-----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, Ep5r9Q9ctCm1Fh9YF5aRdZ8p3e3B2WWjvtCujlTv6n2HVq7efDAUN9WC2GLz7hRa CPJh5NUSVIU8DY8rdiWdnw== 0001275287-05-001536.txt : 20050428 0001275287-05-001536.hdr.sgml : 20050428 20050427213050 ACCESSION NUMBER: 0001275287-05-001536 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050427 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: 05778000 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 gc2550.txt ================================================================================ 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 27, 2005 GRANITE CONSTRUCTION INCORPORATED (Exact name of registrant as specified in its charter) ---------- Delaware 1-12911 77-0239383 (State or other jurisdiction of (Commission File Number) (IRS Employer 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 27, 2005, Granite Construction Incorporated (the "Company") issued a press release with respect to its earnings for the quarter ended March 31, 2005, 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 (c) Exhibits. The following exhibits are attached hereto and furnished herewith: Exhibit Number Exhibit Title - ------- --------------------------------------------------------------------- 99.1 Press Release of Registrant, dated April 27, 2005, 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 27, 2005 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 27, 2005, its first quarter financial results 4 EX-99.1 2 gc2550ex991.txt Exhibit 99.1 GRANITE CONSTRUCTION REPORTS FIRST QUARTER 2005 RESULTS WATSONVILLE, Calif., April 27 /PRNewswire-FirstCall/ -- Granite Construction Incorporated (NYSE: GVA) today announced a net loss of $8.3 million, or $0.20 per diluted share for the first quarter ended March 31, 2005. This compares with a net loss of $9.1 million or $0.23 per share for the same period last year. Included in the first quarter 2004 results was a gain on the sale of certain assets related to the Company's ready-mix concrete business in Utah of approximately $10.0 million pre-tax (approximately $6.0 million after-tax). "While most of our business is generally performing well, we did not get the year off to as good of a start as we had anticipated. However, our first quarter profitability from our operating divisions improved significantly compared to a year ago, which we believe is attributable to the work we have done to improve operating performance throughout the company," said William G. Dorey, Granite President and Chief Executive Officer. "While we realize we still have work to do, we have made significant progress over the last twelve months. We anticipate strong demand for our services in virtually all of our markets and we remain optimistic that both of our divisions will perform well in 2005." Operating Results For the first quarter of 2005, total Company revenue increased 25% to a first quarter record $420.9 million compared with $337.0 million a year ago. Total gross profit as a percent of revenue for the quarter increased to 6.4% compared with 3.2% for the same period last year. Total Company backlog at March 31, 2005 was $2.6 billion compared with $2.0 billion at March 31, 2004. New awards for the first quarter 2005 include a $178.0 million joint venture design-build toll road construction project in Texas, a $104.4 million share of a joint venture design-build subway station renovation project in New York, and a $34.8 million pumping station project in Arkansas. Results by Segment Heavy Construction Division (HCD) revenue for the quarter totaled $202.0 million versus $170.1 million for the same period last year. HCD gross profit as a percent of revenue increased in the quarter to 3.5% compared with a negative 2.1% for the quarter ended March 31, 2004. Operating loss for HCD totaled $1.3 million compared with a loss of $11.3 million in the first quarter 2004. Improved results for the division were partially offset by margin deterioration on five out of approximately 45 large projects. The unanticipated changes in the estimated costs to complete these projects accounted for approximately $11.5 million in additional costs for the quarter. HCD backlog increased $463.5 million to $2.0 billion compared with $1.6 billion at March 31, 2004. Commenting on HCD's results, Dorey stated, "We continue to focus considerable attention on bidding discipline, project execution and forecasting of our HCD projects. Due to the nature and duration of many of our HCD projects, it is important to appreciate that it takes time for the improvements and changes we have been making to affect the division's financial performance. With that being said, we expect that the progress we have made to date will result in bottom line improvement from HCD this year." Branch Division revenue for the quarter totaled $219.0 million, an increase of $52.0 million or 31% over the same period in 2004. Branch Division gross profit as a percent of revenue increased for the first quarter 2005 to 9.0% compared with 8.5% in the first quarter 2004. Operating loss for the Branch Division totaled $1.1 million for the quarter compared with a loss of $5.6 million a year ago. Backlog for the Branch Division increased 22% for the quarter to $582.8 million compared with $478.6 million at March 31, 2004. "The branches are beneficiaries of a strong private sector market in the West where we continue to see demand for commercial and residential site development work. In addition, we are witnessing an active public sector bidding environment in Arizona, Nevada, Utah and the Northwest. Given no significant change in these market conditions, the Branch Division has the opportunity to perform at or above the impressive level they achieved in 2004," Dorey stated. First Quarter Conference Call Information The Company will host a conference call on Thursday, April 28, 2005, at 11:00 a.m. Eastern time. Investors and other interested parties may access the call live by dialing 913-981-4912. A live Webcast will also be available via the Internet at www.graniteconstruction.com. The conference call will be recorded and available for replay approximately two hours after the call through May 5, 2005. In the U.S. and Canada, dial 888-203-1112. For international listeners, dial 719-457-0820. The pass code for the recording is 2460042. An audio archive of the call will also be available on the Company's website. 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, 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 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. Granite undertakes 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 "Quantitative and Qualitative Disclosures About Market Risk" 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 REVENUE AND BACKLOG ANALYSIS (Unaudited - Dollars In Thousands) BY MARKET SECTOR Revenue ----------------------------------------- Three Months Ended March 31, Variance -------------------- ------------------- 2005 2004 Amount Percent --------- --------- -------- -------- Contracts Federal $ 9,301 $ 12,304 $ (3,003) (24.4) State 127,457 126,495 962 0.8 Local 166,550 108,204 58,346 53.9 Total public sector 303,308 247,003 56,305 22.8 Private sector 71,404 50,349 21,055 41.8 Aggregate sales 46,222 39,666 6,556 16.5 $ 420,934 $ 337,018 $ 83,916 24.9 Backlog ------------------------------------------- March 31, Variance ----------------------- ------------------- 2005 2004 Amount Percent ----------- ---------- --------- -------- Contracts Federal $ 100,633 $ 122,960 $ (22,327) (18.2) State 1,015,432 780,550 234,882 30.1 Local 1,242,637 976,396 266,241 27.3 Total public sector 2,358,702 1,879,906 478,796 25.5 Private sector 255,328 166,461 88,867 53.4 Aggregate sales -- -- -- -- $ 2,614,030 $2,046,367 $ 567,663 27.7 BY GEOGRAPHIC AREA Three Months Ended March 31, Variance ---------------------- ------------------- 2005 2004 Amount Percent ---------- ---------- --------- -------- California $ 140,582 $ 114,317 $ 26,265 23.0 West (Excl. CA) 119,111 74,453 44,658 60.0 Midwest 8,001 18,651 (10,650) (57.1) Northeast 63,737 53,315 10,422 19.5 South 89,503 76,282 13,221 17.3 $ 420,934 $ 337,018 $ 83,916 24.9 March 31, Variance ---------------------- ------------------- 2005 2004 Amount Percent ---------- ---------- --------- -------- California $ 608,352 $ 235,753 $ 372,599 **** West (Excl. CA) 350,314 369,439 (19,125) (5.2) Midwest 112,437 41,743 70,694 **** Northeast 631,730 755,936 (124,206) (16.4) South 911,197 643,496 267,701 41.6 $2,614,030 $2,046,367 $ 567,663 27.7 **** Represents percentages greater than 100% GRANITE CONSTRUCTION INCORPORATED COMPARATIVE FINANCIAL SUMMARY (Unaudited - in Thousands, Except Per Share Data)
Three Months Ended March 31, Variance -------------------- -------------------- 2005 2004 Amount Percent --------- --------- --------- -------- Operations Revenue $ 420,934 $ 337,018 $ 83,916 24.9 Gross profit $26,940 $ 10,684 $ 16,256 **** Gross profit as a percent of revenue 6.4% 3.2% 3.2% -- General and administrative expenses $ 38,870 $ 36,544 $ (2,326) (6.4) G&A expenses as a percent of revenue 9.2% 10.8% 1.6% -- Gain on sales of property and equipment $ 26 $ 13,330 $ (13,304) (99.8) Other income (expense) Interest income $ 2,159 $ 1,398 $ 761 54.4 Interest expense $ (2,031) $ (1,740) $ (291) (16.7) Equity in (loss) income of affiliates $ (60) $ 107 $ (167) **** Other, net $ (73) $ 102 $ (175) **** Total other expense $ (5) $ (133) $ 128 96.2 Loss before income taxes and minority interest $ (11,909) $ (12,663) $ 754 6.0 Minority interest $ (50) $ (830) $ 780 94.0 Net loss $ (8,267) $ (9,109) $ 842 9.2 Net loss per share: Basic $ (0.20) $ (0.23) $ 0.03 13.0 Diluted $ (0.20) $ (0.23) $ 0.03 13.0 Weighted average shares of common stock: Basic 40,485 40,266 219 0.5 Diluted 40,485 40,266 219 0.5
March 31, December 31, Variance ----------------------- ------------------ 2005 2004 Amount Percent ---------- ----------- -------- -------- Financial Position Working capital $ 324,000 $ 355,927 $(31,927) (9.0) Current ratio 1.72 1.76 (0.04) (2.3) Long-term debt $ 139,705 $ 148,503 $ (8,798) (5.9) Total liabilities to equity ratio 1.30 1.32 (0.02) (1.5) Stockholders' equity $ 536,849 $ 550,474 $(13,625) (2.5) Total assets $1,233,228 $ 1,277,954 $(44,726) (3.5) Book value per common share $ 12.87 $ 13.23 $ (0.36) (2.7) Backlog $2,614,030 $ 2,437,994 $176,036 7.2 **** 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, 2005 2004 ------------ ------------- Assets Current assets Cash and cash equivalents $ 115,224 $ 161,627 Short-term marketable securities 75,460 102,237 Accounts receivable, net 380,762 357,842 Costs and estimated earnings in excess of billings 53,266 54,384 Inventories 32,562 31,711 Deferred income taxes 21,070 21,012 Equity in construction joint ventures 20,671 20,895 Other current assets 73,713 75,630 Total current assets 772,728 825,338 Property and equipment, net 380,342 376,197 Long-term marketable securities 20,612 13,828 Investment in affiliates 10,546 10,725 Other assets 49,000 51,866 $ 1,233,228 $ 1,277,954 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ 18,848 $ 15,861 Accounts payable 190,019 191,782 Billings in excess of costs and estimated earnings 137,241 144,401 Accrued expenses and other current liabilities 102,620 117,367 Total current liabilities 448,728 469,411 Long-term debt 139,705 148,503 Other long-term liabilities 41,806 40,641 Deferred income taxes 44,135 44,135 Minority interest in consolidated subsidiaries 22,005 24,790 Stockholders' 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 41,715,786 shares in 2005 and 41,612,319 shares in 2004 417 416 Additional paid-in capital 79,732 76,766 Retained earnings 470,196 482,635 Accumulated other comprehensive income 1,263 1,475 551,608 561,292 Unearned compensation (14,759) (10,818) 536,849 550,474 $ 1,233,228 $ 1,277,954 SOURCE Granite Construction Incorporated -0- 04/27/2005 /CONTACT: Jacque Underdown of Granite Construction, +1-831-761-4741/ /Web site: http://www.graniteconstruction.com / -----END PRIVACY-ENHANCED MESSAGE-----