Gulf Island Fabrication, Inc. ("Gulf Island" or the
"Company") (NASDAQ: GIFI) today reported results for the
fourth quarter and full year 2020.
Operating Results(in thousands, except per share
data) |
|
Three Months Ended
December 31, |
|
|
Years Ended December 31, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
57,561 |
|
|
$ |
79,445 |
|
|
$ |
250,959 |
|
|
$ |
303,308 |
|
Operating Loss(1) |
|
|
(15,430 |
) |
|
|
(34,427 |
) |
|
|
(27,159 |
) |
|
|
(50,021 |
) |
EBITDA(2) |
|
|
(13,276 |
) |
|
|
(32,127 |
) |
|
|
(18,542 |
) |
|
|
(40,457 |
) |
Impairments and (gain) loss on assets held for sale |
|
|
4,058 |
|
|
|
17,274 |
|
|
|
4,130 |
|
|
|
17,528 |
|
Adjusted EBITDA(2) |
|
|
(9,218 |
) |
|
|
(14,853 |
) |
|
|
(14,412 |
) |
|
|
(22,929 |
) |
Net loss(1) |
|
|
(15,406 |
) |
|
|
(34,325 |
) |
|
|
(27,375 |
) |
|
|
(49,394 |
) |
Basic and diluted loss per common share |
|
|
(1.01 |
) |
|
|
(2.26 |
) |
|
|
(1.79 |
) |
|
|
(3.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet(in thousands) |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
Cash and short-term investments |
|
$ |
51,157 |
|
|
$ |
69,621 |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
147,362 |
|
|
|
163,474 |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
98,412 |
|
|
|
97,844 |
|
|
|
|
|
|
|
|
|
_____________
(1) |
See “Consolidated Results of Operations” and “Results of Operations
by Segment” below for a summary of project impacts and other
impacts for all periods presented. |
(2) |
EBITDA and Adjusted EBITDA are non-GAAP measures. Adjusted EBITDA
excludes impairments and (gain) loss on assets held for sale. See
“Non-GAAP Measures” below for the Company’s reconciliation and
definition of EBITDA and Adjusted EBITDA. |
Consolidated Overview
Consolidated revenue for the fourth quarter 2020
was $57.6 million, compared to $79.4 million for the fourth quarter
2019, with the year-over-year decrease primarily attributable to
the Company’s Fabrication & Services Division, and to a lesser
extent, its Shipyard Division. Consolidated net loss for the
quarter was $15.4 million with an Adjusted EBITDA loss of $9.2
million. Fourth quarter 2020 results were impacted by project
charges for the Company’s Shipyard Division and non-cash
impairments for both the Fabrication & Services and Shipyard
Divisions. In addition, fourth quarter results reflected low volume
for the Fabrication & Services Division and the overall
under-utilization of the Company’s facilities and resources.
“In the fourth quarter, our Fabrication &
Services Division realized improved results despite market
headwinds from the economic impact of COVID-19 and volatile oil
prices, as we further leveraged process improvement efforts and
cost savings from our prior combination of the Fabrication and
Services segments. However, our Shipyard Division continued to be
impacted by a backlog that is largely in a loss position, as well
as design and rework challenges on our two forty-vehicle ferry
projects, which resulted in project charges during the quarter. We
believe that any design-related impacts to the ferries are the
responsibility of the customer and we will be submitting a claim to
recover the costs of these items. Despite these issues, our
Shipyard Division completed our final two harbor tugs and delivered
the last tug in January 2021,” said Richard Heo, Gulf Island’s
President and Chief Executive Officer.
“In regard to our U.S. Navy contract, we
negotiated an amendment to provide the Navy with data access rights
for future towing, salvage and rescue ships. The change order
supports the Navy’s decision not to exercise their options under
our contract for the construction of three additional vessels. I
believe this decision was best for both the Navy and Gulf Island,
and we expect to see a net benefit to our operating results in the
first quarter 2021. We are focused on completing the vessels in our
backlog and working with the Navy on future newbuild
opportunities.”
“With respect to our Fabrication & Services
Division, project execution was solid during the quarter and we
realized positive Adjusted EBITDA for the second quarter in a row.
While we did experience a negative impact from the
under-utilization of our facilities due to low backlog levels, the
quarter reflected a favorable margin mix on our smaller fabrication
projects and offshore services work. We are also seeing increased
project bidding activity and are well-positioned given the
strategic initiatives implemented over the past year.”
“We continue to focus on maximizing our resource
utilization by capturing further efficiencies and reducing our cost
structure. During the quarter, we completed the previously
announced closure of our Jennings facility and initiated and
completed the closure of our Lake Charles facility.”
“While COVID-19 and oil price uncertainty are
still weighing on customer decision-making and impacting
utilization levels, we have substantially strengthened our
foundation over the past year through consolidation of our
resources and process improvements, implementing changes in certain
management and functional leadership, and expanding our end market
focus with the goal of reducing our reliance on the offshore oil
and gas industry. We will continue to focus on managing those
things that are within our control with continued discipline in
pursuing new projects, rigorous execution and ongoing preservation
of our cash. I believe we are entering 2021 better positioned to
ultimately drive profitable growth,” concluded Mr. Heo.
Segment Overview
Shipyard Segment – Revenue for
the fourth quarter 2020 was $37.2 million, a decrease of $10.5
million compared to the fourth quarter 2019, primarily due to lower
revenue for the division’s harbor tug, research vessel, ice-breaker
tug and towboat projects. The revenue decrease was partially
offset by higher revenue for the division’s towing, salvage and
rescue ship projects. Operating loss was $11.5 million for the
fourth quarter 2020, compared to an operating loss of $18.6 million
for the fourth quarter 2019. Adjusted EBITDA for the current
quarter was a loss of $9.0 million, compared to a loss of $10.0
million for the fourth quarter 2019.
Fourth quarter 2020 results included project
charges of $8.8 million, primarily due to the division’s
forty-vehicle ferry projects, and to a lesser extent, its
seventy-vehicle ferry project, towing, salvage and rescue ship
projects, and final harbor tug project. Results also included
charges of $1.6 million related to non-cash impairments of fixed
assets and costs associated with closing the Company’s Jennings and
Lake Charles facilities, as well as the impact of a low margin
backlog and the partial under-recovery of overhead costs.
Fabrication & Services Segment
– Revenue for the fourth quarter 2020 was $21.2 million, a
decrease of $12.0 million compared to the fourth quarter 2019,
primarily due to the division’s jacket and deck and paddlewheel
river boat projects, which were completed prior to the fourth
quarter 2020, and a lower level of small fabrication and onshore
services activity. The revenue decrease was partially offset by
revenue from the division’s marine docking structures project
awarded in the second quarter 2020 and offshore modules project
awarded in the fourth quarter 2019. Operating loss was $1.8 million
for the fourth quarter 2020, compared to an operating loss of $12.7
million for the fourth quarter 2019. Adjusted EBITDA for the
current quarter was $1.9 million, compared to a loss of $2.5
million for the fourth quarter 2019.
Fourth quarter 2020 results included charges of
$2.4 million related to non-cash impairments of assets held for
sale and certain fixed assets associated with the relocation and
consolidation of such assets to improve operational efficiency.
Results also reflected the impact of low revenue and the partial
under-recovery of overhead costs due to the under-utilization of
the division’s facilities and resources.
Corporate Segment – Operating
loss was $2.2 million for the fourth quarter 2020, compared to an
operating loss of $3.1 million for the fourth quarter 2019, with
the decrease primarily due to lower legal fees and the prior year
period including certain non-recurring costs of $0.7 million.
Adjusted EBITDA for the current quarter was a loss of $2.1 million,
compared to a loss of $2.3 million for the fourth quarter 2019.
Cash and Liquidity
The Company’s cash and short-term investments at
December 31, 2020 totaled $51.2 million and current and
long-term debt totaled $10.0 million related to proceeds received
in the second quarter 2020 in connection with the Paycheck
Protection Program (“PPP”).
On March 26, 2021, the Company amended its $40.0
million revolving credit facility and converted it into a letter of
credit only facility with a capacity of $20.0 million, subject to
cash securitization of the letters of credit, with a maturity date
of June 30, 2023. At December 31, 2020, the Company had $10.7
million of outstanding letters of credit.
Backlog
The Company’s backlog at December 31, 2020
was $371.6 million, with $352.2 million attributable to the
Shipyard Division and $19.4 million attributable to the Fabrication
& Services Division. See "Non-GAAP Measures" below for the
Company's definition of Backlog.
Quarterly Conference Call
Gulf Island will hold a conference call on
Monday, March 29, 2021 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 1.866.248.8441 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, modules and marine vessels, and a provider of
project management, hookup, commissioning, repair, maintenance and
civil construction services. The Company’s customers include U.S.
and, to a lesser extent, international energy producers; refining,
petrochemical, LNG, industrial, power and marine operators; EPC
companies; and certain agencies of the U.S. government. The Company
operates and manages its business through two operating divisions:
Fabrication & Services and Shipyard, with its corporate
headquarters located in Houston, Texas and operating facilities
located in Houma, Louisiana.
Non-GAAP Measures
This Release includes certain non-GAAP measures,
including earnings before interest, taxes, depreciation and
amortization ("EBITDA"), Adjusted EBITDA 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. The Company believes Adjusted EBITDA
is a useful supplemental measure as it reflects the Company’s
EBITDA excluding non-cash impacts of impairments and other impacts
which the Company believes are non-recurring. Reconciliations of
EBITDA and Adjusted EBITDA to the most comparable GAAP measure are
presented under "Results of Operations by Segment" below. The
Company believes Backlog is a useful supplemental measure as it
represents work that the Company is contractually obligated to
perform under its current contracts. Backlog represents the
unearned value of new project awards and may differ from 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 oil and gas prices,
operating cash flows, 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: the
duration and scope of, and uncertainties associated with, the
ongoing global pandemic caused by COVID-19 and the corresponding
weakened demand for, and volatility of prices of, oil and the
impact thereof on its business and the global economy, which are
evolving and beyond its control; the potential forgiveness of any
portion of the PPP Loan; its ability to secure new project awards,
including fabrication projects for refining, petrochemical, LNG and
industrial facilities and offshore wind developments; the Company’s
ability to improve project execution; the cyclical nature of the
oil and gas industry; competition; consolidation of its customers;
timing and award of new contracts; reliance on significant
customers; financial ability and credit worthiness of its
customers; nature of its contract terms; competitive pricing and
cost overruns on its projects; adjustments to previously reported
profits or losses under the percentage-of-completion method;
weather conditions; changes in backlog estimates; suspension or
termination of projects; 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 sell certain assets; any future asset
impairments; utilization of facilities or closure or consolidation
of facilities; customer or subcontractor disputes; its ability to
resolve the dispute with a customer relating to the purported
terminations of contracts to build two MPSVs; operating dangers and
limits on insurance coverage; barriers to entry into new lines of
business; its ability to employ skilled workers; loss of key
personnel; performance of subcontractors and dependence on
suppliers; 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 other
factors described in Item 1A “Risk Factors” in the Company’s
2019 Annual Report as updated in the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2020 and as may be
updated by subsequent filings with the SEC.
Investors are cautioned that many of the
assumptions upon which the Company’s forward-looking statements are
based are likely to change after 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 does not intend to update
forward-looking statements more frequently than quarterly
notwithstanding any changes in its assumptions, changes in business
plans, actual experience or other changes, and undertakes no
obligation to update any forward-looking statements.
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 |
|
|
Years Ended |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
57,561 |
|
|
$ |
54,869 |
|
|
$ |
79,445 |
|
|
$ |
250,959 |
|
|
$ |
303,308 |
|
Cost of revenue |
|
65,538 |
|
|
|
62,686 |
|
|
|
92,714 |
|
|
|
268,710 |
|
|
|
320,307 |
|
Gross loss(2) |
|
(7,977 |
) |
|
|
(7,817 |
) |
|
|
(13,269 |
) |
|
|
(17,751 |
) |
|
|
(16,999 |
) |
General and administrative expense |
|
3,320 |
|
|
|
3,072 |
|
|
|
3,837 |
|
|
|
13,858 |
|
|
|
15,628 |
|
Impairments and (gain) loss on assets held for sale |
|
4,058 |
|
|
|
72 |
|
|
|
17,274 |
|
|
|
4,130 |
|
|
|
17,528 |
|
Other (income) expense, net(3) |
|
75 |
|
|
|
1,278 |
|
|
|
47 |
|
|
|
(8,580 |
) |
|
|
(134 |
) |
Operating loss |
|
(15,430 |
) |
|
|
(12,239 |
) |
|
|
(34,427 |
) |
|
|
(27,159 |
) |
|
|
(50,021 |
) |
Interest (expense) income, net |
|
(114 |
) |
|
|
(118 |
) |
|
|
4 |
|
|
|
(268 |
) |
|
|
531 |
|
Loss before income taxes |
|
(15,544 |
) |
|
|
(12,357 |
) |
|
|
(34,423 |
) |
|
|
(27,427 |
) |
|
|
(49,490 |
) |
Income tax (expense) benefit |
|
138 |
|
|
|
20 |
|
|
|
98 |
|
|
|
52 |
|
|
|
96 |
|
Net loss |
$ |
(15,406 |
) |
|
$ |
(12,337 |
) |
|
$ |
(34,325 |
) |
|
$ |
(27,375 |
) |
|
$ |
(49,394 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per common share |
$ |
(1.01 |
) |
|
$ |
(0.81 |
) |
|
$ |
(2.26 |
) |
|
$ |
(1.79 |
) |
|
$ |
(3.24 |
) |
Consolidated EBITDA and Adjusted
EBITDA(4) (in
thousands)
|
Three Months Ended |
|
|
Years Ended |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(15,406 |
) |
|
$ |
(12,337 |
) |
|
$ |
(34,325 |
) |
|
$ |
(27,375 |
) |
|
$ |
(49,394 |
) |
Less: Income tax (expense) benefit |
|
138 |
|
|
|
20 |
|
|
|
98 |
|
|
|
52 |
|
|
|
96 |
|
Less: Interest (expense) income, net |
|
(114 |
) |
|
|
(118 |
) |
|
|
4 |
|
|
|
(268 |
) |
|
|
531 |
|
Operating loss |
|
(15,430 |
) |
|
|
(12,239 |
) |
|
|
(34,427 |
) |
|
|
(27,159 |
) |
|
|
(50,021 |
) |
Add: Depreciation and lease asset amortization |
|
2,154 |
|
|
|
2,176 |
|
|
|
2,300 |
|
|
|
8,617 |
|
|
|
9,564 |
|
EBITDA |
|
(13,276 |
) |
|
|
(10,063 |
) |
|
|
(32,127 |
) |
|
|
(18,542 |
) |
|
|
(40,457 |
) |
Add: Impairments and (gain) loss on assets held for sale |
|
4,058 |
|
|
|
72 |
|
|
|
17,274 |
|
|
|
4,130 |
|
|
|
17,528 |
|
Adjusted EBITDA |
$ |
(9,218 |
) |
|
$ |
(9,991 |
) |
|
$ |
(14,853 |
) |
|
$ |
(14,412 |
) |
|
$ |
(22,929 |
) |
_____________
(1) |
See "Results of Operations by Segment" below for results by
segment. |
(2) |
Gross loss for the Shipyard Division includes project charges for
the three months ended December 31, 2020, September 30, 2020 and
December 31, 2019, and years ended December 31, 2020 and 2019, of
$8.8 million, $6.7 million, $10.2 million, $16.6 million and $12.3
million, respectively. Gross profit (loss) for the Fabrication
& Services Division includes project improvements for the three
months ended September 30, 2020 and twelve months ended December
31, 2020, of $0.6 million and $2.7 million, respectively, and
project charges for the three and twelve months ended December 31,
2019, of $3.8 million and $4.9 million, respectively. |
(3) |
Other (income) expense for the Shipyard Division for the three
months ended December 31, 2020 and September 30, 2020, and year
ended December 31, 2020, includes charges of $0.1 million, $1.2
million and $1.3 million, respectively, associated with the impacts
of Hurricane Laura. Other (income) expense for the Fabrication
& Services Division for the year ended December 31, 2020,
includes a gain of $10.0 million associated with the settlement of
a contract dispute for a previously completed project. |
(4) |
EBITDA and Adjusted EBITDA are non-GAAP measures. See "Non-GAAP
Measures" above for the Company's definition of EBITDA and Adjusted
EBITDA. |
Results of Operations by Segment (in
thousands)
|
Three Months Ended |
|
|
Years Ended |
|
Shipyard Division(1) |
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
37,173 |
|
|
$ |
37,078 |
|
|
$ |
47,679 |
|
|
$ |
153,698 |
|
|
$ |
168,466 |
|
Cost of revenue |
|
46,488 |
|
|
|
44,582 |
|
|
|
58,110 |
|
|
|
172,972 |
|
|
|
184,491 |
|
Gross loss(2) |
|
(9,315 |
) |
|
|
(7,504 |
) |
|
|
(10,431 |
) |
|
|
(19,274 |
) |
|
|
(16,025 |
) |
General and administrative expenses |
|
451 |
|
|
|
461 |
|
|
|
574 |
|
|
|
1,980 |
|
|
|
2,445 |
|
Impairments and (gain) loss on assets held for sale |
|
1,639 |
|
|
|
- |
|
|
|
7,596 |
|
|
|
1,639 |
|
|
|
7,920 |
|
Other (income) expense, net(3) |
|
71 |
|
|
|
1,279 |
|
|
|
10 |
|
|
|
1,450 |
|
|
|
38 |
|
Operating loss |
$ |
(11,476 |
) |
|
$ |
(9,244 |
) |
|
$ |
(18,611 |
) |
|
$ |
(24,343 |
) |
|
$ |
(26,428 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA & Adjusted EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(11,476 |
) |
|
$ |
(9,244 |
) |
|
$ |
(18,611 |
) |
|
$ |
(24,343 |
) |
|
$ |
(26,428 |
) |
Add: Depreciation and lease asset amortization |
|
846 |
|
|
|
819 |
|
|
|
1,019 |
|
|
|
3,254 |
|
|
|
4,167 |
|
EBITDA |
|
(10,630 |
) |
|
|
(8,425 |
) |
|
|
(17,592 |
) |
|
|
(21,089 |
) |
|
|
(22,261 |
) |
Add: Impairments and (gain) loss on assets held for sale |
|
1,639 |
|
|
|
- |
|
|
|
7,596 |
|
|
|
1,639 |
|
|
|
7,920 |
|
Adjusted EBITDA |
$ |
(8,991 |
) |
|
$ |
(8,425 |
) |
|
$ |
(9,996 |
) |
|
$ |
(19,450 |
) |
|
$ |
(14,341 |
) |
|
Three Months Ended |
|
|
Years Ended |
|
Fabrication & Services Division(1) |
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
21,199 |
|
|
$ |
18,237 |
|
|
$ |
33,243 |
|
|
$ |
99,485 |
|
|
$ |
137,169 |
|
Cost of revenue |
|
19,861 |
|
|
|
18,550 |
|
|
|
36,111 |
|
|
|
97,962 |
|
|
|
137,826 |
|
Gross profit (loss)(5) |
|
1,338 |
|
|
|
(313 |
) |
|
|
(2,868 |
) |
|
|
1,523 |
|
|
|
(657 |
) |
General and administrative expenses |
|
669 |
|
|
|
743 |
|
|
|
829 |
|
|
|
3,172 |
|
|
|
4,308 |
|
Impairments and (gain) loss on assets held for sale |
|
2,419 |
|
|
|
72 |
|
|
|
9,003 |
|
|
|
2,491 |
|
|
|
8,933 |
|
Other (income) expense, net(6) |
|
1 |
|
|
|
(1 |
) |
|
|
7 |
|
|
|
(10,033 |
) |
|
|
(202 |
) |
Operating income (loss) |
$ |
(1,751 |
) |
|
$ |
(1,127 |
) |
|
$ |
(12,707 |
) |
|
$ |
5,893 |
|
|
$ |
(13,696 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA & Adjusted EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
(1,751 |
) |
|
$ |
(1,127 |
) |
|
$ |
(12,707 |
) |
|
$ |
5,893 |
|
|
$ |
(13,696 |
) |
Add: Depreciation and lease asset amortization |
|
1,235 |
|
|
|
1,280 |
|
|
|
1,187 |
|
|
|
5,061 |
|
|
|
4,984 |
|
EBITDA |
|
(516 |
) |
|
|
153 |
|
|
|
(11,520 |
) |
|
|
10,954 |
|
|
|
(8,712 |
) |
Add: Impairments and (gain) loss on assets held for sale |
|
2,419 |
|
|
|
72 |
|
|
|
9,003 |
|
|
|
2,491 |
|
|
|
8,933 |
|
Adjusted EBITDA |
$ |
1,903 |
|
|
$ |
225 |
|
|
$ |
(2,517 |
) |
|
$ |
13,445 |
|
|
$ |
221 |
|
|
Three Months Ended |
|
|
Years Ended |
|
Corporate Division |
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
(811 |
) |
|
$ |
(446 |
) |
|
$ |
(1,477 |
) |
|
$ |
(2,224 |
) |
|
$ |
(2,327 |
) |
Cost of revenue |
|
(811 |
) |
|
|
(446 |
) |
|
|
(1,507 |
) |
|
|
(2,224 |
) |
|
|
(2,010 |
) |
Gross profit (loss) |
|
- |
|
|
|
- |
|
|
|
30 |
|
|
|
- |
|
|
|
(317 |
) |
General and administrative expenses |
|
2,200 |
|
|
|
1,868 |
|
|
|
2,434 |
|
|
|
8,706 |
|
|
|
8,875 |
|
Impairments and (gain) loss on assets held for sale |
|
- |
|
|
|
- |
|
|
|
675 |
|
|
|
- |
|
|
|
675 |
|
Other (income) expense, net |
|
3 |
|
|
|
- |
|
|
|
30 |
|
|
|
3 |
|
|
|
30 |
|
Operating loss |
$ |
(2,203 |
) |
|
$ |
(1,868 |
) |
|
$ |
(3,109 |
) |
|
$ |
(8,709 |
) |
|
$ |
(9,897 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA & Adjusted EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(2,203 |
) |
|
$ |
(1,868 |
) |
|
$ |
(3,109 |
) |
|
$ |
(8,709 |
) |
|
$ |
(9,897 |
) |
Add: Depreciation and lease asset amortization |
|
73 |
|
|
|
77 |
|
|
|
94 |
|
|
|
302 |
|
|
|
413 |
|
EBITDA |
|
(2,130 |
) |
|
|
(1,791 |
) |
|
|
(3,015 |
) |
|
|
(8,407 |
) |
|
|
(9,484 |
) |
Add: Impairments and (gain) loss on assets held for sale |
|
- |
|
|
|
- |
|
|
|
675 |
|
|
|
- |
|
|
|
675 |
|
Adjusted EBITDA |
$ |
(2,130 |
) |
|
$ |
(1,791 |
) |
|
$ |
(2,340 |
) |
|
$ |
(8,407 |
) |
|
$ |
(8,809 |
) |
____________
(1) |
In the first quarter 2020, our former Fabrication and Services
Divisions were operationally combined to form a new division called
Fabrication & Services. Accordingly, segment results (including
the effects of eliminations) for our former Fabrication and
Services Divisions for 2019 have been combined to conform to the
presentation of our reportable segments for 2020. In addition, in
the first quarter 2020, management and project execution
responsibility for our two forty-vehicle ferry projects was
transferred from our former Fabrication Division to our Shipyard
Division. Accordingly, revenue of $2.1 million and gross loss and
operating loss of $5.1 million for the three months ended December
31, 2019, and revenue of $9.2 million and gross loss and operating
loss of $5.1 million for the twelve months ended December 31, 2019,
associated with these projects was reclassified from our former
Fabrication Division to our Shipyard Division to conform to the
presentation of these projects for 2020. |
(2) |
Gross loss for the Shipyard Division includes project charges for
the three months ended December 31, 2020, September 30, 2020 and
December 31, 2019, and twelve months ended December 31, 2020 and
2019, of $8.8 million, $6.7 million, $10.2 million, $16.6 million
and $12.3 million, respectively. |
(3) |
Other (income) expense for the Shipyard Division for the three
months ended December 31, 2020 and September 30, 2020, and twelve
months ended December 31, 2020, includes charges of $0.1 million,
$1.2 million and $1.3 million, respectively, associated with the
impacts of Hurricane Laura. |
(4) |
EBITDA and Adjusted EBITDA are non-GAAP measures. See "Non-GAAP
Measures" above for the Company's definition of EBITDA and Adjusted
EBITDA. |
(5) |
Gross profit (loss) for the Fabrication & Services Division
includes project improvements for the three months ended September
30, 2020, and twelve months ended December 31, 2020, of $0.6
million and $2.7 million, respectively, and project charges for the
three and twelve months ended December 31, 2019, of $3.8 million
and $4.9 million, respectively. |
(6) |
Other (income) expense for the Fabrication & Services Division
for the twelve months ended December 31, 2020, includes a gain of
$10.0 million associated with the settlement of a contract dispute
for a previously completed project. |
Consolidated Balance Sheets (in
thousands)
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
43,159 |
|
|
$ |
49,703 |
|
Short-term investments |
|
|
7,998 |
|
|
|
19,918 |
|
Contract receivables and retainage, net |
|
|
15,393 |
|
|
|
26,095 |
|
Contract assets |
|
|
67,521 |
|
|
|
52,128 |
|
Prepaid expenses and other assets |
|
|
2,815 |
|
|
|
3,948 |
|
Inventory |
|
|
2,262 |
|
|
|
2,676 |
|
Assets held for sale |
|
|
8,214 |
|
|
|
9,006 |
|
Total current assets |
|
|
147,362 |
|
|
|
163,474 |
|
Property, plant and equipment,
net |
|
|
67,458 |
|
|
|
70,484 |
|
Other noncurrent assets |
|
|
16,523 |
|
|
|
18,819 |
|
Total assets |
|
$ |
231,343 |
|
|
$ |
252,777 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
70,114 |
|
|
$ |
61,542 |
|
Contract liabilities |
|
|
15,129 |
|
|
|
26,271 |
|
Accrued expenses and other liabilities |
|
|
7,670 |
|
|
|
10,031 |
|
Long-term debt, current |
|
|
5,499 |
|
|
|
— |
|
Total current liabilities |
|
|
98,412 |
|
|
|
97,844 |
|
Long-term debt, noncurrent |
|
|
4,501 |
|
|
|
— |
|
Other noncurrent liabilities |
|
|
2,068 |
|
|
|
2,248 |
|
Total liabilities |
|
|
104,981 |
|
|
|
100,092 |
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, no par value, 5,000 shares authorized, no shares
issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, no par value, 30,000 shares authorized, 15,359 issued
and outstanding at December 31, 2020 and 15,263 at December 31,
2019 |
|
|
11,223 |
|
|
|
11,119 |
|
Additional paid-in capital |
|
|
104,072 |
|
|
|
103,124 |
|
Retained earnings |
|
|
11,067 |
|
|
|
38,442 |
|
Total shareholders’ equity |
|
|
126,362 |
|
|
|
152,685 |
|
Total liabilities and shareholders’ equity |
|
$ |
231,343 |
|
|
$ |
252,777 |
|
Consolidated Cash Flows (in thousands)
|
Three Months Ended |
|
|
Years Ended |
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
Cash flows from operating activities: |
2020 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net loss |
$ |
(15,406 |
) |
|
$ |
(12,337 |
) |
|
$ |
(34,325 |
) |
|
$ |
(27,375 |
) |
|
$ |
(49,394 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and lease asset amortization |
|
2,154 |
|
|
|
2,176 |
|
|
|
2,300 |
|
|
|
8,617 |
|
|
|
9,564 |
|
Other amortization, net |
|
15 |
|
|
|
17 |
|
|
|
13 |
|
|
|
63 |
|
|
|
50 |
|
Bad debt expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
59 |
|
Asset impairments |
|
3,310 |
|
|
|
— |
|
|
|
16,601 |
|
|
|
3,310 |
|
|
|
17,223 |
|
(Gain) loss on assets held for sale, net |
|
156 |
|
|
|
72 |
|
|
|
— |
|
|
|
228 |
|
|
|
(369 |
) |
(Gain) loss on sale of fixed assets and other assets, net |
|
3 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
(2 |
) |
|
|
(584 |
) |
Stock-based compensation expense |
|
345 |
|
|
|
341 |
|
|
|
(34 |
) |
|
|
1,126 |
|
|
|
1,774 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
9,043 |
|
|
|
(11,045 |
) |
|
|
4,172 |
|
|
|
10,702 |
|
|
|
(3,650 |
) |
Contract assets |
|
4,839 |
|
|
|
5,500 |
|
|
|
(1,272 |
) |
|
|
(15,393 |
) |
|
|
(22,145 |
) |
Prepaid expenses, inventory and other current assets |
|
(69 |
) |
|
|
1,045 |
|
|
|
1,054 |
|
|
|
1,644 |
|
|
|
2,556 |
|
Accounts payable |
|
(8,858 |
) |
|
|
16,819 |
|
|
|
1,706 |
|
|
|
10,042 |
|
|
|
30,950 |
|
Contract liabilities |
|
(5,048 |
) |
|
|
(6,796 |
) |
|
|
10,589 |
|
|
|
(11,142 |
) |
|
|
9,425 |
|
Accrued expenses and other liabilities |
|
(1,771 |
) |
|
|
1,184 |
|
|
|
(629 |
) |
|
|
(2,427 |
) |
|
|
(1,099 |
) |
Noncurrent assets and liabilities, net (including long-term
retainage) |
|
(444 |
) |
|
|
(495 |
) |
|
|
(590 |
) |
|
|
1,599 |
|
|
|
(1,500 |
) |
Net cash used in operating activities |
|
(11,731 |
) |
|
|
(3,519 |
) |
|
|
(434 |
) |
|
|
(19,008 |
) |
|
|
(7,140 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of short-term investments |
|
(38,759 |
) |
|
|
(1 |
) |
|
|
(19,918 |
) |
|
|
(58,751 |
) |
|
|
(65,284 |
) |
Maturities of short-term investments |
|
50,552 |
|
|
|
— |
|
|
|
25,325 |
|
|
|
70,552 |
|
|
|
54,086 |
|
Capital expenditures |
|
(1,021 |
) |
|
|
(2,446 |
) |
|
|
(1,800 |
) |
|
|
(11,212 |
) |
|
|
(3,790 |
) |
Proceeds from sale of property, plant and equipment |
|
341 |
|
|
|
599 |
|
|
|
619 |
|
|
|
2,020 |
|
|
|
2,217 |
|
Net cash provided by (used in) investing activities |
|
11,113 |
|
|
|
(1,848 |
) |
|
|
4,226 |
|
|
|
2,609 |
|
|
|
(12,771 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Payment of financing cost |
|
(1 |
) |
|
|
(39 |
) |
|
|
— |
|
|
|
(71 |
) |
|
|
(48 |
) |
Tax payments for vested stock withholdings |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(74 |
) |
|
|
(795 |
) |
Net cash used in financing activities |
|
(1 |
) |
|
|
(39 |
) |
|
|
— |
|
|
|
9,855 |
|
|
|
(843 |
) |
Net increase (decrease) in cash and cash equivalents |
|
(619 |
) |
|
|
(5,406 |
) |
|
|
3,792 |
|
|
|
(6,544 |
) |
|
|
(20,754 |
) |
Cash and cash equivalents, beginning of period |
|
43,778 |
|
|
|
49,184 |
|
|
|
45,911 |
|
|
|
49,703 |
|
|
|
70,457 |
|
Cash and cash equivalents, end of period |
$ |
43,159 |
|
|
$ |
43,778 |
|
|
$ |
49,703 |
|
|
$ |
43,159 |
|
|
$ |
49,703 |
|
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