Gulf Island Reports Third Quarter 2024 Results and Board Chair Transition
Gulf Island Fabrication (NASDAQ: GIFI) reported Q3 2024 results with consolidated revenue of $37.6 million and net income of $2.3 million. The company's Adjusted EBITDA was $2.9 million. The Services division generated operating income of $1.4 million, while the Fabrication division achieved operating income of $2.0 million. The company maintained a strong financial position with $66.8 million in cash and short-term investments. Board Chair William E. Chiles announced retirement, with CEO Richard W. Heo appointed as new board chair effective November 30, 2024. The company expects full-year 2024 adjusted consolidated EBITDA to be at the lower end of the $11-13 million guidance range.
Gulf Island Fabrication (NASDAQ: GIFI) ha riportato i risultati del terzo trimestre 2024 con ricavi consolidati di 37,6 milioni di dollari e un utile netto di 2,3 milioni di dollari. L'EBITDA rettificato dell'azienda è stato di 2,9 milioni di dollari. La divisione Servizi ha generato un reddito operativo di 1,4 milioni di dollari, mentre la divisione Fabbricazione ha conseguito un reddito operativo di 2,0 milioni di dollari. L'azienda ha mantenuto una solida posizione finanziaria con 66,8 milioni di dollari in contante e investimenti a breve termine. Il presidente del consiglio William E. Chiles ha annunciato il suo ritiro, con l'amministratore delegato Richard W. Heo nominato nuovo presidente del consiglio a partire dal 30 novembre 2024. L'azienda prevede che l'EBITDA consolidato rettificato per l'intero anno 2024 si colloca nella parte bassa della fascia di indicazione di 11-13 milioni di dollari.
Gulf Island Fabrication (NASDAQ: GIFI) reportó resultados del tercer trimestre de 2024 con ingresos consolidados de 37.6 millones de dólares y un ingreso neto de 2.3 millones de dólares. El EBITDA ajustado de la compañía fue de 2.9 millones de dólares. La división de Servicios generó un ingreso operativo de 1.4 millones de dólares, mientras que la división de Fabricación alcanzó un ingreso operativo de 2.0 millones de dólares. La empresa mantuvo una sólida posición financiera con 66.8 millones de dólares en efectivo e inversiones a corto plazo. El presidente de la junta, William E. Chiles, anunció su jubilación, y el CEO Richard W. Heo fue nombrado nuevo presidente de la junta, con efecto a partir del 30 de noviembre de 2024. La empresa espera que el EBITDA consolidado ajustado para todo el año 2024 se sitúe en el extremo inferior del rango de orientación de 11-13 millones de dólares.
걸프 아일랜드 패브리케이션 (NASDAQ: GIFI)는 2024년 3분기 실적을 발표하며 통합 수익이 3760만 달러, 순이익이 230만 달러라고 보고했습니다. 회사의 조정 EBITDA는 290만 달러였습니다. 서비스 부문은 140만 달러의 운영 수익을 창출했으며, 제조 부문은 200만 달러의 운영 수익을 달성했습니다. 회사는 단기 투자와 현금으로 6680만 달러를 보유하며 강력한 재무 위치를 유지하고 있습니다. 이사회 의장인 윌리엄 E. 차일스가 은퇴를 발표했고, CEO 리차드 W. 헤오가 2024년 11월 30일부터 새로운 이사회 의장으로 임명되었습니다. 회사는 2024년 전체 연도 조정 통합 EBITDA가 1100만에서 1300만 달러의 가이드 범위 하단에 있을 것으로 전망하고 있습니다.
Gulf Island Fabrication (NASDAQ: GIFI) a annoncé les résultats du troisième trimestre de 2024 avec un chiffre d'affaires consolidé de 37,6 millions de dollars et un résultat net de 2,3 millions de dollars. L'EBITDA ajusté de l'entreprise s'élevait à 2,9 millions de dollars. La division Services a généré un revenu opérationnel de 1,4 million de dollars, tandis que la division Fabrication a atteint un revenu opérationnel de 2,0 millions de dollars. L'entreprise a maintenu une solide position financière avec 66,8 millions de dollars en liquidités et investissements à court terme. Le président du conseil d'administration, William E. Chiles, a annoncé sa retraite, et le PDG Richard W. Heo a été nommé nouveau président du conseil, avec effet à partir du 30 novembre 2024. L'entreprise s'attend à ce que l'EBITDA consolidé ajusté pour l'année 2024 soit à la limite inférieure de l'indication de 11-13 millions de dollars.
Gulf Island Fabrication (NASDAQ: GIFI) berichtete über die Ergebnisse des 3. Quartals 2024 mit konsolidierten Einnahmen von 37,6 Millionen Dollar und einem Nettoergebnis von 2,3 Millionen Dollar. Das bereinigte EBITDA des Unternehmens betrug 2,9 Millionen Dollar. Die Dienstleistungsdivision erzielte einen operativen Gewinn von 1,4 Millionen Dollar, während die Fertigungsdivision einen operativen Gewinn von 2,0 Millionen Dollar erreichte. Das Unternehmen wies eine starke Finanzlage mit 66,8 Millionen Dollar in Bargeld und kurzfristigen Anlagen auf. Der Vorsitzende des Vorstands, William E. Chiles, kündigte seinen Rücktritt an, und der CEO Richard W. Heo wurde zum neuen Vorstandsvorsitzenden ernannt, wirksam ab dem 30. November 2024. Das Unternehmen erwartet, dass das bereinigte konsolidierte EBITDA für das Gesamtjahr 2024 am unteren Ende der Leitlinie von 11-13 Millionen Dollar liegen wird.
- Net income of $2.3 million in Q3 2024, compared to net loss of $33.2 million in prior year
- Strong cash position with $66.8 million in cash and short-term investments
- Fabrication division revenue increased 14.2% year-over-year
- Fabrication division EBITDA nearly doubled from prior year
- Services division revenue decreased 11.9% year-over-year
- Services division operating income declined to $1.4 million from $2.6 million in prior year
- Hurricane activity in Gulf of Mexico caused operational disruptions and revenue loss
- Company expects results at lower end of full-year guidance range
Insights
The Q3 2024 results show mixed performance with some notable highlights.
The company's strong balance sheet position stands out with
Management's maintained guidance of
The operational metrics reveal a business in transition with improving fundamentals. The Fabrication division's success in small-scale projects demonstrates effective capacity utilization and market adaptation. The
The Services division faces near-term challenges from project timing and weather disruptions, but strategic initiatives like the new cleaning and environmental services (CES) business line position it well for future growth, particularly in Gulf of Mexico decommissioning activities. The substantially completed wind-down of the Shipyard division removes a historical source of volatility.
THE WOODLANDS, Texas, Nov. 05, 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 third quarter 2024.
THIRD QUARTER 2024 SUMMARY
- Consolidated revenue of
$37.6 million ; Adjusted consolidated revenue of$37.2 million - Consolidated net income of
$2.3 million ; Adjusted EBITDA of$2.9 million - Services division operating income of
$1.4 million ; EBITDA of$1.9 million - Fabrication division operating income of
$2.0 million ; EBITDA of$2.7 million - Cash and short-term investments balance of
$66.8 million at September 30, 2024
Consolidated revenue for the third quarter 2024 was
Consolidated net income for the third quarter 2024 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.
BOARD CHAIR TRANSITION
William E. Chiles, Gulf Island’s current board chair, has notified the Company that he will retire at the end of his current term at the 2025 annual meeting of shareholders and the board expects to reduce its size to five directors at that time. In connection with Mr. Chiles’s expected retirement, effective November 30, 2024, the board approved the appointment of Richard W. Heo, President and Chief Executive Officer, to serve as chair of the board and Robert M. Averick, a current director, to serve as lead independent director.
MANAGEMENT COMMENTARY
“On behalf of the board, I would like to thank Bill for his tireless commitment to the Company for over a decade. Bill’s outstanding leadership, business acumen and guidance have been invaluable to the Company and have benefited our stakeholders. I am honored to succeed Bill as board chair and look forward to working with the board to continue to advance the Company’s strategic initiatives,” said Richard Heo, Gulf Island’s President and Chief Executive Officer.
“Our third quarter results demonstrate the durability of our operating model, as we generated year-over-year growth in adjusted EBITDA and strong free cash flow despite ongoing delays for certain projects for our Services division, lost revenue due to hurricane activity in the Gulf of Mexico during the quarter and incurred costs as we continued to make investments in our growth initiatives,” said Heo. “Our solid results were supported by growth in small-scale fabrication for our Fabrication division, where revenue for the quarter increased
“Within our Services division, results were again impacted by customer driven project delays and incremental investment spending in growth initiatives, in addition to lost revenue due to hurricane activity in the Gulf of Mexico during the quarter,” continued Heo. “While we did not experience any significant damage to our Houma facility from the recent hurricanes, our Services operations were impacted due to the temporary removal of our personnel from customer offshore platforms as the storms approached and passed through the Gulf. Despite these recent headwinds, we remain encouraged by the strategic positioning of our Services business and continue to invest in key growth initiatives. Importantly, bidding activity for our recently launched cleaning and environmental services (“CES”) business line is beginning to increase, and we are poised to benefit as the de-commissioning activity in the Gulf of Mexico gains momentum.”
“Our solid operating results, combined with working capital improvements, resulted in another quarter of strong free cash flow generation, with our cash and short-term investments balance increasing to nearly
“Our strong execution and more stable small-scale fabrication and services businesses enabled us to generate solid third quarter results, despite several headwinds impacting our business. Based on our performance through the first three quarters of the year and our outlook for the fourth quarter, we continue to expect full-year 2024 adjusted consolidated EBITDA of
DIVISION RESULTS FOR THIRD QUARTER 2024
Services Division – Revenue for the third quarter 2024 was
New project awards were
Operating income was
Fabrication Division – Revenue for the third quarter 2024 was
New project awards were
Operating income was
Shipyard Division – Revenue for the third quarter 2024 was
Corporate Division – Operating loss was
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments balance at September 30, 2024 was
During the third quarter 2024, the Company repurchased 110,908 shares of its common stock for
2024 FINANCIAL OUTLOOK
Gulf Island’s prior full-year 2024 indicative guidance was adjusted consolidated EBITDA of
This forward-looking guidance reflects management’s current expectations and beliefs as of November 5, 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 - Consolidated EBITDA and Adjusted EBITDA Reconciliations” below for reconciliations of consolidated EBITDA and adjusted EBITDA to the most comparable GAAP measures.
THIRD QUARTER 2024 CONFERENCE CALL
Gulf Island will hold a conference call on Tuesday, November 5, 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 net 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 completed 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 completed 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 – 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 September 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 | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(2) | $ | 36,902 | $ | 39,810 | $ | 38,417 | $ | 120,530 | $ | 113,319 | ||||||||||
| Revenue | $ | 37,640 | $ | 41,262 | $ | 5,023 | $ | 121,783 | $ | 106,517 | ||||||||||
| Cost of revenue | 32,984 | 37,104 | 34,902 | 106,845 | 126,881 | |||||||||||||||
| Gross profit (loss)(3) | 4,656 | 4,158 | (29,879 | ) | 14,938 | (20,364 | ) | |||||||||||||
| General and administrative expense(4) | 2,985 | 3,354 | 4,080 | 9,823 | 12,883 | |||||||||||||||
| Other (income) expense, net(5) | (1 | ) | (479 | ) | (324 | ) | (3,548 | ) | (689 | ) | ||||||||||
| Operating income (loss) | 1,672 | 1,283 | (33,635 | ) | 8,663 | (32,558 | ) | |||||||||||||
| Interest (expense) income, net | 647 | 603 | 397 | 1,792 | 1,057 | |||||||||||||||
| Income (loss) before income taxes | 2,319 | 1,886 | (33,238 | ) | 10,455 | (31,501 | ) | |||||||||||||
| Income tax (expense) benefit | (2 | ) | 3 | 3 | (9 | ) | 9 | |||||||||||||
| Net income (loss) | $ | 2,317 | $ | 1,889 | $ | (33,235 | ) | $ | 10,446 | $ | (31,492 | ) | ||||||||
| Per share data: | ||||||||||||||||||||
| Basic income (loss) per share | $ | 0.14 | $ | 0.12 | $ | (2.04 | ) | $ | 0.64 | $ | (1.95 | ) | ||||||||
| Diluted income (loss) per share | $ | 0.14 | $ | 0.11 | $ | (2.04 | ) | $ | 0.62 | $ | (1.95 | ) | ||||||||
| Weighted average shares: | ||||||||||||||||||||
| Basic | 16,489 | 16,415 | 16,287 | 16,373 | 16,162 | |||||||||||||||
| Diluted | 16,728 | 16,864 | 16,287 | 16,782 | 16,162 | |||||||||||||||
Consolidated Adjusted Revenue(2) Reconciliation (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Revenue | $ | 37,640 | $ | 41,262 | $ | 5,023 | $ | 121,783 | $ | 106,517 | ||||||||||
| Shipyard revenue | (490 | ) | (36 | ) | 32,702 | (935 | ) | 30,973 | ||||||||||||
| Adjusted revenue | $ | 37,150 | $ | 41,226 | $ | 37,725 | $ | 120,848 | $ | 137,490 | ||||||||||
Consolidated Adjusted Gross Profit(2) Reconciliation (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Gross profit (loss) | $ | 4,656 | $ | 4,158 | $ | (29,879 | ) | $ | 14,938 | $ | (20,364 | ) | ||||||||
| Shipyard gross loss (profit) | (75 | ) | (31 | ) | 34,356 | (425 | ) | 35,955 | ||||||||||||
| Adjusted gross profit | $ | 4,581 | $ | 4,127 | $ | 4,477 | $ | 14,513 | $ | 15,591 | ||||||||||
Consolidated EBITDA and Adjusted EBITDA(2) Reconciliations (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income (loss) | $ | 2,317 | $ | 1,889 | $ | (33,235 | ) | $ | 10,446 | $ | (31,492 | ) | ||||||||
| Income tax expense (benefit) | 2 | (3 | ) | (3 | ) | 9 | (9 | ) | ||||||||||||
| Interest expense (income), net | (647 | ) | (603 | ) | (397 | ) | (1,792 | ) | (1,057 | ) | ||||||||||
| Operating income (loss) | 1,672 | 1,283 | (33,635 | ) | 8,663 | (32,558 | ) | |||||||||||||
| Depreciation and amortization | 1,208 | 1,240 | 1,390 | 3,641 | 4,115 | |||||||||||||||
| EBITDA | 2,880 | 2,523 | (32,245 | ) | 12,304 | (28,443 | ) | |||||||||||||
| Gain on property sale(5) | - | - | - | (2,880 | ) | - | ||||||||||||||
| Hurricane insurance gains(5) | - | - | (291 | ) | - | (462 | ) | |||||||||||||
| Shipyard operating loss (income) | (22 | ) | (9 | ) | 35,117 | (373 | ) | 39,268 | ||||||||||||
| Adjusted EBITDA | $ | 2,858 | $ | 2,514 | $ | 2,581 | $ | 9,051 | $ | 10,363 | ||||||||||
_________________
| (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 for the Fabrication division for each of the three and nine months ended September 30, 2023, includes project improvements of | ||
| (4) | General and administrative expense for the Shipyard division for the three and nine months ended September 30, 2023, includes legal and advisory fees of | ||
| (5) | Other (income) expense for the Fabrication division for the nine months ended September 30, 2024, includes a gain of | ||
Results of Operations by Division (including Reconciliations of EBITDA and Adjusted EBITDA) (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Services Division | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | 20,205 | $ | 22,392 | $ | 22,776 | $ | 68,065 | $ | 68,578 | ||||||||||
| Revenue | $ | 20,245 | $ | 22,767 | $ | 22,976 | $ | 68,546 | $ | 69,033 | ||||||||||
| Cost of revenue | 18,205 | 19,879 | 19,716 | 60,005 | 58,685 | |||||||||||||||
| Gross profit | 2,040 | 2,888 | 3,260 | 8,541 | 10,348 | |||||||||||||||
| General and administrative expense | 634 | 687 | 701 | 2,064 | 2,203 | |||||||||||||||
| Other (income) expense, net | 10 | 12 | (18 | ) | 25 | (42 | ) | |||||||||||||
| Operating income | $ | 1,396 | $ | 2,189 | $ | 2,577 | $ | 6,452 | $ | 8,187 | ||||||||||
| EBITDA(1) | ||||||||||||||||||||
| Operating income | $ | 1,396 | $ | 2,189 | $ | 2,577 | $ | 6,452 | $ | 8,187 | ||||||||||
| Depreciation and amortization | 495 | 486 | 502 | 1,461 | 1,440 | |||||||||||||||
| EBITDA | $ | 1,891 | $ | 2,675 | $ | 3,079 | $ | 7,913 | $ | 9,627 | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Fabrication Division | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | 16,902 | $ | 17,610 | $ | 16,589 | $ | 52,784 | $ | 46,733 | ||||||||||
| Revenue | $ | 17,110 | $ | 18,727 | $ | 14,979 | $ | 52,975 | $ | 69,382 | ||||||||||
| Cost of revenue | 14,569 | 17,488 | 13,762 | 47,003 | 64,139 | |||||||||||||||
| Gross profit(2) | 2,541 | 1,239 | 1,217 | 5,972 | 5,243 | |||||||||||||||
| General and administrative expense | 489 | 545 | 448 | 1,475 | 1,438 | |||||||||||||||
| Other (income) expense, net(3) | 18 | (435 | ) | (135 | ) | (3,387 | ) | (638 | ) | |||||||||||
| Operating income | $ | 2,034 | $ | 1,129 | $ | 904 | $ | 7,884 | $ | 4,443 | ||||||||||
| EBITDA and Adjusted EBITDA(1) | ||||||||||||||||||||
| Operating income | $ | 2,034 | $ | 1,129 | $ | 904 | $ | 7,884 | $ | 4,443 | ||||||||||
| Depreciation and amortization | 633 | 674 | 813 | 1,942 | 2,460 | |||||||||||||||
| EBITDA | 2,667 | 1,803 | 1,717 | 9,826 | 6,903 | |||||||||||||||
| Gain on property sale(3) | - | - | - | (2,880 | ) | - | ||||||||||||||
| Hurricane insurance gains(3) | - | - | (291 | ) | - | (462 | ) | |||||||||||||
| Adjusted EBITDA | $ | 2,667 | $ | 1,803 | $ | 1,426 | $ | 6,946 | $ | 6,441 | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Shipyard Division | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards(1) | $ | - | $ | 76 | $ | (718 | ) | $ | 354 | $ | (1,067 | ) | ||||||||
| Revenue | $ | 490 | $ | 36 | $ | (32,702 | ) | $ | 935 | $ | (30,973 | ) | ||||||||
| Cost of revenue | 415 | 5 | 1,654 | 510 | 4,982 | |||||||||||||||
| Gross profit (loss)(4) | 75 | 31 | (34,356 | ) | 425 | (35,955 | ) | |||||||||||||
| General and administrative expense(5) | - | - | 857 | - | 3,107 | |||||||||||||||
| Other (income) expense, net | 53 | 22 | (96 | ) | 52 | 206 | ||||||||||||||
| Operating income (loss) | $ | 22 | $ | 9 | $ | (35,117 | ) | $ | 373 | $ | (39,268 | ) | ||||||||
| EBITDA(1) | ||||||||||||||||||||
| Operating income (loss) | $ | 22 | $ | 9 | $ | (35,117 | ) | $ | 373 | $ | (39,268 | ) | ||||||||
| Depreciation and amortization | - | - | - | - | - | |||||||||||||||
| EBITDA | $ | 22 | $ | 9 | $ | (35,117 | ) | $ | 373 | $ | (39,268 | ) | ||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| Corporate Division | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| New project awards (eliminations)(1) | $ | (205 | ) | $ | (268 | ) | $ | (230 | ) | $ | (673 | ) | $ | (925 | ) | |||||
| Revenue (eliminations) | $ | (205 | ) | $ | (268 | ) | $ | (230 | ) | $ | (673 | ) | $ | (925 | ) | |||||
| Cost of revenue | (205 | ) | (268 | ) | (230 | ) | (673 | ) | (925 | ) | ||||||||||
| Gross profit | - | - | - | - | - | |||||||||||||||
| General and administrative expense | 1,862 | 2,122 | 2,074 | 6,284 | 6,135 | |||||||||||||||
| Other (income) expense, net | (82 | ) | (78 | ) | (75 | ) | (238 | ) | (215 | ) | ||||||||||
| Operating loss | $ | (1,780 | ) | $ | (2,044 | ) | $ | (1,999 | ) | $ | (6,046 | ) | $ | (5,920 | ) | |||||
| EBITDA(1) | ||||||||||||||||||||
| Operating loss | $ | (1,780 | ) | $ | (2,044 | ) | $ | (1,999 | ) | $ | (6,046 | ) | $ | (5,920 | ) | |||||
| Depreciation and amortization | 80 | 80 | 75 | 238 | 215 | |||||||||||||||
| EBITDA | $ | (1,700 | ) | $ | (1,964 | ) | $ | (1,924 | ) | $ | (5,808 | ) | $ | (5,705 | ) | |||||
_________________
| (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 each of the three and nine months ended September 30, 2023, includes project improvements of | ||
| (3) | Other (income) expense for the Fabrication division for the nine months ended September 30, 2024, includes a gain of | ||
| (4) | Gross loss for the Shipyard division for each of the three and nine months ended September 30, 2023, includes charges of | ||
| (5) | General and administrative expense for the Shipyard division for the three and nine months ended September 30, 2023, includes legal and advisory fees of | ||
Consolidated Balance Sheets (in thousands)
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 21,328 | $ | 38,176 | ||||
| Restricted cash | 1,475 | 1,475 | ||||||
| Short-term investments | 44,022 | 8,233 | ||||||
| Contract receivables and retainage, net | 23,504 | 36,298 | ||||||
| Contract assets | 5,815 | 2,739 | ||||||
| Prepaid expenses and other assets | 4,073 | 6,994 | ||||||
| Inventory | 2,266 | 2,072 | ||||||
| Assets held for sale | — | 5,640 | ||||||
| Total current assets | 102,483 | 101,627 | ||||||
| Property, plant and equipment, net | 24,684 | 23,145 | ||||||
| Goodwill | 2,217 | 2,217 | ||||||
| Other intangibles, net | 593 | 700 | ||||||
| Other noncurrent assets | 791 | 739 | ||||||
| Total assets | $ | 130,768 | $ | 128,428 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,538 | $ | 8,466 | ||||
| Contract liabilities | 1,479 | 5,470 | ||||||
| Accrued expenses and other liabilities | 14,161 | 14,836 | ||||||
| Long-term debt, current | 1,075 | 1,075 | ||||||
| Total current liabilities | 22,253 | 29,847 | ||||||
| Long-term debt, noncurrent | 18,925 | 18,925 | ||||||
| Other noncurrent liabilities | 791 | 685 | ||||||
| Total liabilities | 41,969 | 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, 16,405 shares issued and outstanding at September 30, 2024 and 16,258 at December 31, 2023 | 11,667 | 11,729 | ||||||
| Additional paid-in capital | 108,059 | 108,615 | ||||||
| Accumulated deficit | (30,927 | ) | (41,373 | ) | ||||
| Total shareholders’ equity | 88,799 | 78,971 | ||||||
| Total liabilities and shareholders’ equity | $ | 130,768 | $ | 128,428 | ||||
Consolidated Cash Flows (in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net income (loss) | $ | 2,317 | $ | 1,889 | $ | (33,235 | ) | $ | 10,446 | $ | (31,492 | ) | ||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||||||
| Depreciation and amortization | 1,208 | 1,240 | 1,390 | 3,641 | 4,115 | |||||||||||||||
| Change in allowance for doubtful accounts and credit losses | — | — | (210 | ) | (28 | ) | (410 | ) | ||||||||||||
| Gain on sale or disposal of assets held for sale and fixed assets, net | — | (701 | ) | (216 | ) | (3,942 | ) | (249 | ) | |||||||||||
| Gain on insurance recoveries | — | — | — | — | (245 | ) | ||||||||||||||
| Stock-based compensation expense | 406 | 532 | 513 | 1,444 | 1,466 | |||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Contract receivables and retainage, net | 9,929 | (6,541 | ) | 631 | 12,822 | (6,479 | ) | |||||||||||||
| Contract assets | (3,594 | ) | 2,684 | 2,357 | (3,076 | ) | 534 | |||||||||||||
| Prepaid expenses, inventory and other current assets | 249 | 50 | 1,874 | 2,401 | 2,829 | |||||||||||||||
| Accounts payable | (3,382 | ) | 2,251 | (5,828 | ) | (2,843 | ) | 2,914 | ||||||||||||
| Contract liabilities | (2,650 | ) | 2,389 | 469 | (3,991 | ) | (4,662 | ) | ||||||||||||
| Accrued expenses and other current liabilities | 1,347 | (419 | ) | 2,020 | (494 | ) | (373 | ) | ||||||||||||
| Noncurrent assets and liabilities, net | (184 | ) | (96 | ) | 32,256 | (437 | ) | 31,880 | ||||||||||||
| Net cash provided by (used in) operating activities | 5,646 | 3,278 | 2,021 | 15,943 | (172 | ) | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Capital expenditures | (1,314 | ) | (1,013 | ) | (645 | ) | (4,880 | ) | (1,701 | ) | ||||||||||
| Proceeds from sale of property and equipment | — | 720 | 290 | 9,614 | 396 | |||||||||||||||
| Recoveries from insurance claims | — | — | — | 326 | 245 | |||||||||||||||
| Purchases of short-term investments | (14,407 | ) | (35,167 | ) | (15,471 | ) | (71,744 | ) | (30,731 | ) | ||||||||||
| Maturities of short-term investments | 22,500 | 10,405 | 15,200 | 35,955 | 25,200 | |||||||||||||||
| Net cash provided by (used in) investing activities | 6,779 | (25,055 | ) | (626 | ) | (30,729 | ) | (6,591 | ) | |||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Payments on Insurance Finance Arrangements | — | — | (128 | ) | — | (1,257 | ) | |||||||||||||
| Tax payments for vested stock withholdings | — | (1,183 | ) | — | (1,183 | ) | (482 | ) | ||||||||||||
| Repurchases of common stock | (606 | ) | — | — | (879 | ) | — | |||||||||||||
| Net cash used in financing activities | (606 | ) | (1,183 | ) | (128 | ) | (2,062 | ) | (1,739 | ) | ||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 11,819 | (22,960 | ) | 1,267 | (16,848 | ) | (8,502 | ) | ||||||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 10,984 | 33,944 | 25,055 | 39,651 | 34,824 | |||||||||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 22,803 | $ | 10,984 | $ | 26,322 | $ | 22,803 | $ | 26,322 | ||||||||||
2024 Financial Outlook - Consolidated EBITDA and Adjusted EBITDA(1) Reconciliations (in thousands)
| Twelve Months Ending December 31, 2024 | ||||||||
| Low | High | |||||||
| Net income | $ | 11,553 | $ | 13,553 | ||||
| Income tax expense (benefit) | - | - | ||||||
| Interest expense (income), net | (2,300 | ) | (2,300 | ) | ||||
| Operating income | 9,253 | 11,253 | ||||||
| Depreciation and amortization | 5,000 | 5,000 | ||||||
| EBITDA | 14,253 | 16,253 | ||||||
| Gain on property sale(2) | (2,880 | ) | (2,880 | ) | ||||
| Shipyard operating income | (373 | ) | (373 | ) | ||||
| Adjusted EBITDA | $ | 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
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