Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2023 | May 08, 2023 | |
Cover [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 15 East 5th Street, Suite 1100 | |
Entity File Number | 1-15461 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MTRX | |
Entity Registrant Name | MATRIX SERVICE CO | |
Entity Central Index Key | 0000866273 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 27,047,318 | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74103 | |
City Area Code | 918 | |
Local Phone Number | 838-8822 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Tax Identification Number | 73-1352174 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 186,895 | $ 177,003 | $ 589,166 | $ 507,061 |
Cost of revenue | 182,476 | 178,766 | 573,041 | 509,125 |
Gross profit (loss) | 4,419 | (1,763) | 16,125 | (2,064) |
Selling, general and administrative expenses | 16,862 | 17,041 | 51,218 | 49,592 |
Goodwill impairment | 0 | 18,312 | 12,316 | 18,312 |
Restructuring costs | 316 | (1,578) | 2,881 | (278) |
Operating loss | (12,759) | (35,538) | (50,290) | (69,690) |
Other income (expense): | ||||
Interest expense | (268) | (204) | (1,556) | (2,705) |
Interest income | 94 | 19 | 164 | 69 |
Other | (116) | 677 | (706) | 534 |
Loss before income tax expense (benefit) | (13,049) | (35,046) | (52,388) | (71,792) |
Provision (benefit) for federal, state and foreign income taxes | (363) | (147) | (363) | 5,564 |
Net loss | $ (12,686) | $ (34,899) | $ (52,025) | $ (77,356) |
Basic loss per common share | $ (0.47) | $ (1.30) | $ (1.93) | $ (2.90) |
Diluted loss per common share | $ (0.47) | $ (1.30) | $ (1.93) | $ (2.90) |
Weighted average common shares outstanding: | ||||
Basic | 27,038 | 26,783 | 26,969 | 26,714 |
Diluted | 27,038 | 26,783 | 26,969 | 26,714 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Other Comprehensive Income [Abstract] | ||||
Net loss | $ (12,686) | $ (34,899) | $ (52,025) | $ (77,356) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation loss (net of tax expense (benefit) of $0 for the three and nine months ended March 31, 2023 and ($16) and $30 for the three and nine months ended March 31, 2022, respectively) | (234) | (32) | (722) | (728) |
Comprehensive loss | $ (12,920) | $ (34,931) | $ (52,747) | $ (78,084) |
Statement of Other Comprehensiv
Statement of Other Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 0 | $ (16) | $ 0 | $ 30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 48,204 | $ 52,371 |
Accounts receivable, less allowances (March 31, 2023—$1,100 and June 30, 2022—$1,320) | 163,426 | 153,879 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 53,398 | 44,752 |
Inventories | 8,027 | 9,974 |
Income taxes receivable | 539 | 13,547 |
Prepaid expenses | 6,369 | 4,024 |
Other current assets | 4,801 | 8,865 |
Total current assets | 284,764 | 287,412 |
Restricted Cash | 25,000 | 25,000 |
Property, plant and equipment, net | 50,541 | 53,869 |
Operating lease right-of-use assets | 22,889 | 22,067 |
Goodwill | 29,712 | 42,135 |
Other intangible assets, net of accumulated amortization | 3,499 | 4,796 |
Other assets, non-current | 9,542 | 5,514 |
Total assets | 425,947 | 440,793 |
Current liabilities: | ||
Accounts payable | 65,518 | 74,886 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 114,729 | 65,106 |
Accrued wages and benefits | 13,257 | 21,526 |
Accrued insurance | 5,823 | 6,125 |
Operating lease liabilities | 4,605 | 5,715 |
Other accrued expenses | 4,477 | 4,427 |
Total current liabilities | 208,409 | 177,785 |
Deferred income taxes | 26 | 26 |
Operating lease liabilities | 21,727 | 19,904 |
Borrowings under asset-backed credit facility | 15,000 | 15,000 |
Other liabilities | 782 | 372 |
Total liabilities | 245,944 | 213,087 |
Stockholders' equity: | ||
Common stock—$.01 par value; 60,000,000 shares authorized; 27,888,217 shares issued as of March 31, 2023 and June 30, 2022; 27,037,556 and 26,790,514 shares outstanding as of March 31, 2023 and June 30, 2022, respectively | 279 | 279 |
Additional paid-in capital | 139,257 | 139,854 |
Retained earnings | 59,253 | 111,278 |
Accumulated other comprehensive loss | (8,897) | (8,175) |
Stockholders' equity | 189,892 | 243,236 |
Treasury stock, at cost — 850,661 shares as of March 31, 2023, and 1,097,703 shares as of June 30, 2022 | (9,889) | (15,530) |
Total stockholders' equity | 180,003 | 227,706 |
Total liabilities and stockholders’ equity | $ 425,947 | $ 440,793 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Statement Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowances | $ 1,100 | $ 1,320 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 27,888,217 | 27,888,217 |
Common stock, shares outstanding | 27,037,556 | 26,790,514 |
Treasury Stock, Common, Shares | 850,661 | 1,097,703 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net loss | $ (52,025) | $ (77,356) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 10,499 | 11,557 |
Goodwill impairment | 12,316 | 18,312 |
Stock-based compensation expense | 5,154 | 5,823 |
Deferred income tax | 0 | 5,323 |
Gain on sale of property, plant and equipment | (21) | (674) |
Provision for uncollectible accounts | (63) | 52 |
Accelerated amortization of deferred debt amendment fees | 0 | 1,518 |
Other | 189 | 103 |
Changes in operating assets and liabilities increasing (decreasing) cash: | ||
Accounts receivable | (9,484) | 10,288 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (8,646) | (15,619) |
Inventories | 1,947 | 435 |
Other assets and liabilities | 10,401 | (2,769) |
Accounts payable | (9,344) | 7,188 |
Billings on uncompleted contracts in excess of costs and estimated earnings | 49,623 | 20,036 |
Accrued expenses | (8,143) | (6,734) |
Net cash provided (used) by operating activities | 2,403 | (22,517) |
Investing activities: | ||
Capital expenditures | (6,212) | (1,335) |
Proceeds from asset sales | 110 | 1,250 |
Net cash used by investing activities | (6,102) | (85) |
Financing activities: | ||
Advances under asset-backed credit facility | 10,000 | 0 |
Repayments of advances under senior secured revolving credit facility | (10,000) | 0 |
Payment of debt amendment fees | 0 | (1,054) |
Issuances of common stock | 0 | 199 |
Proceeds from issuance of common stock under employee stock purchase plan | 200 | 212 |
Repurchase of common stock for payment of statutory taxes due on equity-based compensation | (310) | (853) |
Other | 0 | (354) |
Net cash used by financing activities | (110) | (1,850) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (358) | (334) |
Net decrease in cash, cash equivalents and restricted cash | (4,167) | (24,786) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period | 77,371 | 83,878 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period | 73,204 | 59,092 |
Supplemental disclosure of cash flow information: | ||
Income taxes | (13,286) | (2,841) |
Interest, including payment of debt amendment fees | 1,675 | 2,509 |
Non-cash investing and financing activities: | ||
Purchases of property, plant and equipment on account | $ 30 | $ 99 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock, Common |
Balances, beginning at Jun. 30, 2021 | $ 285,539 | $ 279 | $ 137,575 | $ 175,178 | $ (6,749) | $ (20,744) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (77,356) | 0 | 0 | (77,356) | 0 | 0 |
Other comprehensive income (loss) | (728) | 0 | 0 | 0 | (728) | 0 |
Issuances of common stock | 199 | 0 | (189) | 0 | 0 | 388 |
Issuance of deferred shares | 0 | (5,102) | 0 | 0 | 5,102 | |
Treasury shares sold to Employee Stock Purchase Plan | 212 | 0 | (221) | 0 | 0 | 433 |
Treasury shares purchased to satisfy tax withholding obligations | (853) | 0 | 0 | 0 | 0 | (853) |
Stock-based compensation expense | 5,823 | 0 | 5,823 | 0 | 0 | 0 |
Balances, ending at Mar. 31, 2022 | 212,836 | 279 | 137,886 | 97,822 | (7,477) | (15,674) |
Balances, beginning at Dec. 31, 2021 | 245,610 | 279 | 135,913 | 132,721 | (7,445) | (15,858) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (34,899) | 0 | 0 | (34,899) | 0 | 0 |
Other comprehensive income (loss) | (32) | 0 | 0 | 0 | (32) | 0 |
Treasury shares sold to Employee Stock Purchase Plan | 69 | 0 | (115) | 0 | 0 | 184 |
Stock-based compensation expense | 2,088 | 0 | 2,088 | 0 | 0 | 0 |
Balances, ending at Mar. 31, 2022 | 212,836 | 279 | 137,886 | 97,822 | (7,477) | (15,674) |
Balances, beginning at Jun. 30, 2022 | 227,706 | 279 | 139,854 | 111,278 | (8,175) | (15,530) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (52,025) | 0 | 0 | (52,025) | 0 | 0 |
Other comprehensive income (loss) | (722) | 0 | 0 | 0 | (722) | 0 |
Issuance of deferred shares | 0 | 0 | (5,149) | 0 | 0 | 5,149 |
Treasury shares sold to Employee Stock Purchase Plan | 200 | 0 | (602) | 0 | 0 | 802 |
Treasury shares purchased to satisfy tax withholding obligations | (310) | 0 | 0 | 0 | 0 | (310) |
Stock-based compensation expense | 5,154 | 0 | 5,154 | 0 | 0 | 0 |
Balances, ending at Mar. 31, 2023 | 180,003 | 279 | 139,257 | 59,253 | (8,897) | (9,889) |
Balances, beginning at Dec. 31, 2022 | 191,452 | 279 | 137,989 | 71,939 | (8,663) | (10,092) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (12,686) | 0 | 0 | (12,686) | 0 | 0 |
Other comprehensive income (loss) | (234) | 0 | 0 | 0 | (234) | 0 |
Treasury shares sold to Employee Stock Purchase Plan | 64 | 0 | (139) | 0 | 0 | 203 |
Stock-based compensation expense | 1,407 | 0 | 1,407 | 0 | 0 | 0 |
Balances, ending at Mar. 31, 2023 | $ 180,003 | $ 279 | $ 139,257 | $ 59,253 | $ (8,897) | $ (9,889) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Exercise of stock options, shares | 0 | 0 | 0 | 19,550 |
Issuance of deferred shares, shares | 0 | 0 | 259,529 | 268,403 |
Employee Stock Purchase Plan, shares | 10,233 | 9,290 | 40,377 | 22,577 |
Other treasury shares purchases, shares | 0 | 0 | 52,864 | 76,703 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements include the accounts of Matrix Service Company and its subsidiaries (“Matrix”, “we”, “our”, “us”, “its” or the “Company”), unless otherwise indicated. Intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with Rule 10-01 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission and do not include all information and footnotes required by U.S. generally accepted accounting principles ("GAAP") for complete financial statements. The information furnished reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair statement of the results of operations, cash flows and financial position for the interim periods presented. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements for the year ended June 30, 2022, included in our Annual Report on Form 10-K for the year then ended. The results of operations for the three and nine month periods ended March 31, 2023 may not necessarily be indicative of the results of operations for the full year ending June 30, 2023. Significant Accounting Policies Our significant accounting policies are detailed in “Note 1 - Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended June 30, 2022. |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Remaining Performance Obligations We had $542.7 million of remaining performance obligations yet to be satisfied as of March 31, 2023. We expect to recognize $432.7 million of our remaining performance obligations as revenue within the next twelve months. Contract Balances Contract terms with customers include the timing of billing and payments, which usually differs from the timing of revenue recognition. As a result, we carry contract assets and liabilities in our balance sheet. These contract assets and liabilities are calculated on a contract-by-contract basis and are classified as current. We present our contract assets in the balance sheet as Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts ("CIE"). CIE consists of revenue recognized in excess of billings. We present our contract liabilities in the balance sheet as Billings on Uncompleted Contracts in Excess of Costs and Estimated Earnings ("BIE"). BIE consists of billings in excess of revenue recognized. The following table provides information about CIE and BIE: March 31, June 30, Change (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 53,398 $ 44,752 $ 8,646 Billings on uncompleted contracts in excess of costs and estimated earnings (114,729) (65,106) (49,623) Net contract liabilities $ (61,331) $ (20,354) $ (40,977) The difference between the beginning and ending balances of our CIE and BIE primarily results from the timing of revenue recognized relative to the billings on the associated contract. The amount of revenue recognized during the nine months ended March 31, 2023 that was included in the June 30, 2022 BIE balance was $57.0 million. This revenue consists primarily of work performed during the period on contracts with customers that had advance billings. Progress billings in accounts receivable at March 31, 2023 and June 30, 2022 included retentions to be collected within one year of $18.9 million and $16.1 million, respectively. Contract retentions collectible beyond one year are included in other assets, non-current in the Condensed Consolidated Balance Sheets and totaled $7.8 million as of March 31, 2023 and $4.0 million as of June 30, 2022. Disaggregated Revenue Revenue disaggregated by reportable segment is presented in Note 9 - Segment Information. The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 178,261 $ 160,453 $ 524,731 $ 459,654 Canada 6,932 16,268 52,742 45,038 Other international 1,702 282 11,693 2,369 Total Revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 96,755 $ 100,602 $ 311,511 $ 303,508 Time and materials and other cost reimbursable contracts 90,140 76,401 277,655 203,553 Total Revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 Typically, we assume more risk with fixed-price contracts since increases in costs to perform the work may not be recoverable. However, these types of contracts typically offer higher profits than time and materials and other cost reimbursable contracts when completed at or below the costs originally estimated. The profitability of time and materials and other cost reimbursable contracts is typically lower than fixed-price contracts and is usually less volatile than fixed-price contracts since the profit component is factored into the rates charged for labor, equipment and materials, or is expressed in the contract as a percentage of the reimbursable costs incurred. Revisions in Estimates During the third quarter of fiscal 2023, unfavorable changes in the estimated recovery of change orders and increased forecasted costs to complete certain midstream gas processing capital projects in the Process and Industrial Facilities segment resulted in the projects reducing gross profit by $3.3 million. Together with prior unfavorable changes in the estimated recovery of change orders and increased costs, the projects reduced gross profit by $12.7 million during the nine months ended March 31, 2023. These charges were primarily the result of the client not approving adequate compensation to us for the impact that excessive scope changes had on our ability to progress work on the project according to forecast and for the impact that global supply chain issues and inflation had on the projects. We have accrued the full expected loss for these projects, which we expect to be mechanically complete in July 2023. During the three and nine months ended March 31, 2022, our results of operations were materially impacted by an increase in the forecasted costs to complete a midstream gas processing project in the Process and Industrial Facilities segment, which resulted in a decrease in gross profit of $4.8 million. The increase in forecasted costs was primarily due to performance of a now-terminated subcontractor, which required rework in order to meet our client's expectations. During fiscal 2022, our results of operations were materially impacted by changes in the forecasted costs to complete a large capital project in the Utility and Power Infrastructure segment. Improved project execution resulted in an increase in gross profit of $0.8 million during the three months ended March 31, 2022. However, increases in the forecasted costs to complete the project during the first half of fiscal 2022 resulted in the project reducing gross profit by $5.1 million during the nine months ended March 31, 2022. The increase in forecasted costs during the first half of the fiscal year was principally due to unexpected equipment repairs during commissioning that delayed the scheduled completion and increased the estimated costs to complete. The project was completed in fiscal 2022. During fiscal 2022, our results of operations were materially impacted by an increase in the costs required to complete a thermal energy storage tank repair and maintenance project in the Storage and Terminal Solutions segment, which resulted in a decrease in gross profit of $5.5 million in the first half of fiscal 2022. The increase in costs was primarily due to changes in repair scope, expanded client weld testing and associated schedule delays. We completed these repairs in the first quarter of fiscal 2023. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment The following table presents the components of our property, plant and equipment - net at March 31, 2023 and June 30, 2022: March 31, June 30, (In thousands) Property, plant and equipment - at cost: Land and buildings $ 36,458 $ 34,788 Construction equipment 90,308 93,036 Transportation equipment 47,863 48,999 Office equipment and software 38,456 43,823 Construction in progress 3,155 1,646 Total property, plant and equipment - at cost 216,240 222,292 Accumulated depreciation (165,699) (168,423) Property, plant and equipment - net $ 50,541 $ 53,869 |
Intangible Assets Including Goo
Intangible Assets Including Goodwill (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Including Goodwill | Goodwill and Other Intangible Assets Goodwill The changes in the carrying value of goodwill by segment are as follows: Utility and Power Infrastructure Process and Industrial Facilities Storage and Terminal Solutions Total (In thousands) Net balance at June 30, 2022 $ 4,263 $ 18,427 $ 19,445 $ 42,135 Goodwill impairment — (12,316) — (12,316) Translation adjustment (1) (36) — (71) (107) Net balance at March 31, 2023 $ 4,227 $ 6,111 $ 19,374 $ 29,712 (1) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. We performed our annual goodwill impairment test as of May 31, 2022, which resulted in no impairment. The fiscal 2022 test indicated that four reporting units with a combined total of $33.8 million of goodwill as of June 30, 2022 were at higher risk of future impairment. Operating results during the second quarter of fiscal 2023 of one of our reporting units at higher risk of impairment indicated that it was more likely than not that its goodwill was impaired. This reporting unit is in the Process and Industrial Facilities segment and includes the midstream gas processing projects referenced in Note 2 - Revenue, Revisions in Estimates, which experienced a material adverse change in gross profit during the second quarter of fiscal 2023. Based on the indicated outcome of this project and our near-term outlook for the reporting unit, we performed an interim impairment test for the unit and concluded that its $12.3 million of goodwill was fully impaired. The impairment was recognized in operating loss during the second quarter of fiscal 2023. Based on the totality of both positive and negative factors, no impairment indicators related to the other reporting units existed at March 31, 2023. However, if our view of project opportunities or gross margins deteriorates, particularly for the remaining higher risk reporting units, then we may need to perform an interim goodwill impairment test, which could result in an impairment. During the three and nine months ended March 31, 2022, we concluded that goodwill impairment indicators existed based on the decline in the price of our stock and operating results that had underperformed during the year. As such, we performed an interim impairment test and concluded $18.3 million of goodwill was impaired. Other Intangible Assets Information on the carrying value of other intangible assets is as follows: At March 31, 2023 Useful Life Gross Carrying Accumulated Net Carrying (Years) (In thousands) Intellectual property 10 to 15 $ 2,483 $ (2,328) $ 155 Customer-based (1) 6 to 15 13,144 (9,800) 3,344 Total amortizing intangible assets $ 15,627 $ (12,128) $ 3,499 (1) Customer-based intangible assets have been adjusted in fiscal 2023 to remove $4.2 million of customer relationships that have been fully amortized. At June 30, 2022 Useful Life Gross Carrying Accumulated Net Carrying (Years) (In thousands) Intellectual property 10 to 15 $ 2,558 $ (2,276) $ 282 Customer-based 6 to 15 17,331 (12,817) 4,514 Total amortizing intangible assets $ 19,889 $ (15,093) $ 4,796 Amortization expense totaled $0.4 million and $1.3 million during the three and nine months ended March 31, 2023 and $0.4 million and $1.4 million during the three and nine months ended March 31, 2022, respectively. We estimate that the remaining amortization expense related to March 31, 2023 amortizing intangible assets will be as follows (in thousands): Period ending: Remainder of Fiscal 2023 $ 432 Fiscal 2024 1,416 Fiscal 2025 1,096 Fiscal 2026 555 Total estimated remaining amortization expense at March 31, 2023 $ 3,499 |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt On September 9, 2021, the Company and our primary U.S. and Canada operating subsidiaries entered into an asset-based credit agreement, which was amended on October 5, 2022 (as amended, the "ABL Facility"), with Bank of Montreal, as Administrative Agent, Swing Line Lender and a Letter of Credit Issuer, and the lenders named therein. The maximum amount of loans under the ABL Facility is limited to $90.0 million. The ABL Facility's available borrowings may be increased by an amount not to exceed $15.0 million, subject to certain conditions, including obtaining additional commitments. The ABL Facility is intended to be used for working capital, capital expenditures, issuances of letters of credit and other lawful purposes. Our obligations under the ABL Facility are guaranteed by substantially all of our U.S. and Canadian subsidiaries and are secured by a first lien on all our assets and the assets of our co-borrowers and guarantors under the ABL Facility. The maximum amount that we may borrow under the ABL Facility is subject to a borrowing base, which is based on restricted cash plus a percentage of the value of certain accounts receivable, inventory and equipment, reduced for certain reserves. We are required to maintain a minimum of $25.0 million of restricted cash at all times, but such amounts are also included in the borrowing base. The ABL Facility matures, and any outstanding amounts become due and payable, on September 9, 2026. At March 31, 2023, our borrowing base was $78.5 million, we had $15.0 million of outstanding borrowings, and we had $19.3 million in letters of credit outstanding, which resulted in availability of $44.2 million under the ABL Facility. Borrowings under the ABL Facility bear interest through maturity at a variable rate based upon, at our option, an annual rate of either a base rate (“Base Rate”), an Adjusted Term Secured Overnight Financing Rate ("Adjusted Term SOFR"), or at the Canadian Prime Rate, plus an applicable margin. The Adjusted Term SOFR is defined as (i) the SOFR plus (ii) 11.448 basis points for a one-month tenor and 26.161 basis points for a three-month tenor; provided that the Adjusted Term SOFR cannot be below zero. The Base Rate is defined as a fluctuating interest rate equal to the greater of: (i) rate of interest announced by Bank of Montreal from time to time as its prime rate; (ii) the U.S. federal funds rate plus 0.50%; (iii) Adjusted Term SOFR for one month period plus 1.00%; or (iv) 1.00%. Depending on the amount of average availability, the applicable margin is between 1.00% to 1.50% for Base Rate and Canadian Prime Rate borrowings, which includes either U.S. or Canadian prime rate, and between 2.00% and 2.50% for Adjusted Term SOFR borrowings. Interest is payable either (i) monthly for Base Rate or Canadian Prime Rate borrowings or (ii) the last day of the interest period for Adjusted Term SOFR borrowings, as set forth in the ABL Facility. The fee for undrawn amounts is 0.25% per annum and is due quarterly. The interest rate in effect for borrowings outstanding at March 31, 2023, including applicable margin, was approximately 7.17%. The ABL Facility contains customary conditions to borrowings, events of default and covenants, including, but not limited to, covenants that restrict our ability to sell assets, engage in mergers and acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay cash dividends, issue equity instruments, make distribution or redeem or repurchase capital stock. In the event that our availability is less than the greater of (i) $15.0 million and (ii) 15.00% of the commitments under the ABL Facility then in effect, a consolidated Fixed Charge Coverage Ratio of at least 1.00 to 1.00 must be maintained. We were in compliance with all covenants of the ABL Facility as of March 31, 2023. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes Effective Tax Rate Our effective tax rates were 2.8% and 0.7% for the three and nine months ended March 31, 2023, compared to 0.4% and (7.8%) during the three and nine months ended March 31, 2022, respectively. The effective tax rates during fiscal 2023 were impacted by valuation allowances of $3.6 million and $13.3 million placed on deferred tax assets during the three and nine months ended March 31, 2023, respectively. Valuation Allowance We placed a valuation allowance on our deferred tax assets in the second quarter of fiscal 2022 due to the existence of a cumulative loss over a three-year period. We will continue to place valuation allowances on newly generated deferred tax assets and will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided to the extent we generate taxable income in the future, or cumulative losses are no longer present and our future projections for growth or tax planning strategies are demonstrated. Net Operating Loss Carryback Refund Through provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (the "CARES Act"), we had an income tax benefit from the ability to carryback the fiscal 2021 federal net operating loss to a period with a higher statutory federal income tax rate. During the third quarter of fiscal 2023, we received a $13.3 million tax refund in connection with this carryback, which was included in income taxes receivable in the Condensed Consolidated Balance Sheet as of June 30, 2022. Deferred Payroll Taxes During the second quarter of fiscal 2023, we repaid the remaining $5.6 million of U.S. payroll taxes we deferred through provisions of the CARES Act. The balance of deferred payroll taxes was included within accrued wages and benefits in the Condensed Consolidated Balance Sheet as of June 30, 2022. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Insurance Reserves We maintain insurance coverage for various aspects of our operations. However, we retain exposure to potential losses through the use of deductibles, self-insured retentions and coverage limits. Typically, our contracts require us to indemnify our customers for injury, damage or loss arising from the performance of our services and provide warranties for materials and workmanship. We may also be required to name the customer as an additional insured up to the limits of insurance available, or we may be required to purchase special insurance policies or surety bonds for specific customers or provide letters of credit in lieu of bonds to satisfy performance and financial guarantees on some projects. We maintain a performance and payment bonding line sufficient to support the business. We generally require our subcontractors to indemnify us and our customer and name us as an additional insured for activities arising out of the subcontractors’ work. We also require certain subcontractors to provide additional insurance policies, including surety bonds in favor of us, to secure the subcontractors’ work or as required by the subcontract. There can be no assurance that our insurance and the additional insurance coverage provided by our subcontractors will fully protect us against a valid claim or loss under the contracts with our customers. Unpriced Change Orders and Claims Costs and estimated earnings in excess of billings on uncompleted contracts included revenues for unpriced change orders and claims of $14.7 million at March 31, 2023 and $8.9 million at June 30, 2022. The amounts ultimately realized may be significantly different than the recorded amounts resulting in a material adjustment to future earnings. The determination of our legal basis for a claim requires significant judgment. Generally, collection of amounts related to unpriced change orders and claims is expected within twelve months. However, since customers may not pay these amounts until final resolution of related claims, collection of these amounts may extend beyond one year. Other During the third quarter of fiscal 2020, we commenced litigation in an effort to collect accounts receivable from an iron and steel customer following the deterioration of the relationship in the second quarter of fiscal 2020. The unpaid account receivable balance at March 31, 2023 was $17.0 million. Litigation is unpredictable; however, based on the terms of the contract with this customer, we believe we are entitled to collect the full amount owed under the contract. We are participants in various legal actions. It is the opinion of management that none of the other known legal actions will have a material impact on our financial position, results of operations or liquidity. |
Earnings per Common Share (Note
Earnings per Common Share (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share (“Diluted EPS”) includes the dilutive effect of stock options and nonvested deferred shares. In the event we report a loss, stock options and nonvested deferred shares are not included since they are anti-dilutive. The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net loss $ (12,686) $ (34,899) $ (52,025) $ (77,356) Weighted average shares outstanding 27,038 26,783 26,969 26,714 Basic loss per share $ (0.47) $ (1.30) $ (1.93) $ (2.90) Diluted EPS: Net loss $ (12,686) $ (34,899) $ (52,025) $ (77,356) Diluted weighted average shares outstanding 27,038 26,783 26,969 26,714 Diluted loss per share $ (0.47) $ (1.30) $ (1.93) $ (2.90) The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Nonvested deferred shares 133 34 81 110 |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We report our results of operations through three reportable segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions. • Utility and Power Infrastructure : consists of power delivery services provided to investor-owned utilities, including construction of new substations, upgrades of existing substations, transmission and distribution line installations, upgrades and maintenance, as well as emergency and storm restoration services. We also provide engineering, fabrication, and construction services for LNG utility peak shaving facilities, and provide construction and maintenance services to a variety of power generation facilities, including natural gas fired facilities in simple or combined cycle configuration. • Process and Industrial Facilities : primarily serves customers in the downstream and midstream petroleum industries who are engaged in refining crude oil and processing, fractionating, and marketing of natural gas and natural gas liquids. We also serve customers in various other industries such as petrochemical, sulfur, mining and minerals companies engaged primarily in the extraction of non-ferrous metals, aerospace and defense, cement, agriculture, and other industrial customers. Our services include plant maintenance, turnarounds, industrial cleaning services, engineering, fabrication, and capital construction. • Storage and Terminal Solutions : consists of work related to aboveground crude oil and refined product storage tanks and terminals. We also include work related to cryogenic and other specialty storage tanks and terminals, including LNG, liquid nitrogen/liquid oxygen, liquid petroleum, hydrogen and other specialty vessels such as spheres in this segment, as well as work related to marine structures and truck and rail loading/offloading facilities. Our services include engineering, fabrication, construction, and maintenance and repair, which includes planned and emergency services for both tanks and full terminals. Finally, we offer tank products, including geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems and floating roof seals. We evaluate performance and allocate resources based on operating income. We eliminate intersegment sales; therefore, no intercompany profit or loss is recognized. Corporate selling, general and administrative expenses are excluded from our three reportable segments in order to align controllable costs with the responsibility of segment management, and to be consistent with how our chief operating decision-maker assesses segment performance and allocates resources. In fiscal year 2022, we commenced a project to centralize and standardize certain support functions including accounting, human resources and project support. These centralized support functions are now included in corporate selling, general and administrative expense, but were previously included in our operating segment selling, general and administrative expense. Segment assets consist primarily of accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts, property, plant and equipment, right-of-use lease assets, goodwill and other intangible assets. Results of Operations (In thousands) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross revenue Utility and Power Infrastructure $ 35,024 $ 59,341 $ 130,483 $ 171,298 Process and Industrial Facilities 99,706 69,786 267,232 167,033 Storage and Terminal Solutions 53,871 49,254 194,291 175,174 Total gross revenue $ 188,601 $ 178,381 $ 592,006 $ 513,505 Less: Inter-segment revenue Utility and Power Infrastructure $ — $ — $ 54 $ — Process and Industrial Facilities — 815 109 3,841 Storage and Terminal Solutions 1,706 563 2,677 2,603 Total inter-segment revenue $ 1,706 $ 1,378 $ 2,840 $ 6,444 Consolidated revenue Utility and Power Infrastructure $ 35,024 $ 59,341 $ 130,429 $ 171,298 Process and Industrial Facilities 99,706 68,971 267,123 163,192 Storage and Terminal Solutions 52,165 48,691 191,614 172,571 Total consolidated revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 Gross profit (loss) Utility and Power Infrastructure $ 2,790 $ (492) $ 6,929 $ (7,089) Process and Industrial Facilities 3,160 (441) 2,359 6,663 Storage and Terminal Solutions (810) (458) 8,403 (216) Corporate (721) (372) (1,566) (1,422) Total gross profit (loss) $ 4,419 $ (1,763) $ 16,125 $ (2,064) Selling, general and administrative expenses Utility and Power Infrastructure $ 1,869 $ 2,910 $ 5,394 $ 9,109 Process and Industrial Facilities 3,556 3,198 11,308 8,752 Storage and Terminal Solutions 5,735 4,063 15,342 12,850 Corporate 5,702 6,870 19,174 18,881 Total selling, general and administrative expenses $ 16,862 $ 17,041 $ 51,218 $ 49,592 Goodwill impairment and restructuring costs Utility and Power Infrastructure $ — $ 2,659 $ 37 $ 2,705 Process and Industrial Facilities 106 6,856 13,119 6,839 Storage and Terminal Solutions 79 7,219 984 7,293 Corporate 131 — 1,057 1,197 Total goodwill impairment and restructuring costs $ 316 $ 16,734 $ 15,197 $ 18,034 Operating income (loss) Utility and Power Infrastructure $ 921 $ (6,061) $ 1,498 $ (18,903) Process and Industrial Facilities (502) (10,495) (22,068) (8,928) Storage and Terminal Solutions (6,624) (11,740) (7,923) (20,359) Corporate (6,554) (7,242) (21,797) (21,500) Total operating loss $ (12,759) $ (35,538) $ (50,290) $ (69,690) Total assets by segment were as follows (in thousands): March 31, June 30, Utility and Power Infrastructure $ 77,211 $ 94,059 Process and Industrial Facilities 124,979 104,078 Storage and Terminal Solutions 141,263 141,084 Corporate 82,494 101,572 Total segment assets $ 425,947 $ 440,793 |
Restructuring Costs (Notes)
Restructuring Costs (Notes) | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In fiscal 2020, we initiated a business improvement plan to increase profitability and reduce our cost structure in order to help us become more competitive and deliver higher quality service. As a result of specific events, including the effects of the COVID-19 pandemic and related market disruptions, the Company expanded its business improvement plan. The business improvement plan consists of an initial phase of discretionary cost reductions, workforce reductions, reduction of capital expenditures and the reduction in size or closure of certain offices in order to increase the utilization of our staff and bring the cost structure of the business in line with revenue volumes. In fiscal 2022, we commenced a second phase of our plan to focus on centralization of support functions, including business development, accounting, human resources, procurement and project services into shared service centers. During the second quarter of fiscal 2023, we closed an underperforming office and ceased its associated operations, which resulted in $0.7 million of restructuring costs. We expect to complete these restructuring efforts in fiscal 2023 or early fiscal 2024. The restructuring costs consist primarily of severance costs, facility closure costs, consulting fees and other liabilities. Restructuring costs under our business improvement plan are classified as follows: Three Months Ended Nine Months Ended Since Inception of Business Improvement Plan March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 (In thousands) Restructuring Costs by Type: Severance and other personnel-related costs $ 251 $ — $ 2,563 $ 136 $ 17,477 Facility costs 50 12 179 29 4,709 Other intangible asset impairments — — — — 1,525 Other costs 15 (1,590) 139 (443) 582 Total restructuring costs $ 316 $ (1,578) $ 2,881 $ (278) $ 24,293 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Contract with Customer, Asset and Liability [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table provides information about CIE and BIE: March 31, June 30, Change (in thousands) Costs and estimated earnings in excess of billings on uncompleted contracts $ 53,398 $ 44,752 $ 8,646 Billings on uncompleted contracts in excess of costs and estimated earnings (114,729) (65,106) (49,623) Net contract liabilities $ (61,331) $ (20,354) $ (40,977) |
Disaggregation of Revenue [Line Items] | |
Revenue from External Customers by Geographic Areas | The following tables presents revenue disaggregated by geographic area where the work was performed and by contract type: Geographic Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) United States $ 178,261 $ 160,453 $ 524,731 $ 459,654 Canada 6,932 16,268 52,742 45,038 Other international 1,702 282 11,693 2,369 Total Revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 |
Revenue from External Customers by Contract Type | Contract Type Disaggregation: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Fixed-price contracts $ 96,755 $ 100,602 $ 311,511 $ 303,508 Time and materials and other cost reimbursable contracts 90,140 76,401 277,655 203,553 Total Revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following table presents the components of our property, plant and equipment - net at March 31, 2023 and June 30, 2022: March 31, June 30, (In thousands) Property, plant and equipment - at cost: Land and buildings $ 36,458 $ 34,788 Construction equipment 90,308 93,036 Transportation equipment 47,863 48,999 Office equipment and software 38,456 43,823 Construction in progress 3,155 1,646 Total property, plant and equipment - at cost 216,240 222,292 Accumulated depreciation (165,699) (168,423) Property, plant and equipment - net $ 50,541 $ 53,869 |
Intangible Assets Including G_2
Intangible Assets Including Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying value of goodwill by segment are as follows: Utility and Power Infrastructure Process and Industrial Facilities Storage and Terminal Solutions Total (In thousands) Net balance at June 30, 2022 $ 4,263 $ 18,427 $ 19,445 $ 42,135 Goodwill impairment — (12,316) — (12,316) Translation adjustment (1) (36) — (71) (107) Net balance at March 31, 2023 $ 4,227 $ 6,111 $ 19,374 $ 29,712 (1) The translation adjustments relate to the periodic translation of Canadian Dollar and South Korean Won denominated goodwill recorded as a part of prior acquisitions in Canada and South Korea, in which the local currency was determined to be the functional currency. |
Schedule Of Intangible Assets Excluding Goodwill Table [Text Block] | Information on the carrying value of other intangible assets is as follows: At March 31, 2023 Useful Life Gross Carrying Accumulated Net Carrying (Years) (In thousands) Intellectual property 10 to 15 $ 2,483 $ (2,328) $ 155 Customer-based (1) 6 to 15 13,144 (9,800) 3,344 Total amortizing intangible assets $ 15,627 $ (12,128) $ 3,499 (1) Customer-based intangible assets have been adjusted in fiscal 2023 to remove $4.2 million of customer relationships that have been fully amortized. At June 30, 2022 Useful Life Gross Carrying Accumulated Net Carrying (Years) (In thousands) Intellectual property 10 to 15 $ 2,558 $ (2,276) $ 282 Customer-based 6 to 15 17,331 (12,817) 4,514 Total amortizing intangible assets $ 19,889 $ (15,093) $ 4,796 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | We estimate that the remaining amortization expense related to March 31, 2023 amortizing intangible assets will be as follows (in thousands): Period ending: Remainder of Fiscal 2023 $ 432 Fiscal 2024 1,416 Fiscal 2025 1,096 Fiscal 2026 555 Total estimated remaining amortization expense at March 31, 2023 $ 3,499 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands, except per share data) Basic EPS: Net loss $ (12,686) $ (34,899) $ (52,025) $ (77,356) Weighted average shares outstanding 27,038 26,783 26,969 26,714 Basic loss per share $ (0.47) $ (1.30) $ (1.93) $ (2.90) Diluted EPS: Net loss $ (12,686) $ (34,899) $ (52,025) $ (77,356) Diluted weighted average shares outstanding 27,038 26,783 26,969 26,714 Diluted loss per share $ (0.47) $ (1.30) $ (1.93) $ (2.90) |
Antidilutive Securities Excluded from the Calculation of Diluted EPS | The following securities are considered antidilutive and have been excluded from the calculation of Diluted EPS: Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, (In thousands) Nonvested deferred shares 133 34 81 110 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Results of Operations | Results of Operations (In thousands) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, Gross revenue Utility and Power Infrastructure $ 35,024 $ 59,341 $ 130,483 $ 171,298 Process and Industrial Facilities 99,706 69,786 267,232 167,033 Storage and Terminal Solutions 53,871 49,254 194,291 175,174 Total gross revenue $ 188,601 $ 178,381 $ 592,006 $ 513,505 Less: Inter-segment revenue Utility and Power Infrastructure $ — $ — $ 54 $ — Process and Industrial Facilities — 815 109 3,841 Storage and Terminal Solutions 1,706 563 2,677 2,603 Total inter-segment revenue $ 1,706 $ 1,378 $ 2,840 $ 6,444 Consolidated revenue Utility and Power Infrastructure $ 35,024 $ 59,341 $ 130,429 $ 171,298 Process and Industrial Facilities 99,706 68,971 267,123 163,192 Storage and Terminal Solutions 52,165 48,691 191,614 172,571 Total consolidated revenue $ 186,895 $ 177,003 $ 589,166 $ 507,061 Gross profit (loss) Utility and Power Infrastructure $ 2,790 $ (492) $ 6,929 $ (7,089) Process and Industrial Facilities 3,160 (441) 2,359 6,663 Storage and Terminal Solutions (810) (458) 8,403 (216) Corporate (721) (372) (1,566) (1,422) Total gross profit (loss) $ 4,419 $ (1,763) $ 16,125 $ (2,064) Selling, general and administrative expenses Utility and Power Infrastructure $ 1,869 $ 2,910 $ 5,394 $ 9,109 Process and Industrial Facilities 3,556 3,198 11,308 8,752 Storage and Terminal Solutions 5,735 4,063 15,342 12,850 Corporate 5,702 6,870 19,174 18,881 Total selling, general and administrative expenses $ 16,862 $ 17,041 $ 51,218 $ 49,592 Goodwill impairment and restructuring costs Utility and Power Infrastructure $ — $ 2,659 $ 37 $ 2,705 Process and Industrial Facilities 106 6,856 13,119 6,839 Storage and Terminal Solutions 79 7,219 984 7,293 Corporate 131 — 1,057 1,197 Total goodwill impairment and restructuring costs $ 316 $ 16,734 $ 15,197 $ 18,034 Operating income (loss) Utility and Power Infrastructure $ 921 $ (6,061) $ 1,498 $ (18,903) Process and Industrial Facilities (502) (10,495) (22,068) (8,928) Storage and Terminal Solutions (6,624) (11,740) (7,923) (20,359) Corporate (6,554) (7,242) (21,797) (21,500) Total operating loss $ (12,759) $ (35,538) $ (50,290) $ (69,690) Total assets by segment were as follows (in thousands): March 31, June 30, Utility and Power Infrastructure $ 77,211 $ 94,059 Process and Industrial Facilities 124,979 104,078 Storage and Terminal Solutions 141,263 141,084 Corporate 82,494 101,572 Total segment assets $ 425,947 $ 440,793 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Restructuring costs under our business improvement plan are classified as follows: Three Months Ended Nine Months Ended Since Inception of Business Improvement Plan March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 (In thousands) Restructuring Costs by Type: Severance and other personnel-related costs $ 251 $ — $ 2,563 $ 136 $ 17,477 Facility costs 50 12 179 29 4,709 Other intangible asset impairments — — — — 1,525 Other costs 15 (1,590) 139 (443) 582 Total restructuring costs $ 316 $ (1,578) $ 2,881 $ (278) $ 24,293 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Revenue, Performance Obligation [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 542,700 | $ 542,700 | |||
Performance obligations to be recognized as revenue within next twelve months | 432,700 | 432,700 | |||
Contract with Customer, Asset and Liability [Abstract] | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 53,398 | 53,398 | $ 44,752 | ||
Change in CIE | 8,646 | ||||
Billings on uncompleted contracts in excess of costs and estimated earnings | (114,729) | (114,729) | (65,106) | ||
Change in BIE | (49,623) | ||||
Contract with customer, current liability, net | (61,331) | (61,331) | (20,354) | ||
Change in net contract balances | (40,977) | ||||
Contract with Customer, Liability, Revenue Recognized | 57,000 | ||||
Disclosure Customer Contracts Additional Information [Abstract] | |||||
Construction Contractor, Receivable, Retainage, Year One | 18,900 | 18,900 | 16,100 | ||
Construction Contractor, Receivable, Retainage, after Year One | 7,800 | 7,800 | $ 4,000 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 186,895 | $ 177,003 | 589,166 | $ 507,061 | |
Process and Industrial Facilities | |||||
Disaggregation of Revenue [Line Items] | |||||
Loss on Contracts | 3,300 | 4,800 | 12,700 | ||
Utility and Power Infrastructure | |||||
Disaggregation of Revenue [Line Items] | |||||
Loss on Contracts | 800 | 5,100 | |||
Storage and Terminal Solutions | |||||
Disaggregation of Revenue [Line Items] | |||||
Loss on Contracts | 5,500 | ||||
Fixed-price Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 96,755 | 100,602 | 311,511 | 303,508 | |
Time-and-materials Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 90,140 | 76,401 | 277,655 | 203,553 | |
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 178,261 | 160,453 | 524,731 | 459,654 | |
Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | 6,932 | 16,268 | 52,742 | 45,038 | |
Other international | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from Contract with Customer | $ 1,702 | $ 282 | $ 11,693 | $ 2,369 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment, Gross [Abstract] | ||
Land and buildings | $ 36,458 | $ 34,788 |
Construction equipment | 90,308 | 93,036 |
Transportation equipment | 47,863 | 48,999 |
Office equipment and software | 38,456 | 43,823 |
Construction in progress | 3,155 | 1,646 |
Total property, plant and equipment - at cost | 216,240 | 222,292 |
Accumulated depreciation | (165,699) | (168,423) |
Property, plant and equipment, net | $ 50,541 | $ 53,869 |
Intangible Assets Including G_3
Intangible Assets Including Goodwill - Carrying Value of Goodwill By Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill [Line Items] | ||
Goodwill | $ 29,712 | |
Goodwill [Roll Forward] | ||
Net balance at June 30, 2022 | 42,135 | |
Goodwill impairment | (12,316) | $ (18,300) |
Translation adjustment | (107) | |
Net balance at March 31, 2023 | 29,712 | |
Goodwill Attributable To Reporting Units At Risk For Impairment | 33,800 | |
Utility and Power Infrastructure | ||
Goodwill [Line Items] | ||
Goodwill | 4,227 | |
Goodwill [Roll Forward] | ||
Net balance at June 30, 2022 | 4,263 | |
Goodwill impairment | 0 | |
Translation adjustment | (36) | |
Net balance at March 31, 2023 | 4,227 | |
Process and Industrial Facilities | ||
Goodwill [Line Items] | ||
Goodwill | 6,111 | |
Goodwill [Roll Forward] | ||
Net balance at June 30, 2022 | 18,427 | |
Goodwill impairment | (12,316) | |
Translation adjustment | 0 | |
Net balance at March 31, 2023 | 6,111 | |
Storage and Terminal Solutions | ||
Goodwill [Line Items] | ||
Goodwill | 19,374 | |
Goodwill [Roll Forward] | ||
Net balance at June 30, 2022 | 19,445 | |
Goodwill impairment | 0 | |
Translation adjustment | (71) | |
Net balance at March 31, 2023 | $ 19,374 |
Intangible Assets Including G_4
Intangible Assets Including Goodwill - Carrying Value of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 15,627 | $ 15,627 | $ 19,889 | ||
Accumulated Amortization | (12,128) | (12,128) | (15,093) | ||
Net Carrying Amount | 3,499 | 3,499 | 4,796 | ||
Total intangible assets, net carrying amount | 3,499 | 3,499 | 4,796 | ||
Gross Amount Of Fully Amortized Intangible Assets | 4,200 | ||||
Amortization of Intangible Assets | 400 | $ 400 | 1,300 | $ 1,400 | |
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 2,483 | 2,483 | 2,558 | ||
Accumulated Amortization | (2,328) | (2,328) | (2,276) | ||
Net Carrying Amount | 155 | $ 155 | 282 | ||
Intellectual Property [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Intellectual Property [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | 13,144 | $ 13,144 | 17,331 | ||
Accumulated Amortization | (9,800) | (9,800) | (12,817) | ||
Net Carrying Amount | $ 3,344 | $ 3,344 | $ 4,514 | ||
Customer Relationships [Member] | Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 6 years | 6 years | |||
Customer Relationships [Member] | Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years |
Intangible Assets Including G_5
Intangible Assets Including Goodwill Future Expected Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 432 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Year | 1,416 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,096 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 555 | |
Finite-Lived Intangible Assets, Net | $ 3,499 | $ 4,796 |
Line of Credit Facility (Detail
Line of Credit Facility (Details) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Debt Disclosure [Abstract] | ||
Line of Credit Facility, Initiation Date | Sep. 09, 2021 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 90,000 | |
Line of Credit Facility, Increase (Decrease), Net | 15,000 | |
Compensating Balance, Amount | $ 25,000 | |
Line of Credit Facility, Expiration Date | Sep. 09, 2026 | |
Line of Credit Facility, Current Borrowing Capacity | $ 78,500 | |
Borrowings under asset-backed credit facility | 15,000 | $ 15,000 |
Letters of Credit Outstanding, Amount | 19,300 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 44,200 | |
Asset Backed Credit Facility Adjusted Term SOFR One Month Add On | 11.448 | |
Asset Backed Credit Facility Adjusted Term SOFR Three Month Add On | 26.161 | |
Asset Backed Credit Facility, Federal Funds Rate Addition | 0.0050 | |
Asset Backed Credit Facility Adjusted Term SOFR Rate Minimum | 0.0100 | |
Alternate Base Rate Margin | 0.0100 | |
Additional Margin on alternate base rate loans, Minimum | 1% | |
Additional Margin on alternate base rate loans, Maximum | 1.50% | |
Additional Margin On Adjusted Term SOFR Minimum | 0.0200 | |
Additional Margin On Adjusted Term SOFR Maximum | 0.0250 | |
Unused Credit Facility Fee | 0.25% | |
Line of Credit Facility, Interest Rate at Period End | 7.17% | |
Asset Backed Line of Credit Balance Limit for Fixed Charge Coverage Ratio | $ 15,000 | |
Asset Backed Line of Credit Percentage Limit for Fixed Charge Coverage Ratio | 15% | |
Asset Backed Credit Facility Fixed Charge Coverage Ratio Requirement, Minimum | 1 | |
Asset Backed Credit Facility Fixed Charge Coverage Ratio Requirement, Maximum | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 2.80% | 0.40% | 0.70% | (7.80%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 3.6 | $ 13.3 | ||
Increase (Decrease) in Income Taxes Receivable | 13.3 | |||
CARES Act Deferred Payroll Tax Liability | $ 5.6 | $ 5.6 | ||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 2.80% | 0.40% | 0.70% | (7.80%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 3.6 | $ 13.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Jun. 30, 2022 |
Project Unapproved Change Orders and Claims [Line Items] | ||
Unapproved change orders and claims | $ 14.7 | $ 8.9 |
Loss Contingencies [Line Items] | ||
Contracts Receivable, Claims and Uncertain Amounts | $ 17 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, Basic [Abstract] | ||||
Net loss | $ (12,686) | $ (34,899) | $ (52,025) | $ (77,356) |
Weighted average shares outstanding - basic (shares) | 27,038 | 26,783 | 26,969 | 26,714 |
Basic EPS (US$ per share) | $ (0.47) | $ (1.30) | $ (1.93) | $ (2.90) |
Earnings Per Share, Diluted [Abstract] | ||||
Diluted weighted average shares (shares) | 27,038 | 26,783 | 26,969 | 26,714 |
Diluted EPS (US$ per share) | $ (0.47) | $ (1.30) | $ (1.93) | $ (2.90) |
Earnings per Common Share - Ant
Earnings per Common Share - Antidilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total antidilutive securities | 133 | 34 | 81 | 110 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 188,601 | $ 178,381 | $ 592,006 | $ 513,505 | |
Revenue | 186,895 | 177,003 | 589,166 | 507,061 | |
Gross profit (loss) | 4,419 | (1,763) | 16,125 | (2,064) | |
Selling, general and administrative expenses | 16,862 | 17,041 | 51,218 | 49,592 | |
Goodwill impairment and restructuring costs | 316 | 16,734 | 15,197 | 18,034 | |
Operating loss | (12,759) | (35,538) | (50,290) | (69,690) | |
Segment assets | 425,947 | 425,947 | $ 440,793 | ||
Utility and Power Infrastructure | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 35,024 | 59,341 | 130,483 | 171,298 | |
Revenue | 35,024 | 59,341 | 130,429 | 171,298 | |
Gross profit (loss) | 2,790 | (492) | 6,929 | (7,089) | |
Selling, general and administrative expenses | 1,869 | 2,910 | 5,394 | 9,109 | |
Goodwill impairment and restructuring costs | 0 | 2,659 | 37 | 2,705 | |
Operating loss | 921 | (6,061) | 1,498 | (18,903) | |
Segment assets | 77,211 | 77,211 | 94,059 | ||
Process and Industrial Facilities | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 99,706 | 69,786 | 267,232 | 167,033 | |
Revenue | 99,706 | 68,971 | 267,123 | 163,192 | |
Gross profit (loss) | 3,160 | (441) | 2,359 | 6,663 | |
Selling, general and administrative expenses | 3,556 | 3,198 | 11,308 | 8,752 | |
Goodwill impairment and restructuring costs | 106 | 6,856 | 13,119 | 6,839 | |
Operating loss | (502) | (10,495) | (22,068) | (8,928) | |
Segment assets | 124,979 | 124,979 | 104,078 | ||
Storage and Terminal Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 53,871 | 49,254 | 194,291 | 175,174 | |
Revenue | 52,165 | 48,691 | 191,614 | 172,571 | |
Gross profit (loss) | (810) | (458) | 8,403 | (216) | |
Selling, general and administrative expenses | 5,735 | 4,063 | 15,342 | 12,850 | |
Goodwill impairment and restructuring costs | 79 | 7,219 | 984 | 7,293 | |
Operating loss | (6,624) | (11,740) | (7,923) | (20,359) | |
Segment assets | 141,263 | 141,263 | 141,084 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Gross profit (loss) | (721) | (372) | (1,566) | (1,422) | |
Selling, general and administrative expenses | 5,702 | 6,870 | 19,174 | 18,881 | |
Goodwill impairment and restructuring costs | 131 | 0 | 1,057 | 1,197 | |
Operating loss | (6,554) | (7,242) | (21,797) | (21,500) | |
Segment assets | 82,494 | 82,494 | $ 101,572 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 1,706 | 1,378 | 2,840 | 6,444 | |
Intersegment Eliminations [Member] | Utility and Power Infrastructure | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 0 | 0 | 54 | 0 | |
Intersegment Eliminations [Member] | Process and Industrial Facilities | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | 0 | 815 | 109 | 3,841 | |
Intersegment Eliminations [Member] | Storage and Terminal Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Gross revenues | $ 1,706 | $ 563 | $ 2,677 | $ 2,603 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 39 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | |
Restructuring costs by type [Abstract] | |||||
Severance costs and other benefits | $ 251 | $ 0 | $ 2,563 | $ 136 | $ 17,477 |
Facility costs | 50 | 12 | 179 | 29 | 4,709 |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | 0 | 0 | 1,525 |
Other Restructuring Costs | 15 | (1,590) | 139 | (443) | 582 |
Restructuring costs | 316 | $ (1,578) | $ 2,881 | $ (278) | $ 24,293 |
Restructuring cost - closure of office in the second quarter of fiscal 2023 | $ 700 |