Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DISCLOSURES

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SEGMENT DISCLOSURES
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
SEGMENT DISCLOSURES
SEGMENT DISCLOSURES

Effective January 1, 2016, we acquired the assets and certain liabilities of LEEVAC Shipyards, LLC (See Note 2). In connection with the LEEVAC acquisition, management restructured the operation of our business units into three divisions which we believe meet the criteria of reportable segments under GAAP: Fabrication, Shipyards and Services.

Fabrication - Our Fabrication division primarily fabricates structures such as offshore drilling and production platforms and other steel structures for customers in the oil and gas and marine industries including jackets and deck sections of fixed production platforms along with pressure vessels. Our Fabrication segment also fabricates structures for alternative energy customers (such as the five jackets and piles we constructed for a shallow water wind turbine project off the coast of Rhode Island during 2015) as well floating LNG platforms. We perform these activities out of our fabrication yards in Houma, Louisiana and Ingleside, Texas.

Shipyards - Our Shipyards division primarily fabricates and repairs marine vessels including offshore supply vessels, anchor handling vessels, lift boats, tug boats, and towboats. The LEEVAC acquisition expands our marine fabrication capabilities to include non oil and gas marine vessels such as cruise vessels. Our Shipyards division also constructs dry docks to lift marine vessels out of the water in order to make repairs or modifications. Our marine repair activities include steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning. Our Shipyards division also performs conversion projects that consist of lengthening or modifying the use of existing vessels to enhance their capacity or functionality. We perform these activities primarily out of our facilities in Houma, Jennings and Lake Charles, Louisiana.

Services - Our Services division primarily provides interconnect piping services on offshore platforms and inshore steel structures. Interconnect piping services involve sending employee crews to offshore platforms in the Gulf of Mexico to perform welding and other activities required to connect production equipment, service modules and other equipment to a platform. We also contract with oil and gas companies that have platforms and other structures located in the inland lakes and bays throughout the southeast for various on-site construction and maintenance activities. In addition, our Services division can fabricate large and small packaged skid units and provide various municipal and drainage projects, such as pump stations, levee reinforcement, bulkheads and other levee and drainage projects, to state and local governments.

We generally evaluate the performance of and allocate resources to our segments based upon gross profit (loss) and operating income (loss). Segment assets are comprised of all assets attributable to each segment. Corporate administrative costs and overhead are generally allocated to our segments except for costs that are not directly identifiable with our divisions. Intersegment revenues are priced at the estimated fair value as negotiated between the operating divisions. Summarized financial information concerning our segments as of and for the three months ended March 31, 2016 and 2015 is as follows (in thousands):
 
Three Months Ended March 31, 2016
 
Fabrication
Shipyards
Services
Corp. & Eliminations
Consolidated
Revenue
$
23,829

$
34,120

$
26,559

$
(529
)
$
83,979

Gross profit
41

2,329

3,331

—

5,701

Operating income (loss)
(1,282
)
523

2,095

(120
)
1,216

 
 
 
 
 
 
Total assets
293,049

85,638

93,283

(132,802
)
339,168

Depreciation expense
4,855

1,166

442

104

6,567

CAPEX
(109
)
(35
)
(543
)
(37
)
(724
)
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
 
Fabrication
Shipyards
Services
Corp. & Eliminations
Consolidated
Revenue
$
56,933

$
19,481

$
24,788

$
(1,969
)
$
99,233

Gross profit (loss)
(256
)
2,441

2,263

—

4,448

Operating income (loss)
(2,950
)
2,010

1,278

(183
)
155

 
 
 
 
 
 
Total assets
377,579

61,411

87,305

(153,378
)
372,917

Depreciation expense
5,560

479

430

130

6,599

CAPEX
(480
)
(92
)
(429
)
—

(1,001
)