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
FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 22, 1998
GULF ISLAND FABRICATION, INC.
REPORTS SECOND QUARTER AND YEAR-TO-DATE 1998 EARNINGS
Houma, LA -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported
pro forma net income of $5.2 million ($.44 diluted EPS) on revenue of $50.6
million for its second quarter ended June 30, 1998, compared to pro forma net
income of $3.3 million ($.28 diluted EPS) on revenues of $35.0 million for the
second quarter of 1997. Pro forma net income for the first six months of 1998
was $9.4 million ($.80 diluted EPS) on revenue of $97.6 million, compared to pro
forma net income of $5.5 million ($.57 diluted EPS) on revenues of $65.2 million
for the first six months of 1997.
Pro forma net income gives effect to federal and state income taxes as if
the company had been a C corporation for tax purposes during all the periods
presented. Pro forma net income excludes the non-recurring charge of $1.1
million to record the cumulative deferred income tax provision upon the election
on April 4, 1997 to convert from S Corporation status to C Corporation status.
On October 6, 1997 the Company's Board of Directors authorized a two-for-one
stock split effected in the form of a stock dividend that was distributed on
October 28, 1997 to shareholders of record on October 21, 1997. All share and
per share data presented reflects the stock split. At June 30, 1998, the
company had a revenue backlog of $84.5 million and a labor backlog of 1.4
million manhours remaining to work.
Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading
fabricator of offshore drilling and production platforms 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, and steel warehousing and sales. With the acquisition of
Southport, Inc., effective January 1, 1998, the Company also provides the
fabrication of living quarters for offshore platforms for the oil and gas
industry.
EXHIBIT 99.1(a)
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- --------------------------------
1998 1997 1998 1997
Revenue $50,641 $35,023 $97,555 $65,247
Cost of revenue 40,874 28,599 79,477 53,958
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Gross profit 9,767 6,424 18,078 11,289
General and administrative expenses 1,460 1,144 3,074 2,146
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Operating income 8,307 5,280 15,004 9,143
Other expense (income):
Interest expense 15 55 57 310
Interest income (22) (16) (89) (35)
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(7) 39 (32) 275
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Income before income taxes 8,314 5,241 15,036 8,868
Income taxes 3,163 1,976 5,652 1,976
Cumulative deferred tax provision(1) 1,144 1,144
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Net income $ 5,151 $ 2,121 $ 9,384 $ 5,748
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Pro forma data: (2)
Income before income taxes $ 8,314 $ 5,241 $15,036 $ 8,868
Income taxes 3,163 1,976 5,652 1,976
Pro forma income taxes related to operations
as S Corporation - - - 1,379
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Pro forma net income $ 5,151 $ 3,265 $ 9,384 $5,513
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Pro forma per share data:
Pro forma basic earnings per share (3) $ 0.44 $ 0.28 $ 0.81 $ 0.57
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Pro forma diluted earnings per share (3) (4) $ 0.44 $ 0.28 $ 0.80 $ 0.57
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Weighted-average shares (3) 11,632 11,477 11,622 9,666
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Adjusted weighted-average shares (3) (4) 11,721 11,516 11,719 9,685
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Depreciation and amortization
included in expense above $ 1,037 $ 692 $ 2,030 $1,339
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(1) Cumulative deferred tax provision charged upon election on April 4, 1997 to
convert from an S Corporation status to a C Corporation Status.
(2) Pro forma information gives effect to federal and state income taxes as if
the Company had been a C Corporation for tax purposes during all periods
presented.
(3) Includes the initial public offering completed on April 9, 1997 and
retroactively restates the two-for-one stock split effective October 28,
1997.
(4) 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.