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:
Kirk J. Meche, 713-714-6100
Chief
Executive Officer
or
Jeffrey M. Favret, 713-714-6100
Chief
Financial Officer
