Exhibit 99.1 Gulf Island Fabrication, Inc. Reports Third Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--Oct. 26, 2005--Gulf Island Fabrication, Inc. (NASDAQ:GIFI) today reported net income of $2.2 million ($.18 diluted EPS) on revenue of $37.5 million for its third quarter ended September 30, 2005, compared to net income of $1.7 million ($.14 diluted EPS) on revenue of $35.8 million for the third quarter ended September 30, 2004. Net income for the first nine months of 2005 was $10.3 million ($.83 diluted EPS) on revenue of $147.1 million, compared to net income of $9.2 million ($.76 diluted EPS) on revenue of $128.0 million for the first nine months of 2004. The company had a revenue backlog of $105.7 million and a labor backlog of approximately 1.4 million man-hours remaining to work, which consist of work remaining at September 30, 2005 and commitments received since September 30, 2005. SELECTED BALANCE SHEET INFORMATION (in thousands) September 30, December 31, 2005 2004 --------------------------- Cash and short-term investments $41,878 $40,397 Total current assets 98,140 91,290 Property, plant and equipment, at cost, net 58,748 60,346 Total assets 157,538 152,285 Total current liabilities 12,172 16,076 Debt 0 0 Shareholders' equity 136,156 126,584 Total liabilities and shareholders' equity 157,538 152,285 The management of Gulf Island Fabrication, Inc. will hold a conference call today, October 26, 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 September 30, 2005. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.474.8920. A digital rebroadcast of the call is available two hours after the call and ending November 4, 2005 by dialing 1.888.203.1112, replay passcode: 6724442. 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, -------------------- ------------------- 2005 2004 2005 2004 --------- -------- -------- -------- Revenue $ 37,475 $ 35,753 $147,119 $127,990 Cost of revenue 32,872 32,060 127,575 110,465 --------- -------- -------- -------- Gross profit 4,603 3,693 19,544 17,525 General and administrative expenses 1,492 1,197 4,378 3,763 --------- -------- -------- -------- Operating income 3,111 2,496 15,166 13,762 Other income (expense): Interest expense (9) (9) (45) (36) Interest income 358 168 955 355 Other (3) 4 (5) 51 --------- -------- -------- -------- 346 163 905 370 --------- -------- -------- -------- Income before income taxes 3,457 2,659 16,071 14,132 Income taxes 1,245 931 5,786 4,946 --------- -------- -------- -------- Net income $ 2,212 $ 1,728 $ 10,285 $ 9,186 ========= ======== ======== ======== Per share data: Basic earnings per share: $ 0.18 $ 0.14 $ 0.84 $ 0.76 ========= ======== ======== ======== Diluted income per share: $ 0.18 $ 0.14 $ 0.83 $ 0.76 ========= ======== ======== ======== Weighted-average shares 12,255 12,136 12,231 12,022 Effect of dilutive securities: employee stock options 129 121 122 137 --------- -------- -------- -------- Adjusted weighted- average shares 12,384 12,257 12,353 12,159 ========= ======== ======== ======== Depreciation included in expense above $ 1,587 $ 1,525 $ 4,705 $ 4,496 ========= ======== ======== ======== Cash dividend declared per common share $ 0.075 $ 0.05 $ 0.225 $ 0.15 ========= ======== ======== ======== CONTACT: Gulf Island Fabrication Inc., Houma Kerry J. Chauvin, 985-872-2100 or Joseph "Duke" Gallagher, 985-872-2100