NEWS RELEASE Exhibit 99.1
For further information contact:
Kerry J. Chauvin Joseph "Duke" Gallagher
Chief Executive Officer Chief Financial Officer
(504) 872-2100 (504) 872-2100
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FOR IMMEDIATE RELEASE
WEDNESDAY, OCTOBER 25, 2000
GULF ISLAND FABRICATION, INC.
REPORTS THIRD QUARTER EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net
income of $1.0 million ($.09 diluted EPS) on revenue of $27.5 million for its
third quarter ended September 30, 2000, compared to net income of $1.7 million
($.15 diluted EPS) on revenue of $29.0 million for the third quarter ended
September 30, 1999. Net income for the first nine months of 2000 was $3.2
million ($.27 diluted EPS) on revenue of $87.7 million, compared to net income
of $5.6 million ($.48 diluted EPS) on revenue of $87.5 million for the first
nine months of 1999.
At September 30, 2000, the company had a revenue backlog of $22.6 million
and a labor backlog of approximately 387 thousand man-hours remaining to work.
Kerry Chauvin, Gulf Island Fabrication, Inc.'s President and C.E.O., expressed
concern about the near term profit margins of the company. He stated, "The
anticipated recovery in the oil and gas industry has yet to materialize in the
late cycle sectors, such as offshore fabrication in which the Company operates,
and this continues to suppress margins on contracts. The Company continues to
maintain a minimum backlog in light of today's offshore fabrication contract
prices. When the market improves, the Company will be poised to profit from
potential future higher margin work."
SELECTED BALANCE SHEET INFORMATION
(in thousands)
September 30, December 31,
2000 1999
---- ----
Cash and short-term investments $22,446 $15,750
Total current assets 50,991 47,154
Property, plant and equipment, at cost,net 42,165 43,664
Total assets 97,368 95,049
Total current liabilities 13,551 15,367
Debt 0 0
Shareholders' equity 80,233 76,618
Total liabilities and shareholders' equity 97,368 95,049
Exhibit 99.1
Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading
fabricator of offshore drilling and production platforms, offshore living
quarters and other specialized structures used in the development and production
of offshore oil and gas reserves. The Company also offers offshore interconnect
pipe hook-up, inshore marine construction, manufacture and repair of pressure
vessels, steel warehousing and sales.
This news release contains forward-looking information that reflects the
Company's current views with respect to future events and financial performance.
No assurances can be given that these events will occur or that such projections
will be achieved and actual results could differ materially from those
projected. A discussion of important factors that could cause actual results to
differ materially from those projected is included in the Company's periodic
reports filed with the Securities and Exchange Commission.
Exhibit 99.1
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------- --------------------------
2000 1999 2000 1999
--------- ----------- ----------- ---------
Revenue $27,544 $29,034 $87,665 $87,469
Cost of revenue 25,159 25,393 80,282 75,589
--------- ----------- ----------- ---------
Gross profit 2,385 3,641 7,383 11,880
General and administrative expenses 1,035 955 3,195 3,226
--------- ----------- ----------- ---------
Operating income 1,350 2,686 4,188 8,654
Other income (expense):
Interest expense (18) (11) (25) (46)
Interest income 373 203 985 470
Other - net (68) (39) (169) (29)
--------- ----------- ----------- ---------
287 153 791 395
--------- ----------- ----------- ---------
Income before income taxes 1,637 2,839 4,979 9,049
Income taxes 617 1,105 1,824 3,435
--------- ----------- ----------- ---------
Net income $ 1,020 $ 1,734 $ 3,155 $ 5,614
========= =========== =========== =========
Per share data:
Basic earnings per share $ 0.09 $ 0.15 $ 0.27 $ 0.48
========= =========== =========== =========
Diluted earnings per share/(1)/ $ 0.09 $ 0.15 $ 0.27 $ 0.48
========= =========== =========== =========
Weighted-average shares 11,680 11,638 11,661 11,638
========= =========== =========== =========
Adjusted weighted-average shares/(1)/ 11,776 11,715 11,750 11,692
========= =========== =========== =========
Depreciation and amortization
included in expense above $ 1,165 $ 1,229 $ 3,564 $ 3,681
========= =========== =========== =========
(1) The calculation of diluted earnings per share assumes that all stock
options are exercised and that the assumed proceeds are used to purchase
shares at the average market price for the period.