Quarterly report [Sections 13 or 15(d)]

OPERATING SEGMENTS

v3.25.1
OPERATING SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
OPERATING SEGMENTS

7. OPERATING SEGMENTS

During 2021, we sold our Shipyard Division operating assets and certain construction contracts and commenced the wind down of our remaining Shipyard Division operations, which consisted of completion of the Ferry Projects. The wind down of our Shipyard Division operations was substantially completed in the fourth quarter 2023 and final completion occurred in the first quarter 2025 with the expiration of the last warranty period for the Ferry Projects. While our Shipyard Division represented a reportable segment for the year ended December 31, 2024, effective January 1, 2025, the Shipyard Division is no longer a reportable segment. Accordingly, we currently operate and manage our business through two operating divisions (“Services” and “Fabrication”) and one non-operating division (“Corporate”), which represent our reportable segments. Operating results for our Shipyard Division for the first quarter 2025 are not material and are reflected within our Corporate Division. Our two 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.

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 costs.

Segment Results – Our chief operating decision maker is our chief executive officer and he generally evaluates the performance of, and allocates 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 and for the three months ended March 31, 2025 and 2024, is as follows (in thousands):

 

 

Three Months Ended March 31, 2025

 

 

 

Services

 

 

Fabrication

 

 

Shipyard(1)

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

19,855

 

 

$

20,694

 

 

$

—

 

 

$

(276

)

 

$

40,273

 

Cost of revenue

 

 

17,572

 

 

 

16,362

 

 

 

—

 

 

 

(276

)

 

 

33,658

 

Gross profit

 

 

2,283

 

 

 

4,332

 

 

 

—

 

 

 

—

 

 

 

6,615

 

General and administrative expense

 

 

700

 

 

 

567

 

 

 

—

 

 

 

1,968

 

 

 

3,235

 

Other (income) expense, net

 

 

—

 

 

 

(30

)

 

 

—

 

 

 

130

 

 

 

100

 

Operating income (loss)

 

$

1,583

 

 

$

3,795

 

 

$

—

 

 

$

(2,098

)

 

$

3,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

482

 

 

$

698

 

 

$

—

 

 

$

76

 

 

$

1,256

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

549

 

 

$

549

 

Capital expenditures

 

$

—

 

 

$

307

 

 

$

—

 

 

$

—

 

 

$

307

 

Total assets(2)

 

$

23,077

 

 

$

41,311

 

 

$

—

 

 

$

73,774

 

 

$

138,162

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

Services

 

 

Fabrication

 

 

Shipyard

 

 

Corporate

 

 

Consolidated

 

Revenue (eliminations)

 

$

25,534

 

 

$

17,138

 

 

$

409

 

 

$

(200

)

 

$

42,881

 

Cost of revenue

 

 

21,921

 

 

 

14,946

 

 

 

90

 

 

 

(200

)

 

 

36,757

 

Gross profit

 

 

3,613

 

 

 

2,192

 

 

 

319

 

 

 

—

 

 

 

6,124

 

General and administrative expense

 

 

743

 

 

 

441

 

 

 

—

 

 

 

2,300

 

 

 

3,484

 

Other (income) expense, net

 

 

3

 

 

 

(2,970

)

 

 

(23

)

 

 

(78

)

 

 

(3,068

)

Operating income (loss)

 

$

2,867

 

 

$

4,721

 

 

$

342

 

 

$

(2,222

)

 

$

5,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other financial information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

$

480

 

 

$

635

 

 

$

—

 

 

$

78

 

 

$

1,193

 

Interest (expense) income, net

 

$

—

 

 

$

—

 

 

$

—

 

 

$

542

 

 

$

542

 

Capital expenditures

 

$

294

 

 

$

2,259

 

 

$

—

 

 

$

—

 

 

$

2,553

 

Total assets(2)

 

$

28,228

 

 

$

33,172

 

 

$

541

 

 

$

65,817

 

 

$

127,758

 

 

(1)
Effective January 1, 2025, the Shipyard Division is no longer a reportable segment. Remaining operating results for our Shipyard Division are not material and are reflected within our Corporate Division.
(2)
Cash and short-term investments are reported within our Corporate Division.