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OPERATING SEGMENTS | 6 Months Ended
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Jun. 30, 2021
Segment Reporting [Abstract] |
OPERATING SEGMENTS |
8. | 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 – Prior to the Shipyard Transaction, our Shipyard Division fabricated newbuild marine vessels and provided marine repair and maintenance services. These activities were performed at our Shipyard Facility. As discussed in Note 3, on April 19, 2021, we completed the Shipyard Transaction, which resulted in the sale of our Shipyard Facility and the Divested Shipyard Contracts. We determined the assets, liabilities and operations associated with the Shipyard Transaction and certain previously closed facilities to be discontinued operations in the second quarter 2021. The assets, liabilities and operating results attributable to the Retained Shipyard Contracts and remaining assets and liabilities of our Shipyard Division operations that were excluded from the Shipyard Transaction, and are not associated with the previously closed facilities, represent our Shipyard Segment and are classified as continuing operations on our Balance Sheet and Statement of Operations. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations. 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, certain insurance 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. Other – As a result of the Shipyard Transaction and classification of certain Shipyard Division operations as discontinued operations, certain allocations that were previously reflected within our Shipyard Division have been reclassified to our Corporate Division and Fabrication & Services Division for the three and six months ended June 30, 2020. Further, legal costs associated with our MPSV dispute that were previously reflected within our Corporate Division have been reclassified to our Shipyard Division for the three and six months ended June 30, 2020. See Note 3 for further discussion of the Shipyard Transaction and our discontinued operations and Note 6 for further discussion of our MPSV dispute. A summary of the reclassifications to our previously reported segment results for the three and six months ended June 30, 2020, is as follows (in thousands):
|  | Three Months Ended June 30, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Gross loss, as previously reported |  | $ | (472 | ) |  | $ | (1,231 | ) |  | $ | — |  |  | $ | (1,703 | )
Discontinued operations(1) |  |  | — |  |  |  | 975 |  |  |  | — |  |  |  | 975 |
Changes in expense allocations |  |  | (20 | ) |  |  | 73 |  |  |  | (53 | ) |  |  | — |
Gross loss from continuing operations |  | $ | (492 | ) |  | $ | (183 | ) |  | $ | (53 | ) |  | $ | (728 | )
Operating loss, as previously reported |  | $ | (1,394 | ) |  | $ | (1,724 | ) |  | $ | (2,308 | ) |  | $ | (5,426 | )
Discontinued operations(1) |  |  | — |  |  |  | 1,327 |  |  |  | — |  |  |  | 1,327 |
Changes in expense allocations |  |  | (90 | ) |  |  | 214 |  |  |  | (124 | ) |  |  | — |
Reclassification of legal expenses |  |  | — |  |  |  | (239 | ) |  |  | 239 |  |  |  | — |
Operating loss from continuing operations |  | $ | (1,484 | ) |  | $ | (422 | ) |  | $ | (2,193 | ) |  | $ | (4,099 | )
|  | Six Months Ended June 30, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Gross profit (loss), as previously reported |  | $ | 498 |  |  | $ | (2,455 | ) |  | $ | — |  |  | $ | (1,957 | )
Discontinued operations(1) |  |  | — |  |  |  | 761 |  |  |  | — |  |  |  | 761 |
Changes in expense allocations |  |  | (52 | ) |  |  | 170 |  |  |  | (118 | ) |  |  | — |
Gross profit (loss) from continuing operations |  | $ | 446 |  |  | $ | (1,524 | ) |  | $ | (118 | ) |  | $ | (1,196 | )
Operating income (loss), as previously reported |  | $ | 8,771 |  |  | $ | (3,623 | ) |  | $ | (4,638 | ) |  | $ | 510 |
Discontinued operations(1) |  |  | — |  |  |  | 1,646 |  |  |  | — |  |  |  | 1,646 |
Changes in expense allocations |  |  | (192 | ) |  |  | 452 |  |  |  | (260 | ) |  |  | — |
Reclassification of legal expenses |  |  | — |  |  |  | (564 | ) |  |  | 564 |  |  |  | — |
Operating income (loss) from continuing operations |  | $ | 8,579 |  |  | $ | (2,089 | ) |  | $ | (4,334 | ) |  | $ | 2,156 |
__________________
| (1) | See Note 3 for as summary of the operating results constituting the loss from discontinued operations for the three and six months ended June 30, 2021 and 2020.
Segment Results – 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 and six months ended June 30, 2021 and 2020, are as follows (in thousands):
|  | Three Months Ended June 30, 2021 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Revenue |  | $ | 21,227 |  |  | $ | 3,129 |  |  | $ | (88 | ) |  | $ | 24,268 |
Gross profit (loss) |  |  | 2,241 |  |  |  | (1,059 | ) |  |  | (78 | ) |  |  | 1,104 |
Operating income (loss) |  |  | 1,656 |  |  |  | (1,119 | ) |  |  | (2,146 | ) |  |  | (1,609 | )
Depreciation and amortization expense |  |  | 1,001 |  |  |  | — |  |  |  | 81 |  |  |  | 1,082 |
Capital expenditures |  |  | 226 |  |  |  | 193 |  |  |  | — |  |  |  | 419 |
Total assets(1) |  |  | 47,199 |  |  |  | 17,524 |  |  |  | 78,954 |  |  |  | 143,677 |
|  | Six Months Ended June 30, 2021 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Revenue |  | $ | 40,287 |  |  | $ | 8,259 |  |  | $ | (493 | ) |  | $ | 48,053 |
Gross profit (loss) |  |  | 3,228 |  |  |  | (2,037 | ) |  |  | (166 | ) |  |  | 1,025 |
Operating income (loss) |  |  | 2,517 |  |  |  | (2,370 | ) |  |  | (4,093 | ) |  |  | (3,946 | )
Depreciation and amortization expense |  |  | 1,989 |  |  |  | — |  |  |  | 160 |  |  |  | 2,149 |
Capital expenditures |  |  | 386 |  |  |  | 193 |  |  |  | — |  |  |  | 579 |
Total assets(1) |  |  | 47,199 |  |  |  | 17,524 |  |  |  | 78,954 |  |  |  | 143,677 |
|  | Three Months Ended June 30, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Revenue |  | $ | 26,606 |  |  | $ | 5,902 |  |  | $ | (520 | ) |  | $ | 31,988 |
Gross loss |  |  | (492 | ) |  |  | (183 | ) |  |  | (53 | ) |  |  | (728 | )
Operating loss |  |  | (1,484 | ) |  |  | (422 | ) |  |  | (2,193 | ) |  |  | (4,099 | )
Depreciation and amortization expense |  |  | 1,155 |  |  |  | — |  |  |  | 77 |  |  |  | 1,232 |
Capital expenditures |  |  | 1,143 |  |  |  | — |  |  |  | 179 |  |  |  | 1,322 |
Total assets(1) |  |  | 71,509 |  |  |  | 16,632 |  |  |  | 72,670 |  |  |  | 160,811 |
|  | Six Months Ended June 30, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Consolidated |
Revenue |  | $ | 60,049 |  |  | $ | 10,585 |  |  | $ | (967 | ) |  | $ | 69,667 |
Gross profit (loss) |  |  | 446 |  |  |  | (1,524 | ) |  |  | (118 | ) |  |  | (1,196 | )
Operating income (loss) |  |  | 8,579 |  |  |  | (2,089 | ) |  |  | (4,334 | ) |  |  | 2,156 |
Depreciation and amortization expense |  |  | 2,480 |  |  |  | — |  |  |  | 152 |  |  |  | 2,632 |
Capital expenditures |  |  | 1,824 |  |  |  | — |  |  |  | 179 |  |  |  | 2,003 |
Total assets(1) |  |  | 71,509 |  |  |  | 16,632 |  |  |  | 72,670 |  |  |  | 160,811 |
__________________
| (1) | Cash and short-term investments are reported within our Corporate Division.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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