EXHIBIT 99.2 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, APRIL 24, 2002 GULF ISLAND FABRICATION, INC. REPORTS FIRST QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $1.4 million ($.12 diluted EPS), before a cumulative effect of change in accounting principle, on revenue of $27.2 million for its first quarter ended March 31, 2002, compared to net income of $918 thousand ($.08 diluted EPS) on revenue of $27.6 million for the first quarter ended March 31, 2001. Effective January 1, 2002 the Company adopted Statement of Financial Accounting Standards Board No. 142, ("SFAS No. 142"), "Goodwill and Other Intangibles Assets", which resulted in a $4.8 million non-cash charge for the impairment of goodwill, which was recorded as a cumulative effect of change in accounting principle. The recording of this non-cash charge for the impairment of goodwill resulted in a net loss of $3.4 million ($.29 diluted EPS) for the quarter ended March 31, 2002. At March 31, 2002, the company had a revenue backlog of $82.8 million and a labor backlog of approximately 1.3 million man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands)
March 31, December 31, 2002 2001 ---------- ----------- Cash and short-term investments $ 28,887 $ 35,032 Total current assets 58,851 55,461 Property, plant and equipment, at cost,net 43,060 41,666 Total assets 102,558 102,538 Total current liabilities 12,028 8,860 Debt 0 0 Shareholders' equity 85,549 88,905 Total liabilities and shareholders' equity 102,558 102,538
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, and 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 MARCH 31, ------------------------ 2002 2001 ---------- ---------- Revenue $ 27,246 $ 27,558 Cost of revenue 24,448 25,275 ---------- ---------- Gross profit 2,798 2,283 General and administrative expenses 908 1,141 ---------- ---------- Operating income 1,890 1,142 Other income (expense): Interest expense (9) (9) Interest income 160 314 Other 57 (7) ---------- ---------- 208 298 ---------- ---------- Income before income taxes 2,098 1,440 Income taxes 713 522 ---------- ---------- Net income before cumulative effect of 1,385 918 change in accounting principle Cumulative effect of change in accounting principle (1) (4,765) -- ---------- ---------- Net income (loss) $ (3,380) $ 918 ========== ========== Per share data: Basic earnings (loss) per share: Net income before cumulative effect of $ 0.12 $ 0.08 change in accounting principle Cumulative effect of change in accounting principle (1) (0.41) -- ---------- ---------- Basic earnings (loss) per share $ (0.29) $ 0.08 ========== ========== Diluted income (loss) per share: (2) Net income before cumulative effect of $ 0.12 $ 0.08 change in accounting principle Cumulative effect of change in accounting principle (1) (0.41) -- ---------- ---------- Diluted earnings (loss) per share $ (0.29) $ 0.08 ========== ========== Weighted-average shares 11,708 11,696 Effect of dilutive securities: employee stock options 66 149 ---------- ---------- Adjusted weighted-average shares (2) 11,774 11,845 ========== ========== Depreciation and amortization included in expense above $ 1,142 $ 1,185 ========== ==========
(1) The Company recorded a $4.8 million non-cash charge for the impairment of goodwill resulting from the adoption of Statement of Financial Accounting Standards Board No.142, "Goodwill and Other Intangible Assets". (2) 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.