Granite Reports Fourth Quarter and Fiscal Year 2024 Results
- Q4 revenue increased 5% year-over-year to
$977 million , and fiscal year revenue increased 14% year-over-year to$4.0 billion - Q4 diluted EPS of
$0.84 and adjusted diluted EPS (1) of$1.23 , and fiscal year diluted EPS of$2.62 and adjusted diluted EPS (1) of$4.82 - Fiscal year operating cash flow of
$456 million , or 11.4% of revenue - Committed and Awarded Projects ("CAP") (2) of
$5.3 billion
Fourth Quarter 2024 Results
Net income totaled
- Revenue increased
$43 million to$977 million compared to$934 million for the same period in the prior year. - Gross profit increased
$57 million to$151 million compared to$94 million for the same period in the prior year. - Selling, general and administrative (“SG&A”) expenses totaled
$84 million , or 8.6% of revenue, compared to$82 million , or 8.8% of revenue, for the same period in the prior year. - Adjusted EBITDA (1) increased
$33 million to$109 million compared to$76 million for the same period in the prior year.
"I want to thank our teams across the company for all of their hard work and dedication. 2024 was a record year for Granite,” said Kyle Larkin, Granite President and Chief Executive Officer. “We set company records for revenue, adjusted net income, adjusted EBITDA, operating cash flow and safety. We expect to continue our organic revenue growth, execute on M&A, expand margins and generate consistent cash flow as we drive toward our 2027 targets. Our markets continue to be robust, as high levels of public funding and strong private investment are creating attractive opportunities for both our construction and materials segments. Against this backdrop, I believe we can meet our organic growth guidance while also growing CAP during 2025. In addition, with
Fiscal Year 2024 Results
Net income totaled
- Revenue increased
$498 million to$4.0 billion compared to$3.5 billion in the prior year. - Gross profit increased
$177 million to$573 million compared to$396 million in the prior year. - SG&A expenses totaled
$334 million , or 8.3% of revenue, compared to$294 million , or 8.4% of revenue, in the prior year. - Adjusted EBITDA (1) increased
$123 million to$402 million compared to$279 million for the same period in the prior year.
|
(1) |
Adjusted net income, adjusted diluted earnings 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. |
|
|
(2) |
CAP is comprised of revenue we expect to record in the future on executed 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. |
| Fourth Quarter and Fiscal Year 2024 Segment Results (Unaudited - dollars in thousands) | |||||||||||||||||||||||||||
|
Construction Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||||||
|
Revenue |
$ |
821,353 |
|
|
$ |
793,727 |
|
|
$ |
27,626 |
|
3.5 |
% |
|
$ |
3,415,225 |
|
|
$ |
2,992,254 |
|
|
$ |
422,971 |
|
14.1 |
% |
|
Gross profit |
$ |
128,117 |
|
|
$ |
72,034 |
|
|
$ |
56,083 |
|
77.9 |
% |
|
$ |
491,002 |
|
|
$ |
325,055 |
|
|
$ |
165,947 |
|
51.1 |
% |
|
Gross profit as a percent of revenue |
|
15.6 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
14.4 |
% |
|
|
10.9 |
% |
|
|
|
|
||||
|
Committed and Awarded Projects |
December 31, 2024 |
|
September 30, 2024 |
|
Change - Quarter over Quarter |
|
December 31, 2023 |
|
Change - Year over Year |
|||||||||||||
|
Public |
$ |
4,120,821 |
|
$ |
4,365,669 |
|
$ |
(244,848 |
) |
|
(5.6 |
)% |
|
$ |
4,368,904 |
|
$ |
(248,083 |
) |
|
(5.7 |
)% |
|
Private |
|
1,175,246 |
|
|
1,254,126 |
|
|
(78,880 |
) |
|
(6.3 |
)% |
|
|
1,176,850 |
|
|
(1,604 |
) |
|
(0.1 |
)% |
|
Total |
$ |
5,296,067 |
|
$ |
5,619,795 |
|
$ |
(323,728 |
) |
|
(5.8 |
)% |
|
$ |
5,545,754 |
|
$ |
(249,687 |
) |
|
(4.5 |
)% |
Construction revenue increased 3% and 14% year-over-year in the three months and year ended December 31, 2024, respectively. The revenue increase was driven by a strong market environment, revenue from acquired companies and more favorable weather conditions early in the year. Construction gross profit and gross profit margin increased significantly in both the three months and year ended December 31, 2024, respectively, driven by increased revenue and improved project execution across our higher quality project portfolio.
CAP totaled
|
Materials Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
||||||||
|
Revenue |
$ |
155,950 |
|
|
$ |
139,971 |
|
|
$ |
15,979 |
|
11.4 |
% |
|
$ |
592,349 |
|
|
$ |
516,884 |
|
|
$ |
75,465 |
|
14.6 |
% |
|
Gross profit |
$ |
22,635 |
|
|
$ |
22,277 |
|
|
$ |
358 |
|
1.6 |
% |
|
$ |
81,695 |
|
|
$ |
71,344 |
|
|
$ |
10,351 |
|
14.5 |
% |
|
Gross profit as a percent of revenue |
|
14.5 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
13.8 |
% |
|
|
13.8 |
% |
|
|
|
|
||||
|
Cash gross profit(1) |
$ |
37,068 |
|
|
$ |
30,529 |
|
|
$ |
6,539 |
|
21.4 |
% |
|
$ |
126,786 |
|
|
$ |
98,110 |
|
|
$ |
28,676 |
|
29.2 |
% |
|
Cash gross profit as a percent of revenue(1) |
|
23.8 |
% |
|
|
21.8 |
% |
|
|
|
|
|
|
21.4 |
% |
|
|
19.0 |
% |
|
|
|
|
||||
|
(1) |
Materials segment cash gross profit and cash gross profit as a percent of revenue are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables. |
Materials revenue for the fourth quarter and fiscal year ended December 31, 2024, respectively, increased compared to the same periods in the prior year, driven primarily by acquired businesses and higher asphalt and aggregate prices. Gross profit margin decreased in the fourth quarter and was flat for the fiscal year ended December 31, 2024, year-over-year, mainly due to increased depreciation, depletion and amortization. Cash gross profit margin, which excludes depreciation, depletion and amortization, increased in both the fourth quarter and fiscal year ended December 31, 2024, respectively, demonstrating the progress made in 2024 by the materials business following the internal reorganization and the addition of acquired businesses.
Outlook
Our guidance for 2025 is described below:
- Revenue in the range of
$4.2 billion to$4.4 billion - Adjusted EBITDA margin in the range of 11.0% to 12.0%
- SG&A expense of approximately 9.0% of revenue, inclusive of an estimated
$45 million of stock-based compensation expense - Mid-20s effective tax rate for adjusted net income
- Capital expenditures of approximately
$140 million to$160 million
We do not provide a reconciliation of forward-looking adjusted EBITDA margin or the most directly comparable forward-looking GAAP measure of net income attributable to Granite Construction Incorporated because we cannot predict with a reasonable degree of certainty and without unreasonable efforts certain components or excluded items that are inherently uncertain and depend on various factors. For these reasons, we are unable to assess the potential significance of the unavailable information.
“Our guidance reflects our belief in the strength of our project portfolio and market environment as we enter 2025,” said Executive Vice President and Chief Financial Officer Staci Woolsey. “The projected revenue growth is consistent with our 2027 organic revenue growth target of 6.0% to 8.0%. We also expect to continue to expand margins while maintaining SG&A discipline to reach our range of adjusted EBITDA margin of 11.0% to 12.0% in 2025, led by an increase in construction segment gross profit margin. Finally, we expect to invest in our business through capital expenditures in a range of
Conference Call
Granite will conduct a conference call today, February 13, 2025, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results of the quarter and fiscal year ended December 31, 2024. The Company invites investors to listen to a live audio webcast of the investor conference call on its Investor Relations website, https://investor.graniteconstruction.com. The investor conference call will also be available by calling 1-877-328-5503; international callers may dial 1-412-317-5472. An archive of the webcast will be available on Granite's Investor Relations website approximately one hour after the call. A replay will be available after the live call through February 20, 2025, by calling 1-877-344-7529, replay access code 7965862; 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 vertically-integrated civil contractors and construction materials producers in
Forward-looking Statements
Any statements contained in this press release that are not based on historical facts, including statements regarding future events, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, our expectation that we will continue our organic revenue growth, execute on M&A, expand margins and generate consistent cash flow, that high levels of public funding and strong private investment are creating attractive opportunities, our expectation to meet our organic growth guidance while growing CAP in 2025, that we are well positioned to capitalize on M&A opportunities and strategic investments, our expectation that several significant project awards will be added to CAP during the first half of 2025, our belief that there are substantial opportunities to build CAP in 2025, 2025 fiscal year guidance for revenue, adjusted EBITDA margin, SG&A expense, estimated stock based compensation expense, effective tax rate and capital expenditures, including strategic materials investments, our guidance, including our 2027 organic revenue growth target, continued expansion of margins while maintaining SG&A discipline to reach our Adjusted EBITDA margin guidance in 2025 led by an increase in construction segment gross margin, 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, demand, strategic plans, shareholder value, outcomes, outlook, our expectation that we will continue our organic revenue growth, execute on M&A, expand margins and generate consistent cash flow, that high levels of public funding and strong private investment are creating attractive opportunities, our expectation to meet our organic growth guidance while growing CAP in 2025, that we are well positioned to capitalize on M&A opportunities and strategic investments, our expectation that several significant project awards will be added to CAP during the first half of 2025, our belief that there are substantial opportunities to build CAP in 2025, 2025 fiscal year guidance for revenue, adjusted EBITDA margin, SG&A expense, estimated stock based compensation expense, effective tax rate and capital expenditures, including strategic materials investments, our guidance, including our 2027 organic revenue growth target, continued expansion of margins while maintaining SG&A discipline to reach our Adjusted EBITDA margin guidance in 2025 led by an increase in construction segment gross margin, 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 press 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 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share and per share data) |
|||
|
|
December 31, 2024 |
|
December 31, 2023 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Short-term marketable securities |
7,311 |
|
35,863 |
|
Receivables, net |
511,742 |
|
598,705 |
|
Contract assets |
328,353 |
|
262,987 |
|
Inventories |
108,175 |
|
103,898 |
|
Equity in unconsolidated construction joint ventures |
140,928 |
|
171,233 |
|
Other current assets |
41,824 |
|
53,102 |
|
Total current assets |
1,716,663 |
|
1,643,451 |
|
Property and equipment, net |
716,184 |
|
662,864 |
|
Investments in affiliates |
94,031 |
|
92,910 |
|
Goodwill |
214,465 |
|
155,004 |
|
Intangible assets |
127,886 |
|
117,322 |
|
Right of use assets |
89,791 |
|
78,176 |
|
Deferred income taxes, net |
— |
|
8,179 |
|
Other noncurrent assets |
66,635 |
|
55,634 |
|
Total assets |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Current maturities of long-term debt |
|
|
|
|
Accounts payable |
407,223 |
|
408,363 |
|
Contract liabilities |
299,671 |
|
243,848 |
|
Accrued expenses and other current liabilities |
323,956 |
|
337,740 |
|
Total current liabilities |
1,031,959 |
|
1,029,883 |
|
Long-term debt |
737,939 |
|
614,781 |
|
Long-term lease liabilities |
73,638 |
|
63,548 |
|
Deferred income taxes, net |
13,874 |
|
3,708 |
|
Other long-term liabilities |
88,882 |
|
74,654 |
|
Commitments and contingencies |
|
|
|
|
Equity: |
|
|
|
|
Preferred stock, |
— |
|
— |
|
Common stock, |
434 |
|
439 |
|
Additional paid-in capital |
410,739 |
|
474,134 |
|
Accumulated other comprehensive income (loss) |
(582) |
|
881 |
|
Retained earnings |
604,635 |
|
501,844 |
|
Total Granite Construction Incorporated shareholders’ equity |
1,015,226 |
|
977,298 |
|
Non-controlling interests |
64,137 |
|
49,668 |
|
Total equity |
1,079,363 |
|
1,026,966 |
|
Total liabilities and equity |
|
|
|
|
GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total revenue |
$ |
977,303 |
|
|
$ |
933,698 |
|
|
$ |
4,007,574 |
|
|
$ |
3,509,138 |
|
|
Total cost of revenue |
|
826,551 |
|
|
|
839,387 |
|
|
|
3,434,877 |
|
|
|
3,112,739 |
|
|
Gross profit |
|
150,752 |
|
|
|
94,311 |
|
|
|
572,697 |
|
|
|
396,399 |
|
|
Selling, general and administrative expenses |
|
84,467 |
|
|
|
81,987 |
|
|
|
334,162 |
|
|
|
294,466 |
|
|
Other costs, net |
|
10,158 |
|
|
|
12,244 |
|
|
|
39,936 |
|
|
|
50,217 |
|
|
Gain on sales of property and equipment, net |
|
(4,417 |
) |
|
|
(20,553 |
) |
|
|
(8,764 |
) |
|
|
(28,346 |
) |
|
Operating income |
|
60,544 |
|
|
|
20,633 |
|
|
|
207,363 |
|
|
|
80,062 |
|
|
Other (income) expense: |
|
|
|
|
|
|
|
||||||||
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
|
Interest income |
|
(6,534 |
) |
|
|
(6,251 |
) |
|
|
(24,349 |
) |
|
|
(17,538 |
) |
|
Interest expense |
|
7,863 |
|
|
|
6,563 |
|
|
|
29,188 |
|
|
|
18,462 |
|
|
Equity in income of affiliates, net |
|
(4,061 |
) |
|
|
(6,370 |
) |
|
|
(16,982 |
) |
|
|
(25,748 |
) |
|
Other income, net |
|
(2,888 |
) |
|
|
(3,307 |
) |
|
|
(4,238 |
) |
|
|
(6,020 |
) |
|
Total other (income) expense, net |
|
(5,620 |
) |
|
|
(9,365 |
) |
|
|
11,171 |
|
|
|
20,208 |
|
|
Income before income taxes |
|
66,164 |
|
|
|
29,998 |
|
|
|
196,192 |
|
|
|
59,854 |
|
|
Provision for income taxes |
|
19,113 |
|
|
|
8,289 |
|
|
|
55,749 |
|
|
|
30,267 |
|
|
Net income |
|
47,051 |
|
|
|
21,709 |
|
|
|
140,443 |
|
|
|
29,587 |
|
|
Amount attributable to non-controlling interests |
|
(5,568 |
) |
|
|
4,289 |
|
|
|
(14,097 |
) |
|
|
14,012 |
|
|
Net income attributable to Granite Construction Incorporated |
$ |
41,483 |
|
|
$ |
25,998 |
|
|
$ |
126,346 |
|
|
$ |
43,599 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.95 |
|
|
$ |
0.59 |
|
|
$ |
2.88 |
|
|
$ |
0.99 |
|
|
Diluted |
$ |
0.84 |
|
|
$ |
0.55 |
|
|
$ |
2.62 |
|
|
$ |
0.97 |
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
43,644 |
|
|
|
43,934 |
|
|
|
43,846 |
|
|
|
43,879 |
|
|
Diluted |
|
52,954 |
|
|
|
53,605 |
|
|
|
52,514 |
|
|
|
52,565 |
|
|
GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousands) |
|||||||
|
Years Ended December 31, |
|
2024 |
|
|
|
2023 |
|
|
Operating activities: |
|
|
|
||||
|
Net income |
$ |
140,443 |
|
|
$ |
29,587 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation, depletion and amortization |
|
126,331 |
|
|
|
92,270 |
|
|
Amortization related to long-term debt |
|
4,501 |
|
|
|
2,390 |
|
|
Loss on debt extinguishment |
|
27,552 |
|
|
|
51,052 |
|
|
Gain on sales of property and equipment, net |
|
(8,764 |
) |
|
|
(28,346 |
) |
|
Deferred income taxes |
|
13,655 |
|
|
|
26,556 |
|
|
Stock-based compensation |
|
19,595 |
|
|
|
10,477 |
|
|
Equity in net loss from unconsolidated construction joint ventures |
|
5,102 |
|
|
|
18,617 |
|
|
Net income from affiliates |
|
(16,982 |
) |
|
|
(25,748 |
) |
|
Other non-cash adjustments |
|
3,958 |
|
|
|
5,695 |
|
|
Changes in assets and liabilities |
|
140,952 |
|
|
|
1,157 |
|
|
Net cash provided by operating activities |
$ |
456,343 |
|
|
$ |
183,707 |
|
|
Investing activities: |
|
|
|
||||
|
Purchases of marketable securities |
$ |
(10,977 |
) |
|
$ |
(9,740 |
) |
|
Maturities of marketable securities |
|
38,000 |
|
|
|
40,000 |
|
|
Purchases of property and equipment |
|
(136,405 |
) |
|
|
(140,384 |
) |
|
Proceeds from sales of property and equipment |
|
13,852 |
|
|
|
38,109 |
|
|
Acquisitions of businesses, net of cash acquired |
|
(121,178 |
) |
|
|
(294,018 |
) |
|
Cash paid for purchase price adjustments on business acquisition |
|
(13,183 |
) |
|
|
— |
|
|
Collection of notes receivable |
|
— |
|
|
|
5,198 |
|
|
Other investing activities |
|
1,335 |
|
|
|
1,545 |
|
|
Net cash used in investing activities |
$ |
(228,556 |
) |
|
$ |
(359,290 |
) |
|
Financing activities: |
|
|
|
||||
|
Proceeds from issuance of convertible notes |
$ |
373,750 |
|
|
$ |
373,750 |
|
|
Proceeds from long-term debt |
|
— |
|
|
|
305,000 |
|
|
Debt principal repayments |
|
(310,498 |
) |
|
|
(305,118 |
) |
|
Capped call transactions |
|
(46,046 |
) |
|
|
(53,035 |
) |
|
Redemption of warrants |
|
(497 |
) |
|
|
(13,201 |
) |
|
Debt issuance costs |
|
(10,474 |
) |
|
|
(10,865 |
) |
|
Cash dividends paid |
|
(22,813 |
) |
|
|
(22,811 |
) |
|
Repurchases of common stock |
|
(50,631 |
) |
|
|
(4,124 |
) |
|
Contributions from non-controlling partners |
|
24,000 |
|
|
|
43,300 |
|
|
Distributions to non-controlling partners |
|
(25,587 |
) |
|
|
(14,224 |
) |
|
Other financing activities, net |
|
1,676 |
|
|
|
583 |
|
|
Net cash provided by (used in) financing activities |
$ |
(67,120 |
) |
|
$ |
299,255 |
|
|
Net increase in cash and cash equivalents |
$ |
160,667 |
|
|
$ |
123,672 |
|
|
Cash and cash equivalents at beginning of period |
|
417,663 |
|
|
|
293,991 |
|
|
Cash and cash equivalents at end of period |
$ |
578,330 |
|
|
$ |
417,663 |
|
Non-GAAP Financial Information
The tables below contain financial information calculated other than in accordance with
We provide adjusted income before income taxes, adjusted provision for income taxes, adjusted net income attributable to Granite Construction Incorporated, adjusted diluted weighted average shares of common stock and adjusted diluted earnings per share attributable to common shareholders, non-GAAP measures, to indicate the impact of the following:
- Other costs, net as described above;
- Transaction costs which include acquired intangible amortization expense and acquisition-related depreciation;
- Stock-based compensation expense;
- Loss on debt extinguishment; and
- Income taxes related to establishment of valuation allowance in 2023.
We also provide materials segment cash gross profit to exclude the impact of the segment’s depreciation, depletion and amortization from the segment’s gross profit. Management believes that non-GAAP financial measures such as materials segment cash gross profit are useful in evaluating operating performance and are regularly used by securities analysts, institutional investors and other interested parties, and that such supplemental measures facilitate comparisons between companies that have different capital and financing structures.
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 GAAP. Items that may have a significant impact on the Company's financial position, results of operations and cash flows must be considered when assessing the Company's actual financial condition and performance regardless of whether these items are included in non-GAAP financial measures. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures provided by the Company may not be comparable to similar measures provided by other companies.
|
GRANITE CONSTRUCTION INCORPORATED EBITDA AND ADJUSTED EBITDA(1) (Unaudited - dollars in thousands) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
EBITDA: |
|
|
|
|
|
|
|
||||||||
|
Net income attributable to Granite Construction Incorporated |
$ |
41,483 |
|
|
$ |
25,998 |
|
|
$ |
126,346 |
|
|
$ |
43,599 |
|
|
Net income margin(2) |
4.2 |
% |
|
|
2.8 |
% |
|
|
3.2 |
% |
|
1.2 |
% |
||
|
|
|
|
|
|
|
|
|
||||||||
|
Depreciation, depletion and amortization expense(3) |
|
34,189 |
|
|
|
27,144 |
|
|
|
127,721 |
|
|
|
92,866 |
|
|
Provision for income taxes |
|
19,113 |
|
|
|
8,289 |
|
|
|
55,749 |
|
|
|
30,267 |
|
|
Interest expense, net |
|
1,329 |
|
|
|
312 |
|
|
|
4,839 |
|
|
|
924 |
|
|
EBITDA(1) |
$ |
96,114 |
|
|
$ |
61,743 |
|
|
$ |
314,655 |
|
|
$ |
167,656 |
|
|
EBITDA margin(1)(2) |
|
9.8 |
% |
|
|
6.6 |
% |
|
|
7.9 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
||||||||
|
Other costs, net |
$ |
10,158 |
|
|
$ |
12,244 |
|
|
$ |
39,936 |
|
|
$ |
50,217 |
|
|
Stock-based compensation(4) |
|
2,267 |
|
|
|
1,847 |
|
|
|
19,595 |
|
|
|
10,477 |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
|
Adjusted EBITDA(1) |
$ |
108,539 |
|
|
$ |
75,834 |
|
|
$ |
401,738 |
|
|
$ |
279,402 |
|
|
Adjusted EBITDA margin(1)(2) |
11.1 |
% |
|
8.1 |
% |
|
|
10.0 |
% |
|
8.0 |
% |
|||
|
(1) |
We define EBITDA as GAAP net income attributable to Granite Construction Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and amortization. Adjusted EBITDA and adjusted EBITDA margin exclude the impact of Other costs, net, loss on debt extinguishment and stock-based compensation, as described above. |
|
(2) |
Represents net income, EBITDA and adjusted EBITDA divided by consolidated revenue of |
|
(3) |
Amount includes the sum of depreciation, depletion and amortization which are classified as cost of revenue and selling, general and administrative expenses in the consolidated statements of operations. |
|
(4) |
In the first quarter of 2024, we revised the adjusted EBITDA calculation to exclude the impact of stock-based compensation expense. Prior period adjusted EBITDA calculations have been recast to conform to current presentation. |
|
GRANITE CONSTRUCTION INCORPORATED ADJUSTED NET INCOME RECONCILIATION (Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Income before income taxes |
$ |
66,164 |
|
|
$ |
29,998 |
|
|
$ |
196,192 |
|
|
$ |
59,854 |
|
|
Other costs, net |
|
10,158 |
|
|
|
12,244 |
|
|
|
39,936 |
|
|
|
50,217 |
|
|
Transaction costs |
|
6,059 |
|
|
|
1,660 |
|
|
|
21,436 |
|
|
|
6,706 |
|
|
Stock-based compensation(1) |
|
2,267 |
|
|
|
1,847 |
|
|
|
19,595 |
|
|
|
10,477 |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
|
Adjusted income before income taxes |
$ |
84,648 |
|
|
$ |
45,749 |
|
|
$ |
304,711 |
|
|
$ |
178,306 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Provision for income taxes |
$ |
19,113 |
|
|
$ |
8,289 |
|
|
$ |
55,749 |
|
|
$ |
30,267 |
|
|
Tax expense to establish valuation allowance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,542 |
) |
|
Tax effect of adjusting items(2) |
|
4,308 |
|
|
|
4,095 |
|
|
|
20,902 |
|
|
|
16,215 |
|
|
Adjusted provision for income taxes |
$ |
23,421 |
|
|
$ |
12,384 |
|
|
$ |
76,651 |
|
|
$ |
44,940 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income attributable to Granite Construction Incorporated |
$ |
41,483 |
|
|
$ |
25,998 |
|
|
$ |
126,346 |
|
|
$ |
43,599 |
|
|
After-tax adjusting items |
|
14,176 |
|
|
|
11,656 |
|
|
|
87,617 |
|
|
|
103,779 |
|
|
Adjusted net income attributable to Granite Construction Incorporated |
$ |
55,659 |
|
|
$ |
37,654 |
|
|
$ |
213,963 |
|
|
$ |
147,378 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted weighted average shares of common stock |
|
52,954 |
|
|
|
53,605 |
|
|
|
52,514 |
|
|
|
52,565 |
|
|
Less: dilutive effect of convertible notes(3) |
|
(7,830 |
) |
|
|
(9,099 |
) |
|
|
(8,103 |
) |
|
|
(8,103 |
) |
|
Adjusted diluted weighted average shares of common stock |
|
45,124 |
|
|
|
44,506 |
|
|
|
44,411 |
|
|
|
44,462 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted net income per share attributable to common shareholders |
$ |
0.84 |
|
|
$ |
0.55 |
|
|
$ |
2.62 |
|
|
$ |
0.97 |
|
|
After-tax adjusting items per share attributable to common shareholders |
|
0.39 |
|
|
|
0.30 |
|
|
|
2.20 |
|
|
|
2.34 |
|
|
Adjusted diluted net income per share attributable to common shareholders |
$ |
1.23 |
|
|
$ |
0.85 |
|
|
$ |
4.82 |
|
|
$ |
3.31 |
|
|
(1) |
In the first quarter of 2024, we revised the adjusted net income calculation to exclude the impact of stock-based compensation expense. Prior period adjusted net income and diluted net income per share calculations have been recast to conform to current presentation. |
|
|
(2) |
The tax effect of adjusting items was calculated using the Company’s estimated annual statutory tax rate. The tax effect of adjusting items for the fiscal year ended December 31, 2024 includes an immaterial amount of the loss on debt extinguishment as it was almost entirely non-tax deductible. In addition, the fourth quarter and fiscal year ended December 31, 2024 excludes |
|
|
(3) |
When calculating diluted net income attributable to common shareholders, GAAP requires that we include potential share dilution from the convertible notes when not antidilutive. Granite entered into capped call transactions relating to both the 3.75% and 3.25% convertible notes to offset the dilutive impact of the convertible notes. The impact of the capped call transactions was excluded from the GAAP diluted net income attributable to common shareholders calculation as the impact would be antidilutive. For the purpose of calculating our adjusted diluted net income per share attributable to common shareholders, the dilutive effect of the convertible notes is removed to reflect the impact of the capped call transactions. |
|
GRANITE CONSTRUCTION INCORPORATED MATERIALS SEGMENT CASH GROSS PROFIT RECONCILIATION (Unaudited - in thousands) |
|||||||||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Gross profit |
$ |
22,635 |
|
|
$ |
22,277 |
|
|
$ |
24,648 |
|
|
$ |
81,695 |
|
|
$ |
71,344 |
|
|
$ |
65,613 |
|
|
Gross profit as a percent of revenue |
|
14.5 |
% |
|
|
15.9 |
% |
|
|
19.9 |
% |
|
|
13.8 |
% |
|
|
13.8 |
% |
|
|
13.2 |
% |
|
Depreciation, depletion and amortization |
|
14,433 |
|
|
|
8,252 |
|
|
|
5,785 |
|
|
|
45,091 |
|
|
|
26,766 |
|
|
|
23,948 |
|
|
Cash gross profit |
$ |
37,068 |
|
|
$ |
30,529 |
|
|
$ |
30,433 |
|
|
$ |
126,786 |
|
|
$ |
98,110 |
|
|
$ |
89,561 |
|
|
Cash gross profit as a percent of revenue |
|
23.8 |
% |
|
|
21.8 |
% |
|
|
24.5 |
% |
|
|
21.4 |
% |
|
|
19.0 |
% |
|
|
18.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212880506/en/
Investors
Wenjun Xu, 831-761-7861
Or
Media
Erin Kuhlman, 831-768-4111
Source: Granite Construction Incorporated
