Granite Reports Fourth Quarter and Fiscal Year 2021 Results
- Committed and Awarded Projects ("CAP") (1) of
$4.0 billion - Year-end cash and marketable securities of
$411.2 million - Reorganized
California , Mountain and Central operating groups and Construction and Materials reportable segments - Former Water and Minerals Services operating group is now presented as held for sale and discontinued operations
Fiscal Year 2021 Results
Fiscal year 2021 net income totaled
- Revenue from continuing operations decreased 3.8% in 2021 to
$3.0 billion , compared to$3.1 billion in the prior year. Combined revenue including discontinued operations decreased 1.7% in 2021 to$3.5 billion , compared to$3.6 billion in the prior year. - Gross profit from continuing operations increased 0.3% in 2021 to
$305.6 million , compared to$304.7 million in the prior year. - Selling, general & administrative ("SG&A") expenses from continuing operations in 2021 were
$243.1 million or 8.1% of revenue, compared to$252.9 million or 8.1% of revenue in the prior year. Combined SG&A expenses including discontinued operations in 2021 were$303.0 million or 8.7% of revenue, compared to$316.3 million or 8.9% of revenue in the prior year. - Adjusted EBITDA(2) from continuing operations totaled
$163.4 million in 2021, compared to$153.0 million in the prior year. Combined adjusted EBITDA(2) including discontinued operations was$211.6 million or combined adjusted EBITDA margin of 6.0% in 2021, compared to$183.4 million or combined adjusted EBITDA margin of 5.1% in the prior year. - Committed and Award Projects ("CAP") (1) totaled
$4.0 billion , slightly down sequentially from the third quarter of 2021 and flat year-over-year. - Cash and marketable securities decreased
($19.3) million in 2021 to$411.2 million , compared to$430.5 million in the prior year, while debt remained relatively unchanged compared to the prior year.
"Three weeks ago, we announced the planned divestiture of our Water and Minerals Services Group, the change of our segments and the reorganization of our operational groups," said Kyle Larkin, Granite President and Chief Executive Officer. "In the past year, we have assembled a new executive team, exited the Northeast market, and transformed the quality of our CAP by securing additional best value procurement projects and by decreasing exposure to design build risks. We also strengthened our cash and liquidity position as we refocus our efforts on our civil construction and materials business.
"Our fourth quarter of 2021 was challenged as we worked through our Old Risk Portfolio (‘ORP’) (5) and inclement weather when compared to the prior year, particularly in the West. We continue to focus our efforts on project execution as we burn through the remaining ORP and direct our attention to transforming the Central Group. We are excited about the future as we unfold our new strategic plan. We believe that our CAP going into 2022 reflects the strength of our vertically integrated civil construction business and aligns with our new project selection criteria. At the same time, our cash and liquidity continues to be a strength and provides us flexibility to reinvest in our construction and materials businesses while returning value to shareholders as we begin Granite's next 100 years."
Fourth Quarter 2021 Results
Results for the fourth quarter of 2021 were a net loss of
- Revenue from continuing operations decreased 17.7% in the fourth quarter of 2021 to
$683.2 million compared to$830.4 million in the same period last year. - Gross profit from continuing operations decreased to
$51.7 million in the fourth quarter of 2021 compared to$93.3 million in the same period last year. - SG&A expenses from continuing operations in the fourth quarter of 2021 were
$62.2 million or 9.1% of revenue, compared to$75.9 million or 9.1% of revenue in the same period last year. - Adjusted EBITDA (2) from continuing operations decreased to
$24.3 million in the fourth quarter of 2021 compared to$45.5 million in the same period last year.
(1) CAP is comprised of the revenue we expect to record in the future on awarded contracts, including 100% of our consolidated joint venture contracts and our proportionate share of unconsolidated joint venture contracts, as well as, the general construction portion of construction manager/general contractor, construction manager at risk and progressive design build contracts to the extent contract execution and funding is probable.
(2) Adjusted net income (loss), adjusted diluted income (loss) per share, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables.
(3) Other costs include a legal settlement charge, legal and accounting investigation fees, divestiture expenses and restructuring charges.
(4) Transaction costs include acquired intangible amortization expenses and acquisition-related depreciation related to the acquisition of Layne Christensen Company ("Layne") and Liquiforce.
(5) The Old Risk Portfolio includes projects with risk criteria that do not align with Granite's new project selection criteria.
Fourth Quarter and Fiscal Year 2021 Segment Results (Unaudited - dollars in thousands)
|
Construction Segment |
|
|||||||||||||||||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||||||||||||
|
|
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||||||||||||||||
|
Revenue from continuing operations |
|
$ |
588,488 |
|
$ |
730,814 |
|
$ |
(142,326 |
) |
|
(19.5 |
)% |
|
$ |
2,602,306 |
|
$ |
2,764,094 |
|
$ |
(161,788 |
) |
|
(5.9 |
)% |
||||||
|
Gross profit from continuing operations |
|
37,131 |
|
73,556 |
|
(36,425 |
) |
|
(49.5 |
)% |
|
248,350 |
|
241,444 |
|
6,906 |
|
2.9 |
% |
|||||||||||||
|
Gross profit as a percent of revenue from continuing operations |
|
6.3 |
% |
|
10.1 |
% |
|
|
|
|
|
|
|
|
|
9.5 |
% |
|
8.7 |
% |
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
September 30, 2021 |
|
Change - Quarter over Quarter |
|
December 31, 2020 |
|
Change - Year over Year |
||||||||||||||||||||||
|
Committed and Awarded Projects |
|
$ |
4,010,064 |
|
$ |
4,065,096 |
|
$ |
(55,032 |
) |
|
(1.4 |
)% |
|
$ |
4,025,485 |
|
$ |
(15,421 |
) |
|
(0.4 |
)% |
|
|
|
|
|||||
Construction revenue in the fourth quarter decreased compared to the same period last year primarily due to the impact of inclement weather in
For the year ended December 31, 2021, construction revenue decreased compared to last year due primarily to an extended competitive bidding environment in 2021, weather impacts in the fourth quarter in the
CAP decreased slightly compared to the same period last year primarily due to continued progression of ORP projects within the Central group despite increases in Mountain and
|
Materials Segment |
|
|||||||||||||||||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||||||||||||
|
|
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||||||||||||||||
|
Revenue from continuing operations |
|
$ |
94,708 |
|
$ |
99,576 |
|
$ |
(4,868 |
) |
|
(4.9 |
)% |
|
$ |
407,747 |
|
$ |
364,785 |
|
$ |
42,962 |
|
11.8 |
% |
|||||||
|
Gross profit from continuing operations |
|
14,521 |
|
19,763 |
|
(5,242 |
) |
|
(26.5 |
)% |
|
57,206 |
|
63,209 |
|
(6,003 |
) |
|
(9.5 |
)% |
||||||||||||
|
Gross profit as a percent of revenue from continuing operations |
|
15.3 |
% |
|
19.8 |
% |
|
|
|
|
|
|
|
|
|
14.0 |
% |
|
17.3 |
% |
|
|
|
|
|
|
|
|
||||
Materials revenue for the fourth quarter decreased compared to the same period last year primarily due to lower aggregate and asphalt volumes in the
For fiscal year 2021, materials revenue increased compared to the same period last year from higher sales volumes driven by mostly dry weather in the first three quarters of the year. For fiscal year 2021, gross profit decreased compared to the same period last year driven by higher fuel and liquid asphalt costs compared to 2020.
Outlook and Guidance
The Company's expectations for 2022 are:
- Low single digit growth in revenue from continuing operations
- Adjusted EBITDA margin from continuing operations in the range of 6% to 8%
- SG&A Expense from continuing operations in the range of 8.0% to 8.5% of revenue
- Low to mid-20s effective tax rate range for continuing operations
- Capital expenditures in the range of
$100 million to$115 million
"We begin 2022 as a changed company from a year ago, but we still have work to do," said Kyle Larkin. "While we expect to grow revenue in the
Conference Call
Granite will conduct a conference call today, February 25, 2022, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results for the quarter and year ended December 31, 2021. The Company invites investors to listen to a live audio webcast on its Investor Relations website, investor.graniteconstruction.com. The live call is available by calling 1-877-328-5503; international callers may dial 1-412-317-5472. An archive of the webcast will be available on the website approximately one hour after the call. A replay will be available after the live call through March 3, 2022, by calling 1-877-344-7529, replay access code 9446786; international callers may dial 1-412-317-0088.
About Granite
Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in
Forward-looking Statements
Any statements contained in this news release that are not based on historical facts, including statements regarding future events, occurrences, opportunities, circumstances, activities, performance, growth, declines, expected completion of projects in the ORP, demand, strategic plans, shareholder value, outcomes, outlook, revenue, adjusted EBITDA margin, SG&A, effective tax rate, and capital expenditures guidance for 2022, profitability, Committed and Awarded Projects (“CAP”) and results, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by words such as “future,” “outlook,” “assumes,” “believes,” “expects,” “estimates,” “anticipates,” “intends,” “plans,” “appears,” “may,” “will,” “should,” “could,” “would,” “continue,” "guidance," and the negatives thereof or other comparable terminology or by the context in which they are made. These forward-looking statements are estimates reflecting the best judgment of senior management and reflect our current expectations regarding future events, occurrences, opportunities, circumstances, activities, performance, growth, declines, expected completion of projects in the ORP, demand, strategic plans, shareholder value, outcomes, outlook, revenue and adjusted EBITDA margin guidance for 2022, profitability, CAP and results. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this news release and, except as required by law; we undertake no obligation to revise or update any forward-looking statements for any reason.
|
GRANITE CONSTRUCTION INCORPORATED CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share and per share data) |
||||||||
|
December 31, |
|
2021 |
|
|
2020 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
395,647 |
|
|
$ |
425,292 |
|
|
Receivables, net |
|
|
464,588 |
|
|
|
437,558 |
|
|
Contract assets |
|
|
145,437 |
|
|
|
132,097 |
|
|
Inventories |
|
|
61,965 |
|
|
|
62,471 |
|
|
Equity in construction joint ventures |
|
|
189,911 |
|
|
|
188,798 |
|
|
Other current assets |
|
|
177,210 |
|
|
|
37,767 |
|
|
Current assets held-for-sale |
|
|
392,641 |
|
|
|
171,263 |
|
|
Total current assets |
|
|
1,827,399 |
|
|
|
1,455,246 |
|
|
Property and equipment, net |
|
|
433,504 |
|
|
|
421,149 |
|
|
Long-term marketable securities |
|
|
15,600 |
|
|
|
5,200 |
|
|
Investments in affiliates |
|
|
23,368 |
|
|
|
27,637 |
|
|
Goodwill |
|
|
53,715 |
|
|
|
53,715 |
|
|
Right of use assets |
|
|
49,312 |
|
|
|
52,987 |
|
|
Deferred income taxes, net |
|
|
24,141 |
|
|
|
43,111 |
|
|
Other noncurrent assets |
|
|
67,888 |
|
|
|
68,847 |
|
|
Noncurrent assets held-for-sale |
|
|
— |
|
|
|
252,104 |
|
|
Total assets |
|
$ |
2,494,927 |
|
|
$ |
2,379,996 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
8,727 |
|
|
$ |
8,278 |
|
|
Accounts payable |
|
|
324,313 |
|
|
|
321,347 |
|
|
Contract liabilities |
|
|
200,041 |
|
|
|
162,925 |
|
|
Accrued expenses and other current liabilities |
|
|
452,829 |
|
|
|
381,747 |
|
|
Current liabilities held-for-sale |
|
|
83,408 |
|
|
|
68,959 |
|
|
Total current liabilities |
|
|
1,069,318 |
|
|
|
943,256 |
|
|
Long-term debt |
|
|
331,191 |
|
|
|
330,522 |
|
|
Long-term lease liabilities |
|
|
32,928 |
|
|
|
39,816 |
|
|
Deferred income taxes, net |
|
|
1,856 |
|
|
|
2,022 |
|
|
Other long-term liabilities |
|
|
64,071 |
|
|
|
62,420 |
|
|
Long-term liabilities held-for-sale |
|
|
— |
|
|
|
10,350 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
|
Common stock, |
|
|
458 |
|
|
|
457 |
|
|
Additional paid-in capital |
|
|
559,752 |
|
|
|
555,407 |
|
|
Accumulated other comprehensive loss |
|
|
(3,359 |
) |
|
|
(5,035 |
) |
|
Retained earnings |
|
|
410,831 |
|
|
|
424,835 |
|
|
Total Granite Construction Incorporated shareholders’ equity |
|
|
967,682 |
|
|
|
975,664 |
|
|
Non-controlling interests |
|
|
27,881 |
|
|
|
15,946 |
|
|
Total equity |
|
|
995,563 |
|
|
|
991,610 |
|
|
Total liabilities and equity |
|
$ |
2,494,927 |
|
|
$ |
2,379,996 |
|
|
GRANITE CONSTRUCTION INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data) |
||||||||||||
|
|
Three Months Ended December 31, |
Years Ended December 31, |
||||||||||
|
|
2021 |
2020 |
2021 |
2020 |
||||||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
$ |
588,488 |
$ |
730,814 |
$ |
2,602,306 |
$ |
2,764,094 |
||||
|
Materials |
94,708 |
99,576 |
407,747 |
364,785 |
||||||||
|
Total revenue |
683,196 |
830,390 |
3,010,053 |
3,128,879 |
||||||||
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction |
551,357 |
657,258 |
2,353,956 |
2,522,650 |
||||||||
|
Materials |
80,187 |
79,813 |
350,541 |
301,576 |
||||||||
|
Total cost of revenue |
631,544 |
737,071 |
2,704,497 |
2,824,226 |
||||||||
|
Gross profit |
51,652 |
93,319 |
305,556 |
304,653 |
||||||||
|
Selling, general and administrative expenses |
62,214 |
75,904 |
243,083 |
252,879 |
||||||||
|
Other costs |
10,364 |
8,195 |
95,155 |
36,964 |
||||||||
|
Gain on sales of property and equipment, net |
(26,002 |
) |
(1,752 |
) |
(33,781 |
) |
(4,925 |
) |
||||
|
Operating income |
5,076 |
10,972 |
1,099 |
19,735 |
||||||||
|
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
(487 |
) |
(251 |
) |
(1,178 |
) |
(3,017 |
) |
||||
|
Interest expense |
4,279 |
5,868 |
20,282 |
23,866 |
||||||||
|
Equity in income of affiliates, net |
(92 |
) |
(2,580 |
) |
(3,465 |
) |
(5,191 |
) |
||||
|
Other income, net |
(2,804 |
) |
(3,878 |
) |
(5,044 |
) |
(4,068 |
) |
||||
|
Total other (income) expense, net |
896 |
(841 |
) |
10,595 |
11,590 |
|||||||
|
Income (loss) from continuing operations before provision for (benefit from) income taxes |
4,180 |
11,813 |
(9,496 |
) |
8,145 |
|||||||
|
Provision for (benefit from) income taxes on continuing operations |
4,586 |
9,300 |
(1,237 |
) |
9,927 |
|||||||
|
Net income (loss) from continuing operations |
(406 |
) |
2,513 |
(8,259 |
) |
(1,782 |
) |
|||||
|
Net (loss) income from discontinued operations |
(20,027 |
) |
3,174 |
10,673 |
(164,399 |
) |
||||||
|
Net income (loss) |
(20,433 |
) |
5,687 |
2,414 |
(166,181 |
) |
||||||
|
Amount attributable to non-controlling interests from continuing operations |
7,220 |
2,323 |
7,682 |
21,064 |
||||||||
|
Net income (loss) attributable to Granite Construction Incorporated from continuing operations |
6,814 |
4,836 |
(577 |
) |
19,282 |
|||||||
|
Net income (loss) attributable to Granite Construction Incorporated from discontinued operations |
(20,027 |
) |
3,174 |
10,673 |
(164,399 |
) |
||||||
|
Net income (loss) attributable to Granite Construction Incorporated |
$ |
(13,213 |
) |
$ |
8,010 |
$ |
10,096 |
$ |
(145,117 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic continuing operations per share |
$ |
0.15 |
$ |
0.11 |
$ |
(0.01 |
) |
$ |
0.42 |
|||
|
Basic discontinued operations per share |
(0.44 |
) |
0.07 |
0.23 |
(3.60 |
) |
||||||
|
Basic earnings per share |
$ |
(0.29 |
) |
$ |
0.18 |
$ |
0.22 |
$ |
(3.18 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted continuing operations per share |
$ |
0.14 |
$ |
0.10 |
$ |
(0.01 |
) |
$ |
0.42 |
|||
|
Diluted discontinued operations per share |
(0.42 |
) |
0.07 |
0.23 |
(3.56 |
) |
||||||
|
Diluted earnings per share |
$ |
(0.28 |
) |
$ |
0.17 |
$ |
0.22 |
$ |
(3.14 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
45,832 |
45,660 |
45,788 |
45,614 |
||||||||
|
Diluted |
47,838 |
46,275 |
45,788 |
46,203 |
||||||||
|
GRANITE CONSTRUCTION INCORPORATED SUMMARIZED STATEMENT OF OPERATIONS - DISCONTINUED OPERATIONS (Unaudited - in thousands) |
||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Years Ended December 31, |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
Revenue |
|
$ |
122,455 |
|
|
$ |
115,182 |
|
|
$ |
491,812 |
|
|
$ |
433,580 |
|
|
Cost of revenue |
|
|
111,661 |
|
|
|
101,852 |
|
|
|
434,723 |
|
|
|
393,445 |
|
|
Selling, general and administrative expenses |
|
|
14,409 |
|
|
|
16,727 |
|
|
|
59,932 |
|
|
|
63,405 |
|
|
Non-cash impairment charges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
156,690 |
|
|
Other costs |
|
|
4,432 |
|
|
|
(94 |
) |
|
|
6,196 |
|
|
|
125 |
|
|
Gain on sales of property and equipment, net |
|
|
(1,088 |
) |
|
|
(308 |
) |
|
|
(32,658 |
) |
|
|
(2,005 |
) |
|
Other (income) expense, net |
|
|
9 |
|
|
|
(1,807 |
) |
|
|
(8,004 |
) |
|
|
(3,472 |
) |
|
Provision for (benefit from) income taxes |
|
|
13,059 |
|
|
|
(4,362 |
) |
|
|
20,950 |
|
|
|
(10,209 |
) |
|
Net income (loss) from discontinued operations |
|
$ |
(20,027 |
) |
|
$ |
3,174 |
|
|
$ |
10,673 |
|
|
$ |
(164,399 |
) |
|
GRANITE CONSTRUCTION INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousands) |
||||||||
|
Years Ended December 31, |
|
2021 |
|
2020 |
||||
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
2,414 |
|
$ |
(166,181 |
) |
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
109,050 |
|
112,958 |
||||
|
Amortization related to the 2.75% Convertible Notes |
|
9,448 |
|
8,693 |
||||
|
Gain on sales of property and equipment, net |
|
(66,439 |
) |
|
(6,930 |
) |
||
|
Deferred income taxes |
|
16,600 |
|
8,817 |
||||
|
Stock-based compensation |
|
6,407 |
|
6,377 |
||||
|
Equity in net loss from unconsolidated joint ventures |
|
765 |
|
51,486 |
||||
|
Net income from affiliates |
|
(12,586 |
) |
|
(8,783 |
) |
||
|
Non-cash impairment charges |
|
— |
|
156,690 |
||||
|
Other non-cash adjustments |
|
— |
|
1,729 |
||||
|
Changes in assets and liabilities |
|
(43,728 |
) |
|
103,604 |
|||
|
Net cash provided by operating activities |
|
$ |
21,931 |
|
$ |
268,460 |
||
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
(10,000 |
) |
|
(9,996 |
) |
||
|
Maturities of marketable securities |
|
— |
|
10,000 |
||||
|
Proceeds from called marketable securities |
|
— |
|
24,996 |
||||
|
Purchases of property and equipment |
|
(94,810 |
) |
|
(93,253 |
) |
||
|
Proceeds from sales of property and equipment |
|
94,802 |
|
16,702 |
||||
|
Proceeds from the sale of a business |
|
— |
|
5,000 |
||||
|
Issuance of notes receivable, net of collection |
|
(11,470 |
) |
|
5,289 |
|||
|
Net cash used in investing activities |
|
$ |
(21,478 |
) |
|
$ |
(41,262 |
) |
|
Financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from debt |
|
— |
|
50,000 |
||||
|
Debt principal repayments |
|
(8,922 |
) |
|
(83,433 |
) |
||
|
Cash dividends paid |
|
(23,804 |
) |
|
(23,712 |
) |
||
|
Repurchases of common stock |
|
(2,730 |
) |
|
(885 |
) |
||
|
Contributions from non-controlling partners |
|
20,126 |
|
11,875 |
||||
|
Distributions to non-controlling partners |
|
(9,514 |
) |
|
(11,810 |
) |
||
|
Other financing activities, net |
|
398 |
|
307 |
||||
|
Net cash used in financing activities |
|
$ |
(24,446 |
) |
|
$ |
(57,658 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
$ |
(23,993 |
) |
|
$ |
169,540 |
|
|
Cash, cash equivalents and |
|
437,648 |
|
268,108 |
||||
|
Cash, cash equivalents and |
|
$ |
413,655 |
|
$ |
437,648 |
||
|
Less: Cash, cash equivalents and |
|
(18,008 |
) |
|
(12,356 |
) |
||
|
Cash and cash equivalents of continuing operations at end of period |
|
$ |
395,647 |
|
$ |
425,292 |
||
Non-GAAP Financial Information
The tables below contain financial information calculated other than in accordance with
- Other costs which include a legal settlement charge, legal and accounting investigation fees, divestiture expenses and restructuring charges;
- Non-cash impairments related to goodwill and investments in affiliates in 2020; and
- Gains on sales of property.
We provide adjusted income (loss) before provision for (benefit from) income taxes from continuing operations, adjusted provision for (benefit from) income taxes, adjusted net income (loss) from discontinued operations attributable to Granite Construction Incorporated, adjusted net income from continuing operations attributable to Granite Construction Incorporated, adjusted net income attributable to Granite Construction Incorporated, adjusted diluted weighted average shares of common stock, and adjusted diluted net income per share attributable to common shareholders, non-GAAP measures, to indicate the impact of the following:
- Other costs which include a legal settlement charge, legal and accounting investigation fees, divestiture expenses and restructuring charges;
- Non-cash impairments related to goodwill and investments in affiliates in 2020;
- Gains on sales of property;
- Transaction costs which includes acquired intangible amortization expenses and acquisition related depreciation related to the acquisition of Layne and LiquiForce;
- Amortization of debt discount related to our 2.75% Convertible Notes; and
- The impact of the purchased equity derivative instrument which offsets any potential-dilution from the 2.75% Convertible Notes above the
$31.47 conversion price up to a share price of$53.44 .
Management believes that these additional non-GAAP financial measures facilitate comparisons between industry peer companies and management uses these non-GAAP financial measures in evaluating the Company's performance. However, the reader is cautioned that any non-GAAP financial measures provided by the Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with
|
GRANITE CONSTRUCTION INCORPORATED EBITDA(1) (Unaudited - dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
|||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Continuing Operations - EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Granite Construction Incorporated from continuing operations |
|
$ |
6,814 |
|
$ |
4,836 |
|
$ |
(577 |
) |
|
$ |
19,282 |
|||
|
Depreciation, depletion and amortization expense from continuing operations(2) |
|
18,583 |
|
17,528 |
|
70,777 |
|
65,939 |
||||||||
|
(Benefit from) provision for income taxes from continuing operations |
|
4,586 |
|
9,300 |
|
(1,237 |
) |
|
9,927 |
|||||||
|
Interest expense, net of interest income from continuing operations |
|
3,792 |
|
5,617 |
|
19,104 |
|
20,849 |
||||||||
|
EBITDA from continuing operations(1) |
|
$ |
33,775 |
|
$ |
37,281 |
|
$ |
88,067 |
|
$ |
115,997 |
||||
|
EBITDA margin from continuing operations(1)(3) |
|
4.9 |
% |
|
4.5 |
% |
|
2.9 |
% |
|
3.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations - ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs |
|
$ |
10,364 |
|
$ |
8,195 |
|
$ |
95,155 |
|
$ |
36,964 |
||||
|
Gain on sale of property related to continuing operations |
|
(19,791 |
) |
|
— |
|
(19,791 |
) |
|
— |
||||||
|
Adjusted EBITDA from continuing operations(1) |
|
$ |
24,348 |
|
$ |
45,476 |
|
$ |
163,431 |
|
$ |
152,961 |
||||
|
Adjusted EBITDA margin from continuing operations(1)(3) |
|
3.6 |
% |
|
5.5 |
% |
|
5.4 |
% |
|
4.9 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations - EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from discontinued operations |
|
$ |
(20,027 |
) |
|
$ |
3,174 |
|
$ |
10,673 |
|
$ |
(164,399 |
) |
||
|
Depreciation, depletion and amortization expense from discontinued operations(2) |
|
9,781 |
|
10,977 |
|
39,556 |
|
48,010 |
||||||||
|
Provision for (benefit from) income taxes from discontinued operations |
|
13,059 |
|
(4,362 |
) |
|
20,950 |
|
(10,209 |
) |
||||||
|
Interest expense, net of interest income from discontinued operations |
|
489 |
|
399 |
|
459 |
|
255 |
||||||||
|
EBITDA from discontinued operations(1) |
|
$ |
3,302 |
|
$ |
10,188 |
|
$ |
71,638 |
|
$ |
(126,343 |
) |
|||
|
EBITDA margin from discontinued operations(1)(3) |
|
2.7 |
% |
|
8.9 |
% |
|
14.6 |
% |
|
(29.1 |
)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations - ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related to discontinued operations |
|
4,432 |
|
(94 |
) |
|
6,196 |
|
125 |
|||||||
|
Gain on sale of property related to discontinued operations |
|
— |
|
— |
|
(29,688 |
) |
|
— |
|||||||
|
Non-cash impairment charges related to discontinued operations |
|
— |
|
— |
|
— |
|
156,690 |
||||||||
|
Adjusted EBITDA from discontinued operations(1) |
|
$ |
7,734 |
|
$ |
10,094 |
|
$ |
48,146 |
|
$ |
30,472 |
||||
|
Adjusted EBITDA margin from discontinued operations(1)(3) |
|
6.3 |
% |
|
8.8 |
% |
|
9.8 |
% |
|
7.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Operations - EBITDA & ADJUSTED EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1) |
|
$ |
37,077 |
|
$ |
47,469 |
|
$ |
159,705 |
|
$ |
(10,346 |
) |
|||
|
EBITDA margin(1)(3) |
|
4.6 |
% |
|
5.0 |
% |
|
4.6 |
% |
|
(0.3 |
)% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(1) |
|
$ |
32,082 |
|
$ |
55,570 |
|
$ |
211,577 |
|
$ |
183,433 |
||||
|
Adjusted EBITDA margin(1)(3) |
|
4.0 |
% |
|
5.9 |
% |
|
6.0 |
% |
|
5.1 |
% |
||||
(1) We define EBITDA from continuing operations as
(2) Depreciation, depletion and amortization expense previously reported for the three months and year ended December 31, 2020 included expenses of
(3) Represents EBITDA or adjusted EBITDA divided by revenue for the respective period. For EBITDA and adjusted EBITDA margin from continuing operations, revenue from continuing operations was
|
GRANITE CONSTRUCTION INCORPORATED Adjusted Net (Loss) Income Reconciliation (Unaudited - in thousands, except per share data) |
||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
|
Years Ended December 31, |
|
||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Income (loss) before provision for (benefit from) income taxes from continuing operations |
|
$ |
4,180 |
|
$ |
11,813 |
|
$ |
(9,496 |
) |
|
$ |
8,145 |
|||
|
Other costs |
|
10,364 |
|
8,195 |
|
95,155 |
|
36,964 |
||||||||
|
Amortization of debt discount |
|
1,811 |
|
1,696 |
|
7,051 |
|
6,606 |
||||||||
|
Gain on sale of property |
|
(19,791 |
) |
|
— |
|
(19,791 |
) |
|
— |
||||||
|
Adjusted income (loss) before (benefit from) provision for income taxes from continuing operations |
|
$ |
(3,436 |
) |
|
$ |
21,704 |
|
$ |
72,919 |
|
$ |
51,715 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes |
|
$ |
4,586 |
|
$ |
9,300 |
|
$ |
(1,237 |
) |
|
$ |
9,927 |
|||
|
Tax effect of adjusting items (1) |
|
(2,954 |
) |
|
2,571 |
|
20,454 |
|
11,328 |
|||||||
|
Adjusted provision for (benefit from) income taxes |
|
$ |
1,632 |
|
$ |
11,871 |
|
$ |
19,217 |
|
$ |
21,255 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Granite Construction Incorporated from discontinued operations |
|
$ |
(20,027 |
) |
|
$ |
3,174 |
|
$ |
10,673 |
|
$ |
(164,399 |
) |
||
|
Other costs |
|
3,279 |
|
(70 |
) |
|
4,584 |
|
93 |
|||||||
|
Non-cash impairment charges |
|
— |
|
— |
|
— |
|
156,690 |
||||||||
|
Transaction costs |
|
4,121 |
|
4,231 |
|
16,110 |
|
17,194 |
||||||||
|
Tax basis difference on held-for-sale entities |
|
12,400 |
|
— |
|
12,400 |
|
— |
||||||||
|
Gain on sale of property |
|
— |
|
— |
|
(21,969 |
) |
|
— |
|||||||
|
Adjusted net income (loss) attributable to Granite Construction Incorporated from discontinued operations |
|
$ |
(227 |
) |
|
$ |
7,335 |
|
$ |
21,798 |
|
$ |
9,578 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Granite Construction Incorporated from continuing operations |
|
$ |
6,814 |
|
$ |
4,836 |
|
$ |
(577 |
) |
|
$ |
19,282 |
|||
|
After-tax adjusting items |
|
(4,662 |
) |
|
7,320 |
|
61,961 |
|
32,242 |
|||||||
|
Adjusted net income attributable to Granite Construction Incorporated from continuing operations |
|
$ |
2,152 |
|
$ |
12,156 |
|
$ |
61,384 |
|
$ |
51,524 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income attributable to Granite Construction |
|
$ |
1,925 |
|
$ |
19,491 |
|
$ |
83,182 |
|
$ |
61,102 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares of common stock |
|
47,838 |
|
46,275 |
|
45,788 |
|
46,203 |
||||||||
|
Add: dilutive effect of restricted stock units and 2.75% Convertible Notes (2) |
|
— |
|
— |
|
1,812 |
|
— |
||||||||
|
Less: 2.75% Convertible Notes dilutive effect (3) |
|
(1,434 |
) |
|
— |
|
(1,279 |
) |
|
— |
||||||
|
Adjusted diluted weighted average shares of common stock |
|
46,404 |
|
46,275 |
|
46,321 |
|
46,203 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share attributable to common shareholders for continuing operations |
|
$ |
0.05 |
|
$ |
0.26 |
|
$ |
1.33 |
|
$ |
1.12 |
||||
|
Adjusted diluted earnings per share attributable to common shareholders for discontinued operations |
|
— |
|
0.16 |
|
0.47 |
|
0.21 |
||||||||
|
Adjusted diluted earnings per share attributable to common shareholders |
|
$ |
0.05 |
|
$ |
0.42 |
|
$ |
1.80 |
|
$ |
1.33 |
||||
(1) The tax effect of adjusting items was calculated using the Company’s statutory tax rate.
(2) Represents the dilutive effect on adjusted net income attributable to Granite Construction Incorporated for the year ended December 31, 2021 of 533,000 shares related to restricted stock units and 1,279,000 shares related to the 2.75% Convertible Notes potentially converting into shares.
(3) When calculating diluted net income (loss) per share attributable to common shareholders,
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224006123/en/
Investors
Wenjun Xu, 831-761-7861
Or
Media
Erin Kuhlman, 831-768-4111
Source: Granite Construction Incorporated
