Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Gulf Island Fabrication, Inc. | ||
Entity Central Index Key | 0001031623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Common Stock, Shares Outstanding | 16,197,031 | ||
Entity Public Float | $ 37,696,000 | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-34279 | ||
Entity Tax Identification Number | 72-1147390 | ||
Entity Address, Address Line One | 2170 Buckthorne Place | ||
Entity Address, Address Line Two | Suite 420 | ||
Entity Address, City or Town | The Woodlands | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77380 | ||
City Area Code | 713 | ||
Local Phone Number | 714-6100 | ||
Document Annual 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 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Houston, Texas | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement to be prepared for use in connection with the registrant’s 2024 annual meeting of shareholders have been incorporated by reference into Part III of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
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 | [1],[2] | 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 | |
Current liabilities: | |||
Accounts payable | 8,466 | 8,310 | |
Contract liabilities | [3],[4],[5] | 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 | |
[1] Contract assets at December 31, 2023 and 2022, excluded $ 6.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase from December 31, 2022 to December 31, 2023, was primarily due to a customer for our Services Division. The decrease in contract assets from December 31, 2022 to December 31, 2023, was primarily due to decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. Contract liabilities at December 31, 2023 and 2022, included accrued contract losses of $ 0.4 million and $ 1.6 million, respectively, primarily related to projects for our Shipyard Division. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Revenue recognized during 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.6 million and $ 2.7 million, respectively. The decrease in contract liabilities from December 31, 2022 to December 31, 2023, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses for our Shipyard Division, offset partially by an increase in advance billings on various other projects for our Fabrication Division. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 16,258,000 | 15,973,000 |
Common stock, shares outstanding (in shares) | 16,258,000 | 15,973,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 151,067 | $ 142,320 |
Cost of revenue | 162,968 | 134,425 |
Gross profit (loss) | (11,901) | 7,895 |
General and administrative expense | 16,278 | 18,214 |
Other (income) expense, net | (2,296) | (6,904) |
Operating loss | (25,883) | (3,415) |
Interest (expense) income, net | 1,440 | 86 |
Loss before income taxes | (24,443) | (3,329) |
Income tax (expense) benefit | 41 | (23) |
Net loss | $ (24,402) | $ (3,352) |
Per share data: | ||
Basic loss per share | $ (1.51) | $ (0.21) |
Diluted loss per share | $ (1.51) | $ (0.21) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Adoption of ASU 2016-13 | After Adoption of ASU 2016-13 | Common Stock | Common Stock After Adoption of ASU 2016-13 | Additional Paid-In Capital | Additional Paid-In Capital After Adoption of ASU 2016-13 | Accumulated Deficit | Accumulated Deficit Adoption of ASU 2016-13 | Accumulated Deficit After Adoption of ASU 2016-13 |
Beginning Balance at Dec. 31, 2021 | $ 103,908 | $ 11,384 | $ 105,511 | $ (12,987) | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 15,622 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (3,352) | (3,352) | ||||||||
Vesting of restricted stock | (234) | $ (23) | (211) | |||||||
Vesting of restricted stock (in shares) | 351 | |||||||||
Stock-based compensation expense | 2,302 | $ 230 | 2,072 | |||||||
Ending Balance at Dec. 31, 2022 | $ 102,624 | $ (632) | $ 101,992 | $ 11,591 | $ 11,591 | 107,372 | $ 107,372 | (16,339) | $ (632) | $ (16,971) |
Ending Balance (in shares) at Dec. 31, 2022 | 15,973 | 15,973 | 15,973 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | $ (24,402) | (24,402) | ||||||||
Vesting of restricted stock | (482) | $ (48) | (434) | |||||||
Vesting of restricted stock (in shares) | 315 | |||||||||
Stock-based compensation expense | 1,991 | $ 199 | 1,792 | |||||||
Repurchases of common stock | (128) | $ (13) | (115) | |||||||
Repurchases of common stock (in shares) | (30) | |||||||||
Ending Balance at Dec. 31, 2023 | $ 78,971 | $ 11,729 | $ 108,615 | $ (41,373) | ||||||
Ending Balance (in shares) at Dec. 31, 2023 | 16,258 | 16,258 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (24,402) | $ (3,352) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 5,466 | 5,098 |
Asset impairments | 484 | |
Change in allowance for doubtful accounts and credit losses | (410) | |
Loss on sale or disposal of fixed assets, net | 27 | 19 |
Gain on insurance recoveries | (571) | (1,200) |
Stock-based compensation expense | 1,991 | 2,302 |
Changes in operating assets and liabilities: | ||
Contract receivables and retainage, net | (7,093) | (13,441) |
Contract assets | 2,100 | (80) |
Prepaid expenses, inventory and other current assets | (133) | 2,224 |
Accounts payable | (9) | (1,088) |
Contract liabilities | (2,726) | 1,548 |
Accrued expenses and other current liabilities | 1,206 | (561) |
Noncurrent assets and liabilities, net | 31,751 | (876) |
Net cash provided by (used in) operating activities | 7,197 | (8,923) |
Cash flows from investing activities: | ||
Capital expenditures | (2,876) | (3,086) |
Proceeds from Shipyard Transaction | 886 | |
Proceeds from sale of property and equipment | 456 | 2,035 |
Recoveries from insurance claims | 245 | 1,200 |
Purchases of short-term investments | (39,028) | (9,905) |
Maturities of short-term investments | 40,700 | |
Net cash used in investing activities | (503) | (8,870) |
Cash flows from financing activities: | ||
Payments on Insurance Finance Arrangement | (1,257) | (1,738) |
Repurchases of common stock | (128) | |
Tax payments for vested stock withholdings | (482) | (234) |
Net cash used in financing activities | (1,867) | (1,972) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 4,827 | (19,765) |
Cash, cash equivalents and restricted cash, beginning of period | 34,824 | 54,589 |
Cash, cash equivalents and restricted cash, end of period | 39,651 | 34,824 |
Supplemental cash flow information: | ||
Interest paid | 49 | 149 |
Accounts payable excluded from capital expenditures | 383 | $ 217 |
Reclassification of property, plant and equipment to assets held for sale | $ 5,640 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
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 and modules and a 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. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in The Woodlands, Texas and our primary operating facilities are located in Houma, Louisiana (“Houma Facilities”). See Note 9 for further discussion of our reportable segments. In the second quarter 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”). The Shipyard Transaction excluded the contracts and related obligations for our seventy-vehicle ferry and two forty-vehicle ferry projects (collectively, “Ferry Projects”) that were under construction as of the transaction date, and excluded the contracts and related obligations for the projects that were subject to our MPSV Litigation, which was resolved on October 4, 2023. The wind down of our remaining Shipyard Division operations was substantially completed in the fourth quarter 2023. See Note 2 for further discussion of our Ferry Projects, Note 7 for further discussion of the resolution of our MPSV Litigation and Note 9 for further discussion of the wind down of our Shipyard Division operations. Basis of Presentation The accompanying 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 the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the U.S. (“GAAP”). Operating Cycle The duration of our contracts vary, but may 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 long-term contracts, including application of the percentage-of-completion (“POC”) method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims (including amounts arising from disputes with customers) and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts and credit losses; • liabilities related to self-insurance programs; • determination of the fair-value of our long-term debt; and • the impacts of volatile oil and gas prices and macroeconomic conditions 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. Oil and Gas Price Volatility and Macroeconomic Conditions – For over a decade, prices of oil and gas have experienced significant volatility, including depressed prices over extended periods, which negatively impacted our end markets and operating results. Beginning in 2020, the global coronavirus pandemic (“COVID-19”) added another layer of pressure and uncertainty on oil and gas prices (with oil prices reaching a twenty-year low and gas prices reaching a four-year low in 2020), which further negatively impacted certain of our end markets through the first quarter 2022. This volatility in oil and gas prices was compounded by Russia’s invasion of Ukraine in February 2022 (and the related European energy crisis), and the U.S. and other countries actions in response, as well as continued inflationary pressures, resulting in elevated energy prices (with oil prices reaching an eight-year high and gas prices reaching a fourteen-year high in 2022), which positively impacted certain of our end markets. While oil and gas prices declined in 2023, prices have somewhat stabilized, but the duration of such stability is uncertain and difficult to predict, particularly in light of geopolitical turmoil and uncertainty. In addition, global economic factors that are beyond our control, have and could continue to impact our operations, including, but are not limited to, labor constraints, supply chain disruptions, inflationary pressures, economic slowdowns and recessions, natural disasters, public health crises, and geopolitical conflicts. The ultimate business and financial impacts of oil and gas price volatility and macroeconomic conditions on our business and results of operations continues to be uncertain, but the impacts have included, or may continue to include, among other things, reduced bidding activity; suspension or termination of backlog; deterioration of customer financial condition; and unanticipated project costs and schedule delays due to supply chain disruptions, labor and material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, increased safety incidents, lack of performance by subcontractors and suppliers, and contract disputes. We continue to monitor the impacts of oil and gas price volatility and macroeconomic conditions on our operations, and our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report. Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or 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 in periods in which income is reported. See Note 8 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. We hold substantially all of our cash deposits with Hancock Whitney Bank (“Whitney Bank”). Restricted Cash – At December 31, 2023 and 2022, we had $ 1.5 million and $ 1.6 million, respectively, of restricted cash as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Whitney Bank. Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current , and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent . See Note 4 for further discussion of our letters of credit and associated security requirements. 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 December 31, 2023 and 2022, our short-term investments included U.S. Treasuries with original maturities of approximately four to six months. We intend to hold these investments until maturity and it is not more likely than not that we will be required to sell the investments prior to their maturity. The investments are stated at amortized costs, 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 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 and Credit Losses As further discussed under “ New Accounting Standards” below, we adopted the new accounting standard for measuring credit losses effective January 1, 2023. 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 provide an allowance for credit losses and routinely review individual contract receivable balances and other financial assets for collectability 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, company-specific credit ratings, historical company-specific uncollectable amounts and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts and credit losses. Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. Depending on the terms of the award, we use the straight-line and graded vesting methods 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 Consolidated Statement of Operations (“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 Consolidated Statement of Cash Flows (“Statement of Cash Flows”). See Note 6 for further discussion of our stock-based and other compensation plans. 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 and Amortization 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. Intangible assets are amortized on a straight-line basis over seven years and amortization expense is reflected within general and administrative expense on our Statement of Operations. See Note 3 for further discussion of our property, plant and equipment and intangible assets. Long-Lived Assets Goodwill – Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment or when other actions require an impairment assessment (such as a change in reporting units). Our Services Division represents our only reporting unit with goodwill. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. To determine the fair value of our reporting unit and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profile of our reporting unit into our valuation model. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the period of impairment. See Note 3 for further discussion of our annual goodwill impairment assessment. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets) and finite-lived intangible 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 the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. We had no indicators of impairment during 2023. See Note 3 for discussion of our corporate office lease impairment during 2022. Leases We record a right-of-use asset and an offsetting lease liability on our Consolidated Balance Sheet (“Balance Sheet”) equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. See Note 3 for further discussion of our lease assets and liabilities. 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. Our fair value assessments for determining the impairments of inventory, assets held for sale, goodwill and long-lived assets, are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. Our fair value assessments for long-term debt are recurring fair value measurements that fall within Level 2 of the fair value hierarchy, and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets. See Note 3 for further discussion of our assets held for sale and Note 4 for further discussion of our long-term debt. 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, time and materials (“T&M”) and cost-reimbursable, or a combination thereof. Our contracts primarily relate to the fabrication of steel structures and modules, and certain 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. Long-term Contracts Satisfied Over Time – Revenue for our long-term contracts is recognized using the POC method based on contract costs incurred to date compared to total estimated contract costs (an input method). Fixed-price contracts, or contracts with a more significant fixed-price component, generally provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Unit-rate, T&M and cost-reimbursable contracts generally have more variability in the scope of work and provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of when revenue is recognized. 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 or loss for contracts accounted for using the POC method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and 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 2023 and 2022. Short-term Contracts and Contracts Satisfied at a Point In Time – Revenue for our short-term contracts (which includes revenue associated with our master services arrangements) and contracts that do not satisfy the criteria for revenue recognition over time is recognized when the work is performed or when control of the asset is transferred, the related costs are incurred and collection is reasonably assured. Variable Consideration – Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims (including amounts arising from disputes with customers), incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. Variable consideration can also include revenue associated with work performed on a unit-rate, T&M or cost-reimbursable basis that is recognized using the POC method. 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 our unapproved change orders, claims, incentives and liquidated damages. Additional Disclosures – Topic 606 also requires 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 December 31, 2023 and 2022, we had no deferred pre-contract costs. Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts and credit losses, gains or losses associated with the sale or disposition of property and equipment, and income or expense associated with certain nonrecurring items. For 2023 and 2022, other (income) expense, net included gains of $ 1.5 million and $ 7.3 million, respectively, related to the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida. See Note 2 for further discussion of the impacts of Hurricane Ida. Income Taxes Income taxes have been provided for 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 state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are anticipated 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. See Note 5 for further discussion of our income taxes and DTAs. New Accounting Standards Financial instruments – In the first quarter 2023, we adopted ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way we evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, we are required to use a new forward-looking “expected loss” model to evaluate impairment, which includes considering a broader range of information to estimate expected credit losses and may potentially result in earlier recognition of allowances for losses. The new accounting standard was adopted using the cumulative-effect transition method with any cumulative-effect adjustment being recorded to accumulated deficit on January 1, 2023. Upon adoption, we recorded a $ 0.6 million increase to beginning accumulated deficit, a $ 0.4 million decrease to contract receivables and retainage, net and contract assets, and a $ 0.2 million decrease to other noncurrent assets, on our Balance Sheet. Adoption of the new standard did not have a material effect on our results of operations or related disclosures. Business Combinations – In the first quarter 2023, we adopted ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which changes the way companies measure contract assets and contract liabilities from contracts with customers acquired in a business combination and creates an exception to the general recognition and measurement principle of ASC 805. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. Segment Reporting – In the fourth quarter 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 “ Segment Reporting - Improvements to Reportable Segment Disclosures ,” which requires additional information about a public company’s significant segment expenses and more timely and detailed segment information reporting throughout the fiscal period. The new standard will be effective for us in the fourth quarter 2024. 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 the retrospective transition method. We are assessing the effect that the new standard will have on our financial statement disclosures; however, adoption will not impact our Balance Sheet or Statement of Operations. Income Taxes – In the fourth quarter 2023, the FASB issued ASU 2023-09 “ Income Taxes - Improvements to Income Tax Disclosures ,” which requires enhanced disclosures related to rate reconciliation and income taxes paid information. The new standard will be effective for us in the fourth quarter 2025. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard may be applied using either the prospective or retrospective transition method. We are assessing the effect of the new standard on our financial statement disclosures; however, adoption will not impact our Balance Sheet or Statement of Operations. |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 12 Months Ended |
Dec. 31, 2023 | |
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 for 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 and duration, for 2023 and 2022 (in thousands): Year ended December 31, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 1,618 $ 51,015 $ ( 30,417 ) $ ( 33 ) $ 22,183 T&M and cost-reimbursable 87,914 38,031 — — 125,945 Other 4,016 — — ( 1,077 ) 2,939 Total $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Long-term $ 1,618 $ 82,535 $ ( 30,417 ) $ ( 33 ) $ 53,703 Short-term 91,930 6,511 — ( 1,077 ) 97,364 Total $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Year ended December 31, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 5,035 $ 36,127 $ 7,671 $ ( 7 ) $ 48,826 T&M and cost-reimbursable 79,426 9,526 — — 88,952 Other 2,561 2,646 — ( 665 ) 4,542 Total $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 Long-term $ 5,035 $ 43,037 $ 7,671 $ — $ 55,743 Short-term 81,987 5,262 — ( 672 ) 86,577 Total $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 Future Performance Obligations The following table summarizes remaining performance obligations for each of our operating segments, disaggregated by contract type, at December 31, 2023 (in thousands): December 31, 2023 Services Fabrication Shipyard Total Fixed-price and unit-rate $ 502 $ 11,446 $ 709 $ 12,657 T&M and cost-reimbursable — 293 — 293 Total (1) $ 502 $ 11,739 $ 709 $ 12,950 (1) We expect all of our performance obligations at December 31, 2023, to be recognized as revenue during 2024. C ertain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. Contracts Assets and Liabilities The timing of customer invoicing and recognition of revenue using the POC method may occur at different times. 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 billings when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet, or to the extent we have an unconditional right to the consideration, is reflected as contract receivables 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 contracts that were incomplete at December 31, 2023 and 2022, is as follows (in thousands): December 31, 2023 2022 Costs incurred to date $ 117,274 $ 112,693 Estimated losses incurred to date ( 12,735 ) ( 12,610 ) Sub-total 104,539 100,083 Billings to date ( 107,270 ) ( 103,440 ) Total $ ( 2,731 ) $ ( 3,357 ) The above amounts are included within the following captions on our Balance Sheet at December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Contract assets (1), (2) $ 2,739 $ 4,839 Contract liabilities (3), (4), (5) ( 5,470 ) ( 8,196 ) Total $ ( 2,731 ) $ ( 3,357 ) (1) The decrease in contract assets from December 31, 2022 to December 31, 2023, was primarily due to decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. (2) Contract assets at December 31, 2023 and 2022, excluded $ 6.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase from December 31, 2022 to December 31, 2023, was primarily due to a customer for our Services Division. (3) The decrease in contract liabilities from December 31, 2022 to December 31, 2023, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses for our Shipyard Division, offset partially by an increase in advance billings on various other projects for our Fabrication Division. (4) Revenue recognized during 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.6 million and $ 2.7 million, respectively. (5) Contract liabilities at December 31, 2023 and 2022, included accrued contract losses of $ 0.4 million and $ 1.6 million, respectively, primarily related to projects for our Shipyard Division. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Significant Customers The following table summarizes revenue for customers that accounted for 10% or more of our consolidated revenue for 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Customer A $ 70,497 $ 54,257 Customer B 26,956 * Customer C (1) 16,498 14,635 Customer D (1) 15,481 * (*) The customer revenue was less than 10 % of consolidated revenue for the year. (1) For 2023, these customers accounted for 10 % or more of our consolidated revenue due to lower revenue for the period associated with a charge of $ 32.5 million for our Shipyard Division, resulting from the resolution of our MPSV Litigation. See “Changes in Project Estimates” below and Note 7 for further discussion of the charge and resolution of our MPSV Litigation. Allowance for Doubtful Accounts and Credit Losses Our provision for bad debts and credit losses is included in other (income) expense, net on our Statement of Operations. For 2023, we recognized income of $ 0.4 m illion associated with revisions to our allowance for doubtful accounts and credit losses, and for 2022, changes were not significant. Our allowance for doubtful accounts and credit losses at December 31, 2023 was $ 0.2 million, and it was not significant at December 31, 2022. We recorded a $ 0.6 million increase to beginning accumulated deficit as of January 1, 2023, in connection with our adoption of ASU 2016-13. We had no significant write-offs or recoveries of previously recorded bad debts during 2023 or 2022. See “New Accounting Standards” in Note 1 for further discussion of our adoption of ASU 2016-13. Variable Consideration For 2023 and 2022, we had no material amounts in revenue related to unapproved change orders, claims or incentives, other than amounts related to the resolution of our MPSV Litigation discussed further below. However, at December 31, 2023 and 2022, certain active projects within our Shipyard Division reflected a reduction to our estimated contract price for liquidated damages of $ 1.4 million and $ 1.4 million, respectively. Changes in Project Estimates We determine the impact of changes in estimated margins on projects for a given period by calculating the amount of revenue recognized in the period that would have been recognized in a prior period had such estimated margins been forecasted in the prior period. The total impact of changes in estimated margins for a project as disclosed on a quarterly basis may be different from the applicable year-to-date impact due to the application of the POC method and the changing progress of the project at each period end. Such impacts may also be different when a project is commenced and completed within the applicable year-to-date period but spans multiple quarters. Changes in Estimates for 2023 – During 2023, we recorded a charge of $ 32.5 million for our Shipyard Division, reflected as a reduction to revenue, resulting from the resolution of our MPSV Litigation. See Note 7 for further discussion of the charge and resolution of our MPSV Litigation. In addition, during 2023, significant changes in estimated margins on projects negatively impacted operating results for our Shipyard Division by $ 2.7 million. The changes in estimates were associated with the following: • Seventy-Vehicle Ferry Project – During 2023, we completed, delivered and received final customer acceptance of our seventy-vehicle ferry. D uring 2023, our operating results were negatively impacted by $ 1.3 million from changes in estimates on the project, associated primarily with increased materials and subcontracted services costs, duration related costs due to extensions of schedule and net reductions to contract price. The cost impacts were primarily due to delays in the receipt of certain equipment that required replacement and subcontractor delays. The contract price impacts were primarily due to a price reduction resulting from the required replacement of the vessel’s propeller blades (discussed further below), offset partially by price increases due to favorable resolution of customer change orders and the customer’s agreement to forego a portion of previously forecasted liquidated damages. As discussed in our previous quarterly filings, in connection with the delivery and commissioning of the vessel in the second quarter 2023, corrosion on the propeller blades was identified and the customer determined that replacement of the propeller blades will be required. The customer has agreed to directly procure the new propeller blades and take responsibility for future installation of the blades once received. Further, the customer agreed to bear a portion of the cost of the new propeller blades, with the remainder borne by us through the aforementioned contract price reduction. At December 31, 2023, the project was in a loss position and the warranty period for the vessel ends in the third quarter 2024. The project would experience further losses if we incur unanticipated warranty costs on the vessel. • Forty-Vehicle Ferry Projects – During 2022, we substantially completed and delivered the first of two forty-vehicle ferries, and during 2023, we received final customer acceptance of the ferry. Further, during 2023, we substantially completed and delivered our second forty-vehicle ferry, and we anticipate final customer acceptance of the ferry in March 2024. During 2023, our operating results were negatively impacted by $ 1.4 million from changes in estimates on the projects, associated primarily with (i) warranty costs on the first vessel, and (ii) increased materials and subcontracted services costs and duration related costs due to extensions of schedule, including forecast liquidated damages, on the second vessel. The impacts for the second vessel were primarily due to delays in the receipt of certain equipment that required replacement and subcontractor delays. As discussed in our 2022 Financial Statements and subsequent quarterly filings, as a result of design deficiencies, we experienced rework, construction and commissioning challenges on the two ferries, resulting in forecast cost increases and liquidated damages, and the previous need to fabricate a new hull for the second vessel. Accordingly, during 2021, we submitted claims to our customer, and subsequently filed a lawsuit, to extend our project schedules and recover the cost impacts of the design deficiencies. The customer denied all liability. Our forecasts at December 31, 2023 do not reflect potential future benefits, if any, from the favorable resolution of the lawsuit and we can provide no assurance that we will be successful recovering previously incurred costs. At December 31, 2023, the projects were in a loss position and the warranty period for the first vessel ends in the second quarter 2024 and the warranty period for the second vessel is anticipated to end in the first quarter 2025. The projects would experience further losses if we incur unanticipated warranty costs on the vessels. Changes in Estimates for 2022 – During 2022, significant changes in estimated margins on projects negatively impacted operating results for our Shipyard Division by $ 2.0 million. The changes in estimates were associated with the following: • Seventy-Vehicle Ferry Project – During 2022, our operating results were negatively impacted by $ 0.9 million from changes in estimates on our seventy-vehicle ferry project, associated primarily with increased materials and subcontracted services costs and duration related costs due to extensions of schedule, including forecast liquidated damages. The impacts were primarily due to equipment issues identified during testing, subcontractor delays and the U.S. Coast Guard’s determination that the vessel’s wood consoles, contractually specified by the customer, were required to be replaced or modified with metal consoles. • Forty-Vehicle Ferry Projects – During 2022, our operating results were negatively impacted by $ 1.1 million from changes in estimates on our second forty-vehicle ferry project, associated primarily with increased subcontracted services and craft labor costs and duration related costs due to extensions of schedule, including forecast liquidated damages. The impacts were primarily due to structural design deficiencies for the vessel (discussed further above), which resulted in deflection issues within the plating of the vessel. Other Operating and Project Matters During 2021, our operations were impacted by Hurricane Ida, which made landfall near Houma, Louisiana as a high-end Category 4 hurricane, causing debris and damage to our buildings and equipment at our Houma Facilities. Our insurance coverages in effect at the time of the storm generally specified coverage amounts for each of our buildings (including contents) and major equipment. Fabrication Division Impacts – During 2023 and 2022, we received insurance payments of $ 2.2 million and $ 13.1 million, respectively, from our insurance carriers associated with interruptions to our operations and damage to buildings and equipment . Further, in the fourth quarter 2023, we finalized all claims associated with our insurance coverages, and at December 31, 2023, we had total insurance receivables on our Balance Sheet of $ 2.0 million, all of which was collected in January 2024. The classification of insurance proceeds within our Statement of Cash Flows is based on our use or intended use of the proceeds. Proceeds used or intended to be used for repairs that are not deemed to be capital in nature, and proceeds associated with interruptions to our operations, are reflected within operating activities. Proceeds used or intended to be used for repairs that are deemed capital in nature, or proceeds in excess of repair costs, are reflected within investing activities. The timing of payments from our insurance carriers often differed from when we incurred the applicable repair and cleanup costs, and accordingly, we accounted for such differences in timing as follows: • To the extent we incurred repair costs in excess of insurance proceeds received to date, we recorded an insurance receivable when we believed such amounts were probable of recovery under our insurance policies. • To the extent proceeds received exceeded repair costs incurred to date, we recorded an insurance gain as we did not have an obligation to perform further repair activities. Charges were recorded in subsequent periods to the extent such proceeds received were used for repair activities that were not deemed to be capital in nature. • Insurance deductibles, clean-up costs and uninsured losses were expensed. Based on the above, during 2023 and 2022, we recorded gains of $ 2.0 million (including $ 0.6 million related to our business interruption coverage) and $ 7.5 million (including $ 3.7 million related to our business interruption coverage), respectively, related to the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida. The gains are included in other (income) expense, net on our Statement of Operations and are reflected within our Fabrication Division. Shipyard Division Impacts – In addition to damage to our Houma Facilities, the storm resulted in damage to one of our forty-vehicle ferry projects , the multi-purpose supply vessels (“MPSV(s)”) and associated equipment that were previously in our possession and subject to our MPSV Litigation, and certain bulkheads where the vessels were moored. During 2023 and 2022, we recorded charges of $ 0.5 million and $ 0.2 million, respectively, related to actual costs incurred. The charges are included in other (income) expense, net on our Statement of Operations and are reflected within our Shipyard Division. See Note 7 for further discussion of the resolution of our MPSV Litigation. |
LONG-LIVED ASSETS AND LEASED FA
LONG-LIVED ASSETS AND LEASED FACILITIES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
LONG-LIVED ASSETS AND LEASED FACILITIES AND EQUIPMENT | 3. LONG-LIVED ASSETS AND LEASED FACILITIES AND EQUIPMENT Property, plant and equipment Property, plant and equipment consisted of the following at December 31, 2023 and 2022 (in thousands): Estimated December 31, Useful Life 2023 2022 (in Years) Land — $ 2,103 $ 4,376 Buildings 10 to 25 19,232 25,584 Machinery and equipment 3 to 15 64,035 67,851 Furniture and fixtures 3 to 5 762 994 Transportation equipment 2 to 5 2,369 2,361 Improvements 15 17,277 23,246 Construction in progress — 2,060 2,881 Total property, plant and equipment 107,838 127,293 Accumulated depreciation ( 84,693 ) ( 96,139 ) Property, plant and equipment, net $ 23,145 $ 31,154 Depreciation expense for 2023 and 2022 was $ 4.9 million and $ 4.7 million, respectively. In February 2024, we sold certain property of our Fabrication Division that was part of our Houma Facilities for $ 8.5 million (net of transaction and other costs). The property sold was classified as an asset held for sale (“Houma AHFS”) on our Balance Sheet at December 31, 2023, and its carrying value was $ 5.6 million, which was less than its fair value based on the proceeds from its sale. Leased Facilities and Equipment We lease certain office, warehouse and operating facilities under long-term lease arrangements that expire at various dates through October 2027 , some of which include renewal options ranging from one to 20 years . At December 31, 2023 , our lease asset , current lease liability and long-term lease liability were $ 0.7 million , $ 0.8 million and $ 0.5 million , respectively. Our lease obligations include any renewal options that we intend to exercise. Future minimum payments under leases having initial terms of more than twelve months are as follows (in thousands): Minimum 2024 $ 884 2025 424 2026 76 2027 64 Total lease payments 1,448 Less: interest ( 99 ) Present value of lease payments (1), (2) $ 1,349 (1) During 2022, we entered into a sublease arrangement with a third-party for the remainder of our corporate office lease, which will partially recover our lease costs for the office for the duration of the lease. In connection therewith, we recorded an impairment charge of $ 0.5 million associated with the underlying right-of-use asset for the corporate office lease. The impairment is included in other (income) expense, net on our Statement of Operations and is reflected within our Corporate Division. (2) The discount rate used to determine the present value of our lease payments was based on the interest rate on our LC Facility adjusted for terms similar to that of our leased properties. At December 31, 2023, our weighted-average remaining lease term was approximately 1.9 years and the weighted-average discount rate used to derive our lease liability was 6.9 % . L ease expense for our leased facilities and equipment, which includes lease asset amortization expense and expense for leases with original terms that are twelve months or less, for 2023 and 2022 , was $ 1.7 million and $ 1.6 million, respectively. Cash paid for leases for 2023 and 2022 was $ 2.0 million and $ 2.0 million, respectively. Certain of our leases are subject to subleases with third parties. Sublease income for 2023 and 2022 was $ 0.6 million and $ 0.4 million, respectively, and is included in other (income) expense, net on our Statement of Operations. During 2022, we sold a purchase option for $ 1.9 million (net of transaction and other costs) that was entered into in connection with a previous acquisition that provided us with a right to buy a leased fabrication and operating facility for a nominal amount. No material gain or loss was recognized on the sale of the purchase option as the net proceeds approximated the carrying value of the underlying right-of-use asset associated with the leased facility. The net proceeds are included in proceeds from sale of property and equipment on our Statement of Cash Flows. Goodwill and Other Intangible Assets Goodwill – As discussed in Note 1, goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent indicators of impairment or when other actions require an impairment assessment (such as a change in reporting units). We perform our annual impairment assessment during the fourth quarter of each year based on balances as of October 1. At October 1, 2023, our Services Division represented our only reporting unit. During 2023, we had no indicators of impairment and had no changes to our reporting unit. We performed a qualitative assessment of our goodwill, and determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying value. Accordingly, a quantitative assessment was not deemed necessary. Other Intangible Assets – Other intangible assets were derived from the estimated fair value of existing underlying customer relationships associated with a previous acquisition and consisted of the following at December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Customer relationships $ 996 $ 996 Accumulated amortization ( 296 ) ( 154 ) Intangible assets, net $ 700 $ 842 Our intangible assets have estimated lives of seven years and amortization expense for 2023 and 2022 was $ 0.1 million and $ 0.1 million, respectively. Amortization expense is estimated to be $ 0.1 million to $ 0.2 million for each of 2024, 2025, 2026, 2027 and 2028. |
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES AND DEBT | 4. CREDIT FACILITIES AND DEBT LC Facility On May 5, 2023, we amended our LC Facility with Whitney Bank to reduce our letters of credit capacity from $ 20.0 million to $ 10.0 million, subject to our cash securitization of the letters of credit, and extend the maturity date to June 30, 2024 . Commitment fees on the unused portion of the LC Facility are 0.4 % per annum and interest on outstanding letters of credit is 1.5 % per annum. At December 31, 2023, we had $ 1.5 million of outstanding letters of credit under the LC Facility. See Note 7 for further discussion of our letters of credit and associated security requirements. Surety Bonds We issue surety bonds in the ordinary course of business to support our projects. At December 31, 2023, we had $ 52.5 million of outstanding surety bonds, of which $ 45.6 million relates to our Ferry Projects for our Shipyard Division and $ 6.9 million relates to our Fabrication Division contracts and certain of our insurance coverages. See Note 7 for further discussion of our surety bonds and related indemnification obligations. Note Agreement In connection with the resolution of our MPSV Litigation and the Settlement Agreement, on November 6, 2023, we entered into a promissory note (“Note Agreement ”) with one of our Sureties (Fidelity & Deposit Company of Maryland (“FDC”) and Zurich American Insurance Company (together with FDC, “Zurich”)), pursuant to which we will pay Zurich $ 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 . Future annual principal maturities under the Note Agreement are as follows (in thousands): Principal 2024 $ 1,075 2025 1,108 2026 1,141 2027 1,175 2028 1,210 Thereafter 14,291 Total maturities (1), (2) $ 20,000 (1) At December 31, 2023, the estimated present value of the Note Agreement amount was $ 12.7 million based on an estimated market rate of interest. (2) Due to the forbearance of interest until January 1, 2024, the effective rate on the Note Agreement is 2.9 % per annum. Accordingly, we accrued interest expense of $ 0.1 million during 2023 associated with the difference between the effective interest rate and stated interest rate on the Note Agreement. See Note 7 for further discussion of the resolution of our MPSV Litigation and the Settlement Agreement. Mortgage Agreement and Restrictive Covenant Agreement In connection with the receipt of a consent for the Shipyard Transaction from Zurich, we entered into a multiple indebtedness mortgage (“Mortgage Agreement”) and a restrictive covenant arrangement (“Restrictive Covenant Agreement”) with Zurich to secure our obligations for our MPSV projects and forty-vehicle ferry projects. The Mortgage Agreement encumbers all real estate associated with the Houma Facilities and includes certain covenants and events of default. In connection with the resolution of our MPSV Litigation and Note Agreement entered into with Zurich, the Mortgage Agreement was modified on November 6, 2023, to include a provision requiring that 50 percent of the net proceeds received by us in excess of $ 8.0 million from the sale of any real estate of our Houma Facilities be used to make early payments on the principal balance under the Note Agreement. The Mortgage Agreement will terminate when the obligations and liabilities of Zurich associated with the outstanding surety bonds for the forty-vehicle ferry projects are discharged and the Note Agreement is repaid. The Restrictive Covenant Agreement precluded us from paying dividends or repurchasing shares of our common stock; however, in connection with the Settlement Agreement, the Restrictive Covenant Agreement was terminated. See Note 1 for further discussion of the Shipyard Transaction and Note 7 for further discussion of the resolution of our MPSV Litigation and the Settlement Agreement. Insurance Finance Arrangements In connection with the renewal of our property and equipment insurance coverages during 2022, and general liability insurance coverages during 2023, we entered into short-term premium finance arrangements (“Insurance Finance Arrangements”). The property and equipment arrangement totaled $ 2.4 million, payable in ten equal monthly installments through March 2023 , with interest at a fixed rate of 4.3 % per annum. The general liability arrangement totaled $ 0.5 million, payable in eight equal monthly installments through August 2023 , with interest at a fixed rate of 6.6 % per annum. We considered the transactions to be non-cash financing activities, with the initial financed amount reflected within accrued expenses and other liabilities, and a corresponding asset reflected within prepaid expenses and other assets, on our Balance Sheet. During 2023 and 2022, we made principal payments of $ 1.3 million and $ 1.7 million , respectively, which have been reflected as a financing activity on our Statement of Cash Flows. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES Income Tax (Expense) Benefit A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit for 2023 and 2022, is as follows (in thousands): Years Ended December 31, 2023 2022 U.S. statutory rate 21.0 % 21.0 % Increase (decrease) resulting from: Permanent differences ( 1.0 )% ( 5.1 )% State income taxes ( 0.3 )% 5.7 % Discrete items Vesting of common stock ( 0.2 )% ( 1.0 )% Change in valuation allowance ( 19.4 )% ( 23.1 )% Return to provision and other 0.1 % 1.8 % Income tax (expense) benefit 0.2 % ( 0.7 )% Significant components of our income tax (expense) benefit for 2023 and 2022, were as follows (in thousands): Years Ended December 31, 2023 2022 Current Federal $ — $ — State — — Total current — — Deferred Federal 4,933 556 State ( 24 ) 166 Valuation allowance ( 4,868 ) ( 745 ) Total deferred 41 ( 23 ) Income tax (expense) benefit $ 41 $ ( 23 ) Deferred Taxes Significant components of our deferred tax assets and liabilities at December 31, 2023 and 2022, were as follows (in thousands): December 31, 2023 2022 Deferred tax assets Leases $ 144 $ 221 Employee benefits 1,499 1,465 Accrued losses on uncompleted contracts 77 2,076 Stock based compensation expense 373 351 Debt interest 516 - Federal net operating losses 28,413 22,444 State net operating losses 3,407 3,493 R&D and other tax credits 1,037 1,013 Other 242 481 Total deferred tax assets 35,708 31,544 Deferred tax liabilities Depreciation ( 564 ) ( 1,051 ) Prepaid insurance ( 280 ) ( 497 ) Total deferred tax liabilities ( 844 ) ( 1,548 ) Net deferred tax assets 34,864 29,996 Valuation allowance ( 34,927 ) ( 30,100 ) Net deferred taxes (1) $ ( 63 ) $ ( 104 ) (1) Amounts are included in other noncurrent liabilities on our Balance Sheet . At December 31, 2023 and 2022, we had total DTAs of $ 35.7 million and $ 31.5 million , respectively (including U.S. federal net operating losses (“NOL(s)”) DTAs of $ 28.4 million and $ 22.4 million , respectively). On a periodic and ongoing basis, we evaluate our DTAs (including our NOL DTAs) and assess the appropriateness of our valuation allowance(s) (“VA(s)”). In assessing the need for a VA, we consider both positive and negative evidence related to the likelihood of realizing our DTAs. If, based upon the available evidence, our assessment indicates that it is more likely than not that some or all of the DTAs will not be realized, we record a VA. Our assessments include, among other things, the amount of taxable temporary differences that will result in future taxable income, the value and quality of our backlog, evaluations of existing and anticipated market conditions, analysis of recent and historical operating results (including cumulative losses over multiple periods) and projections of future results and strategic plans, as well as asset expiration dates. As a result of our assessment and due to cumulative losses for the three years ended December 31, 2023, we believe the negative evidence outweighs the positive evidence with respect to our ability to realize our DTAs, and accordingly, at December 31, 2023 and 2022, we had VAs of $ 34.9 million and $ 30.1 million , respectively, offsetting our total DTAs. At December 31, 2023, we had gross U.S. federal NOL carryforwards (excluding VAs) of $ 135.3 million, of which $ 42.3 million will expire in 2037 with the remaining U.S. federal NOL carryforwards eligible to be carried forward indefinitely, subject to an 80 % limitation on taxable income in each year. At December 31, 2023, we had gross state NOL carryforwards (excluding VAs) of $ 45.2 million, which will expire fro m 2035 through 2041. Uncertain Tax Positions 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. At December 31, 2023 and 2022, we had no material reserves for uncertain tax positions. Tax returns subject to examination by the U.S. Internal Revenue Service are open for years after 2019. |
RETIREMENT AND LONG-TERM INCENT
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share Based Payments And Retirement Disclosure [Abstract] | |
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 6. RETIREMENT AND LONG-TERM INCENTIVE PLANS Defined Contribution Plan We sponsor a defined contribution plan for eligible employees that is qualified under Section 401(k) of the Internal Revenue Code, which includes voluntary employee pre-tax contributions and Company-matching contributions, with potential additional discretionary contributions determined by our Board of Directors (“Board”). During 2023 and 2022, we contributed $ 0.7 million and $ 0.7 million , respectively, to the plan. Long-Term Incentive Plans Under our long-term incentive plans (“Incentive Plans”), the Compensation Committee of our Board may grant cash-based and equity-based awards to eligible employees and non-employee directors, including restricted stock unit (“RSU”) awards (both time-based and performance-based), stock option awards and cash-based performance awards. The Compensation Committee determines the amount of each award, as well as the terms, conditions, performance measures and other provisions of the award. Under our Incentive Plans, the maximum number of shares that may be granted to any one officer or employee during any single calendar year is 300,000 . At December 31, 2023, we had 1,146,746 authorized shares available for future issuance under our Incentive Plans. RSU Awards – An RSU represents the right to receive one share of our common stock upon vesting, or the equivalent cash value on the vesting date if the award is cash-settled. RSUs are subject to transfer restrictions, forfeiture provisions and other terms and conditions of the Incentive Plans and applicable award agreements. Forfeitures are recognized as they occur. • Time-based RSU Awards – Outstanding time-based RSU awards to our non-employee directors and employees have a one-year or three-year , respectively, graded vesting period. The fair value for these awards was determined based upon the closing price of our stock on the date of grant applied to the total number of units granted. The fair value is expensed over the applicable vesting period on a straight-line basis. • Performance-based RSU Awards – Outstanding performance-based RSU awards to our employees have a three-year graded vesting period. These awards provide that the number of shares of common stock ultimately issued will be between 0 % and 200 % of the target award based on the achievement of performance targets attributable to the year in which the awards are made, up to the maximum per person limit, with any excess shares earned payable in cash. The fair value for these awards was determined based upon the closing price of our stock on the date of grant applied to the total number of units anticipated to be granted based on the performance targets achieved. This fair value is expensed over the applicable vesting period using the graded vesting method. As a result of the performance targets achieved for 2021, one award recipient’s performance-based RSU awards were subject to partial cash-settlement (“Cash-Settled RSUs”) as described above. Accordingly, we account for this portion of the awards as liability-classified awards, with changes in the fair value of the awards reflected within general and administrative expense on our Statement of Operations over the vesting period. Compensation expense for our Cash-Settled RSUs was not significant for 2023 and was $ 0.1 million for 2022. During 2023 and 2022, $ 0.1 million and $ 0.1 million, respectively, was paid related to our Cash-Settled RSUs. A summary of activity for our RSU awards (excluding Cash-Settled RSUs) for 2023 and 2022 is as follows: 2023 2022 Number Weighted- Number Weighted- RSUs, beginning of period 838,267 $ 4.34 842,558 $ 4.47 Granted 550,980 3.47 463,600 4.24 Vested ( 443,106 ) 4.21 ( 403,559 ) 4.46 Forfeited — — ( 64,332 ) 4.49 RSUs, end of period 946,141 3.89 838,267 4.34 Compensation expense for our RSU awards was $ 2.0 million and $ 2.3 million for 2023 and 2022, respectively, and is included in general and administrative expense and cost of revenue, as applicable, on our Statement of Operations. At December 31, 2023, we had $ 1.9 million of unrecognized compensation expense related to our RSU awards. This cost is expected to be recognized over a weighted-average period of 1.5 y ears. The total fair value of RSU awards granted during 2023 and 2022 was $ 1.9 million and $ 2.0 million, respectively, and the total fair value of RSU awards that vested during 2023 and 2022 was $ 1.6 million and $ 1.6 million, respectively. The income tax benefit (expense) associated with our share-based compensation arrangements was not significant for 2023 or 2022. Stock Option Awards and Cash-based Performance Awards – At December 31, 2023, we had no outstanding stock option awards or cash-based performance awards and no such awards were made during 2023 or 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Routine Legal Proceedings 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 legal proceedings 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 liquidity. Resolution of MPSV Litigation On March 19, 2018, our subsidiary, Gulf Island Shipyards, LLC (“GIS”), received termination notices from its customer, Hornbeck Offshore Services, LLC (“Hornbeck”), of the contracts for the construction of two MPSVs. GIS disputed the purported terminations and disagreed with Hornbeck’s reasons for such terminations. In connection with such purported terminations, Hornbeck also made claims against the performance bonds issued by Zurich in connection with the construction of the MPSVs, for which the face amount of the bonds totaled $ 50.0 million (“Performance Bonds”). On October 2, 2018, GIS filed a lawsuit against Hornbeck to enforce its rights and remedies under the applicable construction contracts for the two MPSVs. The lawsuit was filed in the Twenty-Second Judicial District Court for the Parish of St. Tammany, State of Louisiana and was styled Gulf Island Shipyards, LLC v. Hornbeck Offshore Services, LLC, bearing docket number 2018-14861 (“MPSV Litigation”). Hornbeck subsequently asserted counterclaims against GIS and Zurich seeking damages. On October 4, 2023, the MPSV Litigation was dismissed in full with prejudice at the request of the parties after the parties reached an agreement in principle. In addition, on November 6, 2023, GIS and the Company entered into an agreement (“Settlement Agreement”) with Zurich pursuant to which Zurich released GIS and the Company from all of their obligations under the Performance Bonds and the associated general indemnity agreements relating to the Performance Bonds, and we agreed to release possession of the MPSVs to Zurich, which occurred in the fourth quarter 2023. Further, we entered into the Note Agreement. See Note 4 for further discussion of the Note Agreement. As a result of the resolution of the MPSV Litigation, during the third quarter 2023, we recorded a charge of $ 32.5 million, consisting of (i) a $ 12.5 million non-cash charge associated with the write-off of a noncurrent net contract asset related to the MPSV construction contracts, and (ii) a $ 20.0 million charge 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 2023, and is included in the changes in noncurrent assets and liabilities, net on our Statement of Cash Flows. The liability was replaced with the Note Agreement in the fourth quarter 2023 and is reflected as current and long-term debt on our Balance Sheet at December 31, 2023. Insurance We maintain insurance coverage for various aspects of our business and operations. However, we may be exposed to future losses due to coverage limitations and our use of deductibles and self-insured retentions for our exposures related to property and equipment damage, builder’s risk, third-party liability and workers’ compensation and USL&H claims. In connection with our insurance coverage renewal for our property and equipment during 2023, we determined that the benefits of maintaining insurance coverage for our property and equipment were limited due to high premium costs and deductibles and increased coverage limitations. Accordingly, we did not renew all of our property and equipment coverage and are now generally self-insured for exposures resulting from any future damage to our property and equipment. To the extent we have insurance coverage, we do not have an offset right for liabilities in excess of any deductibles and self-insured retentions. Accordingly, we have recorded a liability for estimated amounts in excess of our deductibles and retentions, and have recorded a corresponding asset related to estimated insurance recoveries, on our Balance Sheet. Further, 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. See Note 2 for discussion of the costs incurred associated with damage caused by Hurricanes Ida. Letters of Credit and Surety Bonds We obtain letters of credit under our LC Facility 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. Letters of credit under our LC Facility are subject to cash securitization of the full amount of the outstanding letters of credit. In the event of non-performance under a contract, our cash securitization with respect to the letter of credit supporting such contract would become the property of Whitney Bank. With respect to surety bonds, payments by a Surety pursuant to a bond in the event of non-performance are subject to reimbursement to such Surety by us under a general indemnity agreement relating to such bond. Such indemnification obligations may include the face amount of the surety bond, or portions thereof, as well as other reimbursable items such as interest and certain investigative expenses and legal fees of the Surety. Such indemnification obligations would require us to use our cash, cash equivalents or short-term investments, and we may not have sufficient liquidity to satisfy such indemnification obligations. 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 LC Facility 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. Leases We maintain operating leases for our corporate office and certain operating facilities and equipment. See Note 3 for further discussion of our leases. |
INCOME (LOSS) PER SHARE AND SHA
INCOME (LOSS) PER SHARE AND SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Income (Loss) Per Share And Shareholders' Equity [Abstract] | |
INCOME (LOSS) PER SHARE AND SHAREHOLDERS' EQUITY | 8. INCOME (LOSS) PER SHARE AND SHAREHOLDERS’ EQUITY Income (Loss) Per Share The following table presents the computation of basic and diluted loss per share for 2023 and 2022 (in thousands, except per share data): Years Ended December 31, 2023 2022 Net loss $ ( 24,402 ) $ ( 3,352 ) Weighted average shares 16,193 15,840 Basic and diluted loss per share $ ( 1.51 ) $ ( 0.21 ) Shareholders’ Equity On December 1, 2023, our Board approved a share repurchase program (“Share Repurchase Program”) authorizing the repurchase of up to $ 5.0 million of our outstanding common stock, effective from December 15, 2023 through December 15, 2024 . The timing and amount of any share repurchases is at the discretion of management and may be made from time to time through transactions in the open market, in privately negotiated transactions or by other means in accordance with applicable laws. The Share Repurchase Program does not obligate us to repurchase any shares of common stock and may be modified, increased, suspended or terminated at the discretion of our Board. During 2023, we repurchased 29,578 shares of our common stock for $ 0.1 million, and at December 31, 2023, we had remaining authorization to purchase $ 4.9 million under the Share Repurchase Program. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | 9. OPERATING SEGMENTS We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our three operating divisions and Corporate Division are discussed below. Services Division – Our Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures and other specialty services on offshore platforms and inland structures and at industrial facilities; provides services required to connect production equipment and service modules and equipment on offshore platforms; provides project management and commissioning services; provides industrial staffing services; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. Our services activities are managed from our various Facilities. Fabrication Division – Our Fabrication 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; and fabricates other complex steel structures and components. Our fabrication activities are performed at our Houma Facilities. Shipyard Division – Our Shipyard Division previously fabricated newbuild marine vessels and provided marine repair and maintenance services. However, in the second quarter 2021, we completed the Shipyard Transaction. The Shipyard Transaction excluded the contracts and related obligations for our Ferry Projects that were under construction as of the transaction date, and excluded the contracts and related obligations for the projects that were subject to our MPSV Litigation, which was resolved on October 4, 2023. Construction of the Ferry Projects was performed at our Houma Facilities and the wind down of our remaining Shipyard Division operations was substantially completed in the fourth quarter 2023. Final completion of the wind down will occur upon completion of the warranty periods for the Ferry Projects, the last of which is anticipated to occur in the first quarter 2025. At December 31, 2023 and 2022, the net operating liabilities on our Balance Sheet associated with our Shipyard Division operations totaled $ 1.4 million and $ 2.7 million, respectively. See Note 1 for further discussion of the Shipyard Transaction, Note 2 for further discussion of our Ferry Projects and Note 7 for further discussion of the resolution of our MPSV Litigation. Corporate Division and Allocations – Our Corporate Division includes costs that do not directly relate to our 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, certain insurance costs and costs associated with overall corporate governance and reporting requirements for a publicly traded company. Shared resources and costs that benefit more than one operating division are allocated amongst the operating divisions based on each operating division’s estimated share of the benefit received. Such costs include, but are not limited to, human resources, insurance, information technology, accounting, business development and certain division leadership. Segment Results – We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit or loss and operating income or 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 two-year period ended December 31, 2023, is as follows (in thousands): Year Ended December 31, 2023 Services Fabrication Shipyard Corporate Total Revenue (eliminations) (1) $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Gross profit (loss) (1) 13,783 10,178 ( 35,862 ) — ( 11,901 ) Operating income (loss) (1) 10,929 10,558 ( 39,374 ) ( 7,996 ) ( 25,883 ) Depreciation and amortization expense 1,926 3,249 — 291 5,466 Capital expenditures 544 2,233 — 99 2,876 Total assets (3) 32,191 42,368 1,553 52,316 128,428 Year Ended December 31, 2022 Services Fabrication Shipyard Corporate Total Revenue (eliminations) $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 Gross profit (loss) (2) 11,227 ( 274 ) ( 3,058 ) — 7,895 Operating income (loss) (2) 8,124 4,874 ( 7,554 ) ( 8,859 ) ( 3,415 ) Depreciation and amortization expense 1,496 3,343 — 259 5,098 Capital expenditures 2,326 633 — 127 3,086 Total assets (3) 28,016 40,531 16,330 49,989 134,866 (1) Revenue for 2023 includes a charge of $ 32.5 million resulting from the resolution of our MPSV Litigation for our Shipyard Division. Gross profit (loss) and operating income (loss) for 2023 includes a charge of $ 32.5 million resulting from the resolution of our MPSV Litigation and project charges of $ 2.7 million for our Shipyard Division. Operating income (loss) for 2023 also includes gains of $ 2.0 million from the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida for our Fabrication Division, charges of $ 0.5 million associated with damage previously caused by Hurricane Ida for our Shipyard Division, and the partial under-recovery of overhead costs for our Fabrication Division. See Note 2 for further discussion of our project and Hurricane Ida impacts and Note 7 for further discussion of the resolution of our MPSV Litigation. (2) Gross profit (loss) and operating income (loss) for 2022 includes project charges of $ 2.0 million for our Shipyard Division. Operating income (loss) for 2022 also includes gains of $ 7.5 million from the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida for our Fabrication Division, charges of $ 0.2 million associated with damage previously caused by Hurricane Ida for our Shipyard Division, an impairment charge of $ 0.5 million associated with the underlying right-of-use asset for our corporate office lease for our Corporate Division, and the partial under-recovery of overhead costs for our Fabrication Division. See Note 2 for further discussion of our project and Hurricane Ida impacts and Note 3 for further discussion of our corporate office lease asset impairment. (3) Cash and short-term investments are reported within our Corporate Division. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 10. SUBSEQUENT EVENTS In February 2024, we sold our Houma AHFS for $ 8.5 million (net of transaction and other costs). See Note 3 for further discussion of our Houma AHFS. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 and modules and a 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. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in The Woodlands, Texas and our primary operating facilities are located in Houma, Louisiana (“Houma Facilities”). See Note 9 for further discussion of our reportable segments. In the second quarter 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”). The Shipyard Transaction excluded the contracts and related obligations for our seventy-vehicle ferry and two forty-vehicle ferry projects (collectively, “Ferry Projects”) that were under construction as of the transaction date, and excluded the contracts and related obligations for the projects that were subject to our MPSV Litigation, which was resolved on October 4, 2023. The wind down of our remaining Shipyard Division operations was substantially completed in the fourth quarter 2023. See Note 2 for further discussion of our Ferry Projects, Note 7 for further discussion of the resolution of our MPSV Litigation and Note 9 for further discussion of the wind down of our Shipyard Division operations. |
Basis of Presentation | Basis of Presentation The accompanying 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 the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the U.S. (“GAAP”). |
Operating Cycle | Operating Cycle The duration of our contracts vary, but may 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 long-term contracts, including application of the percentage-of-completion (“POC”) method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims (including amounts arising from disputes with customers) and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, goodwill and other intangible assets; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts and credit losses; • liabilities related to self-insurance programs; • determination of the fair-value of our long-term debt; and • the impacts of volatile oil and gas prices and macroeconomic conditions 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. Oil and Gas Price Volatility and Macroeconomic Conditions – For over a decade, prices of oil and gas have experienced significant volatility, including depressed prices over extended periods, which negatively impacted our end markets and operating results. Beginning in 2020, the global coronavirus pandemic (“COVID-19”) added another layer of pressure and uncertainty on oil and gas prices (with oil prices reaching a twenty-year low and gas prices reaching a four-year low in 2020), which further negatively impacted certain of our end markets through the first quarter 2022. This volatility in oil and gas prices was compounded by Russia’s invasion of Ukraine in February 2022 (and the related European energy crisis), and the U.S. and other countries actions in response, as well as continued inflationary pressures, resulting in elevated energy prices (with oil prices reaching an eight-year high and gas prices reaching a fourteen-year high in 2022), which positively impacted certain of our end markets. While oil and gas prices declined in 2023, prices have somewhat stabilized, but the duration of such stability is uncertain and difficult to predict, particularly in light of geopolitical turmoil and uncertainty. In addition, global economic factors that are beyond our control, have and could continue to impact our operations, including, but are not limited to, labor constraints, supply chain disruptions, inflationary pressures, economic slowdowns and recessions, natural disasters, public health crises, and geopolitical conflicts. The ultimate business and financial impacts of oil and gas price volatility and macroeconomic conditions on our business and results of operations continues to be uncertain, but the impacts have included, or may continue to include, among other things, reduced bidding activity; suspension or termination of backlog; deterioration of customer financial condition; and unanticipated project costs and schedule delays due to supply chain disruptions, labor and material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, increased safety incidents, lack of performance by subcontractors and suppliers, and contract disputes. We continue to monitor the impacts of oil and gas price volatility and macroeconomic conditions on our operations, and our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or 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 in periods in which income is reported. See Note 8 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. We hold substantially all of our cash deposits with Hancock Whitney Bank (“Whitney Bank”). Restricted Cash – At December 31, 2023 and 2022, we had $ 1.5 million and $ 1.6 million, respectively, of restricted cash as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Whitney Bank. Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current , and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent . See Note 4 for further discussion of our letters of credit and associated security requirements. 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 December 31, 2023 and 2022, our short-term investments included U.S. Treasuries with original maturities of approximately four to six months. We intend to hold these investments until maturity and it is not more likely than not that we will be required to sell the investments prior to their maturity. The investments are stated at amortized costs, 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 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 and Credit Losses | Allowance for Doubtful Accounts and Credit Losses As further discussed under “ New Accounting Standards” below, we adopted the new accounting standard for measuring credit losses effective January 1, 2023. 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 provide an allowance for credit losses and routinely review individual contract receivable balances and other financial assets for collectability 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, company-specific credit ratings, historical company-specific uncollectable amounts and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts and credit losses. |
Stock-Based Compensation | Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. Depending on the terms of the award, we use the straight-line and graded vesting methods 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 Consolidated Statement of Operations (“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 Consolidated Statement of Cash Flows (“Statement of Cash Flows”). See Note 6 for further discussion of our stock-based and other compensation plans. |
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 and Amortization Expense | Depreciation and Amortization 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. Intangible assets are amortized on a straight-line basis over seven years and amortization expense is reflected within general and administrative expense on our Statement of Operations. See Note 3 for further discussion of our property, plant and equipment and intangible assets. |
Long-Lived Assets | Long-Lived Assets Goodwill – Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment or when other actions require an impairment assessment (such as a change in reporting units). Our Services Division represents our only reporting unit with goodwill. We perform our annual impairment assessment during the fourth quarter of each year based upon balances as of October 1. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. To determine the fair value of our reporting unit and test for impairment, we utilize an income approach (discounted cash flow method) as we believe this is the most direct approach to incorporate the specific economic attributes and risk profile of our reporting unit into our valuation model. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the period of impairment. See Note 3 for further discussion of our annual goodwill impairment assessment. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets) and finite-lived intangible 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 the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. We had no indicators of impairment during 2023. See Note 3 for discussion of our corporate office lease impairment during 2022. |
Leases | Leases We record a right-of-use asset and an offsetting lease liability on our Consolidated Balance Sheet (“Balance Sheet”) equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. See Note 3 for further discussion of our lease assets and liabilities. |
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. Our fair value assessments for determining the impairments of inventory, assets held for sale, goodwill and long-lived assets, are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. Our fair value assessments for long-term debt are recurring fair value measurements that fall within Level 2 of the fair value hierarchy, and are determined using various methods, including quoted prices for identical or similar securities in both active and inactive markets. See Note 3 for further discussion of our assets held for sale and Note 4 for further discussion of our long-term debt. |
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, time and materials (“T&M”) and cost-reimbursable, or a combination thereof. Our contracts primarily relate to the fabrication of steel structures and modules, and certain 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. Long-term Contracts Satisfied Over Time – Revenue for our long-term contracts is recognized using the POC method based on contract costs incurred to date compared to total estimated contract costs (an input method). Fixed-price contracts, or contracts with a more significant fixed-price component, generally provide us with greater control over project schedule and the timing of when work is performed and costs are incurred, and accordingly, when revenue is recognized. Unit-rate, T&M and cost-reimbursable contracts generally have more variability in the scope of work and provide our customers with greater influence over the timing of when we perform our work, and accordingly, such contracts often result in less predictability with respect to the timing of when revenue is recognized. 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 or loss for contracts accounted for using the POC method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and 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 2023 and 2022. Short-term Contracts and Contracts Satisfied at a Point In Time – Revenue for our short-term contracts (which includes revenue associated with our master services arrangements) and contracts that do not satisfy the criteria for revenue recognition over time is recognized when the work is performed or when control of the asset is transferred, the related costs are incurred and collection is reasonably assured. Variable Consideration – Revenue and gross profit or loss for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims (including amounts arising from disputes with customers), incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. Variable consideration can also include revenue associated with work performed on a unit-rate, T&M or cost-reimbursable basis that is recognized using the POC method. 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 our unapproved change orders, claims, incentives and liquidated damages. Additional Disclosures – Topic 606 also requires 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 December 31, 2023 and 2022, 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 and credit losses, gains or losses associated with the sale or disposition of property and equipment, and income or expense associated with certain nonrecurring items. For 2023 and 2022, other (income) expense, net included gains of $ 1.5 million and $ 7.3 million, respectively, related to the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida. See Note 2 for further discussion of the impacts of Hurricane Ida. |
Income Taxes | Income Taxes Income taxes have been provided for 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 state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are anticipated 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. See Note 5 for further discussion of our income taxes and DTAs. |
New Accounting Standards | New Accounting Standards Financial instruments – In the first quarter 2023, we adopted ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way we evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, we are required to use a new forward-looking “expected loss” model to evaluate impairment, which includes considering a broader range of information to estimate expected credit losses and may potentially result in earlier recognition of allowances for losses. The new accounting standard was adopted using the cumulative-effect transition method with any cumulative-effect adjustment being recorded to accumulated deficit on January 1, 2023. Upon adoption, we recorded a $ 0.6 million increase to beginning accumulated deficit, a $ 0.4 million decrease to contract receivables and retainage, net and contract assets, and a $ 0.2 million decrease to other noncurrent assets, on our Balance Sheet. Adoption of the new standard did not have a material effect on our results of operations or related disclosures. Business Combinations – In the first quarter 2023, we adopted ASU 2021-08, “Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which changes the way companies measure contract assets and contract liabilities from contracts with customers acquired in a business combination and creates an exception to the general recognition and measurement principle of ASC 805. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. Segment Reporting – In the fourth quarter 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 “ Segment Reporting - Improvements to Reportable Segment Disclosures ,” which requires additional information about a public company’s significant segment expenses and more timely and detailed segment information reporting throughout the fiscal period. The new standard will be effective for us in the fourth quarter 2024. 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 the retrospective transition method. We are assessing the effect that the new standard will have on our financial statement disclosures; however, adoption will not impact our Balance Sheet or Statement of Operations. Income Taxes – In the fourth quarter 2023, the FASB issued ASU 2023-09 “ Income Taxes - Improvements to Income Tax Disclosures ,” which requires enhanced disclosures related to rate reconciliation and income taxes paid information. The new standard will be effective for us in the fourth quarter 2025. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard may be applied using either the prospective or retrospective transition method. We are assessing the effect of the new standard on our financial statement disclosures; however, adoption will not impact our Balance Sheet or Statement of Operations. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 and duration, for 2023 and 2022 (in thousands): Year ended December 31, 2023 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 1,618 $ 51,015 $ ( 30,417 ) $ ( 33 ) $ 22,183 T&M and cost-reimbursable 87,914 38,031 — — 125,945 Other 4,016 — — ( 1,077 ) 2,939 Total $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Long-term $ 1,618 $ 82,535 $ ( 30,417 ) $ ( 33 ) $ 53,703 Short-term 91,930 6,511 — ( 1,077 ) 97,364 Total $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Year ended December 31, 2022 Services Fabrication Shipyard Eliminations Total Fixed-price and unit-rate $ 5,035 $ 36,127 $ 7,671 $ ( 7 ) $ 48,826 T&M and cost-reimbursable 79,426 9,526 — — 88,952 Other 2,561 2,646 — ( 665 ) 4,542 Total $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 Long-term $ 5,035 $ 43,037 $ 7,671 $ — $ 55,743 Short-term 81,987 5,262 — ( 672 ) 86,577 Total $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 |
Summary of Remaining Performance Obligations for Each of Operating Segments, Disaggregated by Contract Type | The following table summarizes remaining performance obligations for each of our operating segments, disaggregated by contract type, at December 31, 2023 (in thousands): December 31, 2023 Services Fabrication Shipyard Total Fixed-price and unit-rate $ 502 $ 11,446 $ 709 $ 12,657 T&M and cost-reimbursable — 293 — 293 Total (1) $ 502 $ 11,739 $ 709 $ 12,950 (1) We expect all of our performance obligations at December 31, 2023, to be recognized as revenue during 2024. C ertain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. |
Summary of Contract with Customer, Asset and Liability | Information with respect to contracts that were incomplete at December 31, 2023 and 2022, is as follows (in thousands): December 31, 2023 2022 Costs incurred to date $ 117,274 $ 112,693 Estimated losses incurred to date ( 12,735 ) ( 12,610 ) Sub-total 104,539 100,083 Billings to date ( 107,270 ) ( 103,440 ) Total $ ( 2,731 ) $ ( 3,357 ) The above amounts are included within the following captions on our Balance Sheet at December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Contract assets (1), (2) $ 2,739 $ 4,839 Contract liabilities (3), (4), (5) ( 5,470 ) ( 8,196 ) Total $ ( 2,731 ) $ ( 3,357 ) (1) The decrease in contract assets from December 31, 2022 to December 31, 2023, was primarily due to decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. (2) Contract assets at December 31, 2023 and 2022, excluded $ 6.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase from December 31, 2022 to December 31, 2023, was primarily due to a customer for our Services Division. (3) The decrease in contract liabilities from December 31, 2022 to December 31, 2023, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses for our Shipyard Division, offset partially by an increase in advance billings on various other projects for our Fabrication Division. (4) Revenue recognized during 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.6 million and $ 2.7 million, respectively. (5) Contract liabilities at December 31, 2023 and 2022, included accrued contract losses of $ 0.4 million and $ 1.6 million, respectively, primarily related to projects for our Shipyard Division. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. |
Schedules of Concentration of Risk, by Risk Factor | The following table summarizes revenue for customers that accounted for 10% or more of our consolidated revenue for 2023 and 2022 (in thousands): Years Ended December 31, 2023 2022 Customer A $ 70,497 $ 54,257 Customer B 26,956 * Customer C (1) 16,498 14,635 Customer D (1) 15,481 * (*) The customer revenue was less than 10 % of consolidated revenue for the year. (1) For 2023, these customers accounted for 10 % or more of our consolidated revenue due to lower revenue for the period associated with a charge of $ 32.5 million for our Shipyard Division, resulting from the resolution of our MPSV Litigation. See “Changes in Project Estimates” below and Note 7 for further discussion of the charge and resolution of our MPSV Litigation. |
Long-Lived Assets and Leased _2
Long-Lived Assets and Leased Facilities and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, 2023 and 2022 (in thousands): Estimated December 31, Useful Life 2023 2022 (in Years) Land — $ 2,103 $ 4,376 Buildings 10 to 25 19,232 25,584 Machinery and equipment 3 to 15 64,035 67,851 Furniture and fixtures 3 to 5 762 994 Transportation equipment 2 to 5 2,369 2,361 Improvements 15 17,277 23,246 Construction in progress — 2,060 2,881 Total property, plant and equipment 107,838 127,293 Accumulated depreciation ( 84,693 ) ( 96,139 ) Property, plant and equipment, net $ 23,145 $ 31,154 |
Schedule of Minimum Rental Payments | Future minimum payments under leases having initial terms of more than twelve months are as follows (in thousands): Minimum 2024 $ 884 2025 424 2026 76 2027 64 Total lease payments 1,448 Less: interest ( 99 ) Present value of lease payments (1), (2) $ 1,349 (1) During 2022, we entered into a sublease arrangement with a third-party for the remainder of our corporate office lease, which will partially recover our lease costs for the office for the duration of the lease. In connection therewith, we recorded an impairment charge of $ 0.5 million associated with the underlying right-of-use asset for the corporate office lease. The impairment is included in other (income) expense, net on our Statement of Operations and is reflected within our Corporate Division. (2) The discount rate used to determine the present value of our lease payments was based on the interest rate on our LC Facility adjusted for terms similar to that of our leased properties. At December 31, 2023, our weighted-average remaining lease term was approximately 1.9 years and the weighted-average discount rate used to derive our lease liability was 6.9 % . L |
Schedule of Other Intangible Assets | Other intangible assets were derived from the estimated fair value of existing underlying customer relationships associated with a previous acquisition and consisted of the following at December 31, 2023 and 2022 (in thousands): December 31, 2023 2022 Customer relationships $ 996 $ 996 Accumulated amortization ( 296 ) ( 154 ) Intangible assets, net $ 700 $ 842 |
Credit Facilities and Debt (Tab
Credit Facilities and Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Future Annual Principal Maturities Under Note Agreement | Future annual principal maturities under the Note Agreement are as follows (in thousands): Principal 2024 $ 1,075 2025 1,108 2026 1,141 2027 1,175 2028 1,210 Thereafter 14,291 Total maturities (1), (2) $ 20,000 (1) At December 31, 2023, the estimated present value of the Note Agreement amount was $ 12.7 million based on an estimated market rate of interest. (2) Due to the forbearance of interest until January 1, 2024, the effective rate on the Note Agreement is 2.9 % per annum. Accordingly, we accrued interest expense of $ 0.1 million during 2023 associated with the difference between the effective interest rate and stated interest rate on the Note Agreement. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Tax | A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit for 2023 and 2022, is as follows (in thousands): Years Ended December 31, 2023 2022 U.S. statutory rate 21.0 % 21.0 % Increase (decrease) resulting from: Permanent differences ( 1.0 )% ( 5.1 )% State income taxes ( 0.3 )% 5.7 % Discrete items Vesting of common stock ( 0.2 )% ( 1.0 )% Change in valuation allowance ( 19.4 )% ( 23.1 )% Return to provision and other 0.1 % 1.8 % Income tax (expense) benefit 0.2 % ( 0.7 )% |
Components of Income Tax Expense | Significant components of our income tax (expense) benefit for 2023 and 2022, were as follows (in thousands): Years Ended December 31, 2023 2022 Current Federal $ — $ — State — — Total current — — Deferred Federal 4,933 556 State ( 24 ) 166 Valuation allowance ( 4,868 ) ( 745 ) Total deferred 41 ( 23 ) Income tax (expense) benefit $ 41 $ ( 23 ) |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at December 31, 2023 and 2022, were as follows (in thousands): December 31, 2023 2022 Deferred tax assets Leases $ 144 $ 221 Employee benefits 1,499 1,465 Accrued losses on uncompleted contracts 77 2,076 Stock based compensation expense 373 351 Debt interest 516 - Federal net operating losses 28,413 22,444 State net operating losses 3,407 3,493 R&D and other tax credits 1,037 1,013 Other 242 481 Total deferred tax assets 35,708 31,544 Deferred tax liabilities Depreciation ( 564 ) ( 1,051 ) Prepaid insurance ( 280 ) ( 497 ) Total deferred tax liabilities ( 844 ) ( 1,548 ) Net deferred tax assets 34,864 29,996 Valuation allowance ( 34,927 ) ( 30,100 ) Net deferred taxes (1) $ ( 63 ) $ ( 104 ) (1) Amounts are included in other noncurrent liabilities on our Balance Sheet . |
Retirement and Long-term Ince_2
Retirement and Long-term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Based Payments And Retirement Disclosure [Abstract] | |
Summary of RSU Activity Excluding Cash Settled RSUs | A summary of activity for our RSU awards (excluding Cash-Settled RSUs) for 2023 and 2022 is as follows: 2023 2022 Number Weighted- Number Weighted- RSUs, beginning of period 838,267 $ 4.34 842,558 $ 4.47 Granted 550,980 3.47 463,600 4.24 Vested ( 443,106 ) 4.21 ( 403,559 ) 4.46 Forfeited — — ( 64,332 ) 4.49 RSUs, end of period 946,141 3.89 838,267 4.34 |
Income (Loss) Per Share and S_2
Income (Loss) Per Share and Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income (Loss) Per Share And Shareholders' Equity [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted loss per share for 2023 and 2022 (in thousands, except per share data): Years Ended December 31, 2023 2022 Net loss $ ( 24,402 ) $ ( 3,352 ) Weighted average shares 16,193 15,840 Basic and diluted loss per share $ ( 1.51 ) $ ( 0.21 ) |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information for our segments as of and for the two-year period ended December 31, 2023, is as follows (in thousands): Year Ended December 31, 2023 Services Fabrication Shipyard Corporate Total Revenue (eliminations) (1) $ 93,548 $ 89,046 $ ( 30,417 ) $ ( 1,110 ) $ 151,067 Gross profit (loss) (1) 13,783 10,178 ( 35,862 ) — ( 11,901 ) Operating income (loss) (1) 10,929 10,558 ( 39,374 ) ( 7,996 ) ( 25,883 ) Depreciation and amortization expense 1,926 3,249 — 291 5,466 Capital expenditures 544 2,233 — 99 2,876 Total assets (3) 32,191 42,368 1,553 52,316 128,428 Year Ended December 31, 2022 Services Fabrication Shipyard Corporate Total Revenue (eliminations) $ 87,022 $ 48,299 $ 7,671 $ ( 672 ) $ 142,320 Gross profit (loss) (2) 11,227 ( 274 ) ( 3,058 ) — 7,895 Operating income (loss) (2) 8,124 4,874 ( 7,554 ) ( 8,859 ) ( 3,415 ) Depreciation and amortization expense 1,496 3,343 — 259 5,098 Capital expenditures 2,326 633 — 127 3,086 Total assets (3) 28,016 40,531 16,330 49,989 134,866 (1) Revenue for 2023 includes a charge of $ 32.5 million resulting from the resolution of our MPSV Litigation for our Shipyard Division. Gross profit (loss) and operating income (loss) for 2023 includes a charge of $ 32.5 million resulting from the resolution of our MPSV Litigation and project charges of $ 2.7 million for our Shipyard Division. Operating income (loss) for 2023 also includes gains of $ 2.0 million from the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida for our Fabrication Division, charges of $ 0.5 million associated with damage previously caused by Hurricane Ida for our Shipyard Division, and the partial under-recovery of overhead costs for our Fabrication Division. See Note 2 for further discussion of our project and Hurricane Ida impacts and Note 7 for further discussion of the resolution of our MPSV Litigation. (2) Gross profit (loss) and operating income (loss) for 2022 includes project charges of $ 2.0 million for our Shipyard Division. Operating income (loss) for 2022 also includes gains of $ 7.5 million from the net impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida for our Fabrication Division, charges of $ 0.2 million associated with damage previously caused by Hurricane Ida for our Shipyard Division, an impairment charge of $ 0.5 million associated with the underlying right-of-use asset for our corporate office lease for our Corporate Division, and the partial under-recovery of overhead costs for our Fabrication Division. See Note 2 for further discussion of our project and Hurricane Ida impacts and Note 3 for further discussion of our corporate office lease asset impairment. (3) Cash and short-term investments are reported within our Corporate Division. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Jan. 01, 2023 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Number of corporate non-operating segments | Segment | 1 | ||
Increase to beginning accumulated deficit | $ (41,373,000) | $ (16,339,000) | |
Prepaid contract costs | 0 | 0 | |
Other income expense net | 2,296,000 | 6,904,000 | |
Gain on insurance recoveries | 571,000 | 1,200,000 | |
ASU 2016-13 | |||
Significant Accounting Policies [Line Items] | |||
Increase to beginning accumulated deficit | $ 600,000 | ||
Increase to beginning accumulated deficit | 600,000 | ||
Decrease to contract receivables and retainage, net and contract assets | (400,000) | ||
Decrease to other noncurrent assets | 200,000 | ||
Other (income) expense, net | |||
Significant Accounting Policies [Line Items] | |||
Gain on insurance recoveries | $ 1,500,000 | 7,300,000 | |
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 | ||
LC Facility | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 1,500,000 | $ 1,600,000 | |
LC Facility | Balance Sheet Date Classified as Current | |||
Significant Accounting Policies [Line Items] | |||
Maturity date, description | maturity dates of twelve months or less from the balance sheet date classified as current | ||
LC Facility | Balance Sheet Date Classified as Noncurrent | |||
Significant Accounting Policies [Line Items] | |||
Maturity date, description | maturity dates of longer than twelve months from the balance sheet date classified as noncurrent |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 151,067 | $ 142,320 |
Long-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 53,703 | 55,743 |
Short-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 97,364 | 86,577 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (1,110) | (672) |
Eliminations | Long-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (33) | |
Eliminations | Short-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (1,077) | (672) |
Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 93,548 | 87,022 |
Services | Operating Segments | Long-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,618 | 5,035 |
Services | Operating Segments | Short-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 91,930 | 81,987 |
Fabrication | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 89,046 | 48,299 |
Fabrication | Operating Segments | Long-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 82,535 | 43,037 |
Fabrication | Operating Segments | Short-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 6,511 | 5,262 |
Shipyard | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (30,417) | 7,671 |
Shipyard | Operating Segments | Long-Term Contract with Customer | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (30,417) | 7,671 |
Fixed-price and unit-rate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,183 | 48,826 |
Fixed-price and unit-rate | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (33) | (7) |
Fixed-price and unit-rate | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,618 | 5,035 |
Fixed-price and unit-rate | Fabrication | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 51,015 | 36,127 |
Fixed-price and unit-rate | Shipyard | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (30,417) | 7,671 |
Time And Materials And Cost Reimbursable | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 125,945 | 88,952 |
Time And Materials And Cost Reimbursable | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 87,914 | 79,426 |
Time And Materials And Cost Reimbursable | Fabrication | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 38,031 | 9,526 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,939 | 4,542 |
Other | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (1,077) | (665) |
Other | Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,016 | 2,561 |
Other | Fabrication | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,646 |
Revenue, Contract Assets and _4
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligations for Each of Operating Segments, Disaggregated by Contract Type (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 12,950 | [1] |
Fixed-price and unit-rate | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 12,657 | |
Time And Materials And Cost Reimbursable | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 293 | |
Operating Segments | Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 502 | [1] |
Operating Segments | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 11,739 | [1] |
Operating Segments | Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 709 | [1] |
Operating Segments | Fixed-price and unit-rate | Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 502 | |
Operating Segments | Fixed-price and unit-rate | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 11,446 | |
Operating Segments | Fixed-price and unit-rate | Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 709 | |
Operating Segments | Time And Materials And Cost Reimbursable | Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 293 | |
[1] We expect all of our performance obligations at December 31, 2023, to be recognized as revenue during 2024. C ertain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized. |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Costs incurred to date | $ 117,274 | $ 112,693 | |
Estimated losses incurred to date | (12,735) | (12,610) | |
Sub-total | 104,539 | 100,083 | |
Billings to date | (107,270) | (103,440) | |
Total | (2,731) | (3,357) | |
Contract assets | [1],[2] | 2,739 | 4,839 |
Contract liabilities | [3],[4],[5] | $ (5,470) | $ (8,196) |
[1] Contract assets at December 31, 2023 and 2022, excluded $ 6.0 million and $ 3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase from December 31, 2022 to December 31, 2023, was primarily due to a customer for our Services Division. The decrease in contract assets from December 31, 2022 to December 31, 2023, was primarily due to decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division. Contract liabilities at December 31, 2023 and 2022, included accrued contract losses of $ 0.4 million and $ 1.6 million, respectively, primarily related to projects for our Shipyard Division. See “ Changes in Project Estimates” below for further discussion of our accrued contract losses. Revenue recognized during 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $ 6.6 million and $ 2.7 million, respectively. The decrease in contract liabilities from December 31, 2022 to December 31, 2023, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses for our Shipyard Division, offset partially by an increase in advance billings on various other projects for our Fabrication Division. |
Revenue, Contract Assets and _6
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, asset, revenue recognized in excess of amounts billed, current | $ 6 | $ 3.6 |
Contract with customer, liability, revenue recognized | 6.6 | 2.7 |
Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, liability, accrued contract losses, current | $ 0.4 | $ 1.6 |
Revenue, Contract Assets and _7
Revenue, Contract Assets and Liabilities and Other Contract Matters - Schedules of Concentration of Risk, by Risk Factor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 151,067 | $ 142,320 | |
Sales Revenue, Net | Customer Concentration Risk | Customer A | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 70,497 | 54,257 | |
Sales Revenue, Net | Customer Concentration Risk | Customer B | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 26,956 | ||
Sales Revenue, Net | Customer Concentration Risk | Customer C | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 16,498 | $ 14,635 |
Sales Revenue, Net | Customer Concentration Risk | Customer D | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | $ 15,481 | |
[1] For 2023, these customers accounted for 10 % or more of our consolidated revenue due to lower revenue for the period associated with a charge of $ 32.5 million for our Shipyard Division, resulting from the resolution of our MPSV Litigation. See “Changes in Project Estimates” below and Note 7 for further discussion of the charge and resolution of our MPSV Litigation. |
Revenue, Contract Assets and _8
Revenue, Contract Assets and Liabilities and Other Contract Matters - Schedules of Concentration of Risk, by Risk Factor (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Litigation Settlement, Expense | $ 32.5 | ||
MPSV Litigation | |||
Disaggregation of Revenue [Line Items] | |||
Litigation Settlement, Expense | $ 32.5 | ||
Sales Revenue, Net | Customer Concentration Risk | Customer C | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 10% | ||
Sales Revenue, Net | Customer Concentration Risk | Customer D | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 10% | ||
Sales Revenue, Net | Customer Concentration Risk | Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk, percentage | 10% |
Revenue, Contract Assets and _9
Revenue, Contract Assets and Liabilities and Other Contract Matters - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) Vechicle | Dec. 31, 2022 USD ($) Vechicle | Jan. 01, 2023 USD ($) | |
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Recognized income associated with revisions to allowance for doubtful accounts | $ 400 | |||
Allowance for doubtful accounts and credit losses | 200 | |||
Increase to beginning accumulated deficit | $ (41,373) | $ (16,339) | ||
Litigation Settlement, Expense | $ 32,500 | |||
Hurricane Ida | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Impact of Hurricane Ida, description | During 2021, our operations were impacted by Hurricane Ida, which made landfall near Houma, Louisiana as a high-end Category 4 hurricane, causing debris and damage to our buildings and equipment at our Houma Facilities. Our insurance coverages in effect at the time of the storm generally specified coverage amounts for each of our buildings (including contents) and major equipment. | |||
Insurance payments received | $ 2,200 | 13,100 | ||
Gain on insurance recovery | 2,000 | 7,500 | ||
Gain on interruptions insurance recovery | 600 | 3,700 | ||
Insurance receivables | 2,000 | |||
Seventy-Vehicle Ferry | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Change in estimated margins | 1,300 | 900 | ||
Forty-Vehicle Ferry | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Change in estimated margins | $ 1,400 | $ 1,100 | ||
Number of vehicle ferry projects with rework and construction challenges. | Vechicle | 2 | |||
Number of vehicle ferry projects | Vechicle | 2 | |||
Remaining Forty-Vehicle Ferry | Hurricane Ida | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Total charges related to deductibles | $ 500 | $ 200 | ||
Shipyard | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Reduction of estimated contract price for liquidated damages, amount | 1,400 | 1,400 | ||
Change in estimated margins | 2,700 | $ 2,000 | ||
ASU 2016-13 | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Increase to beginning accumulated deficit | $ 600 | |||
MPSV Litigation | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Litigation Settlement, Expense | 32,500 | |||
MPSV Litigation | Shipyard | ||||
Long Term Contracts Or Programs Disclosure [Line Items] | ||||
Litigation Settlement, Expense | $ 32,500 |
Long-Lived Assets and Leased _3
Long-Lived Assets and Leased Facilities and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 107,838 | $ 127,293 |
Accumulated depreciation | (84,693) | (96,139) |
Property, plant and equipment, net | 23,145 | 31,154 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,103 | 4,376 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19,232 | 25,584 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 64,035 | 67,851 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 762 | 994 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,369 | 2,361 |
Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Property, plant and equipment, gross | $ 17,277 | 23,246 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,060 | $ 2,881 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 10 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 2 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Maximum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years |
Long-Lived Assets and Leased _4
Long-Lived Assets and Leased Facilities and Equipment - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense for continuing operations | $ 4,900,000 | $ 4,700,000 | |
Lease description | We lease certain office, warehouse and operating facilities under long-term lease arrangements that expire at various dates through October 2027, some of which include renewal options ranging from one to 20 years. | ||
Operating lease, right-of-use asset | $ 700,000 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | ||
Current lease liability | $ 800,000 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current liabilities | ||
Long-term lease liability | $ 500,000 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | ||
Lease agreement expenses | $ 1,700,000 | 1,600,000 | |
Operating lease payments | 2,000,000 | 2,000,000 | |
Carrying value of asset held for sale | 5,640,000 | ||
Goodwill impairment | $ 0 | ||
Other Intangible Assets | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets, useful life | 7 years | ||
Amortization expense for intangible assets | $ 100,000 | 100,000 | |
Other Income Expense | |||
Property, Plant and Equipment [Line Items] | |||
Sublease income | $ 600,000 | 400,000 | |
Fabrication Division | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from the sale of assets net of transaction and other costs | 1,900,000 | ||
Gain or loss recognized on sale of purchase option | $ 0 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal term | 1 year | ||
Minimum | Other Intangible Assets | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets amortization expense, 2024 | $ 100,000 | ||
Intangible assets amortization expense, 2025 | 100,000 | ||
Intangible assets amortization expense, 2026 | 100,000 | ||
Intangible assets amortization expense, 2027 | 100,000 | ||
Intangible assets amortization expense, 2028 | $ 100,000 | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal term | 20 years | ||
Maximum | Other Intangible Assets | |||
Property, Plant and Equipment [Line Items] | |||
Intangible assets amortization expense, 2024 | $ 200,000 | ||
Intangible assets amortization expense, 2025 | 200,000 | ||
Intangible assets amortization expense, 2026 | 200,000 | ||
Intangible assets amortization expense, 2027 | 200,000 | ||
Intangible assets amortization expense, 2028 | 200,000 | ||
Houma Facilities | Fabrication Division | |||
Property, Plant and Equipment [Line Items] | |||
Carrying value of asset held for sale | $ 5,600,000 | ||
Houma Facilities | Fabrication Division | Subsequent Event | |||
Property, Plant and Equipment [Line Items] | |||
Proceeds from the sale of assets held for sale net of transaction and other costs | $ 8,500,000 |
Long-Lived Assets and Leased _5
Long-Lived Assets and Leased Facilities and Equipment - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Property, Plant and Equipment [Abstract] | |
2024 | $ 884 |
2025 | 424 |
2026 | 76 |
2027 | 64 |
Total lease payments | 1,448 |
Less: interest | (99) |
Present value of lease payments | $ 1,349 |
Long-Lived Assets and Leased _6
Long-Lived Assets and Leased Facilities and Equipment - Schedule of Minimum Future Rental Payments (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Asset impairment charges | $ 484 | |
Operating lease, term of contract | 1 year 10 months 24 days | |
Operating lease, weighted-average discount rate (percentage) | 6.90% |
Long-Lived Assets and Leased _7
Long-Lived Assets and Leased Facilities and Equipment - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | $ 996 | $ 996 |
Accumulated amortization | (296) | (154) |
Intangible assets, net | $ 700 | $ 842 |
Credit Facilities and Debt - Ad
Credit Facilities and Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Nov. 06, 2023 | May 05, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Line Of Credit Facility [Line Items] | ||||||
Maturity date | Jun. 30, 2024 | |||||
Surety bonds | $ 52,500,000 | |||||
Debt instrument, interest rate terms | principal and interest payable in 15 equal annual installments | |||||
Percentage of provision required from proceeds received in excess of sale of real estate | 50% | |||||
Proceeds from sale of real estate required to make provision | $ 8,000,000 | |||||
Short-term Premium Finance Arrangement | ||||||
Line Of Credit Facility [Line Items] | ||||||
Stated interest rate (percentage) | 4.30% | |||||
Short-term premium finance | $ 2,400,000 | |||||
short-term premium finance , Number of installment | payable in ten equal monthly installments through March 2023 | |||||
Note Agreement | ||||||
Line Of Credit Facility [Line Items] | ||||||
Stated interest rate (percentage) | 2.90% | |||||
Short-term premium finance | $ 12,700,000 | |||||
General Liability Arrangement | ||||||
Line Of Credit Facility [Line Items] | ||||||
Stated interest rate (percentage) | 6.60% | |||||
Short-term premium finance | $ 500,000 | |||||
short-term premium finance , Number of installment | payable in eight equal monthly installments through August 2023 | |||||
Insurance Finance and General Liability Arrangements | ||||||
Line Of Credit Facility [Line Items] | ||||||
Principal payments | $ 1,300,000 | $ 1,700,000 | ||||
Promissory Note | Note Agreement | ||||||
Line Of Credit Facility [Line Items] | ||||||
Stated interest rate (percentage) | 3% | |||||
Debt instrument, issued, principal | $ 20,000,000 | |||||
Debt instrument, periodic payment | $ 1,700,000 | |||||
Debt instrument, frequency of periodic payment | 15 | |||||
Debt instrument, maturity date, start | Dec. 31, 2024 | |||||
Debt instrument, maturity date, end | Dec. 31, 2038 | |||||
Ferry Projects | ||||||
Line Of Credit Facility [Line Items] | ||||||
Surety bonds subject to dispute | 45,600,000 | |||||
Fabrication | ||||||
Line Of Credit Facility [Line Items] | ||||||
Surety bonds subject to dispute | $ 6,900,000 | |||||
Maximum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Letter of credit facility | $ 20,000,000 | |||||
Minimum | ||||||
Line Of Credit Facility [Line Items] | ||||||
Letter of credit facility | $ 10,000,000 | |||||
LC Facility | ||||||
Line Of Credit Facility [Line Items] | ||||||
Fees on undrawn borrowings (percentage) | 0.40% | |||||
Total outstanding letters of credit | $ 1,500,000 | |||||
Letter of Credit | ||||||
Line Of Credit Facility [Line Items] | ||||||
Stated interest rate (percentage) | 1.50% |
Credit Facilities and Debt - Sc
Credit Facilities and Debt - Schedule of Future Annual Principal Maturities Under Note Agreement (Details) - Note Agreement $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 1,075 |
2025 | 1,108 |
2026 | 1,141 |
2027 | 1,175 |
2028 | 1,210 |
Thereafter | 14,291 |
Total maturities | $ 20,000 |
Credit Facilities and Debt - _2
Credit Facilities and Debt - Schedule of Future Annual Principal Maturities Under Note Agreement (Parenthetical) (Details) - Note Agreement $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Estimated present value | $ 12.7 |
Effective rate on Note | 2.90% |
Accrued interest expense | $ 0.1 |
Shipyard Transaction and Discon
Shipyard Transaction and Discontinued Operations - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Vechicle | Dec. 31, 2023 USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Liabilities | $ 32,242 | $ 49,457 |
Asset impairments | $ 484 | |
Forty-Vehicle Ferry | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Number of vehicle ferry projects | Vechicle | 2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. statutory rate | 21% | 21% |
Increase (decrease) resulting from: | ||
Permanent differences | (1.00%) | (5.10%) |
State income taxes | (0.30%) | 5.70% |
Vesting of common stock | (0.20%) | (1.00%) |
Change in valuation allowance | (19.40%) | (23.10%) |
Return to provision and other | 0.10% | 1.80% |
Income tax (expense) benefit | 0.20% | (0.70%) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total current | 0 | 0 |
Deferred | ||
Federal | 4,933 | 556 |
State | (24) | 166 |
Valuation allowance | (4,868) | (745) |
Total deferred | 41 | (23) |
Income tax (expense) benefit | $ 41 | $ (23) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Leases | $ 144 | $ 221 |
Employee benefits | 1,499 | 1,465 |
Accrued losses on uncompleted contracts | 77 | 2,076 |
Stock based compensation expense | 373 | 351 |
Debt interest | 516 | |
Federal net operating losses | 28,413 | 22,444 |
State net operating losses | 3,407 | 3,493 |
R&D and other tax credits | 1,037 | 1,013 |
Other | 242 | 481 |
Total deferred tax assets | 35,708 | 31,544 |
Deferred tax liabilities | ||
Depreciation | (564) | (1,051) |
Prepaid insurance | (280) | (497) |
Total deferred tax liabilities | (844) | (1,548) |
Net deferred tax assets | 34,864 | 29,996 |
Valuation allowance | (34,927) | (30,100) |
Net deferred taxes | $ (63) | $ (104) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | ||
Total deferred tax assets | $ 35,708 | $ 31,544 |
Federal net operating losses | 28,413 | 22,444 |
Valuation allowance | 34,927 | $ 30,100 |
Domestic Tax Authority | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | 135,300 | |
Operating loss carryforwards subject to expire | $ 42,300 | |
Operating loss carryforwards, limitations on use, description | remaining U.S. federal NOL carryforwards eligible to be carried forward indefinitely, subject to an 80% limitation on taxable income in each year. | |
Operating loss carryforwards limitation rate on taxable income | 80% | |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | $ 45,200 |
Retirement and Long-Term Ince_3
Retirement and Long-Term Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer discretionary contribution | $ 700 | $ 700 | |
Available shares for future issuance (in shares) | 1,146,746 | ||
Share-based compensation cost charged against income | $ 1,991 | $ 2,302 | |
Recognition of compensation cost, weighted average period | 1 year 6 months | ||
Outstanding stock option awards | 0 | ||
Cash based performance award granted | 0 | 0 | |
Stock-based compensation expense | $ 1,991 | $ 2,302 | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available for grant for each employee (in shares) | 300,000 | ||
Time-based RSU Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU awards vesting period | 3 years | ||
Time-based RSU Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU awards vesting period | 2 years | ||
Performance-based RSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU awards vesting period | 3 years | ||
Performance-based RSU Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock ultimately issued as percent of target award based on achievement of performance targets | 200% | ||
Performance-based RSU Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock ultimately issued as percent of target award based on achievement of performance targets | 0% | ||
Cash Settled RSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost charged against income | 100 | ||
Cash-settled RSU paid | $ 100 | 100 | |
Stock-based compensation expense | 100 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost charged against income | $ 2,000 | $ 2,300 | |
Weighted average grant date fair value | $ 3.47 | $ 4.24 | |
Total unrecognized compensation costs | $ 1,900 | ||
Value of awards granted | 1,900 | $ 2,000 | |
Total fair value of shares vested | 1,600 | 1,600 | |
Stock-based compensation expense | $ 2,000 | $ 2,300 |
Retirement and Long-Term Ince_4
Retirement and Long-Term Incentive Plans - Summary of RSU Activity Excluding Cash Settled RSUs (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Fiscal Year Focus | 2023 | |
RSUs | ||
Number of Shares | ||
RSUs shares at the beginning of period (in shares) | 838,267 | 842,558 |
Granted (in shares) | 550,980 | 463,600 |
Vested (in shares) | (443,106) | (403,559) |
Forfeited (in shares) | (64,332) | |
RSUs shares at the end of period (in shares) | 946,141 | 838,267 |
Weighted- Average Grant-Date Fair Value Per Share | ||
RSUs shares at the beginning of period (USD per share) | $ 4.34 | $ 4.47 |
Weighted average grant date fair value | 3.47 | 4.24 |
Vested (USD per share) | 4.21 | 4.46 |
Forfeited (USD per share) | 4.49 | |
RSUs shares at the end of period (USD per share) | $ 3.89 | $ 4.34 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 19, 2018 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2018 Vessel | |
Loss Contingencies [Line Items] | |||
Number of multi-purpose service vessels | Vessel | 2 | ||
Litigation charge | $ 32.5 | ||
Non-cash litigation charge associated with write-off of net contract asset | 12.5 | ||
Litigation charge associated with recording liability | $ 20 | ||
Surety Bond | |||
Loss Contingencies [Line Items] | |||
Claims under performance bonds issued | $ 50 |
Income (Loss) Per Share and S_3
Income (Loss) Per Share and Shareholders' Equity - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (24,402) | $ (3,352) |
Basic loss per common share | $ (1.51) | $ (0.21) |
Diluted loss per common share | $ (1.51) | $ (0.21) |
Weighted average shares basic | 16,193 | 15,840 |
Weighted average shares diluted | 16,193 | 15,840 |
Income (Loss) Per Share and S_4
Income (Loss) Per Share and Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 01, 2023 | Dec. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||
Repurchases of common stock | $ 128,000 | |
Share Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Amount of shares authorized to be repurchased | $ 4,900,000 | |
Stock repurchase program, expiration date | Dec. 15, 2024 | |
Repurchases of common stock (in shares) | 29,578 | |
Repurchases of common stock | $ 100,000 | |
Share Repurchase Program | Maximum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Amount of shares authorized to be repurchased | $ 5,000,000 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Segment | 3 | |
Number of corporate non-operating segments | Segment | 1 | |
Net operating liabilities | $ 800 | |
Net operating liabilities | $ 1,349 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | |
Shipyard Division | ||
Segment Reporting Information [Line Items] | ||
Net operating liabilities | $ 1,400 | $ 2,700 |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 151,067 | $ 142,320 |
Gross profit (loss) | (11,901) | 7,895 |
Operating income (loss) | (25,883) | (3,415) |
Depreciation and amortization expense | 5,466 | 5,098 |
Total assets | 128,428 | 134,866 |
Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 93,548 | 87,022 |
Operating Segments | Fabrication | ||
Segment Reporting Information [Line Items] | ||
Revenue | 89,046 | 48,299 |
Operating Segments | Shipyard | ||
Segment Reporting Information [Line Items] | ||
Revenue | (30,417) | 7,671 |
Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Revenue | 151,067 | 142,320 |
Gross profit (loss) | (11,901) | 7,895 |
Operating income (loss) | (25,883) | (3,415) |
Depreciation and amortization expense | 5,466 | 5,098 |
Capital expenditures | 2,876 | 3,086 |
Total assets | 128,428 | 134,866 |
Continuing Operations | Operating Segments | Services | ||
Segment Reporting Information [Line Items] | ||
Revenue | 93,548 | 87,022 |
Gross profit (loss) | 13,783 | 11,227 |
Operating income (loss) | 10,929 | 8,124 |
Depreciation and amortization expense | 1,926 | 1,496 |
Capital expenditures | 544 | 2,326 |
Total assets | 32,191 | 28,016 |
Continuing Operations | Operating Segments | Fabrication | ||
Segment Reporting Information [Line Items] | ||
Revenue | 89,046 | 48,299 |
Gross profit (loss) | 10,178 | (274) |
Operating income (loss) | 10,558 | 4,874 |
Depreciation and amortization expense | 3,249 | 3,343 |
Capital expenditures | 2,233 | 633 |
Total assets | 42,368 | 40,531 |
Continuing Operations | Operating Segments | Shipyard | ||
Segment Reporting Information [Line Items] | ||
Revenue | 30,417 | 7,671 |
Gross profit (loss) | (35,862) | (3,058) |
Operating income (loss) | (39,374) | (7,554) |
Total assets | 1,553 | 16,330 |
Continuing Operations | Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenue | (1,110) | (672) |
Operating income (loss) | (7,996) | (8,859) |
Depreciation and amortization expense | 291 | 259 |
Capital expenditures | 99 | 127 |
Total assets | $ 52,316 | $ 49,989 |
Operating Segments - Summariz_2
Operating Segments - Summarized Segment Financial Information (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Litigation charge | $ 32,500 | ||
Asset impairments | $ 484 | ||
MPSV Litigation | |||
Segment Reporting Information [Line Items] | |||
Litigation charge | $ 32,500 | ||
Increase in operating income (loss) due to project charges | (32,500) | ||
Corporate | |||
Segment Reporting Information [Line Items] | |||
Asset impairments | 500 | ||
Fabrication | |||
Segment Reporting Information [Line Items] | |||
Gain on insurance recoveries | 2,000 | 7,500 | |
Shipyard | |||
Segment Reporting Information [Line Items] | |||
Increase in operating income (loss) due to project charges | 2,700 | 2,000 | |
Charges associated with damage caused by Hurricane Laura | 500 | $ 200 | |
Shipyard | MPSV Litigation | |||
Segment Reporting Information [Line Items] | |||
Litigation charge | $ 32,500 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | 1 Months Ended |
Feb. 29, 2024 USD ($) | |
Subsequent Event | Fabrication | Houma Facilities | |
Subsequent Event [Line Items] | |
Proceeds from the sale of assets held for sale net of transaction and other costs | $ 8.5 |