Gulf Island Fabrication, Inc. Reports Second Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $3.4 million ($.24 diluted EPS) on revenue of $75.3 million for its second quarter ended June 30, 2010, compared to net income of $4.0 million ($.28 diluted EPS) on revenue of $79.1 million for the second quarter ended June 30, 2009. Net income for the six months ended June 30, 2010 was $7.9 million ($.55 diluted EPS) on revenue of $144.5 million, compared to the net income of $10.2 million ($.71 diluted EPS) on revenue of $164.1 million for the six months ended June 30, 2009.

The company had a revenue backlog of $125.8 million and a labor backlog of approximately 1.3 million man-hours remaining to work, which consist of work remaining at June 30, 2010 and commitments received through July 29, 2010.

SELECTED BALANCE SHEET INFORMATION

(in thousands)

                                                   June 30,   December 31,

                                                   2010       2009

Cash, cash equivalents and short-term investments  $ 30,967   $ 8,751

Total current assets                                 111,021    112,874

Property, plant and equipment, at cost, net          198,930    200,459

Total assets                                         342,955    332,175

Total current liabilities                            34,928     32,373

Debt                                                 0          0

Shareholders' equity                                 281,888    273,801

Total liabilities and shareholders' equity           342,955    332,175

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, July 30, 2010 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, 2010. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.801.6502. A digital rebroadcast of the call is available two hours after the call and ending August 6, 2010 by dialing 1.888.203.1112, replay passcode: 5297845.

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      Six Months Ended

                               June 30,                June 30,

                               2010        2009        2010         2009

Revenue                        $ 75,290    $ 79,133    $ 144,549    $ 164,132

Cost of                          68,555      70,795      130,376      144,035
revenue

Gross profit                     6,735       8,338       14,173       20,097

General and                      1,990       1,972       4,087        4,196
administrative expenses

Operating income                 4,745       6,366       10,086       15,901

Other income
(expense):

Interest expense                 (21    )    (18    )    (38     )    (35     )

Interest income                  349         -           1,319        20

Other                            285         2           1,031        2

                                 613         (16    )    2,312        (13     )

Income before                    5,358       6,350       12,398       15,888
income taxes

Income taxes                     1,926       2,337       4,461        5,675

Net income                     $ 3,432     $ 4,013     $ 7,937      $ 10,213

Per share
data:

Basic earnings per share -     $ 0.24      $ 0.28      $ 0.55       $ 0.71
common shareholders

Diluted earnings per share -   $ 0.24      $ 0.28      $ 0.55       $ 0.71
common shareholders

Weighted-average shares          14,317      14,293      14,315       14,293

Effect of dilutive
securities: employee stock       11          39          11           24
options

Adjusted weighted-average        14,328      14,332      14,326       14,317
shares

Depreciation and amortization  $ 4,804     $ 4,580     $ 9,615      $ 9,097
included in expense above

Cash dividend declared         $ 0.01      $ 0.01      $ 0.02       $ 0.11
per common share

    Source: Gulf Island Fabrication, Inc.

Released July 29, 2010