Exhibit 99.1
Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--Feb. 4, 2004--Gulf Island
Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $6.2
million ($.52 diluted EPS) on revenue of $56.2 million for its fourth
quarter ended December 31, 2003, compared to net income of $3.4
million ($.29 diluted EPS) on revenue of $42.4 million for the fourth
quarter ended December 31, 2002. Net income for the twelve months
ended December 31, 2003 was $15.8 million ($1.33 diluted EPS) on
revenue of $203.7 million, compared to net income of $10.3 million
($.87 diluted EPS), before a cumulative effect of change in accounting
principle, on revenue of $142.9 million for the twelve months ended
December 31, 2002.
At December 31, 2003, the Company had a revenue backlog of $99.2
million and a labor backlog of approximately 1.3 million man-hours
remaining to work, which consist of work remaining at December 31,
2003 and commitments received since December 31, 2003.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
December December
31, 31,
2003 2002
-------- --------
Cash and short-term investments $22,050 $24,450
Total current assets 81,407 65,032
Property, plant and equipment, at cost,net 58,259 47,471
Total assets 140,316 113,148
Total current liabilities 20,696 12,705
Debt 0 0
Shareholders' equity 111,591 94,976
Total liabilities and shareholders' equity 140,316 113,148
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 Twelve Months Ended
December 31, December 31,
----------------- -------------------
2003 2002 2003 2002
-------- -------- --------- ---------
Revenue $56,162 $42,365 $203,667 $142,919
Cost of revenue 45,135 36,139 174,765 123,643
-------- -------- --------- ---------
Gross profit 11,027 6,226 28,902 19,276
General and administrative
expenses 1,600 1,202 5,168 4,231
-------- -------- --------- ---------
Operating income 9,427 5,024 23,734 15,045
Other income (expense):
Interest expense (10) (7) (40) (39)
Interest income 44 132 214 611
Other - (6) 19 52
-------- -------- --------- ---------
34 119 193 624
-------- -------- --------- ---------
Income before income taxes 9,461 5,143 23,927 15,669
Income taxes 3,243 1,753 8,135 5,332
-------- -------- --------- ---------
Net income before cumulative
effect of
change in accounting principle 6,218 3,390 15,792 10,337
Cumulative effect of change in
accounting principle (1) - - - (4,765)
-------- -------- --------- ---------
Net income $6,218 $3,390 $15,792 $5,572
======== ======== ========= =========
Per share data:
Basic earnings (loss) per share:
Net income before cumulative
effect of change in accounting
principle $0.53 $0.29 $1.34 $0.88
Cumulative effect of change in
accounting principle (1) - - - (0.41)
-------- -------- --------- ---------
Basic earnings (loss) per share $0.53 $0.29 $1.34 $0.47
======== ======== ========= =========
Diluted income (loss) per share: (2)
Net income before cumulative
effect of change in accounting
principle $0.52 $0.29 $1.33 $0.87
Cumulative effect of change in
accounting principle (1) - - - (0.40)
-------- -------- --------- ---------
Diluted earnings (loss) per
share $0.52 $0.29 $1.33 $0.47
======== ======== ========= =========
Weighted-average shares 11,793 11,745 11,779 11,731
Effect of dilutive
securities: employee
stock options 108 80 116 86
-------- -------- --------- ---------
Adjusted weighted-average
shares (2) 11,901 11,825 11,895 11,817
======== ======== ========= =========
Depreciation and amortization
included in expense above $1,437 $1,126 $5,324 $4,565
======== ======== ========= =========
(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.
Kerry J. Chauvin, 985-872-2100
or
Joseph "Duke" Gallagher, 985-872-2100