Gulf Island Fabrication, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables)

Revenue, Contract Assets and Liabilities and Other Contract Matters (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

The following tables summarize revenue for each of our operating segments, disaggregated by contract type and duration, for 2023 and 2022 (in thousands):


	Year ended December 31, 2023
	Services		Fabrication		Shipyard			Eliminations			Total
Fixed-price and unit-rate	$	1,618	$	51,015	$	(30,417	)	$	(33	)	$	22,183
T&M and cost-reimbursable		87,914		38,031		—			—			125,945
Other		4,016		—		—			(1,077	)		2,939
Total	$	93,548	$	89,046	$	(30,417	)	$	(1,110	)	$	151,067

Long-term	$	1,618	$	82,535	$	(30,417	)	$	(33	)	$	53,703
Short-term		91,930		6,511		—			(1,077	)		97,364
Total	$	93,548	$	89,046	$	(30,417	)	$	(1,110	)	$	151,067


	Year ended December 31, 2022
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	5,035	$	36,127	$	7,671	$	(7	)	$	48,826
T&M and cost-reimbursable		79,426		9,526		—		—			88,952
Other		2,561		2,646		—		(665	)		4,542
Total	$	87,022	$	48,299	$	7,671	$	(672	)	$	142,320

Long-term	$	5,035	$	43,037	$	7,671	$	—		$	55,743
Short-term		81,987		5,262		—		(672	)		86,577
Total	$	87,022	$	48,299	$	7,671	$	(672	)	$	142,320

Summary of Remaining Performance Obligations for Each of Operating Segments, Disaggregated by Contract Type

The following table summarizes remaining performance obligations for each of our operating segments, disaggregated by contract type, at December 31, 2023 (in thousands):


	December 31, 2023
	Services		Fabrication		Shipyard		Total
Fixed-price and unit-rate	$	502	$	11,446	$	709	$	12,657
T&M and cost-reimbursable		—		293		—		293
Total (1)	$	502	$	11,739	$	709	$	12,950

(1)

We expect all of our performance obligations at December 31, 2023, to be recognized as revenue during 2024. Certain factors and circumstances could result in changes in the timing of recognition of our performance obligations as revenue and the amounts ultimately recognized.

Summary of Contract with Customer, Asset and Liability

Information with respect to contracts that were incomplete at December 31, 2023 and 2022, is as follows (in thousands):


	December 31,
	2023			2022
Costs incurred to date	$	117,274		$	112,693
Estimated losses incurred to date		(12,735	)		(12,610	)
Sub-total		104,539			100,083
Billings to date		(107,270	)		(103,440	)
Total	$	(2,731	)	$	(3,357	)

The above amounts are included within the following captions on our Balance Sheet at December 31, 2023 and 2022 (in thousands):


	December 31,
	2023			2022
Contract assets (1), (2)	$	2,739		$	4,839
Contract liabilities (3), (4), (5)		(5,470	)		(8,196	)
Total	$	(2,731	)	$	(3,357	)

(1)

The decrease in contract assets from December 31, 2022 to December 31, 2023, was primarily due to decreased unbilled positions on our forty-vehicle ferry projects for our Shipyard Division.

(2)

Contract assets at December 31, 2023 and 2022, excluded $6.0 million and $3.6 million, respectively, associated with revenue recognized in excess of amounts billed for which we have an unconditional right to the consideration. Such amounts are reflected within contract receivables. The increase from December 31, 2022 to December 31, 2023, was primarily due to a customer for our Services Division.

(3)

The decrease in contract liabilities from December 31, 2022 to December 31, 2023, was primarily due to a decrease in advance billings on our cancelled offshore jackets project for our Fabrication Division and accrued contract losses for our Shipyard Division, offset partially by an increase in advance billings on various other projects for our Fabrication Division.

(4)

Revenue recognized during 2023 and 2022, related to amounts included in our contract liabilities balance at December 31, 2022 and 2021, was $6.6 million and $2.7 million, respectively.

(5)

Contract liabilities at December 31, 2023 and 2022, included accrued contract losses of $0.4 million and $1.6 million, respectively, primarily related to projects for our Shipyard Division. See “Changes in Project Estimates” below for further discussion of our accrued contract losses.

Schedules of Concentration of Risk, by Risk Factor

The following table summarizes revenue for customers that accounted for 10% or more of our consolidated revenue for 2023 and 2022 (in thousands):


	Years Ended December 31,
	2023		2022
Customer A	$	70,497	$	54,257
Customer B		26,956	*
Customer C (1)		16,498		14,635
Customer D (1)		15,481	*

(*) The customer revenue was less than 10% of consolidated revenue for the year.

(1)

For 2023, these customers accounted for 10% or more of our consolidated revenue due to lower revenue for the period associated with a charge of $32.5 million for our Shipyard Division, resulting from the resolution of our MPSV Litigation. See “Changes in Project Estimates” below and Note 7 for further discussion of the charge and resolution of our MPSV Litigation.