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
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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.