NEWS RELEASE
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
THURSDAY, OCTOBER 23, 1997
GULF ISLAND FABRICATION, INC.
REPORTS THIRD QUARTER EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported
pro forma net income of $3.7 million ($.31 per share) on revenue of $36.3
million for its third quarter ended September 30, 1997, compared to pro forma
net income of $1.5 million ($.19 per share) on revenues of $19.2 million for the
third quarter of 1996. Pro forma net income for the first nine months of 1997
was $9.2 million ($.89 per share) on revenue of $101.6 million, compared to pro
forma net income of $3.2 million ($.41 per share) on revenues of $60.4 million
for the first nine months 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 all the periods of 1996 and 1997. 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. At September 30, 1997, the
company had a revenue backlog of $92.8 million and a labor backlog of 1.4
million manhours remaining to be worked.
On October 6, 1997 the Board of Directors declared a two-for-one stock
split of the company's common stock to be effected in the form of a stock
dividend for shareholders of record at the close of business on October 21,
1997. Per share data for all periods presented has been adjusted to reflect
this stock split.
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.
- 15 -
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
(in thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
1996 1997 1996 1997
----------- ------------ ----------- ------------
Revenue $ 19,168 $ 36,311 $ 60,376 $ 101,556
Cost of revenue 16,039 29,325 53,275 83,282
Depreciation ----------- ------------ ----------- ------------
Gross profit 3,129 6,986 7,101 18,274
General and administrative expense 567 1,115 1,567 3,262
----------- ------------ ----------- ------------
Operating income 2,562 5,871 5,534 15,012
Interest expense (income), net 104 (61) 297 212
----------- ------------ ----------- ------------
Income before income taxes 2,458 5,932 5,237 14,800
Provision for income taxes - 2,234 - 4,210
Cumulative deferred tax provision* - - 1,144
----------- ------------ ----------- ------------
Net income $ 2,458 $ 3,698 $ 5,237 $ 9,446
=========== ============ =========== ============
Pro forma data:**
Income before income taxes $ 2,458 $ 5,932 $ 5,237 $ 14,800
Provision for income taxes - 2,234 - 4,210
Pro forma provision for income taxes
related to operations as S Corporation 934 - 1,990 1,379
----------- ------------ ----------- ------------
Pro forma net income $ 1,524 $ 3,698 $ 3,247 $ 9,211
=========== ============ =========== ============
Pro forma per share data (Notes 4 and 6):
Pro forma net income per share $ 0.19 $ 0.31 $ 0.41 $ 0.89
=========== ============ =========== ============
Pro forma weighted average common shares*** 7,854,000 11,742,000 7,854,000 10,370,000
=========== ============ =========== ============
* Cumulative deferred tax provision charged upon election on April 4, 1997
to convert from S Corporation status to C Corporation status.
** 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.
*** Includes the initial public offering completed on April 9, 1997 and
retroactively restates the two-for-one stock split declared by the
Board of Directors on October 6, 1997 for shareholders of record on
October 21, 1997.