Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings
HOUMA, La.--(BUSINESS WIRE)--
Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $3.7 million ($.26 diluted EPS) on revenue of $76.0 million for its fourth quarter ended December 31, 2006, compared to net income of $2.7 million ($.22 diluted EPS) on revenue of $41.4 million for the fourth quarter ended December 31, 2005. Net income for the twelve months ended December 31, 2006 was $21.3 million ($1.53 diluted EPS) on revenue of $312.2 million, compared to net income of $13.0 million ($1.05 diluted EPS) on revenue of $188.5 million for the twelve months ended December 31, 2005. Included in the Consolidated Statements of Income for the year ended December 31, 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 $429.1 million and a labor backlog of approximately 4.0 million man-hours remaining to work, which consist of work remaining at December 31, 2006 and commitments received through February 13, 2007, the original earnings release date.
During the year-end close process, the Company discovered an error regarding the estimated revenue on the Tahiti contract, which the Company assumed when it acquired Gulf Marine Fabricators, effective January 31, 2006. The Company determined that the amount of revenue it had recognized on this contract during the first three quarters of 2006 was overstated. The table below indicates the previously reported and restated quarterly financial results that will be included in the quarterly results footnote in its Form 10-K for the year ended December 31, 2006. The Company expects to file its Form 10-K on or before its March 16, 2007 due date and will not amend its previous filings.
For the Quarters
Ended
March 31, 2006 June 30, 2006 September 30, 2006
Reported Restated Reported Restated Reported Restated
-------- -------- -------- -------- --------- --------
(in thousands, except per share data)
Revenue $57,369 $56,978 $89,955 $89,508 $90,494 $89,733
Gross profit 4,395 4,014 10,950 10,514 17,635 16,890
Net Income 2,154 1,879 5,953 5,678 10,476 10,040
Basic EPS $0.16 $0.14 $0.43 $0.41 $0.75 $0.72
Diluted EPS $0.16 $0.14 $0.43 $0.41 $0.75 $0.72
SELECTED BALANCE SHEET INFORMATION
(in thousands)
December 31, December 31,
2006 2005
----------- ------------
Cash, cash equivalents and short-term
investments $10,302 $35,901
Total current assets 94,765 103,412
Property, plant and equipment, at cost,net 155,440 59,744
Total assets 251,448 163,806
Total current liabilities 40,214 16,271
Debt 0 0
Shareholders' equity 200,756 138,265
Total liabilities and shareholders' equity 251,448 163,806
The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, March 2, 2007, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company's financial results for the quarter ended and year ended December 31, 2006. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.478.6251. A digital rebroadcast of the call is available two hours after the call and ending March 16, 2007 by dialing 1.888.203.1112, replay passcode: 3493118.
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 Twelve Months Ended
December 31, December 31,
------------------ -------------------
2006 2005 2006 2005
--------- -------- --------- ---------
Revenue $75,962 $41,426 $312,181 $188,545
Cost of revenue 68,967 36,973 273,768 164,548
--------- -------- --------- ---------
Gross profit 6,995 4,453 38,413 23,997
General and administrative
expenses 2,350 1,303 9,137 5,681
--------- -------- --------- ---------
Operating income 4,645 3,150 29,276 18,316
Other income (expense):
Interest expense (11) (10) (473) (55)
Interest income 88 440 359 1,395
Other 199 (455) 1,261 (460)
--------- -------- --------- ---------
276 (25) 1,147 880
--------- -------- --------- ---------
Income before income taxes 4,921 3,125 30,423 19,196
Income taxes 1,193 423 9,098 6,209
--------- -------- --------- ---------
Net income $3,728 $2,702 $21,325 $12,987
========= ======== ========= =========
Per share data:
Basic earnings (loss) per
share $0.27 $0.22 $1.54 $1.06
========= ======== ========= =========
Diluted earnings (loss) per
share $0.26 $0.22 $1.53 $1.05
========= ======== ========= =========
Weighted-average shares 14,019 12,275 13,812 12,242
Effect of dilutive securities:
employee stock options 159 172 122 134
--------- -------- --------- ---------
Adjusted weighted-average
shares (1) 14,178 12,447 13,934 12,376
========= ======== ========= =========
Depreciation and amortization
included in expense above $3,242 $1,574 $12,509 $6,279
========= ======== ========= =========
Cash dividend declared per
common share $0.075 $0.075 $0.300 $0.300
========= ======== ========= =========
(1) The calculation of diluted earnings per share assumes that all
stock options are exercised and that the assumed proceeds are used to
purchase shares at the average market price for the period.
Source: Gulf Island Fabrication, Inc.
Released March 1, 2007
