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 2021.
FIRST QUARTER 2021 SUMMARY (as compared to the
first quarter 2020)
- Total revenue of
$59.0 million, (25.0%) y/y
- Total net loss
of $18.6 million, including impairments and transaction costs of
$23.4 million
- Total non-GAAP
Adjusted Net Income of $4.8 million, excluding impairments and
transaction costs of $23.4 million, (18.9%) y/y
- Total non-GAAP
Adjusted EBITDA of $6.9 million, excluding impairments and
transaction costs, (15.3%) y/y
- Total cash and
short-term investments of $51.0 million as of March 31, 2021
- Completed sale
of Shipyard Division assets and long-term construction contracts in
April 2021
Consolidated revenue for the first quarter 2021
was $59.0 million, compared to $78.6 million for the first quarter
2020. Consolidated net loss for the quarter was $18.6 million
versus consolidated net income of $5.9 million in the prior-year
period. The Company reported Adjusted EBITDA of $6.9 million for
the current quarter and break-even operating cash flow. See
“Non-GAAP Measures” below for the Company's reconciliation and
definition of Adjusted Net Income (Loss), EBITDA and Adjusted
EBITDA.
First quarter 2021 results benefited from
project improvements of $7.7 million for the Shipyard Division and
$0.6 million for the Fabrication & Services Division. First
quarter results also included non-cash impairment charges and
transaction costs of $23.4 million, resulting from the Company’s
previously announced sale of its Shipyard Division assets and
long-term construction contracts which was completed in April 2021
(the “Shipyard Transaction”). First quarter 2020 results benefited
from project improvements of $0.9 million for the Fabrication &
Services Division, as well as a gain of $10.0 million associated
with the settlement of a contract dispute, offset partially by
project charges of $1.2 million for the Shipyard Division.
The Company’s Backlog as of March 31, 2021 was
$339.6 million, with $327.3 million attributable to the Shipyard
Division and $12.3 million attributable to the Fabrication &
Services Division. Backlog as of March 31, 2021 included $309.5
million of Backlog related to long-term construction contracts
included in the Shipyard Transaction. See “Non-GAAP Measures” below
for the Company’s definition of Backlog.
MANAGEMENT COMMENTARY
“While our first quarter results were impacted
by persistent end-market headwinds, we have begun to see improved
trends in bidding activity and positive effects of key strategic
actions that have been implemented during the past year,” said
Richard Heo, Gulf Island’s President and Chief Executive Officer.
“Recent process improvements and consolidation activities in our
Fabrication & Services business resulted in another quarter of
solid project execution within the segment, driving our third
consecutive quarter of positive EBITDA.”
“With the recent sale of our Shipyard Division
assets and long-term construction contracts, we have taken another
critical step toward improving our financial strength, while
positioning the Company to pursue higher-margin opportunities in
new growth markets,” continued Heo. “This transaction has
positioned Gulf Island to become a more focused specialty
fabrication company, one committed to leveraging our unique
competitive advantages to pursue profitable growth. Consistent with
this strategic focus, we also continue to pursue new opportunities
within our services business, which will provide additional
stability to our revenue base and further support our ability to
hire, develop, motivate and retain our talented craft
professionals.”
“The Shipyard Transaction is transformational
for Gulf Island, positioning us to better optimize our asset base
as we build a pipeline of higher-value opportunities,” stated
Westley Stockton, Gulf Island’s Chief Financial Officer. “As a
result of the transaction, we have significantly improved the risk
profile of the Company by divesting higher-risk contracts that
represented approximately 90% of our Backlog, strengthened our
liquidity position by reducing our bonding and letters of credit
requirements, and lessened our quarterly working capital
fluctuations. We expect the financial profile of the new Gulf
Island to be more stable, with a higher-margin revenue mix and less
volatility in quarterly cash flows.”
“It has been a challenging stretch for Gulf
Island, but we have implemented important strategic changes that
have allowed us to exit this period as a much stronger company,”
noted Heo. “With much of the heavy lifting behind us, we are
beginning to shift our focus toward profitability and growth. We
intend to capitalize on improving demand trends in our legacy end
markets and are actively evaluating new opportunities in
higher-growth markets, including LNG and projects supporting
sustainable energy. While it is still early in the market recovery
and more work remains to be done, we are confident that we have the
right plan in place to drive long-term value creation for our
shareholders,” concluded Heo.
STRATEGY UPDATE
During 2020, the Company focused on its
strategic priorities of improving its financial strength and
positioning the Company to pursue higher-margin growth
opportunities by improving its risk profile, strengthening its
liquidity position, improving resource utilization and project
execution and reducing the Company’s reliance on offshore oil &
gas markets.
Improve risk profile
– With the Shipyard Transaction, the Company
divested its higher-risk, long-term construction contracts that
represented 90% of its Backlog. The Backlog was generally
break-even or in a loss position and extended through 2024.
Strengthen liquidity
– The Company implemented cost reduction efforts
and sold under-utilized assets to maintain and strengthen its
liquidity. The Shipyard Transaction further improved the Company’s
financial position by reducing bonding and letters of credit
requirements.
Improve resource utilization and project
execution – Through the rationalization
and integration of its facilities, the Company has taken steps to
improve its resource utilization and as end-markets recover, the
Company should realize the benefits of these actions through
improved operating leverage. The measures taken by the Company to
improve project execution have enabled Fabrication & Services
to achieve three consecutive quarters of positive EBITDA.
Reduce reliance on offshore oil &
gas markets – The Company is focused on
becoming a more stable, higher-growth business by reducing its
reliance on the offshore oil & gas markets. It is further
evaluating opportunities in LNG and sustainable energy end markets,
as well as seeking to expand its services offerings. The Company is
well-positioned to capitalize on market opportunities in these
sectors based on its long history of providing high-quality
fabrication and services solutions to its customers.
SEGMENT RESULTS
Fabrication & Services
Segment – Revenue for the first quarter
2021 was $19.1 million, a decrease of $14.4 million compared to the
first quarter 2020. The decrease was primarily due to the
division’s jacket and deck and paddlewheel river boat projects,
which were completed prior to the first quarter 2021, lower revenue
for its material supply project and a reduced level of small-scale
fabrication and onshore services activity. This decrease was
partially offset by revenue from its marine docking structures,
offshore modules and subsea structures projects, all of which were
awarded subsequent to the first quarter 2020.
Operating income was $1.0 million for the first
quarter 2021, compared to $10.2 million for the first quarter 2020.
Adjusted EBITDA for the current quarter was $2.0 million, compared
to $11.5 million for the first quarter 2020. First quarter 2021
results included project improvements of $0.6 million attributable
to the division’s offshore modules project. Results for the quarter
also reflected the impact of low revenue volume and the partial
under-recovery of overhead costs due to the under-utilization of
facilities and resources. First quarter 2020 results included
project improvements of $0.9 million for the division’s paddlewheel
riverboat and subsea components projects, as well as a gain of
$10.0 million associated with the settlement of a contract
dispute.
Shipyard Segment
– Revenue for the first quarter 2021 was $40.3
million, a decrease of $5.3 million compared to the first quarter
2020. The decrease was primarily due to lower revenue for the
division’s harbor tug, research vessel and forty-vehicle ferry
projects. This decrease was partially offset by higher revenue for
its seventy-vehicle ferry and towing, salvage and rescue ship
projects.
Operating loss was $17.5 million for the first
quarter 2021, compared to an operating loss of $1.9 million for the
first quarter 2020. Adjusted EBITDA for the current quarter was
$6.8 million, compared to a loss of $1.1 million for the first
quarter 2020. First quarter 2021 results included project
improvements of $7.7 million attributable to a change order for the
division’s towing, salvage and rescue projects, offset partially by
project charges on its seventy-vehicle ferry project. Results for
the quarter also reflected non-cash impairment charges and
transaction costs of $23.4 million resulting from the Shipyard
Transaction, as well as the impact of a low margin Backlog and the
partial under-recovery of overhead costs due to the
under-utilization of facilities and resources. First quarter 2020
results included project charges of $1.2 million on the division’s
two forty-vehicle ferry projects.
Corporate Segment
– Operating loss was $2.0 million for the first
quarter 2021, compared to an operating loss of $2.3 million for the
first quarter 2020, with the decrease primarily due to lower legal
and advisory fees and cost savings, offset partially by higher
incentive plan and insurance costs. Adjusted EBITDA for the current
quarter was a loss of $1.9 million, compared to a loss of $2.3
million for the first quarter 2020.
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments at
March 31, 2021 totaled $51.0 million (including $10.3 million
of restricted cash) and current and long-term debt totaled $10.0
million related to proceeds received in the second quarter 2020 in
connection with the Paycheck Protection Program (“PPP”).
On March 26, 2021, the Company amended its $40.0
million revolving credit facility and converted it into a letter of
credit only facility with a capacity of $20.0 million, subject to
cash securitization of the letters of credit, with a maturity date
of June 30, 2023. At March 31, 2021, the Company had $10.3
million of outstanding letters of credit.
FIRST QUARTER 2021 CONFERENCE
CALL
Gulf Island will hold a conference call on
Tuesday, May 11, 2021 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 1.866.248.8441 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 project management,
hookup, commissioning, repair, maintenance and civil construction
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 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 Net Income
(Loss), 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. The Company believes Adjusted EBITDA is a useful
supplemental measure as it reflects the Company’s EBITDA excluding
non-cash impacts of impairments and other impacts which the Company
believes are non-recurring. The Company believes Adjusted Net
Income (Loss) is a useful supplemental measure as it reflects the
Company’s net income (loss) excluding non-cash impacts of
impairments and other impacts which the Company believes are
non-recurring. Reconciliations of EBITDA, Adjusted EBITDA and
Adjusted Net Income (Loss) to the most comparable GAAP measure are
presented under “Consolidated Results of Operations” and “Results
of Operations by Segment” below.
The Company believes New Project Awards and
Backlog are useful supplemental measures as they represent work
that the Company is contractually 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 commitments. Backlog
represents the unrecognized revenue value of New Project Awards and
at March 31, 2021, was comparable to 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 diversification and
entry into new end markets, improvement of risk profile, industry
outlook, oil and gas prices, 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
duration and scope of, and uncertainties associated with, the
ongoing global pandemic caused by COVID-19 and the corresponding
weakened demand for, and volatility of prices of, oil and the
impact thereof on its business and the global economy; the
potential forgiveness of any portion of the PPP Loan; its ability
to secure new project awards, including fabrication projects for
refining, petrochemical, LNG and industrial facilities and offshore
wind developments; the Company’s ability to improve project
execution; its inability to realize the expected financial benefits
of the Shipyard Transaction; 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 the dispute with a
customer related to contracts to build two seventy-vehicle ferries;
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; 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 other
factors described in Part I, Item 1A “Risk Factors” in the
Company’s 2020 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, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
New Project Awards |
|
$ |
27,016 |
|
|
$ |
21,944 |
|
|
$ |
141,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
58,951 |
|
|
$ |
57,561 |
|
|
$ |
78,555 |
|
Cost of revenue |
|
|
51,370 |
|
|
|
65,538 |
|
|
|
78,809 |
|
Gross profit (loss)(2) |
|
|
7,581 |
|
|
|
(7,977 |
) |
|
|
(254 |
) |
General and administrative
expense |
|
|
3,127 |
|
|
|
3,320 |
|
|
|
3,744 |
|
Impairments and (gain) loss on
assets held for sale(3) |
|
|
23,428 |
|
|
|
4,058 |
|
|
|
- |
|
Other (income) expense,
net(4) |
|
|
(516 |
) |
|
|
75 |
|
|
|
(9,934 |
) |
Operating income (loss) |
|
|
(18,458 |
) |
|
|
(15,430 |
) |
|
|
5,936 |
|
Interest (expense) income,
net |
|
|
(194 |
) |
|
|
(114 |
) |
|
|
53 |
|
Income (loss) before income taxes |
|
|
(18,652 |
) |
|
|
(15,544 |
) |
|
|
5,989 |
|
Income tax (expense)
benefit |
|
|
11 |
|
|
|
138 |
|
|
|
(84 |
) |
Net income (loss) |
|
$ |
(18,641 |
) |
|
$ |
(15,406 |
) |
|
$ |
5,905 |
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss) per common share |
|
$ |
(1.21 |
) |
|
$ |
(1.01 |
) |
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted Net Income
(Loss)(5) (in thousands) |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Net income (loss) |
|
$ |
(18,641 |
) |
|
$ |
(15,406 |
) |
|
$ |
5,905 |
|
Add: Impairments and (gain)
loss on assets held for sale |
|
|
23,428 |
|
|
|
4,058 |
|
|
|
- |
|
Adjusted Net Income (Loss)(5) |
|
$ |
4,787 |
|
|
$ |
(11,348 |
) |
|
$ |
5,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA and Adjusted
EBITDA(5)
(in thousands) |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Net income (loss) |
|
$ |
(18,641 |
) |
|
$ |
(15,406 |
) |
|
$ |
5,905 |
|
Less: Income tax (expense)
benefit |
|
|
11 |
|
|
|
138 |
|
|
|
(84 |
) |
Less: Interest (expense)
income, net |
|
|
(194 |
) |
|
|
(114 |
) |
|
|
53 |
|
Operating income (loss) |
|
|
(18,458 |
) |
|
|
(15,430 |
) |
|
|
5,936 |
|
Add: Depreciation and lease
asset amortization |
|
|
1,940 |
|
|
|
2,154 |
|
|
|
2,220 |
|
EBITDA(5) |
|
|
(16,518 |
) |
|
|
(13,276 |
) |
|
|
8,156 |
|
Add: Impairments and (gain)
loss on assets held for sale |
|
|
23,428 |
|
|
|
4,058 |
|
|
|
- |
|
Adjusted EBITDA(5) |
|
$ |
6,910 |
|
|
$ |
(9,218 |
) |
|
$ |
8,156 |
|
_________________
(1) |
See “Results of Operations by Segment” below for results by
segment. |
(2) |
Gross profit for the Fabrication & Services Division for the
three months ended March 31, 2021 and March 31, 2020, includes
project improvements of $0.6 million and $0.9 million,
respectively. Gross profit (loss) for the Shipyard Division for the
three months ended March 31, 2021, includes project improvements of
$7.7 million, and for the three months ended December 31, 2020 and
March 31, 2020, includes project charges of $8.8 million and $1.2
million, respectively. |
(3) |
Impairments and (gain) loss on assets held for sale for the
Shipyard Division for the three months ended March 31, 2021,
includes impairment charges and transaction costs resulting from
the Shipyard Transaction. Impairments and (gain) loss on assets
held for sale for both the Shipyard Division and Fabrication &
Services Division for the three months ended December 31, 2020,
includes impairment charges attributable to assets held for
sale. |
(4) |
Other (income) expense for the Fabrication & Services Division
for the three months ended March 31, 2021, includes a gain of $0.4
million associated with the settlement of a property tax dispute,
and for the three months ended March 31, 2020, includes a gain of
$10.0 million associated with the settlement of a contract
dispute. |
(5) |
Adjusted Net Income (Loss), EBITDA and Adjusted EBITDA are non-GAAP
measures. Adjusted Net Income (Loss) and Adjusted EBITDA exclude
impairments and (gain) loss on assets held for sale. See “Non-GAAP
Measures” above for the Company's definition of Adjusted Net Income
(Loss), EBITDA and Adjusted EBITDA. |
|
Results
of Operations by Segment (in thousands) |
|
|
|
Three Months Ended |
|
Fabrication &
Services Division |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
New Project Awards |
|
$ |
11,547 |
|
|
$ |
13,608 |
|
|
$ |
12,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
19,060 |
|
|
$ |
21,199 |
|
|
$ |
33,443 |
|
Cost of revenue |
|
|
18,018 |
|
|
|
19,861 |
|
|
|
32,473 |
|
Gross profit(1) |
|
|
1,042 |
|
|
|
1,338 |
|
|
|
970 |
|
General and administrative
expense |
|
|
667 |
|
|
|
669 |
|
|
|
839 |
|
Impairments and (gain) loss on
assets heldfor sale(2) |
|
|
- |
|
|
|
2,419 |
|
|
|
- |
|
Other (income) expense,
net(3) |
|
|
(606 |
) |
|
|
1 |
|
|
|
(10,034 |
) |
Operating income (loss) |
|
$ |
981 |
|
|
$ |
(1,751 |
) |
|
$ |
10,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
981 |
|
|
$ |
(1,751 |
) |
|
$ |
10,165 |
|
Add: Depreciation and lease
asset amortization |
|
|
1,021 |
|
|
|
1,235 |
|
|
|
1,358 |
|
EBITDA(4) |
|
|
2,002 |
|
|
|
(516 |
) |
|
|
11,523 |
|
Add: Impairments and (gain)
loss on assets held for sale |
|
|
- |
|
|
|
2,419 |
|
|
|
- |
|
Adjusted EBITDA(4) |
|
$ |
2,002 |
|
|
$ |
1,903 |
|
|
$ |
11,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Shipyard
Division |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
New Project Awards |
|
$ |
15,469 |
|
|
$ |
8,336 |
|
|
$ |
128,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
40,296 |
|
|
$ |
37,173 |
|
|
$ |
45,559 |
|
Cost of revenue |
|
|
33,757 |
|
|
|
46,488 |
|
|
|
46,783 |
|
Gross profit (loss)(5) |
|
|
6,539 |
|
|
|
(9,315 |
) |
|
|
(1,224 |
) |
General and administrative
expense |
|
|
471 |
|
|
|
451 |
|
|
|
575 |
|
Impairments and (gain) loss on
assets heldfor sale(6) |
|
|
23,428 |
|
|
|
1,639 |
|
|
|
- |
|
Other (income) expense,
net |
|
|
90 |
|
|
|
71 |
|
|
|
100 |
|
Operating loss |
|
$ |
(17,450 |
) |
|
$ |
(11,476 |
) |
|
$ |
(1,899 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(17,450 |
) |
|
$ |
(11,476 |
) |
|
$ |
(1,899 |
) |
Add: Depreciation and lease
asset amortization |
|
|
840 |
|
|
|
846 |
|
|
|
787 |
|
EBITDA(4) |
|
|
(16,610 |
) |
|
|
(10,630 |
) |
|
|
(1,112 |
) |
Add: Impairments and (gain)
loss on assets held for sale |
|
|
23,428 |
|
|
|
1,639 |
|
|
|
- |
|
Adjusted EBITDA(4) |
|
$ |
6,818 |
|
|
$ |
(8,991 |
) |
|
$ |
(1,112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Corporate
Division |
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Revenue (eliminations) |
|
$ |
(405 |
) |
|
$ |
(811 |
) |
|
$ |
(447 |
) |
Cost of revenue |
|
|
(405 |
) |
|
|
(811 |
) |
|
|
(447 |
) |
Gross profit (loss) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
General and administrative
expense |
|
|
1,989 |
|
|
|
2,200 |
|
|
|
2,330 |
|
Other (income) expense,
net |
|
|
- |
|
|
|
3 |
|
|
|
- |
|
Operating loss |
|
$ |
(1,989 |
) |
|
$ |
(2,203 |
) |
|
$ |
(2,330 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted
EBITDA(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,989 |
) |
|
$ |
(2,203 |
) |
|
$ |
(2,330 |
) |
Add: Depreciation and lease
asset amortization |
|
|
79 |
|
|
|
73 |
|
|
|
75 |
|
EBITDA(4) |
|
|
(1,910 |
) |
|
|
(2,130 |
) |
|
|
(2,255 |
) |
Add: Impairments and (gain)
loss on assets held for sale |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA(4) |
|
$ |
(1,910 |
) |
|
$ |
(2,130 |
) |
|
$ |
(2,255 |
) |
_________________
(1) |
Gross profit for the Fabrication & Services Division for the
three months ended March 31, 2021 and March 31, 2020, includes
project improvements of $0.6 million and $0.9 million,
respectively. |
(2) |
Impairments and (gain) loss on assets held for sale for the
Fabrication & Services Division for the three months ended
December 31, 2020, includes impairment charges attributable to
assets held for sale. |
(3) |
Other (income) expense for the Fabrication & Services Division
for the three months ended March 31, 2021, includes a gain of $0.4
million associated with the settlement of a property tax dispute,
and for the three months ended March 31, 2020, includes a gain of
$10.0 million associated with the settlement of a contract
dispute. |
(4) |
EBITDA and Adjusted EBITDA are non-GAAP measures. Adjusted EBITDA
excludes impairments and (gain) loss on assets held for sale. See
”Non-GAAP Measures” above for the Company's definition of EBTIDA
and Adjusted EBITDA. |
(5) |
Gross profit (loss) for the Shipyard Division for the three months
ended March 31, 2021, includes project improvements of $7.7
million, and for the three months ended December 31, 2020 and March
31, 2020, includes project charges of $8.8 million and $1.2
million, respectively. |
(6) |
Impairments and (gain) loss on assets held for sale for the
Shipyard Division for the three months ended March 31, 2021,
includes impairment charges and transaction costs resulting from
the Shipyard Transaction, and for the three months ended December
31, 2020, includes impairment charges attributable to assets held
for sale. |
|
|
|
|
|
|
|
Consolidated Balance Sheets (in thousands) |
|
|
|
|
|
|
|
|
|
March 31,2021 |
|
|
December 31,2020 |
|
|
|
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
32,653 |
|
|
$ |
43,159 |
|
Restricted cash, current |
|
|
9,937 |
|
|
|
— |
|
Short-term investments |
|
|
8,000 |
|
|
|
7,998 |
|
Contract receivables and retainage, net |
|
|
18,173 |
|
|
|
15,393 |
|
Contract assets |
|
|
71,372 |
|
|
|
67,521 |
|
Prepaid expenses and other assets |
|
|
2,817 |
|
|
|
2,815 |
|
Inventory |
|
|
2,105 |
|
|
|
2,262 |
|
Assets held for sale |
|
|
8,214 |
|
|
|
8,214 |
|
Total current assets |
|
|
153,271 |
|
|
|
147,362 |
|
Property, plant and equipment,
net |
|
|
43,195 |
|
|
|
67,458 |
|
Restricted cash, noncurrent |
|
|
406 |
|
|
|
— |
|
Other noncurrent assets |
|
|
16,554 |
|
|
|
16,523 |
|
Total assets |
|
$ |
213,426 |
|
|
$ |
231,343 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
71,789 |
|
|
$ |
70,114 |
|
Contract liabilities |
|
|
11,812 |
|
|
|
15,129 |
|
Accrued expenses and other liabilities |
|
|
9,993 |
|
|
|
7,670 |
|
Long-term debt, current |
|
|
7,183 |
|
|
|
5,499 |
|
Total current liabilities |
|
|
100,777 |
|
|
|
98,412 |
|
Long-term debt, noncurrent |
|
|
2,817 |
|
|
|
4,501 |
|
Other noncurrent liabilities |
|
|
1,898 |
|
|
|
2,068 |
|
Total liabilities |
|
|
105,492 |
|
|
|
104,981 |
|
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, 15,517 shares
issued and outstanding at March 31, 2021 and 15,359 at December 31,
2020 |
|
|
11,245 |
|
|
|
11,223 |
|
Additional paid-in capital |
|
|
104,263 |
|
|
|
104,072 |
|
Retained earnings (accumulated deficit) |
|
|
(7,574 |
) |
|
|
11,067 |
|
Total shareholders’ equity |
|
|
107,934 |
|
|
|
126,362 |
|
Total liabilities and shareholders’ equity |
|
$ |
213,426 |
|
|
$ |
231,343 |
|
|
Consolidated Cash Flows (in thousands) |
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(18,641 |
) |
|
$ |
(15,406 |
) |
|
$ |
5,905 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and lease asset amortization |
|
|
1,940 |
|
|
|
2,154 |
|
|
|
2,220 |
|
Other amortization, net |
|
|
15 |
|
|
|
15 |
|
|
|
13 |
|
Asset impairments |
|
|
22,750 |
|
|
|
3,310 |
|
|
|
— |
|
(Gain) loss on sale of assets held for sale, net |
|
|
— |
|
|
|
156 |
|
|
|
— |
|
(Gain) loss on sale of fixed assets and other assets, net |
|
|
(6 |
) |
|
|
3 |
|
|
|
(5 |
) |
Stock-based compensation expense |
|
|
313 |
|
|
|
345 |
|
|
|
95 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Contract receivables and retainage, net |
|
|
(2,779 |
) |
|
|
9,043 |
|
|
|
9,917 |
|
Contract assets |
|
|
(3,851 |
) |
|
|
4,839 |
|
|
|
(12,777 |
) |
Prepaid expenses, inventory and other current assets |
|
|
228 |
|
|
|
(69 |
) |
|
|
1,829 |
|
Accounts payable |
|
|
1,756 |
|
|
|
(8,858 |
) |
|
|
9,663 |
|
Contract liabilities |
|
|
(3,317 |
) |
|
|
(5,048 |
) |
|
|
(14,700 |
) |
Accrued expenses and other current liabilities |
|
|
2,303 |
|
|
|
(1,771 |
) |
|
|
(1,918 |
) |
Noncurrent assets and liabilities, net (including long-term
retainage) |
|
|
(353 |
) |
|
|
(444 |
) |
|
|
(235 |
) |
Net cash provided by (used in) operating activities |
|
|
358 |
|
|
|
(11,731 |
) |
|
|
7 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(460 |
) |
|
|
(1,021 |
) |
|
|
(2,124 |
) |
Proceeds from sale of property, plant and equipment |
|
|
39 |
|
|
|
341 |
|
|
|
1,080 |
|
Purchases of short-term investments |
|
|
— |
|
|
|
(38,759 |
) |
|
|
— |
|
Maturities of short-term investments |
|
|
— |
|
|
|
50,552 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
|
(421 |
) |
|
|
11,113 |
|
|
|
(1,044 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Payment of financing cost |
|
|
— |
|
|
|
(1 |
) |
|
|
(30 |
) |
Tax payments for vested stock withholdings |
|
|
(100 |
) |
|
|
— |
|
|
|
(74 |
) |
Net cash used in financing activities |
|
|
(100 |
) |
|
|
(1 |
) |
|
|
(104 |
) |
Net decrease in Cash and cash
equivalents |
|
|
(163 |
) |
|
|
(619 |
) |
|
|
(1,141 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
43,159 |
|
|
|
43,778 |
|
|
|
49,703 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
42,996 |
|
|
$ |
43,159 |
|
|
$ |
48,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From Apr 2024 to May 2024
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From May 2023 to May 2024