Gulf Island Fabrication, a leading steel fabricator and service provider to the industrial and energy sectors, announced results for the fourth quarter and full-year 2021.
Fourth Quarter 2021
Firstly, the company reported a revenue of $25.8 million, 13.4% y/y. It also had a net loss from continuing operations of $6.2 million; including Hurricane Ida and acquisition costs of $3.9 million.
Secondly, the operating loss for the Fabrication & Services Division was $2.8 million, including Hurricane Ida and acquisition costs of $3.7 million.
“We had another quarter of solid project performance by our Fabrication & Services Division, while also continuing to successfully execute on our strategic initiatives during the fourth quarter.”
Richard Heo, Gulf Island’s President and CEO.
Thridly, there was a non-GAAP EBITDA, loss for Fabrication & Services Division of $1.8 million, including Hurricane Ida and acquisition costs of $3.7 million
Finally, Gulf Island had a cash balance of $54.6 million at December 31, 2021; and completed the acquisition to expand Services business in December 2021.
Full year summary
Fistly, the company announced a revenue of $93.5 million, (20.6%) y/y. The net loss from Continuing Operations was of $4.8 million, including Hurricane Ida and acquisition costs of $4.3 million
Secondly, the operating income for Fabrication & Services Division of $0.3 million, including Hurricane Ida and acquisition costs of $3.7 million
The non-GAAP EBITDA for Fabrication & Services Division was of $4.3 million, including Hurricane Ida and acquisition costs of $3.7 million
Also, the company completed the Shipyard Transaction in April 2021. Besides, the consolidated revenue for the fourth quarter 2021 was $25.8 million; compared to $22.8 million for the fourth quarter 2020.
In addition, the consolidated net loss from continuing operations for the fourth quarter 2021 was $6.2 million; compared to a loss of $11.6 million for the fourth quarter 2020.
And the EBITDA from continuing operations was a loss of $5.1 million for the fourth quarter 2021; versus a loss of $10.3 million for the prior year period.
The consolidated net loss and EBITDA from continuing operations for the fourth quarter 2021 included charges of $3.4 million; associated with previous damage caused by Hurricane Ida and acquisition costs of $0.5 million related to the DSS Acquisition.
Steel manufacturer expands
Finally, in December 1, 2021, the Company acquired the services and industrial staffing businesses of Dynamic Industries, Inc. The operating results of the DSS Business for the one-month period ended December 31, 2021, are in the Fabrication & Services Division.
“Momentum in our small-scale fabrication and services businesses continues to improve and we expect the recent rise in energy prices to further bolster this trend in the near term. The strong platform we are building in our services and small-scale fabrication businesses position us well for profitable growth in these markets.”
Richard Heo, Gulf Island’s President and CEO.
Activity in the large fabrication market is picking up; however, the Company believes there is still excess capacity in the market.
Gulf Island has long-term, fixed-price contract; and is unwilling to commit its resources to any project that does not meet its return hurdles. Particularly given the current inflationary headwinds and uncertain labor environment.
We recommend: Petrochemical raw materials provider, TPC Group, announces extension to forbearance agreement. Read more.
DSS acquisition
The Company completed the DSS Acquisition in December. It is a critical part of the Company’s growth strategy centers on growing and diversifying its services business.
“The acquisition of DSS allows us to further strengthen our current services business by adding long-standing customer relationships of DSS to our existing customer base, while also providing new services offerings and positioning us for growth and attractive revenue synergy opportunities.”
President and CEO.
Perhaps even more important, the addition of DSS nearly doubled the size of the skilled craft workforce; which is significant given the labor constraints plaguing the industry.
“2021 was an important year in the strategic transformation of Gulf Island, and I am extremely proud of everything we accomplished during the year, as we continued to de-risk our business through the Shipyard Transaction in April, improved our project execution, significantly expanded our services business through the DSS Acquisition, and made further progress on our targeted growth markets.”
Richard Heo.
About Gulf Island
Gulf Island is a leading fabricator of complex steel structures, modules and provider of specialty services.
The services include project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, civil construction and staffing; to the industrial and energy sectors.
The Company’s customers include U.S. and, to a lesser extent, international energy producers; refining, petrochemical, LNG, industrial and power operators; and EPC companies.
The Company base is in Houston, Texas.Its primary operating facilities are located in Houma, Louisiana.
Visit: Gulf Island.
