Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a
net income of $1.4 million ($0.09 diluted income per share) on
revenue of $84.3 million for its second quarter ended June 30,
2015, compared to net income of $4.3 million ($0.30 diluted income
per share) on revenue of $129.2 million for the second quarter
ended June 30, 2014.
The company had a revenue backlog of $126.2 million and a labor
backlog of approximately 1.3 million man-hours at June 30, 2015,
including commitments received through July 21, 2015, compared
to a revenue backlog of $135.1 million and a labor backlog of 1.2
million man-hours reported as of March 31, 2015.
June 30,2015
December 31,2014
(in thousands) Cash and cash equivalents $ 53,384 $ 36,085
Total current assets 141,084 172,495 Property, plant and equipment,
net 215,790 224,777 Total assets 357,546 397,943 Total current
liabilities 34,921 72,765 Total shareholders’ equity $ 285,451 $
285,798
“Our second quarter results reflect improved margins on several
projects completed during the quarter and increased activity
related to offshore maintenance and repair work. Our cash position
improved over the prior quarter with $6.7 million in operating cash
flows generated for the current quarter and through careful control
over capital expenditures. We remain debt free. Our strong emphasis
on cash management during this down cycle allows us to continue to
more than adequately cover dividend distributions at our current
levels. While we see no significant improvements in the oil and gas
sector as we move into the second half of this year, a shift in
focus to marine opportunities, and continued offshore services work
combined with our strong balance sheet will enable us to weather
these conditions,” said Kirk Meche, President and Chief Executive
Officer of Gulf Island Fabrication, Inc.
The Company also reported today that its Board of Directors
authorized the Company to repurchase up to $10.0 million in shares
of its common stock under a share repurchase program. Repurchases
may be effected through open market purchases or in privately
negotiated transactions at such times and in such amounts as
management deems appropriate, depending on market conditions and
other factors. The repurchase program does not obligate the Company
to acquire any particular amount of common stock and may be
modified, suspended or discontinued at any time. This authorization
remains in effect through July 30, 2017.
The management of Gulf Island Fabrication, Inc. will hold a
conference call on Friday, July 31, 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 June 30, 2015. The call is
accessible by webcast (www.gulfisland.com) through CCBN and by
dialing 1.888.219.1217. A digital rebroadcast of the call is
available two hours after the call and ending August 7, 2015 by
dialing 1.888.203.1112, replay passcode: 9207073.
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 June 30, June 30,
March 31, 2015 2014 2015 Revenue $ 84,338 $ 129,169 $ 99,233
Cost of revenue 78,533 118,847 94,785 Gross
profit 5,805 10,322 4,448 General and administrative expenses 3,726
3,873 4,293 Operating income 2,079 6,449 155
Other income (expense): Interest expense (50 ) (25 ) (37 ) Interest
income 7 2 6 Other income (expense) 17 8 3 (26
) (15 ) (28 ) Income before income taxes 2,053 6,434 127 Income
taxes 696 2,124 44 Net income $ 1,357 $
4,310 $ 83 Per share data: Basic earnings per share -
common shareholders $ 0.09 $ 0.30 $ — Diluted
earnings per share - common shareholders $ 0.09 $ 0.30
$ — Cash dividend declared per common share $ 0.10
$ 0.10 $ 0.10
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended June
30,
2015 2014 (in thousands) Cash
flows from operating activities: Net income $ 1,440 $ 7,845
Adjustments to reconcile net income to net cash provided by
operating activities: Bad debt expense 400 — Depreciation 13,140
12,958 (Gain) loss on sale of asset (10 ) 85 Deferred income taxes
(715 ) 4,046 Compensation expense - restricted stock 1,153 652
Changes in operating assets and liabilities: Contracts receivable
and retainage 41,446 34,097 Costs and estimated earnings in excess
of billings on uncompleted contracts 1,631 7,163 Prepaid expenses
and other assets 946 746 Inventory 245 542 Accounts payable (24,493
) (33,431 ) Billings in excess of costs and estimated earnings on
uncompleted contracts (9,538 ) (15,445 ) Accrued employee costs
(516 ) (334 ) Accrued expenses (2,803 ) (592 ) Accrued contract
losses (604 ) — Current income taxes 1,450 (194 ) Net cash
provided by operating activities 23,172 18,138 Cash flows from
investing activities: Capital expenditures (2,953 ) (21,334 )
Proceeds on the sale of equipment 10 925 Net cash
used in investing activities (2,943 ) (20,409 ) Cash flows from
financing activities: Borrowings against line of credit — 22,000
Payments on line of credit — (22,000 ) Payments of dividends on
common stock (2,930 ) (2,931 ) Net cash used in financing
activities (2,930 ) (2,931 ) Net change in cash and cash
equivalents 17,299 (5,202 ) Cash and cash equivalents at beginning
of period 36,085 36,569 Cash and cash equivalents at
end of period $ 53,384 $ 31,367
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version on businesswire.com: http://www.businesswire.com/news/home/20150730006817/en/
Gulf Island Fabrication, Inc.Kirk J. Meche, 713.714.6100Chief
Executive OfficerorJeffrey M. Favret, 713.714.6100Chief Financial
Officer
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