Conrad Industries, Inc. (Pink Sheets: CNRD) announced its fourth quarter and twelve months 2008 results.
For the quarter ended December 31, 2008, Conrad had net income of $7.1m and earnings per diluted share of $1.09 compared to net income of $6.3m and earnings per diluted share of $0.86 during the fourth quarter of 2007. The Company had net income of $23m and earnings per diluted share of $3.29 for the twelve months ended December 31, 2008 compared to net income of $19.2m and earnings per diluted share of $2.63 for the twelve months ended December 31, 2007. The diluted shares for the quarters ended December 31, 2008 and 2007 and for the twelve months ended December 31, 2008 and 2007, are 6.5 million, 7.3 million, 7.0 million and 7.3 million, respectively.
Conrad's backlog was $71.8m at December 31, 2008 compared to $80.9m at December 31, 2007. At December 31, 2008, 61.3% of our vessel construction backlog was from other commercial contracts and 38.7% was from government contracts. This compares to backlog at December 31, 2007 of 55.3% other commercial, 4.1% energy, and 40.6% government. The backlog at December 31, 2008 includes two contracts with a total value of $15.5m for the construction of two z-drive harbor tugs. During the first quarter of 2009, the contracts for the two vessels were terminated by agreement between us and the customer.
Johnny Conrad, President and CEO stated, "We would like to thank our customers, employees, and vendors for helping make 2008 our most successful year in the Company's 60 years in business. Throughout the 60 years the Company has been in existence we have endured many business cycles and we have seen numerous ups and downs in volume of business and profitability. Throughout these business and economic cycles we've had to evolve and change with the demand of our customers and expand our geographical area and product mix in order to survive and prosper. Our customers comprise a very diverse group that crosses a wide range of businesses including the energy sector, dredging, construction, towing and bunkering markets, as well as the US Army Corps of Engineers, US Coast Guard and various state and local governmental agencies."
Conrad continued, "We are optimistic about the long-term prospects of our business but we also take note of near-term risks. Current uncertain general economic conditions, tightened credit markets, substantially lower oil and gas prices, continued reduction in the Gulf of Mexico active rig count and fluctuating steel and machinery pricing lead to some uncertainty about our shorter-term demand and margins, and in the current economic climate, we expect demand, prices, margins and profits to decrease. We plan to continue to be responsive to changing market conditions and look for ways to continue to enhance shareholder value."
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.