August 21, 2001
Conrad Industries, Inc.reaches agreement with Hidalgo
Conrad Industries, Inc. says it has entered into a "transition agreement" with William H. Hidalgo. It provides that he will remain employed by the company as president and CEO through August 26 and as special advisor to new CEO Kenneth G. ("Jerry") Myers, Jr. through October 31, 2001. Conrad and Hidalgo have agreed to discuss the possibility of a continuing relationship after that time.
In consideration of past services, assistance with an orderly transition, surrender of his stock options, execution of the agreement (including a one-year noncompetition covenant) and severance, Mr. Hidalgo will receive approximately 132,820 shares of common stock and, on February 28 2002, a severance payment of $195,290 and bonus of $622,500. Options to purchase 285,957 shares of common stock previously granted him have been cancelled. A $233,327 promissory note payable to the company has also been cancelled.
Conrad also announced that it granted CFO Cecil A. Hernandez, in consideration for past services and surrender of his stock options, approximately 44,261 shares of common stock and a cash bonus payable on February 28, 2002, of $248,000. Options to purchase 114,043 shares of common stock previously granted him have been cancelled. A $139,277 promissory note payable to the Company has also been cancelled. Hernandez will remain as Conrad's CFO and a director.
As a result of these transactions,Conrad expects to incur a one-time earnings charge of approximately $1.6 million, or $0.22 per share, in the third quarter. Conrad says the transactions will have a minimal effect on cash flow due to the income tax implications of the non-cash portion of the charge related to the issuance of the common stock.
As previously announced, Jerry Myers will become President and Chief Executive Officer on August 27, 2001. John P. Conrad, Co-Chairman of the Board, stated, ``Our strategy has consistently been to profitably grow the Company by taking advantage of appropriate internal expansion and acquisition opportunities. The board believed that adding someone with a diversified range of experience with a larger shipyard would assist management in identifying and taking advantage of these opportunities. We believe Jerry is uniquely qualified to lead Conrad to achieve these goals.''
Tug order for Blount Barker
Blount-Barker Shipbuilding signed a contract with Sea Wolf Marine of Bayonne, New Jersey to build a 2,400hp, 85 double chine, all welded twin screw tug.
Bristol Harbor Group has been contracted to modify the Blount classic 85 tug design to take advantage of CNC (computerized numeric controlled) cutting.
The tug will be powered by (2) CAT 3512 engines; 4:1 twin gears and two (2) 65kW generators will supply ship service power. The tug will be keel cooled and equipped with (2) 4-blade stainless steel propellers measuring 70-78 in diameter.
The tug will be used for marine towing along the inland and intracoastal waterways on the East Coast. Construction is scheduled to start immediately with the completion date set for April 2002.
Sydney commuters face loss of high speed ferries
Australia's Sydney Morning Herald reported earlier this week that the New South Wales Government has raised a new solution to accidents on the ferry service from the Sydney suburb of Manly to the downtown Central Business District. The government has raised the possibility of scrapping the high-speed commuter ferry within three years.
It has asked a taskforce to consider an overhaul of the peak-hour service as part of its deliberations to fix the city's famous harbour transport system.
The taskforce, to be headed by the Department of Transport chief, Michael Deegan, was formed in the wake of a report by the Waterways Commission which made more than 60 recommendations, including removing the SuperCats from the Manly run, says the paper.
The newspaper says civic leaders have warned that they would fight any move to cull the peak-hour service that is used by hundreds of commuters every day.
The paper quotes the Independent MP for Manly, David Barr, as saying he had been concerned that the failure of SuperCats on the run might be used as an excuse for killing the service.
Barr's predecessor, Dr Peter Macdonald, called for the Government to commission a new ferry designed specifically for the journey.
Macdonald helped fight moves in the 1980s to kill the ferry service.
"Successive governments have cocked up the process of choosing a vessel suitable for the service. They have just staggered from crisis to crisis since," the paper quotes him as saying.
"The whole situation is begging for the design and commissioning of vessels suitable for the run. Commuters should have an option and a peak-hour service makes eminent sense."