Gulf Island Fabrication, Inc. Reports Second Quarter Earnings

HOUMA, La.--(BUSINESS WIRE)-- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net income of $1.8 million ($.13 diluted EPS) on revenue of $87.3 million for its second quarter ended June 30, 2011, compared to net income of $3.4 million ($.24 diluted EPS) on revenue of $75.3 million for the second quarter ended June 30, 2010. Net loss for the six months ended June 30, 2011 was $5.1 million ($.36 diluted loss per share) on revenue of $133.6 million, compared to the net income of $7.9 million ($.55 diluted EPS) on revenue of $144.5 million for the six months ended June 30, 2010.

The company had a revenue backlog of $712.3 million and a labor backlog of approximately 6.2 million man-hours, consisting of work remaining on commitments received through July 28, 2011.

SELECTED BALANCE SHEET INFORMATION

(in thousands)

                                                    June 30,   December 31,

                                                    2011       2010

Cash, cash equivalents and short-term investments   $ 32,073   $ 88,072

Total current assets                                  155,315    130,622

Property, plant and equipment, at cost,net            208,132    197,652

Total assets                                          368,338    334,856

Total current liabilities                             57,147     18,511

Debt                                                  0          0

Shareholders' equity                                  280,760    287,192

Total liabilities and shareholders' equity            368,338    334,856

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, July 29, 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 June 30, 2011. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.791.4322. A digital rebroadcast of the call is available two hours after the call and ending August 5, 2011 by dialing 1.888.203.1112, replay passcode: 9714593.

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,

                                2011        2010        2011         2010

Revenue                         $ 87,251    $ 75,290    $ 133,599    $ 144,549

Cost of revenue:

Contract costs                    82,405      68,555      130,631      130,376

Asset impairments                 -           -           7,690        -

Gross profit (loss)               4,846       6,735       (4,722  )    14,173

General and administrative        1,958       1,990       3,894        4,087
expenses

Operating income (loss)           2,888       4,745       (8,616  )    10,086

Other income (expense):

Interest expense                  (32    )    (21    )    (54     )    (38     )

Interest income                   156         349         171          1,319

Other                             228         285         228          1,031

                                  352         613         345          2,312

Income (loss) before income       3,240       5,358       (8,271  )    12,398
taxes

Income taxes                      1,405       1,926       (3,142  )    4,461

Net income (loss)               $ 1,835     $ 3,432     $ (5,129  )  $ 7,937

Per share data:

Basic earnings (loss) per       $ 0.13      $ 0.24      $ (0.36   )  $ 0.55
share - common shareholders

Diluted earnings (loss) per     $ 0.13      $ 0.24      $ (0.36   )  $ 0.55
share - common shareholders

Weighted-average shares           14,348      14,317      14,346       14,315

Effect of dilutive securities:    31          11          -            11
employee stock options

Adjusted weighted-average         14,379      14,328      14,346       14,326
shares

Depreciation and amortization   $ 5,033     $ 4,804     $ 10,056     $ 9,615
included in expense above

Cash dividend declared per      $ 0.06      $ 0.01      $ 0.12       $ 0.02
common share

    Source: Gulf Island Fabrication, Inc.

Released July 28, 2011