NEWS RELEASE
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
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FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 24, 2002
GULF ISLAND FABRICATION, INC.
REPORTS SECOND QUARTER EARNINGS
Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported
net income of $1.7 million ($.15 diluted EPS) on revenue of $33.1 million for
its second quarter ended June 30, 2002, compared to net income of $2.9 million
($.25 diluted EPS) on revenue of $34.3 million for the second quarter ended June
30, 2001. Net income for the first six months of 2002 was $3.1 million ($.27
diluted EPS), before a cumulative effect of change in accounting principle, on
revenue of $60.3 million, compared to net income of $3.9 million ($.33 diluted
EPS) on revenue of $61.8 million for the first six months of 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 $1.7 million ($.14 diluted EPS) for the
six months ended June 30, 2002.
At June 30, 2002, the company had a revenue backlog of $84.0 million
and a labor backlog of approximately 1.3 million man-hours remaining to work.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
June 30, December 31,
2002 2001
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Cash and short-term investments $ 30,081 $ 35,032
Total current assets 65,550 55,461
Property, plant and equipment, at cost,net 46,177 41,666
Total assets 112,375 102,538
Total current liabilities 19,705 8,860
Debt 0 0
Shareholders' equity (*) 87,666 88,905
Total liabilities and shareholders' equity 112,375 102,538
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.
(*) Reference to Footnote 1 shown on page 2 (Consolidated Statements of
Income).
Exhibit 99.2
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------- --------------------------------
2002 2001 2002 2001
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Revenue $ 33,053 $ 34,267 $ 60,299 $ 61,825
Cost of revenue 29,573 28,630 54,021 53,905
------------- ------------- ------------- -------------
Gross profit 3,480 5,637 6,278 7,920
General and administrative expenses 1,018 1,202 1,926 2,343
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Operating income 2,462 4,435 4,352 5,577
Other income (expense):
Interest expense (9) (9) (18) (18)
Interest income 168 265 328 579
Other -- (102) 57 (109)
------------- ------------- ------------- -------------
159 154 367 452
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Income before income taxes 2,621 4,589 4,719 6,029
Income taxes 892 1,649 1,605 2,171
------------- ------------- ------------- -------------
Net income before cumulative effect of 1,729 2,940 3,114 3,858
change in accounting principle
Cumulative effect of change in accounting
principle (1) -- -- (4,765) --
------------- ------------- ------------- -------------
Net income (loss) $ 1,729 $ 2,940 $ (1,651) $ 3,858
============= ============= ============= =============
Per share data:
Basic earnings (loss) per share:
Net income before cumulative effect of $ 0.15 $ 0.25 $ 0.27 $ 0.33
change in accounting principle
Cumulative effect of change in accounting
principle (1) -- -- (0.41) --
------------- ------------- ------------- -------------
Basic earnings (loss) per share $ 0.15 $ 0.25 $ (0.14) $ 0.33
============= ============= ============= =============
Diluted income (loss) per share: (2)
Net income before cumulative effect of $ 0.15 $ 0.25 $ 0.26 $ 0.33
change in accounting principle
Cumulative effect of change in accounting
principle (1) -- -- (0.40) --
------------- ------------- ------------- -------------
Diluted earnings (loss) per share $ 0.15 $ 0.25 $ (0.14) $ 0.33
============= ============= ============= =============
Weighted-average shares 11,728 11,705 11,718 11,701
Effect of dilutive securities: employee
stock options 126 97 96 123
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Adjusted weighted-average shares (2) 11,854 11,802 11,814 11,824
============= ============= ============= =============
Depreciation and amortization included in
expense above (3) $ 1,147 $ 1,220 $ 2,289 $ 2,405
============= ============= ============= =============
(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.
(3) Amortization of $123,000 and $217,000 included in the three months and six
months ended June 30, 2001, respectively.