Tuesday, November 15, 2011

Conrad Industries Announces Third Quarter 2011 Results ($CNRD)

Micro cap value idea Conrad Industries (CNRD) recently released its third quarter results. Revenue and net income were both up substantially year-over-year:

Last quarter, I was complaining that the company was buying back shares at a glacial pace. During Q2, the company bought back 16,209 shares at an average price of $13 per share. However, during Q3, the company repurchased 81,386 shares at an average price of $13 per share. So, during the past six months the company has retired roughly 1.5% of the outstanding shares.

Other highlights:

  • The backlog was $87.7 million at September 30, 2011, $89.5 million at December 31, 2010 and $86.1 million at September 30, 2010.
  • TTM net income of 15.6 million (P/E under 6x). TTM EBITDA of 28 million (EV/EBITDA under 2.5x).
  • TTM revenue increased 72% over the PTM, with gross margin dropping 180 bps and EBIT margin dropping only 50 bps.

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