Financial Performance - Revenue for Q3 2024 was $37.6 million, significantly up from $5.0 million in Q3 2023, primarily due to a $33.2 million increase in the Shipyard Division[140]. - Revenue for 2024 was $20.2 million, a decrease of 11.9% from $23.0 million in 2023, attributed to lower offshore services work and delays caused by hurricanes[148]. - Consolidated revenue for the nine months ended September 30, 2024, was $121.8 million, up from $106.5 million in 2023, reflecting a growth of $15.3 million[162]. - Revenue for 2024 was $121.8 million, an increase of 14.3% compared to $106.5 million in 2023[164]. - Revenue for the Fabrication Division decreased by 23.6% to $53.0 million in 2024 from $69.4 million in 2023, primarily due to the cancellation of the offshore jackets project[174]. - Revenue for the Shipyard Division was $0.9 million in 2024, a significant recovery from negative $31.0 million in 2023 due to the resolution of MPSV Litigation[180]. Profitability - Gross profit for Q3 2024 was $4.7 million, representing a gross profit margin of 12.4%, compared to a gross loss of $29.9 million in Q3 2023[141]. - Gross profit for 2024 was $14.9 million, representing 12.3% of revenue, compared to a gross loss of $20.4 million in 2023[165]. - Gross profit for the Fabrication Division rose to $2.5 million (14.9% of revenue) in 2024, compared to $1.2 million (8.1% of revenue) in 2023, due to improved utilization of facilities[152]. - Gross profit for the Fabrication Division increased to $6.0 million (11.3% of revenue) in 2024 from $5.2 million (7.6% of revenue) in 2023[175]. Operational Challenges - The company experienced construction challenges and cost increases on Ferry Projects during 2023 and 2022, affecting overall project timelines[120]. - The company anticipates that ongoing economic factors, including inflation and supply chain disruptions, may continue to impact operations and project costs[114]. - The company is enhancing project execution through improved bidding discipline and management training to mitigate risks associated with long-term fixed-price contracts[126]. - The company anticipates that ongoing oil and gas price volatility and macroeconomic conditions will impact future project opportunities and revenue recognition timing[131]. Strategic Initiatives - The company aims to reduce reliance on the offshore oil and gas construction sector and pursue new growth end markets, including green energy[123]. - The company is focusing on diversifying its offshore services customer base and expanding its service offerings, including new cleaning and environmental services introduced in Q2 2024[127]. - The company has outlined a strategy to mitigate COVID-19 impacts, improve liquidity, and enhance project execution[122]. - The company is exploring organic and inorganic growth opportunities, including potential mergers and acquisitions, to enhance its market position[131]. Asset Management - The company sold certain excess real property from its Houma Facilities, resulting in a gain for the Fabrication Division for the nine months ended September 30, 2024[118]. - The company has initiated efforts to improve resource utilization through the consolidation of fabrication activities and the sale of excess property[125]. - Available liquidity as of September 30, 2024, totaled $66.8 million, consisting of $21.3 million in cash and cash equivalents and $44.0 million in short-term investments[187]. - Working capital at September 30, 2024, was $80.2 million, including $66.8 million in cash and equivalents and $1.1 million in current debt[189]. New Projects and Awards - New project awards for Q3 2024 totaled $36.9 million, a decrease of 3.9% from $38.4 million in Q3 2023[139]. - New project awards for 2024 were $20.2 million, down from $22.8 million in 2023, primarily related to offshore services work[147]. - New project awards for the nine months ended September 30, 2024, totaled $120.5 million, an increase from $113.3 million in 2023[163]. - New project awards for the Services Division were $68.1 million in 2024, slightly down from $68.6 million in 2023[171]. Income and Expenses - Operating income for the nine months ended September 30, 2024, was $8.7 million, a significant improvement from an operating loss of $32.6 million in 2023[162]. - Net income for the nine months ended September 30, 2024, was $10.4 million, compared to a net loss of $31.5 million in 2023, marking a turnaround of $41.9 million[162]. - General and administrative expense decreased by 26.8% from $4.1 million in 2023 to $3.0 million in 2024, primarily due to the elimination of legal fees related to MPSV Litigation[142]. - General and administrative expenses decreased by 23.8% to $9.8 million in 2024 from $12.9 million in 2023[166]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2024, was $15.9 million, a significant increase from $(0.2) million in 2023[191]. - Cash used in investing activities for the nine months ended September 30, 2024, was $30.7 million, compared to $6.6 million in 2023, primarily due to net purchases of short-term investments[194]. - Cash used in financing activities for the nine months ended September 30, 2024, was $2.1 million, an increase from $1.7 million in 2023, mainly due to stock repurchases and tax payments[195]. - The company anticipates capital expenditures of approximately $0.5 to $1.0 million for the remainder of 2024, with $4.5 million allocated for upgrades to facilities and equipment[199]. - The company believes its cash, cash equivalents, and short-term investments will be sufficient to fund operating expenses and meet capital requirements for the remainder of 2024[200]. Market Conditions - The company reported significant volatility in oil and gas prices, with oil reaching an eight-year high and gas reaching a fourteen-year high in 2022, impacting end markets positively[113]. - The company has been awarded multiple contracts for subsea structures, with expectations for strong activity in subsea fabrication through 2025[128].

Revenue Performance - Consolidated revenue for Q3 2024 was $37.6 million, a significant increase from $5.0 million in Q3 2023[2] - Revenue for the three months ended September 30, 2024, was $37,640 thousand, a decrease of 9.9% from $41,262 thousand in the previous quarter and an increase from $5,023 thousand in the same period last year[26] - Services Division revenue for the three months ended September 30, 2024, was $20,245, a decrease of 11% from $22,976 in the same period last year[31] - Fabrication Division revenue for the three months ended September 30, 2024, was $17,110, down from $18,727 in the previous quarter, representing a decline of 8.6%[31] - The Shipyard division reported revenue of $0.5 million, recovering from a negative revenue of $32.7 million in Q3 2023[14] Profitability Metrics - Adjusted consolidated EBITDA for Q3 2024 was $2.9 million, compared to $2.6 million in the prior year period[3] - EBITDA for the three months ended September 30, 2024, was $2,880 thousand, an increase from $2,523 thousand in the previous quarter and a loss of $32,245 thousand in the same period last year[29] - Adjusted EBITDA for the three months ended September 30, 2024, was $2,858 thousand, compared to $2,514 thousand in the previous quarter and $2,581 thousand in the same period last year[29] - Net income for the three months ended September 30, 2024, was $2,317 thousand, compared to $1,889 thousand in the previous quarter and a loss of $33,235 thousand in the same period last year[26] - Basic income per share for the three months ended September 30, 2024, was $0.14, compared to $0.12 in the previous quarter and a loss of $2.04 in the same period last year[26] Cash and Investments - Cash and short-term investments balance was $66.8 million at September 30, 2024[16] - Cash and cash equivalents decreased to $21,328 as of September 30, 2024, from $38,176 at the end of 2023[33] - The company reported a net cash increase of $11,819 thousand for the period, contrasting with a decrease of $22,960 thousand in the previous quarter[36] - The company’s cash, cash equivalents, and restricted cash at the end of the period totaled $22,803 thousand, up from $10,984 thousand at the beginning of the period[36] Project Awards and Future Outlook - New project awards for the Services division were $20.2 million, an 11.3% year-over-year decrease[9] - New project awards for the three months ended September 30, 2024, were $36,902 thousand, compared to $39,810 thousand for the previous quarter and $38,417 thousand for the same period last year[26] - New project awards in the Fabrication Division for the nine months ended September 30, 2024, totaled $52,784, compared to $46,733 in the same period last year, reflecting a growth of 12.3%[31] - Full-year 2024 adjusted consolidated EBITDA is expected to be at the lower end of the guidance range of $11 million to $13 million[18] - Adjusted EBITDA for the twelve months ending December 31, 2024, is projected to be between $11,000 thousand and $13,000 thousand, reflecting a positive outlook for operational performance[37] Financial Position - Total current assets as of September 30, 2024, were $102,483, slightly up from $101,627 at the end of 2023[33] - Total liabilities decreased to $41,969 as of September 30, 2024, from $49,457 at the end of 2023[32] - Total shareholders' equity increased to $88,799 thousand as of September 30, 2024, up from $78,971 thousand at December 31, 2023, representing a growth of 12.3%[34] - Total liabilities and shareholders' equity amounted to $130,768 thousand as of September 30, 2024, compared to $128,428 thousand at December 31, 2023, indicating a slight increase of 1.8%[34] - The company’s accumulated deficit decreased to $(30,927) thousand as of September 30, 2024, down from $(41,373) thousand at December 31, 2023, indicating improved financial health[34] Operational Challenges - The company cautions that various factors, including supply chain disruptions and economic slowdowns, could materially affect future performance and results[25] - Capital expenditures for the three months ended September 30, 2024, were $1,314 thousand, up from $645 thousand in the same period last year, representing a 103% increase[36] - The Corporate Division reported an operating loss of $1,780 for the three months ended September 30, 2024, compared to a loss of $1,999 in the same period last year[32]

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]

Core Insights - Gulf Island Fabrication, Inc. reported a consolidated revenue of $41.3 million for Q2 2024, a 5% increase from $39.3 million in Q2 2023, with a net income of $1.9 million compared to $1.1 million in the prior year [2][3] - The company revised its full-year 2024 Services division EBITDA guidance down to a range of $11 million to $13 million, primarily due to project delays and increased investment spending [3][14] - The Fabrication division saw a significant revenue increase of 27% year-over-year, driven by small-scale fabrication activities, while the Services division experienced a revenue decline of 7% [5][8] Financial Performance - Consolidated revenue for Q2 2024 was $41.3 million, up from $39.3 million in Q2 2023 [2] - Consolidated net income for Q2 2024 was $1.9 million, compared to $1.1 million in the same period last year [2] - EBITDA for Q2 2024 was $2.5 million, an increase from $2.1 million in Q2 2023 [2] - Cash and short-term investments totaled $63.1 million as of June 30, 2024 [2][13] Division Results - **Services Division**: Revenue decreased to $22.8 million, down 7% year-over-year, with operating income of $2.2 million and EBITDA of $2.7 million [5][7] - **Fabrication Division**: Revenue increased to $18.7 million, a 27% increase year-over-year, with operating income of $1.1 million and EBITDA of $1.8 million [8][10] - **Shipyard Division**: Revenue was not significant, with a break-even operating income, as the wind down of operations was nearly complete [11] - **Corporate Division**: Operating loss was $2.0 million, slightly higher than the loss of $1.9 million in Q2 2023 [12] Guidance and Outlook - The company revised its full-year 2024 Services division EBITDA guidance to $11 million to $13 million, down from $14 million [14] - The Fabrication division's adjusted EBITDA guidance remains unchanged at approximately $8 million, with expectations of continued growth in small-scale fabrication [14] - The company remains optimistic about long-term growth opportunities, particularly in offshore services and new business lines like cleaning and environmental services [3][4]

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]