Gulf Island Fabrication Inc. (NASDAQ:GIFI) Q1 2018 Earnings Conference Call - Final Transcript

Apr 27, 2018 • 10:00 am ET

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Gulf Island Fabrication Inc. (NASDAQ:GIFI) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning and welcome ladies and gentlemen to the Q1 2018 Gulf Island Fabrication Incorporated Earnings Conference Call. All participants will be in a listen-only mode for the duration of the presentation. This call is being recorded.

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

Executive
Cindi Cook

Thank you, Lauren. Good morning. I would like to welcome everyone to Gulf Island Fabrication's 2018 first quarter teleconference. A copy of the press release of our financial results for the quarter is available on our website at gulfisland.com. A replay of today's call will be available on our website later today.

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 Form 10-K and subsequent SEC filings.

Today, we have Mr. Kirk Meche, President, CEO and Director; Mr. David Schorlemer, our Executive Vice President and Chief Financial Officer; and Mr. Todd Ladd, our Executive Vice President and Chief Operating Officer. Mr. Meche?

Executive
Kirk Meche

Thank you, Cindi and good morning to all of our listeners. I want to hit a few highlights of the quarter before David reports on financial results for the quarter. On April 20, 2018, we completed the sale of our Texas South Yard located in the Ingleside for $55 million to a subsidiary of Buckeye Partners. This is only one step in our strategic planning to improve our liquidity as we transition into diverse areas within our business sectors. Our North Yard in Texas remains for sale and we have several interested parties visit this location within the last several months, but currently do not have any buying offers. During the first quarter of this year, we received a contract from the Navy for its T-ATS vessel program, which is subject to a bid process. The award is for one vessel and the contract has options for seven additional vessels. Also during this first quarter of the year, we were awarded a MET tower for the US offshore wind industry. While this is not substantial as it relates to revenue, it does show Gulf Island's continued efforts to diversify by being selected for a second US offshore wind project. In addition, as previously stated in our last quarter's conference call, we have a nonbinding Letter of Intent with EEW as it relates to its Letter of Intent with their customer for structures off the coast of Maryland. Along with this LOI, we have executed a team agreement with EEW for future US offshore wind projects.

Now on to matters as it relates to our Shipyard sector and the construction and delivery of two MPSVs for a particular customer. As previously reported, we received a purported termination letter from our customer, which we dispute. Pending resolution of the dispute, all work has been