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
THURSDAY, JULY 22, 1999
GULF ISLAND FABRICATION, INC.
REPORTS SECOND QUARTER EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net
income of $2.0 million ($.17 diluted EPS) on revenue of $28.1 million for its
second quarter ended June 30, 1999, compared to net income of $5.2 million
($.44 diluted EPS) on revenue of $50.6 million for the second quarter ended
June 30, 1998. Net income for the first six months of 1999 was $3.9 million
($.33 diluted EPS) on revenue of $58.4 million, compared to net income of $9.4
million ($.80 diluted EPS) on revenue of $97.6 million for the first six months
of 1998.
At June 30, 1999, the company had a revenue backlog of $58.7 million and a
labor backlog of approximately one million man-hours 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, manufacture and repair of pressure vessels, steel
warehousing and sales, and the fabrication of offshore living quarters.
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- -----------------------
1999 1998 1999 1998
-------- --------- --------- ---------
Revenue $ 28,106 $ 50,641 $ 58,435 $ 97,555
Cost of revenue 24,093 40,874 50,196 79,477
-------- --------- --------- ---------
Gross profit 4,013 9,767 8,239 18,078
General and administrative expenses 989 1,460 2,271 3,074
-------- --------- --------- ---------
Operating income 3,024 8,307 5,968 15,004
Other expense (income):
Interest expense 14 11 35 53
Interest income (166) (22) (267) (89)
Other - net 39 4 (10) 4
-------- --------- --------- ---------
(113) (7) (242) (32)
-------- --------- --------- ---------
Income before income taxes 3,137 8,314 6,210 15,036
Income taxes 1,182 3,163 2,330 5,652
-------- --------- --------- ---------
Net income $ 1,955 $ 5,151 $ 3,880 $ 9,384
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Per share data:
Basic earnings per share $ 0.17 $ 0.44 $ 0.33 $ 0.81
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Diluted earnings per share /(1)/ $ 0.17 $ 0.44 $ 0.33 $ 0.80
======== ========= ========= =========
Weighted-average shares 11,638 11,632 11,638 11,622
======== ========= ========= =========
Adjusted weighted-average shares /(1)/ 11,707 11,721 11,681 11,719
======== ========= ========= =========
Depreciation and amortization
included in expense above $ 1,251 $ 1,037 $ 2,452 $ 2,030
======== ========= ========= =========
(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.