Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income of $6.0 million ($.41 diluted EPS) on revenue of $76.6 million for its third quarter ended September 30, 2009, compared to net income of $2.8 million ($.20 diluted EPS) on revenue of $92.7 million for the third quarter ended September 30, 2008. Net income for the nine months ended September 30, 2009 was $16.2 million ($1.12 diluted EPS) on revenue of $240.8 million, compared to the net income of $28.1 million ($1.96 diluted EPS) on revenue of $334.3 million for the nine months ended September 30, 2008.
The company had a revenue backlog of $136.1 million and a labor backlog of approximately 1.5 million man-hours remaining to work, which consists of work remaining at September 30, 2009 and commitments received through October 22, 2009. In past quarters the Company included $147.7 million and 1.6 million man-hours in the backlog related to the MinDOC II project. Although not formally cancelled, due to current economic conditions, it is not likely the MinDOC II project will return to active status in the near future.
| SELECTED BALANCE SHEET INFORMATION | ||||||||||||
| (in thousands) | ||||||||||||
| Â | Â | Â | Â | September 30, | Â | December 31, | ||||||
| Â | 2009 | Â | 2008 | |||||||||
| Cash, cash equivalents and short-term investments | $ | 8,227 | $ | 13,839 | ||||||||
| Total current assets | 122,551 | 136,380 | ||||||||||
| Property, plant and equipment, at cost,net | 202,492 | 204,695 | ||||||||||
| Total assets | 338,497 | 350,890 | ||||||||||
| Total current liabilities | 46,216 | 74,940 | ||||||||||
| Debt | 0 | 0 | ||||||||||
| Shareholders'' equity | 269,162 | 254,207 | ||||||||||
| Total liabilities and shareholders'' equity | 338,497 | 350,890 | ||||||||||
The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, October 23, 2009, 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, 2009. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.215.6825. A digital rebroadcast of the call is available two hours after the call and ending October 31, 2009 by dialing 1.888.203.1112, replay passcode: 7247356.
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; various production, compressor and utility modules; offshore living quarters; brown water tow boats; tanksand 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) | |||||||||||||
| Â | Â | Â | Â | ||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
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| Revenue | $ 76,631 | $ 92,657 | $ 240,763 | $ 334,309 | |||||||||
| Cost of revenue | 65,413 | 86,349 | 209,448 | 284,746 | |||||||||
| Gross profit | 11,218 | 6,308 | 31,315 | 49,563 | |||||||||
| General and administrative expenses | 2,051 | 2,070 | 6,247 | 7,339 | |||||||||
| Operating income | 9,167 | 4,238 | 25,068 | 42,224 | |||||||||
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| Other income (expense): | |||||||||||||
| Interest expense | (23) | (18) | (58) | (31) | |||||||||
| Interest income | 81 | 42 | 101 | 187 | |||||||||
| Other | 2 | (42) | 4 | (97) | |||||||||
| 60 | (18) | 47 | 59 | ||||||||||
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| Income before income taxes | 9,227 | 4,220 | 25,115 | 42,283 | |||||||||
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| Income taxes | 3,241 | 1,384 | 8,916 | 14,135 | |||||||||
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| Net income | $ 5,986 | $ 2,836 | $ 16,199 | $ 28,148 | |||||||||
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| Per share data (a): | |||||||||||||
| Basic earnings (loss) per share - common shareholders | $ 0.41 | $ 0.20 | $ 1.12 | $ 1.97 | |||||||||
| Diluted earnings (loss) per share - common shareholders | $ 0.41 | $ 0.20 | $ 1.12 | $ 1.96 | |||||||||
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| Weighted-average shares | 14,293 | 14,278 | 14,293 | 14,249 | |||||||||
| Effect of dilutive securities: employee stock options | 2 | 40 | 2 | 40 | |||||||||
| Adjusted weighted-average shares | 14,295 | 14,318 | 14,295 | 14,289 | |||||||||
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| Depreciation and amortization included in expense above | $ 4,667 | $ 4,615 | $ 13,764 | $ 13,045 | |||||||||
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| Cash dividend declared per common share | $ 0.01 | $ 0.10 | $ 0.12 | $ 0.30 | |||||||||
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| (a) - Basic and diluted earnings per share for the three-month period ended September 30, 2009 and nine-month periods ended September 30, 2009 and 2008 have been reduced by $0.01 per share as the result of adopting standards contained in ASC 260-10-45-61A effective January 1, 2009. | |||||||||||||
Contacts:
Gulf Island Fabrication, Inc.
Kerry J. Chauvin, 985-872-2100
Chief
Executive Officer
or
Robin A. Seibert, 985-872-2100
Chief
Financial Officer
