Gulf Island Fabrication, Inc. (NASDAQ: GIFI) (“Gulf Island”
or the “Company”), a leading steel fabricator and service
provider to the industrial and energy sectors, today announced
results for the second quarter 2023.
SECOND QUARTER 2023 SUMMARY (as compared to the
second quarter 2022)
- Revenue of $39.3 million, 9.5% increase y/y
- Consolidated net income of $1.1 million and EBITDA of $2.1
million, each including a loss of $1.9 million for the Shipyard
Division
- Services Division operating income and EBITDA of $3.3 million
and $3.8 million, respectively
- Fabrication Division operating income and EBITDA of $1.3
million and $2.1 million, respectively
- Cash and short-term investment balance of $40.2 million at June
30, 2023
Consolidated revenue for the second quarter 2023
was $39.3 million, compared to $35.9 million for the second quarter
2022. Consolidated net income for the second quarter 2023 was $1.1
million, compared to net income of $0.5 million for the second
quarter 2022. Consolidated EBITDA was $2.1 million for the second
quarter 2023, versus $1.8 million for the prior year period.
Consolidated income and EBITDA for the second quarter 2023 each
included a loss of $1.9 million for the Shipyard Division.
Consolidated income and EBITDA for the second quarter 2022 each
included a loss of $1.4 million for the Shipyard Division and a
gain of $3.4 million from the net impact of insurance recoveries
and costs associated with damage previously caused by Hurricane
Ida. See “Non-GAAP Measures” below for the Company’s definition of
EBITDA and reconciliations of the relevant EBITDA amount to the
most comparable GAAP measure.
MANAGEMENT COMMENTARY
“Our solid second quarter results reflect the
benefits of our favorable strategic positioning and strong
execution, as we generated another quarter of profitable growth in
Services and positive results in Fabrication,” said Richard Heo,
Gulf Island’s President and Chief Executive Officer. “Our Services
business benefited from strength in its core business and continued
contribution from Spark Safety, and remains on track for growth in
2023.”
“I continue to be extremely proud of our
Fabrication division’s performance, and our second quarter results
highlight the longer-term opportunity for this business,” continued
Heo. “Our small-scale fabrication volume is making a more
significant contribution to the fixed overhead of the overall
division and we remain well positioned to further grow our
small-scale fabrication business. While we were disappointed to
receive the cancellation notice for our large fabrication project,
the bidding environment for large projects continues to be
favorable given the attractive end market trends and limited
industry capacity, and we continue to pursue several attractive
project opportunities to mitigate the impact of the cancelled
contract.”
“Our operating results benefited from continued
growth and margin expansion for our Services division, with second
quarter Services operating margin of 13.4%, an increase of 290
basis points from the prior year,” stated Westley Stockton, Gulf
Island’s Chief Financial Officer. “We ended the quarter with over
$40 million in cash despite a temporary working capital increase
attributable to our cancelled large fabrication project. We will
continue to be disciplined in our working capital management and
remain confident that we have adequate financial flexibility to
support our growth objectives.”
“Our consistent execution against our strategic
initiatives, including our ability to maintain our skilled labor
headcount despite the challenging labor environment, has us well
positioned to benefit from the favorable demand trends in our core
Gulf Coast markets,” noted Heo. “We have built a stable and
profitable financial foundation through the growth of our services
and small-scale fabrication businesses, and we are excited by the
opportunities to continue to grow all parts of our business and
drive value for our stakeholders,” concluded Heo.
STRATEGIC UPDATE
During the second quarter, Gulf Island continued
to execute on the second phase of its strategic transformation,
which is focused on generating stable, profitable growth based on
pursuing new growth end markets, growing and diversifying its
services business, further strengthening project execution, and
expanding its skilled workforce, while continuing to pursue
opportunities in its traditional offshore markets. Some of the key
highlights during the second quarter 2023 are as follows:
Pursue traditional offshore
markets – Bidding activity for both services and
fabrication projects remains active in the Gulf of Mexico, driven
by stable oil prices and healthy customer balance sheets.
Pursue new growth end markets –
Gulf Island has a strong foundation to pursue new growth
opportunities in its core Gulf Coast region, primarily in the LNG,
petrochemical, and energy transition markets, and bidding activity
on large fabrication project opportunities remains active, driven
by strong industry fundamentals combined with limited industry
capacity.
Grow and diversify services
business – Gulf Island continues to expand its Services
business with second quarter revenues growing 10.3% compared to the
prior year, driven by organic growth in the division’s core
business as well as contribution from Spark Safety, the division’s
recently launched welding enclosures business line.
Further strengthen project execution and
maintain bidding discipline – Project execution and
bidding discipline remain a key priority given inflationary
pressures and challenges with the availability of skilled labor.
The improved operating results reflect higher volume levels
associated with small-scale fabrication and strong project
execution, and demonstrates the Company’s focus on maintaining
discipline in pursuing projects that provide adequate risk-adjusted
returns.
Expand skilled workforce – A
strong skilled workforce is critical to success in the services and
fabrication markets, particularly given the current competitive
industry-wide labor environment. Gulf Island has successfully
maintained its skilled labor headcount in Services and has proven
its ability to ramp up headcount in Fabrication with new project
awards, which places the Company in a strong position to continue
to grow the business.
SEGMENT RESULTS FOR SECOND QUARTER
2023
Services Segment – Revenue for
the second quarter 2023 was $24.5 million, an increase of 10.3%
compared to the second quarter 2022, due primarily to incremental
revenue associated with the division’s new Spark Safety business
line (commenced in the third quarter 2022) and higher activity for
the division’s core services business.
New project awards were $24.3 million for the
second quarter 2023, representing a 5.5% year-over-year increase,
and backlog totaled $1.1 million at June 30, 2023. The new
award growth was driven primarily by the Spark Safety business
line. See “Non-GAAP Measures” below for the Company’s definition of
new project awards and backlog.
Operating income was $3.3 million for the second
quarter 2023, compared to $2.3 million for the second quarter 2022.
EBITDA for the second quarter 2023 was $3.8 million (or 15.4% of
revenue), versus $2.7 million (or 12.3% of revenue) for the prior
year period. The improved operating results for 2023 compared to
2022 were the result of higher revenue and a more favorable project
margin mix, including the benefit of the division’s Spark Safety
business line. See “Non-GAAP Measures” below for the Company’s
definition of EBITDA and a reconciliation of the Services Division
operating income to EBITDA.
Fabrication Segment – Revenue
for the second quarter 2023 was $14.7 million, an increase of $3.9
million compared to the second quarter 2022, due primarily to
higher small-scale fabrication activity.
New project awards were $13.4 million for the
second quarter 2023, representing a 14.6% year-over-year increase,
and backlog totaled $9.9 million at June 30, 2023. The new
award growth was driven by higher small-scale fabrication work. In
February 2023, the Company received direction from its customer to
suspend all activities on the division’s large fabrication project
for offshore structures, and in July 2023, the customer cancelled
the contract. Backlog at June 30, 2023 reflects a reduction of
$76.1 million from March 31, 2023 for the estimated revenue amount
that will not be recognized due to the cancellation. See “Non-GAAP
Measures” below for the Company’s definition of new project awards
and backlog.
Operating income was $1.3 million for the second
quarter 2023, compared to $1.6 million for the second quarter 2022.
EBITDA for the second quarter 2023 was $2.1 million, versus $2.4
million for the prior year period. Operating income and EBITDA for
the second quarter 2022 each included a gain of $3.4 million from
the net impact of insurance recoveries and costs associated with
damage previously caused by Hurricane Ida. The improved operating
results for 2023 compared to 2022 (excluding the Hurricane Ida
impacts) were the result of higher revenue and a more favorable
project margin mix, and a decrease in the under-recovery of
overhead costs due to improved utilization of facilities and
resources and recoveries associated with the division’s large
fabrication project prior to its cancellation. See “Non-GAAP
Measures” below for the Company’s definition of EBITDA and a
reconciliation of the Fabrication Division operating income to
EBITDA.
Shipyard Segment – Revenue for
the second quarter 2023 was $0.4 million, a decrease of $2.6
million compared to the second quarter 2022. Revenue for both
quarters related entirely to the division’s seventy-vehicle ferry
and forty-vehicle ferry projects.
Operating loss was $1.9 million for the second
quarter 2023, compared to an operating loss of $1.4 million for the
second quarter 2022. Operating results for the second quarter 2023
included charges of $0.8 million on the division’s seventy-vehicle
ferry project and remaining forty-vehicle ferry project and charges
of $0.3 million associated with damage previously caused by
Hurricane Ida. Operating results for the second quarter 2023 and
2022 included vessel holding costs and legal and advisory fees of
$0.8 million and $1.2 million, respectively, associated with the
Company’s MPSV Litigation (defined below).
Corporate Segment – Operating
loss was $1.9 million for the second quarter 2023, compared to an
operating loss of $2.0 million for the second quarter 2022.
Segment Descriptions – The
Company’s divisions represent its reportable segments which are
“Services”, “Fabrication”, “Shipyard” and “Corporate”. The Services
Segment includes offshore and onshore services work performed at
customer facilities, including offshore platforms. The Fabrication
Segment includes all fabrication work performed on-site at the
Company’s facilities, including pull-through fabrication work for
the Services Segment. The Shipyard Segment includes two ferries
under construction that are nearing completion and holding costs
and legal fees associated with the Company’s contract dispute for
two multi-purpose supply vessels (“MPSV Litigation”). The Corporate
Segment includes costs that are not directly related to the
Company’s operating segments, including the costs of being a
publicly traded company.
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments
balance at June 30, 2023 was $40.2 million, including $1.2
million of restricted cash associated with outstanding letters of
credit. At June 30, 2023, the Company had no bank debt.
SECOND QUARTER 2023 CONFERENCE CALL
Gulf Island will hold a conference call on
Tuesday, August 8, 2023 at 4:00 p.m. Central Time (5:00 p.m.
Eastern Time) to discuss the Company’s financial results. The call
will be available by webcast and can be accessed on Gulf Island’s
website at www.gulfisland.com. Participants may also join the call
by dialing 1.877.550.1707 and requesting the “Gulf Island”
conference call. A replay of the webcast will be available on the
Company's website for seven days after the call.
ABOUT GULF ISLAND
Gulf Island is a leading fabricator of complex
steel structures and modules and provider of specialty services,
including project management, hookup, commissioning, repair,
maintenance, scaffolding, coatings, welding enclosures, civil
construction and staffing services to the industrial and energy
sectors. The Company’s customers include U.S. and, to a lesser
extent, international energy producers; refining, petrochemical,
LNG, industrial and power operators; and EPC companies. The Company
is headquartered in The Woodlands, Texas and its primary operating
facilities are located in Houma, Louisiana.
NON-GAAP MEASURES
This release includes certain non-GAAP measures,
including earnings before interest, taxes, depreciation and
amortization (“EBITDA”), new project awards and backlog. The
Company believes EBITDA is a useful supplemental measure as it
reflects the Company's operating results excluding the non-cash
impacts of depreciation and amortization. Reconciliations of the
relevant EBITDA amount to the most comparable GAAP measure are
presented under “Consolidated Results of Operations” and “Results
of Operations by Segment” below.
The Company believes new project awards and
backlog are useful supplemental measures as they represent work
that the Company is obligated to perform under its current
contracts. New project awards represent the expected revenue value
of contract commitments received during a given period, including
scope growth on existing contract commitments. Backlog represents
the unrecognized revenue value of new project awards, and at
June 30, 2023, was consistent with the value of remaining
performance obligations for contracts as determined under GAAP.
Non-GAAP measures are not intended to be
replacements or alternatives to GAAP measures, and investors are
urged to consider these non-GAAP measures in addition to, and not
in substitution for, measures prepared in accordance with GAAP. The
Company may present or calculate non-GAAP measures differently from
other companies.
CAUTIONARY STATEMENTS
This release contains forward-looking statements
in which the Company discusses its potential future performance.
Forward-looking statements, within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995, are all statements other than statements of historical facts,
such as projections or expectations relating to timing of delivery
of vessels related to the Active Retained Shipyard Contracts and
subsequent wind down of the Company’s Shipyard Division operations;
expected exposure in the event of an adverse outcome in the MPSV
Litigation; diversification and entry into new end markets;
improvement of risk profile; industry outlook; oil and gas prices;
timing of investment decisions and new project awards; cash flows
and cash balance; capital expenditures; liquidity; and tax rates.
The words “anticipates,” “may,” “can,” “plans,” “believes,”
“estimates,” “expects,” “projects,” “targets,” “intends,” “likely,”
“will,” “should,” “to be,” “potential” and any similar expressions
are intended to identify those assertions as forward-looking
statements.
The Company cautions readers that
forward-looking statements are not guarantees of future performance
and actual results may differ materially from those anticipated,
projected or assumed in the forward-looking statements. Important
factors that can cause its actual results to differ materially from
those anticipated in the forward-looking statements include: supply
chain disruptions (including global shipping and logistics
challenges), inflationary pressures, economic slowdowns and
recessions, banking industry disruptions, natural disasters, public
health crises (such as COVID-19), labor costs and geopolitical
conflicts (such as the conflict in Ukraine), and the related
volatility in oil and gas prices and other factors impacting the
global economy; cyclical nature of the oil and gas industry;
outcome of the MPSV Litigation and the Company’s ability to resolve
any other material legal proceedings; competition; reliance on
significant customers; competitive pricing and cost overruns on its
projects; performance of subcontractors and dependence on
suppliers; timing and its ability to secure and commence execution
of new project awards, including fabrication projects for refining,
petrochemical, LNG, industrial and sustainable energy end markets;
the Company’s ability to maintain and further improve project
execution; nature of its contract terms and customer adherence to
such terms; suspension or termination of projects; changes in
contract estimates; customer or subcontractor disputes; operating
dangers, weather events and limits on insurance coverage;
operability and adequacy of its major equipment; final assessment
of damage at the Company's Houma Facilities and the related
recovery of any insurance proceeds; its ability to raise additional
capital; its ability to amend or obtain new debt financing or
credit facilities on favorable terms; its ability to generate
sufficient cash flow; its ability to obtain letters of credit or
surety bonds and ability to meet any indemnification obligations
thereunder; consolidation of its customers; financial ability and
credit worthiness of its customers; adjustments to previously
reported profits or losses under the percentage-of-completion
method; its ability to employ a skilled workforce; loss of key
personnel; utilization of facilities or closure or consolidation of
facilities; failure of its safety assurance program; barriers to
entry into new lines of business; weather impacts to operations;
any future asset impairments; changes in trade policies of the U.S.
and other countries; compliance with regulatory and environmental
laws; lack of navigability of canals and rivers; systems and
information technology interruption or failure and data security
breaches; performance of partners in any future joint ventures and
other strategic alliances; shareholder activism; focus on
environmental, social and governance factors by institutional
investors and regulators; and other factors described under “Risk
Factors” in Part I, Item 1A of the Company’s 2022 Annual Report and
as may be further updated by subsequent filings with the SEC.
Additional factors or risks that the Company
currently deems immaterial, that are not presently known to the
Company or that arise in the future could also cause the Company’s
actual results to differ materially from its expected results.
Given these uncertainties, investors are cautioned that many of the
assumptions upon which the Company’s forward-looking statements are
based are likely to change after the date the forward-looking
statements are made, which it cannot control. Further, the Company
may make changes to its business plans that could affect its
results. The Company cautions investors that it undertakes no
obligation to publicly update or revise any forward-looking
statements, which speak only as of the date made, for any reason,
whether as a result of new information, future events or
developments, changed circumstances, or otherwise, and
notwithstanding any changes in its assumptions, changes in business
plans, actual experience or other changes.
COMPANY INFORMATION
Richard W. Heo |
Westley S. Stockton |
Chief Executive Officer |
Chief Financial Officer |
713.714.6100 |
713.714.6100 |
Consolidated Results of Operations(1) (in
thousands, except per share data) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
New project awards(2) |
|
$ |
37,274 |
|
|
$ |
37,628 |
|
|
$ |
35,534 |
|
|
$ |
74,902 |
|
|
$ |
63,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
39,326 |
|
|
$ |
62,168 |
|
|
$ |
35,902 |
|
|
$ |
101,494 |
|
|
$ |
64,588 |
|
Cost of revenue |
|
|
34,845 |
|
|
|
57,134 |
|
|
|
34,230 |
|
|
|
91,979 |
|
|
|
63,336 |
|
Gross profit(3) |
|
|
4,481 |
|
|
|
5,034 |
|
|
|
1,672 |
|
|
|
9,515 |
|
|
|
1,252 |
|
General and administrative expense(4) |
|
|
3,736 |
|
|
|
5,067 |
|
|
|
4,345 |
|
|
|
8,803 |
|
|
|
8,455 |
|
Other (income) expense, net(5) |
|
|
(4 |
) |
|
|
(361 |
) |
|
|
(3,206 |
) |
|
|
(365 |
) |
|
|
(2,754 |
) |
Operating income (loss) |
|
|
749 |
|
|
|
328 |
|
|
|
533 |
|
|
|
1,077 |
|
|
|
(4,449 |
) |
Interest (expense) income, net |
|
|
340 |
|
|
|
320 |
|
|
|
(18 |
) |
|
|
660 |
|
|
|
(58 |
) |
Income (loss) before income taxes |
|
|
1,089 |
|
|
|
648 |
|
|
|
515 |
|
|
|
1,737 |
|
|
|
(4,507 |
) |
Income tax (expense) benefit |
|
|
13 |
|
|
|
(7 |
) |
|
|
13 |
|
|
|
6 |
|
|
|
8 |
|
Net income (loss) |
|
$ |
1,102 |
|
|
$ |
641 |
|
|
$ |
528 |
|
|
$ |
1,743 |
|
|
$ |
(4,499 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss) per common share |
|
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.11 |
|
|
$ |
(0.29 |
) |
Consolidated EBITDA(2) (in thousands) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income
(loss) |
|
$ |
1,102 |
|
|
$ |
641 |
|
|
$ |
528 |
|
|
$ |
1,743 |
|
|
$ |
(4,499 |
) |
Less: Income tax (expense) benefit |
|
|
13 |
|
|
|
(7 |
) |
|
|
13 |
|
|
|
6 |
|
|
|
8 |
|
Less: Interest (expense) income, net |
|
|
340 |
|
|
|
320 |
|
|
|
(18 |
) |
|
|
660 |
|
|
|
(58 |
) |
Operating income (loss) |
|
|
749 |
|
|
|
328 |
|
|
|
533 |
|
|
|
1,077 |
|
|
|
(4,449 |
) |
Add: Depreciation and amortization |
|
|
1,392 |
|
|
|
1,333 |
|
|
|
1,273 |
|
|
|
2,725 |
|
|
|
2,524 |
|
EBITDA |
|
$ |
2,141 |
|
|
$ |
1,661 |
|
|
$ |
1,806 |
|
|
$ |
3,802 |
|
|
$ |
(1,925 |
) |
_________________
(1) |
See “Results of Operations by Segment” below for results by
segment. |
(2) |
New projects awards and EBITDA are non-GAAP measures. See “Non-GAAP
Measures” above for the Company’s definition of new project awards
and EBITDA. |
(3) |
Gross loss for the Shipyard Division for each of the three and six
months ended June 30, 2023, includes project charges of $0.8
million, and for the three months ended June 30, 2023, March 31,
2023 and June 30, 2022, and six months ended June 30, 2023 and
2022, includes vessel holding costs of $0.2 million, $0.2 million,
$0.2 million, $0.5 million and $0.4 million, respectively,
associated with the Company’s MPSV Litigation. |
(4) |
General and administrative expense for the Shipyard Division for
the three months ended June 30, 2023, March 31, 2023 and June 30,
2022, and six months ended June 30, 2023 and 2022, includes legal
and advisory fees of $0.5 million, $1.7 million, $1.0
million, $2.3 million and $1.7 million, respectively, associated
with the Company’s MPSV Litigation. |
(5) |
Other (income) expense for the Fabrication Division for the three
months ended March 31, 2023 and June 30, 2022, and six months ended
June 30, 2023 and 2022, includes gains of $0.2 million, $3.4
million, $0.2 million and $3.1 million, respectively, from the net
impact of insurance recoveries and costs associated with damage
previously caused by Hurricane Ida. Other (income) expense for the
Shipyard Division for the three months ended June 30, 2023, March
31, 2023 and June 30, 2022, and six months ended June 30, 2023 and
2022, includes charges of $0.3 million, $0.1 million, $0.2 million,
$0.3 million and $0.2 million, respectively, associated with damage
previously caused by Hurricane Ida. |
Results
of Operations by Segment (in thousands) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
Services Division |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
New project awards(1) |
|
$ |
24,330 |
|
|
$ |
21,472 |
|
|
$ |
23,060 |
|
|
$ |
45,802 |
|
|
$ |
42,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
24,470 |
|
|
$ |
21,587 |
|
|
$ |
22,180 |
|
|
$ |
46,057 |
|
|
$ |
42,844 |
|
Cost of revenue |
|
|
20,369 |
|
|
|
18,600 |
|
|
|
18,976 |
|
|
|
38,969 |
|
|
|
37,712 |
|
Gross profit |
|
|
4,101 |
|
|
|
2,987 |
|
|
|
3,204 |
|
|
|
7,088 |
|
|
|
5,132 |
|
General and administrative expense |
|
|
792 |
|
|
|
710 |
|
|
|
760 |
|
|
|
1,502 |
|
|
|
1,489 |
|
Other (income) expense, net |
|
|
40 |
|
|
|
(64 |
) |
|
|
109 |
|
|
|
(24 |
) |
|
|
121 |
|
Operating income |
|
$ |
3,269 |
|
|
$ |
2,341 |
|
|
$ |
2,335 |
|
|
$ |
5,610 |
|
|
$ |
3,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
3,269 |
|
|
$ |
2,341 |
|
|
$ |
2,335 |
|
|
$ |
5,610 |
|
|
$ |
3,522 |
|
Add: Depreciation and amortization |
|
|
496 |
|
|
|
442 |
|
|
|
386 |
|
|
|
938 |
|
|
|
746 |
|
EBITDA |
|
$ |
3,765 |
|
|
$ |
2,783 |
|
|
$ |
2,721 |
|
|
$ |
6,548 |
|
|
$ |
4,268 |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
Fabrication Division |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
New project awards(1) |
|
$ |
13,438 |
|
|
$ |
16,706 |
|
|
$ |
11,726 |
|
|
$ |
30,144 |
|
|
$ |
20,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
14,741 |
|
|
$ |
39,662 |
|
|
$ |
10,839 |
|
|
$ |
54,403 |
|
|
$ |
16,456 |
|
Cost of revenue |
|
|
13,177 |
|
|
|
37,200 |
|
|
|
12,208 |
|
|
|
50,377 |
|
|
|
19,846 |
|
Gross profit (loss) |
|
|
1,564 |
|
|
|
2,462 |
|
|
|
(1,369 |
) |
|
|
4,026 |
|
|
|
(3,390 |
) |
General and administrative expense |
|
|
470 |
|
|
|
520 |
|
|
|
567 |
|
|
|
990 |
|
|
|
1,192 |
|
Other (income) expense, net(2) |
|
|
(201 |
) |
|
|
(302 |
) |
|
|
(3,536 |
) |
|
|
(503 |
) |
|
|
(3,249 |
) |
Operating income (loss) |
|
$ |
1,295 |
|
|
$ |
2,244 |
|
|
$ |
1,600 |
|
|
$ |
3,539 |
|
|
$ |
(1,333 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
1,295 |
|
|
$ |
2,244 |
|
|
$ |
1,600 |
|
|
$ |
3,539 |
|
|
$ |
(1,333 |
) |
Add: Depreciation and amortization |
|
|
825 |
|
|
|
822 |
|
|
|
813 |
|
|
|
1,647 |
|
|
|
1,629 |
|
EBITDA |
|
$ |
2,120 |
|
|
$ |
3,066 |
|
|
$ |
2,413 |
|
|
$ |
5,186 |
|
|
$ |
296 |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
Shipyard Division |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
New project awards(1) |
|
$ |
(227 |
) |
|
$ |
(122 |
) |
|
$ |
833 |
|
|
$ |
(349 |
) |
|
$ |
833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
382 |
|
|
$ |
1,347 |
|
|
$ |
2,968 |
|
|
$ |
1,729 |
|
|
$ |
5,465 |
|
Cost of revenue |
|
|
1,566 |
|
|
|
1,762 |
|
|
|
3,131 |
|
|
|
3,328 |
|
|
|
5,955 |
|
Gross loss(3) |
|
|
(1,184 |
) |
|
|
(415 |
) |
|
|
(163 |
) |
|
|
(1,599 |
) |
|
|
(490 |
) |
General and administrative expense(4) |
|
|
537 |
|
|
|
1,713 |
|
|
|
1,000 |
|
|
|
2,250 |
|
|
|
1,746 |
|
Other (income) expense, net(5) |
|
|
227 |
|
|
|
75 |
|
|
|
221 |
|
|
|
302 |
|
|
|
336 |
|
Operating loss |
|
$ |
(1,948 |
) |
|
$ |
(2,203 |
) |
|
$ |
(1,384 |
) |
|
$ |
(4,151 |
) |
|
$ |
(2,572 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,948 |
) |
|
$ |
(2,203 |
) |
|
$ |
(1,384 |
) |
|
$ |
(4,151 |
) |
|
$ |
(2,572 |
) |
Add: Depreciation and amortization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA |
|
$ |
(1,948 |
) |
|
$ |
(2,203 |
) |
|
$ |
(1,384 |
) |
|
$ |
(4,151 |
) |
|
$ |
(2,572 |
) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
Corporate Division |
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
New project
awards (eliminations)(1) |
|
$ |
(267 |
) |
|
$ |
(428 |
) |
|
$ |
(85 |
) |
|
$ |
(695 |
) |
|
$ |
(177 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (eliminations) |
|
$ |
(267 |
) |
|
$ |
(428 |
) |
|
$ |
(85 |
) |
|
$ |
(695 |
) |
|
$ |
(177 |
) |
Cost of revenue |
|
|
(267 |
) |
|
|
(428 |
) |
|
|
(85 |
) |
|
|
(695 |
) |
|
|
(177 |
) |
Gross profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
General and administrative expense |
|
|
1,937 |
|
|
|
2,124 |
|
|
|
2,018 |
|
|
|
4,061 |
|
|
|
4,028 |
|
Other (income) expense, net |
|
|
(70 |
) |
|
|
(70 |
) |
|
|
- |
|
|
|
(140 |
) |
|
|
38 |
|
Operating loss |
|
$ |
(1,867 |
) |
|
$ |
(2,054 |
) |
|
$ |
(2,018 |
) |
|
$ |
(3,921 |
) |
|
$ |
(4,066 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,867 |
) |
|
$ |
(2,054 |
) |
|
$ |
(2,018 |
) |
|
$ |
(3,921 |
) |
|
$ |
(4,066 |
) |
Add: Depreciation and amortization |
|
|
71 |
|
|
|
69 |
|
|
|
74 |
|
|
|
140 |
|
|
|
149 |
|
EBITDA |
|
$ |
(1,796 |
) |
|
$ |
(1,985 |
) |
|
$ |
(1,944 |
) |
|
$ |
(3,781 |
) |
|
$ |
(3,917 |
) |
_________________
(1) |
New projects awards and EBITDA are non-GAAP measures. See “Non-GAAP
Measures” above for the Company’s definition of new project awards
and EBITDA. |
(2) |
Other (income) expense for the Fabrication Division for the three
months ended March 31, 2023 and June 30, 2022, and six months ended
June 30, 2023 and 2022, includes gains of $0.2 million, $3.4
million, $0.2 million and $3.1 million, respectively, from the net
impact of insurance recoveries and costs associated with damage
previously caused by Hurricane Ida. |
(3) |
Gross loss for the Shipyard Division for each of the three and six
months ended June 30, 2023, includes project charges of $0.8
million, and for the three months ended June 30, 2023, March 31,
2023 and June 30, 2022, and six months ended June 30, 2023 and
2022, includes vessel holding costs of $0.2 million, $0.2 million,
$0.2 million, $0.5 million and $0.4 million, respectively,
associated with the Company’s MPSV Litigation. |
(4) |
General and administrative expense for the Shipyard Division for
the three months ended June 30, 2023, March 31, 2023 and June 30,
2022, and six months ended June 30, 2023 and 2022, includes legal
and advisory fees of $0.5 million, $1.7 million, $1.0
million, $2.3 million and $1.7 million, respectively, associated
with the Company’s MPSV Litigation. |
(5) |
Other (income) expense for the Shipyard Division for the three
months ended June 30, 2023, March 31, 2023 and June 30, 2022, and
six months ended June 30, 2023 and 2022, includes charges of $0.3
million, $0.1 million, $0.2 million, $0.3 million and $0.2 million,
respectively, associated with damage previously caused by Hurricane
Ida. |
Consolidated Balance Sheets (in thousands) |
|
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
23,858 |
|
|
$ |
33,221 |
|
Restricted cash, current |
|
|
1,197 |
|
|
|
1,603 |
|
Short-term investments |
|
|
15,165 |
|
|
|
9,905 |
|
Contract receivables and retainage, net |
|
|
36,315 |
|
|
|
29,427 |
|
Contract assets |
|
|
6,662 |
|
|
|
4,839 |
|
Prepaid expenses and other assets |
|
|
5,015 |
|
|
|
6,475 |
|
Inventory |
|
|
2,636 |
|
|
|
1,599 |
|
Total current assets |
|
|
90,848 |
|
|
|
87,069 |
|
Property, plant and equipment,
net |
|
|
29,477 |
|
|
|
31,154 |
|
Goodwill |
|
|
2,217 |
|
|
|
2,217 |
|
Other intangibles, net |
|
|
771 |
|
|
|
842 |
|
Other noncurrent assets |
|
|
13,180 |
|
|
|
13,584 |
|
Total assets |
|
$ |
136,493 |
|
|
$ |
134,866 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
16,850 |
|
|
$ |
8,310 |
|
Contract liabilities |
|
|
3,065 |
|
|
|
8,196 |
|
Accrued expenses and other liabilities |
|
|
11,334 |
|
|
|
14,283 |
|
Total current liabilities |
|
|
31,249 |
|
|
|
30,789 |
|
Other noncurrent liabilities |
|
|
1,038 |
|
|
|
1,453 |
|
Total liabilities |
|
|
32,287 |
|
|
|
32,242 |
|
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, 16,287 shares
issued and outstanding at June 30, 2023 and 15,973 at
December 31, 2022 |
|
|
11,638 |
|
|
|
11,591 |
|
Additional paid-in capital |
|
|
107,796 |
|
|
|
107,372 |
|
Accumulated deficit |
|
|
(15,228 |
) |
|
|
(16,339 |
) |
Total shareholders’ equity |
|
|
104,206 |
|
|
|
102,624 |
|
Total liabilities and shareholders’ equity |
|
$ |
136,493 |
|
|
$ |
134,866 |
|
Consolidated Cash Flows (in thousands) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,102 |
|
|
$ |
641 |
|
|
$ |
528 |
|
|
$ |
1,743 |
|
|
$ |
(4,499 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,392 |
|
|
|
1,333 |
|
|
|
1,273 |
|
|
|
2,725 |
|
|
|
2,524 |
|
Allowance for doubtful accounts and credit losses |
|
|
(200 |
) |
|
|
— |
|
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
(Gain) loss on sale or disposal of fixed assets, net |
|
|
31 |
|
|
|
(64 |
) |
|
|
(17 |
) |
|
|
(33 |
) |
|
|
(42 |
) |
Gain on insurance recoveries |
|
|
— |
|
|
|
(245 |
) |
|
|
— |
|
|
|
(245 |
) |
|
|
— |
|
Stock-based compensation expense |
|
|
444 |
|
|
|
509 |
|
|
|
489 |
|
|
|
953 |
|
|
|
1,060 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
|
7,430 |
|
|
|
(14,540 |
) |
|
|
(3,173 |
) |
|
|
(7,110 |
) |
|
|
(10,830 |
) |
Contract assets |
|
|
(1,124 |
) |
|
|
(699 |
) |
|
|
(2,491 |
) |
|
|
(1,823 |
) |
|
|
(426 |
) |
Prepaid expenses, inventory and other current assets |
|
|
808 |
|
|
|
147 |
|
|
|
1,640 |
|
|
|
955 |
|
|
|
(430 |
) |
Accounts payable |
|
|
(9,393 |
) |
|
|
18,135 |
|
|
|
2,179 |
|
|
|
8,742 |
|
|
|
2,525 |
|
Contract liabilities |
|
|
(1,323 |
) |
|
|
(3,808 |
) |
|
|
(889 |
) |
|
|
(5,131 |
) |
|
|
(3,339 |
) |
Accrued expenses and other current liabilities |
|
|
(2,455 |
) |
|
|
62 |
|
|
|
(1,864 |
) |
|
|
(2,393 |
) |
|
|
(72 |
) |
Noncurrent assets and liabilities, net |
|
|
(201 |
) |
|
|
(175 |
) |
|
|
(199 |
) |
|
|
(376 |
) |
|
|
(346 |
) |
Net cash provided by (used in) operating activities |
|
|
(3,489 |
) |
|
|
1,296 |
|
|
|
(2,524 |
) |
|
|
(2,193 |
) |
|
|
(13,875 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(569 |
) |
|
|
(487 |
) |
|
|
(34 |
) |
|
|
(1,056 |
) |
|
|
(474 |
) |
Proceeds from Shipyard Transaction |
|
|
— |
|
|
|
— |
|
|
|
886 |
|
|
|
— |
|
|
|
886 |
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
106 |
|
|
|
38 |
|
|
|
106 |
|
|
|
63 |
|
Recoveries from insurance claims |
|
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
245 |
|
|
|
— |
|
Purchases of short-term investments |
|
|
(177 |
) |
|
|
(15,083 |
) |
|
|
— |
|
|
|
(15,260 |
) |
|
|
— |
|
Maturities of short-term investments |
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
(746 |
) |
|
|
(5,219 |
) |
|
|
890 |
|
|
|
(5,965 |
) |
|
|
475 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments on Insurance Finance Arrangements |
|
|
(126 |
) |
|
|
(1,003 |
) |
|
|
(248 |
) |
|
|
(1,129 |
) |
|
|
(248 |
) |
Tax payments for vested stock withholdings |
|
|
(301 |
) |
|
|
(181 |
) |
|
|
(62 |
) |
|
|
(482 |
) |
|
|
(121 |
) |
Net cash used in financing activities |
|
|
(427 |
) |
|
|
(1,184 |
) |
|
|
(310 |
) |
|
|
(1,611 |
) |
|
|
(369 |
) |
Net decrease in cash, cash
equivalents and restricted cash |
|
|
(4,662 |
) |
|
|
(5,107 |
) |
|
|
(1,944 |
) |
|
|
(9,769 |
) |
|
|
(13,769 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
29,717 |
|
|
|
34,824 |
|
|
|
42,764 |
|
|
|
34,824 |
|
|
|
54,589 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
25,055 |
|
|
$ |
29,717 |
|
|
$ |
40,820 |
|
|
$ |
25,055 |
|
|
$ |
40,820 |
|
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From Apr 2024 to May 2024
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From May 2023 to May 2024