Exhibit 99.1
Gulf Island Fabrication, Inc. Reports Second Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--July 23, 2003--Gulf Island
Fabrication, Inc. (NASDAQ:GIFI) today reported net income of $2.3
million ($.20 diluted EPS) on revenue of $44.6 million for its second
quarter ended June 30, 2003, compared to net income of $1.7 million
($.15 diluted EPS) on revenue of $33.1 million for the second quarter
ended June 30, 2002. Net income for the first six months of 2003 was
$5.5 million ($.47 diluted EPS) on revenue of $84.2 million, compared
to net income of $3.1 million ($.26 diluted EPS), before a cumulative
effect of change in accounting principle, on revenue of $60.3 million
for the first six months of 2002.
At June 30, 2003, the company had a revenue backlog of $98.6
million and a labor backlog of approximately 1.2 million man-hours
remaining to work.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
June 30, December 31,
2003 2002
---------- ------------
Cash and short-term investments $13,765 $24,450
Total current assets 67,259 65,032
Property, plant and equipment, at cost, net 58,921 47,471
Total assets 126,826 113,148
Total current liabilities 19,682 12,705
Debt 0 0
Shareholders' equity 101,063 94,976
Total liabilities and shareholders' equity 126,826 113,148
Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a
leading fabricator of offshore drilling and production platforms,
offshore living quarters 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, and steel
warehousing and sales.
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,
------------------ ----------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenue $44,603 $33,053 $84,176 $60,299
Cost of revenue 39,959 29,573 73,558 54,021
-------- -------- -------- --------
Gross profit 4,644 3,480 10,618 6,278
General and administrative expenses 1,156 1,018 2,334 1,926
-------- -------- -------- --------
Operating income 3,488 2,462 8,284 4,352
Other income (expense):
Interest expense (14) (9) (23) (18)
Interest income 49 168 131 328
Other 1 - 4 57
-------- -------- -------- --------
36 159 112 367
-------- -------- -------- --------
Income before income taxes 3,524 2,621 8,396 4,719
Income taxes 1,203 892 2,855 1,605
-------- -------- -------- --------
Net income before cumulative effect
of change in accounting principle 2,321 1,729 5,541 3,114
Cumulative effect of change in
accounting principle (1) - - - (4,765)
-------- -------- -------- --------
Net income (loss) $2,321 $1,729 $5,541 $(1,651)
======== ======== ======== ========
Per share data:
Basic earnings (loss) per share:
Net income before cumulative effect
of change in accounting principle $0.20 $0.15 $0.47 $0.27
Cumulative effect of change in
accounting principle (1) - - - (0.41)
-------- -------- -------- --------
Basic earnings (loss) per share $0.20 $0.15 $0.47 $(0.14)
======== ======== ======== ========
Diluted income (loss) per share:(2)
Net income before cumulative effect
of change in accounting principle $0.20 $0.15 $0.47 $0.26
Cumulative effect of change in
accounting principle (1) - - - (0.40)
-------- -------- -------- --------
Diluted earnings (loss) per share $0.20 $0.15 $0.47 $(0.14)
======== ======== ======== ========
Weighted-average shares 11,778 11,728 11,768 11,718
Effect of dilutive
securities: employee stock
options 122 126 128 96
-------- -------- -------- --------
Adjusted weighted-average
shares (2) 11,900 11,854 11,896 11,814
======== ======== ======== ========
Depreciation and amortization
included in expense above $1,299 $1,147 $2,534 $2,289
======== ======== ======== ========
(1) Included in the first quarter ended March 31, 2002, the Company
recorded a $4.8 million non-cash charge for the impairment of
goodwill resulting from the adoption of Statement of Financial
Accounting Standards Board No.142, "Goodwill and Other Intangible
Assets".
(2) 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.
CONTACT: Gulf Island Fabrication, Inc., Houma
Kerry J. Chauvin or Joseph "Duke" Gallagher, 985-872-2100
http://www.gulfisland.com