Conrad Industries Reports $17.4 Million Net Loss For 2022, But Increased Backlog

Conrad Industries Inc. reported that it had a net loss of $17.4 million for the year of 2022, for a loss of $3.47 per diluted share. In 2021, the company had net income of $6.5 million, although that figure included the company’s Paycheck Protection Program loan being forgiven and its qualification for the Employee Retention Credit that year.

“Our results for 2022 reflect a continued challenging operating environment, with losses primarily related to new construction gross losses from jobs on which actual costs varied from original estimates due to higher labor hours, higher labor costs, higher material costs and other inflationary cost increases,” said Johnny Conrad, chairman and CEO. “Many of these jobs were booked in mid-to-late 2020 and early 2021 and were completed or neared completion in 2022.

“Although we face substantial uncertainties in our markets, we believe we are well-positioned to take advantage of opportunities as market fundamentals improve, due to our shipyard capacity, our investments in improving our shipyards’ capabilities and efficiencies and our experienced team,” he continued. “Bid activity in early 2023 has been strong, and there is increased government funding available for infrastructure and military projects. We have actively pursued government contracts in an effort to further diversify our new-construction portfolio. We believe some delayed customer orders will move forward if steel prices stabilize or our customers’ business opportunities or fleet replacement needs require the vessels. We remain optimistic about opportunities in our repair and conversions segment.

The company reported that its backlog as of December 31, 2022, was $244.1 million. At the end of 2021, it was $148.5 million, and at the end of 2020 it was $183.7 million.

Headquartered in Morgan City, La., Conrad Industries provides both repair and new-construction services at its five shipyards in Louisiana and Texas.