Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GIFI | ||
Entity Registrant Name | GULF ISLAND FABRICATION INC | ||
Entity Central Index Key | 1,031,623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 15,043,068 | ||
Entity Public Float | $ 166,411 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,983 | $ 51,167 |
Contracts receivable, net | 28,466 | 20,169 |
Contracts in progress | 28,373 | 26,829 |
Prepaid expenses and other | 3,833 | 3,222 |
Inventory | 4,933 | 11,973 |
Assets held for sale | 104,576 | 0 |
Total current assets | 179,164 | 113,360 |
Property, plant and equipment, net | 88,899 | 206,222 |
Other assets | 2,777 | 2,826 |
Total assets | 270,840 | 322,408 |
Current liabilities: | ||
Accounts payable | 18,375 | 9,021 |
Advance billings on contracts | 5,136 | 3,977 |
Deferred revenue, current | 4,676 | 11,881 |
Accrued contract losses | 7,618 | 387 |
Accrued expenses and other liabilities | 12,741 | 10,032 |
Income taxes payable | 119 | 50 |
Total current liabilities | 48,665 | 35,348 |
Net deferred tax liabilities | 0 | 23,234 |
Deferred revenue, noncurrent | 769 | 489 |
Other liabilities | 1,913 | 305 |
Total liabilities | 51,347 | 59,376 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, no par value, 20,000,000 shares authorized, 14,910,498 issued and outstanding at December 31, 2017 and 14,695,020 at December 31, 2016, respectively | 10,823 | 10,641 |
Additional paid-in capital | 100,456 | 98,813 |
Retained earnings | 108,214 | 153,578 |
Total shareholders’ equity | 219,493 | 263,032 |
Total liabilities and shareholders’ equity | $ 270,840 | $ 322,408 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 14,910,498 | 14,695,020 |
Common stock, shares outstanding (in shares) | 14,910,498 | 14,695,020 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 171,022 | $ 286,326 | $ 306,120 |
Cost of revenue: | |||
Contract costs | 213,947 | 261,473 | 321,276 |
Gross profit (loss) | (42,925) | 24,853 | (15,156) |
General and administrative expenses | 17,800 | 19,670 | 16,256 |
Asset impairment | 7,672 | 0 | 7,202 |
Operating income (loss) | (68,397) | 5,183 | (38,614) |
Other income (expense): | |||
Interest expense | (349) | (332) | (165) |
Interest income | 0 | 24 | 26 |
Other income (expense), net | (213) | 681 | 20 |
Total Other income (expense) | (562) | 373 | (119) |
Net income (loss) before income taxes | (68,959) | 5,556 | (38,733) |
Income tax expense (benefit) | (24,193) | 2,041 | (13,369) |
Net income (loss) | $ (44,766) | $ 3,515 | $ (25,364) |
Per share data: | |||
Basic and fully diluted earnings (loss) per share—common shareholders (in dollars per share) | $ (3.02) | $ 0.24 | $ (1.75) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2014 | 14,539,104 | |||
Beginning Balance at Dec. 31, 2014 | $ 285,798 | $ 10,090 | $ 93,828 | $ 181,880 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income (loss) | (25,364) | (25,364) | ||
Vesting of restricted stock (in shares) | 41,112 | |||
Vesting of restricted stock | (79) | $ (9) | (70) | |
Compensation expense restricted stock | 2,707 | $ 271 | 2,436 | |
Dividends on common stock | (5,865) | (5,865) | ||
Ending Balance (in shares) at Dec. 31, 2015 | 14,580,216 | |||
Ending Balance at Dec. 31, 2015 | 257,197 | $ 10,352 | 96,194 | 150,651 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income (loss) | 3,515 | 3,515 | ||
Vesting of restricted stock (in shares) | 114,804 | |||
Vesting of restricted stock | (217) | $ (23) | (194) | |
Compensation expense restricted stock | 3,125 | $ 312 | 2,813 | |
Dividends on common stock | $ (588) | (588) | ||
Ending Balance (in shares) at Dec. 31, 2016 | 14,695,020 | 14,695,020 | ||
Ending Balance at Dec. 31, 2016 | $ 263,032 | $ 10,641 | 98,813 | 153,578 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income (loss) | (44,766) | (44,766) | ||
Vesting of restricted stock (in shares) | 215,478 | |||
Vesting of restricted stock | (916) | $ (92) | (824) | |
Compensation expense restricted stock | 2,741 | $ 274 | 2,467 | |
Dividends on common stock | $ (598) | (598) | ||
Ending Balance (in shares) at Dec. 31, 2017 | 14,910,498 | 14,910,498 | ||
Ending Balance at Dec. 31, 2017 | $ 219,493 | $ 10,823 | $ 100,456 | $ 108,214 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income (loss) | $ (44,766,000) | $ 3,515,000 | $ (25,364,000) |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||
Depreciation | 12,909,000 | 25,448,000 | 26,204,000 |
Amortization of deferred revenue | (2,008,000) | (5,223,000) | 0 |
Asset impairment | 7,672,000 | 0 | 7,202,000 |
Provision for bad debts | 21,000 | 493,000 | 448,000 |
Loss (gain) on the sale of assets | 224,000 | (757,000) | (10,000) |
Deferred income taxes | (23,234,000) | 1,409,000 | (14,061,000) |
Stock-based compensation expense | 2,741,000 | 3,125,000 | 2,707,000 |
Changes in operating assets and liabilities: | |||
Contracts receivable, net | (8,319,000) | 28,067,000 | 31,740,000 |
Contracts in progress | (1,544,000) | (13,984,000) | 14,167,000 |
Advance billings on contracts | 1,159,000 | (3,197,000) | (11,685,000) |
Accounts payable | 9,354,000 | (12,757,000) | (26,668,000) |
Prepaid expenses and other assets | 388,000 | 230,000 | 1,092,000 |
Inventory | 356,000 | 6,501,000 | 931,000 |
Accrued contract losses | 7,231,000 | (9,108,000) | 8,678,000 |
Deferred revenue | (4,917,000) | (11,656,000) | 0 |
Deferred compensation | 1,608,000 | 305,000 | 0 |
Accrued expenses | 2,709,000 | 2,220,000 | (5,302,000) |
Current income taxes | (969,000) | (63,000) | 615,000 |
Net cash provided by (used in) operating activities | (39,385,000) | 14,568,000 | 10,694,000 |
Cash flows from investing activities: | |||
Cash received in acquisition | 0 | 3,035,000 | 0 |
Capital expenditures, net | (4,834,000) | (6,795,000) | (6,018,000) |
Proceeds from the sale of equipment | 2,155,000 | 6,458,000 | 11,000 |
Proceeds from insurance recoveries | 1,544,000 | 0 | 0 |
Net cash provided by (used in) investing activities | (1,135,000) | 2,698,000 | (6,007,000) |
Cash flows from financing activities: | |||
Borrowings against credit agreement | 2,000,000 | 0 | 0 |
Payments on credit agreement | (2,000,000) | 0 | 0 |
Payment of financing costs | (150,000) | (122,000) | 0 |
Tax payments made on behalf of employees from withheld, vested shares of common stock | (916,000) | (217,000) | (79,000) |
Payments of dividends on common stock | (598,000) | (588,000) | (5,865,000) |
Net cash used in financing activities | (1,664,000) | (927,000) | (5,944,000) |
Net increase (decrease) in cash and cash equivalents | (42,184,000) | 16,339,000 | (1,257,000) |
Cash and cash equivalents at beginning of period | 51,167,000 | 34,828,000 | 36,085,000 |
Cash and cash equivalents at end of period | 8,983,000 | 51,167,000 | 34,828,000 |
Supplemental cash flow information: | |||
Interest paid | 349,000 | 332,000 | 165,000 |
Income taxes paid (refunds received), net | 189,000 | 377,000 | (152,000) |
Schedule of noncash financing activities | |||
Reclassification of property, plant and equipment to assets held for sale | 109,488,000 | 0 | 4,805,000 |
Reclassification of assets held for sale to inventory | $ 0 | $ 0 | $ 3,727,000 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Gulf Island Fabrication, Inc. ("Gulf Island"), and together with its subsidiaries ("the Company," "we" or "our"), is a leading fabricator of complex steel structures and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation and alternative energy projects and shipping and marine transportation operations. We also provide related installation, hookup, commissioning, repair and maintenance services with specialized crews and integrated project management capabilities. We are currently fabricating complex modules for the construction of a new petrochemical plant, completing newbuild construction of one technologically-advanced offshore support and two multi-purpose service vessels. During 2015, we fabricated wind turbine pedestals for the first offshore wind power project in the United States. We have also constructed one of the largest liftboats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM and the first SPAR fabricated in the United States. Our customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power and marine operators. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana, and formerly in Aransas Pass and Ingleside, Texas, each of which are marketed for sale. The consolidated financial statements include the accounts of Gulf Island and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Business Outlook Beginning in late 2014, a severe decline in oil and natural gas prices led to a significant decline in oil and gas industry drilling activities and capital spending from our traditional customer base. In 2015 and through 2017, the Company implemented a number of initiatives to preserve cash, lower costs, and attract new customers. These initiatives include: reducing our workforce in certain divisions, developing a plan to sell certain underutilized assets, and diversifying our service offerings and fabrication capabilities. The Company continues to assess liquidity needs and manage cash flows, given the challenging industry conditions our traditional customer base continues to experience. If industry conditions do not improve, our plan to sell the assets held for sale does not occur or is delayed, or we are unable to increase our backlog, the Company would expect to take additional measures to preserve its cash flows. As a result of the steps the Company has taken to preserve its liquidity, the Company currently believes that cash on hand and funds available under the Company’s credit agreement will enable the Company to meet its working capital, capital expenditures, any future debt service and other funding requirements for at least one year from the date this Form 10-K is issued. The Company’s view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2018 and early 2019, which is impacted by various assumptions regarding our existing backlog and a reasonable amount of forecasted non-contractual backlog. Generally, we expect demand for our Services Division to increase in 2018 beyond the contractual backlog amount in place as of December 31, 2017. We have included an insignificant amount of backlog in our financial forecast for our newly formed EPC Division related to continuing support of the SeaOne Project. Although we have observed certain factors in 2017 that support improving industry conditions and have taken measures to diversify our business offerings, our financial forecasts in recent periods have proven less reliable given cost overruns incurred on projects and volatile market conditions in our current operating environment. In addition, the Company’s continued access to funds available through its credit agreement is dependent upon compliance with certain financial covenants. As a result, there is no guarantee that our financial forecast, which projects sufficient cash, including funds available through our credit agreement, will be available to meet planned operating expenses and other cash needs and will be accurate. Operating Cycle The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded 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 paid or received within the next twelve months include contract retainage, contracts in progress, deferred revenue and advanced billings on contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits, the application of the percentage-of-completion method of accounting, income taxes and the determination of the allowance of doubtful accounts. Actual results could differ from those estimates. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Allowance for Doubtful Accounts We routinely review individual contract receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. See Note 3 - "Contracts Receivable and Retainage" for a detail of our allowance for doubtful accounts. Stock-Based Compensation Awards under the Company’s stock-based compensation plans are calculated using a fair value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. Inventory Inventory consists of materials and production supplies and is stated at the lower of cost or net realizable value determined on the first-in, first-out basis. Assets Held for Sale Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. See Note 4 - “Assets Held For Sale” for additional information regarding our assets held for sale. Workers Compensation Liability The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. Our workers compensation liability balance was $4.1 million as of December 31, 2017 , and $3.4 million as of December 31, 2016 , respectively. Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from three to 25 years . Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Long-Lived Assets We evaluate impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might not be recoverable. If events and circumstance indicate that the assets or asset groups might not be recoverable, the expected future undiscounted cash flows from the assets or asset groups are estimated and compared with the carrying amount of the assets or asset groups. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets or asset groups, an impairment loss is recorded. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Fair Value Measurements The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. We base our fair value determinations by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1-inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2-inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3-inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. See Note 6 -“Fair Value Measurements” for additional information regarding fair value measurements. Revenue Recognition We use the percentage-of-completion accounting method for fabrication contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to our estimate of total anticipated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. To the extent work from changes in scope have been approved for scope, but not as to price, revenue is recognized up to cost incurred. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. For the years ended December 31, 2017 , 2016 , and 2015 , there was no significant revenue related to unapproved change orders or claims. Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. See Note 2 - “Contract Revenue and Percentage-of-Completion Method” for additional information regarding our percentage-of-completion accounting and revenue recognition. Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the basis differences reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. In December 2017, the Tax Cuts and Jobs Act was enacted which significantly changes U.S. tax law. In accordance with Accounting Standards Codification ("ASC") 740, Income Taxes, the Company is required to account for the new requirements in the period that includes the date of enactment. The Tax Cuts and Jobs Act reduces the overall corporate income tax rate to 21%, creates a new territorial tax system, broadens the tax base, and allows for the immediate expensing of qualified property. Due to the complexities presented by the Tax Cuts and Jobs Act, the SEC issued Staff Accounting Bulletin ("SAB") 118 to provide guidance to companies who are not able to complete their accounting in the period of enactment prior to the reporting deadlines. Under the guidance in SAB 118, companies that have not completed their accounting for the Tax Cuts and Jobs Act but can determine a reasonable estimate of those effects should include a provisional amount based on their reasonable estimate in their financial statements. As of December 31, 2017, we have not completed our accounting for the tax effects of the Tax Cuts and Jobs Act. For additional discussion of the effects on the Tax Cuts and Jobs Act including the impact of current tax reform in our consolidated financial statements, see Note 9 - "Income Taxes." A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. During 2017, we recorded a valuation allowance against our deferred tax assets of $0.4 million . See Note 9 - "Income Taxes." Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2012 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. Reclassifications We made the following reclassifications to our financial statements for the years ended December 31, 2016 and 2015 , to conform to current period presentation: • We reclassified $217,000 and $79,000 from operating activities to financing activities in the Company’s consolidated statement of cash flows for the years ended December 31, 2016 and 2015 , respectively related to tax payments made by the Company to satisfy employee income tax withholding obligations arising from vesting shares as a result of the adoption of Accounting Standards Update 2016-09 as discussed in "New Accounting Standards" below. This reclassification had no impact to our financial position or results of operations. • We reclassified corporate administrative costs and overhead expenses previously allocated to the results of operations of our three operating divisions to our Corporate Division for the years ended December 31, 2016 and 2015 , to conform to current period presentation as discussed in Note 13. These reclassifications had no impact to our consolidated financial statements. New Accounting Standards On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification ("ASC") Topic 605, “Revenue Recognition.” ASU No. 2014-09 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. ASU 2014-09 will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted. We use the percentage-of-completion accounting method to account for our fixed-price or unit rate contracts, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. We have concluded that this method will still be allowed under this ASU. We intend to use the modified retrospective model in adopting this standard, which will require a cumulative catch up adjustment, if any, on January 1, 2018. See Note 2 -“Contract Revenue and Percentage-of-Completion Method” for additional information regarding our expected impact of this ASU upon our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheets but recognize expenses in a manner similar to current guidance. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018. The guidance is required to be applied using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures; however, we expect to record our lease obligations on our balance sheet. See Note 5 for disclosure of our minimum lease payments. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. We adopted the requirements of ASU 2016-09 effective January 1, 2017. The provisions of ASU No. 2016-09 that are applicable to the Company and affect the Company’s consolidated financial statements include the following: • This ASU requires the recognition of the excess tax benefit or tax deficiency resulting from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes created when common stock vests as an income tax benefit or expense in the Company’s statement of operations. Under previous GAAP, this difference was required to be recognized in additional paid-in capital. The expense or benefit required to be recognized is calculated separately as a discrete item each reporting period and not as part of the Company’s projected annual effective tax rate. During the year ended December 31, 2017 , we recorded tax expense of $253,000 (approximately $0.02 loss per share) related to the adoption of this ASU. We have adopted these provisions on a prospective basis and our prior period presentation has not changed. Future effects to the Company’s income tax expense (benefit) as a result of the adoption of this ASU will depend on the timing, number of shares and the closing price per share of the Company’s common stock on the dates of vesting. • This ASU also clarifies that cash paid by the Company to taxing authorities in order to satisfy employee income tax withholding obligations from vesting shares should be classified as a financing activity in the Company’s statement of cash flows. We have reported payments of $916,000 within financing activities within our consolidated statement of cash flows for the year ended December 31, 2017 , as a result of adoption of this ASU. We have adopted these provisions retrospectively and reclassified $217,000 and $79,000 from operating activities to financing activities in the Company’s consolidated statements of cash flows for the years ended December 31, 2016 and 2015 , respectively to conform to the current period presentation. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018. We have not elected to early adopt this guidance. The guidance must be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
CONTRACT REVENUE AND PERCENTAGE
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD | 12 Months Ended |
Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD | CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD Information with respect to uncompleted contracts as of December 31, is as follows (in thousands): 2017 2016 Costs incurred on uncompleted contracts $ 266,902 $ 246,424 Estimated profit (loss) earned to date (19,336 ) 21,363 Sub-total 247,566 267,787 Less billings to date 224,329 244,935 Total $ 23,237 $ 22,852 The above amounts are included in the accompanying consolidated balance sheets at December 31, under the following captions (in thousands): 2017 2016 Contracts in progress $ 28,373 $ 26,829 Advance billings on contracts (5,136 ) (3,977 ) Total $ 23,237 $ 22,852 Provision for Estimated Losses Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. We recognized contract losses of $36.5 million , $1.8 million and $33.9 million in the years ended December 31, 2017 , 2016 , and 2015 , respectively. Contract losses for the year ended December 31, 2017 , totaling $ 34.5 million related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels that we are building for a customer within our Shipyard Division. These vessels are some of the most technologically-advanced vessels in their class. The cost overruns relate primarily to complexities with the installation of the power and communications systems. We believe the best course of action for the Company is to perform additional engineering and construction planning to ensure we are meeting the contractual performance requirements for these vessels and mitigating any further construction risk. With the additional electrical engineering, planning and construction estimates, the estimated delivery dates of the vessels will be extended beyond the contractual delivery dates, and we estimate that the maximum amount of liquidated damages of $11.2 million will be incurred in the absence of a signed amendment with the customer. We have included the maximum liquidated damages in our 2017 loss provision above and reduced our estimate of the contract price. We continue to work with the customer to complete the contract in a manner that is acceptable to both parties; however, resolution with this customer could take several months. We can provide no assurance that we will be successful in signing an amendment to the contract, or that in the event we are successful in negotiating an amendment, as to when such an amendment will be signed or if such amendment will result in recovery of any cost overruns or liquidated damages that we have recognized to date. We believe that our estimates to complete the vessels are reasonable; however, we cannot guarantee that we will not incur additional costs as we negotiate with our customer. Contract losses for the year ended December 31, 2016 , were primarily attributable to decreasing margins on fabrication work due to continued depressed oil and gas prices within our Fabrication Division and the movement of vessels in progress from our leased Prospect Shipyard to our owned Houma Shipyard within our Shipyard Division. Contract losses for the year ended December 31, 2015 , were primarily due to $24.5 million related to a decrease in the contract price due to final weight re-measurements and our inability to recover certain costs on disputed change orders related to a large deepwater project which was delivered in 2015. In addition, we increased accrued contract losses associated with our remaining contracts by approximately $9.4 million during 2015 due to increases in our projected unit labor rates of our fabrication facilities. Revenue from Major Customers The Company is not dependent on any one customer, and the revenue earned from each customer varies from year to year based on the contracts awarded; however, the Company is highly dependent on a few large customers in each year, particularly customers for our major deepwater projects, as shown below. Revenue from customers comprising 10% or more of the Company’s total revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively, are summarized as follows (in thousands): Customer 2017 2016 2015 A $ 44,724 * * B $ 21,781 * * C * $ 65,981 * D * * $ 55,775 E * * $ 36,320 _____________ * The customer revenue was less than 10% of the total revenue for the year. Implementation of ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606) As discussed in Note 1, Implementation of this new standard will be required effective January 1, 2018. 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. As part of our implementation of this standard, we established an implementation team as well as employed the help of outside consultants to assist with the implementation. Our evaluation concluded revenue from our fixed-price and unit-rate contracts using the percentage-of-completion method, computed by measuring the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract is still appropriate. Revenue from contracts that are based upon time worked and materials incurred at the contracted rates will still be recognized as the work is performed and the costs are incurred. Our implementation included a detailed review of all or our significant contracts. In doing so, we determined that certain contracts will need to include contract labor amounts within the calculation of percentage complete in order to comply with the additional criteria included within Topic 606. Additionally, we concluded that significant costs from outside services will need to be included within our measure of progress and and include a measure of profit and not treated solely as "pass-through costs." While these additional criteria impact the timing of revenue recognition, they do not change the timing for the recognition of costs. The guidance permits companies to either apply the new requirements retrospectively to all prior periods presented through use of the full retrospective method or apply the new requirements in the year of adoption through a cumulative adjustment using the modified retrospective method. We will adopt the new revenue guidance effective January 1, 2018, by recognizing the cumulative effect of initially applying the new standard as a change in the opening balance of retained earnings. We expect this adjustment to our retained earnings to be immaterial as of December 31, 2017. International Revenue The Company’s fabricated structures are used worldwide by U.S. customers operating abroad and by foreign customers. Revenue related to fabricated structures for delivery outside of the United States accounted for 0% , 14% , and 6% of the Company’s revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are summarized as follows (in thousands): 2017 2016 2015 Location: United States $ 171,022 $ 245,039 $ 287,892 International — 41,287 18,228 Total $ 171,022 $ 286,326 $ 306,120 Contract Costs Contract costs include all direct material, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies and tools. Also included in contract costs are a portion of those indirect contract costs related to plant capacity, such as depreciation, insurance and repairs and maintenance. These indirect costs are allocated to jobs based on actual direct labor hours incurred. We define pass-through costs as material, freight, equipment rental, and sub-contractor services included in the direct costs of revenue associated with projects. Pass-through costs have no impact in the determination of gross margin recognized for the related project for a particular period. Pass-through costs as a percentage of revenue were 53.1% , 36.5% and 44.4% for the years ended December 31, 2017 , 2016 and 2015 , respectively. Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a claim under those provisions. Those contracts define the conditions under which our customers may make claims against us for liquidated damages. As of December 31 2017, we estimated that the delivery dates for the newbuild construction of two multi-purpose service vessels that we are building for a customer within our Shipyard Division will be extended beyond the contractual delivery dates, and that the maximum amount of liquidated damages of $11.2 million will be assessed in the absence of a signed amendment with the customer as discussed above. Additionally, we successfully resolved our dispute with a customer within our Shipyard Division that had previously rejected delivery of the first of two offshore service vessels that we completed and tendered for delivery on February 6, 2017. During the fourth quarter of 2017, we settled our disputes, and the customer accepted delivery of the first of two vessels less a reduction in the amounts owed under each contract of $233,000 related to discrepancies of dead weight tonnage. We also recommenced construction of the second vessel to be delivered in 2018. |
CONTRACTS RECEIVABLE AND RETAIN
CONTRACTS RECEIVABLE AND RETAINAGE | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
CONTRACTS RECEIVABLE AND RETAINAGE | CONTRACTS RECEIVABLE AND RETAINAGE Of our contracts receivable balance at December 31, 2017 , approximately $15.6 million, or 55.1% , is for two customers. Approximately $8.6 million , or 42.7% of the December 31, 2016 contracts receivable balance relates to three customers. Amounts due on contracts as of December 31, were as follows (in thousands): 2017 2016 Completed contracts Current receivables $ 10,246 $ 6,812 Contracts in progress: Current receivables 15,513 14,248 Retainage 4,455 113 Total contracts receivable 30,214 21,173 Less allowance for doubtful accounts 1,748 1,004 Net contracts receivable $ 28,466 $ 20,169 Our allowance for doubtful accounts as of December 31, 2017, primarily relates to a customer in our Fabrication Division for the storage of an offshore drilling platform which was fully reserved in 2016. We continue to bill this customer under the terms of the contract; however, no longer recognize revenue for these billings as collection is not reasonably assured. Instead, billings for this customer are offset with an increase in the allowance for doubtful accounts. |
ASSETS HELF FOR SALE
ASSETS HELF FOR SALE | 12 Months Ended |
Dec. 31, 2017 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE South Texas Properties: On February 23, 2017, our Board of Directors approved management's recommendation to place our South Texas Properties and related equipment located in Aransas Pass and Ingleside, Texas, up for sale. Our South Yard in Ingleside, Texas, is located on the northwest corner of the intersection of the U.S. Intracoastal Waterway and the Corpus Christi Ship Channel. The 45-foot deep Corpus Christi Ship Channel provides direct and unrestricted access to the GOM. Our North Yard in Aransas Pass, Texas, is located along the U.S. Intracoastal Waterway and is approximately three miles north of the Corpus Christi Ship Channel. Our net book value of property, plant and equipment for these assets was $102.7 million at December 31, 2017 . We measure and record assets held for sale at the lower of their carrying amount or fair value less cost to sell. These properties are underutilized and represent excess capacity within our Fabrication Division. We have ceased all fabrication activities at these locations and re-allocated any remaining backlog and workforce to our Houma fabrication operations as necessary. On August 25, 2017, our South Texas Properties and related equipment were impacted by Hurricane Harvey, which made landfall as a Category 4 hurricane. As a result, we suffered damages to our buildings and equipment at our South Texas Properties. Through December 31, 2017 , we have incurred approximately $1.3 million in clean-up, inspection and repair related costs. We maintain coverage on these assets up to a maximum of $25.0 million , subject to a 3.0% deductible with a minimum deductible of $500,000 . One building at our South Yard and one building at our North Yard were determined to be total losses. As a result we expensed the remaining net book value of $1.5 million related to these buildings and recorded a corresponding insurance recovery of $1.5 million fully offsetting the loss. We are working diligently with our insurance agents and adjusters to finalize our estimate of the damage; however, it may be several months, or even longer, before we can finalize our assessment and receive final payment from our insurance underwriters. Our insurance underwriters have made an initial payment of $6.0 million , and we have recorded a liability for future repairs of $3.3 million which is included in accrued expenses and other liabilities on our balance sheet at December 31, 2017 . Our initial estimate of the claim due to us approximates $21.5 million ; however, our insurance carrier has not approved these amounts. Based upon our initial assessment of the damages and insurance coverage, management believes that there is no basis to record a net loss at this time and that insurance proceeds will at a minimum be sufficient to reimburse us for any loss of value and repair costs. Our final assessment of the loss incurred to our South Texas Properties and related equipment as well as the amount of insurance proceeds we will receive could be more or less than our initial estimate when the claim is ultimately settled and such differences could be material. On December 20, 2017, we granted an exclusive option to a third party for the purchase of our South Yard which consists of approximately 212 acres for a purchase price of $55 million . This option runs through April 25, 2018, which may be extended through May 25, 2018, if proper written notice and additional earnest monies are provided in accordance with the agreement. The terms of the agreement are subject to normal and customary conditions, including the third party's right to conduct inspections of the property related to confirmation of title, surveys, environmental conditions, easements and access rights. In consideration for the option to purchase the South Yard, the third party deposited $750,000 of earnest money on January 3, 2018, which is nonrefundable in the event the third party cancels the agreement. As a result of the decision to place our South Texas Properties up for sale, we have and will continue to incur costs associated with maintaining these facilities. These costs include insurance, general maintenance of the properties in their current state and property taxes which will be expensed as incurred. We do not expect the sale of these assets to impact our ability to operate our Fabrication Division. Our South Texas Properties held for sale do not qualify for discontinued operations presentation. Prospect Shipyard Assets: We formerly leased a 35 -acre complex 26 miles from the GOM in Houma, Louisiana that was acquired in the LEEVAC Transaction as further discussed in Note 11 "LEEVAC Transaction". We terminated the lease on December 31, 2017 , with the owner of the property (currently a senior vice president within the Company and the former chief executive officer of LEEVAC Shipyards, LLC). During the first quarter of 2017, management placed the assets at this facility up for sale, and we recorded an impairment of $389,000 related to assets based upon their estimated sale price. During the second quarter of 2017, we sold two drydocks from our Prospect Shipyard for proceeds of $2.0 million and recorded a loss on sale of $259,000 . Prior to terminating the lease, we moved the significant assets, which primarily consist of a 2,500 -ton drydock to our Houma Shipyard and evaluated the remaining assets for impairment. Based upon our evaluation of the remaining fair value less the costs to sell, we recorded additional impairment of $600,000 . The remaining $1.9 million , primarily represents the estimated fair value of the drydock. We do not expect the sale of these assets to impact our ability to service our shipyard customers. Our Prospect Shipyard assets held for sale do not qualify for discontinued operations presentation. A summary of the significant assets included in assets held for sale as of December 31, 2017 , at our South Texas Properties and our Prospect Shipyard is as follows (in thousands): Assets South Yard North Yard Prospect Shipyard Consolidated Land $ 3,335 $ 2,157 $ — $ 5,492 Buildings and improvements 84,282 39,548 — 123,830 Machinery and equipment — 69,818 2,201 72,019 Less: accumulated depreciation (40,838 ) (55,629 ) (298 ) (96,765 ) Total assets held for sale $ 46,779 $ 55,894 $ 1,903 $ 104,576 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following at December 31, (in thousands): Estimated Useful Life 2017 2016 (in Years) Land - $ 4,972 $ 10,463 Buildings 25 34,653 65,894 Machinery and equipment 3 to 25 141,704 238,029 Furniture and fixtures 3 to 5 4,450 5,570 Transportation equipment 3 to 5 2,667 3,814 Improvements 15 42,975 128,437 Construction in progress - 96 5,303 Total cost 231,517 457,510 Less accumulated depreciation 142,618 251,288 Net book value $ 88,899 $ 206,222 We lease certain equipment used in the normal course under month-to-month lease agreements cancelable only by us. During 2017 , 2016 , and 2015 , we expensed $1.0 million , $2.5 million , and $5.9 million , respectively, related to these leases. We lease our corporate office and parking facilities located in Houston, Texas. Leased premises consist of office space of approximately 8,000 square feet. The term of the lease expires on January 31, 2020 . We also lease and/or sublease facilities in Lake Charles, Jennings and Houma, Louisiana. See Note 11 "LEEVAC Transaction" for additional description of these leases. The schedule of minimum rental payments under our leases/sublease is as follows (in thousands): Minimum Payments 2018 $ 572 2019 379 2020 388 2021 396 2022 405 Thereafter 869 Total $ 3,009 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring fair value measurements and financial instruments - The carrying amounts that we have reported for financial instruments, including cash and cash equivalents, accounts receivables and accounts payables approximate their fair values. Impairment of long-lived assets - We evaluate long-lived assets or asset groups used in operations for impairment losses when events and circumstances indicate that the assets or asset groups might not be recoverable. If events and circumstance indicate that the assets or asset groups might not be recoverable, the expected future undiscounted cash flows from the assets or asset groups are estimated and compared with the carrying amount of the assets or asset groups. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets or asset groups, an impairment loss is recorded. We had no impairments of long-lived asset for the years ended December 31, 2017 , 2016 and 2015. Impairment of assets held for sale - We measure and record assets held for sale at the lower of their carrying amount or fair value less cost to sell. The determination of fair value can require the use of significant judgment and can vary on the facts and circumstances. As of December 31, 2017 , we had assets held for sale with a book value of $104.6 million related to our South Texas Properties and our Prospect Shipyard. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. As discussed in Note 4, we entered into a real estate purchase option and contract with a third party whereby the third party was granted an exclusive option for the purchase of our South Yard for a purchase price of $55 million through April 25, 2018. We compared our carrying value of the South Yard to the purchase price less costs to sell and determined that there was no impairment. For our North Yard we have obtained third party appraisals to determine the fair value of the asset group due to the uncertainty with respect to the future cash flows and compared them to the carrying value which did not result in impairment. During the year ended December 31, 2017 , we recorded impairments totaling $989,000 related to our Prospect Shipyard. The impairments were based upon management's estimates of remaining fair value, less costs to sell. See Note 4 - "Assets Held For Sale." We had no assets held for sale at December 31, 2016. Impairment of inventory - We measure and record inventory at the lower of cost or net realizable value. Included in our Fabrication Division was $5.9 million of inventory that we received as part of a settlement with a vendor in 2014 consisting of specialty and high-grade copper nickel and steel materials. We previously contracted with a third party broker to market the inventory at their facility; however, the third party canceled the contract during the year and we returned the inventory to our Houma Fabrication Yard. At December 31, 2017 , we performed our annual inspection of this inventory and determined that the high-grade stainless steel and copper nickel components remained in good condition; however; much of lower-grade carbon steel pipe and valve fittings had deteriorated significantly due to exposure to the elements as a result of movement of this inventory between our facilities and the third party broker. We continue to market the inventory for sale or use within potential fabrication projects that are bidding; however, management has concluded that there most likely is not a near term opportunity to either sell this inventory as a lump sum or use them in our fabrication process. We recorded an impairment of $3.7 million based upon the estimated net realizable value of the high grade inventory in good condition and the estimated scrap proceeds for the lower grade carbon steel items. Included in our Fabrication Division is specialty piping and valves inventory for a deepwater construction project that we received as part of a settlement with a customer in 2013 with an original value of $13.5 million . This inventory was impaired $3.2 million during 2014 related to a fair value estimate of $10.3 million with the assistance of third party valuation specialists and again impaired $6.6 million in 2015 based upon estimated sales proceeds and reclassified from assets held for sale to inventory. As of December 31, 2016, the net book value of this inventory was $3.7 million . We sold specialty piping with a net book value of $472,000 during January of 2017 resulting in an immaterial gain; however, there have been no other sales or interest in this inventory during 2017. We have received interest in prior periods for this inventory from offshore projects that remain viable; however, recent recoveries in oil and gas prices are not positively impacting the amount of demand for offshore oil and gas structures. Instead, oil and gas exploration and the resulting capital expenditures are more focused on land-based drilling, particularly in shale production areas. With no expected return of demand in the near term and the inability for us to use these materials in our current projects, it has became more evident to management, particularly during the fourth quarter of 2017, that these assets were impaired. Due to a lack of a market for this inventory, management has estimated the net realizable value based upon scrap prices including the cost to prepare the material to scrap and recorded an impairment of $2.9 million . We have determined that our impairments of assets held for sale and inventory are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. In this situation, we believe net realizable value approximates fair value. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2017 2016 2015 Numerator: Net income (loss) $ (44,766 ) $ 3,515 $ (25,364 ) Less: distributed loss / distributed and undistributed income (unvested restricted stock) 3 30 84 Net income (loss) attributable to common shareholders $ (44,769 ) $ 3,485 $ (25,448 ) Denominator (basic and fully diluted): Denominator for basic earnings per share-weighted-average shares 14,838 14,631 14,546 Basic and fully diluted earnings (loss) per share—common shareholders $ (3.02 ) $ 0.24 $ (1.75 ) |
LINE OF CREDIT
LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | LINE OF CREDIT On June 9, 2017, we entered into a $40 million credit agreement with a lending institution, as sole lender. The credit agreement matures June 9, 2019 , and may be used for issuing letters of credit and/or general corporate and working capital purposes. Additionally, we amended our credit agreement with our lending institution on December 29, 2017, and then again on February 26, 2018, lowering the base tangible net worth requirement from the initial $230 million to $185 million in the minimum tangible net worth covenant. In addition, the Second Amendment to our credit agreement revises the calculation for the minimum tangible net worth covenant to include 50% of any gain attributable to the sale of our South Texas Properties and related equipment. We believe that the new facility, as amended, will provide us with additional working capital flexibility to expand operations as backlog improves, respond to market opportunities and support our ongoing operations. Interest on drawings under our credit agreement may be designated, at our option, as either Base Rate (as defined in the credit agreement) or LIBOR plus 2.0% per annum. Unused commitment fees on the undrawn portion of the facility are 0.4% per annum, and interest on undrawn stated amounts under letters of credit issued by the lenders is 2.0% per annum. The credit agreement is secured by substantially all of our South Texas Properties and related equipment. We must comply with the following financial covenants each quarter during the term of the facility: i. Ratio of current assets to current liabilities of not less than 1.25 :1.00; ii. Minimum tangible net worth requirement of at least the sum of: a) $185 million , plus b) An amount equal to 50% of consolidated net income for each fiscal quarter ending after June 30, 2017, including 50% of any gain attributable to the sale of our South Texas Properties and related equipment (with no deduction for a net loss in any such fiscal quarter); plus c) 100% of all net proceeds of any issuance of any stock or other equity after deducting of any fees, commissions, expenses and other costs incurred in such offering; and iii. Ratio of funded debt to tangible net worth of not more than 0.5 :1.00. Concurrent with our execution of the credit agreement, we terminated our prior credit agreement with our prior lending institution. At the time of the termination, there was approximately $4.6 million of letters of credit outstanding. All were reissued as new letters of credit under the credit agreement and accepted by the beneficiaries. As of December 31, 2017, there were approximately $5.5 million in letters of credit and no outstanding borrowings with availability under our credit agreement for future, additional letters of credit and borrowings of $34.5 million . As of December 31, 2017 , we had no borrowings under our credit agreement, and we were in compliance with all of our covenants. During January 2018, we subsequently drew $10 million under our credit agreement which remains outstanding as of March 9, 2018 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our provision for income taxes for 2017 was impacted by the Tax Cuts and Jobs Act enactment in December 2017 and our adoption of Accounting Standards Update (ASU) 2016-09, Improvements to Share-Based Payment Accounting , on January 1, 2017. As of December 31, 2017, we have not completed our accounting for the tax effects of the Tax Cuts and Jobs Act. In accordance with SAB 118, we have recorded provisional amounts related to the transition tax, impacts of the Tax Cuts and Jobs Act on state taxes and provisions of the Tax Cuts and Jobs Act related to executive compensation. Our accounting for the tax effects of the Tax Cuts and Jobs Act will be completed before the end of the measurement period which is one year from the date of enactment of the Tax Cuts and Jobs Act. Our preliminary estimate of the impact of the Tax Cuts and Jobs Act was immaterial to our deferred tax position as of December 31, 2017 . Our net position is based on reasonable estimates for those tax effects of the Tax Cuts and Jobs Act. Changes to these estimates or new guidance issued by regulators may materially impact our provision for income taxes and effective tax rate in the period in which the adjustments are made. Adoption of ASU2016-09 requires the recognition of the excess tax benefit or tax deficiency resulting from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes created when common stock vests as an income tax benefit or expense in the Company’s statement of operations. Under previous GAAP, this difference was required to be recognized in additional paid-in capital. The expense or benefit required to be recognized is calculated separately as a discrete item each reporting period and not as part of the Company’s projected annual effective tax rate. During the year ended December 31, 2017 , we recorded tax expense of $253,000 . Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Deferred tax liabilities: Property, plant and equipment $ 17,605 $ 27,468 Prepaid insurance 453 766 Total deferred tax liabilities: 18,058 28,234 Deferred tax assets: Employee benefits 962 1,303 Uncompleted contracts 2,664 106 Stock based compensation expense 350 1,488 Allowance for uncollectible accounts 99 192 Long term incentive awards 280 264 Federal net operating losses 13,190 617 State net operating losses 511 — AMT credit carryforwards — 1,030 Other 394 — Less valuation allowance (392 ) — Total deferred tax assets: 18,058 5,000 Net deferred tax liabilities: $ — $ 23,234 Significant components of income tax expense (benefit) for the years ended December 31 were as follows (in thousands): 2017 2016 2015 Current: Federal $ — $ 302 $ 219 State 83 361 473 Total current 83 663 692 Deferred: Federal (23,827 ) 1,549 (13,614 ) State (449 ) (171 ) (447 ) Total deferred (24,276 ) 1,378 (14,061 ) Income taxes $ (24,193 ) $ 2,041 $ (13,369 ) A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2017, we had a valuation allowance of $392,000 offsetting our deferred tax assets. As of December 31, 2017 we had gross, federal net operating losses that are eligible for carryforward to offset future net income of $62.8 million , of which $4.0 million will expire on December 31, 2035. Our remaining federal net operating loss carryforwards will expire December 31, 2037. A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax (benefit) expense for the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands): 2017 % 2016 % 2015 % U.S. statutory rate $ (24,136 ) 35.0% $ 1,945 35.0% $ (13,556 ) 35.0% Increase (decrease) resulting from: Permanent differences 330 (0.5)% 64 1.1% 275 (0.7)% State income taxes (366 ) 0.5% 32 0.6% — —% Vesting of common stock 253 (0.4)% — —% — —% Other (274 ) 0.5% — —% (88 ) 0.2% Income tax (benefit) expense $ (24,193 ) 35.1% $ 2,041 36.7% $ (13,369 ) 34.5% |
RETIREMENT AND LONG-TERM INCENT
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
RETIREMENT AND LONG-TERM INCENTIVE PLANS | RETIREMENT AND LONG-TERM INCENTIVE PLANS 401(k) Plan The Company has a defined contribution plan for all employees that is qualified under Section 401(k) of the Internal Revenue Code. Contributions to the retirement plan by the Company are based on the participants’ contributions, with an additional year-end discretionary contribution determined by the Board of Directors. Effective April 1, 2016, the Company temporarily suspended its matching contribution in response to the downturn in the oil and gas industry. For the years ended December 31, 2017 , 2016 and 2015, the Company contributed a total of $0 , $670,000 , and $2.3 million , respectively. Long-Term Incentive Plans Under our long-term incentive plans, the compensation committee of our Board of Directors may grant equity awards related to the Company's common stock, including awards of restricted stock, restricted stock units, other stock-based awards and options to eligible participants as the compensation committee determines. A summary of our long-term incentive plans is as follows: Long-Term Incentive Plan (approved by our shareholders on February 13, 1997): • authorizes the grant of options to purchase an aggregate of 1,000,000 (split adjusted) shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted awards with respect to more than 400,000 shares of common stock in a calendar year. 2002 Long-Term Incentive Plan (approved by our shareholders on April 24, 2002, and amended on April 26, 2006): • authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted awards with respect to more than 200,000 shares of common stock in a calendar year. 2011 Stock Incentive Plan (approved by our shareholders on April 28, 2011): • authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted awards with respect to more than 200,000 shares of common stock in a calendar year. 2015 Stock Incentive Plan (approved by our shareholders on April 23,2015): • authorizes the grant of awards, including options, to purchase an aggregate of 1,000,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. • no individual employee may be granted awards with respect to more than 200,000 shares of common stock and no outside director may receive awards that relate to more than 25,000 shares in any fiscal year. At December 31, 2017 , there were approximately 833,443 shares in the aggregate remaining available for future issuance under the Long-Term Incentive Plan, the 2002 Long-Term Incentive Plan, the 2011 Stock Incentive Plan and the 2015 Stock Incentive Plan (together, the “Incentive Plans”). The Company issues new shares through its transfer agent in connection with issuances under the Incentive Plans. Restricted Stock Awards Restricted stock awards which include shares of restricted stock and restricted stock units are subject to transfer restrictions, forfeit provisions and other terms and conditions of the Incentive Plans. At the time restricted stock awards are made, the compensation committee will establish a period of time during which the transfer of the shares of restricted stock shall be restricted and after which the shares of restricted stock shall be vested. Except for the restricted stock awards that vest based on the attainment of performance goals, the restricted period shall be a minimum of three years , with incremental vesting of portions of the award over the three-year period permitted. Our Incentive Plans do not have any limitations on the number of shares that can be specifically awarded as restricted stock. Restricted stock granted to our non-employee directors have six -month vesting periods. The fair value of restricted stock is determined based on the closing price of the Company’s common stock on the date of the grant. A summary of our restricted stock awards activity for the years ended December 31, 2017 , 2016 and 2015 is presented in the table below. 2017 2016 2015 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Restricted shares at the beginning of period 370,565 $ 12.99 262,964 $ 18.33 107,840 $ 24.27 Granted 383,121 13.02 259,699 8.55 215,034 16.33 Vested (215,478 ) 12.52 (114,804 ) 14.37 (41,112 ) 22.04 Forfeited (93,082 ) 12.53 (37,294 ) 15.48 (18,798 ) 21.39 Restricted shares at the end of period 445,126 $ 12.83 370,565 $ 12.99 262,964 $ 18.33 As of December 31, 2017 , there was $2.7 million of total unrecognized compensation cost related to restricted share-based compensation arrangements granted under the Incentive Plans. This cost is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of shares vested during the year ended December 31, 2017 was $2.1 million . Share-based compensation cost that has been charged against income for the Incentive Plans was $2.7 million , $2.1 million and $2.7 million for 2017 , 2016 and 2015 , respectively. The total income tax benefit (expense) recognized in the statement of operations for share-based compensation arrangements was 253,000 for the year ended December 31, 2017 , and $0 for each of the years ending December 31, 2016 and 2015 , respectively. Performance awards We issue performance awards to our executives and certain members of management. Performance targets are communicated to employees at the beginning of a performance period and are based upon our total shareholder return compared to an industry peer group as determined by our Board of Directors. Awards granted during 2015 were based upon a two -year performance period ending December 31, 2016, and paid in shares. The shares vest at the completion of the performance period with compensation expense recognized on a straight line basis. Awards granted during 2016 and 2017 are based upon a three -year performance period ending on December 31, 2018, and December 31, 2019, respectively, and are payable in cash. The fair value of the 2017 and 2016 awards is calculated each reporting period and compensation expense (including fair value adjustments) is recognized on a straight line basis. For the years ended December 31, 2017 , 2016 and 2015 , expense recognized for performance based award compensation was $1.5 million , $1.3 million and $1.1 million , respectively. The fair value of the performance based awards granted for the years ended December 31, 2017 and 2016 was $4.7 million and $1.6 million , respectively, as determined using a Monte Carlo simulation model. These awards are payable in cash. |
LEEVAC TRANSACTION
LEEVAC TRANSACTION | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
LEEVAC TRANSACTION | LEEVAC TRANSACTION On January 1, 2016, we acquired substantially all of the assets and assumed certain specified liabilities of LEEVAC Shipyards, L.L.C. and its affiliates (“LEEVAC”). The purchase price for the acquisition was $20 million , subject to a working capital adjustment whereby we received a dollar-for-dollar reduction for the assumption of certain net liabilities of LEEVAC and settlement payments applied from sureties on certain ongoing fabrication projects that were assigned to us in the transaction. After taking into account these adjustments, we received approximately $3.0 million in cash from the seller. Strategically, the LEEVAC transaction expands our marine fabrication and repair and maintenance presence in the GOM market. We acquired approximately $121.2 million of newbuild construction backlog inclusive of approximately $9.2 million of purchase price fair value allocated to four , newbuild construction projects for two customers. We own the machinery and equipment that were purchased in the LEEVAC Transaction; however, lease the following facilities. Jennings Shipyard - Our Jennings Shipyard is an 180 -acre complex five miles east of Jennings, Louisiana, on the west bank of the Mermentau River approximately 25 miles north of the U.S. Intracoastal Waterway that we lease from a third party. The lease, including exercisable renewal options, extends through January 2045. Lake Charles Shipyard - Our Lake Charles Shipyard is a ten -acre complex 17 miles from the GOM on the Calcasieu River near Lake Charles, Louisiana, that we sublease from a third party. The sublease, including exercisable renewal options (subject to sublessor renewals), extends through July 2038. Former Prospect Shipyard - We formerly leased a 35 -acre complex 26 miles from the GOM near Houma, Louisiana, from the former owner of LEEVAC Shipyards, currently one of our Senior Vice Presidents of Business Development. We terminated this lease on December 31, 2017, in accordance with its terms, and we are marketing the remaining assets located at such property for sale. See also Note 4. The results of the LEEVAC Transaction are fully incorporated in our financial statements for the years ended December 31, 2017 and 2016 , as the transaction occurred on January 1, 2016. The table below presents our pro forma results of operations for the year ended December 31, 2015, assuming that we acquired substantially all of the assets and certain specified liabilities of LEEVAC on January 1, 2015 (in thousands): Year Ended December 31, 2015 Pro forma adjustments Historical results LEEVAC Adjustments Pro forma results Revenue $ 306,120 $ 87,239 $ — $ 393,359 Net income (loss) $ (25,364 ) $ (4,655 ) $ 3,738 (1) $ (26,281 ) ______________ (1) Adjustments to historical results are as follows: Year Ended December 31, 2015 Effect of purchase price depreciation $ 1,217 Elimination of interest expense 2,038 Income taxes 483 Total $ 3,738 |
CONTINGENCIES AND COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES AND COMMITMENTS | CONTINGENCIES AND COMMITMENTS The Company is subject to various routine legal proceedings in the normal conduct of its business, primarily involving commercial claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the United States and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, management believes that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. During the year ended December 31, 2017 , we incurred operating losses totaling $ 34.5 million related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels that we are building for a customer within our Shipyard Division. These vessels are some of the most technologically-advanced vessels in their class. The cost overruns relate primarily to complexities with the installation of the power and communications systems. We believe the best course of action for the Company is to perform additional engineering and construction planning to ensure we are meeting the contractual performance requirements for these vessels and mitigating any further construction risk. With the additional electrical engineering, planning and construction estimates, the estimated delivery dates of the vessels will be extended beyond the contractual delivery dates, and we estimate that the maximum amount of liquidated damages of $11.2 million will be incurred in the absence of a signed amendment with the customer. We have included the maximum liquidated damages in our 2017 loss provision above and reduced our estimate of the contract price. We continue to work with the customer to complete the contract in a manner that is acceptable to both parties; however, resolution with this customer could take several months. We can provide no assurance that we will be successful in signing an amendment to the contract, or that in the event we are successful in negotiating an amendment, as to when such an amendment will be signed or if such amendment will result in recovery of any cost overruns or liquidated damages that we have recognized to date. We believe that our estimates to complete the vessels are reasonable; however, we cannot guarantee that we will not incur additional costs as we negotiate with our customer. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS We have structured our operations with three significant operating divisions, one corporate non-operating division and one newly formed operating division. Beginning in 2017, management reduced its allocation of corporate administrative costs and overhead expenses from its corporate, non-operating division to its operating divisions in order to individually evaluate corporate administrative costs and overhead within our Corporate Division as well as to not overly burden our operating divisions with costs that do not directly relate to their operations. Accordingly, a significant portion of our corporate administrative costs and overhead expenses are retained within the results of our corporate division. In addition, we have also allocated certain personnel previously included in the operating divisions to our Corporate Division. In doing so, management believes that it has created a fourth reportable segment with each of its three significant operating divisions and its Corporate Division each meeting the criteria of reportable segments under GAAP. Beginning in December 2017, we created a new operating division, which we have named our EPC Division to manage expected work we will perform for the SeaOne Project and other projects that may require EPC project management services. EPC's operating revenue and expenses for 2017 were immaterial and it held no assets. Our three significant operating divisions and Corporate Division are discussed below. Fabrication Division - Our Fabrication Division primarily fabricates structures such as offshore drilling and production platforms and other steel structures for customers in the oil and gas industries including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms (such as TLPs, SPARs, FPSOs and MinDOCs), piles, wellhead protectors, subsea templates, and various production, compressor, and utility modules along with pressure vessels. Our Fabrication Division also fabricates structures for alternative energy customers (such as the five jackets and piles we constructed for the first offshore wind power project in the United States during 2015) as well as modules for petrochemical facilities. We perform these activities out of our fabrication yards in Houma, Louisiana, and formerly out of our fabrication yards in Aransas Pass and Ingleside, Texas, each of which are marketed for sale. Shipyard Division - Our Shipyard Division primarily manufactures newbuild and repairs various steel marine vessels in the United States including offshore supply vessels, anchor handling vessels and liftboats to support the construction and ongoing operation of offshore oil and gas production platforms, tug boats, towboats, barges and other marine vessels. We also construct drydocks to lift marine vessels out of the water. Our marine repair activities include steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning. In addition, we perform conversion projects that consist of lengthening vessels, modifying vessels to permit their use for a different type of activity, and other modifications to enhance the capacity or functionality of a vessel. We perform these activities out of our shipyards in Houma, Jennings and Lake Charles, Louisiana. Services Division - Our Services Division primarily provides interconnect piping services on offshore platforms and inshore structures. Interconnect piping services involve sending employee crews to offshore platforms in the GOM to perform welding and other activities required to connect production equipment, service modules and other equipment on a platform. We also contract with oil and gas companies that have platforms and other structures located in the inland lakes and bays throughout the southeastern United States for various on-site construction and maintenance activities. In addition, our Services Division fabricates packaged skid units and perform various municipal and drainage projects, such as pump stations, levee reinforcement, bulkheads and other public works projects for state and local governments. We perform these services at our customer's facilities or out of our Houma Service Yard. We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each division. Corporate administrative costs and overhead are generally allocated to our segments except for those costs that are not directly related to the operations of our divisions. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information concerning our segments as of and for the three-year period ended December 31, 2017 , is as follows (in thousands): December 31, 2017 Fabrication Shipyard (1) Services Corp. & Eliminations Consolidated Revenue $ 57,880 $ 52,699 $ 65,445 $ (5,002 ) $ 171,022 Gross profit (loss) (1,941 ) (44,870 ) 4,575 (689 ) (42,925 ) Operating income (loss) (12,040 ) (49,785 ) 1,874 (8,446 ) (68,397 ) Depreciation expense 6,592 4,073 1,676 404 12,745 Capital expenditures 2,395 1,909 403 127 4,834 Total Assets $ 195,187 $ 74,516 $ 105,291 $ (104,154 ) $ 270,840 December 31, 2016 Fabrication Shipyard Services Corp. & Eliminations Consolidated Revenue $ 88,683 $ 109,502 $ 91,414 $ (3,273 ) $ 286,326 Gross profit (loss) 5,276 7,801 12,420 (644 ) 24,853 Operating income (loss) 1,500 2,375 9,106 (7,798 ) 5,183 Depreciation expense 18,566 4,686 1,775 421 25,448 Capital expenditures 2,633 1,861 1,495 806 6,795 Total Assets $ 272,292 $ 81,928 $ 96,404 $ (128,216 ) $ 322,408 December 31, 2015 Fabrication Shipyard Services Corp. & Eliminations Consolidated Revenue $ 151,576 $ 59,601 $ 100,431 $ (5,488 ) $ 306,120 Gross profit (loss) (36,990 ) 8,750 13,937 (853 ) (15,156 ) Operating income (loss) (49,295 ) 7,695 11,353 (8,367 ) (38,614 ) Depreciation expense 22,045 1,921 1,733 505 26,204 Capital expenditures 3,360 1,206 1,379 73 6,018 Total Assets $ 310,790 $ 54,543 $ 94,618 $ (143,028 ) $ 316,923 ____________ (1) Included in the 2017 operating results for our Shipyard Division is $ 34.5 million in operating losses related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels. The delivery of the vessels will be extended beyond the contractual delivery dates and put us in a position to incur liquidated damages. In absence of a signed amendment with the customer, we have accrued the maximum liquidated damages under the contract of $11.2 million . |
QUARTERLY OPERATING RESULTS (UN
QUARTERLY OPERATING RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY OPERATING RESULTS (UNAUDITED) | QUARTERLY OPERATING RESULTS (UNAUDITED) A summary of quarterly results of operations for the years ended December 31, 2017 and 2016 were as follows (in thousands, except per share data): March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (1) Revenue $ 37,993 $ 45,868 $ 49,884 $ 37,277 Gross profit (loss) (4,897 ) (11,620 ) (494 ) (25,914 ) Net income (loss) (6,454 ) (10,923 ) (3,110 ) (24,279 ) Basic and fully diluted EPS $ (0.44 ) $ (0.73 ) $ (0.21 ) $ (1.63 ) March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenue $ 83,979 $ 81,502 $ 65,384 $ 55,461 Gross profit (loss) 5,701 14,066 5,259 (173 ) Net income (loss) 989 5,540 541 (3,555 ) Basic and fully diluted EPS $ 0.07 $ 0.37 $ 0.04 $ (0.24 ) (1) During the fourth quarter of 2017, we incurred $22.5 million in losses related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels. The cost overruns relate primarily to complexities with the installation of the power and communications systems. We believe the best course of action for the Company is to perform additional engineering and construction planning to ensure we are meeting the contractual performance requirements for these vessels and mitigating any further construction risk. With the additional electrical engineering, planning and construction estimates, the estimated delivery dates of the vessels will be extended beyond the contractual delivery dates, and we estimate that the maximum amount of liquidated damages of $11.2 million will be incurred in the absence of a signed amendment with the customer. We have included the maximum liquidated damages in our 2017 loss provision above and reduced our estimate of the contract price. Total contract losses for this customer for the year are $ 34.5 million . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS During January 2018, we subsequently drew $10.0 million under our credit agreement. On February 26, 2018, the Company entered into a Second Amendment (the "Second Amendment") to the credit agreement with our lending institution, dated June 9, 2017. The Second Amendment lowers the base tangible net worth requirement from $200 million to $185 million in the minimum tangible net worth covenant. In addition, the Second Amendment revises the calculation for the minimum tangible net worth covenant to include 50% of any gain attributable to the sale of our South Texas Properties and related equipment. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Gulf Island Fabrication, Inc. ("Gulf Island"), and together with its subsidiaries ("the Company," "we" or "our"), is a leading fabricator of complex steel structures and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation and alternative energy projects and shipping and marine transportation operations. We also provide related installation, hookup, commissioning, repair and maintenance services with specialized crews and integrated project management capabilities. We are currently fabricating complex modules for the construction of a new petrochemical plant, completing newbuild construction of one technologically-advanced offshore support and two multi-purpose service vessels. During 2015, we fabricated wind turbine pedestals for the first offshore wind power project in the United States. We have also constructed one of the largest liftboats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM and the first SPAR fabricated in the United States. Our customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power and marine operators. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana, and formerly in Aransas Pass and Ingleside, Texas, each of which are marketed for sale. The consolidated financial statements include the accounts of Gulf Island and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Business Outlook | Business Outlook Beginning in late 2014, a severe decline in oil and natural gas prices led to a significant decline in oil and gas industry drilling activities and capital spending from our traditional customer base. In 2015 and through 2017, the Company implemented a number of initiatives to preserve cash, lower costs, and attract new customers. These initiatives include: reducing our workforce in certain divisions, developing a plan to sell certain underutilized assets, and diversifying our service offerings and fabrication capabilities. The Company continues to assess liquidity needs and manage cash flows, given the challenging industry conditions our traditional customer base continues to experience. If industry conditions do not improve, our plan to sell the assets held for sale does not occur or is delayed, or we are unable to increase our backlog, the Company would expect to take additional measures to preserve its cash flows. As a result of the steps the Company has taken to preserve its liquidity, the Company currently believes that cash on hand and funds available under the Company’s credit agreement will enable the Company to meet its working capital, capital expenditures, any future debt service and other funding requirements for at least one year from the date this Form 10-K is issued. The Company’s view regarding sufficiency of cash and liquidity is primarily based on our financial forecast for 2018 and early 2019, which is impacted by various assumptions regarding our existing backlog and a reasonable amount of forecasted non-contractual backlog. Generally, we expect demand for our Services Division to increase in 2018 beyond the contractual backlog amount in place as of December 31, 2017. We have included an insignificant amount of backlog in our financial forecast for our newly formed EPC Division related to continuing support of the SeaOne Project. Although we have observed certain factors in 2017 that support improving industry conditions and have taken measures to diversify our business offerings, our financial forecasts in recent periods have proven less reliable given cost overruns incurred on projects and volatile market conditions in our current operating environment. In addition, the Company’s continued access to funds available through its credit agreement is dependent upon compliance with certain financial covenants. As a result, there is no guarantee that our financial forecast, which projects sufficient cash, including funds available through our credit agreement, will be available to meet planned operating expenses and other cash needs and will be accurate. |
Operating Cycle | Operating Cycle The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded 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 paid or received within the next twelve months include contract retainage, contracts in progress, deferred revenue and advanced billings on contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits, the application of the percentage-of-completion method of accounting, income taxes and the determination of the allowance of doubtful accounts. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We routinely review individual contract receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. |
Stock-Based Compensation | Stock-Based Compensation Awards under the Company’s stock-based compensation plans are calculated using a fair value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. |
Inventory | Inventory Inventory consists of materials and production supplies and is stated at the lower of cost or net realizable value determined on the first-in, first-out basis. |
Assets Held for Sale | Assets Held for Sale Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. |
Workers Compensation Liability | Workers Compensation Liability The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from three to 25 years . Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. |
Long-Lived Assets | Long-Lived Assets We evaluate impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might not be recoverable. If events and circumstance indicate that the assets or asset groups might not be recoverable, the expected future undiscounted cash flows from the assets or asset groups are estimated and compared with the carrying amount of the assets or asset groups. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets or asset groups, an impairment loss is recorded. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. |
Fair Value Measurements | Fair Value Measurements The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. We base our fair value determinations by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: • Level 1-inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2-inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3-inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. |
Revenue Recognition | Revenue Recognition We use the percentage-of-completion accounting method for fabrication contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to our estimate of total anticipated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. To the extent work from changes in scope have been approved for scope, but not as to price, revenue is recognized up to cost incurred. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. For the years ended December 31, 2017 , 2016 , and 2015 , there was no significant revenue related to unapproved change orders or claims. Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. |
Income Taxes | Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the basis differences reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. In December 2017, the Tax Cuts and Jobs Act was enacted which significantly changes U.S. tax law. In accordance with Accounting Standards Codification ("ASC") 740, Income Taxes, the Company is required to account for the new requirements in the period that includes the date of enactment. The Tax Cuts and Jobs Act reduces the overall corporate income tax rate to 21%, creates a new territorial tax system, broadens the tax base, and allows for the immediate expensing of qualified property. Due to the complexities presented by the Tax Cuts and Jobs Act, the SEC issued Staff Accounting Bulletin ("SAB") 118 to provide guidance to companies who are not able to complete their accounting in the period of enactment prior to the reporting deadlines. Under the guidance in SAB 118, companies that have not completed their accounting for the Tax Cuts and Jobs Act but can determine a reasonable estimate of those effects should include a provisional amount based on their reasonable estimate in their financial statements. As of December 31, 2017, we have not completed our accounting for the tax effects of the Tax Cuts and Jobs Act. For additional discussion of the effects on the Tax Cuts and Jobs Act including the impact of current tax reform in our consolidated financial statements, see Note 9 - "Income Taxes." A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. During 2017, we recorded a valuation allowance against our deferred tax assets of $0.4 million . See Note 9 - "Income Taxes." Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2012 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. |
New Accounting Standards | New Accounting Standards On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification ("ASC") Topic 605, “Revenue Recognition.” ASU No. 2014-09 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. ASU 2014-09 will be effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early application is permitted. We use the percentage-of-completion accounting method to account for our fixed-price or unit rate contracts, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. We have concluded that this method will still be allowed under this ASU. We intend to use the modified retrospective model in adopting this standard, which will require a cumulative catch up adjustment, if any, on January 1, 2018. See Note 2 -“Contract Revenue and Percentage-of-Completion Method” for additional information regarding our expected impact of this ASU upon our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheets but recognize expenses in a manner similar to current guidance. ASU 2016-02 will be effective for annual periods beginning after December 15, 2018. The guidance is required to be applied using a modified retrospective approach. We are currently evaluating the effect that ASU 2016-02 will have on our financial position, results of operations and related disclosures; however, we expect to record our lease obligations on our balance sheet. See Note 5 for disclosure of our minimum lease payments. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification within the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016. We adopted the requirements of ASU 2016-09 effective January 1, 2017. The provisions of ASU No. 2016-09 that are applicable to the Company and affect the Company’s consolidated financial statements include the following: • This ASU requires the recognition of the excess tax benefit or tax deficiency resulting from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes created when common stock vests as an income tax benefit or expense in the Company’s statement of operations. Under previous GAAP, this difference was required to be recognized in additional paid-in capital. The expense or benefit required to be recognized is calculated separately as a discrete item each reporting period and not as part of the Company’s projected annual effective tax rate. During the year ended December 31, 2017 , we recorded tax expense of $253,000 (approximately $0.02 loss per share) related to the adoption of this ASU. We have adopted these provisions on a prospective basis and our prior period presentation has not changed. Future effects to the Company’s income tax expense (benefit) as a result of the adoption of this ASU will depend on the timing, number of shares and the closing price per share of the Company’s common stock on the dates of vesting. • This ASU also clarifies that cash paid by the Company to taxing authorities in order to satisfy employee income tax withholding obligations from vesting shares should be classified as a financing activity in the Company’s statement of cash flows. We have reported payments of $916,000 within financing activities within our consolidated statement of cash flows for the year ended December 31, 2017 , as a result of adoption of this ASU. We have adopted these provisions retrospectively and reclassified $217,000 and $79,000 from operating activities to financing activities in the Company’s consolidated statements of cash flows for the years ended December 31, 2016 and 2015 , respectively to conform to the current period presentation. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for annual periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018. We have not elected to early adopt this guidance. The guidance must be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
CONTRACT REVENUE AND PERCENTA23
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue Recognition [Abstract] | |
Information with Respect to Uncompleted Contracts | Information with respect to uncompleted contracts as of December 31, is as follows (in thousands): 2017 2016 Costs incurred on uncompleted contracts $ 266,902 $ 246,424 Estimated profit (loss) earned to date (19,336 ) 21,363 Sub-total 247,566 267,787 Less billings to date 224,329 244,935 Total $ 23,237 $ 22,852 |
Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets | The above amounts are included in the accompanying consolidated balance sheets at December 31, under the following captions (in thousands): 2017 2016 Contracts in progress $ 28,373 $ 26,829 Advance billings on contracts (5,136 ) (3,977 ) Total $ 23,237 $ 22,852 |
Summary of Revenues from Customers | Revenue from customers comprising 10% or more of the Company’s total revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively, are summarized as follows (in thousands): Customer 2017 2016 2015 A $ 44,724 * * B $ 21,781 * * C * $ 65,981 * D * * $ 55,775 E * * $ 36,320 _____________ * The customer revenue was less than 10% of the total revenue for the year. |
Company Revenues by Geographic Location | Revenue related to fabricated structures for delivery outside of the United States accounted for 0% , 14% , and 6% of the Company’s revenue for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are summarized as follows (in thousands): 2017 2016 2015 Location: United States $ 171,022 $ 245,039 $ 287,892 International — 41,287 18,228 Total $ 171,022 $ 286,326 $ 306,120 |
CONTRACTS RECEIVABLE AND RETA24
CONTRACTS RECEIVABLE AND RETAINAGE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contractors [Abstract] | |
Amounts Due on Contracts | Amounts due on contracts as of December 31, were as follows (in thousands): 2017 2016 Completed contracts Current receivables $ 10,246 $ 6,812 Contracts in progress: Current receivables 15,513 14,248 Retainage 4,455 113 Total contracts receivable 30,214 21,173 Less allowance for doubtful accounts 1,748 1,004 Net contracts receivable $ 28,466 $ 20,169 |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Significant Assets Included in Assets Held for Sale | A summary of the significant assets included in assets held for sale as of December 31, 2017 , at our South Texas Properties and our Prospect Shipyard is as follows (in thousands): Assets South Yard North Yard Prospect Shipyard Consolidated Land $ 3,335 $ 2,157 $ — $ 5,492 Buildings and improvements 84,282 39,548 — 123,830 Machinery and equipment — 69,818 2,201 72,019 Less: accumulated depreciation (40,838 ) (55,629 ) (298 ) (96,765 ) Total assets held for sale $ 46,779 $ 55,894 $ 1,903 $ 104,576 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, (in thousands): Estimated Useful Life 2017 2016 (in Years) Land - $ 4,972 $ 10,463 Buildings 25 34,653 65,894 Machinery and equipment 3 to 25 141,704 238,029 Furniture and fixtures 3 to 5 4,450 5,570 Transportation equipment 3 to 5 2,667 3,814 Improvements 15 42,975 128,437 Construction in progress - 96 5,303 Total cost 231,517 457,510 Less accumulated depreciation 142,618 251,288 Net book value $ 88,899 $ 206,222 |
Schedule of Minimum Rental Payments | The schedule of minimum rental payments under our leases/sublease is as follows (in thousands): Minimum Payments 2018 $ 572 2019 379 2020 388 2021 396 2022 405 Thereafter 869 Total $ 3,009 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): 2017 2016 2015 Numerator: Net income (loss) $ (44,766 ) $ 3,515 $ (25,364 ) Less: distributed loss / distributed and undistributed income (unvested restricted stock) 3 30 84 Net income (loss) attributable to common shareholders $ (44,769 ) $ 3,485 $ (25,448 ) Denominator (basic and fully diluted): Denominator for basic earnings per share-weighted-average shares 14,838 14,631 14,546 Basic and fully diluted earnings (loss) per share—common shareholders $ (3.02 ) $ 0.24 $ (1.75 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2017 and 2016 were as follows (in thousands): 2017 2016 Deferred tax liabilities: Property, plant and equipment $ 17,605 $ 27,468 Prepaid insurance 453 766 Total deferred tax liabilities: 18,058 28,234 Deferred tax assets: Employee benefits 962 1,303 Uncompleted contracts 2,664 106 Stock based compensation expense 350 1,488 Allowance for uncollectible accounts 99 192 Long term incentive awards 280 264 Federal net operating losses 13,190 617 State net operating losses 511 — AMT credit carryforwards — 1,030 Other 394 — Less valuation allowance (392 ) — Total deferred tax assets: 18,058 5,000 Net deferred tax liabilities: $ — $ 23,234 |
Components of Income Tax Expense | Significant components of income tax expense (benefit) for the years ended December 31 were as follows (in thousands): 2017 2016 2015 Current: Federal $ — $ 302 $ 219 State 83 361 473 Total current 83 663 692 Deferred: Federal (23,827 ) 1,549 (13,614 ) State (449 ) (171 ) (447 ) Total deferred (24,276 ) 1,378 (14,061 ) Income taxes $ (24,193 ) $ 2,041 $ (13,369 ) |
Reconciliation of Income Tax | A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax (benefit) expense for the years ended December 31, 2017, 2016 and 2015 is as follows (in thousands): 2017 % 2016 % 2015 % U.S. statutory rate $ (24,136 ) 35.0% $ 1,945 35.0% $ (13,556 ) 35.0% Increase (decrease) resulting from: Permanent differences 330 (0.5)% 64 1.1% 275 (0.7)% State income taxes (366 ) 0.5% 32 0.6% — —% Vesting of common stock 253 (0.4)% — —% — —% Other (274 ) 0.5% — —% (88 ) 0.2% Income tax (benefit) expense $ (24,193 ) 35.1% $ 2,041 36.7% $ (13,369 ) 34.5% |
RETIREMENT AND LONG-TERM INCE29
RETIREMENT AND LONG-TERM INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
Summary of Restricted Stock Awards Activity | A summary of our restricted stock awards activity for the years ended December 31, 2017 , 2016 and 2015 is presented in the table below. 2017 2016 2015 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share Restricted shares at the beginning of period 370,565 $ 12.99 262,964 $ 18.33 107,840 $ 24.27 Granted 383,121 13.02 259,699 8.55 215,034 16.33 Vested (215,478 ) 12.52 (114,804 ) 14.37 (41,112 ) 22.04 Forfeited (93,082 ) 12.53 (37,294 ) 15.48 (18,798 ) 21.39 Restricted shares at the end of period 445,126 $ 12.83 370,565 $ 12.99 262,964 $ 18.33 |
LEEVAC Transaction (Tables)
LEEVAC Transaction (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Pro Forma Results | The table below presents our pro forma results of operations for the year ended December 31, 2015, assuming that we acquired substantially all of the assets and certain specified liabilities of LEEVAC on January 1, 2015 (in thousands): Year Ended December 31, 2015 Pro forma adjustments Historical results LEEVAC Adjustments Pro forma results Revenue $ 306,120 $ 87,239 $ — $ 393,359 Net income (loss) $ (25,364 ) $ (4,655 ) $ 3,738 (1) $ (26,281 ) ______________ (1) Adjustments to historical results are as follows: Year Ended December 31, 2015 Effect of purchase price depreciation $ 1,217 Elimination of interest expense 2,038 Income taxes 483 Total $ 3,738 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information concerning our segments as of and for the three-year period ended December 31, 2017 , is as follows (in thousands): December 31, 2017 Fabrication Shipyard (1) Services Corp. & Eliminations Consolidated Revenue $ 57,880 $ 52,699 $ 65,445 $ (5,002 ) $ 171,022 Gross profit (loss) (1,941 ) (44,870 ) 4,575 (689 ) (42,925 ) Operating income (loss) (12,040 ) (49,785 ) 1,874 (8,446 ) (68,397 ) Depreciation expense 6,592 4,073 1,676 404 12,745 Capital expenditures 2,395 1,909 403 127 4,834 Total Assets $ 195,187 $ 74,516 $ 105,291 $ (104,154 ) $ 270,840 December 31, 2016 Fabrication Shipyard Services Corp. & Eliminations Consolidated Revenue $ 88,683 $ 109,502 $ 91,414 $ (3,273 ) $ 286,326 Gross profit (loss) 5,276 7,801 12,420 (644 ) 24,853 Operating income (loss) 1,500 2,375 9,106 (7,798 ) 5,183 Depreciation expense 18,566 4,686 1,775 421 25,448 Capital expenditures 2,633 1,861 1,495 806 6,795 Total Assets $ 272,292 $ 81,928 $ 96,404 $ (128,216 ) $ 322,408 December 31, 2015 Fabrication Shipyard Services Corp. & Eliminations Consolidated Revenue $ 151,576 $ 59,601 $ 100,431 $ (5,488 ) $ 306,120 Gross profit (loss) (36,990 ) 8,750 13,937 (853 ) (15,156 ) Operating income (loss) (49,295 ) 7,695 11,353 (8,367 ) (38,614 ) Depreciation expense 22,045 1,921 1,733 505 26,204 Capital expenditures 3,360 1,206 1,379 73 6,018 Total Assets $ 310,790 $ 54,543 $ 94,618 $ (143,028 ) $ 316,923 ____________ (1) Included in the 2017 operating results for our Shipyard Division is $ 34.5 million in operating losses related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels. The delivery of the vessels will be extended beyond the contractual delivery dates and put us in a position to incur liquidated damages. In absence of a signed amendment with the customer, we have accrued the maximum liquidated damages under the contract of $11.2 million . |
QUARTERLY OPERATING RESULTS (32
QUARTERLY OPERATING RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | A summary of quarterly results of operations for the years ended December 31, 2017 and 2016 were as follows (in thousands, except per share data): March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (1) Revenue $ 37,993 $ 45,868 $ 49,884 $ 37,277 Gross profit (loss) (4,897 ) (11,620 ) (494 ) (25,914 ) Net income (loss) (6,454 ) (10,923 ) (3,110 ) (24,279 ) Basic and fully diluted EPS $ (0.44 ) $ (0.73 ) $ (0.21 ) $ (1.63 ) March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenue $ 83,979 $ 81,502 $ 65,384 $ 55,461 Gross profit (loss) 5,701 14,066 5,259 (173 ) Net income (loss) 989 5,540 541 (3,555 ) Basic and fully diluted EPS $ 0.07 $ 0.37 $ 0.04 $ (0.24 ) (1) During the fourth quarter of 2017, we incurred $22.5 million in losses related to cost overruns and delays that we encountered in the newbuild construction of two multi-purpose service vessels. The cost overruns relate primarily to complexities with the installation of the power and communications systems. We believe the best course of action for the Company is to perform additional engineering and construction planning to ensure we are meeting the contractual performance requirements for these vessels and mitigating any further construction risk. With the additional electrical engineering, planning and construction estimates, the estimated delivery dates of the vessels will be extended beyond the contractual delivery dates, and we estimate that the maximum amount of liquidated damages of $11.2 million will be incurred in the absence of a signed amendment with the customer. We have included the maximum liquidated damages in our 2017 loss provision above and reduced our estimate of the contract price. Total contract losses for this customer for the year are $ 34.5 million . |
Organization and Summary of S33
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)vessel$ / shares | Sep. 30, 2017$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2017USD ($)vesselsegment$ / shares | Dec. 31, 2016USD ($)segment$ / shares | Dec. 31, 2015USD ($)segment$ / shares | |
Significant Accounting Policies [Line Items] | |||||||||||
Number of technologically advanced offshore support vessels being constructed | vessel | 1 | 1 | |||||||||
Number of multi-purpose service vessels being constructed | vessel | 2 | 2 | |||||||||
Workers compensation liability | $ 4,100,000 | $ 3,400,000 | $ 4,100,000 | $ 3,400,000 | |||||||
Unapproved change order and claim revenue | 0 | 0 | $ 0 | ||||||||
Valuation allowance | $ 392,000 | $ 0 | 392,000 | 0 | |||||||
Payments made on behalf of employees from withheld, vested shares of common stock | $ 916,000 | $ 217,000 | $ 79,000 | ||||||||
Number of operating divisions | segment | 3 | 3 | 3 | ||||||||
Income tax expense | $ (24,193,000) | $ 2,041,000 | $ (13,369,000) | ||||||||
Loss per share (in dollars per share) | $ / shares | $ (1.63) | $ (0.21) | $ (0.73) | $ (0.44) | $ (0.24) | $ 0.04 | $ 0.37 | $ 0.07 | $ (3.02) | $ 0.24 | $ (1.75) |
Minimum | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful life of property, plant and equipment | 3 years | ||||||||||
Maximum | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Estimated useful life of property, plant and equipment | 25 years | ||||||||||
Accounting Standards Update 2016-09 | |||||||||||
Significant Accounting Policies [Line Items] | |||||||||||
Income tax expense | $ 253,000 | ||||||||||
Loss per share (in dollars per share) | $ / shares | $ 0.02 |
CONTRACT REVENUE AND PERCENTA34
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD - Information with Respect to Uncompleted Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue Recognition [Abstract] | ||
Costs incurred on uncompleted contracts | $ 266,902 | $ 246,424 |
Estimated profit (loss) earned to date | (19,336) | 21,363 |
Contract costs and estimated profits | 247,566 | 267,787 |
Less billings to date | 224,329 | 244,935 |
Net costs and estimated earnings in excess of billings | $ 23,237 | $ 22,852 |
CONTRACT REVENUE AND PERCENTA35
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD - Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue Recognition [Abstract] | ||
Contracts in progress | $ 28,373 | $ 26,829 |
Advance billings on contracts | (5,136) | (3,977) |
Net costs and estimated earnings in excess of billings | $ 23,237 | $ 22,852 |
CONTRACT REVENUE AND PERCENTA36
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($)vessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Revenue from External Customer [Line Items] | ||||
Loss on contracts | $ 36,500 | $ 1,800 | $ 33,900 | |
Loss related to cost overruns and re-work | $ 22,500 | $ 34,500 | ||
Number of multi-purpose service vessels being constructed | vessel | 2 | 2 | ||
Estimated liquidated damages | $ 233 | |||
Percentage of revenue related to fabricated structures for delivery outside U.S | 0.00% | 14.00% | 6.00% | |
Pass-through costs as a percentage of revenue | 53.10% | 36.50% | 44.40% | |
Number of offshore service vessels being constructed | vessel | 2 | 2 | ||
Large Deepwater Project, Recently Delivered | ||||
Revenue from External Customer [Line Items] | ||||
Loss on contracts | $ 24,500 | |||
Fabrication Facilities | ||||
Revenue from External Customer [Line Items] | ||||
Loss on contract due to labor rate changes | $ 9,400 | |||
Maximum | ||||
Revenue from External Customer [Line Items] | ||||
Estimated liquidated damages | $ 11,200 |
CONTRACT REVENUE AND PERCENTA37
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD - Revenues from Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 55,461 | $ 65,384 | $ 81,502 | $ 83,979 | $ 171,022 | $ 286,326 | $ 306,120 |
Customer A | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | 44,724 | ||||||||||
Customer B | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 21,781 | ||||||||||
Customer C | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 65,981 | ||||||||||
Customer D | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | 55,775 | ||||||||||
Customer E | |||||||||||
Revenue, Major Customer [Line Items] | |||||||||||
Revenue | $ 36,320 |
CONTRACT REVENUE AND PERCENTA38
CONTRACT REVENUE AND PERCENTAGE-OF-COMPLETION METHOD - Revenues by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 55,461 | $ 65,384 | $ 81,502 | $ 83,979 | $ 171,022 | $ 286,326 | $ 306,120 |
United States | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | 171,022 | 245,039 | 287,892 | ||||||||
International | |||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||
Revenue | $ 0 | $ 41,287 | $ 18,228 |
Contracts Receivable and Reta39
Contracts Receivable and Retainage - Amounts Due on Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $ 28,466 | $ 20,169 |
Total contracts receivable | 30,214 | 21,173 |
Less allowance for doubtful accounts | 1,748 | 1,004 |
Net contracts receivable | 28,466 | 20,169 |
Completed Contracts | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 10,246 | 6,812 |
Contracts In Progress | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 15,513 | 14,248 |
Retainage | 4,455 | 113 |
Top 2 Customers | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $ 15,600 | |
Percentage of contract receivable | 55.10% | |
Top 3 Customers | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $ 8,600 | |
Percentage of contract receivable | 42.70% |
ASSETS HELD FOR SALE - Narrativ
ASSETS HELD FOR SALE - Narrative (Details) | Dec. 20, 2017USD ($)a | Jun. 30, 2017USD ($)drydock | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)a | Dec. 31, 2017USD ($)a | Dec. 31, 2017USD ($)aT | Jan. 03, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of drydocks sold | drydock | 2 | ||||||
Held for sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Property, plant and equipment held for sale | $ 104,576,000 | $ 104,576,000 | $ 104,576,000 | ||||
South Texas Fabrication Yards | Held for sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Property, plant and equipment held for sale | 102,700,000 | $ 102,700,000 | $ 102,700,000 | ||||
Cost of property repairs and maintenance | $ 1,300,000 | ||||||
Insurance deductible, percent | 3.00% | 3.00% | 3.00% | ||||
Loss due to Hurricane Harvey | $ 1,500,000 | ||||||
Insurance recovery | 1,500,000 | ||||||
Proceeds from property insurance policy | $ 6,000,000 | ||||||
Estimated insurance recoveries | 21,500,000 | $ 21,500,000 | 21,500,000 | ||||
South Texas Fabrication Yards | Held for sale | Buckeye | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Area of leased facility (in acres) | a | 212 | ||||||
Potential sales price of real estate | $ 55,000,000 | ||||||
South Texas Fabrication Yards | Held for sale | Buckeye | Subsequent Event | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Deposit received for real estate | $ 750,000 | ||||||
South Texas Fabrication Yards | Held for sale | Accrued Liabilitie | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Accrual for future repairs | 3,300,000 | 3,300,000 | 3,300,000 | ||||
South Texas Fabrication Yards | Held for sale | Maximum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Insurance coverage | 25,000,000 | 25,000,000 | 25,000,000 | ||||
South Texas Fabrication Yards | Held for sale | Minimum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Insurance deductible, value | 500,000 | 500,000 | 500,000 | ||||
Prospect Shipyard | Held for sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Property, plant and equipment held for sale | $ 1,903,000 | $ 1,903,000 | $ 1,903,000 | ||||
Area of leased facility (in acres) | a | 35 | 35 | 35 | ||||
Impairment of asset held for sale | $ 389,000 | $ 600,000 | $ 989,000 | ||||
Prospect Shipyard | Disposed of by sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Property, plant and equipment held for sale | $ 1,900,000 | ||||||
Proceeds from sale of assets | 2,000,000 | ||||||
Loss on sale of assets | $ (259,000) | ||||||
Fixed asset, number of tons | T | 2,500 |
ASSETS HELD FOR SALE - Signific
ASSETS HELD FOR SALE - Significant Assets Included in Assets Held for Sale (Details) - Held for sale $ in Thousands | Dec. 31, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Less: accumulated depreciation | $ (96,765) |
Total assets held for sale | 104,576 |
South Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Less: accumulated depreciation | (40,838) |
Total assets held for sale | 46,779 |
North Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Less: accumulated depreciation | (55,629) |
Total assets held for sale | 55,894 |
Prospect Shipyard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Less: accumulated depreciation | (298) |
Total assets held for sale | 1,903 |
Land | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 5,492 |
Land | South Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 3,335 |
Land | North Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 2,157 |
Land | Prospect Shipyard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 0 |
Buildings and improvements | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 123,830 |
Buildings and improvements | South Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 84,282 |
Buildings and improvements | North Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 39,548 |
Buildings and improvements | Prospect Shipyard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 0 |
Machinery and equipment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 72,019 |
Machinery and equipment | South Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 0 |
Machinery and equipment | North Yard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 69,818 |
Machinery and equipment | Prospect Shipyard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | $ 2,201 |
Property, Plant and Equipment42
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 231,517 | $ 457,510 |
Less accumulated depreciation | 142,618 | 251,288 |
Net book value | 88,899 | 206,222 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,972 | 10,463 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 34,653 | 65,894 |
Property, plant and equipment, estimated useful life | 25 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 141,704 | 238,029 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,450 | 5,570 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,667 | 3,814 |
Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 42,975 | 128,437 |
Property, plant and equipment, estimated useful life | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 96 | $ 5,303 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 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 | 3 years | |
Maximum | ||
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 | 25 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 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) ft² in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Abstract] | |||
Lease agreement expenses | $ | $ 1 | $ 2.5 | $ 5.9 |
Office space area of leased premises | ft² | 8 |
Property, Plant and Equipment44
Property, Plant and Equipment - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Abstract] | |
2,018 | $ 572 |
2,019 | 379 |
2,020 | 388 |
2,021 | 396 |
2,022 | 405 |
Thereafter | 869 |
Future minimum rental payments due | $ 3,009 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Dec. 20, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2017 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment charge | $ 0 | $ 0 | $ 0 | ||||||
Fair value of assets held for sale | 0 | ||||||||
Held for sale | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Fair value of assets held for sale | $ 104,576,000 | 104,576,000 | |||||||
South Texas Fabrication Yards | Held for sale | Buckeye | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Potential sales price of real estate | $ 55,000,000 | ||||||||
Prospect Shipyard | Held for sale | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment of asset held for sale | $ 389,000 | $ 600,000 | 989,000 | ||||||
Specialty and High-Grade Copper Nickel and Steel | Fabrication | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment charge | 3,700,000 | ||||||||
Inventory | $ 5,900,000 | ||||||||
Specialty Piping and Valves | Fabrication | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment charge | $ 2,900,000 | $ 6,600,000 | 3,200,000 | ||||||
Fair value of assets held for sale | $ 10,300,000 | ||||||||
Inventory | $ 3,700,000 | $ 13,500,000 | |||||||
Specialty Piping and Valves | Disposed of by sale | Fabrication | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Inventory disposed of | $ 472,000 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) | $ (24,279) | $ (3,110) | $ (10,923) | $ (6,454) | $ (3,555) | $ 541 | $ 5,540 | $ 989 | $ (44,766) | $ 3,515 | $ (25,364) |
Less: distributed loss / distributed and undistributed income (unvested restricted stock) | 3 | 30 | 84 | ||||||||
Net income (loss) attributable to common shareholders | $ (44,769) | $ 3,485 | $ (25,448) | ||||||||
Denominator (basic and fully diluted): | |||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,838 | 14,631 | 14,546 | ||||||||
Basic and fully diluted earnings (loss) per share—common shareholders (in dollars per share) | $ (1.63) | $ (0.21) | $ (0.73) | $ (0.44) | $ (0.24) | $ 0.04 | $ 0.37 | $ 0.07 | $ (3.02) | $ 0.24 | $ (1.75) |
Line of Credit (Details)
Line of Credit (Details) | Jun. 09, 2017USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 09, 2018USD ($) | Feb. 26, 2018USD ($) | Dec. 28, 2017USD ($) | Jun. 08, 2017USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Revolving credit facility | $ 40,000,000 | ||||||||
Financial covenants, minimum net worth | $ 200,000,000 | $ 230,000,000 | |||||||
Financial covenants, minimum current ratio | 1.25 | ||||||||
Financial covenants, percent of net income added to net worth requirement | 50.00% | ||||||||
Financial covenants, percent of proceeds from stock issuance added to net worth requirement | 100.00% | ||||||||
Financial covenants, maximum funded debt to tangible net worth ratio | 0.5 | ||||||||
Outstanding letters of credit | $ 5,500,000 | $ 4,600,000 | |||||||
Borrowings under credit agreement | $ 0 | ||||||||
Borrowings against credit agreement | 2,000,000 | $ 0 | $ 0 | ||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fees on unused borrowings | 0.40% | ||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Basis spread on variable interest rate | 2.00% | ||||||||
Letter of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fees on unused borrowings | 2.00% | ||||||||
Revolving credit facility, unused portion | $ 34,500,000 | ||||||||
Subsequent Event | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Financial covenants, minimum net worth | $ 185,000,000 | ||||||||
Percent of gain on sale of assets added to net worth requirement | 50.00% | ||||||||
Borrowings under credit agreement | $ 10,000,000 | ||||||||
Borrowings against credit agreement | $ 10,000,000 |
INCOME TAXES Income Taxes - Nar
INCOME TAXES Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | $ (24,193) | $ 2,041 | $ (13,369) |
Valuation allowance | 392 | $ 0 | |
Operating loss carryforwards | 62,800 | ||
Accounting Standards Update 2016-09 | |||
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | 253 | ||
Expire In 2035 | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 4,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax liabilities: | ||
Property, plant and equipment | $ 17,605 | $ 27,468 |
Prepaid insurance | 453 | 766 |
Total deferred tax liabilities: | 18,058 | 28,234 |
Deferred tax assets: | ||
Employee benefits | 962 | 1,303 |
Uncompleted contracts | 2,664 | 106 |
Stock based compensation expense | 350 | 1,488 |
Allowance for uncollectible accounts | 99 | 192 |
Long term incentive awards | 280 | 264 |
Federal net operating losses | 13,190 | 617 |
State net operating losses | 511 | 0 |
AMT credit carryforwards | 0 | 1,030 |
Other | 394 | 0 |
Less valuation allowance | (392) | 0 |
Total deferred tax assets: | 18,058 | 5,000 |
Net deferred tax liabilities: | $ 0 | $ 23,234 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 0 | $ 302 | $ 219 |
State | 83 | 361 | 473 |
Total current | 83 | 663 | 692 |
Deferred: | |||
Federal | (23,827) | 1,549 | (13,614) |
State | (449) | (171) | (447) |
Total deferred | (24,276) | 1,378 | (14,061) |
Income tax (benefit) expense | $ (24,193) | $ 2,041 | $ (13,369) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. statutory rate | $ (24,136) | $ 1,945 | $ (13,556) |
Increase (decrease) resulting from: | |||
Permanent differences | 330 | 64 | 275 |
State income taxes | (366) | 32 | 0 |
Vesting of common stock | 253 | 0 | 0 |
Other | (274) | 0 | (88) |
Income tax (benefit) expense | $ (24,193) | $ 2,041 | $ (13,369) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Permanent differences | (0.50%) | 1.10% | (0.70%) |
State income taxes | 0.50% | 0.60% | 0.00% |
Vesting of common stock | (0.40%) | 0.00% | 0.00% |
Other | 0.50% | 0.00% | 0.20% |
Income tax (benefit) expense | 35.10% | 36.70% | 34.50% |
Retirement and Long-Term Ince52
Retirement and Long-Term Incentive Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer discretionary contribution | $ 0 | $ 670,000 | $ 2,300,000 |
Available shares for future issuance (in shares) | 833,443 | ||
Total unrecognized compensation costs | $ 2,700,000 | ||
Recognition of compensation cost, weighted average period | 1 year 7 months 6 days | ||
Total fair value of shares vested | $ 2,100,000 | ||
Share-based compensation cost charged against income | 2,741,000 | 3,125,000 | 2,707,000 |
Total income tax (expense) benefit under share-base compensation | (253,000) | 0 | 0 |
Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation cost charged against income | $ 2,700,000 | 2,100,000 | 2,700,000 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 1,000,000 | ||
Employee Stock Option | Long Term Incentive Plan 2002 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 500,000 | ||
Employee Stock Option | Long Term Incentive Plan 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 500,000 | ||
Employee Stock Option | Long Term Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 1,000,000 | ||
Non Performance Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period, minimum | 3 years | ||
Restricted Stock | Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 6 months | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based share compensation expense | $ 1,500,000 | 1,300,000 | $ 1,100,000 |
Fair value of performance based shares granted | $ 4,700,000 | $ 1,600,000 | |
Maximum | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant to an individual (more than) (in shares) | 400,000 | ||
Maximum | Employee Stock Option | Long Term Incentive Plan 2002 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant to an individual (more than) (in shares) | 200,000 | ||
Maximum | Employee Stock Option | Long Term Incentive Plan 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant to an individual (more than) (in shares) | 200,000 | ||
Maximum | Employee Stock Option | Long Term Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options available for grant to an individual (more than) (in shares) | 200,000 | ||
Options available for grant to an outside director (more than) (in shares) | 25,000 | ||
2015 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period awards are earned | 2 years | ||
2016 Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period awards are earned | 3 years |
Retirement and Long-Term Ince53
Retirement and Long-Term Incentive Plans - Summary of Status of Restricted Stock Awards (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Restricted shares at the beginning of period (in shares) | 370,565 | 262,964 | 107,840 |
Granted (in shares) | 383,121 | 259,699 | 215,034 |
Vested (in shares) | (215,478) | (114,804) | (41,112) |
Forfeited (in shares) | (93,082) | (37,294) | (18,798) |
Restricted shares at the end of period (in shares) | 445,126 | 370,565 | 262,964 |
Weighted- Average Grant-Date Fair Value Per Share | |||
Restricted shares at the beginning of period (USD per share) | $ 12.99 | $ 18.33 | $ 24.27 |
Granted (USD per share) | 13.02 | 8.55 | 16.33 |
Vested (USD per share) | 12.52 | 14.37 | 22.04 |
Forfeited (USD per share) | 12.53 | 15.48 | 21.39 |
Restricted shares at the end of period (USD per share) | $ 12.83 | $ 12.99 | $ 18.33 |
LEEVAC Transaction - Narrative
LEEVAC Transaction - Narrative (Details) - LEEVAC | Jan. 01, 2016USD ($)aCustomerProject |
Business Acquisition [Line Items] | |
Purchase price | $ 20,000,000 |
Net cash received at closing | 3,000,000 |
Build construction backlog acquired | 121,200,000 |
Build construction acquired, purchase price fair value allocated | $ 9,200,000 |
Number of build construction projects in backlog acquired | Project | 4 |
Third party customers with backlog acquired | Customer | 2 |
Jennings | |
Business Acquisition [Line Items] | |
Area of leased facility (in acres) | a | 180 |
Lake Charles | |
Business Acquisition [Line Items] | |
Area of leased facility (in acres) | a | 10 |
Houma | |
Business Acquisition [Line Items] | |
Area of leased facility (in acres) | a | 35 |
LEEVAC Transaction - Pro Forma
LEEVAC Transaction - Pro Forma Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenue | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 55,461 | $ 65,384 | $ 81,502 | $ 83,979 | $ 171,022 | $ 286,326 | $ 306,120 |
Net income (loss) | $ (24,279) | $ (3,110) | $ (10,923) | $ (6,454) | $ (3,555) | $ 541 | $ 5,540 | $ 989 | $ (44,766) | $ 3,515 | (25,364) |
Pro forma revenue | 393,359 | ||||||||||
Pro forma net income (loss) | (26,281) | ||||||||||
Pro Forma Adjustment to Historical Results | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenue | 0 | ||||||||||
Net income (loss) | 3,738 | ||||||||||
Effect of purchase price depreciation | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Net income (loss) | 1,217 | ||||||||||
Elimination of interest expense | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Net income (loss) | 2,038 | ||||||||||
Income taxes | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Net income (loss) | 483 | ||||||||||
LEEVAC | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenue | 87,239 | ||||||||||
Net income (loss) | $ (4,655) |
CONTINGENCIES AND COMMITMENTS (
CONTINGENCIES AND COMMITMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||
Loss related to cost overruns and re-work | $ 22,500 | $ 34,500 |
Estimated liquidated damages | $ 233 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimated liquidated damages | $ 11,200 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2017segment | Dec. 31, 2016segment | Dec. 31, 2015jacketsegment | |
Segment Reporting [Abstract] | |||
Number of operating divisions | 3 | 3 | 3 |
Number of corporate non-operating divisions | 1 | ||
Number of newly-formed operating divisions | 1 | ||
Number of jackets and piles constructed | jacket | 5 |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)vessel | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 55,461 | $ 65,384 | $ 81,502 | $ 83,979 | $ 171,022 | $ 286,326 | $ 306,120 |
Gross profit (loss) | (25,914) | $ (494) | $ (11,620) | $ (4,897) | (173) | $ 5,259 | $ 14,066 | $ 5,701 | (42,925) | 24,853 | (15,156) |
Operating income (loss) | (68,397) | 5,183 | (38,614) | ||||||||
Depreciation expense | 12,745 | 25,448 | 26,204 | ||||||||
Capital expenditures | 4,834 | 6,795 | 6,018 | ||||||||
Total Assets | 270,840 | 322,408 | 270,840 | 322,408 | 316,923 | ||||||
Loss related to cost overruns and re-work | $ 22,500 | $ 34,500 | |||||||||
Number of multi-purpose service vessels being constructed | vessel | 2 | 2 | |||||||||
Estimated liquidated damages | $ 233 | ||||||||||
Operating Segments | Fabrication | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 57,880 | 88,683 | 151,576 | ||||||||
Gross profit (loss) | (1,941) | 5,276 | (36,990) | ||||||||
Operating income (loss) | (12,040) | 1,500 | (49,295) | ||||||||
Depreciation expense | 6,592 | 18,566 | 22,045 | ||||||||
Capital expenditures | 2,395 | 2,633 | 3,360 | ||||||||
Total Assets | 195,187 | 272,292 | 195,187 | 272,292 | 310,790 | ||||||
Operating Segments | Shipyard | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 52,699 | 109,502 | 59,601 | ||||||||
Gross profit (loss) | (44,870) | 7,801 | 8,750 | ||||||||
Operating income (loss) | (49,785) | 2,375 | 7,695 | ||||||||
Depreciation expense | 4,073 | 4,686 | 1,921 | ||||||||
Capital expenditures | 1,909 | 1,861 | 1,206 | ||||||||
Total Assets | 74,516 | 81,928 | 74,516 | 81,928 | 54,543 | ||||||
Operating Segments | Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 65,445 | 91,414 | 100,431 | ||||||||
Gross profit (loss) | 4,575 | 12,420 | 13,937 | ||||||||
Operating income (loss) | 1,874 | 9,106 | 11,353 | ||||||||
Depreciation expense | 1,676 | 1,775 | 1,733 | ||||||||
Capital expenditures | 403 | 1,495 | 1,379 | ||||||||
Total Assets | 105,291 | 96,404 | 105,291 | 96,404 | 94,618 | ||||||
Corp. & Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (5,002) | (3,273) | (5,488) | ||||||||
Gross profit (loss) | (689) | (644) | (853) | ||||||||
Operating income (loss) | (8,446) | (7,798) | (8,367) | ||||||||
Depreciation expense | 404 | 421 | 505 | ||||||||
Capital expenditures | 127 | 806 | 73 | ||||||||
Total Assets | $ (104,154) | $ (128,216) | (104,154) | $ (128,216) | $ (143,028) | ||||||
Maximum | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Estimated liquidated damages | $ 11,200 |
Quarterly Operating Results (59
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)vessel$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2017USD ($)vessel$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||||||||
Revenue | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 55,461 | $ 65,384 | $ 81,502 | $ 83,979 | $ 171,022 | $ 286,326 | $ 306,120 |
Gross profit (loss) | (25,914) | (494) | (11,620) | (4,897) | (173) | 5,259 | 14,066 | 5,701 | (42,925) | 24,853 | (15,156) |
Net income (loss) | $ (24,279) | $ (3,110) | $ (10,923) | $ (6,454) | $ (3,555) | $ 541 | $ 5,540 | $ 989 | $ (44,766) | $ 3,515 | $ (25,364) |
Basic and fully diluted earnings (loss) per share—common shareholders (in dollars per share) | $ / shares | $ (1.63) | $ (0.21) | $ (0.73) | $ (0.44) | $ (0.24) | $ 0.04 | $ 0.37 | $ 0.07 | $ (3.02) | $ 0.24 | $ (1.75) |
Loss related to cost overruns and re-work | $ 22,500 | $ 34,500 | |||||||||
Number of multi-purpose service vessels being constructed | vessel | 2 | 2 | |||||||||
Estimated liquidated damages | $ 233 | ||||||||||
Maximum | |||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||||||||
Estimated liquidated damages | $ 11,200 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 26, 2018 | Dec. 28, 2017 | |
Subsequent Event [Line Items] | ||||||
Borrowings against credit agreement | $ 2,000,000 | $ 0 | $ 0 | |||
Financial covenants, minimum net worth | $ 200,000,000 | $ 230,000,000 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Borrowings against credit agreement | $ 10,000,000 | |||||
Financial covenants, minimum net worth | $ 185,000,000 | |||||
Percent of gain on sale of assets added to net worth requirement | 50.00% |