Granite Announces Change in Divestiture Plans
Granite Construction (NYSE:GVA) has decided to retain its Water Resources and Mineral Services businesses due to unfavorable market conditions preventing a satisfactory sale. These segments will now be included in continuing operations, with their financials to be reported accordingly. CEO Kyle Larkin expressed optimism about the strong market demand and the potential for these businesses to enhance shareholder value and EBITDA margins. Notably, Granite returned value to shareholders by repurchasing over 2.3 million shares in 2022 and maintaining strong liquidity.
- Retaining Water Resources and Mineral Services businesses may enhance shareholder value.
- Strong underlying market demand supports the optimism for these retained businesses.
- Granite repurchased over 2.3 million shares in 2022, indicating a commitment to shareholder returns.
- Liquidity remains strong, allowing for continued investment in operations.
- Market conditions were unfavorable, undermining the sale of the Water Resources and Mineral Services.
- Current market conditions raise concerns about the appropriateness of business valuations.
- Market conditions drive decision to retain the Water Resources and Mineral Services businesses
- Form 8-K with segment information for historical periods to be filed prior to our third quarter Form 10-Q filing
“Although we saw significant interest in the Water Resources and Mineral Services businesses, current market conditions undermined our efforts to secure appropriate value for the businesses,” stated
Larkin continued, “During 2022, we have invested in our businesses and returned value to shareholders with over 2.3 million shares repurchased, including 367,000 shares in the third quarter as we completed the final settlement of the accelerated share repurchase. Granite’s liquidity remains strong. In the near term, our priority is to continue to invest in, strengthen, and grow our businesses in alignment with our plan.”
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, including the filing of a Form 8-K with segment information for historical periods, the reclassification of the Water Resources and Mineral Services businesses as continuing operations and no longer being held for sale, the outlook for the retained businesses, and retained businesses will drive greater shareholder value and be accretive to EBITDA margin, the near term priority to invest in, strengthen, and grow our businesses, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, guidance, 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,” "guidance" 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, including the filing of a Form 8-K with segment information for historical periods, the reclassification of the Water Resources and Mineral Services businesses as continuing operations and no longer being held for sale, the outlook for the retained businesses, the retained businesses will drive greater shareholder value and be accretive to EBITDA margin, the near term priority to invest in, strengthen, and grow our businesses, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, guidance, 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
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.
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FAQ
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