Gulf Island Fabrication Reports Fourth Quarter Earnings
HOUSTON--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net loss of $3.6 million ($0.24 diluted loss per share) on revenue of $55.5 million for its fourth quarter ended December 31, 2016, compared to a net loss of $14.7 million ($1.01 diluted loss per share) on revenue of $55.0 million for the fourth quarter ended December 31, 2015. For the years ended December 31, 2016 and 2015, the Company reported net income of $3.5 million ($0.24 diluted earnings per share) on revenue of $286.3 million compared to a net loss of $25.4 million ($1.75 diluted loss per share) on revenue of $306.1 million, respectively.
The Company had a revenue backlog of $133.0 million and a labor backlog of approximately 1.3 million hours at December 31, 2016, including commitments received through February 22, 2017, compared to a revenue backlog of $181.2 million and a labor backlog of 1.6 million hours reported as of September 30, 2016. We expect to recognize revenue from our backlog of approximately $130.4 million and $2.6 million during the years 2017 and 2018, respectively.
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December 31, 2016 |
December 31, 2015 |
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| (in thousands) | |||||||||
| Cash and cash equivalents | $ | 51,167 | $ | 34,828 | |||||
| Total current assets | 113,360 | 115,869 | |||||||
| Property, plant and equipment, net | 206,222 | 200,384 | |||||||
| Total assets | 322,408 | 316,923 | |||||||
| Total current liabilities | 35,348 | 37,901 | |||||||
| Total debt | — | — | |||||||
| Total shareholders’ equity | $ | 263,032 | $ | 257,197 | |||||
As of December 31, 2016, our balance sheet position remained stable with $51.2 million in cash, no debt, and working capital of $78.0 million. We will continue to monitor and maintain a conservative capital structure as we navigate through the current oil and gas downturn.
On February 23, 2017, our Board of Directors approved a recommendation of management to consolidate all of our fabrication operations in South Texas with our fabrication operations in Houma, Louisiana, and place our properties located in Aransas Pass and Ingleside, Texas, up for sale. These properties are currently underutilized and represent excess capacity within our fabrication division. We are working to wind down all fabrication activities at these locations and re-allocate remaining backlog and workforce to our Houma Fabrication Yard as necessary. We do not expect the sale of these properties to impact our ability to service our deepwater customers or operate our fabrication division.
The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, February 24, 2017, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter and year ended December 31, 2016. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.264.8952. A digital rebroadcast of the call is available two hours after the call and ending March 3, 2017 by dialing 1.888.203.1112.
Gulf Island Fabrication, Inc. is a leading fabricator of complex steel structures and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation and alternative energy projects and shipping and marine transportation operations. The Company also provides related installation, hookup, commissioning, repair and maintenance services with specialized crews and integrated project management capabilities. The Company is currently fabricating complex modules for the construction of a new petrochemical plant, completing newbuild construction of two technologically advanced offshore support and two multi-purpose service vessels and recently fabricated wind turbine pedestals for the first offshore wind power project in the United States. The Company also constructed one of the largest lift boats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM and the first SPAR fabricated in the United States. The Company’s customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power and marine operators. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana, and Aransas Pass and Ingleside, Texas.
| GULF ISLAND FABRICATION, INC. | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||||||||||||
|
(in thousands, except per share data) |
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| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
|
December 31, |
December 31, |
September 30, |
December 31, |
December 31, |
||||||||||||||||||||||
| 2016 |
2015 |
2016 | 2016 | 2015 | ||||||||||||||||||||||
| Revenue | $ | 55,461 | $ | 55,018 | $ | 65,384 | $ | 286,326 | $ | 306,120 | ||||||||||||||||
| Cost of revenue | 55,633 | 72,590 | 60,125 | 261,473 | 321,276 | |||||||||||||||||||||
| Gross (loss) profit | (172 | ) | (17,572 | ) | 5,259 | 24,853 | (15,156 | ) | ||||||||||||||||||
| General and administrative expenses |
5,037 |
4,439 | 5,086 | 19,670 | 16,256 | |||||||||||||||||||||
| Asset impairment | — | 602 | — | — | 7,202 | |||||||||||||||||||||
| Operating (loss) income |
(5,209 |
) | (22,613 | ) | 173 | 5,183 | (38,614 | ) | ||||||||||||||||||
| Other income (expense): | ||||||||||||||||||||||||||
| Interest expense | (84 | ) | (39 | ) | (110 | ) | (332 | ) | (165 | ) | ||||||||||||||||
| Interest income | 4 | 5 | 12 | 24 | 26 | |||||||||||||||||||||
| Other income (expense) | (358 | ) | — | 599 | 681 | 20 | ||||||||||||||||||||
| (438 | ) | (34 | ) | 501 | 373 | (119 | ) | |||||||||||||||||||
| (Loss) income before income taxes |
(5,647 |
) | (22,647 | ) | 674 | 5,556 | (38,733 | ) | ||||||||||||||||||
| Income taxes | (2,092 | ) | (7,980 | ) | 133 | 2,041 | (13,369 | ) | ||||||||||||||||||
| Net (loss) income | $ |
(3,555 |
) | $ | (14,667 | ) | $ | 541 | $ | 3,515 | $ | (25,364 | ) | |||||||||||||
| Per share data: | ||||||||||||||||||||||||||
| Basic and diluted (loss) earnings per share - common shareholders | $ | (0.24 | ) | $ | (1.01 | ) | $ | 0.04 | $ | 0.24 | $ | (1.75 | ) | |||||||||||||
| Cash dividend declared per common share | $ | 0.01 | $ | 0.10 | $ | 0.01 | $ | 0.04 | $ | 0.40 | ||||||||||||||||
|
Backlog (in thousands) |
|||||||||||||||||||||||
| December 31, 2016 | September 30, 2016 | June 30, 2016 | |||||||||||||||||||||
|
Segment |
$'s | Labor hours | $'s | Labor hours | $'s | Labor hours | |||||||||||||||||
| Fabrication | $ | 65,444 | 707 | $ | 84,940 | 841 | $ | 41,126 | 431 | ||||||||||||||
| Shipyards | 59,771 | 457 | 78,886 | 582 | 93,912 | 629 | |||||||||||||||||
| Services | 7,757 | 101 | 17,386 | 163 | 22,540 | 209 | |||||||||||||||||
| Intersegment Eliminations | — | — | — | — | (41 | ) | — | ||||||||||||||||
| Total Backlog | $ | 132,972 | 1,265 | $ | 181,212 | 1,586 | $ | 157,537 | 1,269 | ||||||||||||||
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Results of Operations by Operating Segments (in thousands, except percentages) |
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Fabrication Division |
Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Revenue | $ | 18,247 | $ | 14,145 | $ | 88,683 | $ | 151,576 | |||||||||||||
| Gross profit (loss) | 643 | (23,486 | ) | 5,061 | (37,541 | ) | |||||||||||||||
| Gross profit percentage | 3.5 | % | (166.0 | )% | 5.7 | % | (24.8 | )% | |||||||||||||
| General and administrative expenses | 1,621 | 2,267 | 6,100 | 9,293 | |||||||||||||||||
| Asset impairment | — | 602 | — | 7,202 | |||||||||||||||||
| Operating loss | (978 | ) | (26,355 | ) | (1,039 | ) | (54,036 | ) | |||||||||||||
|
Shipyards Division |
Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Revenue | $ | 22,949 | $ | 12,424 | $ | 109,502 | $ | 59,601 | |||||||||||||
| Gross (loss) profit | (2,008 | ) | 2,643 | 7,587 | 8,665 | ||||||||||||||||
| Gross profit percentage | (8.7 | )% | 21.3 | % | 6.9 | % | 14.5 | % | |||||||||||||
|
General and administrative expenses |
1,875 | 449 | 7,750 | 1,692 | |||||||||||||||||
| Operating (loss) income | (3,883 | ) | 2,194 | (163 | ) | 6,973 | |||||||||||||||
|
Services Division |
Three Months Ended |
Twelve Months Ended |
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| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| Revenue | $ | 15,235 | $ | 29,444 | $ | 91,414 | $ | 100,431 | |||||||||||||
| Gross profit | 1,193 | 3,277 | 12,205 | 13,726 | |||||||||||||||||
| Gross profit percentage | 7.8 | % | 11.1 | % | 13.4 | % | 13.7 | % | |||||||||||||
| General and administrative expenses | 1,518 | 1,170 | 5,637 | 4,178 | |||||||||||||||||
| Operating (loss) income | (325 | ) | 2,107 | 6,568 | 9,548 | ||||||||||||||||
| GULF ISLAND FABRICATION, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||
| Twelve Months Ended December 31, | |||||||||||
| 2016 | 2015 | ||||||||||
| (in thousands) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | 3,515 | $ | (25,364 | ) | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation | 25,448 | 26,204 | |||||||||
| Amortization of deferred revenue | (5,223 | ) | — | ||||||||
| Asset impairment | — | 7,202 | |||||||||
| Allowance for doubtful accounts | 493 | 448 | |||||||||
| (Gain) loss on sale of asset | (757 | ) | (10 | ) | |||||||
| Deferred income taxes | 1,409 | (14,061 | ) | ||||||||
| Stock-based compensation expense | 3,125 | 2,707 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Contracts receivable, net | 28,067 | 31,740 | |||||||||
| Contracts in progress | (13,984 | ) | 14,167 | ||||||||
| Advance billings on contracts | (3,197 | ) | (11,685 | ) | |||||||
| Accounts payable | (12,757 | ) | (26,668 | ) | |||||||
| Prepaid expenses and other assets | 230 | 1,092 | |||||||||
| Inventory | 6,501 | 931 | |||||||||
| Accrued contract losses | (9,108 | ) | 8,678 | ||||||||
| Deferred revenue | (11,656 | ) | — | ||||||||
| Deferred compensation | 305 | — | |||||||||
| Accrued expenses | 2,003 | (5,381 | ) | ||||||||
| Current income taxes | (63 | ) | 615 | ||||||||
| Net cash provided by operating activities | $ | 14,351 | $ | 10,615 | |||||||
| Cash flows from investing activities: | |||||||||||
| Cash received in acquisition | 3,035 | — | |||||||||
| Capital expenditures, net | (6,795 | ) | (6,018 | ) | |||||||
| Proceeds from the sale of equipment | 6,458 | 11 | |||||||||
| Net cash provided by (used in) investing activities | 2,698 | (6,007 | ) | ||||||||
| Cash flows from financing activities: | |||||||||||
| Payment of financing costs | (122 | ) | — | ||||||||
| Payments of dividends on common stock | (588 | ) | (5,865 | ) | |||||||
| Net cash used in financing activities | (710 | ) | (5,865 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents | 16,339 | (1,257 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 34,828 | 36,085 | |||||||||
| Cash and cash equivalents at end of period | $ | 51,167 | $ | 34,828 | |||||||
| Supplemental cash flow information: | |||||||||||
| Interest paid | $ | 332 | $ | 165 | |||||||
| Income taxes paid (refunds received), net | $ | 377 | $ | (152 | ) | ||||||
| Schedule of noncash financing activities | |||||||||||
| Reclassification of property, plant and equipment to assets held for sale | $ | — | $ | 4,805 | |||||||
| Reclassification of assets to held for sale to inventory | $ | — | $ | 3,727 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170223006693/en/
Gulf Island Fabrication, Inc.
Kirk J. Meche, 713-714-6100
Chief
Executive Officer
or
David S. Schorlemer, 713-714-6100
Chief
Financial Officer
Source: Gulf Island Fabrication, Inc.
Released February 23, 2017
