 Highlights of Second Quarter Results Completed and delivered eighth harbor tug and ice-breaker tug for the Shipyard Division Received new project award for mooring and breasting dolphins for the Fabrication Services Division Reduced Board size by three members, in line with cost reduction initiatives Jennings facility closure moved to the fourth quarter 2020 Net loss of 5.5 million and EBITDA loss of 3.4 million for the second quarter 2020HOUSTON, Aug. 04, 2020 GLOBE NEWSWIRE -- Gulf Island Fabrication, Inc. Gulf Island or the Company NASDAQ: GIFI today reported results for the second quarter 2020.Operating Results Three Months Ended Six Months Ended in thousands, except per share data June 30, March 31, June 30, June 30, June 30, 2020 2020 2019 2020 2019 Revenue 59,974 78,555 80,456 138,529 148,061 Operating income loss1 5,426 5,936 5,384 510 8,666 EBITDA1, 2 3,359 8,156 2,962 4,797 3,692 Net income loss1 5,537 5,905 5,248 368 8,290 Basic and diluted income loss per common share1 0.36 0.39 0.34 0.02 0.55 Balance Sheet in thousands June 30, March 31, December 31, 2020 2020 2019 Cash and cash equivalents 49,184 48,562 49,703 Short-term investments 19,992 19,993 19,918 Current assets 174,415 162,448 163,474 Current liabilities 99,345 90,190 97,844 1 Includes a gain of 10.0 million for the three months ended March 31, 2020 and six months ended June 30, 2020 associated with the settlement of a contract dispute for a previously completed project. 2EBITDA is a non-GAAP measure. See Non-GAAP Measures below for the Companys reconciliation and definition of EBITDA. Consolidated Overview Consolidated revenue for the second quarter 2020 was 60.0 million, compared to 80.5 million for the second quarter 2019, representing a 25.5 decline, with 14.0 million attributable to the Companys Fabrication Services Division and 6.2 million attributable to its Shipyard Division. Consolidated net loss for the quarter was 5.5 million and EBITDA was a loss of 3.4 million. Operating results for the current quarter were impacted by a low margin backlog for the Companys Shipyard Division, low volume for its Fabrication Services Division, and the underutilization of the Companys facilities and resources within both divisions. The underutilization in the Fabrication Services Division was due to the divisions low backlog and the Shipyard Divisions underutilization was attributable to temporary construction delays for its three research vessel projects associated with the previously disclosed suspension of construction activities on the projects.We continued to navigate through a difficult business environment due to the COVID-19 pandemic and oil price volatility which impacted our overall results. Despite these challenges, our leadership teams and employees have responded effectively as we progressed on our strategic initiatives. Our overall project execution was in line with our expectations for the quarter and our process improvements are becoming further embedded in our culture. In addition to our efforts to improve performance, we continue to emphasize a safe and healthy operating environment for our employees, customers and suppliers, said Richard Heo, Gulf Islands President and Chief Executive Officer.During the second quarter, our Shipyard Division completed our ice-breaker tug and eighth harbor tug. We expect completion of the ninth tug this month and the final tug in the fourth quarter. We had previously expected completion of the last vessel and closure of the Jennings facility in the third quarter. However, the final tugs completion has been affected by lower than anticipated craft labor productivity and progress due to the wind down of the Jennings facility, as well as the COVID-19 impact on workflow related to social distancing measures. Regarding new project opportunities, we continue to target prospects with attractive margins for which the project schedules are complementary to the execution of our current backlog.With respect to our Fabrication Services Division, the market for oil and gas related projects continues to be competitive and impacted by the COVID-19 pandemic and oil price volatility. While the level of bidding activity remains high, we anticipate ongoing delays and possible cancellations of potential new project awards as a result of current market conditions. Despite these headwinds, during the quarter we were awarded several quick turnaround projects and a project for mooring and breasting dolphins. We also received additional scopes of work for our jacket and deck project and achieved an accelerated completion schedule for the project. In summary, while I am not satisfied with our operating results, I am pleased with the progress made so far in our process improvements and our teams ability to remain disciplined and opportunistic, especially in the pursuit and execution of projects. Our employees also continue to maintain a high level of dedication and effort in safely delivering on our project commitments to our customers. As end markets recover, we will be well-positioned to capture our share of the market and return Gulf Island to profitability, concluded Mr. Heo.Segment OverviewShipyard Segment Revenue for the second quarter 2020 was 33.9 million, a decrease of 6.2 million compared to the second quarter 2019, primarily due to lower revenue for the divisions harbor tug, research vessel and ice-breaker tug projects, offset partially by higher revenue for the divisions towing, salvage and rescue ship projects and seventy-vehicle ferry project. Operating loss was 1.7 million for the second quarter 2020, compared to an operating loss of 3.6 million for the second quarter 2019. EBITDA for the current quarter was a loss of 0.9 million, compared to an EBITDA loss of 2.5 million for the second quarter 2019.Second quarter 2020 results reflected a low margin backlog, the partial under recovery of overhead costs due to construction delays for the divisions research vessel projects, and project charges of 0.6 million on the divisions final two harbor tug projects. The charges primarily reflect lower than anticipated craft labor productivity and progress on the projects, resulting from the wind down of the Jennings facility in connection with its anticipated closure and the impacts of the COVID-19 pandemic associated with social distancing measures. Fabrication Services Segment Revenue for the second quarter 2020 was 26.6 million, a decrease of 14.0 million compared to the second quarter 2019, primarily due to the completion of the divisions paddlewheel river boat and subsea components projects and lower offshore and onshore services activity, offset partially by higher revenue for the divisions offshore jacket and deck and material supply projects. Operating loss was 1.4 million for the second quarter 2020, compared to operating income of 0.5 million for the second quarter 2019. EBITDA for the current quarter was a loss of 0.2 million, compared to EBITDA of 1.8 million for the second quarter 2019.Second quarter 2020 results reflect low volume and the partial under recovery of overhead costs due to low backlog, and costs associated with retaining salaried overhead and hourly craft employees to perform process improvements, special projects and facility maintenance and repairs. These impacts were partially offset by project improvements of 1.0 million for the divisions jacket and deck, paddlewheel riverboat and subsea components projects.Corporate Segment Operating loss was 2.3 million for the second quarter 2020, compared to an operating loss of 2.3 million for the second quarter 2019. EBITDA for the current quarter was a loss of 2.2 million, compared to an EBITDA loss of 2.2 million for the second quarter 2019.Cash and LiquidityThe Companys cash and short-term investments at June 30, 2020 totaled 69.2 million, representing a decrease of 0.6 million from December 31, 2019. The Company ended the second quarter 2020 with total working capital of 75.1 million, which includes 8.1 million of assets held for sale.On April 17, 2020, the Company entered into a loan agreement and received proceeds of 10.0 million in connection with the Paycheck Protection Program PPP Loan to obtain funding necessary to offset the immediate and anticipated impact on the Company of the COVID-19 pandemic. The funding provided important additional liquidity for the Company, which experiences significant monthly fluctuations in its working capital and needs a strong balance sheet to execute its backlog and compete for new project awards. The Company used the proceeds primarily for payroll and benefit costs. On August 3, 2020, the Company amended its 40.0 million credit facility Credit Agreement to, among other things, extend its maturity date from June 9, 2021 to June 30, 2022. At June 30, 2020, the Company was in compliance with all its financial covenants and had 30.2 million of availability under the Credit Agreement. BacklogThe Companys backlog at June 30, 2020 was 470.0 million, representing a decrease of 30.3 million from March 31, 2020, and an increase of 32.7 million from June 30, 2019. Backlog by operating segment was 439.4 million for the Shipyard Division and 30.5 million for the Fabrication Services Division. Backlog excludes customer options on contracts of approximately 203.0 million for the Companys Shipyard Division. See Non-GAAP Measures below for the Companys definition of Backlog. 