Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Gulf Island Fabrication, Inc. | |
Entity Central Index Key | 0001031623 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 15,308,604 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-34279 | |
Entity Tax Identification Number | 72-1147390 | |
Entity Address, Address Line One | 16225 Park Ten Place | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77084 | |
City Area Code | 713 | |
Local Phone Number | 714-6100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | LA | |
Trading Symbol | Gifi | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 49,184 | $ 49,703 |
Short-term investments | 19,992 | 19,918 |
Contracts receivable and retainage, net | 13,391 | 26,095 |
Contract assets | 77,860 | 52,128 |
Prepaid expenses and other assets | 3,120 | 3,948 |
Inventory | 2,761 | 2,676 |
Assets held for sale | 8,107 | 9,006 |
Total current assets | 174,415 | 163,474 |
Property, plant and equipment, net | 72,376 | 70,484 |
Other noncurrent assets | 15,763 | 18,819 |
Total assets | 262,554 | 252,777 |
Current liabilities: | ||
Accounts payable | 62,062 | 61,542 |
Contract liabilities | 26,973 | 26,271 |
Accrued expenses and other liabilities | 8,167 | 10,031 |
Long-term debt, current | 2,143 | |
Total current liabilities | 99,345 | 97,844 |
Long-term debt, noncurrent | 7,857 | |
Other noncurrent liabilities | 1,933 | 2,248 |
Total liabilities | 109,135 | 100,092 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | ||
Common stock, no par value, 30,000 shares authorized, 15,309 shares issued and outstanding at June 30, 2020 and 15,263 at December 31, 2019 | 11,155 | 11,119 |
Additional paid-in capital | 103,454 | 103,124 |
Retained earnings | 38,810 | 38,442 |
Total shareholders’ equity | 153,419 | 152,685 |
Total liabilities and shareholders’ equity | $ 262,554 | $ 252,777 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 15,309,000 | 15,263,000 |
Common stock, shares outstanding (in shares) | 15,309,000 | 15,263,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 59,974 | $ 80,456 | $ 138,529 | $ 148,061 |
Cost of revenue | 61,677 | 82,054 | 140,486 | 149,106 |
Gross loss | (1,703) | (1,598) | (1,957) | (1,045) |
General and administrative expense | 3,722 | 3,987 | 7,466 | 7,821 |
Impairments and (gain) loss on assets held for sale | (70) | |||
Other (income) expense, net | 1 | (201) | (9,933) | (130) |
Operating income (loss) | (5,426) | (5,384) | 510 | (8,666) |
Interest (expense) income, net | (89) | 126 | (36) | 388 |
Income (loss) before income taxes | (5,515) | (5,258) | 474 | (8,278) |
Income tax (expense) benefit | (22) | 10 | (106) | (12) |
Net income (loss) | $ (5,537) | $ (5,248) | $ 368 | $ (8,290) |
Per share data: | ||||
Basic and diluted income (loss) per common share | $ (0.36) | $ (0.34) | $ 0.02 | $ (0.55) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning Balance at Dec. 31, 2018 | $ 201,100 | $ 11,021 | $ 102,243 | $ 87,836 |
Beginning Balance (in shares) at Dec. 31, 2018 | 15,090 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (3,042) | (3,042) | ||
Vesting of restricted stock | (714) | $ (71) | (643) | |
Vesting of restricted stock (in shares) | 146 | |||
Stock-based compensation expense | 560 | $ 56 | 504 | |
Ending Balance at Mar. 31, 2019 | 197,904 | $ 11,006 | 102,104 | 84,794 |
Ending Balance (in shares) at Mar. 31, 2019 | 15,236 | |||
Beginning Balance at Dec. 31, 2018 | 201,100 | $ 11,021 | 102,243 | 87,836 |
Beginning Balance (in shares) at Dec. 31, 2018 | 15,090 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (8,290) | |||
Ending Balance at Jun. 30, 2019 | 193,442 | $ 11,085 | 102,811 | 79,546 |
Ending Balance (in shares) at Jun. 30, 2019 | 15,236 | |||
Beginning Balance at Mar. 31, 2019 | 197,904 | $ 11,006 | 102,104 | 84,794 |
Beginning Balance (in shares) at Mar. 31, 2019 | 15,236 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (5,248) | (5,248) | ||
Stock-based compensation expense | 786 | $ 79 | 707 | |
Ending Balance at Jun. 30, 2019 | 193,442 | $ 11,085 | 102,811 | 79,546 |
Ending Balance (in shares) at Jun. 30, 2019 | 15,236 | |||
Beginning Balance at Dec. 31, 2019 | $ 152,685 | $ 11,119 | 103,124 | 38,442 |
Beginning Balance (in shares) at Dec. 31, 2019 | 15,263 | 15,263 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ 5,905 | 5,905 | ||
Vesting of restricted stock | (73) | $ (8) | (65) | |
Vesting of restricted stock (in shares) | 27 | |||
Stock-based compensation expense | 95 | $ 10 | 85 | |
Ending Balance at Mar. 31, 2020 | 158,612 | $ 11,121 | 103,144 | 44,347 |
Ending Balance (in shares) at Mar. 31, 2020 | 15,290 | |||
Beginning Balance at Dec. 31, 2019 | $ 152,685 | $ 11,119 | 103,124 | 38,442 |
Beginning Balance (in shares) at Dec. 31, 2019 | 15,263 | 15,263 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ 368 | |||
Ending Balance at Jun. 30, 2020 | $ 153,419 | $ 11,155 | 103,454 | 38,810 |
Ending Balance (in shares) at Jun. 30, 2020 | 15,309 | 15,309 | ||
Beginning Balance at Mar. 31, 2020 | $ 158,612 | $ 11,121 | 103,144 | 44,347 |
Beginning Balance (in shares) at Mar. 31, 2020 | 15,290 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (5,537) | (5,537) | ||
Vesting of restricted stock | (1) | (1) | ||
Vesting of restricted stock (in shares) | 19 | |||
Stock-based compensation expense | 345 | $ 34 | 311 | |
Ending Balance at Jun. 30, 2020 | $ 153,419 | $ 11,155 | $ 103,454 | $ 38,810 |
Ending Balance (in shares) at Jun. 30, 2020 | 15,309 | 15,309 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 368 | $ (8,290) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and lease asset amortization | 4,287 | 4,974 |
Other amortization, net | 31 | 26 |
Bad debt expense | 59 | |
Asset impairments | 299 | |
(Gain) loss on sale of assets held for sale, net | (369) | |
(Gain) loss on sale of fixed assets and other assets, net | (5) | (565) |
Stock-based compensation expense | 440 | 1,346 |
Changes in operating assets and liabilities: | ||
Contracts receivable and retainage, net | 12,704 | (896) |
Contract assets | (25,732) | (21,352) |
Prepaid expenses, inventory and other current assets | 668 | 212 |
Accounts payable | 2,081 | 26,269 |
Contract liabilities | 702 | (3,023) |
Accrued expenses and other current liabilities | (1,840) | (1,108) |
Noncurrent assets and liabilities, net (including long-term retainage) | 2,538 | (466) |
Net cash used in operating activities | (3,758) | (2,884) |
Cash flows from investing activities: | ||
Capital expenditures | (7,745) | (1,359) |
Proceeds from sale of property, plant and equipment | 1,080 | 1,598 |
Purchases of short-term investments | (19,991) | (45,366) |
Maturities of short-term investments | 20,000 | 8,500 |
Net cash used in investing activities | (6,656) | (36,627) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 10,000 | |
Payment of financing cost | (31) | (40) |
Tax payments for vested stock withholdings | (74) | (714) |
Net cash provided by (used in) financing activities | 9,895 | (754) |
Net decrease in cash and cash equivalents | (519) | (40,265) |
Cash and cash equivalents, beginning of period | 49,703 | 70,457 |
Cash and cash equivalents, end of period | $ 49,184 | $ 30,192 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” "the Company," "we," "us" and "our") is a leading fabricator of complex steel structures, modules and marine vessels, and a provider of project management, hookup, commissioning, repair, maintenance and civil construction services. Our customers include United States ("U.S.") and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial, power and marine operators; EPC companies; and certain agencies of the U.S. government. We operate and manage our business through two operating divisions ("Shipyard" and "Fabrication & Services") and one non-operating division ("Corporate"), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas, with operating facilities located in Houma, Jennings and Lake Charles, Louisiana. See Note 7 for discussion of our realigned reportable segments and discussion of our anticipated closure of the Jennings Yard. Significant projects in our backlog include the fabrication of an offshore jacket and deck, mooring and breasting dolphins, and modules for an offshore facility; material supply for an offshore jacket and deck; and construction of two harbor tugs, three regional class research vessels, three vehicle ferries, and five towing, salvage and rescue ships. Projects completed in recent years include the expansion of a paddlewheel riverboat; fabrication of modules for a petrochemical facility and a meteorological tower and platform for an offshore wind project; and construction of eight harbor tugs, an Basis of Presentation The accompanying unaudited Consolidated Financial Statements ("Financial Statements") reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Our Consolidated Balance Sheet ("Balance Sheet") at December 31, 2019, 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 Financial Statements and related footnotes included in our 2019 Annual Report. Liquidity Outlook In recent years our operating results and cash flows have been impacted by lower margins due to competitive pricing, a significant underutilization of our facilities and losses on certain projects. As a result, we implemented initiatives to improve and maintain our liquidity (including further reducing the compensation of our executive officers and directors and reducing the size of our board), reduce our reliance on the fabrication of structures and marine vessels associated with the offshore oil and gas sector, improve our resource utilization and centralize key project resources (including the closure of the Jennings Yard and combination of our former Fabrication and Services Divisions), and improve our competitiveness and project execution. See Note 7 for discussion of our realigned reportable segments and discussion of our anticipated closure of the Jennings Yard. These initiatives are ongoing, and while our ability to achieve our goals has been negatively impacted by the we can provide no assurances that the initiatives will achieve our desired results, Operating Cycle The duration of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. Use of Estimates General - The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims and liquidated damages; fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; determination of deferred income tax assets, liabilities and related valuation allowances; reserves for bad debts; liabilities related to self-insurance programs; and the impacts of COVID-19 and volatile oil prices on our business, estimates and judgments as discussed further below. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. COVID-19 and Volatile Oil Prices - COVID-19 is a widespread public health crisis that continues to adversely affect economies and financial markets globally. In March 2020, the World Health Organization declared COVID-19 a pandemic and the U.S. President announced a national emergency relating to COVID-19. National, state and local authorities recommended social distancing and many authorities imposed quarantine and isolation measures on large portions of the population, including mandatory business closures. Although authorities in some areas of the U.S. began to relax these quarantine and isolation measures, a recent resurgence of COVID-19 infections in many regions of the country, including areas where we have our headquarters and operating facilities, has in some instances caused authorities to either defer the phasing out of these restrictions or re-impose quarantine and isolation measures. These measures, while intended to protect human life, have had and are expected to continue to have a significant impact on domestic and foreign economies of uncertain severity and duration. On June 8, 2020, the National Bureau of Economic Research indicated that the U.S. economy entered a recession in February 2020, and the duration and severity of this recession is unclear at this time. The longer-term effectiveness of economic stabilization efforts, including government payments to affected citizens and industries, is uncertain. Moreover, governmental and commercial responses to COVID-19 has exacerbated the already weakened condition of the energy industry, further reducing the demand for oil, and further depressing and creating volatility in oil prices. The extent to which COVID-19 and a low and volatile pricing environment for oil may adversely impact our business, prospects, financial condition, operating results and cash flows depends on future developments that are highly uncertain and unpredictable. The business and financial impacts of these challenging conditions cannot be reasonably estimated at this time, but may include, among other things, unanticipated project costs due to project disruptions and schedule delays, lower labor productivity, lack of performance by subcontractors and suppliers, and contract disputes. Events and changes in circumstances arising after this Report resulting from the impacts of COVID-19 and volatile oil prices, if any, will be reflected in management’s estimates for future periods. Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities. See Note 6 for calculations of our basic and diluted income (loss) per share. Cash Equivalents and Short-Term Investments Cash Equivalents - We consider investments with original maturities of three months or less when purchased to be cash equivalents. Short-Term Investments - We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. At June 30, 2020, our short-term investments include U.S. Treasuries with original maturities of less than six months. We intend to hold these investments until maturity, and it is not more likely than not that we would be required to sell the investments prior to their maturity. The investments are stated at amortized cost, which approximates fair value due to their near-term maturities. All short-term investments are traded on active markets with quoted prices and represent level 1 fair value measurements. Inventory Inventory is recorded at the lower of its cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. Allowance for Doubtful Accounts In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectibility and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts. Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Statement of Operations. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Statement of Cash Flows. Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 3 for further discussion of our assets held for sale. Depreciation Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Long-Lived Assets Long-lived assets, which include property, plant and equipment and our lease assets included within other noncurrent assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 - inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 - inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. See Note 3 for discussion of our assets held for sale. Revenue Recognition General - Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update ("ASU") 2014-09, Topic 606 “Revenue from Contracts with Customers” ("Topic 606"). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts - Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method based on contract costs incurred to date compared to total estimated contract costs (an input method). Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and six months ended June 30, 2020 and 2019. T&M Contracts - 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. Variable Consideration - 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 and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of unapproved change orders, claims, incentives and liquidated damages for our projects. Additional Disclosures - Topic 606 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At June 30, 2020 and December 31, 2019, we had no deferred pre-contract costs. Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts, gains or losses associated with the sale or disposition of property and equipment other than assets held for sale, and income or expense associated with certain nonrecurring items. For the six months ended June 30, 2020, other (income) expense also includes a gain of approximately $10.0 million associated with the settlement of a contract dispute in the first quarter 2020 for a project completed in 2015. Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets ("DTA(s)") if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. New Accounting Standards Financial instruments - In June 2016, the FASB issued ASU 2016-13, 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 2023. 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 the new standard will have on our financial position, results of operations and related disclosures. Income taxes - In December 2019, the FASB issued ASU 2019-12, to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for us in the first quarter 2021. We are currently evaluating the effect that the new standard will have on our financial position, results of operations and related disclosures. |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 2. REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS As discussed in Note 1, we recognize revenue from our contracts in accordance with Topic 606. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, 2020 Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 33,513 $ 20,853 $ (239 ) $ 54,127 T&M (2) 375 4,455 — 4,830 Other — 1,298 (281 ) 1,017 Total $ 33,888 $ 26,606 $ (520 ) $ 59,974 Six Months Ended June 30, 2020 Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 77,815 $ 45,410 $ (324 ) $ 122,901 T&M (2) 1,632 11,380 — 13,012 Other — 3,259 (643 ) 2,616 Total $ 79,447 $ 60,049 $ (967 ) $ 138,529 Three Months Ended June 30, 2019 (3) Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 39,093 $ 29,470 $ (105 ) $ 68,458 T&M (2) 960 8,187 — 9,147 Other — 2,996 (145 ) 2,851 Total $ 40,053 $ 40,653 $ (250 ) $ 80,456 Six Months Ended June 30, 2019 (3) Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 73,543 $ 46,967 $ (178 ) $ 120,332 T&M (2) 3,921 18,809 — 22,730 Other — 5,470 (471 ) 4,999 Total $ 77,464 $ 71,246 $ (649 ) $ 148,061 (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) See Note 7 for discussion of our realigned operating divisions. Future Performance Obligations Required Under Contracts The following table summarizes our remaining performance obligations by operating segment at June 30, 2020 (in thousands): Segment Performance Obligations Shipyard (1) $ 417,557 Fabrication & Services 30,547 Total $ 448,104 (1) Amount excludes approximately $21.9 million of remaining performance obligations related to contracts for the construction of two MPSVs that are subject to dispute pursuant to termination notices from our customer. See Note 5 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations at June 30, 2020, in the following periods (in thousands): Year Performance Obligations Remainder of 2020 $ 105,155 2021 206,331 2022 115,870 Thereafter 20,748 Total $ 448,104 Contracts Assets and Liabilities 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 in Note 1; however, customer invoicing is generally dependent upon contractual billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to uncompleted contracts at June 30, 2020 and December 31, 2019 is as follows (in thousands): June 30, December 31, 2020 2019 Contract assets $ 77,860 $ 52,128 Contract liabilities (1), (2), (3) (26,973 ) (26,271 ) Contracts in progress, net $ 50,887 $ 25,857 (1) The increase in contract liabilities (2) Revenue recognized during the three months ended June 30, 2020 and 2019, related to amounts included in our contract liabilities balance at March 31, 2020 and 2019, was $5.1 million and $7.6 million, respectively. Revenue recognized during the six months ended June 30, 2020 and 2019, related to amounts included in our contract liabilities balance at December 31, 2019 and 2018, was $19.0 million and $13.9 million, respectively. (3) Contract liabilities at June 30, 2020 and December 31, 2019, includes accrued contract losses of $3.2 million and $6.4 million, respectively. See "Project Changes in Estimates" Allowance for Doubtful Accounts Our provision for bad debts is included in other (income) expense, net on our Statement of Operations. Our provision for bad debts for the three and six months ended June 30, 2020 and 2019, and our allowance for doubtful accounts at June 30, 2020 and December 31, 2019, were not significant. Variable Consideration For the three and six months ended June 30, 2020 and 2019, we had no material amounts in revenue related to unapproved change orders, claims or incentives. However, at June 30, 2020 and December 31, 2019, certain projects reflected a reduction to our estimated contract price for liquidated damages of $11.6 million and $12.9 million, respectively, of which $11.2 million was recorded during 2017. The decrease from December 31, 2019 was due to projects completed during the six months ended June 30, 2020. Changes in Project Estimates Changes in Estimates for 2020 - For the three and six months ended June 30, 2020, significant changes in estimated margins on projects negatively impacted operating results for our Shipyard Division by $0.6 million and $1.8 million, respectively, and positively impacted operating results for our Fabrication & Services Division by $1.0 million and $1.9 million, respectively. The changes in estimates were associated with the following: Shipyard Division • Harbor Tug Projects – Negative impact from increased forecast costs of $0.6 million for both the three and six months ended June 30, 2020 for our final two harbor tug projects in our Jennings Yard, primarily associated with increased craft labor and subcontracted services costs and extension of schedule. The increases were primarily due to lower than anticipated craft labor productivity and progress on the projects, resulting from the wind down of the Jennings Yard in connection with its anticipated closure in the fourth quarter 2020 and the impacts of COVID-19 primarily associated with social distancing measures. The revised forecast incorporates actual results realized from completion of the eighth vessel in the second quarter 2020 and progress achieved on the last two vessels. At June 30, 2020, the ninth and tenth vessels were approximately 93% and 80% complete, respectively, and are forecast to be completed in the third and fourth quarters of 2020, respectively. The projects were in a loss position at June 30, 2020 and our reserve for estimated losses was $0.6 million. If future craft labor productivity and subcontractor costs differ from our current estimates, we are unable to achieve our progress estimates or our schedules are further extended, the projects would experience further losses. • Forty-Vehicle Ferry Projects – Negative impact from increased forecast costs and forecast liquidated damages of $1.2 million for the six months ended June 30, 2020 for our two, forty-vehicle ferry projects, primarily associated with increased craft labor and material costs and extensions of schedule. The increases occurred in the first quarter 2020 and were primarily due to anticipated construction rework for the first vessel, including reconstruction of previously completed portions of the vessel, resulting from the determination that portions of the vessel structure were outside of acceptable tolerance levels. The previous construction activities were performed by our former Fabrication Division prior to transferring management and project execution responsibility of the vessels to our Shipyard Division in the first quarter 2020 as discussed further in Note 7. At June 30, 2020, the first and second vessels were approximately 60% and 62% complete, respectively, and are forecast to be completed in the first quarter 2021 and fourth quarter 2020, respectively. The projects were in a loss position at June 30, 2020 and our reserve for estimated losses was $2.5 million. If future craft labor productivity and subcontractor costs differ from our current estimates, we are unable to achieve our progress estimates, our schedules are further extended or the projects incur additional schedule liquidated damages, the projects would experience further losses. Fabrication & Services Division • Jacket and Deck Project – Positive impact from increased contract price of $0.5 million for both the three and six months ended June 30, 2020 for our jacket and deck project, primarily associated with project incentives earned during the second quarter 2020. At June 30, 2020, the project was approximately 94% complete and is forecast to be completed in the third quarter 2020. The project was in a loss position at June 30, 2020 and our reserve for estimated losses was $0.1 million. • Paddlewheel Riverboat and Subsea Components Projects – Positive impact from reduced forecast costs and increased contract price of $0.5 million and $1.4 million for the three and six months ended June 30, 2020, respectively, for our paddlewheel riverboat and subsea components projects, primarily associated with reduced craft labor and subcontracted services costs and approved change orders. The benefits were primarily due to better than anticipated labor productivity and favorable resolution of change orders with the customers and subcontractors. At June 30, 2020, both projects were complete. Changes in Estimates for 2019 - For the three and six months ended June 30, 2019, significant changes in estimated margins on projects negatively impacted operating results for our Shipyard Division by $2.3 million and $2.0 million, respectively. The changes in estimates were associated with the following. • Harbor Tug Projects – Negative impact from increased forecast costs of $1.4 million and $1.2 million for the three and six months ended June 30, 2019, respectively, for our harbor tug projects in our Jennings Yard, primarily associated with increased craft labor costs and extensions of schedule. The increases were primarily due to lower than anticipated craft labor productivity and progress on the projects, resulting from limitations in craft labor availability and the required use of contract labor in lieu of direct hire labor. The projects were in a loss position at June 30, 2019 and our reserve for estimated losses on the projects was $1.6 million • Ice-breaker Tug Project – Negative impact from increased forecast costs of $0.9 million and $0.8 million for the three and six months ended June 30, 2019, respectively, for our ice-breaker tug project, primarily associated with increased craft labor and subcontracted services costs and extensions of schedule. The increases were primarily due to construction rework and disruption and lower than anticipated craft labor productivity and progress on the project, resulting from the impact of incomplete and deficient subcontracted production engineering. The project was in a loss position at June 30, 2019 and our reserve for estimated losses on the project was $0.1 million. At June 30, 2020, the project was complete. Other Project Matters Project Tariffs - Certain imported materials used, or forecast to be used, for our projects are currently subject to existing, new or increased tariffs or duties. We believe such amounts, if incurred, are recoverable from our customers under the contractual provisions of our contracts; however, we can provide no assurances that we will successfully recover such amounts. Other – At December 31, 2019, other noncurrent assets on our Balance Sheet included $3.0 million of retention for a previously completed project in our Fabrication & Services Division for the fabrication of petrochemical modules. The retention was classified as noncurrent as it was not billable to the customer until the second quarter 2020 upon expiration of the contractual warranty period. Further, in the first quarter 2020, the customer entered into a restructuring through a prepackaged Chapter 11 bankruptcy process, which created uncertainty with respect to the timing of collection of the retention once billed. During the second quarter 2020, the customer emerged from bankruptcy, and the retention was billed and paid by the customer prior to June 30, 2020. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2020 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
ASSETS HELD FOR SALE | 3. ASSETS HELD FOR SALE Our assets held for sale at June 30, 2020, primarily consisted of three 660-ton crawler cranes and a deck barge. A summary of our assets held for sale at June 30, 2020 and December 31, 2019, is as follows (in thousands): June 30, December 31, Assets Held for Sale 2020 2019 Machinery and equipment $ 15,363 $ 17,618 Accumulated depreciation (7,256 ) (8,612 ) Total $ 8,107 $ 9,006 During the six months ended June 30, 2020 and 2019, we received proceeds of $1.1 million and $0.4 million, respectively, related to the sale of assets that were held for sale. We recognized no gain or loss during the six months ended June 30, 2020, and during the six months ended June 30, 2019, we recognized a gain of $0.4 million on the sale of assets held for sale and recorded impairments of $0.3 million related to other assets that were held for sale. During the three months ended June 30, 2020 and 2019, we received no proceeds from the sales of assets and recognized no gain or loss. |
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES AND DEBT | 4. CREDIT FACILITIES AND DEBT Credit Agreement We have a $40.0 million revolving credit facility (“Credit Agreement”) with Hancock Whitney Bank ("Whitney Bank") that can be used for borrowings or letters of credit. On February 28, 2020, we amended our Credit Agreement to amend certain financial covenants, and on August 3, 2020, we further amended our Credit Agreement to, among other things, extend its maturity date from June 9, 2021 to June 30, 2022. Our quarterly financial covenants at June 30, 2020, 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 $130.0 million, plus 100% of the proceeds from any issuance of stock or other equity after deducting of any fees, commissions, expenses and other costs incurred in such offering; • Minimum cash, cash equivalents and short-term investments of $40.0 million; and • Ratio of funded debt to tangible net worth of not more than 0.50:1.00. Our Credit Agreement also includes restrictions regarding our ability to: (i) grant liens; (ii) make certain loans or investments; (iii) incur additional indebtedness or guarantee other indebtedness in excess of specified levels; (iv) make any material change to the nature of our business or undergo a fundamental change; (v) make any material dispositions; (vi) acquire another company or all or substantially all of its assets; (vii) enter into a merger, consolidation, or sale leaseback transaction; or (viii) declare and pay dividends if any potential default or event of default occurs. Interest on borrowings under the Credit Agreement may be designated, at our option, as either the Wall Street Journal At June 30, 2020, we had no outstanding borrowings under our Credit Agreement and $9.8 million of outstanding letters of credit to support our projects, providing $30.2 million of available capacity. At June 30, 2020, we were in compliance with all of our financial covenants, with a tangible net worth of $154.1 million as defined by the Credit Agreement; total cash, cash equivalents and short-term investments of $69.2 million; a ratio of current assets to current liabilities of 1.76:1.00; and a ratio of funded debt to tangible net worth of 0.13:1.00. Loan Agreement On April 17, 2020, we entered into an unsecured loan in the aggregate amount of $10.0 million (“PPP Loan”) with Whitney Bank pursuant to the Paycheck Protection Program (“PPP”), which is sponsored by the Small Business Administration (“SBA”), and is part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), as amended by the Paycheck Protection Program Flexibility Act of 2020 (“Flexibility Act”). The PPP provides for loans to qualifying businesses, the proceeds of which may only be used for payroll costs, rent, utilities, mortgage interest, and interest on other pre-existing indebtedness (the “Permissible Expenses”). The PPP Loan matures on April 17, 2022, bears interest at a fixed rate of 1.0 percent per annum and is payable in monthly installments commencing on the earlier of the date on which the amount of loan forgiveness is determined or March 17, 2021. The PPP Loan may be prepaid at any time prior to maturity with no prepayment penalties. The PPP Loan, and accrued interest, may be forgiven partially or in full, if certain conditions are met. The most significant of the conditions are: • Only amounts expended for Permissible Expenses during the eight-week or 24-week period, as elected by us, following April 17, 2020 (the “Covered Period”) are eligible for loan forgiveness. We have elected an eight-week Covered Period; • Of the total amount of Permissible Expenses for which forgiveness can be granted, at least 60% must be for payroll costs, or a proportionate reduction of the maximum loan forgiveness amount will occur; and • If employee headcount is reduced, or employee compensation is reduced by more than 25%, during the Covered Period, a further reduction of the maximum loan forgiveness amount will occur, subject to certain safe harbors added by the Flexibility Act. In order to obtain forgiveness of the PPP Loan, in whole or in part, we must request forgiveness and provide satisfactory documentation in accordance with applicable SBA guidelines. During the Covered Period the PPP Loan proceeds were used only for Permissible Expenses, of which approximately 94% was related to payroll costs. As of the date of this Report, neither Whitney Bank, nor the SBA, are accepting loan forgiveness applications. Any portion of the PPP Loan that is not forgiven, together with accrued interest, will be repaid based on the terms and conditions of the PPP Loan and in accordance with the PPP as amended by the Flexibility Act, unless the SBA were to determine that we were not eligible to participate in the PPP, in which case the SBA could seek immediate repayment of the PPP Loan. While we believe we are a qualifying business and have met the eligibility requirements for the PPP Loan, and believe we have used the loan proceeds only for Permissible Expenses, we can provide no assurances that we will be eligible for forgiveness of the PPP Loan, in whole or in part. Further, the PPP Loan and our loan forgiveness application will be subject to review and potential audit by the SBA. Accordingly, we have recorded the full amount of the PPP Loan as debt, which is included in long-term debt, current and long-term debt, noncurrent on our Balance Sheet at June 30, 2020. The current and noncurrent debt classification is based on the terms and conditions of the PPP Loan and in accordance with the PPP as amended by the Flexibility Act, and timing of required repayment absent any loan forgiveness. We intend to reflect the benefit of any loan forgiveness if, and when, our loan forgiveness application is submitted to, and approved by, the SBA and we have reasonable assurance from the SBA that we have met the eligibility and loan forgiveness requirements of the PPP. We received a consent from Whitney Bank that allows the PPP Loan to be included as permitted debt under our debt covenants in our Credit Agreement (discussed above) subject to, among other things, compliance with the CARES Act, as amended by the Flexibility Act, and use of the PPP Loan proceeds only for Permissible Expenses and in a manner intended to maximize our entitlement to forgiveness of the PPP Loan. Surety Bonds We issue surety bonds in the ordinary course of business to support our projects. At June 30, 2020, we had $371.8 million of outstanding surety bonds. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 5. COMMITMENTS AND CONTINGENCIES We are subject to various routine legal proceedings in the normal conduct of our business, primarily involving commercial disputes and claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these 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 During the first quarter 2018, 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 vessels and associated equipment and materials remain at our facility in Houma, Louisiana. The customer also made claims under the bonds issued by the Surety in connection with the construction of the vessels. We have discussed with the Surety our disagreement with the customer's purported terminations and its claims and continue to confer with the Surety regarding the dispute with the customer. 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 terminations of the construction contracts and seeks to recover damages associated with the customer’s actions. The customer filed its response to our lawsuit denying many of the allegations in the lawsuit and asserting a counterclaim against us seeking, among other things, declaratory judgment as to the validity of the customer’s purported terminations of the construction contracts and other purported claims for which the customer is seeking damages in an unspecified amount. We have filed a response to the counterclaim denying all of the customer’s claims. The customer subsequently filed an amendment to its counterclaim to add claims by the customer against the Surety. The customer also filed a motion for partial summary judgment with the trial court seeking, among other things, to obtain possession of the vessels. A hearing on the motion was held on May 28, 2019, and the customer's request to obtain possession of the vessels was denied by the trial court. The customer subsequently filed a second motion for partial summary judgment re-urging its previously denied request to obtain possession of the vessels. A hearing on the second motion was held on November 5, 2019, and the customer’s request to obtain possession of the vessels was again denied by the trial court. Thereafter, the customer requested that the appellate court exercise its discretion and review the trial court’s denial of the customer’s second motion. We have opposed the discretionary appellate review request of the customer and the appellate matter is pending, but has been stayed as a result of the customer’s Chapter 11 bankruptcy case discussed below. On May 19, 2020, the customer filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code and on June 19, 2020 the bankruptcy court confirmed the prepackaged Chapter 11 plan of reorganization; however, the plan of reorganization is not effective as of the date of this Report. On June 3, 2020, the customer filed an adversary proceeding in connection with its bankruptcy case, again seeking possession of the vessels. In response, we filed a motion to dismiss the adversary proceeding and to allow the dispute regarding the vessels and the construction contracts to continue in State Court where our lawsuit against the customer is currently pending. The motion to dismiss is currently pending before the bankruptcy court. We continue to hold first priority security interests and liens against the vessels that secure the obligations owed to us by the customer. 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 and defend against the customer’s claims. At June 30, 2020 and December 31, 2019, other noncurrent assets on our Balance Sheet included a net contract asset of $12.5 million, which consisted of our contract asset, accrued contract losses, and deferred revenue balances at the time of the customer's purported terminations of the contracts. Insurance We may be exposed to future losses through our use of deductibles and self-insured retentions for our exposures related to third party liability and workers' compensation. We expect liabilities in excess of any deductibles and self-insured retentions to be covered by insurance. To the extent we are self-insured, reserves are recorded based upon our estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change. Letters of Credit and Surety Bonds We obtain letters of credit under our Credit Agreement or surety bonds from financial institutions to provide to our customers in order to secure advance payments or guarantee performance under our contracts, or in lieu of retention being withheld on our contracts. With respect to a letter of credit under our Credit Agreement, any payment in the event of non-performance under a contract would become a borrowing under our Credit Agreement and thus a direct obligation. With respect to a surety bond, any payment in the event of non-performance is subject to indemnification of the Surety by us, which may require us to borrow under our Credit Agreement. When a contract is complete, the contingent obligation terminates, and letters of credit or surety bonds are returned. See Note 4 for further discussion of our Credit Agreement and surety bonds. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries, that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances which currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our financial condition, results of operations or cash flow. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | 6. INCOME (LOSS) PER SHARE The following table presents the computation of basic and diluted income (loss) per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income (loss) attributable to common shareholders $ (5,537 ) $ (5,248 ) $ 368 $ (8,290 ) Weighted-average shares (1) 15,301 15,236 15,288 15,194 Basic and diluted income (loss) per common share $ (0.36 ) $ (0.34 ) $ 0.02 $ (0.55 ) __________________ (1) We have no dilutive securities. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | 7. OPERATING SEGMENTS During 2019, we operated and managed our business through three operating divisions ("Fabrication," "Shipyard" and "Services") and one non-operating division ("Corporate"), which represented our reportable segments. In the first quarter 2020, our Fabrication and Services Divisions were operationally combined to form an integrated new division called Fabrication & Services. The operational combination will enable us to capitalize on the best practices and execution experience of the former divisions and maximize the utilization of our resources. In addition to the division combination, in the first quarter 2020, management and project execution responsibility for our two, forty-vehicle ferry projects was transferred from our former Fabrication Division to our Shipyard Division to better align the supervision and construction of these vessels with the capabilities and expertise of our Shipyard Division. Accordingly, results for these projects for 2019 were reclassified from our former Fabrication Division to our Shipyard Division to conform to the presentation of these projects for 2020. Shipyard Division - Our Shipyard Division fabricates newbuild marine vessels, including OSVs, MPSVs, research vessels, tugboats, salvage vessels, towboats, barges, drydocks, anchor handling vessels, and lift boats; provides marine repair and maintenance services, including steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning; and performs conversion projects to lengthen vessels and modify vessels to permit their use for a different type of activity or enhance their capacity or functionality. These activities are performed at our facilities in Houma, Jennings and Lake Charles, Louisiana. In the first quarter 2020, we announced our intent to close the Jennings Yard upon completion of our harbor tug projects, which was previously forecast to occur in the third quarter 2020 and is now forecast to occur in the fourth quarter 2020. Fabrication & Services Division - Our Fabrication & Services (“F&S”) Division fabricates modules, skids and piping systems for onshore refining, petrochemical, LNG and industrial facilities and offshore facilities; fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities; fabricates offshore production platforms and associated structures, including jacket foundations, piles and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; fabricates other complex steel structures and components; provides services on offshore platforms, including welding, interconnect piping and other services required to connect production equipment and service modules and equipment; provides on-site construction and maintenance services on inland platforms and structures and industrial facilities; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. These activities are performed at our facility in Houma, Louisiana. Corporate Division - Our Corporate Division includes costs that do not directly relate to our two operating divisions. Such costs include, but are not limited to, costs of maintaining our corporate office, executive management salaries and incentives, board of directors' fees, litigation related costs, and costs associated with overall corporate governance and being a publicly traded company. Costs incurred by our Corporate Division on behalf of our operating divisions are allocated to the operating divisions. Such costs include, but are not limited to, human resources, insurance, sales and marketing, information technology and accounting. We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of and for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, 2020 Shipyard F&S Corporate Consolidated Revenue $ 33,888 $ 26,606 $ (520 ) $ 59,974 Gross loss (1,231 ) (472 ) — (1,703 ) Operating loss (1,724 ) (1,394 ) (2,308 ) (5,426 ) Depreciation and amortization expense 802 1,188 77 2,067 Capital expenditures 4,299 1,143 179 5,621 Total assets 116,541 73,342 72,671 262,554 Six Months Ended June 30, 2020 Shipyard F&S Corporate Consolidated Revenue $ 79,447 $ 60,049 $ (967 ) $ 138,529 Gross profit (loss) (2,455 ) 498 — (1,957 ) Operating income (loss) (3,623 ) 8,771 (4,638 ) 510 Depreciation and amortization expense 1,589 2,546 152 4,287 Capital expenditures 5,742 1,824 179 7,745 Total assets 116,541 73,342 72,671 262,554 Three Months Ended June 30, 2019 Shipyard (1) F&S (1) Corporate Consolidated Revenue $ 40,053 $ 40,653 $ (250 ) $ 80,456 Gross profit (loss) (2,912 ) 1,460 (146 ) (1,598 ) Operating profit (loss) (3,564 ) 517 (2,337 ) (5,384 ) Depreciation and amortization expense 1,047 1,254 121 2,422 Capital expenditures 712 397 — 1,109 Total assets 106,851 90,011 80,729 277,591 Six Months Ended June 30, 2019 Shipyard (1) F&S (1) Corporate Consolidated Revenue $ 77,464 $ 71,246 $ (649 ) $ 148,061 Gross profit (loss) (3,192 ) 2,429 (282 ) (1,045 ) Operating profit (loss) (4,468 ) 266 (4,464 ) (8,666 ) Depreciation and amortization expense 2,156 2,595 223 4,974 Capital expenditures 734 625 — 1,359 Total assets 106,851 90,011 80,729 277,591 __________________ (1) Revenue of $2.5 million and $3.3 million for the three and six months ended June 30, 2019 associated with our two, forty-vehicle ferry projects was reclassified from our former Fabrication Division to our Shipyard Division to conform to the presentation of these projects for 2020 (the projects had no significant gross profit for 2019). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 8. SUBSEQUENT EVENTS On August 3, 2020, we amended our Credit Agreement. See Note 4 for further discussion of our amendment. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” "the Company," "we," "us" and "our") is a leading fabricator of complex steel structures, modules and marine vessels, and a provider of project management, hookup, commissioning, repair, maintenance and civil construction services. Our customers include United States ("U.S.") and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial, power and marine operators; EPC companies; and certain agencies of the U.S. government. We operate and manage our business through two operating divisions ("Shipyard" and "Fabrication & Services") and one non-operating division ("Corporate"), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas, with operating facilities located in Houma, Jennings and Lake Charles, Louisiana. See Note 7 for discussion of our realigned reportable segments and discussion of our anticipated closure of the Jennings Yard. Significant projects in our backlog include the fabrication of an offshore jacket and deck, mooring and breasting dolphins, and modules for an offshore facility; material supply for an offshore jacket and deck; and construction of two harbor tugs, three regional class research vessels, three vehicle ferries, and five towing, salvage and rescue ships. Projects completed in recent years include the expansion of a paddlewheel riverboat; fabrication of modules for a petrochemical facility and a meteorological tower and platform for an offshore wind project; and construction of eight harbor tugs, an |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements ("Financial Statements") reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP") for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the "SEC"). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Our Consolidated Balance Sheet ("Balance Sheet") at December 31, 2019, 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 Financial Statements and related footnotes included in our 2019 Annual Report. |
Liquidity Outlook | Liquidity Outlook In recent years our operating results and cash flows have been impacted by lower margins due to competitive pricing, a significant underutilization of our facilities and losses on certain projects. As a result, we implemented initiatives to improve and maintain our liquidity (including further reducing the compensation of our executive officers and directors and reducing the size of our board), reduce our reliance on the fabrication of structures and marine vessels associated with the offshore oil and gas sector, improve our resource utilization and centralize key project resources (including the closure of the Jennings Yard and combination of our former Fabrication and Services Divisions), and improve our competitiveness and project execution. See Note 7 for discussion of our realigned reportable segments and discussion of our anticipated closure of the Jennings Yard. These initiatives are ongoing, and while our ability to achieve our goals has been negatively impacted by the we can provide no assurances that the initiatives will achieve our desired results, |
Operating Cycle | Operating Cycle The duration of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates General - The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims and liquidated damages; fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; determination of deferred income tax assets, liabilities and related valuation allowances; reserves for bad debts; liabilities related to self-insurance programs; and the impacts of COVID-19 and volatile oil prices on our business, estimates and judgments as discussed further below. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. COVID-19 and Volatile Oil Prices - COVID-19 is a widespread public health crisis that continues to adversely affect economies and financial markets globally. In March 2020, the World Health Organization declared COVID-19 a pandemic and the U.S. President announced a national emergency relating to COVID-19. National, state and local authorities recommended social distancing and many authorities imposed quarantine and isolation measures on large portions of the population, including mandatory business closures. Although authorities in some areas of the U.S. began to relax these quarantine and isolation measures, a recent resurgence of COVID-19 infections in many regions of the country, including areas where we have our headquarters and operating facilities, has in some instances caused authorities to either defer the phasing out of these restrictions or re-impose quarantine and isolation measures. These measures, while intended to protect human life, have had and are expected to continue to have a significant impact on domestic and foreign economies of uncertain severity and duration. On June 8, 2020, the National Bureau of Economic Research indicated that the U.S. economy entered a recession in February 2020, and the duration and severity of this recession is unclear at this time. The longer-term effectiveness of economic stabilization efforts, including government payments to affected citizens and industries, is uncertain. Moreover, governmental and commercial responses to COVID-19 has exacerbated the already weakened condition of the energy industry, further reducing the demand for oil, and further depressing and creating volatility in oil prices. The extent to which COVID-19 and a low and volatile pricing environment for oil may adversely impact our business, prospects, financial condition, operating results and cash flows depends on future developments that are highly uncertain and unpredictable. The business and financial impacts of these challenging conditions cannot be reasonably estimated at this time, but may include, among other things, unanticipated project costs due to project disruptions and schedule delays, lower labor productivity, lack of performance by subcontractors and suppliers, and contract disputes. Events and changes in circumstances arising after this Report resulting from the impacts of COVID-19 and volatile oil prices, if any, will be reflected in management’s estimates for future periods. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities. See Note 6 for calculations of our basic and diluted income (loss) per share. |
Cash Equivalents and Short-term Investments | Cash Equivalents and Short-Term Investments Cash Equivalents - We consider investments with original maturities of three months or less when purchased to be cash equivalents. Short-Term Investments - We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. At June 30, 2020, our short-term investments include U.S. Treasuries with original maturities of less than six months. We intend to hold these investments until maturity, and it is not more likely than not that we would be required to sell the investments prior to their maturity. The investments are stated at amortized cost, which approximates fair value due to their near-term maturities. All short-term investments are traded on active markets with quoted prices and represent level 1 fair value measurements. |
Inventory | Inventory Inventory is recorded at the lower of its cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectibility and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts. |
Stock-Based Compensation | Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Statement of Operations. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Statement of Cash Flows. |
Assets Held for Sale | Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 3 for further discussion of our assets held for sale. |
Depreciation Expense | Depreciation Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, which include property, plant and equipment and our lease assets included within other noncurrent assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. |
Fair Value Measurements | Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 - inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 - inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. See Note 3 for discussion of our assets held for sale. |
Revenue Recognition | Revenue Recognition General - Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update ("ASU") 2014-09, Topic 606 “Revenue from Contracts with Customers” ("Topic 606"). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts - Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method based on contract costs incurred to date compared to total estimated contract costs (an input method). Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and six months ended June 30, 2020 and 2019. T&M Contracts - 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. Variable Consideration - 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 and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of unapproved change orders, claims, incentives and liquidated damages for our projects. Additional Disclosures - Topic 606 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. |
Pre-Contract Costs | Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At June 30, 2020 and December 31, 2019, we had no deferred pre-contract costs. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts, gains or losses associated with the sale or disposition of property and equipment other than assets held for sale, and income or expense associated with certain nonrecurring items. For the six months ended June 30, 2020, other (income) expense also includes a gain of approximately $10.0 million associated with the settlement of a contract dispute in the first quarter 2020 for a project completed in 2015. |
Income Taxes | Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets ("DTA(s)") if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. |
New Accounting Standards | New Accounting Standards Financial instruments - In June 2016, the FASB issued ASU 2016-13, 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 2023. 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 the new standard will have on our financial position, results of operations and related disclosures. Income taxes - In December 2019, the FASB issued ASU 2019-12, to simplify the accounting for income taxes by removing certain exceptions to the general principles and simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. The new standard will be effective for us in the first quarter 2021. We are currently evaluating the effect that the new standard will have on our financial position, results of operations and related disclosures. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended June 30, 2020 Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 33,513 $ 20,853 $ (239 ) $ 54,127 T&M (2) 375 4,455 — 4,830 Other — 1,298 (281 ) 1,017 Total $ 33,888 $ 26,606 $ (520 ) $ 59,974 Six Months Ended June 30, 2020 Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 77,815 $ 45,410 $ (324 ) $ 122,901 T&M (2) 1,632 11,380 — 13,012 Other — 3,259 (643 ) 2,616 Total $ 79,447 $ 60,049 $ (967 ) $ 138,529 Three Months Ended June 30, 2019 (3) Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 39,093 $ 29,470 $ (105 ) $ 68,458 T&M (2) 960 8,187 — 9,147 Other — 2,996 (145 ) 2,851 Total $ 40,053 $ 40,653 $ (250 ) $ 80,456 Six Months Ended June 30, 2019 (3) Contract Type Shipyard F&S Eliminations Total Fixed-price and unit-rate (1) $ 73,543 $ 46,967 $ (178 ) $ 120,332 T&M (2) 3,921 18,809 — 22,730 Other — 5,470 (471 ) 4,999 Total $ 77,464 $ 71,246 $ (649 ) $ 148,061 (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) See Note 7 for discussion of our realigned operating divisions. |
Summary of Remaining Performance Obligation by Operating Segment | The following table summarizes our remaining performance obligations by operating segment at June 30, 2020 (in thousands): Segment Performance Obligations Shipyard (1) $ 417,557 Fabrication & Services 30,547 Total $ 448,104 (1) Amount excludes approximately $21.9 million of remaining performance obligations related to contracts for the construction of two MPSVs that are subject to dispute pursuant to termination notices from our customer. See Note 5 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations at June 30, 2020, in the following periods (in thousands): Year Performance Obligations Remainder of 2020 $ 105,155 2021 206,331 2022 115,870 Thereafter 20,748 Total $ 448,104 |
Summary of Contract with Customer, Asset and Liability | Information with respect to uncompleted contracts at June 30, 2020 and December 31, 2019 is as follows (in thousands): June 30, December 31, 2020 2019 Contract assets $ 77,860 $ 52,128 Contract liabilities (1), (2), (3) (26,973 ) (26,271 ) Contracts in progress, net $ 50,887 $ 25,857 (1) The increase in contract liabilities (2) Revenue recognized during the three months ended June 30, 2020 and 2019, related to amounts included in our contract liabilities balance at March 31, 2020 and 2019, was $5.1 million and $7.6 million, respectively. Revenue recognized during the six months ended June 30, 2020 and 2019, related to amounts included in our contract liabilities balance at December 31, 2019 and 2018, was $19.0 million and $13.9 million, respectively. (3) Contract liabilities at June 30, 2020 and December 31, 2019, includes accrued contract losses of $3.2 million and $6.4 million, respectively. See "Project Changes in Estimates" |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
Summary of Assets Held for Sale | A summary of our assets held for sale at June 30, 2020 and December 31, 2019, is as follows (in thousands): June 30, December 31, Assets Held for Sale 2020 2019 Machinery and equipment $ 15,363 $ 17,618 Accumulated depreciation (7,256 ) (8,612 ) Total $ 8,107 $ 9,006 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted income (loss) per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income (loss) attributable to common shareholders $ (5,537 ) $ (5,248 ) $ 368 $ (8,290 ) Weighted-average shares (1) 15,301 15,236 15,288 15,194 Basic and diluted income (loss) per common share $ (0.36 ) $ (0.34 ) $ 0.02 $ (0.55 ) __________________ (1) We have no dilutive securities. |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information for our segments as of and for the three and six months ended June 30, 2020 and 2019, are as follows (in thousands): Three Months Ended June 30, 2020 Shipyard F&S Corporate Consolidated Revenue $ 33,888 $ 26,606 $ (520 ) $ 59,974 Gross loss (1,231 ) (472 ) — (1,703 ) Operating loss (1,724 ) (1,394 ) (2,308 ) (5,426 ) Depreciation and amortization expense 802 1,188 77 2,067 Capital expenditures 4,299 1,143 179 5,621 Total assets 116,541 73,342 72,671 262,554 Six Months Ended June 30, 2020 Shipyard F&S Corporate Consolidated Revenue $ 79,447 $ 60,049 $ (967 ) $ 138,529 Gross profit (loss) (2,455 ) 498 — (1,957 ) Operating income (loss) (3,623 ) 8,771 (4,638 ) 510 Depreciation and amortization expense 1,589 2,546 152 4,287 Capital expenditures 5,742 1,824 179 7,745 Total assets 116,541 73,342 72,671 262,554 Three Months Ended June 30, 2019 Shipyard (1) F&S (1) Corporate Consolidated Revenue $ 40,053 $ 40,653 $ (250 ) $ 80,456 Gross profit (loss) (2,912 ) 1,460 (146 ) (1,598 ) Operating profit (loss) (3,564 ) 517 (2,337 ) (5,384 ) Depreciation and amortization expense 1,047 1,254 121 2,422 Capital expenditures 712 397 — 1,109 Total assets 106,851 90,011 80,729 277,591 Six Months Ended June 30, 2019 Shipyard (1) F&S (1) Corporate Consolidated Revenue $ 77,464 $ 71,246 $ (649 ) $ 148,061 Gross profit (loss) (3,192 ) 2,429 (282 ) (1,045 ) Operating profit (loss) (4,468 ) 266 (4,464 ) (8,666 ) Depreciation and amortization expense 2,156 2,595 223 4,974 Capital expenditures 734 625 — 1,359 Total assets 106,851 90,011 80,729 277,591 __________________ (1) Revenue of $2.5 million and $3.3 million for the three and six months ended June 30, 2019 associated with our two, forty-vehicle ferry projects was reclassified from our former Fabrication Division to our Shipyard Division to conform to the presentation of these projects for 2020 (the projects had no significant gross profit for 2019). |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)segmenttugvesselferryshiptowboat | Dec. 31, 2019USD ($)segment | |
Significant Accounting Policies [Line Items] | ||
Number of operating segments | segment | 2 | 3 |
Number of corporate non-operating segments | segment | 1 | 1 |
Number of harbor tug | 2 | |
Number of regional class research vessels | vessel | 3 | |
Number of ferries | ferry | 3 | |
Number of towing, salvage and rescue vessels | ship | 5 | |
Number of OSVs | vessel | 2 | |
Number of harbor tug | 8 | |
Number of towboats | towboat | 2 | |
Number of ice breaker tug | 1 | |
Prepaid contract costs | $ | $ 0 | $ 0 |
Other (income) expense, net | ||
Significant Accounting Policies [Line Items] | ||
Gain on settlement of contract dispute for project completed in 2015 | $ | $ 10,000,000 | |
Minimum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Maximum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, useful life | 25 years |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 59,974 | $ 80,456 | $ 138,529 | $ 148,061 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (520) | (250) | (967) | (649) |
Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,888 | 40,053 | 79,447 | 77,464 |
F&S | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,606 | 40,653 | 60,049 | 71,246 |
Fixed-price and unit-rate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54,127 | 68,458 | 122,901 | 120,332 |
Fixed-price and unit-rate | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (239) | (105) | (324) | (178) |
Fixed-price and unit-rate | Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,513 | 39,093 | 77,815 | 73,543 |
Fixed-price and unit-rate | F&S | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,853 | 29,470 | 45,410 | 46,967 |
T&M | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,830 | 9,147 | 13,012 | 22,730 |
T&M | Shipyard | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 375 | 960 | 1,632 | 3,921 |
T&M | F&S | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,455 | 8,187 | 11,380 | 18,809 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,017 | 2,851 | 2,616 | 4,999 |
Other | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (281) | (145) | (643) | (471) |
Other | F&S | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,298 | $ 2,996 | $ 3,259 | $ 5,470 |
Revenue, Contract Assets and _4
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligation by Operating Segment (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 448,104 |
Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 448,104 |
Fabrication & Services | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 30,547 |
Shipyard | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 417,557 |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Liabilities and Other Contract Matters -Summary of Remaining Performance Obligation by Operating Segment (Parenthetical) (Details) $ in Millions | Jun. 30, 2020USD ($)vessel | Mar. 31, 2018vessel |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Number of multi-purpose service vessels | vessel | 2 | 2 |
Shipyard | Disputes | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ | $ 21.9 |
Revenue, Contract Assets and _6
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligation (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 448,104 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 105,155 |
Remaining performance obligation, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 206,331 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 115,870 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 20,748 |
Remaining performance obligation, period |
Revenue, Contract Assets and _7
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligation (Details 1) $ in Thousands | Jun. 30, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Remaining performance obligation | $ 448,104 |
Revenue, Contract Assets and _8
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 77,860 | $ 52,128 |
Contract liabilities | (26,973) | (26,271) |
Contracts in progress, net | $ 50,887 | $ 25,857 |
Revenue, Contract Assets and _9
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |||||
Contract with customer, liability, revenue recognized | $ 5.1 | $ 7.6 | $ 19 | $ 13.9 | |
Contract with customer, liability, accrued contract losses, current | $ 3.2 | $ 3.2 | $ 6.4 |
Revenue, Contract Assets and_10
Revenue, Contract Assets and Liabilities and Other Contract Matters - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($)Vechicle | Jun. 30, 2020USD ($)Vechicle | Jun. 30, 2019USD ($)Vechicle | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Reduction of estimated contract price for liquidated damages, amount | $ 11.6 | $ 11.6 | $ 12.9 | $ 11.2 | |||||
Retainage | $ 3 | ||||||||
Harbor Tug | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | $ 1.4 | $ 0.6 | $ 1.2 | ||||||
Number of vehicle ferry projects | Vechicle | 2 | ||||||||
Reserve for loss | 0.6 | $ 1.6 | $ 0.6 | $ 1.6 | |||||
Forty-Vehicle Ferry | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | $ 1.2 | ||||||||
Number of vehicle ferry projects | Vechicle | 2 | 2 | 2 | ||||||
Reserve for loss | 2.5 | $ 2.5 | |||||||
Jacket and Deck | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | 0.5 | 0.5 | |||||||
Reserve for loss | 0.1 | 0.1 | |||||||
Paddlewheel Riverboat and Subsea Components Projects | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | 0.5 | 1.4 | |||||||
Ice-Breaker Tug | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | $ 0.9 | $ 0.8 | |||||||
Reserve for loss | 0.1 | 0.1 | |||||||
Forecast | Harbor Tug | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Projects, percent complete (percentage) | 80.00% | 93.00% | |||||||
Forecast | Forty-Vehicle Ferry | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Projects, percent complete (percentage) | 60.00% | 62.00% | |||||||
Forecast | Jacket and Deck | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Projects, percent complete (percentage) | 94.00% | ||||||||
Shipyard | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | 0.6 | $ 2.3 | 1.8 | $ 2 | |||||
Fabrication & Services | |||||||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||||||
Change in estimated margins | $ 1 | $ 1.9 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)craneDeckbarge | Jun. 30, 2019USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain (loss) on sale of assets | $ 5,000 | $ 565,000 | ||
Held for sale | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Number of cranes | crane | 3 | |||
Number of deck barges | Deckbarge | 1 | |||
Proceeds from sale of bending roll machines | $ 0 | $ 0 | $ 1,100,000 | 400,000 |
Gain (loss) on sale of assets | $ 0 | $ 0 | $ 0 | 400,000 |
Impairment of long-lived assets to be disposed of | $ 300,000 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Long Lived Assets Held-for-sale [Line Items] | ||
Machinery and equipment | $ 15,363 | $ 17,618 |
Accumulated depreciation | (7,256) | (8,612) |
Total | $ 8,107 | $ 9,006 |
Credit Facilities and Debt - Ad
Credit Facilities and Debt - Additional Information (Details) | Apr. 17, 2020USD ($) | Feb. 28, 2020 | Jun. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | |||
Revolving credit facility | $ 40,000,000 | ||
Maturity date | Jun. 9, 2021 | ||
Financial covenants, minimum current assets to current liabilities ratio | 1.25 | ||
Financial covenants, minimum net worth | $ 130,000,000 | ||
Debt instrument, covenant terms percent of proceeds from stock issuance added to net worth requirement (percentage) | 100.00% | ||
Cash, cash equivalents, and short-term investments | $ 69,200,000 | ||
Financial covenant, maximum funded debt to tangible net worth ratio | 0.50 | ||
Outstanding borrowings under our Credit Agreement | $ 0 | ||
Total outstanding letters of credit | 9,800,000 | ||
Remaining borrowing capacity on line of credit | 30,200,000 | ||
Tangible net worth | $ 154,100,000 | ||
Current ratio | 1.76 | ||
Funded debt to tangible net worth ratio | 0.13 | ||
Surety bonds | $ 371,800,000 | ||
Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate (percentage) | 2.00% | ||
Letter of Credit | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 3.25% | ||
Letter of Credit | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 2.00% | 0.18% | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Fees on undrawn borrowings (percentage) | 0.40% | ||
PPP Loan | |||
Line of Credit Facility [Line Items] | |||
Maturity date | Apr. 17, 2022 | ||
Stated interest rate (percentage) | 1.00% | ||
Unsecured loan amount | $ 10,000,000 | ||
Payment term description | The PPP Loan matures on April 17, 2022, bears interest at a fixed rate of 1.0 percent per annum and is payable in monthly installments commencing on the earlier of the date on which the amount of loan forgiveness is determined or March 17, 2021. | ||
Prepayment penalties | $ 0 | ||
Loan agreement condition terms | • Only amounts expended for Permissible Expenses during the eight-week or 24-week period, as elected by us, following April 17, 2020 (the “Covered Period”) are eligible for loan forgiveness. We have elected an eight-week Covered Period; • Of the total amount of Permissible Expenses for which forgiveness can be granted, at least 60% must be for payroll costs, or a proportionate reduction of the maximum loan forgiveness amount will occur; and | ||
Minimum percentage of payroll costs for loan forgiveness | 60.00% | ||
Employee compensation reduction minimum percentage | 25.00% | ||
PPP loan proceeds used for permissible expenses, percentage related to payroll costs | 94.00% | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Cash, cash equivalents, and short-term investments | $ 40,000,000 | ||
Maximum | Letter of Credit | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Jun. 30, 2020USD ($)vessel | Dec. 31, 2019USD ($) | Mar. 31, 2018vessel |
Commitments And Contingencies Disclosure [Abstract] | |||
Number of multi-purpose service vessels | vessel | 2 | 2 | |
Net contract asset | $ | $ 12.5 | $ 12.5 |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common shareholders | $ (5,537) | $ (5,248) | $ 368 | $ (8,290) |
Weighted-average shares | 15,301 | 15,236 | 15,288 | 15,194 |
Basic and diluted income (loss) per common share | $ (0.36) | $ (0.34) | $ 0.02 | $ (0.55) |
Income (Loss) Per Share - Com_2
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Dilutive securities (in shares) | 0 | 0 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019Vechicle | Jun. 30, 2020segmentVechicle | Jun. 30, 2019Vechicle | Dec. 31, 2019segment | |
Segment Reporting Information [Line Items] | ||||
Number of operating segments | 2 | 3 | ||
Number of corporate non-operating segments | 1 | 1 | ||
Forty-Vehicle Ferry | ||||
Segment Reporting Information [Line Items] | ||||
Number of vehicle ferry projects | Vechicle | 2 | 2 | 2 |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 59,974 | $ 80,456 | $ 138,529 | $ 148,061 | |
Gross profit (loss) | (1,703) | (1,598) | (1,957) | (1,045) | |
Operating income (loss) | (5,426) | (5,384) | 510 | (8,666) | |
Depreciation and amortization expense | 2,067 | 2,422 | 4,287 | 4,974 | |
Capital expenditures | 5,621 | 1,109 | 7,745 | 1,359 | |
Total assets | 262,554 | 277,591 | 262,554 | 277,591 | $ 252,777 |
Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 33,888 | 40,053 | 79,447 | 77,464 | |
F&S | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 26,606 | 40,653 | 60,049 | 71,246 | |
Operating Segments | Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 33,888 | 40,053 | 79,447 | 77,464 | |
Gross profit (loss) | (1,231) | (2,912) | (2,455) | (3,192) | |
Operating income (loss) | (1,724) | (3,564) | (3,623) | (4,468) | |
Depreciation and amortization expense | 802 | 1,047 | 1,589 | 2,156 | |
Capital expenditures | 4,299 | 712 | 5,742 | 734 | |
Total assets | 116,541 | 106,851 | 116,541 | 106,851 | |
Operating Segments | F&S | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 26,606 | 40,653 | 60,049 | 71,246 | |
Gross profit (loss) | (472) | 1,460 | 498 | 2,429 | |
Operating income (loss) | (1,394) | 517 | 8,771 | 266 | |
Depreciation and amortization expense | 1,188 | 1,254 | 2,546 | 2,595 | |
Capital expenditures | 1,143 | 397 | 1,824 | 625 | |
Total assets | 73,342 | 90,011 | 73,342 | 90,011 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (520) | (250) | (967) | (649) | |
Gross profit (loss) | (146) | (282) | |||
Operating income (loss) | (2,308) | (2,337) | (4,638) | (4,464) | |
Depreciation and amortization expense | 77 | 121 | 152 | 223 | |
Capital expenditures | 179 | 179 | |||
Total assets | $ 72,671 | $ 80,729 | $ 72,671 | $ 80,729 |
Operating Segments - Summariz_2
Operating Segments - Summarized Segment Financial Information (Parenthetical) (Details) - Forty-Vehicle Ferry $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)Vechicle | Jun. 30, 2020Vechicle | Jun. 30, 2019USD ($)Vechicle | |
Segment Reporting Information [Line Items] | |||
Revenue reclassified between the Shipyard and Fabrication & Services segments | $ | $ 2.5 | $ 3.3 | |
Number of vehicle ferry projects | Vechicle | 2 | 2 | 2 |