Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2019 was $67.6 million, a 17% increase from $57.3 million in Q1 2018 and a 12% increase from $60.2 million in Q4 2018 [9][10] - Net loss for Q1 2019 was $3 million, or a diluted loss per share of $0.20, compared to a net loss of $5.3 million, or a diluted loss per share of $0.35 in Q1 2018 [9][10] - Operating loss decreased from $5.3 million in Q1 2018 to $3 million in Q1 2019, attributed to higher revenue and a better project mix [11][12] Business Line Data and Key Metrics Changes - **Shipyard Division**: Revenue was $36.6 million in Q1 2019, up from $18.6 million in Q1 2018 and $29.7 million in Q4 2018. Operating loss improved to $904,000 from $2 million in Q1 2018 [15][16] - **Fabrication Division**: Revenue decreased to $12.6 million in Q1 2019 from $17.3 million in Q1 2018, with an operating loss of $1.5 million compared to a loss of $2.5 million in Q1 2018 [20][22] - **Services Division**: Revenue was $19.6 million in Q1 2019, down from $21.9 million in Q1 2018, with operating income of $1.3 million, a decrease from $1.9 million in Q1 2018 [24][25] Market Data and Key Metrics Changes - Backlog as of March 31, 2019, totaled approximately $335 million, an increase of $43 million from March 2018 but a decrease of $22 million from year-end 2018 [29][30] - The backlog included $248 million for the Shipyard Division, $71 million for the Fabrication Division, and $15 million for the Services Division [30] Company Strategy and Development Direction - The company combined its EPC Division with the Fabrication Division to focus on modular fabrication in the petrochemical sector and offshore wind opportunities [8] - Approximately 90% of the backlog is now outside the oil and gas sector, indicating a strategic shift towards diversification [37] Management's Comments on Operating Environment and Future Outlook - Management expects improvement in facility utilization and revenue as construction activities ramp up for the backlog [39] - The company is optimistic about ongoing opportunities in onshore fabrication and traditional oil and gas maintenance [38] - A Special Committee has been established to evaluate options to enhance shareholder value, indicating a proactive approach to strategic alternatives [41] Other Important Information - The company ended Q1 2019 with cash and short-term investments of $70.2 million, an increase from $64 million in March 2018 [32][34] - The credit facility was amended to extend its maturity to June 2021, maintaining strong liquidity [34] Q&A Session Summary Question: Update on engineering and construction ramp-up for vessels - Management confirmed that engineering continues and construction for the Navy vessels is expected to start in Q3 2019, with the first vessel for Oregon State commencing construction this quarter [46][48] Question: Movement on SeaOne funding - Management indicated no significant movement on SeaOne financing, focusing efforts on petrochemical projects instead [55][58] Question: Status of disputed vessels - The two disputed vessels remain in the company's facilities, with $12.5 million related to those projects in long-term assets and $21 million in backlog [62][64] Question: Facility utilization and profitability - Management stated that full utilization is not currently achievable based solely on backlog, but improvements are expected by the end of the year [67][68] Question: Strategic alternatives and M&A activity - Management did not provide specific comments on M&A activity but emphasized the importance of maximizing shareholder returns through the strategic review process [79][80]

¨ 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) 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 March 31, 2019 or LOUISIANA 72-1147390 (State or other jurisdictio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2018 ¨ 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) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - Consolidated revenue for Q4 2018 was $60.2 million, compared to $37.3 million in Q4 2017, reflecting a significant increase [16] - Net loss for Q4 2018 was $4.7 million, or diluted loss per share of $0.31, an improvement from a net loss of $24.3 million, or diluted loss per share of $1.63 in Q4 2017 [16] - The operating results were impacted by a forecast cost increase of $5.8 million on harbor tug projects and lower revenue volume in the Fabrication division [17] Business Line Data and Key Metrics Changes - Shipyard division revenue was $29.7 million for Q4 2018, up from $900,000 in the same period of 2017, with an operating loss of $6.6 million compared to $27.5 million in Q4 2017 [20] - Fabrication division revenue decreased by 36% to $9.8 million from $15.4 million in Q4 2017, but operating income improved to $2.2 million from an operating loss of $9.8 million [23] - Services division revenue was $21.5 million, slightly down from $21.7 million in Q4 2017, with operating income increasing to $2.1 million from $1.5 million [26] Market Data and Key Metrics Changes - Backlog as of December 31, 2018, totaled approximately $357 million, an increase of $135 million from the previous year [29] - The backlog by segment included $282 million for the Shipyard division, $64 million for Fabrication, $11 million for Services, and $400,000 for EPC [29] - Cash and short-term investments at year-end were $79.2 million, an increase of almost $25 million from September 2018 [30] Company Strategy and Development Direction - The company is focusing on improving estimating functions by centralizing efforts at the Houma shipyard to prevent future cost overruns [10][46] - Management remains optimistic about future opportunities across all business lines, citing significant bidding activity [33] - The company is targeting recovery of underutilized overheads and is actively pursuing new projects [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges with the harbor tug projects but emphasized lessons learned will be applied to future work [33] - The company anticipates starting work on Navy vessels in the latter part of 2019, with ongoing negotiations to finalize contracts [36][37] - There is a positive outlook for profitability in 2019, with expectations of improved operating income as backlog projects progress [40][41] Other Important Information - The company reported a $2.8 million benefit from the recovery of bad debt in the Fabrication division [18] - The company is experiencing strong liquidity with total cash, investments, and credit availability of approximately $116 million [31] Q&A Session Summary Question: Discussion on the pace of work on Navy vessels and potential further awards - Management indicated that negotiations with the Navy are ongoing, with work expected to start in the third or fourth quarter of 2019 [36][37] Question: Insights on profitability and timing for 2019 - Management expects to recover overheads and improve margins, with a goal of returning to profitability in the latter part of 2019 [40][41] Question: Changes with the tug projects and mitigation strategies - Management is centralizing estimating efforts to improve accuracy and prevent future issues, acknowledging that the current project is not profitable [46][48] Question: Scope and impact of the jacket projects in the Fabrication division - Management expressed excitement about the jacket project, which is expected to improve utilization in the Fabrication division [49][50] Question: Market outlook and relationship with SeaOne - Management noted high levels of bidding activity, particularly in the petrochemical industry, while the status of SeaOne's financing remains uncertain [52][54]