Friday, November 16, 2012

Conrad Industries Discloses BP Settlement Fund Claim ($CNRD)

From the third quarter report released yesterday,

"We are preparing to submit claims to the BP Settlement Fund in accordance with the Deepwater Horizon Court–Supervised Settlement Program. We plan to submit these claims to the BP Settlement Fund by November 30, 2012, and estimate a response before the end of the first half of 2013. Certain of our businesses are located within the economic zones included in the class settlement and we believe that the damage calculations have been made in accordance with the guidelines established for the BP Settlement Fund. The cumulative amount of the claims is anticipated to be approximately $22 million to $23 million. Although we believe that these claims have been calculated in accordance with the guidelines established by the BP Settlement Fund, the claims are still subject to review by the professionals responsible for processing the claims and determining the amount to be awarded for each claim. Accordingly, the amounts awarded to us may be less than the amounts we submit and some or all of our claims may be rejected. In addition, a fairness hearing for the class settlement was held November 8, 2012, and no final decision has yet been entered. Any award we receive will be subject to income taxes. No amounts related to the claims have been recorded in our financial statements at September 30, 2012."
Wow! The share count is now 5,938,287 after the buyback of 150,000 during the quarter. So, the BP claim could mean $3.70 to $3.87 in one-time additional cash per share.


Alpha Vulture said...

Don't forget taxes. They will probably need to pay ~35%

CP said...

True, that number should be reduced for taxes.

However, we tend to talk about CNRD in terms of pre tax metrics like EBITDA and EBT (which I think is appropriate).

The important thing is that this could be like getting the equivalent of a bonus year or more of pre-tax earnings.