Annual report pursuant to Section 13 and 15(d)

SHIPYARD TRANSACTION AND DISCONTINUED OPERATIONS (Tables)

v3.22.1
SHIPYARD TRANSACTION AND DISCONTINUED OPERATIONS (Tables)
12 Months Ended
Dec. 31, 2021
Discontinued Operations And Disposal Groups [Abstract]  
Summary of Disposal Groups Including Discontinued Operations

Statement of Operations A summary of the operating results constituting the loss from discontinued operations for 2021 and 2020, is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Revenue

 

$

41,637

 

 

$

133,230

 

Cost of revenue

 

 

33,912

 

 

 

142,872

 

Gross profit (loss)(1)

 

 

7,725

 

 

 

(9,642

)

General and administrative expense

 

 

413

 

 

 

1,426

 

Impairments and (gain) loss on assets held for sale, net(2)

 

 

25,331

 

 

 

1,639

 

Other (income) expense, net(3)

 

 

(647

)

 

 

600

 

Operating loss

 

 

(17,372

)

 

 

(13,307

)

Income tax (expense) benefit(4)

 

 

 

 

 

 

Loss from discontinued operations, net of taxes

 

$

(17,372

)

 

$

(13,307

)

 

 

(1)

Gross profit for 2021 was positively impacted by changes in estimated margins on projects of $8.4 million. The impacts were associated with our towing, salvage and rescue ship projects, resulting from increased contract price primarily associated with an approved change order ($9.2 million impact), offset partially by increased forecast costs, primarily associated with increased craft labor costs ($0.8 million impact). Gross loss for 2020 was negatively impacted by changes in estimated margins on projects of $8.3 million. The impacts were associated with our towing, salvage and rescue ship projects and final two harbor tug projects, resulting from increased forecast costs, primarily associated with increased craft labor and subcontracted services costs and extensions of schedule.


 

 

(2)

Expense for 2021 includes impairments of $22.8 million and transaction and other costs of $2.6 million associated with the Shipyard Transaction (see discussion above). Expense for 2020 includes charges of $1.6 million associated with impairments of drydocks sold in connection with the Shipyard Transaction, impairments of lease assets associated with our Lake Charles Facility, and closure costs associated with our Lake Charles Facility and Jennings Facility.  

 

(3)

Other income for 2021 includes a gain of $0.6 million, resulting from insurance recoveries associated with damage previously caused by Hurricane Laura to a drydock that was sold in connection with the Shipyard Transaction. Other expense for 2020 includes charges of $0.5 million associated with damage caused by Hurricane Laura to our drydocks sold in connection with the Shipyard Transaction and our ninth harbor tug project.

 

(4)

Income taxes attributable to discontinued operations were not material for each period presented.

Assets and Liabilities At December 31, 2021, we had no material assets or liabilities of discontinued operations. A summary of the carrying values of the major classes of assets and liabilities of discontinued operations at December 31, 2020, is as follows (in thousands):

 

 

December 31,

2020

 

Current assets of discontinued operations:

 

 

 

 

Contract receivables and retainage, net

 

$

1,304

 

Contract assets

 

 

62,423

 

Prepaid expenses and other assets

 

 

270

 

Inventory

 

 

105

 

Assets held for sale

 

 

2,014

 

Total current assets of discontinued operations

 

$

66,116

 

 

 

 

 

 

Noncurrent assets of discontinued operations:

 

 

 

 

Property, plant and equipment, net

 

$

36,280

 

Other noncurrent assets

 

 

2,889

 

Total noncurrent assets of discontinued operations

 

$

39,169

 

 

 

 

December 31,

2020

 

Current liabilities of discontinued operations:

 

 

 

 

Accounts payable

 

$

57,752

 

Contract liabilities

 

 

4,867

 

Accrued expenses and other liabilities

 

 

1,188

 

Total current liabilities of discontinued operations

 

$

63,807

 

Cash Flows A summary of the cash flows of discontinued operations for 2021 and 2020, is as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Operating cash flows from discontinued operations

 

$

(9,443

)

 

$

(19,673

)

Investing cash flows from discontinued operations

 

$

32,739

 

 

$

(8,954

)