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 first quarter 2023.
FIRST QUARTER 2023 SUMMARY (as compared to the
first quarter 2022)
- Revenue of $62.2
million, 116.7% increase y/y
- Consolidated net
income of $0.6 million and EBITDA of $1.7 million, each including a
loss of $2.2 million for the Shipyard Division
- Services
Division operating income and EBITDA of $2.3 million and $2.8
million, respectively
- Fabrication
Division operating income and EBITDA of $2.2 million and $3.1
million, respectively
- Cash and
short-term investment balance of $44.7 million at March 31,
2023
Consolidated revenue for the first quarter 2023
was $62.2 million, compared to $28.7 million for the first quarter
2022. Consolidated net income for the first quarter 2023 was $0.6
million, compared to a net loss of $5.0 million for the first
quarter 2022. Consolidated EBITDA was $1.7 million for the first
quarter 2023, versus a loss of $3.7 million for the prior year
period. Consolidated income and EBITDA for the first quarter 2023
each included a loss of $2.2 million for the Shipyard Division.
Consolidated loss and EBITDA for the first quarter 2022 each
included a loss of $1.2 million for the Shipyard Division. 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
“The second phase of our business transformation
strategy has been focused on the pursuit of stable, profitable
growth, so we were pleased by our first quarter results which were
highlighted by steady growth in our Services division and
small-scale fabrication business,” said Richard Heo, Gulf Island’s
President and Chief Executive Officer. “Our Services division
experienced improved margins, leading to a year-over-year increase
in operating income of almost 100%. Overall activity in our core
Gulf Coast region remains robust, and we still expect growth in our
Services Division and small-scale fabrication business during
2023.”
“While we are disappointed that we have not
gained more clarity on our large fabrication project, which remains
suspended, we remain encouraged by the favorable trends in the
large fabrication business and are pursuing several new project
opportunities, which we hope will be awarded in the second half of
2023,” continued Heo. “We will continue to look for opportunities
to minimize the financial impact of the large fabrication project
suspension as we pursue other large fabrication awards to replace
the contract in the event the project is permanently
suspended.”
“We remain encouraged by the stability of our
Services division, with first quarter operating margins of 10.8%,
an increase of over 500 basis points from the prior year,” stated
Westley Stockton, Gulf Island’s Chief Financial Officer. “We ended
the quarter with nearly $45 million in cash, which was consistent
with year-end levels, and we remain confident that we have adequate
liquidity and financial flexibility to fund growth opportunities in
both our Services and Fabrication businesses.”
“With the wind down of our Shipyard operations
nearing completion, we soon expect to be able to focus all of our
resources and attention on our Services and Fabrication
businesses,” noted Heo. “We are excited by the strong bidding
activity in our markets, in particular the opportunities in our
large fabrication business, and look forward to continuing to
execute on our strategic initiatives,” concluded Heo.
STRATEGIC UPDATE
Gulf Island continues 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
labor workforce, while continuing to pursue opportunities in its
traditional offshore markets. Below is an update on the progress
made on each of these initiatives during the first quarter
2023:
Pursue traditional offshore
markets – Gulf Island continues to fabricate structures
associated with its traditional offshore markets, including subsea
and offshore structures. Bidding activity in the Gulf of Mexico
remains active as evidenced by continued new awards momentum during
the first quarter 2023.
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 project opportunities remains active, driven by the strong
industry fundamentals combined with limited industry capacity. Gulf
Island was recently awarded a small fabrication contract in support
of an aerospace project, and the Company is in discussions with
several customers regarding additional fabrication
opportunities.
Grow and diversify services
business – Gulf Island continues to expand its Services
business with first quarter revenues growing 4.5% compared to the
first quarter 2022. Gulf Island remains encouraged by the positive
customer reception to its new Spark Safety services line, which
provides welding enclosures that create a safe environment for hot
work to be carried out without the need to shut down operations.
The Company commenced its second Spark Safety project in the first
quarter and expects the business line to be a material contributor
to growth in 2023.
Further strengthen project execution and
maintain bidding discipline – Project execution remained
strong in the first quarter with projects performing consistent
with as-sold estimates. Gulf Island will continue to take a
disciplined approach when bidding on large fabrication project
opportunities, especially given the challenges with availability of
skilled labor, while looking for ways to minimize the impact of the
suspension of its large fabrication project.
Expand skilled workforce – Gulf
Island made significant progress expanding its skilled services
labor force through its acquisition of a complimentary services and
industrial staffing business in late 2021, and the Services
Division has successfully maintained its headcount levels despite
the competitive industry-wide labor environment.
SEGMENT RESULTS FOR FIRST QUARTER
2023
Services Segment – Revenue for
the first quarter 2023 was $21.6 million, an increase of 4.5%
compared to the first quarter 2022. The increase was primarily due
to incremental revenue associated with the division’s new welding
enclosures business line (commenced in the third quarter 2022).
New project awards were $21.5 million for the
first quarter 2023, representing a 10.7% year-over-year increase,
and backlog totaled $1.2 million at March 31, 2023. The new
award growth was driven by the welding enclosures business line.
See “Non-GAAP Measures” below for the Company’s definition of new
project awards and backlog.
Operating income was $2.3 million for the first
quarter 2023, compared to $1.2 million for the first quarter 2022.
EBITDA for the first quarter was $2.8 million (or 12.9% of
revenue), versus $1.5 million (or 7.5% of revenue) for the prior
year period. Operating results for the first quarter 2023 benefited
from strong trends in the division’s legacy offshore services
business and a more favorable project margin mix, including the
benefit of the division’s welding enclosures 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 first quarter 2023 was $39.7 million, an increase of $34.0
million compared to the first quarter 2022. The increase was due to
higher small-scale fabrication activity and contribution from the
division’s large fabrication project prior to its suspension
(discussed below). A significant portion of the revenue recognized
on the large fabrication project was related to procurement
activities.
New project awards were $16.7 million for the
first quarter 2023, representing a 101.4% year-over-year increase,
and backlog totaled $87.3 million (inclusive of $75.9 million
related to the division’s suspended large fabrication project) at
March 31, 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.
No duration of the suspension or potential timing of recommencement
of the project was provided. See “Non-GAAP Measures” below for the
Company’s definition of new project awards and backlog.
Operating income was $2.2 million for the first
quarter 2023, compared to an operating loss of $2.9 million for the
first quarter 2022. EBITDA for the first quarter 2023 was $3.1
million, versus a loss of $2.1 million for the prior year period.
The improved profitability in 2023 was the result of higher revenue
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 suspension, offset partially by a lower margin mix relative to
2022 associated with small-scale fabrication work. See “Non-GAAP
Measures” below for the Company’s definition of EBITDA and a
reconciliation of the Fabrication Division operating income and
loss to EBITDA.
Shipyard Segment – Revenue for
the first quarter 2023 was $1.3 million, a decrease of $1.2 million
compared to the first quarter 2022. Revenue for both quarters
related entirely to the division’s seventy-vehicle ferry and
forty-vehicle ferry projects.
Operating loss was $2.2 million for the first
quarter 2023, compared to an operating loss of $1.2 million for the
first quarter 2022. Operating results for the first quarter 2023
and 2022 included vessel holding costs and legal and advisory fees
of $1.7 million and $0.9 million, respectively, associated with the
Company’s MPSV Litigation (defined below).
Corporate Segment – Operating
loss was $2.1 million for the first quarter 2023, compared to an
operating loss of $2.0 million for the first 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 anticipated to be completed by the
second quarter 2023 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 March 31, 2023 was $44.7 million, including $1.2
million of restricted cash associated with outstanding letters of
credit. At March 31, 2023, the Company had no bank debt.
FIRST QUARTER 2023 CONFERENCE CALL
Gulf Island will hold a conference call on
Tuesday, May 9, 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 1.855.327.6837 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
March 31, 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; the 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,
and the resumption of the Company’s suspended large fabrication
project; 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;
the operability and adequacy of its major equipment; the 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 |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
New project awards(2) |
|
$ |
37,628 |
|
|
$ |
37,945 |
|
|
$ |
27,606 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
62,168 |
|
|
$ |
38,139 |
|
|
$ |
28,686 |
|
Cost of revenue |
|
|
57,134 |
|
|
|
35,716 |
|
|
|
29,106 |
|
Gross profit (loss)(3) |
|
|
5,034 |
|
|
|
2,423 |
|
|
|
(420 |
) |
General and administrative
expense(4) |
|
|
5,067 |
|
|
|
5,249 |
|
|
|
4,110 |
|
Other (income) expense,
net(5) |
|
|
(361 |
) |
|
|
(3,206 |
) |
|
|
452 |
|
Operating income (loss) |
|
|
328 |
|
|
|
380 |
|
|
|
(4,982 |
) |
Interest (expense) income,
net |
|
|
320 |
|
|
|
190 |
|
|
|
(40 |
) |
Income (loss) before income taxes |
|
|
648 |
|
|
|
570 |
|
|
|
(5,022 |
) |
Income tax (expense)
benefit |
|
|
(7 |
) |
|
|
(21 |
) |
|
|
(5 |
) |
Net income (loss) |
|
$ |
641 |
|
|
$ |
549 |
|
|
$ |
(5,027 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss) per common share |
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
$ |
(0.32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA(2) (in
thousands)
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
Net Income (loss) |
|
$ |
641 |
|
|
$ |
549 |
|
|
$ |
(5,027 |
) |
Less: Income tax (expense)
benefit |
|
|
(7 |
) |
|
|
(21 |
) |
|
|
(5 |
) |
Less: Interest (expense)
income, net |
|
|
320 |
|
|
|
190 |
|
|
|
(40 |
) |
Operating income (loss) |
|
|
328 |
|
|
|
380 |
|
|
|
(4,982 |
) |
Add: Depreciation and
amortization |
|
|
1,333 |
|
|
|
1,334 |
|
|
|
1,251 |
|
EBITDA |
|
$ |
1,661 |
|
|
$ |
1,714 |
|
|
$ |
(3,731 |
) |
_________________
(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 the three months ended
December 31, 2022, includes project charges of $2.0 million, and
for each of the three months ended March 31, 2023, December 31,
2022 and March 31, 2022, includes vessel holding costs of $0.2
million, associated with the Company’s MPSV Litigation. |
(4) |
|
General and administrative expense for the Shipyard Division for
the three months ended March 31, 2023, December 31, 2022, March 31,
2022, includes legal and advisory fees of $1.7 million, $1.5
million and $0.7 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 December 31, 2022 includes net
gains of $0.2 million and $3.0 million, respectively, from
insurance recoveries associated with damage previously caused by
Hurricane Ida, and for the three months ended March 31, 2022,
includes charges of $0.3 million associated with damage previously
caused by Hurricane Ida. Other (income) expense for the Shipyard
Division for the three months ended March 31, 2023, includes
charges of $0.1 million associated with damage previously caused by
Hurricane Ida. |
|
|
|
Results of Operations by Segment (in
thousands)
|
|
Three Months Ended |
Services
Division |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
New project awards(1) |
|
$ |
21,472 |
|
|
$ |
21,274 |
|
|
$ |
19,402 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
21,587 |
|
|
$ |
21,609 |
|
|
$ |
20,664 |
|
Cost of revenue |
|
|
18,600 |
|
|
|
18,677 |
|
|
|
18,736 |
|
Gross profit |
|
|
2,987 |
|
|
|
2,932 |
|
|
|
1,928 |
|
General and administrative
expense |
|
|
710 |
|
|
|
717 |
|
|
|
729 |
|
Other (income) expense,
net |
|
|
(64 |
) |
|
|
3 |
|
|
|
12 |
|
Operating income |
|
$ |
2,341 |
|
|
$ |
2,212 |
|
|
$ |
1,187 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
2,341 |
|
|
$ |
2,212 |
|
|
$ |
1,187 |
|
Add: Depreciation and
amortization |
|
|
442 |
|
|
|
368 |
|
|
|
360 |
|
EBITDA |
|
$ |
2,783 |
|
|
$ |
2,580 |
|
|
$ |
1,547 |
|
|
|
Three Months Ended |
Fabrication
Division |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
New project awards(1) |
|
$ |
16,706 |
|
|
$ |
17,291 |
|
|
$ |
8,296 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
39,662 |
|
|
$ |
16,414 |
|
|
$ |
5,617 |
|
Cost of revenue |
|
|
37,200 |
|
|
|
14,624 |
|
|
|
7,638 |
|
Gross profit (loss) |
|
|
2,462 |
|
|
|
1,790 |
|
|
|
(2,021 |
) |
General and administrative
expense |
|
|
520 |
|
|
|
607 |
|
|
|
625 |
|
Other (income) expense,
net(2) |
|
|
(302 |
) |
|
|
(2,904 |
) |
|
|
287 |
|
Operating income (loss) |
|
$ |
2,244 |
|
|
$ |
4,087 |
|
|
$ |
(2,933 |
) |
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
2,244 |
|
|
$ |
4,087 |
|
|
$ |
(2,933 |
) |
Add: Depreciation and
amortization |
|
|
822 |
|
|
|
907 |
|
|
|
816 |
|
EBITDA |
|
$ |
3,066 |
|
|
$ |
4,994 |
|
|
$ |
(2,117 |
) |
|
|
Three Months Ended |
Shipyard
Division |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
New project awards(1) |
|
$ |
(122 |
) |
|
$ |
(379 |
) |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
1,347 |
|
|
$ |
357 |
|
|
$ |
2,497 |
|
Cost of revenue |
|
|
1,762 |
|
|
|
2,656 |
|
|
|
2,824 |
|
Gross loss(3) |
|
|
(415 |
) |
|
|
(2,299 |
) |
|
|
(327 |
) |
General and administrative
expense(4) |
|
|
1,713 |
|
|
|
1,530 |
|
|
|
746 |
|
Other (income) expense,
net(5) |
|
|
75 |
|
|
|
(240 |
) |
|
|
115 |
|
Operating loss |
|
$ |
(2,203 |
) |
|
$ |
(3,589 |
) |
|
$ |
(1,188 |
) |
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,203 |
) |
|
$ |
(3,589 |
) |
|
$ |
(1,188 |
) |
Add: Depreciation and
amortization |
|
|
- |
|
|
|
- |
|
|
|
- |
|
EBITDA |
|
$ |
(2,203 |
) |
|
$ |
(3,589 |
) |
|
$ |
(1,188 |
) |
|
|
Three Months Ended |
Corporate
Division |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
New project awards (eliminations)(1) |
|
$ |
(428 |
) |
|
$ |
(241 |
) |
|
$ |
(92 |
) |
|
|
|
|
|
|
|
|
|
|
Revenue (eliminations) |
|
$ |
(428 |
) |
|
$ |
(241 |
) |
|
$ |
(92 |
) |
Cost of revenue |
|
|
(428 |
) |
|
|
(241 |
) |
|
|
(92 |
) |
Gross profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
General and administrative
expense |
|
|
2,124 |
|
|
|
2,395 |
|
|
|
2,010 |
|
Other (income) expense,
net |
|
|
(70 |
) |
|
|
(65 |
) |
|
|
38 |
|
Operating loss |
|
$ |
(2,054 |
) |
|
$ |
(2,330 |
) |
|
$ |
(2,048 |
) |
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,054 |
) |
|
$ |
(2,330 |
) |
|
$ |
(2,048 |
) |
Add: Depreciation and
amortization |
|
|
69 |
|
|
|
59 |
|
|
|
75 |
|
EBITDA |
|
$ |
(1,985 |
) |
|
$ |
(2,271 |
) |
|
$ |
(1,973 |
) |
_________________
(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 December 31, 2022 includes net
gains of $0.2 million and $3.0 million, respectively, from
insurance recoveries associated with damage previously caused by
Hurricane Ida, and for the three months ended March 31, 2022,
includes charges of $0.3 million associated with damage previously
caused by Hurricane Ida. |
(3) |
|
Gross loss for the Shipyard Division for the three months ended
December 31, 2022, includes project charges of $2.0 million, and
for each of the three months ended March 31, 2023, December 31,
2022 and March 31, 2022, includes vessel holding costs of $0.2
million, associated with the Company’s MPSV Litigation. |
(4) |
|
General and administrative expense for the Shipyard Division for
the three months ended March 31, 2023, December 31, 2022, March 31,
2022, includes legal and advisory fees of $1.7 million, $1.5
million and $0.7 million, respectively, associated with the
Company’s MPSV Litigation. |
(5) |
|
Other (income) expense for the Shipyard Division for the three
months ended March 31, 2023, includes charges of $0.1 million
associated with damage previously caused by Hurricane Ida. |
|
|
|
Consolidated Balance Sheets (in thousands)
|
|
March 31,2023 |
|
December 31,2022 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
28,520 |
|
|
$ |
33,221 |
|
Restricted cash, current |
|
|
1,197 |
|
|
|
1,603 |
|
Short-term investments |
|
|
14,989 |
|
|
|
9,905 |
|
Contract receivables and retainage, net |
|
|
43,545 |
|
|
|
29,427 |
|
Contract assets |
|
|
5,538 |
|
|
|
4,839 |
|
Prepaid expenses and other assets |
|
|
5,917 |
|
|
|
6,475 |
|
Inventory |
|
|
2,543 |
|
|
|
1,599 |
|
Total current assets |
|
|
102,249 |
|
|
|
87,069 |
|
Property, plant and equipment,
net |
|
|
30,501 |
|
|
|
31,154 |
|
Goodwill |
|
|
2,217 |
|
|
|
2,217 |
|
Other intangibles, net |
|
|
806 |
|
|
|
842 |
|
Other noncurrent assets |
|
|
13,277 |
|
|
|
13,584 |
|
Total assets |
|
$ |
149,050 |
|
|
$ |
134,866 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
26,547 |
|
|
$ |
8,310 |
|
Contract liabilities |
|
|
4,388 |
|
|
|
8,196 |
|
Accrued expenses and other liabilities |
|
|
13,896 |
|
|
|
14,283 |
|
Total current liabilities |
|
|
44,831 |
|
|
|
30,789 |
|
Other noncurrent liabilities |
|
|
1,258 |
|
|
|
1,453 |
|
Total liabilities |
|
|
46,089 |
|
|
|
32,242 |
|
Shareholders’ equity: |
|
|
|
|
|
|
Preferred stock, no par value, 5,000 shares authorized, no
sharesissued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, no par value, 30,000 shares authorized, 16,055 shares
issuedand outstanding at March 31, 2023 and 15,973 at December 31,
2022 |
|
|
11,624 |
|
|
|
11,591 |
|
Additional paid-in capital |
|
|
107,667 |
|
|
|
107,372 |
|
Accumulated deficit |
|
|
(16,330 |
) |
|
|
(16,339 |
) |
Total shareholders’ equity |
|
|
102,961 |
|
|
|
102,624 |
|
Total liabilities and shareholders’ equity |
|
$ |
149,050 |
|
|
$ |
134,866 |
|
|
|
|
|
|
|
|
|
|
Consolidated Cash Flows (in thousands)
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2023 |
|
2022 |
|
2022 |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
641 |
|
|
$ |
549 |
|
|
$ |
(5,027 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,333 |
|
|
|
1,334 |
|
|
|
1,251 |
|
(Gain) loss on sale or disposal of fixed assets, net |
|
|
(64 |
) |
|
|
98 |
|
|
|
(25 |
) |
Gain on insurance recoveries |
|
|
(245 |
) |
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
|
509 |
|
|
|
838 |
|
|
|
571 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
|
(14,540 |
) |
|
|
3,585 |
|
|
|
(7,657 |
) |
Contract assets |
|
|
(699 |
) |
|
|
2,968 |
|
|
|
2,065 |
|
Prepaid expenses, inventory and other current assets |
|
|
147 |
|
|
|
1,021 |
|
|
|
(2,070 |
) |
Accounts payable |
|
|
18,135 |
|
|
|
(3,899 |
) |
|
|
346 |
|
Contract liabilities |
|
|
(3,808 |
) |
|
|
3,903 |
|
|
|
(2,450 |
) |
Accrued expenses and other current liabilities |
|
|
62 |
|
|
|
(273 |
) |
|
|
1,792 |
|
Noncurrent assets and liabilities, net |
|
|
(175 |
) |
|
|
(222 |
) |
|
|
(147 |
) |
Net cash provided by (used in) operating activities |
|
|
1,296 |
|
|
|
9,902 |
|
|
|
(11,351 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(487 |
) |
|
|
(2,054 |
) |
|
|
(440 |
) |
Proceeds from sale of property and equipment |
|
|
106 |
|
|
|
— |
|
|
|
25 |
|
Recoveries from insurance claims |
|
|
245 |
|
|
|
— |
|
|
|
— |
|
Purchases of short-term investments |
|
|
(15,083 |
) |
|
|
(96 |
) |
|
|
— |
|
Maturities of short-term investments |
|
|
10,000 |
|
|
|
— |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(5,219 |
) |
|
|
(2,150 |
) |
|
|
(415 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
Payments on Insurance Finance Arrangements |
|
|
(1,003 |
) |
|
|
(775 |
) |
|
|
— |
|
Tax payments for vested stock withholdings |
|
|
(181 |
) |
|
|
(113 |
) |
|
|
(59 |
) |
Net cash used in financing activities |
|
|
(1,184 |
) |
|
|
(888 |
) |
|
|
(59 |
) |
Net increase (decrease) in cash,
cash equivalents and restricted cash |
|
|
(5,107 |
) |
|
|
6,864 |
|
|
|
(11,825 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
34,824 |
|
|
|
27,960 |
|
|
|
54,589 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
29,717 |
|
|
$ |
34,824 |
|
|
$ |
42,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Island Fabrication (NASDAQ:GIFI)
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