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 $41.3 million, compared to consolidated revenue of $39.3
million for the prior year period. Consolidated net income for the
second quarter 2024 was $1.9 million, compared to consolidated net
income of $1.1 million for the prior year period. Consolidated
EBITDA for the second quarter 2024 was $2.5 million, compared to
consolidated EBITDA of $2.1 million for the prior year period (and
consolidated adjusted EBITDA for the prior year period of $4.1
million, which excludes losses of $1.9 million for the Shipyard
division). See “Non-GAAP Measures” below for the Company’s
definition of EBITDA and adjusted EBITDA and reconciliations of the
relevant amounts to the most comparable GAAP measures.
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 5% compared to the prior year period, driven by a
27% year-over-year increase in Fabrication division revenue on the
continued strength of small-scale fabrication. We experienced a
less favorable project mix in our Fabrication division during the
quarter, which impacted margins; however, we remain encouraged by
the trends in the division and remain on track for our full-year
Fabrication division EBITDA guidance.”
“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 $14 million full-year Services division EBITDA guidance to
a range of $11 to $13 million. Despite revising our Services
division guidance, we remain optimistic by the outlook for our
Services division, especially as we continue to invest in new
growth businesses. To that end, during the second quarter we
launched our cleaning and environmental services (“CES”) business
line, which expands our services offerings to better support
de-commissioning activity in the Gulf of Mexico. We are looking for
a potential contribution from these activities during the second
half of the year with a more significant ramp up during 2025.”
“We generated another quarter of positive free
cash flow, and as a result, our cash and short-term investments
balance totaled approximately $63 million at quarter end,” stated
Westley Stockton, Gulf Island’s Chief Financial Officer. “Our
balance sheet provides us ample financial flexibility to pursue our
growth objectives, which includes investments in organic
initiatives such as Spark Safety and our new CES offering, as well
as potential strategic opportunities.”
“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 $22.8 million, a decrease of $1.7
million, or 7.0%, compared to the second quarter 2023. The decrease
was primarily due to lower new project awards driven by delayed
timing of certain project opportunities.
New project awards were $22.4 million for the
second quarter 2024, an 8.0% year-over-year decrease, and backlog
totaled $0.1 million at June 30, 2024. The decline in new
awards was primarily due to lower offshore services work driven by
delayed timing of certain project opportunities. See “Non-GAAP
Measures” below for the Company’s definition of new project awards
and backlog.
Operating income was $2.2 million for the second
quarter 2024, compared to $3.3 million for the second quarter 2023.
EBITDA for the second quarter 2024 was $2.7 million (or 11.7% of
revenue), down from $3.8 million (or 15.4% of revenue) for the
prior year period, primarily due to lower revenue, a less favorable
project margin mix and investments associated with the start-up of
the division’s CES business line. See “Non-GAAP Measures” below for
the Company’s definition of EBITDA and a reconciliation of the
Services division’s operating income to EBITDA.
Fabrication Division – Revenue
for the second quarter 2024 was $18.7 million, an increase of $4.0
million, or 27.0%, compared to the second quarter 2023. The
increase was primarily due to higher small-scale fabrication
activity.
New project awards were $17.6 million for the
second quarter 2024, a 31.0% year-over-year increase, and backlog
totaled $11.8 million at June 30, 2024. The increase in new
awards was primarily due to higher small-scale fabrication work.
See “Non-GAAP Measures” below for the Company’s definition of new
project awards and backlog.
Operating income was $1.1 million for the second
quarter 2024, compared to $1.3 million for the second quarter 2023.
EBITDA for the second quarter 2024 was $1.8 million, down from $2.1
million for the prior year period, primarily due to a less
favorable project margin mix, partially offset by higher revenue
and improved utilization of facilities and resources associated
with increased small-scale fabrication activity. See “Non-GAAP
Measures” below for the Company’s definition of EBITDA and a
reconciliation of the Fabrication division’s operating income to
EBITDA.
Shipyard Division – Revenue for
the second quarter 2024 was not significant, compared to $0.4
million for the second quarter 2023, and was related to the
division’s seventy-vehicle ferry and forty-vehicle ferry projects.
Operating income was break-even for the second quarter 2024,
compared to an operating loss of $1.9 million for the prior year
period. The wind down of the Shipyard segment operations was
substantially completed in the fourth quarter 2023, with final
completion anticipated to occur upon completion of the warranty
periods for the ferries.
Corporate Division – Operating
loss was $2.0 million for the second quarter 2024, compared to an
operating loss of $1.9 million for the second quarter 2023. EBITDA
for the second quarter 2024 was a loss of $2.0 million, versus a
loss of $1.8 million for the prior year period. See “Non-GAAP
Measures” below for the Company’s definition of EBITDA and a
reconciliation of the Corporate division’s operating loss to
EBITDA.
BALANCE SHEET AND LIQUIDITY
The Company’s cash and short-term investments
balance at June 30, 2024 was $63.1 million, including $1.5
million of restricted cash associated with outstanding letters of
credit. At June 30, 2024, the Company had total debt of $20.0
million, bearing interest at a fixed rate of 3.0% per annum, with
principal and interest payable in 15 equal annual installments of
approximately $1.7 million, beginning on December 31, 2024 and
ending on December 31, 2038. The estimated present value of the
debt is $13.4 million based on an estimated market rate of
interest.
2024 FINANCIAL OUTLOOK
Gulf Island is revising its full-year 2024
Services division EBITDA guidance, which is expected to be
approximately $11.0 million to $13.0 million, a reduction from
prior guidance of $14.0 million. The reduction is primarily due to
delays in the timing of project opportunities for the Spark Safety
business line and incremental investment spending on growth
initiatives.
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
$0.8 million, and for the three and six months ended June 30, 2023,
includes vessel holding costs of $0.2 million and $0.5 million,
respectively, associated with the Company’s previous MPSV
Litigation. |
(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 $0.5 million and $2.3 million, respectively,
associated with the Company’s previous MPSV Litigation. |
(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 $2.9 million from the sale of assets held
for sale, and for the six months ended June 30, 2023, includes
gains of $0.2 million from the net impact of insurance recoveries
and costs associated with damage previously caused by Hurricane
Ida. Such amounts have been removed from EBITDA to derive adjusted
EBITDA. |
|
|
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 $2.9 million from the sale of assets held
for sale, and for the six months ended June 30, 2023, includes
gains of $0.2 million from the net impact of insurance recoveries
and costs associated with damage previously caused by Hurricane
Ida. Such amounts have been removed from EBITDA to derive 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
$0.8 million, and for the three and six months ended June 30, 2023,
includes vessel holding costs of $0.2 million and $0.5 million,
respectively, associated with the Company’s previous MPSV
Litigation. |
(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 $0.5 million and $2.3 million, respectively,
associated with the Company’s previous MPSV Litigation. |
|
|
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
issuedand outstanding |
|
|
— |
|
|
|
— |
|
Common stock, no par value, 30,000 shares authorized, 16,516 shares
issuedand 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. |
|
|
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From Sep 2024 to Oct 2024
Gulf Island Fabrication (NASDAQ:GIFI)
Historical Stock Chart
From Oct 2023 to Oct 2024