May 15, 2008
Conrad ups its backlog
Conrad Industries, Inc. (Pink Sheets: CNRD) today announced its first quarter 2008 results and net new business of $21.0 million including the signing of contracts for the construction of eight barges and a dry dock and cancellation of two barges of a four barge contract previously announced. This brings the current backlog to approximately $102.0 million compared to $96.4 million at March 31, 2008 and $81.7 million at March 31, 2007.
For the quarter ended March 31, 2008, Conrad achieved net income of $4.5 million and earnings per diluted share of $0.62 compared to net income of $3.3 million and earnings per diluted share of $0.45 during the first quarter of 2007 and net income of $6.3 million and earnings per diluted share of $0.86 during the fourth quarter of 2008.
Johnny Conrad, President and CEO stated, "We are very pleased with our first quarter results with continued strong performances from both new construction and repair and conversion segments.
"Current demand for our products and services continues to be good," said Mr. Conrad, "but we are experiencing pricing pressure and increase in cost and the delay and cancellation of projects from potential customers primarily due to a very volatile steel market. Steel prices have increased over 80% since the end of 2007 and we anticipate additional increases. Rising steel and machinery pricing and availability constraints lead to some uncertainty about our shorter-term demand and margins but we continue to be optimistic about the long-term prospects of our business."
The addition to Conrad's backlog included contracts signed for four 237 ft x 54 ft x12 ft LPG tank barge hulls, three 140 ft x 40 ft x 9 ft deck barges, one 290 ft x 62 ft x18 ft 6 in 35,000 bbl. double skin barge and a 100 ft x70 ft x 7 ft dry dock.
However, a a previously signed contract for four LPG tank barges was reduced to two.
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.