Exhibit 99.1 Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--Feb. 2, 2005--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $2.9 million ($.23 diluted EPS) on revenue of $45.9 million for its fourth quarter ended December 31, 2004, compared to net income of $6.2 million ($.52 diluted EPS) on revenue of $56.2 million for the fourth quarter ended December 31, 2003. Net income for the twelve months ended December 31, 2004 was $12.0 million ($.99 diluted EPS) on revenue of $173.9 million, compared to net income of $15.8 million ($1.33 diluted EPS) on revenue of $203.7 million for the twelve months ended December 31, 2003. The company had a revenue backlog of $88.2 million and a labor backlog of approximately 1.1 million man-hours remaining to work, which consist of work remaining at December 31, 2004 and commitments received since December 31, 2004. SELECTED BALANCE SHEET INFORMATION (in thousands) December 31, December 31, 2004 2003 ------------ ------------- Cash, cash equivalents and short-term investments $40,397 $22,050 Total current assets 91,290 81,407 Property, plant and equipment, at cost, net 60,346 58,259 Total assets 152,285 140,316 Total current liabilities 16,076 20,696 Debt 0 0 Shareholders' equity 126,584 111,591 Total liabilities and shareholders' equity 152,285 140,316 The management of Gulf Island Fabrication, Inc. will hold a conference call on Wednesday, February 2, 2005, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company's financial results for the quarter ended December 31, 2004. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.946.0785. A digital rebroadcast of the call is available two hours after the call and ending February 8, 2005 by dialing 1.888.203.1112, replay passcode: 216143. 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 Twelve Months Ended December 31, December 31, -------------------- ------------------- 2004 2003 2004 2003 ----------- -------- --------- --------- Revenue $45,888 $56,162 $173,878 $203,667 Cost of revenue 40,740 45,135 151,205 174,765 ----------- -------- --------- --------- Gross profit 5,148 11,027 22,673 28,902 General and administrative expenses 1,055 1,600 4,818 5,168 ----------- -------- --------- --------- Operating income 4,093 9,427 17,855 23,734 Other income (expense): Interest expense (111) (10) (147) (40) Interest income 270 44 625 214 Other (72) - (21) 19 ----------- -------- --------- --------- 87 34 457 193 ----------- -------- --------- --------- Income before income taxes 4,180 9,461 18,312 23,927 Income taxes 1,324 3,243 6,270 8,135 ----------- -------- --------- --------- Net income $2,856 $6,218 $12,042 $15,792 =========== ======== ========= ========= Per share data: Basic earnings (loss) per share $0.24 $0.53 $1.00 $1.34 =========== ======== ========= ========= Diluted earnings (loss) per share $0.23 $0.52 $0.99 $1.33 =========== ======== ========= ========= Weighted-average shares 12,150 11,793 12,054 11,779 Effect of dilutive securities: employee stock options 126 108 134 116 ----------- -------- --------- --------- Adjusted weighted-average shares (1) 12,276 11,901 12,188 11,895 =========== ======== ========= ========= Depreciation and amortization included in expense above $1,545 $1,437 $6,041 $5,324 =========== ======== ========= ========= Cash dividend declared per common share $0.05 $- $0.20 $- =========== ======== ========= ========= (1) 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