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SEGMENT DISCLOSURES | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
SEGMENT DISCLOSURES | SEGMENT DISCLOSURES We have structured our operations with four operating divisions, and one corporate non-operating division. We believe that our operating divisions and our corporate non-operating division each represent a reportable segment under GAAP. Our EPC Division was created in December 2017 to manage expected work we will perform for the SeaOne Project and other projects that may require EPC project management services. As part of our efforts to strategically reposition the Company (see Note 1), we may change how we manage the business which could result in a change in our reporting segments in future periods. Our operating divisions and corporate non-operating division at June 30, 2018 are discussed below. Fabrication Division - Our Fabrication Division primarily fabricates structures such as offshore drilling and production platforms and other steel structures for customers in the oil and gas industry including jackets and deck sections of fixed production platforms, hull, tendon, and/or deck sections of floating production platforms (such as TLPs, SPARs, FPSOs and MinDOCs), piles, wellhead protectors, subsea templates, and various production, compressor, and utility modules along with pressure vessels. Our Fabrication Division also fabricates structures for alternative energy customers (such as the five jackets and piles we constructed for the first offshore wind power project in the United States) as well as modules for petrochemical facilities. We perform these activities out of our fabrication yards in Houma, Louisiana. As of the date of this Report, our Texas South Yard has been sold and our Texas North Yard is held for sale. See Note 2 for further disclosure relating to our South Texas Properties. Shipyard Division - Our Shipyard Division primarily manufactures newbuild vessels and repairs various steel marine vessels in the United States including offshore supply vessels, anchor handling vessels and liftboats to support the construction and ongoing operation of offshore oil and gas production platforms, tug boats, towboats, barges, drydocks and other marine vessels. Our marine repair activities include steel repair, blasting and painting services, electrical systems repair, machinery and piping system repairs, and propeller, shaft, and rudder reconditioning. In addition, we perform conversion projects that consist of lengthening vessels, modifying vessels to permit their use for a different type of activity, and other modifications to enhance the capacity or functionality of a vessel. We perform these activities at our shipyards in Houma, Jennings and Lake Charles, Louisiana. Services Division - Our Services Division primarily provides interconnect piping services on offshore platforms and inshore structures. Interconnect piping services involve sending employee crews to offshore platforms in the GOM to perform welding and other activities required to connect production equipment, service modules and other equipment on a platform. We also contract with oil and gas companies that have platforms and other structures located in the inland lakes and bays throughout the southeastern United States for various on-site construction and maintenance activities. In addition, our Services Division fabricates packaged skid units and performs various municipal and drainage projects, such as pump stations, levee reinforcement, bulkheads and other public works projects for state and local governments. We perform these services at customer facilities or at our Houma Services Yard. EPC Division - Late in the fourth quarter of 2017, SeaOne selected us as the prime contractor for the engineering, procurement, construction, installation, commissioning and start-up operations for their SeaOne Project. This project will include execution of engineering, construction and installation of modules for an export facility in Gulfport, Mississippi, and import facilities in the Caribbean and South America. SeaOne’s selection of the Company is non-binding and commencement of the project remains subject to a number of conditions, including agreement on the terms of the engagement with SeaOne. We created our EPC Division to manage this project and future similar projects. We understand that SeaOne is in the process of securing financing to move forward with its project. We are hopeful that the SeaOne Project will initiate planning and initial construction efforts in early 2019. We are strengthening our internal project management capabilities through the hiring of additional personnel to service this potential project. Corporate Division - Our Corporate Division primarily includes expenses that do not directly relate to the operations or shared services provided to our four operating divisions. Expenses for shared services such as human resources, insurance, business development and accounting salaries are allocated to the operating divisions. Expenses that are not allocated include, but are not limited to, costs related to executive management and directors' fees, clerical and administrative salaries, costs of maintaining the corporate office and costs associated with overall governance and being a publicly traded company. We generally evaluate the performance of, and allocate resources to, our divisions based upon gross profit (loss) and operating income (loss). Division assets are comprised of all assets attributable to each division. Corporate administrative costs and overhead are allocated to our four operating divisions for expenses that directly relate to the operations or relate to shared services as discussed above. Intersegment revenue is priced at the estimated fair value of work performed. Summarized financial information concerning our divisions as of and for the three and six months ended June 30, 2018, and 2017, is as follows (in thousands):
| Three Months Ended June 30, 2018
| Fabrication | Shipyard | Services | EPC | Corporate | Eliminations | Consolidated
Revenue | $ | 8,590 |  | $ | 23,620 |  | $ | 22,205 |  | $ | 882 |  | $ | — |  | $ | (1,283 | ) | $ | 54,014 |
Gross profit (loss) | (1,667 | ) | (2,776 | ) | 3,585 |  | 543 |  | (384 | ) | — |  | (699 | )
Operating income (loss) | (3,227 | ) | (3,374 | ) | 2,823 |  | 58 |  | (2,681 | ) | — |  | (6,401 | )
Total assets (1) | 101,498 |  | 88,305 |  | 35,197 |  | 888 |  | 30,801 |  | — |  | 256,689 |
Depreciation and amortization expense | 1,047 |  | 1,051 |  | 383 |  | — |  | 130 |  | — |  | 2,611 |
Capital expenditures | — |  | 653 |  | 98 |  | — |  | 69 |  | — |  | 820 |
| Three Months Ended June 30, 2017
| Fabrication | Shipyard | Services | EPC | Corporate | Eliminations | Consolidated
Revenue | $ | 13,990 |  | $ | 18,303 |  | $ | 15,396 |  | — |  | $ | — |  | $ | (1,821 | ) | $ | 45,868 |
Gross profit (loss) | 1,931 |  | (13,851 | ) | 390 |  | — |  | (90 | ) | — |  | (11,620 | )
Operating income (loss) | 1,098 |  | (14,834 | ) | (257 | ) | — |  | (2,267 | ) | — |  | (16,260 | )
Total assets (1) | 164,211 |  | 98,393 |  | 30,592 |  | — |  | 14,390 |  | — |  | 307,586 |
Depreciation and amortization expense | 1,152 |  | 995 |  | 422 |  | — |  | 207 |  | — |  | 2,776 |
Capital expenditures | 746 |  | 546 |  | 106 |  | — |  | 35 |  | — |  | 1,433 |
| Six Months Ended June 30, 2018
| Fabrication | Shipyard | Services | EPC | Corporate | Eliminations | Consolidated
Revenue | $ | 25,860 |  | $ | 42,185 |  | $ | 44,075 |  | $ | 955 |  | $ | — |  | $ | (1,771 | ) | $ | 111,304 |
Gross profit (loss) | (1,886 | ) | (3,799 | ) | 6,199 |  | 235 |  | (769 | ) | — |  | (20 | )
Operating income (loss) | (4,821 | ) | (5,192 | ) | 4,703 |  | (667 | ) | (5,204 | ) | — |  | (11,181 | )
Total assets (1) | 101,498 |  | 88,305 |  | 35,197 |  | 888 |  | 30,801 |  | — |  | 256,689 |
Depreciation and amortization expense | 2,196 |  | 2,120 |  | 776 |  | — |  | 268 |  | — |  | 5,360 |
Capital expenditures | — |  | 659 |  | 163 |  | — |  | 69 |  | — |  | 891 |
| Six Months Ended June 30, 2017
| Fabrication | Shipyard | Services | EPC | Corporate | Eliminations | Consolidated
Revenue | $ | 24,199 |  | $ | 36,724 |  | $ | 26,107 |  | $ | — |  | $ | — |  | $ | (3,170 | ) | $ | 83,860 |
Gross profit (loss) | (1,034 | ) | (15,556 | ) | 423 |  | — |  | (351 | ) | — |  | (16,518 | )
Operating loss | (2,688 | ) | (17,892 | ) | (890 | ) | — |  | (4,007 | ) | — |  | (25,477 | )
Total assets (1) | 164,211 |  | 98,393 |  | 30,592 |  | — |  | 14,390 |  | — |  | 307,586 |
Depreciation and amortization expense | 4,287 |  | 2,004 |  | 854 |  | — |  | 331 |  | — |  | 7,476 |
Capital expenditures | 848 |  | 818 |  | 106 |  | — |  | 52 |  | — |  | 1,824 |
_______________ 1) Intercompany balances have been excluded.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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