- Revenues for the year were $2.1 billion, compared with $2.0 billion recorded in 2011.
- Gross profit margin was 11.3 percent compared with 12.3 percent in 2011 due to lower gross profit in both the Construction and Construction Materials segments partially offset by an increase in margins in the Large Project segment.
- SG&A expenses for the year were $185.1 million, compared with $162.3 million last year. The increase reflects $5.4 million associated with large project bid costs, $4.4 million associated with the acquisition of Kenny Construction and $2.0 million related to earnings in the Company’s deferred compensation plan.
- Gain on sales of property and equipment was $27.4 million in 2012, compared with $15.8 million in 2011. The increase is associated with an $18.0 million gain on the sale of a quarry investment.
- Operating income was $80.8 million in 2012, compared with $99.3 million in 2011.
- Total other income (expense) for the year was $0.2 million, compared with $(9.8) million in 2011. Other income for 2012 included a $7.4 million gain related to the sale of gold, a by-product of aggregate production, partially offset by a $2.8 million non-cash impairment loss on an investment in a solar-related business.
- Net income attributable to non-controlling interests was $14.6 million, compared with $14.9 million the prior period.
- Total contract backlog at December 31, 2012, was $1.7 billion compared with $2.0 billion a year ago. 2012 backlog includes $357 million attributable to the Kenny acquisition and does not include Granite’s approximate $733 million portion of the Tappan Zee Bridge project in New York or the IH-35E highway reconstruction project in Texas of which Granite’s portion is approximately $297 million.
- Construction revenues for the year were $1.0 billion, in line with 2011.
- Gross profit margin was 7.9 percent compared with 11.9 percent a year ago reflecting challenging market conditions, as well as increased costs to complete certain projects due to lower productivity than anticipated.
- Large Project Construction revenue for the year increased 19 percent to $863.2 million due largely to the progress on projects awarded in late 2010 and early 2011.
- Gross profit margin was 17.2 percent compared with 14.4 percent in 2011 reflecting successful execution on several large projects across the country offset by a downward forecast adjustment on a project in Washington.
- Construction Materials revenue was $230.6 million compared with $220.6 million last year.
- Gross profit in 2012 was $7.6 million, compared with $16.6 million in 2011. The decline in gross profit is primarily attributable to slow economic conditions at certain California locations.
- Revenue for the quarter totaled $504.8 million compared with $539.5 million for the fourth quarter of 2011.
- Gross profit margin for the fourth quarter of 2012 was 11.3 percent compared with 14.7 percent in 2011. The decrease is primarily due to lower gross profit in both the Construction and Construction Materials segments partially offset by an increase in margins in the Large Project segment.
- Selling, general and administrative expenses for the fourth quarter increased $14.8 million to $57.3 million reflecting $4.7 million in costs associated with the pursuit of large projects and $4.4 million in acquisition-related costs.
- Operating income was $21.7 million, compared with $40.1 million in the prior year.
- Net income attributable to noncontrolling interests was $0.4 million compared with $6.0 million in 2011.
- Construction revenue for the fourth quarter 2012 was $235.3 million, compared with $259.2 million for the fourth quarter of 2011.
- Gross profit margin was 7.7 percent, compared with 14.3 percent a year ago reflecting competitive market conditions, wet weather in the West in November and December, and increased costs to complete certain projects due to lower productivity than anticipated.
- Large Project Construction revenue was $214.6 million, compared with $211.6 million.
- Gross profit margin for the quarter was 18.7 percent, compared with 16.4 percent for the same period last year. The increase reflects successful execution on several large projects across the country, partially offset by a downward forecast adjustment on a project Washington.
- Construction Materials revenue for the quarter was $54.9 million, compared with $55.5 million in the fourth quarter of 2011.
- Gross loss on the sale of construction materials was $1.5 million, compared with gross profit of $5.9 million in the prior period. The fourth quarter of 2012 was impacted by slow economic conditions at certain California locations.
“While we are optimistic that we will see some benefit from the residential building market towards the end of the year, we expect that our Construction and Construction Materials businesses will continue to face challenging market conditions throughout most of 2013. Our outlook for Large Projects, however, remains very positive. We anticipate strong backlog growth in our Large Projects segment in light of the strong pipeline of opportunities across the country. We have several large projects in various stages of completion in 2013 and will be starting work on the Tappan Zee and IH-35E projects, both of which should recognize profit in 2014.”Conference Call Granite will conduct a conference call today, February 28, 2013 at 8 a.m. Pacific time/11 a.m. Eastern time to discuss the results of the quarter and year ended December 31, 2012. Access to a live audio webcast is available at www.graniteconstruction.com. The live conference call may be accessed by calling (877) 643-7158. The conference ID for the live call is 99198804. The call will be recorded and will be available for replay approximately two hours after the live audio webcast through March 7, 2013 by calling (855) 859-2056. The conference ID for the replay is 99198804. 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 subsidiaries, 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 Ethisphere Institute as one of the World’s Most Ethical Companies for three straight years. For more information, please visit graniteconstruction.com.
Forward-looking StatementsAny 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 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)|
|Cash and cash equivalents||$||321,990||$||256,990|
|Short-term marketable securities||56,088||70,408|
|Costs and estimated earnings in excess of billings||34,116||37,703|
|Real estate held for development and sale||50,223||67,037|
|Deferred income taxes||36,687||38,571|
|Equity in construction joint ventures||105,805||101,029|
|Other current assets||31,834||35,171|
|Total current assets||1,022,057||909,722|
|Property and equipment, net||481,478||447,140|
|Long-term marketable securities||55,342||79,250|
|Investments in affiliates||30,799||31,071|
|Other noncurrent assets||84,392||70,716|
|LIABILITIES AND EQUITY|
|Current maturities of long-term debt||$||8,353||$||9,102|
|Current maturities of non-recourse debt||10,707||23,071|
|Billings in excess of costs and estimated earnings||139,692||90,845|
|Accrued expenses and other current liabilities||169,979||166,790|
|Total current liabilities||531,272||448,468|
|Long-term non-recourse debt||922||9,912|
|Other long-term liabilities||47,124||49,221|
|Deferred income taxes||8,163||4,034|
|Preferred stock, $0.01 par value, authorized 3,000,000 shares, none outstanding||—||—|
|Common stock, $0.01 par value, authorized 150,000,000 shares; issued and outstanding 38,730,665 shares as of December 31, 2012 and 38,682,771 shares as of December 31, 2011||387||387|
|Additional paid-in capital||117,422||111,514|
|Total Granite Construction Incorporated shareholders’ equity||829,953||799,197|
|Total liabilities and equity||$||1,729,487||$||1,547,799|
|GRANITE CONSTRUCTION INCORPORATED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share data)|
|Three Months Ended December 31,||Years Ended December 31,|
|Large project construction||214,572||211,565||863,217||725,043|
|Cost of revenue|
|Large project construction||174,456||176,970||714,799||620,935|
|Total cost of revenue||447,973||460,422||1,848,278||1,761,568|
|Selling, general and administrative expenses||57,298||42,536||185,099||162,302|
|Restructuring (gains) charges, net||(1,200||)||670||(3,728||)||2,181|
|Gain on sales of property and equipment||20,954||4,217||27,447||15,789|
|Other income (expense)|
|Equity in income of affiliates||1,608||750||1,988||2,193|
|Other income (expense), net||2,316||(2,594||)||6,183||(4,545||)|
|Total other income (expense)||2,377||(3,970||)||194||(9,836||)|
|Income before provision for income taxes||24,041||36,167||81,029||89,433|
|Provision for income taxes||5,667||11,375||21,109||23,348|
|Amount attributable to noncontrolling interests||(387||)||(6,038||)||(14,637||)||(14,924||)|
|Net income attributable to Granite Construction Incorporated||$||17,987||$||18,754||$||45,283||$||51,161|
|Net income per share attributable to common shareholders:|
|Weighted average shares of common stock:|
|GRANITE CONSTRUCTION INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited - in thousands)|
|Years Ended December 31,||2012||2011|
|Adjustments to reconcile net income to net cash provided by operating activities:|
|Non-cash restructuring, net||(3,093||)||1,678|
|Other non-cash impairment charges||3,238||5,067|
|Depreciation, depletion and amortization||56,101||60,546|
|Gain on sales of property and equipment||(27,447||)||(15,789||)|
|Change in deferred income tax||6,013||8,566|
|Changes in assets and liabilities, net of the effects of acquisition||(14,417||)||(45,963||)|
|Net cash provided by operating activities||91,790||92,345|
|Purchases of marketable securities||(124,596||)||(155,122||)|
|Maturities of marketable securities||90,100||110,875|
|Proceeds from sale of marketable securities||75,000||33,268|
|Additions to property and equipment||(37,622||)||(45,035||)|
|Proceeds from sales of property and equipment||34,392||27,959|
|Acquisition of business, net of cash acquired||(79,640||)||—|
|Other investing activities, net||(188||)||327|
|Net cash used in investing activities||(42,554||)||(27,728||)|
|Proceeds from long-term debt||70,495||2,122|
|Long-term debt principal payments||(11,751||)||(16,907||)|
|Cash dividends paid||(20,117||)||(20,117||)|
|Purchase of common stock||(4,853||)||(4,029||)|
|Distributions to noncontrolling partners, net||(15,988||)||(21,062||)|
|Other financing activities, net||(2,022||)||344|
|Net cash provided by (used in) financing activities||15,764||(59,649||)|
|Increase in cash and cash equivalents||65,000||4,968|
|Cash and cash equivalents at beginning of period||256,990||252,022|
|Cash and cash equivalents at end of period||$||321,990||$||256,990|
|GRANITE CONSTRUCTION INCORPORATED Business Segment Information (Unaudited - dollars in thousands)|
|Three Months Ended December 31,||Years Ended December 31,|
|Construction||Large Project Construction||Construction Materials||Real Estate||Construction||Large Project Construction||Construction Materials||Real Estate|
|Gross profit (loss)||18,148||40,116||(1,461||)||5||77,963||148,418||7,572||806|
|Gross profit (loss) as a percent of revenue||7.7||%||18.7||%||(2.7||)%||27.8||%||7.9||%||17.2||%||3.3||%||15.9||%|
|Gross profit as a percent of revenue||14.3||%||16.4||%||10.6||%||12.2||%||11.9||%||14.4||%||7.5||%||13.3||%|
|GRANITE CONSTRUCTION INCORPORATED Contract Backlog by Segment (Unaudited - dollars in thousands)|
|Contract Backlog by Segment||December 31, 2012||December 31, 2011|
|Large project construction||1,077,417||63.1||%||1,508,830||74.6||%|