Annual report pursuant to Section 13 and 15(d)

QUARTERLY OPERATING RESULTS (UNAUDITED)

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QUARTERLY OPERATING RESULTS (UNAUDITED)
12 Months Ended
Dec. 31, 2012
QUARTERLY OPERATING RESULTS (UNAUDITED)

13. QUARTERLY OPERATING RESULTS (UNAUDITED)

A summary of quarterly results of operations for the years ended December 31, 2012 and 2011 were as follows (in thousands, except per share data):

 

     March 31,
2012
     June 30,
2012
     September 30,
2012 (a)
    December 31,
2012 (b)
 

Revenue

   $ 113,083       $ 137,227       $ 141,793      $ 129,237   

Gross profit

     12,668         13,905         (13,379     (9,354

Net Income

     6,779         7,592         (10,372     (8,090

Basic EPS

     0.47         0.52         (0.72     (0.56

Diluted EPS

     0.47         0.52         (0.72     (0.56

 

     March 31,
2011 (c)
    June 30,
2011
     September 30,
2011
     December 31,
2011
 

Revenue

   $ 46,348      $ 87,251       $ 85,827       $ 88,406   

Gross profit (loss)

     (9,568     4,846         4,004         5,246   

Net income (loss)

     (6,964     1,835         1,559         1,766   

Basic EPS

     (0.49     0.13         0.11         0.12   

Diluted EPS

     (0.49     0.13         0.11         0.12   

 

(a) We recognized contract losses of $20.6 million in the three-month period ended September 30, 2012 which resulted in an unfavorable reduction in gross margin during the period of $26.8 million as required under the accounting for loss contracts under percentage of completion accounting. This loss was mainly due to the increase in estimated man-hours to complete one of our major deepwater contracts. These increased man-hours were primarily driven by revisions and delivery delays to specifications and designs by our customer in the third quarter of 2012 causing out-of-sequence work schedules to be used while executing the project. The customer also extended delivery of the first phase of the project as a result of these revisions. On March 7, 2013 we executed change orders with the customer which settled issues raised in a claim for additional costs on this project. Revenue for this claim was recorded in the three-month period ended December 31, 2012.
(b) We determined the contract receivable balance owed by Bluewater Industries on the Cheviot project as describe in Note 2 would not likely be collected in full and recorded a $14.5 million reserve as of December 31, 2012.
(c) On April 8, 2011, we received an unfavorable ruling regarding a disputed claim for costs incurred in connection with an April 2008 accident at our Texas facility involving four cranes. As a result, we recognized all recorded amounts as asset impairments in cost of revenue of $7.7 million, of which $5.9 million related to disputed crane rental costs and $1.8 million related to the remaining net book value of one of the cranes involved in the accident that is now deemed a total loss.