Gulf Island Fabrication, Inc. Reports Third Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $6.0 million ($.41 diluted EPS) on revenue of $76.6 million for its third quarter ended September 30, 2009, compared to net income of $2.8 million ($.20 diluted EPS) on revenue of $92.7 million for the third quarter ended September 30, 2008. Net income for the nine months ended September 30, 2009 was $16.2 million ($1.12 diluted EPS) on revenue of $240.8 million, compared to the net income of $28.1 million ($1.96 diluted EPS) on revenue of $334.3 million for the nine months ended September 30, 2008.

The company had a revenue backlog of $136.1 million and a labor backlog of approximately 1.5 million man-hours remaining to work, which consists of work remaining at September 30, 2009 and commitments received through October 22, 2009. In past quarters the Company included $147.7 million and 1.6 million man-hours in the backlog related to the MinDOC II project. Although not formally cancelled, due to current economic conditions, it is not likely the MinDOC II project will return to active status in the near future.

SELECTED BALANCE SHEET INFORMATION

(in thousands)

                                                     September 30,  December 31,

                                                       2009           2008

Cash, cash equivalents and short-term investments    $ 8,227        $ 13,839

Total current assets                                   122,551        136,380

Property, plant and equipment, at cost,net             202,492        204,695

Total assets                                           338,497        350,890

Total current liabilities                              46,216         74,940

Debt                                                   0              0

Shareholders' equity                                   269,162        254,207

Total liabilities and shareholders' equity             338,497        350,890

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, October 23, 2009, 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, 2009. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.215.6825. A digital rebroadcast of the call is available two hours after the call and ending October 31, 2009 by dialing 1.888.203.1112, replay passcode: 7247356.

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, MinDOCs); piles; wellhead protectors; subsea templates; various production, compressor and utility modules; offshore living quarters; brown water tow boats; 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, TLPs, 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,

                                         2009      2008      2009      2008

Revenue                                  $ 76,631  $ 92,657  $         $
                                                             240,763   334,309

Cost of revenue                          65,413    86,349    209,448   284,746

Gross profit                             11,218    6,308     31,315    49,563

General and administrative               2,051     2,070     6,247     7,339
expenses

Operating income                         9,167     4,238     25,068    42,224

Other income
(expense):

Interest                                 (23)      (18)      (58)      (31)
expense

Interest income                          81        42        101       187

Other                                    2         (42)      4         (97)

                                         60        (18)      47        59

Income before income taxes               9,227     4,220     25,115    42,283

Income taxes                             3,241     1,384     8,916     14,135

Net income                               $ 5,986   $ 2,836   $ 16,199  $ 28,148

Per share data (a):

Basic earnings (loss) per share -        $ 0.41    $ 0.20    $ 1.12    $ 1.97
common shareholders

Diluted earnings (loss) per share -      $ 0.41    $ 0.20    $ 1.12    $ 1.96
common shareholders

Weighted-average                         14,293    14,278    14,293    14,249
shares

Effect of dilutive securities: employee  2         40        2         40
stock options

Adjusted weighted-average                14,295    14,318    14,295    14,289
shares

Depreciation and amortization included   $ 4,667   $ 4,615   $ 13,764  $ 13,045
in expense above

Cash dividend declared per common        $ 0.01    $ 0.10    $ 0.12    $ 0.30
share

(a) - Basic and diluted earnings per share for the three-month period ended
September 30, 2009 and nine-month periods ended September 30, 2009 and 2008
have been reduced by $0.01 per share as the result of adopting standards
contained in ASC 260-10-45-61A effective January 1, 2009.

    Source: Gulf Island Fabrication, Inc.

Released October 22, 2009