Exhibit 99.1 Gulf Island Fabrication, Inc. Reports Third Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--Oct. 22, 2003--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $4.0 million ($.34 diluted EPS) on revenue of $63.3 million for its third quarter ended September 30, 2003, compared to net income of $3.8 million ($.32 diluted EPS) on revenue of $40.3 million for the third quarter ended September 30, 2002. Net income for the first nine months of 2003 was $9.6 million ($.81 diluted EPS) on revenue of $147.5 million, compared to net income of $6.9 million ($.59 diluted EPS), before a cumulative effect of change in accounting principle, on revenue of $100.6 million for the first nine months of 2002. At September 30, 2003, the company had a revenue backlog of $75.5 million and a labor backlog of approximately 900 thousand man-hours remaining to work. SELECTED BALANCE SHEET INFORMATION (in thousands) September 30, December 31, 2003 2002 ------------ ------------ Cash and short-term investments $ 19,574 $ 24,450 Total current assets 80,925 65,032 Property, plant and equipment, at cost, net 58,855 47,471 Total assets 140,427 113,148 Total current liabilities 29,214 12,705 Debt 0 0 Shareholders' equity 105,181 94,976 Total liabilities and shareholders' equity 140,427 113,148 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 Nine Months Ended September 30, September 30, ------------------- ------------------- 2003 2002 2003 2002 -------- -------- -------- -------- Revenue $ 63,329 $ 40,255 $147,505 $100,554 Cost of revenue 56,072 33,483 129,630 87,504 -------- -------- -------- -------- Gross profit 7,257 6,772 17,875 13,050 General and administrative expenses 1,234 1,103 3,568 3,029 -------- -------- -------- -------- Operating income 6,023 5,669 14,307 10,021 Other income (expense): Interest expense (7) (15) (30) (32) Interest income 39 152 170 479 Other 15 1 19 58 -------- -------- -------- -------- 47 138 159 505 -------- -------- -------- -------- Income before income taxes 6,070 5,807 14,466 10,526 Income taxes 2,037 1,974 4,892 3,579 -------- -------- -------- -------- Net income before cumulative effect of change in accounting principle 4,033 3,833 9,574 6,947 Cumulative effect of change in accounting principle (1) - - - (4,765) -------- -------- -------- -------- Net income $ 4,033 $ 3,833 $ 9,574 $ 2,182 ======== ======== ======== ======== Per share data: Basic earnings (loss) per share: Net income before cumulative effect of change in accounting principle $ 0.34 $ 0.33 $ 0.81 $ 0.59 Cumulative effect of change in accounting principle (1) - - - (0.41) -------- -------- -------- -------- Basic earnings (loss) per share $ 0.34 $ 0.33 $ 0.81 $ 0.19 ======== ======== ======== ======== Diluted income (loss) per share: (2) Net income before cumulative effect of change in accounting principle $ 0.34 $ 0.32 $ 0.81 $ 0.59 Cumulative effect of change in accounting principle (1) - - - (0.40) -------- -------- -------- -------- Diluted earnings (loss) per share $ 0.34 $ 0.32 $ 0.81 $ 0.18 ======== ======== ======== ======== Weighted-average shares 11,787 11,744 11,774 11,727 Effect of dilutive securities: employee stock options 100 71 119 87 -------- -------- -------- -------- Adjusted weighted-average shares (2) 11,887 11,815 11,893 11,814 ======== ======== ======== ======== Depreciation and amortization included in expense above $ 1,353 $ 1,150 $ 3,887 $ 3,439 ======== ======== ======== ======== (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, 985-872-2100 or Joseph "Duke" Gallagher, 985-872-2100