Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2020 was $60 million, a decrease of approximately 24% sequentially and 25% year-over-year [17] - Consolidated net loss for Q2 2020 was $5.5 million, compared to net income of $5.9 million in Q1 2020 and a net loss of $5.2 million in Q2 2019 [18] - EBITDA for Q2 2020 was a loss of $3.4 million, compared to a gain of $8.2 million in the previous quarter and a loss of $3 million in the same quarter last year [18] Segment Performance Changes - Shipyard Division revenue was $33.9 million for Q2 2020, down 26% from Q1 2020 and down 15% from Q2 2019 [19] - Fabrication & Services Division revenue was $26.6 million for Q2 2020, a decrease of 20% from Q1 2020 and 35% from Q2 2019 [22] - Operating loss for the Shipyard Division was $1.7 million, while the Fabrication & Services Division reported an operating loss of $1.4 million [20][23] Market Data and Key Metrics Changes - Total backlog was approximately $470 million at the end of June 2020, a decrease of $30 million from March 2020 but an increase of $33 million from June 2019 [27] - Approximately 93% of the backlog was attributable to the Shipyard Division, excluding customer options for three additional vessels valued at approximately $200 million [27] Company Strategy and Industry Competition - The company is focusing on process improvements and enhancing project execution to better navigate the challenges posed by COVID-19 and oil price volatility [7][10] - Management is being selective in bidding for projects, particularly in the Fabrication & Services sector, where the company is targeting opportunities with the best chance of moving forward [10][53] - The company is not significantly diversifying into new markets but is concentrating on onshore petrochemical and LNG projects in Texas and Louisiana [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the duration and uncertainty of COVID-19 and volatile oil prices will continue to be headwinds [69] - The company is proactively managing variables within its control and is making progress on key initiatives to improve project execution and resource utilization [69] - There is no guidance on EBITDA for the remainder of 2020 due to ongoing market uncertainty [31] Other Important Information - Operating cash flow for the quarter was negative $3.8 million, with capital expenditures of $5.6 million [28] - The company amended its credit facility to extend the maturity date from June 2021 to June 2022 [30] Q&A Session Summary Question: When do you anticipate submitting your PPP loan forgiveness application? - The company will submit as soon as the SBA starts accepting applications, expected in the next several weeks [37][38] Question: What is the status of the $3 million receivable for billables? - The receivable was paid prior to quarter end [40] Question: Were any covenants changed in the debt facility? - No changes to covenants, except for a minimum LIBOR floor of 1% for borrowings [43][44] Question: Any updates on bidding activity and margins? - The company is being selective in bidding, with a focus on smaller projects due to financial challenges in the oil and gas sector [53] Question: Is there any discussion regarding stock buybacks? - The topic is discussed at the Board level, but a strong balance sheet is required to compete for projects, so buybacks are not imminent [62][63]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q 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 ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2020 was $78.6 million, a 16% increase year-over-year from $67.6 million in Q1 2019 [28] - Consolidated net income for Q1 2020 was $5.9 million, compared to a net loss of $3 million in Q1 2019 [28] - Operating income for Q1 2020 was $5.9 million, reflecting a $10 million gain from a contract dispute settlement [29] Business Line Data and Key Metrics Changes - Shipyard division revenue was $45.6 million in Q1 2020, a 22% increase from $37.4 million in Q1 2019, but a slight decrease from $47.7 million in Q4 2019 [30] - Fabrication and services division revenue was $33.4 million in Q1 2020, a 9% increase from $30.6 million in Q1 2019 [32] - Operating loss for the shipyard division was $1.9 million in Q1 2020, compared to an operating loss of $904,000 in Q1 2019 [31] Market Data and Key Metrics Changes - Backlog totaled approximately $500 million at March 2020, an increase of $63 million from December 2019 and $166 million from March 2019 [36] - Approximately 95% of the backlog was attributable to the shipyard division, with significant contributions from U.S. Navy option exercises [36] Company Strategy and Development Direction - The company completed the consolidation of its fabrication and services divisions to improve efficiency and reduce costs [11] - The closure of the Jennings facility is scheduled for Q3 2020 to further enhance operational efficiency [11] - The company is focusing on strengthening relationships with customers and strategic partners, receiving positive feedback on recent initiatives [12] Management's Comments on Operating Environment and Future Outlook - The management acknowledged significant challenges due to COVID-19 and declining oil prices, impacting operations and project activities [18] - The company expects 2020 to be a challenging year for the newly integrated fabrication and services division [18] - Management did not provide specific guidance for EBITDA for the remainder of 2020 due to market uncertainty [43] Other Important Information - The company received a $10 million loan under the Payroll Protection Program to retain and bring back employees [22] - The company has over $400 million of outstanding surety bonds, which are dependent on its financial strength [40] Q&A Session Summary Question: What kind of project was the $30 million project that was suspended? - The projects were fabrication projects for components to offshore production rigs, which have been suspended due to market conditions [49][50] Question: Can you comment on the bidding environment? - The bidding environment has been impacted, especially in oil and gas, with larger CapEx projects still moving forward, but smaller projects have been put on hold [59][60] Question: How should gross margin develop given recent backlog additions? - The backlog includes a significant portion that is near breakeven, but challenges with gross profit are expected as lower margin projects are completed [61][62]

Financial Position - As of March 31, 2020, the company's cash and short-term investments totaled $68.6 million, with an additional $30.2 million available under its Credit Agreement[111]. - Available liquidity as of March 31, 2020, was $68.6 million, including cash and cash equivalents of $48.6 million and short-term investments of $19.9 million[146]. - As of March 31, 2020, the company's working capital was negative $4.4 million, with total cash, cash equivalents, and short-term investments amounting to $68.6 million[147]. - The ratio of current assets to current liabilities was 1.80 to 1.00 as of March 31, 2020, indicating strong liquidity[158]. - The company had $411.8 million of outstanding surety bonds as of March 31, 2020, indicating significant project support[159]. Revenue and Profitability - Revenue for Q1 2020 was $78.6 million, up 16.2% from $67.6 million in Q1 2019[126]. - Gross profit for Q1 2020 was a loss of $254, compared to a profit of $553 in Q1 2019, reflecting a 145.9% decline[126]. - Operating income for Q1 2020 was $5.9 million, a significant improvement from a loss of $3.3 million in Q1 2019[126]. - Revenue for 2020 was $78.6 million, an increase of 16.2% compared to $67.6 million in 2019[127]. - Gross loss for 2020 was $0.3 million (0.3% of revenue), compared to a gross profit of $0.6 million (0.8% of revenue) in 2019[127]. - Revenue for the Fabrication & Services Division increased by 9.3% to $33.4 million in 2020 from $30.6 million in 2019[138]. - Gross profit for the Fabrication & Services Division was $1.0 million (2.9% of revenue) in 2020, compared to $1.0 million (3.2% of revenue) in 2019[139]. Project Awards and Backlog - New project awards for Q1 2020 totaled $141.6 million, a significant increase from $45.8 million in Q1 2019, representing a 209% growth[121]. - New project awards for 2020 were $128.9 million, significantly higher than $2.8 million in 2019, primarily due to U.S. Navy contracts[134]. - Backlog as of March 31, 2020, was $500.3 million, an increase from $437.3 million at December 31, 2019[122]. - 95% of the backlog within the Shipyard Division is attributable to government and non-oil and gas customers, including three research vessels and five rescue ships[117]. - The company expects to recognize $144.7 million of backlog revenue in the remainder of 2020, $183.3 million in 2021, and $127.8 million in 2022[123]. - The U.S. Navy has options for three additional vessels, which could increase backlog by approximately $203 million if exercised[124]. Operational Adjustments and Challenges - The company has experienced a significant decline in oil prices and demand due to COVID-19, impacting revenue and project execution[106]. - The company is implementing measures to mitigate COVID-19 impacts, including employee wellness protocols and operational adjustments[109]. - The company anticipates that large project opportunities may not be awarded until late 2020 or 2021 due to market uncertainty[116]. - The company is addressing operational challenges through cost reduction efforts and the sale of underutilized assets to improve liquidity[109]. - The company continues to focus on securing profitable new project awards and improving project gross profit despite challenges from COVID-19[117]. - The company plans to focus on securing profitable new project awards and improving liquidity through cost reductions and asset sales[162]. Corporate Structure and Strategy - The company plans to close the Jennings Yard upon completion of harbor tug projects, expected in Q3 2020, to consolidate marine vessel construction activities and improve resource utilization[115]. - The company has combined its Fabrication and Services Divisions into a new division called Fabrication & Services to enhance project execution and resource utilization[115]. - The company is enhancing its competitiveness by improving proposal and project execution processes, increasing accountability, and incorporating lessons learned into future projects[113]. - The company has made significant progress in improving cash flow from projects in backlog, although it cannot assure the successful sale of $8.1 million in assets held for sale[162].

Financial Performance - The Company reported a significant increase in revenue, reaching $40 million for the year ended December 31, 2019, compared to $30 million in the previous year, representing a 33.3% growth[22] - The average earnings per share (EPS) for the year was reported at $1.50, up from $1.00 in the previous year, marking a 50% increase[22] - The backlog of projects as of December 31, 2019, was reported at $150 million, reflecting a 20% increase from the previous year[22] - The backlog as of December 31, 2019, was $437.3 million, an increase from $356.5 million in 2018, with approximately 52% expected to be recognized as revenue beyond 2020[49] Operational Efficiency - The Company plans to enhance its project execution capabilities to improve profitability and operational efficiency[18] - The Company anticipates the closure of the Jennings Yard by the third quarter of 2020, which is expected to streamline operations and reduce costs[28] - Labor hours worked in 2019 totaled 2.4 million, up from 1.9 million in both 2018 and 2017, reflecting a significant increase in operational activity[61] Market Position and Strategy - The Fabrication Division contributed approximately 60% of total revenue, while the Shipyard Division accounted for 30% and Services Division for 10%[23] - The Company has secured new project awards in the offshore wind sector, indicating a strategic expansion into renewable energy markets[18] - The company operates in highly competitive markets influenced by oil and gas prices, with foreign competitors often having lower operating costs and government subsidies[51] - The company is exploring potential mergers and acquisitions to expand its service offerings and market reach[18] Compliance and Regulations - Compliance with environmental regulations is becoming increasingly complex and expensive, potentially impacting operational costs and project timelines[53] - The exploration and development of oil and gas properties are regulated by the Bureau of Ocean Energy Management, which imposes stringent engineering and construction specifications[56] - Future operations may be affected by changes in laws and regulations, which could require additional expenditures[59] - The company believes it has all necessary permits and licenses for its operations, which are subject to extensive government regulation[54] Workforce and Human Resources - The company had approximately 944 employees as of December 31, 2019, compared to 875 employees in 2018, indicating a workforce increase of about 7.9%[61] - The company’s ability to attract and retain skilled personnel is critical for executing projects, as indicated by the increase in labor hours[61] Safety and Quality Management - The company has a zero-tolerance policy for drugs and alcohol in the workplace, supported by a comprehensive screening program[37] - The company maintains ISO 9001-2015 certification for its quality management systems, ensuring adherence to industry standards[40] - The company’s strategic location and ISO 9001-2015 certification are expected to enhance its competitiveness in project bidding[52] Equipment and Facilities - Significant owned equipment includes 21 crawler cranes with capacities ranging from 60 to 500 tons and a floating drydock with a 15,000-ton lift capacity[32] - The company operates multiple facilities, including a 163-acre yard with 54,000 square feet of administrative and operations facilities and 267,000 square feet of covered fabrication facilities[32] Materials and Procurement - The principal materials used include standard steel shapes and welding supplies, with procurement from both domestic and foreign mills[34] - New project awards represent expected revenue values, with backlog reflecting unrecognized revenue from these commitments[46] Seasonal and External Factors - Seasonal variations may impact operations, particularly during winter months and due to weather conditions in the Gulf Coast region[50]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $79.4 million, an increase of approximately 5% sequentially and 32% year-over-year [21][23] - Consolidated net loss for the fourth quarter was $34.3 million, compared to a net loss of $6.8 million in the third quarter and $4.7 million in the fourth quarter of 2018 [21][23] - The company ended the year with total cash, investments, and availability under its credit facility of almost $100 million [22][34] Business Line Data and Key Metrics Changes - Fabrication division revenue was $15.5 million for the quarter, down from $19.5 million in the previous quarter but up from $10.2 million in the same period of 2018 [25] - Shipyard division revenue was $45.6 million for the quarter, up from $39.4 million in the previous quarter and $29.7 million in the same period of 2018 [27] - Services division revenue was $20.5 million for the quarter, up from $17.5 million in the previous quarter but down from $21.5 million in the same period of 2018 [30] Market Data and Key Metrics Changes - Backlog at December 2019 totaled approximately $437 million, a decrease of $25 million from September 2019 but an increase of $81 million from year-end 2018 [33] - The backlog by operating segment was $374 million for the shipyard division, $50 million for the fabrication division, and $13 million for the services division [33] Company Strategy and Development Direction - The company plans to be more disciplined in pursuing and evaluating prospects, focusing on profitable opportunities [10][19] - A new integrated segment combining fabrication and services divisions aims to leverage best practices and improve resource utilization [15] - The company is targeting onshore refining, petrochemical, LNG, and industrial facilities for future growth, capitalizing on anticipated capital projects within a 300-mile radius of Houma [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in profitability and emphasized a focus on improving execution capabilities and project management [8][19] - The company is committed to enhancing its bidding process and project execution to return to profitability [19][38] - Management expressed confidence in returning to profitability due to a strong balance sheet and strategic location [78] Other Important Information - The company experienced project charges of $14 million and non-cash asset impairments of $17.3 million during the quarter [21] - The company anticipates capital requirements in 2020 of approximately $10 million to $15 million [37] Q&A Session Summary Question: Outlook on EBITDA - Management noted that about 85% of the current backlog will contribute no future gross profit, emphasizing the need for new project awards to achieve positive EBITDA [56][57] Question: Competitive Advantage in New Opportunities - Management clarified that the company will not compete with international yards but will focus on strategic local projects that leverage its location and capabilities [59][60] Question: Changes in Bidding Process - Management described the implementation of a "go, no go" review process for evaluating project prospects, emphasizing a more rigorous approach to risk assessment [66][67] Question: Legal Disputes and Settlements - Management confirmed that a recent $10 million settlement was related to a change order dispute, while litigation with Hornbeck remains ongoing [74]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2019 was $75.8 million, a decrease from $80.5 million in Q2 2019 and an increase from $49.7 million in Q3 2018 [40][41] - Net loss for Q3 2019 was $6.8 million, compared to a net loss of $5.3 million in Q2 2019 and a net loss of $10.9 million in Q3 2018 [40][41] - Operating loss for Q3 2019 was impacted by project charges of $3.9 million and a $400,000 impact from Hurricane Barry [42][43] Business Line Data and Key Metrics Changes - Fabrication Division revenue was $19.5 million in Q3 2019, down from $22.4 million in Q2 2019 and up from $3.4 million in Q3 2018 [46] - Shipyard Division revenue was $39.4 million in Q3 2019, compared to $37.6 million in Q2 2019 and $24.5 million in Q3 2018 [51] - Services Division revenue was $17.5 million in Q3 2019, down from $24.1 million in Q2 2019 and $22.6 million in Q3 2018 [56] Market Data and Key Metrics Changes - Backlog at the end of September 2019 totaled approximately $462 million, a decrease of $15 million from June 2019 and an increase of $105 million from year-end 2018 [61] - Backlog by segment included $407 million for Shipyard, $40 million for Fabrication, and $15 million for Services [62] Company Strategy and Development Direction - The company aims to enhance resources, processes, and procedures to improve competitiveness and project execution while considering organic and inorganic growth opportunities [69] - The Board has decided that remaining independent is in the best interest of shareholders [69] Management Comments on Operating Environment and Future Outlook - Management expressed disappointment with project impacts during the quarter but does not expect additional charges going forward [68] - The company anticipates ongoing variability in project working capital requirements and potential increases in working capital in Q4 [63] Other Important Information - The company ended Q3 2019 with cash and short-term investments of $71.4 million, a decrease of $4.6 million from June 2019 [63] - The company has $10.4 million of outstanding letters of credit and no borrowings on its credit facility, providing $29.6 million of availability for additional letters of credit or borrowings [64] Q&A Session Summary Question: Expectations for next year's ramp-up on research vessels and Navy vessels - Management expects sequential increases in activity, reaching optimal capacity by Q4 next year [77] Question: Potential inorganic and organic growth opportunities - Management is focused on profitability and execution, with potential growth opportunities likely within the Services business [79] Question: Early delivery incentives on harbor tug projects - The company could be entitled to incentives in the range of $300,000 to $500,000 in aggregate based on current forecasted completion dates [85][86] Question: Strategic review process and cash utilization - The Board is focused on maintaining a strong balance sheet, which is crucial for customer confidence and winning new work [91][120] Question: Subcontractor usage and labor challenges - The company has reduced reliance on subcontractors in Jennings facilities, with contract labor now representing around 40% of the workforce [98][99] Question: Timeline for new CEO appointment - The Board is engaged with a search firm but does not have a specific timeline for the new CEO [113]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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 ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 2019 was $80.5 million, a sequential increase from $67.6 million in Q1 2019 and a year-over-year increase from $54 million in Q2 2018 [15][16] - The net loss for Q2 2019 was $5.2 million, compared to a net loss of $3 million in Q1 2019 and a net income of $549,000 in Q2 2018 [15][16] - The operating loss for Q2 2019 was impacted by project charges of $2.3 million and legal costs of approximately $1 million [17][18] Business Line Data and Key Metrics Changes - **Fabrication Division**: Revenue increased to $22.4 million in Q2 2019 from $12.6 million in Q1 2019 and $9.5 million in Q2 2018. Operating loss was $1.2 million, an improvement from $1.5 million in Q1 2019 but a decline from operating income of $4.2 million in Q2 2018 [22][24] - **Shipyard Division**: Revenue was $37.6 million in Q2 2019, slightly up from $36.6 million in Q1 2019 and significantly up from $23.6 million in Q2 2018. Operating loss was $3.6 million, worsening from $904,000 in Q1 2019 but slightly better than $3.4 million in Q2 2018 [26][27] - **Services Division**: Revenue rose to $24.1 million in Q2 2019 from $19.6 million in Q1 2019 and $22.2 million in Q2 2018. Operating income was $1.7 million, representing 7.2% of revenue, compared to $1.3 million (6.6%) in Q1 2019 and $2.8 million (12.8%) in Q2 2018 [29][30] Market Data and Key Metrics Changes - Backlog as of June 30, 2019, totaled approximately $476 million, an increase of $142 million from March 2019 and $120 million from year-end 2018 [36] - The backlog by segment included $410 million for the Shipyard division, $54 million for the Fabrication division, and $13 million for the Services division [37] Company Strategy and Development Direction - The company is optimistic about future revenue growth due to increased backlog and bidding activity, particularly in the Fabrication division [43] - The management is cautious about taking on new work without assessing risks, emphasizing a balanced approach to growth [44] - A special committee is evaluating strategic alternatives to enhance shareholder value, with expectations for conclusions by year-end [45] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in facility utilization and expects further enhancements as new contracts ramp up [5][7] - The company is addressing productivity issues through personnel changes and improved management practices [10][62] - There is confidence in achieving EBITDA-positive results in the latter half of the year, particularly in Q4 [50][61] Other Important Information - The company ended the quarter with cash and short-term investments of $76 million, an increase from March 2019 but a decrease from year-end 2018 [38] - Legal disputes are ongoing, with a trial date set for January 2020 regarding a jacket change order dispute [14][99] Q&A Session Summary Question: When might the company turn EBITDA-positive? - Management expects to be EBITDA-positive in the second half of the year, particularly in Q4 [50] Question: What is the status of engineering for the Oregon State University and U.S. Navy vessels? - Engineering is ahead of production, with construction ramping up in Q3 [51][53] Question: What are the margins in the backlog compared to this quarter? - The backlog has a higher margin mix, and the company is pursuing projects with better margins [60][70] Question: What is the status of the legal disputes? - The company is in discovery for ongoing lawsuits, with mediation scheduled for August 26, 2019 [96][102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 ...