Granite Reports Fourth Quarter and Fiscal Year 2020 Results
- Record full year operating cash flow of
$268.5 million - Year-end cash balance was
$441.3 million , an increase of$146.3 million from prior year - Focused on project execution, de-risking portfolio and maximizing free cash flow and returns in 2021
- Initiating 2021 Adjusted EBITDA(1) margin guidance
Fiscal Year 2020 Results
Fiscal year 2020 net loss totaled
- Revenue increased 3.4% in 2020 to
$3.6 billion , compared to$3.4 billion in the prior year. - Gross profit increased 55.5% in 2020 to
$344.8 million , compared to$221.7 million in the prior year. - Selling, general & administrative (“SG&A”) expenses in 2020 were
$353.3 million or 9.9% of revenue, compared to$308.0 million or 8.9% of revenue in the prior year. The increase was primarily attributable to$35.6 million of non-recurring legal and accounting investigation fees. - Adjusted EBITDA (1) increased to
$189.7 million in 2020, compared to$71.7 million in the prior year. - Committed and Award Projects (“CAP”) (3) totaled
$4.3 billion , down 2.3% year-over-year. The year-over-year decrease in CAP reflects backlog burn of the Heavy Civil Operating Group Old Risk Portfolio(4) partially offset by successful pursuits of best-value procurement work.(5) - Operating cash flow increased
$157.0 million in 2020 to a Granite record$268.5 million , compared to$111.4 million in the prior year. - Balance sheet remains strong with cash and marketable securities increasing
$146.3 million in 2020 to$441.3 million , compared to$295.1 million in the prior year, while debt decreased$25.6 million to$338.8 million compared to$364.4 million in the prior year.
“Fiscal year 2020 was one of the most challenging years in Granite’s history as we navigated the pandemic and the Audit/Compliance Committee’s internal investigation,” said Kyle Larkin, Granite President. “Despite these challenges, our teams performed well, particularly in our vertically integrated businesses. Our continued focus on enhancing profit and cash flow produced record operating cash flow in 2020. Looking ahead, we remain committed to positioning our balance sheet and CAP for future growth and success. While we continue to manage risk in the Heavy Civil Operating Group, I am confident that we have established the appropriate parameters to not only execute on existing projects, but also rebuild the portfolio by prioritizing projects with an appropriate risk profile as we leverage federal, state and local infrastructure funding opportunities.”
Fourth Quarter 2020 Results
Results for the fourth quarter of 2020 were net income of
- Revenue increased 6.8% in the fourth quarter of 2020 to
$945.6 million compared to$885.6 million in the fourth quarter of 2019. - Gross profit increased to
$106.6 million in the fourth quarter of 2020 compared to$51.2 million in the fourth quarter of 2019. - SG&A expenses in the fourth quarter of 2020 were
$100.8 million or 10.7% of revenue, compared to$83.4 million or 9.4% of revenue in the fourth quarter of 2019. The increase was primarily attributable to non-recurring legal and accounting investigation fees. - Adjusted EBITDA (1) increased to
$56.6 million in the fourth quarter of 2020 compared to$8.5 million in the fourth quarter of 2019.
(1) Adjusted net income (loss), adjusted diluted income (loss) 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) Transaction costs include acquisition, integration, acquired intangible amortization expenses, acquisition-related depreciation and synergy costs.
(3) CAP is comprised of contract backlog (unearned revenue and other awards), as well as awarded construction management/general contractor, construction manager at-risk, and progressive design build projects not yet included in contract backlog.
(4) The Heavy Civil Operating Group Old Risk Portfolio include projects with risk criteria that do not align with Granite’s new project selection criteria for the Heavy Civil Operating Group.
(5) Best value procurement work includes construction management/general contractor, construction management at-risk, and progressive design build projects.
Fourth Quarter and Fiscal Year 2020 Segment Results (Unaudited - dollars in thousands)
Transportation Segment |
|
|||||||||||||||||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
||||||||||||||
Revenue |
|
$ |
507,988 |
|
|
$ |
484,572 |
|
|
$ |
23,416 |
|
|
|
4.8 |
% |
|
$ |
2,017,989 |
|
|
$ |
1,892,149 |
|
|
$ |
125,840 |
|
|
|
6.7 |
% |
Gross profit |
|
|
22,860 |
|
|
|
23,985 |
|
|
|
(1,125 |
) |
|
|
(4.7 |
)% |
|
|
133,748 |
|
|
|
55,001 |
|
|
|
78,747 |
|
|
|
143.2 |
% |
Gross profit as a percent of revenue |
|
|
4.5 |
% |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
6.6 |
% |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2020 |
|
|
2019 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Committed and Awarded Projects |
|
$ |
3,192,588 |
|
|
$ |
3,458,632 |
|
|
$ |
(266,044 |
) |
|
|
(7.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the fourth quarter of 2020, Transportation segment revenue increased year-over-year primarily driven by growth in
For the year ended December 31, 2020, revenue and gross profit increases were driven by strength in the Company’s vertically-integrated businesses, which was partially offset by burn of the Heavy Civil Operating Group Old Risk Portfolio. In fiscal year 2020, the Heavy Civil Operating Group Old Risk Portfolio reported
Segment CAP decreased
Water Segment |
|
|||||||||||||||||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
||||||||||||||
Revenue |
|
$ |
122,337 |
|
|
$ |
123,174 |
|
|
$ |
(837 |
) |
|
|
(0.7 |
)% |
|
$ |
440,317 |
|
|
$ |
468,730 |
|
|
$ |
(28,413 |
) |
|
|
(6.1 |
)% |
Gross profit |
|
|
19,758 |
|
|
|
(1,319 |
) |
|
|
21,077 |
|
|
|
(1,598.0 |
)% |
|
|
54,241 |
|
|
|
29,766 |
|
|
|
24,475 |
|
|
|
82.2 |
% |
Gross profit as a percent of revenue |
|
|
16.2 |
% |
|
|
(1.1 |
)% |
|
|
|
|
|
|
|
|
|
|
12.3 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2020 |
|
|
2019 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Committed and Awarded Projects |
|
$ |
311,741 |
|
|
$ |
226,023 |
|
|
$ |
85,718 |
|
|
|
37.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the fourth quarter of 2020, Water segment revenue was flat and gross profit increased year-over-year primarily due to the absence of significant project write downs experienced in the fourth quarter of 2019.
For the year ended December 31, 2020, Water segment revenue decreased due to project delays and limited crew availability attributable to COVID-19. Segment gross profit increased year-over-year due to the absence of significant project write downs experienced in 2019.
Segment CAP increased
Specialty Segment |
|
|||||||||||||||||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
||||||||||||||
Revenue |
|
$ |
210,304 |
|
|
$ |
189,040 |
|
|
$ |
21,264 |
|
|
|
11.2 |
% |
|
$ |
723,391 |
|
|
$ |
727,537 |
|
|
$ |
(4,146 |
) |
|
|
(0.6 |
)% |
Gross profit |
|
|
44,327 |
|
|
|
13,090 |
|
|
|
31,237 |
|
|
|
238.6 |
% |
|
|
92,180 |
|
|
|
86,729 |
|
|
|
5,451 |
|
|
|
6.3 |
% |
Gross profit as a percent of revenue |
|
|
21.1 |
% |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
12.7 |
% |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
2020 |
|
|
2019 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Committed and Awarded Projects |
|
$ |
776,888 |
|
|
$ |
696,570 |
|
|
$ |
80,318 |
|
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the fourth quarter of 2020, Specialty segment revenue increased year-over-year driven by strong site development and renewable energy projects in both private and public markets. Segment reported gross profit for the quarter increased year-over-year, reflecting increased activity in the
For the fiscal year 2020, Specialty segment revenue decreased primarily due to COVID-19 headwinds. Segment gross profit for the fiscal year increased driven by strong project execution, partially offset by a write down related to disputed cost overruns on a tunneling project.
Specialty segment CAP increased
Materials Segment |
|
|||||||||||||||||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
Change |
|
|
2020 |
|
|
2019 |
|
|
Change |
|
||||||||||||||
Revenue |
|
$ |
104,943 |
|
|
$ |
88,801 |
|
|
$ |
16,142 |
|
|
|
18.2 |
% |
|
$ |
380,762 |
|
|
$ |
357,190 |
|
|
$ |
23,572 |
|
|
|
6.6 |
% |
Gross profit |
|
|
19,704 |
|
|
|
15,468 |
|
|
|
4,236 |
|
|
|
27.4 |
% |
|
|
64,619 |
|
|
|
50,182 |
|
|
|
14,437 |
|
|
|
28.8 |
% |
Gross profit as a percent of revenue |
|
|
18.8 |
% |
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
|
|
17.0 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
For the fourth quarter of 2020, Materials segment revenue and gross profit increased year-over-year compared to the prior year quarter reflecting strong sales volumes due in part to favorable weather in the West.
For the year ended December 31, 2020, Materials segment revenue and gross profit increased compared to 2019 largely due to increased sales volumes and operational efficiencies.
Outlook and Guidance
The Company’s expectations for 2021 are:
- Low- to mid-single digit revenue growth
- Adjusted EBITDA margin in the range of 5.5% to 7.5%
Conference Call
Granite will conduct a conference call today, March 30, 2021, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results for the quarter and fiscal year ended December 31, 2020. The Company invites investors to listen to a live audio webcast on its Investor Relations website, investor.graniteconstruction.com. The live call is available by calling 1-866-807-9684; international callers may dial 1-412-317-5415. 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 April 6, 2021, by calling 1-877-344-7529, replay access code 10153446; 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, circumstances, activities, performance, growth, demand, strategic plans, outcomes, outlook, 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, outlook, 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 |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited - in thousands, except share and per share data) |
||||||||
December 31, |
|
2020 |
|
|
2019 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
436,136 |
|
|
$ |
262,273 |
|
Short-term marketable securities |
|
|
— |
|
|
|
27,799 |
|
Receivables, net |
|
|
540,812 |
|
|
|
547,417 |
|
Contract assets |
|
|
164,939 |
|
|
|
211,441 |
|
Inventories |
|
|
82,362 |
|
|
|
88,885 |
|
Equity in construction joint ventures |
|
|
188,798 |
|
|
|
193,110 |
|
Other current assets |
|
|
42,199 |
|
|
|
46,016 |
|
Total current assets |
|
|
1,455,246 |
|
|
|
1,376,941 |
|
Property and equipment, net |
|
|
527,016 |
|
|
|
542,297 |
|
Long-term marketable securities |
|
|
5,200 |
|
|
|
5,000 |
|
Investments in affiliates |
|
|
75,287 |
|
|
|
84,176 |
|
Goodwill |
|
|
116,777 |
|
|
|
264,279 |
|
Right of use assets |
|
|
62,256 |
|
|
|
72,534 |
|
Deferred income taxes, net |
|
|
41,839 |
|
|
|
50,158 |
|
Other noncurrent assets |
|
|
96,375 |
|
|
|
106,703 |
|
Total assets |
|
$ |
2,379,996 |
|
|
$ |
2,502,088 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Current maturities of long-term debt |
|
$ |
8,278 |
|
|
$ |
8,244 |
|
Accounts payable |
|
|
359,160 |
|
|
|
400,775 |
|
Contract liabilities |
|
|
171,321 |
|
|
|
95,737 |
|
Accrued expenses and other current liabilities |
|
|
404,497 |
|
|
|
337,300 |
|
Total current liabilities |
|
|
943,256 |
|
|
|
842,056 |
|
Long-term debt |
|
|
330,522 |
|
|
|
356,108 |
|
Lease liabilities |
|
|
46,769 |
|
|
|
58,618 |
|
Deferred income taxes, net |
|
|
3,155 |
|
|
|
3,754 |
|
Other long-term liabilities |
|
|
64,684 |
|
|
|
63,136 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
457 |
|
|
|
456 |
|
Additional paid-in capital |
|
|
555,407 |
|
|
|
549,307 |
|
Accumulated other comprehensive loss |
|
|
(5,035 |
) |
|
|
(2,645 |
) |
Retained earnings |
|
|
424,835 |
|
|
|
594,353 |
|
Total Granite Construction Incorporated shareholders’ equity |
|
|
975,664 |
|
|
|
1,141,471 |
|
Non-controlling interests |
|
|
15,946 |
|
|
|
36,945 |
|
Total equity |
|
|
991,610 |
|
|
|
1,178,416 |
|
Total liabilities and equity |
|
$ |
2,379,996 |
|
|
$ |
2,502,088 |
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited - in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
$ |
507,988 |
|
|
$ |
484,572 |
|
|
$ |
2,017,989 |
|
|
$ |
1,892,149 |
|
Water |
|
|
122,337 |
|
|
|
123,174 |
|
|
|
440,317 |
|
|
|
468,730 |
|
Specialty |
|
|
210,304 |
|
|
|
189,040 |
|
|
|
723,391 |
|
|
|
727,537 |
|
Materials |
|
|
104,943 |
|
|
|
88,801 |
|
|
|
380,762 |
|
|
|
357,190 |
|
Total revenue |
|
|
945,572 |
|
|
|
885,587 |
|
|
|
3,562,459 |
|
|
|
3,445,606 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation |
|
|
485,128 |
|
|
|
460,587 |
|
|
|
1,884,241 |
|
|
|
1,837,148 |
|
Water |
|
|
102,579 |
|
|
|
124,493 |
|
|
|
386,076 |
|
|
|
438,964 |
|
Specialty |
|
|
165,977 |
|
|
|
175,950 |
|
|
|
631,211 |
|
|
|
640,808 |
|
Materials |
|
|
85,239 |
|
|
|
73,333 |
|
|
|
316,143 |
|
|
|
307,008 |
|
Total cost of revenue |
|
|
838,923 |
|
|
|
834,363 |
|
|
|
3,217,671 |
|
|
|
3,223,928 |
|
Gross profit |
|
|
106,649 |
|
|
|
51,224 |
|
|
|
344,788 |
|
|
|
221,678 |
|
Selling, general and administrative expenses |
|
|
100,752 |
|
|
|
83,404 |
|
|
|
353,320 |
|
|
|
307,981 |
|
Acquisition and integration expenses |
|
|
(20 |
) |
|
|
1,530 |
|
|
|
53 |
|
|
|
15,299 |
|
Non-cash impairment charges |
|
|
— |
|
|
|
— |
|
|
|
156,690 |
|
|
|
— |
|
Gain on sales of property and equipment |
|
|
(2,060 |
) |
|
|
(4,767 |
) |
|
|
(6,930 |
) |
|
|
(18,703 |
) |
Operating income (loss) |
|
|
7,977 |
|
|
|
(28,943 |
) |
|
|
(158,345 |
) |
|
|
(82,899 |
) |
Other expense (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(283 |
) |
|
|
(1,176 |
) |
|
|
(3,096 |
) |
|
|
(7,433 |
) |
Interest expense |
|
|
6,298 |
|
|
|
5,363 |
|
|
|
24,200 |
|
|
|
18,374 |
|
Equity in income of affiliates, net |
|
|
(4,368 |
) |
|
|
(1,295 |
) |
|
|
(8,783 |
) |
|
|
(11,454 |
) |
Other income, net |
|
|
(4,295 |
) |
|
|
(2,914 |
) |
|
|
(4,203 |
) |
|
|
(5,308 |
) |
Total other (income) expense |
|
|
(2,648 |
) |
|
|
(22 |
) |
|
|
8,118 |
|
|
|
(5,821 |
) |
Income (loss) before provision for (benefit from) income taxes |
|
|
10,625 |
|
|
|
(28,921 |
) |
|
|
(166,463 |
) |
|
|
(77,078 |
) |
Provision for (benefit from) income taxes |
|
|
4,938 |
|
|
|
(8,860 |
) |
|
|
(282 |
) |
|
|
(20,376 |
) |
Net income (loss) |
|
|
5,687 |
|
|
|
(20,061 |
) |
|
|
(166,181 |
) |
|
|
(56,702 |
) |
Amount attributable to non-controlling interests |
|
|
2,323 |
|
|
|
681 |
|
|
|
21,064 |
|
|
|
(3,489 |
) |
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
8,010 |
|
|
$ |
(19,380 |
) |
|
$ |
(145,117 |
) |
|
$ |
(60,191 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.18 |
|
|
$ |
(0.42 |
) |
|
$ |
(3.18 |
) |
|
$ |
(1.29 |
) |
Diluted |
|
$ |
0.17 |
|
|
$ |
(0.42 |
) |
|
$ |
(3.18 |
) |
|
$ |
(1.29 |
) |
Weighted average shares of common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
45,660 |
|
|
|
45,930 |
|
|
|
45,614 |
|
|
|
46,559 |
|
Diluted |
|
|
46,275 |
|
|
|
45,930 |
|
|
|
45,614 |
|
|
|
46,559 |
|
Dividends per common share |
|
$ |
0.13 |
|
|
$ |
0.13 |
|
|
$ |
0.52 |
|
|
$ |
0.52 |
|
GRANITE CONSTRUCTION INCORPORATED |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited - in thousands) |
||||||||
Years Ended December 31, |
|
2020 |
|
|
2019 |
|
||
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(166,181 |
) |
|
$ |
(56,702 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
112,958 |
|
|
|
121,993 |
|
Amortization related to the 2.75% Convertible Notes |
|
|
8,693 |
|
|
|
1,425 |
|
Gain on sales of property and equipment, net |
|
|
(6,930 |
) |
|
|
(18,703 |
) |
Deferred income taxes |
|
|
8,817 |
|
|
|
(22,924 |
) |
Stock-based compensation |
|
|
6,377 |
|
|
|
10,213 |
|
Equity in net loss from unconsolidated joint ventures |
|
|
51,486 |
|
|
|
120,632 |
|
Net income from affiliates |
|
|
(8,783 |
) |
|
|
(11,454 |
) |
Non-cash impairment charges |
|
|
156,690 |
|
|
|
— |
|
Other non-cash adjustments |
|
|
1,729 |
|
|
|
4,020 |
|
Changes in assets and liabilities, net of the effect of an acquisition in 2019 |
|
|
103,604 |
|
|
|
(37,062 |
) |
Net cash provided by operating activities |
|
|
268,460 |
|
|
|
111,438 |
|
Investing activities |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
|
(9,996 |
) |
|
|
— |
|
Maturities of marketable securities |
|
|
10,000 |
|
|
|
30,000 |
|
Proceeds from called marketable securities |
|
|
24,996 |
|
|
|
— |
|
Purchases of property and equipment |
|
|
(93,253 |
) |
|
|
(106,828 |
) |
Proceeds from sales of property and equipment |
|
|
16,702 |
|
|
|
37,091 |
|
Cash paid to purchase business |
|
|
— |
|
|
|
(6,227 |
) |
Proceeds from the sale of an investment |
|
|
5,000 |
|
|
|
— |
|
Other investing activities, net |
|
|
5,289 |
|
|
|
5,642 |
|
Net cash used in investing activities |
|
|
(41,262 |
) |
|
|
(40,322 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
50,000 |
|
|
|
105,574 |
|
Proceeds from issuance of 2.75% Convertible Notes, net |
|
|
— |
|
|
|
230,000 |
|
Proceeds from issuance of warrants, net |
|
|
— |
|
|
|
11,500 |
|
Purchase of Hedge Option, net |
|
|
— |
|
|
|
(37,375 |
) |
Debt principal repayments |
|
|
(83,433 |
) |
|
|
(313,150 |
) |
Cash dividends paid |
|
|
(23,712 |
) |
|
|
(24,316 |
) |
Repurchases of common stock |
|
|
(885 |
) |
|
|
(36,900 |
) |
Contributions from non-controlling partners |
|
|
11,875 |
|
|
|
68 |
|
Distributions to non-controlling partners |
|
|
(11,810 |
) |
|
|
(12,235 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(6,507 |
) |
Other financing activities, net |
|
|
307 |
|
|
|
1,704 |
|
Net cash used in financing activities |
|
|
(57,658 |
) |
|
|
(81,637 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
169,540 |
|
|
|
(10,521 |
) |
Cash, cash equivalents and |
|
|
268,108 |
|
|
|
278,629 |
|
Cash, cash equivalents and |
|
$ |
437,648 |
|
|
$ |
268,108 |
|
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 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
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
EBITDA(1) |
||||||||||||||||
(Unaudited - dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
8,010 |
|
|
$ |
(19,380 |
) |
|
$ |
(145,117 |
) |
|
$ |
(60,191 |
) |
Depreciation, depletion and amortization expense(2) |
|
|
30,480 |
|
|
|
30,718 |
|
|
|
121,651 |
|
|
|
123,418 |
|
Provision for (benefit from) income taxes |
|
|
4,938 |
|
|
|
(8,860 |
) |
|
|
(282 |
) |
|
|
(20,376 |
) |
Interest expense, net of interest income |
|
|
6,015 |
|
|
|
4,187 |
|
|
|
21,104 |
|
|
|
10,941 |
|
EBITDA(1) |
|
$ |
49,443 |
|
|
$ |
6,665 |
|
|
$ |
(2,644 |
) |
|
$ |
53,792 |
|
EBITDA margin(3) |
|
|
5.2 |
% |
|
|
0.8 |
% |
|
|
(0.1 |
%) |
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring legal and accounting fees |
|
$ |
7,135 |
|
|
$ |
— |
|
|
$ |
35,575 |
|
|
$ |
— |
|
Non-cash impairment charges |
|
|
— |
|
|
|
— |
|
|
|
156,690 |
|
|
|
— |
|
Transaction costs |
|
$ |
(20 |
) |
|
$ |
1,811 |
|
|
$ |
53 |
|
|
$ |
17,944 |
|
Adjusted EBITDA(1) |
|
$ |
56,558 |
|
|
$ |
8,476 |
|
|
$ |
189,674 |
|
|
$ |
71,736 |
|
Adjusted EBITDA margin(3) |
|
|
6.0 |
% |
|
|
1.0 |
% |
|
|
5.3 |
% |
|
|
2.1 |
% |
(1) We define EBITDA as |
||||||||||||||||
(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 consolidated statements of operations of Granite Construction Incorporated. |
||||||||||||||||
(3) Represents EBITDA or Adjusted EBITDA divided by consolidated revenue of |
GRANITE CONSTRUCTION INCORPORATED |
||||||||||||||||
Adjusted Net (Loss) Income Reconciliation |
||||||||||||||||
(Unaudited - in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
||||
Income (loss) before provision for (benefit from) income taxes |
|
$ |
10,625 |
|
|
$ |
(28,921 |
) |
|
$ |
(166,463 |
) |
|
$ |
(77,078 |
) |
Transaction costs |
|
|
5,696 |
|
|
|
8,170 |
|
|
|
23,287 |
|
|
|
43,497 |
|
Amortization of debt discount(1) |
|
|
1,696 |
|
|
|
1,071 |
|
|
|
6,606 |
|
|
|
1,071 |
|
Non-cash impairment |
|
|
— |
|
|
|
— |
|
|
|
156,690 |
|
|
|
— |
|
Non-recurring legal and accounting fees |
|
|
7,135 |
|
|
|
— |
|
|
|
35,575 |
|
|
|
— |
|
Adjusted income (loss) before provision for (benefit from) income taxes |
|
$ |
25,152 |
|
|
$ |
(19,680 |
) |
|
$ |
55,695 |
|
|
$ |
(32,510 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes |
|
$ |
4,938 |
|
|
$ |
(8,860 |
) |
|
$ |
(282 |
) |
|
$ |
(20,376 |
) |
Tax effect of the transaction costs and amortization of debt discount(2) |
|
|
3,777 |
|
|
|
2,403 |
|
|
|
17,022 |
|
|
|
11,588 |
|
Adjusted provision for (benefit from) income taxes |
|
$ |
8,715 |
|
|
$ |
(6,457 |
) |
|
$ |
16,740 |
|
|
$ |
(8,788 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Granite Construction Incorporated |
|
$ |
8,010 |
|
|
$ |
(19,380 |
) |
|
$ |
(145,117 |
) |
|
$ |
(60,191 |
) |
After-tax transaction costs, amortization of debt discount, non-cash impairment and non-recurring legal and accounting fees |
|
|
10,750 |
|
|
|
6,838 |
|
|
|
205,136 |
|
|
|
32,980 |
|
Adjusted net income (loss) attributable to Granite Construction Incorporated |
|
$ |
18,760 |
|
|
$ |
(12,542 |
) |
|
$ |
60,019 |
|
|
$ |
(27,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share attributable to common shareholders |
|
$ |
0.17 |
|
|
$ |
(0.42 |
) |
|
$ |
(3.18 |
) |
|
$ |
(1.29 |
) |
After-tax transaction costs and amortization of debt discount |
|
|
0.24 |
|
|
|
0.15 |
|
|
|
4.48 |
|
|
|
0.71 |
|
Adjusted diluted net income (loss) per share attributable to common shareholders |
|
$ |
0.41 |
|
|
$ |
(0.27 |
) |
|
$ |
1.30 |
|
|
$ |
(0.58 |
) |
(1) Under |
||||||||||||||||
(2) 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/20210330005386/en/
Investors
Wenjun Xu, 831-761-7861
Or
Media
Erin Kuhlman, 831-768-4111
Source: Granite Construction Incorporated