Exhibit 99.1
NEWS RELEASE                                             
                                                 
For further information contact:
Kirk J. Meche                                    Jeffrey M. Favret
Chief Executive Officer                          Chief Financial Officer
713.714.6100                                    713.714.6100

FOR IMMEDIATE RELEASE
Thursday, April 28, 2016

GULF ISLAND FABRICATION, INC.
REPORTS FIRST QUARTER EARNINGS

Houston, TX - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net income of $1.0 million ($0.07 diluted earnings per share) on revenue of $84.0 million for its first quarter ended March 31, 2016, compared to net income of $83,000 ($0.00 diluted earnings per share) on revenue of $99.2 million for the first quarter ended March 31, 2015.

The company had a revenue backlog of $197.1 million and a labor backlog of approximately 1.7 million hours at March 31, 2016, including commitments received through April 22, 2016, compared to a revenue backlog of $232.4 million and a labor backlog of 1.9 million hours reported as of December 31, 2015. We expect to recognize revenue from our backlog of approximately $170.1 million and $26.9 million during the remainder of 2016 and during 2017, respectively.

 
March 31, 2016
 
December 31, 2015
 
(in thousands)
 
 
 
 
Cash and cash equivalents
 
$
39,202

 
 
 
$
34,828

 
Total current assets
 
118,990

 
 
 
115,869

 
Property, plant and equipment, net
 
217,403

 
 
 
200,384

 
Total assets
 
339,168

 
 
 
316,923

 
Total current liabilities
 
51,892

 
 
 
37,901

 
Total shareholders’ equity
 
258,623

 
 
 
257,197

 

Our balance sheet position remains stable with $39.2 million in cash, no debt, and working capital of $67.1 million. In addition, we have $59.5 million available under our credit facility for letters of credit and $20.0 million available for general corporate uses. We will continue to monitor and maintain a conservative capital structure as we navigate through the current oil and gas downturn.

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, April 29, 2016, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended March 31, 2016. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.337.8202. A digital rebroadcast of the call is available two hours after the call and ending May 6, 2016 by dialing 1.888.203.1112, replay passcode: 4135780.

Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana, and San Patricio County, Texas, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms “TLPs”, “SPARs”, “FPSOs”, and “MinDOCs”), piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, tanks and barges. The Company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, and steel warehousing and sales.






GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

 
Three Months Ended
 
 
March 31,
 
March 31,
 
December 31,
 
 
2016 (1)
 
2015
 
2015
 
Revenue (2)
$
83,979

 
$
99,233

 
$
55,018

 
Cost of revenue
78,278

 
94,785

 
72,590

 
Gross profit
5,701

 
4,448

 
(17,572
)
 
General and administrative expenses
4,485

 
4,293

 
4,439

 
Asset impairment
—

 
—

 
602

 
Operating income (loss)
1,216

 
155

 
(22,613
)
 
Other income (expense):
 
 
 
 
 
 
Interest expense
(50
)
 
(37
)
 
(39
)
 
Interest income
6

 
6

 
5

 
Other income (expense)
398

 
3

 
—

 
 
354

 
(28
)
 
(34
)
 
Income (loss) before income taxes
1,570

 
127

 
(22,647
)
 
Income taxes (benefit)
581

 
44

 
(7,980
)
 
Net income (loss)
$
989

 
$
83

 
$
(14,667
)
 
Per share data:
 
 
 
 
 
 
Basic and diluted earnings (loss) per share - common shareholders
$
0.07

 
$
—

 
$
(1.01
)
 
Cash dividend declared per common share
$
0.01

 
$
0.10

 
0.10

 
________________
(1)
Results of operations for the three months ended March 31, 2016, include the operations of LEEVAC since the date of its acquisition effective January 1, 2016. Revenues and net loss for the three months ended March 31, 2016 and attributable to LEEVAC were $21.8 million and $(706,000), respectively.
(2)
Revenue for the three months ended March 31, 2016, includes the amortization of $1.2 million of deferred revenue related to the values assigned to contracts acquired in the LEEVAC acquisition.





Operating Segments
Backlog (in thousands)
 
 
March 31, 2016
 
December 31, 2015
Segment
 
$'s
 
Labor hours
 
$'s
 
Labor hours
Fabrication
 
$
48,828

 
524

 
$
62,047

 
724

Shipyards
 
119,984

 
843

 
131,660

 
886

Services
 
28,316

 
308

 
38,720

 
304

Intersegment Eliminations
 
(60
)
 
—

 
(16
)
 
—

Total Backlog
 
$
197,068

 
1,675

 
$
232,411

 
1,914

 
 
 
 
 
 
 
 
 
Results of Operations (in thousands, except percentages)
Fabrication
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
$ Change
 
%
Revenue
 
$
23,829

 
$
56,933

 
$
(33,104
)
 
(58.1
)%
Gross profit (loss)
 
41

 
(256
)
 
297

 
116.0
 %
Gross profit (loss) percentage
 
0.2
%
 
(0.4
)%
 
 
 
0.6
 %
 
 
 
 
 
 
 
 
 
General and administrative expenses
 
1,323

 
2,694

 
(1,371
)
 
(50.9
)%
Operating loss
 
(1,282
)
 
(2,950
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Shipyards
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
$ Change
 
%
Revenue
 
$
34,120

 
$
19,481

 
$
14,639

 
75.1
 %
Gross profit
 
2,329

 
2,441

 
(112
)
 
(4.6
)%
Gross profit percentage
 
6.8
%
 
12.5
%
 
 
 
(5.7
)%
 
 
 
 
 
 
 
 
 
General and administrative expenses
 
1,806

 
431

 
1,375

 
319.0
 %
Operating income
 
523

 
2,010

 
 
 
 
 
 
 
 
 
 
 
 
 
Services
 
 
 
 
 
 
 
 
 
 
2016
 
2015
 
$ Change
 
%
Revenue
 
$
26,559

 
$
24,788

 
$
1,771

 
7.1
%
Gross profit
 
3,331

 
2,263

 
1,068

 
47.2
%
Gross profit percentage
 
12.5
%
 
9.1
%
 
 
 
3.4
%
 
 
 
 
 
 
 
 
 
General and administrative expenses
 
1,236

 
985

 
251

 
25.5
%
Operating income
 
2,095

 
1,278

 
 
 
 
 
 
 
 
 
 
 
 
 





GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 
Three Months Ended March 31,
 
2016
 
2015
 
(in thousands)
Cash flows from operating activities:
 
 
 
Net income
$
989

 
$
83

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
Bad debt expense
30

 
400

Depreciation
6,567

 
6,599

Amortization of deferred revenue
(1,160
)
 
—

Gain on sale of assets
(360
)
 
—

Deferred income taxes
544

 
(149
)
Compensation expense - restricted stock
728

 
435

Changes in operating assets and liabilities:
 
 
 
Contracts receivable and retainage
5,268

 
28,536

Costs and estimated earnings in excess of billings on uncompleted contracts
(1,069
)
 
795

Prepaid expenses and other assets
650

 
897

Inventory
51

 
(5
)
Accounts payable
(10,679
)
 
(14,469
)
Billings in excess of costs and estimated earnings on uncompleted contracts
604

 
(5,558
)
Deferred revenue
(1,623
)
 
—

Accrued employee costs
636

 
(932
)
Accrued expenses
690

 
325

Accrued contract losses
(3,636
)
 
(650
)
Current income taxes
49

 
189

Net cash (used in) provided by operating activities
(1,721
)
 
16,496

Cash flows from investing activities:
 
 
 
Capital expenditures
(724
)
 
(1,001
)
Net cash received in acquisition
1,588

 
—

Proceeds on the sale of equipment
5,377

 
—

Net cash provided by (used in) investing activities
6,241

 
(1,001
)
Cash flows from financing activities:
 
 
 
Payments of dividends on common stock
(146
)
 
(1,465
)
Net cash used in financing activities
(146
)
 
(1,465
)
Net change in cash and cash equivalents
4,374

 
14,030

Cash and cash equivalents at beginning of period
34,828

 
36,085

Cash and cash equivalents at end of period
$
39,202

 
$
50,115