Conrad reports loss making year and quarter

Conrad's 2017 and 2016 operating results were affected by losses of $11.9 million and $13.2 million, respectively on LNG bunker barge project

MARCH 29, 2018 — Despite a one-time tax benefit of $1.3 million, Morgan City, LA, headquartered shipbuilder Conrad Industries, Inc. (OTC Pink: CNRD) reported continuing net losses in its fourth quarter and 12 months 2017 results.

For the quarter ended December 31, 2017, Conrad had net loss of $3.4 million and loss per diluted share of $0.67 compared to net loss of $836,000 and loss per diluted share of $0.15 during the fourth quarter of 2016. The company had net loss of $2.1 million and loss per diluted share of $0.42 for the 12 months ended December 31, 2017 compared to net loss of $1.7 million and loss per diluted share of $0.33 for the twelve months ended December 31, 2016.

Results for the quarter and year ended December 31, 2017 reflect a $1.3 million one-time income tax benefit, primarily attributable to the Tax Cuts and Jobs Act which resulted in a one-time revaluation of certain tax-related assets and liabilities to reflect their value at a lower corporate tax rate.

New business added during the first quarter of 2018 included the signing of contracts totaling $35.2 million which brings our estimated current backlog to approximately $107.0 million, compared to $111.3 million at December 31, 2017, $216.5 million at December 31, 2016, and $211.8 million at December 31, 2015.

New contracts added during the first quarter of 2018 include four 30,000 bbl tank barges, two LPG tank barges, four spud barges, three 24,000 bbl adiponitrile barges and two anchor barges.

Losses on LNG Bunker Barge
Johnny Conrad, President and CEO stated, “Our 2017 and 2016 operating results were affected by losses of $11.9 million and $13.2 million, respectively, on the LNG bunker barge. Despite the losses we have incurred on the construction of the LNG barge, we believe that we have developed the resources to establish ourselves as a leader in LNG marine-related construction in North America. During 2017 our new construction segment continued to be adversely affected by a soft market for energy transportation, increased pricing pressure, and low demand for large barge project orders, while our repair and conversion segment continued to be impacted by low oil prices and depressed Gulf of Mexico activity. These factors had a negative impact on our operating results in 2017, and they may continue to impact our operations during 2018.”

Mr. Conrad concluded, “Although we expect 2018 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 we remain confident that with our talented and dedicated employees, strong balance sheet and diversified customer base we can effectively respond to changing market conditions.”

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