Gulf Island Fabrication, Inc. Reports First Quarter Earnings

HOUSTON--()--Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net income of $0.1 million ($0.00 diluted income per share) on revenue of $99.2 million for its first quarter ended March 31, 2015, compared to net income of $3.5 million ($0.24 diluted income per share) on revenue of $134.7 million for the first quarter ended March 31, 2014.

The company had a revenue backlog of $135.1 million and a labor backlog of approximately 1.2 million man-hours at March 31, 2015, including commitments received through April 22, 2015, compared to a revenue backlog of $252.9 million and a labor backlog of 2.0 million man-hours reported as of December 31, 2014.

           
(in thousands)
  March 31, December 31,
2015 2014
Cash and cash equivalents $ 50,115 $ 36,085
Total current assets 153,289 172,495
Property, plant and equipment, at cost,net 220,379 224,777
Total assets 374,339 397,943
Total current liabilities 51,481 72,765
Debt - -
Shareholders' equity 284,851 285,798
 

“Our first quarter results reflect the current condition in the energy sector due to low oil prices and our customers’ reduced capital expenditures for 2015. Our cash position has improved and we remain debt free. Our strong balance sheet and access to capital will enable us to weather the current downturn,” said Kirk Meche, President and Chief Executive Officer of Gulf Island Fabrication, Inc.

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, April 24, 2015, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss the Company’s financial results for the quarter ended March 31, 2015. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.271.8594. A digital rebroadcast of the call is available two hours after the call and ending May 1, 2015 by dialing 1.888.203.1112, replay passcode: 1588088.

Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication facilities located in Houma, Louisiana, and San Patricio County, Texas, 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”, and “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
March 31, March 31, December 31,
2015 2014 2014
 
Revenue $ 99,233 $ 134,690 $ 124,760
Cost of revenue   94,785     125,917     113,952  
Gross profit 4,448 8,773 10,808
General and administrative expenses   4,293     3,373     10,056  
Operating income 155 5,400 752
 
Other income (expense):
Interest expense (37 ) (24 ) 35
Interest income 6 3 7
Other income (expense)   3     (104 )   (1 )
  (28 )   (125 )   41  
 
Income before income taxes 127 5,275 793
 
Income taxes   44     1,740     904  
 
 
Net income (loss) $ 83   $ 3,535   $ (111 )
 
 
 
Per share data:
 
Basic earnings (loss) per share - common shareholders $ -   $ 0.24   $ (0.01 )
 
Diluted earnings (loss) per share - common shareholders $ -   $ 0.24   $ (0.01 )
 
 
Basic and Dilutive Weighted-average shares   14,540     14,496     14,518  
 
Depreciation and amortization included in expense above $ 6,599   $ 6,379   $ 6,743  
 
Cash dividend declared per common share $ 0.10   $ 0.10   $ 0.10  

     
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
Three Months Ended March 31
  2015     2014  
Cash flows from operating activities:
Net income $ 83 $ 3,535

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Bad debt expense 400 -
Depreciation 6,599 6,379
Loss on sale of asset - 85
Deferred income taxes (149 ) 1,824
Compensation expense - restricted stock 435 316
Changes in operating assets and liabilities:
Contracts receivable and retainage 28,536 6,075

Costs and estimated earnings in excess of billings on uncompleted contracts

795 4,035
Prepaid expenses and other assets 897 1,276
Inventory (5 ) 134
Accounts payable (14,469 ) (18,363 )

Billings in excess of costs and estimated earnings on uncompleted contracts

(5,558 ) (6,389 )
Accrued employee costs (932 ) (974 )
Accrued expenses 325 (111 )
Accrued contract losses - -
Accrued contract losses (650 ) -
Current income taxes   189     (83 )
 
Net cash provided by (used in) operating activities 16,496 (2,261 )
 
Cash flows from investing activities:
Capital expenditures (1,001 ) (10,589 )
Proceeds on the sale of equipment   -     925  
Net cash used in investing activities (1,001 ) (9,664 )
 
Cash flows from financing activities:
Borrowings against line of credit - 15,000
Payments on line of credit - (15,000 )
Payments of dividends on common stock   (1,465 )   (1,466 )
Net cash used in financing activities   (1,465 )   (1,466 )
Net change in cash and cash equivalents 14,030 (13,391 )
Cash and cash equivalents at beginning of period   36,085     36,569  
Cash and cash equivalents at end of period $ 50,115   $ 23,178  

Contacts

Gulf Island Fabrication, Inc.
Kirk J. Meche, 713-714-6100
Chief Executive Officer
or
Jeffrey M. Favret, 713-714-6100
Chief Financial Officer

Contacts

Gulf Island Fabrication, Inc.
Kirk J. Meche, 713-714-6100
Chief Executive Officer
or
Jeffrey M. Favret, 713-714-6100
Chief Financial Officer