Gulf Island Fabrication, Inc. Reports Second Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $4.0 million ($.28 diluted EPS) on revenue of $79.1 million for its second quarter ended June 30, 2009, compared to net income of $11.9 million ($.83 diluted EPS) on revenue of $117.9 million for the second quarter ended June 30, 2008. Net income for the six months ended June 30, 2009 was $10.2 million ($.71 diluted EPS) on revenue of $164.1 million, compared to the net income of $25.3 million ($1.77 diluted EPS) on revenue of $241.7 million for the six months ended June 30, 2008.

The company had a revenue backlog of $159.2 million and a labor backlog of approximately 1.8 million man-hours remaining to work, which consist of work remaining at June 30, 2009 and commitments received through July 24, 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)

                                                    June 30,    December 31,

                                                      2009        2008

Cash, cash equivalents and short-term investments   $ 14,180    $ 13,839

Total current assets                                  108,273     136,380

Property, plant and equipment, at cost,net            203,137     204,695

Total assets                                          329,486     350,890

Total current liabilities                             43,804      74,940

Debt                                                  0           0

Shareholders' equity                                  263,137     254,207

Total liabilities and shareholders' equity            329,486     350,890

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, July 24, 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 June 30, 2009. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.811.5441. A digital rebroadcast of the call is available two hours after the call and ending July 31, 2009 by dialing 1.888.203.1112, replay passcode: 9504438.

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,

                                 2009        2008         2009         2008

Revenue                        $ 79,133    $ 117,924    $ 164,132    $ 241,652

Cost of                          70,795      97,863       144,035      198,397
revenue

Gross profit                     8,338       20,061       20,097       43,255

General and administrative       1,972       2,551        4,196        5,269
expenses

Operating                        6,366       17,510       15,901       37,986
income

Other income
(expense):

Interest                         (18    )    (7      )    (35     )    (13     )
expense

Interest                         -           36           20           145
income

Other                            2           5            2            (55     )

                                 (16    )    34           (13     )    77

Income before income             6,350       17,544       15,888       38,063
taxes

Income taxes                     2,337       5,672        5,675        12,751

Net income                     $ 4,013     $ 11,872     $ 10,213     $ 25,312

Per share
data:

Basic earnings (loss)          $ 0.28      $ 0.83       $ 0.71       $ 1.78
per share

Diluted earnings               $ 0.28      $ 0.83       $ 0.71       $ 1.77
(loss) per share

Weighted-average                 14,293      14,251       14,293       14,235
shares

Effect of dilutive
securities: employee stock       39          78           24           65
options

Adjusted
weighted-average                 14,332      14,329       14,317       14,300
shares

Depreciation and amortization  $ 4,580     $ 4,254      $ 9,097      $ 8,430
included in expense above

Cash dividend declared per     $ 0.01      $ 0.10       $ 0.11       $ 0.20
common share

    Source: Gulf Island Fabrication, Inc.

Released July 23, 2009