From today's press release:
"For the quarter ended June 30, 2012, Conrad achieved net income of $5.3 million and earnings per diluted share of $0.87 compared to net income of $5.2 million and earnings per diluted share of $0.81 during the second quarter of 2011. The Company had net income of $8.5 million and earnings per diluted share of $1.39 for the six months ended June 30, 2012 compared to net income of $8.9 million and earnings per diluted share of $1.39 for the six months ended June 30, 2011."So that's $3.48 in annualized EPS, which is a P/E of 4.31x. However the company has at least $18 million in cash ($3/share) that's totally unneeded for the business and probably could/should be distributed. That means the P/E ex-cash is (15-3)/3.48 = 3.45x. That's cheap! Also, in the filing, the company mentions,
"We are preparing to submit a claim for economic damages under the Deepwater Horizon Court-Supervised Settlement Program, and our preliminary analysis indicates that our claim could be for a substantial amount."I'm not ascribing any value to that, but perhaps it would be for a couple bucks/share? Meanwhile, book value is $16.88 per share - trades at less than 0.9x book value. Net current assets are $11.60 per share.
No share buybacks during Q2 which is very disappointing. However, the share price was pretty elevated during Q2. It's only the past couple months (during Q3) that it has gotten really cheap again. I hope the company was buying during the dip below $15. During Q2, they were spending money on capex: "[N]et cash used in investing activities of $11.6 million for the six months ended June 30, 2012 reflected capital expenditures for land, equipment and machinery purchases. For 2012, the Board of Directors has approved approximately $20.8 million in capital expenditures..."
Adding in the $33.7 mm in booked backlog since quarter end, backlog is up to $91 mm, which is up 2.5% yoy.
Margins were up substantially yoy. "Vessel construction gross profit margins increased for the six month periods primarily as a result of increased production hours and the positive impact on overhead rates. Repair and conversion gross profit increased for the six month periods primarily as a result of increased repair and conversion production hours." Consequently, EBITDA is holding up yoy despite the dip in orders during q1.