Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

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OPERATING SEGMENTS
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
OPERATING SEGMENTS

7. OPERATING SEGMENTS

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

 

Fabrication & Services Division – Our Fabrication & Services (“F&S”) 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; fabricates other complex steel structures and components; provides services on offshore platforms, including welding, interconnect piping and other services required to connect production equipment and service modules and equipment; provides on-site construction and maintenance services on inland platforms and structures and industrial facilities; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works.  These activities are performed at our F&S Facility.

Shipyard Division – Our Shipyard Division fabricates newbuild marine vessels, including OSVs, MPSVs, research vessels, tugboats, salvage vessels, towboats, barges, drydocks, anchor handling vessels, and lift boats; provides marine repair and maintenance services, including steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning; and performs conversion projects to lengthen vessels and modify vessels to permit their use for a different type of activity or enhance their capacity or functionality. These activities are performed at our Shipyard Facility.  As discussed in Note 1 and Note 8, on April 19, 2021, we completed the Shipyard Transaction. We intend to complete construction of the Retained Shipyard Contracts within our F&S Facility and wind down our Shipyard Division operations, which is anticipated to occur by mid-2022.   See Note 8 for further discussion of the Shipyard Transaction.     

Corporate Division – Our Corporate Division includes costs that do not directly relate to our two 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, litigation related costs, and costs associated with overall corporate governance and being a publicly traded company. Costs incurred by our Corporate Division on behalf of our operating divisions are allocated to the operating divisions. Such costs include, but are not limited to, human resources, insurance, information technology and accounting.

We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (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 and for the three months ended March 31, 2021 and 2020, are as follows (in thousands):

 

 

 

Three Months Ended March 31, 2021

 

 

 

F&S

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

19,060

 

 

$

40,296

 

 

$

(405

)

 

$

58,951

 

Gross profit

 

 

1,042

 

 

 

6,539

 

 

 

—

 

 

 

7,581

 

Operating income (loss)

 

 

981

 

 

 

(17,450

)

 

 

(1,989

)

 

 

(18,458

)

Depreciation and amortization expense

 

 

1,021

 

 

 

840

 

 

 

79

 

 

 

1,940

 

Capital expenditures

 

 

160

 

 

 

300

 

 

 

—

 

 

 

460

 

Total assets(1)

 

 

56,241

 

 

 

103,236

 

 

 

53,949

 

 

 

213,426

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

F&S

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue

 

$

33,443

 

 

$

45,559

 

 

$

(447

)

 

$

78,555

 

Gross profit (loss)

 

 

970

 

 

 

(1,224

)

 

 

—

 

 

 

(254

)

Operating income (loss)

 

 

10,165

 

 

 

(1,899

)

 

 

(2,330

)

 

 

5,936

 

Depreciation and amortization expense

 

 

1,358

 

 

 

787

 

 

 

75

 

 

 

2,220

 

Capital expenditures

 

 

681

 

 

 

1,443

 

 

 

—

 

 

 

2,124

 

Total assets(1)

 

 

70,886

 

 

 

109,651

 

 

 

70,492

 

 

 

251,029

 

__________________

 

(1)

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