For the quarter ended June 30, 2016, Conrad had net income of $1.3 million and earnings per diluted share of $0.25 compared to net income of $1.2 million and earnings per diluted share of $.21 during the second quarter of 2015. The Company had net income of $3.9 million and earnings per diluted share of $0.74 for the six months ended June 30, 2016 compared to net income of $5.2 million and earnings per diluted share of $.89 for the six months ended June 30, 2015. Results for the three and six months ended June 30, 2016 included research and development tax credits of $0.6 million and $1.2 million, respectively. Conrad's backlog was $248.7 million at June 30, 2016, $211.8 million at December 31, 2015 and $131.7 million at June 30, 2015.The market capitalization is currently $125 million, which is about exactly 1x book value. The enterprise value is $95 million.
The current backlog is a record high! It includes "an ocean going tank barge, four twin screw tugs, two ATB tugs, four spud barges and a LPG barge".
Regarding the LNG barge, which is a new type of project for them:
Vessel construction gross profit in the 2016 periods reflects a $4.5 million loss recorded in the second quarter on the LNG barge. The losses on the LNG barge primarily relate to vessel changes required by regulatory authorities, which increased costs and caused delays, and higher than expected equipment costs, resulting from the vessel being the first of its kind produced in North America. While most of the regulatory review process has been completed, we continue to have regulatory and execution risk associated with completing the vessel and are in discussions regarding potential late delivery charges. The barge is scheduled for delivery during the first half of 2017.Results are stronger than I would've thought. Nice to see a company that has no interest expense and no long term debt.
Share repurchases YTD:
During the first quarter of 2016, we purchased 181,075 shares at an average price of $19 per share. During the second quarter of 2016, we purchased 12,955 shares at an average price of $21 per share.