Conrad Industries Reports Losses For Fourth Quarter, Full Year Of 2017
Despite reporting losses for both 2017 and the fourth quarter of the year, Conrad Industries Inc. said new orders in the first quarter of 2018 positioned it well for long-term business, although admitting that 2018 could also be “challenging.”
The company reported a 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 12 months ended December 31, 2016.
For the quarter ending December 31, Conrad reported a net loss of $3.4 million and loss per diluted share of $0.67, compared to a net loss of $836,000 and loss per diluted share of $0.15 during the fourth quarter of 2016. Conrad announced its fourth quarter and 12 months 2017 results and backlog on March 28.
Johnny Conrad, president and CEO, said, “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.”
The company said that results for the quarter and year reflect a $1.3 million income tax benefit attributable to the Tax Cuts and Jobs Act that 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 includes the signing of contracts totaling $35.2 million which brought Conrad’s estimated current backlog to about $107 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.
The new contracts include four 30,000-barrel tank barges, two liquefied petroleum gas tank barges, four spud barges, three 24,000-barrel Adiponitrile barges and two anchor barges.
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., established in 1948 and headquartered in Morgan City, La., 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 five shipyards located in southern Louisiana and Texas.
