Exhibit 99.1 Gulf Island Fabrication, Inc. Reports Second Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--July 23, 2003--Gulf Island Fabrication, Inc. (NASDAQ:GIFI) today reported net income of $2.3 million ($.20 diluted EPS) on revenue of $44.6 million for its second quarter ended June 30, 2003, compared to net income of $1.7 million ($.15 diluted EPS) on revenue of $33.1 million for the second quarter ended June 30, 2002. Net income for the first six months of 2003 was $5.5 million ($.47 diluted EPS) on revenue of $84.2 million, compared to net income of $3.1 million ($.26 diluted EPS), before a cumulative effect of change in accounting principle, on revenue of $60.3 million for the first six months of 2002. At June 30, 2003, the company had a revenue backlog of $98.6 million and a labor backlog of approximately 1.2 million man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands) June 30, December 31, 2003 2002 ---------- ------------ Cash and short-term investments $13,765 $24,450 Total current assets 67,259 65,032 Property, plant and equipment, at cost, net 58,921 47,471 Total assets 126,826 113,148 Total current liabilities 19,682 12,705 Debt 0 0 Shareholders' equity 101,063 94,976 Total liabilities and shareholders' equity 126,826 113,148 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. 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, ------------------ ---------------- 2003 2002 2003 2002 -------- -------- -------- -------- Revenue $44,603 $33,053 $84,176 $60,299 Cost of revenue 39,959 29,573 73,558 54,021 -------- -------- -------- -------- Gross profit 4,644 3,480 10,618 6,278 General and administrative expenses 1,156 1,018 2,334 1,926 -------- -------- -------- -------- Operating income 3,488 2,462 8,284 4,352 Other income (expense): Interest expense (14) (9) (23) (18) Interest income 49 168 131 328 Other 1 - 4 57 -------- -------- -------- -------- 36 159 112 367 -------- -------- -------- -------- Income before income taxes 3,524 2,621 8,396 4,719 Income taxes 1,203 892 2,855 1,605 -------- -------- -------- -------- Net income before cumulative effect of change in accounting principle 2,321 1,729 5,541 3,114 Cumulative effect of change in accounting principle (1) - - - (4,765) -------- -------- -------- -------- Net income (loss) $2,321 $1,729 $5,541 $(1,651) ======== ======== ======== ======== Per share data: Basic earnings (loss) per share: Net income before cumulative effect of change in accounting principle $0.20 $0.15 $0.47 $0.27 Cumulative effect of change in accounting principle (1) - - - (0.41) -------- -------- -------- -------- Basic earnings (loss) per share $0.20 $0.15 $0.47 $(0.14) ======== ======== ======== ======== Diluted income (loss) per share:(2) Net income before cumulative effect of change in accounting principle $0.20 $0.15 $0.47 $0.26 Cumulative effect of change in accounting principle (1) - - - (0.40) -------- -------- -------- -------- Diluted earnings (loss) per share $0.20 $0.15 $0.47 $(0.14) ======== ======== ======== ======== Weighted-average shares 11,778 11,728 11,768 11,718 Effect of dilutive securities: employee stock options 122 126 128 96 -------- -------- -------- -------- Adjusted weighted-average shares (2) 11,900 11,854 11,896 11,814 ======== ======== ======== ======== Depreciation and amortization included in expense above $1,299 $1,147 $2,534 $2,289 ======== ======== ======== ======== (1) Included in the first quarter ended March 31, 2002, 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. CONTACT: Gulf Island Fabrication, Inc., Houma Kerry J. Chauvin or Joseph "Duke" Gallagher, 985-872-2100 http://www.gulfisland.com