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"During the first quarter, we began to see the progress we have made on
our cost savings initiatives related to our Enterprise Improvement
Plan," said Granite President and Chief Executive Officer
First-quarter 2011 Financial Results
Construction
Outlook
"Despite the ongoing competitive climate, we are pleased with our bid results for the first quarter as well as the upcoming volume of opportunities to bid work across the country," said Roberts. "On the other hand, the ongoing delays associated with the federal highway bill and the budgetary pressures at the state and local levels are providing some uncertainty as we look further out."
For 2011, Granite expects Construction segment revenue 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
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 of 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) | |||||||||
| March 31, | December 31, | March 31, | |||||||
| 2011 | 2010 | 2010 | |||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 240,768 | $ | 252,022 | $ | 222,095 | |||
| Short-term marketable securities | 83,084 | 109,447 | 76,963 | ||||||
| Receivables, net | 170,441 | 243,986 | 197,658 | ||||||
| Costs and estimated earnings in excess of billings | 33,302 | 10,519 | 33,445 | ||||||
| Inventories | 56,899 | 51,018 | 49,483 | ||||||
| Real estate held for development and sale | 77,128 | 75,716 | 137,183 | ||||||
| Deferred income taxes | 52,583 | 53,877 | 31,150 | ||||||
| Equity in construction joint ventures | 78,773 | 74,716 | 71,693 | ||||||
| Other current assets | 44,059 | 42,555 | 56,033 | ||||||
| Total current assets | 837,037 | 913,856 | 875,703 | ||||||
| Property and equipment, net | 468,929 | 473,607 | 519,909 | ||||||
| Long-term marketable securities | 46,251 | 34,259 | 90,440 | ||||||
| Investments in affiliates | 28,893 | 31,410 | 30,823 | ||||||
| Other noncurrent assets | 83,478 | 82,401 | 80,371 | ||||||
| Total assets | $ | 1,464,588 | $ | 1,535,533 | $ | 1,597,246 | |||
| LIABILITIES AND EQUITY | |||||||||
| Current liabilities | |||||||||
| Current maturities of long-term debt | $ | 8,351 | $ | 8,359 | $ | 8,350 | |||
| Current maturities of non-recourse debt | 17,740 | 29,760 | 40,565 | ||||||
| Accounts payable | 94,688 | 129,700 | 100,102 | ||||||
| Billings in excess of costs and estimated earnings | 113,347 | 120,185 | 142,935 | ||||||
| Accrued expenses and other current liabilities | 144,584 | 150,773 | 156,374 | ||||||
| Total current liabilities | 378,710 | 438,777 | 448,326 | ||||||
| Long-term debt | 216,852 | 217,014 | 225,203 | ||||||
| Long-term non-recourse debt | 30,454 | 25,337 | 16,895 | ||||||
| Other long-term liabilities | 47,943 | 47,996 | 52,471 | ||||||
| Deferred income taxes | 11,048 | 10,774 | 27,217 | ||||||
| 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 38,634,470 shares as of March 31, 2011, 38,745,542 shares as of December 31, 2010 and 38,801,232 shares as of March 31, 2010 |
386 | 387 | 388 | ||||||
| Additional paid-in capital | 102,548 | 104,232 | 93,688 | ||||||
| Retained earnings | 642,354 | 656,412 | 689,634 | ||||||
| Total Granite Construction Incorporated shareholders' equity | 745,288 | 761,031 | 783,710 | ||||||
| Noncontrolling interests | 34,293 | 34,604 | 43,424 | ||||||
| Total equity | 779,581 | 795,635 | 827,134 | ||||||
| Total liabilities and equity | $ | 1,464,588 | $ | 1,535,533 | $ | 1,597,246 | |||
| GRANITE CONSTRUCTION INCORPORATED | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited - in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
| Revenue | ||||||||
| Construction | $ | 92,692 | $ | 81,186 | ||||
| Large project construction | 137,820 | 106,325 | ||||||
| Construction materials | 23,798 | 26,164 | ||||||
| Real estate | 2,421 | 7,008 | ||||||
| Total revenue | 256,731 | 220,683 | ||||||
| Cost of revenue | ||||||||
| Construction | 87,139 | 79,340 | ||||||
| Large project construction | 106,522 | 96,842 | ||||||
| Construction materials | 31,068 | 33,289 | ||||||
| Real estate | 2,014 | 5,498 | ||||||
| Total cost of revenue | 226,743 | 214,969 | ||||||
| Gross profit | 29,988 | 5,714 | ||||||
| Selling, general and administrative expenses | 43,372 | 55,292 | ||||||
| Gain on sales of property and equipment | 2,704 | 4,452 | ||||||
| Operating loss | (10,680 | ) | (45,126 | ) | ||||
| Other income (expense) | ||||||||
| Interest income | 1,244 | 939 | ||||||
| Interest expense | (3,356 | ) | (3,734 | ) | ||||
| Equity in loss of affiliates | (257 | ) | (319 | ) | ||||
| Other income, net | 570 | 2,897 | ||||||
| Total other expense | (1,799 | ) | (217 | ) | ||||
| Loss before benefit from income taxes | (12,479 | ) | (45,343 | ) | ||||
| Benefit from income taxes | (5,223 | ) | (7,613 | ) | ||||
| Net loss | (7,256 | ) | (37,730 | ) | ||||
| Amount attributable to noncontrolling interests | (1,751 | ) | (3,224 | ) | ||||
| Net loss attributable to Granite Construction Incorporated | $ | (9,007 | ) | $ | (40,954 | ) | ||
| Net loss per share attributable to common shareholders: | ||||||||
| Basic (1) | $ | (0.24 | ) | $ | (1.09 | ) | ||
| Diluted (1) | $ | (0.24 | ) | $ | (1.09 | ) | ||
| Weighted average shares of common stock: | ||||||||
| Basic | 37,963 | 37,688 | ||||||
| Diluted | 37,963 | 37,688 | ||||||
| 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) | ||||||||
| Three Months Ended March 31, | 2011 | 2010 | ||||||
| Operating activities | ||||||||
| Net loss | $ | (7,256 | ) | $ | (37,730 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation, depletion and amortization | 15,291 | 18,662 | ||||||
| Gain on sales of property and equipment | (2,704 | ) | (4,452 | ) | ||||
| Change in deferred income taxes | 1,568 | (119 | ) | |||||
| Stock-based compensation | 3,149 | 3,158 | ||||||
| Gain on company owned life insurance | (550 | ) | (1,829 | ) | ||||
| Changes in assets and liabilities, net of the effects of consolidations | (8,822 | ) | (2,044 | ) | ||||
|
Net cash provided by (used in) operating activities |
676 | (24,354 | ) | |||||
| Investing activities | ||||||||
| Purchases of marketable securities | (27,341 | ) | (47,511 | ) | ||||
| Maturities of marketable securities | 24,000 | - | ||||||
| Proceeds from sale of marketable securities | 14,268 | - | ||||||
| Additions to property and equipment | (11,760 | ) | (14,712 | ) | ||||
| Proceeds from sales of property and equipment | 4,623 | 5,674 | ||||||
| Purchase of private preferred stock | - | (6,400 | ) | |||||
| Distributions from affiliates | 1,325 | - | ||||||
| Other investing activities, net | (104 | ) | (453 | ) | ||||
|
Net cash provided by (used in) investing activities |
5,011 | (63,402 | ) | |||||
| Financing activities | ||||||||
| Proceeds from long-term debt | 906 | 53 | ||||||
| Long-term debt principal payments | (7,235 | ) | (8,739 | ) | ||||
| Cash dividends paid | (5,038 | ) | (5,023 | ) | ||||
| Purchase of common stock | (3,515 | ) | (3,296 | ) | ||||
| Distributions to noncontrolling partners, net | (2,062 | ) | (12,103 | ) | ||||
| Other financing activities | 3 | 3 | ||||||
|
Net cash used in financing activities |
(16,941 | ) | (29,105 | ) | ||||
| Decrease in cash and cash equivalents | (11,254 | ) | (116,861 | ) | ||||
| Cash and cash equivalents at beginning of period | 252,022 | 338,956 | ||||||
| Cash and cash equivalents at end of period | $ | 240,768 | $ | 222,095 | ||||
| GRANITE CONSTRUCTION INCORPORATED | ||||||||||||||||
| Business Segment Information | ||||||||||||||||
| (Unaudited - dollars in thousands) | ||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||
| Construction |
Large Project |
Construction |
Real Estate | |||||||||||||
| 2011 | ||||||||||||||||
| Revenue | $ | 92,692 | $ | 137,820 | $ | 23,798 | $ | 2,421 | ||||||||
| Gross profit (loss) | $ | 5,553 | $ | 31,298 | $ | (7,270 | ) | $ | 407 | |||||||
| Gross profit (loss) as a percent of revenue | 6.0 | % | 22.7 | % | -30.5 | % | 16.8 | % | ||||||||
| 2010 | ||||||||||||||||
| Revenue | $ | 81,186 | $ | 106,325 | $ | 26,164 | $ | 7,008 | ||||||||
| Gross profit (loss) | $ | 1,846 | $ | 9,483 | $ | (7,125 | ) | $ | 1,510 | |||||||
| Gross profit (loss) as a percent of revenue | 2.3 | % | 8.9 | % | -27.2 | % | 21.5 | % | ||||||||
| GRANITE CONSTRUCTION INCORPORATED | ||||||||||||||||||
| Contract Backlog by Segment | ||||||||||||||||||
| (Unaudited - dollars in thousands) | ||||||||||||||||||
| March 31, 2011 | December 31, 2010 | March 31, 2010 | ||||||||||||||||
| Construction | $ | 696,055 | 34.7 | % | $ | 465,271 | 24.5 | % | $ | 487,751 | 30.9 | % | ||||||
| Large Project Construction | 1,307,622 | 65.3 | % | 1,433,899 | 75.5 | % | 1,091,251 | 69.1 | % | |||||||||
| Total | $ | 2,003,677 | 100.0 | % | $ | 1,899,170 | 100.0 | % | $ | 1,579,002 | 100.0 | % | ||||||
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