Conrad Reports Third Quarter Results

Conrad Industries, Inc. reported a net loss of $743,000 and loss per diluted share of $0.10 for the three months ended September 30, 2001 compared to net income of $626,000 and earnings per diluted share of $0.09 for the three months ended September 30, 2000. The Company had net income of $1.2 million and earnings per diluted share of $0.17 for the nine months ended September 30, 2001 compared to net income of $2.0 million and earnings per diluted share of $0.28 for the nine months ended September 30, 2000. Net income for the quarter and nine-months was affected by the previously announced non-recurring executive compensation expense of $2.6 million ($1.6 million after tax) or $0.23 per diluted share which resulted from agreements entered into by the Company with its former President and CEO and the current CFO during the third quarter. The transactions had a minimal effect on the Company's cash flow due to the income tax implications of the non-cash portion of the charge related to the issuance of common stock. Without the effect of this charge the Company would have reported net income of $903,000 and earnings per diluted share of $0.13 for the three months ended September 30, 2001 and net income of $2.8 million and earnings per diluted share of $0.40 for the nine months ended September 30, 2001. Revenues for the three months ended September 30, 2001 were $12.9 million compared to $8.9 million for the three months ended September 30, 2000. Revenues for the nine months ended September 30, 2001 were $37.0 million compared to $27.4 million for the nine months ended September 30, 2000. The Company's backlog was $10.0 million at September 30, 2001 as compared to $25.4 million at September 30, 2000 and $10.9 million at June 30, 2001. Gross profit was $2.8 million (21.8% of revenue) for the three months ended September 30, 2001 as compared to gross profit of $2.1 million (23.7% of revenue) for the three months ended September 30, 2000. Gross profit was $8.5 million (23.0% of revenue) for the nine months ended September 30, 2001 as compared to gross profit of $6.9 million (25.2% of revenue) for the nine months ended September 30, 2000. EBITDA was $1.1 million or 8.5% of revenue for the three months ended September 30, 2001 compared to $1.6 million or 18.0% of revenue for the three months ended September 30, 2000. EBITDA was $5.6 million or 15.1% of revenue for the nine months ended September 30, 2001 compared to $5.2 million or 18.9% of revenue for the nine months ended September 30, 2000. Kenneth G. "Jerry" Myers, President and CEO stated, "The Company's results from continuing operations for the quarter ended September 30, 2001 are net income of $903,000 and earnings per diluted share of $0.13 without the effect of the non-recurring executive compensation charge incurred in the quarter. This is very similar to the other two previous quarters of this year. "We have signed contracts for 3 projects totaling $1.5 million since September 30, 2001. Additionally, we are finalizing a contract for the purchase by the U.S. Army of two ST Tugs totaling $5.3 million. We have also received indication that they would like to contract for two additional ST Tugs in the future. The Company is currently in discussion and negotiations with various customers for vessel construction projects and we are cautiously optimistic that some of these projects will be added to our backlog soon."