MORGAN CITY, La., March 26, 2015 /PRNewswire/ -- Conrad Industries,
Inc. (OTC Pink: CNRD) today announced its fourth quarter and twelve
months 2014 results and backlog.
For the quarter ended December 31,
2014, Conrad had net income of $5.2
million and earnings per diluted share of $0.88 compared to net income of $10.1 million and earnings per diluted share of
$1.70 during the fourth quarter of
2013. The Company had net income of $22.8
million and earnings per diluted share of $3.84 for the twelve months ended December 31, 2014 compared to net income of
$28.6 million and earnings per
diluted share of $4.80 for the twelve
months ended December 31, 2013. The
Company's financial reports are available at
www.otcmarkets.com.
Conrad's backlog was $180.2
million at December 31, 2014,
compared to $152.9 million at
December 31, 2013.
Johnny Conrad, President and CEO
stated, "While our net income was lower in 2014 compared 2013, we
achieved the highest gross profit in our Company's history in the
vessel construction segment. The decline in earnings was
attributable to our repair and conversion segment, in which gross
profit decreased $11.8 million or
65.6%, compared to 2013. This decrease was primarily due to a
significant loss on a large conversion job, and a decrease in
demand and customer activity, which we believe is due to the
decline in crude oil prices; additionally in the second half 2013,
we had a large job which added significantly to repair and
conversion gross profit.
As of December 31, 2014, we had
cash of $68.6 million and no
long-term debt. During the past five years, we have made
approximately $44.8 million of
capital expenditures to add capacity and improve the efficiency of
our shipyards. Our Board has approved a $27.3 million capital expenditure program for
2015, which includes $16.7 million
for the continued development of the Conrad Deepwater South
yard. The additional improvements at Deepwater South will
continue to enhance our ability to build larger vessels, and we
believe these investments in our business will improve our
efficiencies and competitiveness."
Mr. Conrad continued, "Throughout the years, we have used our
cash generated from operations to make investments in our business
to continue to diversify our product mix, take advantage of
business opportunities and improve efficiencies. We believe these
investments have allowed us to remain competitive, meet changing
customer needs and navigate effectively through business cycles.
Additionally, we have returned cash to our shareholders through our
stock repurchase program and special dividends in each of the past
three years, and in 2015, we initiated a quarterly dividend."
Mr. Conrad also stated, "We have been actively pursuing
increased opportunities to produce different types of vessels for
new markets, and are encouraged by our recent success in obtaining
the contract to construct the LNG bunker barge. Some of these
vessels, including the LNG bunker barge, are larger, take longer to
start production, and take longer to complete than vessels we have
constructed in the past.
While we remain optimistic about the long-term prospects for our
business, we must also take note of near-term risks. We have
experienced a decline in demand for inland tank barges primarily
used to transport petroleum products produced from shale plays,
delays on orders for larger projects, and a soft repair market,
which we believe is due primarily to the decline in crude oil
prices. We currently expect these factors to negatively
impact our financial performance during 2015, compared to 2014.
We have met these types of challenges in the past, and we
continue to be confident that because of our record of success,
talented and dedicated employees, strong balance sheet, and
diversified customer base, we will continue to be responsive to
changing market conditions, with our goal remaining to continue to
enhance shareholder value."
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.
Cautionary statement: This press release contains
forward-looking statements, which are all statements other than
those of historical facts, and reflect our expectations as of the
date of this press release about future events.
Forward-looking statements are subject to risks and uncertainties,
including our reliance on cyclical industries, ability to perform
contracts at costs consistent with estimated costs utilized in
bidding, and ability to replenish our backlog and compete in
changing markets. These and other risks are discussed in more
detail in our Annual Report and subsequent reports available on
www.otcmarkets.com. Should one or more of these risks
materialize, achievement of anticipated results may differ
materially from those anticipated. We do not intend to update
these forward-looking statements, other than through our regular
quarterly and annual reports.
For Information Contact:
Cecil Hernandez (985) 702-0195
CAHernandez@ConradIndustries.com
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SOURCE Conrad Industries, Inc.