Conrad Industries has posted its first quarter 2013 results [pdf]. Highlights:
- Revenue was up 18.5% year over year, gross profit was up 58% (15.9% margin vs 11.9%), and SG&A increased only 10 bps.
- CFO in the quarter was $4 million and capex was $3.6 million. The "construction in progress" account increased by $3 million so that was obviously where most of the money went. Separately, the company breaks out capex by segment and says that repair and conversion capex was $2.7 million.
- Vessel construction revenue as up 16% year over year and repair was up 22%. Vessel margins were up 410 bps to 14% and repair margins were up 620 bps to 23%. We were predicting that there would be both increased revenue and higher margins, and so far this seems to be the case.
- In the quarter, 27.6% of revenues came from the offshore oil and gas industry.
- Backlog was up 77% year over year, and backlog man-hours were up 98% year over year.
- EBITDA for the quarter was $9.9 million, up 70%.
Here is an estimate of the current enterprise valuation:
The company trades at 1.55x book value. Conrad peaked during the last cycle at $17.59 in September 2007. At that point, the diluted share count was approximately ~7.3 million for a market capitalization of $128.4 million, and book value was $43.5 million for a P/B of 2.95x.