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, OCTOBER 25, 2000 GULF ISLAND FABRICATION, INC. REPORTS THIRD QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.0 million ($.09 diluted EPS) on revenue of $27.5 million for its third quarter ended September 30, 2000, compared to net income of $1.7 million ($.15 diluted EPS) on revenue of $29.0 million for the third quarter ended September 30, 1999. Net income for the first nine months of 2000 was $3.2 million ($.27 diluted EPS) on revenue of $87.7 million, compared to net income of $5.6 million ($.48 diluted EPS) on revenue of $87.5 million for the first nine months of 1999. At September 30, 2000, the company had a revenue backlog of $22.6 million and a labor backlog of approximately 387 thousand man-hours remaining to work. Kerry Chauvin, Gulf Island Fabrication, Inc.'s President and C.E.O., expressed concern about the near term profit margins of the company. He stated, "The anticipated recovery in the oil and gas industry has yet to materialize in the late cycle sectors, such as offshore fabrication in which the Company operates, and this continues to suppress margins on contracts. The Company continues to maintain a minimum backlog in light of today's offshore fabrication contract prices. When the market improves, the Company will be poised to profit from potential future higher margin work." SELECTED BALANCE SHEET INFORMATION (in thousands) September 30, December 31, 2000 1999 ---- ---- Cash and short-term investments $22,446 $15,750 Total current assets 50,991 47,154 Property, plant and equipment, at cost,net 42,165 43,664 Total assets 97,368 95,049 Total current liabilities 13,551 15,367 Debt 0 0 Shareholders' equity 80,233 76,618 Total liabilities and shareholders' equity 97,368 95,049 Exhibit 99.1 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. This news release contains forward-looking information that reflects the Company's current views with respect to future events and financial performance. No assurances can be given that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected is included in the Company's periodic reports filed with the Securities and Exchange Commission. Exhibit 99.1 GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data)
Three Months Ended Nine Months Ended September 30, September 30, ----------------------------- -------------------------- 2000 1999 2000 1999 --------- ----------- ----------- --------- Revenue $27,544 $29,034 $87,665 $87,469 Cost of revenue 25,159 25,393 80,282 75,589 --------- ----------- ----------- --------- Gross profit 2,385 3,641 7,383 11,880 General and administrative expenses 1,035 955 3,195 3,226 --------- ----------- ----------- --------- Operating income 1,350 2,686 4,188 8,654 Other income (expense): Interest expense (18) (11) (25) (46) Interest income 373 203 985 470 Other - net (68) (39) (169) (29) --------- ----------- ----------- --------- 287 153 791 395 --------- ----------- ----------- --------- Income before income taxes 1,637 2,839 4,979 9,049 Income taxes 617 1,105 1,824 3,435 --------- ----------- ----------- --------- Net income $ 1,020 $ 1,734 $ 3,155 $ 5,614 ========= =========== =========== ========= Per share data: Basic earnings per share $ 0.09 $ 0.15 $ 0.27 $ 0.48 ========= =========== =========== ========= Diluted earnings per share/(1)/ $ 0.09 $ 0.15 $ 0.27 $ 0.48 ========= =========== =========== ========= Weighted-average shares 11,680 11,638 11,661 11,638 ========= =========== =========== ========= Adjusted weighted-average shares/(1)/ 11,776 11,715 11,750 11,692 ========= =========== =========== ========= Depreciation and amortization included in expense above $ 1,165 $ 1,229 $ 3,564 $ 3,681 ========= =========== =========== =========
(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.