Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 14,897,661 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 17,792 | $ 51,167 |
Contracts receivable and retainage, net | 25,513 | 20,169 |
Contracts in progress | 42,810 | 26,829 |
Prepaid expenses and other assets | 4,158 | 3,222 |
Inventory | 12,325 | 11,973 |
Assets held for sale | 107,010 | 0 |
Total current assets | 209,608 | 113,360 |
Property, plant and equipment, net | 90,989 | 206,222 |
Other assets | 2,783 | 2,826 |
Total assets | 303,380 | 322,408 |
Current liabilities: | ||
Accounts payable | 21,457 | 9,021 |
Advance billings on contracts | 4,367 | 3,977 |
Deferred revenue, current | 4,148 | 11,881 |
Accrued contract losses | 1,982 | 387 |
Accrued expenses and other liabilities | 13,685 | 10,032 |
Income tax payable | 0 | 50 |
Total current liabilities | 45,639 | 35,348 |
Net deferred tax liabilities | 12,999 | 23,234 |
Deferred revenue, noncurrent | 0 | 489 |
Other liabilities | 895 | 305 |
Total liabilities | 59,533 | 59,376 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, no par value, 20,000,000 shares authorized, 14,851,949 issued and outstanding at September 30, 2017, and 14,695,020 at December 31, 2016, respectively | 10,817 | 10,641 |
Additional paid-in capital | 100,388 | 98,813 |
Retained earnings | 132,642 | 153,578 |
Total shareholders’ equity | 243,847 | 263,032 |
Total liabilities and shareholders’ equity | $ 303,380 | $ 322,408 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 14,851,949 | 14,695,020 |
Common stock, shares outstanding (in shares) | 14,851,949 | 14,695,020 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 49,884 | $ 65,384 | $ 133,745 | $ 230,864 |
Cost of revenue | 50,378 | 60,125 | 150,755 | 205,839 |
Gross profit (loss) | (494) | 5,259 | (17,010) | 25,025 |
General and administrative expenses | 4,370 | 5,086 | 12,940 | 14,633 |
Asset impairment | 0 | 0 | 389 | 0 |
Operating income (loss) | (4,864) | 173 | (30,339) | 10,392 |
Other income (expense): | ||||
Interest expense | (45) | (110) | (262) | (248) |
Interest income | 0 | 12 | 12 | 20 |
Other income (expense), net | 38 | 599 | (221) | 1,039 |
Total other income (expense) | (7) | 501 | (471) | 811 |
Net income (loss) before income taxes | (4,871) | 674 | (30,810) | 11,203 |
Income tax expense (benefit) | (1,761) | 133 | (10,322) | 4,134 |
Net income (loss) | $ (3,110) | $ 541 | $ (20,488) | $ 7,069 |
Per share data: | ||||
Basic and diluted earnings (loss) per share - common shareholders (usd per share) | $ (0.21) | $ 0.04 | $ (1.38) | $ 0.48 |
Cash dividend declared per common share (usd per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2016 | 14,695,020 | 14,695,020 | ||
Beginning balance at Dec. 31, 2016 | $ 263,032 | $ 10,641 | $ 98,813 | $ 153,578 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (20,488) | (20,488) | ||
Vesting of restricted stock (in shares) | 156,929 | |||
Vesting of restricted stock | (885) | $ (88) | (797) | |
Compensation expense - restricted stock | 2,636 | $ 264 | 2,372 | |
Dividends on common stock | $ (448) | (448) | ||
Ending balance (in shares) at Sep. 30, 2017 | 14,851,949 | 14,851,949 | ||
Ending balance at Sep. 30, 2017 | $ 243,847 | $ 10,817 | $ 100,388 | $ 132,642 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (20,488) | $ 7,069 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Bad debt expense | 19 | 422 |
Depreciation and amortization | 10,141 | 19,262 |
Amortization of deferred revenue | (2,397) | (4,114) |
Asset impairment | 389 | 0 |
Loss (gain) on sale of assets | 224 | (924) |
Deferred income taxes | (10,235) | 3,651 |
Compensation expense - restricted stock | 2,636 | 2,452 |
Changes in operating assets and liabilities: | ||
Contracts receivable and retainage, net | (5,363) | 22,287 |
Contracts in progress | (15,981) | (5,834) |
Prepaid expenses, inventory, and other current assets | (26) | 1,050 |
Accounts payable | 12,436 | (13,654) |
Advance billings on contracts | 390 | (20) |
Deferred revenue | (5,825) | (8,928) |
Deferred compensation | 590 | 0 |
Accrued expenses and other liabilities | 2,336 | 4,713 |
Accrued contract losses | 1,595 | (8,001) |
Net cash (used in) provided by operating activities | (29,559) | 19,431 |
Cash flows from investing activities: | ||
Capital expenditures | (4,515) | (5,415) |
Net cash received in acquisition | 0 | 1,588 |
Proceeds from the sale of equipment | 2,120 | 5,813 |
Net cash (used in) provided by investing activities | (2,395) | 1,986 |
Cash flows from financing activities: | ||
Tax payments made on behalf of employees from withheld, vested shares of common stock | (885) | (163) |
Payment of financing cost | (88) | 0 |
Payments of dividends on common stock | (448) | (440) |
Proceeds received from borrowings under our line of credit | 2,000 | 0 |
Repayment of borrowings under our line of credit | (2,000) | 0 |
Net cash used in financing activities | (1,421) | (603) |
Net change in cash and cash equivalents | (33,375) | 20,814 |
Cash and cash equivalents at beginning of period | 51,167 | 34,828 |
Cash and cash equivalents at end of period | $ 17,792 | $ 55,642 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Gulf Island Fabrication, Inc. ("Gulf Island," and together with its subsidiaries "the Company," "we" or "our"), is a leading fabricator of complex steel structures and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation, alternative energy projects and shipping and marine transportation operations. We also provide related installation, hookup, commissioning, repair and maintenance services with specialized crews and integrated project management capabilities. We are currently fabricating complex modules for the construction of a new petrochemical plant and two multi-purpose service vessels. We recently fabricated offshore wind turbine foundations for the first offshore wind power project in the United States. We also constructed one of the largest liftboats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM and the first SPAR fabricated in the United States. Our customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power and marine operators. We operate and manage our business through three operating divisions: Fabrication, Shipyards and Services. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana. Our fabrication facilities in Aransas Pass and Ingleside, Texas are currently being marketed for sale. The consolidated financial statements include the accounts of Gulf Island Fabrication, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. For definitions of certain technical terms contained in this Form 10-Q, see the Glossary of Certain Technical Terms contained in our Annual Report on Form 10-K for the year ended December 31, 2016 . The accompanying unaudited, consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2017 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The balance sheet at December 31, 2016 , has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Reclassifications We made the following reclassifications to our financial statements for three and nine months ended September 30, 2016 , to conform to current period presentation: • We reclassified $163,000 from operating activities to financing activities in the Company’s consolidated statement of cash flows for the nine months ended September 30, 2016 , related to tax payments made by the Company to satisfy employee income tax withholding obligations arising from vesting shares as a result of the adoption of Accounting Standards Update 2016-09 as discussed in "New Accounting Standards" below. This reclassification had no impact to our financial position or results of operations. • We reclassified corporate administrative costs and overhead expenses previously allocated to the results of operations of our three operating divisions to our Corporate division for the three and nine months ended September 30, 2016 , to conform to current period presentation as discussed in Note 8. These reclassifications had no impact to our consolidated financial statements. New Accounting Standards On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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.” Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue from our fixed-price and unit-rate contracts is recognized under the percentage-of-completion method, computed by the significant inputs method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. Revenue from contracts that are based upon time worked and materials incurred (“T&M”) is recognized at the contracted rates as the work is performed and the costs are incurred. Topic 606 will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As part of our implementation of this standard, we have established an implementation team as well as employed the help of outside consultants to assist with the implementation. We have completed our scoping phase of this project and believe that we will continue to be able to recognize revenue for our fixed-price and unit-rate contracts using the percentage-of-completion method, computed by measuring the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. However, there are additional criteria to consider that can impact the timing and inclusion of revenue in our percentage-of-completion calculations. While these additional criteria could potentially impact the timing of revenue recognition, they would not change the timing for the recognition of costs. Additionally, implementation of Topic 606 requires that e ach performance obligation must be separately identified and the contract price allocated to it. A determination to combine a group of contracts into one performance obligation or segment a single contract into multiple performance obligations could change the amount of revenue and gross profit recorded in a given period. We expect to finalize a review of our contracts and complete our calculation of a cumulative implementation adjustment, if any, during the fourth quarter of 2017. At this time, we are unable to conclude whether there will be any cumulative implementation adjustments, if any, and whether or not they would be material. The guidance permits companies to either apply the new requirements retrospectively to all prior periods presented through use of the full retrospective method or apply the new requirements in the year of adoption through a cumulative adjustment using the modified retrospective method. We intend to use the modified retrospective model in adopting this standard, which will require a cumulative catch up adjustment, if any, on January 1, 2018. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. ASU 2015-16 is effective for annual periods beginning after December 15, 2016. We adopted this guidance effective January 1, 2017, which did not have an impact on our financial position, results of operations and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheets but recognize expenses in a manner similar to current guidance. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018. The guidance is required to be applied using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures; however, we expect to record our lease obligations on our balance sheet. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. We adopted the requirements of ASU 2016-09 effective January 1, 2017. The provisions of ASU No. 2016-09 that are applicable to the Company and affect the Company’s consolidated financial statements include the following: • This ASU requires the recognition of the excess tax benefit or tax deficiency resulting from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes created when common stock vests as an income tax benefit or expense in the Company’s statement of operations. Under previous GAAP, this difference was required to be recognized in additional paid-in capital. The expense or benefit required to be recognized is calculated separately as a discrete item each reporting period and not as part of the Company’s projected annual effective tax rate. During the three and nine months ended September 30, 2017 , we recorded tax expense of $1,000 and $215,000 , respectively (approximate $0.01 loss per share) related to the adoption of this ASU. We have adopted these provisions on a prospective basis and our prior period presentation has not changed. Future effects to the Company’s income tax expense (benefit) as a result of the adoption of this ASU will depend on the timing, number of shares and the closing price per share of the Company’s common stock on the dates of vesting. • This ASU also clarifies that cash paid by the Company to taxing authorities in order to satisfy employee income tax withholding obligations from vesting shares should be classified as a financing activity in the Company’s statement of cash flows. We have reported payments of $885,000 within financing activities within our consolidated statement of cash flows for the nine months ended September 30, 2017 , as a result of adoption of this ASU. We have adopted these provisions retrospectively and reclassified $163,000 from cash used in operating activities to cash used in financing activities for the nine months ended September 30, 2016 , to conform to the current period presentation. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018. We have not elected to early adopt this guidance. The guidance must be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE South Texas Assets: On February 23, 2017, our Board of Directors approved management's recommendation to place our South Texas facilities located in Aransas Pass and Ingleside, Texas, up for sale. Our Texas South Yard in Ingleside, Texas, is located on the northwest corner of the intersection of the U.S. Intracoastal Waterway and the Corpus Christi Ship Channel. The 45 -foot deep Corpus Christi Ship Channel provides direct and unrestricted access to the Gulf of Mexico. Our Texas North Yard in Aransas Pass, Texas, is located along the U.S. Intracoastal Waterway and is approximately three miles north of the Corpus Christi Ship Channel. These properties are currently underutilized and represent excess capacity within our Fabrication division. Our net book value of property, plant and equipment for these assets was $104.5 million at September 30, 2017 . We measure and record assets held for sale at the lower of their carrying amount or fair value less cost to sell. On August 25, 2017, our South Texas facilities were impacted by Hurricane Harvey, which made landfall as a category 4 hurricane. As a result, we suffered damages to our South Texas buildings and equipment. Through September 30, 2017, we have incurred approximately $265,000 in clean-up and repair related costs and we expect to incur additional future repair costs in excess of our deductible which management believes are probable of being recovered through insurance proceeds. We maintain coverage on these assets up to a maximum of $25.0 million , subject to a 3.0% deductible with a minimum deductible of $500,000 . We are working diligently with our insurance agents and adjusters to finalize our estimate of the damage; however, it may be several months, or even longer, before we can finalize our assessment and receive final payment from our insurance underwriters. Our insurance underwriters have made an initial payment of $3.0 million , and we have recorded a liability for future repairs of $2.7 million which is included in accrued expenses and other liabilities on our balance sheet at September 30, 2017 . Based upon our initial assessment of the damages and insurance coverage, management believes that there is no basis to record a net loss at this time and that insurance proceeds will at a minimum be sufficient to reimburse us for all damages and repair costs. Our final assessment of the damages incurred to our South Texas assets as well as the amount of insurance proceeds we will receive could be more or less than this amount when the claim is ultimately settled and such differences could be material. As a result of the decision to place our South Texas facilities up for sale, we have and will continue to incur costs associated with maintaining these facilities. These costs include insurance, general maintenance of the properties in their current state, property taxes and retained employees which will be expensed as incurred. We do not expect the sale of these assets to impact our ability to operate our Fabrication division. Our South Texas assets held for sale do not qualify for discontinued operations presentation. Prospect Shipyard Assets: We lease a 35 -acre complex 26 miles from the Gulf of Mexico in Houma, Louisiana. We have entered into an agreement to terminate the lease no later than December 31, 2017, with the owner of the property (currently a senior vice president within the Company and the former chief executive officer of LEEVAC Shipyards, LLC) to facilitate an orderly disposal of assets at the facility. Our remaining lease payments are not material. We have classified the machinery and equipment remaining at this shipyard as assets held for sale. Our net book value of property, plant and equipment for these assets was $2.5 million at September 30, 2017 . We measure and record assets held for sale at the lower of their carrying amount or fair value less cost to sell. We recorded an impairment of $389,000 during the nine months ended September 30, 2017 . Additionally, we sold two drydocks from our Prospect Shipyard for proceeds of $2.0 million and recorded a loss on sale of $259,000 during the nine months ended September 30, 2017 . We do not expect the sale of these assets to impact our ability to service our Shipyards customers. The future anticipated costs expected to be incurred prior to the termination of this lease are not significant to our consolidated financial statements. Our Prospect Shipyard assets held for sale do not qualify for discontinued operations presentation. A summary of the significant assets included in assets held for sale as of September 30, 2017 , at our South Texas facilities and our Prospect Shipyard is as follows (in thousands): Assets South Texas Fabrication Yards Prospect Shipyard Consolidated Land $ 5,492 $ — $ 5,492 Buildings and improvements 117,582 — 117,582 Machinery and equipment 93,552 2,719 96,271 Furniture and fixtures 867 82 949 Vehicles 610 — 610 Other — — — Less: accumulated depreciation (113,596 ) (298 ) (113,894 ) Total assets held for sale $ 104,507 $ 2,503 $ 107,010 |
REVENUE AND CONTRACT COSTS
REVENUE AND CONTRACT COSTS | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
REVENUE AND CONTRACT COSTS | REVENUE AND CONTRACT COSTS The Company uses the percentage-of-completion accounting method to recognize revenue from fixed-price and unit-rate contracts computed using the percentage of labor hours incurred as compared to estimated total labor hours to complete each contract. Revenue recognized in a period for a contract is the pro rata portion of the contract value based upon the labor hours incurred to the total labor hours estimated to complete the contract plus pass-through costs incurred during the period. We define pass-through costs as material, freight, equipment rental, and sub-contractor services that are included in the direct costs of revenue associated with projects. Consequently, pass-through costs are included in revenue but have no impact on the gross profit realized for that particular period. Our pass-through costs as a percentage of revenue for each period presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pass-through costs as a percentage of revenues 48.4% 33.8% 45.3% 35.0% Contracts in progress at September 30, 2017 , were $42.8 million with $31.7 million relating to two major customers. Advance billings on contracts at September 30, 2017 , was $4.4 million and included advances of $3.2 million from two major customers. Accrued contract losses were $2.0 million and $387,000 as of September 30, 2017 and December 31, 2016 , respectively. Our accrued contract losses as of September 30, 2017 , are a result of changes in estimates totaling $12.7 million identified during the nine months ended September 30, 2017 , due to cost overruns and re-work related to two vessels we are constructing for a major customer in our Shipyards division. Revenue and gross profit on contracts can be significantly affected by change orders and claims that may not be resolved until the later stages of the contract or after the contract has been completed and delivery occurs. At September 30, 2017 , we included no amounts in revenue related to change orders on projects which have been approved as to scope but not price. During the nine months ended September 30, 2016 , we recorded a loss of $488,000 for a single customer related to revenue on change orders recognized in prior periods that were not recovered. |
CONTRACTS RECEIVABLE AND RETAIN
CONTRACTS RECEIVABLE AND RETAINAGE | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
CONTRACTS RECEIVABLE AND RETAINAGE | CONTRACTS RECEIVABLE AND RETAINAGE Our customers include major and large independent oil and gas companies, petrochemical and industrial facilities, marine companies and their contractors. Of our contracts receivable balance at September 30, 2017 , $16.3 million , or 64.0% , was with three customers. The significant projects for these three customers consist of: • One large petroleum supply vessel for a customer in our Shipyards segment that was tendered for delivery on February 6, 2017 (see also Note 9 regarding this receivable as this customer has refused delivery of the vessel); • Offshore installation and hook-up work related to a customer within our Services division; and • The fabrication of four modules associated with a U.S. ethane cracker project. As of September 30, 2017 , we included an allowance for bad debt of $2.1 million in our contract receivable balance which primarily relates to a customer within our Fabrication division for the storage of an offshore drilling platform that was fully reserved in 2016 and a customer in our Shipyards division for storage and holding costs for a vessel that we completed and tendered for delivery on February 6, 2017, but was rejected by the customer alleging certain technical deficiencies. See Note 9. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company bases its 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. 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. We have classified our assets at our South Texas facilities and our Prospect Shipyard as assets held for sale at September 30, 2017 . We had no assets held for sale at December 31, 2016. On August 25, 2017, our South Texas facilities were impacted by Hurricane Harvey, which made landfall as a category 4 hurricane. As a result, we suffered damages to our South Texas buildings and equipment. See Note 2. Based upon our initial assessment of the damages and insurance coverage, management believes that there is no basis to record a net loss at this time and that insurance proceeds will at a minimum be sufficient to reimburse us for all damages and repair costs. During the nine months ended September 30, 2017 , we recorded an impairment of $389,000 related to the assets held for sale at our Prospect shipyard. See Note 2. |
EARNINGS PER SHARE AND SHAREHOL
EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY Earnings per Share: The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic and diluted: Numerator: Net income (loss) $ (3,110 ) $ 541 $ (20,488 ) $ 7,069 Less: Distributed and undistributed income (loss) (unvested restricted stock) (14 ) 2 (100 ) 70 Net income attributable to common shareholders $ (3,096 ) $ 539 $ (20,388 ) $ 6,999 Denominator: Weighted-average shares (1) 14,852 14,633 14,821 14,621 Basic and diluted earnings (loss) per share - common shareholders $ (0.21 ) $ 0.04 $ (1.38 ) $ 0.48 ______________ (1) We have no dilutive securities. |
LINE OF CREDIT
LINE OF CREDIT | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | LINE OF CREDIT On June 9, 2017, we entered into a $40.0 million credit agreement with Whitney Bank, as lender. The credit facility matures June 9, 2019 , and may be used for issuing letters of credit and/or general corporate and working capital purposes. Interest on drawings under the credit facility may be designated, at our option, as either Base Rate (as defined in the credit facility) or LIBOR plus 2.0% per annum. Unused commitment fees on the undrawn portion of the facility are 0.4% per annum, and interest on undrawn stated amounts under letters of credit issued by the lenders is 2.0% per annum. The credit facility is secured by substantially all of our assets (other than the assets of Gulf Marine Fabricators, L.P., the legal entity that holds our South Texas assets which are currently held for sale). We must comply with the following financial covenants each quarter during the term of the facility: i. Ratio of current assets to current liabilities of not less than 1.25 :1.00; ii. Minimum tangible net worth requirement of at least the sum of: a) $230.0 million , plus b) An amount equal to 50% of consolidated net income for each fiscal quarter ending after June 30, 2017 (with no deduction for a net loss in any such fiscal quarter except for any gain or loss in connection with the sale of assets by Gulf Marine Fabricators, L.P.), plus c) 100% of all net proceeds of any issuance of any stock or other equity after deducting of any fees, commissions, expenses and other costs incurred in such offering; and iii. Ratio of funded debt to tangible net worth of not more than 0.50 :1.00. Concurrent with our execution of the credit facility, we terminated our prior credit facility with JPMorgan Chase Bank, N.A. At the time of the termination, there was approximately $4.6 million of letters of credit outstanding. All were reissued as new letters of credit under the credit facility and accepted by the beneficiaries. At September 30, 2017 , no amounts were outstanding under the credit facility. As of September 30, 2017 , we were in compliance with all of our financial covenants. |
SEGMENT DISCLOSURES
SEGMENT DISCLOSURES | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT DISCLOSURES | SEGMENT DISCLOSURES We have structured our operations with three operating divisions and a corporate non-operating division. Beginning in 2017, management reduced its allocation of corporate administrative costs and overhead expenses from its corporate, non-operating division to its operating divisions in order to individually evaluate corporate administrative costs and overhead within our Corporate division as well as to not overly burden our operating divisions with costs that do not directly relate to their operations. Accordingly, a significant portion of our corporate administrative costs and overhead expenses are retained within the results of our corporate division. In addition, we have also allocated certain personnel previously included in the operating divisions to our Corporate division. In doing so, management believes that it has created a fourth reportable segment with each of its three operating divisions and its Corporate division each meeting the criteria of reportable segments under GAAP. Our operating divisions and Corporate division are discussed below. Fabrication - Our Fabrication division primarily fabricates structures such as offshore drilling and production platforms and other steel structures for customers in the oil and gas industries including jackets and deck sections of fixed production platforms along with pressure vessels. Our Fabrication division also fabricates structures for alternative energy customers (such as the five jackets and piles we constructed for a shallow water wind turbine project off the coast of Rhode Island during 2015) as well as modules for an LNG facility. We have historically performed these activities out of our fabrication yards in Houma, Louisiana and formerly out of our fabrication yards in Aransas Pass and Ingleside, Texas. Shipyards - Our Shipyards division primarily fabricates and repairs marine vessels including offshore supply vessels, anchor handling vessels, lift boats, tugboats and towboats. Our Shipyards division also constructs and owns drydocks to lift marine vessels out of the water in order to make repairs or modifications. Our marine repair activities include steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs and propeller, shaft and rudder reconditioning. Our Shipyards division also performs conversion projects that consist of lengthening or modifying the use of existing vessels to enhance their capacity or functionality. We perform these activities out of our facilities in Houma, Jennings and Lake Charles, Louisiana. Services - Our Services division primarily provides interconnect piping services on offshore platforms and inshore structures. Interconnect piping services involve sending employee crews to offshore platforms in the Gulf of Mexico to perform welding and other activities required to connect production equipment, service modules and other equipment on a platform. We also contract with oil and gas companies that have platforms and other structures located in the inland lakes and bays throughout the Southeast for various on-site construction and maintenance activities. In addition, our Services division can fabricate packaged skid units and construct various municipal and drainage projects, such as pump stations, levee reinforcement, bulkheads and other projects for state and local governments. Corporate - Our Corporate division primarily includes expenses that do not directly relate to the operations or shared services provided to our three operating divisions. Expenses for shared services, which include human resources, insurance, business development, accounting salaries, etc., are allocated to the operating divisions. Expenses that are not allocated include, but are not limited to, costs related to executive management and directors' fees, clerical and administrative salaries, costs of maintaining the corporate office and costs associated with being a publicly traded company and its overall governance. We generally evaluate the performance of, and allocate resources to, our segments based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each segment. Corporate administrative costs and overhead are allocated to our three operating divisions for expenses that directly relate to the operations or relate to shared services as discussed above. During 2016, we allocated substantially all of our corporate administrative costs and overhead to our three operating divisions. We have recast our 2016 segment data below in order to conform to the current period presentation. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information concerning our segments as of and for the three and nine months ended September 30, 2017 and 2016 , is as follows (in thousands): Three Months Ended September 30, 2017 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 18,318 $ 15,074 $ 17,651 $ — $ (1,159 ) $ 49,884 Gross profit (loss) 1,250 (3,504 ) 1,912 (152 ) — (494 ) Operating income (loss) 472 (4,392 ) 1,217 (2,161 ) — (4,864 ) Total assets 205,463 96,614 100,820 364,016 (463,533 ) 303,380 Depreciation and amortization expense 1,133 1,030 413 95 — 2,671 Capital expenditures 1,479 1,054 94 25 — 2,652 Three Months Ended September 30, 2016 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 22,311 $ 23,060 $ 20,928 $ — $ (915 ) $ 65,384 Gross profit (loss) 601 1,945 2,918 (205 ) — 5,259 Operating income (loss) (284 ) 477 1,975 (1,995 ) — 173 Total assets 285,320 75,779 100,781 332,617 (457,285 ) 337,212 Depreciation and amortization expense 4,637 1,183 443 123 — 6,386 Capital expenditures 1,228 318 565 14 — 2,125 Nine Months Ended September 30, 2017 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 42,517 $ 51,798 $ 43,758 $ — $ (4,328 ) $ 133,745 Gross profit (loss) 216 (19,061 ) 2,335 (500 ) — (17,010 ) Operating income (loss) (2,216 ) (22,285 ) 327 (6,165 ) — (30,339 ) Total assets 205,463 96,614 100,820 364,016 (463,533 ) 303,380 Depreciation and amortization expense 5,420 3,034 1,266 421 — 10,141 Capital expenditures 2,327 1,872 199 117 — 4,515 Nine Months Ended September 30, 2016 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 70,436 $ 86,553 $ 76,179 $ — $ (2,304 ) $ 230,864 Gross profit (loss) 4,564 9,742 11,158 (439 ) — 25,025 Operating income (loss) 1,743 5,524 8,696 (5,571 ) — 10,392 Total assets 285,320 75,779 100,781 332,617 (457,285 ) 337,212 Depreciation and amortization expense 14,081 3,507 1,342 332 — 19,262 Capital expenditures 2,539 534 1,612 730 — 5,415 ____________ (1) Revenue includes non-cash amortization of deferred revenue related to the values assigned to contracts acquired in the LEEVAC transaction of $510,000 and $1.5 million for the three months ended September 30, 2017 and 2016 and $2.4 million and $4.1 million for the nine months ended September 30, 2017 and 2016 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and Arbitration: During the third and fourth quarters of 2015, we recorded contract losses totaling $24.5 million related to a large deepwater project we delivered in November 2015. No amounts with respect to these disputed change orders are included on our consolidated balance sheet or recognized in revenue in our consolidated statement of operations as of and for the three and nine months ended September 30, 2017 and 2016 . In the second quarter of 2016, we initiated legal action to recover our costs from these disputed change orders. We can give no assurance that our actions will be successful or that we will recover all or any portion of these contract losses from our customer. On October 21, 2016, a customer of our Shipyards division announced it was in noncompliance with certain financial covenants included in the customer’s debt agreements and stated that, while it had received limited waivers from its lenders, its debt agreements would require further negotiation and amendment. This same customer rejected delivery of the first vessel that we completed and tendered for delivery on February 6, 2017, alleging certain technical deficiencies exist with respect to the vessel. On March 10, 2017, we gave notice for arbitration with our customer in an effort to resolve this matter and subsequently suspended fabrication of the second vessel under contract with this customer, which is included in our arbitration proceedings. We disagree with our customer concerning these alleged technical deficiencies and have put the customer in default under the terms of both vessel contracts. The customer is seeking recovery of $84.8 million representing all purchase price amounts previously paid by the customer under both contracts. On May 17, 2017, the customer filed for protection under Chapter 11 of the United States Bankruptcy Code for reorganization under a negotiated, pre-packaged plan. The customer has emerged from Chapter 11 Bankruptcy and the Bankruptcy Court has approved the customer's retention and acceptance of both contracts. As of September 30, 2017 , approximately $4.6 million remained due and outstanding from our customer for the first vessel. The balance due to us for the second vessel upon completion and delivery is approximately $4.9 million . We are working with legal counsel to protect our contractual claims, and we have re-initiated arbitration proceedings in accordance with our contracts. We are in the process of discovery. The customer has recently named a new interim chief executive officer who has made contact with our management, and we are working to resolve our dispute in a constructive manner. We intend to take all legal action as may be necessary to protect our rights under the contracts and recover the remaining balances owed to us. Because these vessels have been completed or are substantially complete, we believe that they have significant fair value and that we would be able to fully recover any remaining amounts due to us in the event we enforce our security interest over these projects. Customer Contract: Included in our results of operations for the nine months ended September 30, 2017 , are $12.7 million of contract losses incurred by our Shipyards division related to cost overruns and re-work identified on two newbuild vessel construction contracts from a customer. We and our customer are in discussions to pause construction of the vessels as we resolve electrical and engineering and design issues causing a significant portion of the re-work and cost overruns. Our estimates to complete these vessels contemplate this pause to resolve issues as well as the related delivery schedule. Actual costs to complete and agreed to delivery dates could be different than our estimates. Each vessel contract contains penalties from $0 to a maximum of $5.6 million per vessel for late delivery. We believe, but can provide no assurance, that we will be successful in mutually resolving these issues with our customer in accordance with our estimates. Management has not accrued for any penalties as of September 30, 2017 , as we believe penalties are not deemed probable, nor are they estimable at this time. Hurricane Harvey: See Note 2 for a discussion of damages incurred from Hurricane Harvey at our South Texas facilities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 26, 2017 , our Board of Directors declared a dividend of $ 0.01 per share on our shares of common stock outstanding, payable November 24, 2017 , to shareholders of record on November 10, 2017 . |
Organization and Summary of S17
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Standards | New Accounting Standards On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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.” Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue from our fixed-price and unit-rate contracts is recognized under the percentage-of-completion method, computed by the significant inputs method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. Revenue from contracts that are based upon time worked and materials incurred (“T&M”) is recognized at the contracted rates as the work is performed and the costs are incurred. Topic 606 will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. As part of our implementation of this standard, we have established an implementation team as well as employed the help of outside consultants to assist with the implementation. We have completed our scoping phase of this project and believe that we will continue to be able to recognize revenue for our fixed-price and unit-rate contracts using the percentage-of-completion method, computed by measuring the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. However, there are additional criteria to consider that can impact the timing and inclusion of revenue in our percentage-of-completion calculations. While these additional criteria could potentially impact the timing of revenue recognition, they would not change the timing for the recognition of costs. Additionally, implementation of Topic 606 requires that e ach performance obligation must be separately identified and the contract price allocated to it. A determination to combine a group of contracts into one performance obligation or segment a single contract into multiple performance obligations could change the amount of revenue and gross profit recorded in a given period. We expect to finalize a review of our contracts and complete our calculation of a cumulative implementation adjustment, if any, during the fourth quarter of 2017. At this time, we are unable to conclude whether there will be any cumulative implementation adjustments, if any, and whether or not they would be material. The guidance permits companies to either apply the new requirements retrospectively to all prior periods presented through use of the full retrospective method or apply the new requirements in the year of adoption through a cumulative adjustment using the modified retrospective method. We intend to use the modified retrospective model in adopting this standard, which will require a cumulative catch up adjustment, if any, on January 1, 2018. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. ASU 2015-16 is effective for annual periods beginning after December 15, 2016. We adopted this guidance effective January 1, 2017, which did not have an impact on our financial position, results of operations and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheets but recognize expenses in a manner similar to current guidance. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018. The guidance is required to be applied using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures; however, we expect to record our lease obligations on our balance sheet. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. We adopted the requirements of ASU 2016-09 effective January 1, 2017. The provisions of ASU No. 2016-09 that are applicable to the Company and affect the Company’s consolidated financial statements include the following: • This ASU requires the recognition of the excess tax benefit or tax deficiency resulting from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes created when common stock vests as an income tax benefit or expense in the Company’s statement of operations. Under previous GAAP, this difference was required to be recognized in additional paid-in capital. The expense or benefit required to be recognized is calculated separately as a discrete item each reporting period and not as part of the Company’s projected annual effective tax rate. During the three and nine months ended September 30, 2017 , we recorded tax expense of $1,000 and $215,000 , respectively (approximate $0.01 loss per share) related to the adoption of this ASU. We have adopted these provisions on a prospective basis and our prior period presentation has not changed. Future effects to the Company’s income tax expense (benefit) as a result of the adoption of this ASU will depend on the timing, number of shares and the closing price per share of the Company’s common stock on the dates of vesting. • This ASU also clarifies that cash paid by the Company to taxing authorities in order to satisfy employee income tax withholding obligations from vesting shares should be classified as a financing activity in the Company’s statement of cash flows. We have reported payments of $885,000 within financing activities within our consolidated statement of cash flows for the nine months ended September 30, 2017 , as a result of adoption of this ASU. We have adopted these provisions retrospectively and reclassified $163,000 from cash used in operating activities to cash used in financing activities for the nine months ended September 30, 2016 , to conform to the current period presentation. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018. We have not elected to early adopt this guidance. The guidance must be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Significant Assets Included in Assets Held for Sale | A summary of the significant assets included in assets held for sale as of September 30, 2017 , at our South Texas facilities and our Prospect Shipyard is as follows (in thousands): Assets South Texas Fabrication Yards Prospect Shipyard Consolidated Land $ 5,492 $ — $ 5,492 Buildings and improvements 117,582 — 117,582 Machinery and equipment 93,552 2,719 96,271 Furniture and fixtures 867 82 949 Vehicles 610 — 610 Other — — — Less: accumulated depreciation (113,596 ) (298 ) (113,894 ) Total assets held for sale $ 104,507 $ 2,503 $ 107,010 |
Revenue and Contract Costs (Tab
Revenue and Contract Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Contractors [Abstract] | |
Pass-through Costs as a Percentage of Revenue | Our pass-through costs as a percentage of revenue for each period presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Pass-through costs as a percentage of revenues 48.4% 33.8% 45.3% 35.0% |
Earnings Per Share and Shareh20
Earnings Per Share and Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic and diluted: Numerator: Net income (loss) $ (3,110 ) $ 541 $ (20,488 ) $ 7,069 Less: Distributed and undistributed income (loss) (unvested restricted stock) (14 ) 2 (100 ) 70 Net income attributable to common shareholders $ (3,096 ) $ 539 $ (20,388 ) $ 6,999 Denominator: Weighted-average shares (1) 14,852 14,633 14,821 14,621 Basic and diluted earnings (loss) per share - common shareholders $ (0.21 ) $ 0.04 $ (1.38 ) $ 0.48 ______________ (1) We have no dilutive securities. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information concerning our segments as of and for the three and nine months ended September 30, 2017 and 2016 , is as follows (in thousands): Three Months Ended September 30, 2017 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 18,318 $ 15,074 $ 17,651 $ — $ (1,159 ) $ 49,884 Gross profit (loss) 1,250 (3,504 ) 1,912 (152 ) — (494 ) Operating income (loss) 472 (4,392 ) 1,217 (2,161 ) — (4,864 ) Total assets 205,463 96,614 100,820 364,016 (463,533 ) 303,380 Depreciation and amortization expense 1,133 1,030 413 95 — 2,671 Capital expenditures 1,479 1,054 94 25 — 2,652 Three Months Ended September 30, 2016 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 22,311 $ 23,060 $ 20,928 $ — $ (915 ) $ 65,384 Gross profit (loss) 601 1,945 2,918 (205 ) — 5,259 Operating income (loss) (284 ) 477 1,975 (1,995 ) — 173 Total assets 285,320 75,779 100,781 332,617 (457,285 ) 337,212 Depreciation and amortization expense 4,637 1,183 443 123 — 6,386 Capital expenditures 1,228 318 565 14 — 2,125 Nine Months Ended September 30, 2017 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 42,517 $ 51,798 $ 43,758 $ — $ (4,328 ) $ 133,745 Gross profit (loss) 216 (19,061 ) 2,335 (500 ) — (17,010 ) Operating income (loss) (2,216 ) (22,285 ) 327 (6,165 ) — (30,339 ) Total assets 205,463 96,614 100,820 364,016 (463,533 ) 303,380 Depreciation and amortization expense 5,420 3,034 1,266 421 — 10,141 Capital expenditures 2,327 1,872 199 117 — 4,515 Nine Months Ended September 30, 2016 Fabrication Shipyards (1) Services Corporate Eliminations Consolidated Revenue $ 70,436 $ 86,553 $ 76,179 $ — $ (2,304 ) $ 230,864 Gross profit (loss) 4,564 9,742 11,158 (439 ) — 25,025 Operating income (loss) 1,743 5,524 8,696 (5,571 ) — 10,392 Total assets 285,320 75,779 100,781 332,617 (457,285 ) 337,212 Depreciation and amortization expense 14,081 3,507 1,342 332 — 19,262 Capital expenditures 2,539 534 1,612 730 — 5,415 ____________ (1) Revenue includes non-cash amortization of deferred revenue related to the values assigned to contracts acquired in the LEEVAC transaction of $510,000 and $1.5 million for the three months ended September 30, 2017 and 2016 and $2.4 million and $4.1 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($)segment$ / shares | Sep. 30, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Number of operating segments | segment | 3 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by (used in) operating activities | $ (29,559) | $ 19,431 | |
Share-based compensation, tax expense | $ 1 | $ 215 | |
Loss per share from share-based compensation tax expense (dollars per share) | $ / shares | $ 0.01 | ||
Tax payments made on behalf of employees from withheld, vested shares of common stock | $ 885 | 163 | |
Net cash provided by (used in) financing activities | $ (1,421) | (603) | |
Accounting Standards Update 2016-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by (used in) operating activities | 163 | ||
Net cash provided by (used in) financing activities | $ (163) |
Assets Held for Sale - Narrativ
Assets Held for Sale - Narrative (Details) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($)a | Sep. 30, 2017USD ($)adrydock | |
Long Lived Assets Held-for-sale [Line Items] | ||
Drydocks sold | drydock | 2 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Property, plant and equipment held for sale | $ 107,010,000 | $ 107,010,000 |
South Texas Fabrication Yards | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Property, plant and equipment held for sale | 104,507,000 | $ 104,507,000 |
Clean-up and repair related costs due to Hurricane Harvey | $ 265,000 | |
Insurance deductible, percent | 3.00% | 3.00% |
Insurance initial payment | $ 3,000,000 | |
South Texas Fabrication Yards | Disposal Group, Held-for-sale, Not Discontinued Operations | Accrued Liabilities | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Accrual for future repairs | $ 2,700,000 | 2,700,000 |
South Texas Fabrication Yards | Disposal Group, Held-for-sale, Not Discontinued Operations | Maximum | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Insurance coverage | 25,000,000 | 25,000,000 |
South Texas Fabrication Yards | Disposal Group, Held-for-sale, Not Discontinued Operations | Minimum | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Insurance deductible, value | 500,000 | 500,000 |
Prospect Shipyard | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Loss on sale of assets | 259,000 | |
Prospect Shipyard | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Property, plant and equipment held for sale | $ 2,503,000 | $ 2,503,000 |
Area of leased facility (in acres) | a | 35 | 35 |
Impairment of assets held for sale | $ 389,000 | |
Prospect Shipyard | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Proceeds from sale of assets | $ 2,000,000 | $ 2,000,000 |
Assets Held for Sale - Signific
Assets Held for Sale - Significant Assets Included in Assets Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Thousands | Sep. 30, 2017USD ($) |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | $ (113,894) |
Total assets held for sale | 107,010 |
South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | (113,596) |
Total assets held for sale | 104,507 |
Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | (298) |
Total assets held for sale | 2,503 |
Land | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 5,492 |
Land | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 5,492 |
Land | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Buildings and improvements | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 117,582 |
Buildings and improvements | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 117,582 |
Buildings and improvements | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Machinery and equipment | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 96,271 |
Machinery and equipment | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 93,552 |
Machinery and equipment | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 2,719 |
Furniture and fixtures | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 949 |
Furniture and fixtures | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 867 |
Furniture and fixtures | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 82 |
Vehicles | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 610 |
Vehicles | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 610 |
Vehicles | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Other | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Other | South Texas Fabrication Yards | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Other | Prospect Shipyard | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | $ 0 |
Revenue and Contract Costs - Pa
Revenue and Contract Costs - Pass Through Costs (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Contractors [Abstract] | ||||
Pass-through costs as a percentage of revenues | 48.40% | 33.80% | 45.30% | 35.00% |
Revenue and Contract Costs - Na
Revenue and Contract Costs - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Long-term Contracts or Programs Disclosure [Line Items] | |||
Contracts in progress | $ 42,810,000 | $ 26,829,000 | |
Advance billings on contracts | 4,367,000 | 3,977,000 | |
Accrued contract losses | 1,982,000 | $ 387,000 | |
Change in estimated costs | 12,700,000 | ||
Loss related to disputed change orders | $ 488,000 | ||
Project, Approved Scope, Unapproved Price | |||
Long-term Contracts or Programs Disclosure [Line Items] | |||
Revenue | 0 | ||
Two Major Customers | Costs in Excess of Billings | Customer Concentration Risk | |||
Long-term Contracts or Programs Disclosure [Line Items] | |||
Contracts in progress | 31,700,000 | ||
Two Major Customers | Billings in Excess of Costs | Customer Concentration Risk | |||
Long-term Contracts or Programs Disclosure [Line Items] | |||
Customer advances | $ 3,200,000 |
Contracts Receivable and Reta27
Contracts Receivable and Retainage (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)modulevessel | Dec. 31, 2016USD ($) | |
Long-term Contracts or Programs Disclosure [Line Items] | ||
Contract receivable | $ 25,513 | $ 20,169 |
Number of vessels with contract receivables | vessel | 1 | |
Allowance for bad debt | $ 2,100 | |
Two Major Customers | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Number of modules with contract receivables | module | 4 | |
Two Major Customers | Contract Receivable | Customer Concentration Risk | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Contract receivable | $ 16,300 | |
Percentage of contract receivable | 64.00% |
Fair Value Measurement - Proper
Fair Value Measurement - Property, Plant, and Equipment Reclassified (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held-for-sale | $ 0 | |
Prospect Shipyard | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Impairment of assets held for sale | $ 389,000 |
Earnings Per Share and Shareh29
Earnings Per Share and Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income (loss) | $ (3,110) | $ 541 | $ (20,488) | $ 7,069 |
Less: Distributed and undistributed income (loss) (unvested restricted stock) | (14) | 2 | (100) | 70 |
Net income attributable to common shareholders | $ (3,096) | $ 539 | $ (20,388) | $ 6,999 |
Denominator: | ||||
Weighted-average shares (in shares) | 14,852,000 | 14,633,000 | 14,821,000 | 14,621,000 |
Basic and diluted earnings (loss) per share - common shareholders (usd per share) | $ (0.21) | $ 0.04 | $ (1.38) | $ 0.48 |
Dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Line of Credit (Details)
Line of Credit (Details) | Jun. 09, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 08, 2017USD ($) |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 40,000,000 | ||
Financial covenants, minimum current assets to current liabilities ratio | 1.25 | ||
Financial covenants, minimum net worth | $ 230,000,000 | ||
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 covenant, maximum funded debt to tangible net worth ratio | 0.5 | ||
Total outstanding letters of credit | $ 4,600,000 | ||
Revolving credit facility, borrowings outstanding | $ 0 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate | 2.00% | ||
Letter of Credit | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Fees on undrawn borrowings | 0.40% |
Segment Disclosures (Details)
Segment Disclosures (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating divisions | segment | 3 | ||||
Revenue | $ 49,884 | $ 65,384 | $ 133,745 | $ 230,864 | |
Gross profit (loss) | (494) | 5,259 | (17,010) | 25,025 | |
Operating income (loss) | (4,864) | 173 | (30,339) | 10,392 | |
Total assets | 303,380 | 337,212 | 303,380 | 337,212 | $ 322,408 |
Depreciation and amortization expense | 2,671 | 6,386 | 10,141 | 19,262 | |
Capital expenditures | 2,652 | 2,125 | 4,515 | 5,415 | |
Recognition of deferred revenue | 510 | 1,500 | 2,397 | 4,114 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Gross profit (loss) | (152) | (205) | (500) | (439) | |
Operating income (loss) | (2,161) | (1,995) | (6,165) | (5,571) | |
Total assets | 364,016 | 332,617 | 364,016 | 332,617 | |
Depreciation and amortization expense | 95 | 123 | 421 | 332 | |
Capital expenditures | 25 | 14 | 117 | 730 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (1,159) | (915) | (4,328) | (2,304) | |
Gross profit (loss) | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Total assets | (463,533) | (457,285) | (463,533) | (457,285) | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Fabrication | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 18,318 | 22,311 | 42,517 | 70,436 | |
Gross profit (loss) | 1,250 | 601 | 216 | 4,564 | |
Operating income (loss) | 472 | (284) | (2,216) | 1,743 | |
Total assets | 205,463 | 285,320 | 205,463 | 285,320 | |
Depreciation and amortization expense | 1,133 | 4,637 | 5,420 | 14,081 | |
Capital expenditures | 1,479 | 1,228 | 2,327 | 2,539 | |
Shipyards | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 15,074 | 23,060 | 51,798 | 86,553 | |
Gross profit (loss) | (3,504) | 1,945 | (19,061) | 9,742 | |
Operating income (loss) | (4,392) | 477 | (22,285) | 5,524 | |
Total assets | 96,614 | 75,779 | 96,614 | 75,779 | |
Depreciation and amortization expense | 1,030 | 1,183 | 3,034 | 3,507 | |
Capital expenditures | 1,054 | 318 | 1,872 | 534 | |
Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 17,651 | 20,928 | 43,758 | 76,179 | |
Gross profit (loss) | 1,912 | 2,918 | 2,335 | 11,158 | |
Operating income (loss) | 1,217 | 1,975 | 327 | 8,696 | |
Total assets | 100,820 | 100,781 | 100,820 | 100,781 | |
Depreciation and amortization expense | 413 | 443 | 1,266 | 1,342 | |
Capital expenditures | $ 94 | $ 565 | $ 199 | $ 1,612 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 10, 2017 | Dec. 31, 2015 | Sep. 30, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||||
Contract receivable | $ 25,513,000 | $ 20,169,000 | ||
Contracts in progress | 42,810,000 | $ 26,829,000 | ||
Change in estimated costs | 12,700,000 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Possible late delivery penalty per contract | 0 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Possible late delivery penalty per contract | 5,600,000 | |||
Customer of Shipyard | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, damages sought by plaintiff | $ 84,800,000 | |||
Customer of Shipyard | Contract Receivable | ||||
Loss Contingencies [Line Items] | ||||
Contract receivable | 4,600,000 | |||
Contracts in progress | $ 4,900,000 | |||
Large Deepwater Project, Recently Delivered | ||||
Loss Contingencies [Line Items] | ||||
Contract losses | $ 24,500,000 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Oct. 26, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||||
Dividends declared per share (usd per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (usd per share) | $ 0.01 |