0001031623-17-000006.txt : 20170223 0001031623-17-000006.hdr.sgml : 20170223 20170223170247 ACCESSION NUMBER: 0001031623-17-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20170223 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20170223 DATE AS OF CHANGE: 20170223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GULF ISLAND FABRICATION INC CENTRAL INDEX KEY: 0001031623 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED STRUCTURAL METAL PRODUCTS [3440] IRS NUMBER: 721147390 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34279 FILM NUMBER: 17633436 BUSINESS ADDRESS: STREET 1: 16225 PARK TEN PLACE, SUITE 280 CITY: HOUSTON STATE: TX ZIP: 77084 BUSINESS PHONE: 7137146100 MAIL ADDRESS: STREET 1: 16225 PARK TEN PLACE, SUITE 280 CITY: HOUSTON STATE: TX ZIP: 77084 8-K 1 q4gifi-12312016x8k.htm 8-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 23, 2017

GULF ISLAND FABRICATION, INC.
(Exact name of registrant as specified in its charter)
Louisiana
001-34279
72-1147390
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
16225 Park Ten Place, Suite 280
Houston, Texas 77084
 (Address of principal executive offices)(Zip Code)
(713) 714-6100
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))




Item 2.02    Results of Operations and Financial Condition.
On February 23, 2017, Gulf Island Fabrication, Inc. issued a press release announcing fourth quarter 2016 earnings. A copy of the press release is attached as Exhibit 99.1.


Item 9.01    Financial Statements and Exhibits.
            (c) Exhibits        
The following exhibit is filed herewith:
 
 
Exhibit No.
Description
99.1
Press Release dated February 23, 2017


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
GULF ISLAND FABRICATION, INC.
 
 
 
 
 
 
By:
/s/ Kirk J. Meche
 
 
 
Kirk J. Meche
 
 
 
President and Chief Executive Officer
Dated:
February 23, 2017
 
 



 EX-99.1 2 pressrelease4q2016.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

NEWS RELEASE
February 23, 2017

For further information, contact:
Kirk J. Meche    David S. Schorlemer
Chief Executive Officer    Chief Financial Officer
713-714-6100    713-714-6100


GULF ISLAND FABRICATION
REPORTS FOURTH QUARTER EARNINGS


HOUSTON, TX - Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today reported a net loss of $3.6 million ($0.24 diluted loss per share) on revenue of $55.5 million for its fourth quarter ended December 31, 2016, compared to a net loss of $14.7 million ($1.01 diluted loss per share) on revenue of $55.0 million for the fourth quarter ended December 31, 2015. For the years ended December 31, 2016 and 2015, the Company reported net income of $3.5 million ($0.24 diluted earnings per share) on revenue of $286.3 million compared to a net loss of $25.4 million ($1.75 diluted loss per share) on revenue of $306.1 million, respectively.

The Company had a revenue backlog of $133.0 million and a labor backlog of approximately 1.3 million hours at December 31, 2016, including commitments received through February 22, 2017, compared to a revenue backlog of $181.2 million and a labor backlog of 1.6 million hours reported as of September 30, 2016. We expect to recognize revenue from our backlog of approximately $130.4 million and $2.6 million during the years 2017 and 2018, respectively.

 
December 31,
2016
 
December 31,
2015
 
(in thousands)
Cash and cash equivalents
$
51,167

 
$
34,828

Total current assets
113,360

 
115,869

Property, plant and equipment, net
206,222

 
200,384

Total assets
322,408

 
316,923

Total current liabilities
35,348

 
37,901

Total debt
—

 
—

Total shareholders’ equity
$
263,032

 
$
257,197



As of December 31, 2016, our balance sheet position remained stable with $51.2 million in cash, no debt, and working capital of $78.0 million. We will continue to monitor and maintain a conservative capital structure as we navigate through the current oil and gas downturn.

On February 23, 2017, our Board of Directors approved a recommendation of management to consolidate all of our fabrication operations in South Texas with our fabrication operations in Houma, Louisiana, and place our properties located in Aransas Pass and Ingleside, Texas, up for sale. These properties are currently underutilized and represent excess capacity within our fabrication division. We are working to wind down all fabrication activities at these locations and re-allocate remaining backlog and workforce to our Houma fabrication operations as necessary. We do not expect the sale of these properties to impact our ability to service our deepwater customers or operate our fabrication division.

The management of Gulf Island Fabrication, Inc. will hold a conference call on Friday, February 24, 2017, at 9:00 a.m. central time (10:00 a.m. eastern time) to discuss the Company’s financial results for the quarter and year ended December 31, 2016. The call is accessible by webcast (www.gulfisland.com) through CCBN and by dialing 1.888.264.8952. A digital rebroadcast of the call is available two hours after the call and ending March 3, 2017 by dialing 1.888.203.1112.


1

Gulf Island Fabrication, Inc. is a leading fabricator of complex steel structures and marine vessels used in energy extraction and production, petrochemical and industrial facilities, power generation and alternative energy projects and shipping and marine transportation operations. The Company also provides related installation, hookup, commissioning, repair and maintenance services with specialized crews and integrated project management capabilities. The Company is currently fabricating complex modules for the construction of a new petrochemical plant, completing newbuild construction of two technologically advanced offshore support and two multi-purpose service vessels and recently fabricated wind turbine pedestals for the first offshore wind power project in the United States. The Company also constructed one of the largest lift boats servicing the Gulf of Mexico ("GOM"), one of the deepest production jackets in the GOM and the first SPAR fabricated in the United States. The Company’s customers include U.S. and, to a lesser extent, international energy producers, petrochemical, industrial, power and marine operators. Our corporate headquarters is located in Houston, Texas, with fabrication facilities located in Houma, Jennings and Lake Charles, Louisiana, and Aransas Pass and Ingleside, Texas.


GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)

 
 
Three Months Ended
 
Twelve Months Ended
 
December 31,
 
December 31,
 
September 30,
 
December 31,
 
December 31,
 
2016
 
2015
 
2016
 
2016
 
2015
Revenue
$
55,461

 
$
55,018

 
$
65,384

 
$
286,326

 
$
306,120

Cost of revenue
55,633

 
72,590

 
60,125

 
261,473

 
321,276

Gross (loss) profit
(172
)
 
(17,572
)
 
5,259

 
24,853

 
(15,156
)
General and administrative expenses
5,037

 
4,439

 
5,086

 
19,670

 
16,256

Asset impairment
—

 
602

 
—

 
—

 
7,202

Operating (loss) income
(5,209
)
 
(22,613
)
 
173

 
5,183

 
(38,614
)
Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(84
)
 
(39
)
 
(110
)
 
(332
)
 
(165
)
Interest income
4

 
5

 
12

 
24

 
26

Other income (expense)
(358
)
 
—

 
599

 
681

 
20

 
(438
)
 
(34
)
 
501

 
373

 
(119
)
(Loss) income before income taxes
(5,647
)
 
(22,647
)
 
674

 
5,556

 
(38,733
)
Income taxes
(2,092
)
 
(7,980
)
 
133

 
2,041

 
(13,369
)
Net (loss) income
$
(3,555
)
 
$
(14,667
)
 
$
541

 
$
3,515

 
$
(25,364
)
Per share data:
 
 
 
 

 
 
 
 
Basic and diluted (loss) earnings per share - common shareholders
$
(0.24
)
 
$
(1.01
)
 
$
0.04

 
$
0.24

 
$
(1.75
)
Cash dividend declared per common share
$
0.01

 
$
0.10

 
$
0.01

 
$
0.04

 
$
0.40



Backlog (in thousands)
 
 
December 31, 2016
 
September 30, 2016
June 30, 2016
Segment
 
$'s
 
Labor hours
 
$'s
 
Labor hours
 
$'s
 
Labor hours
Fabrication
 
$
65,444

 
707

 
$
84,940

 
841

 
$
41,126

 
431

Shipyards
 
59,771

 
457

 
78,886

 
582

 
93,912

 
629

Services
 
7,757

 
101

 
17,386

 
163

 
22,540

 
209

Intersegment Eliminations
 
—

 
—

 
—

 
—

 
(41
)
 
—

Total Backlog
 
$
132,972

 
1,265

 
$
181,212

 
1,586

 
$
157,537

 
1,269

 
 
 
 
 
 
 
 
 
 
 
 
 


Results of Operations by Operating Segments (in thousands, except percentages)
Fabrication Division
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Revenue
 
$
18,247

 
$
14,145

 
$
88,683

 
$
151,576

Gross profit (loss)
 
643

 
(23,486
)
 
5,061

 
(37,541
)
Gross profit percentage
 
3.5
%
 
(166.0
)%
 
5.7
%
 
(24.8
)%
General and administrative expenses
 
1,621

 
2,267

 
6,100

 
9,293

Asset impairment
 
—

 
602

 
—

 
7,202

Operating loss
 
(978
)
 
(26,355
)
 
(1,039
)
 
(54,036
)

Shipyards Division
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Revenue
 
$
22,949

 
$
12,424

 
$
109,502

 
$
59,601

Gross (loss) profit
 
(2,008
)
 
2,643

 
7,587

 
8,665

Gross profit percentage
 
(8.7
)%
 
21.3
%
 
6.9
%
 
14.5
%
General and administrative expenses
 
1,875

 
449

 
7,750

 
1,692

Operating (loss) income
 
(3,883
)
 
2,194

 
(163
)
 
6,973


Services Division
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
Revenue
 
$
15,235

 
$
29,444

 
$
91,414

 
$
100,431

Gross profit
 
1,193

 
3,277

 
12,205

 
13,726

Gross profit percentage
 
7.8
%
 
11.1
%
 
13.4
%
 
13.7
%
General and administrative expenses
 
1,518

 
1,170

 
5,637

 
4,178

Operating (loss) income
 
(325
)
 
2,107

 
6,568

 
9,548




GULF ISLAND FABRICATION, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 
Twelve Months Ended December 31,
 
2016
 
2015
 
(in thousands)
Cash flows from operating activities:
 
 
 
Net income (loss)
$
3,515

 
$
(25,364
)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
 
Depreciation
25,448

 
26,204

Amortization of deferred revenue
(5,223
)
 
—

Asset impairment
—

 
7,202

Allowance for doubtful accounts
493

 
448

(Gain) loss on sale of asset
(757
)
 
(10
)
Deferred income taxes
1,409

 
(14,061
)
Stock-based compensation expense
3,125

 
2,707

Changes in operating assets and liabilities:
 
 
 
Contracts receivable, net
28,067

 
31,740

Contracts in progress
(13,984
)
 
14,167

Advance billings on contracts
(3,197
)
 
(11,685
)
Accounts payable
(12,757
)
 
(26,668
)
Prepaid expenses and other assets
230

 
1,092

Inventory
6,501

 
931

Accrued contract losses
(9,108
)
 
8,678

Deferred revenue
(11,656
)
 
—

Deferred compensation
305

 
—

Accrued expenses
2,003

 
(5,381
)
Current income taxes
(63
)
 
615

Net cash provided by operating activities
$
14,351

 
$
10,615

Cash flows from investing activities:
 
 
 
Cash received in acquisition
3,035

 
—

Capital expenditures, net
(6,795
)
 
(6,018
)
Proceeds from the sale of equipment
6,458

 
11

Net cash provided by (used in) investing activities
2,698

 
(6,007
)
Cash flows from financing activities:
 
 
 
Payment of financing costs
(122
)
 
—

Payments of dividends on common stock
(588
)
 
(5,865
)
Net cash used in financing activities
(710
)
 
(5,865
)
Net increase (decrease) in cash and cash equivalents
16,339

 
(1,257
)
Cash and cash equivalents at beginning of period
34,828

 
36,085

Cash and cash equivalents at end of period
$
51,167

 
$
34,828

Supplemental cash flow information:
 
 
 
Interest paid
$
332

 
$
165

Income taxes paid (refunds received), net
$
377

 
$
(152
)
Schedule of noncash financing activities
Reclassification of property, plant and equipment to assets held for sale
$
—

 
$
4,805

Reclassification of assets to held for sale to inventory
$
—

 
$
3,727