EXHIBIT 99.1
Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--Feb. 1, 2006--Gulf Island Fabrication, Inc.
(NASDAQ: GIFI) today reported net income of $2.7 million ($.22 diluted EPS) on
revenue of $41.4 million for its fourth quarter ended December 31, 2005,
compared to net income of $2.9 million ($.23 diluted EPS) on revenue of $45.9
million for the fourth quarter ended December 31, 2004. Net income for the
twelve months ended December 31, 2005 was $13.0 million ($1.05 diluted EPS) on
revenue of $188.5 million, compared to net income of $12.0 million ($.99 diluted
EPS) on revenue of $173.9 million for the twelve months ended December 31, 2004.
The company had a revenue backlog of $114.6 million and a labor backlog of
approximately 1.4 million man-hours remaining to work, which consist of work
remaining at December 31, 2005 and commitments received since December 31, 2005.
This backlog excludes contracts assumed in the Gulf Marine Fabricators asset
purchase. The Company anticipates that approximately 93% of this backlog will be
completed during the year 2006.
Selected Balance Sheet Information
(in thousands)
December 31, December 31,
2005 2004
------------ ------------
Cash, cash equivalents and short-term
investments $ 35,901 $ 40,397
Total current assets 103,595 91,290
Property, plant and equipment, at cost,
net 59,561 60,346
Total assets 163,806 152,285
Total current liabilities 16,271 16,076
Debt 0 0
Sharholders' equity 138,265 126,584
Total liabilities and shareholders' equity 163,806 152,285
The management of Gulf Island Fabrication, Inc. will hold a conference call
on Wednesday, February 1, 2006, at 9:00 a.m. Central Time (10:00 a.m. Eastern
Time) to discuss the Company's financial results for the quarter ended December
31, 2005. The call is accessible by webcast (www.gulfisland.com) through CCBN
and by dialing 1.800.946.0741. A digital rebroadcast of the call is available
two hours after the call and ending February 10, 2006 by dialing 1.888.203.1112,
replay passcode: 2962496.
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 Twelve Months
Ended Ended
December 31, December 31,
----------------- -------------------
2005 2004 2005 2004
-------- -------- --------- ---------
Revenue $41,426 $45,888 $188,545 $173,878
Cost of revenue 36,973 40,740 164,548 151,205
-------- -------- --------- ---------
Gross profit 4,453 5,148 23,997 22,673
General and administrative
expenses 1,303 1,055 5,681 4,818
-------- -------- --------- ---------
Operating income 3,150 4,093 18,316 17,855
Other income (expense):
Interest expense (10) (111) (55) (147)
Interest income 440 270 1,395 625
Other (455) (72) (460) (21)
-------- -------- --------- ---------
(25) 87 880 457
-------- -------- --------- ---------
Income before income taxes 3,125 4,180 19,196 18,312
Income taxes 423 1,324 6,209 6,270
-------- -------- --------- ---------
Net income $2,702 $2,856 $12,987 $12,042
======== ======== ========= =========
Per share data:
Basic earnings (loss) per share $0.22 $0.24 $1.06 $1.00
======== ======== ========= =========
Diluted earnings (loss) per
share $0.22 $0.23 $1.05 $0.99
======== ======== ========= =========
Weighted-average shares 12,275 12,150 12,242 12,054
Effect of dilutive securities:
employee stock options 172 126 134 134
-------- -------- --------- ---------
Adjusted weighted-average shares
(1) 12,447 12,276 12,376 12,188
======== ======== ========= =========
Depreciation and amortization
included in expense above $1,574 $1,545 $6,279 $6,041
======== ======== ========= =========
Cash dividend declared per
common share $0.075 $0.050 $0.300 $0.200
======== ======== ========= =========
(1) 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