Gulf Island Fabrication, Inc. (NASDAQ: GIFI) (“Gulf Island”
or the “Company”), a leading steel fabricator and service
provider to the industrial and energy sectors, today announced
results for the fourth quarter and full year 2023.
FOURTH QUARTER 2023 SUMMARY
- Consolidated
revenue of $44.6 million
- Consolidated net
income of $7.1 million; Adjusted EBITDA of $6.6 million
- Services
Division operating income of $2.7 million; EBITDA of $3.2
million
- Fabrication
Division operating income of $6.1 million; Adjusted EBITDA of $5.4
million
- Cash and
short-term investments balance of $47.9 million at December 31,
2023
- Substantially
completed remaining ferry projects for the Shipyard Division
Consolidated revenue for the fourth quarter 2023
was $44.6 million, compared to consolidated revenue of $38.1
million for the prior year period. Consolidated net income for the
fourth quarter 2023 was $7.1 million, compared to consolidated net
income of $0.5 million for the prior year period. Consolidated
adjusted EBITDA for the fourth quarter 2023 was $6.6 million,
compared to consolidated adjusted EBITDA of $2.3 million for the
prior year period. Consolidated adjusted EBITDA for the fourth
quarter 2023 and 2022 excludes losses of $0.1 million and $3.6
million, respectively, for the Shipyard Division, and gains of $1.5
million and $3.0 million, respectively, for the Fabrication
Division, from the net impact of insurance recoveries and costs
associated with damage previously caused by Hurricane Ida.
FULL YEAR 2023 SUMMARY
- Consolidated
revenue of $151.1 million; Adjusted revenue of $181.5 million
- Consolidated net
loss of $24.4 million; Adjusted EBITDA of $17.0 million
- Services
Division operating income of $10.9 million; EBITDA of $12.9
million
- Fabrication
Division operating income of $10.6 million; Adjusted EBITDA of
$11.8 million
- Resolved MPSV
Litigation
Consolidated revenue for the full year 2023 was
$151.1 million, compared to consolidated revenue of $142.3 million
for the prior year period. Consolidated adjusted revenue for the
full year 2023 was $181.5 million, compared to consolidated
adjusted revenue of $134.6 million for the prior year period.
Consolidated adjusted revenue for the full year 2023 excludes
negative revenue of $30.4 million for the Shipyard Division
(including a revenue reversal of $32.5 million resulting from the
resolution of the Company’s MPSV Litigation) and consolidated
adjusted revenue for the full year 2022 excludes revenue of $7.7
million for the Shipyard Division.
Consolidated net loss for the full year 2023 was
$24.4 million, compared to consolidated net loss of $3.4 million
for the prior year period. Consolidated adjusted EBITDA for the
full year 2023 was $17.0 million, compared to consolidated adjusted
EBITDA of $2.3 million for the prior year period. Consolidated
adjusted EBITDA for the full year 2023 and 2022 excludes losses of
$39.4 million and $7.6 million, respectively, for the Shipyard
Division, and gains of $2.0 million and $7.5 million, respectively,
for the Fabrication Division, from the net impact of insurance
recoveries and costs associated with damage previously caused by
Hurricane Ida, and for the 2022 period, excludes a non-cash charge
of $0.5 million associated with the partial impairment of a lease
asset for the Corporate Division.
See “Non-GAAP Measures” below for the Company’s
definition of adjusted revenue, EBITDA and adjusted EBITDA and
reconciliations of the relevant amounts to the most comparable GAAP
measures.
MANAGEMENT COMMENTARY
“Our strong fourth quarter results cap off an
excellent year for Gulf Island and reflect the continued favorable
end market trends in our core Gulf Coast region, combined with the
benefits of the successful execution of our strategic initiatives,”
said Richard Heo, Gulf Island’s President and Chief Executive
Officer. “Our fourth quarter revenue increased 17% from last year
as a result of ongoing momentum in our small-scale fabrication and
services businesses, including a strong contribution from our Spark
Safety services offering launched in 2022. For our Services
division, we continue to execute on our strategy of deploying
assets to higher margin opportunities and growing Spark Safety,
which enabled us to increase our Services operating income by 35%
for the full year 2023. We also continued to demonstrate
strong project execution and bidding discipline for our Fabrication
division, which resulted in full year Fabrication gross margins of
over 11%. This is a strong result for the division given the
partial under-utilization of our facilities and resources. I am
extremely pleased with the execution across our businesses and I am
confident that Gulf Island is well positioned to benefit from
continued end market strength expected in our core Gulf Coast
region.”
“I am proud of the continued execution of our
strategic plan during 2023, and we enter 2024 in a strong position
to continue our focus on profitable growth,” continued Heo. “While
we continued to make important progress on our initiatives focused
on the services and fabrication businesses, the most important
achievements of 2023 center on the substantial completion of our
shipyard wind down and the successful resolution of the MPSV
Litigation. With these distractions behind us, we are fully
focused on taking advantage of the strong growth platform we have
created in our services and fabrication businesses and utilizing
our solid financial position to deploy capital to further enhance
shareholder value.”
“Our services and small-scale fabrication
businesses form a profitable and stable base business for Gulf
Island to continue to build on,” continued Heo. “During 2024,
we expect favorable market conditions and continued execution of
our strategic initiatives to drive continued growth in these core
businesses. For 2024, we expect Services EBITDA of approximately
$14 million and Fabrication EBITDA of approximately $8 million,
which excludes the potential benefit of any large project award. We
are encouraged by the strength of our base business and are excited
by our opportunities for growth.”
“Our strong operating results for the fourth
quarter, together with an ongoing focus on working capital
management, resulted in a year-end cash balance of nearly $48
million,” stated Westley Stockton, Gulf Island’s Chief Financial
Officer. “In February 2024, we completed the sale of excess
property that generated net cash proceeds of approximately $8.5
million, further strengthening our financial position. Based on our
expectations of operating results for the first quarter 2024 and
the proceeds of our recent property sale, we expect to exit the
first quarter with a cash balance approaching $60 million. This
will provide us with significant financial flexibility to pursue
our growth objectives, which include attractive organic and
inorganic opportunities.”
“This was an exciting year for Gulf Island, one
that would not have been possible without the hard work and
dedication of our employees across the organization,” noted Heo.
“While we remain encouraged by the large project opportunities in
our fabrication business, we are excited by the momentum in our
services and small-scale fabrication businesses, which combined
with our ability to take advantage of our strong financial
flexibility, position the company to drive value for
shareholders. I am very proud of all our accomplishments
during 2023, and remain confident that 2024 will build on the
strong foundation we have established,” concluded Heo.
RESOLUTION OF MPSV
LITIGATION
As previously disclosed, on October 4, 2023, the
Company’s lawsuit relating to the construction of two multi-purpose
supply vessels (“MPSV Litigation”) was dismissed in full with
prejudice at the request of the parties to the litigation. In
addition, on November 6, 2023, the Company entered into an
agreement (the “Settlement Agreement”) with the issuer (the
“Surety”) of the performance bonds for the MPSV construction
contracts, pursuant to which the Surety released the Company from
all of its obligations under the performance bonds and the
associated general indemnity agreements related to the performance
bonds, and the Company released possession of the MPSVs to the
Surety during the fourth quarter 2023. Further, the Company entered
into a promissory note (“Note Agreement”) payable to the Surety in
the principal amount of $20.0 million. The Note Agreement bears
interest at a fixed rate of 3.0% per annum commencing on January 1,
2024, with principal and interest payable in 15 equal annual
installments of approximately $1.7 million, beginning on December
31, 2024 and ending on December 31, 2038. As a result of the
resolution of the MPSV Litigation, during the third quarter 2023,
the Company’s Shipyard Division recorded a charge of $32.5 million,
consisting of a non-cash charge of $12.5 million associated with
the write-off of a noncurrent net contract asset related to the
MPSV construction contracts, and a charge of $20.0 million
associated with recording a liability resulting from the Settlement
Agreement and Note Agreement. The charge was reflected as a
reduction to previously recognized revenue on the MPSV construction
contracts, resulting in a negative revenue amount for the Shipyard
Division for the third quarter and full year 2023. The liability
was replaced with the Note Agreement in the fourth quarter 2023 and
is reflected as current and long-term debt at December 31, 2023.
The estimated present value of the Note Agreement amount is $12.7
million based on an estimated market rate of interest.
STRATEGIC UPDATE
During 2023, Gulf Island continued to execute on
the second phase of its strategic transformation, which is focused
on generating stable, profitable growth based on pursuing new
growth end markets, growing and diversifying its services business,
further strengthening project execution, and expanding its skilled
workforce, while continuing to pursue opportunities in its
traditional offshore markets. Some of the key accomplishments
achieved during 2023, as well as key priorities for 2024, are as
follows:
Pursue traditional offshore
markets – The demand environment for traditional offshore
activities in the Gulf of Mexico was robust during 2023, resulting
in favorable growth trends for both services and small-scale
fabrication projects. Driven by relative stability in oil
prices and healthy customer balance sheets, the momentum in the
Gulf of Mexico is anticipated to continue into 2024, which is
expected to result in continued growth in the coming year.
Pursue new growth end markets –
Gulf Island has a strong foundation to pursue new growth
opportunities in its core Gulf Coast region, primarily in the LNG,
petrochemical, and energy transition markets. Bidding activity
on large fabrication project opportunities remains active, driven
by strong industry fundamentals combined with limited industry
capacity. However, project decision cycles are extending due to
higher interest rates and a challenging permitting environment,
which has been exacerbated for the LNG market by the recent
announcement from the current administration calling for a pause on
LNG export project approvals. While the Company remains
confident that it is well-positioned to be awarded large project
opportunities, management will remain disciplined and continue its
focus on profitably growing its services and small-scale
fabrication businesses.
Grow and diversify services
business – Gulf Island continues to expand its services
business, driven by the favorable demand trends for offshore
services combined with the contribution of Spark Safety, the
Services Division’s welding enclosures business line. Services
revenue grew by 7.5% during 2023, and for 2024, the Company is
focused on strategic opportunities that capitalize on the
opportunities in the Gulf of Mexico.
Further strengthen project execution and
maintain bidding discipline – Project execution and
bidding discipline remain a key priority given inflationary
pressures and challenges with the availability of skilled labor.
The Company’s pursuit of consistent project execution was reflected
in the strong margin performance during 2023, with Services gross
margins expanding 180 basis points year-over-year, and Fabrication
gross margins reaching 11.4% for 2023 despite the partial
under-utilization of the division’s facilities and resources. Gulf
Island will maintain its focus on project execution in 2024 and
remain disciplined in pursuing projects that provide adequate
risk-adjusted returns.
Expand skilled workforce – A
strong skilled workforce is critical to success in the services and
fabrication markets, particularly given the current competitive
industry-wide labor environment. Gulf Island was able to maintain
its skilled labor headcount in Services during 2023 despite the
challenging labor environment. The Company remains confident
in its proven ability to ramp up headcount in Fabrication to
support new project awards, which places the Company in a strong
position to grow its fabrication business. The Company continues to
evaluate opportunities to expand its skilled labor headcount in
2024 given the favorable demand trends, including strategic
acquisitions to increase craft labor headcount.
SEGMENT RESULTS FOR FOURTH QUARTER
2023
Services Segment – Revenue for
the fourth quarter 2023 was $24.5 million, an increase of $2.9
million, or 13.4%, compared to the fourth quarter 2022, due
primarily to incremental revenue associated with the division’s
Spark Safety business line.
New project awards were $24.2 million for the
fourth quarter 2023, representing a 13.5% year-over-year increase,
and backlog totaled $0.5 million at December 31, 2023. The new
award growth was driven primarily by the Spark Safety business
line. See “Non-GAAP Measures” below for the Company’s definition of
new project awards and backlog.
Operating income was $2.7 million for the fourth
quarter 2023, compared to operating income of $2.2 million for the
fourth quarter 2022. EBITDA for the fourth quarter 2023 was $3.2
million (or 13.2% of revenue), versus EBITDA of $2.6 million (or
11.9% of revenue) for the prior year period, an increase of 25.1%.
The improved operating results for 2023 compared to 2022 were
primarily due to higher revenue and a more favorable project margin
mix, including the benefit of the division’s Spark Safety business
line. See “Non-GAAP Measures” below for the Company’s definition of
EBITDA and a reconciliation of the Services Division operating
income to EBITDA.
Fabrication Segment – Revenue
for the fourth quarter 2023 was $19.7 million, an increase of $3.3
million, or 19.8%, compared to the fourth quarter 2022, due
primarily to higher small-scale fabrication activity and the
favorable resolution of customer change orders.
New project awards were $19.9 million for the
fourth quarter 2023, representing a 15.1% year-over-year increase,
and backlog totaled $11.7 million at December 31, 2023. New
awards for the fourth quarter 2023 were related to small-scale
fabrication work and the favorable resolution of customer change
orders. See “Non-GAAP Measures” below for the Company’s definition
of new project awards and backlog.
Operating income was $6.1 million for the fourth
quarter 2023, compared to operating income of $4.1 million for the
fourth quarter 2022. Adjusted EBITDA for the fourth quarter 2023
was $5.4 million, versus adjusted EBITDA of $2.0 million for the
prior year period, an increase of 171.1%. Adjusted EBITDA for the
fourth quarter 2023 and 2022 exclude gains of $1.5 million and $3.0
million, respectively, from the net impact of insurance recoveries
and costs associated with damage previously caused by Hurricane
Ida. The improved operating results for 2023 compared to 2022
(excluding the Hurricane Ida impacts) were primarily due to project
improvements resulting from the resolution of customer change
orders and a more favorable project margin mix. This improvement
was partially offset by an increase in the under-recovery of
overhead costs associated with lower utilization of facilities and
resources resulting from the cancellation of the division’s large
fabrication contract (in July 2023), offset partially by an
increase in work hours associated with higher small-scale
fabrication activity. See “Non-GAAP Measures” below for the
Company’s definition of adjusted EBITDA and a reconciliation of the
Fabrication Division operating income to adjusted EBITDA.
Shipyard Segment – Revenue for
the fourth quarter 2023 was $0.6 million, an increase of $0.2
million compared to the fourth quarter 2022. Revenue for both
quarters was related entirely to the division’s seventy-vehicle
ferry and forty-vehicle ferry projects. The seventy-vehicle ferry
was completed, delivered and accepted by the customer during the
fourth quarter 2023. The final forty-vehicle ferry was
substantially completed and delivered during the fourth quarter
2023 and final customer acceptance of the ferry is expected in
March 2024.
Operating loss was $0.1 million for the fourth
quarter 2023, compared to an operating loss of $3.6 million for the
fourth quarter 2022. Operating results for the fourth quarter 2023
and 2022 included project charges of $0.2 million and $2.0 million,
respectively, associated with the division’s seventy-vehicle ferry
and forty-vehicle ferry projects.
Corporate Segment – Operating
loss was $2.1 million for the fourth quarter 2023, compared to an
operating loss of $2.3 million for the fourth quarter 2022. EBITDA
for the fourth quarter 2023 was a loss of $2.0 million, versus a
loss of $2.3 million for the prior year period.
Segment Descriptions – The
Company’s divisions represent its reportable segments which are
“Services”, “Fabrication”, “Shipyard” and “Corporate”. The Services
Segment includes offshore and onshore services work performed at
customer facilities, including offshore platforms. The Fabrication
Segment includes all fabrication work performed on-site at the
Company’s facilities, including pull-through fabrication work for
the Services Segment. The Shipyard Segment includes two ferries
under construction that were substantially completed in the fourth
quarter 2023, and vessel holding costs and legal fees associated
with the Company’s previous MPSV Litigation (discussed above). The
wind down of the Company’s Shipyard Segment operations was
substantially completed in the fourth quarter 2023 with the
substantial completion of the ferry projects. The Corporate Segment
includes costs that are not directly related to the Company’s
operating segments, including the costs of being a publicly traded
company.
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments
balance at December 31, 2023 was $47.9 million, including $1.5
million of restricted cash associated with outstanding letters of
credit. At December 31, 2023, the Company had current and
long-term debt of $20.0 million associated with the Note Agreement.
During the fourth quarter 2024, the Company repurchased 29,578
shares of its common stock for $0.1 million under its share
repurchase program commenced in December 2023. See “Resolution of
MPSV Litigation” above for discussion of the Note Agreement.
2024 FINANCIAL OUTLOOK
Gulf Island is providing indicative segment and
consolidated guidance for the full year 2024. Services segment
EBITDA is expected to be approximately $14.0 million, driven
primarily by continued growth in the Spark Safety business
line. Fabrication segment EBITDA is expected to be
approximately $8.0 million, which includes year-over-year growth in
the small-scale fabrication business, but excludes the potential
benefit of any large project award. The forecast also excludes
an anticipated gain of approximately $2.9 million resulting from
the previously disclosed property sale in February 2024. Forecasted
2024 EBITDA for Fabrication is lower than 2023 levels due to the
prior year benefiting from the contribution of the division’s large
fabrication project that was cancelled during the
year. Corporate segment EBITDA is expected to be a loss of
approximately $8.0 million, which is consistent with recent
historical experience. This forward-looking guidance reflects
management’s current expectations and beliefs as of March 7, 2024,
and is subject to change. See“Cautionary Statement” below for
further discussion of the factors that may affect the Company’s
future performance, “Non-GAAP Measures” below for the Company’s
definition of EBITDA, and “2024 Financial Outlook - Segment and
Consolidated EBITDA Reconciliations” below for reconciliations of
segment and consolidated EBITDA to the most comparable GAAP
measures.
FOURTH QUARTER 2023 CONFERENCE CALL
Gulf Island will hold a conference call on
Thursday, March, 7, 2024 at 4:00 p.m. Central Time (5:00 p.m.
Eastern Time) to discuss the Company’s financial results. The call
will be available by webcast and can be accessed on Gulf Island’s
website at www.gulfisland.com. Participants may also join the call
by dialing 1.877.704.4453 and requesting the “Gulf Island”
conference call. A replay of the webcast will be available on the
Company's website for seven days after the call.
ABOUT GULF ISLAND
Gulf Island is a leading fabricator of complex
steel structures and modules and provider of specialty services,
including project management, hookup, commissioning, repair,
maintenance, scaffolding, coatings, welding enclosures, civil
construction and staffing services to the industrial and energy
sectors. The Company’s customers include U.S. and, to a lesser
extent, international energy producers; refining, petrochemical,
LNG, industrial and power operators; and EPC companies. The Company
is headquartered in The Woodlands, Texas and its primary operating
facilities are located in Houma, Louisiana.
NON-GAAP MEASURES
This release includes certain non-GAAP measures,
including earnings before interest, taxes, depreciation and
amortization (“EBITDA”), adjusted EBITDA, adjusted revenue,
adjusted gross profit, new project awards and backlog. The Company
believes EBITDA is a useful supplemental measure as it reflects the
Company’s operating results and expectations of future performance
excluding the non-cash impacts of depreciation and amortization.
The Company believes adjusted EBITDA is a useful supplemental
measure as it reflects the Company’s EBITDA adjusted to remove
certain nonrecurring items (including the impact of insurance
recoveries and costs associated with damage previously caused by
Hurricane Ida and certain non-cash impairment charges) and the
operating results of the Company’s Shipyard Division (including the
impact of certain nonrecurring items related to the resolution of
the MPSV Litigation), which was substantially wound down in the
fourth quarter 2023. The Company believes adjusted revenue and
adjusted gross profit are useful supplemental measures as they
reflect the Company’s revenue, and gross profit or loss, adjusted
to remove revenue, and gross profit or loss, for the Company’s
Shipyard Division (including the impact of certain nonrecurring
items related to the resolution of the MPSV Litigation), which was
substantially wound down in the fourth quarter 2023.
Reconciliations of EBITDA, adjusted EBITDA, adjusted revenue and
adjusted gross profit to the most comparable GAAP measures are
presented under “Consolidated Results of Operations,” “Results of
Operations by Segment” and “2024 Financial Outlook – Segment and
Consolidated EBITDA Reconciliations” below.
The Company believes new project awards and
backlog are useful supplemental measures as they represent work
that the Company is obligated to perform under its current
contracts. New project awards represent the expected revenue value
of contract commitments received during a given period, including
scope growth on existing contract commitments. Backlog represents
the unrecognized revenue value of new project awards, and at
December 31, 2023, was consistent with the value of remaining
performance obligations for contracts as determined under GAAP.
Non-GAAP measures are not intended to be
replacements or alternatives to GAAP measures, and investors are
urged to consider these non-GAAP measures in addition to, and not
in substitution for, measures prepared in accordance with GAAP. The
Company may present or calculate non-GAAP measures differently from
other companies.
CAUTIONARY STATEMENT
This release contains forward-looking statements
in which the Company discusses its potential future performance,
operations and projects. Forward-looking statements, within the
meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, are all statements other
than statements of historical facts, such as projections or
expectations relating to operating results; diversification and
entry into new end markets; improvement of risk profile; industry
outlook; oil and gas prices; timing of investment decisions and new
project awards; cash flows and cash balance; capital expenditures;
implementation of the Company’s share repurchase program;
liquidity; and execution of strategic initiatives. The words
“anticipates,” “may,” “can,” “plans,” “believes,” “estimates,”
“expects,” “projects,” “intends,” “likely,” “will,” “to be,”
“potential” and any similar expressions are intended to identify
those assertions as forward-looking statements. The timing and
amount of any share repurchases will be at the discretion of
management and will depend on a variety of factors including, but
not limited to, the Company’s operating performance, cash flow and
financial position, the market price of its common stock and
general economic and market conditions. The share repurchase
program may be modified, increased, suspended or terminated at any
time at the Board’s discretion.
The Company cautions readers that
forward-looking statements are not guarantees of future performance
and actual results may differ materially from those anticipated,
projected or assumed in the forward-looking statements. Important
factors that can cause its actual results to differ materially from
those anticipated in the forward-looking statements include: supply
chain disruptions, inflationary pressures, economic slowdowns and
recessions, natural disasters, public health crises, labor costs
and geopolitical conflicts, and the related volatility in oil and
gas prices and other factors impacting the global economy; cyclical
nature of the oil and gas industry; competition; reliance on
significant customers; competitive pricing and cost overruns on its
projects; performance of subcontractors and dependence on
suppliers; timing and its ability to secure and commence execution
of new project awards, including fabrication projects for refining,
petrochemical, LNG, industrial and sustainable energy end markets;
its ability to maintain and further improve project execution;
nature of its contract terms and customer adherence to such terms;
suspension or termination of projects; changes in contract
estimates; customer or subcontractor disputes; operating dangers,
weather events and availability and limits on insurance coverage;
operability and adequacy of its major equipment; its ability to
raise additional capital; its ability to amend or obtain new debt
financing or credit facilities on favorable terms; its ability to
generate sufficient cash flow; its ability to resolve any material
legal proceedings; its ability to execute its share repurchase
program and enhance shareholder value; its ability to obtain
letters of credit or surety bonds and ability to meet any
indemnification obligations thereunder; consolidation of its
customers; financial ability and credit worthiness of its
customers; adjustments to previously reported profits or losses
under the percentage-of-completion method; its ability to employ a
skilled workforce; loss of key personnel; utilization of facilities
or closure or consolidation of facilities; failure of its safety
assurance program; barriers to entry into new lines of business;
weather impacts to operations; any future asset impairments;
changes in trade policies of the U.S. and other countries;
compliance with regulatory and environmental laws; lack of
navigability of canals and rivers; systems and information
technology interruption or failure and data security breaches;
performance of partners in any future joint ventures and other
strategic alliances; shareholder activism; and other factors
described under “Risk Factors” in Part I, Item 1A of the Company’s
annual report on Form 10-K for the year ended December 31, 2022, as
updated by subsequent filings with the SEC.
Additional factors or risks that the Company
currently deems immaterial, that are not presently known to the
Company or that arise in the future could also cause the Company’s
actual results to differ materially from its expected results.
Given these uncertainties, investors are cautioned that many of the
assumptions upon which the Company’s forward-looking statements are
based are likely to change after the date the forward-looking
statements are made, which it cannot control. Further, the Company
may make changes to its business plans that could affect its
results. The Company cautions investors that it undertakes no
obligation to publicly update or revise any forward-looking
statements, which speak only as of the date made, for any reason,
whether as a result of new information, future events or
developments, changed circumstances, or otherwise, and
notwithstanding any changes in its assumptions, changes in business
plans, actual experience or other changes.
COMPANY INFORMATION
Richard W. HeoChief Executive Officer713.714.6100 |
|
Westley S. StocktonChief Financial Officer713.714.6100 |
|
|
|
Consolidated Results of
Operations(1) (in thousands, except per
share data)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
New project awards(2) |
$ |
44,400 |
|
|
$ |
38,417 |
|
|
$ |
37,945 |
|
|
$ |
157,719 |
|
|
$ |
240,247 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
44,550 |
|
|
$ |
5,023 |
|
|
$ |
38,139 |
|
|
$ |
151,067 |
|
|
$ |
142,320 |
|
Cost of revenue |
|
36,087 |
|
|
|
34,902 |
|
|
|
35,716 |
|
|
|
162,968 |
|
|
|
134,425 |
|
Gross profit (loss)(3) |
|
8,463 |
|
|
|
(29,879 |
) |
|
|
2,423 |
|
|
|
(11,901 |
) |
|
|
7,895 |
|
General and administrative
expense(4) |
|
3,395 |
|
|
|
4,080 |
|
|
|
5,249 |
|
|
|
16,278 |
|
|
|
18,214 |
|
Other (income) expense,
net(5) |
|
(1,607 |
) |
|
|
(324 |
) |
|
|
(3,206 |
) |
|
|
(2,296 |
) |
|
|
(6,904 |
) |
Operating income (loss) |
|
6,675 |
|
|
|
(33,635 |
) |
|
|
380 |
|
|
|
(25,883 |
) |
|
|
(3,415 |
) |
Interest (expense) income,
net |
|
383 |
|
|
|
397 |
|
|
|
190 |
|
|
|
1,440 |
|
|
|
86 |
|
Income (loss) before income taxes |
|
7,058 |
|
|
|
(33,238 |
) |
|
|
570 |
|
|
|
(24,443 |
) |
|
|
(3,329 |
) |
Income tax (expense)
benefit |
|
32 |
|
|
|
3 |
|
|
|
(21 |
) |
|
|
41 |
|
|
|
(23 |
) |
Net income (loss) |
$ |
7,090 |
|
|
$ |
(33,235 |
) |
|
$ |
549 |
|
|
$ |
(24,402 |
) |
|
$ |
(3,352 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share |
$ |
0.44 |
|
|
$ |
(2.04 |
) |
|
$ |
0.04 |
|
|
$ |
(1.51 |
) |
|
$ |
(0.21 |
) |
Diluted income (loss) per share |
$ |
0.43 |
|
|
$ |
(2.04 |
) |
|
$ |
0.04 |
|
|
$ |
(1.51 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted
Revenue(2)
Reconciliation (in thousands)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
$ |
44,550 |
|
|
$ |
5,023 |
|
|
$ |
38,139 |
|
|
$ |
151,067 |
|
|
$ |
142,320 |
|
Add (less): Shipyard
revenue |
|
(556 |
) |
|
|
32,702 |
|
|
|
(357 |
) |
|
|
30,417 |
|
|
|
(7,671 |
) |
Adjusted revenue |
$ |
43,994 |
|
|
$ |
37,725 |
|
|
$ |
37,782 |
|
|
$ |
181,484 |
|
|
$ |
134,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted Gross
Profit(2) Reconciliation
(in thousands)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Gross profit (loss) |
$ |
8,463 |
|
|
$ |
(29,879 |
) |
|
$ |
2,423 |
|
|
$ |
(11,901 |
) |
|
$ |
7,895 |
|
Add (less): Shipyard gross
loss (profit) |
|
(93 |
) |
|
|
34,356 |
|
|
|
2,299 |
|
|
|
35,862 |
|
|
|
3,058 |
|
Adjusted gross profit |
$ |
8,370 |
|
|
$ |
4,477 |
|
|
$ |
4,722 |
|
|
$ |
23,961 |
|
|
$ |
10,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA and Adjusted
EBITDA(2)
Reconciliations (in thousands)
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income (loss) |
$ |
7,090 |
|
|
$ |
(33,235 |
) |
|
$ |
549 |
|
|
$ |
(24,402 |
) |
|
$ |
(3,352 |
) |
Less: Income tax (expense)
benefit |
|
32 |
|
|
|
3 |
|
|
|
(21 |
) |
|
|
41 |
|
|
|
(23 |
) |
Less: Interest (expense)
income, net |
|
383 |
|
|
|
397 |
|
|
|
190 |
|
|
|
1,440 |
|
|
|
86 |
|
Operating income (loss) |
|
6,675 |
|
|
|
(33,635 |
) |
|
|
380 |
|
|
|
(25,883 |
) |
|
|
(3,415 |
) |
Add: Depreciation and
amortization |
|
1,351 |
|
|
|
1,390 |
|
|
|
1,334 |
|
|
|
5,466 |
|
|
|
5,098 |
|
EBITDA |
|
8,026 |
|
|
|
(32,245 |
) |
|
|
1,714 |
|
|
|
(20,417 |
) |
|
|
1,683 |
|
Less: Hurricane insurance
gains |
|
(1,526 |
) |
|
|
(291 |
) |
|
|
(3,010 |
) |
|
|
(1,988 |
) |
|
|
(7,456 |
) |
Add: Non-cash impairments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
484 |
|
Add: Shipyard operating
loss |
|
106 |
|
|
|
35,117 |
|
|
|
3,589 |
|
|
|
39,374 |
|
|
|
7,554 |
|
Adjusted EBITDA |
$ |
6,606 |
|
|
$ |
2,581 |
|
|
$ |
2,293 |
|
|
$ |
16,969 |
|
|
$ |
2,265 |
|
_________________
(1) |
See “Results of Operations by Segment” below for results by
segment. |
(2) |
New projects awards, adjusted
revenue, adjusted gross profit, EBITDA and adjusted EBITDA are
non-GAAP measures. See “Non-GAAP Measures” above for the Company’s
definition of new project awards, adjusted revenue, adjusted gross
profit, EBITDA and adjusted EBITDA. |
(3) |
Gross profit for the Fabrication
Division for the three months ended December 31, 2023 and September
30, 2023, includes project improvements of $3.8 million and $0.7
million, respectively. Gross loss for the Shipyard Division for the
three months ended December 31, 2023, September 30, 2023 and
December 31, 2022, and twelve months ended December 31, 2023 and
2022, includes project charges of $0.2 million, $1.5 million, $2.0
million, $2.7 million and $2.0 million, respectively, and for each
of the three months ended September 30, 2023 and twelve months
ended December 31, 2023, includes a charge of $32.5 million
associated with the resolution of the Company’s MPSV Litigation,
and for the three months ended December 31, 2023, September 30,
2023 and December 31, 2022, and twelve months ended December 31,
2023 and 2022, includes vessel holding costs of $0.2 million, $0.2
million, $0.2 million, $0.9 million and $0.8 million, respectively,
associated with the Company’s previous MPSV Litigation. |
(4) |
General and administrative
expense for the Shipyard Division for the three months ended
December 31, 2023, September 30, 2023 and December 31, 2022, and
twelve months ended December 31, 2023 and 2022, includes legal and
advisory fees of $0.1 million, $0.9 million, $1.5 million, $3.2
million and $4.5 million, respectively, associated with the
Company’s previous MPSV Litigation. |
(5) |
Other (income) expense for the Fabrication Division for the three
months ended December 31, 2023, September 30, 2023 and December 31,
2022, and twelve months ended December 31, 2023 and 2022, includes
gains of $1.5 million, $0.3 million, $3.0 million, $2.0 million and
$7.5 million, respectively, from the net impact of insurance
recoveries and costs associated with damage previously caused by
Hurricane Ida. Other (income) expense for the Shipyard Division for
the three months ended December 31, 2023 and September 30, 2023,
and twelve months ended December 31, 2023 and 2022, includes
charges of $0.1 million, $0.1 million, $0.5 million and $0.2
million, respectively, associated with damage previously caused by
Hurricane Ida. Other (income) expense for the Corporate Division
for the twelve months ended December 31, 2022, includes a non-cash
impairment charge of $0.5 million associated with its corporate
office lease asset. |
|
|
Results of Operations by Segment
(including Reconciliations of EBITDA and Adjusted EBITDA)
(in thousands)
|
Three Months Ended |
|
Twelve Months Ended |
Services
Division |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
New project awards(1) |
$ |
24,150 |
|
|
$ |
22,776 |
|
|
$ |
21,274 |
|
|
$ |
92,728 |
|
|
$ |
85,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
24,515 |
|
|
$ |
22,976 |
|
|
$ |
21,609 |
|
|
$ |
93,548 |
|
|
$ |
87,022 |
|
Cost of revenue |
|
21,080 |
|
|
|
19,716 |
|
|
|
18,677 |
|
|
|
79,765 |
|
|
|
75,795 |
|
Gross profit |
|
3,435 |
|
|
|
3,260 |
|
|
|
2,932 |
|
|
|
13,783 |
|
|
|
11,227 |
|
General and administrative
expense |
|
699 |
|
|
|
701 |
|
|
|
717 |
|
|
|
2,902 |
|
|
|
2,997 |
|
Other (income) expense,
net |
|
(6 |
) |
|
|
(18 |
) |
|
|
3 |
|
|
|
(48 |
) |
|
|
106 |
|
Operating income |
$ |
2,742 |
|
|
$ |
2,577 |
|
|
$ |
2,212 |
|
|
$ |
10,929 |
|
|
$ |
8,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
2,742 |
|
|
$ |
2,577 |
|
|
$ |
2,212 |
|
|
$ |
10,929 |
|
|
$ |
8,124 |
|
Add: Depreciation and
amortization |
|
486 |
|
|
|
502 |
|
|
|
368 |
|
|
|
1,926 |
|
|
|
1,496 |
|
EBITDA |
$ |
3,228 |
|
|
$ |
3,079 |
|
|
$ |
2,580 |
|
|
$ |
12,855 |
|
|
$ |
9,620 |
|
|
Three Months Ended |
|
Twelve Months Ended |
Fabrication
Division |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
New project awards(1) |
$ |
19,896 |
|
|
$ |
16,589 |
|
|
$ |
17,291 |
|
|
$ |
66,629 |
|
|
$ |
154,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
19,664 |
|
|
$ |
14,979 |
|
|
$ |
16,414 |
|
|
$ |
89,046 |
|
|
$ |
48,299 |
|
Cost of revenue |
|
14,729 |
|
|
|
13,762 |
|
|
|
14,624 |
|
|
|
78,868 |
|
|
|
48,573 |
|
Gross profit (loss)(2) |
|
4,935 |
|
|
|
1,217 |
|
|
|
1,790 |
|
|
|
10,178 |
|
|
|
(274 |
) |
General and administrative
expense |
|
447 |
|
|
|
448 |
|
|
|
607 |
|
|
|
1,885 |
|
|
|
2,306 |
|
Other (income) expense,
net(3) |
|
(1,627 |
) |
|
|
(135 |
) |
|
|
(2,904 |
) |
|
|
(2,265 |
) |
|
|
(7,454 |
) |
Operating income |
$ |
6,115 |
|
|
$ |
904 |
|
|
$ |
4,087 |
|
|
$ |
10,558 |
|
|
$ |
4,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
6,115 |
|
|
$ |
904 |
|
|
$ |
4,087 |
|
|
$ |
10,558 |
|
|
$ |
4,874 |
|
Add: Depreciation and
amortization |
|
789 |
|
|
|
813 |
|
|
|
907 |
|
|
|
3,249 |
|
|
|
3,343 |
|
EBITDA |
|
6,904 |
|
|
|
1,717 |
|
|
|
4,994 |
|
|
|
13,807 |
|
|
|
8,217 |
|
Less: Hurricane insurance
gains |
|
(1,526 |
) |
|
|
(291 |
) |
|
|
(3,010 |
) |
|
|
(1,988 |
) |
|
|
(7,456 |
) |
Adjusted EBITDA |
$ |
5,378 |
|
|
$ |
1,426 |
|
|
$ |
1,984 |
|
|
$ |
11,819 |
|
|
$ |
761 |
|
|
Three Months Ended |
|
Twelve Months Ended |
Shipyard Division |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
New project awards(1) |
$ |
539 |
|
|
$ |
(718 |
) |
|
$ |
(379 |
) |
|
$ |
(528 |
) |
|
$ |
834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
556 |
|
|
$ |
(32,702 |
) |
|
$ |
357 |
|
|
$ |
(30,417 |
) |
|
$ |
7,671 |
|
Cost
of revenue |
|
463 |
|
|
|
1,654 |
|
|
|
2,656 |
|
|
|
5,445 |
|
|
|
10,729 |
|
Gross profit (loss)(4) |
|
93 |
|
|
|
(34,356 |
) |
|
|
(2,299 |
) |
|
|
(35,862 |
) |
|
|
(3,058 |
) |
General and administrative expense(5) |
|
98 |
|
|
|
857 |
|
|
|
1,530 |
|
|
|
3,205 |
|
|
|
4,469 |
|
Other
(income) expense, net(6) |
|
101 |
|
|
|
(96 |
) |
|
|
(240 |
) |
|
|
307 |
|
|
|
27 |
|
Operating loss |
$ |
(106 |
) |
|
$ |
(35,117 |
) |
|
$ |
(3,589 |
) |
|
$ |
(39,374 |
) |
|
$ |
(7,554 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(106 |
) |
|
$ |
(35,117 |
) |
|
$ |
(3,589 |
) |
|
$ |
(39,374 |
) |
|
$ |
(7,554 |
) |
Add:
Depreciation and amortization |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA |
$ |
(106 |
) |
|
$ |
(35,117 |
) |
|
$ |
(3,589 |
) |
|
$ |
(39,374 |
) |
|
$ |
(7,554 |
) |
|
Three Months Ended |
|
Twelve Months Ended |
Corporate Division |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
New project awards (eliminations)(1) |
$ |
(185 |
) |
|
$ |
(230 |
) |
|
$ |
(241 |
) |
|
$ |
(1,110 |
) |
|
$ |
(672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (eliminations) |
$ |
(185 |
) |
|
$ |
(230 |
) |
|
$ |
(241 |
) |
|
$ |
(1,110 |
) |
|
$ |
(672 |
) |
Cost
of revenue (eliminations) |
|
(185 |
) |
|
|
(230 |
) |
|
|
(241 |
) |
|
|
(1,110 |
) |
|
|
(672 |
) |
Gross profit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
General and administrative expense |
|
2,151 |
|
|
|
2,074 |
|
|
|
2,395 |
|
|
|
8,286 |
|
|
|
8,442 |
|
Other
(income) expense, net(7) |
|
(75 |
) |
|
|
(75 |
) |
|
|
(65 |
) |
|
|
(290 |
) |
|
|
417 |
|
Operating loss |
$ |
(2,076 |
) |
|
$ |
(1,999 |
) |
|
$ |
(2,330 |
) |
|
$ |
(7,996 |
) |
|
$ |
(8,859 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(2,076 |
) |
|
$ |
(1,999 |
) |
|
$ |
(2,330 |
) |
|
$ |
(7,996 |
) |
|
$ |
(8,859 |
) |
Add:
Depreciation and amortization |
|
76 |
|
|
|
75 |
|
|
|
59 |
|
|
|
291 |
|
|
|
259 |
|
EBITDA |
|
(2,000 |
) |
|
|
(1,924 |
) |
|
|
(2,271 |
) |
|
|
(7,705 |
) |
|
|
(8,600 |
) |
Add:
Non-cash impairments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
484 |
|
Adjusted EBITDA |
$ |
(2,000 |
) |
|
$ |
(1,924 |
) |
|
$ |
(2,271 |
) |
|
$ |
(7,705 |
) |
|
$ |
(8,116 |
) |
_________________
(1) |
New projects awards, EBITDA and adjusted EBITDA are non-GAAP
measures. See “Non-GAAP Measures” above for the Company’s
definition of new project awards, EBITDA and adjusted EBITDA. |
(2) |
Gross profit for the Fabrication
Division for the three months ended December 31, 2023 and September
30, 2023, includes project improvements of $3.8 million and $0.7
million, respectively. |
(3) |
Other (income) expense for the
Fabrication Division for the three months ended December 31, 2023,
September 30, 2023 and December 31, 2022, and twelve months ended
December 31, 2023 and 2022, includes gains of $1.5 million, $0.3
million, $3.0 million, $2.0 million and $7.5 million, respectively,
from the net impact of insurance recoveries and costs associated
with damage previously caused by Hurricane Ida. |
(4) |
Gross loss for the Shipyard
Division for the three months ended December 31, 2023, September
30, 2023 and December 31, 2022, and twelve months ended December
31, 2023 and 2022, includes project charges of $0.2 million, $1.5
million, $2.0 million, $2.7 million and $2.0 million, respectively,
and for each of the three months ended September 30, 2023 and
twelve months ended December 31, 2023, includes a charge of $32.5
million associated with the resolution of the Company’s MPSV
Litigation, and for the three months ended December 31, 2023,
September 30, 2023 and December 31, 2022, and twelve months ended
December 31, 2023 and 2022, includes vessel holding costs of $0.2
million, $0.2 million, $0.2 million, $0.9 million and $0.8 million,
respectively, associated with the Company’s previous MPSV
Litigation. |
(5) |
General and administrative
expense for the Shipyard Division for the three months ended
December 31, 2023, September 30, 2023 and December 31, 2022, and
twelve months ended December 31, 2023 and 2022, includes legal and
advisory fees of $0.1 million, $0.9 million, $1.5 million, $3.2
million and $4.5 million, respectively, associated with the
Company’s previous MPSV Litigation. |
(6) |
Other (income) expense for the
Shipyard Division for the three months ended December 31, 2023 and
September 30, 2023, and twelve months ended December 31, 2023 and
2022, includes charges of $0.1 million, $0.1 million, $0.5 million
and $0.2 million, respectively, associated with damage previously
caused by Hurricane Ida. |
(7) |
Other (income) expense for the
Corporate Division for the twelve months ended December 31, 2022,
includes a non-cash impairment charge of $0.5 million associated
with its corporate office lease asset. |
|
|
Consolidated Balance Sheets (in
thousands)
|
December 31, |
|
2023 |
|
2022 |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
38,176 |
|
|
$ |
33,221 |
|
Restricted cash |
|
1,475 |
|
|
|
1,603 |
|
Short-term investments |
|
8,233 |
|
|
|
9,905 |
|
Contract receivables and retainage, net |
|
36,298 |
|
|
|
29,427 |
|
Contract assets |
|
2,739 |
|
|
|
4,839 |
|
Prepaid expenses and other assets |
|
6,994 |
|
|
|
6,475 |
|
Inventory |
|
2,072 |
|
|
|
1,599 |
|
Assets held for sale |
|
5,640 |
|
|
|
— |
|
Total current assets |
|
101,627 |
|
|
|
87,069 |
|
Property, plant and equipment,
net |
|
23,145 |
|
|
|
31,154 |
|
Goodwill |
|
2,217 |
|
|
|
2,217 |
|
Other intangibles, net |
|
700 |
|
|
|
842 |
|
Other noncurrent assets |
|
739 |
|
|
|
13,584 |
|
Total assets |
$ |
128,428 |
|
|
$ |
134,866 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
8,466 |
|
|
$ |
8,310 |
|
Contract liabilities |
|
5,470 |
|
|
|
8,196 |
|
Accrued expenses and other liabilities |
|
14,836 |
|
|
|
14,283 |
|
Long-term debt, current |
|
1,075 |
|
|
|
— |
|
Total current liabilities |
|
29,847 |
|
|
|
30,789 |
|
Long-term debt,
noncurrent |
|
18,925 |
|
|
|
— |
|
Other noncurrent
liabilities |
|
685 |
|
|
|
1,453 |
|
Total liabilities |
|
49,457 |
|
|
|
32,242 |
|
Shareholders’ equity: |
|
|
|
|
|
Preferred stock, no par value, 5,000 shares authorized, no shares
issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, no par value, 30,000 shares authorized, 16,258 issued
and outstanding at December 31, 2023 and 15,973 at December
31, 2022 |
|
11,729 |
|
|
|
11,591 |
|
Additional paid-in capital |
|
108,615 |
|
|
|
107,372 |
|
Accumulated deficit |
|
(41,373 |
) |
|
|
(16,339 |
) |
Total shareholders’ equity |
|
78,971 |
|
|
|
102,624 |
|
Total liabilities and shareholders’ equity |
$ |
128,428 |
|
|
$ |
134,866 |
|
|
|
|
|
|
|
|
|
Consolidated Cash Flows (in thousands)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
7,090 |
|
|
$ |
(33,235 |
) |
|
$ |
549 |
|
|
$ |
(24,402 |
) |
|
$ |
(3,352 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,351 |
|
|
|
1,390 |
|
|
|
1,334 |
|
|
|
5,466 |
|
|
|
5,098 |
|
Asset impairments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
484 |
|
Change in allowance for doubtful accounts and credit losses |
|
— |
|
|
|
(210 |
) |
|
|
— |
|
|
|
(410 |
) |
|
|
— |
|
(Gain) loss on sale or disposal of fixed assets, net |
|
276 |
|
|
|
(216 |
) |
|
|
98 |
|
|
|
27 |
|
|
|
19 |
|
Gain on insurance recoveries |
|
(326 |
) |
|
|
— |
|
|
|
— |
|
|
|
(571 |
) |
|
|
(1,200 |
) |
Stock-based compensation expense |
|
525 |
|
|
|
513 |
|
|
|
838 |
|
|
|
1,991 |
|
|
|
2,302 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
(614 |
) |
|
|
631 |
|
|
|
3,585 |
|
|
|
(7,093 |
) |
|
|
(13,441 |
) |
Contract assets |
|
1,566 |
|
|
|
2,357 |
|
|
|
2,968 |
|
|
|
2,100 |
|
|
|
(80 |
) |
Prepaid expenses, inventory and other current assets |
|
(2,962 |
) |
|
|
1,874 |
|
|
|
1,021 |
|
|
|
(133 |
) |
|
|
2,224 |
|
Accounts payable |
|
(2,923 |
) |
|
|
(5,828 |
) |
|
|
(3,899 |
) |
|
|
(9 |
) |
|
|
(1,088 |
) |
Contract liabilities |
|
1,936 |
|
|
|
469 |
|
|
|
3,903 |
|
|
|
(2,726 |
) |
|
|
1,548 |
|
Accrued expenses and other current liabilities |
|
1,579 |
|
|
|
2,020 |
|
|
|
(273 |
) |
|
|
1,206 |
|
|
|
(561 |
) |
Noncurrent assets and liabilities, net |
|
(129 |
) |
|
|
32,256 |
|
|
|
(222 |
) |
|
|
31,751 |
|
|
|
(876 |
) |
Net cash provided by (used in) operating activities |
|
7,369 |
|
|
|
2,021 |
|
|
|
9,902 |
|
|
|
7,197 |
|
|
|
(8,923 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
(1,175 |
) |
|
|
(645 |
) |
|
|
(2,054 |
) |
|
|
(2,876 |
) |
|
|
(3,086 |
) |
Proceeds from Shipyard Transaction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
886 |
|
Proceeds from sale of property and equipment |
|
60 |
|
|
|
290 |
|
|
|
— |
|
|
|
456 |
|
|
|
2,035 |
|
Recoveries from insurance claims |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
245 |
|
|
|
1,200 |
|
Purchases of short-term investments |
|
(8,297 |
) |
|
|
(15,471 |
) |
|
|
(96 |
) |
|
|
(39,028 |
) |
|
|
(9,905 |
) |
Maturities of short-term investments |
|
15,500 |
|
|
|
15,200 |
|
|
|
— |
|
|
|
40,700 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
6,088 |
|
|
|
(626 |
) |
|
|
(2,150 |
) |
|
|
(503 |
) |
|
|
(8,870 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments on Insurance Finance Arrangements |
|
— |
|
|
|
(128 |
) |
|
|
(775 |
) |
|
|
(1,257 |
) |
|
|
(1,738 |
) |
Repurchases of common stock |
|
(128 |
) |
|
|
— |
|
|
|
— |
|
|
|
(128 |
) |
|
|
— |
|
Tax payments for vested stock withholdings |
|
— |
|
|
|
— |
|
|
|
(113 |
) |
|
|
(482 |
) |
|
|
(234 |
) |
Net cash used in financing activities |
|
(128 |
) |
|
|
(128 |
) |
|
|
(888 |
) |
|
|
(1,867 |
) |
|
|
(1,972 |
) |
Net
increase (decrease) in cash, cash equivalents and restricted
cash |
|
13,329 |
|
|
|
1,267 |
|
|
|
6,864 |
|
|
|
4,827 |
|
|
|
(19,765 |
) |
Cash,
cash equivalents and restricted cash, beginning of period |
|
26,322 |
|
|
|
25,055 |
|
|
|
27,960 |
|
|
|
34,824 |
|
|
|
54,589 |
|
Cash,
cash equivalents and restricted cash, end of period |
$ |
39,651 |
|
|
$ |
26,322 |
|
|
$ |
34,824 |
|
|
$ |
39,651 |
|
|
$ |
34,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 Financial Outlook - Segment and Consolidated
EBITDA(1)
Reconciliations (in thousands)
|
Twelve Months Ending December 31, 2024 |
|
Services |
|
Fabrication |
|
Shipyard |
|
Corporate |
|
Consolidated |
Net income (loss) |
$ |
12,000 |
|
|
$ |
5,200 |
|
|
$ |
- |
|
|
$ |
(6,400 |
) |
|
$ |
10,800 |
|
Less: Income tax (expense)
benefit |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Less: Interest (expense)
income, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,900 |
|
|
|
1,900 |
|
Operating income (loss) |
|
12,000 |
|
|
|
5,200 |
|
|
|
- |
|
|
|
(8,300 |
) |
|
|
8,900 |
|
Add: Depreciation and
amortization |
|
2,000 |
|
|
|
2,800 |
|
|
|
- |
|
|
|
300 |
|
|
|
5,100 |
|
EBITDA (2) |
$ |
14,000 |
|
|
$ |
8,000 |
|
|
$ |
- |
|
|
$ |
(8,000 |
) |
|
$ |
14,000 |
|
_________________
(1) |
EBITDA is a non-GAAP measure. See “Non-GAAP Measures” above for the
Company’s definition of EBITDA. |
(2) |
Excludes a gain of approximately
$2.9 million for the Fabrication Division resulting from the sale
of property in February 2024 that was classified as held for sale
at December 31, 2023. |
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