Philly Shipyard (PHLY) Q3 2024 earnings summary

Executive summary

• Delivered second National Security Multi-Mission Vessel (NSMV), Patriot State, in September 2024; steel cutting for first Matson containership also completed.

• Order backlog at $1,408.0 million as of 30 September 2024, with deliveries scheduled through 2027.

• Entered into a share purchase agreement to sell Philly Shipyard, Inc. to Hanwha; closing expected in Q4 2024.

• Published first Sustainability Report in September 2024.

Financial highlights

• Q3 2024 operating revenue from discontinued operations: $115.2 million (up from $101.8 million in Q3 2023); nine-month revenue: $317.1 million (down from $355.3 million in 2023).

• Q3 2024 EBITDA from discontinued operations: negative $45.5 million (vs. negative $16.9 million in Q3 2023); nine-month EBITDA: negative $56.2 million (vs. negative $48.1 million in 2023).

• Q3 2024 net loss after tax from discontinued operations: $47.0 million (vs. $17.1 million in Q3 2023); nine-month net loss: $63.7 million (vs. $48.7 million in 2023).

• Total assets at 30 September 2024: $232.9 million (down from $294.3 million at 31 December 2023); equity at negative $58.4 million (down from $5.9 million).

• Cash and cash equivalents (unrestricted) at 30 September 2024: $19.4 million (down from $79.5 million at year-end 2023).

Outlook and guidance

• Strong order backlog provides pipeline visibility into 2027; seven vessels in order book.

• Focus on improvement program and leveraging lessons learned from NSMV 1 and 2 for future performance.

• Pursuing new government and commercial shipbuilding opportunities, including replicating the NSMV contract model.

• Five-ship NSMV series and SRIV project are loss-making contracts; full SRIV loss provision recorded in Q3 2024.

• Anticipates need for interim external funding in 2025 to complete backlog.