EXHIBIT 99.2(a)
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except share and per share data)
Three months ended December 31, Twelve months ended December 31,
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1997 1996 1997 1996
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Revenue $ 34,799 $ 18,628 $ 136,355 $ 79,004
Cost of revenue 28,751 15,398 112,033 68,673
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Gross profit 6,048 3,230 24,322 10,331
General and administrative expenses 1,408 1,094 4,670 2,661
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Operating income 4,640 2,136 19,652 7,670
Interest expense (income), net (103) 87 109 384
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Income before provision for income taxes 4,743 2,049 19,543 7,286
Provision for income taxes 1,763 - 5,973 -
Cumulative deferred tax provision/(1)/ - - 1,144 -
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Net income $ 2,980 $ 2,049 $ 12,426 $ 7,286
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Pro forma data:/(2)/
Income before provision for income taxes $ 4,743 $ 2,049 $ 19,543 $ 7,286
Provision for income taxes 1,763 - 5,973 -
Pro forma provision for income taxes
related to operations as S Corporation - 944 1,379 2,934
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Pro forma net income $ 2,980 $ 1,105 $ 12,191 $ 4,352
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Pro forma per share data:
Pro forma basic earnings per share/(3)/ $ 0.26 $ 0.14 $ 1.15 $ 0.55
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Pro forma diluted earnings per share/(3) (4)/ $ 0.25 $ 0.14 $ 1.14 $ 0.55
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Weighted average shares outstanding/(3)/ 11,600,000 7,854,000 10,632,626 7,854,000
Adjusted weighted average shares outstanding/(3) (4)/ 11,739,161 7,854,000 10,699,437 7,854,000
Depreciation and amortization
included in expense above $ 828 $ 458 $ 2,932 $ 1,586
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(1) Cumulative deferred tax provision charged upon election on April 4, 1997 to
convert from S Corporation status to C Corporation Status.
(2) Pro forma information gives effect to federal and state income taxes as if
the Company had been a C Corporation for tax purposes during all periods
presented.
(3) Includes the shares issued in the Company's initial public offering
completed on April 9, 1997 and retroactively restated for the two-for-one
stock split effective October 28, 1997.
(4) 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.