Conrad Reports Net Loss For Third Quarter But Bigger Backlog
Conrad Industries Inc. reported a net loss of $3.2 million, or $0.63 per share, for the third quarter of 2023, an improvement from the net loss of $5.3 million, or $1.06 per share, for the same quarter a year ago.
The company reported a net loss of $14.1 million and loss per diluted share of $2.82 for the nine months ended September 30, 2023, compared to net loss of $8.8 million and loss per diluted share of $1.75 for the nine months ended September 30, 2022.
During the first nine months of 2023, Conrad added $203.7 million of backlog to its new construction segment compared to $251.0 million added to backlog during the first nine months of 2022. Conrad’s backlog was $289.7 million as of September 30, 2023.
“The net loss for the first nine months of 2023 was primarily the result of three more complex projects for a single customer that were originally signed in 2020 and early 2021 during the COVID-19 pandemic and suffered from the subsequent supply chain and inflationary issues,” said Johnny Conrad, CEO of Conrad Industries. “Two of these projects are now complete, with the third nearing completion, and we are extremely proud of the quality of the vessels that our Conrad team constructed for our customer.
“Our repair and conversion segment achieved gross profit of $3.2 million for the nine months ended September 30, 2023, compared to a gross loss of $655,000 during the same period in 2022, demonstrating solid performance in a competitive environment. We are optimistic about future demand, based on current projects, bid activity and market outlook in our repair and conversion segment.”
“We are cautiously optimistic about the future of our vessel construction segment due to recent backlog additions for repeat builds in the ferry and barge markets for repeat customers,” he continued. “Our management team continues to focus on effectively executing our current backlog, securing new contracts, increasing efficiencies and controlling costs so that we can be well-positioned for improved profitability as our markets strengthen.”
