding activity; suspension or termination of backlog; deterioration of customer financial condition; and unanticipated project costs and schedule delays due to supply chain disruptions, labor and material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, increased safety incidents, lack of performance by subcontractors and suppliers, and contract disputes. We continue to monitor the impacts of oil and gas price volatility and macroeconomic conditions on our operations, and our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities in periods in which income is reported. See Note 5 for calculations of our basic and diluted income (loss) per share. |
Cash Equivalents, Restricted Cash and Short-Term Investments | Cash Equivalents, Restricted Cash and Short-Term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. We hold substantially all of our cash deposits with Hancock Whitney Bank (“Whitney Bank”). Restricted Cash – At June 30, 2023 and December 31, 2022, we had $ 1.2 million and $ 1.6 million of restricted cash, respectively as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Whitney Bank. Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current , and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent . See Note 3 for further discussion of our cash security requirements under our LC Facility. Short-term Investments – We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. At June 30, 2023 and December 31, 2022, our short-term investments included U.S. Treasuries with original maturities of four and six months, respectively. We intend to hold these investments until maturity and it is not more likely than not that we will be required to sell the investments prior to their maturity. The investments are stated at amortized costs, which approximates fair value due to their near-term maturities. All short-term investments are traded on active markets with quoted prices and represent Level 1 fair value measurements. |
Inventory | Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. |
Allowance for Doubtful Accounts and Credit Losses | Allowance for Doubtful Accounts and Credit Losses As further discussed under “ New Accounting Standards” below, we adopted the new accounting standard for measuring credit losses effective January 1, 2023. In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We provide an allowance for credit losses and routinely review individual contract receivable balances and other financial assets for collectability and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, company-specific credit ratings, historical company-specific uncollectable amounts and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts and credit losses. |
Stock-Based Compensation | Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. Depending on the terms of the award, we use the straight-line or graded vesting methods to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Consolidated Statements of Operations (“Statement of Operations”). Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Consolidated Statements of Cash Flows (“Statement of Cash Flows”). |
Depreciation and Amortization Expense | Depreciation and Amortization Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years . Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Intangible assets are amortized on a straight-line basis over seven years and amortization expense is reflected within general and administrative expense on our Statement of Operations. |
Long-Lived Assets | Long-Lived Assets Goodwill – Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment or when other actions require an impairment assessment (such as a change in reporting units). Our Services Division represents our only reporting unit with goodwill. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. To determine the fair value of our reporting unit and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profile of our reporting unit into our valuation model. We had no indicators of impairment during the six months ended June 30, 2023. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the period of impairment. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets), and finite-lived intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. We had no indicators of impairment during the six months ended June 30, 2023. |
Leases | Leases We record a right-of-use asset and an offsetting lease liability on our Balance Sheet equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. |
Fair Value Measurements | Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining the impairments of inventory, goodwill and long-lived assets are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. |
Revenue Recognition | Revenue Recognition General – Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate, time and materials (“T&M”) and cost-reimbursable, or a combination thereof. Our contracts primarily relate to the fabrication of steel structures and modules, and certain service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 “Revenue from Contracts with Customers” (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and the customer has obtained control of a promised asset. Long-term Contracts Satisfied Over Time – Revenue for our long-term contracts is recognized using the POC method based on contract costs incurred to date compared to total estimated contract costs (an input method). Fixed-price contracts, or contracts with a more significant fixed-price component, generally provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Unit-rate, T&M and cost-reimbursable contracts generally have more variability in the scope of work and provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of when revenue is recognized. Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit or loss for contracts accounted for using the POC method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and six months ended June 30, 2023 and 2022. Short-term Contracts and Contracts Satisfied at a Point In Time – Revenue for our short-term contracts (which includes revenue associated with our master services arrangements) and contracts that do not satisfy the criteria for revenue recognition over time is recognized when the work is performed or when control of the asset is transferred, the related costs are incurred and collection is reasonably assured. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Variable Consideration – Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims (including amounts arising from disputes with customers), incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. Variable consideration can also include revenue associated with work performed on a unit-rate, T&M or cost-reimbursable basis that is recognized using the POC method. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of our unapproved change orders, claims, incentives and liquidated damages. Additional Disclosures – Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. |
Pre-Contract Costs | Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At June 30, 2023 and December 31, 2022 , we had no deferred pre-contract costs. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts and credit losses, gains or losses associated with the sale or disposition of property and equipment, and income or expense associated with certain nonrecurring items. |
Income Taxes | Income Taxes Income taxes have been provided for using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are anticipated to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Our effective tax rate differs from our statutory rate for the three and six months ended June 30, 2023, and three months ended June 30, 2022, as no federal income tax expense was recorded for our income as it was fully offset by the reversal of valuation allowance on our net deferred tax assets, and for the six months ended June 30, 2022, as no federal income tax benefit was recorded for our loss as a full valuation allowance was recorded against our net deferred tax assets generated during the period. Income taxes recorded for the three and six months ended June 30, 2023 and 2022 relate to state income taxes. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. |
New Accounting Standards | New Accounting Standards Financial Instruments – In the first quarter 2023, we adopted ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way we evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, we are required to use a new forward-looking “expected loss” model to evaluate impairment, which includes considering a broader range of information to estimate expected credit losses and may potentially result in earlier recognition of allowances for losses. The new accounting standard was adopted using the cumulative-effect transition method with any cumulative-effect adjustment being recorded to accumulated deficit on January 1, 2023. Upon adoption, we recorded a $ 0.6 million increase to beginning accumulated deficit, a $ 0.4 million decrease to contract receivables and retainage, net and contract assets, and a $ 0.2 million decrease to other noncurrent assets, on our Balance Sheet. Adoption of the new standard did not have a material effect on our results of operations or related disclosures. Business Combinations – In the first quarter 2023, we adopted ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which changes the way companies measure contract assets and contract liabilities from contracts with customers acquired in a business combination and creates an exception to the general recognition and measurement principle of ASC 805. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following tables summarize revenue for each of our operating segments, disaggregated by contract type and duration, for the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended June 30, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 627 $ 13,399 $ 382 $ ( 2 ) $ 14,406 T&M and cost-reimbursable 22,828 1,342 — — 24,170 Other 1,015 — — ( 265 ) 750 Total $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Long-term $ 627 $ 13,508 $ 382 $ ( 2 ) $ 14,515 Short-term 23,843 1,233 — ( 265 ) 24,811 Total $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Three Months Ended June 30, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 962 $ 9,197 $ 2,968 $ ( 5 ) $ 13,122 T&M and cost-reimbursable 20,503 642 — — 21,145 Other 715 1,000 — ( 80 ) 1,635 Total $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Long-term $ 962 $ 10,197 $ 2,968 $ ( 5 ) $ 14,122 Short-term 21,218 642 — ( 80 ) 21,780 Total $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Six Months Ended June 30, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 799 $ 25,588 $ 1,729 $ ( 10 ) $ 28,106 T&M and cost-reimbursable 43,370 28,815 — — 72,185 Other 1,888 — — ( 685 ) 1,203 Total $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Long-term $ 799 $ 52,216 $ 1,729 $ ( 10 ) $ 54,734 Short-term 45,258 2,187 — ( 685 ) 46,760 Total $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Six Months Ended June 30, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 2,571 $ 14,241 $ 5,465 $ ( 6 ) $ 22,271 T&M and cost-reimbursable 38,966 1,215 — — 40,181 Other 1,307 1,000 — ( 171 ) 2,136 Total $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 Long-term $ 2,571 $ 15,241 $ 5,465 $ ( 6 ) $ 23,271 Short-term 40,273 1,215 — ( 171 ) 41,317 Total $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 |
Summary of Remaining Performance Obligations, Disaggregated by Operating Segment and Contract Type | The following table summarizes our remaining performance obligations, disaggregated by operating segment and contract type, at June 30, 2023 (in thousands): June 30, 2023 Services Fabrication Shipyard Total Fixed-price and unit-rate $ 1,067 $ 7,167 $ 1,194 $ 9,428 T&M and cost-reimbursable (1) — 2,730 — 2,730 Total (2) $ 1,067 $ 9,897 $ 1,194 $ 12,158 (1) In February 2023, we received direction from our customer to suspend all activities on our offshore jackets project for our Fabrication Division, and in July 2023 , the customer cancelled the contract. Accordingly, our performance obligations were reduced by $ 76.1 million to reflect the estimated revenue amount that will not be recognized due to the cancellation. See “Other Operating and Project Matters” below for further discussion of the project cancellation. (2) Based on our current estimates we expect to recognize revenue of approximately $ 11.8 million and $ 0.4 million for the remainder of 2023 and 2024 , respectively, associated with our performance obligations at June 30, 2023. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. |
Summary of Contract with Customer, Asset and Liability | Information with respect to contracts that were incomplete at June 30, 2023 and December 31, 2022, is as follows (in thousands): June 30, December 31, 2023 2022 Contract assets (1), (2) $ 6,662 $ 4,839 Contract liabilities (3), (4), (5) ( 3,065 ) ( 8,196 ) Contracts in progress, net $ 3,597 $ ( 3,357 ) (1) The increase in contract assets compared to December 31, 2022, was primarily due to increased unbilled positions on various projects for our Fabrication Division, offset partially by decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. (2) Contract assets at June 30, 2023 and December 31, 2022, excluded $ 3.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. (3) The decrease in contract liabilities compared to December 31, 2022, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses on our forty-vehicle ferry projects for our Shipyard Division. See “Future Performance Obligations” above for further discussion of the project cancellation. (4) Revenue recognized during the three months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at March 31, 2023 and 2022 was $ 2.3 million and $ 0.7 million, respectively . Revenue recognized during the six months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.1 million and $ 2.5 million, respectively . (5) Contract liabilities at June 30, 2023 and December 31, 2022, includes accrued contract losses of $ 0.6 million and $ 1.6 million, respectively. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted income (loss) per share for the three and six months ended June 30, 2023 and 2022 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (loss) $ 1,102 $ 528 $ 1,743 $ ( 4,499 ) Weighted average shares (1) 16,201 15,836 16,098 15,750 Basic and diluted income (loss) per common share $ 0.07 $ 0.03 $ 0.11 $ ( 0.29 ) (1) The effect of approximately 148 thousand, 82 thousand and 256 tho usand dilutive non-vested shares is not material to the calculation of diluted income per share for the three months ended June 30, 2023 and 2022, or the six months ended June 30, 2023, respectively. |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information for our segments as of June 30, 2023 and 2022, and for the three and six months ended June 30, 2023 and 2022, is as follows (in thousands): Three Months Ended June 30, 2023 Services Fabrication Shipyard Corporate Consolidated Revenue $ 24,470 $ 14,741 $ 382 $ ( 267 ) $ 39,326 Gross profit (loss) 4,101 1,564 ( 1,184 ) — 4,481 Operating income (loss) 3,269 1,295 ( 1,948 ) ( 1,867 ) 749 Depreciation and amortization expense 496 825 — 71 1,392 Capital expenditures 244 325 — — 569 Total assets (1) 31,030 47,320 14,020 44,123 136,493 Three Months Ended June 30, 2022 Services Fabrication Shipyard Corporate Consolidated Revenue $ 22,180 $ 10,839 $ 2,968 $ ( 85 ) $ 35,902 Gross profit (loss) 3,204 ( 1,369 ) ( 163 ) — 1,672 Operating income (loss) 2,335 1,600 ( 1,384 ) ( 2,018 ) 533 Depreciation and amortization expense 386 813 — 74 1,273 Capital expenditures — 34 — — 34 Total assets (1) 33,670 33,392 17,137 48,801 133,000 Six Months Ended June 30, 2023 Services Fabrication Shipyard Corporate Consolidated Revenue $ 46,057 $ 54,403 $ 1,729 $ ( 695 ) $ 101,494 Gross profit (loss) 7,088 4,026 ( 1,599 ) — 9,515 Operating income (loss) 5,610 3,539 ( 4,151 ) ( 3,921 ) 1,077 Depreciation and amortization expense 938 1,647 — 140 2,725 Capital expenditures 508 538 — 10 1,056 Total assets (1) 31,030 47,320 14,020 44,123 136,493 Six Months Ended June 30, 2022 Services Fabrication Shipyard Corporate Consolidated Revenue $ 42,844 $ 16,456 $ 5,465 $ ( 177 ) $ 64,588 Gross profit (loss) 5,132 ( 3,390 ) ( 490 ) — 1,252 Operating income (loss) 3,522 ( 1,333 ) ( 2,572 ) ( 4,066 ) ( 4,449 ) Depreciation and amortization expense 746 1,629 — 149 2,524 Capital expenditures 318 156 — — 474 Total assets (1) 33,670 33,392 17,137 48,801 133,000 Cash and short-term investments are reported within our Corporate Division. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Number of operating segments | Segment | 3 | ||||
Number of corporate non-operating segments | Segment | 1 | ||||
Prepaid contract costs | $ 0 | $ 0 | $ 0 | ||
Federal Income Tax Expense (Benefit), Continuing Operations | 0 | $ 0 | 0 | $ 0 | |
ASU 2016-13 | |||||
Significant Accounting Policies [Line Items] | |||||
Decrease to contract receivables and retainage, net and contract assets | (400,000) | ||||
Decrease to other noncurrent assets | 200,000 | ||||
Increase to beginning accumulated deficit | $ 600,000 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 25 years | ||||
LC Facility | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 1,200,000 | $ 1,200,000 | $ 1,600,000 | ||
LC Facility | Balance Sheet Date Classified as Current | |||||
Significant Accounting Policies [Line Items] | |||||
Maturity date, description | maturity dates of twelve months or less from the balance sheet date classified as current | ||||
LC Facility | Balance Sheet Date Classified as Noncurrent | |||||
Significant Accounting Policies [Line Items] | |||||
Maturity date, description | maturity dates of longer than twelve months from the balance sheet date classified as noncurrent |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 39,326 | $ 35,902 | $ 101,494 | $ 64,588 |
Long-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,515 | 14,122 | 54,734 | 23,271 |
Short-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,811 | 21,780 | 46,760 | 41,317 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (267) | (85) | (695) | (177) |
Eliminations | Long-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (2) | (5) | (10) | (6) |
Eliminations | Short-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (265) | (80) | (685) | (171) |
Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,470 | 22,180 | 46,057 | 42,844 |
Services | Operating Segments | Long-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 627 | 962 | 799 | 2,571 |
Services | Operating Segments | Short-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,843 | 21,218 | 45,258 | 40,273 |
Fabrication | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,741 | 10,839 | 54,403 | 16,456 |
Fabrication | Operating Segments | Long-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,508 | 10,197 | 52,216 | 15,241 |
Fabrication | Operating Segments | Short-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,233 | 642 | 2,187 | 1,215 |
Shipyard | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 382 | 2,968 | 1,729 | 5,465 |
Shipyard | Operating Segments | Long-Term Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 382 | 2,968 | 1,729 | 5,465 |
Fixed-price and unit-rate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,406 | 13,122 | 28,106 | 22,271 |
Fixed-price and unit-rate | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (2) | (5) | (10) | (6) |
Fixed-price and unit-rate | Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 627 | 962 | 799 | 2,571 |
Fixed-price and unit-rate | Fabrication | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,399 | 9,197 | 25,588 | 14,241 |
Fixed-price and unit-rate | Shipyard | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 382 | 2,968 | 1,729 | 5,465 |
Time And Materials And Cost Reimbursable | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,170 | 21,145 | 72,185 | 40,181 |
Time And Materials And Cost Reimbursable | Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,828 | 20,503 | 43,370 | 38,966 |
Time And Materials And Cost Reimbursable | Fabrication | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,342 | 642 | 28,815 | 1,215 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 750 | 1,635 | 1,203 | 2,136 |
Other | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (265) | (80) | (685) | (171) |
Other | Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,015 | 715 | $ 1,888 | 1,307 |
Other | Fabrication | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,000 | $ 1,000 |
Revenue, Contract Assets and _4
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligations, Disaggregated by Operating Segment and Contract Type (Details) $ in Thousands | Jun. 30, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 12,158 | [1] |
Fixed-price and unit-rate | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 9,428 | |
Time And Materials And Cost Reimbursable | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 2,730 | [2] |
Operating Segments | Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 1,067 | [1] |
Operating Segments | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 9,897 | [1] |
Operating Segments | Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 1,194 | [1] |
Operating Segments | Fixed-price and unit-rate | Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 1,067 | |
Operating Segments | Fixed-price and unit-rate | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 7,167 | |
Operating Segments | Fixed-price and unit-rate | Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 1,194 | |
Operating Segments | Time And Materials And Cost Reimbursable | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 2,730 | [2] |
[1] Based on our current estimates we expect to recognize revenue of approximately $ 11.8 million and $ 0.4 million for the remainder of 2023 and 2024 , respectively, associated with our performance obligations at June 30, 2023. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. In February 2023, we received direction from our customer to suspend all activities on our offshore jackets project for our Fabrication Division, and in July 2023 , the customer cancelled the contract. Accordingly, our performance obligations were reduced by $ 76.1 million to reflect the estimated revenue amount that will not be recognized due to the cancellation. See “Other Operating and Project Matters” below for further discussion of the project cancellation. |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligations, Disaggregated by Operating Segment and Contract Type (Parenthetical) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Reduction in performance obligations | $ 76,100 | |
Remaining performance obligation | 12,158 | [1] |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 11,800 | |
Revenue remaining performance obligation expected timing of satisfaction period | 6 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 400 | |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year | |
[1] Based on our current estimates we expect to recognize revenue of approximately $ 11.8 million and $ 0.4 million for the remainder of 2023 and 2024 , respectively, associated with our performance obligations at June 30, 2023. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. |
Revenue, Contract Assets and _6
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |||
Contract assets | [1],[2] | $ 6,662 | $ 4,839 |
Contract liabilities | [3],[4],[5] | (3,065) | (8,196) |
Contracts in progress, net | $ 3,597 | $ (3,357) | |
[1] Contract assets at June 30, 2023 and December 31, 2022, excluded $ 3.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase in contract assets compared to December 31, 2022, was primarily due to increased unbilled positions on various projects for our Fabrication Division, offset partially by decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. Contract liabilities at June 30, 2023 and December 31, 2022, includes accrued contract losses of $ 0.6 million and $ 1.6 million, respectively. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Revenue recognized during the three months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at March 31, 2023 and 2022 was $ 2.3 million and $ 0.7 million, respectively . Revenue recognized during the six months ended June 30, 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.1 million and $ 2.5 million, respectively . The decrease in contract liabilities compared to December 31, 2022, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses on our forty-vehicle ferry projects for our Shipyard Division. See “Future Performance Obligations” above for further discussion of the project cancellation. |
Revenue, Contract Assets and _7
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |||||
Contract with customer, asset, revenue recognized in excess of amounts billed, current | $ 3 | $ 3 | $ 3.6 | ||
Contract with customer, liability, revenue recognized | 2.3 | $ 0.7 | 6.1 | $ 2.5 | |
Contract with customer, liability, accrued contract losses, current | $ 0.6 | $ 0.6 | $ 1.6 |
Revenue, Contract Assets and _8
Revenue, Contract Assets and Liabilities and Other Contract Matters - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||||
Jul. 01, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Vechicle | Jun. 30, 2022 USD ($) | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Recognized income associated with revisions to allowance for doubtful accounts | $ 200,000 | $ 200,000 | |||||
Allowance for doubtful accounts and credit losses | 400,000 | 400,000 | |||||
Increase to beginning accumulated deficit | (15,228,000) | (15,228,000) | $ (16,339,000) | ||||
ASU 2016-13 | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Increase to beginning accumulated deficit | $ 600,000 | ||||||
Minimum | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Future repair costs associated with insurance payments received for buildings | 500,000 | ||||||
Maximum | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Future repair costs associated with insurance payments received for buildings | $ 1,000,000 | ||||||
Hurricane Ida | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Date of landfall | Aug. 29, 2021 | ||||||
Impact of Hurricane Ida, description | On August 29, 2021, Hurricane Ida made landfall near Houma, Louisiana as a high-end Category 4 hurricane, with high winds and heavy rains causing damage to buildings and equipment at our Houma Facilities and resulting in significant debris throughout the facility. | ||||||
Insurance payments received | $ 700,000 | $ 7,000,000 | |||||
Gain on interruptions insurance recovery | 200,000 | ||||||
Gain on insurance recovery | $ 3,400,000 | 3,100,000 | |||||
Insurance receivables | $ 1,300,000 | $ 1,300,000 | |||||
Forty-Vehicle Ferry | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Number of vehicle ferry projects with rework and construction challenges. | Vechicle | 2 | ||||||
Projects, percent complete (percentage) | 95% | 95% | |||||
Reserve for loss | $ 500,000 | $ 500,000 | |||||
Change in estimated margins | 200,000 | 200,000 | |||||
Seventy-Vehicle Ferry | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Reserve for loss | 100,000 | 100,000 | |||||
Change in estimated margins | 600,000 | 600,000 | |||||
Seventy-Vehicle Ferry | Minimum | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Incremental forecast costs | 1,500,000 | ||||||
Seventy-Vehicle Ferry | Maximum | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Incremental forecast costs | 2,000,000 | ||||||
Remaining Forty-Vehicle Ferry | Hurricane Ida | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Total charges related to deductibles | 300,000 | $ 200,000 | 300,000 | $ 200,000 | |||
Shipyard | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Reduction of estimated contract price for liquidated damages, amount | 1,700,000 | 1,700,000 | $ 1,400,000 | ||||
Change in estimated margins | 800,000 | 800,000 | |||||
Fabrication | Offshore Jackets Project | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Accounts receivable | $ 11,300,000 | $ 11,300,000 | |||||
Fabrication | Offshore Jackets Project | Subsequent Event | |||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||
Payments received from accounts receivable | $ 1,000,000 |
Credit Facilities and Debt - Ad
Credit Facilities and Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 05, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Line Of Credit Facility [Line Items] | ||||
Maturity date | Jun. 30, 2024 | |||
Surety bonds | $ 110,900,000 | |||
Surety bonds subject to dispute | 50,000,000 | |||
Surety bonds relates to Active Retained Shipyard Contracts | $ 45,600,000 | |||
Short-term Premium Finance Arrangement | ||||
Line Of Credit Facility [Line Items] | ||||
Stated interest rate (percentage) | 4.30% | |||
Short-term premium finance | $ 2,400,000 | |||
Short-term premium finance, Number of installment | payable in ten equal monthly installments through March 2023 | |||
General Liability Arrangement | ||||
Line Of Credit Facility [Line Items] | ||||
Stated interest rate (percentage) | 6.60% | |||
Short-term premium finance | $ 500,000 | |||
Short-term premium finance, Number of installment | payable in eight equal monthly installments through August 2023 | |||
Insurance Finance and General Liability Arrangements | ||||
Line Of Credit Facility [Line Items] | ||||
Principal payments | $ 1,100,000 | $ 200,000 | ||
Remaining principal balance | 100,000 | |||
Fabrication | ||||
Line Of Credit Facility [Line Items] | ||||
Surety bonds subject to dispute | $ 15,300,000 | |||
Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Letter of credit facility | $ 20,000,000 | |||
Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Letter of credit facility | $ 10,000,000 | |||
LC Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Fees on undrawn borrowings (percentage) | 0.40% | |||
Total outstanding letters of credit | $ 1,200,000 | |||
Letter of Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Stated interest rate (percentage) | 1.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 USD ($) Vessel | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | |||
Number of multi-purpose service vessels | Vessel | 2 | ||
Contract asset under dispute, noncurrent | $ 12.5 | $ 12.5 | |
Net receivable amount purported liquidated damages | $ 11.2 | $ 11.2 | |
Surety Bond | |||
Loss Contingencies [Line Items] | |||
Claims under performance bonds issued | $ 50 |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 1,102 | $ 641 | $ 528 | $ (5,027) | $ 1,743 | $ (4,499) | |
Weighted average shares basic | [1] | 16,201 | 15,836 | 16,098 | 15,750 | ||
Weighted average shares diluted | [1] | 16,201 | 15,836 | 16,098 | 15,750 | ||
Basic income (loss) per common share | $ 0.07 | $ 0.03 | $ 0.11 | $ (0.29) | |||
Diluted income (loss) per common share | $ 0.07 | $ 0.03 | $ 0.11 | $ (0.29) | |||
[1] The effect of approximately 148 thousand, 82 thousand and 256 tho usand dilutive non-vested shares is not material to the calculation of diluted income per share for the three months ended June 30, 2023 and 2022, or the six months ended June 30, 2023, respectively. |
Income (Loss) Per Share - Com_2
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |||
Dilutive non-vested shares exculded from calculation of diluted income per share | 148 | 82 | 256 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | 3 | |
Number of corporate non-operating segments | 1 | |
Net operating liabilities | $ | $ 3.4 | $ 2.7 |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 39,326 | $ 35,902 | $ 101,494 | $ 64,588 | |
Gross profit (loss) | 4,481 | 1,672 | 9,515 | 1,252 | |
Operating income (loss) | 749 | 533 | 1,077 | (4,449) | |
Depreciation and amortization expense | 2,725 | 2,524 | |||
Capital expenditures | 1,056 | 474 | |||
Total assets | 136,493 | 136,493 | $ 134,866 | ||
Operating Segments | Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 24,470 | 22,180 | 46,057 | 42,844 | |
Operating Segments | Fabrication | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 14,741 | 10,839 | 54,403 | 16,456 | |
Operating Segments | Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 382 | 2,968 | 1,729 | 5,465 | |
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 39,326 | 35,902 | 101,494 | 64,588 | |
Gross profit (loss) | 4,481 | 1,672 | 9,515 | 1,252 | |
Operating income (loss) | 749 | 533 | 1,077 | (4,449) | |
Depreciation and amortization expense | 1,392 | 1,273 | 2,725 | 2,524 | |
Capital expenditures | 569 | 34 | 1,056 | 474 | |
Total assets | 136,493 | 133,000 | 136,493 | 133,000 | |
Continuing Operations | Operating Segments | Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 24,470 | 22,180 | 46,057 | 42,844 | |
Gross profit (loss) | 4,101 | 3,204 | 7,088 | 5,132 | |
Operating income (loss) | 3,269 | 2,335 | 5,610 | 3,522 | |
Depreciation and amortization expense | 496 | 386 | 938 | 746 | |
Capital expenditures | 244 | 508 | 318 | ||
Total assets | 31,030 | 33,670 | 31,030 | 33,670 | |
Continuing Operations | Operating Segments | Fabrication | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 14,741 | 10,839 | 54,403 | 16,456 | |
Gross profit (loss) | 1,564 | (1,369) | 4,026 | (3,390) | |
Operating income (loss) | 1,295 | 1,600 | 3,539 | (1,333) | |
Depreciation and amortization expense | 825 | 813 | 1,647 | 1,629 | |
Capital expenditures | 325 | 34 | 538 | 156 | |
Total assets | 47,320 | 33,392 | 47,320 | 33,392 | |
Continuing Operations | Operating Segments | Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 382 | 2,968 | 1,729 | 5,465 | |
Gross profit (loss) | (1,184) | (163) | (1,599) | (490) | |
Operating income (loss) | (1,948) | (1,384) | (4,151) | (2,572) | |
Total assets | 14,020 | 17,137 | 14,020 | 17,137 | |
Continuing Operations | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (267) | (85) | (695) | (177) | |
Operating income (loss) | (1,867) | (2,018) | (3,921) | (4,066) | |
Depreciation and amortization expense | 71 | 74 | 140 | 149 | |
Capital expenditures | 10 | ||||
Total assets | $ 44,123 | $ 48,801 | $ 44,123 | $ 48,801 |