Conrad Industries reports a profitable third quarter

Morgan City, La.-headquartered shipbuilder Conrad Industries, Inc. (OTC Pink: CNRD) has reported its third quarter and nine months ended September 30, 2024 financial results and backlog at September 30, 2024.

For the quarter ended September 30, 2024, Conrad had net income of $7.5 million and earnings per diluted share of $1.49 compared to net loss of $3.2 million and loss per diluted share of $0.63 during the third quarter of 2023. The Company had net income of $11.2 million and earnings per diluted share of $2.24 for the nine months ended September 30, 2024 compared to net loss of $14.1 million and loss per diluted share of $2.82 for the nine months ended September 30, 2023.

“Our operating results for the nine months ended September 30, 2024 have improved despite a continued challenging
operating environment, including challenges associated with continued high steel prices, inflationary price increases
in other materials and equipment, supply chain disruptions, a tight labor market resulting in difficulties in retaining
and hiring direct labor and high interest rates,” the company says in its full filing. “In February 2024, we significantly increased our hourly labor rate, which we believe has helped us retain and hire direct labor, but has increased our costs. We continue to experience pricing pressure in both our new construction and repair segments. Economic uncertainties have been heightened by the wars and violence in Ukraine and Israel and surrounding areas. These factors negatively impacted our results for 2023 and may continue to negatively impact our financial performance through the remainder 2024

Conrad says that the increase in net income in the third quarter and first nine months of 2024 is primarily due to improved gross profits in its new construction segment and collection of a judgment in a lawsuit. The receipt of the judgment amount is reflected in our financial results for the third quarter of 2024, and increased other Income by $8.04 million and net income by approximately $5.8 million.

In its full filing the company says, “in February 2023, we were awarded a $7.49 million judgment in a suit we filed in 2019 against a customer that defaulted on contracts to construct two vessels. The judgment was appealed to the United States Court of Appeals for the Fifth Circuit and on February 23, 2024, the judgment was affirmed. We have acknowledged that the amended final judgment in the amount of $8.04 million, including interests and costs, was received and satisfied in full. Receipt of the judgment amount is reflected in our financial statements as of, and for the quarter and nine months ended, September 30, 2024.”

During the first nine months of 2024, Conrad signed $218.4 million in contracts in its new construction segment compared to $203.7 million added to backlog during the first nine months of 2023. Conrad’s backlog was $282.2 million at September 30, 2024, $253.8 million at December 31, 2023 and $289.7 million at September 30, 2023. Since the end of the third quarter, the company has signed an additional $27.7 million in contracts.

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