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"I am pleased to report that our teams delivered improved operating
results and added
Second-quarter 2011 Financial Results
Construction
Construction Materials
Outlook
"Our year over year improvement is encouraging, however, we continue to face a very difficult and competitive bidding environment across the country," said Roberts. "While we are not out of the woods with this downturn, I am pleased with the amount and quality of our current backlog and I remain confident in the long-term outlook for our business," he said.
The Company's fiscal 2011 guidance for its operating segments remains
unchanged. Construction segment revenue is expected to be
Conference Call
Granite will conduct a conference call tomorrow,
About Granite
Granite is one of the nation's leading infrastructure contractors and is
member of the S&P 400 Midcap Index, the FTSE KLD 400 Social Index and
the Russell 2000 Index. Through its wholly owned subsidiary, Granite is
one of the nation's largest diversified heavy civil contractors and
construction materials producers serving public- and private-sector
clients nationwide. In addition, Granite has one of the oldest and most
robust ethics and compliance programs in the industry. The Company was
recently recognized by the
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, outcomes 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, outcomes 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
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) | |||||||||
| June 30, | December 31, | June 30, | |||||||
| 2011 | 2010 | 2010 | |||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 190,069 | $ | 252,022 | $ | 208,450 | |||
| Short-term marketable securities | 78,255 | 109,447 | 73,566 | ||||||
| Receivables, net | 283,944 | 243,986 | 295,779 | ||||||
| Costs and estimated earnings in excess of billings | 51,739 | 10,519 | 56,665 | ||||||
| Inventories | 64,727 | 51,018 | 48,529 | ||||||
| Real estate held for development and sale | 78,725 | 75,716 | 148,897 | ||||||
| Deferred income taxes | 52,714 | 53,877 | 31,870 | ||||||
| Equity in construction joint ventures | 87,653 | 74,716 | 72,571 | ||||||
| Other current assets | 34,779 | 42,555 | 39,031 | ||||||
| Total current assets | 922,605 | 913,856 | 975,358 | ||||||
| Property and equipment, net | 464,616 | 473,607 | 501,258 | ||||||
| Long-term marketable securities | 49,580 | 34,259 | 68,291 | ||||||
| Investments in affiliates | 32,932 | 31,410 | 31,210 | ||||||
| Other noncurrent assets | 82,214 | 82,401 | 79,060 | ||||||
| Total assets | $ | 1,551,947 | $ | 1,535,533 | $ | 1,655,177 | |||
| LIABILITIES AND EQUITY | |||||||||
| Current liabilities | |||||||||
| Current maturities of long-term debt | $ | 8,351 | $ | 8,359 | $ | 8,538 | |||
| Current maturities of non-recourse debt | 16,454 | 29,760 | 39,657 | ||||||
| Accounts payable | 179,664 | 129,700 | 173,637 | ||||||
| Billings in excess of costs and estimated earnings | 122,014 | 120,185 | 144,935 | ||||||
| Accrued expenses and other current liabilities | 156,727 | 150,773 | 161,632 | ||||||
| Total current liabilities | 483,210 | 438,777 | 528,399 | ||||||
| Long-term debt | 208,519 | 217,014 | 216,870 | ||||||
| Long-term non-recourse debt | 28,907 | 25,337 | 16,615 | ||||||
| Other long-term liabilities | 46,460 | 47,996 | 49,197 | ||||||
| Deferred income taxes | 10,983 | 10,774 | 27,905 | ||||||
| Equity | |||||||||
| Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding | - | - | - | ||||||
| Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding 38,667,457 shares as of June 30, 2011, 38,745,542 shares as of December 31, 2010 and 38,788,581 shares as of June 30, 2010 | 387 | 387 | 388 | ||||||
| Additional paid-in capital | 105,287 | 104,232 | 98,142 | ||||||
| Retained earnings | 642,228 | 656,412 | 677,873 | ||||||
| Total Granite Construction Incorporated shareholders' equity | 747,902 | 761,031 | 776,403 | ||||||
| Noncontrolling interests | 25,966 | 34,604 | 39,788 | ||||||
| Total equity | 773,868 | 795,635 | 816,191 | ||||||
| Total liabilities and equity | $ | 1,551,947 | $ | 1,535,533 | $ | 1,655,177 | |||
| GRANITE CONSTRUCTION INCORPORATED | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (Unaudited - in thousands, except per share data) | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Revenue | |||||||||||||||||
| Construction | $ | 260,600 | $ | 237,943 | $ | 353,292 | $ | 319,129 | |||||||||
| Large project construction | 162,338 | 153,328 | 300,158 | 259,653 | |||||||||||||
| Construction materials | 58,114 | 61,089 | 81,912 | 87,253 | |||||||||||||
| Real estate | 3,622 | 1,844 | 6,043 | 8,852 | |||||||||||||
| Total revenue | 484,674 | 454,204 | 741,405 | 674,887 | |||||||||||||
| Cost of revenue | |||||||||||||||||
| Construction | 237,211 | 215,042 | 324,350 | 294,382 | |||||||||||||
| Large project construction | 149,680 | 131,493 | 256,202 | 228,335 | |||||||||||||
| Construction materials | 49,644 | 56,609 | 80,712 | 89,898 | |||||||||||||
| Real estate | 3,183 | 1,362 | 5,197 | 6,860 | |||||||||||||
| Total cost of revenue | 439,718 | 404,506 | 666,461 | 619,475 | |||||||||||||
| Gross profit | 44,956 | 49,698 | 74,944 | 55,412 | |||||||||||||
| Selling, general and administrative expenses | 38,793 | 51,357 | 82,165 | 106,649 | |||||||||||||
| Gain on sales of property and equipment | 3,270 | 3,800 | 5,974 | 8,252 | |||||||||||||
| Operating income (loss) | 9,433 | 2,141 | (1,247 | ) | (42,985 | ) | |||||||||||
| Other expense | |||||||||||||||||
| Interest income | 575 | 1,098 | 1,819 | 2,037 | |||||||||||||
| Interest expense | (879 | ) | (3,013 | ) | (4,235 | ) | (6,747 | ) | |||||||||
| Equity in loss of affiliates | (181 | ) | (387 | ) | (438 | ) | (706 | ) | |||||||||
| Other (expense) income, net | (688 | ) | 1,934 | (118 | ) | 4,831 | |||||||||||
| Total other expense | (1,173 | ) | (368 | ) | (2,972 | ) | (585 | ) | |||||||||
| Income (loss) before provision for (benefit from) income taxes | 8,260 | 1,773 | (4,219 | ) | (43,570 | ) | |||||||||||
| Provision for (benefit from) income taxes | 2,087 | 4,406 | (3,136 | ) | (3,207 | ) | |||||||||||
| Net income (loss) | 6,173 | (2,633 | ) | (1,083 | ) | (40,363 | ) | ||||||||||
| Amount attributable to noncontrolling interests | (1,227 | ) | (4,058 | ) | (2,978 | ) | (7,282 | ) | |||||||||
| Net income (loss) attributable to Granite Construction Incorporated | $ | 4,946 | $ | (6,691 | ) | $ | (4,061 | ) | $ | (47,645 | ) | ||||||
| Net income (loss) per share attributable to common shareholders: | |||||||||||||||||
| Basic (1) | $ | 0.13 | $ | (0.18 | ) | $ | (0.11 | ) | $ | (1.26 | ) | ||||||
| Diluted (1) | $ | 0.13 | $ | (0.18 | ) | $ | (0.11 | ) | $ | (1.26 | ) | ||||||
| Weighted average shares of common stock: | |||||||||||||||||
| Basic | 38,140 | 37,850 | 38,052 | 37,770 | |||||||||||||
| Diluted | 38,479 | 37,850 | 38,052 | 37,770 | |||||||||||||
| Note: |
| (1) Computed using the two-class method, except when in a net loss position |
| GRANITE CONSTRUCTION INCORPORATED | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited - in thousands) | ||||||||
| Six Months Ended June 30, | 2011 | 2010 | ||||||
| Operating activities | ||||||||
| Net loss | $ | (1,083 | ) | $ | (40,363 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation, depletion and amortization | 30,464 | 35,839 | ||||||
| Gain on sales of property and equipment | (5,974 | ) | (8,252 | ) | ||||
| Stock-based compensation | 5,913 | 6,885 | ||||||
| Gain on company owned life insurance | (536 | ) | (1,748 | ) | ||||
| Changes in assets and liabilities, net of the effects of consolidations | (45,520 | ) | (31,279 | ) | ||||
| Net cash used in operating activities | (16,736 | ) | (38,918 | ) | ||||
| Investing activities | ||||||||
| Purchases of marketable securities | (65,287 | ) | (60,073 | ) | ||||
| Maturities of marketable securities | 58,375 | 24,900 | ||||||
| Proceeds from sale of marketable securities | 19,268 | 10,000 | ||||||
| Proceeds from company owned life insurance | - | 2,078 | ||||||
| Additions to property and equipment | (27,542 | ) | (21,809 | ) | ||||
| Proceeds from sales of property and equipment | 10,266 | 11,936 | ||||||
| Purchase of private preferred stock | (50 | ) | (6,400 | ) | ||||
| Other investing activities, net | 170 | (869 | ) | |||||
| Net cash used in investing activities | (4,800 | ) | (40,237 | ) | ||||
| Financing activities | ||||||||
| Long-term debt principal payments | (16,151 | ) | (18,155 | ) | ||||
| Cash dividends paid | (10,061 | ) | (10,067 | ) | ||||
| Purchase of common stock | (3,662 | ) | (3,434 | ) | ||||
| Distributions to noncontrolling partners, net | (11,616 | ) | (19,797 | ) | ||||
| Other financing activities | 1,073 | 102 | ||||||
| Net cash used in financing activities | (40,417 | ) | (51,351 | ) | ||||
| Decrease in cash and cash equivalents | (61,953 | ) | (130,506 | ) | ||||
| Cash and cash equivalents at beginning of period | 252,022 | 338,956 | ||||||
| Cash and cash equivalents at end of period | $ | 190,069 | $ | 208,450 | ||||
| GRANITE CONSTRUCTION INCORPORATED | |||||||||||||||||||||||||||||||||
| Business Segment Information | |||||||||||||||||||||||||||||||||
| (Unaudited - dollars in thousands) | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||
| Construction | Large Project Construction | Construction Materials | Real Estate | Construction | Large Project Construction | Construction Materials | Real Estate | ||||||||||||||||||||||||||
| 2011 | |||||||||||||||||||||||||||||||||
| Revenue | $ | 260,600 | $ | 162,338 | $ | 58,114 | $ | 3,622 | $ | 353,292 | $ | 300,158 | $ | 81,912 | $ | 6,043 | |||||||||||||||||
| Gross profit | 23,389 | 12,658 | 8,470 | 439 | 28,942 | 43,956 | 1,200 | 846 | |||||||||||||||||||||||||
| Gross profit as a percent of revenue | 9.0 | % | 7.8 | % | 14.6 | % | 12.1 | % | 8.2 | % | 14.6 | % | 1.5 | % | 14.0 | % | |||||||||||||||||
| 2010 | |||||||||||||||||||||||||||||||||
| Revenue | $ | 237,943 | $ | 153,328 | $ | 61,089 | $ | 1,844 | $ | 319,129 | $ | 259,653 | $ | 87,253 | $ | 8,852 | |||||||||||||||||
| Gross profit (loss) | 22,901 | 21,835 | 4,480 | 482 | 24,747 | 31,318 | (2,645 | ) | 1,992 | ||||||||||||||||||||||||
| Gross profit (loss) as a percent of revenue | 9.6 | % | 14.2 | % | 7.3 | % | 26.1 | % | 7.8 | % | 12.1 | % | (3.0 | )% | 22.5 | % | |||||||||||||||||
| GRANITE CONSTRUCTION INCORPORATED | ||||||||||||||||||
| Contract Backlog by Segment | ||||||||||||||||||
| (Unaudited - dollars in thousands) | ||||||||||||||||||
| Contract Backlog by Segment | June 30, 2011 | March 31, 2011 | June 30, 2010 | |||||||||||||||
| Construction | $ | 800,434 | 38.0 | % | $ | 696,055 | 34.7 | % | $ | 594,214 | 38.3 | % | ||||||
| Large project construction | 1,306,961 | 62.0 | % | 1,307,622 | 65.3 | % | 957,080 | 61.7 | % | |||||||||
| Total | $ | 2,107,395 | 100.0 | % | $ | 2,003,677 | 100.0 | % | $ | 1,551,294 | 100.0 | % | ||||||
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