Conrad Industries, Inc. (OTC Pink: CNRD) has recently announced its financial results for the first quarter of 2023. For the quarter ended March 31, 2023, Conrad Industries had a net loss of $5.1 million and loss per diluted share of $1.01 compared to a net loss of $116,000 and loss per diluted share of $0.02 during the first quarter of 2022. The company’s financial reports are available at www.otcmarkets.com.
The company’s revenue decreased from $23.6 million in Q1 2022 to $17.5 million in Q1 2023, reflecting a 25.8% decline year over year. The decrease in revenue is primarily due to lower repair revenue and lower new construction revenue, which was partially offset by higher revenue from the Company’s barge business.
New Contracts Signed by Conrad Industries
During the first three months of 2023, Conrad signed $47.0 million in contracts in its new construction segment compared to $41.1 million added to backlog during the first three months of 2022. Since the end of the first quarter, the Company has signed an additional $13.9 million in contracts.
Conrad Industries Backlog
Conrad Industries’ backlog was $221.8 million at March 31, 2023, $244.1 million at December 31, 2022, and $136.5 million at March 31, 2022. The Company’s backlog is an indication of its future revenue.
Opinions on Conrad Industries’ Financial Performance
While Conrad Industries’ revenue declined year over year, the company’s new construction segment has seen significant growth. The increase in new contracts signed indicates that the company’s sales team has been successful in securing new business. Additionally, the company’s backlog remains strong, indicating that the company has a healthy pipeline of future projects.
However, the company’s net loss of $5.1 million is a cause for concern. The decline in revenue from the repair and new construction segments may have contributed to the net loss. It remains to be seen if Conrad Industries can reverse this trend in the coming quarters.
Conrad Industries’ Management Comments
Regarding the first-quarter results, Johnny Conrad, Chairman, and CEO, stated, “We are pleased with our contract awards in the first quarter and with our new construction backlog, which increased to $193.5 million at March 31, 2023. However, our financial results were negatively impacted by the decline in repair revenue and lower new construction revenue. We are taking steps to address these issues, including improving our operational efficiency and reducing our cost structure. We remain focused on delivering value to our customers and shareholders.”
Conclusion
Conrad Industries, Inc. has reported a net loss of $5.1 million for the first quarter of 2023, primarily due to lower revenue from the repair and new construction segments. However, the company’s new construction segment has seen significant growth, with $47.0 million in contracts signed in Q1 2023. The company’s backlog remains strong, indicating that the company has a healthy pipeline of future projects. While the company’s financial results are a cause for concern, the company’s management team has taken steps to address the issues and remain focused on delivering value to its customers and shareholders.
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