Conrad Industries, Inc. Reports Final 1999 Results.

Business Editors

MORGAN CITY, La.--(BUSINESS WIRE)--Feb. 23, 2000

Conrad Industries, Inc. (Nasdaq: CNRD) reported net income of $1.5 million and earnings per share of $0.21 for the year ended December 31,1999 compared to net income of $254,000 and earnings per share of $0.04 for the year ended December 31, 1998. The results for 1998 were affected by a non-cash executive compensation charge of $4.7 million. The Company incurred a net loss of $93,000 or $0.01 per share for the quarter ended December 31, 1999 compared to net income of $410,000 and earnings per share of $0.06 for the quarter ended December 31, 1998.

EBITDA was $5.3 million or 16.4% of revenue for the year ended December 31, 1999 compared to $10.9 million or 23.6% of revenue for the year ended December 31, 1998. EBITDA was $574,000 or 7.7% of revenue for the quarter ended December 31, 1999 compared to $1.5 million or 15.7% of revenue for the quarter ended December 31, 1998.

Revenues for the year ended December 31, 1999 were $32.6 million compared to $46.3 million for the year ended December 31, 1998. Revenues for the quarter ended December 31, 1999 were $7.5 million compared to $9.5 million for the quarter ended December 31, 1998.

Conrad, founded in 1948, specializes in the construction, conversion and repair of marine vessels for commercial and government customers and the fabrication of modular components of offshore drilling rigs and floating production, storage and off loading vessels. The Company currently operates three shipyards located along the Gulf Coast in Morgan City and Amelia, Louisiana and Orange, Texas.

        Conrad Industries, Inc. Summary Results of Operations
               (In thousands, except per share amounts)

                              Three months ended   Twelve months ended
                              ------------------   -------------------
                                    December 31,       December 31,
                                  1999      1998     1999       1998
                                 -------- -------- --------- ---------
Statement of Operations Data:
Revenues
  Vessel construction            $ 5,101  $ 6,839  $ 23,870  $ 31,754
  Repair and conversions           2,354    2,693     8,685    14,559
                                 -------- -------- --------- ---------
     Total revenues                7,455    9,532    32,555    46,313
                                 -------- -------- --------- ---------
Cost of revenue:
  Vessel construction              4,501    5,292    18,458    23,560
  Repair and conversions           1,998    2,309     7,160    10,560
                                 -------- -------- --------- ---------
     Total cost of revenue         6,499    7,601    25,618    34,120
                                 -------- -------- --------- ---------
Gross profit
  Vessel construction                600    1,547     5,412     8,194
  Repair and conversions             356      384     1,525     3,999
                                 -------- -------- --------- ---------
     Total gross profit              956    1,931     6,937    12,193
S G & A                              953    1,001     3,857     3,515
Non-Cash Executive
 Compensation (1)                      -        -         -     4,676
                                 -------- -------- --------- ---------
Income from operations                 3      930     3,080     4,002
Interest Expense                     148      198       639     1,425
Other expenses (income), net        (110)     (36)     (313)     (284)
                                 -------- -------- --------- ---------
Income (loss) before income taxes    (35)     768     2,754     2,861
Provision for income taxes            58      358     1,252     1,932
Provision for cumulative deferred
 taxes                                 -        -         -       675
                                 ======== ======== ========= =========
Net Income (loss)                  $ (93)   $ 410   $ 1,502     $ 254
                                 ======== ======== ========= =========

Net income (loss)  per common
 share:
    Basic and diluted            $ (0.01)  $ 0.06    $ 0.21    $ 0.04
Weighted average common shares
 outstanding:
    Basic and diluted              7,078    7,078     7,078     6,167

Pro Forma Data:
Income (loss) before income taxes
 as reported above                 $ (35)   $ 768   $ 2,754   $ 2,861
Pro forma provision for income
 taxes (2)                            58      358     1,252     2,596
                                 ======== ======== ========= =========
Pro forma net income (loss)        $ (93)   $ 410   $ 1,502     $ 265
                                 ======== ======== ========= =========

Pro forma net income (loss)  per
 share                           $ (0.01)  $ 0.06    $ 0.21    $ 0.04
Common and equivalent shares
 outstanding (3)                   7,078    7,078     7,078     6,569

EBITDA (4)                         $ 574  $ 1,501   $ 5,343  $ 10,927
EBITDA as a percent of revenue      7.7%    15.7%     16.4%     23.6%

Depreciation & Amortization:
  Vessel construction              $ 197    $ 206     $ 793     $ 813
  Repair and conversions             131      132       524       511
  Included in SG&A                   243      233       946       925
                                 ======== ======== ========= =========
    Total depreciation &
     amortization                  $ 571    $ 571   $ 2,263   $ 2,249
                                 ======== ======== ========= =========

(1)  Represents non-cash executive compensation expense related to the
     issuance of shares of common stock to executives by Conrad in the
     first quarter of 1998.

(2)  Pro forma data gives effect to the application of federal and
     state income taxes to the Company as if were a C corporation for
     tax purposes during all periods presented.

(3)  1998 includes shares sold in the initial public offering
     sufficient to fund a $10 million distribution of undistributed
     earnings to stockholders prior to the termination of the
     Company's S Corporation status.

(4)  Represents income from operations before deduction of
     depreciation, amortization and non-cash compensation expense
     related to the issuance of stock and stock options to employees.
     This is a non-GAAP supplemental financial measurement used by the
     Company.