Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net income of $1.6 million ($.11 diluted EPS) on revenue of $85.8 million for its third quarter ended September 30, 2011, compared to net income of $3.5 million ($.24 diluted EPS) on revenue of $60.7 million for the third quarter ended September 30, 2010. Net loss for the nine months ended September 30, 2011 was $3.6 million ($.25 diluted loss per share) on revenue of $219.4 million, compared to the net income of $11.4 million ($.79 diluted EPS) on revenue of $205.3 million for the nine months ended September 30, 2010. Included in the reported loss was a $7.7 million pre-tax charge in the first quarter related to the total impairment of an insurance claim.
The company had a revenue backlog of $664.7 million and a labor backlog of approximately 5.2 million man-hours, consisting of work remaining on commitments received through October 27, 2011.
| SELECTED BALANCE SHEET INFORMATION | ||||||
| (in thousands) | ||||||
| September 30, | December 31, | |||||
| 2011 | 2010 | |||||
| Cash and cash equivalents | $ | 61,192 | $ | 88,072 | ||
| Total current assets | 157,959 | 130,622 | ||||
| Property, plant and equipment, at cost,net | 214,063 | 197,652 | ||||
| Total assets | 375,151 | 334,856 | ||||
| Total current liabilities | 61,992 | 18,511 | ||||
| Debt | 0 | 0 | ||||
| Shareholders' equity | 281,749 | 287,192 | ||||
| Total liabilities and shareholders' equity | 375,151 | 334,856 | ||||
The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, October 28, 2011 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, 2011. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.811.5445. A digital rebroadcast of the call is available two hours after the call and ending November 4, 2011 by dialing 1.888.203.1112, replay passcode: 4512779.
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”, “MinDOCs”, piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, 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, TLPs, 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, | |||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Revenue | $ | 85,827 | $ | 60,733 | $ | 219,426 | $ | 205,282 | ||||
| Cost of revenue: | ||||||||||||
| Contract costs | 81,823 | 53,798 | 212,454 | 184,174 | ||||||||
| Asset impairments | - | - | 7,690 | - | ||||||||
| Total cost of revenue | 81,823 | 53,798 | 220,144 | 184,174 | ||||||||
| Gross profit (loss) | 4,004 | 6,935 | (718) | 21,108 | ||||||||
| General and administrative expenses | 1,910 | 1,997 | 5,804 | 6,084 | ||||||||
| Operating income (loss) | 2,094 | 4,938 | (6,522) | 15,024 | ||||||||
| Other income (expense): | ||||||||||||
| Interest expense | (48) | (19) | (102) | (57) | ||||||||
| Interest income | 378 | 1,044 | 549 | 2,363 | ||||||||
| Other | 89 | 23 | 317 | 1,054 | ||||||||
| 419 | 1,048 | 764 | 3,360 | |||||||||
| Income (loss) before income taxes | 2,513 | 5,986 | (5,758) | 18,384 | ||||||||
| Income taxes | 954 | 2,524 | (2,188) | 6,985 | ||||||||
| Net income (loss) | $ | 1,559 | $ | 3,462 | $ | (3,570) | $ | 11,399 | ||||
| Per share data: | ||||||||||||
| Basic earnings (loss) per share - common shareholders | $ | 0.11 | $ | 0.24 | $ | (0.25) | $ | 0.79 | ||||
| Diluted earnings (loss) per share - common shareholders | $ | 0.11 | $ | 0.24 | $ | (0.25) | $ | 0.79 | ||||
| Weighted-average shares | 14,351 | 14,318 | 14,347 | 14,316 | ||||||||
| Effect of dilutive securities: employee stock options | 25 | 2 | - | 9 | ||||||||
| Adjusted weighted-average shares | 14,376 | 14,320 | 14,347 | 14,325 | ||||||||
| Depreciation and amortization included in expense above | $ | 5,159 | $ | 4,797 | $ | 15,215 | $ | 14,412 | ||||
| Cash dividend declared per common share | $ | 0.06 | $ | 0.01 | $ | 0.18 | $ | 0.03 | ||||
Kerry J. Chauvin, 985-872-2100
Chief Executive Officer
or
Robin A. Seibert, 985-872-2100
Chief Financial Officer