Core Viewpoint - Gulf Island Fabrication, Inc. is set to report its financial results for the first quarter of 2025 on May 6, 2025, after market close, indicating a focus on transparency and communication with stakeholders [1]. Company Information - Gulf Island is a prominent fabricator of complex steel structures and modules, providing specialty services such as project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction, and cleaning and environmental services to the industrial and energy sectors [3]. - The company's clientele includes U.S. energy producers, refining, petrochemical, LNG, industrial and power operators, and EPC companies, highlighting its significant role in the energy sector [3]. - Gulf Island is headquartered in The Woodlands, Texas, with primary operating facilities located in Houma, Louisiana, indicating its geographical focus and operational capabilities [3]. Conference Call Details - A conference call will be held on May 6, 2025, at 4:00 p.m. Central Time to discuss the financial results, demonstrating the company's commitment to engaging with investors and analysts [2]. - The call will be accessible via webcast on the company's website, and participants can also join by phone, ensuring broad accessibility for stakeholders [2].

Financial Data and Key Metrics Changes - For the full year 2024, the company generated revenue of $159 million and adjusted EBITDA of nearly $13 million, converting this to approximately $13 million of free cash flow [9][17] - Consolidated revenue for Q4 2024 was $37.4 million, flat from Q3 2024 but down from $44.6 million in Q4 2023, primarily due to lower services revenue [23] - Adjusted consolidated EBITDA for Q4 2024 was $3.7 million, up from $2.9 million in Q3 2024 but down from $6.6 million in Q4 2023 [24] Business Line Data and Key Metrics Changes - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23% compared to Q4 2023, driven by lower new project awards and delayed project opportunities [25] - Fabrication division revenue for Q4 2024 was $19.6 million, a decrease of $1 million or 4.9% compared to Q4 2023, but showed year-over-year growth when excluding prior year benefits from customer change orders [26] - Corporate division EBITDA was a loss of $2.3 million for Q4 2024, compared to a loss of $2 million in the prior year period, due to higher costs associated with diversification initiatives [28] Market Data and Key Metrics Changes - The company is seeing increased bidding activity in markets outside of oil and gas, such as infrastructure, government, and high-tech manufacturing [9][10] - The lifting of the ban on LNG projects has led to a resumption of activity in the Gulf Coast region, with anticipated construction activity increasing [11][12] - The company expects lower capital spending levels from services customers in the Gulf of America during 2025 due to lower demand for crude [14] Company Strategy and Development Direction - The company is focused on expanding its small-scale fabrication business and diversifying its services, particularly in cleaning and environmental services [9][14] - Capital allocation priorities for 2025 will include investing in organic growth, strategic acquisitions, and potential capital returns to shareholders [19][20] - The company aims to build on its foundation while waiting for the right large project opportunities, maintaining a disciplined approach [13][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for large-scale fabrication projects, particularly in LNG and nuclear sectors, despite the uncertainty in timing [11][32] - The company anticipates lower full-year 2025 consolidated EBITDA compared to 2024 due to expected lower capital spending by services customers [33] - Management highlighted the resilience of the small-scale fabrication and services business despite market headwinds [17] Other Important Information - The company ended Q4 2024 with approximately $67 million in cash and short-term investments, providing significant liquidity for growth opportunities [28][31] - The company has remaining authorization to repurchase approximately $3.7 million of its common stock under its share repurchase program [29] Q&A Session Summary Question: Opportunities in the fabrication segment - Management noted significant opportunities in LNG projects in Texas and Louisiana, with expectations for momentum in the back half of the year [39][40] - There has been a pickup in activity in nuclear projects, with RFQs being fielded from various customers [43][44] Question: Acquisition opportunities - Management indicated that while there is cash available for acquisitions, the challenge lies in the bid-ask spread between buyers and sellers [46]

Financial Data and Key Metrics Changes - For the full year 2024, the company generated revenue of $159 million and adjusted EBITDA of nearly $13 million, converting this to approximately $13 million of free cash flow [9][17] - Consolidated revenue for Q4 2024 was $37.4 million, flat from Q3 2024 but down from $44.6 million in Q4 2023, primarily due to lower services revenue [23] - Adjusted consolidated EBITDA for Q4 2024 was $3.7 million, up from $2.9 million in Q3 2024 but down from $6.6 million in Q4 2023 [24] Business Line Data and Key Metrics Changes - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23% compared to Q4 2023, primarily due to lower new project awards and delayed Spark Safety project opportunities [25] - Fabrication division revenue for Q4 2024 was $19.6 million, a decrease of $1 million or 4.9% compared to Q4 2023, but showed year-over-year growth when excluding prior year benefits from customer change orders [26] - Services EBITDA for Q4 2024 was $1.4 million, down from $3.2 million in the prior year period, reflecting lower revenue and a less favorable project margin mix [25] Market Data and Key Metrics Changes - The company is seeing increased bidding activity in markets outside of oil and gas, such as infrastructure, government, and high-tech manufacturing, particularly following the success of a NASA project [9][10] - The lifting of the ban on LNG projects has led to a resumption of activity in the Gulf Coast region, with anticipated construction activity expected to increase over the next two to three years [11][12] Company Strategy and Development Direction - The company is focused on expanding its small-scale fabrication business and diversifying its services, while also pursuing strategic acquisitions to enhance growth [18][20] - Capital allocation priorities for 2025 will include investing in organic growth, hiring key personnel, and pursuing acquisition opportunities [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pickup in bidding activity for large-scale fabrication, although they anticipate that many large projects will not be awarded until the latter half of 2025 [13][32] - The company expects lower capital spending levels from services customers in the Gulf of America during 2025, which may impact overall EBITDA [14][33] Other Important Information - The company ended Q4 2024 with a cash and short-term investments balance of approximately $67 million, consistent with the previous quarter [28] - For the full year 2024, the company generated free cash flow of $12.9 million, with anticipated lower capital needs for 2025 [29][30] Q&A Session Summary Question: Opportunities in the fabrication segment - Management noted significant opportunities in LNG projects in Texas and Louisiana, with expectations for momentum in the latter half of the year [39][40] - There has been a pickup in activity in nuclear projects, although these will take time to materialize [43][44] Question: Acquisition opportunities - Management indicated that while there is cash available for acquisitions, the current bid-ask spread has made it challenging to find suitable opportunities [46]

Revenue Dependence and Customer Concentration - The company’s revenue and profitability are heavily dependent on the offshore oil and gas industry, which is historically cyclical[70]. - In 2024, two customers accounted for 51% of the company’s consolidated revenue, down from 53% in 2023[75]. - The company relies on a small number of customers for a significant portion of its revenue, which poses risks if any major customer reduces spending[75]. - The company remains dependent on the oil and gas industry, which is historically cyclical and subject to volatility in prices, impacting revenue and profitability[112]. Market and Competitive Risks - Competitive pricing in the industry has negatively affected the company’s ability to recover project and overhead costs[76]. - The company faces increased competition from foreign fabricators with lower operating costs and government subsidies[74]. - The competitive labor market has made it difficult to attract and retain skilled personnel, which could affect project execution and profitability[99]. - Increased demand for construction labor has resulted in higher costs, potentially impacting the company's financial condition[100]. Operational Challenges - The company has experienced significant volatility in oil and gas prices, impacting capital expenditures and drilling activities from traditional customers[70]. - The company’s short-term profitability may be impacted by delays in project awards and execution, leading to potential idle workforce costs[78]. - The company’s contracts are often fixed-price or unit-rate, exposing it to risks of cost overruns and variations from estimated performance[79]. - The company’s operations are subject to risks from supply chain disruptions, labor costs, and project execution challenges[72]. - Supplier and subcontractor delays have negatively impacted project results, highlighting the reliance on third parties for raw materials and services[89]. - The company may experience significant delays in deliveries of key raw materials due to inflation and availability issues, which could impact future projects[91]. - The backlog is subject to changes due to delays, suspensions, or terminations, which could significantly impact expected revenue and timing[87]. Financial and Capital Management - The company has not made significant investments in new equipment or refurbishment, leading to potentially higher future repair or replacement costs[86]. - Future capital needs may arise for working capital, capital expenditures, and strategic opportunities, which could impair the company's ability to operate if additional capital cannot be raised[111]. - The company may face challenges in enhancing shareholder value through the share repurchase program due to potential stock price fluctuations and market liquidity issues[109]. - The Board has authorized a share repurchase program of up to $5.0 million, with $3.7 million remaining for repurchases as of now, effective through December 31, 2025[108]. Regulatory and Environmental Risks - Legal and regulatory changes, including tariffs and trade restrictions, may increase costs and disrupt supply chains for the company's fabrication projects[122]. - Compliance with regulatory and environmental laws is becoming increasingly complex and expensive, with potential strict liability for environmental damages[125]. - Regulatory responses to climate change, such as carbon taxes and cap-and-trade regimes, may adversely affect demand for oil and natural gas, impacting the company's services[126]. - Offshore construction and drilling may face restrictions from environmental groups and new regulations, potentially affecting business prospects[127]. - Climate change poses potential physical risks, including increased costs and operational disruptions due to severe weather events, although future financial risks cannot be reliably estimated[124]. Safety and Management Concerns - The company’s safety assurance program is critical to maintaining compliance and preventing injuries, which could otherwise lead to financial losses and reputational harm[104]. - The company’s ability to manage new business lines effectively is uncertain, and failure to do so could reduce shareholder value[106]. - Activist shareholders hold over one-quarter of the company's stock, which could create uncertainty about strategic direction and divert management's attention[128]. Infrastructure and Operational Dependencies - The company’s facilities are vulnerable to physical damage from hurricanes, as evidenced by past experiences with Hurricane Francine[82]. - The company relies on the Houma Navigation Canal for access to open waters, and potential funding issues for dredging could hinder operations[129].

Financial Performance - Consolidated revenue for Q4 2024 was $37.4 million, a decrease of 16.1% from $44.6 million in Q4 2023; adjusted consolidated revenue was $37.3 million, down from $44.0 million[6]. - Consolidated net income for Q4 2024 was $4.3 million, compared to $7.1 million in Q4 2023; adjusted consolidated EBITDA was $3.7 million, down from $6.6 million[7]. - Full year 2024 consolidated revenue was $159.2 million, an increase of 5.4% from $151.1 million in 2023; adjusted consolidated revenue was $158.1 million, down from $181.5 million[8]. - Full year 2024 consolidated net income was $14.7 million, compared to a net loss of $24.4 million in 2023; adjusted consolidated EBITDA was $12.8 million, down from $17.0 million[9]. - Revenue for the three months ended December 31, 2024, was $37,416 thousand, a decrease of 16% from $44,550 thousand in the same period last year[30]. - Net income for the three months ended December 31, 2024, was $4,295 thousand, compared to a net loss of $24,402 thousand for the same period last year, marking a turnaround in profitability[30]. - Basic income per share for the three months ended December 31, 2024, was $0.26, compared to a loss of $1.51 per share in the same period last year[30]. - Adjusted revenue for the twelve months ended December 31, 2024, was $158,138 thousand, down from $181,484 thousand in the previous year, representing a decline of 12.8%[31]. - Adjusted gross profit for the twelve months ended December 31, 2024, was $20,663 thousand, compared to $23,961 thousand for the previous year, reflecting a decrease of 13.3%[32]. - EBITDA for the three months ended December 31, 2024, was $4,840 thousand, compared to a loss of $20,417 thousand for the same period last year, showing a recovery in operational performance[34]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $12,759 thousand, down from $16,969 thousand in the previous year, indicating a decline of 24.5%[34]. Division Performance - Services division revenue for Q4 2024 was $18.8 million, a decrease of 23.2% from Q4 2023, primarily due to lower new project awards[11]. - Fabrication division revenue for Q4 2024 was $18.7 million, a decrease of 4.9% from Q4 2023, attributed to the prior year including favorable customer change orders[14]. - Services Division revenue for the three months ended December 31, 2024, was $18,824, a decrease of 7.8% from $20,245 in the previous quarter[37]. - Fabrication Division new project awards increased to $22,649 for the three months ended December 31, 2024, up 33.0% from $16,902 in the previous quarter[37]. - EBITDA for the Fabrication Division for the twelve months ended December 31, 2024, was $14,464, an increase of 4.7% compared to $13,807 in the previous year[38]. - Shipyard Division operating income for the three months ended December 31, 2024, was $1,132, compared to a loss of $106 in the previous quarter[37]. Cash and Investments - Cash and short-term investments balance at December 31, 2024, was $67.3 million, providing capacity for investments in growth initiatives and potential shareholder returns[18]. - Cash and cash equivalents decreased to $27,284 as of December 31, 2024, from $38,176 as of December 31, 2023, a decline of 28.5%[44]. - Total cash provided by operating activities for the twelve months ended December 31, 2024, was $18,248,000, up from $7,197,000 in the previous year[45]. - The company reported a net cash increase of $5,678,000 for the three months ended December 31, 2024, compared to an increase of $11,819,000 in the previous quarter[45]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $28,481,000, up from $22,803,000 at the end of the previous quarter[45]. Shareholder Actions - The company repurchased 59,170 shares for $0.3 million at an average price of $5.49 per share during Q4 2024[19]. Future Outlook - The company expects full year 2025 consolidated EBITDA to be less than the adjusted consolidated EBITDA of 2024 due to lower overall capital spending levels indicated by customers[4]. - The wind down of the Shipyard division's operations is expected to be completed in March 2025[16]. Expenses and Liabilities - The company reported a significant reduction in general and administrative expenses, which were $3,698 thousand for the three months ended December 31, 2024, compared to $16,278 thousand for the same period last year[30]. - General and administrative expenses for the Corporate Division for the twelve months ended December 31, 2024, were $8,754, an increase from $8,286 in the previous year[38]. - The Company reported a total operating loss of $2,399 for the Corporate Division for the three months ended December 31, 2024, compared to a loss of $1,780 in the previous quarter[38]. - Total liabilities decreased to $40,114 as of December 31, 2024, from $49,457 as of December 31, 2023, a reduction of 18.5%[44].

Core Insights - Gulf Island Fabrication, Inc. reported its financial results for the fourth quarter and full year 2024, highlighting a focus on enhancing business durability and predictability through small-scale fabrication and diversification beyond oil and gas [4][5]. Financial Performance - Fourth quarter consolidated revenue was $37.4 million, down from $44.6 million in the prior year, while adjusted consolidated revenue was $37.3 million compared to $44.0 million [7][8]. - Full year consolidated revenue increased to $159.2 million from $151.1 million, but adjusted consolidated revenue decreased to $158.1 million from $181.5 million [10][11]. - Consolidated net income for the fourth quarter was $4.3 million, down from $7.1 million, and for the full year, net income was $14.7 million compared to a net loss of $24.4 million in the previous year [9][11]. Division Results - Services Division revenue for Q4 2024 was $18.8 million, a decrease of 23.2% from the previous year, primarily due to lower new project awards and delayed project opportunities [13]. - Fabrication Division revenue for Q4 2024 was $18.7 million, down 4.9% from the prior year, attributed to the absence of favorable customer change orders seen in the previous period [15]. - Shipyard Division revenue for Q4 2024 was $0.1 million, a decrease of $0.4 million, with operations winding down and expected completion by March 2025 [17]. Management Commentary - The CEO emphasized the company's commitment to growth initiatives and maintaining financial flexibility, with a cash and short-term investments balance of over $67 million at year-end 2024 [4][5]. - Looking ahead to 2025, the company anticipates lower overall capital spending levels from customers in the Gulf of America, expecting full year 2025 consolidated EBITDA to be less than the adjusted consolidated EBITDA of 2024 [5]. Balance Sheet and Liquidity - As of December 31, 2024, the company had total debt of $19.0 million with a cash and short-term investments balance of $67.3 million, including $1.2 million of restricted cash [19][38]. - The estimated fair value of the debt is $12.3 million based on market interest rates [19]. Share Repurchase Program - During 2024, the company repurchased 230,938 shares of common stock for $1.2 million under its share repurchase program, averaging $5.21 per share [20].

Company Overview - Gulf Island Fabrication, Inc. is a leading steel fabricator and service provider to the industrial and energy sectors [3] - The company specializes in complex steel structures and modules, offering services such as project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, welding enclosures, civil construction, and cleaning and environmental services [3] - Gulf Island's customer base includes U.S. and international energy producers, refining, petrochemical, LNG, industrial and power operators, and EPC companies [3] - The company is headquartered in The Woodlands, Texas, with primary operating facilities located in Houma, Louisiana [3] Financial Reporting - Gulf Island will report its financial results for the fourth quarter and full year 2024 after the market close on March 4, 2025 [1] - A conference call to discuss the financial results will be held on the same day at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) [2] - The conference call will be accessible via webcast on Gulf Island's website and by phone [2]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $37.6 million, compared to $5 million for the same period last year, with adjusted consolidated revenue essentially flat at $37.2 million [27] - Adjusted consolidated EBITDA increased to $2.9 million from $2.6 million year-over-year, reflecting an 11% year-over-year growth in adjusted EBITDA [8][27] Business Line Data and Key Metrics Changes - Services division revenue decreased by 12% to $20.2 million due to project delays and hurricane impacts, with EBITDA down to $1.9 million from $3.1 million [28][29] - Fabrication division revenue increased by 14% to $17.1 million, with adjusted EBITDA nearly doubling to $2.7 million, driven by higher small-scale fabrication activity [15][30] Market Data and Key Metrics Changes - The overall spending environment in the offshore services market remains strong, but project delays have impacted revenue [11] - The demand for small-scale fabrication remains active, with expectations for continued positive momentum into 2025 [15][18] Company Strategy and Development Direction - The company is focusing on expanding its exposure to markets outside oil and gas, such as infrastructure, clean energy, and high-tech manufacturing [16] - Investment in the new cleaning and environmental services business line is aimed at supporting decommissioning activities in the Gulf of Mexico, which is seen as a significant growth opportunity [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the market drivers for small-scale fabrication and services, despite recent headwinds [22] - The company anticipates that the favorable structural drivers for the large fabrication market remain in place, with hopes for improved bidding conditions following political developments [17][18] Other Important Information - The company ended Q3 with approximately $67 million in cash and investments, highlighting strong free cash flow conversion [31] - A share repurchase program was extended to December 2025, with $4 million remaining for stock buybacks [33] Q&A Session Summary Question: Inquiry about Fabrication segment and non-oil and gas projects - Management noted strong bidding activity in marine and civil infrastructure upgrades, with confidence in future project awards due to successful execution on previous contracts like NASA [37][39] Question: Insights on decommissioning market in the Gulf of Mexico - Management highlighted the long-term nature of decommissioning programs and the company's positioning with its cleaning and environmental services, aiming to capture a share of the estimated $4 to $600 billion market over the next 8 to 10 years [40][41]

Financial Performance - Revenue for Q3 2024 was $37.6 million, significantly up from $5.0 million in Q3 2023, primarily due to a $33.2 million increase in the Shipyard Division[140]. - Revenue for 2024 was $20.2 million, a decrease of 11.9% from $23.0 million in 2023, attributed to lower offshore services work and delays caused by hurricanes[148]. - Consolidated revenue for the nine months ended September 30, 2024, was $121.8 million, up from $106.5 million in 2023, reflecting a growth of $15.3 million[162]. - Revenue for 2024 was $121.8 million, an increase of 14.3% compared to $106.5 million in 2023[164]. - Revenue for the Fabrication Division decreased by 23.6% to $53.0 million in 2024 from $69.4 million in 2023, primarily due to the cancellation of the offshore jackets project[174]. - Revenue for the Shipyard Division was $0.9 million in 2024, a significant recovery from negative $31.0 million in 2023 due to the resolution of MPSV Litigation[180]. Profitability - Gross profit for Q3 2024 was $4.7 million, representing a gross profit margin of 12.4%, compared to a gross loss of $29.9 million in Q3 2023[141]. - Gross profit for 2024 was $14.9 million, representing 12.3% of revenue, compared to a gross loss of $20.4 million in 2023[165]. - Gross profit for the Fabrication Division rose to $2.5 million (14.9% of revenue) in 2024, compared to $1.2 million (8.1% of revenue) in 2023, due to improved utilization of facilities[152]. - Gross profit for the Fabrication Division increased to $6.0 million (11.3% of revenue) in 2024 from $5.2 million (7.6% of revenue) in 2023[175]. Operational Challenges - The company experienced construction challenges and cost increases on Ferry Projects during 2023 and 2022, affecting overall project timelines[120]. - The company anticipates that ongoing economic factors, including inflation and supply chain disruptions, may continue to impact operations and project costs[114]. - The company is enhancing project execution through improved bidding discipline and management training to mitigate risks associated with long-term fixed-price contracts[126]. - The company anticipates that ongoing oil and gas price volatility and macroeconomic conditions will impact future project opportunities and revenue recognition timing[131]. Strategic Initiatives - The company aims to reduce reliance on the offshore oil and gas construction sector and pursue new growth end markets, including green energy[123]. - The company is focusing on diversifying its offshore services customer base and expanding its service offerings, including new cleaning and environmental services introduced in Q2 2024[127]. - The company has outlined a strategy to mitigate COVID-19 impacts, improve liquidity, and enhance project execution[122]. - The company is exploring organic and inorganic growth opportunities, including potential mergers and acquisitions, to enhance its market position[131]. Asset Management - The company sold certain excess real property from its Houma Facilities, resulting in a gain for the Fabrication Division for the nine months ended September 30, 2024[118]. - The company has initiated efforts to improve resource utilization through the consolidation of fabrication activities and the sale of excess property[125]. - Available liquidity as of September 30, 2024, totaled $66.8 million, consisting of $21.3 million in cash and cash equivalents and $44.0 million in short-term investments[187]. - Working capital at September 30, 2024, was $80.2 million, including $66.8 million in cash and equivalents and $1.1 million in current debt[189]. New Projects and Awards - New project awards for Q3 2024 totaled $36.9 million, a decrease of 3.9% from $38.4 million in Q3 2023[139]. - New project awards for 2024 were $20.2 million, down from $22.8 million in 2023, primarily related to offshore services work[147]. - New project awards for the nine months ended September 30, 2024, totaled $120.5 million, an increase from $113.3 million in 2023[163]. - New project awards for the Services Division were $68.1 million in 2024, slightly down from $68.6 million in 2023[171]. Income and Expenses - Operating income for the nine months ended September 30, 2024, was $8.7 million, a significant improvement from an operating loss of $32.6 million in 2023[162]. - Net income for the nine months ended September 30, 2024, was $10.4 million, compared to a net loss of $31.5 million in 2023, marking a turnaround of $41.9 million[162]. - General and administrative expense decreased by 26.8% from $4.1 million in 2023 to $3.0 million in 2024, primarily due to the elimination of legal fees related to MPSV Litigation[142]. - General and administrative expenses decreased by 23.8% to $9.8 million in 2024 from $12.9 million in 2023[166]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $15.9 million, a significant increase from $(0.2) million in 2023[191]. - Cash used in investing activities for the nine months ended September 30, 2024, was $30.7 million, compared to $6.6 million in 2023, primarily due to net purchases of short-term investments[194]. - Cash used in financing activities for the nine months ended September 30, 2024, was $2.1 million, an increase from $1.7 million in 2023, mainly due to stock repurchases and tax payments[195]. - The company anticipates capital expenditures of approximately $0.5 to $1.0 million for the remainder of 2024, with $4.5 million allocated for upgrades to facilities and equipment[199]. - The company believes its cash, cash equivalents, and short-term investments will be sufficient to fund operating expenses and meet capital requirements for the remainder of 2024[200]. Market Conditions - The company reported significant volatility in oil and gas prices, with oil reaching an eight-year high and gas reaching a fourteen-year high in 2022, impacting end markets positively[113]. - The company has been awarded multiple contracts for subsea structures, with expectations for strong activity in subsea fabrication through 2025[128].

Revenue Performance - Consolidated revenue for Q3 2024 was $37.6 million, a significant increase from $5.0 million in Q3 2023[2] - Revenue for the three months ended September 30, 2024, was $37,640 thousand, a decrease of 9.9% from $41,262 thousand in the previous quarter and an increase from $5,023 thousand in the same period last year[26] - Services Division revenue for the three months ended September 30, 2024, was $20,245, a decrease of 11% from $22,976 in the same period last year[31] - Fabrication Division revenue for the three months ended September 30, 2024, was $17,110, down from $18,727 in the previous quarter, representing a decline of 8.6%[31] - The Shipyard division reported revenue of $0.5 million, recovering from a negative revenue of $32.7 million in Q3 2023[14] Profitability Metrics - Adjusted consolidated EBITDA for Q3 2024 was $2.9 million, compared to $2.6 million in the prior year period[3] - EBITDA for the three months ended September 30, 2024, was $2,880 thousand, an increase from $2,523 thousand in the previous quarter and a loss of $32,245 thousand in the same period last year[29] - Adjusted EBITDA for the three months ended September 30, 2024, was $2,858 thousand, compared to $2,514 thousand in the previous quarter and $2,581 thousand in the same period last year[29] - Net income for the three months ended September 30, 2024, was $2,317 thousand, compared to $1,889 thousand in the previous quarter and a loss of $33,235 thousand in the same period last year[26] - Basic income per share for the three months ended September 30, 2024, was $0.14, compared to $0.12 in the previous quarter and a loss of $2.04 in the same period last year[26] Cash and Investments - Cash and short-term investments balance was $66.8 million at September 30, 2024[16] - Cash and cash equivalents decreased to $21,328 as of September 30, 2024, from $38,176 at the end of 2023[33] - The company reported a net cash increase of $11,819 thousand for the period, contrasting with a decrease of $22,960 thousand in the previous quarter[36] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $22,803 thousand, up from $10,984 thousand at the beginning of the period[36] Project Awards and Future Outlook - New project awards for the Services division were $20.2 million, an 11.3% year-over-year decrease[9] - New project awards for the three months ended September 30, 2024, were $36,902 thousand, compared to $39,810 thousand for the previous quarter and $38,417 thousand for the same period last year[26] - New project awards in the Fabrication Division for the nine months ended September 30, 2024, totaled $52,784, compared to $46,733 in the same period last year, reflecting a growth of 12.3%[31] - Full-year 2024 adjusted consolidated EBITDA is expected to be at the lower end of the guidance range of $11 million to $13 million[18] - Adjusted EBITDA for the twelve months ending December 31, 2024, is projected to be between $11,000 thousand and $13,000 thousand, reflecting a positive outlook for operational performance[37] Financial Position - Total current assets as of September 30, 2024, were $102,483, slightly up from $101,627 at the end of 2023[33] - Total liabilities decreased to $41,969 as of September 30, 2024, from $49,457 at the end of 2023[32] - Total shareholders' equity increased to $88,799 thousand as of September 30, 2024, up from $78,971 thousand at December 31, 2023, representing a growth of 12.3%[34] - Total liabilities and shareholders' equity amounted to $130,768 thousand as of September 30, 2024, compared to $128,428 thousand at December 31, 2023, indicating a slight increase of 1.8%[34] - The company’s accumulated deficit decreased to $(30,927) thousand as of September 30, 2024, down from $(41,373) thousand at December 31, 2023, indicating improved financial health[34] Operational Challenges - The company cautions that various factors, including supply chain disruptions and economic slowdowns, could materially affect future performance and results[25] - Capital expenditures for the three months ended September 30, 2024, were $1,314 thousand, up from $645 thousand in the same period last year, representing a 103% increase[36] - The Corporate Division reported an operating loss of $1,780 for the three months ended September 30, 2024, compared to a loss of $1,999 in the same period last year[32]