Gulf Island Fabrication Inc (GIFI) 2024 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Gulf Island's conference call to discuss first quarter 2024 results. All participants will be in a listen only mode for the duration of the call 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 2024 年第一季的業績。在錄製此通話的通話期間，所有參與者將處於僅監聽模式。

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 女士做開場白和介紹。辛迪，請繼續。

Thank you and good afternoon. I would like to welcome everyone to our first quarter 2024 teleconference. Our results were released this afternoon and a copy of the press release is available on our website at Gulf Island.com. A replay of today's call will be available on our website after 7:00 PM this evening. Please keep in mind that the press release and certain comments on this call include forward-looking statements and actual 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.

謝謝你，下午好。歡迎大家參加我們的 2024 年第一季電話會議。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 Gulf Island.com 上取得。今天晚上 7:00 後，我們的網站將提供今天電話會議的重播。請記住，本次電話會議的新聞稿和某些評論包括前瞻性陳述，實際結果可能存在重大差異。我們希望大家注意我們新聞稿中包含的警告性語言以及我們最近的 10 K 表格和隨後向 SEC 提交的文件中描述的風險因素。

Please also note that management may reference EBITDA adjusted EBITDA adjusted revenue, 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.

另請注意，管理層可能會在本次電話會議中參考 EBITDA 調整後 EBITDA 調整後收入、新項目獎勵和積壓訂單，這些財務指標未根據 SEC 規則和法規的要求在美國 GAAP 下得到認可。在使用的範圍內，這些非公認會計原則財務指標與其最具可比性的公認會計原則財務指標一致。

In our press release today, we have Mr. Richard Heo, President and CEO, and Mr. Wes Stockton, Executive Vice President and CFO, Mr. Heo.

在今天的新聞稿中，我們有總裁兼執行長 Richard Heo 先生和執行副總裁兼財務長 Wes Stockton 先生。

Thank you, Cindy. Good afternoon, everyone, and welcome to our first 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.

謝謝你，辛蒂。大家下午好，歡迎參加我們的第一季業績電話會議。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。

During today's call, I'll provide key takeaways from the quarter, a review of segment performance and end market trends, an update on the progress we have made on our strategic initiatives. West will then discuss our first quarter results in greater detail and provide some commentary on our outlook for 2024. We'll then open up the call for questions and end with them closing remarks.

在今天的電話會議中，我將提供本季度的主要要點、對細分市場業績和終端市場趨勢的回顧，以及我們在策略舉措方面取得的進展的最新情況。然後 West 將更詳細地討論我們第一季的業績，並對 2024 年的前景發表一些評論。然後我們將開始提問並以結束語結束。

The positive momentum we experienced during 2023 has carried into the new year as we posted another quarter of solid operating results and strong operational execution. We continue to make important progress on our strategic initiatives, putting us in a strong position to take advantage of the favorable end market trends in our core Gulf Coast region. Based on these positive trends, combined with our expectation for continued execution against our key initiatives, we are up optimistic regarding the business outlook and remain on track to achieve our full year 2024 financial targets.

我們在 2023 年經歷的積極勢頭已延續到新的一年，我們又發布了一個季度穩健的營運表現和強勁的營運執行力。我們繼續在策略舉措上取得重要進展，使我們處於有利地位，能夠利用墨西哥灣核心地區有利的終端市場趨勢。基於這些正面的趨勢，再加上我們對持續執行關鍵措施的預期，我們對業務前景持樂觀態度，並將繼續實現 2024 年全年財務目標。

Another important highlight from the first quarter was our strong financial position. Exiting the quarter West. We'll cover our balance sheet and liquidity in more detail, but we are very encouraged by our strong balance sheet with quarter ending cash of over $61 million. This gives us ample financial flexibility to pursue both organic and inorganic growth objectives.

第一季的另一個重要亮點是我們強勁的財務狀況。退出西區。我們將更詳細地介紹我們的資產負債表和流動性，但我們對我們強勁的資產負債表以及季末現金超過 6,100 萬美元感到非常鼓舞。這為我們提供了充足的財務靈活性來實現有機和無機成長目標。

Now turning to our segment results. First, looking at our Services division, our first quarter revenue increased 18% year over year, driven by continued strength in our offshore services markets, including further momentum in our Spark safety business.

現在轉向我們的部門業績。首先，看看我們的服務部門，在離岸服務市場持續強勁的推動下，包括 Spark 安全業務的進一步發展勢頭，我們第一季的營收年增 18%。

The demand environment for our key oil and gas customers remain favorable as our customers are generating strong profitability, leading to a healthy maintenance capital spending environment. We are pleased with the continued traction for our Spark safety services offering as we continue to expand the base of new customers the biggest challenge in our services business remains the ability to attract and retain craft labor.

我們主要的石油和天然氣客戶的需求環境仍然有利，因為我們的客戶產生了強勁的獲利能力，從而形成了健康的維護資本支出環境。隨著我們不斷擴大新客戶群，我們對 Spark 安全服務產品的持續吸引力感到高興，我們服務業務中最大的挑戰仍然是吸引和留住手工藝勞動力的能力。

As a result, we remain focused on retaining our employees and finding creative ways to attract and develop new talent, including through M&A, similar to our acquisition of dynamics. That said, we remain encouraged by the trends in our service business and continue to expect a strong year in 2024.

因此，我們仍然專注於留住員工，並尋找創意的方式來吸引和培養新人才，包括透過併購，類似於我們的動態收購。儘管如此，我們仍然對服務業務的趨勢感到鼓舞，並繼續預計 2024 年將是強勁的一年。

Now moving on to fabrication, our reported revenue declines from last year, but this was entirely driven by the benefit of our large fabrication project and last year's results. The strong momentum in our small fabrication business continued during the first quarter as we saw solid year-over-year growth and strong execution in this business.

現在轉向製造，我們報告的收入比去年有所下降，但這完全是由我們的大型製造項目和去年的業績帶來的好處所推動的。我們的小型製造業務在第一季繼續保持強勁勢頭，我們看到該業務的同比增長強勁且執行力強勁。

The demand trends in our legacy fabrication markets remain positive, including the opportunities we have discussed previously previously and the subsea market. A key aspect of our strategic plan is to target end markets outside of our traditional oil and gas markets. We have discussed the potential in adjacent markets such as LNG and petrochemical, and we continue to see attractive opportunities in these markets. We also continue to pursue new end markets where we can take advantage of our history of strong execution in our strategic locations.

我們傳統製造市場的需求趨勢仍然積極，包括我們之前討論過的機會和海底市場。我們策略計畫的一個關鍵方面是瞄準傳統石油和天然氣市場以外的終端市場。我們已經討論了液化天然氣和石化等鄰近市場的潛力，並且我們繼續看到這些市場中有吸引力的機會。我們也繼續尋求新的終端市場，在那裡我們可以利用我們在戰略地點的強大執行力的歷史。

Our contract for the fabrication of structural components for NASA, which was a key contributor to our strong growth in small-scale fabrication during the first quarter is an example of the opportunity to expand our end market focus. We are seeing that these end markets place a premium on quality and schedule certainty areas where Gulf Island is more than capable of delivering.

我們為 NASA 製造結構部件的合約是我們第一季小規模製造強勁成長的關鍵因素，也是我們擴大終端市場重點的機會的一個例子。我們看到這些終端市場非常重視品質和進度確定性領域，而海灣島完全有能力提供這些領域。

As a result, we believe we are in an attractive position to pursue these new end markets. We continue to pursue several attractive large fabrication projects. However, the regulatory uncertainty and uneven interest rate outlook is in many cases, extending the decision cycles and time lines of many of the large projects we are pursuing. We remain bullish on the potential for large fabrication awards, but the ability to predict timing is getting much more challenging.

因此，我們相信我們在開拓這些新的終端市場方面處於有利地位。我們繼續追求幾個有吸引力的大型製造項目。然而，在許多情況下，監管的不確定性和不均勻的利率前景延長了我們正在實施的許多大型專案的決策週期和時間線。我們仍然看好獲得大型製造獎的潛力，但預測時間的能力變得更具挑戰性。

However, given the meaningful growth in our small-scale business. We are now much less dependent on large orders, the strong market trends in our existing markets, as well as our opportunities in new end markets combined with the tight fabrication capacities give us confidence we are well positioned for growth in fabrication.

然而，考慮到我們的小規模業務的顯著成長。我們現在對大訂單的依賴大大減少，現有市場的強勁市場趨勢，以及我們在新終端市場的機會，再加上緊張的製造能力，使我們有信心在製造成長方面處於有利地位。

Finally, turning to our Shipyard Division. As we highlighted highlighted on our last call, we wrapped up our remaining operational shipyard obligations during the first quarter with the warranty period for our ferry projects being the final remaining items associated with the wind-down of the business, we are pleased to have the wind down in the shipyard behind us, and we are excited to put all of our energy and focus to growing our services and fabrication businesses to that end, we have increased our efforts to identify strategic partnerships and acquisition opportunities with our more stable Fabrication & Services platform.

最後，轉向我們的造船廠部門。正如我們在上次電話會議中所強調的那樣，我們在第一季完成了剩餘的營運造船廠義務，渡輪項目的保固期是與業務結束相關的最後剩餘項目，我們很高興我們身後的造船廠即將結束，我們很高興能將所有的精力和重點放在發展我們的服務和製造業務上，為此，我們加大了努力，透過更穩定的製造和服務來確定策略合作夥伴關係和收購機會平台。

Combined with our strong financial position, we are ideally suited situated to pursue strategic partnerships and acquisition opportunities that will enable us to grow our existing platform, expand our current capabilities and further penetrate new growth markets as we have done throughout our strategic transformation process, we will remain disciplined in our pursuit of both organic and inorganic growth opportunities.

結合我們強大的財務狀況，我們非常適合尋求策略合作夥伴關係和收購機會，這將使我們能夠發展我們現有的平台，擴大我們現有的能力，並進一步滲透新的成長市場，就像我們在在整個策略轉型過程中所做的那樣，我們將繼續恪守紀律，追求有機和無機成長機會。

In closing, we're very pleased by our strong start to the year, which was highlighted by the continued momentum in our services and small-scale fabrication businesses. These businesses combined to form a more stable and profitable base of business, which together with our strong financial position gives us an attractive platform to pursue our growth objectives. Our successful execution of our strategic objectives has put us in a strong competitive position, and we are excited by the opportunities we see in front of us.

最後，我們對今年的強勁開局感到非常高興，我們的服務和小型製造業務的持續成長勢頭凸顯了這一點。這些業務結合起來形成了更穩定和有利可圖的業務基礎，再加上我們強大的財務狀況，為我們提供了一個有吸引力的平台來實現我們的成長目標。我們策略目標的成功執行使我們處於強大的競爭地位，我們對眼前的機會感到興奮。

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

我現在將把電話轉給韋斯，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.

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其他詳細信息，結合上下文、理查德提到的因素及其對本季度的影響。

I will then conclude with a discussion of our liquidity and full year financial outlook.

最後，我將討論我們的流動性和全年財務前景。

Now turning to our quarter results. Consolidated revenue for the first quarter 2024 was $42.9 million down from $62.2 million in the prior year period. The decrease was driven by the contribution of our large fabrication project in the prior year quarter, which was canceled in July 2023, partially offset by growth in both our Services segment and small-scale fabrication business.

現在轉向我們的季度業績。2024 年第一季的合併收入為 4,290 萬美元，低於去年同期的 6,220 萬美元。這一下降是由於我們上一季的大型製造項目的貢獻所致，該項目於 2023 年 7 月被取消，部分被我們的服務部門和小型製造業務的成長所抵消。

Consolidated adjusted EBITDA was $3.7 million for the first quarter of 2024, essentially flat from the prior year period. Consolidated adjusted EBITDA reflects the removal of the operating results of our Shipyard Division for both periods. The current quarter also reflects the removal of a gain from the sale of excess property in the prior year quarter reflects the removal of insurance gains related to Hurricane Ida adjusted EBITDA for the current quarter compared to prior year reflects higher results for both services and small-scale fabrication, offset by the prior year results benefiting from our canceled large fabrication projects.

2024 年第一季合併調整後 EBITDA 為 370 萬美元，與去年同期基本持平。合併調整後 EBITDA 反映了我們造船部門兩個時期的經營績效的剔除。本季也反映了上一季出售多餘財產的收益的消除，反映了與颶風艾達相關的保險收益的消除，本季度調整後的EBITDA 與上年相比，反映出服務業和小型企業的業績更高。

Specifically for the Services division, revenue for the first quarter 2024 was $25.5 million, an increase of 18% compared to the prior year period, primarily due to higher offshore services work including incremental revenue associated with the Spark safety business line services EBITDA for the first quarter 2024 was $3.3 million, up 20% from the prior year period and EBITDA margin was 13.1% for the current quarter compared to 12.9% for the prior year period.

具體來說，服務部門的2024 年第一季營收為2,550 萬美元，比上年同期成長18%，這主要是由於離岸服務工作量增加，其中包括與Spark 安全業務線服務EBITDA 相關的增量營收2024 年季度營收為 330 萬美元，較上年同期成長 20%，本季 EBITDA 利潤率為 13.1%，而上年同期為 12.9%。

For our Fabrication Division, revenue for the first quarter 2024 was $17.1 million, a decrease of $22.5 million from the prior year period, primarily due to the prior year, including the previously mentioned benefit of our large fabrication project fabrication adjusted EBITDA, which excludes a gain of $2.9 million from the previously mentioned property sale with $2.5 million for the first quarter, adjusted EBITDA was down only modestly from the prior year period despite the contribution of the large fabrication project and last year's results as our first quarter 2024 benefited from growth in small-scale fabrication, strong execution and a more favorable project margin mix for our corporate division, EBITDA was a loss of $2.1 million for the first quarter compared to a loss of $2 million in the prior year period.

對於我們的製造部門，2024 年第一季的收入為1710 萬美元，比上年同期減少2250 萬美元，這主要是由於上年，包括前面提到的我們的大型製造項目製造調整後EBITDA 的收益，其中不包括前面提到的第一季250 萬美元的房地產銷售收益為290 萬美元，儘管大型製造項目和去年的業績做出了貢獻，但調整後的EBITDA 僅比去年同期小幅下降，因為我們2024 年第一季受益於由於我們公司部門的小規模製造、強大的執行力和更有利的專案利潤率組合，第一季 EBITDA 虧損 210 萬美元，而去年同期虧損 200 萬美元。

With respect to our liquidity, we ended the first quarter with cash and investments balance of just over $61 million, up $13.4 million from December 31, owing to our solid first quarter operating results and the proceeds from our property sale at March 31. Our debt obligation associated with the resolution of our MPSV litigation remains at $20 million with annual payments of approximately $1.7 million beginning on December 31st, 2020 for our cash balance and the long duration of our debt puts us in a strong liquidity position and provides us ample flexibility to pursue our growth objectives.

就我們的流動性而言，由於我們穩健的第一季營運表現以及3 月31 日的房產銷售收益，我們第一季末的現金和投資餘額略高於6,100 萬美元，比12 月31 日增加了1340 萬美元。我們與MPSV 訴訟解決相關的債務義務仍為2000 萬美元，從2020 年12 月31 日開始每年支付約170 萬美元用於我們的現金餘額，而且我們的債務期限較長，使我們處於強大的流動性狀況，並為我們提供了充足的資金靈活地追求我們的成長目標。

Turning to our earnings outlook for 2024. We are reiterating our previously provided segment full year guidance for our Services segment. We expect 2024 EBITDA of approximately $14 million, driven primarily by growth in our Spark safety business line.

轉向我們對 2024 年的獲利展望。我們重申先前為服務部門提供的全年指引。我們預計 2024 年 EBITDA 約為 1,400 萬美元，這主要是由 Spark 安全業務線的成長所推動的。

For our fabrication segment, we expect 2024 adjusted EBITDA of approximately $8 million, which includes year-over-year growth in our small-scale fabrication business, but excludes the potential benefit of any large project award. Our adjusted EBITDA forecast excludes the gain from the previously mentioned property sale and for our corporate segment we expect an EBITDA loss for 2024 of approximately $8 million.

對於我們的製造部門，我們預計 2024 年調整後 EBITDA 約為 800 萬美元，其中包括我們小型製造業務的同比增長，但不包括任何大型項目授予的潛在收益。我們調整後的 EBITDA 預測不包括先前提到的房地產銷售收益，對於我們的企業部門，我們預計 2024 年 EBITDA 損失約為 800 萬美元。

Our capital spending plans for 2024 are also consistent with our previous expectations for full year. Capital expenditures anticipated to be approximately $5 million to $5.5 million, of which approximately $3.5 million relates to upgrades to our home facilities and investments in more technologically advanced equipment, and the remainder reflects our more typical maintenance CapEx requirements.

我們2024年的資本支出計畫也與我們先前對全年的預期一致。資本支出預計約為 500 萬至 550 萬美元，其中約 350 萬美元用於升級我們的家庭設施和投資技術更先進的設備，其餘部分反映我們更典型的維護資本支出要求。

Our capital expenditures for 2024 will be partially supplemented by insurance proceeds of $2 million received in January 2024 associated with damage previously caused by Hurricane Ida.

我們 2024 年的資本支出將由 2024 年 1 月收到的與颶風艾達造成的損害相關的 200 萬美元保險收益進行部分補充。

Lastly, during the first quarter, we repurchased approximately 61,000 shares of our common stock for approximately $300,000 under our share repurchase program commenced in mid-December. And at March 31, we had remaining authorization to purchase [4.6 million] of our common stock under the program This concludes our prepared remarks.

最後，在第一季度，我們根據 12 月中旬啟動的股票回購計劃，以約 30 萬美元的價格回購了約 61,000 股普通股。截至 3 月 31 日，我們擁有根據該計劃購買 [460 萬] 股普通股的剩餘授權。

Operator, you may now open the line for questions.

接線員，現在可以撥打電話提問。

(Operator Instructions)

（操作員說明）

Tom Spiro, Spiro Capital.

湯姆·斯皮羅（Tom Spiro），斯皮羅資本。

Good afternoon.

午安.

Good afternoon, Tom.

下午好，湯姆。

Richard, you often mentioned that your view and how location gives us a strategic advantage. And it wasn't clear to me whether you mean a strategic advantage just for large said, projects are also small small-scale fab job or even the service businesses where where's the advantage?

理查德，您經常提到您的觀點以及地理位置如何為我們帶來策略優勢。我不清楚你是否指的是大型專案的策略優勢，專案也是小型晶圓廠工作，甚至是服務業務，優勢在哪裡？

Well, I think it's all of the the the airlines that are the items that you outlined. It's both small-scale fabrication, obviously, our services business is benefited from the close proximity of where we fabricate and ship our ship, our fabricated materials. But what we're alluding to is mostly on the larger fab fabrication projects, especially around the water access and close proximity to lock in some of these large capital projects that we've talked about in Louisiana and Texas.

嗯，我認為所有航空公司都是您所概述的項目。顯然，這都是小規模的製造，我們的服務業務受益於我們製造和運輸船舶、製造材料的地點的接近。但我們所指的主要是大型晶圓廠製造項目，特別是在供水和靠近鎖定我們在路易斯安那州和德克薩斯州討論過的一些大型資本項目的地方。

Sure, has helped bank share and on the services side, we seem to be doing quite well offshore with our traditional customers. And that's that's great. No complaints here. Are we making any progress in expanding into the onshore opportunities?

當然，這有助於銀行分享，在服務方面，我們似乎在離岸傳統客戶方面做得很好。那就太好了。這裡沒有抱怨。我們在拓展境內機會方面是否取得了任何進展？

We are. But we're being strategic and concerted in that effort and time because of the the the challenges with getting labor. So what we're looking for are opportunities where we can get substantial amount of scale and consistency of work rather than a project-specific work. We're buoyed by the volatility of cycles of projects going up and down. And so we are being more conservative and our extent expansion efforts on onshore.

我們是。但由於獲得勞動力方面存在挑戰，我們在這項努力和時間上採取了策略性和協調一致的態度。因此，我們正在尋找的是能夠獲得大量規模和一致性工作的機會，而不是特定於專案的工作。我們對專案週期的波動性感到鼓舞。因此，我們在陸上的擴張努力上更加保守。

Is labor as difficult an issue today as it was a year ago?

今天的勞動力問題和一年前一樣困難嗎？

Absolutely. I think I think the labor today is probably as difficult or maybe even worse than it was a year ago.

絕對地。我想我認為今天的分娩可能和一年前一樣困難，甚至可能更糟。

While while I had just a couple of housekeeping items on ships, just to be sure I understand we've now received final acceptance of all the vessels. They're all they're all they've all been finally accepted, is that right?

雖然我在船上只有一些家務用品，但為了確保我明白，我們現在已經收到了所有船隻的最終驗收。他們就是他們所有，他們終於被接受了，對嗎？

That's correct.

這是正確的。

That's great. And end of the warranty claims Have any been filed or are we aware of any warranty claims that are pending?

那太棒了。保固索賠的結束 是否已提出任何保固索賠，或者我們是否知道任何懸而未決的保固索賠？

No, nothing material down.

不，沒有任何實質內容。

Okay. Okay. This is most helpful. Thanks a lot. Thank you.

好的。好的。這是最有幫助的。多謝。謝謝。

(Operator Instructions) I'm showing no further questions in the queue. I'd like to hand the call back over to Richard for any closing comments.

（操作員說明）我在隊列中沒有顯示任何其他問題。我想將電話轉回理查德以徵求結束意見。

Yes. 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 golf and success for those on the call. Thanks again for your interest in Gulf Island. During the second quarter, we'll be attending the Sidoti MicroCap Conference on May 9, in the Northland Investor Conference on June 25. If you if we are not able to connect at either these events, I look forward to speaking with you on our next conference call and updating you on our progress. Be safe and take care.

是的。最後，我要感謝我們的客戶和股東的持續支持，並表彰我們的員工，他們繼續表現出對高爾夫的承諾，並為電話會議的人員帶來成功。再次感謝您對海灣島的關注。在第二季度，我們將參加 5 月 9 日的 Sidoti MicroCap 會議和 6 月 25 日的 Northland 投資者會議。如果我們無法在這些活動中取得聯繫，我期待在下一次電話會議上與您交談並向您通報我們的最新進展。注意安全並小心。

Thank you. This does conclude the call filing conference call. Thank you and good.

謝謝。電話歸檔電話會議到此結束。謝謝你，很好。