Delaware | 1-12911 | 77-0239383 | ||
(State or Other Jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | 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 August 3, 2011 |
2
GRANITE CONSTRUCTION INCORPORATED |
||||
By: | /s/ Laurel J. Krzeminski | |||
Laurel J. Krzeminski | ||||
Vice President and Chief Financial Officer |
||||
Contact: | Jacque Fourchy (831) 761-4741 |
§ | Revenue up 7 percent from a year ago | ||
§ | Net income of $4.9 million compared with net loss of $6.7 million | ||
§ | SG&A decreased 24 percent to $38.8 million | ||
§ | Total contract backlog of $2.1 billion compared with $1.6 billion a year ago | ||
§ | Balance sheet strong with $317.9 million in cash, cash equivalents and marketable securities |
§ | Revenue totaled $484.7 million compared with $454.2 million in 2010, driven largely by an increase in Construction segment revenue. | ||
§ | Gross profit margin was 9 percent compared with 11 percent in 2010. | ||
§ | Selling, general and administrative expenses for the second quarter were $38.8 million compared with $51.4 million for the same period last year as a result of the Companys continued focus on improving efficiencies as well as the actions the Company took in late 2010 to reduce its cost structure. |
§ | Operating income for the quarter was $9.4 million compared with $2.1 million in the prior year driven largely by a decrease in selling, general and administrative expenses. | ||
§ | Net income attributable to noncontrolling interests in joint ventures was $1.2 million compared with $4.1 million in 2010. | ||
§ | Total contract backlog at June 30, 2011, was $2.1 billion compared with $1.6 billion a year ago due to continued bidding successes. |
§ | Construction revenue for the quarter increased 10 percent to $260.6 million due to a higher volume of work completed in the quarter compared to a year ago. | ||
§ | Gross profit margin for the second quarter was 9 percent compared with 10 percent a year ago reflecting the continued pressure on margins due to intense competition. |
§ | Large Project Construction revenue for the quarter increased 6 percent to $162.3 million reflecting continued progress on the Queens Bored Tunnels and Structures project in the East and the SR 520 and Mountain View Corridor projects in the Northwest. | ||
§ | Gross profit margin for the quarter was 8 percent compared with 14 percent for the same period last year. The decrease is associated with 74.4 million in revenue recognized on projects that have not reached the profit recognition threshold compared with 34.4 million last year. In addition, the Company settled a project design issue in the second quarter of 2010 with no corresponding settlement in 2011. |
§ | Construction Materials revenue for the quarter totaled $58.1 million compared with $61.1 million for the same period last year. | ||
§ | Gross profit on the sale of construction materials was 15 percent compared with 7 percent in 2010 reflecting increased production efficiencies to meet growing Construction backlog. |
2 of 7
3 of 7
June 30, | December 31, | June 30, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
ASSETS |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
$ | 190,069 | $ | 252,022 | $ | 208,450 | ||||||
Short-term marketable securities |
78,255 | 109,447 | 73,566 | |||||||||
Receivables, net |
283,944 | 243,986 | 295,779 | |||||||||
Costs and estimated earnings in excess of billings |
51,739 | 10,519 | 56,665 | |||||||||
Inventories |
64,727 | 51,018 | 48,529 | |||||||||
Real estate held for development and sale |
78,725 | 75,716 | 148,897 | |||||||||
Deferred income taxes |
52,714 | 53,877 | 31,870 | |||||||||
Equity in construction joint ventures |
87,653 | 74,716 | 72,571 | |||||||||
Other current assets |
34,779 | 42,555 | 39,031 | |||||||||
Total current assets |
922,605 | 913,856 | 975,358 | |||||||||
Property and equipment, net |
464,616 | 473,607 | 501,258 | |||||||||
Long-term marketable securities |
49,580 | 34,259 | 68,291 | |||||||||
Investments in affiliates |
32,932 | 31,410 | 31,210 | |||||||||
Other noncurrent assets |
82,214 | 82,401 | 79,060 | |||||||||
Total assets |
$ | 1,551,947 | $ | 1,535,533 | $ | 1,655,177 | ||||||
LIABILITIES AND EQUITY |
||||||||||||
Current liabilities |
||||||||||||
Current maturities of long-term debt |
$ | 8,351 | $ | 8,359 | $ | 8,538 | ||||||
Current maturities of non-recourse debt |
16,454 | 29,760 | 39,657 | |||||||||
Accounts payable |
179,664 | 129,700 | 173,637 | |||||||||
Billings in excess of costs and estimated earnings |
122,014 | 120,185 | 144,935 | |||||||||
Accrued expenses and other current liabilities |
156,727 | 150,773 | 161,632 | |||||||||
Total current liabilities |
483,210 | 438,777 | 528,399 | |||||||||
Long-term debt |
208,519 | 217,014 | 216,870 | |||||||||
Long-term non-recourse debt |
28,907 | 25,337 | 16,615 | |||||||||
Other long-term liabilities |
46,460 | 47,996 | 49,197 | |||||||||
Deferred income taxes |
10,983 | 10,774 | 27,905 | |||||||||
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 38,667,457 shares as of
June 30, 2011, 38,745,542 shares as of December 31,
2010 and 38,788,581 shares as of June 30, 2010 |
387 | 387 | 388 | |||||||||
Additional paid-in capital |
105,287 | 104,232 | 98,142 | |||||||||
Retained earnings |
642,228 | 656,412 | 677,873 | |||||||||
Total Granite Construction Incorporated shareholders equity |
747,902 | 761,031 | 776,403 | |||||||||
Noncontrolling interests |
25,966 | 34,604 | 39,788 | |||||||||
Total equity |
773,868 | 795,635 | 816,191 | |||||||||
Total liabilities and equity |
$ | 1,551,947 | $ | 1,535,533 | $ | 1,655,177 | ||||||
4 of 7
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue |
||||||||||||||||
Construction |
$ | 260,600 | $ | 237,943 | $ | 353,292 | $ | 319,129 | ||||||||
Large project construction |
162,338 | 153,328 | 300,158 | 259,653 | ||||||||||||
Construction materials |
58,114 | 61,089 | 81,912 | 87,253 | ||||||||||||
Real estate |
3,622 | 1,844 | 6,043 | 8,852 | ||||||||||||
Total revenue |
484,674 | 454,204 | 741,405 | 674,887 | ||||||||||||
Cost of revenue |
||||||||||||||||
Construction |
237,211 | 215,042 | 324,350 | 294,382 | ||||||||||||
Large project construction |
149,680 | 131,493 | 256,202 | 228,335 | ||||||||||||
Construction materials |
49,644 | 56,609 | 80,712 | 89,898 | ||||||||||||
Real estate |
3,183 | 1,362 | 5,197 | 6,860 | ||||||||||||
Total cost of revenue |
439,718 | 404,506 | 666,461 | 619,475 | ||||||||||||
Gross profit |
44,956 | 49,698 | 74,944 | 55,412 | ||||||||||||
Selling, general and administrative expenses |
38,793 | 51,357 | 82,165 | 106,649 | ||||||||||||
Gain on sales of property and equipment |
3,270 | 3,800 | 5,974 | 8,252 | ||||||||||||
Operating income (loss) |
9,433 | 2,141 | (1,247 | ) | (42,985 | ) | ||||||||||
Other expense |
||||||||||||||||
Interest income |
575 | 1,098 | 1,819 | 2,037 | ||||||||||||
Interest expense |
(879 | ) | (3,013 | ) | (4,235 | ) | (6,747 | ) | ||||||||
Equity in loss of affiliates |
(181 | ) | (387 | ) | (438 | ) | (706 | ) | ||||||||
Other (expense) income, net |
(688 | ) | 1,934 | (118 | ) | 4,831 | ||||||||||
Total other expense |
(1,173 | ) | (368 | ) | (2,972 | ) | (585 | ) | ||||||||
Income (loss) before provision for
(benefit from) income taxes |
8,260 | 1,773 | (4,219 | ) | (43,570 | ) | ||||||||||
Provision for (benefit from) income taxes |
2,087 | 4,406 | (3,136 | ) | (3,207 | ) | ||||||||||
Net income (loss) |
6,173 | (2,633 | ) | (1,083 | ) | (40,363 | ) | |||||||||
Amount attributable to noncontrolling interests |
(1,227 | ) | (4,058 | ) | (2,978 | ) | (7,282 | ) | ||||||||
Net income (loss) attributable to
Granite Construction Incorporated |
$ | 4,946 | $ | (6,691 | ) | $ | (4,061 | ) | $ | (47,645 | ) | |||||
Net income (loss) per share attributable to
common shareholders: |
||||||||||||||||
Basic (1) |
$ | 0.13 | $ | (0.18 | ) | $ | (0.11 | ) | $ | (1.26 | ) | |||||
Diluted (1) |
$ | 0.13 | $ | (0.18 | ) | $ | (0.11 | ) | $ | (1.26 | ) | |||||
Weighted average shares of common stock: |
||||||||||||||||
Basic |
38,140 | 37,850 | 38,052 | 37,770 | ||||||||||||
Diluted |
38,479 | 37,850 | 38,052 | 37,770 | ||||||||||||
Note: |
(1) | Computed using the two-class method, except when in a net loss position |
5 of 7
Six Months Ended June 30, | 2011 | 2010 | ||||||
Operating activities |
||||||||
Net loss |
$ | (1,083 | ) | $ | (40,363 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation, depletion and amortization |
30,464 | 35,839 | ||||||
Gain on sales of property and equipment |
(5,974 | ) | (8,252 | ) | ||||
Stock-based compensation |
5,913 | 6,885 | ||||||
Gain on company owned life insurance |
(536 | ) | (1,748 | ) | ||||
Changes in assets and liabilities, net of the effects of consolidations |
(45,520 | ) | (31,279 | ) | ||||
Net cash used in operating activities |
(16,736 | ) | (38,918 | ) | ||||
Investing activities |
||||||||
Purchases of marketable securities |
(65,287 | ) | (60,073 | ) | ||||
Maturities of marketable securities |
58,375 | 24,900 | ||||||
Proceeds from sale of marketable securities |
19,268 | 10,000 | ||||||
Proceeds from company owned life insurance |
| 2,078 | ||||||
Additions to property and equipment |
(27,542 | ) | (21,809 | ) | ||||
Proceeds from sales of property and equipment |
10,266 | 11,936 | ||||||
Purchase of private preferred stock |
(50 | ) | (6,400 | ) | ||||
Other investing activities, net |
170 | (869 | ) | |||||
Net cash used in investing activities |
(4,800 | ) | (40,237 | ) | ||||
Financing activities |
||||||||
Long-term debt principal payments |
(16,151 | ) | (18,155 | ) | ||||
Cash dividends paid |
(10,061 | ) | (10,067 | ) | ||||
Purchase of common stock |
(3,662 | ) | (3,434 | ) | ||||
Distributions to noncontrolling partners, net |
(11,616 | ) | (19,797 | ) | ||||
Other financing activities |
1,073 | 102 | ||||||
Net cash used in financing activities |
(40,417 | ) | (51,351 | ) | ||||
Decrease in cash and cash equivalents |
(61,953 | ) | (130,506 | ) | ||||
Cash and cash equivalents at beginning of period |
252,022 | 338,956 | ||||||
Cash and cash equivalents at end of period |
$ | 190,069 | $ | 208,450 | ||||
6 of 7
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
Large Project | Construction | Large Project | Construction | |||||||||||||||||||||||||||||||
Construction | Construction | Materials | Real Estate | Construction | Construction | Materials | Real Estate | |||||||||||||||||||||||||||
2011 |
||||||||||||||||||||||||||||||||||
Revenue |
$ | 260,600 | $ | 162,338 | $ | 58,114 | $ | 3,622 | $ | 353,292 | $ | 300,158 | $ | 81,912 | $ | 6,043 | ||||||||||||||||||
Gross profit |
23,389 | 12,658 | 8,470 | 439 | 28,942 | 43,956 | 1,200 | 846 | ||||||||||||||||||||||||||
Gross profit as a percent of revenue |
9.0 | % | 7.8 | % | 14.6 | % | 12.1 | % | 8.2 | % | 14.6 | % | 1.5 | % | 14.0 | % | ||||||||||||||||||
2010 |
||||||||||||||||||||||||||||||||||
Revenue |
$ | 237,943 | $ | 153,328 | $ | 61,089 | $ | 1,844 | $ | 319,129 | $ | 259,653 | $ | 87,253 | $ | 8,852 | ||||||||||||||||||
Gross profit (loss) |
22,901 | 21,835 | 4,480 | 482 | 24,747 | 31,318 | (2,645 | ) | 1,992 | |||||||||||||||||||||||||
Gross profit (loss) as a percent of revenue |
9.6 | % | 14.2 | % | 7.3 | % | 26.1 | % | 7.8 | % | 12.1 | % | (3.0 | )% | 22.5 | % | ||||||||||||||||||
Contract Backlog by Segment | June 30, 2011 | March 31, 2011 | June 30, 2010 | |||||||||||||||||||||
Construction |
$ | 800,434 | 38.0 | % | $ | 696,055 | 34.7 | % | $ | 594,214 | 38.3 | % | ||||||||||||
Large project construction |
1,306,961 | 62.0 | % | 1,307,622 | 65.3 | % | 957,080 | 61.7 | % | |||||||||||||||
Total |
$ | 2,107,395 | 100.0 | % | $ | 2,003,677 | 100.0 | % | $ | 1,551,294 | 100.0 | % | ||||||||||||
7 of 7
=!8^(__@#H@'9!'ZU8__\