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OPERATING SEGMENTS | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
OPERATING SEGMENTS | 12. OPERATING SEGMENTS We currently operate and manage our business thorough two operating divisions (“Fabrication & Services” and “Shipyard”) and one non-operating division (“Corporate”), which represented 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 maintenance, repair, construction, 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; provides project management and commissioning services; and performs municipal and drainage projects, including pump stations, levee reinforcement, bulkheads and other public works. On December 1, 2021, we completed the DSS Acquisition, which expanded our F&S Division’s customer base and enhanced our services offerings to include scaffolding, coatings, industrial staffing and other specialty services. Our F&S Division fabrication activities are performed at our F&S Facility and our services activities are managed from our F&S Facilities and generally performed at customer onshore locations and offshore platforms. See Note 4 for further discussion of the DSS Acquisition. Shipyard Division – Our Shipyard Division previously fabricated newbuild marine vessels and provided marine repair and maintenance services. The activities were performed at our Shipyard Facility. However, on April 19, 2021, we completed the Shipyard Transaction, which included the Divested Shipyard Contracts and our Shipyard Facility. W e determined the assets, liabilities and operations associated with the Shipyard Transaction and certain previously closed facilities to be discontinued operations. 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 operating segment and are classified as continuing operations on our Balance Sheet and Statement of Operations. The Active Retained Shipyard Contracts are being completed at our F&S Facility and we intend to wind down our Shipyard Division operations by the third quarter 2022. 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 discussed in Note 1, we have made adjustments to our previously issued 2020 Financial Statements to correct prior period immaterial errors. In connection therewith, we have made adjustments to our previously reported segment results for 2020. In addition, 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 2020, and legal costs associated with our MPSV dispute that were previously reflected within our Corporate Division have been reclassified to our Shipyard Division for 2020. See Note 1 for further discussion of the error corrections, Note 3 for further discussion of the Shipyard Transaction and our discontinued operations, and Note 10 for further discussion of our MPSV dispute. A summary of the adjustments to correct the immaterial errors and reclassifications to our previously reported segment results for 2020, is as follows (in thousands):
|  | Year Ended December 31, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Total |
Gross profit (loss), as reported (1) |  | $ | 1,523 |  |  | $ | (19,274 | ) |  | $ | — |  |  | $ | (17,751 | )
Corrections |  |  | 107 |  |  |  | 135 |  |  |  | — |  |  |  | 242 |
Gross profit (loss), as adjusted prior to recast |  |  | 1,630 |  |  |  | (19,139 | ) |  |  | — |  |  |  | (17,509 | )
Recast for discontinued operations (2) |  |  | — |  |  |  | 9,642 |  |  |  | — |  |  |  | 9,642 |
Changes in expense allocations |  |  | (76 | ) |  |  | 284 |  |  |  | (208 | ) |  |  | — |
Gross profit (loss) from continuing operations, as adjusted |  | $ | 1,554 |  |  | $ | (9,213 | ) |  | $ | (208 | ) |  | $ | (7,867 | )
Operating income (loss), as reported (1) |  | $ | 5,893 |  |  | $ | (24,343 | ) |  | $ | (8,709 | ) |  | $ | (27,159 | )
Corrections |  |  | 111 |  |  |  | 140 |  |  |  | (302 | ) |  |  | (51 | )
Operating income (loss), as adjusted prior to recast |  |  | 6,004 |  |  |  | (24,203 | ) |  |  | (9,011 | ) |  |  | (27,210 | )
Recast for discontinued operations (2) |  |  | — |  |  |  | 13,307 |  |  |  | — |  |  |  | 13,307 |
Changes in expense allocations |  |  | (350 | ) |  |  | 834 |  |  |  | (484 | ) |  |  | — |
Reclassification of legal expenses |  |  | — |  |  |  | (1,039 | ) |  |  | 1,039 |  |  |  | — |
Operating income (loss) from continuing operations, as adjusted |  | $ | 5,654 |  |  | $ | (11,101 | ) |  | $ | (8,456 | ) |  | $ | (13,903 | )
| (1) | Represents amounts as reported in our previously issued 2020 Financial Statements which do not reflect discontinued operations presentation.
| (2) | Reflects adjustments to recast previously issued 2020 Financial Statement amounts on a discontinued operations basis.
Segment Results – We generally evaluate the performance of, and allocate 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 two-year period ended December 31, 2021, is as follows (in thousands):
|  | Year Ended December 31, 2021 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Total |
Revenue (eliminations) |  | $ | 81,083 |  |  | $ | 12,878 |  |  | $ | (509 | ) |  | $ | 93,452 |
Gross profit (loss) (1) |  |  | 6,189 |  |  |  | (4,242 | ) |  |  | (283 | ) |  |  | 1,664 |
Operating income (loss) (1) |  |  | 261 |  |  |  | (5,769 | ) |  |  | (7,976 | ) |  |  | (13,484 | )
Depreciation and amortization expense |  |  | 4,001 |  |  |  | — |  |  |  | 319 |  |  |  | 4,320 |
Capital expenditures |  |  | 1,141 |  |  |  | — |  |  |  | — |  |  |  | 1,141 |
Total assets (3) |  |  | 59,023 |  |  |  | 16,222 |  |  |  | 60,028 |  |  |  | 135,273 |
|  | Year Ended December 31, 2020 |
|  | F&S |  |  | Shipyard |  |  | Corporate |  |  | Total |
Revenue (eliminations) |  | $ | 99,485 |  |  | $ | 20,468 |  |  | $ | (2,224 | ) |  | $ | 117,729 |
Gross profit (loss) (2) |  |  | 1,554 |  |  |  | (9,213 | ) |  |  | (208 | ) |  |  | (7,867 | )
Operating income (loss) (2) |  |  | 5,654 |  |  |  | (11,101 | ) |  |  | (8,456 | ) |  |  | (13,903 | )
Depreciation and amortization expense |  |  | 4,928 |  |  |  | — |  |  |  | 302 |  |  |  | 5,230 |
Capital expenditures |  |  | 2,067 |  |  |  | — |  |  |  | 191 |  |  |  | 2,258 |
Total assets (3) |  |  | 54,174 |  |  |  | 17,499 |  |  |  | 59,780 |  |  |  | 131,453 |
| (1) | Gross profit (loss) and operating income (loss) for 2021 includes project improvements of $3.3 million for our F&S Division and project charges of $3.8 million for our Shipyard Division. Operating income (loss) also includes charges of $3.2 million and $0.6 million associated with damage caused by Hurricane Ida for our F&S Division and Shipyard Division, respectively, acquisition costs of $0.5 million associated with the DSS Acquisition for our F&S Division, and the under-recovery of overhead costs for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 4 for further discussion of the DSS Acquisition.
| (2) | Gross profit (loss) and operating income (loss) for 2020 includes project improvements of $2.7 million for our F&S Division and project charges of $8.3 million for our Shipyard Division. Operating income (loss) also includes impairment charges and losses on the sale of assets held for sale of $2.5 million for our F&S Division, charges of $0.8 million associated with damage caused by Hurricane Laura for our Shipyard Division, and a gain of $10.0 million associated with the settlement of a contract dispute for our F&S Division. See Note 2 for further discussion of our project and hurricane impacts and Note 5 for further discussion of our impairments.
| (3) | 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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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