Conrad Industries released their annual report yesterday, and it’s good news all around. The company reported record gross profit, record net income and record free cash flow together with increasing profit margins. The only thing that’s slightly down is revenue. See the table below for an overview of the historical financial results of Conrad Industries, and how this compares to the 2012 results:
What’s also good to see is that the number of shares outstanding continues to drop, and that the amount of cash is at a record high even though the company returned $12 million to shareholders at the end of 2012 through the $2/share special dividend.
The highlights from the annual report:
- The backlog is high: $120.7 million at the end of 2012 compared to $47.1 million last year. In the first quarter they signed new contracts, bringing the backlog to approximately $122.5 million compared to $70.8 million at March 31, 2012. So it looks like 2013 is on track to be even better than 2012!
- The board approved an increase in the stock repurchase program of $10 million, so they will continue to shrink the share count in the future.
- The $22.6 million claim to the Deepwater Horizon Court-Supervised Settlement Program was approved by the court in December last year, but will be subject to review before it will be awarded. Conrad expects that this will happen in the second or third quarter of 2013.
- The company is going to continue to expand, and the board has approved $22 million in capital expenditures which include an expansion project on the 50 acres of property adjoining the Deepwater location purchased in 2012.
Author is long Conrad Industries
Thanks for the posting
I am also long on CNRD. The good thing about the business is that there are no surprises. The management team keeps on executing and remains shareholder friendly.
Increase and capex and backlog tells me that the management is seeing improvement in demand.
I am guessing that half of the daily volume is the buyback volume.