Press Release
Granite Reports Third Quarter 2024 Results
Oct 31, 2024- Q3 revenue increased 14% year-over-year to
$1.3 billion - Q3 diluted EPS of
$1.57 and adjusted diluted EPS (1) of$2.05 , compared to$1.13 and$1.72 in the prior year, respectively - Record Committed and Awarded Projects (“CAP”) (2) of
$5.6 billion , a sequential increase of$44 million - Year-to-date operating cash flow increased
$249 million year-over-year - Expanded southeast home market with acquisition of Dickerson & Bowen, Inc.
Third Quarter 2024 Results
Net income attributable to Granite Construction Incorporated totaled
- Revenue increased
$159 million to$1.3 billion , compared to$1.1 billion for the same period in the prior year. The Construction and Materials segments each posted year-over-year increases of 14%. - Gross profit increased
$36 million to$203 million , compared to$167 million for the same period in the prior year. - Selling, general, and administrative (“SG&A”) expenses increased
$17 million to$92 million , or 7.2% of revenue, compared to$75 million , or 6.7% of revenue, for the same period in the prior year. - Adjusted EBITDA (1) totaled
$149 million , compared to$126 million for the same period in the prior year. - CAP (2) increased
$44 million sequentially and$35 million year-over-year to$5.6 billion .
"In the third quarter, we continued to build on our momentum with revenue growth and margin expansion,” said Kyle Larkin, Granite President and Chief Executive Officer. “Revenue grew 14% year-over-year, resulting in another record quarter. The market continues to be robust, and we added to our CAP despite the third quarter being our highest revenue quarter. Our new business model is producing strong operating cash flow, and we expect to significantly exceed our target of 7% of revenue for the year.”
“For 2027, our financial targets contemplate organic growth at a CAGR of 6% to 8% and continued adjusted EBITDA margin expansion and operating cash flow growth. We believe we are still in the early stages of experiencing the benefits from the federal infrastructure bill that should continue to support the public market for years to come, and we see numerous opportunities to grow in a healthy private market over the next three years. I expect that our improved CAP, particularly when combined with initiatives underway in both the Materials and Construction segments, will continue to drive increases in gross profit margin. In addition, with our strong balance sheet, liquidity and cash generation, we will continue to pursue bolt-on and larger materials-focused, vertically-integrated acquisition opportunities, while also looking to return value to shareholders through share repurchases.”
Nine Months Ended September 30, 2024 Results
Net income attributable to Granite Construction Incorporated totaled
- Revenue increased
$455 million to$3.0 billion , compared to$2.6 billion for the same period in the prior year. The Construction and Materials segments posted year-over-year increases of 18% and 16%, respectively. - Gross profit increased
$120 million to$422 million , compared to$302 million for the same period in the prior year. - SG&A expenses increased
$37 million to$250 million , or 8.2% of revenue, compared to$212 million , or 8.3% of revenue, for the same period in the prior year. - Adjusted EBITDA (1) totaled
$293 million compared to$204 million for the same period in the prior year.
(1) Adjusted net income attributable to Granite Construction Incorporated, 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. |
Three and Nine Months ended September 30, 2024 (Unaudited - dollars in thousands) |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
Construction Segment |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
|||||||||||||||||||||
Revenue |
$ |
1,080,705 |
|
$ |
945,698 |
|
$ |
135,007 |
14.3 |
% |
|
$ |
2,593,872 |
|
$ |
2,198,527 |
|
$ |
395,345 |
18.0 |
% |
||||||
Gross profit |
$ |
170,685 |
|
$ |
137,162 |
|
$ |
33,523 |
24.4 |
% |
|
$ |
362,885 |
|
$ |
253,021 |
|
$ |
109,864 |
43.4 |
% |
||||||
Gross profit as a percent of revenue |
|
15.8 |
% |
|
14.5 |
% |
|
|
|
|
14.0 |
% |
|
11.5 |
% |
|
|
For the three and nine months ended September 30, 2024, revenue increased year-over-year by
CAP increased
Materials Segment |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
|
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
||||||||||||||||||||
Revenue |
$ |
194,805 |
|
$ |
171,122 |
|
$ |
23,683 |
13.8 |
% |
|
$ |
436,399 |
|
$ |
376,913 |
|
$ |
59,486 |
15.8 |
% |
||||||
Gross profit |
$ |
32,264 |
|
$ |
29,481 |
|
$ |
2,783 |
9.4 |
% |
|
$ |
59,060 |
|
$ |
49,067 |
|
$ |
9,993 |
20.4 |
% |
||||||
Gross profit as a percent of revenue |
|
16.6 |
% |
|
17.2 |
% |
|
|
|
|
13.5 |
% |
|
13.0 |
% |
|
|
||||||||||
Cash gross profit (1) |
$ |
43,202 |
|
$ |
36,203 |
|
$ |
6,999 |
19.3 |
% |
|
$ |
89,718 |
|
$ |
67,581 |
|
$ |
22,137 |
32.8 |
% |
||||||
Cash gross profit as a percent of revenue (1) |
|
22.2 |
% |
|
21.2 |
% |
|
|
|
|
20.6 |
% |
|
17.9 |
% |
|
|
(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. |
For the three and nine months ended September 30, 2024, revenue increased year-over-year by
Outlook
Our updated guidance for 2024 is noted below:
- Revenue unchanged in the range of
$3.9 billion to$4.0 billion - Adjusted EBITDA margin in the range of 10% to 11%, narrowed from 9.5% to 11.5%
- SG&A expense in a range from 8.3% to 8.5% of revenue from a range of 7.5% to 8.0% of revenue due to increased incentive compensation
- Mid-20s effective tax rate for adjusted net income
- Capital expenditures expected to be approximately
$130 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.
For a discussion of our 2027 targets, see the presentation posted on our Investor Relations website following our conference call.
Conference Call
Granite will conduct a conference call today, October 31, 2024, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results of the quarter ended September 30, 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 November 7, 2024, by calling 1-877-344-7529, replay access code 8631298; 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, demand, strategic plans, shareholder value, outcomes, outlook, 2024 fiscal year guidance for revenue, adjusted EBITDA margin, SG&A expense, effective tax rate, and capital expenditures, our expectation that we significantly exceed our operating cash flow target of 7% for the year, our 2027 financial target assumptions, the federal infrastructure bill should continue to support the public markets for years to come, numerous opportunities to grow in a healthy private market over the next three years, improved CAP with initiatives underway will continue to drive increase in gross profit margin, pursuit of bolt-on and larger materials-focused, vertically integrated acquisition opportunities, returning value to shareholders through share repurchases, opportunities to build CAP in the fourth quarter, 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, 2024 fiscal year guidance for revenue, adjusted EBITDA margin, SG&A expense, effective tax rate, and capital expenditures, our expectation that we significantly exceed our operating cash flow target of 7% for the year, our 2027 financial target assumptions, the federal infrastructure bill should continue to support the public markets for years to come, numerous opportunities to grow in a healthy private market over the next three years, improved CAP with initiatives underway will continue to drive increase in gross profit margin, pursuit of bolt-on and larger materials-focused, vertically integrated acquisition opportunities, returning value to shareholders through share repurchases, opportunities to build CAP in the fourth quarter, 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 |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited - in thousands, except share and per share data) |
|||||
|
|||||
|
September 30, 2024 |
December 31, 2023 |
|||
ASSETS |
|
|
|||
Current assets: |
|
|
|||
Cash and cash equivalents |
$ |
462,286 |
$ |
417,663 |
|
Short-term marketable securities |
|
10,147 |
|
35,863 |
|
Receivables, net |
|
733,018 |
|
598,705 |
|
Contract assets |
|
321,653 |
|
262,987 |
|
Inventories |
|
107,973 |
|
103,898 |
|
Equity in construction joint ventures |
|
144,097 |
|
171,233 |
|
Other current assets |
|
34,928 |
|
53,102 |
|
Total current assets |
|
1,814,102 |
|
1,643,451 |
|
Property and equipment, net |
|
719,678 |
|
662,864 |
|
Investments in affiliates |
|
94,921 |
|
92,910 |
|
Goodwill |
|
211,624 |
|
155,004 |
|
Intangible assets |
|
131,579 |
|
117,322 |
|
Right of use assets |
|
86,299 |
|
78,176 |
|
Deferred income taxes, net |
|
4,990 |
|
8,179 |
|
Other noncurrent assets |
|
67,732 |
|
55,634 |
|
Total assets |
$ |
3,130,925 |
$ |
2,813,540 |
|
|
|
|
|||
LIABILITIES AND EQUITY |
|
|
|||
Current liabilities: |
|
|
|||
Current maturities of long-term debt |
$ |
1,099 |
$ |
39,932 |
|
Accounts payable |
|
509,976 |
|
408,363 |
|
Contract liabilities |
|
292,641 |
|
243,848 |
|
Accrued expenses and other current liabilities |
|
361,110 |
|
337,740 |
|
Total current liabilities |
|
1,164,826 |
|
1,029,883 |
|
Long-term debt |
|
737,458 |
|
614,781 |
|
Long-term lease liabilities |
|
70,981 |
|
63,548 |
|
Deferred income taxes, net |
|
3,420 |
|
3,708 |
|
Other long-term liabilities |
|
84,561 |
|
74,654 |
|
Commitments and contingencies |
|
|
|||
Equity: |
|
|
|||
Preferred stock, |
|
— |
|
— |
|
Common stock, |
|
437 |
|
439 |
|
Additional paid-in capital |
|
437,343 |
|
474,134 |
|
Accumulated other comprehensive income |
|
437 |
|
881 |
|
Retained earnings |
|
568,877 |
|
501,844 |
|
Total Granite Construction Incorporated shareholders’ equity |
|
1,007,094 |
|
977,298 |
|
Non-controlling interests |
|
62,585 |
|
49,668 |
|
Total equity |
|
1,069,679 |
|
1,026,966 |
|
Total liabilities and equity |
$ |
3,130,925 |
$ |
2,813,540 |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Construction |
$ |
1,080,705 |
|
|
$ |
945,698 |
|
|
$ |
2,593,872 |
|
|
$ |
2,198,527 |
|
Materials |
|
194,805 |
|
|
|
171,122 |
|
|
|
436,399 |
|
|
|
376,913 |
|
Total revenue |
|
1,275,510 |
|
|
|
1,116,820 |
|
|
|
3,030,271 |
|
|
|
2,575,440 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Construction |
|
910,020 |
|
|
|
808,536 |
|
|
|
2,230,987 |
|
|
|
1,945,506 |
|
Materials |
|
162,541 |
|
|
|
141,641 |
|
|
|
377,339 |
|
|
|
327,846 |
|
Total cost of revenue |
|
1,072,561 |
|
|
|
950,177 |
|
|
|
2,608,326 |
|
|
|
2,273,352 |
|
Gross profit |
|
202,949 |
|
|
|
166,643 |
|
|
|
421,945 |
|
|
|
302,088 |
|
Selling, general and administrative expenses |
|
91,650 |
|
|
|
74,794 |
|
|
|
249,695 |
|
|
|
212,479 |
|
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Gain on sales of property and equipment, net |
|
(1,542 |
) |
|
|
(1,812 |
) |
|
|
(4,347 |
) |
|
|
(7,793 |
) |
Operating income |
|
104,298 |
|
|
|
73,818 |
|
|
|
146,819 |
|
|
|
59,429 |
|
Other (income) expense: |
|
|
|
|
|
|
|
||||||||
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Interest income |
|
(7,513 |
) |
|
|
(4,293 |
) |
|
|
(17,815 |
) |
|
|
(11,287 |
) |
Interest expense |
|
7,905 |
|
|
|
4,877 |
|
|
|
21,325 |
|
|
|
11,899 |
|
Equity in income of affiliates, net |
|
(4,394 |
) |
|
|
(7,147 |
) |
|
|
(12,921 |
) |
|
|
(19,378 |
) |
Other (income) expense, net |
|
(874 |
) |
|
|
462 |
|
|
|
(1,350 |
) |
|
|
(2,713 |
) |
Total other (income) expense, net |
|
(5,148 |
) |
|
|
(6,101 |
) |
|
|
16,791 |
|
|
|
29,573 |
|
Income before income taxes |
|
109,446 |
|
|
|
79,919 |
|
|
|
130,028 |
|
|
|
29,856 |
|
Provision for income taxes |
|
25,469 |
|
|
|
22,423 |
|
|
|
36,636 |
|
|
|
21,978 |
|
Net income |
|
83,977 |
|
|
|
57,496 |
|
|
|
93,392 |
|
|
|
7,878 |
|
Amount attributable to non-controlling interests |
|
(5,026 |
) |
|
|
128 |
|
|
|
(8,529 |
) |
|
|
9,723 |
|
Net income attributable to Granite |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.81 |
|
|
$ |
1.31 |
|
|
$ |
1.93 |
|
|
$ |
0.40 |
|
Diluted |
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
1.79 |
|
|
$ |
0.40 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
43,696 |
|
|
|
43,924 |
|
|
|
43,914 |
|
|
|
43,861 |
|
Diluted |
|
52,366 |
|
|
|
53,612 |
|
|
|
52,585 |
|
|
|
44,447 |
|
GRANITE CONSTRUCTION INCORPORATED |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited - in thousands) |
|||||||
|
|||||||
Nine Months Ended September 30, |
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
93,392 |
|
|
$ |
7,878 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization |
|
92,283 |
|
|
|
65,298 |
|
Amortization related to long-term debt |
|
3,400 |
|
|
|
1,689 |
|
Loss on debt extinguishment |
|
27,552 |
|
|
|
51,052 |
|
Gain on sales of property and equipment, net |
|
(4,347 |
) |
|
|
(7,793 |
) |
Deferred income taxes |
|
— |
|
|
|
1,542 |
|
Stock-based compensation |
|
17,325 |
|
|
|
8,630 |
|
Equity in net (income) loss from unconsolidated construction joint ventures |
|
651 |
|
|
|
(4,535 |
) |
Net income from affiliates |
|
(12,921 |
) |
|
|
(19,378 |
) |
Other non-cash adjustments |
|
(165 |
) |
|
|
5,659 |
|
Changes in assets and liabilities |
|
66,379 |
|
|
|
(75,844 |
) |
Net cash provided by operating activities |
$ |
283,549 |
|
|
$ |
34,198 |
|
Investing activities: |
|
|
|
||||
Purchases of marketable securities |
|
(6,977 |
) |
|
|
(9,740 |
) |
Maturities of marketable securities |
|
31,500 |
|
|
|
40,000 |
|
Purchases of property and equipment |
|
(108,167 |
) |
|
|
(108,963 |
) |
Proceeds from sales of property and equipment |
|
6,739 |
|
|
|
14,613 |
|
Acquisitions of businesses |
|
(122,448 |
) |
|
|
(26,933 |
) |
Cash paid for purchase price adjustments on business acquisition |
|
(13,183 |
) |
|
|
— |
|
Proceeds from company owned life insurance |
|
— |
|
|
|
1,545 |
|
Return of investment in affiliates |
|
1,429 |
|
|
|
— |
|
Collection of notes receivable |
|
— |
|
|
|
208 |
|
Net cash used in investing activities |
$ |
(211,107 |
) |
|
$ |
(89,270 |
) |
Financing activities: |
|
|
|
||||
Proceeds from issuance of convertible notes |
|
373,750 |
|
|
|
373,750 |
|
Proceeds from long-term debt |
|
— |
|
|
|
55,000 |
|
Debt principal repayments |
|
(310,226 |
) |
|
|
(304,851 |
) |
Capped call transactions |
|
(46,046 |
) |
|
|
(53,035 |
) |
Redemption of warrants |
|
(497 |
) |
|
|
(13,201 |
) |
Debt issuance costs |
|
(10,053 |
) |
|
|
(10,024 |
) |
Cash dividends paid |
|
(17,131 |
) |
|
|
(17,101 |
) |
Repurchases of common stock |
|
(21,384 |
) |
|
|
(3,900 |
) |
Contributions from non-controlling partners |
|
20,500 |
|
|
|
35,400 |
|
Distributions to non-controlling partners |
|
(18,072 |
) |
|
|
(9,100 |
) |
Other financing activities, net |
|
1,340 |
|
|
|
267 |
|
Net cash provided by (used in) financing activities |
$ |
(27,819 |
) |
|
$ |
53,205 |
|
Net increase (decrease) in cash and cash equivalents |
|
44,623 |
|
|
|
(1,867 |
) |
Cash and cash equivalents at beginning of period |
|
417,663 |
|
|
|
293,991 |
|
Cash and cash equivalents at end of period |
$ |
462,286 |
|
|
$ |
292,124 |
|
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;
- (Gain) 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 |
|
Nine Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Granite Construction |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
Net income margin (2) |
|
6.2 |
% |
|
|
5.2 |
% |
|
|
2.8 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization expense (3) |
|
33,956 |
|
|
|
23,911 |
|
|
|
93,532 |
|
|
|
65,722 |
|
Provision for income taxes |
|
25,469 |
|
|
|
22,423 |
|
|
|
36,636 |
|
|
|
21,978 |
|
Interest expense, net |
|
392 |
|
|
|
584 |
|
|
|
3,510 |
|
|
|
612 |
|
EBITDA(1) |
$ |
138,768 |
|
|
$ |
104,542 |
|
|
$ |
218,541 |
|
|
$ |
105,913 |
|
EBITDA margin(1)(2) |
|
10.9 |
% |
|
|
9.4 |
% |
|
|
7.2 |
% |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
||||||||
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Stock-based compensation (4) |
|
2,241 |
|
|
|
1,928 |
|
|
|
17,325 |
|
|
|
8,630 |
|
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Adjusted EBITDA(1) |
$ |
149,280 |
|
|
$ |
126,313 |
|
|
$ |
293,196 |
|
|
$ |
203,568 |
|
Adjusted EBITDA margin(1)(2) |
|
11.7 |
% |
|
|
11.3 |
% |
|
|
9.7 |
% |
|
|
7.9 |
% |
(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, (gain) loss on debt extinguishment and stock-based compensation expense, 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 condensed 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. The prior period adjusted EBITDA has been recast to conform to current presentation. |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||
ADJUSTED NET INCOME RECONCILIATION |
|||||||||||||||
(Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Income before income taxes |
$ |
109,446 |
|
|
$ |
79,919 |
|
|
$ |
130,028 |
|
|
$ |
29,856 |
|
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Transaction costs |
|
5,546 |
|
|
|
92 |
|
|
|
15,378 |
|
|
|
5,046 |
|
Stock-based compensation (1) |
|
2,241 |
|
|
|
1,928 |
|
|
|
17,325 |
|
|
|
8,630 |
|
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Adjusted income before income taxes |
$ |
125,504 |
|
|
$ |
101,782 |
|
|
$ |
220,061 |
|
|
$ |
132,557 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
$ |
25,469 |
|
|
$ |
22,423 |
|
|
$ |
36,636 |
|
|
$ |
21,978 |
|
Tax expense to establish valuation allowance |
|
— |
|
|
|
(1,542 |
) |
|
|
— |
|
|
|
(1,542 |
) |
Tax effect of adjusting items (2) |
|
4,474 |
|
|
|
4,375 |
|
|
|
16,593 |
|
|
|
12,120 |
|
Adjusted provision for income taxes |
$ |
29,943 |
|
|
$ |
25,256 |
|
|
$ |
53,229 |
|
|
$ |
32,556 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Granite Construction |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
After-tax adjusting items |
|
11,584 |
|
|
|
19,030 |
|
|
|
73,440 |
|
|
|
92,123 |
|
Adjusted net income attributable to Granite |
$ |
90,535 |
|
|
$ |
76,654 |
|
|
$ |
158,303 |
|
|
$ |
109,724 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares of common stock |
|
52,366 |
|
|
|
53,612 |
|
|
|
52,585 |
|
|
|
44,447 |
|
Less: dilutive effect of Convertible Notes (3) |
|
(8,103 |
) |
|
|
(9,099 |
) |
|
|
(8,103 |
) |
|
|
— |
|
Adjusted diluted weighted average shares of common stock |
|
44,263 |
|
|
|
44,513 |
|
|
|
44,482 |
|
|
|
44,447 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per share attributable to common shareholders |
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
1.79 |
|
|
$ |
0.40 |
|
After-tax adjusting items per share attributable to common shareholders |
|
0.48 |
|
|
|
0.59 |
|
|
|
1.77 |
|
|
|
2.07 |
|
Adjusted diluted earnings per share attributable to common shareholders |
$ |
2.05 |
|
|
$ |
1.72 |
|
|
$ |
3.56 |
|
|
$ |
2.47 |
|
(1) In the first quarter of 2024, we revised the adjusted net income calculation to exclude the impact of stock-based compensation expense. The prior period adjusted net income and diluted loss 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 three and nine months ended September 30, 2024 includes an immaterial amount of the (gain) loss on debt extinguishment as it was almost entirely non-tax deductible. The nine months ended September 30, 2023 excludes the |
(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. For the nine months ended September 30, 2023, the potential share dilution from the convertible notes would have been antidilutive and therefore was excluded from the calculation. For the purposes of calculating 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 purchased equity derivative instruments which economically offsets dilution risk. |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||||||||||
MATERIALS SEGMENT CASH GROSS PROFIT RECONCILIATION |
|||||||||||||||||||||||
(Unaudited - in thousands) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
||||||||||||
Gross profit |
$ |
32,264 |
|
|
$ |
29,481 |
|
|
$ |
22,038 |
|
|
$ |
59,060 |
|
|
$ |
49,067 |
|
|
$ |
40,965 |
|
Gross profit as a percent of revenue |
|
16.6 |
% |
|
|
17.2 |
% |
|
|
13.6 |
% |
|
|
13.5 |
% |
|
|
13.0 |
% |
|
|
11.0 |
% |
Depreciation, depletion and amortization |
|
10,938 |
|
|
|
6,722 |
|
|
|
6,211 |
|
|
|
30,658 |
|
|
|
18,514 |
|
|
|
18,163 |
|
Cash gross profit |
$ |
43,202 |
|
|
$ |
36,203 |
|
|
$ |
28,249 |
|
|
$ |
89,718 |
|
|
$ |
67,581 |
|
|
$ |
59,128 |
|
Cash gross profit as a percent of revenue |
|
22.2 |
% |
|
|
21.2 |
% |
|
|
17.5 |
% |
|
|
20.6 |
% |
|
|
17.9 |
% |
|
|
15.8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030745262/en/
Investors
Wenjun Xu, 831-761-7861
Or
Media
Erin Kuhlman, 831-768-4111
Source: Granite Construction Incorporated