Gulf Island Fabrication, Inc. (NASDAQ:GIFI) Q4 2021 Earnings Conference Call March 22, 2022 5:00 PM ET Company Participants Cindi Cook - Executive Assistant to CEO Richard Heo - President and CEO Wes Stockton - EVP and CFO Conference Call Participants Martin Malloy - Johnson Rice & Company Operator Good afternoon, ladies and gentlemen and welcome to the Gulf Island's Conference Call to discuss Fourth Quarter 2021 Results. All participants will be in listen-only mode for the duration of the call. This call i ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2021 was $19.6 million, a 19% sequential decrease compared to Q2 2021 and a 23% decline from Q3 2020, primarily due to the Shipyard division [32] - Consolidated operating loss for Q3 was $3.7 million, with an EBITDA loss of $2.6 million, reflecting a positive contribution from the Fabrication & Services division offset by losses from Shipyard operations [32] - Fabrication & Services division revenue for Q3 was $17.3 million, a decrease of $952,000 compared to Q3 2020, attributed to the completion of two large projects and lower revenue from marine docking structures [33] Business Line Data and Key Metrics Changes - Fabrication & Services EBITDA for Q3 was $1.4 million, benefiting from a favorable margin mix and strong project performance despite a year-over-year revenue decline [34] - Shipyard division revenue was $2.3 million for Q3, entirely related to three ferry projects, with an operating loss of $1.9 million [36] - Corporate division operating loss for Q3 was $2.2 million, impacted by costs to diversify and enhance the business [37] Market Data and Key Metrics Changes - The LNG market is identified as the most attractive near-term opportunity, with significant bidding activity expected in Texas and Louisiana [19] - Increased inquiries in hydrogen and renewable fuels are noted, driven by energy transition initiatives [13][20] - The services business is experiencing growth due to increased activity from existing offshore customers and new customer opportunities [22] Company Strategy and Development Direction - The company is shifting focus to generating predictable and profitable growth through initiatives in new growth end markets, diversifying services, and expanding the skilled craft workforce [11][12] - The strategic plan includes improving risk profiles, strengthening liquidity, and reducing reliance on offshore oil and gas [11] - The company aims to maintain discipline in bidding and project execution to ensure adequate returns and manage labor risks effectively [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong position to take advantage of improving market trends and internal initiatives [29] - The company anticipates sequentially lower fourth-quarter revenue due to low backlog and underutilization of resources, but expects to exit the year with a cash balance of $60 million to $65 million [41] - Management is actively working with insurance providers to assess damages from Hurricane Ida and expects cash flow impacts related to deductibles [40] Other Important Information - The company reported receiving forgiveness of $8.9 million of its PPP loan, ending the quarter with a cash balance of almost $74 million and no debt [39] - The company is facing challenges in attracting skilled labor, which is critical for project execution and growth [16][22] Q&A Session Summary Question: What has really moved the needle in business development over the past four to six quarters? - Management emphasized discipline in bidding and execution plans, leading to better-than-expected project performance [45] Question: Can you characterize your bidding activities or early customer engagement by type of end project? - Management indicated that LNG and petrochemical projects will dominate near-term opportunities, while hydrogen and sustainable energy projects are further out [47][49] Question: Can you provide insights on cash balance and capital allocation? - Management stated that cash will be used for deductibles related to Hurricane Ida impacts and to wind down Shipyard operations, with a focus on growth opportunities [51][53] Question: Is all equipment functional post-Hurricane Ida? - Management confirmed that equipment is nearly 100% operational, with minor damages being assessed [61] Question: What is the size and number of contracts currently in the bidding process? - Management noted that large LNG projects could represent contract values between $50 million to $100 million, with significant opportunities expected [75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34279 GULF ISLAND FABRICATION, INC. (Exact name of registrant as specified in its charter) LOUISIANA 72-1147390 (State or other jurisdi ...

Gulf Island Fabrication, Inc. (NASDAQ:GIFI) Q2 2021 Earnings Conference Call August 10, 2021 5:00 PM ET Company Representatives Richard Heo - President & Chief Executive Officer Westley Stockton - Executive Vice President & Chief Financial Officer Cindi Cook - Executive Assistant to CEO Conference Call Participants Marty Malloy - Johnson Rice Operator Good afternoon, ladies and gentlemen. And welcome to the Gulf Island's Conference Call to discuss the Second Quarter 2021 results. All participants will be in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34279 GULF ISLAND FABRICATION, INC. (Exact name of registrant as specified in its charter) LOUISIANA 72-1147390 (State or other jurisdiction ...

Gulf Island Fabrication, Inc. (NASDAQ:GIFI) Q1 2021 Earnings Conference Call May 11, 2021 5:00 PM ET Company Representatives Richard Heo - President & Chief Executive Officer West Stockton - Executive Vice President & Chief Financial Officer Cindi Cook - Executive Assistant to CEO Conference Call Participants Jeff Geygan - Global Value Investment Corp Operator Good afternoon ladies and gentlemen and welcome to Gulf Island's conference call to discuss first quarter 2021 results. All participants will be in a ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2020 was $57.6 million, a 5% increase from Q3 2020 but a 28% decrease from Q4 2019 [28] - Consolidated net loss for Q4 2020 was $15.4 million, compared to a net loss of $12.3 million in Q3 2020 and $34.3 million in Q4 2019 [30] - Adjusted EBITDA for Q4 2020 was a loss of $9.2 million, an improvement from a loss of $10 million in Q3 2020 and a loss of $14.9 million in Q4 2019 [31] Business Line Data and Key Metrics Changes - Shipyard division revenue was $37.2 million in Q4 2020, slightly up from $37.1 million in Q3 2020 but down 22% from $47.7 million in Q4 2019 [33] - Fabrication & Services division revenue was $21.2 million in Q4 2020, up 16% from $18.2 million in Q3 2020 but down 36% from $33.2 million in Q4 2019 [39] - Fabrication & Services reported adjusted EBITDA of $1.9 million for Q4 2020, compared to $225,000 in Q3 2020 and a loss of $2.5 million in Q4 2019 [41] Market Data and Key Metrics Changes - Backlog at year-end totaled $372 million, a decrease of 15% from the previous year and 13% from September 2020 [46] - Operating cash flow for Q4 2020 was negative $11.7 million, with capital expenditures of $1 million [46] Company Strategy and Development Direction - The company is consolidating operations to improve resource utilization and reduce costs, including the relocation of the pipe mill to enhance efficiency [8][10] - There is a strategic focus on expanding into green energy markets, including renewable biofuel and hydrogen production [13][71] - The company aims to enhance customer value propositions through strategic partnerships and in-house engineering capabilities [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19, crude oil volatility, and labor availability, but expressed confidence in the company's long-term foundation and strategic initiatives [7][27] - The company is optimistic about increasing project bidding opportunities in LNG and petrochemical sectors in Texas and Louisiana [12] Other Important Information - The company has submitted a claim to recover costs associated with design deficiencies impacting vessel projects [20] - A change order with the U.S. Navy is expected to result in a benefit of $7 million to $10 million in Q1 2021 [24] Q&A Session Summary Question: What percentage of backlog is in a loss position? - The majority of the backlog in the Shipyard division is in a loss or breakeven position, contributing no incremental profitability [53][54] Question: Outlook for bidding on modular work? - The company is confident in pursuing modular work, particularly in LNG and petrochemical projects, despite previous delays [55][56] Question: Opportunities in offshore wind? - The company is selectively looking at offshore wind opportunities but faces challenges due to the shift towards monopile foundations [61][65] Question: What type of work is being pursued? - The company is winning smaller service work and is focused on engineered equipment for sustainable end markets [67][71] Question: Mitigation of skilled labor challenges? - The company is working with technical schools to improve training and retention of skilled labor [72] Question: Any further consolidation opportunities? - The company has consolidated operations in Houma and is focused on making that footprint efficient [75][78] Question: Timeline for vessel deliveries? - The second 40-vehicle ferry is expected to be delivered in Q2 2021, with the remaining vessels staggered through 2024 [80][84]

Customer Concentration and Revenue Impact - The company derives a significant portion of its revenue from a small number of customers, with two, four, and three customers accounting for 46%, 54%, and 44% of consolidated revenue in 2020, 2019, and 2018 respectively[86]. - The consolidation of primary customers in the oil and gas industry could lead to reduced capital spending and demand for the company's products and services[83]. - One customer filed for Chapter 11 bankruptcy in 2020, impacting ongoing disputes related to two MPSVs[88]. Market and Economic Challenges - The ongoing global pandemic and the contraction in oil demand have resulted in significant challenges, leading to a reduction in capital expenditures by oil and gas companies, which may adversely impact the company's financial condition[72]. - The company has experienced increased volatility in the oil and gas industry since Q1 2020, which has suppressed capital spending and resulted in fewer project awards in traditional markets[78]. - The timing of new project awards is uncertain, and delays or suspensions in bidding activities due to COVID-19 and low oil prices may further reduce future revenue opportunities[84]. - The long-term effectiveness of economic stabilization efforts related to COVID-19 remains uncertain, which could further affect the company's operations and financial condition[72]. Competitive Environment - The company faces competitive pressures from foreign competitors with lower operating costs, which may hinder its ability to successfully bid on projects[81]. - The company operates in a highly competitive environment, with contracts often awarded on a competitively bid basis, making it challenging to maintain its competitive position[80]. - Competitive pricing pressures in the fabrication and marine construction industry may negatively impact operating results[93]. Operational Challenges - The company has seen an increase in employee absenteeism and turnover, impacting project execution and productivity due to COVID-19 related challenges[76]. - The company is facing challenges in hiring and retaining skilled labor, which could negatively affect project quality and profitability[121]. - Adverse weather conditions and seasonal variations can disrupt operations and affect labor hours, particularly in the Gulf Coast region[95]. - The company experienced under-utilization of facilities and personnel, leading to losses due to high fixed costs and the impact of COVID-19[109]. Financial Condition and Capital Needs - The company experienced negative cash flows from operations during 2020, indicating potential ongoing financial challenges[104]. - The backlog of projects is subject to changes due to delays, suspensions, or terminations, which could significantly impact future revenue[96]. - The company may need to raise additional capital for working capital and capital expenditures, which could be challenging under current market conditions[98]. - A $10.0 million PPP Loan was secured, with an application for forgiveness of $8.9 million submitted, pending SBA review[105]. Asset Management and Impairments - The company has provided $7.0 million in collateral for performance bonds related to contracts that are under dispute[102]. - The company has $8.2 million in assets held for sale, primarily consisting of three 660-ton crawler cranes and two drydocks[107]. - During 2020, the company recorded impairments associated with its assets held for sale, indicating potential future losses[107]. - The company closed its Jennings Yard and Lake Charles Yard in Q4 2020, relocating certain assets to improve operational efficiency[108]. Regulatory and Compliance Risks - New tariffs and duties imposed by the federal government on imported materials, including steel, could significantly raise costs for the company's fabrication projects[132]. - Compliance with complex and stringent environmental laws may expose the company to liability and increase operational costs, particularly with potential new regulations under the Biden Administration[134]. - Increased focus on environmental, social, and governance (ESG) factors by institutional investors may adversely affect the company's financing costs and access to capital[131]. Governance and Shareholder Dynamics - Over half of the company's stock is held by institutional investors and pooled investment funds with a history of shareholder activism, which could create uncertainty about future strategic direction[130]. - The company has a Cooperation Agreement with its largest shareholder that is set to expire at the 2021 annual meeting, potentially impacting governance and strategic decisions[130]. Cybersecurity and Insurance Risks - The company may face significant financial losses due to potential cyber incidents or data security breaches[128]. - The company’s insurance coverage may be inadequate to cover claims, exposing it to significant liability and costs[114]. Joint Ventures and Partnerships - The company’s operations through joint ventures may be impacted by limited control over partners, leading to potential non-performance issues[129]. Supply Chain Dependencies - The company relies on third parties for raw materials and services, which could adversely affect its ability to meet customer commitments[123]. - The company is highly dependent on the Houma Navigation Canal for access to open waters, and lack of federal funding for dredging could hinder operations[137].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from (State or other jurisdiction of incorporation or organization) 16225 PARK TEN PLACE, SUITE 300 HOUSTON, TEXAS 77084 (Address of principal executive offices) (Zip Cod ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2020 was $54.9 million, down 9% sequentially from $60 million in Q2 2020 and down 28% year-over-year from $75.8 million in Q3 2019 [41] - Consolidated net loss for Q3 2020 was $12.3 million, compared to a net loss of $5.5 million in Q2 2020 and $6.8 million in Q3 2019 [42] - EBITDA for Q3 2020 was a loss of $10.1 million, compared to a loss of $3.4 million in the previous quarter and a loss of $4.6 million in the same quarter last year [42] Business Line Data and Key Metrics Changes - Shipyard Division revenue was $37.1 million in Q3 2020, up from $33.9 million in Q2 2020 but down from $43.3 million in Q3 2019 [45] - Fabrication & Services Division revenue was $18.2 million in Q3 2020, down 31% from $26.6 million in Q2 2020 and down 44% from $32.7 million in Q3 2019 [54] - Operating loss for the Shipyard Division was $9.2 million in Q3 2020, compared to a loss of $1.7 million in Q2 2020 and $3.3 million in Q3 2019 [47] Market Data and Key Metrics Changes - Backlog at the end of Q3 2020 totaled $429 million, a decrease of 7% year-over-year and 9% compared to June 2020 [64] - Approximately 94% of the backlog was attributable to the Shipyard Division, excluding customer options for three additional vessels for the U.S. Navy [65] Company Strategy and Development Direction - The company is focusing on improving project execution and management, consolidating divisions, and pursuing opportunities in renewable energy markets [23][38] - Cost-saving initiatives are being implemented in the Fabrication & Services Division, expected to yield results starting in Q4 2020 [76] - The company is transitioning to green energy end markets, including biofuel plant construction and hydrogen production [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the significant impact of COVID-19 and Gulf Coast hurricanes on operations, leading to disappointing results [74] - The company is actively discussing equitable resolutions with customers affected by project delays and is focused on preserving cash [75] - There is confidence in the recovery of end markets and the benefits of ongoing initiatives to strengthen the company [77] Other Important Information - The company experienced significant operational disruptions due to hurricanes and COVID-19, leading to project delays and increased costs [7][11] - A crane accident caused damage to a vessel under construction, leading to potential costs ranging from $1 million to $4 million [17][18] Q&A Session Summary Question: What actions is the company taking to mitigate the impact of COVID-19 and hurricanes? - The company is in discussions with customers for equitable resolutions and is focused on improving processes and execution [75] Question: What are the expectations for future capital needs and working capital? - Anticipated capital needs for Q4 2020 are approximately $2 to $3 million, with expected working capital increase of $10 million to $15 million [71][72]