Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.24.3
OPERATING SEGMENTS
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
OPERATING SEGMENTS

6. OPERATING SEGMENTS

We currently operate and manage our business through three operating divisions (“Services”, “Fabrication” and “Shipyard”) and one non-operating division (“Corporate”), which represent our reportable segments. Our three operating divisions and Corporate Division are discussed below.

Services Division – Our Services Division provides maintenance, repair, construction, scaffolding, coatings, welding enclosures, cleaning and environmental and other specialty services on offshore platforms and inland structures and at industrial facilities; provides services required to connect production equipment and service modules and equipment on offshore platforms; provides project management and commissioning services; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. Our services activities are managed from our various Facilities.

Fabrication Division – Our Fabrication Division fabricates modules, skids and piping systems for onshore refining, petrochemical, LNG and industrial facilities and offshore facilities; fabricates foundations, secondary steel components and support structures for alternative energy developments and coastal mooring facilities; fabricates offshore production platforms and associated structures, including jacket foundations, piles and topsides for fixed production and utility platforms, as well as hulls and topsides for floating production and utility platforms; and fabricates other complex steel structures and components. Our fabrication activities are performed at our Houma Facilities.

Shipyard Division – Our Shipyard Division previously fabricated newbuild marine vessels and provided marine repair and maintenance services. However, during 2021, we completed the Shipyard Transaction. The Shipyard Transaction excluded the contracts and related obligations for our Ferry Projects that were under construction as of the transaction date, and excluded the contracts and related obligations for the projects that were subject to our previous MPSV Litigation, which was resolved on October 4, 2023. Construction of the Ferry Projects was performed at our Houma Facilities and the wind down of our remaining Shipyard Division operations was substantially completed in the fourth quarter 2023. Final completion of the wind down will occur upon completion of the warranty periods for the Ferry Projects, the last of which ends in the first quarter 2025. At September 30, 2024 and December 31, 2023, the net operating liabilities on our Balance Sheet associated with our Shipyard Division operations totaled $1.8 million and $1.4 million, respectively. See Note 1 for further discussion of the Shipyard Transaction, Note 2 for further discussion of our Ferry Projects and Note 4 for further discussion of the resolution of our MPSV Litigation.

Corporate Division and Allocations – Our Corporate Division includes costs that do not directly relate to our operating divisions. Such costs include, but are not limited to, costs of maintaining our corporate office, executive management salaries and incentives, board of directors’ fees, certain insurance costs and costs associated with overall corporate governance and reporting requirements for a publicly traded company. Shared resources and costs that benefit more than one operating division are allocated amongst the operating divisions based on each operating division’s estimated share of the benefit received. Such costs include, but are not limited to, human resources, insurance, information technology, accounting, business development and certain division leadership.

Segment Results – We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit or loss and operating income or loss. Segment assets are comprised of all assets attributable to each division. Intersegment revenues are priced at the estimated fair value of work performed. Summarized financial information for our segments as of September 30, 2024 and 2023, and for the three and nine months ended September 30, 2024 and 2023, is as follows (in thousands):

 

 

 

Three Months Ended September 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

20,245

 

 

$

17,110

 

 

$

490

 

 

$

(205

)

 

$

37,640

 

Gross profit

 

 

2,040

 

 

 

2,541

 

 

 

75

 

 

 

—

 

 

 

4,656

 

Operating income (loss)

 

 

1,396

 

 

 

2,034

 

 

 

22

 

 

 

(1,780

)

 

 

1,672

 

Depreciation and amortization expense

 

 

495

 

 

 

633

 

 

 

—

 

 

 

80

 

 

 

1,208

 

Capital expenditures

 

 

17

 

 

 

1,297

 

 

 

—

 

 

 

—

 

 

 

1,314

 

Total assets(1)

 

 

24,445

 

 

 

34,895

 

 

 

233

 

 

 

71,195

 

 

 

130,768

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

22,976

 

 

$

14,979

 

 

$

(32,702

)

 

$

(230

)

 

$

5,023

 

Gross profit (loss)

 

 

3,260

 

 

 

1,217

 

 

 

(34,356

)

 

 

—

 

 

 

(29,879

)

Operating income (loss)

 

 

2,577

 

 

 

904

 

 

 

(35,117

)

 

 

(1,999

)

 

 

(33,635

)

Depreciation and amortization expense

 

 

502

 

 

 

813

 

 

 

—

 

 

 

75

 

 

 

1,390

 

Capital expenditures

 

 

—

 

 

 

573

 

 

 

—

 

 

 

72

 

 

 

645

 

Total assets(1)

 

 

30,407

 

 

 

44,372

 

 

 

727

 

 

 

45,096

 

 

 

120,602

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

68,546

 

 

$

52,975

 

 

$

935

 

 

$

(673

)

 

$

121,783

 

Gross profit

 

 

8,541

 

 

 

5,972

 

 

 

425

 

 

 

—

 

 

 

14,938

 

Operating income (loss)

 

 

6,452

 

 

 

7,884

 

 

 

373

 

 

 

(6,046

)

 

 

8,663

 

Depreciation and amortization expense

 

 

1,461

 

 

 

1,942

 

 

 

—

 

 

 

238

 

 

 

3,641

 

Capital expenditures

 

 

684

 

 

 

4,196

 

 

 

—

 

 

 

—

 

 

 

4,880

 

Total assets(1)

 

 

24,445

 

 

 

34,895

 

 

 

233

 

 

 

71,195

 

 

 

130,768

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

69,033

 

 

$

69,382

 

 

$

(30,973

)

 

$

(925

)

 

$

106,517

 

Gross profit (loss)

 

 

10,348

 

 

 

5,243

 

 

 

(35,955

)

 

 

—

 

 

 

(20,364

)

Operating income (loss)

 

 

8,187

 

 

 

4,443

 

 

 

(39,268

)

 

 

(5,920

)

 

 

(32,558

)

Depreciation and amortization expense

 

 

1,440

 

 

 

2,460

 

 

 

—

 

 

 

215

 

 

 

4,115

 

Capital expenditures

 

 

508

 

 

 

1,111

 

 

 

—

 

 

 

82

 

 

 

1,701

 

Total assets(1)

 

 

30,407

 

 

 

44,372

 

 

 

727

 

 

 

45,096

 

 

 

120,602

 

 

Cash and short-term investments are reported within our Corporate Division.