Gulf Island Announces Review of Alternative Strategies
May 06 2019 - 4:30PM
Gulf Island Fabrication, Inc. (“Gulf Island” or the “Company”)
(NASDAQ: GIFI), announced today that its Board of Directors has
established a special committee (the “Special Committee”) to
initiate a process to explore alternative strategies for the
Company focusing on enhancing shareholder value.
Jack Laborde, Chairman of the Board of Gulf
Island, stated, “We continue with our efforts to strengthen our
liquidity, improve the utilization of our assets and strategically
reposition the Company for growth and profitability. Gulf
Island currently has a healthy liquidity position with increasing
activity across our various business segments and end markets.
While we remain confident in our strategic plan and the growth
opportunities available to the Company, the Board has determined
that it is in the best interest of our shareholders to conduct a
thorough evaluation of all options reasonably available to the
Company to enhance shareholder value.”
The Company has retained Johnson Rice &
Company L.L.C., as financial advisor, and Jones Walker LLP, as
legal counsel, to assist the Special Committee in connection with
its strategic alternatives review. The Company has not set a
timetable for the conclusion of the Special Committee’s review of
alternative strategies and does not intend to publicly discuss or
disclose further developments of the review unless and until its
Board of Directors has approved a specific course of action or the
Company has otherwise determined that further disclosure is
appropriate. There can be no assurance that this review will result
in any transaction or other strategic change or outcome for the
Company.
About Gulf Island
Gulf Island is a leading fabricator of complex
steel structures, modules and marine vessels used in energy
extraction and production, petrochemical and industrial facilities,
power generation, alternative energy and shipping and marine
transportation operations. The Company also provides project
management, hookup, commissioning, repair, maintenance and civil
construction services. The Company operates and manages its
business through three operating divisions: Fabrication, Shipyard
and Services, with its corporate headquarters located in Houston,
Texas and fabrication facilities located in Houma, Jennings and
Lake Charles, Louisiana. For more information, please visit our
website at www.gulfisland.com.
Company Information |
|
|
Kirk J. Meche |
|
Westley S. Stockton |
Chief Executive Officer |
|
Chief Financial Officer |
713-714-6100 |
|
713-714-6100 |
Cautionary Statement
This Release contains forward-looking statements
in which we discuss our 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.
We caution 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 our actual results to differ materially from those
anticipated in the forward-looking statements include the cyclical
nature of the oil and gas industry, competition, consolidation of
our customers, timing and award of new contracts, reliance on
significant customers, financial ability and credit worthiness of
our customers, nature of our contract terms, competitive pricing
and cost overruns on our 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, ability to raise additional
capital, ability to amend or obtain new debt financing or credit
facilities on favorable terms, ability to remain in compliance with
our covenants contained in our Credit Agreement, ability to
generate sufficient cash flow, ability to sell certain assets,
customer or subcontractor disputes, ability to resolve the dispute
with a customer relating to the purported termination of contracts
to build two MPSVs, operating dangers and limits on insurance
coverage, barriers to entry into new lines of business, 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, shutdowns of the U.S. government, systems and
information technology interruption or failure and data security
breaches, performance of partners in our joint ventures and other
strategic alliances, progress of the SeaOne Project, and other
factors described in Item 1A in our Annual Report on Form 10-K for
the Year Ended December 31, 2018, as updated by subsequent filings
with the U.S. Securities and Exchange Commission.
Investors are cautioned that many of the
assumptions upon which our forward-looking statements are based are
likely to change after the forward-looking statements are made,
which we cannot control. Further, we may make changes to our
business plans that could affect our results. We caution investors
that we do not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in our
assumptions, changes in business plans, actual experiences or other
changes, and we undertake no obligation to update any
forward-looking statements.
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