EXHIBIT 99.1
Gulf Island Fabrication, Inc. Reports Third Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--Oct. 27, 2004--Gulf Island
Fabrication, Inc. (NASDAQ:GIFI) today reported net income of $1.7
million ($.14 diluted EPS) on revenue of $35.8 million for its third
quarter ended September 30, 2004, compared to net income of $4.0
million ($.34 diluted EPS) on revenue of $63.3 million for the third
quarter ended September 30, 2003. Net income for the first nine months
of 2004 was $9.2 million ($.76 diluted EPS) on revenue of $128.0
million, compared to net income of $9.6 million ($.81 diluted EPS) on
revenue of $147.5 million for the first nine months of 2003.
The company had a revenue backlog of $59.1 million and a labor
backlog of approximately 727 thousand man-hours remaining to work,
which consist of work remaining at September 30, 2004 and commitments
received since September 30, 2004.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
September 30, December 31,
2004 2003
------------ -----------
Cash and short-term investments $ 45,094 $ 22,050
Total current assets 85,916 81,407
Property, plant and equipment, at cost, net 60,845 58,259
Total assets 147,406 140,316
Total current liabilities 14,292 20,696
Debt 0 0
Shareholders' equity 124,361 111,591
Total liabilities and shareholders' equity 147,406 140,316
The management of Gulf Island Fabrication, Inc. will hold a
conference call on Thursday, October 28, 2004, at 9:00 a.m. Central
Time (10:00 a.m. Eastern Time) to discuss the Company's financial
results for the quarter ended September 30, 2004. The call is
accessible by webcast (www.gulfisland.com) through CCBN and by dialing
1.800.289.0504. A digital rebroadcast of the call is available two
hours after the call and ending November 4, 2004 by dialing
1.888.203.1112, replay passcode: 958119.
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,
------------------ -------------------
2004 2003 2004 2003
--------- ------- --------- --------
Revenue $ 35,753 $63,329 $ 127,990 $147,505
Cost of revenue 32,060 56,072 110,465 129,630
--------- ------- --------- --------
Gross profit 3,693 7,257 17,525 17,875
General and administrative
expenses 1,197 1,234 3,763 3,568
--------- ------- --------- --------
Operating income 2,496 6,023 13,762 14,307
Other income (expense):
Interest expense (9) (7) (36) (30)
Interest income 168 39 355 170
Other 4 15 51 19
--------- ------- --------- --------
163 47 370 159
--------- ------- --------- --------
Income before income taxes 2,659 6,070 14,132 14,466
Income taxes 931 2,037 4,946 4,892
--------- ------- --------- --------
Net income $ 1,728 $ 4,033 $ 9,186 $ 9,574
========= ======= ========= ========
Per share data:
Basic earnings per share: $ 0.14 $ 0.34 $ 0.76 $ 0.81
========= ======= ========= ========
Diluted income per share: $ 0.14 $ 0.34 $ 0.76 $ 0.81
========= ======= ========= ========
Weighted-average shares 12,136 11,787 12,022 11,774
Effect of dilutive
securities: employee stock
options 121 100 137 119
--------- ------- --------- --------
Adjusted weighted-average
shares 12,257 11,887 12,159 11,893
========= ======= ========= ========
Depreciation included in
expense above $ 1,525 $ 1,353 $ 4,496 $ 3,887
========= ======= ========= ========
Cash dividend declared per
common share $ 0.05 $ - $ 0.15 $ -
========= ======= ========= ========
CONTACT: Gulf Island Fabrication, Inc.
Kerry J. Chauvin, 985-872-2100
or
Joseph "Duke" Gallagher, 985-872-2100
www.gulfisland.com