Delaware (State or Other Jurisdiction of Incorporation) |
1-12911 (Commission File Number) |
77-0239383 (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition | ||||||||
Item 9.01. Financial Statements and Exhibits | ||||||||
SIGNATURE | ||||||||
INDEX TO EXHIBITS | ||||||||
EX-99.1 |
Exhibit | ||||
Number | Description | |||
99.1 | Press Release of the Company, dated May 4, 2011 |
2
GRANITE CONSTRUCTION INCORPORATED |
||||
By: | /s/ Laurel J. Krzeminski | |||
Laurel J. Krzeminski | ||||
Vice President and Chief Financial Officer | ||||
| Revenue increased 16 percent from a year ago | ||
| SG&A decreased 22 percent in the quarter to $43.4 million | ||
| Net loss of $9.0 million compared with net loss in Q1 2010 of $41.0 million | ||
| $335 million in new awards through March 31, 2011 | ||
| Balance sheet remains strong, with $370.1 million in cash and marketable securities |
| Revenue totaled $256.7 million compared with $220.7 million in 2010, driven largely by an increase in Large Project revenue. | ||
| Gross profit margin was 12 percent compared with 3 percent in 2010, driven primarily by a large project in the East reaching the profit recognition threshold. | ||
| Operating loss for the quarter was $10.7 million compared with $45.1 million in the prior year. |
| Selling, general and administrative expenses for the first quarter were $43.4 million compared with $55.3 million for the same period last year as a result of the Companys Enterprise Improvement Project implemented in late 2010. |
| Net income attributable to noncontrolling interests in joint ventures was $1.8 million compared with $3.2 million in 2010. |
| Total contract backlog at March 31, 2011, was $2.0 billion compared with $1.9 billion at December 31, 2010, and $1.6 billion at March 31, 2010. |
| Construction revenue for the quarter increased $11.5 million to $92.7 million due to a higher volume of work completed in the quarter compared to a year ago. |
| Gross profit margin for the first quarter was 6 percent compared with 2 percent a year ago. |
| Large Project Construction revenue for the quarter increased $31.5 million to $137.8 million reflecting continued progress on several projects including the Queens Bored Tunnels and Structures project in the East, the SR 520 project in Washington and the Mountain View Corridor project in Utah. |
| Gross profit margin for the quarter increased to 23 percent compared with 9 percent for the same period last year. The increase reflects profitability associated with the Queens Bored Tunnel and Structures project reaching the percentage of completion threshold. |
| Construction Materials revenue for the quarter totaled $23.8 million compared with $26.2 million for the same period last year as the Company experienced reduced demand for asphalt materials. |
| Gross loss on the sale of construction materials was $7.3 million in 2011 compared with $7.1 million in 2010. |
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3 of 7
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 | ||||||
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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 | ||||||
(1) | Computed using the two-class method, except when in a net loss position |
5 of 7
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 | ||||
6 of 7
Three Months Ended March 31, | ||||||||||||||||
Large Project | Construction | |||||||||||||||
Construction | Construction | Materials | 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 | % |
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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