Gulf Island Reports First Quarter 2022 Results
Gulf Island Fabrication, Inc. (GIFI) reported a 20.6% revenue increase to $28.7 million for Q1 2022 compared to Q1 2021. However, the company faced a net loss of $5.0 million, up from a $2.4 million loss year-over-year. The Services Division experienced substantial growth, with revenue rising to $20.7 million, aided by the DSS Acquisition. Conversely, the Fabrication Segment saw a revenue decrease of $6.1 million, resulting in an operating loss of $2.9 million. Gulf Island ended Q1 2022 with a cash balance of $42.8 million and no debt, positioning for future growth.
- 20.6% revenue increase to $28.7 million y/y.
- Significant growth in Services Division revenue to $20.7 million.
- New project awards in Services increased by 202% to $19.4 million.
- Cash balance of $42.8 million with no debt.
- Net loss from continuing operations increased to $5.0 million.
- Non-GAAP EBITDA loss increased to $3.7 million.
- Fabrication Segment revenue decreased by $6.1 million.
- Operating loss of $2.9 million in Fabrication Segment.
HOUSTON, May 10, 2022 (GLOBE NEWSWIRE) -- 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 2022.
FIRST QUARTER 2022 SUMMARY (as compared to the first quarter 2021)
- Revenue of
$28.7 million ,20.6% increase y/y - Net loss from Continuing Operations of
$5.0 million ,$2.6 million increase y/y - Non-GAAP EBITDA loss from Continuing Operations of
$3.7 million ,$2.6 million increase y/y - Operating income for Services Division of
$1.2 million ,$0.9 million increase y/y - Non-GAAP EBITDA for Services Division of
$1.5 million ,$1.1 million increase y/y - Cash balance of
$42.8 million at March 31, 2022
Consolidated revenue for the first quarter 2022 was
MANAGEMENT COMMENTARY
“We had a strong first quarter in our Services business, and we continued to experience good execution in our Fabrication business, though near-term volumes remain challenged,” said Richard Heo, Gulf Island’s President and Chief Executive Officer. “We nearly doubled our Services revenue and more than tripled our Services EBITDA during the first quarter, owing to favorable end market trends and the benefit of the DSS Acquisition. We are encouraged by the opportunities for our expanded services platform and are well-positioned for continued growth given our accelerating business momentum and improved competitive positioning following the acquisition.”
“We highlighted last quarter that we were committed to taking a measured and disciplined approach when bidding on large fabrication projects, and we believe our strategy is beginning to pay off as we are seeing a noticeable tightening in industry capacity,” continued Heo. “The surge in energy prices has accelerated project activity in the Gulf Coast region and current fabrication capacity will be challenged to satisfy the growing demand. We are encouraged by these developments and believe our skilled craft workforce, strategic location, and strong history of execution position us to take advantage of these trends.”
“Our expanded services platform has quickly become a key part of our growth strategy, which is demonstrated by our decision to break out the business as a separate reportable segment,” stated Westley Stockton, Gulf Island’s Chief Financial Officer. “In addition, our liquidity position was consistent with our expectations, ending the quarter with almost
“Our measured and disciplined approach to the growth phase of our strategic transformation is beginning to take shape,” noted Heo. “It has taken a lot of hard work to get to this position, and I am excited about the opportunities for Gulf Island in the coming years,” concluded Heo.
STRATEGIC UPDATE
During 2021, management shifted to the next phase of its strategic transformation, which is focused on generating stable, profitable growth for the Company based on pursuing new growth end markets, growing and diversifying the Company’s Services business, further strengthening project execution, and expanding the Company’s skilled labor workforce. Below is an update on the progress made on each of these initiatives during the first quarter:
Pursue new growth end markets – The Company has focused its near-term business development efforts on higher-growth end markets such as LNG and petrochemical, with an eye towards pursuing opportunities in the rapidly growing energy transition market over time. Bidding activity in the LNG and petrochemical markets has been improving and the Company is starting to see capacity tighten. While the Company intends to remain disciplined when bidding on large fabrication projects, management is becoming more optimistic that there will be large project opportunities that are more aligned with its risk/return expectations. In the interim, Gulf Island will continue to focus on its small-scale fabrication business, which is enhanced by pull-through work from the growing Services business.
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. The Company believes expanding and diversifying its Services business will deliver a more stable revenue stream while providing underpinning work to recruit, develop and retain craft professionals. Based on strategic internal initiatives and the successful integration of the DSS Acquisition, Gulf Island has quickly built a strong services platform that is positioned for profitable growth.
Further strengthen project execution and maintain bidding discipline – The Company continues to focus on 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. Additionally, the Company continues to take a disciplined approach to pursuing and bidding project opportunities to ensure awarded projects meet required risk/return expectations. By remaining disciplined in the bidding process and demonstrating strong execution, Gulf Island will be well positioned for profitable growth as end markets continue to strengthen.
Expand skilled 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 project awards, particularly as industry capacity continues to tighten. The Company was able to make significant progress on this initiative through the DSS Acquisition, which nearly doubled its skilled craft workforce and expanded its geographic footprint for skilled labor.
SEGMENT RESULTS
New Segment Reporting – During the first quarter 2022, the Company realigned its operating divisions to reflect the growth in its services platform, due in part to the acquisition of the services and industrial staffing businesses (“DSS Acquisition”) of Dynamic Industries, Inc. in December 2021. Accordingly, the Company’s current reportable segments 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 Division and Corporate Division are unchanged from prior reporting.
Services Segment – Revenue for the first quarter 2022 was
New project awards were
Operating income was
Fabrication Segment – Revenue for the first quarter 2022 was
New project awards were
Operating loss was
Shipyard Segment – Revenue for the first quarter 2022 was
Operating loss was
Corporate Segment – Operating loss was
Discontinued Operations – In April 2021, the Company sold its Shipyard Division operating assets and long-term construction contracts (“Shipyard Transaction”). Discontinued operations include the results associated with the operations included in the Shipyard Transaction and associated with certain previously closed Shipyard Division facilities. Operating loss was
BALANCE SHEET AND LIQUIDITY
The Company’s cash balance at March 31, 2022 was
FIRST QUARTER 2022 CONFERENCE CALL
Gulf Island will hold a conference call on Tuesday, May 10, 2022 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 1.888.882.4478 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, 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 Houston, 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 EBITDA to the most comparable GAAP measure are presented under “Consolidated Results of Operations”, “Results of Operations by Segment” and “Recast of 2021 Results for Change in Reportable Segments” 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, 2022, 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 wind down of our Shipyard Division operations, 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, 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 final assessment of damage to its Houma facilities and the related recovery of any insurance proceeds; the duration and scope of, and uncertainties associated with, the ongoing global pandemic caused by COVID-19 (including new and emerging strains and variants) as well as the war in Ukraine, and the corresponding volatility in oil prices and the impact thereof on its business; 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 ability to successfully integrate the DSS Acquisition; 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 any other material legal proceedings; 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, including in response to Russia’s invasion of Ukraine; 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 2021 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, | ||||||||||
| 2022 | 2021 | 2021(2) | ||||||||||
| New project awards(3) | $ | 27,606 | $ | 21,549 | $ | 11,547 | ||||||
| Revenue | $ | 28,686 | $ | 25,812 | $ | 23,785 | ||||||
| Cost of revenue | 29,106 | 25,259 | 23,760 | |||||||||
| Gross profit (loss)(4) | (420 | ) | 553 | 25 | ||||||||
| General and administrative expense(5) | 4,110 | 2,762 | 2,787 | |||||||||
| Other (income) expense, net(6) | 452 | 3,949 | (529 | ) | ||||||||
| Operating loss | (4,982 | ) | (6,158 | ) | (2,233 | ) | ||||||
| Interest (expense) income, net | (40 | ) | (50 | ) | (194 | ) | ||||||
| Loss before income taxes | (5,022 | ) | (6,208 | ) | (2,427 | ) | ||||||
| Income tax (expense) benefit | (5 | ) | 18 | 11 | ||||||||
| Loss from continuing operations | (5,027 | ) | (6,190 | ) | (2,416 | ) | ||||||
| Loss from discontinued operations, net of taxes(7) | - | - | (16,121 | ) | ||||||||
| Net loss | $ | (5,027 | ) | $ | (6,190 | ) | $ | (18,537 | ) | |||
| Per share data: | ||||||||||||
| Basic and diluted loss from continuing operations | $ | (0.32 | ) | $ | (0.40 | ) | $ | (0.15 | ) | |||
| Basic and diluted loss from discontinued operations | - | - | (1.05 | ) | ||||||||
| Basic and diluted loss per common share | $ | (0.32 | ) | $ | (0.40 | ) | $ | (1.20 | ) | |||
Consolidated EBITDA(3) (in thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2022 | 2021 | 2021(2) | ||||||||||
| Net loss from continuing operations | $ | (5,027 | ) | $ | (6,190 | ) | $ | (2,416 | ) | |||
| Less: Income tax (expense) benefit | (5 | ) | 18 | 11 | ||||||||
| Less: Interest (expense) income, net | (40 | ) | (50 | ) | (194 | ) | ||||||
| Operating loss | (4,982 | ) | (6,158 | ) | (2,233 | ) | ||||||
| Add: Depreciation and amortization | 1,251 | 1,104 | 1,067 | |||||||||
| EBITDA | $ | (3,731 | ) | $ | (5,054 | ) | $ | (1,166 | ) | |||
_________________
(1) See “Results of Operations by Segment” below for results by segment.
(2) Results for the three months ended March 31, 2021 are different from previously reported amounts as they have been recast to reflect the classification of certain operations as discontinued operations as described in Note 7 below.
(3) 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.
(4) Gross profit (loss) for the Fabrication Division for the three months ended December 31, 2021 and March 31, 2021, includes project improvements of
(5) General and administrative expense for the Shipyard Division for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, includes legal fees of
(6) Other (income) expense for the Services Division for the three months ended December 31, 2021, includes charges of
(7) Discontinued operations include results associated with the operations included in the Shipyard Transaction and associated with certain previously closed Shipyard Division facilities, and includes project improvements of
Results of Operations by Segment (in thousands)
| Three Months Ended | ||||||||||||
| Services Division | March 31, | December 31, | March 31, | |||||||||
| 2022 | 2021 | 2021(1) | ||||||||||
| New project awards(2) | $ | 19,402 | $ | 14,060 | $ | 6,423 | ||||||
| Revenue | $ | 20,664 | $ | 13,469 | $ | 7,506 | ||||||
| Cost of revenue | 18,736 | 11,401 | 6,942 | |||||||||
| Gross profit | 1,928 | 2,068 | 564 | |||||||||
| General and administrative expense | 729 | 454 | 281 | |||||||||
| Other (income) expense, net(3) | 12 | 581 | 10 | |||||||||
| Operating income | $ | 1,187 | $ | 1,033 | $ | 273 | ||||||
| EBITDA(2) | ||||||||||||
| Operating income | $ | 1,187 | $ | 1,033 | $ | 273 | ||||||
| Add: Depreciation and amortization | 360 | 205 | 157 | |||||||||
| EBITDA | $ | 1,547 | $ | 1,238 | $ | 430 | ||||||
| Three Months Ended | ||||||||||||
| Fabrication Division | March 31, | December 31, | March 31, | |||||||||
| 2022 | 2021 | 2021(1) | ||||||||||
| New project awards(2) | $ | 8,296 | $ | 7,704 | $ | 5,711 | ||||||
| Revenue | $ | 5,617 | $ | 10,241 | $ | 11,736 | ||||||
| Cost of revenue | 7,638 | 10,629 | 11,255 | |||||||||
| Gross profit (loss)(4) | (2,021 | ) | (388 | ) | 481 | |||||||
| General and administrative expense | 625 | 390 | 451 | |||||||||
| Other (income) expense, net(5) | 287 | 3,059 | (616 | ) | ||||||||
| Operating income (loss) | $ | (2,933 | ) | $ | (3,837 | ) | $ | 646 | ||||
| EBITDA(2) | ||||||||||||
| Operating income (loss) | $ | (2,933 | ) | $ | (3,837 | ) | $ | 646 | ||||
| Add: Depreciation and amortization | 816 | 822 | 831 | |||||||||
| EBITDA | $ | (2,117 | ) | $ | (3,015 | ) | $ | 1,477 | ||||
| Three Months Ended | ||||||||||||
| Shipyard Division | March 31, | December 31, | March 31, | |||||||||
| 2022 | 2021 | 2021(1) | ||||||||||
| New project awards(2) | $ | - | $ | - | $ | - | ||||||
| Revenue | $ | 2,497 | $ | 2,317 | $ | 5,130 | ||||||
| Cost of revenue | 2,824 | 3,385 | 6,062 | |||||||||
| Gross loss(6) | (327 | ) | (1,068 | ) | (932 | ) | ||||||
| General and administrative expense(7) | 746 | 243 | 196 | |||||||||
| Other (income) expense, net(8) | 115 | 308 | 77 | |||||||||
| Operating loss | $ | (1,188 | ) | $ | (1,619 | ) | $ | (1,205 | ) | |||
| EBITDA(2) | ||||||||||||
| Operating loss | $ | (1,188 | ) | $ | (1,619 | ) | $ | (1,205 | ) | |||
| Add: Depreciation and amortization | - | - | - | |||||||||
| EBITDA | $ | (1,188 | ) | $ | (1,619 | ) | $ | (1,205 | ) | |||
| Three Months Ended | ||||||||||||
| Corporate Division | March 31, | December 31, | March 31, | |||||||||
| 2022 | 2021 | 2021(1) | ||||||||||
| New project awards (eliminations)(2) | $ | (92 | ) | $ | (215 | ) | $ | (587 | ) | |||
| Revenue (eliminations) | $ | (92 | ) | $ | (215 | ) | $ | (587 | ) | |||
| Cost of revenue | (92 | ) | (156 | ) | (499 | ) | ||||||
| Gross loss | - | (59 | ) | (88 | ) | |||||||
| General and administrative expense | 2,010 | 1,675 | 1,859 | |||||||||
| Other (income) expense, net | 38 | 1 | - | |||||||||
| Operating loss | $ | (2,048 | ) | $ | (1,735 | ) | $ | (1,947 | ) | |||
| EBITDA(2) | ||||||||||||
| Operating loss | $ | (2,048 | ) | $ | (1,735 | ) | $ | (1,947 | ) | |||
| Add: Depreciation and amortization | 75 | 77 | 79 | |||||||||
| EBITDA | $ | (1,973 | ) | $ | (1,658 | ) | $ | (1,868 | ) | |||
_________________
(1) Results for the three months ended March 31, 2021 are different from previously reported amounts as they have been recast to reflect (i) the realignment of our reportable segments as described above, and (ii) the classification of certain operations as discontinued operations as described in Note 7 above.
(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) Other (income) expense for the Services Division for the three months ended December 31, 2021, includes charges of
(4) Gross profit (loss) for the Fabrication Division for the three months ended December 31, 2021 and March 31, 2021, includes project improvements of
(5) Other (income) expense for the Fabrication Division for the three months ended March 31, 2022 and December 31, 2021, includes charges of
(6) Gross loss for the Shipyard Division for the three months ended December 31, 2021 and March 31, 2021, includes project charges
(7) General and administrative expense for the Shipyard Division for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, includes legal fees of
(8) Other (income) expense for the Shipyard Division for the three months ended December 31, 2021, includes charges of
Recast of 2021 Results for Change in Reportable Segments(1) (in thousands)
| Three Months Ended | Year Ended | |||||||||||
| Services Division | September 30, | June 30, | December 31, | |||||||||
| 2021 | 2021 | 2021 | ||||||||||
| New project awards(2) | $ | 8,943 | $ | 8,804 | $ | 38,230 | ||||||
| Revenue | $ | 9,305 | $ | 10,278 | $ | 40,558 | ||||||
| Cost of revenue | 7,843 | 8,680 | 34,866 | |||||||||
| Gross profit | 1,462 | 1,598 | 5,692 | |||||||||
| General and administrative expense | 338 | 306 | 1,379 | |||||||||
| Other (income) expense, net(4) | 224 | - | 815 | |||||||||
| Operating income | $ | 900 | $ | 1,292 | $ | 3,498 | ||||||
| EBITDA(2) | ||||||||||||
| Operating income | $ | 900 | $ | 1,292 | $ | 3,498 | ||||||
| Add: Depreciation and amortization | 138 | 141 | 641 | |||||||||
| EBITDA | $ | 1,038 | $ | 1,433 | $ | 4,139 | ||||||
| Three Months Ended | Year Ended | |||||||||||
| Fabrication Division | September 30, | June 30, | December 31, | |||||||||
| 2021 | 2021 | 2021 | ||||||||||
| New project awards(2) | $ | 6,397 | $ | 9,769 | $ | 29,581 | ||||||
| Revenue | $ | 8,120 | $ | 11,242 | $ | 41,339 | ||||||
| Cost of revenue | 8,422 | 10,536 | 40,842 | |||||||||
| Gross profit (loss)(3) | (302 | ) | 706 | 497 | ||||||||
| General and administrative expense | 547 | 455 | 1,843 | |||||||||
| Other (income) expense, net(5) | (376 | ) | (176 | ) | 1,891 | |||||||
| Operating income (loss) | $ | (473 | ) | $ | 427 | $ | (3,237 | ) | ||||
| EBITDA(2) | ||||||||||||
| Operating income (loss) | $ | (473 | ) | $ | 427 | $ | (3,237 | ) | ||||
| Add: Depreciation and amortization | 847 | 860 | 3,360 | |||||||||
| EBITDA | $ | 374 | $ | 1,287 | $ | 123 | ||||||
_________________
(1) See “Results of Operations by Segment” above for the recast of results for the three months ended December 31, 2021 and March 31, 2021.
(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 profit (loss) for the Fabrication Division for the three months ended September 30, 2021 and June 30, 2021, and year ended December 31, 2021, includes project improvements of
(4) Other (income) expense for the Services Division for the year ended December 31, 2021, includes charges of
(5) Other (income) expense for the Fabrication Division for the year ended December 31, 2021, includes charges of
Consolidated Balance Sheets (in thousands)
| March 31, 2022 | December 31, 2021 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 41,061 | $ | 52,886 | ||||
| Restricted cash, current | 1,703 | 1,297 | ||||||
| Contract receivables and retainage, net | 23,643 | 15,986 | ||||||
| Contract assets | 2,694 | 4,759 | ||||||
| Prepaid expenses and other assets | 9,120 | 6,971 | ||||||
| Inventory | 1,700 | 1,779 | ||||||
| Assets held for sale | 1,800 | 1,800 | ||||||
| Total current assets | 81,721 | 85,478 | ||||||
| Restricted cash, noncurrent | — | 406 | ||||||
| Property, plant and equipment, net | 32,057 | 32,866 | ||||||
| Goodwill | 2,217 | 2,217 | ||||||
| Other intangibles, net | 949 | 984 | ||||||
| Other noncurrent assets | 13,261 | 13,322 | ||||||
| Total assets | $ | 130,205 | $ | 135,273 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,531 | $ | 9,280 | ||||
| Contract liabilities | 4,198 | 6,648 | ||||||
| Accrued expenses and other liabilities | 15,831 | 14,026 | ||||||
| Total current liabilities | 29,560 | 29,954 | ||||||
| Other noncurrent liabilities | 1,252 | 1,411 | ||||||
| Total liabilities | 30,812 | 31,365 | ||||||
| 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, 15,775 shares issued and outstanding at March 31, 2022 and 15,622 at December 31, 2021 | 11,435 | 11,384 | ||||||
| Additional paid-in capital | 105,972 | 105,511 | ||||||
| Accumulated deficit | (18,014 | ) | (12,987 | ) | ||||
| Total shareholders’ equity | 99,393 | 103,908 | ||||||
| Total liabilities and shareholders’ equity | $ | 130,205 | $ | 135,273 | ||||
Consolidated Cash Flows(1) (in thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2022 | 2021 | 2021 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (5,027 | ) | $ | (6,190 | ) | $ | (18,537 | ) | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation and amortization | 1,251 | 1,104 | 1,940 | |||||||||
| Asset impairments | — | — | 22,750 | |||||||||
| (Gain) loss on sale of fixed assets, net | (25 | ) | (27 | ) | 9 | |||||||
| Stock-based compensation expense | 571 | 528 | 313 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Contract receivables and retainage, net | (7,657 | ) | (7,757 | ) | (2,779 | ) | ||||||
| Contract assets | 2,065 | (2,513 | ) | (3,851 | ) | |||||||
| Prepaid expenses, inventory and other current assets | (2,070 | ) | 2,366 | 228 | ||||||||
| Accounts payable | 346 | 1,770 | 1,756 | |||||||||
| Contract liabilities | (2,450 | ) | (540 | ) | (3,317 | ) | ||||||
| Accrued expenses and other current liabilities | 1,792 | (2,161 | ) | 2,199 | ||||||||
| Noncurrent assets and liabilities, net | (147 | ) | (166 | ) | (353 | ) | ||||||
| Net cash provided by (used in) operating activities | (11,351 | ) | (13,586 | ) | 358 | |||||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (440 | ) | (403 | ) | (460 | ) | ||||||
| Proceeds from Shipyard Transaction, net of transaction costs | — | 1,315 | — | |||||||||
| DSS Acquisition | — | (7,573 | ) | — | ||||||||
| Proceeds from sale of property and equipment | 25 | 27 | 39 | |||||||||
| Recoveries from insurance claims | — | 1,000 | — | |||||||||
| Net cash used in investing activities | (415 | ) | (5,634 | ) | (421 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Tax payments for vested stock withholdings | (59 | ) | — | (100 | ) | |||||||
| Net cash used in financing activities | (59 | ) | — | (100 | ) | |||||||
| Net decrease in cash, cash equivalents and restricted cash | (11,825 | ) | (19,220 | ) | (163 | ) | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 54,589 | 73,809 | 43,159 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 42,764 | $ | 54,589 | $ | 42,996 | ||||||
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(1) Cash flow activity for discontinued operations is not presented separately for any period in the Consolidated Statement of Cash Flows.
FAQ
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