FOURTH QUARTER 2023 SUMMARY
- Consolidated revenue of
$44.6 million - Consolidated net income of
$7.1 million ; Adjusted EBITDA of$6.6 million - Services Division operating income of
$2.7 million ; EBITDA of$3.2 million - Fabrication Division operating income of
$6.1 million ; Adjusted EBITDA of$5.4 million - Cash and short-term investments balance of
$47.9 million atDecember 31, 2023 - Substantially completed remaining ferry projects for the Shipyard Division
Consolidated revenue for the fourth quarter 2023 was
FULL YEAR 2023 SUMMARY
- Consolidated revenue of
$151.1 million ; Adjusted revenue of$181.5 million - Consolidated net loss of
$24.4 million ; Adjusted EBITDA of$17.0 million - Services Division operating income of
$10.9 million ; EBITDA of$12.9 million - Fabrication Division operating income of
$10.6 million ; Adjusted EBITDA of$11.8 million - Resolved MPSV Litigation
Consolidated revenue for the full year 2023 was
Consolidated net loss for the full year 2023 was
See “Non-GAAP Measures” below for the Company’s definition of adjusted revenue, EBITDA and adjusted EBITDA and reconciliations of the relevant amounts to the most comparable GAAP measures.
MANAGEMENT COMMENTARY
“Our strong fourth quarter results cap off an excellent year for Gulf Island and reflect the continued favorable end market trends in our core
“I am proud of the continued execution of our strategic plan during 2023, and we enter 2024 in a strong position to continue our focus on profitable growth,” continued Heo. “While we continued to make important progress on our initiatives focused on the services and fabrication businesses, the most important achievements of 2023 center on the substantial completion of our shipyard wind down and the successful resolution of the MPSV Litigation. With these distractions behind us, we are fully focused on taking advantage of the strong growth platform we have created in our services and fabrication businesses and utilizing our solid financial position to deploy capital to further enhance shareholder value.”
“Our services and small-scale fabrication businesses form a profitable and stable base business for Gulf Island to continue to build on,” continued Heo. “During 2024, we expect favorable market conditions and continued execution of our strategic initiatives to drive continued growth in these core businesses. For 2024, we expect Services EBITDA of approximately
“Our strong operating results for the fourth quarter, together with an ongoing focus on working capital management, resulted in a year-end cash balance of nearly
“This was an exciting year for Gulf Island, one that would not have been possible without the hard work and dedication of our employees across the organization,” noted Heo. “While we remain encouraged by the large project opportunities in our fabrication business, we are excited by the momentum in our services and small-scale fabrication businesses, which combined with our ability to take advantage of our strong financial flexibility, position the company to drive value for shareholders. I am very proud of all our accomplishments during 2023, and remain confident that 2024 will build on the strong foundation we have established,” concluded Heo.
RESOLUTION OF MPSV LITIGATION
As previously disclosed, on
STRATEGIC UPDATE
During 2023, Gulf Island continued to execute on the second phase of its strategic transformation, which is focused on generating stable, profitable growth based on pursuing new growth end markets, growing and diversifying its services business, further strengthening project execution, and expanding its skilled workforce, while continuing to pursue opportunities in its traditional offshore markets. Some of the key accomplishments achieved during 2023, as well as key priorities for 2024, are as follows:
Pursue traditional offshore markets – The demand environment for traditional offshore activities in the
Pursue new growth end markets – Gulf Island has a strong foundation to pursue new growth opportunities in its core
Grow and diversify services business – Gulf Island continues to expand its services business, driven by the favorable demand trends for offshore services combined with the contribution of Spark Safety, the Services Division’s welding enclosures business line. Services revenue grew by 7.5% during 2023, and for 2024, the Company is focused on strategic opportunities that capitalize on the opportunities in the
Further strengthen project execution and maintain bidding discipline – Project execution and bidding discipline remain a key priority given inflationary pressures and challenges with the availability of skilled labor. The Company’s pursuit of consistent project execution was reflected in the strong margin performance during 2023, with Services gross margins expanding 180 basis points year-over-year, and Fabrication gross margins reaching 11.4% for 2023 despite the partial under-utilization of the division’s facilities and resources. Gulf Island will maintain its focus on project execution in 2024 and remain disciplined in pursuing projects that provide adequate risk-adjusted returns.
Expand skilled workforce – A strong skilled workforce is critical to success in the services and fabrication markets, particularly given the current competitive industry-wide labor environment. Gulf Island was able to maintain its skilled labor headcount in Services during 2023 despite the challenging labor environment. The Company remains confident in its proven ability to ramp up headcount in Fabrication to support new project awards, which places the Company in a strong position to grow its fabrication business. The Company continues to evaluate opportunities to expand its skilled labor headcount in 2024 given the favorable demand trends, including strategic acquisitions to increase craft labor headcount.
SEGMENT RESULTS FOR FOURTH QUARTER 2023
Services Segment – Revenue for the fourth quarter 2023 was
New project awards were
Operating income was
Fabrication Segment – Revenue for the fourth quarter 2023 was
New project awards were
Operating income was
Shipyard Segment – Revenue for the fourth quarter 2023 was
Operating loss was
Corporate Segment – Operating loss was
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 were substantially completed in the fourth quarter 2023, and vessel holding costs and legal fees associated with the Company’s previous MPSV Litigation (discussed above). The wind down of the Company’s Shipyard Segment operations was substantially completed in the fourth quarter 2023 with the substantial completion of the ferry projects. 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
2024 FINANCIAL OUTLOOK
Gulf Island is providing indicative segment and consolidated guidance for the full year 2024. Services segment EBITDA is expected to be approximately
FOURTH QUARTER 2023 CONFERENCE CALL
Gulf Island will hold a conference call on Thursday, March, 7, 2024 at
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
NON-GAAP MEASURES
This release includes certain non-GAAP measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted revenue, adjusted gross profit, new project awards and backlog. The Company believes EBITDA is a useful supplemental measure as it reflects the Company’s operating results and expectations of future performance 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 adjusted to remove certain nonrecurring items (including the impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida and certain non-cash impairment charges) and the operating results of the Company’s Shipyard Division (including the impact of certain nonrecurring items related to the resolution of the MPSV Litigation), which was substantially wound down in the fourth quarter 2023. The Company believes adjusted revenue and adjusted gross profit are useful supplemental measures as they reflect the Company’s revenue, and gross profit or loss, adjusted to remove revenue, and gross profit or loss, for the Company’s Shipyard Division (including the impact of certain nonrecurring items related to the resolution of the MPSV Litigation), which was substantially wound down in the fourth quarter 2023. Reconciliations of EBITDA, adjusted EBITDA, adjusted revenue and adjusted gross profit to the most comparable GAAP measures are presented under “Consolidated Results of Operations,” “Results of Operations by Segment” and “2024 Financial Outlook – Segment and Consolidated EBITDA Reconciliations” 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
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 STATEMENT
This release contains forward-looking statements in which the Company discusses its potential future performance, operations and projects. Forward-looking statements, within the meaning of the safe harbor provisions of the
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, inflationary pressures, economic slowdowns and recessions, natural disasters, public health crises, labor costs and geopolitical conflicts, and the related volatility in oil and gas prices and other factors impacting the global economy; cyclical nature of the oil and gas industry; 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; its 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 availability and limits on insurance coverage; operability and adequacy of its major equipment; 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 resolve any material legal proceedings; its ability to execute its share repurchase program and enhance shareholder value; 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
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
Chief Executive Officer 713.714.6100 | Chief Financial Officer 713.714.6100 | |
Consolidated Results of Operations(1) (in thousands, except per share data)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
New project awards(2) | $ | 44,400 | $ | 38,417 | $ | 37,945 | $ | 157,719 | $ | 240,247 | |||||||||
Revenue | $ | 44,550 | $ | 5,023 | $ | 38,139 | $ | 151,067 | $ | 142,320 | |||||||||
Cost of revenue | 36,087 | 34,902 | 35,716 | 162,968 | 134,425 | ||||||||||||||
Gross profit (loss)(3) | 8,463 | (29,879 | ) | 2,423 | (11,901 | ) | 7,895 | ||||||||||||
General and administrative expense(4) | 3,395 | 4,080 | 5,249 | 16,278 | 18,214 | ||||||||||||||
Other (income) expense, net(5) | (1,607 | ) | (324 | ) | (3,206 | ) | (2,296 | ) | (6,904 | ) | |||||||||
Operating income (loss) | 6,675 | (33,635 | ) | 380 | (25,883 | ) | (3,415 | ) | |||||||||||
Interest (expense) income, net | 383 | 397 | 190 | 1,440 | 86 | ||||||||||||||
Income (loss) before income taxes | 7,058 | (33,238 | ) | 570 | (24,443 | ) | (3,329 | ) | |||||||||||
Income tax (expense) benefit | 32 | 3 | (21 | ) | 41 | (23 | ) | ||||||||||||
Net income (loss) | $ | 7,090 | $ | (33,235 | ) | $ | 549 | $ | (24,402 | ) | $ | (3,352 | ) | ||||||
Per share data: | |||||||||||||||||||
Basic income (loss) per share | $ | 0.44 | $ | (2.04 | ) | $ | 0.04 | $ | (1.51 | ) | $ | (0.21 | ) | ||||||
Diluted income (loss) per share | $ | 0.43 | $ | (2.04 | ) | $ | 0.04 | $ | (1.51 | ) | $ | (0.21 | ) | ||||||
Consolidated Adjusted Revenue(2) Reconciliation (in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Revenue | $ | 44,550 | $ | 5,023 | $ | 38,139 | $ | 151,067 | $ | 142,320 | |||||||||
Add (less): Shipyard revenue | (556 | ) | 32,702 | (357 | ) | 30,417 | (7,671 | ) | |||||||||||
Adjusted revenue | $ | 43,994 | $ | 37,725 | $ | 37,782 | $ | 181,484 | $ | 134,649 | |||||||||
Consolidated Adjusted Gross Profit(2) Reconciliation (in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Gross profit (loss) | $ | 8,463 | $ | (29,879 | ) | $ | 2,423 | $ | (11,901 | ) | $ | 7,895 | |||||||
Add (less): Shipyard gross loss (profit) | (93 | ) | 34,356 | 2,299 | 35,862 | 3,058 | |||||||||||||
Adjusted gross profit | $ | 8,370 | $ | 4,477 | $ | 4,722 | $ | 23,961 | $ | 10,953 | |||||||||
Consolidated EBITDA and Adjusted EBITDA(2) Reconciliations (in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Net income (loss) | $ | 7,090 | $ | (33,235 | ) | $ | 549 | $ | (24,402 | ) | $ | (3,352 | ) | ||||||
Less: Income tax (expense) benefit | 32 | 3 | (21 | ) | 41 | (23 | ) | ||||||||||||
Less: Interest (expense) income, net | 383 | 397 | 190 | 1,440 | 86 | ||||||||||||||
Operating income (loss) | 6,675 | (33,635 | ) | 380 | (25,883 | ) | (3,415 | ) | |||||||||||
Add: Depreciation and amortization | 1,351 | 1,390 | 1,334 | 5,466 | 5,098 | ||||||||||||||
EBITDA | 8,026 | (32,245 | ) | 1,714 | (20,417 | ) | 1,683 | ||||||||||||
Less: Hurricane insurance gains | (1,526 | ) | (291 | ) | (3,010 | ) | (1,988 | ) | (7,456 | ) | |||||||||
Add: Non-cash impairments | - | - | - | - | 484 | ||||||||||||||
Add: Shipyard operating loss | 106 | 35,117 | 3,589 | 39,374 | 7,554 | ||||||||||||||
Adjusted EBITDA | $ | 6,606 | $ | 2,581 | $ | 2,293 | $ | 16,969 | $ | 2,265 |
_________________
(1) | See “Results of Operations by Segment” below for results by segment. |
(2) | New projects awards, adjusted revenue, adjusted gross profit, EBITDA and adjusted EBITDA are non-GAAP measures. See “Non-GAAP Measures” above for the Company’s definition of new project awards, adjusted revenue, adjusted gross profit, EBITDA and adjusted EBITDA. |
(3) | Gross profit for the Fabrication Division for the three months ended |
(4) | General and administrative expense for the Shipyard Division for the three months ended |
(5) | Other (income) expense for the Fabrication Division for the three months ended |
Results of Operations by Segment (including Reconciliations of EBITDA and Adjusted EBITDA) (in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Services Division | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
New project awards(1) | $ | 24,150 | $ | 22,776 | $ | 21,274 | $ | 92,728 | $ | 85,846 | |||||||||
Revenue | $ | 24,515 | $ | 22,976 | $ | 21,609 | $ | 93,548 | $ | 87,022 | |||||||||
Cost of revenue | 21,080 | 19,716 | 18,677 | 79,765 | 75,795 | ||||||||||||||
Gross profit | 3,435 | 3,260 | 2,932 | 13,783 | 11,227 | ||||||||||||||
General and administrative expense | 699 | 701 | 717 | 2,902 | 2,997 | ||||||||||||||
Other (income) expense, net | (6 | ) | (18 | ) | 3 | (48 | ) | 106 | |||||||||||
Operating income | $ | 2,742 | $ | 2,577 | $ | 2,212 | $ | 10,929 | $ | 8,124 | |||||||||
EBITDA(1) | |||||||||||||||||||
Operating income | $ | 2,742 | $ | 2,577 | $ | 2,212 | $ | 10,929 | $ | 8,124 | |||||||||
Add: Depreciation and amortization | 486 | 502 | 368 | 1,926 | 1,496 | ||||||||||||||
EBITDA | $ | 3,228 | $ | 3,079 | $ | 2,580 | $ | 12,855 | $ | 9,620 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Fabrication Division | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
New project awards(1) | $ | 19,896 | $ | 16,589 | $ | 17,291 | $ | 66,629 | $ | 154,239 | |||||||||
Revenue | $ | 19,664 | $ | 14,979 | $ | 16,414 | $ | 89,046 | $ | 48,299 | |||||||||
Cost of revenue | 14,729 | 13,762 | 14,624 | 78,868 | 48,573 | ||||||||||||||
Gross profit (loss)(2) | 4,935 | 1,217 | 1,790 | 10,178 | (274 | ) | |||||||||||||
General and administrative expense | 447 | 448 | 607 | 1,885 | 2,306 | ||||||||||||||
Other (income) expense, net(3) | (1,627 | ) | (135 | ) | (2,904 | ) | (2,265 | ) | (7,454 | ) | |||||||||
Operating income | $ | 6,115 | $ | 904 | $ | 4,087 | $ | 10,558 | $ | 4,874 | |||||||||
EBITDA and Adjusted EBITDA(1) | |||||||||||||||||||
Operating income | $ | 6,115 | $ | 904 | $ | 4,087 | $ | 10,558 | $ | 4,874 | |||||||||
Add: Depreciation and amortization | 789 | 813 | 907 | 3,249 | 3,343 | ||||||||||||||
EBITDA | 6,904 | 1,717 | 4,994 | 13,807 | 8,217 | ||||||||||||||
Less: Hurricane insurance gains | (1,526 | ) | (291 | ) | (3,010 | ) | (1,988 | ) | (7,456 | ) | |||||||||
Adjusted EBITDA | $ | 5,378 | $ | 1,426 | $ | 1,984 | $ | 11,819 | $ | 761 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Shipyard Division | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
New project awards(1) | $ | 539 | $ | (718 | ) | $ | (379 | ) | $ | (528 | ) | $ | 834 | ||||||
Revenue | $ | 556 | $ | (32,702 | ) | $ | 357 | $ | (30,417 | ) | $ | 7,671 | |||||||
Cost of revenue | 463 | 1,654 | 2,656 | 5,445 | 10,729 | ||||||||||||||
Gross profit (loss)(4) | 93 | (34,356 | ) | (2,299 | ) | (35,862 | ) | (3,058 | ) | ||||||||||
General and administrative expense(5) | 98 | 857 | 1,530 | 3,205 | 4,469 | ||||||||||||||
Other (income) expense, net(6) | 101 | (96 | ) | (240 | ) | 307 | 27 | ||||||||||||
Operating loss | $ | (106 | ) | $ | (35,117 | ) | $ | (3,589 | ) | $ | (39,374 | ) | $ | (7,554 | ) | ||||
EBITDA(1) | |||||||||||||||||||
Operating loss | $ | (106 | ) | $ | (35,117 | ) | $ | (3,589 | ) | $ | (39,374 | ) | $ | (7,554 | ) | ||||
Add: Depreciation and amortization | - | - | - | - | - | ||||||||||||||
EBITDA | $ | (106 | ) | $ | (35,117 | ) | $ | (3,589 | ) | $ | (39,374 | ) | $ | (7,554 | ) |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Corporate Division | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
New project awards (eliminations)(1) | $ | (185 | ) | $ | (230 | ) | $ | (241 | ) | $ | (1,110 | ) | $ | (672 | ) | ||||
Revenue (eliminations) | $ | (185 | ) | $ | (230 | ) | $ | (241 | ) | $ | (1,110 | ) | $ | (672 | ) | ||||
Cost of revenue (eliminations) | (185 | ) | (230 | ) | (241 | ) | (1,110 | ) | (672 | ) | |||||||||
Gross profit | - | - | - | - | - | ||||||||||||||
General and administrative expense | 2,151 | 2,074 | 2,395 | 8,286 | 8,442 | ||||||||||||||
Other (income) expense, net(7) | (75 | ) | (75 | ) | (65 | ) | (290 | ) | 417 | ||||||||||
Operating loss | $ | (2,076 | ) | $ | (1,999 | ) | $ | (2,330 | ) | $ | (7,996 | ) | $ | (8,859 | ) | ||||
EBITDA and Adjusted EBITDA(1) | |||||||||||||||||||
Operating loss | $ | (2,076 | ) | $ | (1,999 | ) | $ | (2,330 | ) | $ | (7,996 | ) | $ | (8,859 | ) | ||||
Add: Depreciation and amortization | 76 | 75 | 59 | 291 | 259 | ||||||||||||||
EBITDA | (2,000 | ) | (1,924 | ) | (2,271 | ) | (7,705 | ) | (8,600 | ) | |||||||||
Add: Non-cash impairments | - | - | - | - | 484 | ||||||||||||||
Adjusted EBITDA | $ | (2,000 | ) | $ | (1,924 | ) | $ | (2,271 | ) | $ | (7,705 | ) | $ | (8,116 | ) |
_________________
(1) | New projects awards, EBITDA and adjusted EBITDA are non-GAAP measures. See “Non-GAAP Measures” above for the Company’s definition of new project awards, EBITDA and adjusted EBITDA. |
(2) | Gross profit for the Fabrication Division for the three months ended |
(3) | Other (income) expense for the Fabrication Division for the three months ended |
(4) | Gross loss for the Shipyard Division for the three months ended |
(5) | General and administrative expense for the Shipyard Division for the three months ended |
(6) | Other (income) expense for the Shipyard Division for the three months ended |
(7) | Other (income) expense for the Corporate Division for the twelve months ended |
Consolidated Balance Sheets (in thousands)
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 38,176 | $ | 33,221 | |||
Restricted cash | 1,475 | 1,603 | |||||
Short-term investments | 8,233 | 9,905 | |||||
Contract receivables and retainage, net | 36,298 | 29,427 | |||||
Contract assets | 2,739 | 4,839 | |||||
Prepaid expenses and other assets | 6,994 | 6,475 | |||||
Inventory | 2,072 | 1,599 | |||||
Assets held for sale | 5,640 | — | |||||
Total current assets | 101,627 | 87,069 | |||||
Property, plant and equipment, net | 23,145 | 31,154 | |||||
2,217 | 2,217 | ||||||
Other intangibles, net | 700 | 842 | |||||
Other noncurrent assets | 739 | 13,584 | |||||
Total assets | $ | 128,428 | $ | 134,866 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,466 | $ | 8,310 | |||
Contract liabilities | 5,470 | 8,196 | |||||
Accrued expenses and other liabilities | 14,836 | 14,283 | |||||
Long-term debt, current | 1,075 | — | |||||
Total current liabilities | 29,847 | 30,789 | |||||
Long-term debt, noncurrent | 18,925 | — | |||||
Other noncurrent liabilities | 685 | 1,453 | |||||
Total liabilities | 49,457 | 32,242 | |||||
Shareholders’ equity: | |||||||
Preferred stock, no par value, 5,000 shares authorized, no shares issued and outstanding | — | — | |||||
Common stock, no par value, 30,000 shares authorized, 16,258 issued and outstanding at | 11,729 | 11,591 | |||||
Additional paid-in capital | 108,615 | 107,372 | |||||
Accumulated deficit | (41,373 | ) | (16,339 | ) | |||
Total shareholders’ equity | 78,971 | 102,624 | |||||
Total liabilities and shareholders’ equity | $ | 128,428 | $ | 134,866 | |||
Consolidated Cash Flows (in thousands)
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | $ | 7,090 | $ | (33,235 | ) | $ | 549 | $ | (24,402 | ) | $ | (3,352 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||||
Depreciation and amortization | 1,351 | 1,390 | 1,334 | 5,466 | 5,098 | ||||||||||||||
Asset impairments | — | — | — | — | 484 | ||||||||||||||
Change in allowance for doubtful accounts and credit losses | — | (210 | ) | — | (410 | ) | — | ||||||||||||
(Gain) loss on sale or disposal of fixed assets, net | 276 | (216 | ) | 98 | 27 | 19 | |||||||||||||
Gain on insurance recoveries | (326 | ) | — | — | (571 | ) | (1,200 | ) | |||||||||||
Stock-based compensation expense | 525 | 513 | 838 | 1,991 | 2,302 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Contract receivables and retainage, net | (614 | ) | 631 | 3,585 | (7,093 | ) | (13,441 | ) | |||||||||||
Contract assets | 1,566 | 2,357 | 2,968 | 2,100 | (80 | ) | |||||||||||||
Prepaid expenses, inventory and other current assets | (2,962 | ) | 1,874 | 1,021 | (133 | ) | 2,224 | ||||||||||||
Accounts payable | (2,923 | ) | (5,828 | ) | (3,899 | ) | (9 | ) | (1,088 | ) | |||||||||
Contract liabilities | 1,936 | 469 | 3,903 | (2,726 | ) | 1,548 | |||||||||||||
Accrued expenses and other current liabilities | 1,579 | 2,020 | (273 | ) | 1,206 | (561 | ) | ||||||||||||
Noncurrent assets and liabilities, net | (129 | ) | 32,256 | (222 | ) | 31,751 | (876 | ) | |||||||||||
Net cash provided by (used in) operating activities | 7,369 | 2,021 | 9,902 | 7,197 | (8,923 | ) | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | (1,175 | ) | (645 | ) | (2,054 | ) | (2,876 | ) | (3,086 | ) | |||||||||
Proceeds from Shipyard Transaction | — | — | — | — | 886 | ||||||||||||||
Proceeds from sale of property and equipment | 60 | 290 | — | 456 | 2,035 | ||||||||||||||
Recoveries from insurance claims | — | — | — | 245 | 1,200 | ||||||||||||||
Purchases of short-term investments | (8,297 | ) | (15,471 | ) | (96 | ) | (39,028 | ) | (9,905 | ) | |||||||||
Maturities of short-term investments | 15,500 | 15,200 | — | 40,700 | — | ||||||||||||||
Net cash provided by (used in) investing activities | 6,088 | (626 | ) | (2,150 | ) | (503 | ) | (8,870 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Payments on Insurance Finance Arrangements | — | (128 | ) | (775 | ) | (1,257 | ) | (1,738 | ) | ||||||||||
Repurchases of common stock | (128 | ) | — | — | (128 | ) | — | ||||||||||||
Tax payments for vested stock withholdings | — | — | (113 | ) | (482 | ) | (234 | ) | |||||||||||
Net cash used in financing activities | (128 | ) | (128 | ) | (888 | ) | (1,867 | ) | (1,972 | ) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 13,329 | 1,267 | 6,864 | 4,827 | (19,765 | ) | |||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 26,322 | 25,055 | 27,960 | 34,824 | 54,589 | ||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 39,651 | $ | 26,322 | $ | 34,824 | $ | 39,651 | $ | 34,824 | |||||||||
2024 Financial Outlook - Segment and Consolidated EBITDA(1) Reconciliations (in thousands)
Twelve Months Ending | |||||||||||||||||||
Services | Fabrication | Shipyard | Corporate | Consolidated | |||||||||||||||
Net income (loss) | $ | 12,000 | $ | 5,200 | $ | - | $ | (6,400 | ) | $ | 10,800 | ||||||||
Less: Income tax (expense) benefit | - | - | - | - | - | ||||||||||||||
Less: Interest (expense) income, net | - | - | - | 1,900 | 1,900 | ||||||||||||||
Operating income (loss) | 12,000 | 5,200 | - | (8,300 | ) | 8,900 | |||||||||||||
Add: Depreciation and amortization | 2,000 | 2,800 | - | 300 | 5,100 | ||||||||||||||
EBITDA (2) | $ | 14,000 | $ | 8,000 | $ | - | $ | (8,000 | ) | $ | 14,000 |
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(1) | EBITDA is a non-GAAP measure. See “Non-GAAP Measures” above for the Company’s definition of EBITDA. |
(2) | Excludes a gain of approximately |
Source:
2024 GlobeNewswire, Inc., source