For the quarter ended June 30, 2015, Conrad had net income of $1.2 million and earnings per diluted share of $0.21 compared to net income of $6.8 million and earnings per diluted share of $1.14 during the second quarter of 2014. The Company had net income of $5.2 million and earnings per diluted share of $0.89 for the six months ended June 30, 2015 compared to net income of $13.2 million and earnings per diluted share of $2.21 for the six months ended June 30, 2014. Results for the three and six months ended June 30, 2015 included research and development tax credits of $0.8 million and $1.7 million, respectively.First half net income was down 61% versus 2014, but quarterly income was down 82% over the previous year's quarter, so the deterioration got worse. Also, backlog is down 24% year over year.
Conrad’s backlog was $131.7 million at June 30, 2015, $180.2 million at December 31, 2014 and $173.0 million at June 30, 2014.
Johnny Conrad, President and CEO, stated, “While we remain optimistic about the long-term prospects for our business, we continue to experience near term challenges. We have experienced a decline in demand for inland tank barges primarily used to transport petroleum products produced from shale plays, and also a delay by our customers in placing orders for the larger projects that we expected to convert to backlog. Although bid activity has been good and we are pursuing various opportunities, we have not signed contracts as anticipated which is leading to gaps in our production schedules. The decline in demand and underperformance on some of our newer jobs have resulted in a decline in revenue, margins and profits.”
Conrad continued, “Additionally, we have experienced a softer repair market, which we believe is due primarily to the decline in crude oil prices. These factors negatively impacted our results for the first six months of 2015, and we currently expect these factors to negatively impact our financial performance during 2015, compared to 2014, and possibly through the first six months of 2016. We plan to continue to be responsive to changing market conditions and look for ways to continue to enhance shareholder value.”
Conrad Industries, Inc. announced today that its Board of Directors has declared a quarterly dividend of $0.25 per share of common stock. The dividend is payable on September 17, 2015 to shareholders of record on August 27, 2015.
Our previous Conrad posts. I have to say I called this. Last October, the price was $36 and I pointed out the offshore drilling crash would hit Conrad's repair business. And in March 2014, I said, "always remembering that in general you want to sell cyclical stocks at cyclical peaks when P/Es will be low."
They did do the first big share repurchase in a long time: "during the second quarter of 2015, we purchased 121,155 shares at an average price of $31 per share." Pretty funny; you couldn't get them to buy back shares when they were half this level.