Exhibit 99.1

NEWS RELEASE    

FOR IMMEDIATE RELEASE

Monday, November 2, 2020

GULF ISLAND

REPORTS THIRD QUARTER 2020 RESULTS

Highlights of Third Quarter Results

Houston, TX - Gulf Island Fabrication, Inc. ("Gulf Island" or the "Company") (NASDAQ: GIFI) today reported results for the third quarter 2020.

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Consolidated Overview

Consolidated revenue for the third quarter 2020 was $54.9 million, compared to $75.8 million for the third quarter 2019, with the year-over-year decrease primarily attributable to the Company’s Fabrication & Services Division. Consolidated net loss for the quarter was $12.3 million with an EBITDA loss of $10.1 million.  Third quarter 2020 results, and in particular the Shipyard Division, were impacted by several factors, including project charges associated with the impact of the COVID-19 pandemic and costs attributable to an active hurricane season in the Gulf of Mexico.  In addition, third quarter results reflected the impact of low volume for the Fabrication & Services Division and the overall under-utilization of the Company’s facilities and resources.

“The third quarter was challenging given the ongoing economic and operational impact of COVID-19, oil price uncertainty and a record level of tropical storm and hurricane activity along the Gulf Coast. In particular, pandemic-related disruptions resulted in schedule extensions and forecast cost increases on our projects for the U.S. Navy.  In addition, Hurricane Laura directly impacted our operations in Lake Charles, damaging our facilities, drydocks and ninth harbor tug project which was within days of being delivered. While many of our employees in Lake Charles and Jennings suffered substantial property losses, thankfully no one was injured.  I am proud and grateful to our employees who have continued to deliver on our project commitments during this very difficult time,” said Richard Heo, Gulf Island’s President and Chief Executive Officer.

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“In response to these challenges, we are working closely with the Navy and are submitting a request for equitable adjustment to extend our schedules and recoup the cost increases associated with the impact of COVID-19 on our projects. We also delivered our ninth harbor tug in October and are on scheduled to deliver the tenth vessel, as well as complete the closure of our Jennings facility, in the fourth quarter.”

“With respect to our Fabrication & Services Division, we had solid project execution during the quarter with our jacket and deck project being completed on an accelerated schedule and realizing margin improvement relative to our previous forecast. We continue to actively pursue new project opportunities and remain disciplined in our bidding approach. We also winning smaller quick turnaround projects and executing the work at attractive margins.”  

“In closing, the impact of COVID-19 and the Gulf Coast hurricanes were disruptive to our operations in the third quarter.  However, our focus will continue to be on effectively managing those things that are within our control and preserving our cash by controlling our costs and monetizing under-utilized assets where possible. We also continue to explore expanding our end markets to reduce our reliance on the offshore oil and gas industry.  While COVID-19 and oil price uncertainty are still weighing on customer decision-making and affecting the utilization of our facilities and resources, I believe we have made progress and are seeing the positive impact of our investments in processes and people,” concluded Mr. Heo.

Segment Overview

Shipyard Segment – Revenue for the third quarter 2020 was $37.1 million, a decrease of $6.2 million compared to the third quarter 2019, primarily due to lower revenue for the division’s harbor tug, research vessel and ice-breaker tug projects.  The decrease was partially offset by higher revenue for the division’s towing, salvage and rescue ship projects and seventy-vehicle ferry project. Operating loss was $9.2 million for the third quarter 2020, compared to an operating loss of $3.3 million for the third quarter 2019. EBITDA for the current quarter was a loss of $8.4 million, compared to a loss of $2.4 million for the third quarter 2019.

Third quarter 2020 results reflected project charges of $6.7 million for the division’s towing, salvage and rescue ship projects, charges of $1.2 million associated with the impact of Hurricane Laura, a low margin backlog, and the partial under-recovery of overhead costs.  The project charges were primarily attributable to an increase in forecast costs related to the impact of the COVID-19 pandemic, for which the Company is submitting a request for equitable adjustment to its customer to extend the project schedules and recover the forecasted cost increases. The partial under-recovery of overhead costs was primarily due to the under-utilization of the division’s facilities and resources due to construction delays for its research vessel projects, the winding down of the Jennings facility, and the impacts of Hurricane’s Laura, Marco and Sally during the third quarter.  

Fabrication & Services Segment – Revenue for the third quarter 2020 was $18.2 million, a decrease of $14.4 million compared to the third quarter 2019, primarily due to the division’s jacket and deck, paddlewheel river boat and subsea components projects, which were completed during or prior to the third quarter 2020, and lower offshore and onshore services activity.  The decrease was partially offset by higher revenue for the division’s marine docking structures project and offshore module project. Operating loss was $1.1 million for the third quarter 2020, compared to an operating loss of $1.3 million for the third quarter 2019. EBITDA for the current quarter was $0.2 million, compared to a loss of $0.1 million for the third quarter 2019.

Third quarter 2020 results reflected low revenue and the partial under-recovery of overhead costs due to the under-utilization of the division’s facilities and resources due to low levels of backlog, and overhead costs associated with retaining employees to perform process improvements, special projects and facility maintenance and repairs. These impacts were partially offset by project improvements of $0.6 million for the division’s jacket and deck project.

Corporate Segment – Operating loss was $1.9 million for the third quarter 2020, compared to an operating loss of $2.3 million for the third quarter 2019, with the decrease primarily due to lower incentive plan costs and our cost reduction initiatives. EBITDA for the current quarter was a loss of $1.8 million, compared to a loss of $2.2 million for the third quarter 2019.

Cash and Liquidity

The Company's cash and short-term investments at September 30, 2020 totaled $63.8 million and current and long-term debt totaled $10.0 million related to proceeds received in the second quarter 2020 in connection with the Paycheck Protection Program (“PPP”).    

On August 3, 2020, the Company amended its $40.0 million credit facility (“Credit Agreement”) to extend its maturity date from June 9, 2021 to June 30, 2022. At September 30, 2020, the Company was in compliance with all its financial covenants and had $10.7 million of outstanding letters of credit and no borrowings under the Credit Agreement.  

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Backlog

The Company’s backlog at September 30, 2020 was $429.1 million, with $402.9 million attributable to the Shipyard Division and $26.2 million attributable to the Fabrication & Services Division. Backlog excludes customer options on contracts of approximately $203.0 million for the Shipyard Division. See "Non-GAAP Measures" below for the Company's definition of Backlog.

Quarterly Conference Call

Gulf Island will hold a conference call on Monday, November 2, 2020 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to discuss the Company’s financial results. The call will be available by webcast and can be accessed on Gulf Island’s website at www.gulfisland.com. Participants may also join the call by dialing 1.800.430.8332 and requesting the “Gulf Island” conference call. A replay of the webcast will be available on the Company's website for seven days after the call.

About Gulf Island

Gulf Island is a leading fabricator of complex steel structures, modules and marine vessels, and a provider of project management, hookup, commissioning, repair, maintenance and civil construction services.  The Company’s customers include U.S. and international energy producers; refining, petrochemical, LNG, industrial, power and marine operators; EPC companies; and certain agencies of the U.S. government. The Company operates and manages its business through two operating divisions: Fabrication & Services and Shipyard, with its corporate headquarters located in Houston, Texas and operating facilities located in Houma, Jennings and Lake Charles, Louisiana.

Non-GAAP Measures

This Release includes certain non-GAAP measures, including earnings before interest, taxes, depreciation and amortization ("EBITDA") and Backlog. The Company believes EBITDA is a useful supplemental measure as it reflects the Company's operating results excluding the non-cash impacts of depreciation and amortization. A reconciliation of EBITDA to the most comparable GAAP measure is presented under "EBITDA" and "Results of Operations by Segment" below. The Company believes Backlog is a useful supplemental measure as it represents work that the Company is contractually obligated to perform under its current contracts. Backlog represents the unearned value of new project awards and may differ from the value of remaining performance obligations for contracts as determined under GAAP. Backlog at September 30, 2020 of $429.1 million includes the Company's performance obligations of $407.2 million, plus $21.9 million of backlog subject to a contract termination dispute with a customer to build two multi-purpose service vessels that does not meet the criteria to be reported as remaining performance obligations under GAAP.

Non-GAAP measures are not intended to be replacements or alternatives to GAAP measures, and investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP. The Company may present or calculate non-GAAP measures differently from other companies.

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Cautionary Statements

This Release contains forward-looking statements in which the Company discusses its potential future performance. Forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, are all statements other than statements of historical facts, such as projections or expectations relating to oil and gas prices, operating cash flows, capital expenditures, liquidity and tax rates. The words “anticipates,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “targets,” “intends,” “likely,” “will,” “should,” “to be,” “potential” and any similar expressions are intended to identify those assertions as forward-looking statements.

The Company cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, projected or assumed in the forward-looking statements. Important factors that can cause its actual results to differ materially from those anticipated in the forward-looking statements include: the duration and scope of, and uncertainties associated with, the COVID-19 pandemic and the corresponding weakened demand for, and volatility of prices of, oil and the impact thereof on its business and the global economy, which are evolving and beyond its control; the potential forgiveness of any portion of the PPP Loan; its ability to secure new project awards, including fabrication projects for refining, petrochemical, LNG and industrial facilities and offshore wind developments; the Company’s ability to improve project execution; the cyclical nature of the oil and gas industry; competition; consolidation of its customers; timing and award of new contracts; reliance on significant customers; financial ability and credit worthiness of its customers; nature of its contract terms; competitive pricing and cost overruns on its projects; adjustments to previously reported profits or losses under the percentage-of-completion method; weather conditions; changes in backlog estimates; suspension or termination of projects; its ability to raise additional capital; its ability to amend or obtain new debt financing or credit facilities on favorable terms; its ability to remain in compliance with the covenants contained in its Credit Agreement; its ability to generate sufficient cash flow; its ability to sell certain assets; any future asset impairments; utilization of facilities or closure or consolidation of facilities; customer or subcontractor disputes; its ability to resolve the dispute with a customer relating to the purported terminations of contracts to build two MPSVs; operating dangers and limits on insurance coverage; barriers to entry into new lines of business; its ability to employ skilled workers; loss of key personnel; performance of subcontractors and dependence on suppliers; changes in trade policies of the U.S. and other countries; compliance with regulatory and environmental laws; lack of navigability of canals and rivers; any prolonged shutdown of the U.S. government; systems and information technology interruption or failure and data security breaches; performance of partners in any future joint ventures and other strategic alliances; shareholder activism; focus on environmental, social and governance factors by institutional investors; and other factors described in Item 1A "Risk Factors" in the Company’s 2019 Annual Report as updated in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and as may be further updated by subsequent filings with the SEC.

Investors are cautioned that many of the assumptions upon which the Company’s forward-looking statements are based are likely to change after the forward-looking statements are made, which it cannot control. Further, the Company may make changes to its business plans that could affect its results. The Company cautions investors that it does not intend to update forward-looking statements more frequently than quarterly notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes, and undertakes no obligation to update any forward-looking statements.

Company Information

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Consolidated Results of Operations⁽¹⁾ (in thousands, except per share data)    

Consolidated EBITDA (in thousands)

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Results of Operations by Segment (in thousands)

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Consolidated Balance Sheets (in thousands)

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Consolidated Cash Flows (in thousands)

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