Gulf Island Fabrication, Inc. Reports Second Quarter Earnings
Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported net income
of $5.5 million ($0.37 diluted earnings per share) on revenue of $81.5
million for its second quarter ended June 30, 2016, compared to net
income of $1.4 million ($0.09 diluted earnings per share) on revenue of
$84.3 million for the second quarter ended June 30, 2015. For the six
months ended June 30, 2016 and 2015, the Company reported net income of
$6.5 million ($0.44 diluted earnings per share) on revenue of $165.5
million compared to net income of $1.4 million ($0.10 diluted earnings
per share) on revenue of $183.6 million, respectively.
The company had revenue backlog of $157.5 million and labor backlog of
approximately 1.3 million hours at June 30, 2016, including commitments
received through July 28, 2016, compared to revenue backlog of $197.1
million and labor backlog of 1.7 million hours reported as of March 31,
2016. We expect to recognize revenue from our backlog of approximately
$134.4 million and $23.1 million during the remainder of 2016 and during
2017, respectively.
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June 30, 2016 (1)
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December 31, 2015
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(in thousands)
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|
|
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Cash and cash equivalents
|
|
|
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$
|
50,065
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|
|
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$
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34,828
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Total current assets
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|
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125,584
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|
|
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115,869
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Property, plant and equipment, net
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|
|
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213,689
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|
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200,384
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Total assets
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|
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342,031
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316,923
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Total current liabilities
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49,995
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37,901
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Total shareholders’ equity
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|
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264,904
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|
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257,197
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________________
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(1) Amounts include assets and liabilities acquired in connection
with the LEEVAC transaction.
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Our balance sheet position remains stable with $50.1 million in cash, no
debt, and working capital of $75.6 million. In addition, we have $75.5
million available under our credit facility for letters of credit and
$20.0 million available for general corporate uses. We will continue to
monitor and maintain a conservative capital structure as we navigate
through the current oil and gas downturn.
The management of Gulf Island Fabrication, Inc. will hold a conference
call on Friday, July 29, 2016, 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, 2016. The call is accessible by webcast (www.gulfisland.com)
through CCBN and by dialing 1.888.600.4863. A digital rebroadcast of the
call is available two hours after the call and ending August 5, 2016 by
dialing 1.888.203.1112, replay passcode: 647355.
Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication
facilities located in Houma, Jennings and Lake Charles, 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.
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GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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March 31,
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June 30,
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June 30,
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2016 (1)
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2015
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2016
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2016 (1)
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2015
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Revenue (2)
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$
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81,502
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$
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84,338
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$
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83,979
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$
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165,481
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$
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183,571
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Cost of revenue
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67,436
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78,533
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78,278
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145,714
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173,318
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Gross profit
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14,066
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5,805
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5,701
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19,767
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10,253
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General and administrative expenses
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5,062
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3,726
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|
4,485
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|
|
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9,547
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8,019
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Operating income
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9,004
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2,079
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1,216
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10,220
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2,234
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Other income (expense):
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Interest expense
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(88
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)
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(50
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)
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(50
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)
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(138
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)
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(87
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)
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Interest income
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2
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|
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7
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6
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8
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13
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Other income, net
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42
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17
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398
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440
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20
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(44
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)
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(26
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)
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354
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|
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310
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|
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(54
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)
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Income before income taxes
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8,960
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2,053
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1,570
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10,530
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|
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2,180
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Income taxes
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3,420
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|
|
696
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|
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581
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|
|
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4,001
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|
|
740
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Net income
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$
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5,540
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|
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$
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1,357
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$
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989
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$
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6,529
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$
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1,440
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Per share data:
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Basic and diluted earnings per share - common shareholders
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$
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0.37
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$
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0.09
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$
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0.07
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$
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0.44
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$
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0.10
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Cash dividend declared per common share
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$
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0.01
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$
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0.10
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$
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0.01
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$
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0.02
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$
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0.20
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________________
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(1)
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Results of operations for the three and six months ended June 30,
2016, include the operations acquired in the LEEVAC transaction
effective January 1, 2016. Revenues and net income for the three
months ended June 30, 2016, attributable to LEEVAC were $17.3
million and $1.5 million, respectively. Revenue and net income for
the six months ended June 30, 2016, attributable to LEEVAC were
$39.1 million and $751,000, respectively.
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(2)
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Revenue for the three and six months ended June 30, 2016, includes
the recognition of $1.5 million and $2.7 million of deferred revenue
related to the values assigned to contracts acquired in the LEEVAC
transaction, respectively.
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Operating Segments
Backlog (in thousands)
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June 30, 2016
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March 31, 2016
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December 31, 2015
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Segment
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$'s
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Labor hours
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$'s
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Labor hours
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$'s
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Labor hours
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Fabrication
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$
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41,126
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431
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$
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48,828
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|
524
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$
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62,006
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|
724
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Shipyards
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93,912
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629
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119,984
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843
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131,660
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|
886
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Services
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22,540
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|
209
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28,316
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|
308
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38,761
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|
304
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Intersegment Eliminations
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(41
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)
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-
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(60
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)
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-
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(16
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)
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-
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Total Backlog
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$
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157,537
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1,269
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$
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197,068
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1,675
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$
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232,411
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1,914
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Results of Operations (in thousands, except
percentages)
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Fabrication
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Three Months Ended June 30,
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2016
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2015
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Revenue
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$24,296
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$
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48,365
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Gross profit
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3,844
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|
|
210
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Gross profit percentage
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15.8
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%
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0.4
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%
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General and administrative expenses
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1,666
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|
|
2,194
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Operating income (loss)
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2,178
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(1,984
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)
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Shipyards (1)
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Three Months Ended June 30,
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2016
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2015
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Revenue (2)
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$
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29,373
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$
|
14,760
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Gross profit (2)
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5,390
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|
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1,644
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Gross profit percentage
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18.4
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%
|
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11.1
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%
|
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General and administrative expenses
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1,996
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|
420
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Operating income (2)
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3,394
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|
|
|
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1,224
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|
|
|
|
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Services
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Three Months Ended June 30,
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2016
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|
2015
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Revenue
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$
|
28,692
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|
|
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$
|
22,712
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|
Gross profit
|
|
|
4,832
|
|
|
|
|
3,951
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|
Gross profit percentage
|
|
|
16.8
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%
|
|
|
|
17.4
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%
|
|
|
|
|
|
|
General and administrative expenses
|
|
|
1,336
|
|
|
|
|
1,029
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|
Operating income
|
|
|
3,496
|
|
|
|
|
2,922
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________________
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(1)
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Included in our results of operations for our Shipyards segment were
revenue and net income of $17.3 million and $1.5 million
attributable to the operations acquired in the LEEVAC transaction
for the three months ended June 30, 2016. No amounts were included
in the comparable 2015 period as the LEEVAC transaction was
effective January 1, 2016.
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(2)
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Revenue for the three months ended June 30, 2016 includes the
recognition of $1.5 million of deferred revenue related to the
values assigned to contracts acquired in the LEEVAC transaction.
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GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
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|
|
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|
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Six Months Ended June 30,
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2016
|
|
|
2015
|
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(in thousands)
|
Cash flows from operating activities:
|
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|
|
Net income
|
|
$
|
6,529
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|
|
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$
|
1,440
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
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|
|
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Bad debt expense
|
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|
320
|
|
|
|
|
400
|
|
Depreciation
|
|
|
12,878
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|
|
|
|
13,140
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|
Amortization of deferred revenue
|
|
|
(2,654
|
)
|
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|
-
|
|
Gain on sale of assets
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|
|
(369
|
)
|
|
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|
(10
|
)
|
Deferred income taxes
|
|
|
3,899
|
|
|
|
|
(715
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)
|
Compensation expense - restricted stock
|
|
|
1,619
|
|
|
|
|
1,153
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Contracts receivable and retainage
|
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|
9,783
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|
|
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|
41,446
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|
Costs and estimated earnings in excess of billings on uncompleted
contracts
|
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|
1,550
|
|
|
|
|
1,631
|
|
Prepaid expenses and other assets
|
|
|
(1,396
|
)
|
|
|
|
946
|
|
Inventory
|
|
|
(1,234
|
)
|
|
|
|
245
|
|
Accounts payable
|
|
|
(7,522
|
)
|
|
|
|
(24,493
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)
|
Billings in excess of costs and estimated earnings on uncompleted
contracts
|
|
|
247
|
|
|
|
|
(9,538
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)
|
Deferred revenue
|
|
|
(8,718
|
)
|
|
|
|
-
|
|
Accrued employee costs
|
|
|
1,144
|
|
|
|
|
(516
|
)
|
Accrued expenses
|
|
|
1,479
|
|
|
|
|
(2,803
|
)
|
Accrued contract losses
|
|
|
(5,974
|
)
|
|
|
|
(604
|
)
|
Current income taxes
|
|
|
105
|
|
|
|
|
1,450
|
|
Net cash provided by operating activities
|
|
|
11,686
|
|
|
|
|
23,172
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(3,290
|
)
|
|
|
|
(2,953
|
)
|
Net cash received in acquisition
|
|
|
1,588
|
|
|
|
|
-
|
|
Proceeds on the sale of equipment
|
|
|
5,548
|
|
|
|
|
10
|
|
Net cash provided by (used in) investing activities
|
|
|
3,846
|
|
|
|
|
(2,943
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
Payments of dividends on common stock
|
|
|
(295
|
)
|
|
|
|
(2,930
|
)
|
Net cash used in financing activities
|
|
|
(295
|
)
|
|
|
|
(2,930
|
)
|
Net change in cash and cash equivalents
|
|
|
15,237
|
|
|
|
|
17,299
|
|
Cash and cash equivalents at beginning of period
|
|
|
34,828
|
|
|
|
|
36,085
|
|
Cash and cash equivalents at end of period
|
|
$
|
50,065
|
|
|
|
$
|
53,384
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728006689/en/ Copyright Business Wire 2016
Source: Business Wire
(July 28, 2016 - 5:21 PM EDT)
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