Exhibit 99.1
Gulf Island Fabrication, Inc. Reports Second Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--July 26, 2006--Gulf Island
Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $6.0
million ($.43 diluted EPS) on revenue of $90.0 million for its second
quarter ended June 30, 2006, compared to net income of $4.6 million
($.37 diluted EPS) on revenue of $55.4 million for the second quarter
ended June 30, 2005. Net income for the first six months of 2006 was
$8.1 million ($.59 diluted EPS) on revenue of $147.3 million, compared
to net income of $8.1 million ($.65 diluted EPS) on revenue of $109.6
million for the first six months of 2005. Included in the Consolidated
Statements of Income for the six months ended June 30, 2006, under the
other income (expense), is the $983,000 gain resulting from the sale
of the Company's interest in MinDOC, L.L.C., effective January 23,
2006.
The company had a revenue backlog of $171.8 million and a labor
backlog of approximately 2.1 million man-hours remaining to work,
which consist of work remaining at June 30, 2006 and commitments
received since June 30, 2006.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
June 30, December 31,
2006 2005
----------- -----------
Cash and short-term investments $ 13,328 $ 35,901
Total current assets 104,714 103,412
Property, plant and equipment, at
cost, net 139,820 59,744
Total assets 246,244 163,806
Total current liabilities 34,526 16,271
Debt 17,200 0
Shareholders' equity 185,630 138,265
Total liabilities and shareholders'
equity 246,244 163,806
The management of Gulf Island Fabrication, Inc. will hold a
conference call today July 26, 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 June 30, 2006. The call is accessible by webcast
(www.gulfisland.com) through CCBN and by dialing 1.800.406.5345. A
digital rebroadcast of the call is available two hours after the call
and ending August 4, 2006 by dialing 1.888.203.1112, replay passcode:
2416235.
Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a
leading fabricator of offshore drilling and production platforms, hull
and/or deck sections of floating production platforms and other
specialized structures used in the development and production of
offshore oil and gas reserves. These structures include jackets and
deck sections of fixed production platforms; hull and/or deck sections
of floating production platforms (such as tension leg platforms
("TLPs")), "SPARs and FPSOs", piles, wellhead protectors, subsea
templates and various production, compressor and utility modules,
offshore living quarters, tanks and barges. The Company also provides
offshore interconnect pipe hook-up, inshore marine construction,
manufacture and repair of pressure vessels, heavy lifts such as ship
integration and TLP module integration, loading and offloading jack-up
drilling rigs, semi-submersible drilling rigs, TLP's , SPARs or other
similar cargo onshore and offshore scaffolding and piping insulation
services and steel warehousing and sales.
EXHIBIT 99.1
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,
----------------- -------------------
2006 2005 2006 2005
------- ------- -------- --------
Revenue $89,955 $55,412 $147,324 $109,644
Cost of revenue 79,005 46,978 132,011 94,703
------- ------- -------- --------
Gross profit 10,950 8,434 15,313 14,941
General and administrative
expenses 2,050 1,514 4,187 2,886
------- ------- -------- --------
Operating income 8,900 6,920 11,126 12,055
Other income (expense):
Interest expense (155) (9) (289) (36)
Interest income 92 310 173 597
Other 2 1 985 (2)
------- ------- -------- --------
(61) 302 869 559
------- ------- -------- --------
Income before income taxes 8,839 7,222 11,995 12,614
Income taxes 2,886 2,652 3,889 4,541
------- ------- -------- --------
Net income $ 5,953 $ 4,570 $ 8,106 $ 8,073
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Per share data:
Basic earnings per share: $ 0.43 $ 0.37 $ 0.59 $ 0.66
======= ======= ======== ========
Diluted income per share: $ 0.43 $ 0.37 $ 0.59 $ 0.65
======= ======= ======== ========
Weighted-average shares 13,916 12,241 13,641 12,219
Effect of dilutive
securities: employee
stock options 85 103 119 118
------- ------- -------- --------
Adjusted weighted-
average shares 14,001 12,344 13,760 12,337
======= ======= ======== ========
Depreciation and amortization
included in expense above $ 3,067 $ 1,565 $ 5,936 $ 3,118
======= ======= ======== ========
Cash dividend declared per common
share $ 0.075 $ 0.075 $ 0.15 $ 0.15
======= ======= ======== ========
CONTACT: Gulf Island Fabrication, Inc.
Joseph "Duke" Gallagher, 985-872-2100
or
Kerry J. Chauvin, 985-872-2100
http://www.gulfisland.com