Conrad Industries Announces 2020 Results and Backlog
Conrad Industries (OTC Pink: CNRD) reported a net loss of $4.0 million for 2020, compared to a net income of $86,000 in 2019, resulting in a loss per diluted share of $0.80 versus $0.02. The company's backlog surged to $183.7 million, up significantly from $79.2 million in 2019. The impact of COVID-19 affected production volume, though a Paycheck Protection Program loan helped retain employees and improve financial stability. The CEO highlighted optimism for future prospects despite ongoing challenges like high steel prices and competition.
- Backlog increased significantly to $183.7 million from $79.2 million in 2019.
- Received Paycheck Protection Program loan, aiding employee retention.
- CEO expressed optimism for long-term business prospects.
- Net loss of $4.0 million in 2020 compared to net income in 2019.
- Loss per diluted share increased to $0.80.
- COVID-19 substantially impacted production volume.
MORGAN CITY, La., March 31, 2021 /PRNewswire/ -- Conrad Industries, Inc. (OTC Pink: CNRD) today announced its 2020 results and backlog.
The Company had net loss of
Our backlog as of December 31, 2020 was
Johnny Conrad, Chairman and CEO stated, "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. 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."
Mr. Conrad continued, "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."
Mr. Conrad concluded "We are optimistic about the long-term prospects of our business; we also take note of near-term risks. 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 4 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, Louisiana, 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.
Cautionary statement: This press release contains forward-looking statements, which are all statements other than those of historical facts, and reflect our expectations as of the date of this press release about future events. Forward-looking statements are subject to risks and uncertainties, including risks and uncertainties related to the COVID-19 pandemic, current high steel prices and constrained availability, competition, our reliance on cyclical industries, ability to perform contracts at costs consistent with estimated costs utilized in bidding, and ability to replenish our backlog and compete in changing markets. These and other risks are discussed in more detail in our Annual Report and subsequent reports available on www.otcmarkets.com. Should one or more of these risks materialize, achievement of anticipated results may differ materially from those anticipated. We do not intend to update these forward-looking statements, other than through our regular quarterly and annual reports.
For Information Contact:
Cecil A. Hernandez (985) 702-0195
CAHernandez@ConradIndustries.com
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SOURCE Conrad Industries, Inc.
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