NEWS RELEASE Exhibit 99.1 For further information contact: Kerry J. Chauvin Joseph "Duke" Gallagher Chief Executive Officer Chief Financial Officer (504) 872-2100 (504) 872-2100 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE WEDNESDAY, JULY 26, 2000 GULF ISLAND FABRICATION, INC. REPORTS SECOND QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.0 million ($.09 diluted EPS) on revenue of $28.4 million for its second quarter ended June 30, 2000, compared to net income of $2.0 million ($.17 diluted EPS) on revenue of $28.1 million for the second quarter ended June 30, 1999. Net income for the first six months of 2000 was $2.1 million ($.18 diluted EPS) on revenue of $60.1 million, compared to net income of $3.9 million ($.33 diluted EPS) on revenue of $58.4 million for the first six months of 1999. At June 30, 2000, the company had a revenue backlog of $30.0 million and a labor backlog of approximately 506 thousand man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands) June 30, December 31, 2000 1999 ---------- ------------- Cash and short-term investments $ 21,139 $ 15,750 Total current assets 50,553 47,154 Property, plant and equipment, at cost, net 42,073 43,664 Total assets 96,776 95,049 Total current liabilities 13,746 15,367 Debt - - Shareholders' equity 79,180 76,618 Total liabilities and shareholders' equity 96,776 95,049 Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading fabricator of offshore drilling and production platforms, offshore living quarters and other specialized structures used in the development and production of offshore oil and gas reserves. The Company also offers offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, steel warehousing and sales. 1 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, --------------------------- --------------------------- 2000 1999 2000 1999 --------- ----------- ---------- ------------ Revenue $28,380 $28,106 $60,121 $58,435 Cost of revenue 25,930 24,093 55,123 50,196 ------- ------- ------- ------- Gross profit 2,450 4,013 4,998 8,239 General and administrative expenses 1,036 989 2,160 2,271 ------- ------- ------- ------- Operating income 1,414 3,024 2,838 5,968 Other income (expense): Interest expense 11 (14) (7) (35) Interest income 293 166 612 267 Other - net (44) (39) (101) 10 ------- ------- ------- ------- 260 113 504 242 ------- ------- ------- ------- Income before income taxes 1,674 3,137 3,342 6,210 Income taxes 646 1,182 1,207 2,330 ------- ------- ------- ------- Net income $ 1,028 $ 1,955 $ 2,135 $ 3,880 ======= ======= ======= ======= Per share data: Basic earnings per share $ 0.09 $ 0.17 $ 0.18 $ 0.33 ======= ======= ======= ======= Diluted earnings per share (1) $ 0.09 $ 0.17 $ 0.18 $ 0.33 ======= ======= ======= ======= Weighted-average shares 11,664 11,638 11,651 11,638 ======= ======= ======= ======= Adjusted weighted-average shares (1) 11,768 11,707 11,740 11,681 ======= ======= ======= ======= Depreciation and amortization included in expense above $ 1,175 $ 1,251 $ 2,399 $ 2,452 ======= ======= ======= ======= (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.