Gulf Island Fabrication Inc (GIFI) 2022 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Gulf Island's conference call to discuss fourth quarter and full year 2022 results. (Operator Instructions) This call is being recorded.

女士們先生們，下午好，歡迎參加海灣島的電話會議，討論第四季度和 2022 年全年業績。 （接線員說明）此通話正在錄音中。

At this time, I would like to turn the floor over to Ms. Cindi Cook for opening remarks and introductions. Cindi, please go ahead.

現在，我想請 Cindi Cook 女士進行開場白和介紹。辛迪，請繼續。

Thank you, and good afternoon. I would like to welcome everyone to our fourth quarter 2022 teleconference. Our results were released this afternoon, and a copy of the press release is available on our website at gulfisland.com. A replay of today's call will be available on our website after 7:00 p.m. this evening.

謝謝，下午好。歡迎大家參加我們 2022 年第四季度的電話會議。我們的結果於今天下午發布，新聞稿的副本可在我們的網站 gulfisland.com 上獲取。下午 7:00 之後，我們的網站將提供今天電話會議的重播。今天晚上。

Please keep in mind that the press release and certain comments on this call include forward-looking statements, and results may differ materially. We would like to refer everyone to the cautionary language included in our press release and to the risk factors described in our most recent Form 10-K and subsequent SEC filings.

請記住，本次電話會議的新聞稿和某些評論包含前瞻性陳述，結果可能存在重大差異。我們希望大家參考我們新聞稿中包含的警示性語言，以及我們最近的 10-K 表格和隨後提交給美國證券交易委員會的文件中描述的風險因素。

Please also note that management may reference EBITDA, new project awards and backlog on this call, which are financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations to the extent used, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our press release.

另請注意，管理層可能會在本次電話會議中參考 EBITDA、新項目獎勵和積壓訂單，這些都是美國公認會計原則不承認的財務指標。根據 SEC 規則和條例在使用範圍內的要求，這些非 GAAP 財務措施與我們新聞稿中最可比的 GAAP 財務措施相一致。

Today, we have Mr. Richard Heo, President and CEO; and Mr. Wes Stockton, Executive Vice President and CFO. Mr. Heo?

今天，我們有總裁兼首席執行官 Richard Heo 先生；執行副總裁兼首席財務官 Wes Stockton 先生。何先生？

Thank you, Cindi. Good afternoon, everyone, and welcome to our fourth quarter results conference call. I'm happy to be here with you this afternoon, and I hope that each of you and your families are continuing to stay healthy and safe. During today's call, I'll provide key takeaways from the quarter, a review of segment performance and end market trends and an update on the progress we have made on our strategic initiatives, including our key priorities for 2023. Wes will then discuss our fourth quarter results in greater detail. We will then open up the call for questions and end with some closing remarks.

謝謝你，辛迪。大家下午好，歡迎參加我們的第四季度業績電話會議。我很高興今天下午能和你們在一起，我希望你們每個人和你們的家人繼續保持健康和安全。在今天的電話會議上，我將提供本季度的主要收穫、對細分市場表現和終端市場趨勢的回顧，以及我們在戰略計劃方面取得的最新進展，包括我們 2023 年的主要優先事項。然後 Wes 將討論我們的第四個更詳細的季度結果。然後我們將開始提問，並以一些結束語結束。

The improving business momentum we experienced throughout 2022 continued into year-end and as we reported strong fourth quarter results with total revenues increasing nearly 50%, owing to continued strength in our Services division and small-scale fabrication business. In addition, we continue to make important progress on our strategic transformation initiatives. And as a result, we are well positioned to take advantage of the favorable demand trends that are benefiting the key end markets in our Gulf Coast region.

我們在整個 2022 年經歷的業務增長勢頭一直持續到年底，我們報告了強勁的第四季度業績，總收入增長近 50%，這歸功於我們的服務部門和小型製造業務的持續強勁。此外，我們繼續在戰略轉型計劃方面取得重要進展。因此，我們處於有利地位，可以利用有利的需求趨勢，這些趨勢有利於我們墨西哥灣沿岸地區的主要終端市場。

Last quarter, we announced that we were awarded a large fabrication contract, and we began initial work on the project during the fourth quarter. However, in late February, we received direction from our customer to suspend all project activities with no time line provided for potential recommencement of the project. We're hopeful this is simply a delay in the project timing, and we are taking measures to minimize the impact of the suspension on our business. While we were clearly disappointed to receive this news and hope to resume work on the contract, it is important to note that we still remain extremely encouraged by the bidding activity in the large fabrication market and the long-term outlook for our overall Fabrication business. We continue to pursue new project opportunities and are in discussions with a number of customers regarding attractive, large fabrication opportunities that we hope can convert to a new award before the end of the year.

上個季度，我們宣布獲得了一份大型製造合同，我們在第四季度開始了該項目的初步工作。然而，在 2 月下旬，我們收到客戶的指示，要求暫停所有項目活動，但沒有提供可能重新啟動該項目的時間表。我們希望這只是項目時間的延遲，我們正在採取措施將暫停對我們業務的影響降到最低。雖然我們收到這個消息顯然感到失望並希望恢復合同工作，但重要的是要注意，我們仍然對大型製造市場的投標活動和我們整體製造業務的長期前景感到非常鼓舞。我們繼續尋求新的項目機會，並正在與許多客戶討論有吸引力的大型製造機會，我們希望這些機會能夠在年底前轉化為新的合同。

Now turning to our segments' results. First, looking at the Services division. Our fourth quarter services revenue grew 60%, and EBITDA more than doubled compared to the same period in 2021, driven by contributions from the DSS acquisition and strong trends in the offshore market in the Gulf of Mexico. Expanding and diversifying our Services business is a key pillar of our strategic transformation, and I could not be more pleased with the progress we have made against this initiative in a relatively short period of time.

現在轉向我們細分市場的結果。首先，看看服務部門。我們第四季度的服務收入增長了 60%，EBITDA 與 2021 年同期相比增長了一倍多，這得益於 DSS 收購的貢獻以及墨西哥灣離岸市場的強勁趨勢。擴大和多元化我們的服務業務是我們戰略轉型的關鍵支柱，我對我們在相對較短的時間內針對這一舉措取得的進展感到非常高興。

The acquisition of DSS doubled our services workforce and we have been able to essentially maintain our craft headcount during 2022, which is an important accomplishment given a very competitive labor environment, especially in the offshore services market. While the labor market is expected to remain competitive in 2023, we still anticipate continued growth in our Services division, driven by the strength of our core Gulf Coast market, increasing cross-selling opportunities amongst our various Services business lines, new strategic partnership opportunities and growth in our new Spark Safety business line.

收購 DSS 使我們的服務員工隊伍翻了一番，並且我們能夠在 2022 年期間基本維持我們的工藝員工人數，鑑於競爭激烈的勞動力環境，尤其是在離岸服務市場，這是一項重要成就。雖然勞動力市場預計在 2023 年將保持競爭力，但我們仍預計我們的服務部門將繼續增長，這得益於我們的核心墨西哥灣沿岸市場的實力、我們各種服務業務線之間交叉銷售機會的增加、新的戰略合作機會和我們新的 Spark Safety 業務線的增長。

We're excited about the progress of Spark Safety, which provides welding enclosures that create a safe environment for work to be carried out without the need to shut down operations. We were awarded our first project in the fourth quarter and commenced our second project in January. We feel that our Spark Safety system has a competitive advantage, which incorporates an improved crunch control system with additional safety features, which is being recognized in the industry. We are confident that Spark Safety will be a strong contributor to our Services operating results in the coming year. The addition of this strategic business line where we are providing a value-added service is a key factor in our overall growth strategy. Overall, I believe we have built one of the premier Services operations in our region. And with the strong end market trends and scarcity of labor, we expect to build on our strong platform going forward.

我們對 Spark Safety 的進步感到興奮，它提供了焊接外殼，可以在不需要關閉操作的情況下為開展工作創造一個安全的環境。我們在第四季度獲得了第一個項目，並在 1 月份開始了第二個項目。我們認為我們的 Spark Safety 系統具有競爭優勢，它結合了改進的緊縮控制系統和額外的安全功能，這在業界得到了認可。我們相信，Spark Safety 將在來年為我們的服務運營業績做出重要貢獻。增加我們提供增值服務的戰略業務線是我們整體增長戰略的關鍵因素。總的來說，我相信我們已經在我們的地區建立了首屈一指的服務業務之一。鑑於強勁的終端市場趨勢和勞動力短缺，我們希望在我們強大的平台上繼續前進。

Now moving on to our Fabrication division, where we generated 60% top line growth during the fourth quarter, driven in large part by the continued strength in our small-scale fabrication business. The continued momentum in our small-scale fab business is a function of the ongoing favorable demand trends in our core markets, combined with our strategic location in Houma, strong customer relationships and track record of quality and on-time completion of projects. The outlook for this business remains positive as we move into the new year and we expect further growth in small-scale fab in 2023.

現在轉到我們的製造部門，我們在第四季度實現了 60% 的收入增長，這在很大程度上是由我們的小型製造業務的持續強勁推動的。我們的小型晶圓廠業務的持續發展勢頭是我們核心市場持續有利的需求趨勢，再加上我們在侯馬的戰略位置、強大的客戶關係以及質量和按時完成項目的記錄。隨著我們進入新的一年，該業務的前景依然樂觀，我們預計 2023 年小型晶圓廠將進一步增長。

While the decision by our customer to suspend activities on our large fabrication project was disappointing, we remain very optimistic about the longer-term outlook for the broader fabrication market. While there clearly could be a timing issue if work under our large fab project does not resume in a timely manner or if the project is ultimately terminated, bidding activity in the market remains robust and the industry capacity is still limited, which gives me confidence that we will have success with a large fabrication project award to help mitigate the impact of the suspension, particularly in the latter part of 2023 as we move into 2024. And as we have stated many times in the past, we will not chase growth, and we are committed to remaining disciplined to ensure that any large contract award is consistent with our financial and risk objectives.

雖然我們的客戶決定暫停我們大型製造項目的活動令人失望，但我們對更廣泛的製造市場的長期前景仍然非常樂觀。如果我們的大型晶圓廠項目不能及時恢復工作或項目最終終止，顯然可能存在時間問題，但市場投標活動依然強勁，行業產能仍然有限，這讓我有信心我們將成功獲得大型製造項目獎，以幫助減輕暫停的影響，特別是在我們進入 2024 年的 2023 年下半年。正如我們過去多次聲明的那樣，我們不會追逐增長，並且我們致力於保持紀律，以確保任何大額合同授予都符合我們的財務和風險目標。

Finally, turning to our Shipyard division. We continue to make progress toward an efficient and safe wind-down of our Shipyard operations. With respect to our 70-vehicle ferry project for the Texas Department of Transportation, the construction phase of the ferry is substantially finished, and the ferry is in the water for the final outfitting stage. During the quarter, we recorded $900,000 charge due to increased materials and subcontractor costs and duration-related costs due to the extension of schedule, including forecast liquidated damages. These impacts were primarily due to equipment issues identified during testing, some contractor delays and the U.S. Coast Guard's determination that the vessel's wood consoles, which were contractually specified by the customer, must be modified with metal consoles. We're continuing to work with the customer and minimize the financial impact of these delays as we work towards final delivery, which is now anticipated in the second quarter due to the required console modifications.

最後，轉向我們的造船廠部門。我們繼續朝著高效和安全地結束我們造船廠運營的方向取得進展。關於我們為德克薩斯州交通部設計的 70 輛渡輪項目，渡輪的施工階段已基本完成，渡輪已下水進行最後的舾装階段。在本季度，我們記錄了 900,000 美元的費用，這是由於材料和分包商成本增加以及由於工期延長導致的工期相關成本，包括預計的違約金。這些影響主要是由於測試期間發現的設備問題、一些承包商的延誤以及美國海岸警衛隊確定客戶在合同中指定的船舶木質控制台必須用金屬控制台進行修改。我們將繼續與客戶合作，並在我們努力實現最終交付時將這些延遲的財務影響降至最低，由於需要對控制台進行修改，現在預計將在第二季度交付。

With respect to our 2 40-vehicle ferry projects for the North Carolina Department of Transportation, our teams continue to make progress. Unfortunately, we continue to encounter performance issues in both the construction and commissioning of the 2 ferries due to previously discussed design deficiencies. As we previously discussed, we entered into a change order with the customer for modifications to the propulsion system to rectify certain performance issues, which resulted in greater-than-anticipated construction delays for both vessels. We successfully completed the modifications for the first vessel. And following successful sea trials in the fourth quarter, the vessel was delivered to the customer, and conditional acceptance was received in January.

關於我們為北卡羅來納州交通部提供的 2 個 40 輛渡輪項目，我們的團隊繼續取得進展。不幸的是，由於之前討論的設計缺陷，我們在 2 艘渡輪的建造和調試中繼續遇到性能問題。正如我們之前討論的那樣，我們與客戶簽訂了一份變更單，要求修改推進系統以糾正某些性能問題，這導致兩艘船的建造延誤都超出預期。我們成功地完成了第一艘船的改裝。在第四季度成功試航後，該船已交付給客戶，並於 1 月收到有條件驗收。

However, final acceptance has been delayed as we work with the customer to address an equipment issue resulting from the design deficiencies. For the remaining ferry, we are targeting completion and delivery in the second quarter of 2023. Although completion had previously been anticipated for the first quarter, it has been delayed due to the design deficiencies, which have continued to result in deflection issues within the plating of the vessels, which, in addition to the propulsion system modifications, has resulted in schedule delays and cost increases for the quarter. As such, during the quarter, we recorded a $1.1 million charge, resulting primarily from increased craft labor cost and duration-related costs due to the extensions of schedule, including forecast liquidated damages.

但是，由於我們與客戶合作解決由設計缺陷導致的設備問題，因此最終驗收有所延遲。對於剩下的渡輪，我們的目標是在 2023 年第二季度完工並交付。儘管之前預計第一季度完工，但由於設計缺陷而被推遲，這些缺陷繼續導致電鍍內的偏斜問題的船隻，除了推進系統修改外，還導致本季度的進度延誤和成本增加。因此，在本季度，我們記錄了 110 萬美元的費用，這主要是由於工期勞動力成本和因工期延長而導致的工期相關成本增加，包括預計的違約金。

Separately, our lawsuit in North Carolina state court seeking damages regarding the design flaws for the vessels and the resulting delays is ongoing. As a result of the completion delays for the 2 remaining ferries, we now anticipate the wind-down of the Shipyard operations to be completed in the second quarter of 2023.

另外，我們在北卡羅來納州法院就船舶的設計缺陷和由此造成的延誤尋求損害賠償的訴訟仍在進行中。由於剩餘 2 艘渡輪的完工延遲，我們現在預計 Shipyard 運營的結束將在 2023 年第二季度完成。

Regarding the MPSV lawsuit with Hornbeck. On February 1, we filed an 8-K disclosing that the trial court granted Hornbeck's motions for partial summary judgment, dismissing the claim by Gulf Island Shipyards that Hornbeck wrongfully terminated the vessel construction contracts. Shipyards appealed the trial court's decision. And on March 2, the appellate court reversed the court's decision, thereby reinstating Shipyards' wrongful termination claim. As a result of the appellate court's ruling, the trial previously scheduled for March 6, 2023 has been rescheduled to begin on October 16, 2023.

關於與 Hornbeck 的 MPSV 訴訟。 2 月 1 日，我們提交了一份 8-K 文件，披露初審法院批准了 Hornbeck 的部分簡易判決動議，駁回了 Gulf Island Shipyards 關於 Hornbeck 錯誤終止船舶建造合同的索賠。 Shipyards 對初審法院的判決提出上訴。 3 月 2 日，上訴法院推翻了法院的判決，從而恢復了 Shipyards 的不當終止索賠。由於上訴法院的裁決，原定於 2023 年 3 月 6 日進行的審判已重新安排在 2023 年 10 月 16 日開始。

I'd like to wrap up my comments with an update on our strategic transformation. And importantly, I want to highlight some of our key areas of focus as we look forward to 2023. During 2022, we continue to make an important progress on the second phase of our strategic transformation, which was focused on positioning the company to pursue stable profitable growth. The key aspects of our strategy were based on pursuing growth opportunities in new end markets as well as in our traditional offshore markets, growing and diversifying our Services business, further strengthening project execution and expanding our skilled labor workforce. I'm very proud of our successful execution against our strategic initiatives during 2022, which has culminated in a strong fourth quarter financial performance. As we look to 2023, our strategic priorities will be squarely focused on continuing to generate profitable growth and building our success in 2022.

我想用我們戰略轉型的最新情況來結束我的評論。重要的是，我想強調我們期待 2023 年的一些重點領域。在 2022 年，我們繼續在戰略轉型的第二階段取得重要進展，重點是將公司定位為追求穩定盈利增長。我們戰略的關鍵方面是基於在新的終端市場和我們的傳統離岸市場尋求增長機會，發展我們的服務業務並使其多樣化，進一步加強項目執行並擴大我們的熟練勞動力隊伍。我為我們在 2022 年成功執行我們的戰略計劃感到非常自豪，最終實現了強勁的第四季度財務業績。展望 2023 年，我們的戰略重點將直接專注於繼續實現盈利增長並在 2022 年取得成功。

Some of our notable achievements during 2022 and key areas of focus for 2023 include the following. First, we significantly expanded our Services business and skilled craft headcount during 2022, driven in large part by the DSS acquisition. We exited the year at an annual revenue run rate of roughly $90 million with double-digit EBITDA margins. We expect continued growth in our Services business during 2023, driven by a focus on pursuing strategic partnerships, the benefit of our recently launched Spark Safety business, and finding creative ways to expand our craft labor headcounts.

我們在 2022 年取得的一些顯著成就和 2023 年的重點關注領域包括以下內容。首先，我們在 2022 年顯著擴大了服務業務和技術人員人數，這在很大程度上是由 DSS 收購推動的。我們以大約 9000 萬美元的年收入運行率和兩位數的 EBITDA 利潤率結束了這一年。我們預計我們的服務業務在 2023 年將繼續增長，這主要得益於對尋求戰略合作夥伴關係的關注、我們最近推出的 Spark Safety 業務的好處，以及尋找創造性方法來擴大我們的工藝勞動力人數。

Second, we positioned our Fabrication business to pursue growth in our traditional offshore markets as well as new growth end markets. We generated strong growth in our small-scale fab business during 2022, with fourth quarter revenues growing 60% and continued new award momentum. As we move forward, we are focused on taking advantage of our strategic location and the limited industry capacity to pursue large fabrication awards at terms consistent with our financial and risk objectives and are in active dialogue with customers for large fabrication work to mitigate the impacts of the suspension of our large project that will provide us continued momentum going into 2024.

其次，我們將製造業務定位為在傳統的離岸市場和新的增長終端市場尋求增長。 2022 年，我們的小型晶圓廠業務實現強勁增長，第四季度收入增長 60%，並繼續保持新的獎項勢頭。在我們前進的過程中，我們專注於利用我們的戰略位置和有限的行業能力，以符合我們財務和風險目標的條款尋求大型製造合同，並與客戶就大型製造工作進行積極對話，以減輕影響暫停我們的大型項目，這將為我們提供進入 2024 年的持續動力。

Lastly, we continue to maintain bidding discipline and strengthen project execution, with projects performing consistent with or better than our as-sold estimates during 2022. As we enter 2023, we remain committed to focusing on execution and bidding discipline in order to ensure we grow our margins while managing risk, particularly given the ongoing inflationary pressures and challenges with availability of skilled labor.

最後，我們繼續保持投標紀律並加強項目執行，項目在 2022 年的表現符合或優於我們的銷售預期。進入 2023 年，我們將繼續致力於專注於執行和投標紀律，以確保我們的增長我們的利潤率，同時管理風險，特別是考慮到持續的通脹壓力和熟練勞動力可用性的挑戰。

In closing, I'm happy with our progress during 2022. We have a lot to be proud of, but we're still in the early innings of our plan. While I'm disappointed by the delay in the completion of our ferry obligations and the suspension of our large fabrication project, I'm confident about our future. And as I look forward, I remain very encouraged by the demand trends in our key markets and how Gulf Island is positioned to take advantage of these trends. As a result, we anticipate continued growth in our Services division and our small-scale fabrication business during 2023, and we remain optimistic about the outlook of our Fabrication division.

最後，我對我們在 2022 年取得的進展感到滿意。我們有很多值得驕傲的地方，但我們仍處於計劃的早期階段。雖然我對延遲完成我們的渡輪義務和暫停我們的大型製造項目感到失望，但我對我們的未來充滿信心。展望未來，我仍然對我們主要市場的需求趨勢以及 Gulf Island 如何利用這些趨勢的定位感到非常鼓舞。因此，我們預計我們的服務部門和小型製造業務在 2023 年將繼續增長，並且我們對製造部門的前景保持樂觀。

I will now turn the call over to Wes to discuss our quarterly results in greater detail.

我現在將電話轉給韋斯，更詳細地討論我們的季度業績。

Thanks, Richard. And good afternoon, everyone. I will discuss our consolidated results and then provide some additional details regarding our segment results, putting in context the factors mentioned by Richard and their impacts on the quarter. I will then conclude with a discussion of our liquidity.

謝謝，理查德。大家下午好。我將討論我們的綜合業績，然後提供有關我們分部業績的一些額外細節，並結合理查德提到的因素及其對本季度的影響。最後，我將討論我們的流動性。

Consolidated revenue for the fourth quarter of 2022 was $38.1 million, a 48% increase from the fourth quarter of 2021, with the year-over-year increase attributable to strong growth in both our Services and Fabrication divisions. Consolidated operating income for the fourth quarter was $380,000, and EBITDA was $1.7 million. Our consolidated results reflect a positive contribution from our Services and Fabrication divisions, including a gain from Hurricane Ida insurance recoveries, offset by costs associated with our corporate division and legal and advisory fees and project losses attributable to our retained Shipyard operations.

2022 年第四季度的合併收入為 3810 萬美元，比 2021 年第四季度增長 48%，同比增長歸因於我們的服務和製造部門的強勁增長。第四季度合併營業收入為 380,000 美元，EBITDA 為 170 萬美元。我們的綜合業績反映了我們的服務和製造部門的積極貢獻，包括颶風艾達保險回收的收益，被與我們公司部門相關的成本以及法律和諮詢費用以及我們保留的造船廠業務造成的項目損失所抵消。

Specifically for the Services division, revenue for the fourth quarter 2022 was $21.6 million, an increase of $8.1 million or 60% compared to the fourth quarter of 2021. The increase was driven by a full quarter contribution from the DSS acquisition and continued strength in our legacy offshore services business. Fourth quarter Services revenue was down sequentially from the third quarter due to the normal seasonality of the business, such as the winter weather and the year-end holiday season, which impact our billable hours.

具體到服務部門，2022 年第四季度的收入為 2160 萬美元，比 2021 年第四季度增加 810 萬美元或 60%。這一增長的推動因素是收購 DSS 的整個季度貢獻以及我們的持續實力遺留的離岸服務業務。第四季度服務收入環比第三季度下降，原因是業務的正常季節性，例如冬季天氣和年終假期影響了我們的計費時間。

Services EBITDA for the fourth quarter was $2.6 million or 11.9% of revenue, up from $1.2 million or 9.2% of revenue for the prior year period. Operating results for the quarter benefited from a more favorable project mix for our legacy Services business and the contribution of the DSS acquisition.

第四季度服務業 EBITDA 為 260 萬美元，佔收入的 11.9%，高於去年同期的 120 萬美元，佔收入的 9.2%。本季度的經營業績得益於對我們的遺留服務業務更有利的項目組合以及 DSS 收購的貢獻。

As mentioned by Richard, we expect continued organic growth and strong operating results for the division in 2023 based on the strength of our end markets, favorable competitive position and contribution of our Spark Safety business line. However, the level of annualized growth will be more normalized during 2023 as we achieved the 1-year anniversary of the DSS acquisition in the fourth quarter of 2022.

正如 Richard 所提到的，基於我們終端市場的實力、有利的競爭地位和我們 Spark Safety 業務線的貢獻，我們預計該部門在 2023 年將實現持續的有機增長和強勁的經營業績。然而，隨著我們在 2022 年第四季度迎來 DSS 收購一周年，年化增長水平將在 2023 年更加正常化。

For our Fabrication division, revenue for the fourth quarter of 2022 was $16.4 million, an increase of $6.2 million or 60% compared to the fourth quarter of 2021. The increase was attributable to strong growth in small-scale fabrication and progress on our large fabrication project, offset partially by the completion of several larger fabrication projects that were in progress in the prior period.

對於我們的製造部門，2022 年第四季度的收入為 1640 萬美元，與 2021 年第四季度相比增加了 620 萬美元或 60%。這一增長歸因於小型製造的強勁增長和我們大型製造的進展項目，部分被上一期間正在進行的幾個較大的製造項目的完成所抵消。

Fabrication EBITDA for the fourth quarter was $5 million versus a loss of $3 million for the prior year period. Operating results for the fourth quarter of 2022 included gains of $3 million from insurance recoveries associated with damage previously caused by Hurricane Ida, while operating results for the fourth quarter of 2021 included charges of $3.1 million associated with Hurricane Ida damage and project improvements of $1.2 million.

第四季度的製造業務 EBITDA 為 500 萬美元，而去年同期虧損 300 萬美元。 2022 年第四季度的經營業績包括與之前颶風艾達造成的損失相關的保險賠償收益 300 萬美元，而 2021 年第四季度的經營業績包括與颶風艾達損失相關的 310 萬美元費用和 120 萬美元的項目改進費用.

While our volume levels continue to be below capacity, the division's utilization has improved in recent quarters due to the increase in our small-scale fabrication work. We expect our results in the first quarter to be consistent with or better than the fourth quarter and are working to mitigate the impacts of the suspension of our large project on the remainder of 2023.

雖然我們的產量水平繼續低於產能，但由於我們的小規模製造工作增加，該部門的利用率在最近幾個季度有所提高。我們預計第一季度的業績將與第四季度保持一致或更好，並且正在努力減輕我們大型項目暫停對 2023 年剩餘時間的影響。

For our Shipyard division, revenue for the fourth quarter 2022 was entirely related to our 70-vehicle ferry and 2 40-vehicle ferry projects, which, as discussed by Richard, are nearing completion. Our loss for the quarter was related to the previously mentioned project charges and legal and advisory fees associated with the MPSV litigation.

對於我們的造船廠部門，2022 年第四季度的收入完全與我們的 70 輛渡輪和 2 個 40 輛渡輪項目有關，正如理查德所討論的那樣，這些項目即將完成。我們本季度的虧損與前面提到的與 MPSV 訴訟相關的項目費用以及法律和諮詢費用有關。

For our Corporate division, general and administrative expense was $2.4 million for the fourth quarter of 2022 compared to $1.7 million for the prior year period, with the increase due to higher incentive plan costs and expenses associated with initiatives to diversify and enhance our business. The higher incentive plan costs were due to the accelerated amortization of compensation expense for our performance-based equity awards.

對於我們的公司部門，2022 年第四季度的一般和行政費用為 240 萬美元，而去年同期為 170 萬美元，增加的原因是激勵計劃成本和與業務多元化和增強舉措相關的費用增加。較高的激勵計劃成本是由於我們基於績效的股權獎勵的補償費用的加速攤銷。

With respect to our liquidity, we ended the fourth quarter with a cash and investment balance of approximately $45 million, an increase of $7 million from the end of the third quarter due to positive operating results for the quarter as well as expected working capital improvements, offset partially by capital expenditures, primarily associated with investments in our Spark Safety business line.

關於我們的流動性，我們在第四季度結束時的現金和投資餘額約為 4500 萬美元，比第三季度末增加 700 萬美元，這是由於本季度的積極經營業績以及預期的營運資金改善，部分被資本支出抵消，資本支出主要與我們的 Spark Safety 業務線的投資相關。

This concludes our prepared remarks. Operator, you may now open the line for questions.

我們準備好的發言到此結束。接線員，您現在可以打開問題熱線。

(Operator Instructions) And our first question comes from the line of Martin Malloy with Johnson Rice.

（操作員說明）我們的第一個問題來自 Martin Malloy 和 Johnson Rice 的台詞。

Can you tell us anything additional about the project -- the large fabrication project that has been suspended? Any sense of the likelihood that this project could be unsuspended and go forward again? Any exposure you might have from a financial standpoint? Anything like that?

你能告訴我們關於這個項目的更多信息嗎——這個已經暫停的大型製造項目？是否有可能取消該項目並再次推進該項目？從財務角度來看，您可能有任何風險敞口嗎？有什麼類似的嗎？

Yes, Marty, we are currently working with the customer as they evaluate all of their options and their path forward. And we hope to, in a very quick time here in the next month or 2, definitely before the earnings call, have more clarity on the aspects of the project and the customer's decision on the path forward.

是的，馬蒂，我們目前正在與客戶合作，因為他們正在評估他們的所有選擇和前進的道路。我們希望，在下個月或 2 個月的非常短的時間內，肯定是在財報電話會議之前，更清楚地了解項目的各個方面以及客戶對前進道路的決定。

Yes. And Marty, as we mentioned on previous calls, it's a reimbursable contract. So our expectation is that at this point that any amounts that we incur should be recovered under our contract.

是的。正如我們在之前的電話會議中提到的，馬蒂是一份可償還合同。所以我們的期望是，在這一點上，我們產生的任何金額都應該根據我們的合同收回。

Okay. Great. And just in terms of the bidding activity on the large projects in the Gulf Coast region, could you give us any more color there in terms of type of projects or level of bidding activity, whether it be LNG, petrochemical? Any other industries that maybe we're not aware of that there might be projects related to?

好的。偉大的。就墨西哥灣沿岸地區大型項目的招標活動而言，您能否在項目類型或招標活動水平方面給我們更多顏色，無論是液化天然氣還是石化？我們可能沒有意識到可能有相關項目的任何其他行業？

Yes. Marty, one of the things that we have talked about, the market has recognized this whole value [modular] fabrication, especially in light of what's going on in the market with labor availability or the challenges of labor and schedule kind of certainty. Customers in all facets are looking for modularization. So the things that we're right on the -- that we are chasing currently that are kind of in the forefront are on the larger petrochemical projects and LNG projects that have made FID, and so those projects are more imminent. And then on a smaller scale, lots of revamp opportunities where modularization is coming into play.

是的。馬蒂，我們談到的其中一件事，市場已經認識到[模塊化]製造的整個價值，特別是考慮到市場上勞動力可用性或勞動力挑戰和時間表確定性的情況。各個方面的客戶都在尋求模塊化。因此，我們正在做的事情——我們目前正在追逐的處於最前沿的事情是在已經做出 FID 的大型石化項目和液化天然氣項目上，因此這些項目更加迫在眉睫。然後在較小的規模上，模塊化發揮作用的地方有很多改造機會。

The other opportunities that we are bidding on have to do with some of the infrastructure upgrades that are happening, more specifically with the CHIPS funding. There's some semiconductor plants that require lots of steel that goes into their facilities, and they are executing those on a modular format as well. So really a great set of opportunities for us on the large fab. It is, however, though, still very competitive as we've talked about in our prepared remarks, and we're just being very cautious about what we're bidding in the current environment.

我們競標的其他機會與正在發生的一些基礎設施升級有關，更具體地說，與 CHIPS 資金有關。有一些半導體工廠需要大量鋼鐵進入他們的設施，他們也在以模塊化的形式執行這些。因此，在大型晶圓廠中，我們確實有很多機會。然而，正如我們在準備好的評論中所談到的那樣，它仍然非常有競爭力，我們只是對我們在當前環境下的出價非常謹慎。

(Operator Instructions) Our next question comes from the line of Tom Spiro with Spiro Capital.

（操作員說明）我們的下一個問題來自 Spiro Capital 的 Tom Spiro。

Tom Spiro, Spiro Capital. On the liquidity front, can you give us a sense of where you think the cash balance will be at the end of Q1?

湯姆斯皮羅，斯皮羅資本。在流動性方面，您能告訴我們您認為第一季度末的現金餘額在哪裡嗎？

Yes. We think at this point, our working capital is sustainable, generally sustainable. So absent the impacts of CapEx and EBITDA contribution or impacts, we think this $40 million to $45 million cash balance should carry over into the end of the quarter.

是的。我們認為在這一點上，我們的營運資金是可持續的，總體上是可持續的。因此，如果不考慮資本支出和 EBITDA 的貢獻或影響，我們認為這 4000 萬至 4500 萬美元的現金餘額應該會延續到本季度末。

That's helpful. And your CapEx plans for the year, can you give us a sense of that, please?

這很有幫助。還有你今年的資本支出計劃，你能告訴我們嗎？

Yes. Our guidance, and it's actually -- we're going to file our 10-K this evening, and it will be available in the morning. But in our 10-K, we did specify our expectations for next year. It's in the $3 million to $5 million range. In light of the suspension of the large project that we talked about, we're going to do our best to kind of manage through that CapEx requirement and just make sure that we're aligning our capital needs with our market and demand.

是的。我們的指導，實際上是——我們今晚將提交我們的 10-K，它將在早上提供。但在我們的 10-K 中，我們確實明確了我們對明年的期望。它在 300 萬到 500 萬美元之間。鑑於我們談到的大型項目暫停，我們將盡最大努力通過資本支出要求進行管理，並確保我們的資本需求與我們的市場和需求保持一致。

And as I recall, the party with whom we have the large fab job, it was paying us a reservation fee so that we would have facilities personnel available for them when they were ready to move forward. Now that they're reconsidering and sort of thinking, are they again paying us a reservation fee? Or are we sort of waiting without compensation?

正如我記得的那樣，與我們一起進行大型晶圓廠工作的一方向我們支付了預訂費，以便我們可以在他們準備好繼續前進時為他們提供設施人員。現在他們正在重新考慮和思考，他們是否再次向我們支付預訂費？或者我們是在無償地等待？

Yes. At this point, we were -- we had moved from the reservation fee part of that contract into the full-blown fabrication contracts. So we're operating under that contractual arrangement. And until -- at this point, the suspension is early on, so we're still evaluating that, and we'll see what happens over the next month or so.

是的。在這一點上，我們 - 我們已經從該合同的預訂費部分轉移到全面的製造合同中。因此，我們在該合同安排下運營。直到——在這一點上，暫停還早，所以我們仍在評估，我們將看看下個月左右會發生什麼。

Tom, just to be clear, as Wes said, this is not a fixed-price lump sum contract. It is reimbursable. So we are, through this entire process, even today, covering our costs.

Tom，正如 Wes 所說，要明確一點，這不是一份固定價格的包乾合同。它是可以報銷的。因此，即使在今天，我們也在整個過程中支付我們的成本。

I see. That's helpful. And if another large job comes our way tomorrow morning, can we take it? Do we have the facilities, personnel, et cetera? Or would we have to defer that because we may have obligations to the prior customer?

我懂了。這很有幫助。如果明天早上又來了一份大工程，我們能接受嗎？我們有設施、人員等嗎？或者我們是否必須推遲，因為我們可能對先前的客戶負有義務？

Yes. So that's a great question. We would have to obviously have a conversation with the existing customer before we take it. But one thing that gives me a lot of confidence in these large jobs is that we were able to ramp up in preparation in the fourth quarter and part of the first quarter, and so I was happy with the -- our ability to ramp up in the fab yard. So I feel very good about and confident about our ability to execute a large project. And if we were to get one, we would obviously look to take it but, obviously, have to have a conversation with the existing customer to make sure that we're in line to do that properly.

是的。所以這是一個很好的問題。在接受之前，我們顯然必須與現有客戶進行對話。但讓我對這些大型工作充滿信心的一件事是，我們能夠在第四季度和第一季度的部分時間加快準備工作，所以我很高興——我們有能力在工廠的院子。因此，我對我們執行大型項目的能力感到非常滿意並充滿信心。如果我們要得到一個，我們顯然會考慮接受它，但顯然，必須與現有客戶進行對話，以確保我們能夠正確地做到這一點。

Just a couple more on the subject of LNG. As I read the newspaper, magazines and such, my impression is that LNG -- a number of LNG projects are moving forward as we speak. And contracts have been awarded over the last several months that are being awarded now. I don't see that you folks have actually won anything, even though there seems to be lots to be won. Should that concern me?

關於液化天然氣的主題還有幾個。當我閱讀報紙、雜誌等時，我的印像是液化天然氣——正如我們所說的那樣，許多液化天然氣項目正在向前推進。過去幾個月授予的合同現在正在授予。我看不出你們實際上贏得了什麼，儘管似乎有很多要贏的。這應該關心我嗎？

No. It's -- so the LNG projects that you're talking about that have been made FID, a lot of the projects are not -- so essentially, there has to be a relevant scope, and it's this modular fabrication or things that we can build in our yard. So it has to be appropriate in terms of the type of project and what the opportunity set is for the fabricated materials. So there has been a string of FID announced for LNG projects, and we are actively bidding on those projects that have recently been announced.

不，它是 - 所以你正在談論的液化天然氣項目已經成為 FID，很多項目不是 - 所以本質上，必須有一個相關的範圍，這是我們的模塊化製造或東西可以建在我們的院子裡。因此，它必須適合項目類型以及為製造材料設置的機會。因此，液化天然氣項目已經公佈了一系列 FID，我們正在積極競標最近公佈的那些項目。

I see. And lastly, the turmoil in the banking sector in the last week or 10 days, I'm sure you read about it as I have. I was curious whether you expect that to impact your business in [salvage], in either some of the jobs that you're bidding or some of the jobs that you have in hand? What impact, if any, do you think that will have on Gulf Island?

我懂了。最後，銀行業在過去一周或 10 天內的動盪，我相信你和我一樣讀過它。我很好奇您是否希望這會影響您在 [打撈] 方面的業務，無論是您正在競標的某些工作還是您手頭的一些工作？您認為這會對海灣島產生什麼影響（如果有的話）？

I don't think it will have any impact in terms of the jobs that we're bidding.

我認為這不會對我們競標的工作產生任何影響。

Our next question comes from the line of Richard Greulich with REG Capital Advisors.

我們的下一個問題來自 Richard Capital Advisors 的 Richard Greulich。

With regard to the MPSV litigation, if things were ultimately not to go your way, what would the liability or expense structure result in?

關於 MPSV 訴訟，如果事情最終沒有按照您的意願進行，那麼負債或費用結構會導致什麼結果？

Yes, this is Wes. I mean as you can imagine, given this is litigation, we want to limit our discussion on this. Obviously, it's a jury trial, so the ultimate outcome is uncertain. It's fairly difficult to predict as well. We did provide some additional details of the litigation in our 10-K. I mentioned earlier that we'll file that this evening, and it'll be available in the morning. It's probably better to allow that because it will give more context to our current thinking around the litigation.

是的，這是韋斯。我的意思是，正如您想像的那樣，鑑於這是訴訟，我們希望限制對此的討論。顯然，這是陪審團審判，所以最終結果是不確定的。這也很難預測。我們確實在我們的 10-K 中提供了一些額外的訴訟細節。我之前提到過，我們將在今晚提交文件，並在早上提供。允許這樣做可能更好，因為它將為我們當前圍繞訴訟的思考提供更多背景信息。

Okay. Is there any -- are there any sums on the balance sheet that would shed some light on that, one way or the other, on your reserves or...

好的。資產負債表上是否有任何金額可以從某種程度上說明您的儲備金或...

They wouldn't shed light on your early-on question, but I will tell you what is on our balance sheet. We do have a receivable of $12.5 million. It's been on the balance sheet since the termination date. It reflects our working -- our contract position at the time of the termination, and it's in other long-term assets.

他們不會闡明你早期的問題，但我會告訴你我們的資產負債表上有什麼。我們確實有 1250 萬美元的應收賬款。自終止日期以來，它一直在資產負債表上。它反映了我們的工作——我們在終止時的合同地位，它在其他長期資產中。

Okay. And it -- well, let me kind of take it from a different angle then. So if that's the receivable and that doesn't become in actuality, so there's $12 million there. But is there any additional amount that you would actually have to pay then for that?

好的。它——好吧，讓我從不同的角度來看待它。因此，如果那是應收賬款，但實際上並沒有變成，那麼那裡就有 1200 萬美元。但是，您實際上需要為此支付額外的費用嗎？

Well, like I said, they have claims against us. We have claims against them. And conceivably, there could be amounts that are due to them. And conversely, there could be incremental amounts that are due to us. At this point, we're not in a position to tell you the likelihood of what that might be or not be.

好吧，就像我說的，他們對我們有要求。我們對他們提出索賠。可以想像，可能會有欠他們的款項。相反，可能會有欠我們的增量金額。在這一點上，我們無法告訴您可能是或不是的可能性。

And our next question comes from the line of David Wright with Henry Investment Trust.

我們的下一個問題來自 David Wright 與 Henry Investment Trust 的合作。

Learn me up here. As you talk about this being a reimbursable contract and you talk about covering your cost, does that mean that you don't get any profit on the business you've done so far?

在這裡學我。當你談到這是一份可償還的合同並且你談到支付你的成本時，這是否意味著你沒有從你迄今為止所做的業務中獲得任何利潤？

No. When we say reimbursable, we mean it's reimbursable, plus the margin that's been provided for within the contract.

不。當我們說可報銷時，我們的意思是它是可報銷的，加上合同中規定的保證金。

Okay. And you said you were working on this in the fourth quarter and then you were working on this through late February.

好的。你說你在第四季度就在做這件事，然後你一直在做這件事直到 2 月下旬。

That is correct. We made progress during the first part of the year. That's correct.

那是對的。我們在今年上半年取得了進展。這是正確的。

But you have business in the first quarter as well from this contract?

但是你在第一季度也有這份合同的業務嗎？

We will have some. We expected about -- and you'll see this again in our filing. We've got somewhere between $60 million and $70 million of our backlog that we think will be impacted by the suspension, and that will be subject to determination of where the customer goes going forward.

我們會有一些。我們預計 - 你會在我們的文件中再次看到這一點。我們有 6000 萬到 7000 萬美元的積壓訂單，我們認為這些訂單會受到暫停的影響，這將取決於客戶前進的方向。

Is the customer currently present on its payables to you?

客戶目前是否存在應付給您的款項？

I'm sorry?

對不起？

Is the customer present on its payables?

客戶是否存在其應付賬款？

Generally, current. We haven't received all payments of all amounts that are due at this point.

一般來說，電流。我們尚未收到此時到期的所有款項的所有付款。

Was -- did the customer have an issue with the quality of the work that the company was doing?

是——客戶對公司的工作質量有意見嗎？

No, it was not a quality -- it wasn't a Gulf Island issue. They are evaluating collectively all the projects that they're executing and looking for a best path forward in terms of their -- the amounts of capital projects that they're working on.

不，這不是質量——這不是海灣島的問題。他們正在集體評估他們正在執行的所有項目，並根據他們正在進行的資本項目的數量尋找最佳前進道路。

Thanks for that context. And then is anyone presently paying you for reservation space?

感謝您提供的背景信息。然後現在有人付錢給你預訂空間嗎？

No, not currently.

不，目前沒有。

And we have reached the end of the question-and-answer session, and I'll now turn the call back over to Richard Heo for closing remarks.

我們已經結束了問答環節，現在我將把電話轉回給 Richard Heo 作結束語。

In closing, I want to thank our customers and shareholders for their continued support as well as recognize our employees who continue to demonstrate a commitment to Gulf Island's success. For those on the call, thanks again for your interest, and I look forward to speaking with you on our first quarter results conference call and updating you on our progress. Be safe and take care.

最後，我要感謝我們的客戶和股東一直以來的支持，並表彰我們的員工繼續為 Gulf Island 的成功做出承諾。對於那些接聽電話的人，再次感謝您的關注，我期待在我們的第一季度業績電話會議上與您交談，並向您介紹我們的進展情況。注意安全並保重。

And this concludes the Gulf Island conference call. Thank you, and goodbye.

海灣島電話會議到此結束。謝謝，再見。