Morgan City, La., headquartered shipbuilder Conrad Industries, Inc. (OTC Pink Sheets: CNRD.PK) announced today its third quarter and nine months 2011 results and the signing of new contracts, sale of stock barges, and the cancellation of projects during the quarter.
For the quarter ended September 30, 2011, Conrad had net income of $3.5 million and earnings per diluted share of $0.54 compared to net income of $1.6 million and earnings per diluted share of $0.26 during the third quarter of 2010. The company had net income of $12.4 million and earnings per diluted share of $1.93 for the nine months ended September 30, 2011 compared to net income of $7.0 million and earnings per diluted share of $1.09 for the nine months ended September 30, 2010. The diluted shares for the quarters and nine months ended September 30, 2011 and September 30, 2010 are 6.4 million and 6.5 million, respectively.
During the third quarter new contracts added include a 250 ft x 72 ft x 12 ft crane barge, a 265 ft x 54 ft x 13 ft LPG tank barge, and five 297 ft x 54 ft x 13 ft 30,000 bbl. double skin light oil tank barges.
in addition, Conrad also sold three stock 297 ft x 54 ft x 12 ft double skin tank barges with 30,000 gross barrel capacity.
Conrad reports that a customer defaulted on contracts that included two 192 ft x 42 ft x10 ft 7,500 bbl. double skin tank barges and two 75 ft x 30 ft x 10 ft towboats. These were at the beginning stages of construction and thus were canceled. The default also included two 192 ft x 42 ft x10 ft 7,500 bbl. double skin tank barges and two 200 ft x 35 ft x 12 ft 6 in 10,000 bbl. tank barges that are under construction and for which the company interested customers.
“As a result of contract provisions that allow us to recover from the defaulting customer the difference between the contract price and what we sell the barge for, progress payments already made by the defaulting customer, and favorable market conditions for these vessels, we do not expect any material adverse financial consequences due to the default,” notes Conrad.
Backlog at September 30, 2011 was $87.7 million compared to $86.1 million at September 30, 2010, $89.5 million at December 31, 2010, and $88.7 million at June 30, 2011.
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.
November 14, 2011