Thursday, May 15, 2014

Conrad Industries Announces First Quarter 2014 Results $CNRD

Results for first quarter 2014:

  • First quarter revenue up 19% year over year. SG&A only up 11%. Net income up 9%.
  • Quarterly EPS was $1.08 - company is trading at ~9.5x Q1 annualized earnings.
  • Still no share buybacks.
  • Ship construction revenue up 20%, repair and conversions up 14%. Vessel gross profit margin was 16% compared to 14%; repair margin fell significantly to 13% from 23%. "The decrease in repair and conversion gross profit and margins was primarily attributable to some low margin jobs performed in the first quarter of 2014."
  • Payments of BP claims are still stayed. 
  • Board has approved an increase in our capital expenditure budget for 2014 for additional improvements to our Conrad Deepwater South yard, resulting in a total capital expenditure budget for 2014 of approximately $12.8 million.
  • During the first three months of 2014, we added $59.3 million of backlog to our new construction segment, as compared to $51.4 million added in the first quarter of 2013
  • EBITDA was $11.15 million for the quarter. 
  • At $40, market cap is now $238.45 million. Balance sheet seems to have a good $40 million of "excess" cash. [Without it, the current ratio would still be 1.8x.] So, enterprise value is roughly $200 million.
  • The 2013 EBITDA was $49 million. The past five years' average EBITDA was $32 million. The past five years' average capex was $7.9 million, so the average (EBITDA-capex) was $24 million.
  • That means the EV/EBITDA(ttm) is 4x and the EV/EBITDA(5y) is 6.25x. The "free cash flow" multiple is 8x.


theyenguy said...

Inasmuch as the age of buy and hold investing is over, through, finished and done, the high flying over the counter stock, CNRD, is a Small Cap Pure Growth Company, RZG, that should be sold short.

Parker Bohn said...

Thanks for the update.

I'm a shareholder and I follow this company.

I'll admit, I thought I was buying into a mediocre company at a bargain price, but as the price has doubled, then doubled again, I've had to learn more about the business and I've come to see it is a great company with quality management.

No plans of selling at this point.

Anonymous said...

DO have to remember that it is a cyclical business.