Exhibit 99.1 Gulf Island Fabrication, Inc. Reports Second Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--July 26, 2006--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $6.0 million ($.43 diluted EPS) on revenue of $90.0 million for its second quarter ended June 30, 2006, compared to net income of $4.6 million ($.37 diluted EPS) on revenue of $55.4 million for the second quarter ended June 30, 2005. Net income for the first six months of 2006 was $8.1 million ($.59 diluted EPS) on revenue of $147.3 million, compared to net income of $8.1 million ($.65 diluted EPS) on revenue of $109.6 million for the first six months of 2005. Included in the Consolidated Statements of Income for the six months ended June 30, 2006, under the other income (expense), is the $983,000 gain resulting from the sale of the Company's interest in MinDOC, L.L.C., effective January 23, 2006. The company had a revenue backlog of $171.8 million and a labor backlog of approximately 2.1 million man-hours remaining to work, which consist of work remaining at June 30, 2006 and commitments received since June 30, 2006. SELECTED BALANCE SHEET INFORMATION (in thousands) June 30, December 31, 2006 2005 ----------- ----------- Cash and short-term investments $ 13,328 $ 35,901 Total current assets 104,714 103,412 Property, plant and equipment, at cost, net 139,820 59,744 Total assets 246,244 163,806 Total current liabilities 34,526 16,271 Debt 17,200 0 Shareholders' equity 185,630 138,265 Total liabilities and shareholders' equity 246,244 163,806 The management of Gulf Island Fabrication, Inc. will hold a conference call today July 26, 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 June 30, 2006. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.406.5345. A digital rebroadcast of the call is available two hours after the call and ending August 4, 2006 by dialing 1.888.203.1112, replay passcode: 2416235. Gulf Island Fabrication, Inc., based in Houma, Louisiana, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms ("TLPs")), "SPARs and FPSOs", piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, tanks and barges. The Company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading jack-up drilling rigs, semi-submersible drilling rigs, TLP's , SPARs or other similar cargo onshore and offshore scaffolding and piping insulation services and steel warehousing and sales. EXHIBIT 99.1 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, ----------------- ------------------- 2006 2005 2006 2005 ------- ------- -------- -------- Revenue $89,955 $55,412 $147,324 $109,644 Cost of revenue 79,005 46,978 132,011 94,703 ------- ------- -------- -------- Gross profit 10,950 8,434 15,313 14,941 General and administrative expenses 2,050 1,514 4,187 2,886 ------- ------- -------- -------- Operating income 8,900 6,920 11,126 12,055 Other income (expense): Interest expense (155) (9) (289) (36) Interest income 92 310 173 597 Other 2 1 985 (2) ------- ------- -------- -------- (61) 302 869 559 ------- ------- -------- -------- Income before income taxes 8,839 7,222 11,995 12,614 Income taxes 2,886 2,652 3,889 4,541 ------- ------- -------- -------- Net income $ 5,953 $ 4,570 $ 8,106 $ 8,073 ======= ======= ======== ======== Per share data: Basic earnings per share: $ 0.43 $ 0.37 $ 0.59 $ 0.66 ======= ======= ======== ======== Diluted income per share: $ 0.43 $ 0.37 $ 0.59 $ 0.65 ======= ======= ======== ======== Weighted-average shares 13,916 12,241 13,641 12,219 Effect of dilutive securities: employee stock options 85 103 119 118 ------- ------- -------- -------- Adjusted weighted- average shares 14,001 12,344 13,760 12,337 ======= ======= ======== ======== Depreciation and amortization included in expense above $ 3,067 $ 1,565 $ 5,936 $ 3,118 ======= ======= ======== ======== Cash dividend declared per common share $ 0.075 $ 0.075 $ 0.15 $ 0.15 ======= ======= ======== ======== CONTACT: Gulf Island Fabrication, Inc. Joseph "Duke" Gallagher, 985-872-2100 or Kerry J. Chauvin, 985-872-2100 http://www.gulfisland.com