Granite Reports Third Quarter 2019 Results
Highlights
Third Quarter Results
- Record quarterly revenue of
$1.1 billion , up 3.1 percent year-over-year - Net income of
$20.5 million ; adjusted net income of$27.5 million 1 - Strong core operational results impacted by Heavy Civil operating group performance
- Strategic review of Heavy Civil operating group complete
- Committed and Awarded Projects2 (CAP) totaled
$4.7 billion , up 44.5 percent year-over-year
“During the third quarter, strong core operational performance was dampened by a negative contribution from the Heavy Civil operating group primarily driven by disputed work,” said James H. Roberts, President and Chief Executive Officer at Granite Construction Incorporated. “Our core businesses capitalized on good weather this quarter combined with well-funded infrastructure markets. As we restore balance in Heavy Civil, a critical piece of the puzzle is resolution of ongoing disputes which continue to have a distorted impact on our cash flows and earnings. We have completed our strategic review of this business unit and have taken immediate action including:
- Changed operational management to align Heavy Civil operating group with construction and materials operations;
- Targeting revenue of no more than 15 percent of overall company revenue for this portfolio;
- Aggressively pursuing dispute avoidance and resolution;
- Implementing refined estimating and risk mitigation approach to project pricing; and
- Pursuing projects solely in markets with strategic, competitive advantages
“A critical component of our current and future success is consistent performance on projects at scale, in this case projects typically in a range of about
Third quarter 2019 and 2018 results include after-tax, acquisition-related expenses of
Selling, general & administrative (“SG&A”) expenses were
Cash and marketable securities increased to a total
The Company’s effective tax rate in the third quarter was 13.7 percent.
Third Quarter and Year-To-Date 2019 Segment Results
Transportation
- Third quarter 2019 revenue was
$598.6 million , compared to$610.8 million in last year’s quarter. Year-to-date 2019 revenue decreased 9.0 percent to$1.3 billion compared to$1.5 billion last year. The year-to-date revenue was impacted by inclement weather that spanned the first part of the year. - Third quarter 2019 gross profit was
$13.6 million , which included$69.3 million of Heavy Civil operating group losses. Third quarter 2018 gross profit of$71.0 million included$8.2 million of Heavy Civil operating group losses. Year-to-date gross loss was$(65.0) million , compared to a gross profit of$138.4 million last year. Challenges related to projects in our Heavy Civil operating group have negatively affected 2019 results, while the remaining construction and materials business in this segment performed at exceptional levels. - Segment CAP totaled nearly
$3.7 billion as of September 30, 2019, including$1.0 billion of construction management/general contractor (CMGC) and alternative procurement projects.
Water
- Third quarter 2019 revenue was
$135.9 million compared to$124.3 million in last year’s quarter. Year-to-date 2019 revenue was$348.0 million , compared to$216.0 million last year. The year-to-date revenue increases were primarily related to 2018 acquisitions, partially dampened by inclement weather experienced across our operations through May. - Third quarter 2019 gross profit was
$15.0 million compared to$24.1 million last year, with gross profit margin slightly lower at 11.1 percent. Year-to-date gross profit was$34.4 million , compared to$41.1 million last year. Year-to-date gross profit margin was 9.9 percent, down from 19.0 percent in 2018, which included non-recurring emergency work in the prior year. In the current year, gross profit was negatively impacted by a business acquired with the Layne Christensen Company acquisition that we recently divested. - Segment CAP totaled
$244.9 million as of September 30, 2019.
Specialty
- Third quarter 2019 revenue was
$224.5 million , compared to$190.8 million in last year’s quarter. Year-to-date 2019 revenue was$540.2 million , compared to$461.1 million last year. The revenue increases reflect robust private-market work in our site preparation, power and mining services end markets. On a year-to-date basis, the increase also included the impact related to an acquisition in 2018. - Third quarter 2019 gross profit was
$38.3 million compared to$28.1 million last year, with gross profit margin of 17.1 percent up from 14.7 percent last year. Year-to-date gross profit was$75.4 million , compared to$65.3 million last year, with gross profit margin relatively flat at 14.0 percent. - Segment CAP totaled
$746.6 million as of September 30, 2019.
Materials
- Third quarter 2019 revenue was
$129.1 million , compared to$129.6 million in last year’s quarter. Year-to-date 2019 revenue was$268.4 million , compared to$276.3 million last year. The modest year-to-date decline is attributable to inclement weather across the westernUnited States through May. - Third quarter 2019 gross profit was
$24.5 million , compared to$21.3 million last year, with gross profit margin of 19.0 percent, up from 16.4 percent in 2018. Year-to-date gross profit was$34.7 million , compared to$36.3 million last year, with gross profit margin of 12.9 percent, down slightly from 13.1 percent in 2018, as wet weather persisted through May and slowed plant productivity in the first half of 2019.
Outlook and Guidance
“The alignment of operational capabilities with strategic opportunities at scale will match and be integrated into how we approach our entire portfolio, with all of our businesses using and operating with and from the same playbook,” Roberts said. “These actions set us on a more defined path for future success. Granite has written its nearly century-long history by consistently balancing resources, opportunities, and risks. The actions we are taking are expected to restore balance and eliminate distractions, enabling our talented teams to execute end-market growth strategies and create more value for all of our stakeholders.
“Current operational momentum, robust market dynamics and our strong CAP combined with favorable weather patterns the rest of this year should allow our businesses to deliver positive results well into the fourth quarter. As we look ahead, these positive dynamics have us well positioned for 2020.”
While not providing guidance for the remainder of the year, our preliminary expectations for 2020 are:
- Mid-single digit consolidated revenue growth
- Adjusted EBITDA margin1 of 6.5 percent to 8.5 percent
|
(1) |
Adjusted net income (loss), adjusted diluted income (loss) per share, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), 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. |
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(2) |
CAP is comprised of unearned revenue and other awards, as well as CMGC and alternative procurement projects. |
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(3) |
Acquisition-related expenses include acquisition, integration, acquired intangible amortization expenses, acquisition-related depreciation and synergy costs. |
Conference Call
Granite will conduct a conference call today, October 25, 2019, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results of the quarter ended September 30, 2019. The Company invites investors to listen to a live audio webcast on its Investor Relations website, https://investor.graniteconstruction.com. The live call is available by calling 1-800-353-6461; international callers may dial 1-334-323-0501. 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 November 1, 2019, by calling 1-888-203-1112, replay access code 2883572; international callers may dial 1-719-457-0820.
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, circumstances, activities, performance, growth, demand, strategic plans, outcomes, guidance, backlog, 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,” 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, circumstances, activities, performance, growth, demand, strategic plans, outcomes, guidance, backlog, 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 specifically 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
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - in thousands, except share and per share data)
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September 30, 2019 |
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December 31, 2018 |
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September 30, 2018 |
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ASSETS |
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Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
184,673 |
|
|
$ |
272,804 |
|
|
$ |
230,259 |
|
|
Short-term marketable securities |
|
|
37,918 |
|
|
|
30,002 |
|
|
|
35,010 |
|
|
Receivables, net |
|
|
700,387 |
|
|
|
473,246 |
|
|
|
618,070 |
|
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Contract assets |
|
|
233,925 |
|
|
|
219,754 |
|
|
|
213,989 |
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Inventories |
|
|
95,442 |
|
|
|
88,623 |
|
|
|
90,789 |
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Equity in construction joint ventures |
|
|
209,765 |
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|
|
282,229 |
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|
|
273,993 |
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Other current assets |
|
|
42,698 |
|
|
|
48,731 |
|
|
|
95,173 |
|
|
Total current assets |
|
|
1,504,808 |
|
|
|
1,415,389 |
|
|
|
1,557,283 |
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Property and equipment, net |
|
|
542,796 |
|
|
|
549,688 |
|
|
|
560,618 |
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Long-term marketable securities |
|
|
10,000 |
|
|
|
36,098 |
|
|
|
46,093 |
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|
Investments in affiliates |
|
|
84,914 |
|
|
|
84,354 |
|
|
|
84,840 |
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|
Goodwill |
|
|
264,112 |
|
|
|
259,471 |
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|
|
244,696 |
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Right of use assets |
|
|
70,472 |
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|
|
— |
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|
|
— |
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|
Deferred income taxes, net |
|
|
38,443 |
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|
|
2,918 |
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|
|
6,408 |
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Other noncurrent assets |
|
|
118,228 |
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|
|
128,683 |
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|
|
143,910 |
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Total assets |
|
$ |
2,633,773 |
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|
$ |
2,476,601 |
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|
$ |
2,643,848 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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Current maturities of long-term debt |
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$ |
8,263 |
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$ |
47,286 |
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$ |
116,796 |
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Accounts payable |
|
|
399,528 |
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|
251,481 |
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|
|
316,917 |
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Contract liabilities |
|
|
106,010 |
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|
105,449 |
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|
|
117,759 |
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Accrued expenses and other current liabilities |
|
|
342,040 |
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|
273,626 |
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|
296,033 |
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Total current liabilities |
|
|
855,841 |
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|
677,842 |
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|
|
847,505 |
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Long-term debt |
|
|
394,841 |
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|
|
335,119 |
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|
|
316,926 |
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Lease liabilities |
|
|
56,740 |
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|
|
— |
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|
|
— |
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Deferred income taxes, net |
|
|
4,652 |
|
|
|
4,317 |
|
|
|
5,589 |
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Other long-term liabilities |
|
|
58,433 |
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|
|
61,689 |
|
|
|
67,429 |
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Commitments and contingencies |
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Equity |
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Preferred stock, |
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— |
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— |
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— |
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Common stock, |
|
|
468 |
|
|
|
467 |
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|
|
469 |
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Additional paid-in capital |
|
|
567,033 |
|
|
|
564,559 |
|
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|
572,046 |
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Accumulated other comprehensive (loss) income |
|
|
(3,282 |
) |
|
|
(749 |
) |
|
|
1,841 |
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Retained earnings |
|
|
656,487 |
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|
787,356 |
|
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|
786,936 |
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Total Granite Construction Incorporated shareholders’ equity |
|
|
1,220,706 |
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1,351,633 |
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1,361,292 |
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Non-controlling interests |
|
|
42,560 |
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|
|
46,001 |
|
|
|
45,107 |
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Total equity |
|
|
1,263,266 |
|
|
|
1,397,634 |
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|
|
1,406,399 |
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Total liabilities and equity |
|
$ |
2,633,773 |
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$ |
2,476,601 |
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$ |
2,643,848 |
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GRANITE CONSTRUCTION INCORPORATED |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited - in thousands, except per share data) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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Revenue |
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Transportation |
|
$ |
598,646 |
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$ |
610,847 |
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$ |
1,340,834 |
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$ |
1,472,703 |
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Water |
|
|
135,908 |
|
|
|
124,292 |
|
|
|
347,994 |
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|
|
215,951 |
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Specialty |
|
|
224,457 |
|
|
|
190,836 |
|
|
|
540,234 |
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|
|
461,149 |
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Materials |
|
|
129,099 |
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|
|
129,616 |
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|
268,389 |
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|
276,286 |
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Total revenue |
|
|
1,088,110 |
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|
|
1,055,591 |
|
|
|
2,497,451 |
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|
2,426,089 |
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Cost of revenue |
|
|
|
|
|
|
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|
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|
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|
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|
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Transportation |
|
|
585,013 |
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|
|
539,871 |
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|
|
1,405,830 |
|
|
|
1,334,302 |
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|
Water |
|
|
120,878 |
|
|
|
100,189 |
|
|
|
313,582 |
|
|
|
174,834 |
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|
Specialty |
|
|
186,158 |
|
|
|
162,737 |
|
|
|
464,858 |
|
|
|
395,838 |
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|
Materials |
|
|
104,629 |
|
|
|
108,303 |
|
|
|
233,675 |
|
|
|
239,972 |
|
|
Total cost of revenue |
|
|
996,678 |
|
|
|
911,100 |
|
|
|
2,417,945 |
|
|
|
2,144,946 |
|
|
Gross profit |
|
|
91,432 |
|
|
|
144,491 |
|
|
|
79,506 |
|
|
|
281,143 |
|
|
Selling, general and administrative expenses |
|
|
73,424 |
|
|
|
70,769 |
|
|
|
224,577 |
|
|
|
193,337 |
|
|
Acquisition and integration expenses |
|
|
2,744 |
|
|
|
9,334 |
|
|
|
15,244 |
|
|
|
44,030 |
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|
Gain on sales of property and equipment |
|
|
(7,101 |
) |
|
|
(3,018 |
) |
|
|
(13,936 |
) |
|
|
(5,066 |
) |
|
Operating income (loss) |
|
|
22,365 |
|
|
|
67,406 |
|
|
|
(146,379 |
) |
|
|
48,842 |
|
|
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(1,713 |
) |
|
|
(1,533 |
) |
|
|
(6,257 |
) |
|
|
(4,227 |
) |
|
Interest expense |
|
|
4,839 |
|
|
|
4,452 |
|
|
|
13,011 |
|
|
|
10,090 |
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|
Equity in income of affiliates |
|
|
(6,275 |
) |
|
|
(1,769 |
) |
|
|
(10,159 |
) |
|
|
(5,527 |
) |
|
Other expense (income), net |
|
|
127 |
|
|
|
(1,533 |
) |
|
|
(2,394 |
) |
|
|
(2,205 |
) |
|
Total other income |
|
|
(3,022 |
) |
|
|
(383 |
) |
|
|
(5,799 |
) |
|
|
(1,869 |
) |
|
Income (loss) before provision for (benefit from) income taxes |
|
|
25,387 |
|
|
|
67,789 |
|
|
|
(140,580 |
) |
|
|
50,711 |
|
|
Provision for (benefit from) income taxes |
|
|
3,474 |
|
|
|
8,692 |
|
|
|
(37,451 |
) |
|
|
7,357 |
|
|
Net income (loss) |
|
|
21,913 |
|
|
|
59,097 |
|
|
|
(103,129 |
) |
|
|
43,354 |
|
|
Amount attributable to non-controlling interests |
|
|
(1,425 |
) |
|
|
(3,425 |
) |
|
|
(8,793 |
) |
|
|
(7,490 |
) |
|
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
20,488 |
|
|
$ |
55,672 |
|
|
$ |
(111,922 |
) |
|
$ |
35,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.44 |
|
|
$ |
1.20 |
|
|
$ |
(2.39 |
) |
|
$ |
0.84 |
|
|
Diluted |
|
$ |
0.43 |
|
|
$ |
1.17 |
|
|
$ |
(2.39 |
) |
|
$ |
0.84 |
|
|
Weighted average shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
46,788 |
|
|
|
46.308 |
|
|
|
46,771 |
|
|
|
42,443 |
|
|
Diluted |
|
|
47,170 |
|
|
|
47,810 |
|
|
|
46,771 |
|
|
|
42,910 |
|
|
GRANITE CONSTRUCTION INCORPORATED |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Unaudited - in thousands) |
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Nine Months Ended September 30, |
|
2019 |
|
|
2018 |
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||
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(103,129 |
) |
|
$ |
43,354 |
|
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
92,700 |
|
|
|
77,816 |
|
|
Gain on sales of property and equipment, net |
|
|
(13,936 |
) |
|
|
(5,066 |
) |
|
Change in deferred income taxes |
|
|
(37,338 |
) |
|
|
(2,207 |
) |
|
Stock-based compensation |
|
|
8,924 |
|
|
|
12,621 |
|
|
Equity in net loss from unconsolidated joint ventures |
|
|
173,008 |
|
|
|
16,343 |
|
|
Net income from affiliates |
|
|
(10,159 |
) |
|
|
(5,527 |
) |
|
Other non-cash adjustments |
|
|
4,630 |
|
|
|
— |
|
|
Changes in assets and liabilities, net of the effects of acquisitions: |
|
|
(141,198 |
) |
|
|
(122,591 |
) |
|
Net cash (used in) provided by operating activities |
|
|
(26,498 |
) |
|
|
14,743 |
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
|
— |
|
|
|
(9,952 |
) |
|
Maturities of marketable securities |
|
|
20,000 |
|
|
|
60,000 |
|
|
Purchases of property and equipment |
|
|
(83,329 |
) |
|
|
(86,131 |
) |
|
Proceeds from sales of property and equipment |
|
|
28,104 |
|
|
|
9,480 |
|
|
Cash paid to purchase businesses, net of cash and restricted cash acquired |
|
|
(6,227 |
) |
|
|
(55,030 |
) |
|
Other investing activities, net |
|
|
(3,756 |
) |
|
|
320 |
|
|
Net cash used in investing activities |
|
|
(45,208 |
) |
|
|
(81,313 |
) |
|
Financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
105,574 |
|
|
|
143,250 |
|
|
Debt principal repayments |
|
|
(86,018 |
) |
|
|
(42,149 |
) |
|
Cash dividends paid |
|
|
(18,240 |
) |
|
|
(16,328 |
) |
|
Repurchases of common stock |
|
|
(6,916 |
) |
|
|
(6,369 |
) |
|
Distributions to non-controlling partners, net |
|
|
(12,234 |
) |
|
|
(10,128 |
) |
|
Other financing activities, net |
|
|
1,242 |
|
|
|
441 |
|
|
Net cash (used in) provided by financing activities |
|
|
(16,592 |
) |
|
|
68,717 |
|
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
|
(88,298 |
) |
|
|
2,147 |
|
|
Cash, cash equivalents and |
|
|
278,629 |
|
|
|
233,711 |
|
|
Cash, cash equivalents and |
|
$ |
190,331 |
|
|
$ |
235,858 |
|
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
|
Business Segment Information |
||||||||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
$ |
598,646 |
|
|
$ |
610,847 |
|
|
$ |
1,340,834 |
|
|
$ |
1,472,703 |
|
|
Water |
|
|
135,908 |
|
|
|
124,292 |
|
|
|
347,994 |
|
|
|
215,951 |
|
|
Specialty |
|
|
224,457 |
|
|
|
190,836 |
|
|
|
540,234 |
|
|
|
461,149 |
|
|
Materials |
|
|
129,099 |
|
|
|
129,616 |
|
|
|
268,389 |
|
|
|
276,286 |
|
|
Total revenue |
|
$ |
1,088,110 |
|
|
$ |
1,055,591 |
|
|
$ |
2,497,451 |
|
|
$ |
2,426,089 |
|
|
Gross profit (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
$ |
13,633 |
|
|
$ |
70,976 |
|
|
$ |
(64,996 |
) |
|
$ |
138,401 |
|
|
Water |
|
|
15,030 |
|
|
|
24,103 |
|
|
|
34,412 |
|
|
|
41,117 |
|
|
Specialty |
|
|
38,299 |
|
|
|
28,099 |
|
|
|
75,376 |
|
|
|
65,311 |
|
|
Materials |
|
|
24,470 |
|
|
|
21,313 |
|
|
|
34,714 |
|
|
|
36,314 |
|
|
Total gross profit |
|
$ |
91,432 |
|
|
$ |
144,491 |
|
|
$ |
79,506 |
|
|
$ |
281,143 |
|
|
Gross profit (loss) as a percent of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
2.3 |
% |
|
|
11.6 |
% |
|
|
(4.8 |
%) |
|
|
9.4 |
% |
|
Water |
|
|
11.1 |
|
|
|
19.4 |
|
|
|
9.9 |
|
|
|
19.0 |
|
|
Specialty |
|
|
17.1 |
|
|
|
14.7 |
|
|
|
14.0 |
|
|
|
14.2 |
|
|
Materials |
|
|
19.0 |
|
|
|
16.4 |
|
|
|
12.9 |
|
|
|
13.1 |
|
|
Total gross profit as a percent of total revenue |
|
|
8.4 |
% |
|
|
13.7 |
% |
|
|
3.2 |
% |
|
|
11.6 |
% |
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||||||||||
|
Committed and Awarded Projects |
||||||||||||||||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||||||||||||||||
|
|
|
September 30, 2019 |
|
|
June 30, 2019 |
|
|
September 30, 2018 |
|
|||||||||||||||
|
Unearned revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
$ |
2,628,575 |
|
|
|
73.2 |
% |
|
$ |
2,921,437 |
|
|
|
79.1 |
% |
|
$ |
2,311,712 |
|
|
|
75.5 |
% |
|
Water |
|
|
231,551 |
|
|
|
6.4 |
|
|
|
253,418 |
|
|
|
6.9 |
|
|
|
250,157 |
|
|
|
8.2 |
|
|
Specialty |
|
|
733,075 |
|
|
|
20.4 |
|
|
|
517,457 |
|
|
|
14.0 |
|
|
|
501,556 |
|
|
|
16.4 |
|
|
Total unearned revenue |
|
|
3,593,201 |
|
|
|
100.0 |
|
|
|
3,692,312 |
|
|
|
100.0 |
|
|
|
3,063,425 |
|
|
|
100.0 |
|
|
Other awards(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
25,224 |
|
|
|
48.5 |
|
|
|
18,290 |
|
|
|
14.7 |
|
|
|
— |
|
|
|
0.0 |
|
|
Water |
|
|
13,306 |
|
|
|
25.6 |
|
|
|
64,693 |
|
|
|
51.8 |
|
|
|
114,615 |
|
|
|
64.5 |
|
|
Specialty |
|
|
13,487 |
|
|
|
25.9 |
|
|
|
41,807 |
|
|
|
33.5 |
|
|
|
63,095 |
|
|
|
35.5 |
|
|
Total other awards |
|
|
52,017 |
|
|
|
100.0 |
|
|
|
124,790 |
|
|
|
100.0 |
|
|
|
177,710 |
|
|
|
100.0 |
|
|
Total Contract Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
2,653,799 |
|
|
|
72.8 |
|
|
|
2,939,727 |
|
|
|
77.0 |
|
|
|
2,311,712 |
|
|
|
71.3 |
|
|
Water |
|
|
244,857 |
|
|
|
6.7 |
|
|
|
318,111 |
|
|
|
8.3 |
|
|
|
364,772 |
|
|
|
11.3 |
|
|
Specialty |
|
|
746,562 |
|
|
|
20.5 |
|
|
|
559,264 |
|
|
|
14.7 |
|
|
|
564,651 |
|
|
|
17.4 |
|
|
Total contract backlog(2) |
|
|
3,645,218 |
|
|
|
100.0 |
|
|
|
3,817,102 |
|
|
|
100.0 |
|
|
|
3,241,135 |
|
|
|
100.0 |
|
|
Alternative procurement work(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
1,038,780 |
|
|
|
100.0 |
|
|
|
1,055,751 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
Water |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Specialty |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total alternative procurement work(3) |
|
|
1,038,780 |
|
|
|
100.0 |
|
|
|
1,055,751 |
|
|
|
100.0 |
|
|
|
— |
|
|
|
— |
|
|
Committed and Awarded Projects |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
3,692,579 |
|
|
|
78.8 |
|
|
|
3,995,478 |
|
|
|
82.0 |
|
|
|
2,311,712 |
|
|
|
71.3 |
|
|
Water |
|
|
244,857 |
|
|
|
5.2 |
|
|
|
318,111 |
|
|
|
6.5 |
|
|
|
364,772 |
|
|
|
11.3 |
|
|
Specialty |
|
|
746,562 |
|
|
|
15.9 |
|
|
|
559,264 |
|
|
|
11.5 |
|
|
|
564,651 |
|
|
|
17.4 |
|
|
Total Committed and Awarded Projects |
|
$ |
4,683,998 |
|
|
|
100.0 |
% |
|
$ |
4,872,853 |
|
|
|
100.0 |
% |
|
$ |
3,241,135 |
|
|
|
100.0 |
% |
|
(1) Other awards include unissued task orders and unexercised contract options to the extent their issuance or exercise is probable as well as contract awards to the extent we believe contract execution and funding is probable. |
||||||||||||||||||||||||
|
(2) Contract Backlog is calculated by adding Unearned Revenue and Other Awards. |
||||||||||||||||||||||||
|
(3) Alternative Procurement Work represents Construction Manager/General Contractor projects that will enter backlog as task orders are issued in 2019 and over the next few years. |
||||||||||||||||||||||||
Non-GAAP Financial Information
The tables below contain financial information calculated other than in accordance with
Management believes that these additional non-GAAP financial measures facilitate comparisons between securities analysts, institutional investors and other interested parties. 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. The Company does not provide a reconciliation of forward-looking adjusted EBITDA margin to the most directly comparable forward-looking GAAP measure of net income (loss) attributable to Granite Construction Incorporated because the timing and amount of the excluded items are unreasonably difficult to fully and accurately estimate.
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
|
EBITDA(1) |
||||||||||||||||
|
(Unaudited - dollars in thousands) |
||||||||||||||||
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
20,488 |
|
|
$ |
55,672 |
|
|
$ |
(111,922 |
) |
|
$ |
35,864 |
|
|
Depreciation, depletion and amortization expense(2) |
|
|
30,953 |
|
|
|
34,269 |
|
|
|
92,700 |
|
|
|
77,816 |
|
|
Provision for (benefit from) income taxes |
|
|
3,474 |
|
|
|
8,692 |
|
|
|
(37,451 |
) |
|
|
7,357 |
|
|
Interest expense, net of interest income |
|
|
3,126 |
|
|
|
2,919 |
|
|
|
6,754 |
|
|
|
5,863 |
|
|
EBITDA(1) |
|
$ |
58,041 |
|
|
$ |
101,552 |
|
|
$ |
(49,919 |
) |
|
$ |
126,900 |
|
|
EBITDA margin(3) |
|
|
5.3 |
% |
|
|
9.6 |
% |
|
|
(2.0 |
%) |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction costs |
|
$ |
3,294 |
|
|
$ |
11,190 |
|
|
$ |
17,608 |
|
|
$ |
46,037 |
|
|
Adjusted EBITDA(1) |
|
$ |
61,335 |
|
|
$ |
112,742 |
|
|
$ |
(32,311 |
) |
|
$ |
172,937 |
|
|
Adjusted EBITDA margin(1) |
|
|
5.6 |
% |
|
|
10.7 |
% |
|
|
(1.3 |
%) |
|
|
7.1 |
% |
|
(1) We define EBITDA as GAAP net income (loss) 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 acquisition and integration expenses and synergies. |
||||||||||||||||
|
(2) Amount includes the sum of depreciation, depletion and amortization which are classified as cost of revenue and selling, general and administrative expenses in the condensed consolidated statements of operations of Granite Construction Incorporated. |
||||||||||||||||
|
(3) Represents EBITDA divided by consolidated revenue of |
||||||||||||||||
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
|
Adjusted Net Income (Loss) Reconciliation(1) |
||||||||||||||||
|
(Unaudited - in thousands, except per share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
||||
|
Income (loss) before provision for (benefit from) income taxes |
|
$ |
25,387 |
|
|
$ |
67,789 |
|
|
$ |
(140,580 |
) |
|
$ |
50,711 |
|
|
Transaction costs |
|
|
9,537 |
|
|
|
17,705 |
|
|
|
36,802 |
|
|
|
55,619 |
|
|
Adjusted income (loss) before provision for (benefit from) income taxes |
|
$ |
34,924 |
|
|
$ |
85,494 |
|
|
$ |
(103,778 |
) |
|
$ |
106,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes |
|
$ |
3,474 |
|
|
$ |
8,692 |
|
|
$ |
(37,451 |
) |
|
$ |
7,357 |
|
|
Tax effect of the transaction costs(1) |
|
|
2,480 |
|
|
|
5,498 |
|
|
|
9,569 |
|
|
|
10,461 |
|
|
Adjusted provision for (benefit from) income taxes |
|
$ |
5,954 |
|
|
$ |
14,190 |
|
|
$ |
(27,882 |
) |
|
$ |
17,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
20,488 |
|
|
$ |
55,672 |
|
|
$ |
(111,922 |
) |
|
$ |
35,864 |
|
|
After-tax transaction costs |
|
|
7,057 |
|
|
|
12,207 |
|
|
|
27,233 |
|
|
|
45,158 |
|
|
Adjusted net income (loss) attributable to Granite Construction Incorporated |
|
$ |
27,545 |
|
|
$ |
67,879 |
|
|
$ |
(84,689 |
) |
|
$ |
81,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share attributable to common shareholders |
|
$ |
0.43 |
|
|
$ |
1.17 |
|
|
$ |
(2.39 |
) |
|
$ |
0.84 |
|
|
After-tax transaction costs |
|
|
0.15 |
|
|
|
0.26 |
|
|
|
0.58 |
|
|
|
1.05 |
|
|
Adjusted diluted net income (loss) per share attributable to common shareholders |
|
$ |
0.58 |
|
|
$ |
1.43 |
|
|
$ |
(1.81 |
) |
|
$ |
1.89 |
|
|
(1) The tax effect of transaction costs was calculated using the Company’s estimated annual statutory tax rate. |
||||||||||||||||
Source: Granite Construction Incorporated
View source version on businesswire.com: https://www.businesswire.com/news/home/20191025005091/en/
Investors
Lisa Curtis, 831-728-7532
Or
Media
Jacque Fourchy, 831-761-4741
Source: Granite Construction Incorporated
