Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Gulf Island Fabrication, Inc. | |
Entity Central Index Key | 0001031623 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 15,551,891 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-34279 | |
Entity Tax Identification Number | 72-1147390 | |
Entity Address, Address Line One | 16225 Park Ten Place | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77084 | |
City Area Code | 713 | |
Local Phone Number | 714-6100 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | LA | |
Trading Symbol | Gifi | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 71,667 | $ 43,159 |
Restricted cash, current | 1,736 | |
Short-term investments | 7,998 | |
Contract receivables and retainage, net | 8,229 | 14,089 |
Contract assets | 2,246 | 5,098 |
Prepaid expenses and other assets | 6,361 | 2,545 |
Inventory | 1,673 | 2,157 |
Assets held for sale | 1,800 | 6,200 |
Current assets of discontinued operations | 66,116 | |
Total current assets | 93,712 | 147,362 |
Property, plant and equipment, net | 28,377 | 31,178 |
Restricted cash, noncurrent | 406 | |
Noncurrent assets of discontinued operations | 39,169 | |
Other noncurrent assets | 13,381 | 13,634 |
Total assets | 135,876 | 231,343 |
Current liabilities: | ||
Accounts payable | 7,396 | 12,362 |
Contract liabilities | 7,188 | 10,262 |
Accrued expenses and other liabilities | 8,372 | 6,682 |
Long-term debt, current | 5,499 | |
Current liabilities of discontinued operations | 176 | 63,607 |
Total current liabilities | 23,132 | 98,412 |
Long-term debt, noncurrent | 4,501 | |
Other noncurrent liabilities | 1,590 | 2,068 |
Total liabilities | 24,722 | 104,981 |
Shareholders’ equity: | ||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | ||
Common stock, no par value, 30,000 shares authorized, 15,552 shares issued and outstanding at September 30, 2021 and 15,359 at December 31, 2020 | 11,331 | 11,223 |
Additional paid-in capital | 105,036 | 104,072 |
Retained earnings (accumulated deficit) | (5,213) | 11,067 |
Total shareholders’ equity | 111,154 | 126,362 |
Total liabilities and shareholders’ equity | $ 135,876 | $ 231,343 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 15,552,000 | 15,359,000 |
Common stock, shares outstanding (in shares) | 15,552,000 | 15,359,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 19,587 | $ 25,306 | $ 67,640 | $ 94,973 |
Cost of revenue | 19,785 | 25,941 | 66,813 | 96,804 |
Gross profit (loss) | (198) | (635) | 827 | (1,831) |
General and administrative expense | 3,224 | 2,748 | 9,104 | 9,429 |
Impairments and (gain) loss on assets held for sale, net | 72 | 72 | ||
Other (income) expense, net | 260 | 749 | (649) | (9,284) |
Operating loss | (3,682) | (4,204) | (7,628) | (2,048) |
Gain on extinguishment of debt | 9,061 | 9,061 | ||
Interest (expense) income, net | (58) | (118) | (347) | (154) |
Income (loss) before income taxes | 5,321 | (4,322) | 1,086 | (2,202) |
Income tax (expense) benefit | (9) | 20 | 6 | (86) |
Income (loss) from continuing operations | 5,312 | (4,302) | 1,092 | (2,288) |
Loss from discontinued operations, net of taxes | (8,035) | (17,372) | (9,681) | |
Net income (loss) | $ 5,312 | $ (12,337) | $ (16,280) | $ (11,969) |
Per share data: | ||||
Basic and diluted income (loss) from continuing operations | $ 0.34 | $ (0.28) | $ 0.07 | $ (0.15) |
Basic and diluted loss from discontinued operations | (0.52) | (1.12) | (0.63) | |
Basic and diluted income (loss) per share | $ 0.34 | $ (0.81) | $ (1.05) | $ (0.78) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Beginning Balance at Dec. 31, 2019 | $ 152,685 | $ 11,119 | $ 103,124 | $ 38,442 |
Beginning Balance (in shares) at Dec. 31, 2019 | 15,263 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 5,905 | 5,905 | ||
Vesting of restricted stock | (73) | $ (8) | (65) | |
Vesting of restricted stock (in shares) | 27 | |||
Stock-based compensation expense | 95 | $ 10 | 85 | |
Ending Balance at Mar. 31, 2020 | 158,612 | $ 11,121 | 103,144 | 44,347 |
Ending Balance (in shares) at Mar. 31, 2020 | 15,290 | |||
Beginning Balance at Dec. 31, 2019 | 152,685 | $ 11,119 | 103,124 | 38,442 |
Beginning Balance (in shares) at Dec. 31, 2019 | 15,263 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (11,969) | |||
Ending Balance at Sep. 30, 2020 | 141,423 | $ 11,189 | 103,761 | 26,473 |
Ending Balance (in shares) at Sep. 30, 2020 | 15,325 | |||
Beginning Balance at Mar. 31, 2020 | 158,612 | $ 11,121 | 103,144 | 44,347 |
Beginning Balance (in shares) at Mar. 31, 2020 | 15,290 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (5,537) | (5,537) | ||
Vesting of restricted stock | (1) | (1) | ||
Vesting of restricted stock (in shares) | 19 | |||
Stock-based compensation expense | 345 | $ 34 | 311 | |
Ending Balance at Jun. 30, 2020 | 153,419 | $ 11,155 | 103,454 | 38,810 |
Ending Balance (in shares) at Jun. 30, 2020 | 15,309 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (12,337) | (12,337) | ||
Vesting of restricted stock (in shares) | 16 | |||
Stock-based compensation expense | 341 | $ 34 | 307 | |
Ending Balance at Sep. 30, 2020 | 141,423 | $ 11,189 | 103,761 | 26,473 |
Ending Balance (in shares) at Sep. 30, 2020 | 15,325 | |||
Beginning Balance at Dec. 31, 2020 | $ 126,362 | $ 11,223 | 104,072 | 11,067 |
Beginning Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ (18,641) | (18,641) | ||
Vesting of restricted stock | (100) | $ (9) | (91) | |
Vesting of restricted stock (in shares) | 158 | |||
Stock-based compensation expense | 313 | $ 31 | 282 | |
Ending Balance at Mar. 31, 2021 | 107,934 | $ 11,245 | 104,263 | (7,574) |
Ending Balance (in shares) at Mar. 31, 2021 | 15,517 | |||
Beginning Balance at Dec. 31, 2020 | $ 126,362 | $ 11,223 | 104,072 | 11,067 |
Beginning Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | $ (16,280) | |||
Ending Balance at Sep. 30, 2021 | $ 111,154 | $ 11,331 | 105,036 | (5,213) |
Ending Balance (in shares) at Sep. 30, 2021 | 15,552 | 15,552 | ||
Beginning Balance at Mar. 31, 2021 | $ 107,934 | $ 11,245 | 104,263 | (7,574) |
Beginning Balance (in shares) at Mar. 31, 2021 | 15,517 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (2,951) | (2,951) | ||
Vesting of restricted stock | (8) | $ (1) | (7) | |
Vesting of restricted stock (in shares) | 18 | |||
Stock-based compensation expense | 364 | $ 37 | 327 | |
Ending Balance at Jun. 30, 2021 | 105,339 | $ 11,281 | 104,583 | (10,525) |
Ending Balance (in shares) at Jun. 30, 2021 | 15,535 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 5,312 | 5,312 | ||
Vesting of restricted stock (in shares) | 17 | |||
Stock-based compensation expense | 503 | $ 50 | 453 | |
Ending Balance at Sep. 30, 2021 | $ 111,154 | $ 11,331 | $ 105,036 | $ (5,213) |
Ending Balance (in shares) at Sep. 30, 2021 | 15,552 | 15,552 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (16,280) | $ (11,969) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and lease asset amortization | 4,282 | 6,463 |
Other amortization, net | 15 | 48 |
Asset impairments | 22,750 | |
(Gain) loss on sale of fixed assets and other assets, net | 45 | (5) |
(Gain) loss on sale of assets held for sale, net | 72 | |
Gain on extinguishment of debt | (9,061) | |
Stock-based compensation expense | 1,180 | 781 |
Changes in operating assets and liabilities: | ||
Contract receivables and retainage, net | 7,164 | 1,659 |
Contract assets | (4,436) | (20,232) |
Prepaid expenses, inventory and other current assets | (471) | 1,713 |
Accounts payable | (13,261) | 18,900 |
Contract liabilities | (6,342) | (6,094) |
Accrued expenses and other current liabilities | 1,206 | (656) |
Noncurrent assets and liabilities, net | (600) | 2,043 |
Net cash used in operating activities | (11,228) | (7,277) |
Cash flows from investing activities: | ||
Capital expenditures | (1,080) | (10,191) |
Proceeds from Shipyard Transaction, net of transaction costs | 31,677 | |
Proceeds from sale of property and equipment | 4,439 | 1,679 |
Purchases of short-term investments | (19,992) | |
Maturities of short-term investments | 8,000 | 20,000 |
Net cash provided by (used in) investing activities | 43,036 | (8,504) |
Cash flows from financing activities: | ||
Proceeds from borrowings | 10,000 | |
Repayment of borrowings | (1,050) | |
Payment of financing cost | (70) | |
Tax payments for vested stock withholdings | (108) | (74) |
Net cash provided by (used in) financing activities | (1,158) | 9,856 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 30,650 | (5,925) |
Cash, cash equivalents and restricted cash, beginning of period | 43,159 | 49,703 |
Cash, cash equivalents and restricted cash, end of period | 73,809 | $ 43,778 |
Supplemental cash flow information: | ||
Deferred Transaction Price receivable from Shipyard Transaction | 2,200 | |
Forgiveness of principal and interest of PPP Loan | 9,061 | |
Shipyard Transaction | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
(Gain) loss on sale of fixed assets and other assets, net | $ 2,581 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” “the Company,” “we,” “us” and “our”) is a leading fabricator of complex steel structures and modules and provider of project management, hookup, commissioning, repair, maintenance and civil construction services. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through two operating divisions (“Fabrication & Services” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas and our operating facilities are located in Houma, Louisiana. On April 19, 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”) and intend to wind down our remaining Shipyard Division operations by the third quarter 2022. See “Basis of Presentation” Basis of Presentation The accompanying unaudited Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Our Consolidated Balance Sheet at December 31, 2020, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the Financial Statements and related footnotes included in our 2020 Annual Report. We determined the Shipyard Division assets, liabilities and operations associated with the Shipyard Transaction, and associated with certain previously closed Shipyard Division facilities, to be discontinued operations in the second quarter 2021. Accordingly, such assets and liabilities at September 30, 2021, and operating results for the three and nine months ended September 30, 2021, have been classified as discontinued operations on our Consolidated Balance Sheet (“Balance Sheet”) and Consolidated Statement of Operations (“Statement of Operations”), respectively. Our classification of these operations as discontinued requires retrospective application to financial information for all prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for the three and nine months ended September 30, 2020, have been recast and classified as discontinued operations on our Balance Sheet and Statement of Operations, respectively. Discontinued operations are not presented separately on our Consolidated Statement of Cash Flows (“Statement of Cash Flows”). Unless otherwise noted, the amounts presented throughout the notes to our Financial Statements relate to our continuing operations. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations. Operating Cycle The duration of our contracts vary but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current, which may not be received or paid within the next twelve months, include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. Use of Estimates General – The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with: • revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts; • liabilities related to self-insurance programs; • costs and insurance recoveries associated with damage to our operating facilities in Houma, Louisiana resulting from Hurricane Ida discussed further below; and • the impacts of the ongoing global coronavirus pandemic (“COVID-19”) and volatile oil prices on our business, estimates and judgments as discussed further below. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. Volatile Oil Prices and COVID-19 – For the last several years, the price of oil has experienced significant volatility, resulting in reductions in capital spending and drilling activities from our traditional offshore oil and gas customer base. Consequently, our operating results and cash flows have been negatively impacted as we experienced reductions in revenue, lower margins due to competitive pricing, under-utilization of our operating facilities and resources, and losses on certain projects. COVID-19 added another layer of pressure and uncertainty on oil prices and our end markets, which further impacted our operations during 2020 and 2021. In addition, our operations (as well as the operations of our customers, subcontractors and other counterparties) were negatively impacted by the physical distancing, quarantine and isolation measures recommended by national, state and local authorities on large portions of the population, and mandatory business closures that were enacted in an attempt to control COVID-19. We continue to monitor the impact of COVID-19 on our operations and recognize that it could continue to negatively impact our business and results of operations during the remainder of 2021 and beyond. The ultimate business and financial impacts of oil price volatility and COVID-19 on our business and results of operations continues to be uncertain, but the impacts have included, or may include, among other things, reduced bidding activity, suspension or termination of backlog, deterioration of customer financial condition, potential supply interruptions, and unanticipated project costs due to project disruptions and schedule delays, material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, lack of performance by subcontractors and suppliers, and contract disputes. Our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report for the impacts of oil price volatility and COVID-19. Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities. See Note 7 for calculations of our basic and diluted income (loss) per share. Cash Equivalents, Restricted Cash and Short-Term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. Restricted Cash – At September 30, 2021, we had $2.1 million of restricted cash as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Hancock Whitney Bank (“Whitney Bank”). Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current, and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent. We had no restricted cash at December 31, 2020. See Note 5 for further discussion of our cash security requirements under our LC Facility. Short-Term Investments – We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. We had no short-term investments at September 30, 2021. At December 31, 2020, our short-term investments included U.S. Treasuries with original maturities of less than six months that were held until their maturity. Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. Allowance for Doubtful Accounts In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectability and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts. Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Statement of Operations. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Statement of Cash Flows. Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 4 for further discussion of our assets held for sale. Depreciation Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Long-Lived Assets Long-lived assets, which include property, plant and equipment and our lease assets included within other noncurrent assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. See Note 2 for discussion of our long-lived asset impairments associated with Hurricane Ida and Note 3 for discussion of our long-lived asset impairments within discontinued operations. Leases We record a right-of-use asset and an offsetting lease liability on our Balance Sheet equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. We recognize expense on a straight-line basis for leases with escalations over the life of the lease. Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining impairments of inventory, long-lived assets and assets held for sale are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. See Note 4 for further discussion of our assets held for sale. Revenue Recognition General Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts – Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method based on contract costs incurred to date compared to total estimated contract costs (an input method). Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and nine months ended September 30, 2021 and 2020 . T&M Contracts – Revenue for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. Our T&M contracts provide for labor and materials to be billed at rates specified within the contract. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Variable Consideration Revenue and gross profit for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims, incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of unapproved change orders, claims, incentives and liquidated damages for our projects. Additional Disclosures Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At September 30, 2021 and December 31, 2020, we had no deferred pre-contract costs. Other (Income) Expense Other (income) expense, net, generally represents recoveries or provisions for bad debts, gains or losses associated with the sale or disposition of property and equipment other than assets held for sale, and income or expense associated with certain nonrecurring items. For both the three and nine months ended September 30, 2021, other (income) expense included charges of $0.4 million associated with damage caused by Hurricane Ida. For both the three and nine months ended September 30, 2020, other (income) expense included charges of $0.7 million associated with damage caused by Hurricane Laura, and for the nine months ended September 30, 2020, included a gain of $10.0 million associated with the settlement of a contract dispute in the first quarter 2020 for a project completed in 2015. See Note 2 for further discussion of the impacts of Hurricanes Laura and Ida. Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Net income for the three and nine months ended September 30, 2021 includes a $9.1 million nontaxable benefit associated with extinguishment of debt on our PPP Loan. Excluding this nontaxable benefit for the 2021 period, our effective tax rate differs from our statutory rate for the three and nine months ended September 30, 2021 and 2020, as no federal benefit was recorded for our losses as a full valuation allowance was recorded against our federal deferred tax assets generated during the respective periods. Income taxes recorded for the three and nine months ended September 30, 2021 and 2020 represent state income taxes. See Note 5 for further discussion of the extinguishment of debt on our PPP Loan. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. New Accounting Standards Income taxes – In the first quarter 2021, we adopted Accounting Standards Update (“ASU”) 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles and simplifies areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. Financial instruments – In June 2016, the Financial Accounting Standards Board (“ FASB ”) issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for us in the first quarter 2023. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to be applied using a cumulative-effect transition method. We are currently evaluating the effect that the new standard will have on our financial position, results of operations and related disclosures. |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 2. REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS As discussed in Note 1, we recognize revenue from our contracts in accordance with Topic 606. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, 2021 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 8,188 $ 2,202 $ — $ 10,390 T&M ( 2) 8,427 100 — 8,527 Other 670 — — 670 Total $ 17,285 $ 2,302 $ — $ 19,587 Nine Months Ended September 30, 2021 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 30,386 $ 10,461 $ (8 ) $ 40,839 T&M ( 2) 23,950 100 — 24,050 Other 3,236 — (485 ) 2,751 Total $ 57,572 $ 10,561 $ (493 ) $ 67,640 Three Months Ended September 30, 2020 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 10,464 $ 7,515 $ (20 ) $ 17,959 T&M ( 2) 5,800 — — 5,800 Other 1,973 — (426 ) 1,547 Total $ 18,237 $ 7,515 $ (446 ) $ 25,306 Nine Months Ended September 30, 2020 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 55,874 $ 18,100 $ (344 ) $ 73,630 T&M ( 2) 17,180 — — 17,180 Other 5,232 — (1,069 ) 4,163 Total $ 78,286 $ 18,100 $ (1,413 ) $ 94,973 (1) Revenue is recognized as the contract progresses over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. Future Performance Obligations Required Under Contracts The following table summarizes our remaining performance obligations by operating segment at September 30, 2021 (in thousands): Segment Performance Obligations Fabrication & Services $ 7,241 Shipyard 12,220 Total ( 1) $ 19,461 (1) We expect to recognize revenue of approximately $10.7 million and $8.8 million for the remainder of 2021 and thereafter, respectively, associated with our remaining performance obligations at September 30, 2021. Contracts Assets and Liabilities Revenue recognition and customer invoicing for our fixed-price and unit-rate contracts may occur at different times. Revenue recognition is based upon our estimated percentage-of-completion as discussed in Note 1; however, customer invoicing is generally dependent upon contractual billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or billings when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to contracts that were incomplete at September 30, 2021 and December 31, 2020, is as follows (in thousands): September 30, December 31, 2021 2020 Contract assets ( 1) $ 2,246 $ 5,098 Contract liabilities ( 2), (3), (4) (7,188 ) (10,262 ) Contracts in progress, net $ (4,942 ) $ (5,164 ) (1) The decrease in contract assets compared to December 31, 2020, was primarily due to decreased unbilled positions for our seventy-vehicle ferry project within our Shipyard Division. (2) The decrease in contract liabilities compared to December 31, 2020, was primarily due to the unwind of advance payments on our two forty-vehicle ferry projects within our Shipyard Division ( 3 ) Revenue recognized during the three months ended September 30, 2021 and 2020, related to amounts included in our contract liabilities balance at June 30, 2021 and 2020, was $1.6 million and $4.6 million, respectively. Revenue recognized during the nine months ended September 30, 2021 and 2020, related to amounts included in our contract liabilities balance at December 31, 2020 and 2019, was $3.2 million and $11.4 million, respectively. ( 4 ) Contract liabilities at September 30, 2021 and December 31, 2020, includes accrued contract losses of $4.4 million and $5.4 million, respectively. See “ Changes in Project Estimates” Allowance for Doubtful Accounts Our provision for bad debts is included in other (income) expense, net on our Statement of Operations. Our provision for bad debts for the nine months ended September 30, 2021 and 2020, and our allowance for doubtful accounts at September 30, 2021 and December 31, 2020, were not significant. Variable Consideration For the three and nine months ended September 30, 2021 and 2020, we had no material amounts in revenue related to unapproved change orders, claims or incentives. However, at September 30, 2021 and December 31, 2020, certain projects reflected a reduction to our estimated contract price for liquidated damages of $1.2 million and $0.6 million, respectively. Changes in Project Estimates We determine the impact of changes in estimated margins on projects for a given period by calculating the amount of revenue recognized in the period that would have been recognized in a prior period had such estimated margins been forecasted in the prior period. The total impact of changes in estimated margins for a project as disclosed on a quarterly basis may be different from the applicable year-to-date impact due to the application of the percentage-of-completion method and the changing progress of the project at each period end. Such impacts may also be different when a project is commenced and completed within the applicable year-to-date period but spans multiple quarters. Changes in Estimates for 2021 – For the three and nine months ended September 30, 2021, significant changes in estimated margins on projects positively impacted operating results for our Fabrication & Services Division by $1.1 million and $3.7 million, respectively, and negatively impacted operating results for our Shipyard Division by $1.3 million and $3.0 million, respectively. The changes in estimates were associated with the following: Fabrication & Services Division • Marine Docking Structures Project, Offshore Modules Project, Material Supply Project and Subsea Structures Project – Positive impact for the three months ended September 30, 2021 of $1.1 million for our marine docking structures project and material supply project, and positive impact for the nine months ended September 30, 2021 of $3.7 million for our marine docking structures project, offshore modules project, material supply project and a subsea structures project, resulting from increased contract price and reduced forecast costs, primarily associated with reduced craft labor and subcontracted services costs and reduced contingency associated with schedule-related liquidated damages. The impacts were primarily due to better than anticipated labor productivity and progress on the projects and favorable resolution of change orders with the customers. At September 30, 2021, the offshore modules project, material supply project and subsea structures project were complete, and the marine docking structures project was approximately 89% complete and is forecast to be completed in December 2021. Shipyard Division • Seventy-Vehicle Ferry Project – Negative impact for the three and nine months ended September 30, 2021 of $1.7 million and $3.3 million, respectively, for our seventy-vehicle ferry project, resulting from increased forecast costs and forecast liquidated damages, primarily associated with extensions of schedule and associated duration related costs, including supervision and subcontracted services costs. The impacts were primarily due to customer-directed changes, higher forecast costs to launch the vessel, and engineering delays and lower than anticipated progress on the project, due in part to COVID-19 and Hurricane Ida. We have submitted claims to our customer to extend our project schedule and recover the increased forecast costs associated with the impacts of the customer-directed changes, COVID-19 and Hurricane Ida; however, we can provide no assurances that we will be successful recovering these costs. Our forecast at September 30, 2021 does not reflect potential future benefits, if any, from the favorable resolution of the claims. At September 30, 2021, the vessel was approximately 78% complete and is forecast to be completed in the third quarter 2022. The project was in a loss position at September 30, 2021 and our reserve for estimated losses was $1.0 million. If future craft labor productivity and subcontractor costs differ from our current estimates, construction activities are determined to be more complex than anticipated upon finalization of production engineering, we are unable to achieve our progress estimates, our schedule is further extended or we incur additional schedule liquidated damages, the project would experience further losses. • Forty-Vehicle Ferry Projects – Positive impact for the three and nine months ended September 30, 2021 of $0.4 million and $0.3 million, respectively, for our two forty-vehicle ferry projects, resulting from reduced forecast costs, primarily associated with reduced subcontracted services and material costs. The impacts were primarily due to progress achieved on the first vessel and favorable resolution of insurance claims associated with damage to the vessel hull that occurred in the third quarter 2020. At September 30, 2021, the second vessel was approximately 96% complete and is forecast to be completed in the first quarter 2022 and the first vessel was approximately 62% complete and is forecast to be completed in the third quarter 2022. The projects were in a loss position at September 30, 2021 and our reserve for estimated losses was $3.3 million. If future craft labor productivity and subcontractor costs differ from our current estimates, we are unable to achieve our progress estimates, our schedules are further extended or we incur additional schedule liquidated damages, the projects would experience further losses. Changes in Estimates for 2020 – For the three and nine months ended September 30, 2020, significant changes in estimated margins on projects positively impacted operating results for our Fabrication & Services Division by $0.6 million and $2.6 million, respectively, and for the nine months ended September 30, 2020, negatively impacted operating results for our Shipyard Division by $1.3 million. The changes in estimates were associated with the following: Fabrication & Services Division • Paddle Wheel Riverboat Project and Subsea Components Project – Positive impact for the nine months ended September 30, 2020 of $1.5 million for our paddle wheel riverboat project and subsea components project, resulting from reduced forecast costs and increased contract price, primarily associated with reduced craft labor and subcontracted services costs and change orders. The impacts were primarily due to better than anticipated labor productivity and favorable resolution of subcontractor and customer change orders. The projects had no significant changes in estimated margins for the three months ended September 30, 2020. At September 30, 2021, the projects were both complete. • Jacket and Deck Project – Positive impact for the three and nine months ended September 30, 2020 of $0.6 million and $1.1 million, respectively, for our jacket and deck project, resulting from reduced forecast costs and increased contract price, primarily associated with reduced subcontracted services costs, change orders and incentives. The impacts were primarily due to favorable resolution of subcontractor and customer change orders and realization of project incentives. At September 30, 2021, the project was complete Shipyard Division • Forty-Vehicle Ferry Projects – Negative impact for the nine months ended September 30, 2020 of $1.3 million for our two forty-vehicle ferry projects, resulting from increased forecast costs and forecast liquidated damages, primarily associated with increased craft labor and material costs and extensions of schedule. The impacts were primarily due to anticipated rework for the first vessel, including potential reconstruction of previously completed portions of the vessel resulting from the determination that portions of the vessel structure were outside of acceptable tolerance levels. The projects had no significant changes in estimated margins for the three months ended September 30, 2020. Other Operating and Project Matters Hurricane Ida – On August 29, 2021, Hurricane Ida made landfall near Houma, Louisiana as a high-end Category 4 hurricane, with high winds, heavy rains and storm surge causing significant damage and power outages throughout the region. Our F&S Facility did not experience significant flood damage; however, the high winds and heavy rain damaged multiple buildings and equipment and resulted in significant debris throughout the facility. As a result of the power outages, damage to buildings and debris, the operations at our F&S Facility were temporarily suspended and we immediately commenced cleanup and restoration efforts. While cleanup and restoration efforts are ongoing, we recommenced our operations before the end of the third quarter 2021. As a result of the storm, certain buildings and equipment were damaged and were determined to be complete losses. Accordingly, during both the three and nine months ended September 30, 2021, we recorded i mpairments of $0.5 million associated with the damaged assets. The impairments were offset by corresponding insurance recoveries, as we have determined it is probable that we will receive insurance proceeds to replace the damaged assets up to the amount of impairments recognized. In addition, multiple other buildings and equipment were partially damaged by the storm. We expect to incur future repair costs in excess of our deductibles for such assets; however, we believe that recovery of insurance proceeds for such costs is probable, and accordingly, we have not recorded any repair costs related to the partially damaged assets at September 30, 2021. We are working with our insurance providers and advisors to assess the full extent of damage to buildings and equipment and applicable insurance coverage amounts, which will be subject to deductibles associated with our insurance coverages that range from $2.0 million to $3.0 million. During the three and nine months ended September 30, 2021, we also incurred costs of $0.9 million associated with clean-up and expediting activities to enable us to restart operations. We have recorded insurance recoveries up to the amount of costs recognized as we believe such costs are covered under our insurance policies and we have determined recovery of such amounts is probable. The insurance receivable amounts associated with the aforementioned are reflected within prepaid expenses and other assets on our Balance Sheet at September 30, 2021. In addition to damage to our F&S Facility, the storm resulted in damage to our second forty-vehicle ferry, the MPSVs (and associated equipment) that are in our possession and subject to dispute, and certain bulkheads where the vessels were moored. We have retained advisors to evaluate the extent to which any damage was the result of third-party vessels that broke free from their mooring during the storm and struck the ferry, MPSVs and bulkheads. During both the three and nine-months ended September 30, 2021, we recorded charges of $0.4 million related to actual costs incurred and anticipated contract costs associated with our insurance coverages, without giving consideration to potential recoveries from the third-parties associated with damage caused by their vessels, as we expect these deductibles to be met absent such recoveries. The charges are included in other (income) expense, net on our Statement of Operations. We are working with our insurance providers and advisors to assess the full extent of damage to the MPSVs and bulkheads and applicable insurance coverage amounts, which will be subject to deductibles associated with our insurance coverages that range from $1.0 million to $1.5 million. See Note 6 for further discussion of our MPSV dispute. While our evaluation of damage caused by Hurricane Ida is ongoing, we are currently not aware of damage to buildings, equipment or vessels that would result in material repair or replacement costs to us in excess of our deductible amounts. However, we may incur additional costs beyond such amounts if damages are determined to be in excess of insurance coverage amounts or if costs we believed to be covered by our insurance coverages are ultimately not covered. Hurricane Laura – On August 27, 2020, Hurricane Laura made landfall near Lake Charles, Louisiana as high-end Category 4 hurricane, with high winds and flooding causing significant damage throughout the region. At our Lake Charles Facility, the storm damaged drydocks, warehouses, bulkheads and our ninth harbor tug project which was nearing completion and subsequently completed in the fourth quarter 2020. As a result of the storm, during both the three and nine months ended September 30, 2020, we recorded charges of $1.2 million (of which $0.5 million was reflected within discontinued operations) related to deductibles associated with our insurance coverages, and our preliminary estimates of cost associated with uninsurable damage, primarily for bulkheads. The charges are included in other (income) expense, net on our Statement of Operations. |
Shipyard Transaction and Discon
Shipyard Transaction and Discontinued Operations | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Shipyard Transaction and Discontinued Operations | 3. SHIPYARD TRANSACTION AND DISCONTINUED OPERATIONS Shipyard Transaction Transaction Summary – On April 19, 2021 (the “Closing Date”), we entered into a definitive agreement (the “Purchase Agreement”) pursuant to which we sold the operating assets and certain construction contracts of our Shipyard Division (“Shipyard Transaction”) to Bollinger Houma Shipyards, L.L.C. and Bollinger Shipyards Lockport, L.L.C. (collectively, “Bollinger”) for approximately $28.6 million (“Transaction Price”) ($26.1 million, net of transaction and other costs). We received $26.4 million of the Transaction Price on the Closing Date and the remaining $2.2 million (“Deferred Transaction Price”) will be received upon Bollinger’s collection of certain customer payments associated with the Divested Shipyard Contracts (defined below), of which $1.3 million was received in October 2021 and the remainder is anticipated to be received in the first quarter 2022. The $2.2 million receivable associated with the Deferred Transaction Price has been reflected within prepaid expenses and other assets on our Balance Sheet at September 30, 2021. We also received $8.0 million from Bollinger on the Closing Date, representing an estimate of the change in working capital for the Divested Shipyard Contracts from December 31, 2020 through the Closing Date (the “Closing Adjustment”). The Closing Adjustment was subject to a post-closing reconciliation and true-up (the “Closing Adjustment True-Up”) based on actual changes in working capital for the Divested Shipyard Contracts from December 31, 2020 through the Closing Date compared to the Closing Adjustment. Actual changes in working capital for the Divested Shipyard Contracts from December 31, 2020 through the Closing Date totaled approximately $7.8 million. Accordingly, $0.2 million of the Closing Adjustment was returned to Bollinger during the three months ended June 30, 2021 in connection with the Closing Adjustment True-Up. Included in the Shipyard Transaction were the Shipyard Division’s: • Shipyard Facility and inventory and equipment in Houma, Louisiana; • Contracts and related obligations for our three research vessel projects and five towing, salvage and rescue ship projects (collectively, the “Divested Shipyard Contracts”); • Contract retentions, contract assets, contract liabilities and certain accounts payable associated with the Divested Shipyard Contracts as of the Closing Date; and • Four Bollinger offered employment to most of the employees of our Shipyard Division associated with the Divested Shipyard Contracts. Excluded from the Shipyard Transaction were the Shipyard Division’s: • • two • • We retained those employees of our Shipyard Division associated with the Retained Shipyard Contracts. In connection with the Shipyard Transaction, we recorded a total pre-tax loss of $25.3 million during the nine months ended September 30, 2021, of which $22.8 million was related to the impairment of our Shipyard Division’s long-lived assets (discussed further below) and $2.6 million was related to transaction and other costs associated with the Shipyard Transaction. At September 30, 2021, the net liabilities on our Balance Sheet associated with the Retained Shipyard Contracts and other retained Shipyard Division operations totaled $11.0 million. The wind down of the Shipyard Division operations is anticipated to occur by the third quarter 2022. Impairment – During the first quarter 2021, events and changes in circumstances indicated that the carrying amount of our Shipyard Division’s long-lived assets may not be recoverable. These changes in circumstances were primarily attributable to a reassessment of our asset groups within our Shipyard Division as well as revisions to our probability assessment of net future cash flows of the applicable asset group based on the likelihood, that existed as of March 31, 2021, of the Shipyard Transaction occurring. Based on these assessments, we determined that an impairment of our Shipyard Division’s property, plant and equipment had occurred during the first quarter 2021. We measured the impairment by comparing the carrying amount of the applicable asset group at March 31, 2021 to an estimate of its fair value (which represents a Level 3 fair value measurement), resulting in an impairment charge of $22.8 million during the three months ended March 31, 2021. We based our fair value estimate on the Transaction Price inclusive of the Closing Adjustment and an estimate of the Closing Adjustment True-Up, associated with the Shipyard Transaction. Discontinued Operations The Shipyard Transaction (which included, among other things, our owned Shipyard Facility, Divested Shipyard Contracts and drydocks), and the fourth quarter 2020 closures of our leased Lake Charles Facility and Jennings Facility, represented the disposal and closure of a substantial portion of our Shipyard Division operations and the culmination of a strategic shift that will have a major effect on our ongoing operations and financial results. Therefore, we determined the assets, liabilities and operations associated with the Shipyard Transaction, and associated with the previously closed facilities, to be discontinued operations in the second quarter 2021. Accordingly, such assets and liabilities at September 30, 2021, and operating results for the three and nine months ended September 30, 2021, have been classified as discontinued operations on our Balance Sheet and Statement of Operations, respectively. Our classification of these operations as discontinued requires retrospective application to financial information for all prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for the three and nine months ended September 30, 2020, have been recast and classified as discontinued operations on our Balance Sheet and Statement of Operations, respectively. We are completing construction of the Retained Shipyard Contracts within our F&S Facility and are winding down our Shipyard Division operations, which is anticipated to occur by the third quarter 2022. The assets, liabilities and operating results attributable to the Retained Shipyard Contracts and remaining assets and liabilities of our Shipyard Division operations that were excluded from the Shipyard Transaction, and are not associated with the previously closed facilities, represent our Shipyard Segment and are classified as continuing operations on our Balance Sheet and Statement of Operations. Discontinued operations are presented separately from continuing operations on our Balance Sheet and Statement of Operations; however, they are not presented separately on our Statement of Cash Flows. Statement of Operations – A summary of the operating results constituting the loss from discontinued operations for the three and nine months ended September 30, 2021 and 2020, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue $ — $ 29,563 $ 41,637 $ 98,425 Cost of revenue — 36,745 33,912 106,368 Gross profit (loss) — (7,182 ) 7,725 (7,943 ) General and administrative expense — 324 413 1,109 Impairments and (gain) loss on assets held for sale, net — — 25,331 — Other (income) expense, net — 529 (647 ) 629 Operating loss — (8,035 ) (17,372 ) (9,681 ) Income tax (expense) benefit ( 1) — — — — Loss from discontinued operations, net of taxes $ — $ (8,035 ) $ (17,372 ) $ (9,681 ) (1) Income taxes attributable to discontinued operations were not material for all periods presented. As a result of the Shipyard Transaction and classification of certain Shipyard Division operations as discontinued operations, certain allocations that were previously reflected within our Shipyard Division have been reclassified to our Corporate Division and Fabrication & Services Division for the three and nine months ended September 30, 2020. Further, legal costs associated with our MPSV dispute that were previously reflected within our Corporate Division have been reclassified to our Shipyard Division for the three and nine months ended September 30, 2020. See Note 8 for a summary of the reclassifications to our previously reported segment results and Note 6 for further discussion of our MPSV dispute. Assets and Liabilities – A summary of the carrying values of the major classes of assets and liabilities of discontinued operations at September 30, 2021 and December 31, 2020, is as follows (in thousands): September 30, 2021 December 31, 2020 Current assets of discontinued operations: Contract receivables and retainage, net $ — $ 1,304 Contract assets — 62,423 Prepaid expenses and other assets — 270 Inventory — 105 Assets held for sale — 2,014 Total current assets of discontinued operations $ — $ 66,116 Noncurrent assets of discontinued operations: Property, plant and equipment, net $ — $ 36,280 Other noncurrent assets — 2,889 Total noncurrent assets of discontinued operations $ — $ 39,169 September 30, 2021 December 31, 2020 Current liabilities of discontinued operations: Accounts payable $ 27 $ 57,752 Contract liabilities — 4,867 Accrued expenses and other liabilities 149 988 Total current liabilities of discontinued operations $ 176 $ 63,607 Cash Flows – A summary of the cash flows of discontinued operations for the nine months ended September 30, 2021 and 2020, is as follows (in thousands) : Nine Months Ended September 30, 2021 2020 Operating cash flows from discontinued operations $ (9,067 ) $ (5,677 ) Investing cash flows from discontinued operations $ 31,424 $ (6,144 ) Changes in Project Estimates – For the nine months ended September 30, 2021, significant changes in estimated margins on projects positively impacted operating results of our discontinued operations by $8.4 million. The impacts were associated with our towing, salvage and rescue ship projects, resulting from increased contract price primarily associated with an approved change order ($9.2 million impact), offset partially by increased forecast costs primarily associated with increased craft labor costs ($0.8 million impact). For the three and nine months ended September 30, 2020, significant changes in estimated margins on projects negatively impacted operating results of our discontinued operations by $6.7 million and $7.4 million, respectively. The impacts were associated with our towing, salvage and rescue ship projects and final two harbor tug projects, resulting from increased forecast costs primarily associated with increased craft labor and subcontracted services costs and extensions of schedule. Other – Other (income) expense, net includes a gain of $0.6 million for the nine months ended September 30, 2021, resulting from insurance recoveries in the second quarter 2021 associated with damage previously caused by Hurricane Laura to a drydock that was sold in connection with the Shipyard Transaction |
IMPAIRMENTS AND (GAIN) LOSS ON
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2021 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE | 4 . IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE At September 30, 2021, our assets held for sale consisted of one crawler crane within our Fabrication & Services Division. A summary of our assets held for sale at September 30, 2021 and December 31, 2020, is as follows (in thousands): Assets Held for Sale September 30, 2021 December 31, 2020 Machinery and equipment $ 4,587 $ 11,877 Accumulated depreciation (2,787 ) (5,677 ) Total $ 1,800 $ 6,200 During the nine months ended September 30, 2021, we received proceeds of $4.5 million ($4.4 million, net of transaction and other costs) from the sale of two crawler cranes that were held for sale by our Fabrication & Services Division at December 31, 2020. During the nine months ended September 30, 2020, we received proceeds of $1.7 million from the sale of other assets held for sale. No significant gain or loss was recognized on the assets sold as the net proceeds received approximated the carrying values of the assets. See Note 2 for discussion of impairments associated with Hurricane Ida and Note 3 for discussion of impairments associated with our discontinued operations. |
CREDIT FACILITIES AND DEBT
CREDIT FACILITIES AND DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES AND DEBT | 5 . CREDIT FACILITIES AND DEBT LC Facility We have a letter of credit facility with Whitney Bank that provides for up to $20.0 million of letters of credit (“LC Facility”), subject to our cash securitization of the letters of credit, with a maturity date of June 30, 2023. Commitment fees on the unused portion of the LC Facility are 0.4% per annum and interest on outstanding letters of credit is 1.5% per annum. At September 30, 2021, we had $2.1 million of letters of credit outstanding under the LC Facility. Loan Agreement On April 17, 2020, we entered into an unsecured loan in the aggregate amount of $10.0 million (“PPP Loan”) with Whitney Bank pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act, as amended (“CARES Act”). The PPP Loan, and accrued interest, were eligible to be forgiven partially or in full, if certain conditions were met. On September 29, 2020, we submitted our application to Whitney Bank requesting PPP Loan forgiveness of $8.9 million plus any accrued interest. Whitney Bank approved our application for forgiveness on December 14, 2020, and our application was forwarded to the Small Business Administration (“SBA”) for review. Following the SBA’s approval of our application for forgiveness, on July 28, 2021, Whitney Bank received $9.1 million from the SBA, which was the amount of loan forgiveness requested, plus accrued interest. The forgiveness of the PPP Loan and accrued interest resulted in a gain of $9.1 million for both the three and nine months ended September 30, 2021, and is reflected within gain on extinguishment of debt on our Statement of Operations. On July 29, 2021, we repaid Whitney Bank the remaining balance of the PPP Loan, together with accrued interest. Because the amount borrowed exceeded $2.0 million, we are required by the SBA to retain all records relating to the PPP Loan for six years from the date the loan was forgiven and permit authorized representatives of the SBA to access such records upon request. While we believe we are a qualifying business and have met the eligibility requirements for the PPP Loan, and believe we have used the loan proceeds only for expenses which may be paid using proceeds from the PPP Loan, we can provide no assurances that any potential SBA review or audit will verify the amount forgiven, in whole or in part, and we could be required to repay all or part of the forgiven amount. Surety Bonds We issue surety bonds in the ordinary course of business to support our projects. At September 30, 2021, we had $110.8 million of outstanding surety bonds, of which $50.0 million relates to our MPSV projects that are subject to dispute. See Note 6 for further discussion of our MPSV dispute. Mortgage Agreement and Restrictive Covenant Agreement On April 19, 2021, and in connection with the receipt of a consent for the Shipyard Transaction from one of our Sureties, we entered into a multiple indebtedness mortgage (the “Mortgage Agreement”) and a restrictive covenant arrangement (the “Restrictive Covenant Agreement”) with such Surety to secure our obligations and liabilities under our general indemnity agreement with the Surety associated with its outstanding surety bond obligations for our MPSV projects and two forty-vehicle ferry projects. The Mortgage Agreement encumbers all remaining real estate that was not sold in connection with the Shipyard Transaction and includes certain covenants and events of default. Further, the Restrictive Covenant Agreement precludes us from paying dividends or repurchasing shares of our common stock. The Mortgage Agreement and Restrictive Covenant Agreement will terminate when the obligations and liabilities of the Surety associated with the outstanding surety bonds are discharged, or any judgment against us or the Surety arising out of litigation related to such contracts is satisfied by us. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6 . COMMITMENTS AND CONTINGENCIES We are subject to various routine legal proceedings in the normal conduct of our business, primarily involving commercial disputes and claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, we believe that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on our financial position, results of operations or cash flows. MPSV Dispute During the first quarter 2018, we received notices of termination from our customer of the contracts for the construction of two MPSVs within our Shipyard Division. We dispute the purported terminations and disagree with the customer’s reasons for such terminations. We have ceased all work and the partially completed vessels and associated equipment and materials remain in our possession in Houma, Louisiana. The customer also made claims under the performance bonds issued by the Surety in connection with the construction of the vessels, which total $50.0 million. On October 2, 2018, we filed a lawsuit against our customer to enforce our rights and remedies under the applicable construction contracts for the two MPSVs. The lawsuit was filed in the Twenty-Second Judicial District Court for the Parish of St. Tammany, State of Louisiana and is styled Gulf Island Shipyards, LLC v. Hornbeck Offshore Services, LLC On May 19, 2020, the customer filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. The customer’s prepackaged Chapter 11 plan of reorganization was subsequently confirmed by the bankruptcy court and that plan of reorganization is effective. In connection with its bankruptcy case, on June 3, 2020, the customer filed a separate bankruptcy adversary proceeding against us, in which it again sought to obtain possession of the vessels; however, the bankruptcy court’s decision was ultimately delayed to allow the parties an opportunity to mediate the dispute. The parties engaged in mediation until January 26, 2021, when the customer unilaterally and voluntarily dismissed its adversary proceeding seeking possession of the vessels. The mediation between the parties was not successful. The lawsuit was temporarily stayed during the pendency of the customer’s Chapter 11 bankruptcy case; however, the lawsuit is no longer stayed and will proceed in the ordinary course. Discovery in connection with the lawsuit is ongoing, and the trial of the case is tentatively scheduled to begin on March 6, 2023. Other trial related deadlines have been tentatively established as well. We are conferring with the Surety regarding the lawsuit. We are unable to estimate the probability of a favorable or unfavorable outcome with respect to the dispute or estimate the amount of potential loss, if any, related to this matter. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contracts and defend against the customer’s claims. At September 30, 2021 and December 31, 2020, other noncurrent assets on our Balance Sheet included a net contract asset of $12.5 million, which consisted of our contract asset, accrued contract losses, and deferred revenue balances at the time of the customer's purported terminations of the contracts. We continue to hold first priority security interests and liens against the vessels that secure the obligations owed to us by the customer. See Note 2 for discussion of damage to the MPSVs resulting from Hurricane Ida. Insurance We may be exposed to future losses through our use of deductibles and self-insured retentions for our exposures related to third party liability and workers' compensation. We expect liabilities in excess of any deductibles and self-insured retentions to be covered by insurance. To the extent we are self-insured, reserves are recorded based upon our estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change. Letters of Credit and Surety Bonds We obtain letters of credit under our LC Facility or surety bonds from financial institutions to provide to our customers in order to secure advance payments or guarantee performance under our contracts, or in lieu of retention being withheld on our contracts. Letters of credit under our LC Facility are subject to cash securitization of the full amount of the outstanding letters of credit. In the event of non-performance under a contract, our cash securitization with respect to the letter of credit supporting such contract would become property of Whitney Bank. With respect to a surety bond, any payment in the event of non-performance is subject to indemnification of the Surety by us. When a contract is complete, the contingent obligation terminates, and letters of credit or surety bonds are returned. See Note 5 for further discussion of our LC Facility and surety bonds. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances that currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our financial condition, results of operations or cash flow. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | 7 . INCOME (LOSS) PER SHARE The following table presents the computation of basic and diluted income (loss) per share for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Income (loss) from continuing operations $ 5,312 $ (4,302 ) $ 1,092 $ (2,288 ) Loss from discontinued operations, net of taxes — (8,035 ) (17,372 ) (9,681 ) Net income (loss) $ 5,312 $ (12,337 ) $ (16,280 ) $ (11,969 ) Weighted-average shares ( 1) 15,539 15,312 15,490 15,296 Basic and diluted income (loss) from continuing operations $ 0.34 $ (0.28 ) $ 0.07 $ (0.15 ) Basic and diluted loss from discontinued operations — (0.52 ) (1.12 ) (0.63 ) Basic and diluted income (loss) per share $ 0.34 $ (0.81 ) $ (1.05 ) $ (0.78 ) __________________ (1) We have no dilutive securities. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | 8 . OPERATING SEGMENTS We currently operate and manage our business through two operating divisions (“Fabrication & Services” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our two operating divisions and Corporate Division are discussed below: Fabrication & Services Division – Our Fabrication & Services (“F&S”) Division fabricates modules, skids and piping systems for onshore refining, petrochemical, LNG and industrial facilities and offshore facilities; fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities; fabricates offshore production platforms and associated structures, including jacket foundations, piles and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; fabricates other complex steel structures and components; provides services on offshore platforms, including welding, interconnect piping and other services required to connect production equipment and service modules and equipment; provides on-site construction and maintenance services on inland platforms and structures and industrial facilities; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. These activities are performed at our F&S Facility. Shipyard Division – Prior to the Shipyard Transaction, our Shipyard Division fabricated newbuild marine vessels and provided marine repair and maintenance services. These activities were performed at our Shipyard Facility. As discussed in Note 3, on April 19, 2021, we completed the Shipyard Transaction, which resulted in the sale of our Shipyard Facility and the Divested Shipyard Contracts. We determined the assets, liabilities and operations associated with the Shipyard Transaction and certain previously closed facilities to be discontinued operations in the second quarter 2021. The assets, liabilities and operating results attributable to the Retained Shipyard Contracts and remaining assets and liabilities of our Shipyard Division operations that were excluded from the Shipyard Transaction, and are not associated with the previously closed facilities, represent our Shipyard Segment and are classified as continuing operations on our Balance Sheet and Statement of Operations. The Retained Shipyard Contracts are being completed at our F&S Facility. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations. Corporate Division – Our Corporate Division includes costs that do not directly relate to our two operating divisions. Such costs include, but are not limited to, costs of maintaining our corporate office, executive management salaries and incentives, board of directors' fees, certain insurance costs and costs associated with overall corporate governance and being a publicly traded company. Costs incurred by our Corporate Division on behalf of our operating divisions are allocated to the operating divisions. Such costs include, but are not limited to, human resources, insurance, information technology and accounting. Other – As a result of the Shipyard Transaction and classification of certain Shipyard Division operations as discontinued operations, certain allocations that were previously reflected within our Shipyard Division have been reclassified to our Corporate Division and Fabrication & Services Division for the three and nine months ended September 30, 2020. Further, legal costs associated with our MPSV dispute that were previously reflected within our Corporate Division have been reclassified to our Shipyard Division for the three and nine months ended September 30, 2020. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations and Note 6 for further discussion of our MPSV dispute. A summary of the reclassifications to our previously reported segment results for the three and nine months ended September 30, 2020, is as follows (in thousands): Three Months Ended September 30, 2020 F&S Shipyard Corporate Consolidated Gross loss, as previously reported $ (313 ) $ (7,504 ) $ — $ (7,817 ) Discontinued operations ( 1) — 7,182 — 7,182 Changes in expense allocations (28 ) 89 (61 ) — Gross loss from continuing operations $ (341 ) $ (233 ) $ (61 ) $ (635 ) Operating loss, as previously reported $ (1,127 ) $ (9,244 ) $ (1,868 ) $ (12,239 ) Discontinued operations ( 1) — 8,035 — 8,035 Changes in expense allocations (99 ) 227 (128 ) — Reclassification of legal expenses — (161 ) 161 — Operating loss from continuing operations $ (1,226 ) $ (1,143 ) $ (1,835 ) $ (4,204 ) Nine months ended September 30, 2020 F&S Shipyard Corporate Consolidated Gross profit (loss), as previously reported $ 185 $ (9,959 ) $ — $ (9,774 ) Discontinued operations ( 1) — 7,943 — 7,943 Changes in expense allocations (80 ) 259 (179 ) — Gross profit (loss) from continuing operations $ 105 $ (1,757 ) $ (179 ) $ (1,831 ) Operating income (loss), as previously reported $ 7,644 $ (12,867 ) $ (6,506 ) $ (11,729 ) Discontinued operations ( 1) — 9,681 — 9,681 Changes in expense allocations (291 ) 679 (388 ) — Reclassification of legal expenses — (725 ) 725 — Operating income (loss) from continuing operations $ 7,353 $ (3,232 ) $ (6,169 ) $ (2,048 ) __________________ (1) See Note 3 for as summary of the operating results constituting the loss from discontinued operations for the three and nine months ended September 30, 2021 and 2020. Segment Results – We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of and for the three and nine months ended September 30, 2021 and 2020, are as follows (in thousands): Three Months Ended September 30, 2021 F&S Shipyard Corporate Consolidated Revenue $ 17,285 $ 2,302 $ — $ 19,587 Gross profit (loss) 1,112 (1,252 ) (58 ) (198 ) Operating income (loss) 379 (1,896 ) (2,165 ) (3,682 ) Depreciation and amortization expense 985 — 82 1,067 Capital expenditures 159 — — 159 Total assets ( 1) 42,621 16,769 76,486 135,876 Nine months ended September 30, 2021 F&S Shipyard Corporate Consolidated Revenue $ 57,572 $ 10,561 $ (493 ) $ 67,640 Gross profit (loss) 4,340 (3,289 ) (224 ) 827 Operating income (loss) 2,896 (4,266 ) (6,258 ) (7,628 ) Depreciation and amortization expense 2,974 — 242 3,216 Capital expenditures 738 — — 738 Total assets ( 1) 42,621 16,769 76,486 135,876 Three Months Ended September 30, 2020 F&S Shipyard Corporate Consolidated Revenue $ 18,237 $ 7,515 $ (446 ) $ 25,306 Gross loss (341 ) (233 ) (61 ) (635 ) Operating loss (1,226 ) (1,143 ) (1,835 ) (4,204 ) Depreciation and amortization expense 1,246 — 77 1,323 Capital expenditures 2,033 — 11 2,044 Total assets ( 1) 67,381 19,894 67,297 154,572 Nine months ended September 30, 2020 F&S Shipyard Corporate Consolidated Revenue $ 78,286 $ 18,100 $ (1,413 ) $ 94,973 Gross profit (loss) 105 (1,757 ) (179 ) (1,831 ) Operating income (loss) 7,353 (3,232 ) (6,169 ) (2,048 ) Depreciation and amortization expense 3,726 — 229 3,955 Capital expenditures 3,857 — 190 4,047 Total assets ( 1) 67,381 19,894 67,297 154,572 __________________ (1) Cash, cash equivalents and short-term investments are reported within our Corporate Division. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Gulf Island Fabrication, Inc. (together with its subsidiaries, “Gulf Island,” “the Company,” “we,” “us” and “our”) is a leading fabricator of complex steel structures and modules and provider of project management, hookup, commissioning, repair, maintenance and civil construction services. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through two operating divisions (“Fabrication & Services” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our corporate headquarters is located in Houston, Texas and our operating facilities are located in Houma, Louisiana. On April 19, 2021, we sold our Shipyard Division operating assets and certain construction contracts (“Shipyard Transaction”) and intend to wind down our remaining Shipyard Division operations by the third quarter 2022. See “Basis of Presentation” |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial statements, the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, the Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Our Consolidated Balance Sheet at December 31, 2020, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the Financial Statements and related footnotes included in our 2020 Annual Report. We determined the Shipyard Division assets, liabilities and operations associated with the Shipyard Transaction, and associated with certain previously closed Shipyard Division facilities, to be discontinued operations in the second quarter 2021. Accordingly, such assets and liabilities at September 30, 2021, and operating results for the three and nine months ended September 30, 2021, have been classified as discontinued operations on our Consolidated Balance Sheet (“Balance Sheet”) and Consolidated Statement of Operations (“Statement of Operations”), respectively. Our classification of these operations as discontinued requires retrospective application to financial information for all prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for the three and nine months ended September 30, 2020, have been recast and classified as discontinued operations on our Balance Sheet and Statement of Operations, respectively. Discontinued operations are not presented separately on our Consolidated Statement of Cash Flows (“Statement of Cash Flows”). Unless otherwise noted, the amounts presented throughout the notes to our Financial Statements relate to our continuing operations. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations. |
Operating Cycle | Operating Cycle The duration of our contracts vary but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current, which may not be received or paid within the next twelve months, include contract retainage, contract assets and contract liabilities. Variations from normal contract terms may result in the classification of assets and liabilities as long-term. |
Use of Estimates | Use of Estimates General – The preparation of our Financial Statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We believe our most significant estimates and judgments are associated with: • revenue recognition for our contracts, including application of the percentage-of-completion method, estimating costs to complete each contract and the recognition of incentives, unapproved change orders, claims and liquidated damages; • fair value and recoverability assessments that must be periodically performed with respect to long-lived assets and our assets held for sale; • determination of deferred income tax assets, liabilities and related valuation allowances; • reserves for bad debts; • liabilities related to self-insurance programs; • costs and insurance recoveries associated with damage to our operating facilities in Houma, Louisiana resulting from Hurricane Ida discussed further below; and • the impacts of the ongoing global coronavirus pandemic (“COVID-19”) and volatile oil prices on our business, estimates and judgments as discussed further below. If the underlying estimates and assumptions upon which our Financial Statements are based change in the future, actual amounts may differ materially from those included in the Financial Statements. Volatile Oil Prices and COVID-19 – For the last several years, the price of oil has experienced significant volatility, resulting in reductions in capital spending and drilling activities from our traditional offshore oil and gas customer base. Consequently, our operating results and cash flows have been negatively impacted as we experienced reductions in revenue, lower margins due to competitive pricing, under-utilization of our operating facilities and resources, and losses on certain projects. COVID-19 added another layer of pressure and uncertainty on oil prices and our end markets, which further impacted our operations during 2020 and 2021. In addition, our operations (as well as the operations of our customers, subcontractors and other counterparties) were negatively impacted by the physical distancing, quarantine and isolation measures recommended by national, state and local authorities on large portions of the population, and mandatory business closures that were enacted in an attempt to control COVID-19. We continue to monitor the impact of COVID-19 on our operations and recognize that it could continue to negatively impact our business and results of operations during the remainder of 2021 and beyond. The ultimate business and financial impacts of oil price volatility and COVID-19 on our business and results of operations continues to be uncertain, but the impacts have included, or may include, among other things, reduced bidding activity, suspension or termination of backlog, deterioration of customer financial condition, potential supply interruptions, and unanticipated project costs due to project disruptions and schedule delays, material price increases, lower labor productivity, increased employee and contractor absenteeism and turnover, craft labor hiring challenges, lack of performance by subcontractors and suppliers, and contract disputes. Our estimates in future periods will be revised for any events and changes in circumstances arising after the date of this Report for the impacts of oil price volatility and COVID-19. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities. See Note 7 for calculations of our basic and diluted income (loss) per share. |
Cash Equivalents, Restricted Cash and Short-Term Investments | Cash Equivalents, Restricted Cash and Short-Term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. Restricted Cash – At September 30, 2021, we had $2.1 million of restricted cash as security for letters of credit issued under our letter of credit facility (“LC Facility”) with Hancock Whitney Bank (“Whitney Bank”). Our restricted cash is held in an interest-bearing money market account with Whitney Bank. The classification of the restricted cash as current and noncurrent is determined by the contractual maturity dates of the letters of credit being secured, with letters of credit having maturity dates of twelve months or less from the balance sheet date classified as current, and letters of credit having maturity dates of longer than twelve months from the balance sheet date classified as noncurrent. We had no restricted cash at December 31, 2020. See Note 5 for further discussion of our cash security requirements under our LC Facility. Short-Term Investments – We consider investments with original maturities of more than three months but less than twelve months to be short-term investments. We had no short-term investments at September 30, 2021. At December 31, 2020, our short-term investments included U.S. Treasuries with original maturities of less than six months that were held until their maturity. |
Inventory | Inventory Inventory is recorded at the lower of cost or net realizable value determined using the first-in-first-out basis. The cost of inventory includes acquisition costs, production or conversion costs, and other costs incurred to bring the inventory to a current location and condition. Net realizable value is our estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation. An allowance for excess or inactive inventory is recorded based on an analysis that considers current inventory levels, historical usage patterns, estimates of future sales and salvage value. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In the normal course of business, we extend credit to our customers on a short-term basis and contract receivables are generally not collateralized; however, we typically have the right to place liens on our projects in the event of nonpayment by our customers. We routinely review individual contract receivable balances for collectability and make provisions for probable uncollectible amounts as necessary. Among the factors considered in our review are the financial condition of our customer and its access to financing, underlying disputes with the customer, the age and value of the receivable balance, and economic conditions in general. See Note 2 for further discussion of our allowance for doubtful accounts. |
Stock-Based Compensation | Stock-Based Compensation Awards under our stock-based compensation plans are calculated using a fair value-based measurement method. We use the straight-line method to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our Statement of Operations. Tax payments made on behalf of employees to taxing authorities in order to satisfy employee income tax withholding obligations from the vesting of shares under our stock-based compensation plans are classified as a financing activity on our Statement of Cash Flows. |
Assets Held for Sale | Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 4 for further discussion of our assets held for sale. |
Depreciation Expense | Depreciation Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. |
Long-Lived Assets | Long-Lived Assets Long-lived assets, which include property, plant and equipment and our lease assets included within other noncurrent assets, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. If a recoverability assessment is required, we compare the estimated future undiscounted cash flow associated with the asset or asset group to its carrying amount to determine if an impairment exists. An asset group constitutes the minimum level for which identifiable cash flows are principally independent of the cash flows of other assets or asset groups. An impairment loss is measured by comparing the fair value of the asset or asset group to its carrying amount and the excess of the carrying amount of the asset or asset group over its fair value is recorded as an impairment charge. Fair value is determined based on discounted cash flows, appraised values or third-party indications of value, as appropriate. See Note 2 for discussion of our long-lived asset impairments associated with Hurricane Ida and Note 3 for discussion of our long-lived asset impairments within discontinued operations. |
Leases | Leases We record a right-of-use asset and an offsetting lease liability on our Balance Sheet equal to the present value of our lease payments for leases with an original term of longer than twelve months. We do not record an asset or liability for leases with an original term of twelve months or less and we do not separate lease and non-lease components for our leases. Our lease assets are reflected within other noncurrent assets, and the current and noncurrent portions of our lease liabilities are reflected within accrued expenses and other liabilities, and other noncurrent liabilities, respectively, on our Balance Sheet. We recognize expense on a straight-line basis for leases with escalations over the life of the lease. |
Fair Value Measurements | Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining impairments of inventory, long-lived assets and assets held for sale are non-recurring fair value measurements that fall within Level 3 of the fair value hierarchy. See Note 4 for further discussion of our assets held for sale. |
Revenue Recognition | Revenue Recognition General Our revenue is derived from customer contracts and agreements that are awarded on a competitively bid and negotiated basis using a range of contracting options, including fixed-price, unit-rate and T&M. Our contracts primarily relate to the fabrication and construction of steel structures, modules and marine vessels, and project management services and other service arrangements. We recognize revenue from our contracts in accordance with Accounting Standards Update (“ASU”) 2014-09, Topic 606 (“Topic 606”). Topic 606 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, provisions of Topic 606 specify which goods and services are distinct and represent separate performance obligations (representing the unit of account in Topic 606) within a contract and which goods and services (which could include multiple contracts or agreements) should be aggregated. In general, a performance obligation is a contractual obligation to construct and/or transfer a distinct good or service to a customer. The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Revenue for performance obligations satisfied over time are recognized as the work progresses. Revenue for performance obligations that do not meet the criteria for over time recognition are recognized at a point-in-time when a performance obligation is complete and a customer has obtained control of a promised asset. Fixed-Price and Unit-Rate Contracts – Revenue for our fixed-price and unit-rate contracts is recognized using the percentage-of-completion method based on contract costs incurred to date compared to total estimated contract costs (an input method). Contract costs include direct costs, such as materials and labor, and indirect costs attributable to contract activity. Material costs that are significant to a contract and do not reflect an accurate measure of project completion are excluded from the determination of our contract progress. Revenue for such materials is only recognized to the extent of costs incurred. Revenue and gross profit for contracts accounted for using the percentage-of-completion method can be significantly affected by changes in estimated cost to complete such contracts. Significant estimates impacting the cost to complete a contract include: forecast costs of engineering, materials, equipment and subcontracts; forecast costs of labor and labor productivity; schedule durations, including subcontractor and supplier progress; contract disputes, including claims; achievement of contractual performance requirements; and contingency, among others. Although our customers retain the right and ability to change, modify or discontinue further work at any stage of a contract, in the event our customers discontinue work, they are required to compensate us for the work performed to date. The cumulative impact of revisions in total cost estimates during the progress of work is reflected in the period in which these changes become known, including, to the extent required, the reversal of profit recognized in prior periods and the recognition of losses expected to be incurred on contracts. Due to the various estimates inherent in our contract accounting, actual results could differ from those estimates, which could result in material changes to our Financial Statements and related disclosures. See Note 2 for further discussion of projects with significant changes in estimated margins during the three and nine months ended September 30, 2021 and 2020 . T&M Contracts – Revenue for our T&M contracts is recognized at contracted rates when the work is performed, the costs are incurred and collection is reasonably assured. Our T&M contracts provide for labor and materials to be billed at rates specified within the contract. The consideration from the customer directly corresponds to the value of our performance completed at the time of invoicing. Variable Consideration Revenue and gross profit for contracts can be significantly affected by variable consideration, which can be in the form of unapproved change orders, claims, incentives and liquidated damages that may not be resolved until the later stages of the contract or after the contract has been completed. We estimate variable consideration based on the amount we expect to be entitled and include estimated amounts in transaction price to the extent it is probable that a significant future reversal of cumulative revenue recognized will not occur or when we conclude that any significant uncertainty associated with the variable consideration is resolved. See Note 2 for further discussion of unapproved change orders, claims, incentives and liquidated damages for our projects. Additional Disclosures Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. |
Pre-Contract Costs | Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At September 30, 2021 and December 31, 2020, we had no deferred pre-contract costs. |
Other (Income) Expense | Other (Income) Expense Other (income) expense, net, generally represents recoveries or provisions for bad debts, gains or losses associated with the sale or disposition of property and equipment other than assets held for sale, and income or expense associated with certain nonrecurring items. For both the three and nine months ended September 30, 2021, other (income) expense included charges of $0.4 million associated with damage caused by Hurricane Ida. For both the three and nine months ended September 30, 2020, other (income) expense included charges of $0.7 million associated with damage caused by Hurricane Laura, and for the nine months ended September 30, 2020, included a gain of $10.0 million associated with the settlement of a contract dispute in the first quarter 2020 for a project completed in 2015. See Note 2 for further discussion of the impacts of Hurricanes Laura and Ida. |
Income Taxes | Income Taxes Income taxes have been provided using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Net income for the three and nine months ended September 30, 2021 includes a $9.1 million nontaxable benefit associated with extinguishment of debt on our PPP Loan. Excluding this nontaxable benefit for the 2021 period, our effective tax rate differs from our statutory rate for the three and nine months ended September 30, 2021 and 2020, as no federal benefit was recorded for our losses as a full valuation allowance was recorded against our federal deferred tax assets generated during the respective periods. Income taxes recorded for the three and nine months ended September 30, 2021 and 2020 represent state income taxes. See Note 5 for further discussion of the extinguishment of debt on our PPP Loan. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. |
New Accounting Standards | New Accounting Standards Income taxes – In the first quarter 2021, we adopted Accounting Standards Update (“ASU”) 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles and simplifies areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enacted tax laws or rate changes. Adoption of the new standard did not have a material effect on our financial position, results of operations or related disclosures. Financial instruments – In June 2016, the Financial Accounting Standards Board (“ FASB ”) issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, short-term investments, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. ASU 2016-13 will be effective for us in the first quarter 2023. Early adoption of the new standard is permitted; however, we have not elected to early adopt the standard. The new standard is required to be applied using a cumulative-effect transition method. We are currently evaluating the effect that the new standard will have on our financial position, results of operations and related disclosures. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended September 30, 2021 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 8,188 $ 2,202 $ — $ 10,390 T&M ( 2) 8,427 100 — 8,527 Other 670 — — 670 Total $ 17,285 $ 2,302 $ — $ 19,587 Nine Months Ended September 30, 2021 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 30,386 $ 10,461 $ (8 ) $ 40,839 T&M ( 2) 23,950 100 — 24,050 Other 3,236 — (485 ) 2,751 Total $ 57,572 $ 10,561 $ (493 ) $ 67,640 Three Months Ended September 30, 2020 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 10,464 $ 7,515 $ (20 ) $ 17,959 T&M ( 2) 5,800 — — 5,800 Other 1,973 — (426 ) 1,547 Total $ 18,237 $ 7,515 $ (446 ) $ 25,306 Nine Months Ended September 30, 2020 Contract Type F&S Shipyard Eliminations Total Fixed-price and unit-rate ( 1) $ 55,874 $ 18,100 $ (344 ) $ 73,630 T&M ( 2) 17,180 — — 17,180 Other 5,232 — (1,069 ) 4,163 Total $ 78,286 $ 18,100 $ (1,413 ) $ 94,973 (1) Revenue is recognized as the contract progresses over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. |
Summary of Remaining Performance Obligation by Operating Segment | The following table summarizes our remaining performance obligations by operating segment at September 30, 2021 (in thousands): Segment Performance Obligations Fabrication & Services $ 7,241 Shipyard 12,220 Total ( 1) $ 19,461 (1) We expect to recognize revenue of approximately $10.7 million and $8.8 million for the remainder of 2021 and thereafter, respectively, associated with our remaining performance obligations at September 30, 2021. |
Summary of Contract with Customer, Asset and Liability | Information with respect to contracts that were incomplete at September 30, 2021 and December 31, 2020, is as follows (in thousands): September 30, December 31, 2021 2020 Contract assets ( 1) $ 2,246 $ 5,098 Contract liabilities ( 2), (3), (4) (7,188 ) (10,262 ) Contracts in progress, net $ (4,942 ) $ (5,164 ) (1) The decrease in contract assets compared to December 31, 2020, was primarily due to decreased unbilled positions for our seventy-vehicle ferry project within our Shipyard Division. (2) The decrease in contract liabilities compared to December 31, 2020, was primarily due to the unwind of advance payments on our two forty-vehicle ferry projects within our Shipyard Division ( 3 ) Revenue recognized during the three months ended September 30, 2021 and 2020, related to amounts included in our contract liabilities balance at June 30, 2021 and 2020, was $1.6 million and $4.6 million, respectively. Revenue recognized during the nine months ended September 30, 2021 and 2020, related to amounts included in our contract liabilities balance at December 31, 2020 and 2019, was $3.2 million and $11.4 million, respectively. ( 4 ) Contract liabilities at September 30, 2021 and December 31, 2020, includes accrued contract losses of $4.4 million and $5.4 million, respectively. See “ Changes in Project Estimates” |
Shipyard Transaction and Disc_2
Shipyard Transaction and Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Disposal Groups Including Discontinued Operations | Statement of Operations – A summary of the operating results constituting the loss from discontinued operations for the three and nine months ended September 30, 2021 and 2020, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenue $ — $ 29,563 $ 41,637 $ 98,425 Cost of revenue — 36,745 33,912 106,368 Gross profit (loss) — (7,182 ) 7,725 (7,943 ) General and administrative expense — 324 413 1,109 Impairments and (gain) loss on assets held for sale, net — — 25,331 — Other (income) expense, net — 529 (647 ) 629 Operating loss — (8,035 ) (17,372 ) (9,681 ) Income tax (expense) benefit ( 1) — — — — Loss from discontinued operations, net of taxes $ — $ (8,035 ) $ (17,372 ) $ (9,681 ) (1) Income taxes attributable to discontinued operations were not material for all periods presented. Assets and Liabilities – A summary of the carrying values of the major classes of assets and liabilities of discontinued operations at September 30, 2021 and December 31, 2020, is as follows (in thousands): September 30, 2021 December 31, 2020 Current assets of discontinued operations: Contract receivables and retainage, net $ — $ 1,304 Contract assets — 62,423 Prepaid expenses and other assets — 270 Inventory — 105 Assets held for sale — 2,014 Total current assets of discontinued operations $ — $ 66,116 Noncurrent assets of discontinued operations: Property, plant and equipment, net $ — $ 36,280 Other noncurrent assets — 2,889 Total noncurrent assets of discontinued operations $ — $ 39,169 September 30, 2021 December 31, 2020 Current liabilities of discontinued operations: Accounts payable $ 27 $ 57,752 Contract liabilities — 4,867 Accrued expenses and other liabilities 149 988 Total current liabilities of discontinued operations $ 176 $ 63,607 Cash Flows – A summary of the cash flows of discontinued operations for the nine months ended September 30, 2021 and 2020, is as follows (in thousands) : Nine Months Ended September 30, 2021 2020 Operating cash flows from discontinued operations $ (9,067 ) $ (5,677 ) Investing cash flows from discontinued operations $ 31,424 $ (6,144 ) |
Impairments and (Gain) Loss o_2
Impairments and (Gain) Loss on Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
Summary of Assets Held for Sale | A summary of our assets held for sale at September 30, 2021 and December 31, 2020, is as follows (in thousands): Assets Held for Sale September 30, 2021 December 31, 2020 Machinery and equipment $ 4,587 $ 11,877 Accumulated depreciation (2,787 ) (5,677 ) Total $ 1,800 $ 6,200 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted income (loss) per share for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Income (loss) from continuing operations $ 5,312 $ (4,302 ) $ 1,092 $ (2,288 ) Loss from discontinued operations, net of taxes — (8,035 ) (17,372 ) (9,681 ) Net income (loss) $ 5,312 $ (12,337 ) $ (16,280 ) $ (11,969 ) Weighted-average shares ( 1) 15,539 15,312 15,490 15,296 Basic and diluted income (loss) from continuing operations $ 0.34 $ (0.28 ) $ 0.07 $ (0.15 ) Basic and diluted loss from discontinued operations — (0.52 ) (1.12 ) (0.63 ) Basic and diluted income (loss) per share $ 0.34 $ (0.81 ) $ (1.05 ) $ (0.78 ) __________________ (1) We have no dilutive securities. |
Operating Segments (Tables)
Operating Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Reclassification of Previously Reported Segments | . A summary of the reclassifications to our previously reported segment results for the three and nine months ended September 30, 2020, is as follows (in thousands): Three Months Ended September 30, 2020 F&S Shipyard Corporate Consolidated Gross loss, as previously reported $ (313 ) $ (7,504 ) $ — $ (7,817 ) Discontinued operations ( 1) — 7,182 — 7,182 Changes in expense allocations (28 ) 89 (61 ) — Gross loss from continuing operations $ (341 ) $ (233 ) $ (61 ) $ (635 ) Operating loss, as previously reported $ (1,127 ) $ (9,244 ) $ (1,868 ) $ (12,239 ) Discontinued operations ( 1) — 8,035 — 8,035 Changes in expense allocations (99 ) 227 (128 ) — Reclassification of legal expenses — (161 ) 161 — Operating loss from continuing operations $ (1,226 ) $ (1,143 ) $ (1,835 ) $ (4,204 ) Nine months ended September 30, 2020 F&S Shipyard Corporate Consolidated Gross profit (loss), as previously reported $ 185 $ (9,959 ) $ — $ (9,774 ) Discontinued operations ( 1) — 7,943 — 7,943 Changes in expense allocations (80 ) 259 (179 ) — Gross profit (loss) from continuing operations $ 105 $ (1,757 ) $ (179 ) $ (1,831 ) Operating income (loss), as previously reported $ 7,644 $ (12,867 ) $ (6,506 ) $ (11,729 ) Discontinued operations ( 1) — 9,681 — 9,681 Changes in expense allocations (291 ) 679 (388 ) — Reclassification of legal expenses — (725 ) 725 — Operating income (loss) from continuing operations $ 7,353 $ (3,232 ) $ (6,169 ) $ (2,048 ) __________________ (1) See Note 3 for as summary of the operating results constituting the loss from discontinued operations for the three and nine months ended September 30, 2021 and 2020. |
Summarized Segment Financial Information | Summarized financial information for our segments as of and for the three and nine months ended September 30, 2021 and 2020, are as follows (in thousands): Three Months Ended September 30, 2021 F&S Shipyard Corporate Consolidated Revenue $ 17,285 $ 2,302 $ — $ 19,587 Gross profit (loss) 1,112 (1,252 ) (58 ) (198 ) Operating income (loss) 379 (1,896 ) (2,165 ) (3,682 ) Depreciation and amortization expense 985 — 82 1,067 Capital expenditures 159 — — 159 Total assets ( 1) 42,621 16,769 76,486 135,876 Nine months ended September 30, 2021 F&S Shipyard Corporate Consolidated Revenue $ 57,572 $ 10,561 $ (493 ) $ 67,640 Gross profit (loss) 4,340 (3,289 ) (224 ) 827 Operating income (loss) 2,896 (4,266 ) (6,258 ) (7,628 ) Depreciation and amortization expense 2,974 — 242 3,216 Capital expenditures 738 — — 738 Total assets ( 1) 42,621 16,769 76,486 135,876 Three Months Ended September 30, 2020 F&S Shipyard Corporate Consolidated Revenue $ 18,237 $ 7,515 $ (446 ) $ 25,306 Gross loss (341 ) (233 ) (61 ) (635 ) Operating loss (1,226 ) (1,143 ) (1,835 ) (4,204 ) Depreciation and amortization expense 1,246 — 77 1,323 Capital expenditures 2,033 — 11 2,044 Total assets ( 1) 67,381 19,894 67,297 154,572 Nine months ended September 30, 2020 F&S Shipyard Corporate Consolidated Revenue $ 78,286 $ 18,100 $ (1,413 ) $ 94,973 Gross profit (loss) 105 (1,757 ) (179 ) (1,831 ) Operating income (loss) 7,353 (3,232 ) (6,169 ) (2,048 ) Depreciation and amortization expense 3,726 — 229 3,955 Capital expenditures 3,857 — 190 4,047 Total assets ( 1) 67,381 19,894 67,297 154,572 __________________ (1) Cash, cash equivalents and short-term investments are reported within our Corporate Division. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Number of operating segments | segment | 2 | ||||
Number of corporate non-operating segments | segment | 1 | ||||
Short-term investments | $ 0 | $ 0 | |||
Prepaid contract costs | 0 | 0 | $ 0 | ||
Gain on settlement of contract dispute for project completed in 2015 | 10,000,000 | ||||
Federal income tax expense (benefit) | 0 | $ 0 | 0 | $ 0 | |
Other (income) expense, net | |||||
Significant Accounting Policies [Line Items] | |||||
Charges for damage | 400,000 | $ 700,000 | $ 400,000 | $ 700,000 | |
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 25 years | ||||
LC Facility | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | 2,100,000 | $ 2,100,000 | $ 0 | ||
LC Facility | Balance Sheet Date Classified as Current | |||||
Significant Accounting Policies [Line Items] | |||||
Maturity date, description | maturity dates of twelve months or less from the balance sheet date classified as current | ||||
LC Facility | Balance Sheet Date Classified as Noncurrent | |||||
Significant Accounting Policies [Line Items] | |||||
Maturity date, description | maturity dates of longer than twelve months from the balance sheet date classified as noncurrent | ||||
PPP Loan | |||||
Significant Accounting Policies [Line Items] | |||||
Nontaxable benefit associated with extinguishment of debt | $ 9,100,000 | $ 9,100,000 |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 19,587 | $ 25,306 | $ 67,640 | $ 94,973 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (446) | (493) | (1,413) | |
Shipyard | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,302 | 7,515 | 10,561 | 18,100 |
F&S | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17,285 | 18,237 | 57,572 | 78,286 |
Fixed-price and unit-rate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,390 | 17,959 | 40,839 | 73,630 |
Fixed-price and unit-rate | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (20) | (8) | (344) | |
Fixed-price and unit-rate | Shipyard | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,202 | 7,515 | 10,461 | 18,100 |
Fixed-price and unit-rate | F&S | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,188 | 10,464 | 30,386 | 55,874 |
T&M | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,527 | 5,800 | 24,050 | 17,180 |
T&M | Shipyard | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 100 | 100 | ||
T&M | F&S | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,427 | 5,800 | 23,950 | 17,180 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 670 | 1,547 | 2,751 | 4,163 |
Other | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (426) | (485) | (1,069) | |
Other | F&S | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 670 | $ 1,973 | $ 3,236 | $ 5,232 |
Revenue, Contract Assets and _4
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligation by Operating Segment (Details) - Operating Segments $ in Thousands | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 19,461 |
Fabrication & Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 7,241 |
Shipyard | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12,220 |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Remaining Performance Obligation by Operating Segment (Parenthetical) (Details) $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 10.7 |
Revenue remaining performance obligation expected timing of satisfaction period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 8.8 |
Revenue remaining performance obligation expected timing of satisfaction period | 1 year |
Revenue, Contract Assets and _6
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 2,246 | $ 5,098 |
Contract liabilities | (7,188) | (10,262) |
Contracts in progress, net | $ (4,942) | $ (5,164) |
Revenue, Contract Assets and _7
Revenue, Contract Assets and Liabilities and Other Contract Matters - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Vechicle | Sep. 30, 2020USD ($)Vechicle | Dec. 31, 2020USD ($) | |
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Number of vehicle ferry projects | Vechicle | 2 | ||||
Reduction of estimated contract price for liquidated damages, amount | $ 1,200,000 | $ 1,200,000 | $ 600,000 | ||
Change in estimated margins | 8,400,000 | ||||
Asset impairments | $ 22,750,000 | ||||
Hurricane Ida | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Date of landfall | Aug. 29, 2021 | ||||
Impact of Hurricane Ida, description | On August 29, 2021, Hurricane Ida made landfall near Houma, Louisiana as a high-end Category 4 hurricane, with high winds, heavy rains and storm surge causing significant damage and power outages throughout the region. Our F&S Facility did not experience significant flood damage; however, the high winds and heavy rain damaged multiple buildings and equipment and resulted in significant debris throughout the facility. As a result of the power outages, damage to buildings and debris, the operations at our F&S Facility were temporarily suspended and we immediately commenced cleanup and restoration efforts. While cleanup and restoration efforts are ongoing, we recommenced our operations before the end of the third quarter 2021. | ||||
Hurricane Laura | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Date of landfall | Aug. 27, 2020 | ||||
Total charges related to deductibles | $ 1,200,000 | $ 1,200,000 | |||
Impact of Hurricane Laura, description | On August 27, 2020, Hurricane Laura made landfall near Lake Charles, Louisiana as high-end Category 4 hurricane, with high winds and flooding causing significant damage throughout the region. At our Lake Charles Facility, the storm damaged drydocks, warehouses, bulkheads and our ninth harbor tug project which was nearing completion and subsequently completed in the fourth quarter 2020. | ||||
Charges related to deductibles within discontinued operations | 500,000 | 500,000 | |||
Deductible charges associated with, description | As a result of the storm, during both the three and nine months ended September 30, 2020, we recorded charges of $1.2 million (of which $0.5 million was reflected within discontinued operations) related to deductibles associated with our insurance coverages, and our preliminary estimates of cost associated with uninsurable damage, primarily for bulkheads. | ||||
Shipyard | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | 1,300,000 | $ 3,000,000 | 1,300,000 | ||
F&S | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | 1,100,000 | 600,000 | 3,700,000 | $ 2,600,000 | |
F&S | Hurricane Ida | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Asset impairments | 500,000 | 500,000 | |||
Costs associated with clean-up and expediting activities | 900,000 | 900,000 | |||
F&S | Hurricane Ida | Minimum | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Charges related to deductibles with insurance coverages | 2,000,000 | ||||
F&S | Hurricane Ida | Maximum | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Charges related to deductibles with insurance coverages | 3,000,000 | ||||
Marine Docking Structures Project and Material Supply Project | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | $ 1,100,000 | ||||
Marine Docking Structures Project, Offshore Modules Project, Material Supply Project And a Subsea Structures Project | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | $ 3,700,000 | ||||
Projects, percent complete (percentage) | 89.00% | 89.00% | |||
Seventy-Vehicle Ferry | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | $ 1,700,000 | $ 3,300,000 | |||
Projects, percent complete (percentage) | 78.00% | 78.00% | |||
Reserve for loss | $ 1,000,000 | $ 1,000,000 | |||
Forty-Vehicle Ferry | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Number of vehicle ferry projects | Vechicle | 2 | 2 | |||
Change in estimated margins | 400,000 | 0 | $ 300,000 | $ 1,300,000 | |
Reserve for loss | $ 3,300,000 | $ 3,300,000 | |||
Forty-Vehicle Ferry Vessel Two | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Projects, percent complete (percentage) | 96.00% | 96.00% | |||
Forty-Vehicle Ferry Vessel One | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Projects, percent complete (percentage) | 62.00% | 62.00% | |||
Paddlewheel Riverboat and Subsea Components Projects | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | 0 | 1,500,000 | |||
Jacket and Deck | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Change in estimated margins | $ 600,000 | $ 1,100,000 | |||
Second Forty-Vehicle Ferry | Hurricane Ida | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Total charges related to deductibles | $ 400,000 | $ 400,000 | |||
Second Forty-Vehicle Ferry | Hurricane Ida | Minimum | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Charges related to deductibles with insurance coverages | 1,000,000 | ||||
Second Forty-Vehicle Ferry | Hurricane Ida | Maximum | |||||
Long Term Contracts Or Programs Disclosure [Line Items] | |||||
Charges related to deductibles with insurance coverages | $ 1,500,000 |
Revenue, Contract Assets and _8
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |||||
Contract with customer, liability, revenue recognized | $ 1.6 | $ 4.6 | $ 3.2 | $ 11.4 | |
Contract with customer, liability, accrued contract losses, current | $ 4.4 | $ 4.4 | $ 5.4 |
Shipyard Transaction and Disc_3
Shipyard Transaction and Discontinued Operations - Additional Information (Details) | Oct. 31, 2021USD ($) | Apr. 19, 2021USD ($)VechiclevesselShip_projectdrydock | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Vechicle | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Number of drydocks previously supported for shipyard division operations | drydock | 3 | |||||||
Number of vehicle ferry projects | Vechicle | 2 | |||||||
Liabilities | $ 24,722,000 | $ 104,981,000 | ||||||
Asset impairments | 22,750,000 | |||||||
Change in estimated margins | 8,400,000 | |||||||
Approved change order from increased contract price | 9,200,000 | |||||||
Increased craft labor costs | 800,000 | |||||||
Other (income) expense, net | $ (529,000) | 647,000 | $ (629,000) | |||||
Shipyard Transaction | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Number of research vessels projects | vessel | 3 | |||||||
Number of divested shipyard contracts | Ship_project | 5 | |||||||
Number of drydocks | drydock | 4 | |||||||
Number of vehicle ferry projects | Vechicle | 3 | |||||||
Number of MPSV projects | vessel | 2 | |||||||
Pre tax loss on estimated carry value of net assets sold | 25,300,000 | |||||||
Estimated loss related to impairment of long lived assets and transaction costs | 22,800,000 | |||||||
Additional loss related to additional transaction and other costs | 2,600,000 | |||||||
Asset impairments | $ 22,800,000 | |||||||
Change in estimated margins | $ 6,700,000 | $ 7,400,000 | ||||||
Other (income) expense, net | 600,000 | |||||||
Shipyard Transaction | Retained Shipyard Contracts And Other Shipyard Division Liabilities | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Liabilities | 11,000,000 | |||||||
Purchase Agreement | Bollinger | Shipyard Transaction | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Transaction price | $ 28,600,000 | |||||||
Net of estimated transaction and other costs | 26,100,000 | |||||||
Transaction price on closing date | 26,400,000 | |||||||
Deferred transaction price | 2,200,000 | |||||||
Estimate change in working capital for divested shipyard contracts | 8,000,000 | |||||||
Actual changes in working capital for divested shipyard contracts | $ 7,800,000 | |||||||
Closing adjustment returned to related party | $ 200,000 | |||||||
Purchase Agreement | Bollinger | Shipyard Transaction | Subsequent Event | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Deferred transaction price | $ 1,300 | |||||||
Purchase Agreement | Bollinger | Shipyard Transaction | Prepaid Expenses and Other Assets | ||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||
Prepaid expenses and other assets | $ 2,200,000 |
Shipyard Transaction and Disc_4
Shipyard Transaction and Discontinued Operations - Summary of Operating Results Constituting Loss Form Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Revenue | $ 29,563 | $ 41,637 | $ 98,425 |
Cost of revenue | 36,745 | 33,912 | 106,368 |
Gross profit (loss) | (7,182) | 7,725 | (7,943) |
General and administrative expense | 324 | 413 | 1,109 |
Impairments and (gain) loss on assets held for sale, net | 25,331 | ||
Other (income) expense, net | 529 | (647) | 629 |
Operating loss | (8,035) | (17,372) | (9,681) |
Loss from discontinued operations, net of taxes | $ (8,035) | $ (17,372) | $ (9,681) |
Shipyard Transaction and Disc_5
Shipyard Transaction and Discontinued Operations - Summary of Carrying Values of Major Classes of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets of discontinued operations: | ||
Contract receivables and retainage, net | $ 1,304 | |
Contract assets | 62,423 | |
Prepaid expenses and other assets | 270 | |
Inventory | 105 | |
Assets held for sale | 2,014 | |
Total current assets of discontinued operations | 66,116 | |
Noncurrent assets of discontinued operations: | ||
Property, plant and equipment, net | 36,280 | |
Other noncurrent assets | 2,889 | |
Total noncurrent assets of discontinued operations | 39,169 | |
Current liabilities of discontinued operations: | ||
Accounts payable | $ 27 | 57,752 |
Contract liabilities | 4,867 | |
Accrued expenses and other liabilities | 149 | 988 |
Total current liabilities of discontinued operations | $ 176 | $ 63,607 |
Shipyard Transaction and Disc_6
Shipyard Transaction and Discontinued Operations - Summary of Cash Flows of Discontinued Operations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Operating cash flows from discontinued operations | $ (9,067) | $ (5,677) |
Investing cash flows from discontinued operations | $ 31,424 | $ (6,144) |
Impairments and (Gain) Loss o_3
Impairments and (Gain) Loss on Assets Held for Sale - Additional Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)crane | Sep. 30, 2020USD ($) | Dec. 31, 2020crane | |
Long Lived Assets Held-for-sale [Line Items] | |||
Impairments of assets | $ 22,750 | ||
Gain (loss) on sale of assets | $ (45) | $ 5 | |
Held for sale | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Number of cranes | crane | 1 | 2 | |
Proceeds from the sale of assets held for sale | $ 4,500 | $ 1,700 | |
Proceeds from the sale of assets held for sale net of transaction and other costs | 4,400 | ||
Gain (loss) on sale of assets | $ 0 |
Impairments and (Gain) Loss o_4
Impairments and (Gain) Loss on Assets Held for Sale - Summary of Assets Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - Shipyard - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long Lived Assets Held-for-sale [Line Items] | ||
Machinery and equipment | $ 4,587 | $ 11,877 |
Accumulated depreciation | (2,787) | (5,677) |
Total | $ 1,800 | $ 6,200 |
Credit Facilities and Debt - Ad
Credit Facilities and Debt - Additional Information (Details) - USD ($) | Jul. 28, 2021 | Sep. 29, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Apr. 17, 2020 |
Line of Credit Facility [Line Items] | |||||
Maturity date | Jun. 30, 2023 | ||||
Fees on undrawn borrowings (percentage) | 0.40% | ||||
Total outstanding letters of credit | $ 2,100,000 | $ 2,100,000 | |||
Gain on extinguishment of debt | 9,061,000 | 9,061,000 | |||
Surety bonds | 110,800,000 | 110,800,000 | |||
Surety bonds subject to dispute | $ 50,000,000 | 50,000,000 | |||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit facility | $ 20,000,000 | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate (percentage) | 1.50% | 1.50% | |||
PPP Loan | |||||
Line of Credit Facility [Line Items] | |||||
Letter of credit facility | $ 8,900,000 | ||||
Unsecured loan amount | $ 10,000,000 | ||||
Loan payments | $ 9,100,000 | ||||
Gain on extinguishment of debt | $ 9,100,000 | $ 9,100,000 | |||
PPP Loan threshold requiring an audit by the SBA | $ 2,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)vessel | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Number of multi-purpose service vessels | vessel | 2 | ||
Contract asset under dispute, noncurrent | $ 12.5 | $ 12.5 | |
Surety Bond | |||
Loss Contingencies [Line Items] | |||
Claims under performance bonds issued | $ 50 |
Income (Loss) Per Share - Compu
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Income (loss) from continuing operations | $ 5,312 | $ (4,302) | $ 1,092 | $ (2,288) | ||||
Loss from discontinued operations, net of taxes | (8,035) | (17,372) | (9,681) | |||||
Net income (loss) | $ 5,312 | $ (2,951) | $ (18,641) | $ (12,337) | $ (5,537) | $ 5,905 | $ (16,280) | $ (11,969) |
Weighted-average shares | 15,539 | 15,312 | 15,490 | 15,296 | ||||
Basic and diluted income (loss) from continuing operations | $ 0.34 | $ (0.28) | $ 0.07 | $ (0.15) | ||||
Basic and diluted loss from discontinued operations | (0.52) | (1.12) | (0.63) | |||||
Basic and diluted income (loss) per share | $ 0.34 | $ (0.81) | $ (1.05) | $ (0.78) |
Income (Loss) Per Share - Com_2
Income (Loss) Per Share - Computation of Basic and Diluted Income (Loss) Per Share (Parenthetical) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of corporate non-operating segments | 1 |
Operating Segments - Summary of
Operating Segments - Summary of Reclassification of Previously Reported Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Discontinued operations | $ (7,182) | $ 7,725 | $ (7,943) | |
Gross profit (loss) | $ (198) | (635) | 827 | (1,831) |
Operating income (loss), as previously reported | $ (3,682) | (4,204) | $ (7,628) | (2,048) |
Previously Reported Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), as previously reported | (7,817) | (9,774) | ||
Discontinued operations | 7,182 | 7,943 | ||
Gross profit (loss) | (635) | (1,831) | ||
Operating income (loss), as previously reported | (12,239) | (11,729) | ||
Discontinued operations(1) | 8,035 | 9,681 | ||
Operating income (loss) from continuing operations | (4,204) | (2,048) | ||
Operating Segments | F&S | Previously Reported Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), as previously reported | (313) | 185 | ||
Changes in expense allocations | (28) | (80) | ||
Gross profit (loss) | (341) | 105 | ||
Operating income (loss), as previously reported | (1,127) | 7,644 | ||
Changes in expense allocations | (99) | (291) | ||
Operating income (loss) from continuing operations | (1,226) | 7,353 | ||
Operating Segments | Shipyard | Previously Reported Segment | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit (loss), as previously reported | (7,504) | (9,959) | ||
Discontinued operations | 7,182 | 7,943 | ||
Changes in expense allocations | 89 | 259 | ||
Gross profit (loss) | (233) | (1,757) | ||
Operating income (loss), as previously reported | (9,244) | (12,867) | ||
Discontinued operations(1) | 8,035 | 9,681 | ||
Changes in expense allocations | 227 | 679 | ||
Reclassification of legal expenses | (161) | (725) | ||
Operating income (loss) from continuing operations | (1,143) | (3,232) | ||
Corporate | Previously Reported Segment | ||||
Segment Reporting Information [Line Items] | ||||
Changes in expense allocations | (61) | (179) | ||
Gross profit (loss) | (61) | (179) | ||
Operating income (loss), as previously reported | (1,868) | (6,506) | ||
Changes in expense allocations | (128) | (388) | ||
Reclassification of legal expenses | 161 | 725 | ||
Operating income (loss) from continuing operations | $ (1,835) | $ (6,169) |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 19,587 | $ 25,306 | $ 67,640 | $ 94,973 | |
Gross profit (loss) | (198) | (635) | 827 | (1,831) | |
Operating income (loss) | (3,682) | (4,204) | (7,628) | (2,048) | |
Capital expenditures | 1,080 | 10,191 | |||
Total assets | 135,876 | 135,876 | $ 231,343 | ||
Operating Segments | F&S | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 17,285 | 18,237 | 57,572 | 78,286 | |
Operating Segments | Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,302 | 7,515 | 10,561 | 18,100 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (446) | (493) | (1,413) | ||
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 19,587 | 25,306 | 67,640 | 94,973 | |
Gross profit (loss) | (198) | (635) | 827 | (1,831) | |
Operating income (loss) | (3,682) | (4,204) | (7,628) | (2,048) | |
Depreciation and amortization expense | 1,067 | 1,323 | 3,216 | 3,955 | |
Capital expenditures | 159 | 2,044 | 738 | 4,047 | |
Total assets | 135,876 | 154,572 | 135,876 | 154,572 | |
Continuing Operations | Operating Segments | F&S | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 17,285 | 18,237 | 57,572 | 78,286 | |
Gross profit (loss) | 1,112 | (341) | 4,340 | 105 | |
Operating income (loss) | 379 | (1,226) | 2,896 | 7,353 | |
Depreciation and amortization expense | 985 | 1,246 | 2,974 | 3,726 | |
Capital expenditures | 159 | 2,033 | 738 | 3,857 | |
Total assets | 42,621 | 67,381 | 42,621 | 67,381 | |
Continuing Operations | Operating Segments | Shipyard | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,302 | 7,515 | 10,561 | 18,100 | |
Gross profit (loss) | (1,252) | (233) | (3,289) | (1,757) | |
Operating income (loss) | (1,896) | (1,143) | (4,266) | (3,232) | |
Total assets | 16,769 | 19,894 | 16,769 | 19,894 | |
Continuing Operations | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (446) | (493) | (1,413) | ||
Gross profit (loss) | (58) | (61) | (224) | (179) | |
Operating income (loss) | (2,165) | (1,835) | (6,258) | (6,169) | |
Depreciation and amortization expense | 82 | 77 | 242 | 229 | |
Capital expenditures | 11 | 190 | |||
Total assets | $ 76,486 | $ 67,297 | $ 76,486 | $ 67,297 |