Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.7 million ($.12 diluted EPS) on revenue of $43.0 million for its fourth quarter ended December 31, 2010, compared to net income of $4.6 million ($.32 diluted EPS) on revenue of $70.8 million for the fourth quarter ended December 31, 2009. Net income for the twelve months ended December 31, 2010 was $13.1 million ($.90 diluted EPS) on revenue of $248.3 million, compared to the net income of $20.8 million ($1.44 diluted EPS) on revenue of $311.5 million for the twelve months ended December 31, 2009.

The company had a revenue backlog of $486.1 million and a labor backlog of approximately 3.8 million man-hours remaining to work, which consists of work remaining at December 31, 2010 and commitments received through February 24, 2011. Our backlog as of December 31, 2010 includes amounts associated with a contract for the fabrication and integration of the topsides on a deepwater Gulf of Mexico project we received and announced on November 23, 2010.

SELECTED BALANCE SHEET INFORMATION

(in thousands)

                                                     December 31,   December 31,

                                                       2010           2009

Cash, cash equivalents and short-term investments    $ 88,072       $ 8,751

Total current assets                                   130,622        112,874

Property, plant and equipment, at cost,net             197,652        200,459

Total assets                                           334,856        332,175

Total current liabilities                              18,511         32,373

Debt                                                   0              0

Shareholders' equity                                   287,192        273,801

Total liabilities and shareholders' equity             334,856        332,175

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, February 25, 2011 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, 2010. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.215.7027. A digital rebroadcast of the call is available two hours after the call and ending March 4, 2011 by dialing 1.888.203.1112, replay passcode: 6749349.

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 and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, 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         Twelve Months Ended

                           December 31,               December 31,

                             2010          2009         2010           2009

Revenue                    $ 43,004      $ 70,766     $ 248,286      $ 311,529

Cost of revenue              40,841        62,616       225,015        272,064

Gross profit                 2,163         8,150        23,271         39,465

General and                  1,863         2,010        7,947          8,257
administrative expenses

Operating income             300           6,140        15,324         31,208

Other income (expense):

Interest expense             (19    )      (19    )     (76     )      (77     )

Interest income              2,734         962          5,097          1,063

Other                        (40    )      (59    )     1,014          (55     )

                             2,675         884          6,035          931

Income before income         2,975         7,024        21,359         32,139
taxes

Income taxes                 1,281         2,419        8,266          11,335

Net income                 $ 1,694       $ 4,605      $ 13,093       $ 20,804

Per share data:

Basic earnings per share   $ 0.12        $ 0.32       $ 0.90         $ 1.44
- common shareholders

Diluted earnings per
share - common             $ 0.12        $ 0.32       $ 0.90         $ 1.44
shareholders

Weighted-average shares      14,325        14,297       14,318         14,294

Effect of dilutive
securities: employee         25            12           11             1
stock options

Adjusted                     14,350        14,309       14,329         14,295
weighted-average shares

Depreciation and
amortization included in   $ 4,870       $ 4,748      $ 19,282       $ 18,512
expense above

Cash dividend declared     $ 0.01        $ 0.01       $ 0.04         $ 0.13
per common share

    Source: Gulf Island Fabrication, Inc.

Released February 24, 2011