HOUSTON--(BUSINESS WIRE)--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 | |||||||
