Exhibit 99.1
Gulf Island Fabrication, Inc. Reports Third Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--Oct. 22, 2003--Gulf Island
Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $4.0
million ($.34 diluted EPS) on revenue of $63.3 million for its third
quarter ended September 30, 2003, compared to net income of $3.8
million ($.32 diluted EPS) on revenue of $40.3 million for the third
quarter ended September 30, 2002. Net income for the first nine months
of 2003 was $9.6 million ($.81 diluted EPS) on revenue of $147.5
million, compared to net income of $6.9 million ($.59 diluted EPS),
before a cumulative effect of change in accounting principle, on
revenue of $100.6 million for the first nine months of 2002.
At September 30, 2003, the company had a revenue backlog of $75.5
million and a labor backlog of approximately 900 thousand man-hours
remaining to work.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
September 30, December 31,
2003 2002
------------ ------------
Cash and short-term investments $ 19,574 $ 24,450
Total current assets 80,925 65,032
Property, plant and equipment, at cost, net 58,855 47,471
Total assets 140,427 113,148
Total current liabilities 29,214 12,705
Debt 0 0
Shareholders' equity 105,181 94,976
Total liabilities and shareholders' equity 140,427 113,148
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 Nine Months Ended
September 30, September 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenue $ 63,329 $ 40,255 $147,505 $100,554
Cost of revenue 56,072 33,483 129,630 87,504
-------- -------- -------- --------
Gross profit 7,257 6,772 17,875 13,050
General and administrative
expenses 1,234 1,103 3,568 3,029
-------- -------- -------- --------
Operating income 6,023 5,669 14,307 10,021
Other income (expense):
Interest expense (7) (15) (30) (32)
Interest income 39 152 170 479
Other 15 1 19 58
-------- -------- -------- --------
47 138 159 505
-------- -------- -------- --------
Income before income taxes 6,070 5,807 14,466 10,526
Income taxes 2,037 1,974 4,892 3,579
-------- -------- -------- --------
Net income before cumulative
effect of change in
accounting principle 4,033 3,833 9,574 6,947
Cumulative effect of change in
accounting principle (1) - - - (4,765)
-------- -------- -------- --------
Net income $ 4,033 $ 3,833 $ 9,574 $ 2,182
======== ======== ======== ========
Per share data:
Basic earnings (loss) per
share:
Net income before
cumulative effect of
change in accounting
principle $ 0.34 $ 0.33 $ 0.81 $ 0.59
Cumulative effect of
change in accounting
principle (1) - - - (0.41)
-------- -------- -------- --------
Basic earnings (loss)
per share $ 0.34 $ 0.33 $ 0.81 $ 0.19
======== ======== ======== ========
Diluted income (loss) per
share: (2)
Net income before
cumulative effect of
change in accounting
principle $ 0.34 $ 0.32 $ 0.81 $ 0.59
Cumulative effect of
change in accounting
principle (1) - - - (0.40)
-------- -------- -------- --------
Diluted earnings
(loss) per share $ 0.34 $ 0.32 $ 0.81 $ 0.18
======== ======== ======== ========
Weighted-average
shares 11,787 11,744 11,774 11,727
Effect of dilutive
securities: employee
stock options 100 71 119 87
-------- -------- -------- --------
Adjusted weighted-average
shares (2) 11,887 11,815 11,893 11,814
======== ======== ======== ========
Depreciation and amortization
included in expense above $ 1,353 $ 1,150 $ 3,887 $ 3,439
======== ======== ======== ========
(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, 985-872-2100
or
Joseph "Duke" Gallagher, 985-872-2100