Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GIFI | ||
Entity Registrant Name | GULF ISLAND FABRICATION INC | ||
Entity Central Index Key | 1031623 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 14,738,900 | ||
Entity Public Float | $290,522,819 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $36,085 | $36,569 |
Contracts receivable, net | 80,448 | 98,579 |
Contract retainage | 111 | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 26,989 | 24,727 |
Prepaid expenses and other | 4,510 | 4,862 |
Inventory | 10,140 | 11,329 |
Deferred tax assets | 2,646 | 9,927 |
Income tax receivable | 1,350 | 1,365 |
Assets held for sale | 10,327 | 14,527 |
Total current assets | 172,495 | 201,996 |
Property, plant and equipment, net | 224,777 | 223,555 |
Other assets | 671 | 683 |
Total assets | 397,943 | 426,234 |
Current liabilities: | ||
Accounts payable | 40,272 | 66,054 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 18,766 | 35,006 |
Accrued contract losses | 817 | |
Accrued employee costs | 7,723 | 7,516 |
Accrued expenses and other liabilities | 5,187 | 3,699 |
Total current liabilities | 72,765 | 112,275 |
Deferred tax liabilities | 39,380 | 38,397 |
Total liabilities | 112,145 | 150,672 |
Shareholders' equity: | ||
Preferred stock, no par value, 5,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, no par value, 20,000,000 shares authorized, 14,539,104 issued and outstanding at December 31, 2014 and 14,493,748 at December 31, 2013, respectively | 10,090 | 10,012 |
Additional paid-in capital | 93,828 | 93,125 |
Retained earnings | 181,880 | 172,425 |
Total shareholders' equity | 285,798 | 275,562 |
Total liabilities and shareholders' equity | $397,943 | $426,234 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,539,104 | 14,493,748 |
Common stock, shares outstanding | 14,539,104 | 14,493,748 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $506,639 | $608,326 | $521,340 |
Cost of revenue: | |||
Contract costs | 462,083 | 584,665 | 502,999 |
Provision for loss on contract receivable | 14,501 | ||
Total cost of revenue | 462,083 | 584,665 | 517,500 |
Gross profit | 44,556 | 23,661 | 3,840 |
General and administrative expenses | 20,609 | 11,555 | 9,806 |
Operating income (loss) | 23,947 | 12,106 | -5,966 |
Other income (expense): | |||
Interest expense | -37 | -237 | -153 |
Interest income | 13 | 3 | 586 |
Other income (expense), net | -99 | -337 | 128 |
Total other income (expense) | -123 | -571 | 561 |
Income (loss) before income taxes | 23,824 | 11,535 | -5,405 |
Income taxes | 8,504 | 4,303 | -1,314 |
Net income (loss) | $15,320 | $7,232 | ($4,091) |
Per share data: | |||
Basic earnings (loss) per share-common shareholders | $1.05 | $0.50 | ($0.29) |
Diluted earnings (loss) per share-common shareholders | $1.05 | $0.50 | ($0.29) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
In Thousands, except Share data | ||||
Beginning Balance at Dec. 31, 2011 | $282,799 | $9,921 | $91,933 | $180,945 |
Beginning Balance, (in shares) at Dec. 31, 2011 | 14,376,443 | |||
Exercise of stock options | -71 | -8 | -63 | |
Exercise of stock options, (in shares) | 15,065 | 15,065 | ||
Income tax benefit from stock compensation | 259 | 259 | ||
Net income (loss) | -4,091 | -4,091 | ||
Vesting of restricted stock | -796 | -79 | -717 | |
Vesting of restricted stock, (in shares) | 61,152 | |||
Compensation expense restricted stock | 1,222 | 122 | 1,100 | |
Dividends on common stock | -5,822 | -5,822 | ||
Ending Balance at Dec. 31, 2012 | 273,500 | 9,956 | 92,512 | 171,032 |
Ending Balance, (in shares) at Dec. 31, 2012 | 14,452,660 | |||
Exercise of stock options | 203 | 20 | 183 | |
Exercise of stock options, (in shares) | 2,900 | 2,900 | ||
Income tax benefit from stock compensation | 116 | 116 | ||
Net income (loss) | 7,232 | 7,232 | ||
Vesting of restricted stock | -322 | -32 | -290 | |
Vesting of restricted stock, (in shares) | 38,188 | |||
Compensation expense restricted stock | 672 | 68 | 604 | |
Dividends on common stock | -5,839 | -5,839 | ||
Ending Balance at Dec. 31, 2013 | 275,562 | 10,012 | 93,125 | 172,425 |
Ending Balance, (in shares) at Dec. 31, 2013 | 14,493,748 | 14,493,748 | ||
Net income (loss) | 15,320 | 15,320 | ||
Vesting of restricted stock | -358 | -35 | -323 | |
Vesting of restricted stock, (in shares) | 45,356 | |||
Compensation expense restricted stock | 1,139 | 113 | 1,026 | |
Dividends on common stock | -5,865 | -5,865 | ||
Ending Balance at Dec. 31, 2014 | $285,798 | $10,090 | $93,828 | $181,880 |
Ending Balance, (in shares) at Dec. 31, 2014 | 14,539,104 | 14,539,104 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income (loss) | $15,320 | $7,232 | ($4,091) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 26,436 | 25,087 | 23,396 |
Provision for losses on contract receivables | 14,501 | ||
Asset impairment | 3,200 | ||
Allowance for doubtful accounts | 3,168 | 887 | |
Loss on the sale of assets | 86 | 353 | |
Deferred income taxes | 8,264 | 3,788 | -1,848 |
Stock-based compensation expense | 1,139 | 672 | -259 |
Excess tax benefits from share-based payment arrangements | -116 | 1,222 | |
Changes in operating assets and liabilities: | |||
Contracts receivable, net | 14,963 | -55,353 | -1,937 |
Contract retainage | 111 | 1,187 | 3,015 |
Costs and estimated earnings in excess of billings on uncompleted contracts | -2,262 | 1,590 | -13,335 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -16,240 | 9,418 | -20,865 |
Accounts payable | -25,782 | 16,569 | 28,983 |
Prepaid subcontractor costs | 33,145 | -23,414 | |
Prepaid expenses and other assets | 352 | -385 | -1,113 |
Inventory | 1,189 | -6,325 | 1,254 |
Accrued contract losses | 817 | -3,790 | 3,790 |
Accrued employee costs | -154 | 1,854 | 944 |
Accrued expenses | 1,488 | -1,462 | 2,551 |
Current income taxes | 15 | 3,652 | -1,757 |
Net cash provided by operating activities | 32,110 | 38,003 | 11,037 |
Cash flows from investing activities: | |||
Capital expenditures, net | -27,658 | -21,353 | -35,890 |
Proceeds on the sale of equipment | 929 | 551 | |
Net cash used in investing activities | -26,729 | -20,802 | -35,890 |
Cash flows from financing activities: | |||
Borrowings against notes payable | 22,000 | 45,000 | |
Payments on notes payable | -22,000 | -45,000 | |
Proceeds from exercise of stock options | 0 | 203 | 17 |
Excess tax benefit from share-based payment arrangements | 0 | 116 | 259 |
Payments of dividends on common stock | -5,865 | -5,839 | -5,822 |
Net cash used in financing activities | -5,865 | -5,520 | -5,546 |
Net (decrease) increase in cash and cash equivalents | -484 | 11,681 | -30,399 |
Cash and cash equivalents at beginning of period | 36,569 | 24,888 | 55,287 |
Cash and cash equivalents at end of period | 36,085 | 36,569 | 24,888 |
Supplemental cash flow information: | |||
Interest paid | 169 | 843 | 99 |
Income taxes paid (received), net of payments (refunds) | 225 | 3,138 | 2,291 |
Schedule of Noncash Financing Activities | |||
Reclassification of assets to held for sale | $14,527 |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Basis of Presentation | ||||
Gulf Island Fabrication, Inc., together with its subsidiaries (the “Company”, “we” or “our”), is a leading fabricator of offshore drilling and production platforms and other specialized structures. The Company’s principal corporate office is located in Houston, Texas and its fabrication facilities are located in Houma, Louisiana and San Patricio County, Texas. The Company’s principal markets are concentrated in the offshore regions and along the coast of the Gulf of Mexico. The consolidated financial statements include the accounts of Gulf Island Fabrication, Inc. and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||
Gulf Island Fabrication, Inc. (“Gulf Island”) serves as a holding company and conducts all of its operations through its subsidiaries, which include Gulf Island, L.L.C. and Gulf Marine Fabricators, L.P. (both of which perform fabrication of offshore drilling and production platforms and other specialized structures used in the development and production of oil and gas reserves), Gulf Island Marine Fabricators, L.L.C. (which performs marine fabrication and construction services), Dolphin Services, L.L.C. (which performs offshore and onshore fabrication and construction services), Dolphin Steel Sales, L.L.C. (which sells steel plate and other steel products) and Gulf Island Resources, L.L.C. (which hires laborers with similar rates and terms as those provided by contract labor service companies). | ||||
Operating Cycle | ||||
The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded as current regardless of whether cash will be received or paid within a twelve month period. Assets and liabilities classified as current which may not be paid or received within the next twelve months include contract retainage, costs and estimated earnings in excess of billings on uncompleted contracts, and billings in excess of costs and estimated earnings on uncompleted contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. | ||||
Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits and the application of the percentage-of-completion (POC) method of accounting. Actual results could differ from those estimates. | ||||
Cash Equivalents | ||||
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. | ||||
Allowance for Doubtful Accounts | ||||
We routinely review individual contracts receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. | ||||
Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. | ||||
During the fourth quarter of 2014, the Company included an allowance for bad debt in the amount of $3.6 million in connection with negotiations of an outstanding contract receivable balance with a deepwater offshore customer related to a deepwater hull project completed during the first quarter of 2014. | ||||
At December 31, 2013, the Company included an allowance for bad debt in the amount of $0.9 million in connection with a vessel upgrade and outfitting project. The Company collected $0.6 million of this balance as part of the final settlement during the fourth quarter 2014. | ||||
Stock-Based Compensation | ||||
Awards under the Company’s stock-based compensation plans are calculated using a fair-value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. | ||||
Inventory | ||||
Inventory consists of materials and production supplies and is stated at the lower of cost or market determined on the first-in, first-out basis. | ||||
Assets Held for Sale | ||||
Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. Management determined fair value with the assistance of third party valuation specialists, assuming the sale of the underlying assets individually or in aggregate to a willing market participant, including normal ownership risks assumed by the purchaser, and the sale of certain components at scrap value. We estimated fair value relying primarily on the cost approach and applied the market approach where comparable sales transaction information was readily available. The cost approach is based on current replacement and reproduction costs of the subject assets less depreciation attributable to physical, functional, and economic factors. The market approach involves gathering data on sales and offerings of similar assets in order to value the subject assets. This approach also includes the assumption for the measurement of the loss in value from physical, functional, and economic factors. The fair value of the assets held for sale at December 31, 2014 represent Level 3 fair value measurements (as defined by GAAP), based primarily on the limited availability of market pricing information for either identical or similar items. | ||||
Workers Compensation Liability | ||||
The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. Our workers compensation liability balance was $2.7 million and $1.9 million as of December 31, 2014 and 2013, respectively. | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from 3 to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. | ||||
Long-Lived Assets | ||||
The Company records impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might be impaired and the undiscounted cash flows that are estimated to be generated by those assets or asset groups are less than the carrying amounts of those assets or asset groups. The impairment loss is determined by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Due to the slow down in our industry as a result of the downturn in oil prices, we identified indicators of impairment at our Texas facility. Management performed an undiscounted cash flow analysis during the fourth quarter of 2014 for the Texas facility, which did not result in impairment. | ||||
Fair Value Measurements | ||||
The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. Valuation techniques used to measure fair value maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||
• | Level 1—inputs are based upon quoted prices for identical instruments traded in active markets. | |||
• | Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for similar or identical instruments in inactive markets and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets and liabilities. | |||
• | Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar valuation techniques. | |||
The carrying amounts that we have reported for financial instruments, including cash and cash equivalents, accounts receivables and accounts payable approximate their fair values. See Note 5-“Assets Held for Sale” for additional information regarding fair value measurements. | ||||
Revenue Recognition | ||||
The Company uses the percentage-of-completion accounting method for construction contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to estimated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. | ||||
Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. | ||||
Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. | ||||
Contract costs include all direct material, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies and tools. Also included in contract costs are a portion of those indirect contract costs related to plant capacity, such as depreciation, insurance and repairs and maintenance. These indirect costs are allocated to jobs based on actual direct labor hours incurred. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. | ||||
Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a claim under those provisions. Those contracts define the conditions under which our customers may make claims against us for liquidated damages. In 2014, we had one asserted liquidated damages claim in the amount of $0.3 million that was fully settled, related to the fabrication of an offshore supply vessel. Other than the aforementioned claim, of March 5, 2015, we were not aware of any asserted liquidated damage claims by any of our customers. | ||||
At December 31, 2014, we had no revenue related to unapproved change orders on projects. At December 31, 2013, we recorded revenue totaling $0.1 million related to certain change orders on two projects which had been approved as to scope but not price. At December 31, 2013, we recorded revenue totaling $3.7 million related to re-measure units and quantities on a unit rate contract. At December 31, 2012, we recorded revenue totaling $5.2 million related to certain change-orders on four projects which were approved as to scope but not price. At December 31, 2012, we recorded revenue totaling $7.7 million related to re-measure units and quantities on a unit rate contract. All matters relating to unapproved items have since been resolved. | ||||
Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. We recognized contract losses of $6.6 million, $30.8 million, and $12.5 million in the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
During the quarter ended September 30, 2013, we entered into discussions with a large deepwater customer concerning our customer’s request for a reduction in scope of the project, whereby remaining completion and integration work would be performed at the integration site by a different integration contractor. We transferred the project deliverables to the integration contractor’s site and removed from backlog estimated revenue of $25.5 million and estimated labor hours of 271,000 hours representing our previous estimate of remaining work to complete the project during the third quarter of 2013. Throughout the fourth quarter of 2013 and into the first quarter 2014, we continued negotiations with our large deepwater customer with respect to final amounts due to us and to our subcontractors for claims for all work performed prior to transition of the scope of work to the customer-designated replacement contractor. We executed a final change order to this contract with the customer in early March 2014 that provided for a final payment of $11.0 million by our customer that was received during the first half of 2014. We recorded an additional loss provision of $18.2 million in the fourth quarter of 2013 related to this project. For the year ended December 31, 2013, we recognized estimated contract losses of $29.6 million primarily as a result of our inability to recover certain costs and the de-scoping of this contract. | ||||
Income Taxes | ||||
Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the basis differences reverse. A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2007 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. | ||||
Accounting Standards | ||||
On May 28, 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification (ASC) Topic 605, “Revenue Recognition.” ASU No. 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 requires retrospective application and will be effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is not permitted. The Company is evaluating the effect of this new standard on its financial statements. |
CONTRACTS_RECEIVABLE_AND_RETAI
CONTRACTS RECEIVABLE AND RETAINAGE | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
CONTRACTS RECEIVABLE AND RETAINAGE | 2. CONTRACTS RECEIVABLE AND RETAINAGE |
The principal customers of the Company include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. Of our contracts receivable balance at December 31, 2014, $47.1 million, or 58.5%, is for three customers. | |
During the fourth quarter of 2014, the Company included an allowance for bad debt in the amount of $3.6 million in connection with negotiations of an outstanding contract receivable balance with a customer related to a deepwater hull project that was completed during the first quarter of 2014. | |
At December 31, 2013, the Company included an allowance for bad debt in the amount of $0.9 million in connection with a vessel upgrade and outfitting project. The Company collected $0.6 million of this balance as part of the final settlement during the fourth quarter 2014. |
CONTRACTS_RECEIVABLE
CONTRACTS RECEIVABLE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
CONTRACTS RECEIVABLE | 3. CONTRACTS RECEIVABLE | ||||||||
Amounts due on contracts as of December 31 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Completed contracts | |||||||||
Current receivables | $ | 24,667 | $ | 3,885 | |||||
Long term receivables due after one year | — | — | |||||||
Contracts in progress: | |||||||||
Current receivables | 59,384 | 95,581 | |||||||
Retainage due within one year | — | 111 | |||||||
84,051 | 99,577 | ||||||||
Less allowance for doubtful accounts | 3,603 | 887 | |||||||
$ | 80,448 | $ | 98,690 | ||||||
COSTS_AND_ESTIMATED_EARNINGS_O
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | 4. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS | ||||||||
Information with respect to uncompleted contracts as of December 31 is as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Costs incurred on uncompleted contracts | $ | 742,608 | $ | 991,123 | |||||
Estimated profit earned to date | 53,551 | 40,045 | |||||||
796,159 | 1,031,168 | ||||||||
Less billings to date | 787,936 | 1,041,447 | |||||||
$ | 8,223 | $ | (10,279 | ) | |||||
The above amounts are included in the accompanying consolidated balance sheets at December 31 under the following captions (in thousands): | |||||||||
2014 | 2013 | ||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 26,989 | $ | 24,727 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (18,766 | ) | (35,006 | ) | |||||
$ | 8,223 | $ | (10,279 | ) | |||||
ASSETS_HELD_FOR_SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
ASSETS HELD FOR SALE | 5. ASSETS HELD FOR SALE |
Assets held for sale consist of a partially constructed topside, related valves, piling and equipment that we acquired from a customer following its default under a contract for a deepwater project in 2012. Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. Management determined fair value of these assets with the assistance of third party valuation specialists, assuming the sale of the underlying assets individually or in the aggregate to a willing market participant, including normal ownership risks assumed by the purchaser, and the sale of certain components at scrap value. We estimated fair value relying primarily on the cost approach and applied the market approach where comparable sales transaction information was readily available. The cost approach is based on current replacement or reproduction costs of the subject assets less depreciation attributable to physical, functional, and economic factors. The market approach involves gathering data on sales and offerings of similar assets in order to value the subject assets. This approach also includes an assumption for the measurement of the loss in value from physical, functional, and economic factors. The fair value of assets held for sale represent Level 3 fair value measurements (as defined by GAAP), based primarily on the limited availability of market pricing information for either identical or similar items. In connection with its 2014 fourth quarter assessment of the fair value of assets held for sale, management determined that its previous estimate of $13.5 million for the fair value of these assets had declined to $10.3 million. As a result, we included in our income statement within general and administrative expenses for the year ended December 31, 2014 an impairment charge of $3.2 million. | |
During the first quarter, 2014, we entered into an agreement with the manufacturer of certain equipment, representing approximately 50% of the fair value of assets held for sale, whereby the manufacturer agreed to assist with restoration and marketing efforts, in return for a percentage of the sale proceeds. The agreement includes an assessment period at the end of which the two parties determine whether or not to continue marketing efforts for an additional six months. It is management’s intention to continue to renew the agreement at least through the end of calendar year 2015. In addition, Management has engaged consultants to assist with the marketing efforts for the assets held for sale as well as providing assistance to secure potential FLNG (“Floating Liquefied Natural Gas”) opportunities. | |
To date, we have not sold, licensed, or leased any of the equipment subject to the security agreement; however, we continue to actively market the equipment, and believe that the fair value of the assets is recoverable through the eventual disposition of project deliverables. However, the ultimate amount we are able to recover for these assets is dependent upon various factors including overall market interest in the project deliverables and equipment, which may change in the future. The timing of any sales we are able to consummate and the price we are able to obtain may result in a revision to the recorded fair value amount of any remaining assets held for sale. | |
In addition, during 2013, we included $1.0 million in assets held for sale for the sale of an aircraft and recorded a $0.3 million loss related to the sale. The aircraft was delivered to the buyer in February 2014. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT | ||||||||||||
Property, plant and equipment consisted of the following at December 31 (in thousands): | |||||||||||||
Estimated | 2014 | 2013 | |||||||||||
Useful Life | |||||||||||||
(in Years) | |||||||||||||
Land | n/a | $ | 10,463 | $ | 10,463 | ||||||||
Buildings | 25 | 63,837 | 62,515 | ||||||||||
Machinery and equipment | 3 to 25 | 228,284 | 198,611 | ||||||||||
Furniture and fixtures | 3 to 5 | 5,354 | 5,143 | ||||||||||
Transportation equipment | 3 to 5 | 3,748 | 3,224 | ||||||||||
Improvements | 15 | 125,265 | 123,201 | ||||||||||
Construction in progress | n/a | 1,177 | 7,450 | ||||||||||
438,128 | 410,607 | ||||||||||||
Less accumulated depreciation | 213,351 | 187,052 | |||||||||||
$ | 224,777 | $ | 223,555 | ||||||||||
The Company leases certain equipment used in the normal course of its operations under month-to-month lease agreements cancelable only by the Company. During 2014, 2013, and 2012, the Company expensed $5.6 million, $9.5 million, and $7.7 million, respectively, related to these leases. | |||||||||||||
On June 10, 2013, the Company entered into a lease agreement with BRI 1825 Park Ten, LLC for certain office and parking facilities located in Houston, Texas to house its corporate office. Leased premises consist of office space of approximately 4,421 square feet. The term of the lease, which commenced August 1, 2013, is 64 months. The Company has an option to extend the lease term for a period of five (5) years after the expiration date. Additionally, on December 9, 2013, we entered into an amendment to the lease to effectively provide an additional 3,624 square feet of office space. The amendment, among other things, extends the term for both the existing premises and expansion premises to January 31, 2020. The schedule of minimum rental payments for operating leases (in thousands) is as follows: | |||||||||||||
2015 | $ | 213 | |||||||||||
2016 | 217 | ||||||||||||
2017 | 221 | ||||||||||||
2018 | 225 | ||||||||||||
2019 | 229 | ||||||||||||
Thereafter | 19 | ||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
INCOME TAXES | 7. INCOME TAXES | ||||||||||||||||||||||||
Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property, plant and equipment | $ | 38,070 | $ | 38,397 | |||||||||||||||||||||
Prepaid insurance | 1,310 | — | |||||||||||||||||||||||
Total deferred tax liabilities: | 39,380 | 38,397 | |||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Employee benefits | 951 | 677 | |||||||||||||||||||||||
Uncompleted contracts | 391 | 931 | |||||||||||||||||||||||
Stock based compensation expense | 43 | 65 | |||||||||||||||||||||||
Allowance for uncollectible accounts | 1,261 | 311 | |||||||||||||||||||||||
Federal net operating loss | — | 7,584 | |||||||||||||||||||||||
Other | — | 359 | |||||||||||||||||||||||
Total deferred tax assets: | 2,646 | 9,927 | |||||||||||||||||||||||
Net deferred tax liabilities: | $ | 36,734 | $ | 28,470 | |||||||||||||||||||||
We utilized our entire federal net operating loss in 2014. | |||||||||||||||||||||||||
Significant components of income tax expense for the years ended December 31 were as follows (in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (105 | ) | $ | — | $ | — | ||||||||||||||||||
State | 459 | 254 | 534 | ||||||||||||||||||||||
Total current | 354 | 254 | 534 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | 8,120 | 4,049 | (1,749 | ) | |||||||||||||||||||||
State | 30 | — | (99 | ) | |||||||||||||||||||||
Total deferred | 8,150 | 4,049 | (1,848 | ) | |||||||||||||||||||||
Income taxes | $ | 8,504 | $ | 4,303 | $ | (1,314 | ) | ||||||||||||||||||
A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax expense for the years ended December 31 is as follows (in thousands): | |||||||||||||||||||||||||
2014 | % | 2013 | % | 2012 | % | ||||||||||||||||||||
U.S. statutory rate | $ | 8,338 | 35 | % | $ | 4,037 | 35 | % | $ | (1,892 | ) | 35 | % | ||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||||
State income taxes | 311 | 1 | 317 | 2.7 | 783 | (14.5 | ) | ||||||||||||||||||
Qualified Production Activities | (21 | ) | (0.1 | ) | |||||||||||||||||||||
Other | (124 | ) | (0.2 | ) | (51 | ) | (0.4 | ) | (205 | ) | 3.8 | ||||||||||||||
Income tax expense | $ | 8,504 | 35.7 | % | $ | 4,303 | 37.3 | % | $ | (1,314 | ) | 24.3 | % | ||||||||||||
LINE_OF_CREDIT
LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | 8. LINE OF CREDIT |
The Company has a credit agreement with Whitney Bank and JPMorgan Chase Bank, N.A. that provides the Company with an $80 million revolving credit facility (the “Credit Facility”). The Credit Facility also allows the Company to use up to the full amount of the available borrowing base for letters of credit. On October 23, 2014, we entered into an amendment to our credit facility to extend the maturity date from December 31, 2014 to December 31, 2015. | |
The Credit Facility is secured by substantially all of our assets other than real property located in the state of Louisiana. Amounts borrowed under the Credit Facility bear interest, at our option, at either the prime lending rate established by JPMorgan Chase Bank, N.A. or LIBOR plus 1.5 percent. We pay a fee on a quarterly basis of one-fourth of one percent per annum on the weighted-average unused portion of the Credit Facility. | |
At December 31, 2014, no amounts were outstanding under the Credit Facility, and we had outstanding letters of credit totaling $21.0 million, reducing the unused portion of our credit facility to $59.0 million. We are required to maintain certain financial covenants, including a minimum current ratio of 1.25 to 1.0, a net worth minimum requirement of $254.1 million, debt to net worth ratio of 0.5 to 1.0, and earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense ratio of 4.0 to 1.0. As of December 31, 2014, we were in compliance with these covenants. |
CONTINGENT_LIABILITIES
CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | 9. CONTINGENT LIABILITIES |
The Company is subject to various routine legal proceedings in the normal conduct of its business, primarily involving commercial claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the United States and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, management believes that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
REVENUES_FROM_MAJOR_CUSTOMERS
REVENUES FROM MAJOR CUSTOMERS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
REVENUES FROM MAJOR CUSTOMERS | 10. REVENUES FROM MAJOR CUSTOMERS | ||||||||||||
The Company’s customer base is primarily concentrated in the oil and gas and marine industries. The Company is not dependent on any one customer, and the revenue earned from each customer varies from year to year based on the contracts awarded; however, the Company is highly dependent on a few large customers in each year, particularly customers for our major deepwater projects, as shown below. Revenues from customers comprising 10% or more of the Company’s total revenue for the years ended December 31 are summarized as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Williams Field Services-Gulf Coast Company L.P. | * | $ | 216,875 | $ | 124,841 | ||||||||
Chevron Corporation | * | 148,539 | 192,370 | ||||||||||
Walter Oil & Gas | 160,173 | * | * | ||||||||||
Anadarko | 98,644 | * | * | ||||||||||
* | The customer revenue was less than 10% of the total revenue for the year |
INTERNATIONAL_REVENUES
INTERNATIONAL REVENUES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
INTERNATIONAL REVENUES | 11. INTERNATIONAL REVENUES | ||||||||||||
The Company’s fabricated structures are used worldwide by U.S. customers operating abroad and by foreign customers. Revenues related to fabricated structures for delivery outside of the United States accounted for 10%, 6%, and 9% of the Company’s revenues for the years ended December 31, 2014, 2013 and 2012, respectively, as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Location: | |||||||||||||
United States | $ | 456.8 | $ | 570.7 | $ | 472.4 | |||||||
International | 49.8 | 37.6 | 48.9 | ||||||||||
Total | $ | 506.6 | $ | 608.3 | $ | 521.3 | |||||||
CONTRACT_COSTS
CONTRACT COSTS | 12 Months Ended |
Dec. 31, 2014 | |
Contractors [Abstract] | |
CONTRACT COSTS | 12. CONTRACT COSTS |
We define pass-through costs as material, freight, equipment rental, and sub-contractor services included in the direct costs of revenue associated with projects. | |
The Company uses the percentage-of-completion accounting method for fabrication contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to our estimate of total anticipated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus pass-through costs incurred on the contract during the period. Consequently, pass-through costs have no impact in the determination of gross margin recognized for the related project for a particular period. | |
Pass-through costs as a percentage of revenue were 48.2%, 58.5% and 48.3% for the years ended December 31, 2014, 2013 and 2012, respectively. | |
There were no prepaid subcontractor costs at December 31, 2014 and 2013 and $33.1 million as of December 31, 2012. These costs represent uninstalled materials purchased using customer funds, and are recognized as pass-through costs in the period the materials are installed. |
RETIREMENT_PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLAN | 13. RETIREMENT PLAN |
The Company has a defined contribution plan for all employees that are qualified under Section 401(k) of the Internal Revenue Code. Gulf Island Resources employees are not eligible for the retirement plan. Contributions to the retirement plan by the Company are based on the participants’ contributions, with an additional year-end discretionary contribution determined by the Board of Directors. For the years ended December 31, 2014 and 2013, the Company contributed a total of $2.6 million and $2.7 million, respectively. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | 14. EARNINGS PER SHARE | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Numerator: | |||||||||||||
Net Income (loss) | $ | 15,320 | $ | 7,232 | $ | (4,091 | ) | ||||||
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||
Net income (loss) attributable to common shareholders | $ | 15,216 | $ | 7,157 | $ | (4,137 | ) | ||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,463 | 14,400 | ||||||||||
Basic earnings per share—common shareholders | $ | 1.05 | $ | 0.5 | $ | (0.29 | ) | ||||||
Diluted: | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 15,320 | $ | 7,232 | $ | (4,091 | ) | ||||||
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||
Net income attributable to common shareholders | $ | 15,216 | $ | 7,157 | $ | (4,137 | ) | ||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,463 | 14,400 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | — | 6 | — | ||||||||||
Denominator for dilutive earnings per share-weighted-average shares | 14,505 | 14,469 | 14,400 | ||||||||||
Diluted earnings per share—common shareholders | $ | 1.05 | $ | 0.5 | $ | (0.29 | ) | ||||||
LONGTERM_INCENTIVE_PLANS
LONG-TERM INCENTIVE PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
LONG-TERM INCENTIVE PLANS | 15. LONG-TERM INCENTIVE PLANS | ||||||||||||||||
On February 13, 1997, the shareholders approved the adoption of the Long-Term Incentive Plan (the “Plan”). The Plan authorizes the grant of options to purchase an aggregate of 1,000,000 (split adjusted) shares of the Company’s common stock to certain officers and key employees of the Company chosen by a committee appointed by the board of directors (the “compensation committee”) to administer such Plan. Under the Plan, all options granted have 10-year terms, and the conditions relating to the vesting and exercise of the options result in their being classified as “nonstatutory options” (options which do not afford income tax benefits to recipients, but the exercise of which may provide tax deductions for the Company). Each option will have an exercise price per share not less than the market price of the common stock on the date of grant and no individual employee may be granted options to purchase more than an aggregate of 400,000 shares of common stock. | |||||||||||||||||
On April 24, 2002, the shareholders approved the adoption of the 2002 Long-Term Incentive Plan, which was amended by the shareholders on April 26, 2006 (the “2002 Plan”). The 2002 Plan authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. Under the 2002 Plan, all options granted have 10-year terms, and the conditions relating to the vesting and exercise of the options result in their being classified as nonstatutory options. Each option will have an exercise price per share not less than the market price of the common stock on the date of grant and no individual employee may be granted options to purchase more than an aggregate of 200,000 shares of common stock. | |||||||||||||||||
On April 28, 2011, the shareholders approved the adoption of the 2011 Stock Incentive Plan (the “2011 Plan”). The 2011 Plan authorizes the grant of awards, including options, to purchase an aggregate of 500,000 shares of the Company’s common stock to certain officers, key employees, directors and consultants of the Company chosen by the compensation committee. Under the 2011 Plan, all options granted have 10-year terms, and the conditions relating to the vesting and exercise of the options result in their being classified as nonstatutory options. Each option will have an exercise price per share not less than the market price of the common stock on the date of grant and no individual employee may be granted options to purchase more than an aggregate of 200,000 shares of common stock. | |||||||||||||||||
At December 31, 2014, there were approximately 542,000 shares in the aggregate remaining available for future issuance under the Plan, the 2002 Plan and the 2011 Plan (together, the “Incentive Plans”). The Company issues new shares through its transfer agent upon stock option exercises or restricted share issuances. The compensation committee did not grant any stock options under the Incentive Plans during the years ended December 31, 2014, 2013, or 2012. | |||||||||||||||||
A summary of the Company’s stock option activity as of December 31, 2014, and changes during the year then ended is presented below: | |||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | $0 | |||||||||||||||
Term | |||||||||||||||||
Outstanding at December 31, 2011 | 91,800 | $ | 19.07 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (15,065 | ) | 18.15 | ||||||||||||||
Forfeited or expired | (43,835 | ) | 18.82 | ||||||||||||||
Outstanding at December 31, 2012 | 32,900 | $ | 19.83 | 1.5 | $ | 138 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | (2,900 | ) | 16.69 | ||||||||||||||
Forfeited or expired | (10,000 | ) | 16.69 | ||||||||||||||
Outstanding at December 31, 2013 | 20,000 | $ | 21.85 | 0.9 | $ | 27 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | (20,000 | ) | $ | 21.85 | |||||||||||||
Outstanding at December 31, 2014 | — | — | — | — | |||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013, and 2012, was $0, $26,000, and $250,000, respectively. | |||||||||||||||||
Cash received from option exercises for the years ended December 31, 2014, 2013 and 2012 was $0, $48,000, and $17,000, respectively. The excess tax benefit realized for the tax deductions from option exercise of the share-based payment arrangements totaled $0, $116,000 and $259,000, respectively, for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||
As of December 31, 2014, all compensation costs related to options granted under the Incentive Plans were recognized. All options granted under the Incentive Plans have vested as of December 31, 2009. | |||||||||||||||||
Under the Incentive Plans, the compensation committee may award shares of restricted stock to eligible participants as the Committee determines pursuant to the terms of the Incentive Plans. An award of restricted stock shall be subject to transfer restrictions, forfeit provisions and other terms and conditions subject to the provisions of the Incentive Plans. At the time an award of restricted stock is made, the compensation committee shall establish a period of time during which the transfer of the shares of restricted stock shall be restricted and after which the shares of restricted stock shall be vested. Except for the shares of restricted stock that vest based on the attainment of performance goals, the restricted period shall be a minimum of three years, with incremental vesting of portions of the award over the three-year period permitted. | |||||||||||||||||
The Incentive Plans do not have any limitations on the amount of shares that can be specifically awarded as restricted stock. Restricted stock granted to our non-employee directors have six-month vesting periods. Awards of restricted stock granted to employees during 2013 vest in annual 20% installments beginning on the first anniversary of the date of the grant. The fair value of restricted stock is determined based on the closing price of the Company’s common stock on the date of the grant. In 2014, the compensation committee granted 6,000 shares with a weighted average grant-date fair value of $23.19. The compensation committee granted 100,150 shares of restricted stock in 2013 with a weighted-average grant date fair value of $23.22. The compensation committee granted 60,250 shares of restricted stock in 2012 with a weighted-average grant date fair value of $23.53. A summary of the status of our restricted stock awards is presented in the table below. | |||||||||||||||||
Number | Weighted- | ||||||||||||||||
of Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Restricted shares at December 31, 2011 | 203,730 | $ | 22.99 | ||||||||||||||
Granted | 60,250 | 23.53 | |||||||||||||||
Vested | (61,152 | ) | 21.29 | ||||||||||||||
Forfeited | (59,678 | ) | 22.2 | ||||||||||||||
Restricted shares at December 31, 2012 | 143,150 | $ | 24.28 | ||||||||||||||
Granted | 100,150 | 23.22 | |||||||||||||||
Vested | (38,188 | ) | 23.14 | ||||||||||||||
Forfeited | (26,162 | ) | 23.82 | ||||||||||||||
Restricted shares at December 31, 2013 | 178,950 | $ | 24 | ||||||||||||||
Granted | 6,000 | 23.19 | |||||||||||||||
Vested | (45,356 | ) | 23.35 | ||||||||||||||
Forfeited | (31,754 | ) | 23.85 | ||||||||||||||
Restricted shares at December 31, 2014 | 107,840 | $ | 24.27 | ||||||||||||||
As of December 31, 2014, there was $2.0 million of total unrecognized compensation cost related to restricted share-based compensation arrangements granted under the Incentive Plans. This cost is expected to be recognized over a weighted-average period of 3.2 years. The total fair value of shares vested during the year ended December 31, 2014 was $1.3 million. | |||||||||||||||||
Share-based compensation cost that has been charged against income for the Incentive Plans was $1.1 million, $0.7 million and $1.2 million for 2014, 2013 and 2012, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $49,000, $116,000 and $297,000 for 2014, 2013 and 2012, respectively. |
QUARTERLY_OPERATING_RESULTS_UN
QUARTERLY OPERATING RESULTS (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
QUARTERLY OPERATING RESULTS (UNAUDITED) | 16. QUARTERLY OPERATING RESULTS (UNAUDITED) | ||||||||||||||||
A summary of quarterly results of operations for the years ended December 31, 2014 and 2013 were as follows (in thousands, except per share data): | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 (a) | 2014 (a) | 2014 (a)(b) | ||||||||||||||
Revenue | $ | 134,690 | $ | 129,169 | $ | 118,020 | $ | 124,760 | |||||||||
Gross profit | 8,773 | 10,322 | 14,653 | 10,808 | |||||||||||||
Net Income (loss) | 3,535 | 4,310 | 7,586 | (111 | ) | ||||||||||||
Basic EPS | 0.24 | 0.3 | 0.52 | (0.01 | ) | ||||||||||||
Diluted EPS | 0.24 | 0.3 | 0.52 | (0.01 | ) | ||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 (a) | 2013 (a) | 2013 (a) | ||||||||||||||
Revenue | $ | 150,422 | $ | 154,575 | $ | 168,191 | $ | 135,138 | |||||||||
Gross profit (loss) | 6,704 | 9,677 | 9,055 | (1,775 | ) | ||||||||||||
Net income (loss) | 2,787 | 4,279 | 3,276 | (3,110 | ) | ||||||||||||
Basic EPS | 0.19 | 0.3 | 0.23 | (0.22 | ) | ||||||||||||
Diluted EPS | 0.19 | 0.3 | 0.23 | (0.22 | ) | ||||||||||||
(a) | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under “Revenue Recognition” above. | ||||||||||||||||
(b) | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS |
On February 26, 2015, our Board of Directors declared a dividend of $0.10 per share on the shares of our common stock outstanding, payable March 27, 2015 to shareholders of record on March 13, 2015. |
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Accounting Policies [Abstract] | ||||
Basis of Presentation | Basis of Presentation | |||
Gulf Island Fabrication, Inc., together with its subsidiaries (the “Company”, “we” or “our”), is a leading fabricator of offshore drilling and production platforms and other specialized structures. The Company’s principal corporate office is located in Houston, Texas and its fabrication facilities are located in Houma, Louisiana and San Patricio County, Texas. The Company’s principal markets are concentrated in the offshore regions and along the coast of the Gulf of Mexico. The consolidated financial statements include the accounts of Gulf Island Fabrication, Inc. and its majority owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||
Gulf Island Fabrication, Inc. (“Gulf Island,” “we,” “our” or the “Company”) serves as a holding company and conducts all of its operations through its subsidiaries, which include Gulf Island, L.L.C. and Gulf Marine Fabricators, L.P. (both of which perform fabrication of offshore drilling and production platforms and other specialized structures used in the development and production of oil and gas reserves), Gulf Island Marine Fabricators, L.L.C. (which performs marine fabrication and construction services), Dolphin Services, L.L.C. (which performs offshore and onshore fabrication and construction services), Dolphin Steel Sales, L.L.C. (which sells steel plate and other steel products) and Gulf Island Resources, L.L.C. (which hires laborers with similar rates and terms as those provided by contract labor service companies). | ||||
Operating Cycle | Operating Cycle | |||
The lengths of our contracts vary, but are typically longer than one year in duration. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are regarded as current regardless of whether cash will be received or paid within a twelve month period. Assets and liabilities classified as current which may not be paid or received within the next twelve months include contract retainage, costs and estimated earnings in excess of billings on uncompleted contracts, and billings in excess of costs and estimated earnings on uncompleted contracts. However, any variation from normal contract terms would cause classification of assets and liabilities as long-term. | ||||
Use of Estimates | Use of Estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Areas requiring significant estimates by our management include asset impairments, value of assets held for sale, provisions for contract losses, contract revenues, costs and profits and the application of the percentage-of-completion (POC) method of accounting. Actual results could differ from those estimates. | ||||
Cash Equivalents | Cash Equivalents | |||
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. | ||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||
We routinely review individual contracts receivable balances and make provisions for probable doubtful accounts as we deem appropriate. Among the factors considered during the review are the financial condition of our customer and their access to financing, underlying disputes on the account, age and amount of the account and overall economic conditions. Accounts are written off only when all reasonable collection efforts are exhausted. | ||||
Our principal customers include major and large independent oil and gas companies and their contractors and marine vessel operators and their contractors. This concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic or other conditions. Receivables are generally not collateralized. In the normal course of business, we extend credit to our customers on a short-term basis. | ||||
During the fourth quarter of 2014, the Company included an allowance for bad debt in the amount of $3.6 million in connection with negotiations of an outstanding contract receivable balance with a deepwater offshore customer related to a deepwater hull project completed during the first quarter of 2014. | ||||
At December 31, 2013, the Company included an allowance for bad debt in the amount of $0.9 million in connection with a vessel upgrade and outfitting project. The Company collected $0.6 million of this balance as part of the final settlement during the fourth quarter 2014. | ||||
Stock-Based Compensation | Stock-Based Compensation | |||
Awards under the Company’s stock-based compensation plans are calculated using a fair-value based measurement method. Share-based compensation expense for share based awards is recognized only for those awards that are expected to vest. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. | ||||
Inventory | Inventory | |||
Inventory consists of materials and production supplies and is stated at the lower of cost or market determined on the first-in, first-out basis. | ||||
Assets Held for Sale | Assets Held for Sale | |||
Assets held for sale are required to be measured at the lower of their carrying amount or fair value less cost to sell. Management determined fair value with the assistance of third party valuation specialists, assuming the sale of the underlying assets individually or in aggregate to a willing market participant, including normal ownership risks assumed by the purchaser, and the sale of certain components at scrap value. We estimated fair value relying primarily on the cost approach and applied the market approach where comparable sales transaction information was readily available. The cost approach is based on current replacement and reproduction costs of the subject assets less depreciation attributable to physical, functional, and economic factors. The market approach involves gathering data on sales and offerings of similar assets in order to value the subject assets. This approach also includes the assumption for the measurement of the loss in value from physical, functional, and economic factors. The fair value of the assets held for sale at December 31, 2014 represent Level 3 fair value measurements (as defined by GAAP), based primarily on the limited availability of market pricing information for either identical or similar items. | ||||
Workers Compensation Liability | Workers Compensation Liability | |||
The Company and its subsidiaries are self-insured for workers’ compensation liability except for losses in excess of varying threshold amounts. Our workers compensation liability balance was $2.7 million and $1.9 million as of December 31, 2014 and 2013, respectively. | ||||
Property, Plant and Equipment | Property, Plant and Equipment | |||
Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets, which range from 3 to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. | ||||
Long-Lived Assets | Long-Lived Assets | |||
The Company records impairment losses on long-lived assets or asset groups used in operations when events and circumstances indicate that the assets or asset groups might be impaired and the undiscounted cash flows that are estimated to be generated by those assets or asset groups are less than the carrying amounts of those assets or asset groups. The impairment loss is determined by comparing the fair value of the asset or asset group to its carrying amount and recording the excess of the carrying amount of the asset or asset group over its fair value as an impairment charge. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other asset or liability groups. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Due to the slow down in our industry as a result of the downturn in oil prices, we identified indicators of impairment at our Texas facility. Management performed an undiscounted cash flow analysis during the fourth quarter of 2014 for the Texas facility, which did not result in impairment. | ||||
Fair Value Measurements | Fair Value Measurements | |||
The Company bases its fair value determinations of the carrying value of other financial assets and liabilities on an evaluation of their particular facts and circumstances and valuation techniques that require judgments and estimates. Valuation techniques used to measure fair value maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | ||||
• | Level 1—inputs are based upon quoted prices for identical instruments traded in active markets. | |||
• | Level 2—inputs are based upon quoted prices for similar instruments in active markets, quoted prices for similar or identical instruments in inactive markets and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets and liabilities. | |||
• | Level 3—inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar valuation techniques. | |||
The carrying amounts that we have reported for financial instruments, including cash and cash equivalents, accounts receivables and accounts payable approximate their fair values. See Note 5-“Assets Held for Sale” for additional information regarding fair value measurements. | ||||
Revenue Recognition | Revenue Recognition | |||
The Company uses the percentage-of-completion accounting method for construction contracts. Revenue from fixed-price or unit rate contracts is recognized on the percentage-of-completion method, computed by the efforts-expended method which measures the percentage of labor hours incurred to date as compared to estimated total labor hours for each contract. This progress percentage is applied to estimated gross profit for each contract to determine gross profit earned to date. Revenue recognized in a period for a contract is the amount of gross profit earned for that period plus the costs incurred on the contract during the period. | ||||
Under a unit rate contract, material items or labor tasks are assigned unit rates of measure. The unit rates of measure will generally be an amount of dollars per ton, per foot, per square foot or per item installed. A typical unit rate contract can contain hundreds to thousands of unit rates of measure. Profit margins are built into the unit rates. | ||||
Some contracts include a total or partial reimbursement to us of any costs associated with specific capital projects required by the fabrication process. If a particular capital project provides future benefits to us, the cost to build the capital project will be capitalized, and the revenue for the capital project will increase the estimated profit in the contract. | ||||
Contract costs include all direct material, labor and subcontract costs and those indirect costs related to contract performance, such as indirect labor, supplies and tools. Also included in contract costs are a portion of those indirect contract costs related to plant capacity, such as depreciation, insurance and repairs and maintenance. These indirect costs are allocated to jobs based on actual direct labor hours incurred. Profit incentives are included in revenue when their realization is probable. Claims for extra work or changes in scope of work are included in revenue when the amount can be reliably estimated and collection is probable. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined. | ||||
Some of our contracts contain provisions that require us to pay liquidated damages if we are responsible for the failure to meet specified contractual milestone dates and the applicable customer asserts a claim under those provisions. Those contracts define the conditions under which our customers may make claims against us for liquidated damages. In many cases in which we have historically had potential exposure for liquidated damages, such damages ultimately were not asserted by our customers. In 2014, we had one asserted liquidated damages claim in the amount of $0.3 million that was fully settled, related to the fabrication of an offshore supply vessel. As of March 5, 2015, We are not aware of any significant additional liquidated damage claims. | ||||
At December 31, 2014, we had no revenue related to unapproved change orders on projects. At December 31, 2013, we recorded revenue totaling $0.1 million related to certain change orders on two projects which had been approved as to scope but not price. At December 31, 2013, we recorded revenue totaling $3.7 million related to re-measure units and quantities on a unit rate contract. At December 31, 2012, we recorded revenue totaling $5.2 million related to certain change-orders on four projects which were approved as to scope but not price. At December 31, 2012, we recorded revenue totaling $7.7 million related to re-measure units and quantities on a unit rate contract. All matters relating to unapproved items have since been resolved. | ||||
Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. We recognized contract losses of $6.6 million, $30.8 million, and $12.5 million in the years ended December 31, 2014, 2013, and 2012, respectively. | ||||
During the quarter ended September 30, 2013, we entered into discussions with a large deepwater customer concerning our customer’s request for a reduction in scope of the project, whereby remaining completion and integration work would be performed at the integration site by a different integration contractor. We transferred the project deliverables to the integration contractor’s site and removed from backlog estimated revenue of $25.5 million and estimated labor hours of 271,000 hours representing our previous estimate of remaining work to complete the project during the third quarter of 2013. Throughout the fourth quarter of 2013 and into the first quarter 2014, we continued negotiations with our large deepwater customer with respect to final amounts due to us and to our subcontractors for claims for all work performed prior to transition of the scope of work to the customer-designated replacement contractor. We executed a final change order to this contract with the customer in early March 2014 that provided for a final payment of $11.0 million by our customer that was received during the first half of 2014. We recorded an additional loss provision of $18.2 million in the fourth quarter of 2013 related to this project. For the year ended December 31, 2013, we recognized estimated contract losses of $29.6 million primarily as a result of our inability to recover certain costs and the de-scoping of this contract. | ||||
Income Taxes | Income Taxes | |||
Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the basis differences reverse. A valuation allowance is provided to reserve for deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | ||||
Reserves for uncertain tax positions are recognized when the positions are more likely than not to not be sustained upon audit. Interest and penalties on uncertain tax positions are recorded in income tax expense. Our federal tax returns have been examined and settled through the 2007 tax year. There were no material uncertain tax positions recorded for the years presented in these statements. | ||||
Accounting Standards | Accounting Standards | |||
On May 28, 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification (ASC) Topic 605, “Revenue Recognition.” ASU No. 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 requires retrospective application and will be effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early application is not permitted. The Company is evaluating the effect of this new standard on its financial statements. |
CONTRACTS_RECEIVABLE_Tables
CONTRACTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Amounts Due on Contracts | Amounts due on contracts as of December 31 were as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Completed contracts | |||||||||
Current receivables | $ | 24,667 | $ | 3,885 | |||||
Long term receivables due after one year | — | — | |||||||
Contracts in progress: | |||||||||
Current receivables | 59,384 | 95,581 | |||||||
Retainage due within one year | — | 111 | |||||||
84,051 | 99,577 | ||||||||
Less allowance for doubtful accounts | 3,603 | 887 | |||||||
$ | 80,448 | $ | 98,690 | ||||||
COSTS_AND_ESTIMATED_EARNINGS_O1
COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Information with Respect to Uncompleted Contracts | Information with respect to uncompleted contracts as of December 31 is as follows (in thousands): | ||||||||
2014 | 2013 | ||||||||
Costs incurred on uncompleted contracts | $ | 742,608 | $ | 991,123 | |||||
Estimated profit earned to date | 53,551 | 40,045 | |||||||
796,159 | 1,031,168 | ||||||||
Less billings to date | 787,936 | 1,041,447 | |||||||
$ | 8,223 | $ | (10,279 | ) | |||||
Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets | The above amounts are included in the accompanying consolidated balance sheets at December 31 under the following captions (in thousands): | ||||||||
2014 | 2013 | ||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ | 26,989 | $ | 24,727 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (18,766 | ) | (35,006 | ) | |||||
$ | 8,223 | $ | (10,279 | ) | |||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31 (in thousands): | ||||||||||||
Estimated | 2014 | 2013 | |||||||||||
Useful Life | |||||||||||||
(in Years) | |||||||||||||
Land | n/a | $ | 10,463 | $ | 10,463 | ||||||||
Buildings | 25 | 63,837 | 62,515 | ||||||||||
Machinery and equipment | 3 to 25 | 228,284 | 198,611 | ||||||||||
Furniture and fixtures | 3 to 5 | 5,354 | 5,143 | ||||||||||
Transportation equipment | 3 to 5 | 3,748 | 3,224 | ||||||||||
Improvements | 15 | 125,265 | 123,201 | ||||||||||
Construction in progress | n/a | 1,177 | 7,450 | ||||||||||
438,128 | 410,607 | ||||||||||||
Less accumulated depreciation | 213,351 | 187,052 | |||||||||||
$ | 224,777 | $ | 223,555 | ||||||||||
Schedule of Minimum Future Rental Payments | The schedule of minimum rental payments for operating leases (in thousands) is as follows: | ||||||||||||
2015 | $ | 213 | |||||||||||
2016 | 217 | ||||||||||||
2017 | 221 | ||||||||||||
2018 | 225 | ||||||||||||
2019 | 229 | ||||||||||||
Thereafter | 19 | ||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31 were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property, plant and equipment | $ | 38,070 | $ | 38,397 | |||||||||||||||||||||
Prepaid insurance | 1,310 | — | |||||||||||||||||||||||
Total deferred tax liabilities: | 39,380 | 38,397 | |||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Employee benefits | 951 | 677 | |||||||||||||||||||||||
Uncompleted contracts | 391 | 931 | |||||||||||||||||||||||
Stock based compensation expense | 43 | 65 | |||||||||||||||||||||||
Allowance for uncollectible accounts | 1,261 | 311 | |||||||||||||||||||||||
Federal net operating loss | — | 7,584 | |||||||||||||||||||||||
Other | — | 359 | |||||||||||||||||||||||
Total deferred tax assets: | 2,646 | 9,927 | |||||||||||||||||||||||
Net deferred tax liabilities: | $ | 36,734 | $ | 28,470 | |||||||||||||||||||||
Components of Income Tax Expense | Significant components of income tax expense for the years ended December 31 were as follows (in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | (105 | ) | $ | — | $ | — | ||||||||||||||||||
State | 459 | 254 | 534 | ||||||||||||||||||||||
Total current | 354 | 254 | 534 | ||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | 8,120 | 4,049 | (1,749 | ) | |||||||||||||||||||||
State | 30 | — | (99 | ) | |||||||||||||||||||||
Total deferred | 8,150 | 4,049 | (1,848 | ) | |||||||||||||||||||||
Income taxes | $ | 8,504 | $ | 4,303 | $ | (1,314 | ) | ||||||||||||||||||
Reconciliation of Income Tax | A reconciliation of income taxes computed at the U.S. federal statutory tax rate to the Company’s income tax expense for the years ended December 31 is as follows (in thousands): | ||||||||||||||||||||||||
2014 | % | 2013 | % | 2012 | % | ||||||||||||||||||||
U.S. statutory rate | $ | 8,338 | 35 | % | $ | 4,037 | 35 | % | $ | (1,892 | ) | 35 | % | ||||||||||||
Increase (decrease) resulting from: | |||||||||||||||||||||||||
State income taxes | 311 | 1 | 317 | 2.7 | 783 | (14.5 | ) | ||||||||||||||||||
Qualified Production Activities | (21 | ) | (0.1 | ) | |||||||||||||||||||||
Other | (124 | ) | (0.2 | ) | (51 | ) | (0.4 | ) | (205 | ) | 3.8 | ||||||||||||||
Income tax expense | $ | 8,504 | 35.7 | % | $ | 4,303 | 37.3 | % | $ | (1,314 | ) | 24.3 | % | ||||||||||||
REVENUES_FROM_MAJOR_CUSTOMERS_
REVENUES FROM MAJOR CUSTOMERS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Revenues from Customers | Revenues from customers comprising 10% or more of the Company’s total revenue for the years ended December 31 are summarized as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Williams Field Services-Gulf Coast Company L.P. | * | $ | 216,875 | $ | 124,841 | ||||||||
Chevron Corporation | * | 148,539 | 192,370 | ||||||||||
Walter Oil & Gas | 160,173 | * | * | ||||||||||
Anadarko | 98,644 | * | * |
INTERNATIONAL_REVENUES_Tables
INTERNATIONAL REVENUES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Company Revenues by Geographic Location | Revenues related to fabricated structures for delivery outside of the United States accounted for 10%, 6%, and 9% of the Company’s revenues for the years ended December 31, 2014, 2013 and 2012, respectively, as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In millions) | |||||||||||||
Location: | |||||||||||||
United States | $ | 456.8 | $ | 570.7 | $ | 472.4 | |||||||
International | 49.8 | 37.6 | 48.9 | ||||||||||
Total | $ | 506.6 | $ | 608.3 | $ | 521.3 | |||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Earnings (Loss) Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic: | |||||||||||||
Numerator: | |||||||||||||
Net Income (loss) | $ | 15,320 | $ | 7,232 | $ | (4,091 | ) | ||||||
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||
Net income (loss) attributable to common shareholders | $ | 15,216 | $ | 7,157 | $ | (4,137 | ) | ||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,463 | 14,400 | ||||||||||
Basic earnings per share—common shareholders | $ | 1.05 | $ | 0.5 | $ | (0.29 | ) | ||||||
Diluted: | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 15,320 | $ | 7,232 | $ | (4,091 | ) | ||||||
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||
Net income attributable to common shareholders | $ | 15,216 | $ | 7,157 | $ | (4,137 | ) | ||||||
Denominator: | |||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,463 | 14,400 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee stock options | — | 6 | — | ||||||||||
Denominator for dilutive earnings per share-weighted-average shares | 14,505 | 14,469 | 14,400 | ||||||||||
Diluted earnings per share—common shareholders | $ | 1.05 | $ | 0.5 | $ | (0.29 | ) | ||||||
LONGTERM_INCENTIVE_PLANS_Table
LONG-TERM INCENTIVE PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Summary of Stock Option Activity | A summary of the Company’s stock option activity as of December 31, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Options | Weighted- | Weighted- | Aggregate | ||||||||||||||
Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | $0 | |||||||||||||||
Term | |||||||||||||||||
Outstanding at December 31, 2011 | 91,800 | $ | 19.07 | ||||||||||||||
Granted | — | ||||||||||||||||
Exercised | (15,065 | ) | 18.15 | ||||||||||||||
Forfeited or expired | (43,835 | ) | 18.82 | ||||||||||||||
Outstanding at December 31, 2012 | 32,900 | $ | 19.83 | 1.5 | $ | 138 | |||||||||||
Granted | — | — | |||||||||||||||
Exercised | (2,900 | ) | 16.69 | ||||||||||||||
Forfeited or expired | (10,000 | ) | 16.69 | ||||||||||||||
Outstanding at December 31, 2013 | 20,000 | $ | 21.85 | 0.9 | $ | 27 | |||||||||||
Granted | — | — | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | (20,000 | ) | $ | 21.85 | |||||||||||||
Outstanding at December 31, 2014 | — | — | — | — | |||||||||||||
Summary of Status of Restricted Stock Awards | A summary of the status of our restricted stock awards is presented in the table below. | ||||||||||||||||
Number | Weighted- | ||||||||||||||||
of Shares | Average | ||||||||||||||||
Grant-Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Per Share | |||||||||||||||||
Restricted shares at December 31, 2011 | 203,730 | $ | 22.99 | ||||||||||||||
Granted | 60,250 | 23.53 | |||||||||||||||
Vested | (61,152 | ) | 21.29 | ||||||||||||||
Forfeited | (59,678 | ) | 22.2 | ||||||||||||||
Restricted shares at December 31, 2012 | 143,150 | $ | 24.28 | ||||||||||||||
Granted | 100,150 | 23.22 | |||||||||||||||
Vested | (38,188 | ) | 23.14 | ||||||||||||||
Forfeited | (26,162 | ) | 23.82 | ||||||||||||||
Restricted shares at December 31, 2013 | 178,950 | $ | 24 | ||||||||||||||
Granted | 6,000 | 23.19 | |||||||||||||||
Vested | (45,356 | ) | 23.35 | ||||||||||||||
Forfeited | (31,754 | ) | 23.85 | ||||||||||||||
Restricted shares at December 31, 2014 | 107,840 | $ | 24.27 |
QUARTERLY_OPERATING_RESULTS_UN1
QUARTERLY OPERATING RESULTS (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Quarterly Results of Operations | A summary of quarterly results of operations for the years ended December 31, 2014 and 2013 were as follows (in thousands, except per share data): | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014 | 2014 (a) | 2014 (a) | 2014 (a)(b) | ||||||||||||||
Revenue | $ | 134,690 | $ | 129,169 | $ | 118,020 | $ | 124,760 | |||||||||
Gross profit | 8,773 | 10,322 | 14,653 | 10,808 | |||||||||||||
Net Income (loss) | 3,535 | 4,310 | 7,586 | (111 | ) | ||||||||||||
Basic EPS | 0.24 | 0.3 | 0.52 | (0.01 | ) | ||||||||||||
Diluted EPS | 0.24 | 0.3 | 0.52 | (0.01 | ) | ||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 (a) | 2013 (a) | 2013 (a) | ||||||||||||||
Revenue | $ | 150,422 | $ | 154,575 | $ | 168,191 | $ | 135,138 | |||||||||
Gross profit (loss) | 6,704 | 9,677 | 9,055 | (1,775 | ) | ||||||||||||
Net income (loss) | 2,787 | 4,279 | 3,276 | (3,110 | ) | ||||||||||||
Basic EPS | 0.19 | 0.3 | 0.23 | (0.22 | ) | ||||||||||||
Diluted EPS | 0.19 | 0.3 | 0.23 | (0.22 | ) | ||||||||||||
(a) | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under “Revenue Recognition” above. | ||||||||||||||||
(b) | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
Recovered_Sheet1
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | |
Project | Project | |||||
Significant Accounting Policies [Line Items] | ||||||
Allowance for bad debt | $3,603,000 | $3,603,000 | $887,000 | $887,000 | ||
Allowance for doubtful accounts recovered | 600,000 | |||||
Workers compensation liability | 2,700,000 | 2,700,000 | 1,900,000 | 1,900,000 | ||
Liquidated damages paid | 300,000 | |||||
Total revenue recorded in relation to orders change in projects | 0 | 100,000 | 5,200,000 | |||
Number of projects orders changed | 2 | 4 | ||||
Total revenue recorded in relation to re-measure units and quantities on a unit rate contract in progress | 3,700,000 | 7,700,000 | ||||
Recognized contract losses from uncompleted contracts | 6,600,000 | 30,800,000 | 12,500,000 | |||
Additional loss provision | 14,501,000 | |||||
Large Deepwater Customer [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Recognized contract losses from uncompleted contracts | 29,600,000 | |||||
Estimated removed revenue from the backlog | 25,500,000 | |||||
Estimated labor hours, removed from backlog | 271000 hours | |||||
Payment for settlement of contract | 11,000,000 | |||||
Additional loss provision | $18,200,000 | |||||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of Property, plant and equipment | 3 years | |||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated life of Property, plant and equipment | 25 years |
Recovered_Sheet2
Contracts Receivable and Retainage - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer | |||
Long-term Contracts or Programs Disclosure [Line Items] | |||
Contract receivable | $80,448,000 | $80,448,000 | $98,579,000 |
Allowance for bad debt | 3,603,000 | 3,603,000 | 887,000 |
Amount of reserved contract receivable | 600,000 | ||
Top 3 Customer [Member] | |||
Long-term Contracts or Programs Disclosure [Line Items] | |||
Contract receivable | $47,100,000 | $47,100,000 | |
Number of major customers account for 61.6% of contract receivable | 3 | ||
Percentage of contract receivable | 58.50% |
Contracts_Receivable_Amounts_D
Contracts Receivable - Amounts Due on Contracts (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | $80,448 | $98,579 |
Retainage due within one year | 111 | |
Accounts Receivable, Gross | 84,051 | 99,577 |
Less allowance for doubtful accounts | 3,603 | 887 |
Accounts Receivable, Net | 80,448 | 98,690 |
Completed Contracts [Member] | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 24,667 | 3,885 |
Long term receivables due after one year | ||
Contracts In Progress [Member] | ||
Long-term Contracts or Programs Disclosure [Line Items] | ||
Current receivables | 59,384 | 95,581 |
Retainage due within one year | $111 |
Recovered_Sheet3
Costs and Estimated Earnings on Uncompleted Contracts - Information with Respect to Uncompleted Contracts (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $742,608 | $991,123 |
Estimated profit earned to date | 53,551 | 40,045 |
Contract costs and estimated profits | 796,159 | 1,031,168 |
Less billings to date | 787,936 | 1,041,447 |
Costs and estimated earnings in excess of billings | $8,223 | ($10,279) |
Recovered_Sheet4
Costs and Estimated Earnings on Uncompleted Contracts - Uncompleted Contracts Included in Accompanying Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Contractors [Abstract] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $26,989 | $24,727 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -18,766 | -35,006 |
Costs and Estimated Earnings in Excess of Billings | $8,223 | ($10,279) |
Assets_Held_for_Sale_Additiona
Assets Held for Sale - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Long Lived Assets Held-for-sale [Line Items] | |||
Fair value of assets held for sale | $10.30 | ||
Impairment charge | 3.2 | ||
Percentage of fair value of assets held for sale under sales assistance agreement | 50.00% | ||
Loss on sale of aircraft | 0.3 | ||
Aircraft [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Assets held for sale | 1 | ||
Scenario, Previously Reported [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Fair value of assets held for sale | $13.50 |
Property_Plant_and_Equipment_P
Property, Plant and Equipment - Property, Plant and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land | 10,463 | $10,463 |
Buildings | 63,837 | 62,515 |
Machinery and equipment | 228,284 | 198,611 |
Furniture and fixtures | 5,354 | 5,143 |
Transportation equipment | 3,748 | 3,224 |
Improvements | 125,265 | 123,201 |
Construction in progress | 1,177 | 7,450 |
Property, plant and equipment, Gross | 438,128 | 410,607 |
Less accumulated depreciation | 213,351 | 187,052 |
Property, plant and equipment, Net | 224,777 | $223,555 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 0 years | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 0 years | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum [Member] | Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum [Member] | Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum [Member] | Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum [Member] | Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Maximum [Member] | Transportation equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Jun. 10, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 09, 2013 |
Operating Leased Assets [Line Items] | |||||
Lease agreement expenses | $5.60 | $9.50 | $7.70 | ||
Office space area of leased premises | 4,421 | ||||
Lease commencement period | 1-Aug-13 | ||||
Lease agreement period | 64 months | ||||
Extension of lease period | 5 years | ||||
Operating Lease Amendment [Member] | |||||
Operating Leased Assets [Line Items] | |||||
Office space area of leased premises | 3,624 | ||||
Lease expiration date | 31-Jan-20 |
PropertyPlant_and_Equipment_Sc
Property,Plant and Equipment - Schedule of Minimum Future Rental Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | |
2015 | $213 |
2016 | 217 |
2017 | 221 |
2018 | 225 |
2019 | 229 |
Thereafter | $19 |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $38,070 | $38,397 |
Prepaid insurance | 1,310 | |
Total deferred tax liabilities: | 39,380 | 38,397 |
Employee benefits | 951 | 677 |
Uncompleted contracts | 391 | 931 |
Stock based compensation expense | 43 | 65 |
Allowance for uncollectible accounts | 1,261 | 311 |
Federal net operating loss | 7,584 | |
Other | 359 | |
Total deferred tax assets: | 2,646 | 9,927 |
Net deferred tax liabilities: | $36,734 | $28,470 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Operating losses carry forward period | 20 years |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($105) | ||
State | 459 | 254 | 534 |
Total current | 354 | 254 | 534 |
Deferred: | |||
Federal | 8,120 | 4,049 | -1,749 |
State | 30 | -99 | |
Total deferred | 8,150 | 4,049 | -1,848 |
Income tax expense | $8,504 | $4,303 | ($1,314) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate, amount | $8,338 | $4,037 | ($1,892) |
State income taxes, amount | 311 | 317 | 783 |
Qualified Production Activities, amount | -21 | ||
Other, amount | -124 | -51 | -205 |
Income tax expense | $8,504 | $4,303 | ($1,314) |
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes | 1.00% | 2.70% | -14.50% |
Qualified Production Activities | -0.10% | ||
Other | -0.20% | -0.40% | 3.80% |
Income tax expense | 35.70% | 37.30% | 24.30% |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |
Revolving credit facility | $80,000,000 |
Revolving credit facility, maturity date | 31-Dec-14 |
Revolving credit facility, extended maturity date | 31-Dec-15 |
Revolving credit facility, interest rate above LIBOR | 1.50% |
Revolving credit facility, interest rate description | Amounts borrowed under the Credit Facility bear interest, at our option, at either the prime lending rate established by JPMorgan Chase Bank, N.A. or LIBOR plus 1.5 percent. |
Revolving credit facility, unused annual commitment fee | 0.25% |
Revolving credit facility, amount outstanding | 0 |
Total outstanding letters of credit | 21,000,000 |
Revolving credit facility, unused portion | 59,000,000 |
Line of credit covenant, debt to net worth | 0.5 |
Line of credit covenant, Earnings before interest, taxes, depreciation and amortization (EBITDA) to interest expense ratio | 4 |
Line of credit covenant, minimum net worth required | $254,100,000 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit covenant, current ratio | 1.25 |
Recovered_Sheet5
Revenues from Major Customers - Additional Information (Detail) (Sales Revenue, Net [Member], Customer Concentration Risk [Member], Minimum [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |
Revenue, Major Customer [Line Items] | |
Minimum Percentage of revenue | 10.00% |
Revenues_from_Major_Customers_1
Revenues from Major Customers - Revenues from Major Customers (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||
Revenue from major customers | $124,760,000 | [1],[2] | $118,020,000 | [1] | $129,169,000 | [1] | $134,690,000 | $135,138,000 | [1] | $168,191,000 | [1] | $154,575,000 | [1] | $150,422,000 | $506,639,000 | $608,326,000 | $521,340,000 |
Williams Field Services-Gulf Coast Company L. P. [Member] | |||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||
Revenue from major customers | 216,875 | 124,841 | |||||||||||||||
Chevron Corporation [Member] | |||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||
Revenue from major customers | 148,539 | 192,370 | |||||||||||||||
Walter Oil & Gas [Member] | |||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||
Revenue from major customers | 160,173 | ||||||||||||||||
Anadarko [Member] | |||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||
Revenue from major customers | $98,644 | ||||||||||||||||
[1] | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under "Revenue Recognition" above. | ||||||||||||||||
[2] | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
Revenues_from_Major_Customers_2
Revenues from Major Customers - Revenues from Major Customers (Parenthetical) (Detail) (Maximum [Member], Customer Concentration Risk [Member], Sales Revenue, Net [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | |
Revenue, Major Customer [Line Items] | |
Maximum percentage of revenue | 10.00% |
International_Revenues_Additio
International Revenues - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Geographic Areas Revenues From External Customers In Percentage [Abstract] | |||
Percentage of revenue related to fabricated structures for delivery outside U.S | 10.00% | 6.00% | 9.00% |
International_Revenues_Revenue
International Revenues - Revenues by Geographic Location (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||||||||
Revenue | $124,760,000 | [1],[2] | $118,020,000 | [1] | $129,169,000 | [1] | $134,690,000 | $135,138,000 | [1] | $168,191,000 | [1] | $154,575,000 | [1] | $150,422,000 | $506,639,000 | $608,326,000 | $521,340,000 |
United States [Member] | |||||||||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||||||||
Revenue | 456,800,000 | 570,700,000 | 472,400,000 | ||||||||||||||
International [Member] | |||||||||||||||||
Geographic Reporting Disclosure [Line Items] | |||||||||||||||||
Revenue | $49,800,000 | $37,600,000 | $48,900,000 | ||||||||||||||
[1] | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under "Revenue Recognition" above. | ||||||||||||||||
[2] | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
Contract_Costs_Additional_Info
Contract Costs - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Contractors [Abstract] | |||
Pass-through costs as a percentage of revenue | 48.20% | 58.50% | 48.30% |
Prepaid subcontractor costs | $0 | $0 | $33,100,000 |
Retirement_Plan_Additional_Inf
Retirement Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Retirement plan contribution by company | $2.60 | $2.70 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
Basic: | |||||||||||||||||
Net income (loss) | ($111) | [1],[2] | $7,586 | [1] | $4,310 | [1] | $3,535 | ($3,110) | [1] | $3,276 | [1] | $4,279 | [1] | $2,787 | $15,320 | $7,232 | ($4,091) |
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||||||
Net income (loss) attributable to common shareholders | 15,216 | 7,157 | -4,137 | ||||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,462 | 14,501 | ||||||||||||||
Basic earnings per share-common shareholders | ($0.01) | [1],[2] | $0.52 | [1] | $0.30 | [1] | $0.24 | ($0.22) | [1] | $0.23 | [1] | $0.30 | [1] | $0.19 | $1.05 | $0.50 | ($0.29) |
Diluted: | |||||||||||||||||
Net income (loss) | -111 | [1],[2] | 7,586 | [1] | 4,310 | [1] | 3,535 | -3,110 | [1] | 3,276 | [1] | 4,279 | [1] | 2,787 | 15,320 | 7,232 | -4,091 |
Less: Distributed loss / distributed and undistributed income (unvested restricted stock) | 104 | 75 | 46 | ||||||||||||||
Net income attributable to common shareholders | $15,216 | $7,157 | ($4,137) | ||||||||||||||
Denominator for basic earnings per share-weighted-average shares | 14,505 | 14,462 | 14,501 | ||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Employee stock options | 6 | ||||||||||||||||
Denominator for dilutive earnings per share-weighted-average shares | 14,505 | 14,468 | 14,501 | ||||||||||||||
Diluted earnings per share-common shareholders | ($0.01) | [1],[2] | $0.52 | [1] | $0.30 | [1] | $0.24 | ($0.22) | [1] | $0.23 | [1] | $0.30 | [1] | $0.19 | $1.05 | $0.50 | ($0.29) |
[1] | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under "Revenue Recognition" above. | ||||||||||||||||
[2] | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
LongTerm_Incentive_Plans_Addit
Long-Term Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 13, 1997 | Apr. 24, 2002 | Apr. 28, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Available shares for future issuance | 542,000 | |||||
Options exercised total intrinsic value | $0 | $26,000 | $250,000 | |||
Proceeds from exercise of stock options | 0 | 203,000 | 17,000 | |||
Excess tax benefit from share-based payment arrangements | 0 | 116,000 | 259,000 | |||
Restricted stock granted | 6,000 | 100,150 | 60,250 | |||
Restricted stock weighted average grant date fair value | $23.19 | $23.22 | $23.53 | |||
Total unrecognized compensation costs | 2,000,000 | |||||
Recognition of compensation cost weighted average period | 3 years 2 months 12 days | |||||
Total fair value of shares vested | 1,300,000 | |||||
Compensation expense-stock compensation plans | 1,139,000 | 672,000 | -259,000 | |||
Total income tax benefit under share-base compensation | 49,000 | 116,000 | 297,000 | |||
Incentive Plans [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense-stock compensation plans | $1,100,000 | $700,000 | $1,200,000 | |||
Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock granted annual installments beginning first anniversary of the date of grant | 20.00% | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options authorized for grant | 1,000,000 | |||||
Stock options granted, term | 10 years | |||||
Employee Stock Option [Member] | Long Term Incentive Plan 2002 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options authorized for grant | 500,000 | |||||
Stock options granted, term | 10 years | |||||
Employee Stock Option [Member] | Long Term Incentive Plan 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options authorized for grant | 500,000 | |||||
Stock options granted, term | 10 years | |||||
Employee Stock Option [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options available for grant per individual employee | 400,000 | |||||
Employee Stock Option [Member] | Maximum [Member] | Long Term Incentive Plan 2002 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options available for grant per individual employee | 200,000 | |||||
Employee Stock Option [Member] | Maximum [Member] | Long Term Incentive Plan 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options available for grant per individual employee | 200,000 | |||||
Non Performance Based [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock vesting period minimum | 3 years | |||||
Restricted Stock [Member] | Non-employee directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock vesting period | 6 months |
LongTerm_Incentive_Plans_Summa
Long-Term Incentive Plans - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Options outstanding, beginning balance | 20,000 | 32,900 | 91,800 |
Options, granted | 0 | 0 | 0 |
Options, exercised | -2,900 | -15,065 | |
Options, forfeited or expired | -20,000 | -10,000 | -43,835 |
Options outstanding, ending balance | 20,000 | 32,900 | |
Weighted average exercise price, outstanding beginning balance | $21.85 | $19.83 | $19.07 |
Weighted average exercise price, granted | $0 | $0 | $0 |
Weighted average exercise price, exercised | $16.69 | $18.15 | |
Weighted average exercise price, forfeited or expired | $21.85 | $16.69 | $18.82 |
Weighted average exercise price, outstanding ending balance | $21.85 | $19.83 | |
Aggregate intrinsic value, outstanding | $27 | $138 | |
Weighted average remaining contractual term, outstanding | 10 months 24 days | 1 year 6 months |
LongTerm_Incentive_Plans_Summa1
Long-Term Incentive Plans - Summary of Status of Restricted Stock Awards (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares | |||
Number of restricted shares, beginning balance | 178,950 | 143,150 | 203,730 |
Number of shares, granted | 6,000 | 100,150 | 60,250 |
Number of shares, vested | -45,356 | -38,188 | -61,152 |
Number of shares, forfeited | -31,754 | -26,162 | -59,678 |
Number of restricted shares, ending balance | 107,840 | 178,950 | 143,150 |
Weighted Average Grant-Date Fair Value Per Share | |||
Weighted-average grant-date fair value, restricted shares, beginning balance | $24 | $24.28 | $22.99 |
Weighted-average grant-date fair value per share, granted | $23.19 | $23.22 | $23.53 |
Weighted-average grant-date fair value per share, vested | $23.35 | $23.14 | $21.29 |
Weighted-average grant-date fair value per share, forfeited | $23.85 | $23.82 | $22.20 |
Weighted-average grant-date fair value, restricted shares, ending balance | $24.27 | $24 | $24.28 |
Recovered_Sheet6
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Revenue | $124,760 | [1],[2] | $118,020 | [1] | $129,169 | [1] | $134,690 | $135,138 | [1] | $168,191 | [1] | $154,575 | [1] | $150,422 | $506,639 | $608,326 | $521,340 |
Gross profit (loss) | 10,808 | [1],[2] | 14,653 | [1] | 10,322 | [1] | 8,773 | -1,775 | [1] | 9,055 | [1] | 9,677 | [1] | 6,704 | 44,556 | 23,661 | 3,840 |
Net income (loss) | ($111) | [1],[2] | $7,586 | [1] | $4,310 | [1] | $3,535 | ($3,110) | [1] | $3,276 | [1] | $4,279 | [1] | $2,787 | $15,320 | $7,232 | ($4,091) |
Basic EPS | ($0.01) | [1],[2] | $0.52 | [1] | $0.30 | [1] | $0.24 | ($0.22) | [1] | $0.23 | [1] | $0.30 | [1] | $0.19 | $1.05 | $0.50 | ($0.29) |
Diluted EPS | ($0.01) | [1],[2] | $0.52 | [1] | $0.30 | [1] | $0.24 | ($0.22) | [1] | $0.23 | [1] | $0.30 | [1] | $0.19 | $1.05 | $0.50 | ($0.29) |
[1] | We recognized contract losses of $1.6 million for the three-month period ended December 31, 2014, $0.3 million for the three-month period ended September 30, 2014, and $4.7 million for the three-month period ended June 30, 2014. We recognized contract losses of $18.2 million in the three-month period ended December 31, 2013, $10.9 million in the three-month period ended September 30, 2013, and $0.6 million in the three-month period ended June 30, 2013, as required under the accounting for loss contracts under percentage of completion accounting. Contract losses for the year ended December 31, 2014 were primarily related to tank barge projects for a marine transportation company, platform supply vessels for an offshore marine company and a production platform jacket for a deepwater customer. Contract losses in 2013 were primarily due to the impact of the de-scoping and final close-out of one of our major deepwater projects, as further discussed in the Note 1 under "Revenue Recognition" above. | ||||||||||||||||
[2] | We recognized an impairment charge of $3.2 million related to a reduction in the fair value of assets held for sale and a $3.6 million charge related to an increase in the allowance for doubtful accounts for negotiations of an outstanding contract receivable balance for the three-month period ended December 31, 2014. |
Recovered_Sheet7
Quarterly Operating Results (Unaudited) - Summary of Quarterly Results of Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 |
Quarterly Financial Information Disclosure [Abstract] | ||||||
Loss on contract recognized | $1.60 | $0.30 | $4.70 | $18.20 | $10.90 | $0.60 |
Impairment charge of asset held for sale | 3.2 | |||||
Increase in allowance for doubtful accounts | $3.60 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2014 | Feb. 26, 2015 | |
Subsequent Event [Line Items] | ||
Dividends declared, date | 26-Feb-15 | |
Dividends declared, payable date | 27-Mar-15 | |
Dividends declared, record date | 13-Mar-15 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Dividends declared per share | $0.10 |