Gulf Island Fabrication, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

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

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

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

The following tables summarize revenue for each of our operating segments, disaggregated by contract type and duration, for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31, 2024
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	249	$	15,875	$	409	$	—		$	16,533
T&M and cost-reimbursable		24,727		1,263		—		—			25,990
Other		558		—		—		(200	)		358
Total	$	25,534	$	17,138	$	409	$	(200	)	$	42,881

Long-term	$	249	$	15,958	$	409	$	—		$	16,616
Short-term		25,285		1,180		—		(200	)		26,265
Total	$	25,534	$	17,138	$	409	$	(200	)	$	42,881


	Three Months Ended March 31, 2023
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	172	$	12,189	$	1,347	$	(8	)	$	13,700
T&M and cost-reimbursable		20,542		27,473		—		—			48,015
Other		873		—		—		(420	)		453
Total	$	21,587	$	39,662	$	1,347	$	(428	)	$	62,168

Long-term	$	172	$	38,708	$	1,347	$	(8	)	$	40,219
Short-term		21,415		954		—		(420	)		21,949
Total	$	21,587	$	39,662	$	1,347	$	(428	)	$	62,168

Summary of Remaining Performance Obligations, Disaggregated by Operating Segment and Contract Type

The following table summarizes our remaining performance obligations, disaggregated by operating segment and contract type, at March 31, 2024 (in thousands):


	March 31, 2024
	Services		Fabrication		Shipyard(1)		Total
Fixed-price and unit-rate	$	437	$	12,873	$	577	$	13,887
T&M and cost-reimbursable		—		—		—		—
Total(2)	$	437	$	12,873	$	577	$	13,887

(1)

Future performance obligations for our Shipyard Division relate to potential repairs and rework during the warranty periods for the Ferry Projects. See “Changes in Project Estimates” below for further discussion of the warranty periods for the Ferry Projects.

(2)

We expect all of our performance obligations at March 31, 2024, 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 March 31, 2024 and December 31, 2023, is as follows (in thousands):


	March 31,			December 31,
	2024			2023
Contract assets(1), (2)	$	4,905		$	2,739
Contract liabilities(3), (4), (5)		(1,740	)		(5,470	)
Contracts in progress, net	$	3,165		$	(2,731	)

(1)

The increase in contract assets from December 31, 2023 to March 31, 2024, was primarily due to increased unbilled positions on various projects for our Fabrication Division.

(2)

Contract assets at March 31, 2024 and December 31, 2023, excluded $5.8 million and $6.0 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 decrease from December 31, 2023 to March 31, 2024, was primarily due to the net impact of various customers for our Services Division.

(3)

The decrease in contract liabilities from December 31, 2023 to March 31, 2024, was primarily due to a decrease in advance billings on various projects for our Fabrication Division.

(4)

Revenue recognized during the three months ended March 31, 2024 and 2023, related to amounts included in our contract liabilities balance at December 31, 2023 and 2022 was $4.2 million and $6.0 million, respectively.

(5)

Contract liabilities at March 31, 2024 and December 31, 2023, includes accrued contract losses of $0.3 million and $0.4 million, respectively, primarily related to projects for our Shipyard Division. See “Changes in Project Estimates” below for further discussion of our accrued contract losses.