Conrad Industries Inc (CNRD)

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$CNRD Conrad Industries Announces Third Quarter 2021 Results and Backlog
Press Release | 11/15/2021
Conrad Industries Announces Third Quarter 2021 Results and Backlog
PR Newswire

MORGAN CITY, La., Nov. 15, 2021

MORGAN CITY, La., Nov. 15, 2021 /PRNewswire/ -- Conrad Industries, Inc. (OTC Pink: CNRD) announced today its third quarter and nine months 2021 financial results and backlog at September 30, 2021.

For the quarter ended September 30, 2021, Conrad had net loss of $578,000 and loss per diluted share of $0.12 compared to net loss of $3.6 million and loss per diluted share of $0.72 during the third quarter of 2020. The Company had net income of $8.7 million and earnings per diluted share of $1.74 for the nine months ended September 30, 2021 compared to net loss of $2.7 million and loss per diluted share of $0.54 for the nine months ended September 30, 2020. The increase in net income in the first nine months is primarily due to our Paycheck Protection loan being forgiven in the second quarter of 2021 and our qualification for the Employee Retention Credit for the first three quarters of 2021. The Company's financial reports are available at www.otcmarkets.com.

During the first nine months of 2021, Conrad added $80.3 million of backlog to its new construction segment compared to $171.7 million added to backlog during the first nine months of 2020. Conrad's backlog was $163.5 million at September 30, 2021, $183.7 million at December 31, 2020 and $160.4 million at September 30, 2020.

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.

For Information Contact:
Cecil Hernandez [phone]
[e-mail]

Cision View original content:https://www.prnewswire.com/news-releases/conrad-industries-announces-third-quarter-2021-results-and-backlog-301424660.html

[AskMuncher]

$CNRD Conrad Industries Announces Second Quarter 2020 Results and Backlog
Press Release | 08/17/2020
Conrad Industries Announces Second Quarter 2020 Results and Backlog
PR Newswire

MORGAN CITY, La., Aug. 14, 2020

MORGAN CITY, La., Aug. 14, 2020 /PRNewswire/ -- Conrad Industries, Inc. (OTC Pink: CNRD) announced today its second quarter and six months 2020 financial results and backlog at June 30, 2020.

For the quarter ended June 30, 2020, Conrad had net income of $482,000 and earnings per diluted share of $0.10 compared to net loss of $2.2 million and loss per diluted share of $0.44 during the second quarter of 2019. The Company had net income of $896,000 and earnings per diluted share of $0.18 for the six months ended June 30, 2020 compared to net loss of $2.5 million and loss per diluted share of $.50 for the six months ended June 30, 2019. The Company's financial reports are available at www.otcmarkets.com.

During the first six months of 2020, Conrad added $119.7 million of backlog to its new construction segment compared to $73.5 million added to backlog during the first six months of 2019. Conrad's backlog was $133.0 million at June 30, 2020, $79.2 million at December 31, 2019 and $116.8 million at June 30, 2019. Conrad signed the biggest contract in its history in the second quarter of 2020. Since the end of the second quarter the Company has signed an additional $14.1 million in contracts.

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.

[fwentz]

$11.00 price seems like a good buy here. Price is 50% of book value. Cash per share is $7.00. Backlog is up each quarter YoY past 4 quarters. Good cash gained from operations TTM.

[fwentz]

CNRD filed a claim to BP for $22.6 million in 2012 and 2013. Recently BP settle some of the claims against it. I wonder if CNRD's claim was one of the claims that was settled.

[fwentz]

Great analysis!

[31set]

3 big negatives were contained in CNRD's 3rd quarter earnings report released after the market closed on 11-13-14:

(1) No $2.00 special dividend declared for December 2014 as in 2012 & 2013.

(2) Earnings came in at $0.74 per share vs $1.09 per share in Q3 of 2013. Earnings were $1.14 per share in Q2 of 2014. Conrad had been earning over $1.00 per share consistently in recent quarters until now.

(3) The order backlog dropped to $135.0 million on 9-30-14 vs. $173.0 million on 6-30-14 and $152.3 million on 9-30-13.

Of these 3 negatives, it was the last one that was the most alarming and caused me to sell out my entire position in CNRD. In each of the previous 4 quarters CNRD had revenue of roughly $80 million. The $38.0 million drop in the backlog between the end of Q2 & Q3 this year suggests new orders were only about 1/2 of normal in Q3, assuming revenues were about normal during the quarter.

Since CNRD did not include figures for either revenues or new orders in their Q3 earnings release, it's hard to know exactly what happened. Certainly it is possible new orders were lower during the quarter just due to ordinary variations in order flow for expensive products like the various ships and barges CNRD produces. What I did not expect and what was really alarming to me, though, was the timing of this event. CNRD produces various ships for the offshore oil & gas industry. Oil prices peaked in Q2 of 2014, but were still pretty high and only lost ground slowly during nearly all of Q3. If customers were already becoming concerned in Q3 about making commitments to capital expenditures, the plunge in oil prices in Q4 will almost certainly result in slashed capital budgets and a screeching halt to order flow from CNRD's most important customers.

CNRD dropped from a closing price of $39.90 on 11-13-14, the day Q3 earnings were reported after the close, to as low as $31.95 the next day when it managed to close at $34.25. The closing price today, 12-5-14, is $34.95. That's not far below where CNRD has been trading nearly all of 2014 before oil prices plunged and CNRD reported the significant drop in order backlog. Think of CNRD as at least partially an oil services company and then look at the charts for other companies in the oil services industry. There may be a reasonable explanation for what is going on at CNRD, but with only the sketchy information contained in the Q3 earnings report to go on, I believe there is justifiable cause for alarm at CNRD's current stock price.

CNRD is a great well-managed company with virtually no debt, so I'm confident it will survive and eventually prosper again, but I will not be re-establishing a position in CNRD until oil prices stabilize for a significant period of time. Capital intensive industries tend to have long cycles and it may be a long time before the outlook improves. Buy CNRD again when you hear that home prices are depressed in Williston, ND due to the collapse of the oil patch. Oil will come back. It always does, but I'm not expecting any V-shaped bottom unless OPEC really gets its act together.

[31set]

econ1: Conrad Industries closing price yesterday was $37.00. I do hold CNRD now. I acquired it a couple of years ago around $20.00. Conrad operates 4 shipyards in Texas and Louisiana. Here is how it currently stacks up against my criteria:

(1) Small Cap - Market cap is about $220M.
(2) Low Debt - No long term debt, 2.62 quick ratio, 1,930.2 X interest coverage.
(3) Sustainable Products - Until recently, I was quite complacent on this factor thinking that shipbuilding should be quite a stable, if somewhat slow growth industry. However, I believe Conrad does a significant amount of work for the offshore oil and gas industry. The recent notable oil price slide and growing fears of an oil glut are a real concern. Drilling for oil under the ocean has to be a very expensive way to find it and so I am particularly concerned about off-shore drilling both in the short term and long term. A sustained downturn in oil prices may be a sign to get out of CNRD for a while. CNRD's order backlog number bears watching for signs of deterioration. So far no problems, but....
(4) Little Government Influence - Conrad sells some product to governments, however, I don't believe it is overly dependent on government contracts. Nor do I think that shipbuilding is a particularly over-regulated industry or an industry that is a political target relative to other industries.
(5) Low or Reasonable PE and PEG ratios - The PE is 7.39. The 3, 4 and 5 year historical average earnings growth rate is 25.39% for a PEG of 0.29. I'd consider these numbers very favorable.
(6) Decent & Growing Dividends - Officially the company pays no dividend. However, in both 2012 and 2013 the company paid a special dividend of $2.00 per share each December. (5.40% at the current price of $37.00 per share. You could collect 10.80% in the next 14 months if CNRD continues this practice.) I'm hoping that since the company has had a good year so far in 2014, that this will recur. No guarantee at all on this, of course.
(7) Positive Recent Information - In August 2014 Bristol Harbor Group announced it is designing a 3,000 cubic meter LNG barge to be built by Conrad. In September, GTT announced it is designing LNG membrane tanks to be built by Conrad.

Summary: Low oil prices are a genuine concern for Conrad's shipbuilding business. However, it also looks like Conrad is actively preparing to get into the LNG transport barge business, which is a growing business. Last year CNRD announced 3rd Q earnings for 2013 and the special $2.00 dividend on 11-13-13. I expect they will make an announcement sometime around 11-12-14 this year.

[RowingDude]

Good afternoon Conrad Industries, Inc. (CNRD) looking for a strong hour of power!

[mooremi9]

Conrad Announces First Quarter 2011 Results and Discusses Impact of Rising Water in Mississippi and Atchafalaya Rivers
Date : 05/11/2011 @ 6:00PM
Source : PR Newswire
Stock : Conrad Inds (CNRD)
Quote : 13.0  -0.35 (-2.62%) @ 4:19PM

Conrad Announces First Quarter 2011 Results and Discusses Impact of Rising Water in Mississippi and Atchafalaya Rivers
Conrad Inds (USOTC:CNRD)
Intraday Stock Chart
Today : Wednesday 11 May 2011


Conrad Industries, Inc. (OTC Pink Sheets: CNRD) announced today its first quarter 2011 results and backlog, and discussed challenges presented by the rising waters of the Mississippi River and the Atchafalaya River.

For the quarter ended March 31, 2011, Conrad achieved net income of $3.7 million and earnings per diluted share of $0.58 compared to net income of $1.7 million and earnings per diluted share of $0.27 during the first quarter of 2010.  The Company's financial reports are available at www.otcmarkets.com.

Conrad's backlog was $112.3 million at March 31, 2011 compared to $89.5 million at December 31, 2010 and $48.9 million at March 31, 2010.

Johnny Conrad, President and CEO stated, "Our vessel construction segment continued the improvements that began during the third and fourth quarters of 2010 with the increases in our backlog. The repair segment was negatively affected by the slow-down in activity in the Gulf of Mexico related to the Deepwater Horizon incident and the resulting continued uncertainties surrounding the issuance of drilling permits by the Department of the Interior and new regulations related to drilling operations.  

"Although we continue to be optimistic about the long-term prospects of our business and market conditions are much improved compared to last year, there still remains some uncertainty about our shorter-term demand and margins, particularly in our repair segment. The increase in our backlog gives us more confidence in our vessel construction segment but the continued uncertainty in Gulf of Mexico oil and gas activity hampers visibility in our repair segment."

Conrad further commented, "Adding to our short-term uncertainty is the potential adverse impact on our business of the rising water levels along the Mississippi and Atchafalaya Rivers. Three of our four shipyards are located in South Louisiana, one along the Atchafalaya River in Morgan City and the other two in Amelia along the Intracoastal Waterway. We have temporarily discontinued operations at our Morgan City shipyard which is located on the Atchafalaya River outside the protection of the levee system and have taken steps to safeguard our assets and to mitigate the effects of this situation on our operations. Vessels under construction and key pieces of our equipment have been moved to our other shipyards. Production personnel, as well as support and administrative staff, have been relocated to our other facilities in the area.  

"The Atchafalaya River at Morgan City is forecasted to continuously rise to crest on May 25, 2011 and then slowly recede. Our two yards along the Intracoastal Waterway may also be impacted by rising water levels but at this time are operational and have taken on the work moved from Morgan City.  Although we do not anticipate any significant flooding at the yards, there may be limits on the ability of vessels to access the yards.  We cannot predict with any certainty the potential impact of the rising waters on our operations but we believe that our existing plan and efforts will produce the best results under the circumstances for our facilities, customers, vendors, employees and shareholders."  

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its four shipyards located in southern Louisiana and Texas.

This press release contains forward-looking statements, identifiable through the use of words such as "believe," "expect," "plan," "estimate" and similar expressions.  Forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Actual results may differ materially due to a variety of factors, including the level of activity by oil and gas companies in the Gulf of Mexico, the impact of the rising waters of the Mississippi and Atchafalaya Rivers, steel prices and availability, general economic conditions and other risks detailed in our 2010 Annual Report available at www.otcmarkets.com.

For Information Contact: Cecil Hernandez (985) [e-mail]

SOURCE Conrad Industries, Inc.

More CNRD MessagesLatest Conrad Inds CNRD Messages
Conrad Industries Announces 2010 Results and New Business
mooremi9 • Wed Mar 30, 2011 8:27 AM
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[mooremi9]

Conrad Industries Announces 2010 Results and New Business

Conrad Inds (USOTC:CNRD)
Intraday Stock Chart
Today : Wednesday 30 March 2011
Conrad Industries, Inc. (Pink Sheets: CNRD) today announced its fourth quarter and twelve months 2010 results and the addition of new business during the first quarter totaling $75.2 million.

For the quarter ended December 31, 2010, Conrad had net income of $3.3 million and earnings per diluted share of $0.51 compared to net income of $2.8 million and earnings per diluted share of $0.43 during the fourth quarter of 2009. The Company had net income of $10.3 million and earnings per diluted share of $1.60 for the twelve months ended December 31, 2010 compared to net income of $12.8 million and earnings per diluted share of $1.99 for the twelve months ended December 31, 2009. The diluted shares for the quarter and twelve months ended December 31, 2010 are 6.4 million and 6.5 million for the quarter and twelve months ended December 31, 2009. The Company's financial reports are available at www.otcmarkets.com.

New business added includes the signing of new contracts and sales of stock barges which brings estimated current backlog to approximately $113.0 million compared to $89.5 million at December 31, 2010, $48.9 million at March 31, 2010, and $38.3 million at December 31, 2009.

New contracts added include four 245'x 48'x 12'LPG tank barges, two 222'x 54'x 12' LPG tank barges, two 192'x 42'x10' 7500 bbl. double skin tank barges, five 260'x 52'x 12' hopper barges, and various other docking and deck barges.

Additionally we signed contracts for three 100'x 30'x 10' push boats and two 75'x 30'x 10' towboats.

We also sold all of the stock barges in progress at December 31, 2010 which include three 297'6"x 54'x 12' 30,000 bbl. tank barges, two 200'x 35'x 12'6" 10,000 bbl. tank barges and two 120'x 30'x 12' deck barges.

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls tugboats, ferries, liftboats, barges, offshore supply vessels and other steel and aluminum products for both the commercial and government markets. The company provides both repair and new construction services at its four shipyards located in southern Louisiana and Texas.

For Information Contact: Cecil Hernandez (985) [e-mail]

SOURCE Conrad Industries, Inc.