Philly Shipyard (PHLY) Q2 2024 earnings summary

Executive summary

• Entered agreement to sell Philly Shipyard, Inc. to Hanwha for $100M, reflecting PSI as discontinued operations from Q2 2024.

• Order backlog at $1,520.1M as of June 30, 2024, with deliveries into 2027.

• Workforce at 1,695, with 139 apprentices; awarded $800K grant for apprenticeship program in July 2024.

• Ongoing impacts from COVID-19, labor shortages, and supply chain disruptions affecting productivity and costs.

Financial highlights

• Q2 2024 operating revenue from discontinued operations: $83.6M (down from $139.7M in Q2 2023).

• Q2 2024 EBITDA from discontinued operations: -$7.1M (improved from -$13.1M in Q2 2023).

• Q2 2024 net loss after tax from discontinued operations: $8.3M (improved from $13.5M loss in Q2 2023).

• H1 2024 operating revenue: $201.9M (down from $253.5M in H1 2023); H1 2024 EBITDA: -$10.7M (improved from -$31.2M in H1 2023).

• Cash and cash equivalents from discontinued operations: $65.4M at June 30, 2024 (excluding $45M restricted cash).

Outlook and guidance

• Order backlog provides pipeline visibility into 2027, with eight vessels in the order book.

• Continuous improvement program expected to enhance performance on future NSMV vessels.

• Board to consider alternative uses of sale proceeds, including potential dividend, after transaction closes.