Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Gulf Island Fabrication, Inc. | ||
Entity Central Index Key | 0001031623 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | true | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 15,775,304 | ||
Entity Public Float | $ 60,454,000 | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | LA | ||
Trading Symbol | GIFI | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Houston, Texas | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement to be prepared for use in connection with the registrant’s 2022 annual meeting of shareholders have been incorporated by reference into Part III of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 52,886 | $ 43,159 |
Restricted cash, current | 1,297 | |
Short-term investments | 7,998 | |
Contract receivables and retainage, net | 15,986 | 14,089 |
Contract assets | 4,759 | 5,098 |
Prepaid expenses and other assets | 6,971 | 7,940 |
Inventory | 1,779 | 2,157 |
Assets held for sale | 1,800 | 6,200 |
Current assets of discontinued operations | 66,116 | |
Total current assets | 85,478 | 152,757 |
Restricted cash, noncurrent | 406 | |
Property, plant and equipment, net | 32,866 | 31,178 |
Goodwill | 2,217 | |
Other intangibles, net | 984 | |
Noncurrent assets of discontinued operations | 39,169 | |
Other noncurrent assets | 13,322 | 13,634 |
Total assets | 135,273 | 236,738 |
Current liabilities: | ||
Accounts payable | 9,280 | 12,362 |
Contract liabilities | 6,648 | 10,262 |
Accrued expenses and other liabilities | 14,026 | 13,763 |
Long-term debt, current | 5,499 | |
Current liabilities of discontinued operations | 63,807 | |
Total current liabilities | 29,954 | 105,693 |
Long-term debt, noncurrent | 4,501 | |
Other noncurrent liabilities | 1,411 | 2,068 |
Total liabilities | 31,365 | 112,262 |
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, 15,622 issued and outstanding at December 31, 2021 and 15,359 at December 31, 2020 | 11,384 | 11,223 |
Additional paid-in capital | 105,511 | 104,072 |
Retained earnings (accumulated deficit) | (12,987) | 9,181 |
Total shareholders’ equity | 103,908 | 124,476 |
Total liabilities and shareholders’ equity | $ 135,273 | $ 236,738 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 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) | 15,622,000 | 15,359,000 |
Common stock, shares outstanding (in shares) | 15,622,000 | 15,359,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 93,452 | $ 117,729 |
Cost of revenue | 91,788 | 125,596 |
Gross profit (loss) | 1,664 | (7,867) |
General and administrative expense | 11,848 | 12,725 |
Impairments and (gain) loss on assets held for sale, net | 2,491 | |
Other (income) expense, net | 3,300 | (9,180) |
Operating loss | (13,484) | (13,903) |
Gain on extinguishment of debt | 9,061 | |
Interest (expense) income, net | (397) | (268) |
Loss before income taxes | (4,820) | (14,171) |
Income tax (expense) benefit | 24 | 52 |
Loss from continuing operations | (4,796) | (14,119) |
Loss from discontinued operations, net of taxes | (17,372) | (13,307) |
Net loss | $ (22,168) | $ (27,426) |
Per share data: | ||
Basic and diluted loss from continuing operations | $ (0.31) | $ (0.92) |
Basic and diluted loss from discontinued operations | (1.12) | (0.87) |
Basic and diluted loss per share | $ (1.43) | $ (1.79) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Beginning Balance at Dec. 31, 2019 | $ 150,850 | $ 11,119 | $ 103,124 | $ 36,607 |
Beginning Balance (in shares) at Dec. 31, 2019 | 15,263 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (27,426) | (27,426) | ||
Vesting of restricted stock | (74) | $ (8) | (66) | |
Vesting of restricted stock (in shares) | 96 | |||
Stock-based compensation expense | 1,126 | $ 112 | 1,014 | |
Ending Balance at Dec. 31, 2020 | $ 124,476 | $ 11,223 | 104,072 | 9,181 |
Ending Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ (18,537) | |||
Ending Balance at Mar. 31, 2021 | 106,152 | |||
Beginning Balance at Dec. 31, 2020 | $ 124,476 | $ 11,223 | 104,072 | 9,181 |
Beginning Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ (21,366) | |||
Ending Balance at Jun. 30, 2021 | 103,679 | |||
Beginning Balance at Dec. 31, 2020 | $ 124,476 | $ 11,223 | 104,072 | 9,181 |
Beginning Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ (15,978) | |||
Ending Balance at Sep. 30, 2021 | 109,570 | |||
Beginning Balance at Dec. 31, 2020 | $ 124,476 | $ 11,223 | 104,072 | 9,181 |
Beginning Balance (in shares) at Dec. 31, 2020 | 15,359 | 15,359 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | $ (22,168) | (22,168) | ||
Vesting of restricted stock | (108) | $ (10) | (98) | |
Vesting of restricted stock (in shares) | 263 | |||
Stock-based compensation expense | 1,708 | $ 171 | 1,537 | |
Ending Balance at Dec. 31, 2021 | $ 103,908 | $ 11,384 | $ 105,511 | $ (12,987) |
Ending Balance (in shares) at Dec. 31, 2021 | 15,622 | 15,622 | ||
Beginning Balance at Mar. 31, 2021 | $ 106,152 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (2,829) | |||
Ending Balance at Jun. 30, 2021 | 103,679 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | 5,388 | |||
Ending Balance at Sep. 30, 2021 | $ 109,570 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (22,168) | $ (27,426) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,386 | 8,617 |
Asset impairments | 22,750 | 3,310 |
(Gain) loss on sale of fixed assets and assets held for sale, net | 33 | 289 |
Gain on extinguishment of debt | (9,061) | |
Stock-based compensation expense | 1,708 | 1,126 |
Changes in operating assets and liabilities: | ||
Contract receivables and retainage, net | (593) | 10,702 |
Contract assets | (6,949) | (15,393) |
Prepaid expenses, inventory and other current assets | 1,895 | 1,644 |
Accounts payable | (11,491) | 10,042 |
Contract liabilities | (6,882) | (11,142) |
Accrued expenses and other current liabilities | (1,257) | (2,376) |
Noncurrent assets and liabilities, net | (766) | 1,599 |
Net cash used in operating activities | (24,814) | (19,008) |
Cash flows from investing activities: | ||
Capital expenditures | (1,483) | (11,212) |
Proceeds from Shipyard Transaction, net of transaction costs | 32,992 | |
DSS Acquisition | (7,573) | |
Proceeds from sale of property and equipment | 4,466 | 2,020 |
Recoveries from insurance claims | 1,000 | |
Purchases of short-term investments | (58,751) | |
Maturities of short-term investments | 8,000 | 70,552 |
Net cash provided by investing activities | 37,402 | 2,609 |
Cash flows from financing activities: | ||
Proceeds from borrowings | 10,000 | |
Repayment of borrowings | (1,050) | |
Payment of financing cost | (71) | |
Tax payments for vested stock withholdings | (108) | (74) |
Net cash provided by (used in) financing activities | (1,158) | 9,855 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,430 | (6,544) |
Cash, cash equivalents and restricted cash, beginning of period | 43,159 | 49,703 |
Cash, cash equivalents and restricted cash, end of period | 54,589 | 43,159 |
Supplemental cash flow information: | ||
Deferred Transaction Price receivable from Shipyard Transaction | 886 | |
Forgiveness of principal and interest of PPP Loan | 9,061 | |
Interest paid | 264 | 376 |
Income taxes paid (refunds received), net | (971) | |
Reclassification of property, plant and equipment to assets held for sale | 2,115 | |
Accounts payable included in capital expenditures | 98 | $ 153 |
Shipyard Transaction | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Asset impairments | 22,800 | |
Loss on Shipyard Transaction | $ 2,581 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 a provider of special services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, civil construction and staffing services to the industrial and energy sectors. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through 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 primary 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 below and Note 3 for further discussion of the Shipyard Transaction. On December 1, 2021, we acquired (“DSS Acquisition”) the services and industrial staffing businesses (“DSS Business”) of Dynamic Industries, Inc. (“Dynamic”). The operating results of the DSS Business for the one-month period ended December 31, 2021, are included within our Fabrication & Services Division. See Note 4 for further discussion of the DSS Acquisition. Basis of Presentation The accompanying Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the U.S. (“GAAP”). Certain amounts for 2020, and balances at December 31, 2020, have been reclassified within our Consolidated Balance Sheets (“Balance Sheet”), Consolidated Statements of Operations (“Statement of Operations”), and Consolidated Statements of Cash Flows (“Statement of Cash Flows”) to conform to our presentation of such amounts for 2021, and balances at December 31, 2021 . 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 2021. Accordingly, such operating results for 2021 have been classified as discontinued operations on our Statement of Operations. We had no material assets and liabilities of discontinued operations at December 31, 2021. Our classification of these operations as discontinued requires retrospective application to financial information for prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for 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 Statement of Cash Flows or our Consolidated Statements of Changes in Shareholders’ Equity (“Statement of Shareholders’ Equity”). 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. Revision of Previously Issued Financial Statements During 2021, we determined that our accrued liability for employee earned vacation and the associated expense related to prior periods was understated, resulting in immaterial errors in our previously issued financial statements. As a result, we have made certain corrections to adjust the liability and associated expense. Our vacation policy generally provides that no vacation may be taken prior to working for a defined service period, with such service period end date ultimately being reset to the first day of each calendar year after the defined service period. Accordingly, such employees generally “earn” their allotted vacation in the calendar year prior to such vacation being made available to them, beginning on the first day of the subsequent calendar year. Such vacation is then available to the employee. Any unused vacation not taken during the year is forfeited if the employee remains with the Company and is paid if the employee is terminated or otherwise leaves the Company during the year. The understatement of our vacation liability is the result of not accruing vacation expense in the calendar year in which the vacation was earned. Instead, expense was historically recorded during the calendar year in which the vacation was taken. In addition, in our previously issued Financial Statements we presented our estimated insurance recoveries for workers’ compensation liabilities in excess of any deductibles and self-insured retentions on a net basis on our Balance Sheet. However, because we do not have an offset right, such amounts should be presented on a gross basis on our Balance Sheet, with a liability for the workers’ compensation obligation and an asset for the estimated insurance recoveries. In evaluating whether the previously issued financial statements were materially misstated for periods prior to December 31, 2021, we applied the guidance of Accounting Standards Codification (“ASC”) 250, “Accounting Changes and Error Corrections “Assessing Materiality” “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” The cumulative effect of adjustments required to correct the misstatements in the Financial Statements for years prior to 2020 totaled $1.8 million and is reflected as a reduction to retained earnings at January 1, 2020 on our Statement of Shareholders’ Equity. The adjustments required to reflect the corrections attributable to 2020 are reflected on our Balance Sheet at December 31, 2020, and in our Statement of Operations and Statement of Cash Flows for 2020. A summary of the adjustments to previously issued 2020 Financial Statements to correct the error in accounting for employee earned vacation, as well as certain other known immaterial errors, is as follows (in thousands): Balance Sheet as of December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Prepaid expenses and other assets (3) $ 2,815 $ 5,395 $ 8,210 $ (270 ) $ 7,940 Total current assets (3) 147,362 5,395 152,757 — 152,757 Total assets (3) 231,343 5,395 236,738 — 236,738 Accrued expenses and other liabilities (3) 7,670 7,281 14,951 (1,188 ) 13,763 Current liabilities of discontinued operations (4) — — — 63,807 63,807 Total current liabilities (3) 98,412 7,281 105,693 — 105,693 Total liabilities (3) 104,981 7,281 112,262 — 112,262 Retained earnings 11,067 (1,886 ) 9,181 — 9,181 Total shareholders' equity 126,362 (1,886 ) 124,476 — 124,476 Total liabilities and shareholders’ equity (3) 231,343 5,395 236,738 — 236,738 Statement of Operations for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Cost of revenue $ 268,710 $ (242 ) $ 268,468 $ (142,872 ) $ 125,596 Gross loss (17,751 ) 242 (17,509 ) 9,642 (7,867 ) General and administrative expense 13,858 293 14,151 (1,426 ) 12,725 Operating loss (27,159 ) (51 ) (27,210 ) 13,307 (13,903 ) Loss before income taxes (27,427 ) (51 ) (27,478 ) 13,307 (14,171 ) Net loss (27,375 ) (51 ) (27,426 ) — (27,426 ) Statement of Cash Flows for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted (5) Net loss $ (27,375 ) $ (51 ) $ (27,426 ) Accrued expenses and other current liabilities (2,427 ) 51 (2,376 ) (1) Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation. (2) Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis. (3) The error corrections include a $ 5.4 million (4) Recast amount includes $0.2 million associated with the earned vacation liability error correction that is reflected within discontinued operations. (5) Discontinued operations are not presented separately on our Statement of Cash Flows. See Note 12 for a summary of the corrections to previously reported segment amounts for 2020 and Note 13 for a summary of the corrections to previously reported quarterly and segment amounts for 2021. Operating Cycle The durations of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets 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; • determination of fair value with respect to acquired tangible and intangible assets; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, assets held for sale, goodwill and other intangible assets; • 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 volatile oil prices and the ongoing global coronavirus pandemic (“COVID-19”) 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 2021 and 2020. In addition, our operations (as well as the operations of our customers, subcontractors and counterparties) were negatively impacted by the physical distancing, quarantine and isolation measures recommended by national, state and local authorities on large portions of the populations, and mandatory business closures that were enacted in an attempt to control the spread of COVID-19, and which could be reenacted in response to new and emerging strains and variants of COVID-19 or any future major public health crisis. 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 in 2022 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, COVID-19 and Russia’s invasion of Ukraine in February 2022. Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities in periods in which income is reported. See Note 11 for calculations of our basic and diluted income (loss) per share. Cash Equivalents and Short-term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. Restricted Cash – At December 31, 2021, we had $1.7 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 Note7 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 December 31, 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 and graded vesting methods to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our 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. See Note 9 for further discussion of our stock-based and other compensation plans. Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 5 for further discussion of our assets held for sale. Depreciation and Amortization Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Intangible assets are amortized on a straight-line basis over 7 years and amortization expense is reflected within general and administrative expense on our Statement of Operations. See Note 6 for further discussion of our property, plant and equipment and Note 4 for further discussion of our intangible assets. Long-Lived Assets Goodwill – Our goodwill is associated with the DSS Acquisition on December 1, 2021. Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment. Our Fabrication & Services Division includes one reporting unit associated with our DSS Acquisition. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. Because of the proximity of the Acquisition Date to December 31, 2021, we performed a qualitative assessment at year-end to determine whether our goodwill was impaired. Based on this qualitative assessment, we determined that it was more likely than not that the fair value of our reporting unit is greater than its carrying value. We intend to perform our future annual impairment assessments during the fourth quarter of each year based upon balances as of the beginning of that year’s fourth quarter. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the year of impairment. See Note 4 for discussion of the DSS Acquisition and related goodwill. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets), and finite-lived intangible assets (associated with the DSS Acquisition) 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, Note 3 for discussion of our long-lived asset impairments within discontinued operations, and Note 4 for discussion of the DSS Acquisition and related long-lived assets. 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. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. See Note 6 for further discussion of our lease assets and liabilities. Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining the impairments of goodwill, 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 discussion of fair value measurements associated with the DSS Acquisition and Note 5 for further discussion of impairments of our long-lived assets and 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 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 our unapproved change orders, claims, incentives and liquidated damages . Additional Disclosures – Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At December 31, 2021 and 2020, we had no deferred pre-contract costs. Other (Income) Expense, Net 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 2021, other (income) expense, net included charges of $3.8 million associated with damage caused by Hurricane Ida and transaction costs of $0.5 million associated with the DSS Acquisition. For 2020, other (income) expense, net included a gain of $10.0 million associated with the settlement of a contract dispute for a project completed in 2015 and charges of $0.8 million associated with damage caused by Hurricane Laura. See Note 2 for further discussion of the impacts of Hurricanes Ida and Laura. Income Taxes Income taxes have been provided for using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. See Note 8 for further discussion of our income taxes and DTAs. New Accounting Standards Income taxes – In the first quarter 2021, we adopted 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 ou r financial position, results of operations or related disclosures. Financial instruments – In June 2016, the FASB issued ASU 2016-13, 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 evaluating the effect that the new standard will have on our financial position, results of operations and related |
REVENUE, CONTRACT ASSETS AND LI
REVENUE, CONTRACT ASSETS AND LIABILITIES AND OTHER CONTRACT MATTERS | 12 Months Ended |
Dec. 31, 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 for our contracts in accordance with Topic 606. Summarized below are required disclosures under Topic 606 and other relevant guidance. Disaggregation of Revenue The following tables summarize revenue for each of our operating segments, disaggregated by contract type, for 2021 and 2020 thousands): Year ended December 31, 2021 F&S Shipyard Eliminations Total Fixed-price and unit-rate (1) $ 40,480 $ 12,778 $ (8 ) $ 53,250 T&M (2) 36,555 100 — 36,655 Other 4,048 — (501 ) 3,547 Total $ 81,083 $ 12,878 $ (509 ) $ 93,452 Year Ended December 31, 2020 F&S Shipyard Eliminations Total Fixed-price and unit-rate (1) $ 66,790 $ 20,468 $ (148 ) $ 87,110 T&M (2) 25,294 — (388 ) 24,906 Other 7,401 — (1,688 ) 5,713 Total $ 99,485 $ 20,468 $ (2,224 ) $ 117,729 (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. Future Performance Obligations The following table summarizes our remaining performance obligations by operating segment at December 31, 2021 (in thousands): Performance Obligations F&S $ 6,847 Shipyard 10,223 Total (1) $ 17,070 (1) We expect to recognize all of our performance obligations at December 31, 2021, as revenue in 2022 . Contracts Assets and Liabilities Revenue recognition and customer invoicing for our fixed-price and unit-rate contracts may occur at different times. Revenue recognition is based upon our estimated percentage-of-completion as discussed in Note 1; however, customer invoicing is generally dependent upon predetermined billing terms, which could provide for customer payments in advance of performing the work, milestone billings based on the completion of certain phases of the work, or billings when services are provided. Revenue recognized in excess of amounts billed is reflected as contract assets on our Balance Sheet, or to the extent we have an unconditional right to the consideration, is reflected as contract receivables on our Balance Sheet. Amounts billed in excess of revenue recognized, and accrued contract losses, are reflected as contract liabilities on our Balance Sheet. Information with respect to contracts that were incomplete at December 31, 2021 and 2020, is as follows (in thousands): December 31, 2021 2020 Costs incurred on uncompleted contracts $ 103,315 $ 71,198 Estimated loss incurred to date (7,807 ) (10,290 ) Sub-total 95,508 60,908 Billings to date (97,397 ) (66,072 ) Total $ (1,889 ) $ (5,164 ) The above amounts are included within the following captions on our Balance Sheet at December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Contract assets (1), (2) $ 4,759 $ 5,098 Contract liabilities (3), (4), (5) (6,648 ) (10,262 ) Total $ (1,889 ) $ (5,164 ) (1) The decrease in contract assets compared to December 31, 2020, was primarily due to decreased unbilled position on our seventy-vehicle ferry project within our Shipyard Division, offset partially by increased unbilled positions for various projects within our Fabrication & Services Division. (2) Contract assets at December 31, 2021 and 2020, excludes $1.1 million and $2.3 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. (3) 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 and decrease in accrued contract losses on our seventy-vehicle ferry and two forty-vehicle ferry projects within our Shipyard Division. (4) Revenue recognized during 2021 and 2020 related to amounts included in our contract liabilities balance at December 31, 2020 and 2019, was $3.7 million and $9.9 million, respectively. (5) Contract liabilities at December 31, 2021 and 2020, includes accrued contract losses million and $5.4 million, respectively. See “Changes in Project Estimates” below for further discussion of our accrued contract losses. Significant Customers The following table summarizes revenue for customers that accounted for 10% or more of our consolidated revenue for 2021 and 2020 (in thousands): Years Ended December 31, 2021 2020 Customer A $ 41,057 $ 22,793 Customer B 9,576 14,559 Customer C * 22,463 * The customer revenue was less than 10% of consolidated revenue for the year. 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 2021 and 2020, and our allowance for doubtful accounts at December 31, 2021 and 2020, were not significant. Variable Consideration For 2021 and 2020, we had no material amounts in revenue related to unapproved change orders, claims or incentives. However, at December 31, 2021 and 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 2021, significant changes in estimated margins on projects positively impacted operating results for our Fabrication & Services Division by $3.3 million and negatively impacted operating results for our Shipyard Division by $3.8 million. The changes in estimates were associated with the following Fabrication & Services Division • Marine Docking Structures, Offshore Modules and Material Supply Projects – Positive impact for 2021 of $3.3 million for our marine docking structures, offshore modules and material supply projects, 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 December 31, 2021, the projects were complete. Shipyard Division • Seventy-Vehicle Ferry Project – Negative impact for 2021 of $4.1 million for our seventy-vehicle ferry project, resulting from increased forecast costs and forecast liquidated damages, primarily associated with increased craft labor, materials and subcontracted services costs, and extensions of schedule and associated duration related costs. The impacts were primarily due to customer-directed changes, higher forecast costs to launch the vessel, higher quantities of materials as production engineering has progressed, higher subcontractor cost estimates, and engineering delays and lower than anticipated craft labor productivity and 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 December 31, 2021 does not reflect potential future benefits, if any, from the favorable resolution of the claims. At December 31, 2021, the vessel was approximately 82% complete and is forecast to be completed in the third quarter 2022. The project was in a loss position at December 31, 2021 and our reserve for estimated losses was $0.9 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 2021 of $0.3 million 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 2020. As discussed further below under “Changes in Estimates for 2020,” During sea trials in January 2022 for the second vessel, one of the propulsion systems unexpectedly shutdown, causing the vessel to veer off course and run aground, causing damage to the hull. Our current estimate of the costs to repair the damage is $0.4 million to $0.9 million; however, the deductible associated with our insurance coverage for such an incident is $0.1 million. Further, we are working with the customer to determine the corrective actions required associated with the propulsion system. While such actions and associated costs are currently unknown, we believe the propulsion system shutdown was due to the aforementioned design deficiencies and are the responsibility of the customer. At December 31, 2021, the second vessel was approximately 96% complete and is forecast to be completed in the second quarter 2022 and the first vessel was approximately 66% complete and is forecast to be completed in the third quarter 2022. The projects were in a loss position at December 31, 2021 and our reserve for estimated losses was $3.0 million. Our forecast costs and schedule completion dates for the vessels are based on the current vessel design and reflect our best estimates; however, such estimates may be impacted by future challenges with, and resolution of, the vessel design deficiencies. While we continue to believe such impacts are the responsibility of the customer, we can provide no assurances that we will be successful recovering any future costs incurred associated with the design deficiencies. 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, we incur costs on the second vessel related to the damage caused during sea trials, we experience further challenges during sea trials or commissioning of either vessel or other challenges associated with the design deficiencies and are unable to recover associated costs from our customer, the projects would experience further losses. Changes in Estimates for 2020 – For 2020, significant changes in estimated margins on projects positively impacted operating results for our Fabrication & Services Division by $2.7 million and negatively impacted operating results for our Shipyard Division by $8.3 million. The changes in estimates were associated with the following: Fabrication & Services Division • Paddle Wheel Riverboat and Subsea Components Projects – Positive impact for 2020 of $1.5 million for our paddle wheel riverboat and subsea components projects, 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. At December 31, 2021, the projects were complete. • Jacket and Deck Project – Positive impact for 2020 of $1.2 million 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 December 31, 2021, the project was complete Shipyard Division • Forty-Vehicle Ferry Projects – Negative impact for 2020 of $7.2 million for our two forty-vehicle ferry projects ($6.2 million for the first vessel and $1.0 million for the second vessel), resulting from increased forecast costs and forecast liquidated damages, primarily associated with increased craft labor and material costs and extensions of schedule and associated duration related costs. The impacts were primarily due to lower than anticipated craft labor productivity and progress on the projects resulting from the impacts of COVID-19 and additional factors specific to each vessel as described further below: - Second Forty-Vehicle Ferry Project (see discussion of first vessel below) – The impacts for the second vessel were due to construction rework and disruptions caused by structural design deficiencies for the vessel, which resulted in deflection issues within the plating of the vessel. - First Forty-Vehicle Ferry Project – The impacts for the first vessel were due to construction rework and anticipated fabrication of a new hull, resulting from the determination that portions of the vessel structure and hull were outside of acceptable tolerance levels. During 2020, the hull was damaged by an overhead crane, which disengaged from its tracks, and landed on the hull that was under construction. As a result of this damage, coupled with prior rework on the vessel, and associated concerns regarding the acceptable tolerance levels of the hull, our customer issued a rejection letter indicating they would not accept a reconstructed hull, and requested the fabrication of a new hull. We determined that fabrication of a new hull was the most appropriate course of action due to, among other things, quality and cost uncertainties associated with repairing the hull. We also determined that the structural design deficiencies identified for the second vessel were applicable to the first vessel, which contributed to the rework and construction challenges experienced on the first vessel. As discussed further above under “Changes in Estimates for 2021,” • Seventy-Vehicle Ferry Project – Negative impact for 2020 of $1.1 million for our seventy-vehicle ferry project, resulting from increased forecast costs, primarily associated with increased craft labor and subcontracted services costs and extensions of schedule and associated duration related costs. The impacts were primarily due to lower than anticipated craft labor productivity and progress on the project resulting from the impacts of COVID-19 and our inability to achieve previously anticipated improvements in productivity. The impacts were also due to additional anticipated craft labor associated with more complex piping and other construction activities identified as we achieved further completion of production engineering. The project was in a loss position at December 31, 2020 and our reserve for estimated losses was $0.5 million. 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 2021, we recorded impairments 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 accrued for any future repair costs related to the partially damaged assets at December 31, 2021. We continue to work with our insurance providers and advisors to assess the full extent of damage to buildings and equipment and applicable insurance coverage amounts. During 2021, we incurred actual costs of $4.8 million associated with clean-up, expediting and restoration activities. We recorded charges of $3.2 million associated with such amounts attributable to deductibles and estimated unrecoverable amounts, and recorded insurance recoveries of $1.6 million for the remaining amounts as we believe such costs are covered under our insurance policies and we have determined recovery of such amounts is probable. During 2021, we received a $1.0 million advance payment from our insurance carriers associated with our insurance policies. The charges are included in other (income) expense, net on our Statement of Operations. The insurance receivable amounts, net of the advance payment, are included in prepaid expenses and other assets on our Balance Sheet at December 31, 2021. In addition to damage to our F&S Facility, the storm resulted in damage to our second forty-vehicle ferry project, 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 2021, we recorded charges of $0.6 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 may be subject to further deductibles associated with our insurance coverages that range from $0.5 million to $1.0 million. See Note 10 for further discussion of our MPSV dispute. Hurricane Laura – On August 27, 2020, Hurricane Laura made landfall near Lake Charles, Louisiana as a high-end Category 4 hurricane, with high winds and flooding causing significant damage throughout the region. At our Lake Charles Facility the storm damaged warehouses and bulkheads, resulting in charges of $0.8 million related to deductibles associated with our insurance coverages and our estimates of costs associated with uninsurable damage, primarily for bulkheads. |
SHIPYARD TRANSACTION AND DISCON
SHIPYARD TRANSACTION AND DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 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 (“Transaction Date”), we entered into a definitive agreement and sold our Shipyard Division operating assets and certain construction contracts (“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 $27.7 million of the Transaction Price during 2021 and the remaining $0.9 million (“Deferred Transaction Price”) will be received upon Bollinger’s collection of certain customer payments associated with the Divested Shipyard Contracts (defined below). The Deferred Transaction Price is anticipated to be received in the second quarter 2022, and has been reflected within prepaid expenses and other assets on our Balance Sheet at December 31, 2021. 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: • • • • We retained those employees of our Shipyard Division associated with the Active Retained Shipyard Contracts. In connection with the Shipyard Transaction, we recorded a total pre-tax loss of $25.3 million during 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 December 31, 2021, the net liabilities on our Balance Sheet associated with the Retained Shipyard Contracts and other retained Shipyard Division operations totaled $8.7 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 2021. We based our fair value estimate on the Transaction Price, inclusive of the Working Capital 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 Shipyard Division facilities, to be discontinued operations in 2021. Accordingly, such operating results for 2021 have been classified as discontinued operations on our Statement of Operations. We had no material assets and liabilities of discontinued operations at December 31, 2021. Our classification of these operations as discontinued requires retrospective application to financial information for prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for 2020, have been recast and classified as discontinued operations on our Balance Sheet and Statement of Operations, respectively. We are completing construction of the Active 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 operating 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 2021 and 2020, is as follows (in thousands): Years Ended December 31, 2021 2020 Revenue $ 41,637 $ 133,230 Cost of revenue 33,912 142,872 Gross profit (loss) (1) 7,725 (9,642 ) General and administrative expense 413 1,426 Impairments and (gain) loss on assets held for sale, net (2) 25,331 1,639 Other (income) expense, net (3) (647 ) 600 Operating loss (17,372 ) (13,307 ) Income tax (expense) benefit (4) — — Loss from discontinued operations, net of taxes $ (17,372 ) $ (13,307 ) (1) Gross profit for 2021 was positively impacted by changes in estimated margins on projects of $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). Gross loss for 2020 was negatively impacted by changes in estimated margins on projects of $8.3 million. 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. (2) Expense for 2021 includes impairments of $22.8 million and transaction and other costs of $2.6 million associated with the Shipyard Transaction (see discussion above). Expense for 2020 includes charges of $1.6 million associated with impairments of drydocks sold in connection with the Shipyard Transaction, impairments of lease assets associated with our Lake Charles Facility, and closure costs associated with our Lake Charles Facility and Jennings Facility. (3) Other income for 2021 includes a gain of $0.6 million, resulting from insurance recoveries associated with damage previously caused by Hurricane Laura to a drydock that was sold in connection with the Shipyard Transaction. Other expense for 2020 includes charges of $0.5 million associated with damage caused by Hurricane Laura to our drydocks sold in connection with the Shipyard Transaction and our ninth harbor tug project. (4) Income taxes attributable to discontinued operations were not material for each period 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 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 2020. See Note 12 for a summary of the reclassifications to our previously reported segment results and Note 10 for further discussion of our MPSV dispute. Assets and Liabilities – At December 31, 2021, we had no material assets or liabilities of discontinued operations. A summary of the carrying values of the major classes of assets and liabilities of discontinued operations at December 31, 2020, is as follows (in thousands): 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 December 31, 2020 Current liabilities of discontinued operations: Accounts payable $ 57,752 Contract liabilities 4,867 Accrued expenses and other liabilities 1,188 Total current liabilities of discontinued operations $ 63,807 Cash Flows – A summary of the cash flows of discontinued operations for 2021 and 2020, is as follows (in thousands) : Years Ended December 31, 2021 2020 Operating cash flows from discontinued operations $ (9,443 ) $ (19,673 ) Investing cash flows from discontinued operations $ 32,739 $ (8,954 ) |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination And Asset Acquisition [Abstract] | |
ACQUISITION | 4. ACQUISITION Acquisition Summary – On December 1, 2021 (“Acquisition Date”), we entered into a definitive agreement and acquired (“DSS Acquisition”) the services and industrial staffing businesses (“DSS Business”) of Dynamic Industries, Inc. (“Dynamic”) for $7.6 million (“Purchase Price”). We also hired substantially all of the employees of the DSS Business. In connection with the DSS Acquisition, during 2021 we incurred transaction costs of $0.5 million, which are included in other (income) expense, net on our Statement of Operations. Preliminary Purchase Price Allocation – The Purchase Price has been allocated to the major categories of assets and liabilities acquired based upon preliminary estimates of their fair values at the Acquisition Date, which were based, in part, upon outside appraisals for certain assets, including property, machinery and equipment and specifically-identifiable intangible assets. The excess of the Purchase Price over the estimated fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The factors contributing to the goodwill (which is all deductible for tax purposes) include the acquired established workforce, estimated future cost savings and revenue synergies associated with the DSS Business. The following table summarizes our preliminary purchase price allocation at the Acquisition Date: Tangible assets and liabilities: Land and buildings (1) $ 475 Machinery and equipment (2) 2,557 Right-of-use asset (3) 2,000 Accrued expenses and other liabilities (672 ) Net tangible assets and liabilities 4,360 Intangible assets - customer relationships (4) 996 Goodwill 2,217 Purchase Price (5) $ 7,573 (1) Land and buildings – Represents an acquired operating facility located in Ingleside, Texas (“Ingleside Facility”). The fair value of the facility was estimated based on a third-party appraisal. (2) Machinery and equipment – Represents acquired machinery, equipment and vehicles. The fair values of the assets were estimated based on third-party appraisals. (3) Right-of-use asset – Represents a fabrication and operating facility located in Harvey, Louisiana (“Harvey Facility”) that is subject to a lease arrangement with Dynamic that expires on June 30, 2022. The Harvey Facility is also subject to a separate purchase option that enables us to buy the facility from Dynamic prior to December 2, 2022, for a nominal amount (“Harvey Option”). We believe it is probable we will exercise the Harvey Option, and accordingly, have concluded that the arrangement represents a finance lease under the guidance of ASC 842, “Leases ”, due to the Harvey Option representing a bargain purchase option. We have reflected the estimated fair value of the Harvey Facility plus future lease payment obligations as a right-of-use asset in our preliminary purchase price allocation, with the estimated fair value based on a combination of a third-party appraisal, third-party indications of interest for the facility, and indications of value communicated by and between us and Dynamic during the due diligence process. The corresponding lease liability is not material. (4) Customer relationships – Represents the estimated fair value of existing underlying customer relationships with estimated lives of 7 years. The fair value was estimated based on a multi-period excess earnings method which incorporated Level 3 inputs. The significant assumptions used in estimating fair value included revenue and income projections for the DSS Business and the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Amortization expense for our intangible assets was not material for 2021, and at December 31, 2021, our intangible asset balance totaled $1.0 million. Our amortization expense is estimated to be $0.1 million to $0.2 million for each of 2022, 2023, 2024, 2025 and 2026, and $0.3 million thereafter. (5) Purchase Price – Represents a base cash purchase price of $8.0 million, less $0.4 million attributable to assumed employee vacation obligations. The purchase price allocation and related amortization periods are based on preliminary information and are subject to change when additional information concerning final asset and liability valuations is obtained. We have not completed our final assessment of the fair value of the right-of-use asset, intangible assets, property, and machinery and equipment. Our final purchase price allocation may result in adjustments to certain assets and liabilities, including the residual amount allocated to goodwill. Supplemental Pro Forma Financial Information – The following unaudited pro forma condensed combined financial information (“Pro Forma Information”) gives effect to the DSS Acquisition, accounted for as a business combination using the purchase method of accounting. The Pro Forma Information reflects the DSS Acquisition and related events as if they occurred on January 1, 2020, and gives effect to pro forma events that are directly attributable to the DSS Acquisition, factually supportable and expected to have a continuing impact on the combined results of the Company and the DSS Business following the DSS Acquisition. The Pro Forma Information includes adjustments to: (1) remove acquisition costs of $0.5 million for the 2021 period and include such amounts in the 2020 period, (2) include incremental intangibles amortization and depreciation expense of $0.3 million for each of 2021 and 2020, associated with fair value adjustments related to the DSS Acquisition, and (3) include the pro forma results of the DSS Business from January 1, 2020 through the Acquisition Date. Revenue and net income attributable to the DSS Business prior to the Acquisition Date was $44.9 million and $2.4 million, respectively, for 2021, and $47.1 million and $1.9 million, respectively, for 2020. Revenue and net loss attributable to the DSS Business subsequent to the Acquisition Date was $3.2 million and $0.5 million (including acquisition costs of $0.5 million), respectively, for 2021 Years Ended December 31, 2021 2020 Pro forma revenue from continuing operations $ 138,330 $ 164,875 Pro forma net loss from continuing operations (1,947 ) (12,735 ) Per share data: Basic and diluted loss from continuing operations $ (0.13 ) $ (0.83 ) |
IMPAIRMENTS AND (GAIN) LOSS ON
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2021 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE | 5. IMPAIRMENTS AND (GAIN) LOSS ON ASSETS HELD FOR SALE Impairments and (gain) loss on assets held for sale – Impairments and (gain) loss on assets held for sale (“AHFS”) generally represents asset impairments, gains or losses on the sale of assets held for sale and certain nonrecurring items. During 2020, we recorded impairments and nonrecurring costs of $2.5 million within our Fabrication & Services Division associated with the following: • Impairments and loss on sale of AHFS – Impairments of $1.4 million associated with the partial impairment of assets that were held for sale, which consisted of three 660-ton crawler cranes, and a loss of $0.2 million associated with the sale of assets held for sale as described further below. Our estimates of fair value for the asset impairments were based on broker opinions of value, which were lower than our previous estimates due to changes in market conditions (including the impacts of COVID-19), the limited interest received in the cranes during the period, the specific use nature and size of the cranes, and our expectation of a shorter marketing period due to concerns regarding future deterioration of the cranes. • Impairments of other assets – Impairments of $0.9 million associated with the relocation and consolidation of certain assets between our Shipyard Facility and F&S Facility, and abandonment of certain assets within our F&S Facility, to improve operational efficiency. We determined our impairments based on scrap value estimates of fair value. Assets held for sale – At December 31, 2021, our assets held for sale consisted of one 660-ton crawler crane within our Fabrication & Services Division. December 31, 2021 2020 Machinery and equipment $ 4,587 $ 11,877 Accumulated depreciation (2,787 ) (5,677 ) Total assets held for sale $ 1,800 $ 6,200 During 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. No gain or loss was recognized on the assets sold as the net proceeds received approximated the carrying values of the assets. During 2020, we received proceeds of $1.7 million from the sale of other assets held for sale by our Fabrication & Services Division, resulting in a loss of $0.2 million . |
PROPERTY, PLANT AND EQUIPMENT A
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT AND LEASED FACILITIES AND EQUIPMENT Property, plant and equipment Property, plant and equipment consisted of the following at December 31, 2021 and 2020 (in thousands): Estimated December 31, Useful Life 2021 2020 (in Years) Land — $ 4,416 $ 4,216 Buildings 10 to 25 25,742 25,044 Machinery and equipment 3 to 15 65,625 62,498 Furniture and fixtures 3 to 5 1,276 1,276 Transportation equipment 2 to 5 2,363 2,104 Improvements 15 23,404 23,652 Construction in progress — 705 3,092 Right-of-use asset (1) 15 2,000 — Total property, plant and equipment 125,531 121,882 Accumulated depreciation (92,665 ) (90,704 ) Property, plant and equipment, net $ 32,866 $ 31,178 (1) Right-of-use asset – Represents the Harvey Facility. See Note 4 for further discussion of the Harvey Facility and related Harvey Option. Depreciation expense for continuing operations for 2021 and 2020 was $4.1 million and $5.0 million, respectively. The decrease in depreciation expense for 2021 compared to 2020 was due to assets becoming fully depreciated. Leased Facilities and Equipment At December 31, 2021, our significant leases subject to long-term agreements were as follows: • Corporate office in Houston, Texas consisting of approximately 17,000 square feet of office space. The lease expires in May 2025. • Jennings Facility located near Jennings, Louisiana, consisting of approximately 180-acres on the west bank of the Mermentau River approximately 25 miles north of the U.S. Intracoastal Waterway. The lease expires in January 2025 with two ten-year • Lake Charles Facility located near Lake Charles, Louisiana, consisting of approximately 10-acres on the Calcasieu River approximately 17 miles from the GOM. The sublease expires in July 2023 with three, five-year At December 31, 2021, our lease asset, current lease liability and long-term lease liability were $0.9 million, $0.6 million and $1.4 million, respectively. As discussed above, we do not intend to exercise the renewal options for our Jennings Facility and Lake Charles Facility, and accordingly, our lease obligations for these facilities exclude the lease renewal options. Future minimum payments under leases having initial terms of more than twelve months are as follows (in thousands): Minimum Payments 2022 $ 737 2023 653 2024 564 2025 219 2026 - Total lease payments 2,173 Less: interest (218 ) Present value of lease liabilities $ 1,955 Total lease expense for our leased facilities and equipment, which includes lease asset amortization expense and expense for leases with original terms that are twelve months or less, for 2021 and 2020, was $1.0 million and $0.9 million, respectively. Cash paid for leases for 2021 and 2020 was $1.5 million and $1.4 million, respectively. The discount rate used to determine the present value of our lease liabilities was based on the interest rate on our LC Facility adjusted for terms similar to that of our leased properties. At December 31, 2021, our weighted-average remaining lease term was approximately 3.1 years and the weighted-average discount rate used to derive our lease liability was 6.7%. |
CREDIT FACILITIES
CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 7. CREDIT FACILITIES 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 December 31, 2021, we had $1.7 million of outstanding letters of credit 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. Following the approval of our application for forgiveness by the Small Business Administration (“SBA”), 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 during 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 of 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 December 31, 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 and $55.8 million relates to our Active Retained Shipyard Contracts. See Note 10 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 (“Mortgage Agreement”) and a restrictive covenant arrangement (“Restrictive Covenant Agreement”) with such Surety to secure our 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 share 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. See Note 3 for further discussion of the Shipyard Transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8. INCOME TAXES Income Tax (Expense) Benefit A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit from continuing operations for 2021 and 2020, is as follows (in thousands): Years Ended December 31, 2021 2020 U.S. statutory rate 21.0 % 21.0 % Increase (decrease) resulting from: Permanent differences (3.1 )% (0.1 )% State income taxes 0.5 % 0.4 % Other (0.1 )% (0.2 )% Discrete items Vesting of common stock (1.4 )% (1.4 )% Change in valuation allowance (44.3 )% (36.2 )% PPP Loan forgiveness 39.5 % — Return to provision and other (11.6 )% 16.9 % Income tax (expense) benefit 0.5 % 0.4 % Significant components of our income tax (expense) benefit from continuing operations for 2021 and 2020, were as follows (in thousands): Years Ended December 31, 2021 2020 Current Federal $ — $ — State — (20 ) Total current — (20 ) Deferred Federal 2,185 2,722 State (20 ) 2,455 Valuation allowance (2,141 ) (5,105 ) Total deferred 24 72 Income tax (expense) benefit $ 24 $ 52 Deferred Taxes Significant components of our deferred tax assets and liabilities at December 31, 2021 and 2020, were as follows (in thousands): December 31, 2021 2020 Deferred tax assets Leases $ 233 $ 319 Employee benefits 1,208 1,471 Accrued losses on uncompleted contracts 2,572 3,015 Stock based compensation expense 247 225 Federal net operating losses 21,724 19,345 State net operating losses 3,299 3,620 R&D and other tax credits 938 806 Other 545 398 Total deferred tax assets 30,766 29,199 Deferred tax liabilities Property, plant and equipment and AHFS (1,285 ) (2,632 ) Prepaid insurance (231 ) (511 ) Total deferred tax liabilities (1,516 ) (3,143 ) Net deferred tax assets 29,250 26,056 Valuation allowance (29,331 ) (26,168 ) Net deferred taxes (1) $ (81 ) $ (112 ) (1) Amounts are included in other noncurrent liabilities on our Balance Sheet. At December 31, 2021 and 2020, we had total DTAs of $30.8 million and $29.2 million, respectively (including U.S. federal net operating losses (“NOL(s)”) DTAs of $21.7 million and $19.3 million, respectively). On a periodic and ongoing basis, we evaluate our DTAs (including our NOL DTAs) and assess the appropriateness of our valuation allowance(s) (“VA(s)”). In assessing the need for a VA, we consider both positive and negative evidence related to the likelihood of realizing our DTAs. If, based upon the available evidence, our assessment indicates that it is more likely than not that some or all of the DTAs will not be realized, we record a VA. Our assessments include, among other things, the amount of taxable temporary differences that will result in future taxable income, the value and quality of our backlog, evaluations of existing and anticipated market conditions, analysis of recent and historical operating results (including cumulative losses over multiple periods) and projections of future results and strategic plans, as well as asset expiration dates. As a result of our assessment and due to cumulative losses for the three years ended December 31, 2021, we believe the negative evidence outweighs the positive evidence with respect to our ability to realize our U.S. federal NOL DTAs, and accordingly, at December 31, 2021 and 2020, we had VAs of $29.3 million and $26.2 million, respectively, offsetting our total DTAs. At December 31, 2021, we had gross U.S. federal NOL carryforwards (excluding VAs) of $103.4 million, of which $42.3 million will expire in 2037 with the remaining U.S. federal NOL carryforwards eligible to be carried forward indefinitely, subject to an 80% limitation on taxable income in each year. We had gross state NOL carryforwards (excluding VAs) of $45.1 million, which will expire from 2035 through 2041. Uncertain Tax Positions Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. At December 31, 2021 and 2020, we had no material reserves for uncertain tax positions. Tax returns subject to examination by the U.S. Internal Revenue Service are open for years after 2015. |
RETIREMENT AND LONG-TERM INCENT
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2021 | |
Share Based Payments And Retirement Disclosure [Abstract] | |
RETIREMENT AND LONG-TERM INCENTIVE PLANS | 9. RETIREMENT AND LONG-TERM INCENTIVE PLANS Defined Contribution Plan We sponsor a defined contribution plan for eligible employees that is qualified under Section 401(k) of the Internal Revenue Code, which includes voluntary employee pre-tax contributions and Company-matching contributions, with potential additional discretionary contributions determined by our Board of Directors. For 2021 and 2020, we contributed $0.4 million and $0.5 million, respectively to the plan. Long-Term Incentive Plans Under our long-term incentive plans (“Incentive Plans”), the Compensation Committee of our Board of Directors may grant cash-based and equity-based awards to eligible employees and non-employee directors, including restricted stock unit (“RSU”) awards (both time-based and performance-based), stock option awards and cash-based performance awards. The Compensation Committee determines the value of each award, as well as the terms, conditions, performance measures, and other provisions of the award. Under our Incentive Plans, the maximum number of shares that may be granted to any one officer or employee during any single calendar year is 250,000. At December 31, 2021, we had 1,096,994 authorized shares available for future issuance under our Incentive Plans. RSU Awards – An RSU represents the right to receive one share of our common stock upon vesting, or the equivalent cash value on the vesting date if the award is cash-settled. RSUs are subject to transfer restrictions, forfeiture provisions and other terms and conditions of the Incentive Plans and applicable award agreements. Forfeitures are recognized as they occur. • Time-based RSU awards – Outstanding time-based RSU awards to our employees have a two or three-year • Performance-based RSU awards – Outstanding performance-based RSU awards to our employees have a three-year graded vesting period with the number of units ultimately awarded based on the achievement of a financial performance target for 2021 . The total initial fair value for these awards was determined based upon the closing price of our stock on the date of grant applied to the total number of units anticipated to be awarded based on the financial performance target achieved . This fair value is expensed over the applicable vesting period using the graded vesting method . As a result of the financial performance target achieved for 2021, one award recipient’s performance-based RSU awards exceeded the annual limit and, as a result, are subject to cash-settlement (“Cash-Settled RSUs”). Accordingly, we account for the awards as liability-classified awards, with changes in the fair value of the awards reflected within general and administrative expense on our Statement of Operations over the vesting period. Compensation expense for our Cash-Settled RSU awards was $ 0.1 million for 2021 and the total fair value of Cash-Settled RSU awards granted in 2021 was $ 0.2 million (with a weighted average grant-date fair value per share of $ 4.77 ) . A summary of activity for our RSU awards (excluding Cash-Settled RSUs) for 2021 and 2020 is as follows: 2021 2020 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share RSUs, beginning of period 613,044 $ 4.59 265,158 $ 8.03 Granted 547,250 4.71 470,004 3.80 Vested (285,416 ) 5.19 (97,194 ) 8.33 Forfeited (32,320 ) 4.40 (24,924 ) 12.24 RSUs, end of period 842,558 4.47 613,044 4.59 Compensation expense for our RSU awards was $1.7 million and $1.0 million for 2021 and 2020, respectively, and is reflected withing general and administrative expense and cost of revenue, as applicable, in our Statement of Operations. At December 31, 2021, we had $2.7 million of unrecognized compensation expense related to our RSU awards. This cost is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of RSU awards granted during 2021 was $2.6 million and the total fair value of RSU awards that vested during 2021 was $1.2 million. The income tax benefit (expense) associated with our share-based compensation arrangements was not significant for 2021 or 2020. Share and expense amounts associated with our stock-based compensation relate only to our continuing operations, and accordingly, may be different from the amounts reflected on our Statement of Cash Flows and Statement of Shareholders’ Equity. See Note 3 for further discussion of our discontinued operations. Stock Option Awards – At December 31, 2021, we had no outstanding stock option awards and no such awards were made during 2021 or 2020. Cash-Based Performance Awards – Cash-based performance awards represent awards payable in cash based on the achievement of annual financial performance targets. The cash payment occurs in the period immediately following the completion of the performance period. During 2019, cash-based performance awards were granted with a three-year |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Routine Legal Proceedings We are subject to various routine legal proceedings in the normal conduct of our business, primarily involving commercial disputes and claims, workers’ compensation claims, and claims for personal injury under general maritime laws of the U.S. and the Jones Act. While the outcome of these legal proceedings cannot be predicted with certainty, we believe that the outcome of any such proceedings, even if determined adversely, would not have a material adverse effect on our financial position, results of operations or 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 the 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 scheduled to begin on March 6, 2023. Other trial related deadlines have been 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 both December 31, 2021 and 2020, other noncurrent assets on our Balance Sheet included a net contract asset of $ 12.5 million Insurance We maintain insurance coverage for various aspects of our business and operations. However, 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 claims. We expect liabilities in excess of any deductibles and self-insured retentions to be covered by insurance; however, because we do not have an offset right, we have recorded a liability for estimated amounts in excess of our deductibles, and have recorded a corresponding asset related to estimated insurance recoveries, on our Balance Sheet. To the extent we are self-insured, reserves are recorded based upon our estimates, with input from legal and insurance advisors. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change. See Note 2 for discussion of insurance deductibles incurred during 2021 and 2020 associated with damage caused by Hurricanes Ida and Laura. 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 7 for further discussion of our LC Facility and surety bonds. Environmental Matters Our operations are subject to extensive and changing U.S. federal, state and local laws and regulations, as well as the laws of other countries, that establish health and environmental quality standards. These standards, among others, relate to air and water pollutants and the management and disposal of hazardous substances and wastes. We are exposed to potential liability for personal injury or property damage caused by any release, spill, exposure or other accident involving such pollutants, substances or wastes. In connection with the historical operation of our facilities, including those associated with acquired operations, substances which currently are or might be considered hazardous were used or disposed of at some sites that will or may require us to make expenditures for remediation. We believe we are in compliance, in all material respects, with environmental laws and regulations and maintain insurance coverage to mitigate exposure to environmental liabilities. We do not believe any environmental matters will have a material adverse effect on our financial condition, results of operations or cash flow. Leases We maintain operating leases for our corporate office and certain operating facilities and equipment. See Note 6 for further discussion of our leases. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
INCOME (LOSS) PER SHARE | 11. INCOME (LOSS) PER SHARE The following table presents the computation of basic and diluted loss per share for 2021 and 2020 (in thousands, except per share data): Years Ended December 31, 2021 2020 Loss from continuing operations $ (4,796 ) $ (14,119 ) Loss from discontinued operations, net of taxes (17,372 ) (13,307 ) Net loss $ (22,168 ) $ (27,426 ) Basic and diluted loss from continuing operations $ (0.31 ) $ (0.92 ) Basic and diluted loss from discontinued operations (1.12 ) (0.87 ) Basic and diluted loss per common share $ (1.43 ) $ (1.79 ) Weighted average shares 15,510 15,308 |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | 12. OPERATING SEGMENTS We currently operate and manage our business thorough two operating divisions (“Fabrication & Services” and “Shipyard”) and one non-operating division (“Corporate”), which represented 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 maintenance, repair, construction, 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; provides project management and commissioning services; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. On December 1, 2021, we completed the DSS Acquisition, which expanded our F&S Division’s customer base and enhanced our services offerings to include scaffolding, coatings, industrial staffing and other specialty services. Our F&S Division fabrication activities are performed at our F&S Facility and our services activities are managed from our F&S Facilities and generally performed at customer onshore locations and offshore platforms. See Note 4 for further discussion of the DSS Acquisition. Shipyard Division – Our Shipyard Division previously fabricated newbuild marine vessels and provided marine repair and maintenance services. The activities were performed at our Shipyard Facility. However, on April 19, 2021, we completed the Shipyard Transaction, which included the Divested Shipyard Contracts and our Shipyard Facility. W e determined the assets, liabilities and operations associated with the Shipyard Transaction and certain previously closed facilities to be discontinued operations. 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 operating segment and are classified as continuing operations on our Balance Sheet and Statement of Operations. The Active Retained Shipyard Contracts are being completed at our F&S Facility and we intend to wind down our Shipyard Division operations by the third quarter 2022. 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 discussed in Note 1, we have made adjustments to our previously issued 2020 Financial Statements to correct prior period immaterial errors. In connection therewith, we have made adjustments to our previously reported segment results for 2020. In addition, 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 2020, and legal costs associated with our MPSV dispute that were previously reflected within our Corporate Division have been reclassified to our Shipyard Division for 2020. See Note 1 for further discussion of the error corrections, Note 3 for further discussion of the Shipyard Transaction and our discontinued operations, and Note 10 for further discussion of our MPSV dispute. A summary of the adjustments to correct the immaterial errors and reclassifications to our previously reported segment results for 2020, is as follows (in thousands): Year Ended December 31, 2020 F&S Shipyard Corporate Total Gross profit (loss), as reported (1) $ 1,523 $ (19,274 ) $ — $ (17,751 ) Corrections 107 135 — 242 Gross profit (loss), as adjusted prior to recast 1,630 (19,139 ) — (17,509 ) Recast for discontinued operations (2) — 9,642 — 9,642 Changes in expense allocations (76 ) 284 (208 ) — Gross profit (loss) from continuing operations, as adjusted $ 1,554 $ (9,213 ) $ (208 ) $ (7,867 ) Operating income (loss), as reported (1) $ 5,893 $ (24,343 ) $ (8,709 ) $ (27,159 ) Corrections 111 140 (302 ) (51 ) Operating income (loss), as adjusted prior to recast 6,004 (24,203 ) (9,011 ) (27,210 ) Recast for discontinued operations (2) — 13,307 — 13,307 Changes in expense allocations (350 ) 834 (484 ) — Reclassification of legal expenses — (1,039 ) 1,039 — Operating income (loss) from continuing operations, as adjusted $ 5,654 $ (11,101 ) $ (8,456 ) $ (13,903 ) (1) Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation. (2) Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis. Segment Results – We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit or loss and operating income or loss. Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of and for the two-year period ended December 31, 2021, is as follows (in thousands): Year Ended December 31, 2021 F&S Shipyard Corporate Total Revenue (eliminations) $ 81,083 $ 12,878 $ (509 ) $ 93,452 Gross profit (loss) (1) 6,189 (4,242 ) (283 ) 1,664 Operating income (loss) (1) 261 (5,769 ) (7,976 ) (13,484 ) Depreciation and amortization expense 4,001 — 319 4,320 Capital expenditures 1,141 — — 1,141 Total assets (3) 59,023 16,222 60,028 135,273 Year Ended December 31, 2020 F&S Shipyard Corporate Total Revenue (eliminations) $ 99,485 $ 20,468 $ (2,224 ) $ 117,729 Gross profit (loss) (2) 1,554 (9,213 ) (208 ) (7,867 ) Operating income (loss) (2) 5,654 (11,101 ) (8,456 ) (13,903 ) Depreciation and amortization expense 4,928 — 302 5,230 Capital expenditures 2,067 — 191 2,258 Total assets (3) 54,174 17,499 59,780 131,453 (1) Gross profit (loss) and operating income (loss) for 2021 includes project improvements of $3.3 million for our F&S Division and project charges of $3.8 million for our Shipyard Division. Operating income (loss) also includes charges of $3.2 million and $0.6 million associated with damage caused by Hurricane Ida for our F&S Division and Shipyard Division, respectively, acquisition costs of $0.5 million associated with the DSS Acquisition for our F&S Division, and the under-recovery of overhead costs for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 4 for further discussion of the DSS Acquisition. (2) Gross profit (loss) and operating income (loss) for 2020 includes project improvements of $2.7 million for our F&S Division and project charges of $8.3 million for our Shipyard Division. Operating income (loss) also includes impairment charges and losses on the sale of assets held for sale of $2.5 million for our F&S Division, charges of $0.8 million associated with damage caused by Hurricane Laura for our Shipyard Division, and a gain of $10.0 million associated with the settlement of a contract dispute for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 5 for further discussion of our impairments. ( 3 ) Cash and short-term investments are reported within our Corporate Division. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 13. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) As discussed in Note 1, we have made adjustments to our previously issued 2020 Financial Statements to correct prior period immaterial errors. In connection therewith, we have made adjustments to our previously issued 2021 quarterly Financial Statements and previously reported segment results to correct the immaterial misstatements for such periods. A summary of the adjustments to our previously issued 2021 quarterly Financial Statements and previously reported segment results to correct the immaterial errors is as follows (in thousands): Balance Sheet As Previously Reported (1) Corrections As Adjusted As of March 31, 2021 Prepaid expenses and other assets $ 2,817 $ 5,395 $ 8,212 Total current assets 153,271 5,395 158,666 Total assets 213,426 5,395 218,821 Accrued expenses and other liabilities 9,993 7,177 17,170 Total current liabilities 100,777 7,177 107,954 Total liabilities 105,492 7,177 112,669 Accumulated deficit (7,574 ) (1,782 ) (9,356 ) Total shareholders' equity 107,934 (1,782 ) 106,152 Total liabilities and shareholders’ equity 213,426 5,395 218,821 (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. As Previously Reported Corrections As Adjusted As of June 30, 2021 Prepaid expenses and other assets $ 5,962 $ 5,395 $ 11,357 Total current assets 100,115 5,395 105,510 Total assets 143,679 5,395 149,074 Accrued expenses and other liabilities 8,197 7,055 15,252 Total current liabilities 27,651 7,055 34,706 Total liabilities 38,340 7,055 45,395 Accumulated deficit (10,525 ) (1,660 ) (12,185 ) Total shareholders' equity 105,339 (1,660 ) 103,679 Total liabilities and shareholders’ equity 143,679 5,395 149,074 As of September 30, 2021 Prepaid expenses and other assets $ 6,361 $ 5,395 $ 11,756 Total current assets 93,712 5,395 99,107 Total assets 135,876 5,395 141,271 Accrued expenses and other liabilities 8,372 6,979 15,351 Total current liabilities 23,132 6,979 30,111 Total liabilities 24,722 6,979 31,701 Accumulated deficit (5,213 ) (1,584 ) (6,797 ) Total shareholders' equity 111,154 (1,584 ) 109,570 Total liabilities and shareholders’ equity 135,876 5,395 141,271 Statement of Operations As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Three months ended March 31, 2021 Cost of revenue $ 51,370 $ (104 ) $ 51,266 $ (27,506 ) $ 23,760 Gross profit 7,581 104 7,685 (7,660 ) 25 General and administrative expense 3,127 — 3,127 (340 ) 2,787 Operating loss (18,458 ) 104 (18,354 ) 16,121 (2,233 ) Loss before income taxes (18,652 ) 104 (18,548 ) 16,121 (2,427 ) Net loss (18,641 ) 104 (18,537 ) — (18,537 ) Basic and diluted loss per common share (1.21 ) 0.01 (1.20 ) — (1.20 ) (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. (2) Reflects adjustments to recast previously issued 2021 quarterly Financial Statement amounts on a discontinued operations basis. As Previously Reported Corrections As Adjusted Three months ended June 30, 2021 Cost of revenue $ 23,164 $ (117 ) $ 23,047 Gross profit 1,104 117 1,221 General and administrative expense 3,093 (5 ) 3,088 Operating loss (1,609 ) 122 (1,487 ) Loss before income taxes (1,704 ) 122 (1,582 ) Loss from continuing operations (1,700 ) 122 (1,578 ) Net loss (2,951 ) 122 (2,829 ) Basic and diluted loss from continuing operations (0.11 ) 0.01 (0.10 ) Basic and diluted loss per common share (0.19 ) 0.01 (0.18 ) Three months ended September 30, 2021 Cost of revenue $ 19,785 $ (63 ) $ 19,722 Gross loss (198 ) 63 (135 ) General and administrative expense 3,224 (13 ) 3,211 Operating loss (3,682 ) 76 (3,606 ) Income before income taxes 5,321 76 5,397 Income from continuing operations 5,312 76 5,388 Net Income 5,312 76 5,388 Basic and diluted income from continuing operations 0.34 0.01 0.35 Basic and diluted income per common share 0.34 0.01 0.35 Six months ended June 30, 2021 Cost of revenue $ 47,028 $ (221 ) $ 46,807 Gross profit 1,025 221 1,246 General and administrative expense 5,880 (5 ) 5,875 Operating loss (3,946 ) 226 (3,720 ) Loss before income taxes (4,235 ) 226 (4,009 ) Loss from continuing operations (4,220 ) 226 (3,994 ) Net loss (21,592 ) 226 (21,366 ) Basic and diluted loss from continuing operations (0.27 ) 0.01 (0.26 ) Basic and diluted loss per common share (1.40 ) 0.02 (1.38 ) Nine months ended September 30, 2021 Cost of revenue $ 66,813 $ (284 ) $ 66,529 Gross profit 827 284 1,111 General and administrative expense 9,104 (18 ) 9,086 Operating loss (7,628 ) 302 (7,326 ) Income before income taxes 1,086 302 1,388 Income from continuing operations 1,092 302 1,394 Net loss (16,280 ) 302 (15,978 ) Basic and diluted income from continuing operations 0.07 0.02 0.09 Basic and diluted loss per common share (1.05 ) 0.02 (1.03 ) Statement of Cash Flows As Previously Reported Corrections As Adjusted Three months ended March 31, 2021 Net loss $ (18,641 ) $ 104 $ (18,537 ) Accrued expenses and other current liabilities 2,303 (104 ) 2,199 Six months ended June 30, 2021 Net loss $ (21,592 ) $ 226 $ (21,366 ) Accrued expenses and other current liabilities 1,330 (226 ) 1,104 Nine months ended September 30, 2021 Net loss $ (16,280 ) $ 302 $ (15,978 ) Accrued expenses and other current liabilities 1,206 (302 ) 904 Segment Information Three Months Ended March 31, 2021 F&S Shipyard Corporate Total Gross profit, as reported (1) $ 1,042 $ 6,539 $ — $ 7,581 Corrections 58 46 — 104 Gross profit (loss), as adjusted prior to recast 1,100 6,585 — 7,685 Recast for discontinued operations ( 2) — (7,660 ) — (7,660 ) Gross profit from continuing operations, as adjusted $ 1,100 $ (1,075 ) $ — $ 25 Operating income (loss), as reported (1) $ 981 $ (17,450 ) $ (1,989 ) $ (18,458 ) Corrections 58 46 — 104 Operating income (loss), as adjusted prior to recast 1,039 (17,404 ) (1,989 ) (18,354 ) Recast for discontinued operations ( 2) — 16,121 — 16,121 Operating income (loss) from continuing operations, as adjusted $ 1,039 $ (1,283 ) $ (1,989 ) $ (2,233 ) (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. (2) Reflects adjustments to recast previously issued 2021 quarterly Financial Statement amounts on a discontinued operations basis. Three Months Ended June 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 2,241 $ (1,059 ) $ (78 ) $ 1,104 Corrections 63 54 — 117 Gross profit (loss) from continuing operations, as adjusted $ 2,304 $ (1,005 ) $ (78 ) $ 1,221 Operating income (loss), as reported $ 1,656 $ (1,119 ) $ (2,146 ) $ (1,609 ) Corrections 63 55 4 122 Operating income (loss) from continuing operations, as adjusted $ 1,719 $ (1,064 ) $ (2,142 ) $ (1,487 ) Three Months Ended September 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 1,112 $ (1,252 ) $ (58 ) $ (198 ) Corrections 48 15 — 63 Gross profit (loss) from continuing operations, as adjusted $ 1,160 $ (1,237 ) $ (58 ) $ (135 ) Operating income (loss), as reported $ 379 $ (1,896 ) $ (2,165 ) $ (3,682 ) Corrections 48 15 13 76 Operating income (loss) from continuing operations, as adjusted $ 427 $ (1,881 ) $ (2,152 ) $ (3,606 ) Six Months Ended June 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 3,228 $ (2,037 ) $ (166 ) $ 1,025 Corrections 121 100 — 221 Gross profit (loss) from continuing operations, as adjusted $ 3,349 $ (1,937 ) $ (166 ) $ 1,246 Operating income (loss), as reported $ 2,517 $ (2,370 ) $ (4,093 ) $ (3,946 ) Corrections 121 101 4 226 Operating income (loss) from continuing operations, as adjusted $ 2,638 $ (2,269 ) $ (4,089 ) $ (3,720 ) Nine Months Ended September 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 4,340 $ (3,289 ) $ (224 ) $ 827 Corrections 169 115 — 284 Gross profit (loss) from continuing operations, as adjusted $ 4,509 $ (3,174 ) $ (224 ) $ 1,111 Operating income (loss), as reported $ 2,896 $ (4,266 ) $ (6,258 ) $ (7,628 ) Corrections 169 116 17 302 Operating income (loss) from continuing operations, as adjusted $ 3,065 $ (4,150 ) $ (6,241 ) $ (7,326 ) |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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 a provider of special services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, civil construction and staffing services to the industrial and energy sectors. Our customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies. We currently operate and manage our business through 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 primary 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 below and Note 3 for further discussion of the Shipyard Transaction. On December 1, 2021, we acquired (“DSS Acquisition”) the services and industrial staffing businesses (“DSS Business”) of Dynamic Industries, Inc. (“Dynamic”). The operating results of the DSS Business for the one-month period ended December 31, 2021, are included within our Fabrication & Services Division. See Note 4 for further discussion of the DSS Acquisition. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements (“Financial Statements”) reflect all wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The Financial Statements have been prepared in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and accounting principles generally accepted in the U.S. (“GAAP”). Certain amounts for 2020, and balances at December 31, 2020, have been reclassified within our Consolidated Balance Sheets (“Balance Sheet”), Consolidated Statements of Operations (“Statement of Operations”), and Consolidated Statements of Cash Flows (“Statement of Cash Flows”) to conform to our presentation of such amounts for 2021, and balances at December 31, 2021 . 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 2021. Accordingly, such operating results for 2021 have been classified as discontinued operations on our Statement of Operations. We had no material assets and liabilities of discontinued operations at December 31, 2021. Our classification of these operations as discontinued requires retrospective application to financial information for prior periods presented. Therefore, such assets and liabilities at December 31, 2020, and operating results for 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 Statement of Cash Flows or our Consolidated Statements of Changes in Shareholders’ Equity (“Statement of Shareholders’ Equity”). 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. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements During 2021, we determined that our accrued liability for employee earned vacation and the associated expense related to prior periods was understated, resulting in immaterial errors in our previously issued financial statements. As a result, we have made certain corrections to adjust the liability and associated expense. Our vacation policy generally provides that no vacation may be taken prior to working for a defined service period, with such service period end date ultimately being reset to the first day of each calendar year after the defined service period. Accordingly, such employees generally “earn” their allotted vacation in the calendar year prior to such vacation being made available to them, beginning on the first day of the subsequent calendar year. Such vacation is then available to the employee. Any unused vacation not taken during the year is forfeited if the employee remains with the Company and is paid if the employee is terminated or otherwise leaves the Company during the year. The understatement of our vacation liability is the result of not accruing vacation expense in the calendar year in which the vacation was earned. Instead, expense was historically recorded during the calendar year in which the vacation was taken. In addition, in our previously issued Financial Statements we presented our estimated insurance recoveries for workers’ compensation liabilities in excess of any deductibles and self-insured retentions on a net basis on our Balance Sheet. However, because we do not have an offset right, such amounts should be presented on a gross basis on our Balance Sheet, with a liability for the workers’ compensation obligation and an asset for the estimated insurance recoveries. In evaluating whether the previously issued financial statements were materially misstated for periods prior to December 31, 2021, we applied the guidance of Accounting Standards Codification (“ASC”) 250, “Accounting Changes and Error Corrections “Assessing Materiality” “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” The cumulative effect of adjustments required to correct the misstatements in the Financial Statements for years prior to 2020 totaled $1.8 million and is reflected as a reduction to retained earnings at January 1, 2020 on our Statement of Shareholders’ Equity. The adjustments required to reflect the corrections attributable to 2020 are reflected on our Balance Sheet at December 31, 2020, and in our Statement of Operations and Statement of Cash Flows for 2020. A summary of the adjustments to previously issued 2020 Financial Statements to correct the error in accounting for employee earned vacation, as well as certain other known immaterial errors, is as follows (in thousands): Balance Sheet as of December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Prepaid expenses and other assets (3) $ 2,815 $ 5,395 $ 8,210 $ (270 ) $ 7,940 Total current assets (3) 147,362 5,395 152,757 — 152,757 Total assets (3) 231,343 5,395 236,738 — 236,738 Accrued expenses and other liabilities (3) 7,670 7,281 14,951 (1,188 ) 13,763 Current liabilities of discontinued operations (4) — — — 63,807 63,807 Total current liabilities (3) 98,412 7,281 105,693 — 105,693 Total liabilities (3) 104,981 7,281 112,262 — 112,262 Retained earnings 11,067 (1,886 ) 9,181 — 9,181 Total shareholders' equity 126,362 (1,886 ) 124,476 — 124,476 Total liabilities and shareholders’ equity (3) 231,343 5,395 236,738 — 236,738 Statement of Operations for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Cost of revenue $ 268,710 $ (242 ) $ 268,468 $ (142,872 ) $ 125,596 Gross loss (17,751 ) 242 (17,509 ) 9,642 (7,867 ) General and administrative expense 13,858 293 14,151 (1,426 ) 12,725 Operating loss (27,159 ) (51 ) (27,210 ) 13,307 (13,903 ) Loss before income taxes (27,427 ) (51 ) (27,478 ) 13,307 (14,171 ) Net loss (27,375 ) (51 ) (27,426 ) — (27,426 ) Statement of Cash Flows for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted (5) Net loss $ (27,375 ) $ (51 ) $ (27,426 ) Accrued expenses and other current liabilities (2,427 ) 51 (2,376 ) (1) Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation. (2) Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis. (3) The error corrections include a $ 5.4 million (4) Recast amount includes $0.2 million associated with the earned vacation liability error correction that is reflected within discontinued operations. (5) Discontinued operations are not presented separately on our Statement of Cash Flows. See Note 12 for a summary of the corrections to previously reported segment amounts for 2020 and Note 13 for a summary of the corrections to previously reported quarterly and segment amounts for 2021. |
Operating Cycle | Operating Cycle The durations of our contracts vary, but typically extend beyond twelve months from the date of contract award. Consistent with industry practice, assets and liabilities have been classified as current under the operating cycle concept whereby all contract-related items are classified as current regardless of whether cash will be received or paid within a twelve-month period. Assets and liabilities classified as current which may not be received or paid within the next twelve months include contract retainage, contract assets 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; • determination of fair value with respect to acquired tangible and intangible assets; • fair value and recoverability assessments that must be periodically performed with respect to long-lived tangible assets, assets held for sale, goodwill and other intangible assets; • 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 volatile oil prices and the ongoing global coronavirus pandemic (“COVID-19”) 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 2021 and 2020. In addition, our operations (as well as the operations of our customers, subcontractors and counterparties) were negatively impacted by the physical distancing, quarantine and isolation measures recommended by national, state and local authorities on large portions of the populations, and mandatory business closures that were enacted in an attempt to control the spread of COVID-19, and which could be reenacted in response to new and emerging strains and variants of COVID-19 or any future major public health crisis. 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 in 2022 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, COVID-19 and Russia’s invasion of Ukraine in February 2022. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is calculated by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted income (loss) per share reflects the assumed conversion of dilutive securities in periods in which income is reported. See Note 11 for calculations of our basic and diluted income (loss) per share. |
Cash Equivalents and Short-term Investments | Cash Equivalents and Short-term Investments Cash Equivalents – We consider investments with original maturities of three months or less when purchased to be cash equivalents. Restricted Cash – At December 31, 2021, we had $1.7 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 Note7 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 December 31, 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 and graded vesting methods to recognize share-based compensation expense over the requisite service period of the award. We recognize the excess tax benefit or tax deficiency resulting from the difference between the deduction we receive for tax purposes and the stock-based compensation expense we recognize for financial reporting purposes created when common stock vests, as an income tax benefit or expense on our 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. See Note 9 for further discussion of our stock-based and other compensation plans. |
Assets Held for Sale | Assets Held for Sale Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell. See Note 5 for further discussion of our assets held for sale. |
Depreciation and Amortization Expense | Depreciation and Amortization Expense Property, plant and equipment are depreciated on a straight-line basis over estimated useful lives ranging from three to 25 years. Ordinary maintenance and repairs, which do not extend the physical or economic lives of the plant or equipment, are charged to expense as incurred. Intangible assets are amortized on a straight-line basis over 7 years and amortization expense is reflected within general and administrative expense on our Statement of Operations. See Note 6 for further discussion of our property, plant and equipment and Note 4 for further discussion of our intangible assets. |
Long-Lived Assets | Long-Lived Assets Goodwill – Our goodwill is associated with the DSS Acquisition on December 1, 2021. Goodwill is not amortized, but instead is reviewed for impairment at least annually at a reporting unit level, absent any indicators of impairment. Our Fabrication & Services Division includes one reporting unit associated with our DSS Acquisition. In evaluating goodwill for impairment, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is greater than its carrying value. If we determine that it is more likely than not that the carrying value of the reporting unit is greater than its fair value, we perform a quantitative impairment test by calculating the fair value of the reporting unit and comparing it to the carrying value of the reporting unit, and we recognize an impairment charge to the extent its carrying value exceeds its fair value. Because of the proximity of the Acquisition Date to December 31, 2021, we performed a qualitative assessment at year-end to determine whether our goodwill was impaired. Based on this qualitative assessment, we determined that it was more likely than not that the fair value of our reporting unit is greater than its carrying value. We intend to perform our future annual impairment assessments during the fourth quarter of each year based upon balances as of the beginning of that year’s fourth quarter. If, based on future assessments, our goodwill is deemed to be impaired, the impairment would result in a charge to our operating results in the year of impairment. See Note 4 for discussion of the DSS Acquisition and related goodwill. Other Long-Lived Assets – Our property, plant and equipment, lease assets (included within other noncurrent assets), and finite-lived intangible assets (associated with the DSS Acquisition) 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, Note 3 for discussion of our long-lived asset impairments within discontinued operations, and Note 4 for discussion of the DSS Acquisition and related long-lived assets. |
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. For leases with escalations over the life of the lease, we recognize expense on a straight-line basis. See Note 6 for further discussion of our lease assets and liabilities. |
Fair Value Measurements | Fair Value Measurements Fair value determinations for financial assets and liabilities are based on the particular facts and circumstances. Financial instruments are required to be categorized within a valuation hierarchy based upon the lowest level of input that is significant to the fair value measurement. The three levels of the valuation hierarchy are as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 – inputs are based upon model-based valuation techniques for which significant assumptions are generally not observable in the market and typically reflect estimates and assumptions that we believe market participants would use in pricing the asset or liability. These include discounted cash flow models and similar valuation techniques. The carrying amounts of our financial instruments, including cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximate their fair values. Our fair value assessments for determining the impairments of goodwill, 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 discussion of fair value measurements associated with the DSS Acquisition and Note 5 for further discussion of impairments of our long-lived assets and 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 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 our unapproved change orders, claims, incentives and liquidated damages . Additional Disclosures – Topic 606 also requires disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. See Note 2 for required disclosures under Topic 606. |
Pre-Contract Costs | Pre-Contract Costs Pre-contract costs are generally charged to cost of revenue as incurred, but in certain cases their recognition may be deferred if specific probability criteria are met. At December 31, 2021 and 2020, we had no deferred pre-contract costs. |
Other (Income) Expense, Net | Other (Income) Expense, Net Other (income) expense, net, generally represents recoveries or provisions for bad debts, 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 2021, other (income) expense, net included charges of $3.8 million associated with damage caused by Hurricane Ida and transaction costs of $0.5 million associated with the DSS Acquisition. For 2020, other (income) expense, net included a gain of $10.0 million associated with the settlement of a contract dispute for a project completed in 2015 and charges of $0.8 million associated with damage caused by Hurricane Laura. See Note 2 for further discussion of the impacts of Hurricanes Ida and Laura. |
Income Taxes | Income Taxes Income taxes have been provided for using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted rates expected to be in effect during the year in which the differences are expected to reverse. Due to state income tax laws related to the apportionment of revenue for our projects, judgment is required to estimate the effective tax rate expected to apply to tax differences that are expected to reverse in the future. A valuation allowance is provided to reserve for deferred tax assets (“DTA(s)”) if, based upon the available evidence, it is more likely than not that some or all of the DTAs will not be realized. The realization of our DTAs depends on our ability to generate sufficient taxable income of the appropriate character and in the appropriate jurisdictions. Reserves for uncertain tax positions are recognized when we consider it more likely than not that additional tax will be due in excess of amounts reflected in our income tax returns, irrespective of whether or not we have received tax assessments. Interest and penalties on uncertain tax positions are recorded within income tax expense. See Note 8 for further discussion of our income taxes and DTAs. |
New Accounting Standards | New Accounting Standards Income taxes – In the first quarter 2021, we adopted 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 ou r financial position, results of operations or related disclosures. Financial instruments – In June 2016, the FASB issued ASU 2016-13, 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 evaluating the effect that the new standard will have on our financial position, results of operations and related disclosures. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Revision of Previously Issued Financial Statements | A summary of the adjustments to previously issued 2020 Financial Statements to correct the error in accounting for employee earned vacation, as well as certain other known immaterial errors, is as follows (in thousands): Balance Sheet as of December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Prepaid expenses and other assets (3) $ 2,815 $ 5,395 $ 8,210 $ (270 ) $ 7,940 Total current assets (3) 147,362 5,395 152,757 — 152,757 Total assets (3) 231,343 5,395 236,738 — 236,738 Accrued expenses and other liabilities (3) 7,670 7,281 14,951 (1,188 ) 13,763 Current liabilities of discontinued operations (4) — — — 63,807 63,807 Total current liabilities (3) 98,412 7,281 105,693 — 105,693 Total liabilities (3) 104,981 7,281 112,262 — 112,262 Retained earnings 11,067 (1,886 ) 9,181 — 9,181 Total shareholders' equity 126,362 (1,886 ) 124,476 — 124,476 Total liabilities and shareholders’ equity (3) 231,343 5,395 236,738 — 236,738 Statement of Operations for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Cost of revenue $ 268,710 $ (242 ) $ 268,468 $ (142,872 ) $ 125,596 Gross loss (17,751 ) 242 (17,509 ) 9,642 (7,867 ) General and administrative expense 13,858 293 14,151 (1,426 ) 12,725 Operating loss (27,159 ) (51 ) (27,210 ) 13,307 (13,903 ) Loss before income taxes (27,427 ) (51 ) (27,478 ) 13,307 (14,171 ) Net loss (27,375 ) (51 ) (27,426 ) — (27,426 ) Statement of Cash Flows for the year ended December 31, 2020 As Previously Reported (1) Corrections As Adjusted (5) Net loss $ (27,375 ) $ (51 ) $ (27,426 ) Accrued expenses and other current liabilities (2,427 ) 51 (2,376 ) (1) Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation. (2) Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis. (3) The error corrections include a $ 5.4 million (4) Recast amount includes $0.2 million associated with the earned vacation liability error correction that is reflected within discontinued operations. (5) Discontinued operations are not presented separately on our Statement of Cash Flows. |
Revenue, Contract Assets and _2
Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables) | 12 Months Ended |
Dec. 31, 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 2021 and 2020 thousands): Year ended December 31, 2021 F&S Shipyard Eliminations Total Fixed-price and unit-rate (1) $ 40,480 $ 12,778 $ (8 ) $ 53,250 T&M (2) 36,555 100 — 36,655 Other 4,048 — (501 ) 3,547 Total $ 81,083 $ 12,878 $ (509 ) $ 93,452 Year Ended December 31, 2020 F&S Shipyard Eliminations Total Fixed-price and unit-rate (1) $ 66,790 $ 20,468 $ (148 ) $ 87,110 T&M (2) 25,294 — (388 ) 24,906 Other 7,401 — (1,688 ) 5,713 Total $ 99,485 $ 20,468 $ (2,224 ) $ 117,729 (1) Revenue is recognized as the contract is progressed over time. (2) Revenue is recognized at contracted rates when the work is performed and costs are incurred. |
Summary of Remaining Performance Obligation by Operating Segment | The following table summarizes our remaining performance obligations by operating segment at December 31, 2021 (in thousands): Performance Obligations F&S $ 6,847 Shipyard 10,223 Total (1) $ 17,070 (1) We expect to recognize all of our performance obligations at December 31, 2021, as revenue in 2022 . |
Summary of Contract with Customer, Asset and Liability | Information with respect to contracts that were incomplete at December 31, 2021 and 2020, is as follows (in thousands): December 31, 2021 2020 Costs incurred on uncompleted contracts $ 103,315 $ 71,198 Estimated loss incurred to date (7,807 ) (10,290 ) Sub-total 95,508 60,908 Billings to date (97,397 ) (66,072 ) Total $ (1,889 ) $ (5,164 ) The above amounts are included within the following captions on our Balance Sheet at December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Contract assets (1), (2) $ 4,759 $ 5,098 Contract liabilities (3), (4), (5) (6,648 ) (10,262 ) Total $ (1,889 ) $ (5,164 ) (1) The decrease in contract assets compared to December 31, 2020, was primarily due to decreased unbilled position on our seventy-vehicle ferry project within our Shipyard Division, offset partially by increased unbilled positions for various projects within our Fabrication & Services Division. (2) Contract assets at December 31, 2021 and 2020, excludes $1.1 million and $2.3 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. (3) 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 and decrease in accrued contract losses on our seventy-vehicle ferry and two forty-vehicle ferry projects within our Shipyard Division. (4) Revenue recognized during 2021 and 2020 related to amounts included in our contract liabilities balance at December 31, 2020 and 2019, was $3.7 million and $9.9 million, respectively. (5) Contract liabilities at December 31, 2021 and 2020, includes accrued contract losses million and $5.4 million, respectively. See “Changes in Project Estimates” below for further discussion of our accrued contract losses. |
Schedules of Concentration of Risk, by Risk Factor | The following table summarizes revenue for customers that accounted for 10% or more of our consolidated revenue for 2021 and 2020 (in thousands): Years Ended December 31, 2021 2020 Customer A $ 41,057 $ 22,793 Customer B 9,576 14,559 Customer C * 22,463 * The customer revenue was less than 10% of consolidated revenue for the year. |
SHIPYARD TRANSACTION AND DISC_2
SHIPYARD TRANSACTION AND DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 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 2021 and 2020, is as follows (in thousands): Years Ended December 31, 2021 2020 Revenue $ 41,637 $ 133,230 Cost of revenue 33,912 142,872 Gross profit (loss) (1) 7,725 (9,642 ) General and administrative expense 413 1,426 Impairments and (gain) loss on assets held for sale, net (2) 25,331 1,639 Other (income) expense, net (3) (647 ) 600 Operating loss (17,372 ) (13,307 ) Income tax (expense) benefit (4) — — Loss from discontinued operations, net of taxes $ (17,372 ) $ (13,307 ) (1) Gross profit for 2021 was positively impacted by changes in estimated margins on projects of $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). Gross loss for 2020 was negatively impacted by changes in estimated margins on projects of $8.3 million. 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. (2) Expense for 2021 includes impairments of $22.8 million and transaction and other costs of $2.6 million associated with the Shipyard Transaction (see discussion above). Expense for 2020 includes charges of $1.6 million associated with impairments of drydocks sold in connection with the Shipyard Transaction, impairments of lease assets associated with our Lake Charles Facility, and closure costs associated with our Lake Charles Facility and Jennings Facility. (3) Other income for 2021 includes a gain of $0.6 million, resulting from insurance recoveries associated with damage previously caused by Hurricane Laura to a drydock that was sold in connection with the Shipyard Transaction. Other expense for 2020 includes charges of $0.5 million associated with damage caused by Hurricane Laura to our drydocks sold in connection with the Shipyard Transaction and our ninth harbor tug project. (4) Income taxes attributable to discontinued operations were not material for each period presented. Assets and Liabilities – At December 31, 2021, we had no material assets or liabilities of discontinued operations. A summary of the carrying values of the major classes of assets and liabilities of discontinued operations at December 31, 2020, is as follows (in thousands): 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 December 31, 2020 Current liabilities of discontinued operations: Accounts payable $ 57,752 Contract liabilities 4,867 Accrued expenses and other liabilities 1,188 Total current liabilities of discontinued operations $ 63,807 Cash Flows – A summary of the cash flows of discontinued operations for 2021 and 2020, is as follows (in thousands) : Years Ended December 31, 2021 2020 Operating cash flows from discontinued operations $ (9,443 ) $ (19,673 ) Investing cash flows from discontinued operations $ 32,739 $ (8,954 ) |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination And Asset Acquisition [Abstract] | |
Summary of Preliminary Purchase Price Allocation | The following table summarizes our preliminary purchase price allocation at the Acquisition Date: Tangible assets and liabilities: Land and buildings (1) $ 475 Machinery and equipment (2) 2,557 Right-of-use asset (3) 2,000 Accrued expenses and other liabilities (672 ) Net tangible assets and liabilities 4,360 Intangible assets - customer relationships (4) 996 Goodwill 2,217 Purchase Price (5) $ 7,573 (1) Land and buildings – Represents an acquired operating facility located in Ingleside, Texas (“Ingleside Facility”). The fair value of the facility was estimated based on a third-party appraisal. (2) Machinery and equipment – Represents acquired machinery, equipment and vehicles. The fair values of the assets were estimated based on third-party appraisals. (3) Right-of-use asset – Represents a fabrication and operating facility located in Harvey, Louisiana (“Harvey Facility”) that is subject to a lease arrangement with Dynamic that expires on June 30, 2022. The Harvey Facility is also subject to a separate purchase option that enables us to buy the facility from Dynamic prior to December 2, 2022, for a nominal amount (“Harvey Option”). We believe it is probable we will exercise the Harvey Option, and accordingly, have concluded that the arrangement represents a finance lease under the guidance of ASC 842, “Leases ”, due to the Harvey Option representing a bargain purchase option. We have reflected the estimated fair value of the Harvey Facility plus future lease payment obligations as a right-of-use asset in our preliminary purchase price allocation, with the estimated fair value based on a combination of a third-party appraisal, third-party indications of interest for the facility, and indications of value communicated by and between us and Dynamic during the due diligence process. The corresponding lease liability is not material. (4) Customer relationships – Represents the estimated fair value of existing underlying customer relationships with estimated lives of 7 years. The fair value was estimated based on a multi-period excess earnings method which incorporated Level 3 inputs. The significant assumptions used in estimating fair value included revenue and income projections for the DSS Business and the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Amortization expense for our intangible assets was not material for 2021, and at December 31, 2021, our intangible asset balance totaled $1.0 million. Our amortization expense is estimated to be $0.1 million to $0.2 million for each of 2022, 2023, 2024, 2025 and 2026, and $0.3 million thereafter. (5) Purchase Price – Represents a base cash purchase price of $8.0 million, less $0.4 million attributable to assumed employee vacation obligations. |
Summary of Proforma Information | The Pro Forma Information has been presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved had the pro forma events taken place on the dates indicated. Further, the Pro Forma Information does not purport to project the future operating results of the combined company following the DSS Acquisition. Years Ended December 31, 2021 2020 Pro forma revenue from continuing operations $ 138,330 $ 164,875 Pro forma net loss from continuing operations (1,947 ) (12,735 ) Per share data: Basic and diluted loss from continuing operations $ (0.13 ) $ (0.83 ) |
Impairments and (Gain) Loss o_2
Impairments and (Gain) Loss on Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and 2020, is as follows (in thousands): December 31, 2021 2020 Machinery and equipment $ 4,587 $ 11,877 Accumulated depreciation (2,787 ) (5,677 ) Total assets held for sale $ 1,800 $ 6,200 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Leased Facilities and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following at December 31, 2021 and 2020 (in thousands): Estimated December 31, Useful Life 2021 2020 (in Years) Land — $ 4,416 $ 4,216 Buildings 10 to 25 25,742 25,044 Machinery and equipment 3 to 15 65,625 62,498 Furniture and fixtures 3 to 5 1,276 1,276 Transportation equipment 2 to 5 2,363 2,104 Improvements 15 23,404 23,652 Construction in progress — 705 3,092 Right-of-use asset (1) 15 2,000 — Total property, plant and equipment 125,531 121,882 Accumulated depreciation (92,665 ) (90,704 ) Property, plant and equipment, net $ 32,866 $ 31,178 (1) Right-of-use asset – Represents the Harvey Facility. See Note 4 for further discussion of the Harvey Facility and related Harvey Option. |
Schedule of Minimum Rental Payments | Future minimum payments under leases having initial terms of more than twelve months are as follows (in thousands): Minimum Payments 2022 $ 737 2023 653 2024 564 2025 219 2026 - Total lease payments 2,173 Less: interest (218 ) Present value of lease liabilities $ 1,955 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income Tax | A reconciliation of the U.S. federal statutory tax rate to our income tax (expense) benefit from continuing operations for 2021 and 2020, is as follows (in thousands): Years Ended December 31, 2021 2020 U.S. statutory rate 21.0 % 21.0 % Increase (decrease) resulting from: Permanent differences (3.1 )% (0.1 )% State income taxes 0.5 % 0.4 % Other (0.1 )% (0.2 )% Discrete items Vesting of common stock (1.4 )% (1.4 )% Change in valuation allowance (44.3 )% (36.2 )% PPP Loan forgiveness 39.5 % — Return to provision and other (11.6 )% 16.9 % Income tax (expense) benefit 0.5 % 0.4 % |
Components of Income Tax Expense | Significant components of our income tax (expense) benefit from continuing operations for 2021 and 2020, were as follows (in thousands): Years Ended December 31, 2021 2020 Current Federal $ — $ — State — (20 ) Total current — (20 ) Deferred Federal 2,185 2,722 State (20 ) 2,455 Valuation allowance (2,141 ) (5,105 ) Total deferred 24 72 Income tax (expense) benefit $ 24 $ 52 |
Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities at December 31, 2021 and 2020, were as follows (in thousands): December 31, 2021 2020 Deferred tax assets Leases $ 233 $ 319 Employee benefits 1,208 1,471 Accrued losses on uncompleted contracts 2,572 3,015 Stock based compensation expense 247 225 Federal net operating losses 21,724 19,345 State net operating losses 3,299 3,620 R&D and other tax credits 938 806 Other 545 398 Total deferred tax assets 30,766 29,199 Deferred tax liabilities Property, plant and equipment and AHFS (1,285 ) (2,632 ) Prepaid insurance (231 ) (511 ) Total deferred tax liabilities (1,516 ) (3,143 ) Net deferred tax assets 29,250 26,056 Valuation allowance (29,331 ) (26,168 ) Net deferred taxes (1) $ (81 ) $ (112 ) (1) Amounts are included in other noncurrent liabilities on our Balance Sheet. |
Retirement and Long-term Ince_2
Retirement and Long-term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share Based Payments And Retirement Disclosure [Abstract] | |
Summary of RSU Activity Excluding Cash Settled RSUs | A summary of activity for our RSU awards (excluding Cash-Settled RSUs) for 2021 and 2020 is as follows: 2021 2020 Number of Shares Weighted- Average Grant-Date Fair Value Per Share Number of Shares Weighted- Average Grant-Date Fair Value Per Share RSUs, beginning of period 613,044 $ 4.59 265,158 $ 8.03 Granted 547,250 4.71 470,004 3.80 Vested (285,416 ) 5.19 (97,194 ) 8.33 Forfeited (32,320 ) 4.40 (24,924 ) 12.24 RSUs, end of period 842,558 4.47 613,044 4.59 |
Income (Loss) Per Share (Tables
Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income (Loss) Per Share | The following table presents the computation of basic and diluted loss per share for 2021 and 2020 (in thousands, except per share data): Years Ended December 31, 2021 2020 Loss from continuing operations $ (4,796 ) $ (14,119 ) Loss from discontinued operations, net of taxes (17,372 ) (13,307 ) Net loss $ (22,168 ) $ (27,426 ) Basic and diluted loss from continuing operations $ (0.31 ) $ (0.92 ) Basic and diluted loss from discontinued operations (1.12 ) (0.87 ) Basic and diluted loss per common share $ (1.43 ) $ (1.79 ) Weighted average shares 15,510 15,308 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Reclassification of Previously Reported Segments | A summary of the adjustments to correct the immaterial errors and reclassifications to our previously reported segment results for 2020, is as follows (in thousands): Year Ended December 31, 2020 F&S Shipyard Corporate Total Gross profit (loss), as reported (1) $ 1,523 $ (19,274 ) $ — $ (17,751 ) Corrections 107 135 — 242 Gross profit (loss), as adjusted prior to recast 1,630 (19,139 ) — (17,509 ) Recast for discontinued operations (2) — 9,642 — 9,642 Changes in expense allocations (76 ) 284 (208 ) — Gross profit (loss) from continuing operations, as adjusted $ 1,554 $ (9,213 ) $ (208 ) $ (7,867 ) Operating income (loss), as reported (1) $ 5,893 $ (24,343 ) $ (8,709 ) $ (27,159 ) Corrections 111 140 (302 ) (51 ) Operating income (loss), as adjusted prior to recast 6,004 (24,203 ) (9,011 ) (27,210 ) Recast for discontinued operations (2) — 13,307 — 13,307 Changes in expense allocations (350 ) 834 (484 ) — Reclassification of legal expenses — (1,039 ) 1,039 — Operating income (loss) from continuing operations, as adjusted $ 5,654 $ (11,101 ) $ (8,456 ) $ (13,903 ) (1) Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation. (2) Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis. |
Summarized Segment Financial Information | Summarized financial information for our segments as of and for the two-year period ended December 31, 2021, is as follows (in thousands): Year Ended December 31, 2021 F&S Shipyard Corporate Total Revenue (eliminations) $ 81,083 $ 12,878 $ (509 ) $ 93,452 Gross profit (loss) (1) 6,189 (4,242 ) (283 ) 1,664 Operating income (loss) (1) 261 (5,769 ) (7,976 ) (13,484 ) Depreciation and amortization expense 4,001 — 319 4,320 Capital expenditures 1,141 — — 1,141 Total assets (3) 59,023 16,222 60,028 135,273 Year Ended December 31, 2020 F&S Shipyard Corporate Total Revenue (eliminations) $ 99,485 $ 20,468 $ (2,224 ) $ 117,729 Gross profit (loss) (2) 1,554 (9,213 ) (208 ) (7,867 ) Operating income (loss) (2) 5,654 (11,101 ) (8,456 ) (13,903 ) Depreciation and amortization expense 4,928 — 302 5,230 Capital expenditures 2,067 — 191 2,258 Total assets (3) 54,174 17,499 59,780 131,453 (1) Gross profit (loss) and operating income (loss) for 2021 includes project improvements of $3.3 million for our F&S Division and project charges of $3.8 million for our Shipyard Division. Operating income (loss) also includes charges of $3.2 million and $0.6 million associated with damage caused by Hurricane Ida for our F&S Division and Shipyard Division, respectively, acquisition costs of $0.5 million associated with the DSS Acquisition for our F&S Division, and the under-recovery of overhead costs for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 4 for further discussion of the DSS Acquisition. (2) Gross profit (loss) and operating income (loss) for 2020 includes project improvements of $2.7 million for our F&S Division and project charges of $8.3 million for our Shipyard Division. Operating income (loss) also includes impairment charges and losses on the sale of assets held for sale of $2.5 million for our F&S Division, charges of $0.8 million associated with damage caused by Hurricane Laura for our Shipyard Division, and a gain of $10.0 million associated with the settlement of a contract dispute for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 5 for further discussion of our impairments. ( 3 ) Cash and short-term investments are reported within our Corporate Division. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Adjustments to Previously Issued Quarterly Financial Statements | A summary of the adjustments to our previously issued 2021 quarterly Financial Statements and previously reported segment results to correct the immaterial errors is as follows (in thousands): Balance Sheet As Previously Reported (1) Corrections As Adjusted As of March 31, 2021 Prepaid expenses and other assets $ 2,817 $ 5,395 $ 8,212 Total current assets 153,271 5,395 158,666 Total assets 213,426 5,395 218,821 Accrued expenses and other liabilities 9,993 7,177 17,170 Total current liabilities 100,777 7,177 107,954 Total liabilities 105,492 7,177 112,669 Accumulated deficit (7,574 ) (1,782 ) (9,356 ) Total shareholders' equity 107,934 (1,782 ) 106,152 Total liabilities and shareholders’ equity 213,426 5,395 218,821 (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. As Previously Reported Corrections As Adjusted As of June 30, 2021 Prepaid expenses and other assets $ 5,962 $ 5,395 $ 11,357 Total current assets 100,115 5,395 105,510 Total assets 143,679 5,395 149,074 Accrued expenses and other liabilities 8,197 7,055 15,252 Total current liabilities 27,651 7,055 34,706 Total liabilities 38,340 7,055 45,395 Accumulated deficit (10,525 ) (1,660 ) (12,185 ) Total shareholders' equity 105,339 (1,660 ) 103,679 Total liabilities and shareholders’ equity 143,679 5,395 149,074 As of September 30, 2021 Prepaid expenses and other assets $ 6,361 $ 5,395 $ 11,756 Total current assets 93,712 5,395 99,107 Total assets 135,876 5,395 141,271 Accrued expenses and other liabilities 8,372 6,979 15,351 Total current liabilities 23,132 6,979 30,111 Total liabilities 24,722 6,979 31,701 Accumulated deficit (5,213 ) (1,584 ) (6,797 ) Total shareholders' equity 111,154 (1,584 ) 109,570 Total liabilities and shareholders’ equity 135,876 5,395 141,271 Statement of Operations As Previously Reported (1) Corrections As Adjusted Prior to Recast Recast (2) As Adjusted Three months ended March 31, 2021 Cost of revenue $ 51,370 $ (104 ) $ 51,266 $ (27,506 ) $ 23,760 Gross profit 7,581 104 7,685 (7,660 ) 25 General and administrative expense 3,127 — 3,127 (340 ) 2,787 Operating loss (18,458 ) 104 (18,354 ) 16,121 (2,233 ) Loss before income taxes (18,652 ) 104 (18,548 ) 16,121 (2,427 ) Net loss (18,641 ) 104 (18,537 ) — (18,537 ) Basic and diluted loss per common share (1.21 ) 0.01 (1.20 ) — (1.20 ) (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. (2) Reflects adjustments to recast previously issued 2021 quarterly Financial Statement amounts on a discontinued operations basis. As Previously Reported Corrections As Adjusted Three months ended June 30, 2021 Cost of revenue $ 23,164 $ (117 ) $ 23,047 Gross profit 1,104 117 1,221 General and administrative expense 3,093 (5 ) 3,088 Operating loss (1,609 ) 122 (1,487 ) Loss before income taxes (1,704 ) 122 (1,582 ) Loss from continuing operations (1,700 ) 122 (1,578 ) Net loss (2,951 ) 122 (2,829 ) Basic and diluted loss from continuing operations (0.11 ) 0.01 (0.10 ) Basic and diluted loss per common share (0.19 ) 0.01 (0.18 ) Three months ended September 30, 2021 Cost of revenue $ 19,785 $ (63 ) $ 19,722 Gross loss (198 ) 63 (135 ) General and administrative expense 3,224 (13 ) 3,211 Operating loss (3,682 ) 76 (3,606 ) Income before income taxes 5,321 76 5,397 Income from continuing operations 5,312 76 5,388 Net Income 5,312 76 5,388 Basic and diluted income from continuing operations 0.34 0.01 0.35 Basic and diluted income per common share 0.34 0.01 0.35 Six months ended June 30, 2021 Cost of revenue $ 47,028 $ (221 ) $ 46,807 Gross profit 1,025 221 1,246 General and administrative expense 5,880 (5 ) 5,875 Operating loss (3,946 ) 226 (3,720 ) Loss before income taxes (4,235 ) 226 (4,009 ) Loss from continuing operations (4,220 ) 226 (3,994 ) Net loss (21,592 ) 226 (21,366 ) Basic and diluted loss from continuing operations (0.27 ) 0.01 (0.26 ) Basic and diluted loss per common share (1.40 ) 0.02 (1.38 ) Nine months ended September 30, 2021 Cost of revenue $ 66,813 $ (284 ) $ 66,529 Gross profit 827 284 1,111 General and administrative expense 9,104 (18 ) 9,086 Operating loss (7,628 ) 302 (7,326 ) Income before income taxes 1,086 302 1,388 Income from continuing operations 1,092 302 1,394 Net loss (16,280 ) 302 (15,978 ) Basic and diluted income from continuing operations 0.07 0.02 0.09 Basic and diluted loss per common share (1.05 ) 0.02 (1.03 ) Statement of Cash Flows As Previously Reported Corrections As Adjusted Three months ended March 31, 2021 Net loss $ (18,641 ) $ 104 $ (18,537 ) Accrued expenses and other current liabilities 2,303 (104 ) 2,199 Six months ended June 30, 2021 Net loss $ (21,592 ) $ 226 $ (21,366 ) Accrued expenses and other current liabilities 1,330 (226 ) 1,104 Nine months ended September 30, 2021 Net loss $ (16,280 ) $ 302 $ (15,978 ) Accrued expenses and other current liabilities 1,206 (302 ) 904 Segment Information Three Months Ended March 31, 2021 F&S Shipyard Corporate Total Gross profit, as reported (1) $ 1,042 $ 6,539 $ — $ 7,581 Corrections 58 46 — 104 Gross profit (loss), as adjusted prior to recast 1,100 6,585 — 7,685 Recast for discontinued operations ( 2) — (7,660 ) — (7,660 ) Gross profit from continuing operations, as adjusted $ 1,100 $ (1,075 ) $ — $ 25 Operating income (loss), as reported (1) $ 981 $ (17,450 ) $ (1,989 ) $ (18,458 ) Corrections 58 46 — 104 Operating income (loss), as adjusted prior to recast 1,039 (17,404 ) (1,989 ) (18,354 ) Recast for discontinued operations ( 2) — 16,121 — 16,121 Operating income (loss) from continuing operations, as adjusted $ 1,039 $ (1,283 ) $ (1,989 ) $ (2,233 ) (1) Represents amounts as reported in our previously issued 2021 quarterly Financial Statements which do not reflect discontinued operations presentation as such change did not occur until the second quarter 2021. (2) Reflects adjustments to recast previously issued 2021 quarterly Financial Statement amounts on a discontinued operations basis. Three Months Ended June 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 2,241 $ (1,059 ) $ (78 ) $ 1,104 Corrections 63 54 — 117 Gross profit (loss) from continuing operations, as adjusted $ 2,304 $ (1,005 ) $ (78 ) $ 1,221 Operating income (loss), as reported $ 1,656 $ (1,119 ) $ (2,146 ) $ (1,609 ) Corrections 63 55 4 122 Operating income (loss) from continuing operations, as adjusted $ 1,719 $ (1,064 ) $ (2,142 ) $ (1,487 ) Three Months Ended September 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 1,112 $ (1,252 ) $ (58 ) $ (198 ) Corrections 48 15 — 63 Gross profit (loss) from continuing operations, as adjusted $ 1,160 $ (1,237 ) $ (58 ) $ (135 ) Operating income (loss), as reported $ 379 $ (1,896 ) $ (2,165 ) $ (3,682 ) Corrections 48 15 13 76 Operating income (loss) from continuing operations, as adjusted $ 427 $ (1,881 ) $ (2,152 ) $ (3,606 ) Six Months Ended June 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 3,228 $ (2,037 ) $ (166 ) $ 1,025 Corrections 121 100 — 221 Gross profit (loss) from continuing operations, as adjusted $ 3,349 $ (1,937 ) $ (166 ) $ 1,246 Operating income (loss), as reported $ 2,517 $ (2,370 ) $ (4,093 ) $ (3,946 ) Corrections 121 101 4 226 Operating income (loss) from continuing operations, as adjusted $ 2,638 $ (2,269 ) $ (4,089 ) $ (3,720 ) Nine Months Ended September 30, 2021 F&S Shipyard Corporate Total Gross profit (loss), as reported $ 4,340 $ (3,289 ) $ (224 ) $ 827 Corrections 169 115 — 284 Gross profit (loss) from continuing operations, as adjusted $ 4,509 $ (3,174 ) $ (224 ) $ 1,111 Operating income (loss), as reported $ 2,896 $ (4,266 ) $ (6,258 ) $ (7,628 ) Corrections 169 116 17 302 Operating income (loss) from continuing operations, as adjusted $ 3,065 $ (4,150 ) $ (6,241 ) $ (7,326 ) |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 01, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Jan. 01, 2020USD ($) | |
Significant Accounting Policies [Line Items] | |||||||
Number of operating segments | segment | 2 | ||||||
Number of corporate non-operating segments | segment | 1 | ||||||
Retained earnings | $ (12,987,000) | $ 9,181,000 | $ (6,797,000) | $ (12,185,000) | $ (9,356,000) | ||
Short-term investments | $ 0 | ||||||
Intangible assets, useful life | 7 years | ||||||
Prepaid contract costs | $ 0 | 0 | |||||
Other (income) expense, net | |||||||
Significant Accounting Policies [Line Items] | |||||||
Charges for damage | 3,800,000 | ||||||
Gain on settlement of contract dispute for project completed in 2015 | 10,000,000 | ||||||
Other (income) expense, net | Hurricane Laura | |||||||
Significant Accounting Policies [Line Items] | |||||||
Charges related to damage caused by landfall | 800,000 | ||||||
DSS Acquisition | |||||||
Significant Accounting Policies [Line Items] | |||||||
Business acquisition, transaction costs | $ 500,000 | $ 500,000 | |||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Property, plant and equipment, useful life | 25 years | ||||||
LC Facility | |||||||
Significant Accounting Policies [Line Items] | |||||||
Restricted cash | $ 1,700,000 | 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 | ||||||
Corrections | |||||||
Significant Accounting Policies [Line Items] | |||||||
Retained earnings | $ (1,886,000) | $ (1,584,000) | $ (1,660,000) | $ (1,782,000) | $ (1,800,000) |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Summary of Revision of Previously Issued Financial Statements (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Prepaid expenses and other assets | $ 6,971 | $ 11,756 | $ 11,357 | $ 8,212 | $ 7,940 | ||
Total current assets | 85,478 | 99,107 | 105,510 | 158,666 | 152,757 | ||
Total assets | 135,273 | 141,271 | 149,074 | 218,821 | 236,738 | ||
Accrued expenses and other liabilities | 13,763 | ||||||
Current liabilities of discontinued operations | 63,807 | ||||||
Total current liabilities | 105,693 | ||||||
Total liabilities | 112,262 | ||||||
Retained earnings | (12,987) | (6,797) | (12,185) | (9,356) | 9,181 | ||
Total shareholders' equity | 103,908 | 109,570 | 103,679 | 106,152 | 124,476 | $ 150,850 | |
Total liabilities and shareholders’ equity | $ 135,273 | 141,271 | 149,074 | 218,821 | 236,738 | ||
As Previously Reported | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Prepaid expenses and other assets | 6,361 | 5,962 | 2,817 | 2,815 | |||
Total current assets | 93,712 | 100,115 | 153,271 | 147,362 | |||
Total assets | 135,876 | 143,679 | 213,426 | 231,343 | |||
Accrued expenses and other liabilities | 7,670 | ||||||
Total current liabilities | 98,412 | ||||||
Total liabilities | 104,981 | ||||||
Retained earnings | (5,213) | (10,525) | (7,574) | 11,067 | |||
Total shareholders' equity | 111,154 | 105,339 | 107,934 | 126,362 | |||
Total liabilities and shareholders’ equity | 135,876 | 143,679 | 213,426 | 231,343 | |||
Corrections | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Prepaid expenses and other assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Total current assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Total assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Accrued expenses and other liabilities | 7,281 | ||||||
Total current liabilities | 7,281 | ||||||
Total liabilities | 7,281 | ||||||
Retained earnings | (1,584) | (1,660) | (1,782) | (1,886) | $ (1,800) | ||
Total shareholders' equity | (1,584) | (1,660) | (1,782) | (1,886) | |||
Total liabilities and shareholders’ equity | $ 5,395 | $ 5,395 | $ 5,395 | 5,395 | |||
As Adjusted Prior to Recast | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Prepaid expenses and other assets | 8,210 | ||||||
Total current assets | 152,757 | ||||||
Total assets | 236,738 | ||||||
Accrued expenses and other liabilities | 14,951 | ||||||
Total current liabilities | 105,693 | ||||||
Total liabilities | 112,262 | ||||||
Retained earnings | 9,181 | ||||||
Total shareholders' equity | 124,476 | ||||||
Total liabilities and shareholders’ equity | 236,738 | ||||||
Recast | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Prepaid expenses and other assets | (270) | ||||||
Accrued expenses and other liabilities | (1,188) | ||||||
Current liabilities of discontinued operations | $ 63,807 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Summary of Revision of Previously Issued Financial Statements (Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Cost of revenue | $ 23,760 | $ 125,596 | |||||
Gross loss | (7,867) | ||||||
General and administrative expense | 2,787 | 12,725 | |||||
Operating loss | (2,233) | (13,903) | |||||
Loss before income taxes | (2,427) | (14,171) | |||||
Net loss | $ 5,388 | $ (2,829) | (18,537) | $ (21,366) | $ (15,978) | $ (22,168) | (27,426) |
As Previously Reported | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Cost of revenue | 51,370 | 268,710 | |||||
Gross loss | (17,751) | ||||||
General and administrative expense | 3,127 | 13,858 | |||||
Operating loss | (18,458) | (27,159) | |||||
Loss before income taxes | (18,652) | (27,427) | |||||
Net loss | 5,312 | (2,951) | (18,641) | (21,592) | (16,280) | (27,375) | |
Corrections | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Cost of revenue | (104) | (242) | |||||
Gross loss | 242 | ||||||
General and administrative expense | 293 | ||||||
Operating loss | 104 | (51) | |||||
Loss before income taxes | 104 | (51) | |||||
Net loss | $ 76 | $ 122 | 104 | $ 226 | $ 302 | (51) | |
As Adjusted Prior to Recast | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Cost of revenue | 51,266 | 268,468 | |||||
Gross loss | (17,509) | ||||||
General and administrative expense | 3,127 | 14,151 | |||||
Operating loss | (18,354) | (27,210) | |||||
Loss before income taxes | (18,548) | (27,478) | |||||
Net loss | (18,537) | (27,426) | |||||
Recast | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Cost of revenue | (27,506) | (142,872) | |||||
Gross loss | 9,642 | ||||||
General and administrative expense | (340) | (1,426) | |||||
Operating loss | 16,121 | 13,307 | |||||
Loss before income taxes | $ 16,121 | $ 13,307 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Summary of Revision of Previously Issued Financial Statements (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Net loss | $ 5,388 | $ (2,829) | $ (18,537) | $ (21,366) | $ (15,978) | $ (22,168) | $ (27,426) |
Accrued expenses and other current liabilities | 2,199 | 1,104 | 904 | $ (1,257) | (2,376) | ||
As Previously Reported | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Net loss | 5,312 | (2,951) | (18,641) | (21,592) | (16,280) | (27,375) | |
Accrued expenses and other current liabilities | 2,303 | 1,330 | 1,206 | (2,427) | |||
Corrections | |||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||||||
Net loss | $ 76 | $ 122 | 104 | 226 | 302 | (51) | |
Accrued expenses and other current liabilities | $ (104) | $ (226) | $ (302) | $ 51 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Summary of Revision of Previously Issued Financial Statements (Parethetical) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Increase in prepaid expenses and other assets | $ 5.4 |
Increase in accrued expenses and other liabilities | 5.4 |
Earned vacation liability error correction | $ 0.2 |
Revenue, Contract Assets and _3
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 93,452 | $ 117,729 |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (509) | (2,224) |
F&S | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 81,083 | 99,485 |
Shipyard | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,878 | 20,468 |
Fixed-price and unit-rate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 53,250 | 87,110 |
Fixed-price and unit-rate | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (8) | (148) |
Fixed-price and unit-rate | F&S | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 40,480 | 66,790 |
Fixed-price and unit-rate | Shipyard | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,778 | 20,468 |
T&M | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 36,655 | 24,906 |
T&M | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (388) | |
T&M | F&S | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 36,555 | 25,294 |
T&M | Shipyard | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 100 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,547 | 5,713 |
Other | Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (501) | (1,688) |
Other | F&S | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,048 | $ 7,401 |
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 | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 17,070 |
F&S | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | 6,847 |
Shipyard | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 10,223 |
Revenue, Contract Assets and _5
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Costs incurred on uncompleted contracts | $ 103,315 | $ 71,198 |
Estimated loss incurred to date | (7,807) | (10,290) |
Sub-total | 95,508 | 60,908 |
Billings to date | (97,397) | (66,072) |
Total | (1,889) | (5,164) |
Contract assets | 4,759 | 5,098 |
Contract liabilities | $ (6,648) | $ (10,262) |
Revenue, Contract Assets and _6
Revenue, Contract Assets and Liabilities and Other Contract Matters - Summary of Contract with Customer, Asset and Liability (Parenthetical) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)Vechicle | Dec. 31, 2020USD ($)Vechicle | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with customer, asset, revenue recognized in excess of amounts billed, current | $ 1.1 | $ 2.3 |
Contract with customer, liability, revenue recognized | 3.7 | 9.9 |
Contract with customer, liability, accrued contract losses, current | $ 3.9 | $ 5.4 |
Forty-Vehicle Ferry | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Number of vehicle ferry projects | Vechicle | 2 | 2 |
Revenue, Contract Assets and _7
Revenue, Contract Assets and Liabilities and Other Contract Matters - Schedules of Concentration of Risk, by Risk Factor (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 93,452 | $ 117,729 |
Sales Revenue, Net | Customer Concentration Risk | Customer A | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 41,057 | 22,793 |
Sales Revenue, Net | Customer Concentration Risk | Customer B | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 9,576 | 14,559 |
Sales Revenue, Net | Customer Concentration Risk | Customer C | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 22,463 |
Revenue, Contract Assets and _8
Revenue, Contract Assets and Liabilities and Other Contract Matters - Schedules of Concentration of Risk, by Risk Factor (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Sales Revenue, Net | Customer Concentration Risk | Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Concentration risk, percentage | 10.00% |
Revenue, Contract Assets and _9
Revenue, Contract Assets and Liabilities and Other Contract Matters - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2022USD ($) | Dec. 31, 2021USD ($)Vechicle | Dec. 31, 2020USD ($)Vechicle | |
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Reduction of estimated contract price for liquidated damages, amount | $ 1,200 | $ 600 | |
Asset impairments | $ 22,750 | $ 3,310 | |
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 | $ 800 | ||
Impact of Hurricane Laura, description | On August 27, 2020, Hurricane Laura made landfall near Lake Charles, Louisiana as a high-end Category 4 hurricane, with high winds and flooding causing significant damage throughout the region. At our Lake Charles Facility the storm damaged warehouses and bulkheads, resulting in charges of $0.8 million related to deductibles associated with our insurance coverages and our estimates of costs associated with uninsurable damage, primarily for bulkheads. | ||
Marine Docking Structures, Offshore Modules and Material Supply Projects | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | $ 3,300 | ||
Seventy-Vehicle Ferry | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | $ 4,100 | $ 1,100 | |
Projects, percent complete (percentage) | 82.00% | ||
Reserve for loss | $ 900 | 500 | |
Forty-Vehicle Ferry | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 300 | $ 7,200 | |
Reserve for loss | $ 3,000 | ||
Number of vehicle ferry projects | Vechicle | 2 | 2 | |
Forty-Vehicle Ferry Vessel Two | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | $ 1,000 | ||
Projects, percent complete (percentage) | 96.00% | ||
Current estimate of costs to repair damage | $ 400 | ||
Deductible associated with insurance coverage for incident | $ 100 | ||
Forty-Vehicle Ferry Vessel Two | Subsequent Event | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Current estimate of costs to repair damage | $ 900 | ||
Forty-Vehicle Ferry Vessel One | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 6,200 | ||
Projects, percent complete (percentage) | 66.00% | ||
Paddlewheel Riverboat and Subsea Components Projects | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 1,500 | ||
Jacket and Deck | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 1,200 | ||
First Forty-Vehicle Ferry Project | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Reserve for loss | $ 4,800 | ||
Second Forty-Vehicle Ferry | Hurricane Ida | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Total charges related to deductibles | 600 | ||
Second Forty-Vehicle Ferry | Hurricane Ida | Minimum | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Charges related to deductibles with insurance coverages | 500 | ||
Second Forty-Vehicle Ferry | Hurricane Ida | Maximum | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Charges related to deductibles with insurance coverages | 1,000 | ||
Shipyard | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 3,800 | 8,300 | |
F&S | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Change in estimated margins | 3,300 | 2,700 | |
Asset impairments | $ 2,500 | ||
F&S | Hurricane Ida | |||
Long Term Contracts Or Programs Disclosure [Line Items] | |||
Asset impairments | 500 | ||
Costs associated with clean-up and expediting activities | 4,800 | ||
Charges associated with deductibles and estimated unrecoverable amounts | 3,200 | ||
Recorded insurance recoveries | 1,600 | ||
Advance payment from insurance carriers associated with insurance policies | $ (1,000) |
Shipyard Transaction and Disc_3
Shipyard Transaction and Discontinued Operations - Additional Information (Details) | Apr. 19, 2021USD ($)VechiclevesselShip_projectdrydock | Dec. 31, 2021USD ($)Vechicle | Dec. 31, 2020USD ($)Vechicle | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Liabilities | $ 31,365,000 | $ 112,262,000 | $ 31,701,000 | $ 45,395,000 | $ 112,669,000 | |
Asset impairments | 22,750,000 | $ 3,310,000 | ||||
Material liabilities of discontinued operations | $ 0 | |||||
Forty-Vehicle Ferry | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Number of vehicle ferry projects | Vechicle | 2 | 2 | ||||
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 drydocks previously supported for shipyard division operations | drydock | 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 | $ 1,600,000 | ||||
Additional loss related to additional transaction and other costs | 2,600,000 | |||||
Asset impairments | 22,800,000 | |||||
Material assets of discontinued operations | 0 | |||||
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 | 8,700,000 | |||||
Shipyard Transaction | Forty-Vehicle Ferry | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Number of vehicle ferry projects | Vechicle | 2 | |||||
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 | 27,700,000 | |||||
Deferred transaction price | 900,000 | |||||
Estimate change in working capital for divested shipyard contracts | $ 7,800,000 |
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 | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |||
Revenue | $ 41,637 | $ 133,230 | |
Cost of revenue | 33,912 | 142,872 | |
Gross profit (loss) | $ (7,660) | 7,725 | (9,642) |
General and administrative expense | 413 | 1,426 | |
Impairments and (gain) loss on assets held for sale, net | 25,331 | 1,639 | |
Other (income) expense, net | (647) | 600 | |
Operating loss | (17,372) | (13,307) | |
Loss from discontinued operations, net of taxes | $ (17,372) | $ (13,307) |
Shipyard Transaction and Disc_5
Shipyard Transaction and Discontinued Operations - Summary of Operating Results Constituting Loss Form Discontinued Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Other (income) expense, net | $ 647 | $ (600) |
Shipyard Transaction | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Estimated loss related to impairment of long lived assets and transaction costs | 22,800 | 1,600 |
Additional loss related to additional transaction and other costs | 2,600 | |
Other (income) expense, net | 600 | (500) |
Towing Salvage and Rescue Ship | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Change in estimated margins | 8,400 | $ (8,300) |
Approved change order from increased contract price | 9,200 | |
Increased craft labor costs | $ 800 |
Shipyard Transaction and Disc_6
Shipyard Transaction and Discontinued Operations - Summary of Carrying Values of Major Classes of Assets and Liabilities of Discontinued Operations (Details) $ in Thousands | Dec. 31, 2020USD ($) |
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 | 57,752 |
Contract liabilities | 4,867 |
Accrued expenses and other liabilities | 1,188 |
Total current liabilities of discontinued operations | $ 63,807 |
Shipyard Transaction and Disc_7
Shipyard Transaction and Discontinued Operations - Summary of Cash Flows of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Operating cash flows from discontinued operations | $ (9,443) | $ (19,673) |
Investing cash flows from discontinued operations | $ 32,739 | $ (8,954) |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 02, 2021 | Dec. 01, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||||
Purchase price | $ 7,573 | ||||
DSS Acquisition | |||||
Business Acquisition [Line Items] | |||||
Date of acquisition | Dec. 1, 2021 | ||||
Business acquisition, description of acquired entity | (“DSS Business”) of Dynamic Industries, Inc. (“Dynamic”) | ||||
Purchase price | $ 7,600 | ||||
Business acquisition, transaction costs | 500 | $ 500 | |||
Acquisition costs | 500 | ||||
Incremental intangibles amortization and depreciation expense | $ 300 | $ 300 | |||
Revenue attributable to DSS Business | $ 3,200 | $ 44,900 | 47,100 | ||
Net income (loss) attributable to DSS Business | $ (500) | $ 2,400 | $ 1,900 |
Acquisition - Summary of Prelim
Acquisition - Summary of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 01, 2021 |
Tangible assets and liabilities: | ||
Goodwill | $ 2,217 | |
DSS Acquisition | ||
Tangible assets and liabilities: | ||
Land and buildings | $ 475 | |
Machinery and equipment | 2,557 | |
Right-of-use asset | 2,000 | |
Accrued expenses and other liabilities | (672) | |
Net tangible assets and liabilities | 4,360 | |
Intangible assets - customer relationships | 996 | |
Goodwill | 2,217 | |
Purchase Price | $ 7,573 |
Acquisition - Summary of Prel_2
Acquisition - Summary of Preliminary Purchase Price Allocation (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 01, 2021 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years | |
Purchase price | $ 7,573 | |
DSS Acquisition | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 7,600 | |
DSS Acquisition | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Intangible assets, useful life | 7 years | |
Intangible balance | 1,000 | |
Amortization expense, 2022 | $ 100 | 200 |
Amortization expense, 2023 | 100 | 200 |
Amortization expense, 2024 | 100 | 200 |
Amortization expense, 2025 | 100 | 200 |
Amortization expense, 2026 | 100 | 200 |
Amortization expense, thereafter | $ 300 | |
Base Cash Purchase Price | DSS Acquisition | ||
Business Acquisition [Line Items] | ||
Purchase price | 8,000 | |
Assumed Employee Vacation Obligations | DSS Acquisition | ||
Business Acquisition [Line Items] | ||
Purchase price | $ 400 |
Acquisition - Summary of Profor
Acquisition - Summary of Proforma Information (Details) - DSS Acquisition - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Pro forma revenue from continuing operations | $ 138,330 | $ 164,875 |
Pro forma net loss from continuing operations | $ (1,947) | $ (12,735) |
Per share data: | ||
Basic and diluted loss from continuing operations | $ (0.13) | $ (0.83) |
Impairments and (Gain) Loss o_3
Impairments and (Gain) Loss on Assets Held for Sale - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)crane | Dec. 31, 2020USD ($)crane | |
Long Lived Assets Held-for-sale [Line Items] | ||
Impairments of other assets | $ 22,750 | $ 3,310 |
Other Assets | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Impairments of other assets | $ 900 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Impairments and nonrecurring costs of assets held for sale. | $ 2,500 | |
Number of cranes | crane | 1 | 2 |
Asset impairment and (gain) loss on assets held for sale, net | $ 200 | |
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 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Fabrication Division | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Impairment of asset held for sale | $ 1,400 | |
Number of cranes | crane | 3 | |
Asset impairment and (gain) loss on assets held for sale, net | $ 200 |
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 | Dec. 31, 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 assets held for sale | $ 1,800 | $ 6,200 |
Property, Plant and Equipment_3
Property, Plant and Equipment and Leased Facilities and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 125,531 | $ 121,882 |
Accumulated depreciation | (92,665) | (90,704) |
Property, plant and equipment, net | 32,866 | 31,178 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,416 | 4,216 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25,742 | 25,044 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 65,625 | 62,498 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,276 | 1,276 |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,363 | 2,104 |
Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Property, plant and equipment, gross | $ 23,404 | 23,652 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 705 | $ 3,092 |
Right-of-use asset | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Property, plant and equipment, gross | $ 2,000 | |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 10 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Minimum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 2 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 25 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 15 years | |
Maximum | Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Maximum | Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years |
Property, Plant and Equipment_4
Property, Plant and Equipment and Leased Facilities and Equipment - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)ft²aRenewal_options | Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense for continuing operations | $ 4.1 | $ 5 |
Operating lease, right-of-use asset | $ 0.9 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | |
Current lease liability | $ 0.6 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Total current liabilities | |
Long-term lease liability | $ 1.4 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | |
Lease agreement expenses | $ 1 | 0.9 |
Operating lease payments | $ 1.5 | $ 1.4 |
Operating lease, term of contract | 3 years 1 month 6 days | |
Operating lease, weighted-average discount rate (percentage) | 6.70% | |
Houston, Texas | ||
Property, Plant and Equipment [Line Items] | ||
Office space area of leased premises (in sqft or acres) | ft² | 17,000 | |
Jennings, Louisiana | ||
Property, Plant and Equipment [Line Items] | ||
Office space area of leased premises (in sqft or acres) | a | 180 | |
Lease description | During the fourth quarter 2020, we closed our Jennings Facility and do not intend to exercise our renewal options | |
Jennings, Louisiana | Prospect Shipyard | ||
Property, Plant and Equipment [Line Items] | ||
Lease renewal options | Renewal_options | 2 | |
Lease renewal term | 10 years | |
Lake Charles, Louisiana | ||
Property, Plant and Equipment [Line Items] | ||
Office space area of leased premises (in sqft or acres) | a | 10 | |
Lease description | During the fourth quarter 2020, we closed our Lake Charles Facility and do not intend to exercise our renewal options | |
Lake Charles, Louisiana | Prospect Shipyard | ||
Property, Plant and Equipment [Line Items] | ||
Lease renewal options | Renewal_options | 3 | |
Lease renewal term | 5 years |
Property, Plant and Equipment_5
Property, Plant and Equipment and Leased Facilities and Equipment - Schedule of Minimum Future Rental Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Property Plant And Equipment [Abstract] | |
2022 | $ 737 |
2023 | 653 |
2024 | 564 |
2025 | 219 |
Total lease payments | 2,173 |
Less: interest | (218) |
Present value of lease liabilities | $ 1,955 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total liabilities |
Credit Facilities - Additional
Credit Facilities - Additional Information (Details) - USD ($) | Jul. 28, 2021 | Dec. 31, 2021 | Apr. 17, 2020 |
Line Of Credit Facility [Line Items] | |||
Maturity date | Jun. 30, 2023 | ||
Gain on extinguishment of debt | $ 9,061,000 | ||
Surety bonds | 110,800,000 | ||
Surety bonds subject to dispute | 50,000,000 | ||
Surety bonds relates to Active Retained Shipyard Contracts | 55,800,000 | ||
Maximum | |||
Line Of Credit Facility [Line Items] | |||
Letter of credit facility | $ 20,000,000 | ||
LC Facility | |||
Line Of Credit Facility [Line Items] | |||
Fees on undrawn borrowings (percentage) | 0.40% | ||
Total outstanding letters of credit | $ 1,700,000 | ||
Letter of Credit | |||
Line Of Credit Facility [Line Items] | |||
Stated interest rate (percentage) | 1.50% | ||
PPP Loan | |||
Line Of Credit Facility [Line Items] | |||
Unsecured loan amount | $ 10,000,000 | ||
Loan payments | $ 9,100,000 | ||
Gain on extinguishment of debt | $ 9,100,000 | ||
PPP Loan threshold requiring an audit by the SBA | $ 2,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
U.S. statutory rate | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||
Permanent differences | (3.10%) | (0.10%) |
State income taxes | 0.50% | 0.40% |
Other | (0.10%) | (0.20%) |
Vesting of common stock | (1.40%) | (1.40%) |
Change in valuation allowance | (44.30%) | (36.20%) |
PPP Loan forgiveness | 39.50% | 0.00% |
Return to provision and other | (11.60%) | 16.90% |
Income tax (expense) benefit | 0.50% | 0.40% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Federal | $ 0 | $ 0 |
State | 0 | (20) |
Total current | 0 | 20 |
Deferred | ||
Federal | 2,185 | 2,722 |
State | (20) | 2,455 |
Valuation allowance | (2,141) | (5,105) |
Total deferred | (24) | (72) |
Income tax (expense) benefit | $ (24) | $ (52) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Leases | $ 233 | $ 319 |
Employee benefits | 1,208 | 1,471 |
Accrued losses on uncompleted contracts | 2,572 | 3,015 |
Stock based compensation expense | 247 | 225 |
Federal net operating losses | 21,724 | 19,345 |
State net operating losses | 3,299 | 3,620 |
R&D and other tax credits | 938 | 806 |
Other | 545 | 398 |
Total deferred tax assets | 30,766 | 29,199 |
Deferred tax liabilities | ||
Property, plant and equipment and AHFS | (1,285) | (2,632) |
Prepaid insurance | (231) | (511) |
Total deferred tax liabilities | (1,516) | (3,143) |
Net deferred tax assets | 29,250 | 26,056 |
Valuation allowance | (29,331) | (26,168) |
Net deferred taxes | $ (81) | $ (112) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||
Total deferred tax assets | $ 30,766 | $ 29,199 |
Federal net operating losses | 21,724 | 19,345 |
Valuation allowance | 29,331 | $ 26,168 |
Domestic Tax Authority | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | 103,400 | |
Operating loss carryforwards subject to expire | $ 42,300 | |
Operating loss carryforwards, limitations on use, description | remaining U.S. federal NOL carryforwards eligible to be carried forward indefinitely, subject to an 80% limitation on taxable income in each year. | |
Operating loss carryforwards limitation rate on taxable income | 80.00% | |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | $ 45,100 |
Retirement and Long-Term Ince_3
Retirement and Long-Term Incentive Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employer discretionary contribution | $ 400,000 | $ 500,000 |
Available shares for future issuance (in shares) | 1,096,994 | |
Share-based compensation cost charged against income | $ 1,708,000 | $ 1,126,000 |
Outstanding stock option awards | 0 | |
Stock option awards granted | 0 | 0 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares available for grant for each employee (in shares) | 250,000 | |
Time-based RSU Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU awards vesting period | 3 years | |
Time-based RSU Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU awards vesting period | 2 years | |
Performance-based RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
RSU awards vesting period | 3 years | |
Cash Settled RSU Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation cost charged against income | $ 100,000 | |
Total fair value of shares granted | $ 200,000 | |
Weighted average grant date fair value | $ 4.77 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation cost charged against income | $ 1,700,000 | $ 1,000,000 |
Weighted average grant date fair value | $ 4.71 | $ 3.80 |
Total unrecognized compensation costs | $ 2,700,000 | |
Recognition of compensation cost, weighted average period | 1 year 9 months 18 days | |
Value of awards granted | $ 2,600,000 | |
Total fair value of shares vested | 1,200,000 | |
Cash-Based Performance Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based share compensation expense | $ 0 | $ 0 |
Performance period awards are earned | 3 years | |
Target amounts payable associated with performance period | $ 0 | $ 0 |
Retirement and Long-Term Ince_4
Retirement and Long-Term Incentive Plans - Summary of RSU Activity Excluding Cash Settled RSUs (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Fiscal Year Focus | 2021 | |
RSUs | ||
Number of Shares | ||
RSUs shares at the beginning of period (in shares) | 613,044 | 265,158 |
Granted (in shares) | 547,250 | 470,004 |
Vested (in shares) | (285,416) | (97,194) |
Forfeited (in shares) | (32,320) | (24,924) |
RSUs shares at the end of period (in shares) | 842,558 | 613,044 |
Weighted- Average Grant-Date Fair Value Per Share | ||
RSUs shares at the beginning of period (USD per share) | $ 4.59 | $ 8.03 |
Weighted average grant date fair value | 4.71 | 3.80 |
Vested (USD per share) | 5.19 | 8.33 |
Forfeited (USD per share) | 4.40 | 12.24 |
RSUs shares at the end of period (USD per share) | $ 4.47 | $ 4.59 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018USD ($)vessel | Dec. 31, 2021USD ($) | 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 Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||||
Loss from continuing operations | $ 5,388 | $ (1,578) | $ (3,994) | $ 1,394 | $ (4,796) | $ (14,119) | |
Loss from discontinued operations, net of taxes | (17,372) | (13,307) | |||||
Net loss | $ 5,388 | $ (2,829) | $ (18,537) | $ (21,366) | $ (15,978) | $ (22,168) | $ (27,426) |
Basic and diluted loss from continuing operations | $ 0.35 | $ (0.10) | $ (0.26) | $ 0.09 | $ (0.31) | $ (0.92) | |
Basic and diluted loss from discontinued operations | (1.12) | (0.87) | |||||
Basic and diluted loss per common share | $ 0.35 | $ (0.18) | $ (1.20) | $ (1.38) | $ (1.03) | $ (1.43) | $ (1.79) |
Weighted average shares | 15,510 | 15,308 |
Operating Segments - Additional
Operating Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 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 | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | $ (7,867) | ||||||
Recast for discontinued operations (2) | $ (7,660) | $ 7,725 | (9,642) | ||||
Gross profit (loss) from continuing operations, as adjusted | $ (135) | $ 1,221 | $ 1,246 | $ 1,111 | 1,664 | (7,867) | |
Operating income (loss) | (3,606) | (1,487) | (3,720) | (7,326) | (13,484) | (13,903) | |
Recast for discontinued operations | $ (17,372) | (13,307) | |||||
Operating income (loss) from continuing operations, as adjusted | (2,233) | (13,903) | |||||
Previously Reported Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | (17,751) | ||||||
Gross profit (loss) from continuing operations, as adjusted | (198) | 1,104 | 1,025 | 827 | |||
Operating income (loss) | (3,682) | (1,609) | (3,946) | (7,628) | (27,159) | ||
Corrections | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | 242 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 63 | 117 | 221 | 284 | |||
Operating income (loss) | 76 | 122 | 226 | 302 | (51) | ||
As Adjusted Prior to Recast | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | (17,509) | ||||||
Operating income (loss) | (27,210) | ||||||
Operating Segments | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Changes in expense allocations | (76) | ||||||
Gross profit (loss) from continuing operations, as adjusted | 1,160 | 2,304 | 3,349 | 4,509 | 1,554 | ||
Operating income (loss) | 427 | 1,719 | 2,638 | 3,065 | |||
Changes in expense allocations | (350) | ||||||
Operating income (loss) from continuing operations, as adjusted | 1,039 | 5,654 | |||||
Operating Segments | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Recast for discontinued operations (2) | (7,660) | (9,642) | |||||
Changes in expense allocations | 284 | ||||||
Gross profit (loss) from continuing operations, as adjusted | (1,237) | (1,005) | (1,937) | (3,174) | (9,213) | ||
Operating income (loss) | (1,881) | (1,064) | (2,269) | (4,150) | |||
Recast for discontinued operations | (13,307) | ||||||
Changes in expense allocations | 834 | ||||||
Reclassification of legal expenses | (1,039) | ||||||
Operating income (loss) from continuing operations, as adjusted | (1,283) | (11,101) | |||||
Operating Segments | Previously Reported Segment | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | 1,523 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 1,112 | 2,241 | 3,228 | 4,340 | |||
Operating income (loss) | 379 | 1,656 | 2,517 | 2,896 | 5,893 | ||
Operating Segments | Previously Reported Segment | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | (19,274) | ||||||
Gross profit (loss) from continuing operations, as adjusted | (1,252) | (1,059) | (2,037) | (3,289) | |||
Operating income (loss) | (1,896) | (1,119) | (2,370) | (4,266) | (24,343) | ||
Operating Segments | Corrections | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | 107 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 48 | 63 | 121 | 169 | |||
Operating income (loss) | 48 | 63 | 121 | 169 | 111 | ||
Operating Segments | Corrections | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | 135 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 15 | 54 | 100 | 115 | |||
Operating income (loss) | 15 | 55 | 101 | 116 | 140 | ||
Operating Segments | As Adjusted Prior to Recast | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | 1,630 | ||||||
Operating income (loss) | 6,004 | ||||||
Operating Segments | As Adjusted Prior to Recast | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | (19,139) | ||||||
Operating income (loss) | (24,203) | ||||||
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Changes in expense allocations | (208) | ||||||
Gross profit (loss) from continuing operations, as adjusted | (58) | (78) | (166) | (224) | (208) | ||
Operating income (loss) | (2,152) | (2,142) | (4,089) | (6,241) | |||
Changes in expense allocations | (484) | ||||||
Reclassification of legal expenses | 1,039 | ||||||
Operating income (loss) from continuing operations, as adjusted | $ (1,989) | (8,456) | |||||
Corporate | Previously Reported Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) from continuing operations, as adjusted | (58) | (78) | (166) | (224) | |||
Operating income (loss) | (2,165) | (2,146) | (4,093) | (6,258) | (8,709) | ||
Corporate | Corrections | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income (loss) | $ 13 | $ 4 | $ 4 | $ 17 | (302) | ||
Corporate | As Adjusted Prior to Recast | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income (loss) | $ (9,011) |
Operating Segments - Summarized
Operating Segments - Summarized Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||
Revenue | $ 93,452 | $ 117,729 | |||||
Gross profit (loss) | $ (135) | $ 1,221 | $ 1,246 | $ 1,111 | 1,664 | (7,867) | |
Operating income (loss) | (3,606) | (1,487) | (3,720) | (7,326) | (13,484) | (13,903) | |
Depreciation and amortization expense | 5,386 | 8,617 | |||||
Capital expenditures | 1,483 | 11,212 | |||||
Total assets | 141,271 | 149,074 | 149,074 | 141,271 | 135,273 | 236,738 | $ 218,821 |
Operating Segments | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 81,083 | 99,485 | |||||
Gross profit (loss) | 1,160 | 2,304 | 3,349 | 4,509 | 1,554 | ||
Operating income (loss) | 427 | 1,719 | 2,638 | 3,065 | |||
Operating Segments | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 12,878 | 20,468 | |||||
Gross profit (loss) | (1,237) | (1,005) | (1,937) | (3,174) | (9,213) | ||
Operating income (loss) | (1,881) | (1,064) | (2,269) | (4,150) | |||
Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Gross profit (loss) | (58) | (78) | (166) | (224) | (208) | ||
Operating income (loss) | $ (2,152) | $ (2,142) | $ (4,089) | $ (6,241) | |||
Continuing Operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 93,452 | 117,729 | |||||
Gross profit (loss) | 1,664 | (7,867) | |||||
Operating income (loss) | (13,484) | (13,903) | |||||
Depreciation and amortization expense | 4,320 | 5,230 | |||||
Capital expenditures | 1,141 | 2,258 | |||||
Total assets | 135,273 | 131,453 | |||||
Continuing Operations | Operating Segments | F&S | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 81,083 | 99,485 | |||||
Gross profit (loss) | 6,189 | 1,554 | |||||
Operating income (loss) | 261 | 5,654 | |||||
Depreciation and amortization expense | 4,001 | 4,928 | |||||
Capital expenditures | 1,141 | 2,067 | |||||
Total assets | 59,023 | 54,174 | |||||
Continuing Operations | Operating Segments | Shipyard | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | 12,878 | 20,468 | |||||
Gross profit (loss) | (4,242) | (9,213) | |||||
Operating income (loss) | (5,769) | (11,101) | |||||
Total assets | 16,222 | 17,499 | |||||
Continuing Operations | Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenue | (509) | (2,224) | |||||
Gross profit (loss) | (283) | (208) | |||||
Operating income (loss) | (7,976) | (8,456) | |||||
Depreciation and amortization expense | 319 | 302 | |||||
Capital expenditures | 191 | ||||||
Total assets | $ 60,028 | $ 59,780 |
Operating Segments - Summariz_2
Operating Segments - Summarized Segment Financial Information (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | |||
Asset impairments | $ 22,750 | $ 3,310 | |
DSS Acquisition | |||
Segment Reporting Information [Line Items] | |||
Acquisition costs | $ 500 | ||
F&S | |||
Segment Reporting Information [Line Items] | |||
Increase in operating income (loss) due to project charges | 3,300 | 2,700 | |
Charges associated with damage caused by Hurricane Laura | 3,200 | ||
Asset impairments | 2,500 | ||
Gain on settlement of contract dispute | 10,000 | ||
F&S | DSS Acquisition | |||
Segment Reporting Information [Line Items] | |||
Acquisition costs | 500 | ||
Shipyard | |||
Segment Reporting Information [Line Items] | |||
Increase in operating income (loss) due to project charges | 3,800 | 8,300 | |
Charges associated with damage caused by Hurricane Laura | $ 600 | $ 800 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Summary of Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Quarterly Financial Information Disclosure [Line Items] | |||||||
Prepaid expenses and other assets | $ 6,971 | $ 11,756 | $ 11,357 | $ 8,212 | $ 7,940 | ||
Total current assets | 85,478 | 99,107 | 105,510 | 158,666 | 152,757 | ||
Total assets | 135,273 | 141,271 | 149,074 | 218,821 | 236,738 | ||
Accrued expenses and other liabilities | 14,026 | 15,351 | 15,252 | 17,170 | 13,763 | ||
Total current liabilities | 29,954 | 30,111 | 34,706 | 107,954 | 105,693 | ||
Total liabilities | 31,365 | 31,701 | 45,395 | 112,669 | 112,262 | ||
Retained earnings (accumulated deficit) | (12,987) | (6,797) | (12,185) | (9,356) | 9,181 | ||
Total shareholders' equity | 103,908 | 109,570 | 103,679 | 106,152 | 124,476 | $ 150,850 | |
Total liabilities and shareholders’ equity | $ 135,273 | 141,271 | 149,074 | 218,821 | 236,738 | ||
As Previously Reported | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Prepaid expenses and other assets | 6,361 | 5,962 | 2,817 | 2,815 | |||
Total current assets | 93,712 | 100,115 | 153,271 | 147,362 | |||
Total assets | 135,876 | 143,679 | 213,426 | 231,343 | |||
Accrued expenses and other liabilities | 8,372 | 8,197 | 9,993 | ||||
Total current liabilities | 23,132 | 27,651 | 100,777 | ||||
Total liabilities | 24,722 | 38,340 | 105,492 | ||||
Retained earnings (accumulated deficit) | (5,213) | (10,525) | (7,574) | 11,067 | |||
Total shareholders' equity | 111,154 | 105,339 | 107,934 | 126,362 | |||
Total liabilities and shareholders’ equity | 135,876 | 143,679 | 213,426 | 231,343 | |||
Corrections | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Prepaid expenses and other assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Total current assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Total assets | 5,395 | 5,395 | 5,395 | 5,395 | |||
Accrued expenses and other liabilities | 6,979 | 7,055 | 7,177 | ||||
Total current liabilities | 6,979 | 7,055 | 7,177 | ||||
Total liabilities | 6,979 | 7,055 | 7,177 | ||||
Retained earnings (accumulated deficit) | (1,584) | (1,660) | (1,782) | (1,886) | $ (1,800) | ||
Total shareholders' equity | (1,584) | (1,660) | (1,782) | (1,886) | |||
Total liabilities and shareholders’ equity | $ 5,395 | $ 5,395 | $ 5,395 | $ 5,395 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Summary of Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||
Cost of revenue | $ 23,760 | $ 125,596 | |||||
Cost of revenue | $ 19,722 | $ 23,047 | $ 46,807 | $ 66,529 | $ 91,788 | 125,596 | |
Gross profit (loss) | 25 | ||||||
Gross profit (loss) from continuing operations, as adjusted | (135) | 1,221 | 1,246 | 1,111 | 1,664 | (7,867) | |
General and administrative expense | 2,787 | 12,725 | |||||
General and administrative expense | 3,211 | 3,088 | 5,875 | 9,086 | 11,848 | 12,725 | |
Operating loss | (2,233) | (13,903) | |||||
Operating loss | (3,606) | (1,487) | (3,720) | (7,326) | (13,484) | (13,903) | |
Income/loss before income taxes | (2,427) | (14,171) | |||||
Income/loss before income taxes | 5,397 | (1,582) | (4,009) | 1,388 | (4,820) | (14,171) | |
Loss from continuing operations | 5,388 | (1,578) | (3,994) | 1,394 | (4,796) | (14,119) | |
Net loss | $ 5,388 | $ (2,829) | $ (18,537) | $ (21,366) | $ (15,978) | $ (22,168) | $ (27,426) |
Basic and diluted loss from continuing operations | $ 0.35 | $ (0.10) | $ (0.26) | $ 0.09 | $ (0.31) | $ (0.92) | |
Basic and diluted loss per share | $ 0.35 | $ (0.18) | $ (1.20) | $ (1.38) | $ (1.03) | $ (1.43) | $ (1.79) |
As Previously Reported | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Cost of revenue | $ 51,370 | $ 268,710 | |||||
Cost of revenue | $ 19,785 | $ 23,164 | $ 47,028 | $ 66,813 | |||
Gross profit (loss) | 7,581 | ||||||
Gross profit (loss) from continuing operations, as adjusted | (198) | 1,104 | 1,025 | 827 | |||
General and administrative expense | 3,127 | 13,858 | |||||
General and administrative expense | 3,224 | 3,093 | 5,880 | 9,104 | |||
Operating loss | (18,458) | (27,159) | |||||
Operating loss | (3,682) | (1,609) | (3,946) | (7,628) | (27,159) | ||
Income/loss before income taxes | (18,652) | (27,427) | |||||
Income/loss before income taxes | 5,321 | (1,704) | (4,235) | 1,086 | |||
Loss from continuing operations | 5,312 | (1,700) | (4,220) | 1,092 | |||
Net loss | $ 5,312 | $ (2,951) | $ (18,641) | $ (21,592) | $ (16,280) | (27,375) | |
Basic and diluted loss from continuing operations | $ 0.34 | $ (0.11) | $ (0.27) | $ 0.07 | |||
Basic and diluted loss per share | $ 0.34 | $ (0.19) | $ (1.21) | $ (1.40) | $ (1.05) | ||
Corrections | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Cost of revenue | $ (104) | (242) | |||||
Cost of revenue | $ (63) | $ (117) | $ (221) | $ (284) | |||
Gross profit (loss) | 104 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 63 | 117 | 221 | 284 | |||
General and administrative expense | 293 | ||||||
General and administrative expense | (13) | (5) | (5) | (18) | |||
Operating loss | 104 | (51) | |||||
Operating loss | 76 | 122 | 226 | 302 | (51) | ||
Income/loss before income taxes | 104 | (51) | |||||
Income/loss before income taxes | 76 | 122 | 226 | 302 | |||
Loss from continuing operations | 76 | 122 | 226 | 302 | |||
Net loss | $ 76 | $ 122 | $ 104 | $ 226 | $ 302 | (51) | |
Basic and diluted loss from continuing operations | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.02 | |||
Basic and diluted loss per share | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.02 | ||
As Adjusted Prior to Recast | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Cost of revenue | $ 51,266 | 268,468 | |||||
Gross profit (loss) | 7,685 | ||||||
General and administrative expense | 3,127 | 14,151 | |||||
Operating loss | (18,354) | (27,210) | |||||
Operating loss | (27,210) | ||||||
Income/loss before income taxes | (18,548) | (27,478) | |||||
Net loss | $ (18,537) | (27,426) | |||||
Basic and diluted loss per share | $ (1.20) | ||||||
Recast | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Cost of revenue | $ (27,506) | (142,872) | |||||
Gross profit (loss) | (7,660) | ||||||
General and administrative expense | (340) | (1,426) | |||||
Operating loss | 16,121 | 13,307 | |||||
Income/loss before income taxes | $ 16,121 | $ 13,307 |
Quarterly Financial Informati_5
Quarterly Financial Information (Unaudited) - Summary of Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||
Net loss | $ 5,388 | $ (2,829) | $ (18,537) | $ (21,366) | $ (15,978) | $ (22,168) | $ (27,426) |
Accrued expenses and other current liabilities | 2,199 | 1,104 | 904 | $ (1,257) | (2,376) | ||
As Previously Reported | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Net loss | 5,312 | (2,951) | (18,641) | (21,592) | (16,280) | (27,375) | |
Accrued expenses and other current liabilities | 2,303 | 1,330 | 1,206 | (2,427) | |||
Corrections | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Net loss | $ 76 | $ 122 | 104 | 226 | 302 | (51) | |
Accrued expenses and other current liabilities | $ (104) | $ (226) | $ (302) | $ 51 |
Quarterly Financial Informati_6
Quarterly Financial Information (Unaudited) - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | $ 25 | ||||||
Gross profit (loss) from continuing operations, as adjusted | $ (135) | $ 1,221 | $ 1,246 | $ 1,111 | $ 1,664 | $ (7,867) | |
Recast for discontinued operations | (7,660) | 7,725 | (9,642) | ||||
Gross profit from continuing operations, as adjusted | 25 | ||||||
Operating loss | (2,233) | (13,903) | |||||
Operating loss | (3,606) | (1,487) | (3,720) | (7,326) | $ (13,484) | (13,903) | |
Recast for discontinued operations | 16,121 | ||||||
Operating income (loss) from continuing operations, as adjusted | (2,233) | (13,903) | |||||
Operating Segments | F&S | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) from continuing operations, as adjusted | 1,160 | 2,304 | 3,349 | 4,509 | 1,554 | ||
Gross profit from continuing operations, as adjusted | 1,100 | ||||||
Operating loss | 427 | 1,719 | 2,638 | 3,065 | |||
Operating income (loss) from continuing operations, as adjusted | 1,039 | 5,654 | |||||
Operating Segments | Shipyard | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) from continuing operations, as adjusted | (1,237) | (1,005) | (1,937) | (3,174) | (9,213) | ||
Recast for discontinued operations | (7,660) | (9,642) | |||||
Gross profit from continuing operations, as adjusted | (1,075) | ||||||
Operating loss | (1,881) | (1,064) | (2,269) | (4,150) | |||
Recast for discontinued operations | 16,121 | ||||||
Operating income (loss) from continuing operations, as adjusted | (1,283) | (11,101) | |||||
Corporate | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) from continuing operations, as adjusted | (58) | (78) | (166) | (224) | (208) | ||
Operating loss | (2,152) | (2,142) | (4,089) | (6,241) | |||
Operating income (loss) from continuing operations, as adjusted | (1,989) | (8,456) | |||||
As Previously Reported | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 7,581 | ||||||
Gross profit (loss) from continuing operations, as adjusted | (198) | 1,104 | 1,025 | 827 | |||
Operating loss | (18,458) | (27,159) | |||||
Operating loss | (3,682) | (1,609) | (3,946) | (7,628) | (27,159) | ||
As Previously Reported | Operating Segments | F&S | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 1,042 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 1,112 | 2,241 | 3,228 | 4,340 | |||
Operating loss | 981 | ||||||
Operating loss | 379 | 1,656 | 2,517 | 2,896 | 5,893 | ||
As Previously Reported | Operating Segments | Shipyard | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 6,539 | ||||||
Gross profit (loss) from continuing operations, as adjusted | (1,252) | (1,059) | (2,037) | (3,289) | |||
Operating loss | (17,450) | ||||||
Operating loss | (1,896) | (1,119) | (2,370) | (4,266) | (24,343) | ||
As Previously Reported | Corporate | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) from continuing operations, as adjusted | (58) | (78) | (166) | (224) | |||
Operating loss | (1,989) | ||||||
Operating loss | (2,165) | (2,146) | (4,093) | (6,258) | (8,709) | ||
Corrections | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 104 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 63 | 117 | 221 | 284 | |||
Operating loss | 104 | (51) | |||||
Operating loss | 76 | 122 | 226 | 302 | (51) | ||
Corrections | Operating Segments | F&S | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 58 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 48 | 63 | 121 | 169 | |||
Operating loss | 58 | ||||||
Operating loss | 48 | 63 | 121 | 169 | 111 | ||
Corrections | Operating Segments | Shipyard | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 46 | ||||||
Gross profit (loss) from continuing operations, as adjusted | 15 | 54 | 100 | 115 | |||
Operating loss | 46 | ||||||
Operating loss | 15 | 55 | 101 | 116 | 140 | ||
Corrections | Corporate | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Operating loss | $ 13 | $ 4 | $ 4 | $ 17 | (302) | ||
As Adjusted Prior to Recast | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 7,685 | ||||||
Operating loss | (18,354) | (27,210) | |||||
Operating loss | (27,210) | ||||||
As Adjusted Prior to Recast | Operating Segments | F&S | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 1,100 | ||||||
Operating loss | 1,039 | ||||||
Operating loss | 6,004 | ||||||
As Adjusted Prior to Recast | Operating Segments | Shipyard | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Gross profit (loss) | 6,585 | ||||||
Operating loss | (17,404) | ||||||
Operating loss | (24,203) | ||||||
As Adjusted Prior to Recast | Corporate | |||||||
Quarterly Financial Information Disclosure [Line Items] | |||||||
Operating loss | $ (1,989) | ||||||
Operating loss | $ (9,011) |