HOUSTON–(BUSINESS WIRE)–Gulf Island Fabrication, Inc. (NASDAQ:GIFI) today reported a net income of $1.0 million ($0.07 diluted earnings per share) on revenue of $84.0 million for its first quarter ended March 31, 2016, compared to net income of $83,000 ($0.00 diluted earnings per share) on revenue of $99.2 million for the first quarter ended March 31, 2015.
The company had a revenue backlog of $197.1 million and a labor backlog of approximately 1.7 million hours at March 31, 2016, including commitments received through April 22, 2016, compared to a revenue backlog of $232.4 million and a labor backlog of 1.9 million hours reported as of December 31, 2015. We expect to recognize revenue from our backlog of approximately $170.1 million and $26.9 million during the remainder of 2016 and during 2017, respectively.
|March 31, 2016||December 31, 2015|
|Cash and cash equivalents||$||39,202||$||34,828|
|Total current assets||118,990||115,869|
|Property, plant and equipment, net||217,403||200,384|
|Total current liabilities||51,892||37,901|
|Total shareholders’ equity||258,623||257,197|
Our balance sheet position remains stable with $39.2 million in cash, no debt, and working capital of $67.1 million. In addition, we have $59.5 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, April 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 March 31, 2016. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.337.8202. A digital rebroadcast of the call is available two hours after the call and ending May 6, 2016 by dialing 1.888.203.1112, replay passcode: 4135780.
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.
GULF ISLAND FABRICATION, INC.
|Three Months Ended|
|Cost of revenue||78,278||94,785||72,590|
|General and administrative expenses||4,485||4,293||4,439|
|Operating income (loss)||1,216||155||(22,613||)|
|Other income (expense):|
|Other income (expense)||398||3||—|
|Income (loss) before income taxes||1,570||127||(22,647||)|
|Income taxes (benefit)||581||44||(7,980||)|
|Net income (loss)||$||989||$||83||$||(14,667||)|
|Per share data:|
|Basic and diluted earnings (loss) per share – common shareholders||$||0.07||$||—||$||(1.01||)|
|Cash dividend declared per common share||$||0.01||$||0.10||0.10|
(1) Results of operations for the three months ended March 31, 2016, include the operations of LEEVAC since the date of its acquisition effective January 1, 2016. Revenues and net loss for the three months ended March 31, 2016 and attributable to LEEVAC were $21.8 million and $(706,000), respectively.
(2) Revenue for the three months ended March 31, 2016, includes the amortization of $1.2 million of deferred revenue related to the values assigned to contracts acquired in the LEEVAC acquisition.
Backlog (in thousands)
March 31, 2016
|December 31, 2015|
|$’s||Labor hours||$’s||Labor hours|
Results of Operations (in thousands, except percentages)
|Gross profit (loss)||41||(256||)||297||116.0||%|
|Gross profit (loss) percentage||0.2||%||(0.4||)%||0.6||%|
|General and administrative expenses||1,323||2,694||(1,371||)||(50.9||)%|
|Gross profit percentage||6.8||%||12.5||%||(5.7||)%|
|General and administrative expenses||1,806||431||1,375||319.0||%|
|Gross profit percentage||12.5||%||9.1||%||3.4||%|
|General and administrative expenses||1,236||985||251||25.5||%|
GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|Three Months Ended March 31,|
|Cash flows from operating activities:|
|Adjustments to reconcile net income to net cash (used in) provided by operating activities:|
|Bad debt expense||30||400|
|Amortization of deferred revenue||(1,160||)||—|
|Gain on sale of assets||(360||)||—|
|Deferred income taxes||544||(149||)|
|Compensation expense – restricted stock||728||435|
|Changes in operating assets and liabilities:|
|Contracts receivable and retainage||5,268||28,536|
|Costs and estimated earnings in excess of billings on uncompleted contracts||(1,069||)||795|
|Prepaid expenses and other assets||650||897|
|Billings in excess of costs and estimated earnings on uncompleted contracts||604||(5,558||)|
|Accrued employee costs||636||(932||)|
|Accrued contract losses||(3,636||)||(650||)|
|Current income taxes||49||189|
|Net cash (used in) provided by operating activities||(1,721||)||16,496|
|Cash flows from investing activities:|
|Net cash received in acquisition||1,588||
|Proceeds on the sale of equipment||5,377||—|
|Net cash provided by (used in) investing activities||6,241||(1,001||)|
|Cash flows from financing activities:|
|Payments of dividends on common stock||(146||)||(1,465||)|
|Net cash used in financing activities||(146||)||(1,465||)|
|Net change in cash and cash equivalents||4,374||14,030|
|Cash and cash equivalents at beginning of period||34,828||36,085|
|Cash and cash equivalents at end of period||$||39,202||$||50,115|