NEWS RELEASE
For further information contact:
Kerry J. Chauvin Joseph P. Gallagher,III
Chief Executive Officer Chief Financial Officer
(504) 872-2100 (504) 872-2100
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FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 30, 1997
GULF ISLAND FABRICATION, INC
REPORTS FIRST QUARTER 1997 EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI)
today reported pro forma net income after taxes of $2.2 million
($5.57 per share) on revenue of $30.2 million for its first
quarter ended March 31, 1997, compared to pro forma net income
after taxes of $485,000 ($.12 per share) on revenues of $19.5
million for the first quarter of 1996.
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 the entire quarter. The company converted from
S Corporation status on April 4, 1997.
The company completed its initial public offering on April
9, 1997, in which 2.3 million shares were issued. The shares
outstanding for the remaining quarters of 1997 will approximate
5.9 million.
Excluding the results of its subsidiary, Dolphin Services,
Inc., which was purchased on Jan. 2, 1997, the parent company
had net income of $1.8 million ($.46 per share) on revenues of
$22.6 million for the quarter. At March 31, the consolidated
companies had a revenue backlog of $87 million and a labor
backlog of 1.3 million manhours left to work.
Kerry Chauvin, Gulf Island Fabrication, Inc.'s president
and chief executive officer noted, "The increase in our first
quarter earnings this year over last year's first quarter
results primarily from strong improvement in direct labor
pricing and the greater volume of direct labor hours worked.
The steady improvement of our performance over the past several
quarters, however, has been not only because of higher pricing
and volume but also because of our on-going internal focus on
productivity increases established through capital
improvements, equipment purchases and labor-saving procedures
which contribute to higher revenues received per actual direct
labor hour expended. We are also continuing to integrate the
Dolphin companies into Gulf Island Fabrication and a portion of
Dolphin's labor is being redeployed into Gulf Island
Fabrication's more profitable fabrication services."
Gulf Island Fabrication 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.
Consolidated Statement of Income
(Unaudited)
(In thousands, except per share amounts)
First Quarter Ended First Quarter Ended
March 31, 1997 March 31,1996
---------------------------------- -------------------
Gulf Island Dolphin Consolidated Gulf Island
--------- ------- ------------
Revenue $ 22,589 $ 7,635 $ 30,224 $ 19,504
Cost of revenue
(excluding
depreciation) 18232 6516 24748 17827
Depreciation 495 115 610 331
Gross profit 3862 1004 4866 1346
General and administrative
expenses 708 295 1003 512
Operating income 3154 709 3863 834
Interest expense, net 226 10 236 52
Net income $ 2,928 $ 699 $ 3,627 $ 782
Pro forma provision
income taxes/a 1113 266 1379 297
Pro forma net
income/a $ 1,815 $ 433 $ 2,248 $ 485
Pro forma net income
per share/a $ 0.46 $ 0.11 $ 0.57 $ 0.12
Average common
shares/b 3927 3927 3927 3927
/a: Pro forma information gives effect to federal and state
income taxes as if the Company had been a C Corporation for tax
purposes during the entire first quarter.
/b: The Company completed its initial public offering on April
9, 1997 and the shares outstanding for the remaining quarters
of 1997 will approximate 5.9 million.