EXHIBIT 99.1 NEWS RELEASE 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 THURSDAY, OCTOBER 27, 1999 GULF ISLAND FABRICATION, INC. REPORTS THIRD QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.7 million ($.15 diluted EPS) on revenue of $29.0 million for its third quarter ended September 30, 1999, compared to net income of $5.3 million ($.45 diluted EPS) on revenue of $51.9 million for the third quarter ended September 30, 1998. Net income for the first nine months of 1999 was $5.6 million ($.48 diluted EPS) on revenue of $87.5 million, compared to net income of $14.7 million ($1.25 diluted EPS) on revenue of $149.4 million for the first nine months of 1998. At September 30, 1999, the company had a revenue backlog of $52.4 million and a labor backlog of approximately 800,000 man-hours remaining to work. Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading fabricator of offshore drilling and production platforms 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, and the fabrication of offshore living quarters. 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, ------------------ ------------------- 1999 1998 1999 1998 -------- -------- -------- -------- Revenue $29,034 $51,866 $87,469 $149,421 Cost of revenue 25,393 42,036 75,589 121,513 -------- -------- -------- --------- Gross profit 3,641 9,830 11,880 27,908 General and administrative expenses 955 1,458 3,226 4,532 -------- -------- -------- --------- Operating income 2,686 8,372 8,654 23,376 Other expense (income): Interest expense 11 19 46 72 Interest income (203) (94) (470) (183) Other - net 39 - 29 4 -------- -------- -------- --------- (153) (75) (395) (107) -------- -------- -------- --------- Income before income taxes 2,839 8,447 9,049 23,483 Income taxes 1,105 3,135 3,435 8,787 ======== ======== ======== ========= Net income $ 1,734 $ 5,312 $ 5,614 $ 14,696 ======== ======== ======== ========= Per share data: Basic earnings per share $ 0.15 $ 0.46 $ 0.48 $ 1.26 ======== ======== ======== ========= Diluted earnings per share (1) $ 0.15 $ 0.45 $ 0.48 $ 1.25 ======== ======== ======== ========= Weighted-average shares 11,638 11,638 11,638 11,627 ======== ======== ======== ========= Adjusted weighted-average shares (1) 11,715 11,697 11,692 11,711 ======== ======== ======== ========= Depreciation and amortization included in expense above $ 1,229 $ 1,060 $ 3,681 $ 3,090 ======== ======== ======== =========
- ----------------- (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.