Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 15,234,420 | ||
Entity Public Float | $ 129,279,276 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 70,457 | $ 8,983 |
Short-term investments | 8,720 | 0 |
Contracts receivable and retainage, net | 22,505 | 28,466 |
Contract assets | 29,982 | 28,373 |
Prepaid expenses and other assets | 3,268 | 3,833 |
Inventory | 6,088 | 4,933 |
Assets held for sale | 18,935 | 104,576 |
Total current assets | 159,955 | 179,164 |
Property, plant and equipment, net | 79,930 | 88,899 |
Other noncurrent assets | 18,405 | 2,777 |
Total assets | 258,290 | 270,840 |
Current liabilities: | ||
Accounts payable | 28,969 | 18,375 |
Contract liabilities | 16,845 | 12,754 |
Deferred revenue | 0 | 4,676 |
Accrued expenses and other liabilities | 10,287 | 12,860 |
Total current liabilities | 56,101 | 48,665 |
Deferred revenue, noncurrent | 0 | 769 |
Other noncurrent liabilities | 1,089 | 1,913 |
Total liabilities | 57,190 | 51,347 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, no par value, 20,000 shares authorized, 15,090 issued and outstanding at December 31, 2018 and 14,910 at December 31, 2017 | 11,021 | 10,823 |
Additional paid-in capital | 102,243 | 100,456 |
Retained earnings | 87,836 | 108,214 |
Total shareholders’ equity | 201,100 | 219,493 |
Total liabilities and shareholders’ equity | $ 258,290 | $ 270,840 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 15,090,000 | 14,910,000 |
Common stock, shares outstanding (in shares) | 15,090,000 | 14,910,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 221,247 | $ 171,022 | $ 286,326 |
Cost of revenue | 228,443 | 213,947 | 261,473 |
Gross profit (loss) | (7,196) | (42,925) | 24,853 |
General and administrative expense | 19,015 | 17,800 | 19,670 |
Asset impairments and (gain) loss on assets held for sale, net | (6,850) | 7,931 | 0 |
Other (income) expense, net | 304 | ||
Other (income) expense, net | (46) | (681) | |
Operating income (loss) | (19,665) | (68,610) | 5,864 |
Interest income (expense), net | (142) | (349) | (308) |
Net income (loss) before income taxes | (19,807) | (68,959) | 5,556 |
Income tax (expense) benefit | (571) | 24,193 | (2,041) |
Net income (loss) | $ (20,378) | $ (44,766) | $ 3,515 |
Per share data: | |||
Basic and fully diluted earnings (loss) per share—common shareholders (in dollars per share) | $ (1.36) | $ (3.02) | $ 0.24 |
Cash dividends per common share (in dollars per share) | $ 0 | $ 40 | $ 40 |
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, 2015 | 14,580,216 | |||
Beginning 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) | |
Stock-based compensation expense | 3,125 | $ 312 | 2,813 | |
Dividends on common stock | (588) | (588) | ||
Ending Balance (in shares) at Dec. 31, 2016 | 14,695,000 | |||
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) | |
Stock-based compensation expense | 2,741 | $ 274 | 2,467 | |
Dividends on common stock | $ (598) | (598) | ||
Ending Balance (in shares) at Dec. 31, 2017 | 14,910,000 | 14,910,000 | ||
Ending Balance at Dec. 31, 2017 | $ 219,493 | $ 10,823 | 100,456 | 108,214 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income (loss) | (20,378) | |||
Vesting of restricted stock (in shares) | 179,685 | |||
Vesting of restricted stock | (810) | $ (81) | (729) | |
Stock-based compensation expense | $ 2,795 | $ 279 | 2,516 | |
Ending Balance (in shares) at Dec. 31, 2018 | 15,090,000 | 15,090,000 | ||
Ending Balance at Dec. 31, 2018 | $ 201,100 | $ 11,021 | $ 102,243 | $ 87,836 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (20,378,000) | $ (44,766,000) | $ 3,515,000 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 10,430,000 | 12,909,000 | 25,448,000 |
Amortization of deferred revenue | 0 | (2,008,000) | (5,223,000) |
Bad debt expense | 30,000 | 21,000 | 493,000 |
Asset impairments | 4,363,000 | 7,672,000 | 0 |
(Gain) loss on assets held for sale, net | (7,642,000) | 259,000 | 0 |
Gain on insurance recoveries | (3,571,000) | 0 | 0 |
Loss (gain) on the sale of fixed assets and other assets | 268,000 | (35,000) | (757,000) |
Deferred income taxes | 200,000 | (23,234,000) | 1,409,000 |
Stock-based compensation expense | 2,795,000 | 2,741,000 | 3,125,000 |
Changes in operating assets and liabilities: | |||
Contracts receivable and retainage, net | 2,962,000 | (8,319,000) | 28,067,000 |
Contract assets | (26,932,000) | (1,544,000) | (13,984,000) |
Prepaid expenses, inventory and other assets | (3,294,000) | 744,000 | 6,731,000 |
Accounts payable | 10,515,000 | 9,354,000 | (12,757,000) |
Contract liabilities | 12,371,000 | 8,390,000 | (12,305,000) |
Deferred revenue | (852,000) | (4,917,000) | (11,656,000) |
Deferred compensation | 843,000 | 1,608,000 | 305,000 |
Accrued expenses and other liabilities | (2,500,000) | 1,740,000 | 2,157,000 |
Net cash (used in) provided by operating activities | (20,392,000) | (39,385,000) | 14,568,000 |
Cash flows from investing activities: | |||
Cash received in acquisition | 0 | 0 | 3,035,000 |
Capital expenditures | (3,481,000) | (4,834,000) | (6,795,000) |
Purchase of short-term investments | (9,610,000) | 0 | 0 |
Maturities of short-term investments | 1,200,000 | 0 | 0 |
Proceeds from the sale of property, plant and equipment | 85,247,000 | 2,155,000 | 6,458,000 |
Recoveries from insurance claims | 9,362,000 | 1,544,000 | 0 |
Net cash provided by (used in) investing activities | 82,718,000 | (1,135,000) | 2,698,000 |
Cash flows from financing activities: | |||
Proceeds from borrowings under Credit Agreement | 15,000,000 | 2,000,000 | 0 |
Repayment of borrowings under Credit Agreement | (15,000,000) | (2,000,000) | 0 |
Payment of financing cost | (42,000) | (150,000) | (122,000) |
Tax payments made on behalf of employees from vested stock withholdings | (810,000) | (916,000) | (217,000) |
Payments of dividends on common stock | 0 | (598,000) | (588,000) |
Net cash used in financing activities | (852,000) | (1,664,000) | (927,000) |
Net increase (decrease) in cash and cash equivalents | 61,474,000 | (42,184,000) | 16,339,000 |
Cash and cash equivalents, beginning of period | 8,983,000 | 51,167,000 | 34,828,000 |
Cash and cash equivalents, end of period | 70,457,000 | 8,983,000 | 51,167,000 |
Supplemental cash flow information: | |||
Interest paid | 352,000 | 349,000 | 332,000 |
Income taxes paid (refunds received), net | 6,000 | 189,000 | 377,000 |
Reclassification of property, plant and equipment to assets held for sale | 0 | 109,488,000 | 0 |
Reclassification of assets held for sale to property, plant and equipment | 866,000 | 0 | 0 |
Reclassification of accrued expenses to assets held for sale | $ 3,245,000 | $ 0 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Gulf Island Fabrication, Inc. ("Gulf Island"), together with its subsidiaries ("the Company," "we," "us" and "our"), is a leading fabricator of complex steel structures, modules and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation, alternative energy and shipping and marine transportation operations. We also provide project management for engineering, procurement and construction ("EPC") projects along with installation, hookup, commissioning, and repair and maintenance services. In addition, we perform civil, drainage and other work for state and local governments. Our customers include United States ("U.S.") and, to a lesser extent, international energy producers; petrochemical, industrial, power and marine operators; EPC companies; and certain agencies of the U.S. government. We operate and manage our business through four operating divisions ("Fabrication", "Shipyard", "Services" and "EPC") and one non-operating division ("Corporate"), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana. Significant projects in our backlog include the expansion of a paddle wheel riverboat, the construction of nine remaining harbor tug vessels, two offshore regional class marine research vessels (with a customer option for a third vessel), two vehicle ferries, two towboats, an ice-breaker tug, and a towing, salvage and rescue ship for the U.S. Navy (with customer options for seven additional vessels). Recently completed projects include the fabrication of complex modules for a newbuild petrochemical facility and construction of two technologically-advanced OSVs, and a harbor tug vessel. Previous projects also include the fabrication of wind turbine foundations for the first offshore wind project in the U.S., and construction of two of the largest liftboats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM, and the first single point anchor reservoir ("SPAR") hull fabricated in the U.S. Basis of Presentation The accompanying Consolidated Financial Statements ("Financial Statements") have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the U.S. ("GAAP"). The Financial Statements reflect all majority owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Certain balances at December 31, 2017 , have been reclassified within our Consolidated Balance Sheets ("Balance Sheet") to conform to our presentation at December 31, 2018 , and certain amounts for 2017 and 2016 have been reclassified within our Consolidated Statements of Operations ("Statement of Operations") to conform to our presentation for 2018 . See below for further discussion of the reclassification of certain balances for prior years. Business Outlook We continue to strategically position the Company to participate in the fabrication of petrochemical and industrial facilities, pursue offshore wind opportunities, enter the EPC industry, and diversify our customer base within all our operating divisions. In addition, we continue to focus on maintaining our liquidity and securing meaningful new project awards and backlog in the near-term, and generating operating income and cash flows from operations in the longer-term. We have made significant progress in our efforts to increase our backlog and improve and preserve our liquidity, including ongoing cost reductions (including reducing the cash compensation paid to our directors and the salaries of our executive officers) and the sale of underutilized assets. See Note 3 for further discussion of our recent asset sales and assets held for sale at December 31, 2018 . We believe our cash, cash equivalents, short-term investments and availability under our Credit Agreement (defined in Note 7), will be sufficient to enable us to fund our operating expenses, meet our working capital and capital expenditure requirements, and satisfy any debt service obligations or other funding requirements, for at least twelve months from the filing date of this Report. Operating Cycle The durations of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets, deferred revenue and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims, and liquidated damages; fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; determination of deferred income tax assets, liabilities and related valuation allowances; reserves for bad debts; and liabilities related to self-insurance programs. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. Earnings Per Share We report basic and diluted earnings per share ("EPS") using the "two-class" method as required under GAAP. The calculation of EPS using the two-class method is required when a company has two or more classes of common stock or participating securities. Certain of our unvested restricted stock (which are not included in our basic or diluted weighted average shares outstanding) contain the right to receive non-refundable dividends and therefore represent participating securities. See Note 6 for calculations of our basic and diluted EPS. Cash Equivalents We consider investments with original maturities of three months or less when purchased to be cash equivalents. Short-term investments We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. At December 31, 2018, our short-term investments include U.S. Treasuries with original maturities of less than six months. We intend to hold these investments until maturity and have stated them at amortized cost. Due to their near-term maturities, amortized cost approximates fair value. All short-term investments are traded on active markets with quoted prices and represent level 1 fair value measurements. See Note 5 for further discussion of our fair value measurements. Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. See Note 5 for further discussion of our inventory. Allowance for Doubtful Accounts In the normal course of business we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectibility and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. Our customer base historically includes a significant number of energy related companies and their contractors. This concentration of customers in the energy sector 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. See Note 2 for further discussion of our allowance for doubtful accounts. Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value based measurement method. 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. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense in our Statement of Operations. See Note 9 for further discussion of our stock-based and other compensation plans. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity in our Consolidated Statement of Cash Flows ("Statement of Cash Flows"). Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 3 for further discussion of our assets held for sale. Depreciation Expense We depreciate property, plant and equipment on a straight-line basis over estimated useful lives ranging from three to 25 years , absent any indicators of impairment. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. See Note 4 for further discussion of our property, plant and equipment. Long-Lived Assets We review long-lived assets for impairment, which include property, plant and equipment and finite-lived intangible assets included within other assets, when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, the estimated future undiscounted cash flow associated with the assets or asset groups are compared to their respective carrying amounts to determine if an impairment exists. 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 assets or asset groups. Fair value is determined based on discounted cash flows, appraised values or third party indications of value, as appropriate. See Note 5 for further discussion of impairments recorded for our long-lived assets. Fair Value Measurements Our fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 - inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 - inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. See Note 5 for additional discussion of our fair value measurements. Revenue Recognition General - Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue for our contracts in accordance with Accounting Standards Update ("ASU") 2014-09, Topic 606 “Revenue from Contracts with Customers” ("Topic 606"), which was adopted by us on January 1, 2018, and supersedes previous revenue recognition guidance, including industry-specific guidance. Accordingly, the reported results for 2018 reflect the application of Topic 606 guidance, while the comparable results for 2017 and 2016 were prepared under previous revenue recognition guidance. See further discussion of our adoption of Topic 606 below. Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts - Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method (an input method), based on contract costs incurred to date compared to total estimated contract costs. Contract costs include direct costs, such as materials and labor, and indirect costs that are attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Prior to our adoption of Topic 606, revenue for our fixed-price and unit-rate contracts was recognized using the percentage-of-completion method, based on the percentage of direct labor hours incurred to date compared to total estimated direct labor hours, and revenue for materials was recognized only to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. T&M Contracts - Revenue for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. Our T&M contracts provide for labor and materials to be billed at rates specified within the contract. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Our current revenue recognition method for T&M contracts is consistent with the method used prior to adoption of Topic 606. Variable Consideration - Revenue and gross profit for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims, incentives, and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed and delivery occurs. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. For 2018 , 2017 , and 2016 , we had no material amounts in revenue related to unapproved change orders, claims, or incentives. However, at December 31, 2018 and 2017 , certain projects in our Shipyard Division reflected a reduction to our estimated contract price for liquidated damages of $11.2 million and $11.7 million , respectively. The reductions in contract price were recorded during 2017. Adoption of Topic 606 - As discussed above, on January 1, 2018 we adopted Topic 606. Our adoption of Topic 606 included a detailed review of our significant contracts that were not substantially complete as of January 1, 2018. Based on our review, we determined that Topic 606 did not impact the timing or method of revenue recognition for our T&M contracts. We also concluded that the continued use of the percentage-of-completion method was appropriate for our fixed-price and unit-rate contracts given ownership and control of the work transfers to our customers as the work is performed. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of the project, in the event our customers discontinue work, they are required to compensate us for the work performed to date. Prior to our adoption of Topic 606, our determination of percentage-of-completion for our contracts was based on the percentage of direct labor hours incurred to date compared to total estimated direct labor hours, and revenue for materials was recognized only to the extent of costs incurred. However, in our adoption of Topic 606, we adjusted our measure of progress for the determination of percentage-of-completion to include subcontract labor hours in addition to direct labor hours. The impact of this change was not material to our Financial Statements and no cumulative effect adjustment to retained earnings as of January 1, 2018 was recorded (based on the application of the modified retrospective method under Topic 606). During the fourth quarter 2018, we concluded that the use of labor hours for the determination of percentage-of-completion for our contracts was not appropriate based on the changing mix of our contracts, which include an increasing amount of engineered equipment, manufactured materials, and subcontracted services and materials. We further concluded that in our adoption of Topic 606 as of January 1, 2018, our determination of percentage-of-completion for our fixed-price and unit-rate contracts should have been based on total contract costs incurred to date compared to total estimated contact costs. We further concluded that material costs that are significant to a contract and do not reflect an accurate measure of project completion should be excluded from the determination of our contract progress, and revenue for such materials should only be recognized to the extent of costs incurred. Accordingly, during the fourth quarter 2018 we corrected our percentage-of-completion estimates for our fixed-price and unit-rate contracts to be based on total costs incurred to date compared to total estimated contract costs. As result of this correction, we reevaluated the required cumulative effect adjustment to retained earnings as of January 1, 2018 for the adoption impact of Topic 606. Based on this evaluation, we determined that the cumulative effect adjustment would have been $0.4 million , which we do not believe is material to our Financial Statements for 2018. Accordingly, no cumulative adjustment to retained earnings as of January 1, 2018 was recorded. We further evaluated the quarterly impacts to 2018 resulting from the correction during the fourth quarter 2018 and concluded that the impacts were not material to our quarterly Financial Statements. Additional Disclosures - Topic 606 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At December 31, 2018 and 2017, we had no deferred pre-contract costs. Other (Income) Expense, Net Other (income) expense, net, generally represents (gains) losses associated with the sale or disposition of property and equipment other than assets held for sale. Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets ("DTA(s)") if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. See Note 8 for further discussion of our income taxes and DTAs. Reclassifications We made the following reclassifications to prior periods presented in our Financial Statements to conform with our presentation for 2018 and at December 31, 2018: • Accrued contract losses of $7.6 million at December 31, 2017, were combined with contract liabilities on our Balance Sheet, and accrued contract losses was removed as a separate line item on our Balance Sheet. • Losses on the sale of assets held for sale of $0.3 million for 2017 were reclassified from other income (expense), net to asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations • Increase in accrued contract losses of $7.2 million for 2017 and a decrease in accrued contract losses of $9.1 million for 2016, were combined with changes in contract liabilities on our Statement of Cash Flows, and changes in accrued contract losses was removed as a separate line item on our Statement of Cash Flows. In addition to the above, other (income) expense, net on our Statement of Operations for 2017 and 2016 was previously presented as a separate line item outside of operating income (loss) but is now presented as a separate line item within operating income (loss). New Accounting Standards Revenue Recognition - In the first quarter 2018, we adopted Topic 606. See the "Revenue Recognition" section above and Note 2 for further discussion. Leases - In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheet but recognize expense in a manner similar to current guidance. ASU 2016-02 will be effective for us in the first quarter 2019. The new standard is required to be applied using a modified retrospective approach. Upon adoption, we will record a right of use asset and corresponding liability for our operating leases. We completed the evaluation of our significant lease contracts as of December 31, 2018 and expect adoption of this ASU will result in our recognition of a right of use asset and corresponding lease liability of approximately $4.0 million to $6.0 million as of January 1, 2019. Financial instruments - In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for us in the first quarter 2020. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS As discussed in Note 1, we recognize revenue for our contracts in accordance with Topic 606, which was adopted by us on January 1, 2018, and supersedes previous revenue recognition guidance, including industry-specific guidance. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our operating segments, disaggregated by contract type and timing of revenue recognition, for 2018 , 2017 and 2016 (in thousands): 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 37,943 $ 88,887 $ 38,612 $ 2,477 $ (2,414 ) $ 165,505 T&M (2) — 7,537 43,481 — — 51,018 Other — — 6,137 — (1,413 ) 4,724 Total $ 37,943 $ 96,424 $ 88,230 $ 2,477 $ (3,827 ) $ 221,247 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 57,880 $ 47,787 $ 28,465 $ 198 $ (5,096 ) $ 129,234 T&M (2) — 4,912 35,180 — — 40,092 Other — — 1,800 — (104 ) 1,696 Total $ 57,880 $ 52,699 $ 65,445 $ 198 $ (5,200 ) $ 171,022 2016 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 88,683 $ 95,958 $ 31,191 $ — $ (3,062 ) $ 212,770 T&M (2) 13,544 58,882 — — 72,426 Other — — 1,341 — (211 ) 1,130 Total $ 88,683 $ 109,502 $ 91,414 $ — $ (3,273 ) $ 286,326 ____________ (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. Our fabricated structures are used worldwide by U.S. customers operating abroad and by foreign customers. Revenue associated with fabricated structures for delivery outside the U.S. accounted 0% , 0% and 14% of our revenue for 2018 , 2017 and 2016 , respectively. Future Performance Obligations Required Under Contracts The following tables summarize the remaining revenue to be earned under performance obligations for the portion of contracts not yet completed as of December 31, 2018 (in thousands). Segment Performance Obligations at December 31, 2018 Fabrication $ 63,498 Shipyard (1) 259,644 Services 11,046 EPC 385 Total $ 334,573 _____________ (1) Amount excludes approximately $21.9 million of remaining performance obligations related to contracts for the construction of two MPSVs that are subject to dispute pursuant to a termination notice from our customer. See Note 11 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations in the following periods (in thousands): Year Total 2019 $ 233,987 2020 81,464 2021 19,122 Total $ 334,573 Contracts Assets and Liabilities Revenue recognition and customer invoicing for our fixed-price and unit-rate contracts may occur at different times. Revenue recognition is based upon our estimated percentage-of-completion as discussed in Note 1; however, customer invoicing is generally dependent upon predetermined billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or when services are provided. Revenue recognized in excess of amounts billed is reflected as contracts assets on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to uncompleted contracts at December 31, 2018 and 2017 is as follows (in thousands): December 31, 2018 2017 Costs incurred on uncompleted contracts $ 253,871 $ 266,902 Estimated profit (loss) earned to date (35,470 ) (26,954 ) Prepaid subcontractor costs 2,368 — Sub-total 220,769 239,948 Billings to date (190,588 ) (224,329 ) Deferred revenue (1) (4,592 ) — Total $ 25,589 $ 15,619 ______________ (1) Deferred revenue is included within other noncurrent assets as further discussed below. The above amounts are included in the accompanying Balance Sheet at December 31, 2018 and 2017 under the following captions (in thousands): December 31, 2018 2017 Contract assets $ 29,982 $ 28,373 Contract liabilities (1), (2), (3) (16,845 ) (12,754 ) Sub-total 13,137 15,619 Contract assets, noncurrent (1) 12,452 — Total $ 25,589 $ 15,619 ______________ (1) The increase in contract liabilities compared to December 31, 2017, was primarily due to advance payments for two separate projects in our Fabrication and Shipyard Divisions, offset partially by the reclassification of accrued contract losses (included within contract liabilities) to other noncurrent assets. The accrued contract losses relate to our MPSV projects that are subject to dispute. In addition to the accrued contract losses that were reclassified to other noncurrent assets, contract assets and deferred revenue for these projects were also reclassified to other noncurrent assets, resulting in a net contract asset balance of $12.5 million for these projects within other noncurrent assets on our Balance Sheet at December 31, 2018. See Note 11 for further discussion of the dispute. (2) Revenue recognized during 2018 related to amounts included in our contract liabilities balance at December 31, 2017, was $5.1 million . (3) Contract liabilities at December 31, 2018 and 2017, includes accrued contract losses of $2.4 million and $7.6 million , respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses. Significant Customers We are not dependent on any one customer, and the revenue derived from each customer varies from year to year based on new project awards for each customer. However, for 2018, 2017 and 2016, certain customers individually accounted for 10% or more of our consolidated revenue as follows (in thousands): December 31, Customer 2018 2017 2016 A $ 49,123 $ 21,781 * B 25,873 * * C 23,279 * * D * 44,724 * E * 65,981 _____________ * The customer revenue was less than 10% of consolidated revenue for the year. Allowance for Doubtful Accounts Our provision for bad debts for 2018 , 2017 and 2016 was $30,000 , $21,000 and $0.5 million , respectively. Our allowance for doubtful accounts at December 31, 2018 and 2017, was $0.4 million and $1.9 million , respectively. Our allowance at December 31, 2018 was primarily related to storage of a vessel for a customer within our Fabrication Division, and our allowance at December 31, 2017, was primarily related to work performed for an offshore drilling platform within our Fabrication Division which was fully reserved in 2016. Changes in Project Estimates Significant Changes in Project Estimates - The following summarizes our significant changes in estimated margins on our projects during 2018 , 2017 and 2016 . For 2018 , significant changes in estimated margins on projects resulted in an increase in our operating loss of $9.1 million ( $2.4 million for our petrochemical module project within our Fabrication Division and $6.7 million for our ten harbor tug projects within our Shipyard Division). • The changes in estimates for the petrochemical module project were the result of increased costs associated primarily with subcontracted work scopes. The project was complete as of December 31, 2018 . • The changes in estimates for the harbor tug projects were the result of increased forecast costs associated primarily with lower than anticipated craft labor productivity related to pipe installation and testing and extensions of schedule for the projects. The revised forecasts incorporate actual results obtained from the completion of the first harbor tug in the fourth quarter 2018 and the progress achieved on the second harbor tug which is scheduled for completion in the first quarter 2019. Our forecasts anticipate improved craft labor productivity with the completion of each subsequent vessel. The harbor tug projects were in a loss position at December 31, 2018 and our reserve for estimated losses on the projects totaled $2.1 million. The nine uncompleted vessels are scheduled to be completed at various dates ranging from the first quarter 2019 through 2020. If future craft labor productivity differs from our current estimates, we are unable to achieve our progress estimates, our schedules are further extended or the projects incur schedule liquidated damages, the projects would experience further losses. For 2017, significant changes in estimated margins on our two multi-purpose service vessel (“MPSV”) projects resulted in an increase in our operating loss of $34.5 million for our Shipyard Division. The changes in estimates were the result of increased forecast costs associated primarily with complexities related to the installation of the power and communications systems and reductions in project price of $11.2 million for liquidated damages (representing the maximum amount of liquidated damages under the contracts) which are in dispute. The projects were in a loss position at December 31, 2018 and 2017. We are currently in a dispute with the customer regarding the two MPSV projects. As a result of our dispute and uncertainty with respect to the timing of resolution, all contract assets, accrued contract losses, and deferred revenue balances associated with the projects have bee n reclassified to other noncurrent assets, resulting in a net contract asset balance of $12.5 million for these projects within other noncurrent assets on our Balance Sheet at December 31, 2018. See Note 11 for further discussion of the dispute. For 2016, individual projects with significant changes in estimated margins resulted in a decrease in our income from operations of $1.8 million . The changes in estimates were related to our Fabrication and Shipyard Divisions and the projects were complete as of December 31, 2018. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2018 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE A summary of our assets held for sale at December 31, 2018, is as follows (in thousands): Assets Fabrication Division Shipyard Division Total Machinery and equipment $ 25,882 $ 1,222 $ 27,104 Accumulated depreciation (7,871 ) (298 ) (8,169 ) Total assets held for sale $ 18,011 $ 924 $ 18,935 South Texas Properties and Fabrication Division Assets Held for Sale South Texas Properties - During the first quarter 2017, we classified our fabrication yards and certain associated equipment in Ingleside, Texas ("Texas South Yard") and Aransas Pass, Texas ("Texas North Yard") (collectively, "South Texas Properties") as held for sale. During 2018, we completed the sale of portions of the South Texas Properties, which consisted of the following: • The sale of certain equipment prior to the sale of the Texas South Yard and Texas North Yard for proceeds of $1.3 million , and a loss of approximately $0.3 million . • The sale of our Texas South Yard during the second quarter 2018 for $55.0 million , less selling costs of $1.2 million , for total net proceeds received during 2018 of $53.8 million and a gain of $3.9 million . • The sale of our Texas North Yard during the fourth quarter 2018 for $28.0 million , less selling costs of $0.6 million , for total net proceeds of $27.4 million during 2018 and a gain of $4.1 million . Remaining equipment from the Texas North Yard totaling $18.8 million was not included in the Texas North Yard sale, of which $0.8 million was placed back in use and reclassified to property, plant and equipment, net and $18.0 million continues to be held for sale ("Fabrication AHFS") at December 31, 2018. The Fabrication AHFS primarily consist of three 660-ton crawler cranes, a deck barge, two plate bending roll machines and panel line equipment, which were relocated to our fabrication yard in Houma, Louisiana. See "Impairments" section below for further discussion of the determination of the carrying value of the Fabrication AHFS. The gains and loss above resulted in a net gain of $7.7 million for 2018, and are included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. In addition to the above, during 2018 and 2017, additional activity occurred with respect the South Texas Properties prior to, or in connection with, their sale, which is summarized below. Hurricane Harvey Insurance Recoveries - During the third quarter 2017, buildings and equipment located at our South Texas Properties were damaged by Hurricane Harvey, and in connection therewith, during 2017 we received $6.0 million of insurance proceeds as an initial payment from our insurance carriers. We allocated the insurance recoveries as follows: • $1.3 million , which offset clean-up and repair related costs incurred directly related to the damage we incurred as a result of Hurricane Harvey, resulting in no net gain or loss; • $1.5 million , which offset impairments of two buildings which were determined to be a total loss as a result of Hurricane Harvey, resulting in no net gain or loss; and • $3.2 million , which was related to estimated future repairs associated with Hurricane Harvey and was included in accrued expenses and other liabilities on our Balance Sheet at December 31, 2017. During the second quarter 2018, we agreed to a global settlement with our insurance carriers for total insurance payments of $15.4 million (inclusive of the $6.0 million received during 2017), of which $9.4 million was received during 2018. In applying the settlement proceeds (which were inclusive of agreed upon deductibles), we allocated the additional recoveries and the liability accrued at December 31, 2017, as follows: • $9.0 million , which offset impairments of property and equipment, primarily at our Texas North Yard, resulting in no net gain or loss. Our evaluation considered the Texas North Yard as a single asset group given the sale of our Texas South Yard had been completed. The impairments were based upon our best estimate of the decline in fair value of the asset group as a result of Hurricane Harvey; and • $3.6 million gain, which is included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. Impairments - In addition to the impairments recorded in connection with our evaluation of the Hurricane Harvey impacts to the South Texas Properties, which were offset by insurance recoveries, during 2018 we recorded impairments of $1.4 million for certain equipment previously associated with the South Texas Properties prior to their sale but not sold through either the Texas South Yard or Texas North Yard transactions. The impairments are included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. Our impairments were based upon our best estimate of the fair value of the related equipment. Further, in connection with the sale of our Texas North Yard discussed above, and the separation of the assets sold from the Fabrication AHFS, we reevaluated the fair values of the Texas North Yard assets and the Fabrication AHFS, giving consideration to impairment amounts previously recorded in connection with the allocation of our insurance proceeds associated with Hurricane Harvey. Based on our assessment, during the third quarter 2018 we recaptured previously recorded impairments of the Texas North Yard assets and increased their carrying value. We also reduced the carrying value of the Fabrication AHFS based upon our estimates of fair value using level 3 inputs, including broker estimates of fair value. Our assessment resulted in the recapture of approximately $5.2 million of previously recorded impairments on the Texas North Yard assets, with a similar amount of impairment on the Fabrication AHFS, with no material net impact to our Statement of Operations. The aforementioned net gain on the sale of the Texas North Yard during the fourth quarter 2018 is based on its adjusted carrying value after the recapture of the previously recorded impairments. Other - We do not believe the sale of our South Texas Properties will impact our ability to operate our Fabrication Division. Further, the sale of our South Texas Properties do not qualify for discontinued operations presentation as we continue to operate our Fabrication Division at our fabrication yard in Houma, Louisiana. Shipyard Division Assets Held for Sale During 2017, we recorded impairments of $1.0 million associated with three drydocks within our Shipyard Division. Two of the drydocks were sold during 2017 for proceeds of $2.0 million and a loss of $0.3 million , and the remaining drydock was classified as held for sale at December 31, 2017 ("Shipyard AHFS"). During 2018, we recorded an additional impairment of $1.0 million for the Shipyard AHFS based on our best estimate of the fair value of the asset, and at December 31, 2018 our Shipyard AHFS totaled $0.9 million . The impairments and loss are included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. The Shipyard AHFS do not qualify for discontinued operations presentation. |
PROPERTY, PLANT AND EQUIPMENT A
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT Property, plant and equipment Property, plant and equipment consisted of the following at December 31, 2018 and 2017 (in thousands): December 31, Estimated Useful Life 2018 2017 (in Years) Land - $ 4,972 $ 4,972 Buildings 25 34,696 34,653 Machinery and equipment 3 to 25 132,155 141,704 Furniture and fixtures 3 to 5 2,497 4,450 Transportation equipment 3 to 5 2,627 2,667 Improvements 15 42,182 42,975 Construction in progress - 1,944 96 Total property, plant and equipment 221,073 231,517 Accumulated depreciation (141,143 ) (142,618 ) Property, plant and equipment, net $ 79,930 $ 88,899 Depreciation expense for 2018 , 2017 and 2016 , was $10.4 million , $12.9 million and $25.4 million , respectively. The reduction in depreciation expense for 2018 and 2017 is the result of classifying our South Texas Properties as assets held for sale during the first quarter of 2017, and suspending the recognition of depreciation expense for those assets. Leased Facilities and Equipment Lease expense for 2018 , 2017 and 2016 , was $1.9 million , $2.0 million and $2.5 million , respectively, related to our leased facilities and equipment. Our significant leases subject to long-term agreements are as follows: • Corporate office lease in Houston, Texas consisting of approximately 17,000 square feet of office space. The lease expires in May 2025 . • Shipyard five miles east of Jennings, Louisiana, consisting of an 180 -acre complex 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 expires in January 2025 with two , ten -year renewal options that allows us to extend the lease through January 2045. • Shipyard near Lake Charles, Louisiana, consisting of a ten -acre complex 17 miles from the GOM on the Calcasieu River, that we sublease from a third party. The sublease expires in July 2023 with three , five -year renewal options (subject to sublessor renewals), that allows us to extend the lease through July 2038. Future minimum payments under leases having initial terms of one year or more are as follows (in thousands): Minimum Payments 2019 $ 660 2020 672 2021 680 2022 578 2023 477 Thereafter 557 Total $ 3,624 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring fair value measurements and financial instruments - The carrying amounts of our financial instruments, including cash and cash equivalents, accounts receivables and accounts payables approximate their fair values. Long-lived assets - We had no indicators of impairment and recorded no impairments of long-lived asset during 2018 , 2017 and 2016 . Assets held for sale - During 2018 and 2017 , we recorded impairments of our assets held for sale of $2.4 million and $1.0 million , respectively, which are included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. See Note 3 for further discussion of our asset held for sale and associated impairments. Inventory - During 2018 and 2017, we recorded impairments of our inventory of $2.0 million and $6.7 million , respectively, which are included within asset impairments and (gain) loss on assets held for sale, net on our Statement of Operations. The impairments consisted of the following: • During 2018, we recorded an impairment of $82,000 related to pre-manufactured inventory in our Services Division to reduce its carrying value to its estimated net realizable value. • During 2017, we recorded an impairment of $3.7 million related to inventory in our Fabrication Division that was originally received in connection with a settlement with a vendor in 2014. The inventory consisted of specialty and high-grade copper nickel and steel materials as well as lower-grade carbon steel pipe and valve fittings. During 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 the lower-grade carbon steel pipe and valve fittings had deteriorated significantly due to exposure to the elements. As a result, we recorded an impairment to reduce the carrying value of the lower-grade inventory to scrap value and reduced the carrying value of the high-grade inventory to its estimated net realizable value based on its good condition. During 2018 , we recorded an additional impairment of $1.9 million for the high-grade inventory based on third party indications of value for the inventory, which reduced the carrying value of the inventory to its scrap value of $0.2 million . • During 2017, we recorded an impairment of $2.9 million related to inventory in our Fabrication Division that was originally received in connection with a settlement with a customer in 2013 related to a deepwater construction project. The inventory consisted of specialty piping and valves for which demand for the inventory was negatively impacted by the lack of offshore construction activity. As a result, we recorded an impairment to reduce the carrying value of the inventory to scrap value. The inventory impairments are included within asset impairments and gain (loss) on assets held for sale, net on our Statement of Operations. Other - 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. |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | INCOME (LOSS) PER COMMON SHARE The following table presents the computation of basic and diluted income (loss) per share (in thousands, except per share data): Years Ended December 31, 2018 2017 2016 Net income (loss) $ (20,378 ) $ (44,766 ) $ 3,515 Less: distributed and undistributed income (loss) from unvested restricted stock — 3 30 Net income (loss) attributable to common shareholders $ (20,378 ) $ (44,769 ) $ 3,485 Weighted average shares (1) 15,032 14,838 14,631 Basic and diluted income (loss) per common share $ (1.36 ) $ (3.02 ) $ 0.24 ______________ (1) We have no dilutive securities. |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | CREDIT FACILITIES Credit Agreement We have a $40.0 million revolving credit facility with Hancock Whitney Bank ("Credit Agreement") that can be used for borrowings or letters of credit. On August 27, 2018, we amended our Credit Agreement which, among other things, extended its maturity date to June 9, 2020. Our amended quarterly financial covenants during the remaining term of the Credit Agreement are as follows: • Ratio of current assets to current liabilities of not less than 1.25 :1.00; • Minimum tangible net worth of at least the sum of $180.0 million , plus 100% of the proceeds from any issuance of stock or other equity after deducting of any fees, commissions, expenses and other costs incurred in such offering; and • Ratio of funded debt to tangible net worth of not more than 0.50 :1.00. Our Credit Agreement also includes restrictions regarding our ability to: (i) grant liens; (ii) make certain loans or investments; (iii) incur additional indebtedness or guarantee other indebtedness in excess of specified levels; (iv) make any material change to the nature of our business or undergo a fundamental change; (v) make any material dispositions; (vi) acquire another company or all or substantially all of its assets; (vii) enter into a merger, consolidation, or sale leaseback transaction; or (viii) declare and pay dividends if any potential default or event of default occurs. Interest on borrowings under the Credit Agreement may be designated, at our option, as either the Wall Street Journal published Prime Rate ( 5.5% at December 31, 2018) or LIBOR ( 2.5% at December 31, 2018) plus 2.0% per annum. Commitment fees on the unused portion of the Credit Agreement are 0.4% per annum and interest on outstanding letters of credit is 2.0% per annum. The Credit Agreement is secured by substantially all of our assets (with a negative pledge on our real property). At December 31, 2018 , we had no outstanding borrowings under our Credit Agreement and $2.9 million of outstanding letters of credit to support our projects, providing $37.1 million of available capacity. At December 31, 2018 , we were in compliance with all of our financial covenants, with a tangible net worth of $199.2 million (as defined by the Credit Agreement), a ratio of current assets to current liabilities of 2.85 to 1.0 and a ratio of funded debt to tangible net worth of 0.01 :1.00. Surety Bonds We issue surety bonds in the ordinary course of business to support our projects. At December 31, 2018, we had $396.6 million of outstanding surety bonds to support our projects. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit for 2018 , 2017 and 2016 , is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Amount % Amount % Amount % U.S. statutory rate $ 4,159 21.0% $ 24,136 35.0% $ (1,945 ) 35.0% Increase (decrease) resulting from: Permanent differences (206 ) (1.0)% (330 ) 0.5% (64 ) 1.1% State income taxes (571 ) (2.9)% 366 (0.5)% (32 ) 0.6% Other 374 1.9% (118 ) 0.2% — —% Discrete items Vesting of common stock (19 ) (0.1)% (253 ) 0.4% — —% Change in valuation allowance (4,308 ) (21.7)% 392 (0.5)% — —% Income tax (expense) benefit $ (571 ) (2.8)% $ 24,193 35.1% $ (2,041 ) 36.7% Income Tax (Expense) Benefit - Significant components of our income tax (expense) benefit for 2018 , 2017 and 2016 , were as follows (in thousands): Years Ended December 31, 2018 2017 2016 Current Federal $ — $ — $ (302 ) State (317 ) (83 ) (361 ) Total current (317 ) (83 ) (663 ) Deferred Federal 3,410 24,219 (1,549 ) State 644 449 171 Valuation allowance (4,308 ) (392 ) — Total deferred (254 ) 24,276 (1,378 ) Income tax (expense) benefit $ (571 ) $ 24,193 $ (2,041 ) Deferred Taxes - Significant components of our deferred tax assets and liabilities at December 31, 2018 and 2017 , were as follows (in thousands): December 31, 2018 2017 Deferred tax assets Employee benefits $ 758 $ 962 Uncompleted contracts 2,380 2,664 Stock based compensation expense 266 350 Allowance for doubtful accounts 84 99 Long-term incentive awards 150 280 Federal net operating losses 9,962 13,190 State net operating losses 1,155 511 Other 395 394 Total deferred tax assets 15,150 18,450 Deferred tax liabilities Property, plant and equipment (10,199 ) (17,605 ) Prepaid insurance (450 ) (453 ) Total deferred tax liabilities (10,649 ) (18,058 ) Net deferred tax assets 4,501 392 Valuation allowance (4,701 ) (392 ) Net deferred taxes (1) $ (200 ) $ — ______________ (1) Amounts are included in other noncurrent liabilities on our Balance Sheet. At December 31, 2018 and 2017, we had total DTAs of $15.2 million and $18.5 million , respectively (including U.S. federal net operating loss(es) ("NOL(s)") DTAs of $10.0 million and $13.2 million , respectively). On a periodic and ongoing basis we evaluate our DTAs (including our NOL DTAs) and assess the appropriateness of our valuation allowance(s) ("VA(s)"). In assessing the need for a VA, we consider both positive and negative evidence related to the likelihood of realizing our DTAs. If, based upon the available evidence, our assessment indicates that it is more likely than not that some or all of the DTAs will not be realized, we record a VA. Our assessments include, among other things, the amount of taxable temporary differences that will result in future taxable income, the value and quality of our backlog, evaluations of existing and anticipated market conditions, analysis of recent and historical operating results (including cumulative losses over multiple periods) and projections of future results and strategic plans, as well as asset expiration dates. As a result of our assessment and due to cumulative losses for the three years ended December 31, 2018, we believe the negative evidence outweighs the positive evidence with respect to our ability to realize our U.S. federal NOL DTAs, and accordingly, at December 31, 2018 and 2017 , we had VAs of $4.7 million and $0.4 million , respectively, offsetting our total DTAs. At December 31, 2018 , we had gross U.S. federal NOL carryforwards (excluding VAs) of $47.4 million , which will expire in 2037, and we had gross state NOL carryforwards (excluding VAs) of $24.5 million , which will expire in 2035 through 2038. Uncertain Tax Positions - Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. Tax returns subject to examination by the U.S. Internal Revenue Service are open for years after 2014. At December 31, 2018 and 2017, we had no material reserves for uncertain tax positions. Tax Cuts and Jobs Act - In December 2017, the Tax Cuts and Jobs Act was signed into law which, among other things, reduced the U.S. federal corporate income tax rate from a maximum of 35.0% to 21.0% (effective January 1, 2018). As a result, in accordance with Staff Accounting Bulletin 118, during 2017 we recorded provisional amounts related to the impacts of the Tax Cuts and Jobs Act. Such impacts were immaterial to our deferred tax position at December 31, 2017. During 2018, we filed our 2017 U.S. federal tax return and applicable state tax returns, which did not result in any material adjustment to the provisional amounts we recorded during 2017. |
RETIREMENT AND LONG-TERM INCENT
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
RETIREMENT AND LONG-TERM INCENTIVE PLANS | RETIREMENT AND LONG-TERM INCENTIVE PLANS Defined Contribution Plan We sponsor a defined contribution plan for eligible employees that is qualified under Section 401(k) of the Internal Revenue Code, which includes voluntary employee pre-tax contributions and a Company matching contribution, with potential additional discretionary contributions determined by the Board of Directors. Effective April 1, 2016, we temporarily suspended our matching contribution in response to the downturn in the oil and gas industry. For 2018, 2017 and 2016, we contributed $0 , $0 , and $0.7 million , respectively, to the plan. Long-Term Incentive Plans Under our long-term incentive plans ("Incentive Plans"), the Compensation Committee of our Board of Directors may grant equity-based awards to eligible employees and non-employee directors, including restricted stock and restricted stock units, stock options and stock-based performance awards. The Compensation Committee determines the number of shares or stock options subject to each award, as well as the terms, conditions, performance measures, and other provisions of the award. A summary of our Incentive Plans, and the number of shares of our common stock that may be issued under each plan, is as follows: • Long-Term Incentive Plan (approved on February 13, 1997) - 1,000,000 shares; • 2002 Long-Term Incentive Plan (approved on April 24, 2002, and amended on April 26, 2006) - 500,000 shares; • 2011 Stock Incentive Plan (approved on April 28, 2011) - 500,000 shares; and • 2015 Stock Incentive Plan (approved on April 23,2015) - 1,000,000 shares. At December 31, 2018 , we had 527,357 aggregate shares available for future issuance under our Incentive Plans. We issue new shares through our transfer agent in connection with issuances under the Incentive Plans. Restricted Stock and Stock Option Awards - Restricted stock awards represent shares of restricted stock and restricted stock units and are subject to transfer restrictions, forfeit provisions and other terms and conditions of the Incentive Plans. Restricted stock awards to our employees generally have a three -year graded vesting period and awards to our non-employee directors vest over a six -month period. The total initial fair value for these awards is determined based upon the closing price of our stock (typically subject to a minimum price) on the date of grant applied to the total number of shares that we anticipate will vest. The fair value is expensed on a straight-line basis over the applicable vesting period. A summary of activity for our restricted stock awards for 2018 , 2017 and 2016 is as follows: Years Ended December 31, 2018 2017 2016 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, beginning of period 445,126 $ 12.83 370,565 $ 12.99 262,964 $ 18.33 Granted 440,185 11.16 383,121 13.02 259,699 8.55 Vested (250,219 ) 10.93 (215,478 ) 12.52 (114,804 ) 14.37 Forfeited (108,654 ) 12.01 (93,082 ) 12.53 (37,294 ) 15.48 Restricted shares, end of period 526,438 11.56 445,126 12.83 370,565 12.99 Compensation expense for our restricted stock awards was $2.8 million , $2.7 million and $3.1 million for 2018 , 2017 and 2016 , respectively. The total income tax benefit (expense) recognized for our share-based compensation arrangements was $19,000 , $0.3 million and $0 for 2018 , 2017 and 2016 , respectively. At December 31, 2018 , we had $3.4 million of unrecognized compensation expense related to our restricted stock awards. This cost is expected to be recognized over a weighted-average period of two years. The total fair value of restricted stock awards granted during 2018 was $4.9 million and the total fair value of restricted stock awards that vested during 2018 was $2.7 million . At December 31, 2018 we had no outstanding stock option awards and no stock option awards were made during 2018, 2017 or 2016. Performance Awards - Stock-based performance awards represent awards that are settled in cash and for which the amount payable is determined based upon our total shareholder return during the performance period compared to an industry peer group as determined by our Compensation Committee. The awards have a three -year performance period with grants outstanding for 2016, 2017 and 2018 having performance periods ending December 31, 2018, 2019, and 2020, respectively. The cash payment occurs in the period immediately following the completion of the performance period. The fair value of the awards is calculated each reporting period and is expensed on a straight-line basis over the applicable performance period, with cumulative adjustments for changes in the fair value between reporting periods. Compensation expense for our stock-based performance awards was $1.1 million , $1.5 million and $1.3 million for 2018 , 2017 and 2016 , respectively. The total fair value of stock-based performance awards granted during 2018 , 2017 and 2016 was $3.8 million , $4.7 million and $1.6 million , respectively, as determined using a Monte Carlo simulation model. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On January 1, 2016, we acquired substantially all of the assets and assumed certain liabilities of LEEVAC Shipyards, L.L.C. and its affiliates for a purchase price of $20.0 million , subject to a working capital adjustment whereby we received a dollar-for-dollar reduction for the assumption of certain net liabilities of the seller and settlement payments applied from sureties on certain ongoing 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. In connection with the transaction, we acquired approximately $121.2 million of backlog, inclusive of approximately $9.2 million of fair value adjustments and seller reimbursements allocated to four newbuild construction projects for two customers. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are subject to various routine legal proceedings in the normal conduct of our business, primarily involving commercial disputes and claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, we believe that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on our financial position, results of operations or cash flows. MPSV Termination Letter We received notices of termination of the contracts for the construction of two MPSVs from one of our Shipyard Division customers. We dispute the purported terminations and disagree with the customer’s reasons for such terminations. Pending the resolution of the dispute, we have ceased all work and the partially completed MPSVs and associated equipment and materials remain at our shipyard in Houma, Louisiana. The customer also notified our Surety of its purported terminations of the construction contracts and made claims under the bonds issued by the Surety in connection with the construction of the two MPSVs. We have notified and met with our Surety regarding our disagreement with, and objection to, the customer's purported termination and its claims. Discussions with the Surety are ongoing. On October 2, 2018, we filed a lawsuit against the customer to enforce our rights and remedies under the applicable construction contracts. Our lawsuit disputes the propriety of the customer’s purported termination of the construction contracts and seeks to recover damages associated with the customer’s actions. The customer filed its response to our lawsuit denying many of the allegations in the lawsuit and asserting a counterclaim against us seeking, among other things, declaratory judgment as to the validity of the customer’s purported terminations of the construction contracts and other purported claims for which the customer is seeking damages in an unspecified amount. We have filed a response to the counterclaim denying all of the customer’s claims. Subsequent to December 31, 2018, the customer filed a motion with the court seeking, among other things, to obtain possession of the two MPSVs. We intend to respond to the motion at the appropriate time. We are unable to estimate the probability of a favorable or unfavorable outcome with respect to the dispute or estimate the amount of potential loss, if any, related to this matter. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contracts and defend against the customer’s claims. At December 31, 2018, other noncurrent assets on our Balance Sheet included a net contract asset of $12.5 million , which consisted of our contract asset, accrued contract losses, and deferred revenue balances at the time of the customer's purported termination of the contracts. Insurance We may be exposed to future losses through our use of deductibles and self-insured retentions for our exposures related to third party liability and workers' compensation. We expect liabilities in excess of any deductibles and self-insured retentions to be covered by insurance. To the extent we are self-insured, reserves are recorded based upon our estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change. Letters of Credit and Surety Bonds We obtain letters of credit under our Credit Agreement or surety bonds from financial institutions to provide to our customers in order to secure advance payments or guarantee performance under our contracts, or in lieu of retention being withheld on our contracts. With respect to a letter of credit under our Credit Agreement, any advance payment in the event of non-performance under a contract would become a borrowing under our Credit Agreement and thus a direct obligation. With respect to a surety bond, any advance payment in the event of non-performance is subject to indemnification of the surety by us, which may require us to borrow under our Credit Agreement. When a contract is complete, the contingent obligation terminates and letters of credit or surety bonds are returned. See Note 7 for further discussion of our Credit Agreement and surety bonds. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries, that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances which currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our financial condition, results of operations or cash flow. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS We operate and manage our business through four operating divisions ("Fabrication", "Shipyard", "Services" and "EPC") and one non-operating division ("Corporate"), which represent our reportable segments.We believe that our operating divisions each meet the criteria of reportable segments under GAAP. Our four operating divisions and Corporate Division are discussed below. Fabrication Division - Our Fabrication Division fabricates modules for petrochemical and industrial facilities, foundations for alternative energy developments and other complex steel structures. Our Fabrication Division also fabricates offshore drilling and production platforms and other offshore structures for customers in the oil and gas industry, including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms (such as TLPs, SPARs, FPSOs and MinDOCs), piles, wellhead protectors, subsea templates, and various production, compressor, and utility modules along with pressure vessels. We perform these activities at our fabrication yard in Houma, Louisiana. Shipyard Division - Our Shipyard Division fabricates newbuild vessels, including OSVs, MPSVs, research vessels, tug boats, salvage vessels, towboats, barges, drydocks, anchor handling vessels, lift boats and other marine vessels. Our Shipyard Division also performs marine repair activities, including steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning. In addition, we perform conversion projects that consist of lengthening vessels, modifying vessels to permit their use for a different type of activity, and other modifications to enhance the capacity or functionality of a vessel. We perform these activities at our shipyards in Houma, Jennings and Lake Charles, Louisiana. Services Division - Our Services Division provides interconnect piping 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, we fabricate 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 at our services yard in Houma, Louisiana. EPC Division - Our EPC Division was created during the fourth quarter 2017 to manage potential work for the SeaOne Project, offshore wind opportunities and other projects that may require project management of EPC activities. During the fourth quarter 2017, SeaOne selected us as the prime contractor for the engineering, procurement, construction, installation, commissioning and start-up operations for its SeaOne Project. This project is expected to consist of an export facility in Gulfport, Mississippi and import facilities in the Caribbean and South America. Our current activities include pricing, planning and scheduling for the project. SeaOne’s selection of the Company is non-binding and commencement of the project remains subject to a number of conditions, including agreement on terms of the engagement with SeaOne. We understand that SeaOne is in the process of securing financing for the project. Corporate Division - Our Corporate Division represents expenses that do not directly relate to our four operating divisions and are not allocated to our operating divisions. Such expenses include, but are not limited to, costs related to executive management and directors' fees, clerical and administrative salaries, costs of maintaining our corporate office and costs associated with overall governance and being a publicly traded company. We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of and for the three-year period ended December 31, 2018 , is as follows (in thousands): 2018 Fabrication (1) Shipyard (1) Services EPC Corporate Eliminations Consolidated Revenue $ 37,943 $ 96,424 $ 88,230 $ 2,477 $ — $ (3,827 ) $ 221,247 Gross profit (loss) (7,794 ) (10,472 ) 12,447 (46 ) (1,331 ) — (7,196 ) Operating income (loss) (2,950 ) (14,396 ) 9,371 (1,863 ) (9,827 ) — (19,665 ) Depreciation expense 4,310 4,229 1,511 5 295 — 10,350 Capital expenditures 73 2,003 1,244 143 18 — 3,481 Total Assets 62,138 97,197 38,643 1,938 58,374 — 258,290 2017 Fabrication Shipyard (2) Services EPC Corporate Eliminations Consolidated Revenue $ 57,880 $ 52,699 $ 65,445 $ 198 $ — $ (5,200 ) $ 171,022 Gross profit (loss) (1,941 ) (44,870 ) 4,575 41 (730 ) — (42,925 ) Operating income (loss) (12,010 ) (50,044 ) 1,874 41 (8,471 ) — (68,610 ) Depreciation expense 6,592 4,073 1,676 — 404 — 12,745 Capital expenditures 2,395 1,909 403 — 127 — 4,834 Total Assets 155,731 74,516 32,487 198 7,908 — 270,840 2016 Fabrication Shipyard Services EPC Corporate 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) 2,009 2,436 9,217 — (7,798 ) — 5,864 Depreciation expense 18,566 4,686 1,775 — 421 — 25,448 Capital expenditures 2,633 1,861 1,495 — 806 — 6,795 Total Assets 195,901 81,928 37,102 — 7,477 — 322,408 _______________ (1) Gross loss and operating loss for 2018 for our Fabrication Division includes a $2.4 million impact from increased costs on a petrochemical module project and our Shipyard Division includes a $6.7 million impact from increased forecast costs on our harbor tug projects. Operating loss also includes a net benefit of $6.9 million related to a gain on the sale of our South Texas Properties of $8.0 million and a gain on insurance recoveries of $3.6 million , offset partially by impairments of $4.4 million related to inventory and assets that were held for sale and a loss on assets sold of $0.3 million within our Fabrication and Shipyard Divisions. See Note 2 for further discussion of the project charges and Note 3 and Note 5 for further discussion of our asset impairments and gains on assets held for sale. (2) Gross loss and operating loss for 2017 for our Shipyard Division includes a $34.5 million impact from increased forecast costs on our MPSV projects. See Note 2 for further discussion of the MPSV projects. |
QUARTERLY OPERATING RESULTS (UN
QUARTERLY OPERATING RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY OPERATING RESULTS (UNAUDITED) | QUARTERLY OPERATING RESULTS (UNAUDITED) The following table presents selected unaudited consolidated financial information on a quarterly basis for 2018 and 2017 (in thousands, except per share data): March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (1) Revenue $ 57,290 $ 54,014 $ 49,712 $ 60,231 Gross profit (loss) 679 (699 ) (3,212 ) (3,964 ) Net income (loss) (5,296 ) 549 (10,949 ) (4,682 ) Basic and diluted EPS (0.36 ) 0.04 (0.73 ) (0.31 ) March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (2) Revenue $ 37,993 $ 45,868 $ 49,884 $ 37,277 Gross loss (4,897 ) (11,620 ) (494 ) (25,914 ) Net loss (6,454 ) (10,923 ) (3,110 ) (24,279 ) Basic and diluted EPS (0.45 ) (0.73 ) (0.21 ) (1.63 ) ______________ (1) Gross loss and net loss for the fourth quarter 2018 was primarily due to under recovery of our overhead costs within our Fabrication Division and a $5.8 million impact from increased forecast costs on our harbor tug projects within our Shipyard Division. See Note 2 for further discussion of these projects. Net loss benefited from the reversal of a bad debt reserve of $2.8 million established during the third quarter 2018 for a receivable that was collected during the fourth quarter 2018. Net loss also includes a $4.1 million gain on the sale of our Texas North Yard, offset partially by impairments of $3.0 million . (2) Gross loss for the fourth quarter 2017 includes a $34.5 million impact from increased forecast costs on our MPSV projects within our Shipyard Division. See Note 2 for further discussion of the MPSV projects. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Gulf Island Fabrication, Inc. ("Gulf Island"), together with its subsidiaries ("the Company," "we," "us" and "our"), is a leading fabricator of complex steel structures, modules and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation, alternative energy and shipping and marine transportation operations. We also provide project management for engineering, procurement and construction ("EPC") projects along with installation, hookup, commissioning, and repair and maintenance services. In addition, we perform civil, drainage and other work for state and local governments. Our customers include United States ("U.S.") and, to a lesser extent, international energy producers; petrochemical, industrial, power and marine operators; EPC companies; and certain agencies of the U.S. government. We operate and manage our business through four operating divisions ("Fabrication", "Shipyard", "Services" and "EPC") and one non-operating division ("Corporate"), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana. Significant projects in our backlog include the expansion of a paddle wheel riverboat, the construction of nine remaining harbor tug vessels, two offshore regional class marine research vessels (with a customer option for a third vessel), two vehicle ferries, two towboats, an ice-breaker tug, and a towing, salvage and rescue ship for the U.S. Navy (with customer options for seven additional vessels). Recently completed projects include the fabrication of complex modules for a newbuild petrochemical facility and construction of two technologically-advanced OSVs, and a harbor tug vessel. Previous projects also include the fabrication of wind turbine foundations for the first offshore wind project in the U.S., and construction of two of the largest liftboats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM, and the first single point anchor reservoir ("SPAR") hull fabricated in the U.S. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements ("Financial Statements") have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") and accounting principles generally accepted in the U.S. ("GAAP"). The Financial Statements reflect all majority owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Certain balances at December 31, 2017 , have been reclassified within our Consolidated Balance Sheets ("Balance Sheet") to conform to our presentation at December 31, 2018 , and certain amounts for 2017 and 2016 have been reclassified within our Consolidated Statements of Operations ("Statement of Operations") to conform to our presentation for 2018 . See below for further discussion of the reclassification of certain balances for prior years. |
Business Outlook | Business Outlook We continue to strategically position the Company to participate in the fabrication of petrochemical and industrial facilities, pursue offshore wind opportunities, enter the EPC industry, and diversify our customer base within all our operating divisions. In addition, we continue to focus on maintaining our liquidity and securing meaningful new project awards and backlog in the near-term, and generating operating income and cash flows from operations in the longer-term. We have made significant progress in our efforts to increase our backlog and improve and preserve our liquidity, including ongoing cost reductions (including reducing the cash compensation paid to our directors and the salaries of our executive officers) and the sale of underutilized assets. See Note 3 for further discussion of our recent asset sales and assets held for sale at December 31, 2018 . We believe our cash, cash equivalents, short-term investments and availability under our Credit Agreement (defined in Note 7), will be sufficient to enable us to fund our operating expenses, meet our working capital and capital expenditure requirements, and satisfy any debt service obligations or other funding requirements, for at least twelve months from the filing date of this Report. |
Operating Cycle | Operating Cycle The durations of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets, deferred revenue and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims, and liquidated damages; fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; determination of deferred income tax assets, liabilities and related valuation allowances; reserves for bad debts; and liabilities related to self-insurance programs. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. |
Earnings Per Share | Earnings Per Share We report basic and diluted earnings per share ("EPS") using the "two-class" method as required under GAAP. The calculation of EPS using the two-class method is required when a company has two or more classes of common stock or participating securities. Certain of our unvested restricted stock (which are not included in our basic or diluted weighted average shares outstanding) contain the right to receive non-refundable dividends and therefore represent participating securities. See Note 6 for calculations of our basic and diluted EPS. |
Cash Equivalents | Cash Equivalents We consider investments with original maturities of three months or less when purchased to be cash equivalents. |
Inventory | Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. See Note 5 for further discussion of our inventory. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In the normal course of business we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectibility and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. Our customer base historically includes a significant number of energy related companies and their contractors. This concentration of customers in the energy sector 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. See Note 2 for further discussion of our allowance for doubtful accounts. |
Stock-Based Compensation | Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value based measurement method. 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. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense in our Statement of Operations. See Note 9 for further discussion of our stock-based and other compensation plans. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity in our Consolidated Statement of Cash Flows ("Statement of Cash Flows"). |
Assets Held for Sale | Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 3 for further discussion of our assets held for sale. |
Depreciation Expense | Depreciation Expense We depreciate property, plant and equipment on a straight-line basis over estimated useful lives ranging from three to 25 years , absent any indicators of impairment. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. See Note 4 for further discussion of our property, plant and equipment. |
Long-Lived Assets | Long-Lived Assets We review long-lived assets for impairment, which include property, plant and equipment and finite-lived intangible assets included within other assets, when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, the estimated future undiscounted cash flow associated with the assets or asset groups are compared to their respective carrying amounts to determine if an impairment exists. 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 assets or asset groups. Fair value is determined based on discounted cash flows, appraised values or third party indications of value, as appropriate. See Note 5 for further discussion of impairments recorded for our long-lived assets. |
Fair Value Measurements | Fair Value Measurements Our fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 - inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 - inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 - inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. See Note 5 for additional discussion of our fair value measurements. |
Revenue Recognition | Revenue Recognition General - Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue for our contracts in accordance with Accounting Standards Update ("ASU") 2014-09, Topic 606 “Revenue from Contracts with Customers” ("Topic 606"), which was adopted by us on January 1, 2018, and supersedes previous revenue recognition guidance, including industry-specific guidance. Accordingly, the reported results for 2018 reflect the application of Topic 606 guidance, while the comparable results for 2017 and 2016 were prepared under previous revenue recognition guidance. See further discussion of our adoption of Topic 606 below. Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts - Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method (an input method), based on contract costs incurred to date compared to total estimated contract costs. Contract costs include direct costs, such as materials and labor, and indirect costs that are attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Prior to our adoption of Topic 606, revenue for our fixed-price and unit-rate contracts was recognized using the percentage-of-completion method, based on the percentage of direct labor hours incurred to date compared to total estimated direct labor hours, and revenue for materials was recognized only to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: costs of engineering, materials, components, equipment, labor and subcontracts; labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. T&M Contracts - Revenue for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. Our T&M contracts provide for labor and materials to be billed at rates specified within the contract. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Our current revenue recognition method for T&M contracts is consistent with the method used prior to adoption of Topic 606. Variable Consideration - Revenue and gross profit for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims, incentives, and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed and delivery occurs. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. For 2018 , 2017 , and 2016 , we had no material amounts in revenue related to unapproved change orders, claims, or incentives. However, at December 31, 2018 and 2017 , certain projects in our Shipyard Division reflected a reduction to our estimated contract price for liquidated damages of $11.2 million and $11.7 million , respectively. The reductions in contract price were recorded during 2017. Adoption of Topic 606 - As discussed above, on January 1, 2018 we adopted Topic 606. Our adoption of Topic 606 included a detailed review of our significant contracts that were not substantially complete as of January 1, 2018. Based on our review, we determined that Topic 606 did not impact the timing or method of revenue recognition for our T&M contracts. We also concluded that the continued use of the percentage-of-completion method was appropriate for our fixed-price and unit-rate contracts given ownership and control of the work transfers to our customers as the work is performed. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of the project, in the event our customers discontinue work, they are required to compensate us for the work performed to date. Prior to our adoption of Topic 606, our determination of percentage-of-completion for our contracts was based on the percentage of direct labor hours incurred to date compared to total estimated direct labor hours, and revenue for materials was recognized only to the extent of costs incurred. However, in our adoption of Topic 606, we adjusted our measure of progress for the determination of percentage-of-completion to include subcontract labor hours in addition to direct labor hours. The impact of this change was not material to our Financial Statements and no cumulative effect adjustment to retained earnings as of January 1, 2018 was recorded (based on the application of the modified retrospective method under Topic 606). During the fourth quarter 2018, we concluded that the use of labor hours for the determination of percentage-of-completion for our contracts was not appropriate based on the changing mix of our contracts, which include an increasing amount of engineered equipment, manufactured materials, and subcontracted services and materials. We further concluded that in our adoption of Topic 606 as of January 1, 2018, our determination of percentage-of-completion for our fixed-price and unit-rate contracts should have been based on total contract costs incurred to date compared to total estimated contact costs. We further concluded that material costs that are significant to a contract and do not reflect an accurate measure of project completion should be excluded from the determination of our contract progress, and revenue for such materials should only be recognized to the extent of costs incurred. Accordingly, during the fourth quarter 2018 we corrected our percentage-of-completion estimates for our fixed-price and unit-rate contracts to be based on total costs incurred to date compared to total estimated contract costs. As result of this correction, we reevaluated the required cumulative effect adjustment to retained earnings as of January 1, 2018 for the adoption impact of Topic 606. Based on this evaluation, we determined that the cumulative effect adjustment would have been $0.4 million , which we do not believe is material to our Financial Statements for 2018. Accordingly, no cumulative adjustment to retained earnings as of January 1, 2018 was recorded. We further evaluated the quarterly impacts to 2018 resulting from the correction during the fourth quarter 2018 and concluded that the impacts were not material to our quarterly Financial Statements. Additional Disclosures - Topic 606 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At December 31, 2018 and 2017, we had no deferred pre-contract costs. |
Income Taxes | Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to changing tax laws, significant judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets ("DTA(s)") if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. See Note 8 for further discussion of our income taxes and DTAs. |
New Accounting Standards | New Accounting Standards Revenue Recognition - In the first quarter 2018, we adopted Topic 606. See the "Revenue Recognition" section above and Note 2 for further discussion. Leases - In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to record most leases on their balance sheet but recognize expense in a manner similar to current guidance. ASU 2016-02 will be effective for us in the first quarter 2019. The new standard is required to be applied using a modified retrospective approach. Upon adoption, we will record a right of use asset and corresponding liability for our operating leases. We completed the evaluation of our significant lease contracts as of December 31, 2018 and expect adoption of this ASU will result in our recognition of a right of use asset and corresponding lease liability of approximately $4.0 million to $6.0 million as of January 1, 2019. Financial instruments - In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for us in the first quarter 2020. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to be applied using a cumulative-effect transition method. We are currently evaluating the effect that ASU 2016-13 will have on our financial position, results of operations and related disclosures. |
REVENUE, CONTRACT ASSETS AND _2
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue for each of our operating segments, disaggregated by contract type and timing of revenue recognition, for 2018 , 2017 and 2016 (in thousands): 2018 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 37,943 $ 88,887 $ 38,612 $ 2,477 $ (2,414 ) $ 165,505 T&M (2) — 7,537 43,481 — — 51,018 Other — — 6,137 — (1,413 ) 4,724 Total $ 37,943 $ 96,424 $ 88,230 $ 2,477 $ (3,827 ) $ 221,247 2017 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 57,880 $ 47,787 $ 28,465 $ 198 $ (5,096 ) $ 129,234 T&M (2) — 4,912 35,180 — — 40,092 Other — — 1,800 — (104 ) 1,696 Total $ 57,880 $ 52,699 $ 65,445 $ 198 $ (5,200 ) $ 171,022 2016 Fabrication Shipyard Services EPC Eliminations Total Contract Type Fixed-price and unit-rate (1) $ 88,683 $ 95,958 $ 31,191 $ — $ (3,062 ) $ 212,770 T&M (2) 13,544 58,882 — — 72,426 Other — — 1,341 — (211 ) 1,130 Total $ 88,683 $ 109,502 $ 91,414 $ — $ (3,273 ) $ 286,326 ____________ (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. |
Revenue, Remaining Performance Obligation | The following tables summarize the remaining revenue to be earned under performance obligations for the portion of contracts not yet completed as of December 31, 2018 (in thousands). Segment Performance Obligations at December 31, 2018 Fabrication $ 63,498 Shipyard (1) 259,644 Services 11,046 EPC 385 Total $ 334,573 _____________ (1) Amount excludes approximately $21.9 million of remaining performance obligations related to contracts for the construction of two MPSVs that are subject to dispute pursuant to a termination notice from our customer. See Note 11 for further discussion of these contracts. We expect to recognize revenue for our remaining performance obligations in the following periods (in thousands): Year Total 2019 $ 233,987 2020 81,464 2021 19,122 Total $ 334,573 |
Contract with Customer, Asset and Liability | Information with respect to uncompleted contracts at December 31, 2018 and 2017 is as follows (in thousands): December 31, 2018 2017 Costs incurred on uncompleted contracts $ 253,871 $ 266,902 Estimated profit (loss) earned to date (35,470 ) (26,954 ) Prepaid subcontractor costs 2,368 — Sub-total 220,769 239,948 Billings to date (190,588 ) (224,329 ) Deferred revenue (1) (4,592 ) — Total $ 25,589 $ 15,619 ______________ (1) Deferred revenue is included within other noncurrent assets as further discussed below. The above amounts are included in the accompanying Balance Sheet at December 31, 2018 and 2017 under the following captions (in thousands): December 31, 2018 2017 Contract assets $ 29,982 $ 28,373 Contract liabilities (1), (2), (3) (16,845 ) (12,754 ) Sub-total 13,137 15,619 Contract assets, noncurrent (1) 12,452 — Total $ 25,589 $ 15,619 ______________ (1) The increase in contract liabilities compared to December 31, 2017, was primarily due to advance payments for two separate projects in our Fabrication and Shipyard Divisions, offset partially by the reclassification of accrued contract losses (included within contract liabilities) to other noncurrent assets. The accrued contract losses relate to our MPSV projects that are subject to dispute. In addition to the accrued contract losses that were reclassified to other noncurrent assets, contract assets and deferred revenue for these projects were also reclassified to other noncurrent assets, resulting in a net contract asset balance of $12.5 million for these projects within other noncurrent assets on our Balance Sheet at December 31, 2018. See Note 11 for further discussion of the dispute. (2) Revenue recognized during 2018 related to amounts included in our contract liabilities balance at December 31, 2017, was $5.1 million . (3) Contract liabilities at December 31, 2018 and 2017, includes accrued contract losses of $2.4 million and $7.6 million , respectively. See "Project Changes in Estimates" below for further discussion of our accrued contract losses. |
Schedules of Concentration of Risk, by Risk Factor | However, for 2018, 2017 and 2016, certain customers individually accounted for 10% or more of our consolidated revenue as follows (in thousands): December 31, Customer 2018 2017 2016 A $ 49,123 $ 21,781 * B 25,873 * * C 23,279 * * D * 44,724 * E * 65,981 _____________ * The customer revenue was less than 10% of consolidated revenue for the year. |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Significant Assets Included in Assets Held for Sale | A summary of our assets held for sale at December 31, 2018, is as follows (in thousands): Assets Fabrication Division Shipyard Division Total Machinery and equipment $ 25,882 $ 1,222 $ 27,104 Accumulated depreciation (7,871 ) (298 ) (8,169 ) Total assets held for sale $ 18,011 $ 924 $ 18,935 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, 2018 and 2017 (in thousands): December 31, Estimated Useful Life 2018 2017 (in Years) Land - $ 4,972 $ 4,972 Buildings 25 34,696 34,653 Machinery and equipment 3 to 25 132,155 141,704 Furniture and fixtures 3 to 5 2,497 4,450 Transportation equipment 3 to 5 2,627 2,667 Improvements 15 42,182 42,975 Construction in progress - 1,944 96 Total property, plant and equipment 221,073 231,517 Accumulated depreciation (141,143 ) (142,618 ) Property, plant and equipment, net $ 79,930 $ 88,899 |
Schedule of Minimum Rental Payments | Future minimum payments under leases having initial terms of one year or more are as follows (in thousands): Minimum Payments 2019 $ 660 2020 672 2021 680 2022 578 2023 477 Thereafter 557 Total $ 3,624 |
INCOME (LOSS) PER COMMON SHARE
INCOME (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted income (loss) per share (in thousands, except per share data): Years Ended December 31, 2018 2017 2016 Net income (loss) $ (20,378 ) $ (44,766 ) $ 3,515 Less: distributed and undistributed income (loss) from unvested restricted stock — 3 30 Net income (loss) attributable to common shareholders $ (20,378 ) $ (44,769 ) $ 3,485 Weighted average shares (1) 15,032 14,838 14,631 Basic and diluted income (loss) per common share $ (1.36 ) $ (3.02 ) $ 0.24 ______________ (1) We have no dilutive securities. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Tax | A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit for 2018 , 2017 and 2016 , is as follows (in thousands): Years Ended December 31, 2018 2017 2016 Amount % Amount % Amount % U.S. statutory rate $ 4,159 21.0% $ 24,136 35.0% $ (1,945 ) 35.0% Increase (decrease) resulting from: Permanent differences (206 ) (1.0)% (330 ) 0.5% (64 ) 1.1% State income taxes (571 ) (2.9)% 366 (0.5)% (32 ) 0.6% Other 374 1.9% (118 ) 0.2% — —% Discrete items Vesting of common stock (19 ) (0.1)% (253 ) 0.4% — —% Change in valuation allowance (4,308 ) (21.7)% 392 (0.5)% — —% Income tax (expense) benefit $ (571 ) (2.8)% $ 24,193 35.1% $ (2,041 ) 36.7% |
Components of Income Tax Expense | Significant components of our income tax (expense) benefit for 2018 , 2017 and 2016 , were as follows (in thousands): Years Ended December 31, 2018 2017 2016 Current Federal $ — $ — $ (302 ) State (317 ) (83 ) (361 ) Total current (317 ) (83 ) (663 ) Deferred Federal 3,410 24,219 (1,549 ) State 644 449 171 Valuation allowance (4,308 ) (392 ) — Total deferred (254 ) 24,276 (1,378 ) Income tax (expense) benefit $ (571 ) $ 24,193 $ (2,041 ) |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at December 31, 2018 and 2017 , were as follows (in thousands): December 31, 2018 2017 Deferred tax assets Employee benefits $ 758 $ 962 Uncompleted contracts 2,380 2,664 Stock based compensation expense 266 350 Allowance for doubtful accounts 84 99 Long-term incentive awards 150 280 Federal net operating losses 9,962 13,190 State net operating losses 1,155 511 Other 395 394 Total deferred tax assets 15,150 18,450 Deferred tax liabilities Property, plant and equipment (10,199 ) (17,605 ) Prepaid insurance (450 ) (453 ) Total deferred tax liabilities (10,649 ) (18,058 ) Net deferred tax assets 4,501 392 Valuation allowance (4,701 ) (392 ) Net deferred taxes (1) $ (200 ) $ — ______________ (1) Amounts are included in other noncurrent liabilities on our Balance Sheet. |
RETIREMENT AND LONG-TERM INCE_2
RETIREMENT AND LONG-TERM INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Payments and Retirement Disclosure [Abstract] | |
Summary of Restricted Stock Awards Activity | A summary of activity for our restricted stock awards for 2018 , 2017 and 2016 is as follows: Years Ended December 31, 2018 2017 2016 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, beginning of period 445,126 $ 12.83 370,565 $ 12.99 262,964 $ 18.33 Granted 440,185 11.16 383,121 13.02 259,699 8.55 Vested (250,219 ) 10.93 (215,478 ) 12.52 (114,804 ) 14.37 Forfeited (108,654 ) 12.01 (93,082 ) 12.53 (37,294 ) 15.48 Restricted shares, end of period 526,438 11.56 445,126 12.83 370,565 12.99 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Summarized Segment Financial Information | Summarized financial information for our segments as of and for the three-year period ended December 31, 2018 , is as follows (in thousands): 2018 Fabrication (1) Shipyard (1) Services EPC Corporate Eliminations Consolidated Revenue $ 37,943 $ 96,424 $ 88,230 $ 2,477 $ — $ (3,827 ) $ 221,247 Gross profit (loss) (7,794 ) (10,472 ) 12,447 (46 ) (1,331 ) — (7,196 ) Operating income (loss) (2,950 ) (14,396 ) 9,371 (1,863 ) (9,827 ) — (19,665 ) Depreciation expense 4,310 4,229 1,511 5 295 — 10,350 Capital expenditures 73 2,003 1,244 143 18 — 3,481 Total Assets 62,138 97,197 38,643 1,938 58,374 — 258,290 2017 Fabrication Shipyard (2) Services EPC Corporate Eliminations Consolidated Revenue $ 57,880 $ 52,699 $ 65,445 $ 198 $ — $ (5,200 ) $ 171,022 Gross profit (loss) (1,941 ) (44,870 ) 4,575 41 (730 ) — (42,925 ) Operating income (loss) (12,010 ) (50,044 ) 1,874 41 (8,471 ) — (68,610 ) Depreciation expense 6,592 4,073 1,676 — 404 — 12,745 Capital expenditures 2,395 1,909 403 — 127 — 4,834 Total Assets 155,731 74,516 32,487 198 7,908 — 270,840 2016 Fabrication Shipyard Services EPC Corporate 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) 2,009 2,436 9,217 — (7,798 ) — 5,864 Depreciation expense 18,566 4,686 1,775 — 421 — 25,448 Capital expenditures 2,633 1,861 1,495 — 806 — 6,795 Total Assets 195,901 81,928 37,102 — 7,477 — 322,408 _______________ (1) Gross loss and operating loss for 2018 for our Fabrication Division includes a $2.4 million impact from increased costs on a petrochemical module project and our Shipyard Division includes a $6.7 million impact from increased forecast costs on our harbor tug projects. Operating loss also includes a net benefit of $6.9 million related to a gain on the sale of our South Texas Properties of $8.0 million and a gain on insurance recoveries of $3.6 million , offset partially by impairments of $4.4 million related to inventory and assets that were held for sale and a loss on assets sold of $0.3 million within our Fabrication and Shipyard Divisions. See Note 2 for further discussion of the project charges and Note 3 and Note 5 for further discussion of our asset impairments and gains on assets held for sale. (2) Gross loss and operating loss for 2017 for our Shipyard Division includes a $34.5 million impact from increased forecast costs on our MPSV projects. See Note 2 for further discussion of the MPSV projects. |
QUARTERLY OPERATING RESULTS (_2
QUARTERLY OPERATING RESULTS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following table presents selected unaudited consolidated financial information on a quarterly basis for 2018 and 2017 (in thousands, except per share data): March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (1) Revenue $ 57,290 $ 54,014 $ 49,712 $ 60,231 Gross profit (loss) 679 (699 ) (3,212 ) (3,964 ) Net income (loss) (5,296 ) 549 (10,949 ) (4,682 ) Basic and diluted EPS (0.36 ) 0.04 (0.73 ) (0.31 ) March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (2) Revenue $ 37,993 $ 45,868 $ 49,884 $ 37,277 Gross loss (4,897 ) (11,620 ) (494 ) (25,914 ) Net loss (6,454 ) (10,923 ) (3,110 ) (24,279 ) Basic and diluted EPS (0.45 ) (0.73 ) (0.21 ) (1.63 ) ______________ (1) Gross loss and net loss for the fourth quarter 2018 was primarily due to under recovery of our overhead costs within our Fabrication Division and a $5.8 million impact from increased forecast costs on our harbor tug projects within our Shipyard Division. See Note 2 for further discussion of these projects. Net loss benefited from the reversal of a bad debt reserve of $2.8 million established during the third quarter 2018 for a receivable that was collected during the fourth quarter 2018. Net loss also includes a $4.1 million gain on the sale of our Texas North Yard, offset partially by impairments of $3.0 million . (2) Gross loss for the fourth quarter 2017 includes a $34.5 million impact from increased forecast costs on our MPSV projects within our Shipyard Division. See Note 2 for further discussion of the MPSV projects. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Unapproved change order and claim revenue | $ 0 | $ 0 | |||
Revenue, variable consideration, contract price reduction | $ 11,200,000 | 11,700,000 | |||
Prepaid contract costs | $ 0 | 0 | |||
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 2014-09 | |||||
Significant Accounting Policies [Line Items] | |||||
Cumulative effect of new accounting principle | $ 400,000 | ||||
Scenario, Adjustment | |||||
Significant Accounting Policies [Line Items] | |||||
Contract with customer, liability | 7,600,000 | ||||
Asset impairments and (gain) loss on assets held for sale, net | (300,000) | ||||
Contract liabilities | $ 7,200,000 | $ (9,100,000) | |||
Subsequent Event | Scenario, Forecast | Accounting Standards Update 2016-02 | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease, right-of-use asset | $ 4,000,000 | ||||
Operating lease, liability | 4,000,000 | ||||
Subsequent Event | Scenario, Forecast | Accounting Standards Update 2016-02 | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Operating lease, right-of-use asset | 6,000,000 | ||||
Operating lease, liability | $ 6,000,000 |
REVENUE, CONTRACT ASSETS AND _3
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 60,231 | $ 49,712 | $ 54,014 | $ 57,290 | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 221,247 | $ 171,022 | $ 286,326 |
Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | (3,827) | (5,200) | (3,273) | ||||||||
Fixed-price and unit-rate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 165,505 | 129,234 | 212,770 | ||||||||
Fixed-price and unit-rate | Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | (2,414) | (5,096) | (3,062) | ||||||||
Fixed-price and unit-rate | Fabrication | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 37,943 | 57,880 | 88,683 | ||||||||
Fixed-price and unit-rate | Shipyard | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 88,887 | 47,787 | 95,958 | ||||||||
Fixed-price and unit-rate | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 38,612 | 28,465 | 31,191 | ||||||||
Fixed-price and unit-rate | EPC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,477 | 198 | 0 | ||||||||
Time-and-materials | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 51,018 | 40,092 | 72,426 | ||||||||
Time-and-materials | Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Time-and-materials | Fabrication | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | |||||||||
Time-and-materials | Shipyard | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7,537 | 4,912 | 13,544 | ||||||||
Time-and-materials | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 43,481 | 35,180 | 58,882 | ||||||||
Time-and-materials | EPC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4,724 | 1,696 | 1,130 | ||||||||
Other | Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | (1,413) | (104) | (211) | ||||||||
Other | Fabrication | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Other | Shipyard | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Other | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 6,137 | 1,800 | 1,341 | ||||||||
Other | EPC | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 0 | $ 0 | $ 0 |
REVENUE, CONTRACT ASSETS AND _4
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($)Project | Dec. 31, 2018USD ($)vesselProject | Dec. 31, 2017USD ($)Project | Dec. 31, 2016USD ($) | |
Long-term Contracts or Programs Disclosure [Line Items] | ||||
Bad debt expense | $ 30 | $ 21 | $ 493 | |
Allowance for bad debt | $ 400 | 400 | 1,900 | |
Increase in operating loss due to change in estimates | 9,100 | $ 1,800 | ||
Revenue, variable consideration, contract price reduction | 11,200 | 11,200 | 11,700 | |
Contract assets, noncurrent | $ 12,452 | $ 12,452 | 0 | |
Number of uncompleted projects | Project | 9 | 9 | ||
Number of harbor tug vessels | vessel | 10 | |||
Fabrication | ||||
Long-term Contracts or Programs Disclosure [Line Items] | ||||
Increase in operating loss due to change in estimates | $ 2,400 | |||
Shipyard | ||||
Long-term Contracts or Programs Disclosure [Line Items] | ||||
Increase in operating loss due to change in estimates | $ 5,800 | $ 6,700 | $ 34,500 | |
Number of projects in a loss position | Project | 2 | |||
Sales Revenue, Net | Geographic Concentration Risk | Non-US | ||||
Long-term Contracts or Programs Disclosure [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | 14.00% |
REVENUE, CONTRACT ASSETS AND _5
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Remaining Performance Obligation by Segment (Details) $ in Thousands | Dec. 31, 2018USD ($)vessel | Sep. 30, 2018vessel |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 334,573 | |
Number of multi-purpose service vessels | vessel | 2 | 2 |
Fabrication | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 63,498 | |
Shipyard | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 259,644 | |
Shipyard | Disputed | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 21,900 | |
Number of multi-purpose service vessels | vessel | 2 | |
Services | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 11,046 | |
EPC | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 385 |
REVENUE, CONTRACT ASSETS AND _6
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Remaining Performance Obligation by Year (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 334,573 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 233,987 | |
Remaining performance obligation, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | 81,464 | |
Remaining performance obligation, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 19,122 | |
Remaining performance obligation, period | 1 year |
REVENUE, CONTRACT ASSETS AND _7
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Contract Assets and Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)vessel | Sep. 30, 2018vessel | Dec. 31, 2017USD ($) | |
Revenue from Contract with Customer [Abstract] | |||
Costs incurred on uncompleted contracts | $ 253,871 | $ 266,902 | |
Estimated profit (loss) earned to date | (35,470) | (26,954) | |
Prepaid subcontractor costs | 2,368 | 0 | |
Sub-total | 220,769 | 239,948 | |
Billings to date | (190,588) | (224,329) | |
Deferred revenue | (4,592) | 0 | |
Contract assets | 29,982 | 28,373 | |
Contract liabilities | (16,845) | (12,754) | |
Sub-total | 13,137 | 15,619 | |
Contract assets, noncurrent | 12,452 | 0 | |
Total | $ 25,589 | 15,619 | |
Number of multi-purpose service vessels | vessel | 2 | 2 | |
Contract with customer, liability, revenue recognized | $ 5,100 | ||
Contract with customer, liability, accrued contract losses, current | $ 2,400 | $ 7,600 |
REVENUE, CONTRACT ASSETS AND _8
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS - Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 60,231 | $ 49,712 | $ 54,014 | $ 57,290 | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 221,247 | $ 171,022 | $ 286,326 |
Sales Revenue, Net | Customer Concentration Risk | Customer A | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | 49,123 | 21,781 | |||||||||
Sales Revenue, Net | Customer Concentration Risk | Customer B | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | 25,873 | ||||||||||
Sales Revenue, Net | Customer Concentration Risk | Customer C | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 23,279 | ||||||||||
Sales Revenue, Net | Customer Concentration Risk | Customer D | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 44,724 | ||||||||||
Sales Revenue, Net | Customer Concentration Risk | Customer E | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 65,981,000 |
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, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | $ 27,104 |
Less: accumulated depreciation | (8,169) |
Total assets held for sale | 18,935 |
Fabrication Division | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 25,882 |
Less: accumulated depreciation | (7,871) |
Total assets held for sale | 18,011 |
Prospect Shipyard | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Property, plant and equipment | 1,222 |
Less: accumulated depreciation | (298) |
Total assets held for sale | $ 924 |
ASSETS HELD FOR SALE - Narrativ
ASSETS HELD FOR SALE - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)machinecrane | Dec. 31, 2017USD ($)buildingdrydock | Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale of assets | $ 7,642,000 | $ (259,000) | $ 0 | |||
Property, plant and equipment, net | $ 79,930,000 | 79,930,000 | 88,899,000 | |||
Insured event, gain (loss) | 3,571,000 | 0 | $ 0 | |||
Disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale of assets | 7,700,000 | |||||
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 | 18,935,000 | 18,935,000 | ||||
Impairment of asset held for sale | 2,400,000 | 1,000,000 | ||||
Texas South Yard And Texas North Yard | Disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of productive assets | 1,300,000 | |||||
Gain (loss) on sale of assets | (300,000) | |||||
South Texas Fabrication Yards, South Yard | Disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of productive assets | 53,800,000 | |||||
Gain (loss) on disposition | 3,900,000 | |||||
Proceeds from sale of assets | $ 55,000,000 | |||||
Selling costs | 1,200,000 | |||||
South Texas Fabrication Yards, North Yard | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, net | 800,000 | 800,000 | ||||
South Texas Fabrication Yards, North Yard | Disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of productive assets | 27,400,000 | |||||
Gain (loss) on disposition | 4,100,000 | |||||
Proceeds from sale of assets | 28,000,000 | 28,000,000 | ||||
Selling costs | 600,000 | |||||
Disposal group, not included in sale | 18,800,000 | 18,800,000 | ||||
South Texas Fabrication Yards, North Yard | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Insurance recoveries | 9,000,000 | |||||
Insured event, gain (loss) | 0 | |||||
Fabrication Division | 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 | 18,011,000 | $ 18,011,000 | ||||
Number of cranes | crane | 3 | |||||
Number of bending roll machines | machine | 2 | |||||
South Texas Fabrication Yards | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from property insurance policy | $ 9,400,000 | 6,000,000 | ||||
Insurance settlement | $ 15,400,000 | |||||
South Texas Fabrication Yards, North Yard, Assets Under Agreement To Sell | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Insurance recoveries | $ 5,200,000 | 1,300,000 | ||||
Insured event, gain (loss) | 3,600,000 | 0 | ||||
Impairment of asset held for sale | 1,400,000 | |||||
South Texas Properties, Total Loss Of Buildings | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Insurance recoveries | 1,500,000 | |||||
South Texas Properties, Estimated Future Repairs | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Insurance recoveries | 3,200,000 | |||||
Prospect Shipyard | Disposed of by sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale of assets | (300,000) | |||||
Proceeds from sale of assets | $ 2,000,000 | |||||
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 | $ 924,000 | 924,000 | ||||
Impairment of asset held for sale | $ 1,000,000 | |||||
Number of drydocks sold | drydock | 2 | |||||
Building | South Texas Properties, Total Loss Of Buildings | Held for sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of buildings | building | 2 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 221,073 | $ 231,517 |
Accumulated depreciation | (141,143) | (142,618) |
Property, plant and equipment, net | 79,930 | 88,899 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,972 | 4,972 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 34,696 | 34,653 |
Property, plant and equipment, estimated useful life | 25 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 132,155 | 141,704 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,497 | 4,450 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,627 | 2,667 |
Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 42,182 | 42,975 |
Property, plant and equipment, estimated useful life | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,944 | $ 96 |
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_4
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT - Additional Information (Details) ft² in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)ft²arenewal_options | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ | $ 10,430 | $ 12,909 | $ 25,448 |
Lease agreement expenses | $ | $ 1,900 | $ 2,000 | $ 2,500 |
Houston, Texas | |||
Property, Plant and Equipment [Line Items] | |||
Office space area of leased premises (in sqft or acres) | ft² | 17 | ||
Jennings, Louisiana | |||
Property, Plant and Equipment [Line Items] | |||
Office space area of leased premises (in sqft or acres) | a | 180 | ||
Lake Charles, Louisiana | |||
Property, Plant and Equipment [Line Items] | |||
Office space area of leased premises (in sqft or acres) | a | 10 | ||
Prospect Shipyard | Jennings, Louisiana | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | renewal_options | 2 | ||
Lease renewal term | 10 years | ||
Prospect Shipyard | Lake Charles, Louisiana | |||
Property, Plant and Equipment [Line Items] | |||
Lease renewal options | renewal_options | 3 | ||
Lease renewal term | 5 years |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2,019 | $ 660 |
2,020 | 672 |
2,021 | 680 |
2,022 | 578 |
2,023 | 477 |
Thereafter | 557 |
Future minimum rental payments due | $ 3,624 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairments | $ 0 | $ 0 | $ 0 |
Inventory impairment | 2,000,000 | 6,700,000 | |
Asset impairments | 4,363,000 | 7,672,000 | $ 0 |
Inventory scrap value | 200,000 | ||
Held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of asset held for sale | 2,400,000 | 1,000,000 | |
Pre-Manufactured | Services | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairments | 82,000 | ||
Specialty and High-Grade Copper Nickel and Steel | Fabrication | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairments | $ 1,900,000 | 3,700,000 | |
Specialty Piping and Valves | Fabrication | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset impairments | $ 2,900,000 |
INCOME (LOSS) PER COMMON SHAR_2
INCOME (LOSS) PER COMMON 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (4,682) | $ (10,949) | $ 549 | $ (5,296) | $ (24,279) | $ (3,110) | $ (10,923) | $ (6,454) | $ (20,378) | $ (44,766) | $ 3,515 |
Less: distributed and undistributed income (loss) from unvested restricted stock | 0 | 3 | 30 | ||||||||
Net income (loss) attributable to common shareholders | $ (20,378) | $ (44,769) | $ 3,485 | ||||||||
Weighted average shares | 15,032 | 14,838 | 14,631 | ||||||||
Basic and fully diluted earnings (loss) per share—common shareholders (in dollars per share) | $ (0.31) | $ (0.73) | $ 0.04 | $ (0.36) | $ (1.63) | $ (0.21) | $ (0.73) | $ (0.45) | $ (1.36) | $ (3.02) | $ 0.24 |
CREDIT FACILITIES (Details)
CREDIT FACILITIES (Details) | Aug. 27, 2018USD ($) | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 40,000,000 | |
Financial covenants, minimum current ratio | 1.25 | 2.85 |
Financial covenants, minimum net worth | $ 180,000,000 | |
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 | 0.50 | 0.01 |
Borrowings under credit agreement | $ 0 | |
Outstanding letters of credit | 2,900,000 | |
Revolving credit facility, unused portion | 37,100,000 | |
Tangible net worth | 199,200,000 | |
Surety bonds | $ 396,600,000 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Stated interest rate | 2.00% | |
Letter of Credit | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 5.50% | |
Letter of Credit | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 2.00% | 2.52% |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Fees on unused borrowings | 0.40% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. statutory rate | $ 4,159 | $ 24,136 | $ (1,945) |
Increase (decrease) resulting from: | |||
Permanent differences | (206) | (330) | (64) |
State income taxes | (571) | 366 | (32) |
Other | 374 | (118) | 0 |
Vesting of common stock | (19) | (253) | 0 |
Change in valuation allowance | (4,308) | 392 | 0 |
Income tax (benefit) expense | $ (571) | $ 24,193 | $ (2,041) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. statutory rate | 21.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: | |||
Permanent differences | (1.00%) | 0.50% | 1.10% |
State income taxes | (2.90%) | (0.50%) | 0.60% |
Other | 1.90% | 0.20% | 0.00% |
Vesting of common stock | (0.10%) | 0.40% | 0.00% |
Change in valuation allowance | (21.70%) | (0.50%) | 0.00% |
Income tax (benefit) expense | (2.80%) | 35.10% | 36.70% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 0 | $ 0 | $ (302) |
State | (317) | (83) | (361) |
Total current | (317) | (83) | (663) |
Deferred: | |||
Federal | 3,410 | 24,219 | (1,549) |
State | 644 | 449 | 171 |
Valuation allowance | (4,308) | (392) | 0 |
Total deferred | (254) | 24,276 | (1,378) |
Income tax (benefit) expense | $ (571) | $ 24,193 | $ (2,041) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Employee benefits | $ 758 | $ 962 |
Uncompleted contracts | 2,380 | 2,664 |
Stock based compensation expense | 266 | 350 |
Allowance for doubtful accounts | 84 | 99 |
Long-term incentive awards | 150 | 280 |
Federal net operating losses | 9,962 | 13,190 |
State net operating losses | 1,155 | 511 |
Other | 395 | 394 |
Total deferred tax assets | 15,150 | 18,450 |
Deferred tax liabilities | ||
Property, plant and equipment | (10,199) | (17,605) |
Prepaid insurance | (450) | (453) |
Total deferred tax liabilities | (10,649) | (18,058) |
Net deferred tax assets | 4,501 | 392 |
Valuation allowance | (4,701) | (392) |
Net deferred taxes | $ (200) | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Total deferred tax assets | $ 15,150 | $ 18,450 | |
Federal net operating losses | 9,962 | 13,190 | |
Valuation allowance | $ 4,701 | $ 392 | |
U.S. statutory rate | 21.00% | 35.00% | 35.00% |
Domestic Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 47,400 | ||
State and Local Jurisdiction | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | $ 24,500 |
Retirement and Long-Term Ince_3
Retirement and Long-Term Incentive Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer discretionary contribution | $ 0 | $ 0 | $ 700,000 |
Available shares for future issuance (in shares) | 527,357 | ||
Share-based compensation cost charged against income | $ 2,795,000 | 2,741,000 | 3,125,000 |
Total unrecognized compensation costs | 3,400,000 | ||
Total income tax (expense) benefit under share-base compensation | $ (19,000) | $ (300,000) | 0 |
Recognition of compensation cost, weighted average period | 2 years | ||
Value of awards granted | $ 4,900,000 | ||
Total fair value of shares vested | $ 2,700,000 | ||
Non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 6 months | ||
Employee Stock Option | Long Term Incentive Plan 1997 | |||
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 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock vesting period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period awards are earned | 3 years | ||
Performance based share compensation expense | $ 1,100,000 | $ 1,500,000 | 1,300,000 |
Fair value of performance based shares granted | $ 3,800,000 | $ 4,700,000 | $ 1,600,000 |
Retirement and Long-Term Ince_4
Retirement and Long-Term Incentive Plans - Summary of Status of Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Restricted Stock | |||
Number of Shares | |||
Restricted shares at the beginning of period (in shares) | 445,126 | 370,565 | 262,964 |
Granted (in shares) | 440,185 | 383,121 | 259,699 |
Vested (in shares) | (250,219) | (215,478) | (114,804) |
Forfeited (in shares) | (108,654) | (93,082) | (37,294) |
Restricted shares at the end of period (in shares) | 526,438 | 445,126 | 370,565 |
Weighted- Average Grant-Date Fair Value Per Share | |||
Restricted shares at the beginning of period (USD per share) | $ 12.83 | $ 12.99 | $ 18.33 |
Granted (USD per share) | 11.16 | 13.02 | 8.55 |
Vested (USD per share) | 10.93 | 12.52 | 14.37 |
Forfeited (USD per share) | 12.01 | 12.53 | 15.48 |
Restricted shares at the end of period (USD per share) | $ 11.56 | $ 12.83 | $ 12.99 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - LEEVAC | Jan. 01, 2016USD ($)CustomerProject |
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 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2018vessel | Sep. 30, 2018USD ($)vessel |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of multi-purpose service vessels being constructed | vessel | 2 | 2 |
Estimate of possible loss | $ | $ 12.5 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating divisions | 4 |
Number of corporate non-operating divisions | 1 |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 60,231,000 | $ 49,712,000 | $ 54,014,000 | $ 57,290,000 | $ 37,277,000 | $ 49,884,000 | $ 45,868,000 | $ 37,993,000 | $ 221,247,000 | $ 171,022,000 | $ 286,326,000 |
Gross profit (loss) | (3,964,000) | $ (3,212,000) | $ (699,000) | $ 679,000 | (25,914,000) | $ (494,000) | $ (11,620,000) | $ (4,897,000) | (7,196,000) | (42,925,000) | 24,853,000 |
Operating income (loss) | (19,665,000) | (68,610,000) | 5,864,000 | ||||||||
Depreciation expense | 10,350,000 | 12,745,000 | 25,448,000 | ||||||||
Capital expenditures | 3,481,000 | 4,834,000 | 6,795,000 | ||||||||
Total Assets | 258,290,000 | 270,840,000 | 258,290,000 | 270,840,000 | 322,408,000 | ||||||
Increase in operating loss due to change in estimates | 9,100,000 | 1,800,000 | |||||||||
Gain on insurance recoveries | 3,571,000 | 0 | 0 | ||||||||
Impairment charges related to inventory and assets | 3,000,000 | ||||||||||
Loss on disposition of assets sold | (4,100,000) | 268,000 | (35,000) | (757,000) | |||||||
Loss related to cost overruns and re-work | 34,500,000 | 34,500,000 | |||||||||
Fabrication | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Increase in operating loss due to change in estimates | 2,400,000 | ||||||||||
Shipyard | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Increase in operating loss due to change in estimates | 5,800,000 | 6,700,000 | 34,500,000 | ||||||||
Fabrication And Shipyard Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Asset impairments, gains on the sale of assets held-for-sale and insurance proceeds | 6,900,000 | ||||||||||
Gain on sale of South Texas Properties | 8,000,000 | ||||||||||
Operating Segments | Fabrication | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 37,943,000 | 57,880,000 | 88,683,000 | ||||||||
Gross profit (loss) | (7,794,000) | (1,941,000) | 5,276,000 | ||||||||
Operating income (loss) | (2,950,000) | (12,010,000) | 2,009,000 | ||||||||
Depreciation expense | 4,310,000 | 6,592,000 | 18,566,000 | ||||||||
Capital expenditures | 73,000 | 2,395,000 | 2,633,000 | ||||||||
Total Assets | 62,138,000 | 155,731,000 | 62,138,000 | 155,731,000 | 195,901,000 | ||||||
Operating Segments | Shipyard | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 96,424,000 | 52,699,000 | 109,502,000 | ||||||||
Gross profit (loss) | (10,472,000) | (44,870,000) | 7,801,000 | ||||||||
Operating income (loss) | (14,396,000) | (50,044,000) | 2,436,000 | ||||||||
Depreciation expense | 4,229,000 | 4,073,000 | 4,686,000 | ||||||||
Capital expenditures | 2,003,000 | 1,909,000 | 1,861,000 | ||||||||
Total Assets | 97,197,000 | 74,516,000 | 97,197,000 | 74,516,000 | 81,928,000 | ||||||
Operating Segments | Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 88,230,000 | 65,445,000 | 91,414,000 | ||||||||
Gross profit (loss) | 12,447,000 | 4,575,000 | 12,420,000 | ||||||||
Operating income (loss) | 9,371,000 | 1,874,000 | 9,217,000 | ||||||||
Depreciation expense | 1,511,000 | 1,676,000 | 1,775,000 | ||||||||
Capital expenditures | 1,244,000 | 403,000 | 1,495,000 | ||||||||
Total Assets | 38,643,000 | 32,487,000 | 38,643,000 | 32,487,000 | 37,102,000 | ||||||
Operating Segments | EPC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,477,000 | 198,000 | 0 | ||||||||
Gross profit (loss) | (46,000) | 41,000 | 0 | ||||||||
Operating income (loss) | (1,863,000) | 41,000 | 0 | ||||||||
Depreciation expense | 5,000 | 0 | 0 | ||||||||
Capital expenditures | 143,000 | 0 | 0 | ||||||||
Total Assets | 1,938,000 | 198,000 | 1,938,000 | 198,000 | 0 | ||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Gross profit (loss) | (1,331,000) | (730,000) | (644,000) | ||||||||
Operating income (loss) | (9,827,000) | (8,471,000) | (7,798,000) | ||||||||
Depreciation expense | 295,000 | 404,000 | 421,000 | ||||||||
Capital expenditures | 18,000 | 127,000 | 806,000 | ||||||||
Total Assets | 58,374,000 | 7,908,000 | 58,374,000 | 7,908,000 | 7,477,000 | ||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | (3,827,000) | (5,200,000) | (3,273,000) | ||||||||
Gross profit (loss) | 0 | 0 | 0 | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Depreciation expense | 0 | 0 | 0 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Total Assets | $ 0 | $ 0 | 0 | 0 | $ 0 | ||||||
Held for sale | South Texas Fabrication Yards, North Yard, Assets Under Agreement To Sell | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on insurance recoveries | 3,600,000 | $ 0 | |||||||||
Impairment charges related to inventory and assets | 4,400,000 | ||||||||||
Loss on disposition of assets sold | $ 300,000 |
Quarterly Operating Results (_3
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||||||||
Revenue | $ 60,231 | $ 49,712 | $ 54,014 | $ 57,290 | $ 37,277 | $ 49,884 | $ 45,868 | $ 37,993 | $ 221,247 | $ 171,022 | $ 286,326 |
Gross profit (loss) | (3,964) | (3,212) | (699) | 679 | (25,914) | (494) | (11,620) | (4,897) | (7,196) | (42,925) | 24,853 |
Net income (loss) | $ (4,682) | $ (10,949) | $ 549 | $ (5,296) | $ (24,279) | $ (3,110) | $ (10,923) | $ (6,454) | $ (20,378) | $ (44,766) | $ 3,515 |
Basic and diluted EPS (in dollars per share) | $ (0.31) | $ (0.73) | $ 0.04 | $ (0.36) | $ (1.63) | $ (0.21) | $ (0.73) | $ (0.45) | $ (1.36) | $ (3.02) | $ 0.24 |
Increase in operating loss due to change in estimates | $ 9,100 | $ 1,800 | |||||||||
Proceeds collection of receivables | $ 2,800 | ||||||||||
Gain on sale | 4,100 | (268) | $ 35 | $ 757 | |||||||
Loss related to cost overruns and re-work | $ 34,500 | 34,500 | |||||||||
Impairment charges related to inventory and assets | 3,000 | ||||||||||
Shipyard | |||||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||||||||
Increase in operating loss due to change in estimates | $ 5,800 | $ 6,700 | $ 34,500 |