EXHIBIT 99.1
NEWS RELEASE
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, OCTOBER 27, 1999
GULF ISLAND FABRICATION, INC.
REPORTS THIRD QUARTER EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported
net income of $1.7 million ($.15 diluted EPS) on revenue of $29.0 million for
its third quarter ended September 30, 1999, compared to net income of $5.3
million ($.45 diluted EPS) on revenue of $51.9 million for the third quarter
ended September 30, 1998. Net income for the first nine months of 1999 was $5.6
million ($.48 diluted EPS) on revenue of $87.5 million, compared to net income
of $14.7 million ($1.25 diluted EPS) on revenue of $149.4 million for the first
nine months of 1998.
At September 30, 1999, the company had a revenue backlog of $52.4 million
and a labor backlog of approximately 800,000 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.
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,
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1999 1998 1999 1998
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Revenue $29,034 $51,866 $87,469 $149,421
Cost of revenue 25,393 42,036 75,589 121,513
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Gross profit 3,641 9,830 11,880 27,908
General and administrative expenses 955 1,458 3,226 4,532
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Operating income 2,686 8,372 8,654 23,376
Other expense (income):
Interest expense 11 19 46 72
Interest income (203) (94) (470) (183)
Other - net 39 - 29 4
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(153) (75) (395) (107)
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Income before income taxes 2,839 8,447 9,049 23,483
Income taxes 1,105 3,135 3,435 8,787
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Net income $ 1,734 $ 5,312 $ 5,614 $ 14,696
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Per share data:
Basic earnings per share $ 0.15 $ 0.46 $ 0.48 $ 1.26
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Diluted earnings per share (1) $ 0.15 $ 0.45 $ 0.48 $ 1.25
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Weighted-average shares 11,638 11,638 11,638 11,627
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Adjusted weighted-average shares (1) 11,715 11,697 11,692 11,711
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Depreciation and amortization
included in expense above $ 1,229 $ 1,060 $ 3,681 $ 3,090
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(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.