EXHIBIT 99.2 NEWS RELEASE 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, FEBRUARY 5, 2003 GULF ISLAND FABRICATION, INC. REPORTS FOURTH QUARTER EARNINGS Houma, LA - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $3.4 million ($.29 diluted EPS) on revenue of $42.4 million for its fourth quarter ended December 31, 2002, compared to net income of $1.2 million ($.11 diluted EPS) on revenue of $21.4 million for the fourth quarter ended December 31, 2001. Net income for the twelve months ended December 31, 2002 was $10.3 million ($.87 diluted EPS), before a cumulative effect of change in accounting principle, on revenue of $142.9 million, compared to net income of $7.3 million ($.62 diluted EPS) on revenue of $113.7 million for the twelve months ended December 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. Net income after a cumulative effect of change in accounting principle for the period ended December 31,2002 was $5.6 million ($.47 diluted EPS). At December 31, 2002, the Company had a revenue backlog of $92.5 million and a labor backlog of approximately 1.3 million man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands)
December 31, December 31, 2002 2001 ------------ ------------ Cash and short-term investments $ 24,450 $ 35,032 Total current assets 65,032 55,461 Property, plant and equipment, at cost,net 47,471 41,666 Total assets 113,148 102,538 Total current liabilities 12,705 8,860 Debt 0 0 Shareholders' equity (a) 94,976 88,905 Total liabilities and shareholders' equity 113,148 102,538
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. (a) Reference to Footnote 1 shown on page 2 (Consolidated Statements of Income). EXHIBIT 99.2 GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------ ------------------------ 2002 2001 2002 2001 --------- --------- --------- --------- Revenue $ 42,365 $ 21,376 $ 142,919 $ 113,697 Cost of revenue 36,139 18,599 123,643 98,330 --------- --------- --------- --------- Gross profit 6,226 2,777 19,276 15,367 General and administrative expenses 1,202 1,041 4,231 4,435 --------- --------- --------- --------- Operating income 5,024 1,736 15,045 10,932 Other income (expense): Interest expense (7) (9) (39) (36) Interest income 132 229 611 1,103 Other (6) (11) 52 (748) --------- --------- --------- --------- 119 209 624 319 --------- --------- --------- --------- Income before income taxes 5,143 1,945 15,669 11,251 Income taxes 1,753 699 5,332 3,990 --------- --------- --------- --------- Net income before cumulative effect of change in accounting principle 3,390 1,246 10,337 7,261 Cumulative effect of change in accounting principle (1) -- -- (4,765) -- --------- --------- --------- --------- Net income $ 3,390 $ 1,246 $ 5,572 $ 7,261 ========= ========= ========= ========= Per share data: Basic earnings per share: Net income before cumulative effect of change in accounting principle $ 0.29 $ 0.11 $ 0.88 $ 0.62 Cumulative effect of change in accounting principle(1) -- -- (0.41) -- --------- --------- --------- --------- Basic earnings per share $ 0.29 $ 0.11 $ 0.47 $ 0.62 ========= ========= ========= ========= Diluted earnings per share:(2) Net income before cumulative effect of change in accounting principle $ 0.29 $ 0.11 $ 0.87 $ 0.62 Cumulative effect of change in accounting principle(1) -- -- (0.40) -- --------- --------- --------- --------- Diluted earnings per share $ 0.29 $ 0.11 $ 0.47 $ 0.62 ========= ========= ========= ========= Weighted-average shares 11,745 11,707 11,731 11,704 Effect of dilutive securities: employee stock options 80 43 86 85 --------- --------- --------- --------- Adjusted weighted-average shares(2) 11,825 11,750 11,817 11,789 ========= ========= ========= ========= Depreciation and amortization included in expense above(3) $ 1,126 $ 1,239 $ 4,565 $ 4,866 ========= ========= ========= =========
(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) Goodwill amortization of $108,000 and $433,000 included in the three months and twelve months ended December 31, 2001, respectively.