GIFI Gulf Island Fabrication Inc

Gulf Island Fabrication, Inc. (NASDAQ:GIFI) today reported a net loss of $0.1 million (($0.01) diluted loss per share) on revenue of $124.8 million for its fourth quarter ended December 31, 2014, compared to a net loss of $3.1 million (($0.22) diluted loss per share) on revenue of $135.1 million for the fourth quarter ended December 31, 2013. Net income for the twelve months ended December 31, 2014 was $15.3 million ($1.05 diluted earnings per share) on revenue of $506.6 million, compared to net income of $7.2 million ($0.50 diluted earnings per share) on revenue of $608.3 million.

The company had a revenue backlog of $184.7 million and a labor backlog of approximately 1.7 million man-hours at December 31, 2014, including commitments received through February 25, 2015, compared to a revenue backlog of $252.9 million and a labor backlog of 2.0 million man-hours reported as of September 30, 2014.

          SELECTED BALANCE SHEET INFORMATION (in thousands) December 31, December 31, 2014 2013 Cash and cash equivalents $ 36,085 $ 36,569 Total current assets 177,110 201,996 Property, plant and equipment, at cost,net 224,777 223,555 Total assets 402,558 426,234 Total current liabilities 77,380 112,275 Debt - - Shareholders' equity 285,798 275,562  

“Our margins remain positive both in terms of year over year and fourth quarter 2014 over the comparable quarter 2013 results, as a reflection of the changes we have implemented within our company as we continue to search for ways to improve our project execution,” said Kirk Meche, President and Chief Executive Offer of Gulf Island Fabrication, Inc.

Our fourth quarter 2014 results were negatively impacted by a charge of $3.6 million for an allowance related to a receivable for a large Deepwater hull that was completed in the first quarter of 2014, an impairment charge of $3.2 million related to assets held for sale and a higher effective tax rate for 2014.

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, February 27, 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 December 31, 2014. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.256.0990. A digital rebroadcast of the call is available two hours after the call and ending March 6, 2015 by dialing 1.888.203.1112, replay passcode: 8835519.

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 Three Months Ended Twelve Months Ended December 31, September 30, December 31, 2014 2013 2014 2014 2013   Revenue $ 124,760 $ 135,138 $ 118,020 $ 506,639 $ 608,326 Cost of revenue   113,952     136,913     103,367     462,083     584,665   Gross profit 10,808 (1,775 ) 14,653 44,556 23,661 General and administrative expenses   10,056     2,598     3,307     20,609     11,555   Operating income (loss) 752 (4,373 ) 11,346 23,947 12,106   Other income (expense): Interest expense 35 (70 ) (23 ) (37 ) (237 ) Interest income 7 - 1 13 3 Other income (expense)   (1 )   (279 )   (2 )   (99 )   (337 )   41     (349 )   (24 )   (123 )   (571 )   Income (loss) before income taxes 793 (4,722 ) 11,322 23,824 11,535   Income taxes   904     (1,612 )   3,736     8,504     4,303       Net income (loss) $ (111 ) $ (3,110 ) $ 7,586   $ 15,320   $ 7,232         Per share data:   Basic earnings per share - common shareholders $ (0.01 ) $ (0.22 ) $ 0.52   $ 1.05   $ 0.50     Diluted earnings per share - common shareholders $ (0.01 ) $ (0.22 ) $ 0.52   $ 1.05   $ 0.50       Weighted-average shares 14,518 14,477 14,506 14,505 14,462 Effect of dilutive securities: employee stock options   -     7     -     -     6   Adjusted weighted-average shares   14,518     14,484     14,506     14,505     14,468     Depreciation and amortization included in expense above $ 6,743   $ 6,362   $ 6,735   $ 26,436   $ 25,108     Cash dividend declared per common share $ 0.10   $ 0.10   $ 0.10   $ 0.40   $ 0.40               GULF ISLAND FABRICATION, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in thousands, except per share data)     Twelve Months Ended December 31, 2014 2013   Operating activities: Net income $ 15,320 $ 7,232

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation 26,436 25,087 Allowance for Doubtful Accounts, net of recoveries 3,168 887 Asset impairment 3,200 - Anticipated loss on contracts 818 (3,790 ) Loss on the sale of assets 85 353 Deferred income taxes 8,264 3,788 Compensation expense - stock comp plans 1,140 672 Excess tax benefits from share-based payment arrangements - (116 ) Changes in operating assets and liabilities: Contracts receivable, net

14,963

(55,353 ) Contract retainage 111 1,187

Costs and estimated earnings in excess of billings on uncompleted contracts

(6,877

) 1,590 Prepaid subcontractor costs - 33,145 Prepaid expenses and other assets 352 (385 ) Inventory 1,189 (6,325 ) Accounts payable (25,782 ) 16,569

Billings in excess of costs and estimated earnings on uncompleted contracts

(11,625 ) 9,418 Accrued employee costs (154 ) 1,854 Accrued expenses 1,487 (1,462 ) Current income taxes   15     3,652   Net cash provided by operating activities 32,110 38,003   Cash flows from investing activities: Capital expenditures, net (27,658 ) (21,353 ) Proceeds on the sale of equipment   929     551   Net cash used in investing activities (26,729 ) (20,802 )   Cash flows from financing activities: Borrowings against notes payable 22,000 45,000 Payments on notes payable (22,000 ) (45,000 ) Proceeds from exercise of stock options - 203 Excess tax benefit from share-based payment arrangements - 116 Payments of dividends on common stock   (5,865 )   (5,839 ) Net cash used in financing activities   (5,865 )   (5,520 ) Net (decrease) increase in cash and cash equivalents (484 ) 11,681 Cash and cash equivalents at beginning of period   36,569     24,888   Cash and cash equivalents at end of period $ 36,085   $ 36,569     Supplemental cash flow information: Interest paid $ 169   $ 843   Income taxes paid (received), net of payments (refunds) $ 225   $ 3,138  

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