Conrad reports increased backlog, lower earnings

Conrad's newest facility is its Deepwater South facility in Amelia, LA

MARCH 28, 2016 — Shipbuilder Conrad Industries, Inc. (OTC Pink: CNRD) today announced its fourth quarter and twelve months 2015 results and backlog.

For the quarter ended December 31, 2015, Conrad had net income of $3.4 million and earnings per diluted share of $0.63 compared to net income of $5.2 million and earnings per diluted share of $0.88 during the fourth quarter of 2014. The company had net income of $10.6 million and earnings per diluted share of $1.86 for the twelve months ended December 31, 2015 compared to net income of $22.8 million and earnings per diluted share of $3.84 for the twelve months ended December 31, 2014. Results for the quarter and year ended December 31, 2015 included research and development tax credits of $3.4 million and $5.9 million, respectively. Results for the quarter and year ended December 31, 2014 included research and development tax credits of $2.1 million.

Conrad’s backlog was $211.8 million at December 31, 2015, compared to $180.2 million at December 31, 2014.

Johnny Conrad, President and CEO said, “Our results for 2015 reflect the challenging operating environment, which negatively impacted both vessel construction and repair and conversion business segments. Notwithstanding current market conditions, we have been pursuing a disciplined program to invest in improving our shipyards’ capacities and efficiencies, including at our newest yard Deepwater South. We believe that this, along with our experienced management team and workforce, and our adherence to our core values have enabled us to secure new contracts. In addition to investing in our business, over the last three fiscal years, we have returned $39.0 million in cash to shareholders through dividends and stock repurchases. Our board will continue to monitor market conditions and work with management to successfully navigate this business cycle as we have in the past.”

Mr. Conrad continued, “Although we expect 2016 to be another challenging year, we are optimistic about the long-term prospects of our business. We have met these types of challenges in the past and are confident that we will continue to be responsive to changing market conditions, with our goal remaining to enhance shareholder value.”

Conrad Industries, Inc., established in 1948 and headquartered in Morgan City, LA, provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.