MORGAN CITY, La., Dec. 12, 2014 /PRNewswire/ -- Conrad Industries,
Inc. (OTC Pink Sheets: CNRD.PK) announced today that its Board of
Directors has declared a special cash dividend of $1.00 per share of common stock. The
special cash dividend is payable on January
5, 2015 to shareholders of record on December 23, 2014.
Additionally, the Board plans to initiate a quarterly dividend
of $0.25 per share during the first
quarter of 2015. Declaration of the dividend is at the
discretion of the Board each quarter, and will depend upon the
Company's financial performance, cash requirements, outlook and
other factors deemed relevant by the Board.
The Company also announced today the signing of contracts and
sale of stock barges, bringing current backlog to approximately
$170.0 million, compared $135.0 million at September 30, 2014 and $152.9 million at December
31, 2013.
Barges sold and new contracts include four 297'6"x 54'x 12'
30,000 bbl. tank barges, two 361'x 62'x 24' 55,000 bbl tank barges,
two 300'x 62'x 18'5" 35,000 bbl. tank barges, and a 235'x 64'x
18'6" ferry.
The Board approved approximately $27.3
million in capital expenditures for 2015, which includes
$16.7 million for continued
development of the Conrad Deepwater South yard. The additional
improvements at Deepwater South will continue to enhance the
Company's ability to build larger vessels.
The Company also announced that its Board has increased the
Company's stock repurchase program to $20.0
million. The Company plans to use cash on hand or
generated from operations to purchase the stock. Acquisitions
may be made from time to time in the open market or in privately
negotiated transactions as permitted by securities laws and other
legal requirements. The timing, prices and sizes of purchases
will depend upon prevailing stock prices, general economic and
market conditions and other factors as management deems
appropriate. The program does not obligate the Company to
acquire any particular amount of common stock, and may be
commenced, suspended or discontinued at any time or from time to
time in the Company's discretion without prior notice.
Johnny Conrad, Chairman and CEO
commented, "Our announcements today reflect our financial strength
and our Board's optimism about the long-term prospects of our
business. Our actions also reflect management's ongoing
planning process aimed at taking advantage of our recent
achievements and accumulated substantial cash balances for the
benefit of our shareholders.
Throughout the years, we have used our cash and debt to make
investments in our business to continue to diversify our product
mix, take advantage of business opportunities and improve
efficiencies. We believe these investments have allowed us to
remain competitive, meet changing customer needs and navigate
effectively through business cycles. Additionally, we have
returned cash to our shareholders through our stock repurchase
program and special dividends in each of the past two years."
Mr. Conrad continued, "We must also take note of near-term risks
to our business. We have experienced a decline in demand for inland
tank barges primarily used to transport petroleum products produced
from shale plays, and a softer repair market. Current declining oil
prices may adversely impact our business, particularly in our
repair segment. We have been actively pursuing increased
opportunities to produce different types of vessels for new
markets. Some of these vessels would be larger, take longer to
start production, and take longer to complete than vessels we have
constructed in the past, and some may require additional capital
expenditures. We currently expect these factors to negatively
impact our financial performance for the fourth quarter of 2014 and
first two quarters of 2015, compared to prior periods. We
have met these types of challenges in the past, and our record of
success and talented and dedicated employees give us confidence
that our business will continue to grow and prosper."
Conrad Industries, Inc., established in 1948 and headquartered
in Morgan City, Louisiana,
designs, builds and overhauls tugboats, ferries, liftboats, barges,
offshore supply vessels and other steel and aluminum products for
both the commercial and government markets. The company provides
both repair and new construction services at its five shipyards
located in southern Louisiana and
Texas.
Cautionary statement: This press release contains
forward-looking statements, which are all statements other than
those of historical facts, and reflect our expectations as of the
date of this press release about future events.
Forward-looking statements are subject to risks and uncertainties,
including our reliance on cyclical industries, ability to perform
contracts at costs consistent with estimated costs utilized in
bidding, and ability to replenish our backlog and compete in
changing markets. These and other risks are discussed in more
detail in our Annual Report and subsequent reports available on
www.otcmarkets.com. Should one or more of these risks
materialize, achievement of anticipated results may differ
materially from those anticipated. We do not intend to update
these forward-looking statements, other than through our regular
quarterly and annual reports.
For Information Contact:
Cecil Hernandez (985) 702-0195
CAHernandez@ConradIndustries.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/conrad-industries-announces-special-dividend-and-institutes-quarterly-dividend-reports-on-new-business-300009247.html
SOURCE Conrad Industries, Inc.