Conrad reports third quarter results and backlog

“We are cautiously optimistic about the future of our vessel construction segment due to recent backlog additions for repeat builds in the ferry and barge markets for repeat customers,” said Johnny Conrad, CEO of Conrad Industries, Inc. (OTC Pink: CNRD), as the company announced its latest results. “Our management team continues to focus on effectively executing our current backlog, securing new contracts, increasing efficiencies and controlling costs so that we can be well-positioned for improved profitability as our markets strengthen.”

For the quarter ended September 30, 2023, the Morgan City, La., based shipbuilder had a net loss of $3.2 million and loss per diluted share of $0.63 compared to net loss of $5.3 million and loss per diluted share of $1.06 during the third quarter of 2022. Conrad had a net loss of $14.1 million and loss per diluted share of $2.82 for the nine months ended September 30, 2023 compared to net loss of $8.8 million and loss per diluted share of $1.75 for the nine months ended September 30, 2022.

During the first nine months of 2023, Conrad added $203.7 million of backlog to its new construction segment compared to $251.0 million added to backlog during the first nine months of 2022. Conrad’s backlog was $289.7 million at September 30, 2023, $244.1 million at December 31, 2022 and $260.5 million at September 30, 2022.

“The net loss for the first nine months of 2023 was primarily the result of three more complex projects for a single customer that were originally signed in 2020 and early 2021 during the COVID-19 pandemic and suffered from the subsequent supply chain and inflationary issues,” said Johnny Conrad. “Two of these projects are now complete, with the third nearing completion, and we are extremely proud of the quality of the vessels that our Conrad team constructed for our customer. Our repair and conversion segment achieved gross profit of $3.2 million for the nine months ended September 30, 2023, compared to a gross loss of $655,000 during the same period in 2022, demonstrating solid performance in a competitive environment. We are optimistic about future demand, based on current projects, bid activity and market outlook in our repair and conversion segment.”

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