Gulf Island Reports Second Quarter 2024 Results
Gulf Island Fabrication (NASDAQ: GIFI) reported its Q2 2024 results with consolidated revenue of $41.3 million, up 5% year-over-year, and net income of $1.9 million. The company's Services division saw operating income of $2.2 million, while the Fabrication division reported $1.1 million. However, customer-driven project delays in the Services division led to a revision in full-year 2024 guidance.
Key financial highlights include:
- EBITDA of $2.5 million
- Cash and short-term investments of $63.1 million
- Services division EBITDA of $2.7 million
- Fabrication division EBITDA of $1.8 million
The company revised its full-year 2024 Services division EBITDA guidance to $11-13 million, down from the initial $14 million, due to project delays and investment in growth initiatives.
Gulf Island Fabrication (NASDAQ: GIFI) ha riportato i risultati del secondo trimestre del 2024 con un fatturato consolidato di 41,3 milioni di dollari, in aumento del 5% rispetto all'anno precedente, e un utile netto di 1,9 milioni di dollari. La divisione Servizi ha registrato un reddito operativo di 2,2 milioni di dollari, mentre la divisione Fabbricazione ha riportato 1,1 milioni di dollari. Tuttavia, i ritardi nei progetti guidati dai clienti nella divisione Servizi hanno portato a una revisione delle previsioni per l'intero anno 2024.
I principali dati finanziari includono:
- EBITDA di 2,5 milioni di dollari
- Liquidità e investimenti a breve termine di 63,1 milioni di dollari
- EBITDA della divisione Servizi di 2,7 milioni di dollari
- EBITDA della divisione Fabbricazione di 1,8 milioni di dollari
L'azienda ha rivisto le previsioni per l'EBITDA della divisione Servizi per l'intero anno 2024 a 11-13 milioni di dollari, rispetto ai 14 milioni iniziali, a causa dei ritardi nei progetti e degli investimenti nelle iniziative di crescita.
Gulf Island Fabrication (NASDAQ: GIFI) reportó sus resultados del segundo trimestre de 2024 con ingresos consolidados de 41,3 millones de dólares, un aumento del 5% interanual, y ingresos netos de 1,9 millones de dólares. La división de Servicios vio un ingreso operativo de 2,2 millones de dólares, mientras que la división de Fabricación reportó 1,1 millones de dólares. Sin embargo, los retrasos en proyectos impulsados por los clientes en la división de Servicios llevaron a una revisión de las previsiones para todo el año 2024.
Los aspectos financieros clave incluyen:
- EBITDA de 2,5 millones de dólares
- Efectivo e inversiones a corto plazo de 63,1 millones de dólares
- EBITDA de la división de Servicios de 2,7 millones de dólares
- EBITDA de la división de Fabricación de 1,8 millones de dólares
La empresa revisó sus previsiones de EBITDA para la división de Servicios para todo el año 2024 a 11-13 millones de dólares, por debajo de los 14 millones iniciales, debido a los retrasos en los proyectos y a la inversión en iniciativas de crecimiento.
걸프 아일랜드 패브리케이션(Gulf Island Fabrication)(NASDAQ: GIFI)은 2024년 2분기 결과를 발표했으며, 통합 수익 4,130만 달러로 작년 대비 5% 증가했으며, 순이익 190만 달러를 기록했습니다. 서비스 부문은 운영 수익 220만 달러를 보였고, 제조 부문은 110만 달러를 보고했습니다. 그러나 고객 주도의 프로젝트 지연으로 인해 서비스 부문의 2024년 전체 연도 가이던스가 수정되었습니다.
주요 재무 하이라이트는 다음과 같습니다:
- EBITDA 250만 달러
- 현금 및 단기 투자 6310만 달러
- 서비스 부문 EBITDA 270만 달러
- 제조 부문 EBITDA 180만 달러
회사는 2024년 전체 연도 서비스 부문의 EBITDA 가이던스를 초기 1,400만 달러에서 1,100만~1,300만 달러로 하향 조정했습니다. 이는 프로젝트 지연 및 성장 이니셔티브 투자 때문입니다.
Gulf Island Fabrication (NASDAQ: GIFI) a annoncé ses résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires consolidé de 41,3 millions de dollars, en hausse de 5 % par rapport à l'année précédente, et un bénéfice net de 1,9 million de dollars. La division Services a enregistré un résultat opérationnel de 2,2 millions de dollars, tandis que la division Fabrication a rapporté 1,1 million de dollars. Cependant, des retards de projets liés aux clients dans la division Services ont conduit à une révision des prévisions pour l'année 2024.
Les points financiers clés comprennent :
- EBITDA de 2,5 millions de dollars
- Trésorerie et investissements à court terme de 63,1 millions de dollars
- EBITDA de la division Services de 2,7 millions de dollars
- EBITDA de la division Fabrication de 1,8 million de dollars
L'entreprise a révisé ses prévisions d'EBITDA pour la division Services pour l'année 2024 à 11-13 millions de dollars, contre 14 millions de dollars initialement prévus, en raison des retards de projets et des investissements dans les initiatives de croissance.
Gulf Island Fabrication (NASDAQ: GIFI) berichtete über die Ergebnisse des 2. Quartals 2024 mit einem konsolidierten Umsatz von 41,3 Millionen US-Dollar, was einem Anstieg von 5% im Vergleich zum Vorjahr entspricht, sowie einem Nettoeinkommen von 1,9 Millionen US-Dollar. Die Dienstleistungsabteilung verzeichnete ein Betriebsergebnis von 2,2 Millionen US-Dollar, während die Fertigungsabteilung 1,1 Millionen US-Dollar berichtete. Allerdings führten projektbezogene Verzögerungen bei Kunden in der Dienstleistungsabteilung zu einer Überarbeitung der Prognosen für das gesamte Jahr 2024.
Wichtige finanzielle Höhepunkte sind:
- EBITDA von 2,5 Millionen US-Dollar
- Bargeld und kurzfristige Investitionen von 63,1 Millionen US-Dollar
- EBITDA der Dienstleistungsabteilung von 2,7 Millionen US-Dollar
- EBITDA der Fertigungsabteilung von 1,8 Millionen US-Dollar
Das Unternehmen hat seine EBITDA-Prognose für die Dienstleistungsabteilung für das gesamte Jahr 2024 auf 11-13 Millionen US-Dollar überarbeitet, nachdem die ursprüngliche Schätzung von 14 Millionen US-Dollar aufgrund von Projektverzögerungen und Investitionen in Wachstumsinitiativen nach unten korrigiert wurde.
- Consolidated revenue increased by 5% year-over-year to $41.3 million
- Net income improved to $1.9 million from $1.1 million in the prior year period
- Fabrication division revenue increased by 27% year-over-year
- Strong cash position with $63.1 million in cash and short-term investments
- Launched new cleaning and environmental services (CES) business line
- Services division revenue decreased by 7% year-over-year due to project delays
- Services division EBITDA margin declined to 11.7% from 15.4% in the prior year period
- Revised full-year 2024 Services division EBITDA guidance downward to $11-13 million from $14 million
- Less favorable project mix in Fabrication division impacted margins
Insights
Gulf Island's Q2 2024 results show modest improvement but reveal some challenges. Revenue increased by
- Services division impacted by project delays, leading to revised EBITDA guidance of
$11-13 million , down from$14 million - Fabrication division saw revenue growth but margin pressure due to less favorable project mix
- New initiatives like CES may not contribute significantly until 2025
The strong balance sheet with
Gulf Island's results reflect broader trends in the industrial and energy sectors. The 27% growth in Fabrication division revenue indicates strong demand for small-scale fabrication services. However, the Services division's challenges highlight the volatility in project timing typical in this industry.
The launch of the cleaning and environmental services (CES) business is a strategic move to capitalize on decommissioning activities in the Gulf of Mexico. This diversification could provide a new growth avenue, but its success will depend on market demand and execution.
The company's mention of an active bidding environment for large fabrication projects and projected increased capital spending by services customers in 2025 suggests potential industry-wide growth on the horizon.
For investors, Gulf Island presents a mixed picture. Positives include:
- Consistent profitability and positive free cash flow
- Strong balance sheet providing flexibility for growth initiatives
- Potential for large project awards and increased customer spending in 2025
However, risks to consider are:
- Revised downward guidance for Services division
- Execution risks in new business lines like CES
- Quarterly performance volatility due to project timing and mix
The stock may be suitable for investors seeking exposure to the industrial and energy sectors with a long-term view, given the company's stability and growth potential. However, near-term performance may remain choppy as new initiatives ramp up.
THE WOODLANDS, Texas, Aug. 06, 2024 (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 second quarter 2024.
SECOND QUARTER 2024 SUMMARY
- Consolidated revenue of
$41.3 million - Consolidated net income of
$1.9 million ; EBITDA of$2.5 million - Services division operating income of
$2.2 million ; EBITDA of$2.7 million - Fabrication division operating income of
$1.1 million ; EBITDA of$1.8 million - Cash and short-term investments balance of
$63.1 million at June 30, 2024 - Revising full-year 2024 financial guidance
Consolidated revenue for the second quarter 2024 was
MANAGEMENT COMMENTARY
“We delivered another period of stable, profitable operating results and made continued progress on our strategic objectives during the second quarter,” said Richard Heo, Gulf Island’s President and Chief Executive Officer. “While our second quarter results were negatively impacted by customer driven project delays in our Services division, consolidated revenue still increased nearly
“We continue to benefit from strength in the offshore services market; however, our second quarter Services results were impacted by customer driven project delays and our incremental investment spending in certain growth initiatives,” continued Heo. “The delays were primarily related to project opportunities for Spark Safety, and while we are working hard to make up for the impact of these delays, it is difficult to quickly recover from project slippage given the nature of our Services business. These delays, combined with our incremental investment spending, both of which will continue into the second half of the year, are expected to cause us to fall short of our prior full-year Services division EBITDA guidance. As a result, we are revising our initial
“We generated another quarter of positive free cash flow, and as a result, our cash and short-term investments balance totaled approximately
“We have significantly improved the predictability and stability of our financial results in recent years, but in our business, project timing and mix will always be a factor in our quarterly operating performance. So, while short-term factors negatively impacted our second quarter results and full-year outlook, we remain confident in the long-term opportunities for Gulf Island. We have established a stable, cash generative base business that is well positioned for profitable growth and provides us with the ability to invest in new growth opportunities and other complementary businesses. We continue to see an active bidding environment for large fabrication projects, and our base of services customers are projecting increased capital spending in 2025. These factors, combined with our strong financial position, provide us with several avenues for potential value creation, and as we continue to execute on our strategic plan, we are confident in our ability to deliver shareholder value in the coming years,” concluded Heo.
DIVISION RESULTS FOR SECOND QUARTER 2024
Services Division – Revenue for the second quarter 2024 was
New project awards were
Operating income was
Fabrication Division – Revenue for the second quarter 2024 was
New project awards were
Operating income was
Shipyard Division – Revenue for the second quarter 2024 was not significant, compared to
Corporate Division – Operating loss was
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments balance at June 30, 2024 was
2024 FINANCIAL OUTLOOK
Gulf Island is revising its full-year 2024 Services division EBITDA guidance, which is expected to be approximately
Full-year 2024 EBITDA guidance for the Fabrication division and Corporate division are unchanged from prior guidance:
- Fabrication division adjusted EBITDA is expected to be approximately
$8.0 million , and assumes year-over-year growth in the small-scale fabrication business. The adjusted EBITDA forecast continues to exclude the potential benefit of any large project award and excludes a gain of$2.9 million in the first quarter 2024 from the sale of property that was held for sale at December 31, 2023. - Corporate division EBITDA is expected to be a loss of approximately
$8.0 million , which is consistent with recent historical experience.
This forward-looking guidance reflects management’s current expectations and beliefs as of August 6, 2024, and is subject to change. See “Cautionary Statement” below for further discussion of the factors that may affect the Company’s future performance, “Non-GAAP Measures” below for the Company’s definition of EBITDA and adjusted EBITDA, and “2024 Financial Outlook - Division and Consolidated EBITDA and Adjusted EBITDA Reconciliations” below for reconciliations of division and consolidated EBITDA and adjusted EBITDA to the most comparable GAAP measures.
SECOND QUARTER 2024 CONFERENCE CALL
Gulf Island will hold a conference call on Tuesday, August 6, 2024 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 1.877.704.4453 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 cleaning and environmental 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”), 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 a gain from the sale of assets held for sale and gains from the impact of insurance recoveries and costs associated with damage previously caused by Hurricane Ida) and the operating results for the Company’s Shipyard division (the wind down of which was substantially complete 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 (the wind down of which was substantially complete 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 Division” and “2024 Financial Outlook – Division and Consolidated EBITDA and Adjusted 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 new 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 June 30, 2024, 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 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 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 operating results, including 2024 full-year guidance; diversification and entry into new end markets; industry outlook; timing of investment decisions and new project awards; cash flows and cash balance; capital expenditures; liquidity; and execution of strategic initiatives. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements. The timing and amount of any share repurchases will be at the discretion of management and will depend on a variety of factors including, but not limited to, the Company’s operating performance, cash flow and financial position, the market price of its common stock and general economic and market conditions. The share repurchase program may be modified, increased, suspended or terminated at any time at the Board’s discretion.
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 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; and other factors described under “Risk Factors” in Part I, Item 1A of the Company’s annual report on Form 10-K for the year ended December 31, 2023, as 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 | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(2) | $ | 39,810 | $ | 43,818 | $ | 37,274 | $ | 83,628 | $ | 74,902 | ||||||||||
| Revenue | $ | 41,262 | $ | 42,881 | $ | 39,326 | $ | 84,143 | $ | 101,494 | ||||||||||
| Cost of revenue | 37,104 | 36,757 | 34,845 | 73,861 | 91,979 | |||||||||||||||
| Gross profit(3) | 4,158 | 6,124 | 4,481 | 10,282 | 9,515 | |||||||||||||||
| General and administrative expense(4) | 3,354 | 3,484 | 3,736 | 6,838 | 8,803 | |||||||||||||||
| Other (income) expense, net(5) | (479 | ) | (3,068 | ) | (4 | ) | (3,547 | ) | (365 | ) | ||||||||||
| Operating income | 1,283 | 5,708 | 749 | 6,991 | 1,077 | |||||||||||||||
| Interest (expense) income, net | 603 | 542 | 340 | 1,145 | 660 | |||||||||||||||
| Income before income taxes | 1,886 | 6,250 | 1,089 | 8,136 | 1,737 | |||||||||||||||
| Income tax (expense) benefit | 3 | (10 | ) | 13 | (7 | ) | 6 | |||||||||||||
| Net income | $ | 1,889 | $ | 6,240 | $ | 1,102 | $ | 8,129 | $ | 1,743 | ||||||||||
| Per share data: | ||||||||||||||||||||
| Basic income per share | $ | 0.12 | $ | 0.38 | $ | 0.07 | $ | 0.50 | $ | 0.11 | ||||||||||
| Diluted income per share | $ | 0.11 | $ | 0.37 | $ | 0.07 | $ | 0.48 | $ | 0.11 | ||||||||||
| Weighted average shares: | ||||||||||||||||||||
| Basic | 16,415 | 16,215 | 16,201 | 16,315 | 16,098 | |||||||||||||||
| Diluted | 16,864 | 16,755 | 16,349 | 16,810 | 16,354 | |||||||||||||||
Consolidated Adjusted Revenue(2) Reconciliation (in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Revenue | $ | 41,262 | $ | 42,881 | $ | 39,326 | $ | 84,143 | $ | 101,494 | ||||||||||
| Less: Shipyard revenue | (36 | ) | (409 | ) | (382 | ) | (445 | ) | (1,729 | ) | ||||||||||
| Adjusted revenue | $ | 41,226 | $ | 42,472 | $ | 38,944 | $ | 83,698 | $ | 99,765 | ||||||||||
Consolidated Adjusted Gross Profit(2) Reconciliation (in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Gross profit | $ | 4,158 | $ | 6,124 | $ | 4,481 | $ | 10,282 | $ | 9,515 | ||||||||||
| Add (less): Shipyard gross loss (profit) | (31 | ) | (319 | ) | 1,184 | (350 | ) | 1,599 | ||||||||||||
| Adjusted gross profit | $ | 4,127 | $ | 5,805 | $ | 5,665 | $ | 9,932 | $ | 11,114 | ||||||||||
Consolidated EBITDA and Adjusted EBITDA(2) Reconciliations (in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 1,889 | $ | 6,240 | $ | 1,102 | $ | 8,129 | $ | 1,743 | ||||||||||
| Less: Income tax (expense) benefit | 3 | (10 | ) | 13 | (7 | ) | 6 | |||||||||||||
| Less: Interest (expense) income, net | 603 | 542 | 340 | 1,145 | 660 | |||||||||||||||
| Operating income | 1,283 | 5,708 | 749 | 6,991 | 1,077 | |||||||||||||||
| Add: Depreciation and amortization | 1,240 | 1,193 | 1,392 | 2,433 | 2,725 | |||||||||||||||
| EBITDA | 2,523 | 6,901 | 2,141 | 9,424 | 3,802 | |||||||||||||||
| Less: Gain on property sale(5) | - | (2,880 | ) | - | (2,880 | ) | - | |||||||||||||
| Add (Less): Hurricane insurance charges (gains)(5) | - | - | 17 | - | (171 | ) | ||||||||||||||
| Add (less): Shipyard operating loss (income) | (9 | ) | (342 | ) | 1,948 | (351 | ) | 4,151 | ||||||||||||
| Adjusted EBITDA | $ | 2,514 | $ | 3,679 | $ | 4,106 | $ | 6,193 | $ | 7,782 | ||||||||||
_________________
| (1) | See “Results of Operations by Division” below for results by division. |
| (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 (loss) for the Shipyard division for each of the three and six months ended June 30, 2023, includes project charges of |
| (4) | General and administrative expense for the Shipyard division for the three and six months ended June 30, 2023, includes legal and advisory fees of |
| (5) | Other (income) expense for the Fabrication division for each of the three months ended March 31, 2024 and six months ended June 30, 2024, includes a gain of |
Results of Operations by Division (including Reconciliations of EBITDA and Adjusted EBITDA) (in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| Services Division | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | 22,392 | $ | 25,468 | $ | 24,330 | $ | 47,860 | $ | 45,802 | ||||||||||
| Revenue | $ | 22,767 | $ | 25,534 | $ | 24,470 | $ | 48,301 | $ | 46,057 | ||||||||||
| Cost of revenue | 19,879 | 21,921 | 20,369 | 41,800 | 38,969 | |||||||||||||||
| Gross profit | 2,888 | 3,613 | 4,101 | 6,501 | 7,088 | |||||||||||||||
| General and administrative expense | 687 | 743 | 792 | 1,430 | 1,502 | |||||||||||||||
| Other (income) expense, net | 12 | 3 | 40 | 15 | (24 | ) | ||||||||||||||
| Operating income | $ | 2,189 | $ | 2,867 | $ | 3,269 | $ | 5,056 | $ | 5,610 | ||||||||||
| EBITDA(1) | ||||||||||||||||||||
| Operating income | $ | 2,189 | $ | 2,867 | $ | 3,269 | $ | 5,056 | $ | 5,610 | ||||||||||
| Add: Depreciation and amortization | 486 | 480 | 496 | 966 | 938 | |||||||||||||||
| EBITDA | $ | 2,675 | $ | 3,347 | $ | 3,765 | $ | 6,022 | $ | 6,548 | ||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| Fabrication Division | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | 17,610 | $ | 18,272 | $ | 13,438 | $ | 35,882 | $ | 30,144 | ||||||||||
| Revenue | $ | 18,727 | $ | 17,138 | $ | 14,741 | $ | 35,865 | $ | 54,403 | ||||||||||
| Cost of revenue | 17,488 | 14,946 | 13,177 | 32,434 | 50,377 | |||||||||||||||
| Gross profit | 1,239 | 2,192 | 1,564 | 3,431 | 4,026 | |||||||||||||||
| General and administrative expense | 545 | 441 | 470 | 986 | 990 | |||||||||||||||
| Other (income) expense, net(2) | (435 | ) | (2,970 | ) | (201 | ) | (3,405 | ) | (503 | ) | ||||||||||
| Operating income | $ | 1,129 | $ | 4,721 | $ | 1,295 | $ | 5,850 | $ | 3,539 | ||||||||||
| EBITDA and Adjusted EBITDA(1) | ||||||||||||||||||||
| Operating income | $ | 1,129 | $ | 4,721 | $ | 1,295 | $ | 5,850 | $ | 3,539 | ||||||||||
| Add: Depreciation and amortization | 674 | 635 | 825 | 1,309 | 1,647 | |||||||||||||||
| EBITDA | 1,803 | 5,356 | 2,120 | 7,159 | 5,186 | |||||||||||||||
| Less: Gain on property sale(2) | - | (2,880 | ) | - | (2,880 | ) | - | |||||||||||||
| Add (Less): Hurricane insurance charges (gains)(2) | - | - | 17 | - | (171 | ) | ||||||||||||||
| Adjusted EBITDA | $ | 1,803 | $ | 2,476 | $ | 2,137 | $ | 4,279 | $ | 5,015 | ||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| Shipyard Division | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | 76 | $ | 278 | $ | (227 | ) | $ | 354 | $ | (349 | ) | ||||||||
| Revenue | $ | 36 | $ | 409 | $ | 382 | $ | 445 | $ | 1,729 | ||||||||||
| Cost of revenue | 5 | 90 | 1,566 | 95 | 3,328 | |||||||||||||||
| Gross profit (loss)(3) | 31 | 319 | (1,184 | ) | 350 | (1,599 | ) | |||||||||||||
| General and administrative expense(4) | - | - | 537 | - | 2,250 | |||||||||||||||
| Other (income) expense, net | 22 | (23 | ) | 227 | (1 | ) | 302 | |||||||||||||
| Operating income (loss) | $ | 9 | $ | 342 | $ | (1,948 | ) | $ | 351 | $ | (4,151 | ) | ||||||||
| EBITDA(1) | ||||||||||||||||||||
| Operating income (loss) | $ | 9 | $ | 342 | $ | (1,948 | ) | $ | 351 | $ | (4,151 | ) | ||||||||
| Add: Depreciation and amortization | - | - | - | - | - | |||||||||||||||
| EBITDA | $ | 9 | $ | 342 | $ | (1,948 | ) | $ | 351 | $ | (4,151 | ) | ||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| Corporate Division | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards (eliminations)(1) | $ | (268 | ) | $ | (200 | ) | $ | (267 | ) | $ | (468 | ) | $ | (695 | ) | |||||
| Revenue (eliminations) | $ | (268 | ) | $ | (200 | ) | $ | (267 | ) | $ | (468 | ) | $ | (695 | ) | |||||
| Cost of revenue | (268 | ) | (200 | ) | (267 | ) | (468 | ) | (695 | ) | ||||||||||
| Gross profit | - | - | - | - | - | |||||||||||||||
| General and administrative expense | 2,122 | 2,300 | 1,937 | 4,422 | 4,061 | |||||||||||||||
| Other (income) expense, net | (78 | ) | (78 | ) | (70 | ) | (156 | ) | (140 | ) | ||||||||||
| Operating loss | $ | (2,044 | ) | $ | (2,222 | ) | $ | (1,867 | ) | $ | (4,266 | ) | $ | (3,921 | ) | |||||
| EBITDA(1) | ||||||||||||||||||||
| Operating loss | $ | (2,044 | ) | $ | (2,222 | ) | $ | (1,867 | ) | $ | (4,266 | ) | $ | (3,921 | ) | |||||
| Add: Depreciation and amortization | 80 | 78 | 71 | 158 | 140 | |||||||||||||||
| EBITDA | $ | (1,964 | ) | $ | (2,144 | ) | $ | (1,796 | ) | $ | (4,108 | ) | $ | (3,781 | ) | |||||
_________________
| (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) | Other (income) expense for the Fabrication division for each of the three months ended March 31, 2024 and six months ended June 30, 2024, includes a gain of |
| (3) | Gross profit (loss) for the Shipyard division for each of the three and six months ended June 30, 2023, includes project charges of |
| (4) | General and administrative expense for the Shipyard division for the three and six months ended June 30, 2023, includes legal and advisory fees of |
Consolidated Balance Sheets (in thousands)
| June 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,509 | $ | 38,176 | ||||
| Restricted cash | 1,475 | 1,475 | ||||||
| Short-term investments | 52,115 | 8,233 | ||||||
| Contract receivables and retainage, net | 33,433 | 36,298 | ||||||
| Contract assets | 2,221 | 2,739 | ||||||
| Prepaid expenses and other assets | 4,257 | 6,994 | ||||||
| Inventory | 2,331 | 2,072 | ||||||
| Assets held for sale | — | 5,640 | ||||||
| Total current assets | 105,341 | 101,627 | ||||||
| Property, plant and equipment, net | 24,535 | 23,145 | ||||||
| Goodwill | 2,217 | 2,217 | ||||||
| Other intangibles, net | 628 | 700 | ||||||
| Other noncurrent assets | 542 | 739 | ||||||
| Total assets | $ | 133,263 | $ | 128,428 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,017 | $ | 8,466 | ||||
| Contract liabilities | 4,129 | 5,470 | ||||||
| Accrued expenses and other liabilities | 12,884 | 14,836 | ||||||
| Long-term debt, current | 1,075 | 1,075 | ||||||
| Total current liabilities | 27,105 | 29,847 | ||||||
| Long-term debt, noncurrent | 18,925 | 18,925 | ||||||
| Other noncurrent liabilities | 551 | 685 | ||||||
| Total liabilities | 46,581 | 49,457 | ||||||
| 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, 16,516 shares issued and outstanding at June 30, 2024 and 16,258 at December 31, 2023 | 11,688 | 11,729 | ||||||
| Additional paid-in capital | 108,238 | 108,615 | ||||||
| Accumulated deficit | (33,244 | ) | (41,373 | ) | ||||
| Total shareholders’ equity | 86,682 | 78,971 | ||||||
| Total liabilities and shareholders’ equity | $ | 133,263 | $ | 128,428 | ||||
Consolidated Cash Flows (in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net income | $ | 1,889 | $ | 6,240 | $ | 1,102 | $ | 8,129 | $ | 1,743 | ||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
| Depreciation and amortization | 1,240 | 1,193 | 1,392 | 2,433 | 2,725 | |||||||||||||||
| Change in allowance for doubtful accounts and credit losses | — | (28 | ) | (200 | ) | (28 | ) | (200 | ) | |||||||||||
| (Gain) loss on sale or disposal of assets held for sale and fixed assets, net | (701 | ) | (3,241 | ) | 31 | (3,942 | ) | (33 | ) | |||||||||||
| Gain on insurance recoveries | — | — | — | — | (245 | ) | ||||||||||||||
| Stock-based compensation expense | 532 | 506 | 444 | 1,038 | 953 | |||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Contract receivables and retainage, net | (6,541 | ) | 9,434 | 7,430 | 2,893 | (7,110 | ) | |||||||||||||
| Contract assets | 2,684 | (2,166 | ) | (1,124 | ) | 518 | (1,823 | ) | ||||||||||||
| Prepaid expenses, inventory and other current assets | 50 | 2,102 | 808 | 2,152 | 955 | |||||||||||||||
| Accounts payable | 2,251 | (1,712 | ) | (9,393 | ) | 539 | 8,742 | |||||||||||||
| Contract liabilities | 2,389 | (3,730 | ) | (1,323 | ) | (1,341 | ) | (5,131 | ) | |||||||||||
| Accrued expenses and other current liabilities | (419 | ) | (1,422 | ) | (2,455 | ) | (1,841 | ) | (2,393 | ) | ||||||||||
| Noncurrent assets and liabilities, net | (96 | ) | (157 | ) | (201 | ) | (253 | ) | (376 | ) | ||||||||||
| Net cash provided by (used in) operating activities | 3,278 | 7,019 | (3,489 | ) | 10,297 | (2,193 | ) | |||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Capital expenditures | (1,013 | ) | (2,553 | ) | (569 | ) | (3,566 | ) | (1,056 | ) | ||||||||||
| Proceeds from sale of property and equipment | 720 | 8,894 | — | 9,614 | 106 | |||||||||||||||
| Recoveries from insurance claims | — | 326 | — | 326 | 245 | |||||||||||||||
| Purchases of short-term investments | (35,167 | ) | (22,170 | ) | (177 | ) | (57,337 | ) | (15,260 | ) | ||||||||||
| Maturities of short-term investments | 10,405 | 3,050 | — | 13,455 | 10,000 | |||||||||||||||
| Net cash used in investing activities | (25,055 | ) | (12,453 | ) | (746 | ) | (37,508 | ) | (5,965 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Payments on Insurance Finance Arrangements | — | — | (126 | ) | — | (1,129 | ) | |||||||||||||
| Tax payments for vested stock withholdings | (1,183 | ) | — | (301 | ) | (1,183 | ) | (482 | ) | |||||||||||
| Repurchases of common stock | — | (273 | ) | — | (273 | ) | — | |||||||||||||
| Net cash used in financing activities | (1,183 | ) | (273 | ) | (427 | ) | (1,456 | ) | (1,611 | ) | ||||||||||
| Net decrease in cash, cash equivalents and restricted cash | (22,960 | ) | (5,707 | ) | (4,662 | ) | (28,667 | ) | (9,769 | ) | ||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 33,944 | 39,651 | 29,717 | 39,651 | 34,824 | |||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 10,984 | $ | 33,944 | $ | 25,055 | $ | 10,984 | $ | 25,055 | ||||||||||
2024 Financial Outlook - Division and Consolidated EBITDA and Adjusted EBITDA(1) Reconciliations (in thousands)
| Twelve Months Ending December 31, 2024 | ||||||||||||||||||||||||||||
| Services | Consolidated | |||||||||||||||||||||||||||
| Low | High | Fabrication | Shipyard | Corporate | Low | High | ||||||||||||||||||||||
| Net income (loss) | $ | 9,000 | $ | 11,000 | $ | 8,080 | $ | 351 | $ | (6,200 | ) | $ | 11,231 | $ | 13,231 | |||||||||||||
| Less: Income tax (expense) benefit | - | - | - | - | - | - | - | |||||||||||||||||||||
| Less: Interest (expense) income, net | - | - | - | - | 2,100 | 2,100 | 2,100 | |||||||||||||||||||||
| Operating income (loss) | 9,000 | 11,000 | 8,080 | 351 | (8,300 | ) | 9,131 | 11,131 | ||||||||||||||||||||
| Add: Depreciation and amortization | 2,000 | 2,000 | 2,800 | - | 300 | 5,100 | 5,100 | |||||||||||||||||||||
| EBITDA | 11,000 | 13,000 | 10,880 | 351 | (8,000 | ) | 14,231 | 16,231 | ||||||||||||||||||||
| Less: Gain on property sale(2) | - | - | (2,880 | ) | - | - | (2,880 | ) | (2,880 | ) | ||||||||||||||||||
| Less: Shipyard operating income | - | - | - | (351 | ) | - | (351 | ) | (351 | ) | ||||||||||||||||||
| Adjusted EBITDA | $ | 11,000 | $ | 13,000 | $ | 8,000 | $ | - | $ | (8,000 | ) | $ | 11,000 | $ | 13,000 | |||||||||||||
_________________
| (1) | EBITDA and adjusted EBITDA are non-GAAP measures. See “Non-GAAP Measures” above for the Company’s definition of EBITDA and adjusted EBITDA. |
| (2) | Reflects a gain on the sale of property that was held for sale at December 31, 2023. |
FAQ
What was Gulf Island Fabrication's (GIFI) revenue for Q2 2024?
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Has Gulf Island Fabrication (GIFI) revised its 2024 financial guidance?
