EXHIBIT 99.1 Gulf Island Fabrication, Inc. Reports Third Quarter Earnings HOUMA, La.--(BUSINESS WIRE)--Nov. 1, 2006--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $10.5 million ($.75 diluted EPS) on revenue of $90.5 million for its third quarter ended September 30, 2006, compared to net income of $2.2 million ($.18 diluted EPS) on revenue of $37.5 million for the third quarter ended September 30, 2005. Net income for the first nine months of 2006 was $18.6 million ($1.34 diluted EPS) on revenue of $237.8 million, compared to net income of $10.3 million ($.83 diluted EPS) on revenue of $147.1 million for the first nine months of 2005. Included in the Consolidated Statements of Income for the nine months ended September 30, 2006, under the "Other Income (Expense)" section, 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 $417.3 million and a labor backlog of approximately 3.8 million man-hours remaining to work, which consist of work remaining at September 30, 2006 and commitments received since September 30, 2006. SELECTED BALANCE SHEET INFORMATION (in thousands) September 30, December 31, 2006 2005 ------------- ------------ Cash and short-term investments $6,282 $35,901 Total current assets 88,315 103,412 Property, plant and equipment, at cost, net 153,060 59,744 Total assets 242,855 163,806 Total current liabilities 37,574 16,271 Debt 0 0 Shareholders' equity 195,928 138,265 Total liabilities and shareholders' equity 242,855 163,806 The management of Gulf Island Fabrication, Inc. will hold a conference call today November 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 September 30, 2006. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.800.946.0705. A digital rebroadcast of the call is available two hours after the call and ending November 14, 2006 by dialing 1.888.203.1112, replay passcode: 1182943. 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, 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 of jack-up drilling rigs, semi-submersible drilling rigs, TLP's , SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, 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, --------------------- --------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Revenue $90,494 $37,475 $237,818 $147,119 Cost of revenue 72,859 32,872 204,870 127,575 ---------- ---------- ---------- ---------- Gross profit 17,635 4,603 32,948 19,544 General and administrative expenses 2,638 1,492 6,825 4,378 ---------- ---------- ---------- ---------- Operating income 14,997 3,111 26,123 15,166 Other income (expense): Interest expense (130) (9) (419) (45) Interest income 54 358 227 955 Other 77 (3) 1,062 (5) ---------- ---------- ---------- ---------- 1 346 870 905 ---------- ---------- ---------- ---------- Income before income taxes 14,998 3,457 26,993 16,071 Income taxes 4,522 1,245 8,411 5,786 ---------- ---------- ---------- ---------- Net income $10,476 $2,212 $18,582 $10,285 ========== ========== ========== ========== Per share data: Basic earnings per share: $0.75 $0.18 $1.35 $0.84 ========== ========== ========== ========== Diluted income per share: $0.75 $0.18 $1.34 $0.83 ========== ========== ========== ========== Weighted-average shares 13,948 12,255 13,743 12,231 Effect of dilutive securities: employee stock options 92 129 110 122 ---------- ---------- ---------- ---------- Adjusted weighted- average shares 14,040 12,384 13,853 12,353 ========== ========== ========== ========== Depreciation and amortization included in expense above $3,331 $1,587 $9,267 $4,705 ========== ========== ========== ========== Cash dividend declared per common share $0.075 $0.075 $0.225 $0.225 ========== ========== ========== ========== CONTACT: Gulf Island Fabrication, Inc. Kerry J. Chauvin, 985-872-2100 Chief Executive Officer or Joseph "Duke" Gallagher, 985-872-2100 Chief Financial Officer