-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QAVKec4jIv8ayIC9U5egHS2T6LCloLjp0d9zDWf446/KUkcyHFfmJWykbDXD/Opp XVboLBqD/F4U4giH7RG7Ww== 0001275287-06-002227.txt : 20060427 0001275287-06-002227.hdr.sgml : 20060427 20060427060208 ACCESSION NUMBER: 0001275287-06-002227 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060427 DATE AS OF CHANGE: 20060427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GRANITE CONSTRUCTION INC CENTRAL INDEX KEY: 0000861459 STANDARD INDUSTRIAL CLASSIFICATION: HEAVY CONSTRUCTION OTHER THAN BUILDING CONST - CONTRACTORS [1600] IRS NUMBER: 770239383 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12911 FILM NUMBER: 06782897 BUSINESS ADDRESS: STREET 1: 585 WEST BEACH ST CITY: WATSONVILLE STATE: CA ZIP: 95076 BUSINESS PHONE: 8317241011 MAIL ADDRESS: STREET 1: 585 WEST BEACH ST CITY: WATSONVILLE STATE: CA ZIP: 95076 8-K 1 gc5575.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) April 26, 2006 GRANITE CONSTRUCTION INCORPORATED ------------------------------------------------------ (Exact name of registrant as specified in its charter) ---------- Delaware 1-12911 77-0239383 ---------------------------- ------------------------ ------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 585 West Beach Street Watsonville, California 95076 --------------------------------------------------- (Address of principal executive offices) (Zip Code) (831) 724-1011 -------------------------------------------------- Registrant's telephone number, including area code Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] 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. On April 26, 2006, Granite Construction Incorporated (the "Company") issued a press release with respect to its earnings for the quarter ended March 31, 2006, a copy of which is attached as Exhibit 99.1. The information set forth is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition" and shall not be deemed "filed" for purpose of Section 18 of the Securities Exchange Act of 1934, nor shall the information, including the Exhibit, be deemed incorporated by reference in any filing of the Company, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits. The following exhibits are attached hereto and furnished herewith: EXHIBIT NUMBER EXHIBIT TITLE - ------- ------------------------------------------------------------ 99.1 Press Release of Registrant, dated April 26, 2006, its first quarter financial results 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GRANITE CONSTRUCTION INCORPORATED Date: April 26, 2006 By: /s/ William E. Barton --------------------------- William E. Barton Senior Vice President and Chief Financial Officer 3 INDEX TO EXHIBITS Exhibit Number Document - -------- -------------------------------------------------------------------- 99.1 Press Release of Registrant, dated April 26, 2006, its first quarter financial results 4 EX-99.1 2 gc5575ex991.txt EXHIBIT 99.1 Exhibit 99.1 GRANITE CONSTRUCTION INCORPORATED REPORTS FIRST QUARTER 2006 RESULTS WATSONVILLE, Calif., April 26 /PRNewswire-FirstCall/ -- Granite Construction Incorporated (NYSE: GVA) today announced a net loss of $1.4 million, or $0.03 per diluted share for the first quarter ended March 31, 2006. This compares with a net loss of $8.3 million or $0.20 per share for the same period last year. William G. Dorey, president and chief executive officer, said, "I am pleased to report that the momentum that fueled the Branch Division's strong finish in 2005 has carried over into 2006. Despite very wet weather in March in a number of our West-coast markets, our branch business is off to a great start. The branches continue to capitalize on healthy public and private sector markets and a strong demand for our construction materials throughout the West. With regard to our Heavy Construction Division (HCD), we are disappointed that they did not contribute to our first quarter bottom line results as we had expected. We remain focused on the potential of our large project business and continue to work diligently to improve the gross margins on this work." Total Company Operating Results - Quarter The operating loss for the quarter was $3.8 million compared with $11.9 million for the first quarter ended March 31, 2005. Included in the first quarter 2006 results is a gain of approximately $2.3 million from the sale of an investment property as well as a higher level of equipment sales than in the prior period. Revenue for the first quarter 2006 totaled $496.0 million compared with $420.9 million a year ago. Total gross profit as a percent of revenue increased 1.7% to 8.1%. Backlog at March 31, 2006 totaled $2.5 billion compared with $2.6 billion at March 31, 2005. Operating Results by Division - Quarter Branch Division operating income for the quarter increased to $18.8 million compared with an operating loss of $1.1 million a year ago. Revenue for the division totaled $251.1 million, an increase of $32.4 million or 15% over the same period in 2005. Backlog increased 51% to $877.5 million compared with $582.8 million at March 31, 2005. Branch Division gross profit as a percent of revenue was 17.4% compared with 9.0% for the first quarter 2005. The increase in gross margin reflects approximately $7.0 million from the settlement of outstanding issues on two projects as well as higher profit margins for both construction and construction materials. HCD operating loss for the quarter was $12.1 million compared with a loss of $1.3 million in the first quarter 2005. The loss primarily reflects the recognition of significant increases in the estimated costs to complete six large projects. HCD revenue for the quarter totaled $244.8 million versus $202.0 million for the same period last year. Backlog was $1.7 billion at March 31, 2006 compared with $2.0 billion at March 31, 2005. HCD incurred a loss at the gross margin level of 1.2% of revenue compared with a profit of 3.5% of revenue for the first quarter 2005. Outlook Commenting on the Company's outlook, "Given the current prospects for our Branch Division, and assuming no significant downturn in market conditions, we expect the 2006 operating income for the division to meet or exceed the record level reached in 2005. Despite a disappointing start, we continue to expect incremental improvement from HCD in 2006," said Dorey. Financial Results The financial information in this announcement reflects the Company's preliminary results subject to completion of the quarterly review. The final quarterly financial results will appear in Granite's Form 10-Q, which will be filed on or before May 10, 2006. Conference Call Granite will conduct a conference call tomorrow, April 27, 2006, at 11:00 a.m. ET/ 8:00 a.m. PT to discuss the results for the quarter. The conference call will be Webcast live and can be accessed at http://www.graniteconstruction.com/investor-relations. Company Description Granite, a member of the S&P 400 Midcap Index, the Domini 400 Social Index and the Russell 2000, is one of the nation's largest diversified heavy civil contractors and construction materials producers. Granite Construction serves public and private sector clients through its offices nationwide. For more information about the company, please visit their website at www.graniteconstruction.com. This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represents our management's beliefs and assumptions concerning future events such as statements related to the existence of bidding opportunities and economic conditions on the Company's future results. Additionally, forward-looking statements include statements that can be identified by the use of forward-looking terminology such as "believes," "expects," "appears," "may," "will," "should," "look for," or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. All such forward-looking statements are subject to risks and uncertainties that could cause actual results of operations and financial condition and other events, as well as the timing thereof, to differ materially from those expressed or implied in such forward-looking statements. Specific risk factors include, without limitation, changes in the composition of applicable federal and state legislation appropriation committees; federal and state appropriation changes for infrastructure spending; the general state of the economy; job productivity; accuracy of project estimates; weather conditions; competition and pricing pressures; and state referendums and initiatives. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. You should also understand that many important factors in addition to those discussed, referred to or incorporated by reference in this press release, could cause our results to differ materially from those expressed in the forward looking statements. In light of these risks and uncertainties, it is important to be aware that the forward looking events discussed in this release may not occur. We undertake no obligation to revise or update publicly any forward-looking statements to conform the statement to actual results or changes in the Company's expectations. For further information regarding risks and uncertainties associated with Granite's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operation" and "Risk Factors" sections of Granite's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Granite's investor relations department at (831) 724-1011 or at Granite's website at www.graniteconstruction.com. GRANITE CONSTRUCTION INCORPORATED COMPARATIVE FINANCIAL SUMMARY (Unaudited - In Thousands, Except Per Share Data)
Three Months Ended Year Ended March 31, Variance ---------------------------- ---------------------------- 2006 2005 Amount Percent ------------ ------------ ------------ ------------ Revenue Construction $ 434,338 $ 374,713 $ 59,625 15.9 Material sales $ 61,630 $ 46,221 $ 15,409 33.3 Total revenue $ 495,968 $ 420,934 $ 75,034 17.8 Cost of revenue Construction $ 403,960 $ 354,381 $ (49,579) (14.0) Material sales $ 51,773 $ 39,613 $ (12,160) (30.7) Total cost of revenue $ 455,733 $ 393,994 $ (61,739) (15.7) Gross profit $ 40,235 $ 26,940 $ 13,295 49.4 Gross profit as a percent of revenue 8.1% 6.4% 1.7% -- General and administrative expenses $ 48,256 $ 38,870 $ (9,386) (24.1) G&A expenses as a percent of revenue 9.7% 9.2% (0.5)% -- Gain on sales of property and equipment $ 4,238 $ 26 $ 4,212 **** Other income (expense) Interest income $ 4,733 $ 2,159 $ 2,574 **** Interest expense $ (1,395) $ (2,031) $ 636 31.3 Equity in loss of affiliates $ (77) $ (60) $ (17) (28.3) Other, net $ (606) $ (73) $ (533) **** Total other income (expense) $ 2,655 $ (5) $ 2,660 **** Loss before benefit from income taxes and minority interest $ (1,128) $ (11,909) $ 10,781 90.5 Minority interest $ (1,067) $ (50) $ (1,017) **** Net loss $ (1,422) $ (8,267) $ 6,845 82.8 Net loss per share: Basic $ (0.03) $ (0.20) $ 0.17 85.0 Diluted $ (0.03) $ (0.20) $ 0.17 85.0 Weighted average shares of common stock: Basic 40,739 40,485 254 0.6 Diluted 40,739 40,485 254 0.6
**** Represents percentages greater than 100% GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - In thousands, except share and per share data) March 31, December 31, 2006 2005 ------------ ------------ Assets Current assets Cash and cash equivalents $ 225,495 $ 199,881 Short-term marketable securities 57,613 68,540 Accounts receivable, net 439,400 476,453 Costs and estimated earnings in excess of billings 28,812 43,660 Inventories 35,412 33,161 Real estate held for sale 50,189 46,889 Deferred income taxes 22,586 22,996 Equity in construction joint ventures 26,359 27,408 Other current assets 65,087 57,960 Total current assets 950,953 976,948 Property and equipment, net 393,312 397,111 Long-term marketable securities 42,932 32,960 Investment in affiliates 15,365 15,855 Other assets 46,879 49,356 Total assets $ 1,449,441 $ 1,472,230 Liabilities and Shareholders' Equity Current liabilities Current maturities of long-term debt $ 29,041 $ 26,888 Accounts payable 220,284 232,807 Billings in excess of costs and estimated earnings 231,475 208,883 Accrued expenses and other current liabilities 121,325 140,569 Total current liabilities 602,125 609,147 Long-term debt 110,903 124,415 Other long-term liabilities 53,670 46,556 Deferred income taxes 37,325 37,325 Minority interest in consolidated subsidiaries 30,822 33,227 Shareholders' equity Preferred stock, $0.01 par value, authorized 3,000,000 shares; none outstanding -- -- Common stock, $0.01 par value, authorized 100,000,000 shares; issued and outstanding 41,845,631 shares in 2006 and 41,682,010 shares in 2005 418 417 Additional paid-in capital 86,007 80,619 Retained earnings 543,495 549,101 Accumulated other comprehensive income 2,206 1,602 Unearned compensation (17,530) (10,179) Total shareholders' equity 614,596 621,560 Total liabilities and shareholders' equity $ 1,449,441 $ 1,472,230 March 31, December 31, Financial Position 2006 2005 - ------------------------------------------------- ------------ ------------ Working capital $ 348,828 $ 367,801 Current ratio 1.58 1.60 Debt to total capitalization 0.19 0.20 Total liabilities to equity ratio 1.36 1.37 GRANITE CONSTRUCTION INCORPORATED REVENUE AND BACKLOG ANALYSIS (Unaudited - Dollars In Thousands) BY MARKET SECTOR
Revenue ------------------------------------------------------------- Three Months Ended March 31, Variance ----------------------------- ----------------------------- 2006 2005 Amount Percent ------------- ------------- ------------- ------------- Public Sector $ 352,960 $ 303,308 $ 49,652 16.4 Private Sector 81,378 71,405 9,973 14.0 Aggregate sales 61,630 46,221 15,409 33.3 $ 495,968 $ 420,934 $ 75,034 17.8
Backlog ------------------------------------------------------------- March 31, Variance ----------------------------- ----------------------------- 2006 2005 Amount Percent ------------- ------------- ------------- ------------- Public Sector $ 2,219,442 $ 2,358,702 $ (139,260) (5.9) Private Sector 327,293 255,328 71,965 28.2 $ 2,546,735 $ 2,614,030 $ (67,295) (2.6)
BY GEOGRAPHIC AREA
Revenue ------------------------------------------------------------- Three Months Ended March 31, Variance ----------------------------- ----------------------------- 2006 2005 Amount Percent ------------- ------------- ------------- ------------- California $ 212,871 $ 140,582 $ 72,289 51.4 West (Excl. CA) 104,915 119,111 (14,196) (11.9) Midwest 9,879 8,001 1,878 23.5 Northeast 65,083 63,737 1,346 2.1 South 103,220 89,503 13,717 15.3 $ 495,968 $ 420,934 $ 75,034 17.8
Backlog ------------------------------------------------------------- March 31, Variance ----------------------------- ----------------------------- 2006 2005 Amount Percent ------------- ------------- ------------- ------------- California $ 671,689 $ 608,352 $ 63,337 10.4 West (Excl. CA) 629,705 350,314 279,391 79.8 Midwest 36,145 112,437 (76,292) (67.9) Northeast 381,578 631,730 (250,152) (39.6) South 827,618 911,197 (83,579) (9.2) $ 2,546,735 $ 2,614,030 $ (67,295) (2.6)
SOURCE Granite Construction -0- 04/26/2006 /CONTACT: Jacque Underdown of Granite Construction Incorporated, +1-831-761-4741/ /First Call Analyst: / /FCMN Contact: debbie.peterson@gcinc.com / /Web site: http://www.graniteconstruction.com/ -----END PRIVACY-ENHANCED MESSAGE-----