Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GIFI | ||
Entity Registrant Name | GULF ISLAND FABRICATION INC | ||
Entity Central Index Key | 1,031,623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 14,630,686 | ||
Entity Public Float | $ 160,619,350 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 34,828 | $ 36,085 |
Contract retainage | 52 | 0 |
Contracts receivable, net | 47,008 | 80,448 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 12,822 | 26,989 |
Prepaid expenses and other | 3,418 | 4,510 |
Inventory | 12,936 | 10,140 |
Income tax receivable | 0 | 1,350 |
Assets held for sale | 4,805 | 10,327 |
Total current assets | 115,869 | 169,849 |
Property, plant and equipment, net | 200,384 | 224,777 |
Other assets | 670 | 671 |
Total assets | 316,923 | 395,297 |
Current liabilities: | ||
Accounts payable | 13,604 | 40,272 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 7,081 | 18,766 |
Accrued contract losses | 9,495 | 817 |
Accrued employee costs | 6,831 | 7,723 |
Accrued expenses and other liabilities | 777 | 5,187 |
Income taxes payable | 113 | 0 |
Total current liabilities | 37,901 | 72,765 |
Net deferred tax liabilities | 21,825 | 36,734 |
Total liabilities | $ 59,726 | $ 109,499 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, no par value, 20,000,000 shares authorized, 14,580,216 issued and outstanding at December 31, 2015 and 14,539,104 at December 31, 2014, respectively | $ 10,352 | $ 10,090 |
Additional paid-in capital | 96,194 | 93,828 |
Retained earnings | 150,651 | 181,880 |
Total shareholders’ equity | 257,197 | 285,798 |
Total liabilities and shareholders’ equity | $ 316,923 | $ 395,297 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,580,216 | 14,539,104 |
Common stock, shares outstanding | 14,580,216 | 14,539,104 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 306,120 | $ 506,639 | $ 608,326 |
Cost of revenue: | |||
Contract costs | 321,276 | 462,083 | 584,665 |
Gross (loss) profit | (15,156) | 44,556 | 23,661 |
General and administrative expenses | 16,256 | 17,409 | 11,555 |
Asset impairment | 7,202 | 3,200 | 0 |
Operating (loss) income | (38,614) | 23,947 | 12,106 |
Other income (expense): | |||
Interest expense | (165) | (37) | (237) |
Interest income | 26 | 13 | 3 |
Other income (expense), net | 20 | (99) | (337) |
Total other income (expense) | (119) | (123) | (571) |
(Loss) income before income taxes | (38,733) | 23,824 | 11,535 |
Income tax (benefit) expense | (13,369) | 8,504 | 4,303 |
Net (loss) income | $ (25,364) | $ 15,320 | $ 7,232 |
Per share data: | |||
Basic earnings (loss) per share—common shareholders | $ (1.75) | $ 1.05 | $ 0.50 |
Diluted earnings (loss) per share—common shareholders | $ (1.75) | $ 1.05 | $ 0.50 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning Balance at Dec. 31, 2012 | $ 273,500 | $ 9,956 | $ 92,512 | $ 171,032 |
Beginning Balance, (in shares) at Dec. 31, 2012 | 14,452,660 | |||
Exercise of stock options | 203 | $ 20 | 183 | |
Exercise of stock options, (in shares) | 2,900 | |||
Income tax benefit from stock compensation | 116 | 116 | ||
Net (loss) income | 7,232 | 7,232 | ||
Vesting of restricted stock | (322) | $ (32) | (290) | |
Vesting of restricted stock, (in shares) | 38,188 | |||
Compensation expense restricted stock | 672 | $ 68 | 604 | |
Dividends on common stock | (5,839) | (5,839) | ||
Ending Balance at Dec. 31, 2013 | 275,562 | $ 10,012 | 93,125 | 172,425 |
Ending Balance, (in shares) at Dec. 31, 2013 | 14,493,748 | |||
Net (loss) income | 15,320 | 15,320 | ||
Vesting of restricted stock | (358) | $ (35) | (323) | |
Vesting of restricted stock, (in shares) | 45,356 | |||
Compensation expense restricted stock | 1,139 | $ 113 | 1,026 | |
Dividends on common stock | (5,865) | (5,865) | ||
Ending Balance at Dec. 31, 2014 | $ 285,798 | $ 10,090 | 93,828 | 181,880 |
Ending Balance, (in shares) at Dec. 31, 2014 | 14,539,104 | 14,539,104 | ||
Net (loss) income | $ (25,364) | (25,364) | ||
Vesting of restricted stock | (79) | $ (9) | (70) | |
Vesting of restricted stock, (in shares) | 41,112 | |||
Compensation expense restricted stock | 2,707 | $ 271 | 2,436 | |
Dividends on common stock | (5,865) | (5,865) | ||
Ending Balance at Dec. 31, 2015 | $ 257,197 | $ 10,352 | $ 96,194 | $ 150,651 |
Ending Balance, (in shares) at Dec. 31, 2015 | 14,580,216 | 14,580,216 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net (loss) income | $ (25,364) | $ 15,320 | $ 7,232 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation | 26,204 | 26,436 | 25,087 |
Asset impairment | 7,202 | 3,200 | 0 |
Allowance for doubtful accounts | 448 | 3,168 | 887 |
(Loss) gain on the sale of assets | (10) | 86 | 353 |
Deferred income taxes | (14,061) | 8,264 | 3,788 |
Stock-based compensation expense | 2,707 | 1,139 | 672 |
Excess tax benefits from share-based payment arrangements | 0 | 0 | (116) |
Changes in operating assets and liabilities: | |||
Contracts receivable, net | 31,792 | 14,963 | (55,353) |
Contract retainage | (52) | 111 | 1,187 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 14,167 | (2,262) | 1,590 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (11,685) | (16,240) | 9,418 |
Accounts payable | (26,668) | (25,782) | 16,569 |
Prepaid subcontractor costs | 0 | 0 | 33,145 |
Prepaid expenses and other assets | 1,092 | 352 | (385) |
Inventory | 931 | 1,189 | (6,325) |
Accrued contract losses | 8,678 | 817 | (3,790) |
Accrued employee costs | (971) | (154) | 1,854 |
Accrued expenses | (4,410) | 1,488 | (1,462) |
Current income taxes | 615 | 15 | 3,652 |
Net cash provided by operating activities | 10,615 | 32,110 | 38,003 |
Cash flows from investing activities: | |||
Capital expenditures, net | (6,018) | (27,658) | (21,353) |
Proceeds on the sale of equipment | 11 | 929 | 551 |
Net cash used in investing activities | (6,007) | (26,729) | (20,802) |
Cash flows from financing activities: | |||
Borrowings against notes payable | 0 | 22,000 | 45,000 |
Payments on notes payable | 0 | (22,000) | (45,000) |
Proceeds from exercise of stock options | 0 | 0 | 203 |
Excess tax benefit from share-based payment arrangements | 0 | 0 | 116 |
Payments of dividends on common stock | (5,865) | (5,865) | (5,839) |
Net cash used in financing activities | (5,865) | (5,865) | (5,520) |
Net (decrease) increase in cash and cash equivalents | (1,257) | (484) | 11,681 |
Cash and cash equivalents at beginning of period | 36,085 | 36,569 | 24,888 |
Cash and cash equivalents at end of period | 34,828 | 36,085 | 36,569 |
Supplemental cash flow information: | |||
Interest paid | 165 | 169 | 843 |
Income taxes (received) paid, net of payments (refunds) | (152) | 225 | 3,138 |
Schedule of noncash financing activities | |||
Reclassification of property, plant and equipment to assets held for sale | 4,805 | 0 | 14,527 |
Reclassification of assets held for sale to inventory | $ 3,727 | $ 0 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Gulf Island Fabrication, Inc. ("Gulf Island"), and together with its subsidiaries, (the “Company”, “we” or “our”), is a leading fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. In addition, we also perform onshore and offshore construction and fabrication services for customers in the marine industry. Our principal markets are concentrated in the offshore regions and along the coast of the Gulf of Mexico. We currently provide our customers with what we believe to be the largest group of fabrication facilities serving the Gulf of Mexico market. The Company was incorporated in 1985 and began operations at our fabrication yard on the Houma Navigation Canal in southern Louisiana, approximately 30 miles from the Gulf of Mexico. Since our formation, we have expanded and grown our operations through acquisitions of additional facilities on the Houma Navigation Canal in southern Louisiana as well as 212 acres in Ingleside, Texas between the Gulf Intracoastal Waterway and Corpus Christi Ship Channel and 160 acres in Aransas Pass, Texas located along the U.S. Intracoastal Waterway. In October 2013, we moved our corporate headquarters to Houston, Texas. We continue to grow our operations and to diversify our business. On January 1, 2016, we acquired substantially all of the assets and assumed certain specified liabilities of LEEVAC Shipyards, L.L.C. and its affiliates (collectively, “LEEVAC”), through our newly formed wholly-owned subsidiary, Gulf Island Shipyards, L.L.C. in an all cash transaction. See further discussion of the LEEVAC acquisition as discussed in Note12 - "Subsequent Events". Gulf Island serves as a holding company and conducts all of its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C. The consolidated financial statements include the accounts of Gulf Island Fabrication, Inc. and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Operating Cycle The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded 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 paid or received within the next twelve months include contract retainage, costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits, the application of the percentage-of-completion method of accounting and the determination of the allowance of doubtful accounts. Actual results could differ from those estimates. Reclassifications We reclassified $2.6 million in deferred tax assets, current with deferred tax liabilities in our consolidated balance sheet as of December 31, 2014 to conform to current year balance sheet presentation. This reclassification had no impact to our previously reported results of operations or cash flows. See also New Accounting Standards discussion below. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Allowance for Doubtful Accounts We routinely review individual contracts receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. See Note 3 - "Contracts Receivable and Retainage" for a detail of our allowance for doubtful accounts. Stock-Based Compensation Awards under the Company’s stock-based compensation plans are calculated using a fair value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. Inventory Inventory consists of materials and production supplies and is stated at the lower of cost or market determined on the first-in, first-out basis. Assets Held for Sale Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. See Note 5-“Fair Value Measurements and Assets Held for Sale” for additional information regarding our assets held for sale. Workers Compensation Liability The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. Our workers compensation liability balance was $2.6 million as of December 31, 2015 and $2.7 million as of December 31, 2014 , respectively. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from 3 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. Long-Lived Assets We evaluate impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might not be recoverable. If events and circumstance indicate that the assets or asset groups might not be recoverable, the expected future undiscounted cash flows from the assets or asset groups are estimated and compared with the carrying amount of the assets or asset groups. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets or asset groups, an impairment loss is recorded. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Due to the slow down in our industry as a result of the downturn in oil prices, we identified indicators of impairment at our Texas facility. Management performed an undiscounted cash flow analysis for the Texas facility which did not result in impairment. Fair Value Measurements The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. We base our fair value determinations by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • 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 generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. See Note 5-“Fair Value Measurements and Assets Held for Sale” for additional information regarding fair value measurements. Revenue Recognition We use the percentage-of-completion accounting method for fabrication contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to our estimate of total anticipated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. For the years ended December 31, 2015 , 2014 , and 2013 , there was no significant revenue related to unapproved change orders or claims. Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. See Note 2-“Contract Revenue” for additional information regarding our percentage-of-completion accounting and revenue recognition. Income Taxes Income taxes have been provided 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 basis differences reverse. A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2011 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. See also Note 8 - "Income Taxes" New Accounting Standards In November 2015, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (Topic 740). Prior to implementation of this update, entities are required to separate deferred tax assets and liabilities into current and noncurrent amounts on their balance sheet. However, upon implementation of this update, entities will be required to present deferred tax liabilities and assets as noncurrent on their balance sheet. The provisions of this update are applicable to us on January 1, 2017; however, we have elected to early adopt the provisions of this statement as permitted during the fourth quarter of 2015. As a result of this implementation, we reclassified $2.6 million in current deferred tax assets as of December 31, 2014 with our deferred tax liabilities as noncurrent. Implementation of this update had no impact to our results of operations or cash flows for any of the periods presented. See also Note 8 - “Income Taxes.” On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification (ASC) Topic 605, “Revenue Recognition.” ASU No. 2014-09 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. ASU 2014-09 requires retrospective application and will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is not permitted. The Company is evaluating the effect of this new standard on its financial statements. |
CONTRACT REVENUE AND PERCENTAGE
CONTRACT REVENUE AND PERCENTAGE OF COMPLETION METHOD | 12 Months Ended |
Dec. 31, 2015 | |
Revenue Recognition [Abstract] | |
CONTRACT REVENUE AND PERCENTAGE OF COMPLETION METHOD | CONTRACT REVENUE AND PERCENTAGE OF COMPLETION METHOD Information with respect to uncompleted contracts as of December 31, is as follows (in thousands): 2015 2014 Costs incurred on uncompleted contracts $ 437,658 $ 742,608 Estimated profit earned to date 7,777 53,551 445,435 796,159 Less billings to date 439,694 787,936 $ 5,741 $ 8,223 The above amounts are included in the accompanying consolidated balance sheets at December 31 under the following captions (in thousands): 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 12,822 $ 26,989 Billings in excess of costs and estimated earnings on uncompleted contracts (7,081 ) (18,766 ) $ 5,741 $ 8,223 Provision for estimated losses Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. We recognized contract losses of $33.9 million , $6.6 million , and $30.8 million in the years ended December 31, 2015 , 2014 , and 2013 , respectively. Contract losses for the year ended December 31, 2015 were primarily due to $24.5 million related to a decrease in the contract price due to final weight re-measurements and our inability to recover certain costs on disputed change orders related to a large deepwater project which was recently delivered. In addition we increased accrued contract losses associated with our remaining contracts by approximately $9.4 million during 2015 due to increases in our projected unit labor rates of our fabrication facilities. Our increases in unit labor rates were driven by our inability to absorb fixed costs due to decreases in expected oil and gas fabrication activity. Contract losses for the year ended December 31, 2014 were primarily related to two tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to our inability to recover certain costs and the de-scoping of one of our major deepwater project, whereby remaining completion and integration work was performed at the integration site by a different integration contractor. In addition, we recorded an additional loss provision of $18.2 million in the fourth quarter of 2013 related to this project. Revenues from Major Customers The Company is not dependent on any one customer, and the revenue earned from each customer varies from year to year based on the contracts awarded; however, the Company is highly dependent on a few large customers in each year, particularly customers for our major deepwater projects, as shown below. Revenues from customers comprising 10% or more of the Company’s total revenue for the years ended December 31, 2015 , 2014 and 2013 , respectively, are summarized as follows (in thousands): Customer 2015 2014 2013 A $ 55,775 $ 160,173 * B 36,320 * * C * 98,644 * D * * 216,875 E * * 148,539 * The customer revenue was less than 10% of the total revenue for the year. International Revenues The Company’s fabricated structures are used worldwide by U.S. customers operating abroad and by foreign customers. Revenues related to fabricated structures for delivery outside of the United States accounted for 6% , 10% , and 6% of the Company’s revenues for the years ended December 31, 2015 , 2014 and 2013 , respectively, as follows (in thousands): 2015 2014 2013 Location: United States $ 287,892 $ 456,839 $ 570,726 International 18,228 49,800 37,600 Total $ 306,120 $ 506,639 $ 608,326 Contract Costs Contract costs include all direct material, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies and tools. Also included in contract costs are a portion of those indirect contract costs related to plant capacity, such as depreciation, insurance and repairs and maintenance. These indirect costs are allocated to jobs based on actual direct labor hours incurred. We define pass-through costs as material, freight, equipment rental, and sub-contractor services included in the direct costs of revenue associated with projects. Pass-through costs have no impact in the determination of gross margin recognized for the related project for a particular period. Pass-through costs as a percentage of revenue were 44.4% , 48.2% and 58.5% for the years ended December 31, 2015 , 2014 and 2013 , respectively. Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a claim under those provisions. Those contracts define the conditions under which our customers may make claims against us for liquidated damages. In 2014, we had one asserted liquidated damages claim in the amount of $0.3 million that was fully settled, related to the fabrication of an offshore supply vessel. Other than the aforementioned claim, as of March 9, 2016, we were not aware of any asserted or unasserted liquidated damage claims by any of our customers. |
CONTRACTS RECEIVABLE AND RETAIN
CONTRACTS RECEIVABLE AND RETAINAGE | 12 Months Ended |
Dec. 31, 2015 | |
Contractors [Abstract] | |
CONTRACTS RECEIVABLE AND RETAINAGE | CONTRACTS RECEIVABLE AND RETAINAGE Of our contracts receivable balance at December 31, 2015 , $29.9 million , or 63.7% , is for six customers. Amounts due on contracts as of December 31 were as follows (in thousands): 2015 2014 Completed contracts Current receivables $ 15,904 $ 24,667 Long term receivables due after one year — — Contracts in progress: Current receivables 31,148 59,384 Retainage due within one year 52 — 47,104 84,051 Less allowance for doubtful accounts 44 3,603 $ 47,060 $ 80,448 Our allowance for doubtful accounts as of December 31, 2015 related to a customer that had declared bankruptcy and was fully reserved in 2015. Our allowance for doubtful accounts as of December 31, 2014 was in connection with negotiations of an outstanding contract receivable balance with a customer related to a deepwater hull project, which was written off in 2013. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at December 31, (in thousands): Estimated Useful Life 2015 2014 (in Years) Land - $ 10,463 $ 10,463 Buildings 25 64,154 63,837 Machinery and equipment 3 to 25 223,521 228,284 Furniture and fixtures 3 to 5 5,354 5,354 Transportation equipment 3 to 5 3,481 3,748 Improvements 15 127,727 125,265 Construction in progress - 2,488 1,177 437,188 438,128 Less accumulated depreciation 236,804 213,351 $ 200,384 $ 224,777 We lease certain equipment used in the normal course under month-to-month lease agreements cancelable only by us. During 2015 , 2014 , and 2013 , we expensed $5.9 million , $5.6 million , and $9.5 million , respectively, related to these leases. We lease our corporate office and parking facilities located in Houston, Texas. Leased premises consist of office space of approximately 8,000 square feet. The term of the lease matures on January 31, 2020 . The schedule of minimum rental payments for our corporate office leases is as follows (in thousands): 2016 $ 217 2017 221 2018 225 2019 229 2020 19 Total $ 911 |
FAIR VALUE MEASUREMENTS AND ASS
FAIR VALUE MEASUREMENTS AND ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement and Assets Held-for-sale [Abstract] | |
FAIR VALUE MEASUREMENTS AND ASSETS HELD FOR SALE | FAIR VALUE MEASUREMENTS AND ASSETS HELD FOR SALE Recurring fair value measurements and financial instruments - The carrying amounts that we have reported for financial instruments, including cash and cash equivalents, accounts receivables and accounts payables approximate their fair values. Assets held for sale - We measure and record assets held for sale at the lower of their carrying amount or fair value less cost to sell. The determination of fair value can require the use of significant judgment and can vary on the facts and circumstances. Assets held for sale at December 31, 2015 consist of equipment that was subsequently sold during the first quarter of 2016. We estimated the fair value as the actual cash proceeds received less costs incurred to sell. We recorded an impairment of $0.6 million related to this equipment during the fourth quarter of 2015. Assets held for sale at December 31, 2014 consisted of a partially constructed topside, related valves, piping and equipment that we acquired from a customer following its default under a contract for a deepwater project in 2012. We previously determined a fair value $10.3 million for these assets with the assistance of third party valuation specialists, relying primarily on the cost approach and applied the market approach where comparable sales transaction information was readily available. The cost approach is based on current replacement or reproduction costs of the subject assets less depreciation attributable to physical, functional, and economic factors. The market approach involves gathering data on sales and offerings of similar assets in order to value the subject assets. This approach also includes an assumption for the measurement of the loss in value from physical, functional, and economic factors. To date, we have not sold, licensed, or leased any of this equipment. While we have not discontinued our programs to identify buyers for our assets held for sale, our ability to effectively market these assets held for sale has been significantly limited due to the sustained downturn in the energy sector. In addition, during the third quarter, we learned that a potential buyer is no longer expressing interest in the assets. As a result, we reassessed our estimate of fair value and recorded an impairment of $6.6 million , and reclassified the asset’s net realizable value of $3.7 million to inventory based on the estimated scrap value of these materials during the third quarter of 2015. We intend to use this inventory on future construction projects at our various fabrication facilities. Inventory consists of materials and production supplies and is stated at the lower of cost or market. During the fourth quarter of 2014, management determined that its previous estimate of $13.5 million for the fair value of assets held for sale had declined to $10.3 million and we recorded an impairment charge of $3.2 million for the year ended December 31, 2014. We have determined that our impairments of assets held for sale and inventory are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. |
EARNINGS PER SHARE AND STOCK RE
EARNINGS PER SHARE AND STOCK REPURCHASE | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND STOCK REPURCHASE | EARNINGS PER SHARE AND STOCK REPURCHASE PLAN The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2015 2014 2013 Numerator: Net (loss) income $ (25,364 ) $ 15,320 $ 7,232 Less: distributed loss / distributed and undistributed income (unvested restricted stock) 84 104 75 Net (loss) income attributable to common shareholders $ (25,448 ) $ 15,216 $ 7,157 Denominator (basic): Denominator for basic earnings per share-weighted-average shares 14,546 14,505 14,463 Basic (loss) earnings per share—common shareholders $ (1.75 ) $ 1.05 $ 0.50 Denominator (diluted): Denominator for basic earnings per share-weighted-average shares 14,546 14,505 14,463 Effect of dilutive securities: employee stock options — — 6 Denominator for dilutive earnings per share-weighted-average shares 14,546 14,505 14,469 Diluted (loss) earnings per share—common shareholders $ (1.75 ) $ 1.05 $ 0.50 On July 30, 2015, our Board of Directors authorized the Company to repurchase up to $10.0 million in shares of our common stock under a share repurchase program that remains in effect through July 30, 2017. Repurchases may be effected through open market purchases or in privately negotiated transactions at such times and in such amounts as management deems appropriate, depending on market conditions and other factors. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be modified, suspended or discontinued at any time. To date, we have made no repurchases of our common stock. Due to the severity of the industry downturn, management has recommended and our board of directors has approved a temporary suspension of our stock repurchase program in an effort to conserve cash. |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | LINE OF CREDIT We have a credit agreement with Whitney Bank and JPMorgan Chase Bank N.A. that provides for an $80.0 million revolving credit facility. The credit agreement allows the Company to use up to the full amount of the available borrowing base for letters of credit and up to $20.0 million for general corporate purposes. Our obligations under the credit agreement are secured by substantially all of our assets, other than real property located in the state of Louisiana. On February 29, 2016, we entered into an amendment to our credit agreement. The amendment restates our financial covenants beginning with the quarter ending March 31, 2016 as follows: (i) minimum net worth requirement of not less than $250.0 million plus a) 50% of net income earned in each quarter beginning March 31, 2016 and b) 100% of proceeds from any issuance of common stock; (ii) debt to EBITDA ratio not greater than 3.0 to 1.0; and (iii) interest coverage ratio not less than 2.0 to 1.0. The amendment also (i) extends the term of the Credit Facility from February 29, 2016 to January 2, 2017; (ii) increases the commitment fee on undrawn amounts from 0.25% to 0.50% per annum; (iii) increases the letter of credit fee, subject to certain limited exceptions, to 2.0% per annum on undrawn stated amounts under letters of credit issued by the lenders; and (iv) limits the maximum amount of loans outstanding at any time for general corporate purposes to $20.0 million . At December 31, 2015 we had no outstanding borrowings under the credit agreement, and we had outstanding letters of credit totaling $ 20.5 million . After consideration of outstanding letters of credit, the availability of the unused portion of the revolving credit agreement (as amended) for additional letters of credit and for general corporate purposes was $59.5 million and $ 20.0 million , respectively. Amounts borrowed under our the credit agreement bear interest, at our option, at either the prime lending rate established by JPMorgan Chase Bank, N.A. or LIBOR plus 2.0 percent . We are required to maintain certain financial covenants under the credit agreement. As of December 31, 2015, our financial covenants included (i) a minimum current ratio of 1.25 to 1.0, (ii) a net worth minimum requirement of $254.1 million , (iii) debt to net worth ratio of not greater than 0.5 to 1.0, and (iv) interest coverage ratio of not less than 4.0 to 1.0. As of December 31, 2015, we were in compliance with all of these covenants or had obtained a waiver of noncompliance. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands): 2015 2014 Deferred tax liabilities: Property, plant and equipment $ 31,943 $ 38,070 Prepaid insurance 1,209 1,310 Total deferred tax liabilities: 33,152 39,380 Deferred tax assets: Employee benefits 924 951 Uncompleted contracts 3,321 391 Stock based compensation expense 825 43 Allowance for uncollectible accounts 16 1,261 Federal net operating loss 5,478 — AMT tax credits 763 — Total deferred tax assets: 11,327 2,646 Net deferred tax liabilities: $ 21,825 $ 36,734 Significant components of income tax expense for the years ended December 31 were as follows (in thousands): 2015 2014 2013 Current: Federal $ 219 $ (105 ) $ — State 473 459 254 Total current 692 354 254 Deferred: Federal (13,614 ) 8,120 4,049 State (447 ) 30 — Total deferred (14,061 ) 8,150 4,049 Income taxes $ (13,369 ) $ 8,504 $ 4,303 A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax (benefit) expense for the years ended December 31 is as follows (in thousands): 2015 % 2014 % 2013 % U.S. statutory rate $ (13,556 ) 35.0 % $ 8,338 35.0 % $ 4,037 35.0 % Increase (decrease) resulting from: State income taxes 275 (0.7 )% 311 1.0 % 317 2.7 % Qualified Production Activities — — % (21 ) (0.1 )% — — % Other (88 ) 0.2 % (124 ) (0.2 )% (51 ) (0.4 )% Income tax (benefit) expense $ (13,369 ) 34.5 % $ 8,504 35.7 % $ 4,303 37.3 % |
RETIREMENT AND LONG-TERM INCENT
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
RETIREMENT AND LONG-TERM INCENTIVE PLANS | RETIREMENT AND LONG-TERM INCENTIVE PLANS 401(k) Plan The Company has a defined contribution plan for all employees that are qualified under Section 401(k) of the Internal Revenue Code. Gulf Island Resources employees are not eligible for the retirement plan. Contributions to the retirement plan by the Company are based on the participants’ contributions, with an additional year-end discretionary contribution determined by the Board of Directors. For the years ended December 31, 2015 , 2014 and 2013, the Company contributed a total of $2.3 million , $2.6 million , and $2.7 million , respectively. Long-Term Incentive Plans Under our long-term incentive plans, the compensation committee of our board of directors may award shares of restricted stock and/or options to eligible participants as the compensation committee determines are warranted. A summary of our long-term incentive plans is as follows: Long-Term Incentive Plan (approved by our shareholders on February 13, 1997) • authorizes the grant of options to purchase an aggregate of 1,000,000 (split adjusted) shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • No individual employee may be granted options to purchase more than an aggregate of 400,000 shares of common stock. 2002 Long-Term Incentive Plan (approved by our shareholders on April 24, 2002, and amended on April 26, 2006). • authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted options to purchase more than an aggregate of 200,000 shares of common stock. 2011 Stock Incentive Plan (approved by our shareholders on April 28, 2011) • authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted options to purchase more than an aggregate of 200,000 shares of common stock. 2015 Stock Incentive Plan (approved by our shareholders on April 23,2015) • authorizes the grant of awards, including options, to purchase an aggregate of 1,000,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted options to purchase more than an aggregate of 200,000 shares of common stock and no outside director may receive awards that relate to more than 25,000 shares in any fiscal year. At December 31, 2015 , there were approximately 1,345,887 shares in the aggregate remaining available for future issuance under the Long-Term Incentive Plan, the 2002 Long-Term Incentive Plan, the 2011 Stock Incentive Plan and the 2015 Stock Incentive Plan (together, the “Incentive Plans”). The Company issues new shares through its transfer agent upon stock option exercises or restricted share issuances. Restricted Stock Awards Awards of restricted stock are subject to transfer restrictions, forfeit provisions and other terms and conditions subject to the provisions of our long-term incentive plans. At the time an award of restricted stock is made, the compensation committee will establish a period of time during which the transfer of the shares of restricted stock shall be restricted and after which the shares of restricted stock shall be vested. Except for the shares of restricted stock that vest based on the attainment of performance goals, the restricted period shall be a minimum of three years , with incremental vesting of portions of the award over the three-year period permitted. Our long-term incentive plans do not have any limitations on the amount of shares that can be specifically awarded as restricted stock. Restricted stock granted to our non-employee directors have six -month vesting periods. The fair value of restricted stock is determined based on the closing price of the Company’s common stock on the date of the grant. A summary of our restricted stock awards activity for the years ended December 31, 2015, 2014 and 2013 is presented in the table below. 2015 2014 2013 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Restricted shares at the beginning of period 107,840 $ 24.27 178,950 $ 24.00 143,150 $ 24.28 Granted 215,034 16.33 6,000 23.19 100,150 23.22 Vested (41,112 ) 22.04 (45,356 ) 23.35 (38,188 ) 23.14 Forfeited (18,798 ) 21.39 (31,754 ) 23.85 (26,162 ) 23.82 Restricted shares at the end of period 262,964 $ 18.33 107,840 $ 24.27 178,950 $ 24.00 As of December 31, 2015 , there was $3.0 million of total unrecognized compensation cost related to restricted share-based compensation arrangements granted under the Incentive Plans. This cost is expected to be recognized over a weighted-average period of 3.6 years. The total fair value of shares vested during the year ended December 31, 2015 was $0.6 million . Share-based compensation cost that has been charged against income for the Incentive Plans was $2.7 million , $1.1 million and $0.7 million for 2015 , 2014 and 2013 , respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0 , $49,000 and $116,000 for 2015 , 2014 and 2013 , respectively. Performance based share awards We issue performance based share awards to our executives and certain members of management. Performance targets are communicated to employees at the beginning of a performance period and are based upon our total shareholder return compared to an industry peer group as determined by our Board of Directors. There were no performance based share awards for the years ended December 31, 2014 and 2013. Awards earned for 2015 will be based upon a two-year performance period ending in 2017, and awards earned for 2016 will be based upon a three-year performance period ending in 2018. The shares vest at the completion of the performance period with compensation expense recognized on a straight line basis. For the years ended December 31, 2015, 2014 and 2013, expense recognized for performance based share compensation was $1.1 million , $0 and $0 , respectively. The fair value of the performance based shares granted for the year ended December 31, 2015 was $2.7 million as determined using a monte carlo simulation model. |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | CONTINGENCIES AND COMMITMENTS The Company is subject to various routine legal proceedings in the normal conduct of its business, primarily involving commercial claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the United States and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, management believes that the outcome of any such proceedings, even if determined adversely , would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
QUARTERLY OPERATING RESULTS (UN
QUARTERLY OPERATING RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY OPERATING RESULTS (UNAUDITED) | QUARTERLY OPERATING RESULTS (UNAUDITED) A summary of quarterly results of operations for the years ended December 31, 2015 and 2014 were as follows (in thousands, except per share data): March 31, 2015 June 30, 2015 September 30, 2015 (a) December 31, 2015 (a) Revenue $ 99,233 $ 84,338 $ 67,531 $ 55,018 Gross profit (loss) 4,448 5,805 (7,837 ) (17,572 ) Net income (loss) 83 1,357 (12,137 ) (14,667 ) Basic and fully diluted EPS — 0.09 (0.84 ) (1.01 ) March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (b) Revenue $ 134,690 $ 129,169 $ 118,020 $ 124,760 Gross profit (loss) 8,773 10,322 14,653 10,808 Net income (loss) 3,535 4,310 7,586 (111 ) Basic and fully diluted EPS 0.24 0.30 0.52 (0.01 ) (a) During the third quarter of 2015, we recorded contract losses of $14.3 million as a result of our inability to recover certain costs related to a deck and jacket for one of our large deepwater projects, and we recorded an impairment of $6.6 million related to assets held for sale. During the fourth quarter of 2015, we recorded additional contract losses of $10.3 million related to a decrease in the contract price due to final weight re-measurements and our inability to recover certain costs on disputed change orders related to a large deepwater project which was recently delivered. In addition, during the fourth quarter of 2015, we accrued contract losses of approximately $7.6 million resulting from increases in our projected unit labor rates of our fabrication facilities. Our increases in unit labor rates were driven by our inability to absorb fixed costs due to decreases in expected oil and gas fabrication activity. (b) We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance during the fourth quarter of 2014. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS LEEVAC Acquisition On January 1, 2016, we acquired substantially all of the assets and assumed certain specified liabilities of LEEVAC Shipyards, L.L.C. and its affiliates ("LEEVAC"). The purchase price for the acquisition was $20.0 million , subject to a working capital adjustment whereby we received at closing a dollar for dollar reduction for the assumption of certain net liabilities of LEEVAC and settlement payments from sureties on certain ongoing fabrication projects that were assigned to us in the acquisition. After taking into account these adjustments, we received approximately $1.6 million in cash at closing. Dividends On February 25, 2016 , our Board of Directors declared a dividend of $0.01 per share on the shares of our common stock outstanding, payable March 24, 2016 to shareholders of record on March 10, 2016 . |
ORGANIZATION AND SUMMARY OF S19
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Gulf Island Fabrication, Inc. ("Gulf Island"), and together with its subsidiaries, (the “Company”, “we” or “our”), is a leading fabricator of steel platforms and other specialized structures for customers in the offshore oil and gas industry. In addition, we also perform onshore and offshore construction and fabrication services for customers in the marine industry. Our principal markets are concentrated in the offshore regions and along the coast of the Gulf of Mexico. We currently provide our customers with what we believe to be the largest group of fabrication facilities serving the Gulf of Mexico market. The Company was incorporated in 1985 and began operations at our fabrication yard on the Houma Navigation Canal in southern Louisiana, approximately 30 miles from the Gulf of Mexico. Since our formation, we have expanded and grown our operations through acquisitions of additional facilities on the Houma Navigation Canal in southern Louisiana as well as 212 acres in Ingleside, Texas between the Gulf Intracoastal Waterway and Corpus Christi Ship Channel and 160 acres in Aransas Pass, Texas located along the U.S. Intracoastal Waterway. In October 2013, we moved our corporate headquarters to Houston, Texas. We continue to grow our operations and to diversify our business. On January 1, 2016, we acquired substantially all of the assets and assumed certain specified liabilities of LEEVAC Shipyards, L.L.C. and its affiliates (collectively, “LEEVAC”), through our newly formed wholly-owned subsidiary, Gulf Island Shipyards, L.L.C. in an all cash transaction. See further discussion of the LEEVAC acquisition as discussed in Note12 - "Subsequent Events". Gulf Island serves as a holding company and conducts all of its operations through its subsidiaries, which include Gulf Island, L.L.C.; Gulf Marine Fabricators, L.P.; Gulf Island Marine Fabricators, L.L.C.; Gulf Island Shipyards, L.L.C.; Dolphin Services, L.L.C.; and Dolphin Steel Sales, L.L.C. |
Operating Cycle | Operating Cycle The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded 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 paid or received within the next twelve months include contract retainage, costs and estimated earnings in excess of billings on uncompleted contracts and billings in excess of costs and estimated earnings on uncompleted contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits, the application of the percentage-of-completion method of accounting and the determination of the allowance of doubtful accounts. Actual results could differ from those estimates. |
Reclassifications | Reclassifications We reclassified $2.6 million in deferred tax assets, current with deferred tax liabilities in our consolidated balance sheet as of December 31, 2014 to conform to current year balance sheet presentation. This reclassification had no impact to our previously reported results of operations or cash flows. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We routinely review individual contracts receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. |
Stock-Based Compensation | Stock-Based Compensation Awards under the Company’s stock-based compensation plans are calculated using a fair value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. |
Inventory | Inventory Inventory consists of materials and production supplies and is stated at the lower of cost or market determined on the first-in, first-out basis. |
Assets Held for Sale | Assets Held for Sale Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. |
Workers Compensation Liability | Workers Compensation Liability The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from 3 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. |
Long-Lived Assets | Long-Lived Assets We evaluate impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might not be recoverable. If events and circumstance indicate that the assets or asset groups might not be recoverable, the expected future undiscounted cash flows from the assets or asset groups are estimated and compared with the carrying amount of the assets or asset groups. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets or asset groups, an impairment loss is recorded. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Due to the slow down in our industry as a result of the downturn in oil prices, we identified indicators of impairment at our Texas facility. Management performed an undiscounted cash flow analysis for the Texas facility which did not result in impairment. |
Fair Value Measurements | Fair Value Measurements The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. |
Revenue Recognition | Revenue Recognition We use the percentage-of-completion accounting method for fabrication contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to our estimate of total anticipated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. For the years ended December 31, 2015 , 2014 , and 2013 , there was no significant revenue related to unapproved change orders or claims. Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. |
Income Taxes | Income Taxes Income taxes have been provided 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 basis differences reverse. A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2011 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. |
New Accounting Standards | New Accounting Standards In November 2015, the Financial Accounting Standards Board (FASB), issued Accounting Standards Update (ASU) No. 2015-17, “Balance Sheet Classification of Deferred Taxes” (Topic 740). Prior to implementation of this update, entities are required to separate deferred tax assets and liabilities into current and noncurrent amounts on their balance sheet. However, upon implementation of this update, entities will be required to present deferred tax liabilities and assets as noncurrent on their balance sheet. The provisions of this update are applicable to us on January 1, 2017; however, we have elected to early adopt the provisions of this statement as permitted during the fourth quarter of 2015. As a result of this implementation, we reclassified $2.6 million in current deferred tax assets as of December 31, 2014 with our deferred tax liabilities as noncurrent. Implementation of this update had no impact to our results of operations or cash flows for any of the periods presented. See also Note 8 - “Income Taxes.” On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification (ASC) Topic 605, “Revenue Recognition.” ASU No. 2014-09 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. ASU 2014-09 requires retrospective application and will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is not permitted. The Company is evaluating the effect of this new standard on its financial statements. |
CONTRACT REVENUE AND PERCENTA20
CONTRACT REVENUE AND PERCENTAGE OF COMPLETION METHOD (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revenue Recognition [Abstract] | |
Information with Respect to Uncompleted Contracts | Information with respect to uncompleted contracts as of December 31, is as follows (in thousands): 2015 2014 Costs incurred on uncompleted contracts $ 437,658 $ 742,608 Estimated profit earned to date 7,777 53,551 445,435 796,159 Less billings to date 439,694 787,936 $ 5,741 $ 8,223 |
Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets | The above amounts are included in the accompanying consolidated balance sheets at December 31 under the following captions (in thousands): 2015 2014 Costs and estimated earnings in excess of billings on uncompleted contracts $ 12,822 $ 26,989 Billings in excess of costs and estimated earnings on uncompleted contracts (7,081 ) (18,766 ) $ 5,741 $ 8,223 |
Summary of Revenues from Customers | Revenues from customers comprising 10% or more of the Company’s total revenue for the years ended December 31, 2015 , 2014 and 2013 , respectively, are summarized as follows (in thousands): Customer 2015 2014 2013 A $ 55,775 $ 160,173 * B 36,320 * * C * 98,644 * D * * 216,875 E * * 148,539 |
Company Revenues by Geographic Location | Revenues related to fabricated structures for delivery outside of the United States accounted for 6% , 10% , and 6% of the Company’s revenues for the years ended December 31, 2015 , 2014 and 2013 , respectively, as follows (in thousands): 2015 2014 2013 Location: United States $ 287,892 $ 456,839 $ 570,726 International 18,228 49,800 37,600 Total $ 306,120 $ 506,639 $ 608,326 |
CONTRACTS RECEIVABLE AND RETA21
CONTRACTS RECEIVABLE AND RETAINAGE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contractors [Abstract] | |
Amounts Due on Contracts | Amounts due on contracts as of December 31 were as follows (in thousands): 2015 2014 Completed contracts Current receivables $ 15,904 $ 24,667 Long term receivables due after one year — — Contracts in progress: Current receivables 31,148 59,384 Retainage due within one year 52 — 47,104 84,051 Less allowance for doubtful accounts 44 3,603 $ 47,060 $ 80,448 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, (in thousands): Estimated Useful Life 2015 2014 (in Years) Land - $ 10,463 $ 10,463 Buildings 25 64,154 63,837 Machinery and equipment 3 to 25 223,521 228,284 Furniture and fixtures 3 to 5 5,354 5,354 Transportation equipment 3 to 5 3,481 3,748 Improvements 15 127,727 125,265 Construction in progress - 2,488 1,177 437,188 438,128 Less accumulated depreciation 236,804 213,351 $ 200,384 $ 224,777 |
Schedule of Minimum Future Rental Payments | The schedule of minimum rental payments for our corporate office leases is as follows (in thousands): 2016 $ 217 2017 221 2018 225 2019 229 2020 19 Total $ 911 |
EARNINGS PER SHARE AND STOCK 23
EARNINGS PER SHARE AND STOCK REPURCHASE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2015 2014 2013 Numerator: Net (loss) income $ (25,364 ) $ 15,320 $ 7,232 Less: distributed loss / distributed and undistributed income (unvested restricted stock) 84 104 75 Net (loss) income attributable to common shareholders $ (25,448 ) $ 15,216 $ 7,157 Denominator (basic): Denominator for basic earnings per share-weighted-average shares 14,546 14,505 14,463 Basic (loss) earnings per share—common shareholders $ (1.75 ) $ 1.05 $ 0.50 Denominator (diluted): Denominator for basic earnings per share-weighted-average shares 14,546 14,505 14,463 Effect of dilutive securities: employee stock options — — 6 Denominator for dilutive earnings per share-weighted-average shares 14,546 14,505 14,469 Diluted (loss) earnings per share—common shareholders $ (1.75 ) $ 1.05 $ 0.50 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands): 2015 2014 Deferred tax liabilities: Property, plant and equipment $ 31,943 $ 38,070 Prepaid insurance 1,209 1,310 Total deferred tax liabilities: 33,152 39,380 Deferred tax assets: Employee benefits 924 951 Uncompleted contracts 3,321 391 Stock based compensation expense 825 43 Allowance for uncollectible accounts 16 1,261 Federal net operating loss 5,478 — AMT tax credits 763 — Total deferred tax assets: 11,327 2,646 Net deferred tax liabilities: $ 21,825 $ 36,734 |
Components of Income Tax Expense | Significant components of income tax expense for the years ended December 31 were as follows (in thousands): 2015 2014 2013 Current: Federal $ 219 $ (105 ) $ — State 473 459 254 Total current 692 354 254 Deferred: Federal (13,614 ) 8,120 4,049 State (447 ) 30 — Total deferred (14,061 ) 8,150 4,049 Income taxes $ (13,369 ) $ 8,504 $ 4,303 |
Reconciliation of Income Tax | A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax (benefit) expense for the years ended December 31 is as follows (in thousands): 2015 % 2014 % 2013 % U.S. statutory rate $ (13,556 ) 35.0 % $ 8,338 35.0 % $ 4,037 35.0 % Increase (decrease) resulting from: State income taxes 275 (0.7 )% 311 1.0 % 317 2.7 % Qualified Production Activities — — % (21 ) (0.1 )% — — % Other (88 ) 0.2 % (124 ) (0.2 )% (51 ) (0.4 )% Income tax (benefit) expense $ (13,369 ) 34.5 % $ 8,504 35.7 % $ 4,303 37.3 % |
RETIREMENT AND LONG-TERM INCE25
RETIREMENT AND LONG-TERM INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
Summary of Status of Restricted Stock Awards | A summary of our restricted stock awards activity for the years ended December 31, 2015, 2014 and 2013 is presented in the table below. 2015 2014 2013 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Restricted shares at the beginning of period 107,840 $ 24.27 178,950 $ 24.00 143,150 $ 24.28 Granted 215,034 16.33 6,000 23.19 100,150 23.22 Vested (41,112 ) 22.04 (45,356 ) 23.35 (38,188 ) 23.14 Forfeited (18,798 ) 21.39 (31,754 ) 23.85 (26,162 ) 23.82 Restricted shares at the end of period 262,964 $ 18.33 107,840 $ 24.27 178,950 $ 24.00 |
QUARTERLY OPERATING RESULTS (26
QUARTERLY OPERATING RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | A summary of quarterly results of operations for the years ended December 31, 2015 and 2014 were as follows (in thousands, except per share data): March 31, 2015 June 30, 2015 September 30, 2015 (a) December 31, 2015 (a) Revenue $ 99,233 $ 84,338 $ 67,531 $ 55,018 Gross profit (loss) 4,448 5,805 (7,837 ) (17,572 ) Net income (loss) 83 1,357 (12,137 ) (14,667 ) Basic and fully diluted EPS — 0.09 (0.84 ) (1.01 ) March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (b) Revenue $ 134,690 $ 129,169 $ 118,020 $ 124,760 Gross profit (loss) 8,773 10,322 14,653 10,808 Net income (loss) 3,535 4,310 7,586 (111 ) Basic and fully diluted EPS 0.24 0.30 0.52 (0.01 ) (a) During the third quarter of 2015, we recorded contract losses of $14.3 million as a result of our inability to recover certain costs related to a deck and jacket for one of our large deepwater projects, and we recorded an impairment of $6.6 million related to assets held for sale. During the fourth quarter of 2015, we recorded additional contract losses of $10.3 million related to a decrease in the contract price due to final weight re-measurements and our inability to recover certain costs on disputed change orders related to a large deepwater project which was recently delivered. In addition, during the fourth quarter of 2015, we accrued contract losses of approximately $7.6 million resulting from increases in our projected unit labor rates of our fabrication facilities. Our increases in unit labor rates were driven by our inability to absorb fixed costs due to decreases in expected oil and gas fabrication activity. (b) We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance during the fourth quarter of 2014. |
Organization and Summary of S27
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)a | Dec. 31, 2014USD ($) | |
Significant Accounting Policies [Line Items] | ||
Workers compensation liability | $ | $ 2.6 | $ 2.7 |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Estimated life of property, plant and equipment | 3 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Estimated life of property, plant and equipment | 25 years | |
New Accounting Pronouncement, Early Adoption, Effect | ||
Significant Accounting Policies [Line Items] | ||
Deferred tax assets, current | $ | $ (2.6) | |
Ingleside, Texas | ||
Significant Accounting Policies [Line Items] | ||
Area of real estate property | a | 212 | |
Aransas Pass, Texas | ||
Significant Accounting Policies [Line Items] | ||
Area of real estate property | a | 160 |
Contract Revenue and Percenta28
Contract Revenue and Percentage of Completion Method - Information with Respect to Uncompleted Contracts (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenue Recognition [Abstract] | ||
Costs incurred on uncompleted contracts | $ 437,658 | $ 742,608 |
Estimated profit earned to date | 7,777 | 53,551 |
Contract costs and estimated profits | 445,435 | 796,159 |
Less billings to date | 439,694 | 787,936 |
Net costs and estimated earnings in excess of billings | $ 5,741 | $ 8,223 |
Contract Revenue and Percenta29
Contract Revenue and Percentage of Completion Method - Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Revenue Recognition [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 12,822 | $ 26,989 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (7,081) | (18,766) |
Net costs and estimated earnings in excess of billings | $ 5,741 | $ 8,223 |
Contract Revenue and Percenta30
Contract Revenue and Percentage of Completion Method - Revenues from Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 55,018 | $ 67,531 | $ 84,338 | $ 99,233 | $ 124,760 | $ 118,020 | $ 129,169 | $ 134,690 | $ 306,120 | $ 506,639 | $ 608,326 |
Customer A | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | 55,775 | 160,173 | |||||||||
Customer B | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 36,320 | ||||||||||
Customer C | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 98,644 | ||||||||||
Customer D | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | 216,875 | ||||||||||
Customer E | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 148,539 |
Contract Revenue and Percenta31
Contract Revenue and Percentage of Completion Method - Revenues by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | $ 55,018 | $ 67,531 | $ 84,338 | $ 99,233 | $ 124,760 | $ 118,020 | $ 129,169 | $ 134,690 | $ 306,120 | $ 506,639 | $ 608,326 |
United States | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | 287,892 | 456,839 | 570,726 | ||||||||
International | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | $ 18,228 | $ 49,800 | $ 37,600 |
Contract Revenue and Percenta32
Contract Revenue and Percentage of Completion Method - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)claimProject | Dec. 31, 2013USD ($) | |
Revenue from External Customer [Line Items] | |||||
Loss on contracts | $ 33.9 | $ 6.6 | $ 30.8 | ||
Loss on contracts, number of projects | Project | 2 | ||||
Percentage of revenue related to fabricated structures for delivery outside U.S | 6.00% | 10.00% | 6.00% | ||
Pass-through costs as a percentage of revenue | 44.40% | 48.20% | 58.50% | ||
Number of asserted liquidated damages claims settled | claim | 1 | ||||
Amount of liquidated damages claim | $ 0.3 | ||||
Large Deepwater Project, Recently Delivered | |||||
Revenue from External Customer [Line Items] | |||||
Loss on contracts | $ 10.3 | $ 24.5 | |||
Large Deepwater Project, Prior Years | |||||
Revenue from External Customer [Line Items] | |||||
Loss on contracts | $ 18.2 | ||||
Fabrication Facilities | |||||
Revenue from External Customer [Line Items] | |||||
Loss on contracts | $ 7.6 | ||||
Loss on contract due to labor rate changes | $ 9.4 |
Contracts Receivable and Reta33
Contracts Receivable and Retainage - Amounts Due on Contracts (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Customer | Dec. 31, 2014USD ($) | |
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $ 47,008 | $ 80,448 |
Retainage due within one year | 52 | 0 |
Accounts receivable, gross | 47,104 | 84,051 |
Less allowance for doubtful accounts | 44 | 3,603 |
Accounts receivable, net | 47,060 | 80,448 |
Completed Contracts | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 15,904 | 24,667 |
Long term receivables due after one year | 0 | 0 |
Contracts In Progress | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 31,148 | 59,384 |
Retainage due within one year | 52 | $ 0 |
Top 6 Customers | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $ 29,900 | |
Percentage of contract receivable | 63.70% | |
Number of major customers, contracts receivable | Customer | 6 |
Property, Plant and Equipment34
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 437,188 | $ 438,128 |
Less accumulated depreciation | 236,804 | 213,351 |
Property, plant and equipment, Net | 200,384 | 224,777 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 10,463 | 10,463 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 64,154 | 63,837 |
Property, plant and equipment, estimated useful life | 25 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 223,521 | 228,284 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 5,354 | 5,354 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 3,481 | 3,748 |
Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 127,727 | 125,265 |
Property, plant and equipment, estimated useful life | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 2,488 | $ 1,177 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Maximum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) ft² in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Operating Leased Assets [Line Items] | |||
Lease agreement expenses | $ | $ 5.9 | $ 5.6 | $ 9.5 |
Office space area of leased premises | ft² | 8 | ||
Operating Lease Amendment [Member] | |||
Operating Leased Assets [Line Items] | |||
Lease expiration date | Jan. 31, 2020 |
Property, Plant and Equipment36
Property, Plant and Equipment - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Property, Plant and Equipment [Abstract] | |
2,016 | $ 217 |
2,017 | 221 |
2,018 | 225 |
2,019 | 229 |
2,020 | 19 |
Operating leases, future minimum payments due | $ 911 |
Fair Value Measurements and A37
Fair Value Measurements and Assets Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Fair Value Measurement and Assets Held-for-sale [Abstract] | |||||||
Impairment charge of asset held for sale | $ 600 | $ 6,600 | $ 3,200 | ||||
Fair value of assets held for sale | $ 10,300 | $ 10,300 | $ 13,500 | ||||
Reclassification of assets held for sale to inventory | $ 3,700 | $ 3,727 | 0 | $ 0 | |||
Impairment charge | $ 3,200 |
Earnings Per Share and Stock 38
Earnings Per Share and Stock Repurchase - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 30, 2015 | |
Earnings Per Share [Abstract] | ||||||||||||
Net (loss) income | $ (14,667) | $ (12,137) | $ 1,357 | $ 83 | $ (111) | $ 7,586 | $ 4,310 | $ 3,535 | $ (25,364) | $ 15,320 | $ 7,232 | |
Less: distributed loss / distributed and undistributed income (unvested restricted stock) | 84 | 104 | 75 | |||||||||
Net (loss) income attributable to common shareholders | $ (25,448) | $ 15,216 | $ 7,157 | |||||||||
Basic: | ||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,546 | 14,505 | 14,463 | |||||||||
Basic (loss) earnings per share—common shareholders | $ (1.75) | $ 1.05 | $ 0.50 | |||||||||
Diluted: | ||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,546 | 14,505 | 14,463 | |||||||||
Effect of dilutive securities: | ||||||||||||
Employee stock options | 0 | 0 | 6 | |||||||||
Denominator for dilutive earnings per share-weighted-average shares | 14,546 | 14,505 | 14,469 | |||||||||
Diluted (loss) earnings per share—common shareholders | $ (1.75) | $ 1.05 | $ 0.50 | |||||||||
Stock repurchase program, authorized amount | $ 10,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) | Feb. 29, 2016USD ($) | Dec. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 80,000,000 | |
Available borrowings for general corporate purposes | 20,000,000 | |
Financial covenants, minimum net worth | $ 254,100,000 | |
Financial covenants, minimum interest coverage ratio | 4 | |
Borrowings under credit agreement | $ 0 | |
Total outstanding letters of credit | $ 20,500,000 | |
Financial covenants, minimum current ratio | 1.25 | |
Financial covenants, maximum debt to net worth ratio | 0.5 | |
Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Available borrowings for general corporate purposes | $ 20,000,000 | |
Financial covenants, minimum net worth | $ 250,000,000 | |
Financial covenants, percent of net income added to net worth requirement | 50.00% | |
Financial covenants, percent of proceeds from stock issuance added to net worth requirement | 100.00% | |
Financial covenants, maximum EBITDA ratio | 3 | |
Financial covenants, minimum interest coverage ratio | 2 | |
London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 2.00% | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, unused portion | $ 20,000,000 | |
Revolving Credit Facility | Minimum | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Fees on unused borrowings, percent | 0.25% | |
Revolving Credit Facility | Maximum | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Fees on unused borrowings, percent | 0.50% | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility, unused portion | $ 59,500,000 | |
Letter of Credit | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Fees on unused borrowings, percent | 2.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $ 31,943 | $ 38,070 |
Prepaid insurance | 1,209 | 1,310 |
Total deferred tax liabilities: | 33,152 | 39,380 |
Employee benefits | 924 | 951 |
Uncompleted contracts | 3,321 | 391 |
Stock based compensation expense | 825 | 43 |
Allowance for uncollectible accounts | 16 | 1,261 |
Federal net operating loss | 5,478 | 0 |
AMT tax credits | 763 | 0 |
Total deferred tax assets: | 11,327 | 2,646 |
Net deferred tax liabilities: | $ 21,825 | $ 36,734 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 219 | $ (105) | $ 0 |
State | 473 | 459 | 254 |
Total current | 692 | 354 | 254 |
Deferred: | |||
Federal | (13,614) | 8,120 | 4,049 |
State | (447) | 30 | 0 |
Total deferred | (14,061) | 8,150 | 4,049 |
Income tax (benefit) expense | $ (13,369) | $ 8,504 | $ 4,303 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate, amount | $ (13,556) | $ 8,338 | $ 4,037 |
State income taxes, amount | 275 | 311 | 317 |
Qualified Production Activities, amount | 0 | (21) | 0 |
Other, amount | (88) | (124) | (51) |
Income tax (benefit) expense | $ (13,369) | $ 8,504 | $ 4,303 |
U.S. statutory rate, percent | 35.00% | 35.00% | 35.00% |
State income taxes, percent | (0.70%) | 1.00% | 2.70% |
Qualified Production Activities, percent | (0.00%) | (0.10%) | (0.00%) |
Other, percent | 0.20% | (0.20%) | (0.40%) |
Income tax (benefit) expense, percent | 34.50% | 35.70% | 37.30% |
Retirement and Long-Term Ince43
Retirement and Long-Term Incentive Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employer discretionary contribution | $ 2,300,000 | $ 2,600,000 | $ 2,700,000 | |
Available shares for future issuance | 1,345,887,000 | |||
Total unrecognized compensation costs | $ 3,000,000 | |||
Recognition of compensation cost weighted average period | 3 years 7 months 6 days | |||
Total fair value of shares vested | $ 600,000 | |||
Share-based compensation cost charged against income | 2,707,000 | 1,139,000 | 672,000 | |
Total income tax benefit under share-base compensation | 0 | 49,000 | 116,000 | |
Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation cost charged against income | $ 2,700,000 | $ 1,100,000 | $ 700,000 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 1,000,000 | |||
Employee Stock Option | Long Term Incentive Plan 2002 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 500,000 | |||
Employee Stock Option | Long Term Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 500,000 | |||
Employee Stock Option | Long Term Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 1,000,000 | |||
Non Performance Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period minimum | 3 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share awards | 262,964 | 107,840 | 178,950 | 143,150 |
Restricted Stock | Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vesting period | 6 months | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share awards | 0 | |||
Performance based share compensation expense | $ 1,100,000 | $ 0 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 2,700,000 | |||
Maximum | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for grant to an individual, shares | 400,000 | |||
Maximum | Employee Stock Option | Long Term Incentive Plan 2002 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for grant to an individual, shares | 200,000 | |||
Maximum | Employee Stock Option | Long Term Incentive Plan 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for grant to an individual, shares | 200,000 | |||
Maximum | Employee Stock Option | Long Term Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for grant to an individual, shares | 200,000 | |||
Options available for grant to an outside director, shares | 25,000 | |||
2015 Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period awards are earned | 2 years | |||
2016 Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance period awards are earned | 3 years |
Retirement and Long-Term Ince44
Retirement and Long-Term Incentive Plans - Summary of Status of Restricted Stock Awards (Detail) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares | |||
Number of restricted shares, beginning balance | 107,840 | 178,950 | 143,150 |
Number of shares, granted | 215,034 | 6,000 | 100,150 |
Number of shares, vested | (41,112) | (45,356) | (38,188) |
Number of shares, forfeited | (18,798) | (31,754) | (26,162) |
Number of restricted shares, ending balance | 262,964 | 107,840 | 178,950 |
Weighted Average Grant-Date Fair Value Per Share | |||
Weighted-average grant-date fair value, restricted shares, beginning balance | $ 24.27 | $ 24 | $ 24.28 |
Weighted-average grant-date fair value per share, granted | 16.33 | 23.19 | 23.22 |
Weighted-average grant-date fair value per share, vested | 22.04 | 23.35 | 23.14 |
Weighted-average grant-date fair value per share, forfeited | 21.39 | 23.85 | 23.82 |
Weighted-average grant-date fair value, restricted shares, ending balance | $ 18.33 | $ 24.27 | $ 24 |
Quarterly Operating Results (45
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 55,018 | $ 67,531 | $ 84,338 | $ 99,233 | $ 124,760 | $ 118,020 | $ 129,169 | $ 134,690 | $ 306,120 | $ 506,639 | $ 608,326 |
Gross profit (loss) | (17,572) | (7,837) | 5,805 | 4,448 | 10,808 | 14,653 | 10,322 | 8,773 | (15,156) | 44,556 | 23,661 |
Net (loss) income | $ (14,667) | $ (12,137) | $ 1,357 | $ 83 | $ (111) | $ 7,586 | $ 4,310 | $ 3,535 | $ (25,364) | $ 15,320 | $ 7,232 |
Basic and fully diluted EPS (in dollars per share) | $ (1.01) | $ (0.84) | $ 0.09 | $ 0 | $ (0.01) | $ 0.52 | $ 0.30 | $ 0.24 |
Quarterly Operating Results (46
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on contract recognized | $ 33.9 | $ 6.6 | $ 30.8 | |||
Impairment charge of asset held for sale | $ 0.6 | $ 6.6 | $ 3.2 | |||
Increase in allowance for doubtful accounts | $ 3.6 | |||||
Large Deepwater Project | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on contract recognized | $ 14.3 | |||||
Large Deepwater Project, Recently Delivered | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on contract recognized | 10.3 | $ 24.5 | ||||
Fabrication Facilities | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Loss on contract recognized | $ 7.6 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Feb. 25, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||
Dividends payable, date declared | Feb. 25, 2016 | ||
Dividends declared, payable date | Mar. 24, 2016 | ||
Dividends declared, record date | Mar. 10, 2016 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared per share | $ 0.01 | ||
Subsequent Event | LEEVAC Shipyards, LLC | |||
Subsequent Event [Line Items] | |||
Acquisition purchase price | $ 20 | ||
Cash received from acquisition | $ 1.6 |