Gulf Island Fabrication, Inc. Reports Third Quarter Earnings

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)
                                                                                     September 30,   December 31,
                                                                                            2009            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; 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,
                                                               2009      2008      2009       2008
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
Other income (expense):
Interest expense                                               (23)      (18)      (58)       (31)
Interest income                                                81        42        101        187
Other                                                          2         (42)      4          (97)
                                                               60        (18)      47         59
Income before income taxes                                     9,227     4,220     25,115     42,283
Income taxes                                                   3,241     1,384     8,916      14,135
Net income                                                     $ 5,986   $ 2,836   $ 16,199   $ 28,148
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
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
Depreciation and amortization included in expense above        $ 4,667   $ 4,615   $ 13,764   $ 13,045
Cash dividend declared per common share                        $ 0.01    $ 0.10    $ 0.12     $ 0.30
(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.

SOURCE: Gulf Island Fabrication, Inc.

Gulf Island Fabrication, Inc. 
Kerry J. Chauvin, 985-872-2100 
Chief Executive Officer 
or 
Robin A. Seibert, 985-872-2100 
Chief Financial Officer

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