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 2021.
SECOND QUARTER 2021 SUMMARY (as
compared to the second quarter 2020)
- Revenue from Continuing Operations
of $24.3 million, (24.1%) y/y
- Net loss from Continuing Operations
of $(1.7) million
- Non-GAAP EBITDA from Continuing
Operations of $(0.5) million
- Operating income for Fabrication
& Services Division of $1.7 million
- Non-GAAP EBITDA for Fabrication
& Services Division of $2.7 million
- Cash balance of $74.9 million at
June 30, 2021
- Completed Shipyard Transaction in
April 2021
The Company completed the sale of its Shipyard
Division operating assets and long-term construction contracts in
April 2021 (“Shipyard Transaction”). The results associated with
operations included in the Shipyard Transaction, as well as the
results associated with operations of certain previously closed
Shipyard Division facilities, are classified as discontinued
operations for all periods. The Shipyard Division operations
excluded from the Shipyard Transaction, and not associated with
previously closed facilities, represent the Company’s Shipyard
Segment, and are classified as continuing operations for all
periods.
Consolidated revenue for the second quarter 2021
was $24.3 million, compared to $32.0 million for the second quarter
2020. Consolidated net loss from continuing operations for the
second quarter 2021 was $1.7 million, compared to a loss of $4.2
million for the second quarter 2020. EBITDA from continuing
operations was a loss of $0.5 million for the quarter, versus a
loss of $2.9 million for the prior year period. Net loss from
discontinued operations for the quarter was $1.3 million and
included a loss of $1.9 related to transaction and other costs
associated with the Shipyard Transaction. See “Non-GAAP Measures”
below for the Company's reconciliation and definition of
EBITDA.
MANAGEMENT COMMENTARY
“Although not yet reflected in our financial
results in a meaningful way, we achieved important goals during the
second quarter as we continued to make progress on our strategic
priorities, highlighted by the completion of the Shipyard
Transaction and the continued improvement in our liquidity
position,” said Richard Heo, Gulf Island’s President and Chief
Executive Officer. “Importantly, we continue to see improved trends
in project execution in our Fabrication & Services Division
with projects delivering financial performance better than their
original estimates, resulting in improved margins despite lower
revenue and the related under-recovery of overhead costs. This
solid performance helped drive the fourth consecutive quarter of
positive EBITDA for the division.”
“With the significant progress we have achieved
on our strategic priorities over the last 18 months, we are now in
a position to shift our focus to pursuing profitable growth,”
continued Heo. “We are seeing continued improvement in our end
markets and are encouraged by an increase in bidding activity for
fabrication projects, which we expect to result in new project
awards in the coming quarters. We have focused our business
development efforts on new growth end markets and are now better
positioned to pursue fabrication opportunities related to the LNG
build-out in Texas and Louisiana. We are also seeing increased
offshore services activity with both existing and new customers, as
well as potential opportunities to expand our services business to
onshore markets.”
“The Shipyard Transaction was an important step
in our strategic transformation, as it allowed us to reduce risk
and significantly improve our liquidity position,” stated Westley
Stockton, Gulf Island’s Chief Financial Officer. “We ended the
quarter with a cash balance of almost $75.0 million and have
meaningfully reduced our bonding and letters of credit
requirements, providing us with a more solid foundation for future
growth.”
“It has been a long road, but over the last 18
months, we have successfully transformed Gulf Island into a more
financially stable business and one that is now positioned to
pursue profitable growth,” noted Heo. “While the hard work is far
from done, we believe we have the right plan in place and the right
people to execute on it. We are optimistic about the opportunities
that lie ahead for Gulf Island,” concluded Heo.
STRATEGIC UPDATE
During 2020, the Company outlined a strategic
plan that was focused on improving its financial strength and
positioning the Company to pursue higher-margin growth
opportunities. Underpinning this strategy was a focus on improving
the Company’s risk profile, strengthening its liquidity position,
improving resource utilization and project execution, and reducing
the Company’s reliance on offshore oil and gas markets. With the
significant progress that Gulf Island has achieved on these
objectives, management has shifted to the next phase of its
strategic transformation, which is focused on generating stable,
profitable growth centered on the following key initiatives:
Pursue new growth end markets –
The Company is focusing its near-term business development efforts
on higher-growth end markets such as LNG and petrochemical. Given
the Company’s capabilities and geographic location, it is
well-positioned to pursue these market opportunities along the Gulf
Coast. Over the long-term, Gulf Island will expand its core
fabrication capabilities to include sustainable energy end
markets.
Grow and diversify services
business – The Company is pursuing opportunities to
diversify its offshore services customer base, increase its
offshore services offerings and expand its services offerings to
onshore markets.
Further strengthen project
execution – While significant progress has been made, the
Company is focused on further strengthening its personnel,
processes and procedures in an effort to further improve project
execution, which will drive higher margins and improve new award
win rates.
Expand skilled labor workforce
– The Company continues to focus on ways to improve retention and
enhance and add to its skilled, craft personnel, as a strong
workforce will be a key differentiator in pursuing new awards given
the scarcity of available skilled labor.
SEGMENT RESULTS
Fabrication & Services
Segment – Revenue for the second quarter 2021 was $21.2
million, a decrease of $5.4 million compared to the second quarter
2020. The decrease was primarily due to the division’s jacket and
deck project, which was completed prior to the second quarter 2021,
and lower revenue from its material supply and offshore modules
projects. The decrease was partially offset by revenue from the
division’s marine docking structures project and an increase in
small-scale fabrication and offshore services activity.
New project awards were $18.2 million for the
second quarter 2021 and backlog for the division totaled $9.3
million at June 30, 2021. While new project awards were down
year-over-year, they represented the highest level in the last
twelve months. See “Non-GAAP Measures” below for the Company’s
definition of new project awards and backlog.
Operating income was $1.7 million for the second
quarter 2021, compared to a loss of $1.5 million for the second
quarter 2020. EBITDA for the second quarter was $2.7 million,
versus a loss of $0.3 million for the prior year period. Second
quarter 2021 results included project improvements of $1.9 million
attributable to the division’s offshore modules, material supply
and subsea structures projects, while second quarter 2020 results
included project improvements of $1.0 million for the division’s
jacket and deck, paddlewheel riverboat and subsea components
projects. Excluding the project improvements in both periods, the
increase in EBITDA over the prior year period was driven by cost
reduction efforts, improved execution and a more favorable project
margin mix. Operating results for both periods were impacted by low
revenue volume and the associated partial under-recovery of
overhead costs due to the under-utilization of facilities and
resources.
Shipyard Segment – Revenue for
the second quarter 2021 was $3.1 million, a decrease of $2.8
million compared to the second quarter 2020. Revenue for both
quarters was related entirely to the division’s two forty-vehicle
ferry and seventy-vehicle ferry projects.
Operating loss was $1.1 million for the second
quarter 2021, compared to a loss of $0.4 million for the second
quarter 2020. Second quarter 2021 results included project charges
of $0.9 million attributable to the division’s seventy-vehicle
ferry project. Results for the second quarter 2021 also included
ongoing vessel holding costs and legal fees of $0.4 million
associated with the Company’s MPSV contract dispute.
Corporate Segment – Operating
loss was $2.1 million for the second quarter 2021, compared to a
loss of $2.2 million for the second quarter 2020, as lower external
audit and legal and advisory fees were offset by higher incentive
plan and insurance costs and higher costs associated with
initiatives to diversify and enhance the Company’s business.
Discontinued Operations –
Operating loss was $1.3 million for the second quarter 2021,
compared to a loss of $1.3 million for the second quarter 2020.
Second quarter 2021 results included a loss of $1.9 million related
to transaction and other costs associated with the Shipyard
Transaction. The loss was partially offset by a gain of $0.6
million related to insurance recoveries associated with damage
previously caused by Hurricane Laura to a drydock that was sold in
connection with the Shipyard Transaction.
BALANCE SHEET AND LIQUIDITY
The Company’s cash balance at June 30, 2021 was
$74.9 million, including $10.0 million of restricted cash. The cash
balance includes proceeds received in the second quarter 2021 from
the Shipyard Transaction of $31.7 million and asset sales of $4.4
million. The proceeds from the Shipyard Transaction include $7.8
million related to a post-closing working capital true-up for the
contracts sold to offset their negative cash flow impacts from
December 31, 2020 through the closing date of the transaction.
At June 30, 2021, the Company’s 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”). In July 2021, the Company received
forgiveness of $8.9 million of the PPP loan, plus accrued interest,
and the Company subsequently repaid the remaining balance of the
PPP loan. The gain from the forgiveness of the PPP loan will be
reflected in the third quarter 2021.
At June 30, 2021, the Company had $10.0
million of outstanding letters of credit, of which $7.0 million of
letters of credit expired in July 2021 and the related cash
restrictions were released.
SECOND QUARTER 2021 CONFERENCE
CALL
Gulf Island will hold a conference call on
Tuesday, August 10, 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 1.866.269.4260 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 project management,
hookup, commissioning, repair, maintenance and civil construction
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
Houston, Texas and its 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 EBITDA
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 contractually 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 commitments. Backlog
represents the unrecognized revenue value of new project awards,
and at June 30, 2021, was comparable to 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 diversification and
entry into new end markets, improvement of risk profile, industry
outlook, 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 (including new and
emerging strains and variants), and the corresponding weakened
demand for, and volatility of prices of, oil and the impact thereof
on its business and the global economy; its ability to secure new
project awards, including fabrication projects for refining,
petrochemical, LNG, industrial and sustainable energy end markets;
the Company’s ability to improve project execution; its inability
to realize the expected financial benefits of the Shipyard
Transaction; 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
contract 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 and the dispute with a customer related to
contracts to build two seventy-vehicle ferries; 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
regulators; and other factors described in Part I, Item 1A
“Risk Factors” in the Company’s 2020 Annual Report as updated
under “Risk Factors” in Part II, Item 1A of our quarterly report on
Form 10-Q for the quarter ended March 31, 2021, 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),(2) (in
thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(2) |
|
2020(2) |
|
2021 |
|
2020(2) |
New Project Awards |
|
$ |
18,192 |
|
|
$ |
11,547 |
|
|
$ |
27,462 |
|
|
$ |
29,739 |
|
|
$ |
39,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
24,268 |
|
|
$ |
23,785 |
|
|
$ |
31,988 |
|
|
$ |
48,053 |
|
|
$ |
69,667 |
|
Cost of revenue |
|
|
23,164 |
|
|
|
23,864 |
|
|
|
32,716 |
|
|
|
47,028 |
|
|
|
70,863 |
|
Gross profit (loss)(3) |
|
|
1,104 |
|
|
|
(79 |
) |
|
|
(728 |
) |
|
|
1,025 |
|
|
|
(1,196 |
) |
General and administrative
expense |
|
|
3,093 |
|
|
|
2,787 |
|
|
|
3,370 |
|
|
|
5,880 |
|
|
|
6,681 |
|
Other (income) expense,
net(4) |
|
|
(380 |
) |
|
|
(529 |
) |
|
|
1 |
|
|
|
(909 |
) |
|
|
(10,033 |
) |
Operating income (loss) |
|
|
(1,609 |
) |
|
|
(2,337 |
) |
|
|
(4,099 |
) |
|
|
(3,946 |
) |
|
|
2,156 |
|
Interest (expense) income,
net |
|
|
(95 |
) |
|
|
(194 |
) |
|
|
(89 |
) |
|
|
(289 |
) |
|
|
(36 |
) |
Income (loss) before income taxes |
|
|
(1,704 |
) |
|
|
(2,531 |
) |
|
|
(4,188 |
) |
|
|
(4,235 |
) |
|
|
2,120 |
|
Income tax (expense)
benefit |
|
|
4 |
|
|
|
11 |
|
|
|
(22 |
) |
|
|
15 |
|
|
|
(106 |
) |
Income (loss) from continuing operations |
|
|
(1,700 |
) |
|
|
(2,520 |
) |
|
|
(4,210 |
) |
|
|
(4,220 |
) |
|
|
2,014 |
|
Loss from discontinued
operations, net of taxes(5) |
|
|
(1,251 |
) |
|
|
(16,121 |
) |
|
|
(1,327 |
) |
|
|
(17,372 |
) |
|
|
(1,646 |
) |
Net income (loss) |
|
$ |
(2,951 |
) |
|
$ |
(18,641 |
) |
|
$ |
(5,537 |
) |
|
$ |
(21,592 |
) |
|
$ |
368 |
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss) from continuing operations |
|
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.27 |
) |
|
$ |
0.13 |
|
Basic and diluted loss from discontinued operations |
|
|
(0.08 |
) |
|
|
(1.05 |
) |
|
|
(0.09 |
) |
|
|
(1.12 |
) |
|
|
(0.11 |
) |
Basic and diluted income (loss) per common share |
|
$ |
(0.19 |
) |
|
$ |
(1.21 |
) |
|
$ |
(0.36 |
) |
|
$ |
(1.40 |
) |
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA(6)
(in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(2) |
|
2020(2) |
|
2021 |
|
2020(2) |
Income (loss) from continuing operations |
|
$ |
(1,700 |
) |
|
$ |
(2,520 |
) |
|
$ |
(4,210 |
) |
|
$ |
(4,220 |
) |
|
$ |
2,014 |
|
Less: Income tax (expense)
benefit |
|
|
4 |
|
|
|
11 |
|
|
|
(22 |
) |
|
|
15 |
|
|
|
(106 |
) |
Less: Interest (expense)
income, net |
|
|
(95 |
) |
|
|
(194 |
) |
|
|
(89 |
) |
|
|
(289 |
) |
|
|
(36 |
) |
Operating income (loss) |
|
|
(1,609 |
) |
|
|
(2,337 |
) |
|
|
(4,099 |
) |
|
|
(3,946 |
) |
|
|
2,156 |
|
Add: Depreciation and
amortization |
|
|
1,082 |
|
|
|
1,067 |
|
|
|
1,232 |
|
|
|
2,149 |
|
|
|
2,632 |
|
EBITDA(6) |
|
$ |
(527 |
) |
|
$ |
(1,270 |
) |
|
$ |
(2,867 |
) |
|
$ |
(1,797 |
) |
|
$ |
4,788 |
|
________________ |
|
(1) |
See “Results of Operations by Segment” below for results by
segment. |
(2) |
Results for the three months ended March 31, 2021, and the three
and six months ended June 30, 2020, may be different than
previously reported amounts as they have been recast to reflect the
classification of certain operations as discontinued operations as
described in Note 5 below. |
(3) |
Gross profit (loss) for the Fabrication & Services Division for
the three months ended June 30, 2021, March 31, 2021 and June 30,
2020, and six months ended June 30, 2021 and 2020, includes project
improvements of $1.9 million, $0.6 million, $1.0 million, $2.0
million and $1.9 million, respectively. Gross loss for the Shipyard
Division for the three months ended June 30, 2021 and March 31,
2021, and six months ended June 30, 2021 and 2020, includes project
charges of $0.9 million, $0.7 million, $1.7 million and $1.2
million, respectively. |
(4) |
Other (income) expense for the Fabrication & Services Division
for the six months ended June 30, 2020, includes a gain of $10.0
million associated with the settlement of a contract dispute. |
(5) |
Discontinued operations include results associated with the
operations included in the Shipyard Transaction and associated with
certain previously closed Shipyard Division facilities. |
(6) |
EBITDA is a non-GAAP measure. See “Non-GAAP Measures” above for the
Company's definition of EBITDA. |
|
|
Results of Operations by
Segment(1) (in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
Fabrication &
Services Division |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(1) |
|
2020(1) |
|
2021 |
|
2020(1) |
New Project Awards |
|
$ |
18,192 |
|
|
$ |
11,547 |
|
|
$ |
27,442 |
|
|
$ |
29,739 |
|
|
$ |
39,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
21,227 |
|
|
$ |
19,060 |
|
|
$ |
26,606 |
|
|
$ |
40,287 |
|
|
$ |
60,049 |
|
Cost of revenue |
|
|
18,986 |
|
|
|
44,410 |
|
|
|
27,098 |
|
|
|
37,059 |
|
|
|
59,603 |
|
Gross profit (loss)(2) |
|
|
2,241 |
|
|
|
(25,350 |
) |
|
|
(492 |
) |
|
|
3,228 |
|
|
|
446 |
|
General and administrative
expense |
|
|
761 |
|
|
|
732 |
|
|
|
991 |
|
|
|
1,493 |
|
|
|
1,900 |
|
Other (income) expense,
net(3) |
|
|
(176 |
) |
|
|
(606 |
) |
|
|
1 |
|
|
|
(782 |
) |
|
|
(10,033 |
) |
Operating income (loss) |
|
$ |
1,656 |
|
|
$ |
(25,476 |
) |
|
$ |
(1,484 |
) |
|
$ |
2,517 |
|
|
$ |
8,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
1,656 |
|
|
$ |
(25,476 |
) |
|
$ |
(1,484 |
) |
|
$ |
2,517 |
|
|
$ |
8,579 |
|
Add: Depreciation and
amortization |
|
|
1,001 |
|
|
|
988 |
|
|
|
1,155 |
|
|
|
1,989 |
|
|
|
2,480 |
|
EBITDA(4) |
|
$ |
2,657 |
|
|
$ |
(24,488 |
) |
|
$ |
(329 |
) |
|
$ |
4,506 |
|
|
$ |
11,059 |
|
|
|
Three Months Ended |
|
Six Months Ended |
Shipyard
Division |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(1) |
|
2020(1) |
|
2021 |
|
2020(1) |
New Project Awards |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
20 |
|
|
$ |
- |
|
|
$ |
152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
3,129 |
|
|
$ |
5,130 |
|
|
$ |
5,902 |
|
|
$ |
8,259 |
|
|
$ |
10,585 |
|
Cost of revenue |
|
|
4,188 |
|
|
|
6,108 |
|
|
|
6,085 |
|
|
|
10,296 |
|
|
|
12,109 |
|
Gross loss(5) |
|
|
(1,059 |
) |
|
|
(978 |
) |
|
|
(183 |
) |
|
|
(2,037 |
) |
|
|
(1,524 |
) |
General and administrative
expense |
|
|
264 |
|
|
|
196 |
|
|
|
239 |
|
|
|
460 |
|
|
|
565 |
|
Other (income) expense,
net |
|
|
(204 |
) |
|
|
77 |
|
|
|
- |
|
|
|
(127 |
) |
|
|
- |
|
Operating loss |
|
$ |
(1,119 |
) |
|
$ |
(1,251 |
) |
|
$ |
(422 |
) |
|
$ |
(2,370 |
) |
|
$ |
(2,089 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,119 |
) |
|
$ |
(1,251 |
) |
|
$ |
(422 |
) |
|
$ |
(2,370 |
) |
|
$ |
(2,089 |
) |
Add: Depreciation and
amortization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA(4) |
|
$ |
(1,119 |
) |
|
$ |
(1,251 |
) |
|
$ |
(422 |
) |
|
$ |
(2,370 |
) |
|
$ |
(2,089 |
) |
|
|
Three Months Ended |
|
Six Months Ended |
Corporate
Division |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(1) |
|
2020(1) |
|
2021 |
|
2020(1) |
Revenue (eliminations) |
|
$ |
(88 |
) |
|
$ |
(405 |
) |
|
$ |
(520 |
) |
|
$ |
(493 |
) |
|
$ |
(967 |
) |
Cost of revenue |
|
|
(10 |
) |
|
|
(317 |
) |
|
|
(467 |
) |
|
|
(327 |
) |
|
|
(849 |
) |
Gross loss |
|
|
(78 |
) |
|
|
(88 |
) |
|
|
(53 |
) |
|
|
(166 |
) |
|
|
(118 |
) |
General and administrative
expense |
|
|
2,068 |
|
|
|
1,859 |
|
|
|
2,140 |
|
|
|
3,927 |
|
|
|
4,216 |
|
Other (income) expense,
net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Operating loss |
|
$ |
(2,146 |
) |
|
$ |
(1,947 |
) |
|
$ |
(2,193 |
) |
|
$ |
(4,093 |
) |
|
$ |
(4,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,146 |
) |
|
$ |
(1,947 |
) |
|
$ |
(2,193 |
) |
|
$ |
(4,093 |
) |
|
$ |
(4,334 |
) |
Add: Depreciation and
amortization |
|
|
81 |
|
|
|
79 |
|
|
|
77 |
|
|
|
160 |
|
|
|
152 |
|
EBITDA(4) |
|
$ |
(2,065 |
) |
|
$ |
(1,868 |
) |
|
$ |
(2,116 |
) |
|
$ |
(3,933 |
) |
|
$ |
(4,182 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Discontinued
Operations(6) |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021(1) |
|
2020(1) |
|
2021 |
|
2020(1) |
Revenue |
|
$ |
6,471 |
|
|
$ |
35,166 |
|
|
$ |
27,986 |
|
|
$ |
41,637 |
|
|
$ |
68,862 |
|
Cost of revenue |
|
|
6,406 |
|
|
|
27,506 |
|
|
|
28,961 |
|
|
|
33,912 |
|
|
|
69,623 |
|
Gross profit (loss)(7) |
|
|
65 |
|
|
|
7,660 |
|
|
|
(975 |
) |
|
|
7,725 |
|
|
|
(761 |
) |
General and administrative
expense |
|
|
73 |
|
|
|
340 |
|
|
|
352 |
|
|
|
413 |
|
|
|
785 |
|
Impairments and (gain) loss on
assets held for sale(8) |
|
|
1,903 |
|
|
|
23,428 |
|
|
|
- |
|
|
|
25,331 |
|
|
|
- |
|
Other (income) expense,
net |
|
|
(660 |
) |
|
|
13 |
|
|
|
- |
|
|
|
(647 |
) |
|
|
100 |
|
Operating loss |
|
$ |
(1,251 |
) |
|
$ |
(16,121 |
) |
|
$ |
(1,327 |
) |
|
$ |
(17,372 |
) |
|
$ |
(1,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,251 |
) |
|
$ |
(16,121 |
) |
|
$ |
(1,327 |
) |
|
$ |
(17,372 |
) |
|
$ |
(1,646 |
) |
Add: Depreciation and
amortization |
|
|
193 |
|
|
|
873 |
|
|
|
835 |
|
|
|
1,066 |
|
|
|
1,655 |
|
EBITDA(4) |
|
$ |
(1,058 |
) |
|
$ |
(15,248 |
) |
|
$ |
(492 |
) |
|
$ |
(16,306 |
) |
|
$ |
9 |
|
________________ |
|
(1) |
Results for the three months ended March 31, 2021, and three
and six months ended June 30, 2020, may be different than
previously reported amounts as they have been recast to reflect the
classification of certain operations as discontinued operations as
described in Note 6 below and to reflect the reclassification of
certain allocations between divisions. |
(2) |
Gross profit (loss) for the Fabrication & Services Division for
the three months ended June 30, 2021, March 31, 2020 and June 30,
2020, and six months ended June 30, 2021 and 2020, includes project
improvements of $1.9 million, $0.6 million, $1.0 million, $2.0
million and $1.9 million, respectively. |
(3) |
Other (income) expense for the Fabrication & Services Division
for the six months ended June 30, 2020, includes a gain of $10.0
million associated with the settlement of a contract dispute. |
(4) |
EBITDA is a non-GAAP measure. See “Non-GAAP Measures” above for the
Company's definition of EBTIDA. |
(5) |
Gross loss for the Shipyard Division for the three months ended
June 30, 2021 and March 31, 2021, and six months ended June 30,
2021 and 2020, includes project charges of $0.9 million, $0.7
million, $1.7 million and $1.2 million, respectively. |
(6) |
Discontinued operations include results associated with the
operations included in the Shipyard Transaction and associated with
certain previously closed Shipyard Division facilities. |
(7) |
Gross profit (loss) from discontinued operations for both the three
and six months ended June 30, 2020, includes project charges of
$0.6 million, and for the six months ended June 30, 2021, includes
project improvements of $8.4 million. |
(8) |
Impairments and (gain) loss on assets held for sale from
discontinued operations for the three and six months ended June 30,
2021, and three months ended March 31, 2021, represents impairment
charges and transaction and other costs resulting from the Shipyard
Transaction. |
|
|
Consolidated Balance
Sheets(1) (in
thousands)
|
|
June 30,2021 |
|
December 31,2020(1) |
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
64,834 |
|
|
$ |
43,159 |
|
Restricted cash, current |
|
|
9,637 |
|
|
|
— |
|
Short-term investments |
|
|
— |
|
|
|
7,998 |
|
Contract receivables and retainage, net |
|
|
13,737 |
|
|
|
14,089 |
|
Contract assets |
|
|
2,371 |
|
|
|
5,098 |
|
Prepaid expenses and other assets |
|
|
5,962 |
|
|
|
2,545 |
|
Inventory |
|
|
1,772 |
|
|
|
2,157 |
|
Assets held for sale |
|
|
1,800 |
|
|
|
6,200 |
|
Current assets of discontinued operations(2) |
|
|
2 |
|
|
|
66,116 |
|
Total current assets |
|
|
100,115 |
|
|
|
147,362 |
|
Property, plant and equipment,
net |
|
|
29,720 |
|
|
|
31,178 |
|
Restricted cash,
noncurrent |
|
|
406 |
|
|
|
— |
|
Noncurrent assets of
discontinued operations(2) |
|
|
— |
|
|
|
39,169 |
|
Other noncurrent assets |
|
|
13,438 |
|
|
|
13,634 |
|
Total assets |
|
$ |
143,679 |
|
|
$ |
231,343 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,427 |
|
|
$ |
12,362 |
|
Contract liabilities |
|
|
8,206 |
|
|
|
10,262 |
|
Accrued expenses and other liabilities |
|
|
8,197 |
|
|
|
6,682 |
|
Long-term debt, current |
|
|
1,050 |
|
|
|
5,499 |
|
Current liabilities of discontinued operations(2) |
|
|
771 |
|
|
|
63,607 |
|
Total current liabilities |
|
|
27,651 |
|
|
|
98,412 |
|
Long-term debt,
noncurrent |
|
|
8,950 |
|
|
|
4,501 |
|
Other noncurrent
liabilities |
|
|
1,739 |
|
|
|
2,068 |
|
Total liabilities |
|
|
38,340 |
|
|
|
104,981 |
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, no par value, 5,000 shares authorized, no shares
issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, no par value, 30,000 shares authorized, 15,517 shares
issued and outstanding at March 31, 2021 and 15,359 at December 31,
2020 |
|
|
11,281 |
|
|
|
11,223 |
|
Additional paid-in capital |
|
|
104,583 |
|
|
|
104,072 |
|
Retained earnings (accumulated deficit) |
|
|
(10,525 |
) |
|
|
11,067 |
|
Total shareholders’ equity |
|
|
105,339 |
|
|
|
126,362 |
|
Total liabilities and shareholders’ equity |
|
$ |
143,679 |
|
|
$ |
231,343 |
|
________________ |
|
(1) |
The Consolidated Balance Sheet accounts as of December 31, 2020 may
be different than previously reported amounts as they have been
recast to reflect the classification of certain operations as
discontinued operations as described in Note 2 below. |
(2) |
Assets and liabilities of discontinued operations include Balance
Sheet accounts associated with operations included in the Shipyard
Transaction and associated with certain previously closed Shipyard
Division facilities. |
|
|
Consolidated Cash
Flows(1) (in thousands)
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(2,951 |
) |
|
$ |
(18,641 |
) |
|
$ |
(5,537 |
) |
|
$ |
(21,592 |
) |
|
$ |
368 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and lease asset amortization |
|
|
1,275 |
|
|
|
1,940 |
|
|
|
2,067 |
|
|
|
3,215 |
|
|
|
4,287 |
|
Other amortization, net |
|
|
— |
|
|
|
15 |
|
|
|
18 |
|
|
|
15 |
|
|
|
31 |
|
Asset impairments |
|
|
— |
|
|
|
22,750 |
|
|
|
— |
|
|
|
22,750 |
|
|
|
— |
|
Loss on Shipyard Transaction |
|
|
2,581 |
|
|
|
— |
|
|
|
— |
|
|
|
2,581 |
|
|
|
— |
|
(Gain) loss on sale of fixed assets and other assets, net |
|
|
51 |
|
|
|
(6 |
) |
|
|
— |
|
|
|
45 |
|
|
|
(5 |
) |
Stock-based compensation expense |
|
|
364 |
|
|
|
313 |
|
|
|
345 |
|
|
|
677 |
|
|
|
440 |
|
Changes in operating assets and liabilities: |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
|
4,433 |
|
|
|
(2,779 |
) |
|
|
2,787 |
|
|
|
1,654 |
|
|
|
12,704 |
|
Contract assets |
|
|
(710 |
) |
|
|
(3,851 |
) |
|
|
(12,955 |
) |
|
|
(4,561 |
) |
|
|
(25,732 |
) |
Prepaid expenses, inventory and other current assets |
|
|
(904 |
) |
|
|
228 |
|
|
|
(1,161 |
) |
|
|
(676 |
) |
|
|
668 |
|
Accounts payable |
|
|
(12,776 |
) |
|
|
1,756 |
|
|
|
(7,582 |
) |
|
|
(11,020 |
) |
|
|
2,081 |
|
Contract liabilities |
|
|
(2,007 |
) |
|
|
(3,317 |
) |
|
|
15,402 |
|
|
|
(5,324 |
) |
|
|
702 |
|
Accrued expenses and other current liabilities |
|
|
(973 |
) |
|
|
2,303 |
|
|
|
78 |
|
|
|
1,330 |
|
|
|
(1,840 |
) |
Noncurrent assets and liabilities, net |
|
|
(110 |
) |
|
|
(353 |
) |
|
|
2,773 |
|
|
|
(463 |
) |
|
|
2,538 |
|
Net cash provided by (used in) operating activities |
|
|
(11,727 |
) |
|
|
358 |
|
|
|
(3,765 |
) |
|
|
(11,369 |
) |
|
|
(3,758 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(461 |
) |
|
|
(460 |
) |
|
|
(5,621 |
) |
|
|
(921 |
) |
|
|
(7,745 |
) |
Proceeds from Shipyard Transaction, net of transaction costs |
|
|
31,677 |
|
|
|
— |
|
|
|
— |
|
|
|
31,677 |
|
|
|
— |
|
Proceeds from sale of property and equipment |
|
|
4,400 |
|
|
|
39 |
|
|
|
— |
|
|
|
4,439 |
|
|
|
1,080 |
|
Purchases of short-term investments |
|
|
— |
|
|
|
— |
|
|
|
(19,991 |
) |
|
|
— |
|
|
|
(19,991 |
) |
Maturities of short-term investments |
|
|
8,000 |
|
|
|
— |
|
|
|
20,000 |
|
|
|
8,000 |
|
|
|
20,000 |
|
Net cash provided by (used in) investing activities |
|
|
43,616 |
|
|
|
(421 |
) |
|
|
(5,612 |
) |
|
|
43,195 |
|
|
|
(6,656 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
— |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
Payment of financing cost |
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(31 |
) |
Tax payments for vested stock withholdings |
|
|
(8 |
) |
|
|
(100 |
) |
|
|
— |
|
|
|
(108 |
) |
|
|
(74 |
) |
Net cash provided by (used in) financing activities |
|
|
(8 |
) |
|
|
(100 |
) |
|
|
9,999 |
|
|
|
(108 |
) |
|
|
9,895 |
|
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
|
31,881 |
|
|
|
(163 |
) |
|
|
622 |
|
|
|
31,718 |
|
|
|
(519 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
42,996 |
|
|
|
43,159 |
|
|
|
48,562 |
|
|
|
43,159 |
|
|
|
49,703 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
74,877 |
|
|
$ |
42,996 |
|
|
$ |
49,184 |
|
|
$ |
74,877 |
|
|
$ |
49,184 |
|
________________ |
|
(1) |
Cash flow activity for discontinued operations is not presented
separately for any period in the Consolidated Statement of Cash
Flows. |
|
|
Gulf Island Fabrication (NASDAQ:GIFI)
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From Aug 2024 to Sep 2024
Gulf Island Fabrication (NASDAQ:GIFI)
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From Sep 2023 to Sep 2024