Granite Reports First-Quarter 2012 Financial Results
- Revenue increased 21 percent compared to the first quarter of 2011
- Cash position remains strong with
$367 million in cash, cash equivalents and marketable securities - Backlog at
March 31, 2012 up slightly to$2.1 billion
“Overall, I am pleased with our start to the year as mild weather allowed many of our business units to work throughout the quarter, which is typically a slow quarter for our business,” said
“As we manage our way through today’s challenging market, we are also following a well-developed plan that will further strengthen our company and position us for long-term profitable growth,” Roberts continued. “We are encouraged by the opportunities to grow, diversify our business model and optimize our asset portfolio. We also remain intensely focused on increasing efficiencies and controlling costs throughout the company.”
First-quarter 2012 Financial Results
- Revenue totaled
$310 million compared with$257 million in 2011, driven by increases inLarge Project Construction and Construction segment revenues. - Gross profit margin was 8 percent compared with 12 percent in 2011. First quarter 2011 gross profit was impacted by the recognition of deferred profit on a project in
New York . - Selling, general and administrative expenses for the first quarter were
$43 million , essentially flat compared to a year ago. Included in 2012 was a net gain on restructuring of$2 million related to divestiture activities of our real estate investment business. - Operating loss for the quarter was
$16 million compared with $11 million in the prior year driven largely by a decrease in gross profit. - Other income, net for the quarter was
$7 million compared with$1 million last year due primarily to a gain on the sale of gold, a by-product of aggregate production. - Net income attributable to noncontrolling interests in joint ventures was
$3 million compared with$2 million in 2011. - Total contract backlog at
March 31, 2012 , was$2.1 billion compared with$2.0 billion a year ago.
Construction
- Construction revenue for the quarter increased 27 percent to
$118 million due to a higher volume of work completed in the quarter related to mild weather throughout the West as well entering the year with a higher volume of backlog. - Gross profit margin for the first quarter was 7 percent compared with 6 percent a year ago.
Large Project Construction revenue for the quarter increased 19 percent to$164 million reflecting continued progress on projects throughout the country.- Gross profit margin for the quarter was 14 percent compared with 23 percent for the same period last year. The decrease is largely associated with deferred profit that was recognized on a large project in
New York during the first quarter 2011.
Construction Materials
- Construction Materials revenue for the quarter totaled
$26 million compared with $24 million for the same period last year. - Gross loss on the sale of construction materials was
$6 million compared with$7 million in 2011.
Outlook
“We are encouraged by the number of
For 2012, 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 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 has been recognized by
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.
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (Unaudited - in thousands, except share and per share data) | |||||||||
|
2012 |
2011 |
2011 | |||||||
| ASSETS | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 226,226 | $ | 256,990 | $ | 240,768 | |||
| Short-term marketable securities | 70,444 | 70,408 | 83,084 | ||||||
| Receivables, net | 208,707 | 251,838 | 170,441 | ||||||
| Costs and estimated earnings in excess of billings | 49,962 | 37,703 | 33,302 | ||||||
| Inventories | 67,782 | 50,975 | 56,899 | ||||||
| Real estate held for development and sale | 58,363 | 67,037 | 77,128 | ||||||
| Deferred income taxes | 38,571 | 38,571 | 52,583 | ||||||
| Equity in construction joint ventures | 91,951 | 101,029 | 78,773 | ||||||
| Other current assets | 34,882 | 35,171 | 44,059 | ||||||
| Total current assets | 846,888 | 909,722 | 837,037 | ||||||
| Property and equipment, net | 442,132 | 447,140 | 468,929 | ||||||
| Long-term marketable securities | 70,114 | 79,250 | 46,251 | ||||||
| Investments in affiliates | 30,972 | 31,071 | 28,893 | ||||||
| Other noncurrent assets | 79,849 | 80,616 | 83,478 | ||||||
| Total assets | $ | 1,469,955 | $ | 1,547,799 | $ | 1,464,588 | |||
| LIABILITIES AND EQUITY | |||||||||
| Current liabilities | |||||||||
| Current maturities of long-term debt | $ | 9,102 | $ | 9,102 | $ | 8,351 | |||
| Current maturities of non-recourse debt | 19,765 | 23,071 | 17,740 | ||||||
| Accounts payable | 129,480 | 158,660 | 94,688 | ||||||
| Billings in excess of costs and estimated earnings | 87,370 | 90,845 | 113,347 | ||||||
| Accrued expenses and other current liabilities | 148,196 | 166,790 | 144,584 | ||||||
| Total current liabilities | 393,913 | 448,468 | 378,710 | ||||||
| Long-term debt | 208,501 | 208,501 | 216,852 | ||||||
| Long-term non-recourse debt | 1,371 | 9,912 | 30,454 | ||||||
| Other long-term liabilities | 50,011 | 49,221 | 47,943 | ||||||
| Deferred income taxes | 3,393 | 4,034 | 11,048 | ||||||
| Equity | |||||||||
| Preferred stock, |
- | - | - | ||||||
| Common stock, |
386 | 387 | 386 | ||||||
| Additional paid-in capital | 110,432 | 111,514 | 102,548 | ||||||
| Retained earnings | 670,462 | 687,296 | 642,354 | ||||||
| Total |
781,280 | 799,197 | 745,288 | ||||||
| Noncontrolling interests | 31,486 | 28,466 | 34,293 | ||||||
| Total equity | 812,766 | 827,663 | 779,581 | ||||||
| Total liabilities and equity | $ | 1,469,955 | $ | 1,547,799 | $ | 1,464,588 | |||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Unaudited - in thousands, except per share data) | ||||||||
| Three Months Ended |
2012 | 2011 | ||||||
| Revenue | ||||||||
| Construction | $ | 117,946 | $ |
92,692 |
||||
| Large project construction |
163,928 |
137,820 | ||||||
| Construction materials | 25,623 | 23,798 | ||||||
| Real estate | 2,663 | 2,421 | ||||||
| Total revenue | 310,160 | 256,731 | ||||||
| Cost of revenue | ||||||||
| Construction | 109,366 | 87,139 | ||||||
| Large project construction | 141,679 | 106,522 | ||||||
| Construction materials | 31,573 | 31,068 | ||||||
| Real estate | 2,606 | 2,014 | ||||||
| Total cost of revenue | 285,224 | 226,743 | ||||||
| Gross profit | 24,936 | 29,988 | ||||||
| Selling, general and administrative expenses | 43,188 | 43,372 | ||||||
| Gain on sales of property and equipment | 1,917 | 2,704 | ||||||
| Operating loss | (16,335 | ) | (10,680 | ) | ||||
| Other income (expense) | ||||||||
| Interest income | 1,044 | 1,244 | ||||||
| Interest expense | (3,182 | ) | (3,356 | ) | ||||
| Equity in loss of affiliates | (617 | ) | (257 | ) | ||||
| Other income, net | 6,871 | 570 | ||||||
| Total other income (expense) | 4,116 | (1,799 | ) | |||||
| Loss before benefit from income taxes | (12,219 | ) | (12,479 | ) | ||||
| Benefit from income taxes | (3,532 | ) | (5,223 | ) | ||||
| Net loss | (8,687 | ) | (7,256 | ) | ||||
| Amount attributable to noncontrolling interests | (3,086 | ) | (1,751 | ) | ||||
| Net loss attributable to |
$ | (11,773 | ) | $ | (9,007 | ) | ||
| Net loss per share attributable to common shareholders: | ||||||||
| $ | (0.31 | ) | $ | (0.24 | ) | |||
| Diluted | $ | (0.31 | ) | $ | (0.24 | ) | ||
| Weighted average shares of common stock: | ||||||||
| 38,265 | 37,963 | |||||||
| Diluted | 38,265 | 37,963 | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited - in thousands) | ||||||||
| Three Months Ended |
2012 | 2011 | ||||||
| Operating activities | ||||||||
| Net loss | $ | (8,687 | ) | $ | (7,256 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation, depletion and amortization | 14,961 | 15,291 | ||||||
| Gain from restructuring, net | (1,888 | ) | - | |||||
| Gain on sales of property and equipment | (1,917 | ) | (2,704 | ) | ||||
| Stock-based compensation | 4,196 | 3,149 | ||||||
| Gain on company owned life insurance | (1,203 | ) | (550 | ) | ||||
| Changes in assets and liabilities, net of the effects of consolidations | (28,335 | ) | (7,254 | ) | ||||
| Net cash (used in) provided by operating activities | (22,873 | ) | 676 | |||||
| Investing activities | ||||||||
| Purchases of marketable securities | (24,987 | ) | (27,341 | ) | ||||
| Maturities of marketable securities | 15,000 | 24,000 | ||||||
| Proceeds from sale of marketable securities | 20,000 | 14,268 | ||||||
| Additions to property and equipment | (9,225 | ) | (11,760 | ) | ||||
| Proceeds from sales of property and equipment | 2,883 | 4,623 | ||||||
| Other investing activities, net | (294 | ) | 1,221 | |||||
|
Net cash provided by investing activities |
3,377 | 5,011 | ||||||
| Financing activities | ||||||||
| Long-term debt principal payments | (2,500 | ) | (7,235 | ) | ||||
| Cash dividends paid | (5,021 | ) | (5,038 | ) | ||||
| Purchase of common stock | (3,837 | ) | (3,515 | ) | ||||
| Distributions to noncontrolling partners, net | (66 | ) | (2,062 | ) | ||||
| Other financing activities, net | 156 | 909 | ||||||
|
Net cash used in financing activities |
(11,268 | ) | (16,941 | ) | ||||
| Decrease in cash and cash equivalents | (30,764 | ) | (11,254 | ) | ||||
| Cash and cash equivalents at beginning of period | 256,990 | 252,022 | ||||||
| Cash and cash equivalents at end of period | $ | 226,226 | $ | 240,768 | ||||
| Business Segment Information | ||||||||||||||||
| (Unaudited - dollars in thousands) | ||||||||||||||||
| Three Months Ended |
||||||||||||||||
| Construction |
|
Construction |
Real Estate | |||||||||||||
| 2012 | ||||||||||||||||
| Revenue | $ | 117,946 | $ | 163,928 | $ | 25,623 | $ | 2,663 | ||||||||
| Gross profit (loss) | 8,580 | 22,249 | (5,950 | ) | 57 | |||||||||||
| Gross profit (loss) as a percent of revenue |
7.3 |
% |
13.6 |
% |
(23.2 | )% |
2.1 |
% |
||||||||
| 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 |
% |
||||||||
| Contract Backlog by Segment | ||||||||||||||||||
| (Unaudited - dollars in thousands) | ||||||||||||||||||
|
|
||||||||||||||||||
| Construction | $ | 622,240 |
29.9 |
% |
$ | 513,624 |
25.4 |
% |
$ | 696,055 |
34.7 |
% |
||||||
| Large project construction | 1,460,674 |
70.1 |
% |
1,508,830 |
74.6 |
% |
1,307,622 |
65.3 |
% |
|||||||||
| Total | $ | 2,082,914 |
100.0 |
% |
$ | 2,022,454 |
100.0 |
% |
$ | 2,003,677 |
100.0 |
% |
||||||
Source:
