Gulf Island Fabrication, Inc (GIFI) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.54 million, or $ 0.04 a share in the quarter, against a net loss of $12.14 million, or $0.84 a share in the last year period. Revenue during the quarter dropped 3.18 percent to $65.38 million from $67.53 million in the previous year period. Gross margin for the quarter period stood at positive 8.04 percent as compared to a negative 11.61 percent for the previous year period. Operating margin for the quarter period stood at positive 0.26 percent as compared to a negative 27 percent for the previous year period.
Operating income for the quarter was $0.17 million, compared with an operating loss of $18.24 million in the previous year period.
“Our subsidiary, Gulf Island LLC, received a letter of intent for the fabrication of four modules associated with a U.S. ethane cracker project. We are excited to be a part of the petrochemical plant expansion projects as we continue to explore markets outside the Oil & Gas sector. This project will bring much needed job opportunities to our Louisiana fabrication division.” stated Kirk Meche President & Chief executive officer. Revenue and man hours have been incorporated in the backlog numbers contained within.
Operating cash flow improves marginally
Gulf Island Fabrication, Inc has generated cash of $19.27 million from operating activities during the nine month period, up 3.29 percent or $0.61 million, when compared with the last year period. Cash flow from investing activities was $1.99 million for the nine month period as against cash outgo of $5.04 million in the last year period.
The company has spent $0.44 million cash to carry out financing activities during the nine month period as against cash outgo of $4.40 million in the last year period.
Cash and cash equivalents stood at $55.64 million as on Sep. 30, 2016, up 22.83 percent or $10.34 million from $45.30 million on Sep. 30, 2015.
Working capital declines
Gulf Island Fabrication, Inc has witnessed a decline in the working capital over the last year. It stood at $79.77 million as at Sep. 30, 2016, down 15.19 percent or $14.29 million from $94.06 million on Sep. 30, 2015. Current ratio was at 2.83 as on Sep. 30, 2016, down from 3.83 on Sep. 30, 2015.
Days sales outstanding went down to 26 days for the quarter compared with 50 days for the same period last year.
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