Core Viewpoint - Gulf Island Fabrication, Inc. reported significant year-over-year growth in revenue and net income for the third quarter of 2024, demonstrating resilience despite challenges in the Services division and external factors like hurricane activity [2][3][7]. Financial Performance - Consolidated revenue for Q3 2024 was $37.6 million, a substantial increase from $5.0 million in the same period last year [2][3]. - Adjusted consolidated revenue for Q3 2024 was $37.2 million, slightly down from $37.7 million in Q3 2023 [2]. - Consolidated net income for Q3 2024 was $2.3 million, compared to a net loss of $33.2 million in Q3 2023 [3]. - Adjusted EBITDA for Q3 2024 was $2.9 million, up from $2.6 million in the prior year [3]. Division Results Services Division - Revenue for Q3 2024 was $20.2 million, down 11.9% from the previous year, primarily due to project delays and hurricane impacts [9]. - New project awards decreased by 11.3% year-over-year to $20.2 million [10]. - Operating income was $1.4 million, down from $2.6 million in Q3 2023, with EBITDA at $1.9 million [11]. Fabrication Division - Revenue for Q3 2024 was $17.1 million, an increase of 14.2% compared to Q3 2023, driven by higher small-scale fabrication activity [12]. - New project awards increased by 1.9% year-over-year to $16.9 million, with a backlog of $11.5 million [13]. - Operating income was $2.0 million, up from $0.9 million in the prior year, with adjusted EBITDA rising to $2.7 million [14]. Shipyard Division - Revenue for Q3 2024 was $0.5 million, a recovery from negative revenue of $32.7 million in Q3 2023 due to litigation-related revenue reversals [15]. - Operating income was break-even, compared to an operating loss of $35.1 million in the prior year [15]. Corporate Division - The Corporate division reported an operating loss of $1.8 million for Q3 2024, slightly improved from a loss of $2.0 million in Q3 2023 [16]. Balance Sheet and Liquidity - Cash and short-term investments totaled $66.8 million as of September 30, 2024, including $1.5 million in restricted cash [17]. - Total debt was $20.0 million, with a fixed interest rate of 3.0% per annum [17]. - The company repurchased 110,908 shares for $0.6 million during Q3 2024, with an extension of the share repurchase program approved [18]. Management Commentary - Management expressed confidence in the company's strategic positioning and growth initiatives, despite facing project delays and hurricane impacts [7][8]. - The company anticipates full-year 2024 adjusted consolidated EBITDA to be at the lower end of the previously indicated range of $11 million to $13 million [19].

Core Points - Gulf Island Fabrication, Inc. will report its financial results for the third quarter of 2024 on November 5, 2024, after market close [1] - A conference call to discuss the financial results will be held on the same day at 4:00 p.m. Central Time, accessible via webcast and phone [2] - Gulf Island specializes in fabricating complex steel structures and providing various services to the industrial and energy sectors, with a customer base that includes U.S. and international energy producers [3] Company Information - Richard W. Heo serves as the Chief Executive Officer, and Westley S. Stockton is the Chief Financial Officer [4]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2024 was $41.3 million, a 5% increase from $39.3 million in the prior year period, driven by strong growth in the small-scale fabrication business [16] - Consolidated EBITDA for Q2 2024 was $2.5 million, down from $4.1 million in the prior year period [16] - Services division revenue decreased by $1.7 million or 7% to $22.8 million compared to Q2 2023 [17] - Fabrication division revenue increased by $4 million or 27% to $18.7 million compared to Q2 2023 [17] Segment Performance Changes - Services division faced project delays and investment spending, leading to a decrease in revenue and EBITDA [5][17] - Fabrication division saw a 27% increase in revenue, attributed to strong small-scale fabrication activity [10][17] - Corporate division reported an EBITDA loss of $2 million for Q2 2024, compared to a loss of $1.9 million in the prior year [18] Market Data and Key Metrics Changes - The offshore services market remains strong, with customers experiencing healthy operations and increased capital spending expected to continue into 2025 [6] - The decommissioning market in the Gulf of Mexico presents significant opportunities, with 2,700 wells and 500 platforms overdue for dismantling [8] - The small-scale fabrication market is active, with opportunities in subsea markets and pull-through fabrication from services customers [10] Company Strategy and Industry Competition - The company is focusing on launching its Cleaning and Environmental Services (CES) business line to enhance its service offerings in decommissioning [9] - The company is optimistic about the long-term potential of its Services division despite short-term project delays [5] - The company is pursuing growth in small-scale fabrication while waiting for large project opportunities, indicating a strategic shift to reduce dependency on large awards [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that project delays and incremental investments negatively impacted Q2 results but expressed optimism about the overall outlook for the Services business [5][10] - The company is lowering its full-year Services division EBITDA guidance to a range of $11 million to $13 million due to project delays [19] - Management remains confident in the long-term opportunities for Gulf Island, despite short-term challenges [14] Other Important Information - The company ended Q2 2024 with a cash and investments balance of over $63 million, highlighting strong free cash flow conversion [18] - Capital expenditures for 2024 are anticipated to be approximately $5 million to $5.5 million [20] Q&A Session Summary Question: Addressable market for plug and abandonment opportunities - Management discussed the connectivity and value added by the CES business in decommissioning activities and mentioned partnerships with other companies for comprehensive solutions [22] Question: Timing of ramp-up of P&A activity - Management noted an uptick in decommissioning activities and expects a material increase in 2025 [23] Question: Deepwater fabrication market opportunities - Management highlighted ongoing fabrication work for maintenance and construction activities, with expectations for strong offshore fabrication activity in 2025 [24] Question: M&A opportunities and trends - Management indicated a pipeline of M&A opportunities but noted challenges in bridging valuation gaps between buyers and sellers [25] - The company is also focusing on organic growth through initiatives like CES and Spark Safety [26]

THE WOODLANDS, Texas, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) ("Gulf Island" or the "Company"), a leading steel fabricator and service provider to the industrial and energy sectors, today announced results for the second quarter 2024. SECOND QUARTER 2024 SUMMARY Consolidated revenue of $41.3 million Consolidated net income of $1.9 million; EBITDA of $2.5 million Services division operating income of $2.2 million; EBITDA of $2.7 million Fabrication division operating in ...

THE WOODLANDS, Texas, July 30, 2024 (GLOBE NEWSWIRE) -- Gulf Island Fabrication, Inc. ("Gulf Island" or the "Company") (NASDAQ:GIFI), a leading steel fabricator and service provider to the industrial and energy sectors, today announced that it will report financial results for the second quarter 2024 after the market close on Tuesday, August 6, 2024. Richard W. Heo Westley S. Stockton Chief Executive Officer Chief Financial Officer 713.714.6100 713.714.6100 Gulf Island management will hold a conference call ...

THE WOODLANDS, Texas, June 18, 2024 (GLOBE NEWSWIRE) -- Gulf Island Fabrication, Inc. (NASDAQ: GIFI) ("Gulf Island" or the "Company"), a leading steel fabricator and service provider to the industrial and energy sectors, today announced that members of its executive management team will participate in the Northland Growth Conference, taking place virtually on Tuesday, June 25, 2024. ABOUT GULF ISLAND COMPANY INFORMATION In conjunction with the event, Gulf Island's Chief Executive Officer, Richard Heo, and C ...

In conjunction with the event, Gulf Island's Chief Executive Officer, Richard Heo, and Chief Financial Officer, Westley Stockton, will be available to participate in one-on-one meetings with investors registered to attend the conference. For more information, please contact your Northland salesperson. Gulf Island is a leading fabricator of complex steel structures and modules and provider of specialty services, including project management, hookup, commissioning, repair, maintenance, scaffolding, coatings, ...

Company Updates - Gulf Island Fabrication (GIFI) has completed the divestment of its shipyard division, marking the first quarter without losses from this division in a long time, resulting in a net income of $6 million for Q1, supported by a $3 million gain on asset sales [2][3] - The company generated $4.5 million in free cash flow and approximately $3.5 million in EBITDA during the same quarter [2] - Management expressed caution regarding the timeline for large fabrication project bids due to regulatory uncertainties and interest rate fluctuations, indicating that no large contracts are expected this year unless interest rates decline [2][3] Financial Performance and Valuation - GIFI's Services division revenue increased nearly 20% year-over-year, contributing to improved profitability [4] - Extrapolating Q1 performance for the full year suggests a net income of $15 million, free cash flow of $18 million, and EBITDA of $14 million [5] - Applying a conservative 10x multiple to free cash flow or net income results in a market cap estimate between $150 million and $180 million, translating to a share price of $9 to $11 [5] - Industry averages for profitable companies in the "Metal Fabrication" sector suggest a P/E multiple above 20 and an EV/EBITDA ratio over 12, which could imply a share price of $14.75 and $12.75 respectively [5] Growth Opportunities - GIFI is actively seeking strategic partnerships and acquisition opportunities to enhance its capabilities and market presence, with over $60 million in cash available for potential M&A [2][3] - A successful acquisition or signing a large fabrication contract could significantly boost the company's revenue and market perception [6] - The company is currently perceived as undervalued and overlooked, which may hinder its ability to attract investor attention despite positive operational metrics [6] Market Outlook - GIFI's share price has increased over 50% year-to-date, with potential for further growth of 60% or more, even if current performance levels are maintained [8] - The management's efforts have restored the company to a position of profitability and free cash flow generation, suggesting a positive outlook for future performance [8]

PART I FINANCIAL INFORMATION [Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2024, highlighting increased net income from asset sale and stable liquidity Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $99,731 | $101,627 | | **Total Assets** | $127,758 | $128,428 | | **Total Current Liabilities** | $22,830 | $29,847 | | **Total Liabilities** | $42,314 | $49,457 | | **Total Shareholders' Equity** | $85,444 | $78,971 | Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $42,881 | $62,168 | | Gross Profit | $6,124 | $5,034 | | Operating Income | $5,708 | $328 | | Net Income | $6,240 | $641 | | Diluted Income per Share | $0.37 | $0.04 | Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,019 | $1,296 | | Net cash used in investing activities | ($12,453) | ($5,219) | | Net cash used in financing activities | ($273) | ($1,184) | | Net decrease in cash | ($5,707) | ($5,107) | - In February 2024, the company sold excess real property from its Fabrication Division (Houma AHFS) for net cash proceeds of **$8.5 million**, resulting in a net gain of **$2.9 million**[44](index=44&type=chunk)[57](index=57&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reviews Q1 2024 performance, highlighting revenue decline, net income growth from asset sale, and strategic diversification [Overview and Strategic Initiatives](index=31&type=section&id=Overview%20and%20Strategic%20Initiatives) Winding down its Shipyard Division, the company focuses on workforce expansion, project execution, and diversifying into onshore and green energy - The wind-down of the Shipyard Division is substantially complete, with final completion expected in **Q1 2025** after the warranty periods for the Ferry Projects expire[110](index=110&type=chunk)[122](index=122&type=chunk) - Strategic initiatives are focused on generating **stable, profitable growth** by expanding the skilled workforce, improving project execution, diversifying the services business, and pursuing new end markets[119](index=119&type=chunk)[120](index=120&type=chunk) - The company is actively pursuing **new growth end markets** to reduce reliance on offshore oil and gas, including fabricating structures for onshore industrial facilities, green energy transitions (biofuels, hydrogen), and offshore wind developments[126](index=126&type=chunk)[127](index=127&type=chunk) [New Project Awards and Backlog](index=36&type=section&id=New%20Project%20Awards%20and%20Backlog) New project awards increased to **$43.8 million** in Q1 2024, with backlog rising to **$13.9 million**, primarily in Fabrication New Project Awards by Division (in thousands) | Division | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Services | $25,468 | $21,472 | | Fabrication | $18,272 | $16,706 | | Shipyard | $278 | ($122) | | **Total** | **$43,818** | **$37,628** | Backlog by Division (in thousands) | Division | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Services | $437 | $502 | | Fabrication | $12,873 | $11,739 | | Shipyard | $577 | $709 | | **Total** | **$13,887** | **$12,950** | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Consolidated revenue decreased **31.0%** to **$42.9 million** due to a canceled project, but net income significantly rose to **$6.2 million** from an asset sale and reduced G&A Consolidated Results Summary (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $42,881 | $62,168 | $(19,287) | | Gross Profit | $6,124 | $5,034 | $1,090 | | Gross Profit % | 14.3% | 8.1% | +6.2 p.p. | | Net Income | $6,240 | $641 | $5,599 | - The revenue decrease was primarily driven by the Fabrication Division, which saw revenue fall by **$22.5 million** due to the absence of the offshore jackets project that was canceled in July 2023[135](index=135&type=chunk)[150](index=150&type=chunk) - Net income was significantly boosted by a **$2.9 million** gain on the sale of the Houma AHFS and a **$1.7 million** decrease in G&A expense due to the elimination of legal fees from the resolved MPSV Litigation[136](index=136&type=chunk)[139](index=139&type=chunk)[142](index=142&type=chunk) - The Services Division revenue grew **18.3%** YoY to **$25.5 million**, driven by higher offshore services work and its welding enclosures business line[143](index=143&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$61.3 million** in total cash and investments, generating **$7.0 million** in operating cash flow, and anticipates further capital expenditures Available Liquidity (in thousands) | Component | March 31, 2024 | | :--- | :--- | | Cash and cash equivalents | $32,469 | | Short-term investments | $27,352 | | Restricted cash | $1,475 | | **Total** | **$61,296** | - Net cash provided by operating activities was **$7.0 million** in Q1 2024, a significant improvement from **$1.3 million** in Q1 2023[163](index=163&type=chunk) - The company anticipates capital expenditures of approximately **$2.5 million to $3.0 million** for the remainder of 2024, primarily for upgrades to its Houma Facilities[170](index=170&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2024, with no material changes to internal control over financial reporting in Q1 2024 - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were **effective**[173](index=173&type=chunk) - There were **no changes** in internal control over financial reporting during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[174](index=174&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) This section details legal matters, primarily the resolution of the MPSV Litigation in October 2023, dismissed with prejudice, leading to a **$20.0 million** Note Agreement - The MPSV Litigation against Hornbeck Offshore Services, LLC was **dismissed in full with prejudice** on October 4, 2023, after the parties reached an agreement[86](index=86&type=chunk)[177](index=177&type=chunk) - In connection with the litigation resolution, the company entered into a Settlement Agreement and a **$20.0 million** promissory note with Zurich, payable in **15 annual installments** starting December 31, 2024[79](index=79&type=chunk)[86](index=86&type=chunk) [Risk Factors](index=49&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors from those disclosed in its 2023 Annual Report on Form 10-K - There have been **no material changes** to the company's risk factors from those disclosed in the 2023 Annual Report[178](index=178&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **60,860 shares** for approximately **$0.3 million** in Q1 2024, with **$4.6 million** remaining under the Share Repurchase Program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program (in thousands) | | :--- | :--- | :--- | :--- | | Jan 2024 | 40,360 | $4.47 | $4,691 | | Feb 2024 | 20,500 | $4.50 | $4,599 | | Mar 2024 | 0 | $— | $4,599 | | **Total** | **60,860** | **$4.48** | | - The Share Repurchase Program, approved in December 2023, authorizes up to **$5.0 million** in stock repurchases through December 15, 2024[95](index=95&type=chunk)[180](index=180&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate governance documents, CEO and CFO certifications, and Inline XBRL financial data - The filing includes required **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32) and financial data in **Inline XBRL format** (Exhibits 101, 104)[183](index=183&type=chunk)

Revenue Performance - Consolidated revenue for Q1 2024 was $42.9 million, down from $62.2 million in Q1 2023, representing a decrease of 30.5%[4] - Revenue for Q1 2024 was $42.9 million, down from $44.6 million in Q4 2023 and significantly lower than $62.2 million in Q1 2023, indicating a year-over-year decline of approximately 30.9%[29] - Adjusted revenue for Q1 2024 was $42.5 million, down from $44.0 million in Q4 2023 and $60.8 million in Q1 2023[30] - The Fabrication Division's revenue for Q1 2024 was $17.1 million, down from $19.7 million in Q4 2023 and significantly lower than $39.7 million in Q1 2023[34] - Revenue for the Shipyard Division was $409 million in Q1 2024, down from $556 million in Q4 2023, a decrease of 26.5%[35] Net Income and Earnings - Consolidated net income for Q1 2024 was $6.2 million, compared to $0.6 million in Q1 2023, indicating a significant increase[4] - Net income for Q1 2024 was $6.2 million, a decrease from $7.1 million in Q4 2023 and an increase from $0.6 million in Q1 2023[29] - Basic income per share for Q1 2024 was $0.38, down from $0.44 in Q4 2023 but up from $0.04 in Q1 2023[29] - The company reported a net income of $6,240 thousand for Q1 2024, compared to $7,090 thousand in Q4 2023, a decrease of 12.0%[41] Segment Performance - Services Segment revenue increased by $3.9 million, or 18.3%, to $25.5 million in Q1 2024, driven by higher offshore services activity[8] - Fabrication Segment revenue decreased by $22.5 million, or 56.8%, to $17.1 million in Q1 2024, primarily due to the cancellation of a large project[11] - Services operating margins expanded by 40 basis points to 11.2% in Q1 2024[6] - Corporate Segment EBITDA is expected to be a loss of approximately $8.0 million for 2024, consistent with historical performance[18] Project Awards and Backlog - New project awards for Q1 2024 totaled $25.5 million, an 18.6% year-over-year increase, with backlog at $0.4 million[9] - New project awards for Q1 2024 totaled $43.8 million, a slight decrease from $44.4 million in Q4 2023 but an increase from $37.6 million in Q1 2023[29] - The Services Division reported new project awards of $25.5 million in Q1 2024, up from $24.5 million in Q4 2023 and $21.6 million in Q1 2023[34] - New project awards for the Shipyard Division decreased to $278 million in Q1 2024 from $539 million in Q4 2023, representing a decline of 48.7%[35] Cash and Investments - Cash and short-term investments balance was $61.3 million at March 31, 2024, including $1.5 million of restricted cash[17] - Cash and cash equivalents decreased to $32,469 thousand in Q1 2024 from $38,176 thousand in Q4 2023, a decrease of 15.5%[40] - Net cash provided by operating activities was $7,019 thousand in Q1 2024, compared to $7,369 thousand in Q4 2023, a decrease of 4.8%[41] Other Financial Metrics - Gross profit for Q1 2024 was $6.1 million, compared to $8.5 million in Q4 2023 and $5.0 million in Q1 2023, reflecting a decrease of 27.7% from the previous quarter[29] - Adjusted EBITDA for Q1 2024 was $3.7 million, a decrease from $6.6 million in Q4 2023 and comparable to $3.7 million in Q1 2023[32] - Operating income for Q1 2024 was $5.7 million, compared to $6.7 million in Q4 2023 and $0.3 million in Q1 2023[29] - Total current assets decreased to $99,731 thousand as of March 31, 2024, from $101,627 thousand at December 31, 2023, a decline of 1.8%[40] - Total liabilities decreased to $42,314 thousand as of March 31, 2024, from $49,457 thousand at December 31, 2023, a decline of 14.5%[40]