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)

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30, 2024
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	514	$	16,682	$	36	$	(3	)	$	17,229
T&M and cost-reimbursable		21,589		2,045		—		—			23,634
Other		664		—		—		(265	)		399
Total	$	22,767	$	18,727	$	36	$	(268	)	$	41,262

Long-term	$	514	$	17,656	$	36	$	(3	)	$	18,203
Short-term		22,253		1,071		—		(265	)		23,059
Total	$	22,767	$	18,727	$	36	$	(268	)	$	41,262


	Three Months Ended June 30, 2023
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	627	$	13,399	$	382	$	(2	)	$	14,406
T&M and cost-reimbursable		22,828		1,342		—		—			24,170
Other		1,015		—		—		(265	)		750
Total	$	24,470	$	14,741	$	382	$	(267	)	$	39,326

Long-term	$	627	$	13,508	$	382	$	(2	)	$	14,515
Short-term		23,843		1,233		—		(265	)		24,811
Total	$	24,470	$	14,741	$	382	$	(267	)	$	39,326


	Six Months Ended June 30, 2024
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	763	$	32,557	$	445	$	(3	)	$	33,762
T&M and cost-reimbursable		46,316		3,308		—		—			49,624
Other		1,222		—		—		(465	)		757
Total	$	48,301	$	35,865	$	445	$	(468	)	$	84,143

Long-term	$	763	$	33,614	$	445	$	(3	)	$	34,819
Short-term		47,538		2,251		—		(465	)		49,324
Total	$	48,301	$	35,865	$	445	$	(468	)	$	84,143


	Six Months Ended June 30, 2023
	Services		Fabrication		Shipyard		Eliminations			Total
Fixed-price and unit-rate	$	799	$	25,588	$	1,729	$	(10	)	$	28,106
T&M and cost-reimbursable		43,370		28,815		—		—			72,185
Other		1,888		—		—		(685	)		1,203
Total	$	46,057	$	54,403	$	1,729	$	(695	)	$	101,494

Long-term	$	799	$	52,216	$	1,729	$	(10	)	$	54,734
Short-term		45,258		2,187		—		(685	)		46,760
Total	$	46,057	$	54,403	$	1,729	$	(695	)	$	101,494

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 June 30, 2024 (in thousands):


	June 30, 2024
	Services		Fabrication		Shipyard(1)		Total
Fixed-price and unit-rate	$	62	$	11,410	$	617	$	12,089
T&M and cost-reimbursable		—		346		—		346
Total(2)	$	62	$	11,756	$	617	$	12,435

(1)

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

(2)

We expect all of our performance obligations at June 30, 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 June 30, 2024 and December 31, 2023, is as follows (in thousands):


	June 30,			December 31,
	2024			2023
Contract assets(1), (2)	$	2,221		$	2,739
Contract liabilities(3), (4), (5)		(4,129	)		(5,470	)
Contracts in progress, net	$	(1,908	)	$	(2,731	)

(1)

The decrease in contract assets from December 31, 2023 to June 30, 2024, was primarily due to lower unbilled positions on various projects for our Fabrication Division.

(2)

Contract assets at June 30, 2024 and December 31, 2023, excluded $4.4 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 June 30, 2024, was primarily due to lower unbilled positions on various projects for our Services Division.

(3)

The decrease in contract liabilities from December 31, 2023 to June 30, 2024, was primarily due to lower advance billings on various projects for our Fabrication Division.

(4)

Revenue recognized during the three months ended June 30, 2024 and 2023, from amounts included in our contract liabilities balance at March 31, 2024 and 2023 was $0.8 million and $2.3 million, respectively. Revenue recognized during the six months ended June 30, 2024 and 2023, from amounts included in our contract liabilities balance at December 31, 2023 and 2022 was $4.6 million and $6.1 million, respectively.

(5)

Contract liabilities at June 30, 2024 and December 31, 2023, includes accrued contract losses of $0.4 million and $0.4 million, respectively, primarily related to our Ferry Projects for our Shipyard Division.