Granite Reports Third Quarter 2024 Results
Granite Construction reported strong Q3 2024 results with revenue increasing 14% year-over-year to $1.3 billion. Net income reached $79 million, or $1.57 per diluted share, up from $58 million in the prior year. The company achieved record Committed and Awarded Projects (CAP) of $5.6 billion, representing a sequential increase of $44 million. Both Construction and Materials segments posted 14% year-over-year growth. Gross profit increased by $36 million to $203 million, while adjusted EBITDA totaled $149 million. The company expanded its southeast presence through the acquisition of Dickerson & Bowen.
Granite Construction ha riportato risultati solidi per il terzo trimestre del 2024, con un aumento del fatturato del 14% rispetto all'anno precedente, raggiungendo 1,3 miliardi di dollari. L'utile netto ha raggiunto i 79 milioni di dollari, ovvero 1,57 dollari per azione diluita, in aumento rispetto ai 58 milioni di dollari dell'anno precedente. L'azienda ha raggiunto un record di Progetti Committed e Awarded (CAP) pari a 5,6 miliardi di dollari, rappresentando un aumento sequenziale di 44 milioni di dollari. Entrambi i segmenti Costruzione e Materiali hanno registrato una crescita del 14% rispetto all'anno precedente. Il profitto lordo è aumentato di 36 milioni di dollari, raggiungendo i 203 milioni di dollari, mentre l'EBITDA rettificato ha totale di 149 milioni di dollari. L'azienda ha ampliato la propria presenza nel sud-est grazie all'acquisizione di Dickerson & Bowen.
Granite Construction informó resultados sólidos para el tercer trimestre de 2024, con un aumento de ingresos del 14% interanual, alcanzando 1.3 mil millones de dólares. El ingreso neto alcanzó los 79 millones de dólares, o 1.57 dólares por acción diluida, en comparación con 58 millones de dólares del año anterior. La empresa logró un récord en Proyectos Comprometidos y Adjudicados (CAP) de 5.6 mil millones de dólares, lo que representa un incremento secuencial de 44 millones de dólares. Ambos segmentos de Construcción y Materiales registraron un crecimiento del 14% interanual. La utilidad bruta aumentó en 36 millones de dólares, alcanzando los 203 millones de dólares, mientras que el EBITDA ajustado totalizó 149 millones de dólares. La empresa amplió su presencia en el sureste a través de la adquisición de Dickerson & Bowen.
Granite Construction는 2024년 3분기 실적을 발표하며, 매출이 전년 대비 14% 증가하여 13억 달러에 달했다고 보고했습니다. 순이익은 7천9백만 달러, 즉 희석 주당 1.57달러로, 전년도 5천8백만 달러에서 증가했습니다. 이 회사는 56억 달러 규모의 기록적인 약정 및 수주 프로젝트(CAP)를 달성했으며, 이는 4천4백만 달러의 순증입니다. 건설 및 자재 부문 모두 전년 대비 14% 성장했습니다. 총 이익은 3천6백만 달러 증가하여 2억3천만 달러에 도달했으며, 조정된 EBITDA는 1억4천9백만 달러에 달했습니다. 이 회사는 Dickerson & Bowen의 인수를 통해 동남부에서의 입지를 확장했습니다.
Granite Construction a publié de bons résultats pour le troisième trimestre 2024, avec une augmentation du chiffre d'affaires de 14 % par rapport à l'année précédente, atteignant 1,3 milliard de dollars. Le bénéfice net a atteint 79 millions de dollars, soit 1,57 dollar par action diluée, contre 58 millions de dollars l'année précédente. L'entreprise a atteint un record de Projets Engagés et Attribués (CAP) de 5,6 milliards de dollars, représentant une augmentation séquentielle de 44 millions de dollars. Les segments Construction et Matériaux ont tous deux enregistré une croissance de 14 % par rapport à l'année précédente. Le bénéfice brut a augmenté de 36 millions de dollars pour atteindre 203 millions de dollars, tandis que l'EBITDA ajusté a totalisé 149 millions de dollars. L'entreprise a élargi sa présence dans le sud-est grâce à l'acquisition de Dickerson & Bowen.
Granite Construction berichtete von starken Ergebnissen im 3. Quartal 2024, mit einem Umsatzanstieg von 14% im Jahresvergleich auf 1,3 Milliarden Dollar. Der Nettogewinn betrug 79 Millionen Dollar, bzw. 1,57 Dollar pro verwässerter Aktie, im Vergleich zu 58 Millionen Dollar im Vorjahr. Das Unternehmen erzielte einen Rekord bei den Verpflichteten und vergebenen Projekten (CAP) von 5,6 Milliarden Dollar, was einen sequenziellen Anstieg von 44 Millionen Dollar darstellt. Sowohl der Bau- als auch der Materialsektor verzeichneten ein Wachstum von 14% im Jahresvergleich. Der Bruttogewinn stieg um 36 Millionen Dollar auf 203 Millionen Dollar, während das bereinigte EBITDA insgesamt 149 Millionen Dollar betrug. Das Unternehmen erweiterte seine Präsenz im Südosten durch die Übernahme von Dickerson & Bowen.
- Revenue increased 14% YoY to $1.3 billion
- Net income grew to $79 million from $58 million YoY
- Record CAP of $5.6 billion, up $44 million sequentially
- Gross profit increased by $36 million to $203 million
- Year-to-date operating cash flow increased $249 million
- Construction and Materials segments both grew 14% YoY
- SG&A expenses increased to 7.2% of revenue from 6.7% YoY
- Increased SG&A expense guidance to 8.3-8.5% from 7.5-8.0% due to higher incentive compensation
Insights
Granite Construction delivered a robust Q3 2024 with significant growth metrics:
Key positives include substantial revenue growth in both Construction (
However, rising SG&A costs (
The infrastructure sector shows robust health, evidenced by Granite's strong performance and positive market outlook. The company's reference to being in the "early stages" of benefiting from the federal infrastructure bill suggests sustained long-term growth potential in the public sector. The healthy private market outlook through 2027 indicates broad-based demand.
The
-
Q3 revenue increased
14% year-over-year to$1.3 billion -
Q3 diluted EPS of
and adjusted diluted EPS (1) of$1.57 , compared to$2.05 and$1.13 in the prior year, respectively$1.72 -
Record Committed and Awarded Projects (“CAP”) (2) of
, a sequential increase of$5.6 billion $44 million -
Year-to-date operating cash flow increased
year-over-year$249 million - Expanded southeast home market with acquisition of Dickerson & Bowen, Inc.
Third Quarter 2024 Results
Net income attributable to Granite Construction Incorporated totaled
-
Revenue increased
to$159 million , compared to$1.3 billion for the same period in the prior year. The Construction and Materials segments each posted year-over-year increases of$1.1 billion 14% . -
Gross profit increased
to$36 million , compared to$203 million for the same period in the prior year.$167 million -
Selling, general, and administrative (“SG&A”) expenses increased
to$17 million , or$92 million 7.2% of revenue, compared to , or$75 million 6.7% of revenue, for the same period in the prior year. -
Adjusted EBITDA (1) totaled
, compared to$149 million for the same period in the prior year.$126 million -
CAP (2) increased
sequentially and$44 million year-over-year to$35 million .$5.6 billion
"In the third quarter, we continued to build on our momentum with revenue growth and margin expansion,” said Kyle Larkin, Granite President and Chief Executive Officer. “Revenue grew
“For 2027, our financial targets contemplate organic growth at a CAGR of
Nine Months Ended September 30, 2024 Results
Net income attributable to Granite Construction Incorporated totaled
-
Revenue increased
to$455 million , compared to$3.0 billion for the same period in the prior year. The Construction and Materials segments posted year-over-year increases of$2.6 billion 18% and16% , respectively. -
Gross profit increased
to$120 million , compared to$422 million for the same period in the prior year.$302 million -
SG&A expenses increased
to$37 million , or$250 million 8.2% of revenue, compared to , or$212 million 8.3% of revenue, for the same period in the prior year. -
Adjusted EBITDA (1) totaled
compared to$293 million for the same period in the prior year.$204 million
(1) Adjusted net income attributable to Granite Construction Incorporated, adjusted diluted earnings per share, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), EBITDA margin, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables. |
(2) CAP is comprised of revenue we expect to record in the future on executed contracts, including |
Three and Nine Months ended September 30, 2024 (Unaudited - dollars in thousands) |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
Construction Segment |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
|||||||||||||||||||||
Revenue |
$ |
1,080,705 |
|
$ |
945,698 |
|
$ |
135,007 |
14.3 |
% |
|
$ |
2,593,872 |
|
$ |
2,198,527 |
|
$ |
395,345 |
18.0 |
% |
||||||
Gross profit |
$ |
170,685 |
|
$ |
137,162 |
|
$ |
33,523 |
24.4 |
% |
|
$ |
362,885 |
|
$ |
253,021 |
|
$ |
109,864 |
43.4 |
% |
||||||
Gross profit as a percent of revenue |
|
15.8 |
% |
|
14.5 |
% |
|
|
|
|
14.0 |
% |
|
11.5 |
% |
|
|
For the three and nine months ended September 30, 2024, revenue increased year-over-year by
CAP increased
Materials Segment |
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||
|
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
||||||||||||||||||||
Revenue |
$ |
194,805 |
|
$ |
171,122 |
|
$ |
23,683 |
13.8 |
% |
|
$ |
436,399 |
|
$ |
376,913 |
|
$ |
59,486 |
15.8 |
% |
||||||
Gross profit |
$ |
32,264 |
|
$ |
29,481 |
|
$ |
2,783 |
9.4 |
% |
|
$ |
59,060 |
|
$ |
49,067 |
|
$ |
9,993 |
20.4 |
% |
||||||
Gross profit as a percent of revenue |
|
16.6 |
% |
|
17.2 |
% |
|
|
|
|
13.5 |
% |
|
13.0 |
% |
|
|
||||||||||
Cash gross profit (1) |
$ |
43,202 |
|
$ |
36,203 |
|
$ |
6,999 |
19.3 |
% |
|
$ |
89,718 |
|
$ |
67,581 |
|
$ |
22,137 |
32.8 |
% |
||||||
Cash gross profit as a percent of revenue (1) |
|
22.2 |
% |
|
21.2 |
% |
|
|
|
|
20.6 |
% |
|
17.9 |
% |
|
|
(1) Materials segment cash gross profit and cash gross profit as a percent of revenue are non-GAAP measures. Please refer to the description and reconciliation of non-GAAP measures in the attached tables. |
For the three and nine months ended September 30, 2024, revenue increased year-over-year by
Outlook
Our updated guidance for 2024 is noted below:
-
Revenue unchanged in the range of
to$3.9 billion $4.0 billion -
Adjusted EBITDA margin in the range of
10% to11% , narrowed from9.5% to11.5% -
SG&A expense in a range from
8.3% to8.5% of revenue from a range of7.5% to8.0% of revenue due to increased incentive compensation - Mid-20s effective tax rate for adjusted net income
-
Capital expenditures expected to be approximately
$130 million
We do not provide a reconciliation of forward-looking adjusted EBITDA margin or the most directly comparable forward-looking GAAP measure of net income attributable to Granite Construction Incorporated because we cannot predict with a reasonable degree of certainty and without unreasonable efforts certain components or excluded items that are inherently uncertain and depend on various factors. For these reasons, we are unable to assess the potential significance of the unavailable information.
For a discussion of our 2027 targets, see the presentation posted on our Investor Relations website following our conference call.
Conference Call
Granite will conduct a conference call today, October 31, 2024, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to discuss the results of the quarter ended September 30, 2024. The Company invites investors to listen to a live audio webcast of the investor conference call on its Investor Relations website, https://investor.graniteconstruction.com/. The investor conference call will also be available by calling 1-877-328-5503; international callers may dial 1-412-317-5472. An archive of the webcast will be available on Granite's Investor Relations website approximately one hour after the call. A replay will be available after the live call through November 7, 2024, by calling 1-877-344-7529, replay access code 8631298; international callers may dial 1-412-317-0088.
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, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, 2024 fiscal year guidance for revenue, adjusted EBITDA margin, SG&A expense, effective tax rate, and capital expenditures, our expectation that we significantly exceed our operating cash flow target of
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 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(Unaudited - in thousands, except share and per share data) |
|||||
|
|||||
|
September 30, 2024 |
December 31, 2023 |
|||
ASSETS |
|
|
|||
Current assets: |
|
|
|||
Cash and cash equivalents |
$ |
462,286 |
$ |
417,663 |
|
Short-term marketable securities |
|
10,147 |
|
35,863 |
|
Receivables, net |
|
733,018 |
|
598,705 |
|
Contract assets |
|
321,653 |
|
262,987 |
|
Inventories |
|
107,973 |
|
103,898 |
|
Equity in construction joint ventures |
|
144,097 |
|
171,233 |
|
Other current assets |
|
34,928 |
|
53,102 |
|
Total current assets |
|
1,814,102 |
|
1,643,451 |
|
Property and equipment, net |
|
719,678 |
|
662,864 |
|
Investments in affiliates |
|
94,921 |
|
92,910 |
|
Goodwill |
|
211,624 |
|
155,004 |
|
Intangible assets |
|
131,579 |
|
117,322 |
|
Right of use assets |
|
86,299 |
|
78,176 |
|
Deferred income taxes, net |
|
4,990 |
|
8,179 |
|
Other noncurrent assets |
|
67,732 |
|
55,634 |
|
Total assets |
$ |
3,130,925 |
$ |
2,813,540 |
|
|
|
|
|||
LIABILITIES AND EQUITY |
|
|
|||
Current liabilities: |
|
|
|||
Current maturities of long-term debt |
$ |
1,099 |
$ |
39,932 |
|
Accounts payable |
|
509,976 |
|
408,363 |
|
Contract liabilities |
|
292,641 |
|
243,848 |
|
Accrued expenses and other current liabilities |
|
361,110 |
|
337,740 |
|
Total current liabilities |
|
1,164,826 |
|
1,029,883 |
|
Long-term debt |
|
737,458 |
|
614,781 |
|
Long-term lease liabilities |
|
70,981 |
|
63,548 |
|
Deferred income taxes, net |
|
3,420 |
|
3,708 |
|
Other long-term liabilities |
|
84,561 |
|
74,654 |
|
Commitments and contingencies |
|
|
|||
Equity: |
|
|
|||
Preferred stock, |
|
— |
|
— |
|
Common stock, |
|
437 |
|
439 |
|
Additional paid-in capital |
|
437,343 |
|
474,134 |
|
Accumulated other comprehensive income |
|
437 |
|
881 |
|
Retained earnings |
|
568,877 |
|
501,844 |
|
Total Granite Construction Incorporated shareholders’ equity |
|
1,007,094 |
|
977,298 |
|
Non-controlling interests |
|
62,585 |
|
49,668 |
|
Total equity |
|
1,069,679 |
|
1,026,966 |
|
Total liabilities and equity |
$ |
3,130,925 |
$ |
2,813,540 |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Construction |
$ |
1,080,705 |
|
|
$ |
945,698 |
|
|
$ |
2,593,872 |
|
|
$ |
2,198,527 |
|
Materials |
|
194,805 |
|
|
|
171,122 |
|
|
|
436,399 |
|
|
|
376,913 |
|
Total revenue |
|
1,275,510 |
|
|
|
1,116,820 |
|
|
|
3,030,271 |
|
|
|
2,575,440 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Construction |
|
910,020 |
|
|
|
808,536 |
|
|
|
2,230,987 |
|
|
|
1,945,506 |
|
Materials |
|
162,541 |
|
|
|
141,641 |
|
|
|
377,339 |
|
|
|
327,846 |
|
Total cost of revenue |
|
1,072,561 |
|
|
|
950,177 |
|
|
|
2,608,326 |
|
|
|
2,273,352 |
|
Gross profit |
|
202,949 |
|
|
|
166,643 |
|
|
|
421,945 |
|
|
|
302,088 |
|
Selling, general and administrative expenses |
|
91,650 |
|
|
|
74,794 |
|
|
|
249,695 |
|
|
|
212,479 |
|
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Gain on sales of property and equipment, net |
|
(1,542 |
) |
|
|
(1,812 |
) |
|
|
(4,347 |
) |
|
|
(7,793 |
) |
Operating income |
|
104,298 |
|
|
|
73,818 |
|
|
|
146,819 |
|
|
|
59,429 |
|
Other (income) expense: |
|
|
|
|
|
|
|
||||||||
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Interest income |
|
(7,513 |
) |
|
|
(4,293 |
) |
|
|
(17,815 |
) |
|
|
(11,287 |
) |
Interest expense |
|
7,905 |
|
|
|
4,877 |
|
|
|
21,325 |
|
|
|
11,899 |
|
Equity in income of affiliates, net |
|
(4,394 |
) |
|
|
(7,147 |
) |
|
|
(12,921 |
) |
|
|
(19,378 |
) |
Other (income) expense, net |
|
(874 |
) |
|
|
462 |
|
|
|
(1,350 |
) |
|
|
(2,713 |
) |
Total other (income) expense, net |
|
(5,148 |
) |
|
|
(6,101 |
) |
|
|
16,791 |
|
|
|
29,573 |
|
Income before income taxes |
|
109,446 |
|
|
|
79,919 |
|
|
|
130,028 |
|
|
|
29,856 |
|
Provision for income taxes |
|
25,469 |
|
|
|
22,423 |
|
|
|
36,636 |
|
|
|
21,978 |
|
Net income |
|
83,977 |
|
|
|
57,496 |
|
|
|
93,392 |
|
|
|
7,878 |
|
Amount attributable to non-controlling interests |
|
(5,026 |
) |
|
|
128 |
|
|
|
(8,529 |
) |
|
|
9,723 |
|
Net income attributable to Granite |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share attributable to common shareholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.81 |
|
|
$ |
1.31 |
|
|
$ |
1.93 |
|
|
$ |
0.40 |
|
Diluted |
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
1.79 |
|
|
$ |
0.40 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
43,696 |
|
|
|
43,924 |
|
|
|
43,914 |
|
|
|
43,861 |
|
Diluted |
|
52,366 |
|
|
|
53,612 |
|
|
|
52,585 |
|
|
|
44,447 |
|
GRANITE CONSTRUCTION INCORPORATED |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited - in thousands) |
|||||||
|
|||||||
Nine Months Ended September 30, |
2024 |
|
2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
93,392 |
|
|
$ |
7,878 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion and amortization |
|
92,283 |
|
|
|
65,298 |
|
Amortization related to long-term debt |
|
3,400 |
|
|
|
1,689 |
|
Loss on debt extinguishment |
|
27,552 |
|
|
|
51,052 |
|
Gain on sales of property and equipment, net |
|
(4,347 |
) |
|
|
(7,793 |
) |
Deferred income taxes |
|
— |
|
|
|
1,542 |
|
Stock-based compensation |
|
17,325 |
|
|
|
8,630 |
|
Equity in net (income) loss from unconsolidated construction joint ventures |
|
651 |
|
|
|
(4,535 |
) |
Net income from affiliates |
|
(12,921 |
) |
|
|
(19,378 |
) |
Other non-cash adjustments |
|
(165 |
) |
|
|
5,659 |
|
Changes in assets and liabilities |
|
66,379 |
|
|
|
(75,844 |
) |
Net cash provided by operating activities |
$ |
283,549 |
|
|
$ |
34,198 |
|
Investing activities: |
|
|
|
||||
Purchases of marketable securities |
|
(6,977 |
) |
|
|
(9,740 |
) |
Maturities of marketable securities |
|
31,500 |
|
|
|
40,000 |
|
Purchases of property and equipment |
|
(108,167 |
) |
|
|
(108,963 |
) |
Proceeds from sales of property and equipment |
|
6,739 |
|
|
|
14,613 |
|
Acquisitions of businesses |
|
(122,448 |
) |
|
|
(26,933 |
) |
Cash paid for purchase price adjustments on business acquisition |
|
(13,183 |
) |
|
|
— |
|
Proceeds from company owned life insurance |
|
— |
|
|
|
1,545 |
|
Return of investment in affiliates |
|
1,429 |
|
|
|
— |
|
Collection of notes receivable |
|
— |
|
|
|
208 |
|
Net cash used in investing activities |
$ |
(211,107 |
) |
|
$ |
(89,270 |
) |
Financing activities: |
|
|
|
||||
Proceeds from issuance of convertible notes |
|
373,750 |
|
|
|
373,750 |
|
Proceeds from long-term debt |
|
— |
|
|
|
55,000 |
|
Debt principal repayments |
|
(310,226 |
) |
|
|
(304,851 |
) |
Capped call transactions |
|
(46,046 |
) |
|
|
(53,035 |
) |
Redemption of warrants |
|
(497 |
) |
|
|
(13,201 |
) |
Debt issuance costs |
|
(10,053 |
) |
|
|
(10,024 |
) |
Cash dividends paid |
|
(17,131 |
) |
|
|
(17,101 |
) |
Repurchases of common stock |
|
(21,384 |
) |
|
|
(3,900 |
) |
Contributions from non-controlling partners |
|
20,500 |
|
|
|
35,400 |
|
Distributions to non-controlling partners |
|
(18,072 |
) |
|
|
(9,100 |
) |
Other financing activities, net |
|
1,340 |
|
|
|
267 |
|
Net cash provided by (used in) financing activities |
$ |
(27,819 |
) |
|
$ |
53,205 |
|
Net increase (decrease) in cash and cash equivalents |
|
44,623 |
|
|
|
(1,867 |
) |
Cash and cash equivalents at beginning of period |
|
417,663 |
|
|
|
293,991 |
|
Cash and cash equivalents at end of period |
$ |
462,286 |
|
|
$ |
292,124 |
|
Non-GAAP Financial Information
The tables below contain financial information calculated other than in accordance with
We provide adjusted income before income taxes, adjusted provision for income taxes, adjusted net income attributable to Granite Construction Incorporated, adjusted diluted weighted average shares of common stock and adjusted diluted earnings per share attributable to common shareholders, non-GAAP measures, to indicate the impact of the following:
- Other costs, net as described above;
- Transaction costs which include acquired intangible amortization expense and acquisition-related depreciation;
- Stock-based compensation expense;
- (Gain) loss on debt extinguishment; and
- Income taxes related to establishment of valuation allowance in 2023.
We also provide materials segment cash gross profit to exclude the impact of the segment’s depreciation, depletion and amortization from the segment’s gross profit. Management believes that non-GAAP financial measures such as materials segment cash gross profit are useful in evaluating operating performance and are regularly used by securities analysts, institutional investors and other interested parties, and that such supplemental measures facilitate comparisons between companies that have different capital and financing structures.
Management believes that these additional non-GAAP financial measures facilitate comparisons between industry peer companies, and management uses these non-GAAP financial measures in evaluating the Company's performance. However, the reader is cautioned that any non-GAAP financial measures provided by the Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with GAAP. Items that may have a significant impact on the Company's financial position, results of operations and cash flows must be considered when assessing the Company's actual financial condition and performance regardless of whether these items are included in non-GAAP financial measures. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures provided by the Company may not be comparable to similar measures provided by other companies.
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||
EBITDA AND ADJUSTED EBITDA(1) |
|||||||||||||||
(Unaudited - dollars in thousands) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income attributable to Granite Construction |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
Net income margin (2) |
|
6.2 |
% |
|
|
5.2 |
% |
|
|
2.8 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization expense (3) |
|
33,956 |
|
|
|
23,911 |
|
|
|
93,532 |
|
|
|
65,722 |
|
Provision for income taxes |
|
25,469 |
|
|
|
22,423 |
|
|
|
36,636 |
|
|
|
21,978 |
|
Interest expense, net |
|
392 |
|
|
|
584 |
|
|
|
3,510 |
|
|
|
612 |
|
EBITDA(1) |
$ |
138,768 |
|
|
$ |
104,542 |
|
|
$ |
218,541 |
|
|
$ |
105,913 |
|
EBITDA margin(1)(2) |
|
10.9 |
% |
|
|
9.4 |
% |
|
|
7.2 |
% |
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
||||||||
ADJUSTED EBITDA: |
|
|
|
|
|
|
|
||||||||
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Stock-based compensation (4) |
|
2,241 |
|
|
|
1,928 |
|
|
|
17,325 |
|
|
|
8,630 |
|
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Adjusted EBITDA(1) |
$ |
149,280 |
|
|
$ |
126,313 |
|
|
$ |
293,196 |
|
|
$ |
203,568 |
|
Adjusted EBITDA margin(1)(2) |
|
11.7 |
% |
|
|
11.3 |
% |
|
|
9.7 |
% |
|
|
7.9 |
% |
(1) We define EBITDA as GAAP net income attributable to Granite Construction Incorporated, adjusted for net interest expense, taxes, depreciation, depletion and amortization. Adjusted EBITDA and adjusted EBITDA margin exclude the impact of Other costs, net, (gain) loss on debt extinguishment and stock-based compensation expense, as described above. |
(2) Represents net income, EBITDA and adjusted EBITDA divided by consolidated revenue of |
(3) Amount includes the sum of depreciation, depletion and amortization which are classified as cost of revenue and selling, general and administrative expenses in the condensed consolidated statements of operations. |
(4) In the first quarter of 2024, we revised the adjusted EBITDA calculation to exclude the impact of stock-based compensation expense. The prior period adjusted EBITDA has been recast to conform to current presentation. |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||
ADJUSTED NET INCOME RECONCILIATION |
|||||||||||||||
(Unaudited - in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Income before income taxes |
$ |
109,446 |
|
|
$ |
79,919 |
|
|
$ |
130,028 |
|
|
$ |
29,856 |
|
Other costs, net |
|
8,543 |
|
|
|
19,843 |
|
|
|
29,778 |
|
|
|
37,973 |
|
Transaction costs |
|
5,546 |
|
|
|
92 |
|
|
|
15,378 |
|
|
|
5,046 |
|
Stock-based compensation (1) |
|
2,241 |
|
|
|
1,928 |
|
|
|
17,325 |
|
|
|
8,630 |
|
(Gain) loss on debt extinguishment |
|
(272 |
) |
|
|
— |
|
|
|
27,552 |
|
|
|
51,052 |
|
Adjusted income before income taxes |
$ |
125,504 |
|
|
$ |
101,782 |
|
|
$ |
220,061 |
|
|
$ |
132,557 |
|
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
$ |
25,469 |
|
|
$ |
22,423 |
|
|
$ |
36,636 |
|
|
$ |
21,978 |
|
Tax expense to establish valuation allowance |
|
— |
|
|
|
(1,542 |
) |
|
|
— |
|
|
|
(1,542 |
) |
Tax effect of adjusting items (2) |
|
4,474 |
|
|
|
4,375 |
|
|
|
16,593 |
|
|
|
12,120 |
|
Adjusted provision for income taxes |
$ |
29,943 |
|
|
$ |
25,256 |
|
|
$ |
53,229 |
|
|
$ |
32,556 |
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Granite Construction |
$ |
78,951 |
|
|
$ |
57,624 |
|
|
$ |
84,863 |
|
|
$ |
17,601 |
|
After-tax adjusting items |
|
11,584 |
|
|
|
19,030 |
|
|
|
73,440 |
|
|
|
92,123 |
|
Adjusted net income attributable to Granite |
$ |
90,535 |
|
|
$ |
76,654 |
|
|
$ |
158,303 |
|
|
$ |
109,724 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average shares of common stock |
|
52,366 |
|
|
|
53,612 |
|
|
|
52,585 |
|
|
|
44,447 |
|
Less: dilutive effect of Convertible Notes (3) |
|
(8,103 |
) |
|
|
(9,099 |
) |
|
|
(8,103 |
) |
|
|
— |
|
Adjusted diluted weighted average shares of common stock |
|
44,263 |
|
|
|
44,513 |
|
|
|
44,482 |
|
|
|
44,447 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income per share attributable to common shareholders |
$ |
1.57 |
|
|
$ |
1.13 |
|
|
$ |
1.79 |
|
|
$ |
0.40 |
|
After-tax adjusting items per share attributable to common shareholders |
|
0.48 |
|
|
|
0.59 |
|
|
|
1.77 |
|
|
|
2.07 |
|
Adjusted diluted earnings per share attributable to common shareholders |
$ |
2.05 |
|
|
$ |
1.72 |
|
|
$ |
3.56 |
|
|
$ |
2.47 |
|
(1) In the first quarter of 2024, we revised the adjusted net income calculation to exclude the impact of stock-based compensation expense. The prior period adjusted net income and diluted loss per share calculations have been recast to conform to current presentation. |
(2) The tax effect of adjusting items was calculated using the Company’s estimated annual statutory tax rate. The tax effect of adjusting items for the three and nine months ended September 30, 2024 includes an immaterial amount of the (gain) loss on debt extinguishment as it was almost entirely non-tax deductible. The nine months ended September 30, 2023 excludes the |
(3) When calculating diluted net income attributable to common shareholders, GAAP requires that we include potential share dilution from the convertible notes when not antidilutive. For the nine months ended September 30, 2023, the potential share dilution from the convertible notes would have been antidilutive and therefore was excluded from the calculation. For the purposes of calculating adjusted diluted net income per share attributable to common shareholders, the dilutive effect of the convertible notes is removed to reflect the impact of the purchased equity derivative instruments which economically offsets dilution risk. |
GRANITE CONSTRUCTION INCORPORATED |
|||||||||||||||||||||||
MATERIALS SEGMENT CASH GROSS PROFIT RECONCILIATION |
|||||||||||||||||||||||
(Unaudited - in thousands) |
|||||||||||||||||||||||
|
|||||||||||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
2024 |
|
2023 |
|
2022 |
|
2024 |
|
2023 |
|
2022 |
||||||||||||
Gross profit |
$ |
32,264 |
|
|
$ |
29,481 |
|
|
$ |
22,038 |
|
|
$ |
59,060 |
|
|
$ |
49,067 |
|
|
$ |
40,965 |
|
Gross profit as a percent of revenue |
|
16.6 |
% |
|
|
17.2 |
% |
|
|
13.6 |
% |
|
|
13.5 |
% |
|
|
13.0 |
% |
|
|
11.0 |
% |
Depreciation, depletion and amortization |
|
10,938 |
|
|
|
6,722 |
|
|
|
6,211 |
|
|
|
30,658 |
|
|
|
18,514 |
|
|
|
18,163 |
|
Cash gross profit |
$ |
43,202 |
|
|
$ |
36,203 |
|
|
$ |
28,249 |
|
|
$ |
89,718 |
|
|
$ |
67,581 |
|
|
$ |
59,128 |
|
Cash gross profit as a percent of revenue |
|
22.2 |
% |
|
|
21.2 |
% |
|
|
17.5 |
% |
|
|
20.6 |
% |
|
|
17.9 |
% |
|
|
15.8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030745262/en/
Investors
Wenjun Xu, 831-761-7861
Or
Media
Erin Kuhlman, 831-768-4111
Source: Granite Construction Incorporated
FAQ
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