Exhibit 99.2 NEWS RELEASE For further information contact: Kerry J. Chauvin Joseph "Duke" Gallagher Chief Executive Officer Chief Financial Officer (985) 872-2100 (985) 872-2100 - -------------------------------------------------------------------------------- FOR IMMEDIATE RELEASE WEDNESDAY, OCTOBER 24, 2001 GULF ISLAND FABRICATION, INC. REPORTS THIRD QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $2.2 million ($.18 diluted EPS) on revenue of $30.5 million for its third quarter ended September 30, 2001, compared to net income of $1.0 million ($.09 diluted EPS) on revenue of $27.5 million for the third quarter ended September 30, 2000. Net income for the first nine months of 2001 was $6.0 million ($.51 diluted EPS) on revenue of $92.3 million, compared to net income of $3.2 million ($.27 diluted EPS) on revenue of $87.7 million for the first nine months of 2000. Currently, the company has a revenue backlog of $53.2 million and a labor backlog of approximately 900 thousand man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands) September 30, December 31, 2001 2000 ------------- ------------ Cash and short-term investments $ 28,293 $ 26,103 Total current assets 60,127 47,546 Property, plant and equipment, at cost, net 40,482 42,662 Total assets 106,188 96,062 Total current liabilities 14,012 10,371 Debt 0 0 Shareholders' equity 87,655 81,266 Total liabilities and shareholders' equity 106,188 96,062 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. Exhibit 99.2 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, ------------------ ----------------- 2001 2000 2001 2000 ------ ------ ------ ------ Revenue $30,496 $27,544 $92,321 $87,665 Cost of revenue 25,826 25,159 79,731 80,282 ------- ------- ------- ------- Gross profit 4,670 2,385 12,590 7,383 General and administrative expenses 1,051 1,035 3,394 3,195 ------- ------- ------- ------- Operating income 3,619 1,350 9,196 4,188 Other income (expense): Interest expense (9) (18) (27) (25) Interest income 295 373 874 985 Other - net (628) (68) (737) (169) ------- ------- ------- ------- (342) 287 110 791 ------- ------- ------- ------- Income before income taxes 3,277 1,637 9,306 4,979 Income taxes 1,120 617 3,291 1,824 ------- ------- ------- ------- Net income $ 2,157 $ 1,020 $ 6,015 $ 3,155 ======= ======= ======= ======= Per share data: Basic earnings per share $0.18 $0.09 $0.51 $0.27 ======= ======= ======= ======= Diluted earnings per share (1) $0.18 $0.09 $0.51 $0.27 ======= ======= ======= ======= Weighted-average shares 11,706 11,680 11,702 11,661 ======= ======= ======= ======= Adjusted weighted-average shares (1) 11,758 11,776 11,802 11,750 ======= ======= ======= ======= Depreciation and amortization included in expense above $ 1,222 $ 1,165 $ 3,627 $ 3,564 ======= ======= ======= ======= - ------------ (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.