EXHIBIT 99.1
Gulf Island Fabrication, Inc. Reports Third Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--Nov. 1, 2006--Gulf Island Fabrication, Inc.
(NASDAQ: GIFI) today reported net income of $10.5 million ($.75 diluted EPS) on
revenue of $90.5 million for its third quarter ended September 30, 2006,
compared to net income of $2.2 million ($.18 diluted EPS) on revenue of $37.5
million for the third quarter ended September 30, 2005. Net income for the first
nine months of 2006 was $18.6 million ($1.34 diluted EPS) on revenue of $237.8
million, compared to net income of $10.3 million ($.83 diluted EPS) on revenue
of $147.1 million for the first nine months of 2005. Included in the
Consolidated Statements of Income for the nine months ended September 30, 2006,
under the "Other Income (Expense)" section, 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 $417.3 million and a labor backlog of
approximately 3.8 million man-hours remaining to work, which consist of work
remaining at September 30, 2006 and commitments received since September 30,
2006.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
September 30, December 31,
2006 2005
------------- ------------
Cash and short-term investments $6,282 $35,901
Total current assets 88,315 103,412
Property, plant and equipment, at cost, net 153,060 59,744
Total assets 242,855 163,806
Total current liabilities 37,574 16,271
Debt 0 0
Shareholders' equity 195,928 138,265
Total liabilities and shareholders' equity 242,855 163,806
The management of Gulf Island Fabrication, Inc. will hold a conference call
today November 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 September 30,
2006. The call is accessible by webcast (www.gulfisland.com) through CCBN and by
dialing 1.800.946.0705. A digital rebroadcast of the call is available two hours
after the call and ending November 14, 2006 by dialing 1.888.203.1112, replay
passcode: 1182943.
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, 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 of jack-up drilling rigs, semi-submersible
drilling rigs, TLP's , SPARs, or other similar cargo, onshore and offshore
scaffolding, piping insulation services, 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,
--------------------- ---------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Revenue $90,494 $37,475 $237,818 $147,119
Cost of revenue 72,859 32,872 204,870 127,575
---------- ---------- ---------- ----------
Gross profit 17,635 4,603 32,948 19,544
General and administrative
expenses 2,638 1,492 6,825 4,378
---------- ---------- ---------- ----------
Operating income 14,997 3,111 26,123 15,166
Other income (expense):
Interest expense (130) (9) (419) (45)
Interest income 54 358 227 955
Other 77 (3) 1,062 (5)
---------- ---------- ---------- ----------
1 346 870 905
---------- ---------- ---------- ----------
Income before income taxes 14,998 3,457 26,993 16,071
Income taxes 4,522 1,245 8,411 5,786
---------- ---------- ---------- ----------
Net income $10,476 $2,212 $18,582 $10,285
========== ========== ========== ==========
Per share data:
Basic earnings per
share: $0.75 $0.18 $1.35 $0.84
========== ========== ========== ==========
Diluted income per
share: $0.75 $0.18 $1.34 $0.83
========== ========== ========== ==========
Weighted-average
shares 13,948 12,255 13,743 12,231
Effect of dilutive
securities: employee
stock options 92 129 110 122
---------- ---------- ---------- ----------
Adjusted weighted-
average shares 14,040 12,384 13,853 12,353
========== ========== ========== ==========
Depreciation and
amortization included in
expense above $3,331 $1,587 $9,267 $4,705
========== ========== ========== ==========
Cash dividend declared per
common share $0.075 $0.075 $0.225 $0.225
========== ========== ========== ==========
CONTACT: Gulf Island Fabrication, Inc.
Kerry J. Chauvin, 985-872-2100
Chief Executive Officer
or
Joseph "Duke" Gallagher, 985-872-2100
Chief Financial Officer