Conrad Industries Reports Improved Earnings, Backlog For First Quarter Of 2021
Conrad Industries Inc., Morgan City, La., announced May 14 that its first-quarter net income totaled $705,000, or 14 cents per diluted share, up from $414,000 or 8 cents per diluted share for the first quarter a year ago.
The company also reported a backlog of $193.4 million as of March 31, up from $183.7 million on December 31, 2020, and $36.6 million on March 31, 2020.
The company recently held a keel-laying ceremony for a 6,500-cubic-yard hopper dredge it is building for Great Lakes Dredge & Dock Company, expected to deliver in the first half of 2023 (WJ, May 4). The project is the largest in Conrad’s history.
In its quarterly, the company said its net income was boosted as a result of the company qualifying for the Employee Retention Credit, part of the Consolidations Appropriations Act (CAA). That act significantly expanded the usability of the employee retention tax credit by allowing employers with Paycheck Protection Program loans to take advantage of the credit. Further, the CAA increased the amount of the tax credit available.
“Our results for the first quarter of 2021 and for the year 2020 reflect a continued challenging operating environment, made more challenging by the COVID-19 pandemic,” the quarterly report stated. “In new construction, we continue to experience a soft market for energy transportation projects and projects related to the offshore oil and gas industry and low demand for large barge project orders; however, demand in the petrochemical, construction and government markets helped offset a portion of the adverse impact. The repair market continues to be adversely affected by low crude oil prices and depressed Gulf of Mexico activity, although demand in the construction and government markets helped offset some of the adverse impact.
“… After experiencing a peak in steel prices in the third quarter of 2018, steel prices trended downwards throughout 2019 and the first 10 months of 2020,” the report continued. “However, in late 2020 and into 2021, steel prices increased sharply, primarily due to supply issues caused by the COVID-19 pandemic. We believe the increase in steel prices may be causing some customers to delay orders. Much uncertainty exists regarding future steel availability and prices due to the COVID-19 pandemic and relatively low inventory levels.”
Conrad said that for the first quarter of this year, its new-construction segment accounted for 77.8 percent of total revenue, and the repair segment accounted for 22.2 percent.