Gulf Island Fabrication, Inc. Reports Second Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)--

Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $11.9 million ($.83 diluted EPS) on revenue of $117.9 million for its second quarter ended June 30, 2008, compared to net income of $7.9 million ($.55 diluted EPS) on revenue of $137.6 million for its second quarter ended June 30, 2007. Net income for the first six months of 2008 was $25.3 million ($1.77 diluted EPS) on revenue of $241.7 million, compared to net income of $12.3 million ($.86 diluted EPS) on revenue of $246.9 million for the first six months of 2007.

The company had a revenue backlog of $437.7 million and a labor backlog of approximately 4.6 million man-hours remaining to work, which consist of work remaining at June 30, 2008 and commitments received since June 30, 2008.


                  SELECTED BALANCE SHEET INFORMATION
                            (in thousands)
                                              June 30,    December 31,
                                                2008          2007
                                            ------------- ------------
Cash and short-term investments             $      19,754 $     24,640
Total current assets                              128,025      135,747
Property, plant and equipment, at cost, net       197,739      188,766
Total assets                                      326,465      325,213
Total current liabilities                          53,979       78,363
Debt                                                    0            0
Shareholders' equity                              253,224      228,913
Total liabilities and shareholders' equity        326,465      325,213

The management of Gulf Island Fabrication, Inc. will hold a conference call tomorrow July 25, 2008 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, 2008. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.661.5127. A digital rebroadcast of the call is available two hours after the call and ending August 8, 2008 by dialing 1.888.203.1112, replay passcode: 8124669.

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   Six Months Ended
                                    June 30,            June 30,
                                 2008      2007      2008      2007
                               --------- --------- --------- ---------

Revenue                        $117,924  $137,572  $241,652  $246,945
Cost of revenue                  97,863   123,429   198,397   224,292
                               --------- --------- --------- ---------
Gross profit                     20,061    14,143    43,255    22,653
General and administrative
 expenses                         2,551     2,810     5,269     5,117
                               --------- --------- --------- ---------
Operating income                 17,510    11,333    37,986    17,536

Other income (expense):
   Interest expense                  (7)       (8)      (13)      (19)
   Interest income                   36       161       145       280
   Other                              5        (1)      (55)       (5)
                               --------- --------- --------- ---------
                                     34       152        77       256
                               --------- --------- --------- ---------

Income before income taxes       17,544    11,485    38,063    17,792

Income taxes                      5,672     3,624    12,751     5,516
                               --------- --------- --------- ---------


Net income                     $ 11,872  $  7,861  $ 25,312  $ 12,276
                               ========= ========= ========= =========



Per share data:

  Basic earnings per share:    $   0.83  $   0.56  $   1.78  $   0.87
                               ========= ========= ========= =========

  Diluted income per share:    $   0.83  $   0.55  $   1.77  $   0.86
                               ========= ========= ========= =========


         Weighted-average
          shares                 14,251    14,152    14,235    14,140
         Effect of dilutive
          securities: employee
          stock options              78       121        65       126
                               --------- --------- --------- ---------
         Adjusted weighted-
          average shares         14,329    14,273    14,300    14,266
                               ========= ========= ========= =========

Depreciation and amortization
 included in expense above     $  4,254  $  3,492  $  8,430  $  6,918
                               ========= ========= ========= =========

Cash dividend declared per
 common share                  $  0.100  $  0.100  $  0.200  $  0.200
                               ========= ========= ========= =========

Source: Gulf Island Fabrication, Inc.