Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 08, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 15,083,221 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 45,020 | $ 8,983 |
Short-term investments | 9,494 | 0 |
Contracts receivable and retainage, net | 28,933 | 28,466 |
Contracts in progress | 40,187 | 28,373 |
Inventory | 6,568 | 4,933 |
Prepaid expenses and other assets | 3,456 | 3,833 |
Assets held for sale | 42,670 | 104,576 |
Total current assets | 176,328 | 179,164 |
Property, plant and equipment, net | 80,707 | 88,899 |
Other noncurrent assets | 5,922 | 2,777 |
Total assets | 262,957 | 270,840 |
Current liabilities: | ||
Accounts payable | 20,166 | 18,375 |
Advance billings on contracts | 14,930 | 5,136 |
Deferred revenue | 829 | 4,676 |
Accrued contract losses | 6,033 | 7,618 |
Accrued expenses and other liabilities | 10,339 | 12,860 |
Total current liabilities | 52,297 | 48,665 |
Deferred revenue, noncurrent | 2,489 | 769 |
Other noncurrent liabilities | 3,035 | 1,913 |
Total liabilities | 57,821 | 51,347 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, no par value, 20,000 shares authorized, 15,044 shares issued and outstanding at September 30, 2018 and 14,910 at December 31, 2017 | 10,957 | 10,823 |
Additional paid-in capital | 101,661 | 100,456 |
Retained earnings | 92,518 | 108,214 |
Total shareholders’ equity | 205,136 | 219,493 |
Total liabilities and shareholders’ equity | $ 262,957 | $ 270,840 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2018 | Dec. 31, 2017 |
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) | 15,044,000 | 14,910,000 |
Common stock, shares outstanding (in shares) | 15,044,000 | 14,910,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 49,712 | $ 49,884 | $ 161,016 | $ 133,745 |
Cost of revenue | 52,924 | 50,378 | 164,248 | 150,755 |
Gross loss | (3,212) | (494) | (3,232) | (17,010) |
General and administrative expenses | 7,672 | 4,370 | 17,473 | 12,940 |
Asset impairments | 0 | 0 | 1,360 | 389 |
Operating loss | (10,884) | (4,864) | (22,065) | (30,339) |
Interest income (expense), net | 72 | (45) | (166) | (262) |
Other income (expense), net | 140 | 38 | 6,954 | (209) |
Net loss before income taxes | (10,672) | (4,871) | (15,277) | (30,810) |
Income tax expense (benefit) | 277 | (1,761) | 419 | (10,322) |
Net loss | $ (10,949) | $ (3,110) | $ (15,696) | $ (20,488) |
Per share data: | ||||
Basic and diluted loss per common share (in dollars per share) | $ (0.73) | $ (0.21) | $ (1.05) | $ (1.38) |
Cash dividends per common share (in dollars per share) | $ 0 | $ 0.01 | $ 0 | $ 0.03 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - 9 months ended Sep. 30, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2017 | 14,910 | 14,910 | ||
Beginning balance at Dec. 31, 2017 | $ 219,493 | $ 10,823 | $ 100,456 | $ 108,214 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (15,696) | (15,696) | ||
Restricted stock vesting (in shares) | 134 | |||
Restricted stock vesting | (795) | $ (79) | (716) | |
Stock based compensation expense | $ 2,134 | $ 213 | 1,921 | |
Ending balance (in shares) at Sep. 30, 2018 | 15,044 | 15,044 | ||
Ending balance at Sep. 30, 2018 | $ 205,136 | $ 10,957 | $ 101,661 | $ 92,518 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (15,696) | $ (20,488) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Bad debt expense | 2,776 | 19 |
Depreciation and amortization | 7,834 | 10,141 |
Amortization of deferred revenue | (504) | (2,397) |
Asset impairments | 1,360 | 389 |
(Gain) loss on sale of assets, net | (3,496) | 224 |
Gain on insurance recoveries, net | (3,342) | 0 |
Deferred income taxes | 0 | (10,235) |
Stock based compensation expense | 2,134 | 2,636 |
Changes in operating assets and liabilities: | ||
Contracts receivable and retainage, net | (6,211) | (5,363) |
Contracts in progress | (11,814) | (15,981) |
Prepaid expenses, inventory, and other assets | (2,519) | (26) |
Accounts payable | 1,791 | 12,436 |
Advance billings on contracts | 9,795 | 390 |
Deferred revenue | (1,621) | (5,825) |
Accrued contract losses | (1,585) | 1,595 |
Accrued expenses and other liabilities | 2,432 | 2,926 |
Net cash used in operating activities | (18,666) | (29,559) |
Cash flows from investing activities: | ||
Capital expenditures | (2,362) | (4,515) |
Purchase of short-term investments | (9,174) | 0 |
Proceeds from sale of property, plant and equipment | 57,716 | 2,120 |
Recoveries from insurance claims | 9,362 | 0 |
Net cash provided by (used in) investing activities | 55,542 | (2,395) |
Cash flows from financing activities: | ||
Tax payments made on behalf of employees from vested stock withholdings | (795) | (885) |
Payment of financing cost | (44) | (88) |
Payments of dividends on common stock | 0 | (448) |
Proceeds from borrowings under Credit Agreement | 15,000 | 2,000 |
Repayment of borrowings under Credit Agreement | (15,000) | (2,000) |
Net cash used in financing activities | (839) | (1,421) |
Net change in cash and cash equivalents | 36,037 | (33,375) |
Cash and cash equivalents, beginning of period | 8,983 | 51,167 |
Cash and cash equivalents, end of period | $ 45,020 | $ 17,792 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We are a leading fabricator of complex steel structures, modules and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation, alternative energy and shipping and marine transportation operations. We also provide related project management for EPC projects along with installation, hookup, commissioning and repair and maintenance services. In addition, we perform civil, drainage and other work for state and local governments. We operate and manage our business through four operating divisions: Fabrication, Shipyard, Services and EPC. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana. We recently completed the fabrication of complex modules for the construction of a new petrochemical facility and the newbuild construction and delivery of a technologically-advanced OSV. Current significant projects include the construction of ten harbor tug vessels, two offshore regional class marine research vessels, an ice-breaker tug, and the expansion of a paddle wheel riverboat. We were also recently awarded a contract for the construction of a towing, salvage and rescue ship for the U.S. Navy with options for seven additional vessels. Previous projects include the fabrication of wind turbine pedestals for the first offshore wind power project in the U.S., and construction of one of the largest liftboats servicing the GOM, one of the deepest production jackets in the GOM, and the first SPAR hull fabricated in the U.S. Our customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power, and marine operators, EPC companies and certain agencies of the U.S. government. The accompanying unaudited Consolidated Financial Statements include the accounts of Gulf Island Fabrication, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial statements, 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 our opinion, 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, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The Consolidated Balance Sheet at December 31, 2017 , 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. Certain balances at December 31, 2017 have been reclassified within our Consolidated Balance Sheet to conform to our September 30, 2018 presentation. For further information, refer to the Consolidated Financial Statements and notes thereto included in our 2017 Annual Report. Business Outlook We continue to strategically position the Company to participate in the fabrication of petrochemical and industrial facilities, pursue offshore wind opportunities, enter the EPC industry, and diversify our customer base within all of our operating divisions. In addition, we continue to focus on maintaining liquidity and securing meaningful new contract awards and backlog in the near-term, and generating operating income and cash flow from operations in the longer-term. We have made significant progress in our efforts to improve our liquidity, including reductions in costs (including reducing our workforce and reducing the cash compensation paid to our directors and the salaries of our executive officers) and the divestiture of underutilized assets. During the second quarter 2018, we completed the sale our Texas South Yard for $55.0 million , less selling costs of $1.5 million , for total net proceeds during the nine months ended September 30, 2018 of $53.5 million and a gain of approximately $3.9 million . In addition, on September 26, 2018, we entered into an agreement to sell our Texas North Yard and certain associated equipment for $28.0 million . We received $0.5 million during the third quarter 2018 as a deposit on the property, which is refundable under certain circumstances. The sale is anticipated to close in the fourth quarter 2018 and is subject to customary closing conditions, including the purchaser’s right to conduct inspections of the property related to confirmation of title, surveys, environmental conditions, easements and access rights, and third-party consents. See Note 2 for further discussion of the sale of our Texas South Yard and the anticipated sale of our Texas North Yard. We believe that our cash, cash equivalents and short-term investments at September 30, 2018 , and availability under our Credit Agreement, will be sufficient to enable us to fund our operating expenses, meet our working capital and capital expenditure requirements, and satisfy any debt service obligations or other funding requirements, for at least twelve months from the date of this Report. Cash and cash equivalents We consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Short-term investments Short-term investments include U.S. Treasuries and other investment-grade commercial paper with maturities of six months or less. We intend to hold these investments until maturity and have stated them at amortized cost. Due to their near-term maturities, amortized cost approximates fair value. All of our short-term investments are traded on active markets with quoted prices and represent level 1 fair value measurements. See Note 4 for further discussion of our fair value measurements. Income Taxes At December 31, 2017 , we had gross federal NOL carryforwards to offset future taxable income of $62.8 million , of which $4.0 million will expire on December 31, 2035. Our remaining federal NOL carryforwards will expire December 31, 2037. We have provided a valuation allowance against our 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. At September 30, 2018 and December 31, 2017, our net deferred tax assets were fully reserved with a valuation allowance. During the fourth quarter 2018, we filed our 2017 federal tax return which did not result in any material adjustment to the provisional tax amounts we recorded under Staff Accounting Bulletin 118 at December 31, 2017, related to our evaluation of the Tax Cuts and Jobs Act of 2017. Our overall evaluation of the Tax Cuts and Jobs Act of 2017 is not complete as we expect to file certain remaining state tax returns during the fourth quarter 2018; however, adjustments to our remaining state returns, if any, are not expected to be material. Revenue Recognition Revenue for 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 for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. See Note 3 for further discussion of our revenue recognition policy and related accounting for our contracts. On January 1, 2018, we adopted ASU No. 2014-09, Topic 606 “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in FASB 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. Our adoption of Topic 606 included a detailed review of our significant contracts that were not substantially complete as of January 1, 2018. Based on our review, we concluded that revenue recognition 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, is still appropriate. Our review also determined that Topic 606 did not impact the timing of revenue recognition for our T&M contracts. Based on the aforementioned, we concluded that the impact of adoption of Topic 606 as of January 1, 2018, was immaterial to our Consolidated Financial Statements and no adjustment was required. See Note 3 for further discussion of our adoption of Topic 606. New Accounting Standards Leases - In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheet but recognize expense in a manner similar to current guidance. ASU 2016-02 will be effective for us in the first quarter 2019. The new standard is required to be applied using a modified retrospective approach. Upon adoption, we will record a right of use asset and corresponding liability for our operating leases.We continue to evaluate the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures. We are currently designing and implementing process changes and evaluating the information requirements necessary to properly account for ASU 2016-02. Financial instruments - 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, short-term investments, 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 us in the first quarter 2020. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to 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, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE A summary of assets included in assets held for sale at September 30, 2018 , is as follows (in thousands): Texas North Yard Assets Assets Assets Under Agreement For Sale Remaining Assets Shipyard Division Assets Consolidated Land $ 2,157 $ — $ — $ 2,157 Buildings and improvements 31,798 189 — 31,987 Machinery and equipment 13,856 27,754 2,187 43,797 Less: accumulated depreciation (24,176 ) (10,797 ) (298 ) (35,271 ) Total assets held for sale $ 23,635 $ 17,146 $ 1,889 $ 42,670 South Texas Properties Texas South Yard - During the second quarter 2018, we completed the sale of our Texas South Yard for $55.0 million , less selling costs of $1.5 million , for total net proceeds during the nine-months ended September 30, 2018 of approximately $53.5 million and a gain of approximately $3.9 million , which is included within other income (expense), net on our Consolidated Statements of Operations. Texas North Yard - On September 26, 2018, we entered into an agreement to sell our Texas North Yard and certain associated equipment for $28.0 million .We received $0.5 million during the third quarter 2018 as a deposit on the property, which is refundable under certain circumstances, and has been recorded as a liability within accrued expenses and other liabilities on our Consolidated Balance Sheet at September 30, 2018 . The sale is anticipated to close in the fourth quarter 2018 and is subject to customary closing conditions, including the purchaser’s right to conduct inspections of the property related to confirmation of title, surveys, environmental conditions, easements and access rights, and third-party consents. Based on the sales price and estimated closing and other costs, we expect to realize a gain on the transaction upon closing. We can provide no assurances that we will successfully close the transaction, that closing will occur under our expected timeline or that we will achieve our estimated net proceeds or a gain on the sale. We continue to actively market the remaining Texas North Yard assets held for sale, which primarily consist of three 660-ton crawler cranes, a barge, a plate bending roll machine, and panel line equipment. As a result of the agreement to sell our Texas North Yard, and the separation of such assets from the other remaining Texas North Yard Assets, we reevaluated the fair values of the assets under agreement for sale and the other remaining assets held for sale, giving consideration to previously recorded impairment amounts for such assets. Based on our assessment, we recaptured previously recorded impairments of the assets under agreement for sale and increased their carrying value. We also reduced the carrying value of the other remaining assets held for sale based upon our estimates of fair value using level 3 inputs, including broker estimates of fair value. Our assessment resulted in the recapture of approximately $5.2 million of previously recorded impairments on the assets under agreement for sale, with a similar amount of impairment on the remaining assets, with no net material change to the carrying value of the Texas North Yard assets held for sale. During the first half of 2018, we recorded impairments of certain equipment that were classified as held for sale, resulting in a $1.4 million charge during the nine-months ended September 30, 2018, which is included within asset impairments on our Consolidated Statements of Operations. Our impairments were based upon our best estimate of the fair value of the related equipment. During the third quarter 2018, we sold assets that were classified as held for sale for proceeds of $1.1 million , which approximated their carrying values. Hurricane Harvey Insurance Recoveries - During the third quarter 2017, buildings and equipment located at our South Texas Properties were damaged by Hurricane Harvey. During the second quarter 2018, we agreed to a global settlement with our insurance carriers for total insurance recoveries of $15.4 million , resulting in a net gain on insurance recoveries of $3.6 million during the nine months ended September 30, 2018 , which is included within other income (expense), net on our Consolidated Statements of Operations. As of September 30, 2018, all insurance proceeds had been received, including $7.2 million received during the third quarter 2018. In applying the settlement proceeds and determining our net gain for the nine months ended September 30, 2018, we allocated the claim amounts, less agreed upon deductibles, to the respective groups of assets and reimbursement of costs incurred as follows: • Insurance recoveries of $8.9 million , which offset impairments of damaged assets at our Texas North Yard, resulting in no net gain or loss. Our impairments were based upon our best estimate of the decline in the fair value of the property and related equipment. • Insurance recoveries of $5.2 million , which offset impairments of two buildings and five damaged cranes that were sold during the second quarter 2018, resulting in the aforementioned net gain on insurance recoveries of $3.6 million . • Insurance recoveries of $1.3 million , net of deductibles, which offset clean-up and repair related costs incurred directly related to the damage we incurred as a result of Hurricane Harvey. Other - We do not expect the sale of our South Texas Properties to impact our ability to operate our Fabrication Division. Further, the sale of our Texas South Yard and the Texas North Yard assets held for sale, do not qualify for discontinued operations presentation as we continue to operate our Fabrication Division at our Houma, Louisiana fabrication facility. Shipyard Division Assets Our Shipyard Division assets held for sale primarily consist of a 2,500 -ton drydock located at our Houma Shipyard. During the nine months ended September 30, 2017 , we recorded impairments of $0.4 million for these assets based upon their estimated sales price. During the nine months ended September 30, 2017 , we sold two drydocks for proceeds of $2.0 million and recorded a loss of $0.3 million . Our assets held for sale for the Shipyard Division do not qualify for discontinued operations presentation. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue for our fixed-price and unit-rate contracts is recognized using 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. Direct materials and subcontract materials and services that represent an insignificant portion of the work to complete a contract or do not reflect an accurate measure of project completion are considered "pass-through costs." Revenue recognized in a period for a contract is the pro rata portion of the contract value (excluding pass-through costs), based upon the labor hour measure of progress, plus pass-through costs incurred during the period. Accordingly, pass-through costs are included in revenue and direct costs of revenue with no impact on gross profit recognized during the period. Revenue for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. Our T&M contracts provide for labor and materials to be billed at rates specified within the contract. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Accordingly, we have elected the “right to invoice” practical expedient under Topic 606 for the recognition of revenue for our T&M contracts. The practical expedient allows us to recognize revenue in the amount we have the right to invoice (at contracted rates when the work is performed and costs are incurred). Revenue and gross profit for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims, incentives, penalties, and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed and delivery occurs. We estimate variable consideration based on the most likely amount to which we expect to be entitled and include estimated amounts in the transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. For the three and nine months ended September 30, 2018 and 2017, we had no material amounts in revenue related to unapproved change orders, claims, or incentives. However certain projects in our Shipyard Division reflect a reduction to our estimated contract price of $11.7 million for variable consideration related to liquidated damages. The reductions in contract price were recorded during the fourth quarter 2017. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can also be significantly affected by changes in estimated cost to complete such contracts. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Consolidated Financial Statements and related disclosures. Adoption of Topic 606 As discussed in Note 1, on January 1, 2018, we adopted ASU No. 2014-09, Topic 606 “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in FASB ASC Topic 605, “Revenue Recognition.” Accordingly, the reported results for the three and nine months ended September 30, 2018 , reflect the application of Topic 606 guidance while the comparable reported results for 2017 were prepared under the guidance of Topic 605. 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. Our adoption of Topic 606 included a detailed review of our significant contracts that were not substantially complete as of January 1, 2018, to assess if revenue should be recognized "over time" (as the work is performed) or "at a point in time" (upon completion of the work). We determined that ownership and control of the work related to our fixed-price and unit-rate contracts transfer to our customers as the work progresses. Additionally, our customers retain the right and ability to change, modify or discontinue further fabrication or construction at any stage of the project. In the event our customers discontinue work, they are required to compensate us for the work performed to date. Based on our review, we concluded that revenue recognition 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, is still appropriate as it most accurately reflects our primary profit generating activity and best represents our efforts to construct the asset for our customer. However, adoption of Topic 606 did require us to include subcontract labor and certain costs from outside services within our measure of progress and determination of our percentage-of-completion. We previously treated certain of these costs as pass-through costs and excluded such costs from our measure of progress. Our review also determined that Topic 606 did not impact the timing of revenue recognition for our T&M contracts. Based on the aforementioned, we concluded that the impact of the adoption of Topic 606 as of January 1, 2018, was immaterial to our Consolidated Financial Statements and no adjustment was required. Topic 606 requires additional and enhanced disclosures related to the disaggregation of revenue and the anticipated timing and completion of remaining performance obligations, which are included below. Disaggregation of Revenue - The following tables summarize revenue for each of our operating segments, disaggregated by contract type and timing of revenue recognition, for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 2,311 $ 23,635 $ 12,193 $ — $ (779 ) $ 37,360 T&M (2) — 857 10,424 — — 11,281 Other (3) — — — 1,071 — 1,071 Total $ 2,311 $ 24,492 $ 22,617 $ 1,071 $ (779 ) $ 49,712 Three Months Ended September 30, 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 18,318 $ 13,906 $ 6,147 $ — $ (1,159 ) $ 37,212 T&M (2) — 1,168 11,504 — — 12,672 Other — — — — — — Total $ 18,318 $ 15,074 $ 17,651 $ — $ (1,159 ) $ 49,884 Nine Months Ended September 30, 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 28,171 $ 62,116 $ 35,197 $ — $ (2,550 ) $ 122,934 T&M (2) — 4,561 31,495 — — 36,056 Other (3) — — — 2,026 — 2,026 Total $ 28,171 $ 66,677 $ 66,692 $ 2,026 $ (2,550 ) $ 161,016 Nine Months Ended September 30, 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 42,517 $ 47,632 $ 20,969 $ — $ (4,328 ) $ 106,790 T&M (2) — 4,166 22,789 — — 26,955 Other — — — — — — Total $ 42,517 $ 51,798 $ 43,758 $ — $ (4,328 ) $ 133,745 ____________ (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. (3) Revenue primarily represents early work authorized by SeaOne and is recognized as the contract is progressed over time. Future Performance Obligations Required Under Contracts - The following tables summarize the remaining revenue to be earned under performance obligations for the portion of contracts not yet completed as of September 30, 2018 (in thousands). Segment Performance Obligations at September 30, 2018 Fabrication $ 44,746 Shipyard (1) 282,912 Services 11,699 EPC 836 Intersegment eliminations — Total $ 340,193 _____________ (1) Amount excludes approximately $30.1 million in the aggregate of remaining performance obligations under dispute pursuant to a termination notice from our customer related to contracts for the construction of two MPSVs. See Note 8 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations in the following periods (in thousands): Year Total Remainder of 2018 $ 56,243 2019 199,922 2020 74,976 2021 8,405 2022 647 Total $ 340,193 Contracts Receivable and Retainage Our customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power, and marine operators, EPC companies and certain agencies of the U.S. government. Of our contracts receivable balance at September 30, 2018 , $18.4 million was with two customers. At September 30, 2018 , we had an allowance for bad debt of $3.7 million within our contract receivable balance. During the three months ended September 30, 2018 , we increased our allowance for bad debts by $2.8 million , which is included in general and administrative expenses on our Consolidated Statements of Operations and primarily relates to a customer within our Fabrication Division. Contracts in Progress, Advance Billings on Contracts and Accrued Contract Losses Revenue recognition and customer invoicing for our fixed-price and unit-rate contracts may occur at different times. Revenue recognition is based upon our estimated percentage-of-completion as discussed above; however, customer invoicing will generally depend upon predetermined billing terms which could provide for customer advance payments or invoicing based upon achievement of certain milestones or project progress. Revenue recognized in excess of amounts billed is reflected as contracts in progress on our Consolidated Balance Sheets. Amounts billed in excess of revenue recognized is reflected as advance billings on contracts on our Consolidated Balance Sheets. Contracts in progress totaled $40.2 million at September 30, 2018 , with $37.1 million relating to three customers. Advance billings on contracts totaled $14.9 million at September 30, 2018 , with $11.2 million relating to one customer. Accrued contract losses totaled $6.0 million and $7.6 million at September 30, 2018 and December 31, 2017 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We make 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; and • 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 reported for financial instruments, including cash and cash equivalents, short-term investments, contracts receivable and accounts payable, 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 costs to sell. The determination of fair value generally requires the use of significant judgments. See Note 2 for further discussion of our assets held for sale and their associated fair value measurements. |
LOSS PER COMMON SHARE
LOSS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
LOSS PER COMMON SHARE | LOSS PER COMMON SHARE The following table presents the computation of basic and diluted loss per share (in thousands, except for per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic and diluted Net loss $ (10,949 ) $ (3,110 ) $ (15,696 ) $ (20,488 ) Less: Distributed and undistributed loss (unvested restricted stock) — (14 ) — (100 ) Net loss attributable to common shareholders $ (10,949 ) $ (3,096 ) $ (15,696 ) $ (20,388 ) Weighted-average shares (1) 15,044 14,852 15,017 14,821 Basic and diluted loss per common share $ (0.73 ) $ (0.21 ) $ (1.05 ) $ (1.38 ) ______________ (1) We have no dilutive securities. |
LINE OF CREDIT
LINE OF CREDIT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | LINE OF CREDIT We have a $40.0 million Credit Agreement with Hancock Whitney Bank that can be used for borrowings or letters of credit. On August 27, 2018, we entered into a third amendment to our Credit Agreement, which extended its maturity date from June 9, 2019 to June 9, 2020, and reduced the base tangible net worth requirement from $185.0 million to $180.0 million . The third amendment also removed the inclusion of 50% of Consolidated Net Income (as defined in the Credit Agreement) for each fiscal quarter and the inclusion of 50% of the gain on the sale of our South Texas Properties from our minimum tangible net worth covenant. Accordingly, our amended quarterly financial covenants during the term of the Credit Agreement are as follows: • Ratio of current assets to current liabilities of not less than 1.25 :1.00; • Minimum tangible net worth of at least the sum of $180.0 million , plus 100% of the proceeds from any issuance of stock or other equity after deducting any fees, commissions, expenses and other costs incurred in such offering; and • Ratio of funded debt to tangible net worth of not more than 0.50 :1.00. Interest on borrowings under the Credit Agreement may be designated, at our option, as either the Wall Street Journal published Prime Rate or LIBOR plus 2.0% per annum. Commitment fees on the unused portion of the Credit Agreement are 0.4% per annum, and interest on outstanding letters of credit is 2.0% per annum. The Credit Agreement is secured by substantially all our assets (other than the assets held for sale at our Texas North Yard). At September 30, 2018 , we had no outstanding borrowings under our Credit Agreement and $2.5 million of outstanding letters of credit, providing $37.5 million of available capacity. At September 30, 2018 , we were in compliance with all of our financial covenants. |
SEGMENT DISCLOSURES
SEGMENT DISCLOSURES | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DISCLOSURES | SEGMENT DISCLOSURES We have structured our operations with four operating divisions, and one corporate non-operating division, which represent our reportable segments. As part of our efforts to strategically reposition the Company as discussed in Note 1, we may change how we manage the business which could result in changes to our reportable segments in future periods. Our reportable segments at September 30, 2018 are discussed below. Fabrication Division - Our Fabrication Division fabricates offshore drilling and production platforms and other steel structures for customers in the oil and gas industry including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms (such as TLPs, SPARs, FPSOs and MinDOCs), piles, wellhead protectors, subsea templates, and various production, compressor, and utility modules along with pressure vessels. Our Fabrication Division also fabricates structures for alternative energy customers (such as the five jackets and piles we constructed for the first offshore wind power project in the U.S.) as well as modules for petrochemical and industrial facilities. We perform these activities at our fabrication yard in Houma, Louisiana. As of September 30, 2018 , our Texas North Yard is held for sale and our Texas South Yard had been sold. See Note 2 for further discussion of our South Texas Properties. Shipyard Division - Our Shipyard Division fabricates newbuild vessels and repairs various steel marine vessels including offshore supply vessels, anchor handling vessels and liftboats to support the construction and ongoing operation of offshore oil and gas production platforms, tug boats, towboats, barges, drydocks and other marine vessels. 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. In addition, we perform conversion projects that consist of lengthening vessels, modifying vessels to permit their use for a different type of activity, and other modifications to enhance the capacity or functionality of a vessel. We perform these activities at our shipyards in Houma, Jennings and Lake Charles, Louisiana. Services Division - Our Services Division provides interconnect piping and related services for offshore platforms and inland structures, which includes sending crews to offshore platforms in the GOM 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 southeastern U.S. for various on-site construction and maintenance activities. In addition, our Services Division fabricates packaged skid units and performs various civil and drainage projects, such as pump stations, levee reinforcement, bulkheads and other work for state and local governments. We perform these services at customer facilities or at our services yard in Houma, Louisiana. EPC Division - Our EPC Division was created during the fourth quarter 2017 to manage expected work we will perform for the SeaOne Project and other projects that may require EPC project management services. During the fourth quarter 2017, SeaOne selected us as the prime contractor for the engineering, procurement, construction, installation, commissioning and start-up operations for its SeaOne Project. This project will include execution of engineering, construction and installation of modules for an export facility in Gulfport, Mississippi, and import facilities in the Caribbean and South America. Our current activities include pricing, planning and scheduling for the project. SeaOne’s selection of the Company is non-binding and commencement of the project remains subject to a number of conditions, including agreement on terms of the engagement with SeaOne. We understand that SeaOne is in the process of securing financing for the project. We continue to enhance our internal project management capabilities through the hiring of additional personnel to service this potential project. Corporate Division - Our Corporate Division represents expenses that do not directly relate to our four operating divisions and are not allocated to our operating divisions. Such expenses include, but are not limited to, costs related to executive management and directors' fees, clerical and administrative salaries, costs of maintaining our corporate office and costs associated with overall governance and being a publicly traded company. We generally evaluate the performance of, and allocate resources to, our operating divisions based upon revenue, gross profit (loss) and operating income (loss). Division assets are comprised of all assets attributable to each division. Corporate administrative and overhead expenses directly related to our operating divisions, or costs related to shared services incurred by our Corporate Division on behalf of our operating divisions, are allocated to the four operating divisions. Shared services include human resources, insurance, business development, information technology and accounting. Intersegment revenue is priced at the estimated fair value of work performed. Summarized financial information for each of our divisions for the three and nine months ended September 30, 2018 and 2017 , is as follows (in thousands): Three Months Ended September 30, 2018 Fabrication Shipyard Services EPC Corporate Eliminations Consolidated Revenue $ 2,311 $ 24,492 $ 22,617 $ 1,071 $ — $ (779 ) $ 49,712 Gross profit (loss) (4,032 ) (1,764 ) 3,191 (205 ) (402 ) — (3,212 ) Operating income (loss) (7,708 ) (2,460 ) 2,486 (708 ) (2,494 ) — (10,884 ) Total assets (1) 100,115 92,839 37,201 2,217 30,585 — 262,957 Depreciation and amortization expense 1,023 1,050 365 — 36 — 2,474 Capital expenditures — 783 545 142 1 — 1,471 Three Months Ended September 30, 2017 Fabrication Shipyard Services EPC 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 (1) 164,677 96,614 33,024 — 9,065 — 303,380 Depreciation and amortization expense 1,133 1,030 413 — 95 — 2,671 Capital expenditures 1,479 1,054 94 — 25 — 2,652 Nine Months Ended September 30, 2018 Fabrication Shipyard Services EPC Corporate Eliminations Consolidated Revenue $ 28,171 $ 66,677 $ 66,692 $ 2,026 $ — $ (2,550 ) $ 161,016 Gross profit (loss) (5,918 ) (5,563 ) 9,390 30 (1,171 ) — (3,232 ) Operating income (loss) (12,529 ) (7,652 ) 7,189 (1,375 ) (7,698 ) — (22,065 ) Total assets (1) 100,115 92,839 37,201 2,217 30,585 — 262,957 Depreciation and amortization expense 3,219 3,170 1,141 — 304 — 7,834 Capital expenditures — 1,442 708 142 70 — 2,362 Nine Months Ended September 30, 2017 Fabrication Shipyard Services EPC 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 (1) 164,677 96,614 33,024 — 9,065 — 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 _______________ (1) Intercompany balances have been excluded. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are subject to various routine legal proceedings in the normal conduct of business, primarily involving commercial claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, we believe that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on our financial position, results of operations or cash flows. MPSV Termination Letter We received notices of termination of the contracts for the construction of two MPSVs from one of our Shipyard Division customers. We dispute the purported terminations and disagree with the customer’s reasons for such terminations. Pending the resolution of the dispute, we have ceased all work and the partially completed MPSVs and associated equipment and materials remain at our shipyard in Houma, Louisiana. The customer also notified our Surety of its purported terminations of the construction contracts and made claims under the bonds issued by the Surety in connection with the construction of the two MPSVs. We have notified and met with our Surety regarding our disagreement with, and objection to, the customer's purported termination and its claims. Discussions with the Surety are ongoing. On October 2, 2018, we filed a lawsuit against the customer to enforce our rights and remedies under the applicable construction contracts. Our lawsuit disputes the propriety of the customer’s purported termination of the construction contracts and seeks to recover damages associated with the customer’s actions. We are unable to estimate the probability of a favorable or unfavorable outcome with respect to the dispute or estimate the amount of potential loss, if any, related to this matter. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contracts. At September 30, 2018 , our net balance sheet position for the contracts was $12.5 million . Project Award Protest During the first quarter 2018, we executed a contract for the construction and delivery of one towing, salvage and rescue ship vessel with the U.S. Navy for $63.6 million , with an option for seven additional vessels, which was subsequently protested by one of the unsuccessful bidders. On July 16, 2018, we were notified that the award was upheld by the U.S. Government Accountability Office and we were given a notification to proceed. On August 6, 2018, we were notified that the unsuccessful bidder had filed a subsequent protest with the Department of Justice. On August 9, 2018, we were granted a partial stay, which allows us to proceed with pre-construction design development, planning, scheduling and material ordering. Construction of the vessel cannot begin until a final ruling is issued by the U.S. Court of Federal Claims. We are working with the U.S. Navy to re-establish a timeline for construction under this contract. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 2, 2018, we filed a lawsuit against a customer to enforce our rights and remedies under the applicable construction contracts for the construction of two MPSVs. See Note 8 for further discussion of our dispute and lawsuit. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents and Short-term investments | Cash and cash equivalents We consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. Short-term investments Short-term investments include U.S. Treasuries and other investment-grade commercial paper with maturities of six months or less. We intend to hold these investments until maturity and have stated them at amortized cost. Due to their near-term maturities, amortized cost approximates fair value. All of our short-term investments are traded on active markets with quoted prices and represent level 1 fair value measurements. See Note 4 for further discussion of our fair value measurements. |
New Accounting Standards | Revenue Recognition Revenue for 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 for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. See Note 3 for further discussion of our revenue recognition policy and related accounting for our contracts. On January 1, 2018, we adopted ASU No. 2014-09, Topic 606 “Revenue from Contracts with Customers”, which supersedes the revenue recognition requirements in FASB 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. Our adoption of Topic 606 included a detailed review of our significant contracts that were not substantially complete as of January 1, 2018. Based on our review, we concluded that revenue recognition 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, is still appropriate. Our review also determined that Topic 606 did not impact the timing of revenue recognition for our T&M contracts. Based on the aforementioned, we concluded that the impact of adoption of Topic 606 as of January 1, 2018, was immaterial to our Consolidated Financial Statements and no adjustment was required. See Note 3 for further discussion of our adoption of Topic 606. New Accounting Standards Leases - In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheet but recognize expense in a manner similar to current guidance. ASU 2016-02 will be effective for us in the first quarter 2019. The new standard is required to be applied using a modified retrospective approach. Upon adoption, we will record a right of use asset and corresponding liability for our operating leases.We continue to evaluate the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures. We are currently designing and implementing process changes and evaluating the information requirements necessary to properly account for ASU 2016-02. Financial instruments - 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, short-term investments, 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 us in the first quarter 2020. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to 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, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Significant Assets Included in Assets Held for Sale | A summary of assets included in assets held for sale at September 30, 2018 , is as follows (in thousands): Texas North Yard Assets Assets Assets Under Agreement For Sale Remaining Assets Shipyard Division Assets Consolidated Land $ 2,157 $ — $ — $ 2,157 Buildings and improvements 31,798 189 — 31,987 Machinery and equipment 13,856 27,754 2,187 43,797 Less: accumulated depreciation (24,176 ) (10,797 ) (298 ) (35,271 ) Total assets held for sale $ 23,635 $ 17,146 $ 1,889 $ 42,670 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue for each of our operating segments, disaggregated by contract type and timing of revenue recognition, for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended September 30, 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 2,311 $ 23,635 $ 12,193 $ — $ (779 ) $ 37,360 T&M (2) — 857 10,424 — — 11,281 Other (3) — — — 1,071 — 1,071 Total $ 2,311 $ 24,492 $ 22,617 $ 1,071 $ (779 ) $ 49,712 Three Months Ended September 30, 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 18,318 $ 13,906 $ 6,147 $ — $ (1,159 ) $ 37,212 T&M (2) — 1,168 11,504 — — 12,672 Other — — — — — — Total $ 18,318 $ 15,074 $ 17,651 $ — $ (1,159 ) $ 49,884 Nine Months Ended September 30, 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 28,171 $ 62,116 $ 35,197 $ — $ (2,550 ) $ 122,934 T&M (2) — 4,561 31,495 — — 36,056 Other (3) — — — 2,026 — 2,026 Total $ 28,171 $ 66,677 $ 66,692 $ 2,026 $ (2,550 ) $ 161,016 Nine Months Ended September 30, 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 42,517 $ 47,632 $ 20,969 $ — $ (4,328 ) $ 106,790 T&M (2) — 4,166 22,789 — — 26,955 Other — — — — — — Total $ 42,517 $ 51,798 $ 43,758 $ — $ (4,328 ) $ 133,745 ____________ (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. (3) Revenue primarily represents early work authorized by SeaOne and is recognized as the contract is progressed over time. |
Revenue, Remaining Performance Obligation | The following tables summarize the remaining revenue to be earned under performance obligations for the portion of contracts not yet completed as of September 30, 2018 (in thousands). Segment Performance Obligations at September 30, 2018 Fabrication $ 44,746 Shipyard (1) 282,912 Services 11,699 EPC 836 Intersegment eliminations — Total $ 340,193 _____________ (1) Amount excludes approximately $30.1 million in the aggregate of remaining performance obligations under dispute pursuant to a termination notice from our customer related to contracts for the construction of two MPSVs. See Note 8 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations in the following periods (in thousands): Year Total Remainder of 2018 $ 56,243 2019 199,922 2020 74,976 2021 8,405 2022 647 Total $ 340,193 |
LOSS PER COMMON SHARE (Tables)
LOSS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted loss per share (in thousands, except for per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic and diluted Net loss $ (10,949 ) $ (3,110 ) $ (15,696 ) $ (20,488 ) Less: Distributed and undistributed loss (unvested restricted stock) — (14 ) — (100 ) Net loss attributable to common shareholders $ (10,949 ) $ (3,096 ) $ (15,696 ) $ (20,388 ) Weighted-average shares (1) 15,044 14,852 15,017 14,821 Basic and diluted loss per common share $ (0.73 ) $ (0.21 ) $ (1.05 ) $ (1.38 ) ______________ (1) We have no dilutive securities. |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information for each of our divisions for the three and nine months ended September 30, 2018 and 2017 , is as follows (in thousands): Three Months Ended September 30, 2018 Fabrication Shipyard Services EPC Corporate Eliminations Consolidated Revenue $ 2,311 $ 24,492 $ 22,617 $ 1,071 $ — $ (779 ) $ 49,712 Gross profit (loss) (4,032 ) (1,764 ) 3,191 (205 ) (402 ) — (3,212 ) Operating income (loss) (7,708 ) (2,460 ) 2,486 (708 ) (2,494 ) — (10,884 ) Total assets (1) 100,115 92,839 37,201 2,217 30,585 — 262,957 Depreciation and amortization expense 1,023 1,050 365 — 36 — 2,474 Capital expenditures — 783 545 142 1 — 1,471 Three Months Ended September 30, 2017 Fabrication Shipyard Services EPC 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 (1) 164,677 96,614 33,024 — 9,065 — 303,380 Depreciation and amortization expense 1,133 1,030 413 — 95 — 2,671 Capital expenditures 1,479 1,054 94 — 25 — 2,652 Nine Months Ended September 30, 2018 Fabrication Shipyard Services EPC Corporate Eliminations Consolidated Revenue $ 28,171 $ 66,677 $ 66,692 $ 2,026 $ — $ (2,550 ) $ 161,016 Gross profit (loss) (5,918 ) (5,563 ) 9,390 30 (1,171 ) — (3,232 ) Operating income (loss) (12,529 ) (7,652 ) 7,189 (1,375 ) (7,698 ) — (22,065 ) Total assets (1) 100,115 92,839 37,201 2,217 30,585 — 262,957 Depreciation and amortization expense 3,219 3,170 1,141 — 304 — 7,834 Capital expenditures — 1,442 708 142 70 — 2,362 Nine Months Ended September 30, 2017 Fabrication Shipyard Services EPC 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 (1) 164,677 96,614 33,024 — 9,065 — 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 _______________ (1) Intercompany balances have been excluded. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Organization (Details) | 9 Months Ended |
Sep. 30, 2018vesselsegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | segment | 4 |
Number of harbor tug vessels | 10 |
Number of offshore vessels | 2 |
Number of additional vessels | 7 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Business Outlook (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 26, 2018 | |
Texas South Yard | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Sale of PP&E | $ 55 | |||
Cost of PP&E sales | $ 1.5 | |||
Proceeds from sale of PP&E | $ 53.5 | |||
Gain on sale of assets | 3.9 | |||
Texas North Yard | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Sale of PP&E | $ 1.1 | $ 1.1 | $ 28 | |
Proceeds from deposits on real estate sales | $ 0.5 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Income Taxes (Details) $ in Millions | Dec. 31, 2017USD ($) |
Income Tax Contingency [Line Items] | |
Operating loss carryforwards | $ 62.8 |
Expire In 2035 | |
Income Tax Contingency [Line Items] | |
Operating loss carryforwards | $ 4 |
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, 2018USD ($) |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | $ (35,271) |
Total assets held for sale | 42,670 |
Assets Under Agreement For Sale | |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | (24,176) |
Total assets held for sale | 23,635 |
Remaining Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | (10,797) |
Total assets held for sale | 17,146 |
Shipyard Division Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Less: accumulated depreciation | (298) |
Total assets held for sale | 1,889 |
Land | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 2,157 |
Land | Assets Under Agreement For Sale | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 2,157 |
Land | Remaining Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 0 |
Land | Shipyard Division Assets | |
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 | 31,987 |
Buildings and improvements | Assets Under Agreement For Sale | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 31,798 |
Buildings and improvements | Remaining Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 189 |
Buildings and improvements | Shipyard Division Assets | |
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 | 43,797 |
Machinery and equipment | Assets Under Agreement For Sale | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 13,856 |
Machinery and equipment | Remaining Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | 27,754 |
Machinery and equipment | Shipyard Division Assets | |
Long Lived Assets Held-for-sale [Line Items] | |
Total assets held for sale, gross | $ 2,187 |
Assets Held for Sale - Narrativ
Assets Held for Sale - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 13 Months Ended | |||
Sep. 30, 2018USD ($)crane | Jun. 30, 2018USD ($)cranebuilding | Sep. 30, 2018USD ($)craneT | Sep. 30, 2017USD ($)drydock | Sep. 30, 2018USD ($)crane | Sep. 26, 2018USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | ||||||
Gain on insurance recoveries, net | $ 3,342 | $ 0 | ||||
Number of drydocks sold | drydock | 2 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Texas South Yard | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Sale of PP&E | $ 55,000 | |||||
Cost of PP&E sales | 1,500 | |||||
Proceeds from sale of PP&E | 53,500 | |||||
Gain (loss) on sale of assets | 3,900 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Texas North Yard | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Sale of PP&E | $ 1,100 | $ 1,100 | $ 1,100 | $ 28,000 | ||
Proceeds from deposits on real estate sales | $ 500 | |||||
Insurance recoveries | $ 8,900 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Assets Under Agreement For Sale | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Number of cranes held for sale | crane | 3 | 3 | 3 | |||
Asset impairment reversal | $ 5,200 | |||||
Impairment of assets held for sale | $ 1,400 | |||||
Gain on insurance recoveries, net | $ 3,600 | |||||
Insurance recoveries | $ 5,200 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Assets Under Agreement For Sale | Building | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Number of buildings | building | 2 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Assets Under Agreement For Sale | Cranes | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Number of cranes | crane | 5 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | South Texas Fabrication Yards | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Insurance settlement | $ 15,400 | |||||
Insurance payment received | $ 7,200 | |||||
Insurance recoveries | $ 1,300 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Shipyard Division Assets | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Impairment of assets held for sale | $ 400 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Shipyard Division Assets | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Sale of PP&E | 2,000 | |||||
Gain (loss) on sale of assets | $ (300) | |||||
Drydock, number of tons | T | 2,500 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Long-term Contracts or Programs Disclosure [Line Items] | |||||
Revenue | $ 49,712,000 | $ 49,884,000 | $ 161,016,000 | $ 133,745,000 | |
Project, Approved Scope, Unapproved Price | |||||
Long-term Contracts or Programs Disclosure [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Shipyards | |||||
Long-term Contracts or Programs Disclosure [Line Items] | |||||
Revenue | $ 24,492,000 | $ 15,074,000 | $ 66,677,000 | $ 51,798,000 | |
Reduction to estimated contract price | $ 11,700,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 49,712 | $ 49,884 | $ 161,016 | $ 133,745 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (779) | (1,159) | (2,550) | (4,328) |
Fabrication | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,311 | 18,318 | 28,171 | 42,517 |
Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,492 | 15,074 | 66,677 | 51,798 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,617 | 17,651 | 66,692 | 43,758 |
EPC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,071 | 0 | 2,026 | 0 |
Fixed-price and unit-rate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 37,360 | 37,212 | 122,934 | 106,790 |
Fixed-price and unit-rate | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (779) | (1,159) | (2,550) | (4,328) |
Fixed-price and unit-rate | Fabrication | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,311 | 18,318 | 28,171 | 42,517 |
Fixed-price and unit-rate | Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,635 | 13,906 | 62,116 | 47,632 |
Fixed-price and unit-rate | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,193 | 6,147 | 35,197 | 20,969 |
Fixed-price and unit-rate | EPC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Time-and-materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,281 | 12,672 | 36,056 | 26,955 |
Time-and-materials | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Time-and-materials | Fabrication | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Time-and-materials | Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 857 | 1,168 | 4,561 | 4,166 |
Time-and-materials | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,424 | 11,504 | 31,495 | 22,789 |
Time-and-materials | EPC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,071 | 0 | 2,026 | 0 |
Other | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Fabrication | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Other | EPC | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,071 | $ 0 | $ 2,026 | $ 0 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation by Segment (Details) $ in Thousands | Sep. 30, 2018USD ($)vessel |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 340,193 |
Number of multi-purpose service vessels | vessel | 2 |
Intersegment eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 0 |
Fabrication | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 44,746 |
Shipyard | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 282,912 |
Shipyard | Operating Segments | Disputed | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 30,100 |
Services | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 11,699 |
EPC | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 836 |
Revenue Recognition - Remaini_2
Revenue Recognition - Remaining Performance Obligation by Year (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 340,193 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 56,243 |
Remaining performance obligation, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 199,922 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 74,976 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 8,405 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 647 |
Remaining performance obligation, period | 1 year |
Revenue Recognition - Contracts
Revenue Recognition - Contracts Receivable and Retainage (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable | $ 28,933 | $ 28,466 |
Allowance for bad debt | 3,700 | |
Increase in allowance for bad debt | 2,800 | |
Contracts in progress | 40,187 | 28,373 |
Advance billings on contracts | 14,930 | 5,136 |
Accrued contract losses | 6,033 | $ 7,618 |
Contract Receivable | Customer Concentration Risk | One Major Customer | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract receivable | 18,400 | |
Costs in Excess of Billings | Customer Concentration Risk | Three Customers | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contracts in progress | 37,100 | |
Billings in Excess of Costs | Customer Concentration Risk | Five Customers | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Customer advances | $ 11,200 |
Loss Per Common Share (Details)
Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic and diluted | ||||
Net loss | $ (10,949) | $ (3,110) | $ (15,696) | $ (20,488) |
Less: Distributed and undistributed loss (unvested restricted stock) | 0 | (14) | 0 | (100) |
Net loss attributable to common shareholders | $ (10,949) | $ (3,096) | $ (15,696) | $ (20,388) |
Weighted-average shares (in shares) | 15,044,000 | 14,852,000 | 15,017,000 | 14,821,000 |
Basic and diluted loss per common share (in dollars per share) | $ (0.73) | $ (0.21) | $ (1.05) | $ (1.38) |
Dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Line of Credit (Details)
Line of Credit (Details) | Aug. 27, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 26, 2018USD ($) |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 40,000,000 | ||
Financial covenants, minimum net worth | $ 180,000,000 | $ 185,000,000 | |
financial covenants, percent of net income added to net worth requirement | 50.00% | ||
Financial covenants, percent of gain on sale of assets added to net worth requirement | 50.00% | ||
Financial covenants, minimum current assets to current liabilities ratio | 1.25 | ||
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 | ||
Outstanding borrowings under our Credit Agreement | $ 0 | ||
Total outstanding letters of credit | 2,500,000 | ||
Remaining borrowing capacity on line of credit | $ 37,500,000 | ||
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 - Narrative
Segment Disclosures - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018jacketsegment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of corporate non-operating segments | 1 |
Number of jackets and piles constructed | jacket | 5 |
Segment Disclosures - Summarize
Segment Disclosures - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 49,712 | $ 49,884 | $ 161,016 | $ 133,745 | |
Gross profit (loss) | (3,212) | (494) | (3,232) | (17,010) | |
Operating income (loss) | (10,884) | (4,864) | (22,065) | (30,339) | |
Total assets | 262,957 | 303,380 | 262,957 | 303,380 | $ 270,840 |
Depreciation and amortization expense | 2,474 | 2,671 | 7,834 | 10,141 | |
Capital expenditures | 1,471 | 2,652 | 2,362 | 4,515 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Gross profit (loss) | (402) | (152) | (1,171) | (500) | |
Operating income (loss) | (2,494) | (2,161) | (7,698) | (6,165) | |
Total assets | 30,585 | 9,065 | 30,585 | 9,065 | |
Depreciation and amortization expense | 36 | 95 | 304 | 421 | |
Capital expenditures | 1 | 25 | 70 | 117 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (779) | (1,159) | (2,550) | (4,328) | |
Gross profit (loss) | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Fabrication | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,311 | 18,318 | 28,171 | 42,517 | |
Gross profit (loss) | (4,032) | 1,250 | (5,918) | 216 | |
Operating income (loss) | (7,708) | 472 | (12,529) | (2,216) | |
Total assets | 100,115 | 164,677 | 100,115 | 164,677 | |
Depreciation and amortization expense | 1,023 | 1,133 | 3,219 | 5,420 | |
Capital expenditures | 0 | 1,479 | 0 | 2,327 | |
Shipyards | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 24,492 | 15,074 | 66,677 | 51,798 | |
Gross profit (loss) | (1,764) | (3,504) | (5,563) | (19,061) | |
Operating income (loss) | (2,460) | (4,392) | (7,652) | (22,285) | |
Total assets | 92,839 | 96,614 | 92,839 | 96,614 | |
Depreciation and amortization expense | 1,050 | 1,030 | 3,170 | 3,034 | |
Capital expenditures | 783 | 1,054 | 1,442 | 1,872 | |
Services | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 22,617 | 17,651 | 66,692 | 43,758 | |
Gross profit (loss) | 3,191 | 1,912 | 9,390 | 2,335 | |
Operating income (loss) | 2,486 | 1,217 | 7,189 | 327 | |
Total assets | 37,201 | 33,024 | 37,201 | 33,024 | |
Depreciation and amortization expense | 365 | 413 | 1,141 | 1,266 | |
Capital expenditures | 545 | 94 | 708 | 199 | |
EPC | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 1,071 | 0 | 2,026 | 0 | |
Gross profit (loss) | (205) | 0 | 30 | 0 | |
Operating income (loss) | (708) | 0 | (1,375) | 0 | |
Total assets | 2,217 | 0 | 2,217 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Capital expenditures | $ 142 | $ 0 | $ 142 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Sep. 30, 2018USD ($)vessel | Mar. 31, 2018USD ($)vessel |
Loss Contingencies [Line Items] | ||
Number of multi-purpose service vessels | 2 | |
Balance sheet exposure | $ | $ 12.5 | |
U.S. Navy [Member] | ||
Loss Contingencies [Line Items] | ||
Number of towing, salvage and rescue vessels | 1 | |
Construction in progress | $ | $ 63.6 | |
Number of additional vessels | 7 |
Subsequent Events (Details)
Subsequent Events (Details) | Sep. 30, 2018vessel |
Subsequent Events [Abstract] | |
Number of multi-purpose service vessels | 2 |