Gulf Island Reports Third Quarter 2024 Results and Board Chair Transition

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].