NEWS RELEASE For further information contact: Kerry J. Chauvin Joseph P. Gallagher,III Chief Executive Officer Chief Financial Officer (504) 872-2100 (504) 872-2100 =============================================================================== FOR IMMEDIATE RELEASE WEDNESDAY, APRIL 30, 1997 GULF ISLAND FABRICATION, INC REPORTS FIRST QUARTER 1997 EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported pro forma net income after taxes of $2.2 million ($5.57 per share) on revenue of $30.2 million for its first quarter ended March 31, 1997, compared to pro forma net income after taxes of $485,000 ($.12 per share) on revenues of $19.5 million for the first quarter of 1996. Pro forma net income gives effect to federal and state income taxes as if the company had been a C Corporation for tax purposes during the entire quarter. The company converted from S Corporation status on April 4, 1997. The company completed its initial public offering on April 9, 1997, in which 2.3 million shares were issued. The shares outstanding for the remaining quarters of 1997 will approximate 5.9 million. Excluding the results of its subsidiary, Dolphin Services, Inc., which was purchased on Jan. 2, 1997, the parent company had net income of $1.8 million ($.46 per share) on revenues of $22.6 million for the quarter. At March 31, the consolidated companies had a revenue backlog of $87 million and a labor backlog of 1.3 million manhours left to work. Kerry Chauvin, Gulf Island Fabrication, Inc.'s president and chief executive officer noted, "The increase in our first quarter earnings this year over last year's first quarter results primarily from strong improvement in direct labor pricing and the greater volume of direct labor hours worked. The steady improvement of our performance over the past several quarters, however, has been not only because of higher pricing and volume but also because of our on-going internal focus on productivity increases established through capital improvements, equipment purchases and labor-saving procedures which contribute to higher revenues received per actual direct labor hour expended. We are also continuing to integrate the Dolphin companies into Gulf Island Fabrication and a portion of Dolphin's labor is being redeployed into Gulf Island Fabrication's more profitable fabrication services." Gulf Island Fabrication 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. Consolidated Statement of Income (Unaudited) (In thousands, except per share amounts) First Quarter Ended First Quarter Ended March 31, 1997 March 31,1996 ---------------------------------- ------------------- Gulf Island Dolphin Consolidated Gulf Island --------- ------- ------------ Revenue $ 22,589 $ 7,635 $ 30,224 $ 19,504 Cost of revenue (excluding depreciation) 18232 6516 24748 17827 Depreciation 495 115 610 331 Gross profit 3862 1004 4866 1346 General and administrative expenses 708 295 1003 512 Operating income 3154 709 3863 834 Interest expense, net 226 10 236 52 Net income $ 2,928 $ 699 $ 3,627 $ 782 Pro forma provision income taxes/a 1113 266 1379 297 Pro forma net income/a $ 1,815 $ 433 $ 2,248 $ 485 Pro forma net income per share/a $ 0.46 $ 0.11 $ 0.57 $ 0.12 Average common shares/b 3927 3927 3927 3927 /a: Pro forma information gives effect to federal and state income taxes as if the Company had been a C Corporation for tax purposes during the entire first quarter. /b: The Company completed its initial public offering on April 9, 1997 and the shares outstanding for the remaining quarters of 1997 will approximate 5.9 million.