Gulf Island to shift all fab ops to Houma, sell Texas yards

FEBRUARY 24, 2017 — Gulf Island Fabrication, Inc. (NASDAQ: GIFI) reports that its Board of Directors has approved a recommendation from management to place its properties in Aransas Pass and Ingleside, Texas, up for sale and consolidate all of its fabrication operations in Houma, Louisiana.

It says the Aransas Pass and Ingleside properties are currently underutilized and represent excess capacity within it 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 Yard as necessary," says the company. "We do not expect the sale of these properties to impact our ability to service our deepwater customers or operate our fabrication division."

Gulf Island acquired the Houma facility with its 2016 acquisition of Leevac Shipyards.

Gulf Island yesterday 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.

The company says it expects to recognize revenue from our backlog of approximately $130.4 million and $2.6 million during the years 2017 and 2018, respectively.

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