EXHIBIT 99.1 Gulf Island Fabrication, Inc. Reports Fourth Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--Feb. 1, 2006--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $2.7 million ($.22 diluted EPS) on revenue of $41.4 million for its fourth quarter ended December 31, 2005, compared to net income of $2.9 million ($.23 diluted EPS) on revenue of $45.9 million for the fourth quarter ended December 31, 2004. Net income for the twelve months ended December 31, 2005 was $13.0 million ($1.05 diluted EPS) on revenue of $188.5 million, compared to net income of $12.0 million ($.99 diluted EPS) on revenue of $173.9 million for the twelve months ended December 31, 2004. The company had a revenue backlog of $114.6 million and a labor backlog of approximately 1.4 million man-hours remaining to work, which consist of work remaining at December 31, 2005 and commitments received since December 31, 2005. This backlog excludes contracts assumed in the Gulf Marine Fabricators asset purchase. The Company anticipates that approximately 93% of this backlog will be completed during the year 2006. Selected Balance Sheet Information (in thousands) December 31, December 31, 2005 2004 ------------ ------------ Cash, cash equivalents and short-term investments $ 35,901 $ 40,397 Total current assets 103,595 91,290 Property, plant and equipment, at cost, net 59,561 60,346 Total assets 163,806 152,285 Total current liabilities 16,271 16,076 Debt 0 0 Sharholders' equity 138,265 126,584 Total liabilities and shareholders' equity 163,806 152,285 The management of Gulf Island Fabrication, Inc. will hold a conference call on Wednesday, February 1, 2006, 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, 2005. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.946.0741. A digital rebroadcast of the call is available two hours after the call and ending February 10, 2006 by dialing 1.888.203.1112, replay passcode: 2962496. 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 Twelve Months Ended Ended December 31, December 31, ----------------- ------------------- 2005 2004 2005 2004 -------- -------- --------- --------- Revenue $41,426 $45,888 $188,545 $173,878 Cost of revenue 36,973 40,740 164,548 151,205 -------- -------- --------- --------- Gross profit 4,453 5,148 23,997 22,673 General and administrative expenses 1,303 1,055 5,681 4,818 -------- -------- --------- --------- Operating income 3,150 4,093 18,316 17,855 Other income (expense): Interest expense (10) (111) (55) (147) Interest income 440 270 1,395 625 Other (455) (72) (460) (21) -------- -------- --------- --------- (25) 87 880 457 -------- -------- --------- --------- Income before income taxes 3,125 4,180 19,196 18,312 Income taxes 423 1,324 6,209 6,270 -------- -------- --------- --------- Net income $2,702 $2,856 $12,987 $12,042 ======== ======== ========= ========= Per share data: Basic earnings (loss) per share $0.22 $0.24 $1.06 $1.00 ======== ======== ========= ========= Diluted earnings (loss) per share $0.22 $0.23 $1.05 $0.99 ======== ======== ========= ========= Weighted-average shares 12,275 12,150 12,242 12,054 Effect of dilutive securities: employee stock options 172 126 134 134 -------- -------- --------- --------- Adjusted weighted-average shares (1) 12,447 12,276 12,376 12,188 ======== ======== ========= ========= Depreciation and amortization included in expense above $1,574 $1,545 $6,279 $6,041 ======== ======== ========= ========= Cash dividend declared per common share $0.075 $0.050 $0.300 $0.200 ======== ======== ========= ========= (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