Conrad reports lower first quarter earnings

Conrad's Morgan City, LA, shipyard Conrad's Morgan City, LA, shipyard

MAY 16, 2017 — Morgan City, LA, headquartered shipbuilder Conrad Industries, Inc. (OTC Pink Sheets: CNRD) reported results for the quarter ended March 31, 2017 that included net income of $119,000 and earnings per diluted share of $0.02 compared to net income of $2.6 million and earnings per diluted share of $0.49 during the first quarter of 2016.

Results for the prior year first quarter included research and development tax credits of $579,000. No research and development tax credits are included in the results for the quarter ended March 31, 2017.

Conrad's backlog was $183.0 million at March 31, 2017 compared to $216.5 million at December 31, 2016 and $189.9 million at March 31, 2016.

Johnny Conrad, President and CEO stated, "Our results reflect a continued difficult operating environment and we expect 2017 to be another challenging year. Although our bid activity has been good and we see some opportunities, our new construction segment was adversely affected by a soft market for energy transportation, increased pricing pressure, and customer delays on large project orders. Our repair and conversion segment continues to be impacted by low crude oil prices and there continues to be little visibility due to the short-term nature of this work."

Mr. Conrad continued, "In addition, our first quarter operating results were affected by losses on the LNG barge. Despite the losses we have incurred on the construction of the LNG barge, the first vessel of its kind ever constructed in North America, we believe that we have developed the resources to establish ourselves as a leader in LNG marine-related construction in North America. Management continues to focus on effectively executing our backlog, adding new contracts, improving efficiencies, and controlling costs."

Conrad Industries, Inc. provides both ship repair and new construction services at its five shipyards located in southern Louisiana and Texas.

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