Friday, November 16, 2012

"Conrad Announces Third Quarter 2012 Results and Backlog" ($CNRD)

Released last night,

"For the quarter ended September 30, 2012, Conrad had net income of $4.4 million [up 26%] and earnings per diluted share of $0.74 [up 37%] compared to net income of $3.5 million and earnings per diluted share of $0.54 during the third quarter of 2011. The Company had net income of $12.9 million and earnings per diluted share of $2.13 for the nine months ended September 30, 2012 compared to net income of $12.4 million and earnings per diluted share of $1.93 for the nine months ended September 30, 2011.

During the first nine months of 2012, Conrad added $183.5 million of backlog to its new construction segment compared to $135.8 million added to backlog during the first nine months of 2011. Backlog at September 30, 2012 was $104.4 million [up 19%] compared to $87.7 million at September 30, 2011, $47.1 million at December 31, 2011, and $57.2 million at June 30, 2012. The Company has signed $58.7 million of new contracts since September 30, 2012."
Wow! So, we are looking at about $3 in annualized EPS I would guess. Yesterday's share price was $17 and there was about $4 per share in "surplus" working capital, so that's a P/E now of 4.33 ex cash.

4 comments:

Alpha Vulture said...

I also liked what they wrote about the BP Settlement Fund.

Stock Chump said...

Did you also notice this?

"Our board has authorized management to retain a financial advisor to our board to assist in its evaluation of strategic initiatives in order to determine potential alternatives that will enhance shareholder value and provides us with flexibility to respond to potential future business opportunities and risks."

In 2007 they hired a financial advisor (see discussion in 2011 Annual Report) and decided to buy back stock. Maybe they do a special dividend / tender offer / initiate a regular dividend etc...

Alpha Vulture said...

That's not the only thing in the report, also: "Management is currently engaged in a detailed business planning process to identify potential uses of the Company’s cash."

CP said...

The language about returning cash to shareholders isn't new - it's been in past reports.

What's good is that they are actually doing something about it - bought back 150,000 shares last quarter! That's a 2.5% reduction in share count. This stock essentially pays a huge dividend - just in a tax efficient way.

The settlement fund news is awesome too - that could be $3-4 per share potentially!