COVID-19 Pandemic Hits Conrad Industries’ Bottom Line
Conrad Industries reported a net loss of $4 million or 80 cents per share for 2020, compared with net income of $86,000, or 2 cents per share, for 2019.
However, in the March 31 report, the company also disclosed a $183.7 million backlog as of December 31, 2020. That’s up from a backlog of $79.2 million one year earlier, and a $127.7 million backlog at the end of 2018.
“We entered 2020 with profitable third and fourth quarters in 2019, improved performance on contracts, better margins in new construction, a solid infrastructure and oil transportation market and high hopes for continued business strengthening in 2020,” said Johnny Conrad, chairman and CEO. “However, the COVID-19 outbreak had a substantial adverse impact on our business. During the second quarter and remainder of 2020, our critical focus shifted primarily to protecting the health and safety of our workforce, managing cash and reducing costs, completing and delivering jobs in process and working with our customers and potential customers to add backlog.
“Our loss was primarily related to the decrease in production volume of our business due to the pandemic. During 2020, we received a loan under the Paycheck Protection Program, which assisted us in retaining more employees than we otherwise would have been able to retain, paying allowed expenses and strengthening our financial position, which enabled us to obtain additional backlog. We believe we are eligible, and have applied for, forgiveness of the entire balance of the loan; however, no assurances can be provided that all or part of the loan will be forgiven. We did not include the loan forgiveness as income during 2020. If all or part of the loan had been forgiven in 2020, our net income would have been increased by the amount forgiven. If forgiveness is confirmed in 2021, our net income in 2021 will be increased by the amount forgiven.
“We are optimistic about the long-term prospects of our business; we also take note of near-term risks,” he continued. “While the vaccine rollout and improved COVID-19 treatments provide a basis for optimism as 2021 progresses, and we ended the year with our largest backlog in four years, some uncertainty remains. We believe 2021 will be another challenging year, due to the continuing impacts of the pandemic, current high steel prices and constrained availability and a competitive shipyard environment.”
Conrad Industries Inc., established in 1948 and headquartered in Morgan City, La., designs, builds and overhauls tugs, 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.
