CORRECTING and REPLACING Granite Reports Third Quarter 2008 Financial Results
In the release dated
The corrected release reads:
GRANITE REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
"Our team has delivered another impressive quarter," said President and Chief Executive Officer
General and administrative expenses for the quarter totaled
Minority interest for the quarter ended
For the nine-month period ended
At
Operating Results by Segment
Granite West
Revenue for the quarter totaled
For the nine-month period ended
Granite East
Revenue for the quarter was
For the nine-month period ended
Granite
GLC revenue for the quarter was
For the nine-month period ended
Outlook
Our expectations for 2008 have improved. We now expect Granite West revenue for the year to be in the range of
Conference Call
Granite will conduct a conference call tomorrow,
About Granite
Forward-Looking Statements
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. In addition, statements in this press release that are not historical are "forward-looking statements" as in the Private Securities Litigation Reform Act of 1995. 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, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operation" and "Risk Factors" sections of Granite's
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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - In Thousands, Except Per Share Data)
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Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
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Revenue
Construction $771,941 $701,622 $1,755,457 $1,778,638
Material sales 124,478 123,453 283,321 289,655
Real estate 1,369 21,238 8,142 36,556
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Total revenue 897,788 846,313 2,046,920 2,104,849
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Cost of revenue
Construction 643,531 601,880 1,437,093 1,543,960
Material sales 109,068 96,130 247,959 229,116
Real estate 887 11,666 9,846 19,466
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Total cost of revenue 753,486 709,676 1,694,898 1,792,542
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Gross profit 144,302 136,637 352,022 312,307
General and administrative
expenses 71,933 63,666 198,344 183,133
Gain on sales of property
and equipment 2,008 2,994 4,564 8,053
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Operating income 74,377 75,965 158,242 137,227
Other income (expense)
Interest income 5,439 7,514 15,087 20,796
Interest expense (5,303) (1,884) (12,871) (4,998)
Equity in (loss) income
of affiliates (1,257) 4,037 (1,436) 4,359
Other, net 549 (391) 9,196 (1,057)
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Total other (expense)
income (572) 9,276 9,976 19,100
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Income before provision
for income taxes and
minority interest 73,805 85,241 168,218 156,327
Provision for income tax 21,473 25,437 46,681 47,680
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Income before minority
interest 52,332 59,804 121,537 108,647
Minority interest in
consolidated subsidiaries (594) (6,504) (31,058) (13,750)
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Net income $ 51,738 $ 53,300 $ 90,479 $ 94,897
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Net income per share:
Basic $ 1.38 $ 1.30 $ 2.40 $ 2.31
Diluted $ 1.36 $ 1.28 $ 2.37 $ 2.28
Weighted average shares of
common stock:
Basic 37,430 41,106 37,664 41,065
Diluted 37,975 41,640 38,138 41,587
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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - In Thousands, Except Per Share Data)
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September 30, December 31,
2008 2007
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Assets
Current assets
Cash and cash equivalents $ 281,046 $ 352,434
Short-term marketable securities 101,112 77,758
Accounts receivable, net 480,315 397,097
Costs and estimated earnings in excess of
billings 34,759 17,957
Inventories, net 61,342 55,557
Real estate held for sale 52,165 51,688
Deferred income taxes 46,233 43,713
Equity in construction joint ventures 45,219 34,340
Other current assets 65,182 96,969
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Total current assets 1,167,373 1,127,513
Property and equipment, net 522,733 502,901
Long-term marketable securities 30,209 55,156
Investment in affiliates 27,518 26,475
Other assets 73,696 74,373
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Total assets $ 1,821,529 $ 1,786,418
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Liabilities and Shareholders' Equity
Current liabilities
Current maturities of long-term debt $ 34,886 $ 28,696
Accounts payable 234,126 213,135
Billings in excess of costs and estimated
earnings 251,402 275,849
Accrued expenses and other current
liabilities 227,611 212,265
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Total current liabilities 748,025 729,945
Long-term debt 246,487 268,417
Other long-term liabilities 46,178 46,441
Deferred income taxes 18,733 17,945
Minority interest in consolidated
subsidiaries 26,729 23,471
Shareholders' equity:
Preferred stock, $0.01 par value,
authorized
3,000,000 shares; none outstanding - -
Common stock, $0.01 par value, authorized
150,000,000
shares in 2008 and 2007;
issued and outstanding 38,264,058 shares
in
2008 and 39,450,923 shares in 2007 383 395
Additional paid-in capital 83,041 79,007
Retained earnings 655,287 619,699
Accumulated other comprehensive (loss)
income (3,334) 1,098
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Total shareholders' equity 735,377 700,199
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Total liabilities and shareholders'
equity $ 1,821,529 $ 1,786,418
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September 30, December 31,
Financial Position 2008 2007
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Working capital $ 419,348 $ 397,568
Current ratio 1.56 1.54
Debt to total capitalization 0.28 0.30
Total liabilities to equity ratio 1.48 1.55
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GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited - In Thousands)
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Nine Months Ended September 30, 2008 2007
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Operating activities
Net income $ 90,479 $ 94,897
Adjustments to reconcile net income to net
cash provided by operating activities:
Impairment of real estate held for
development and sale 4,500 -
Depreciation, depletion and amortization 64,036 60,621
Provision for doubtful accounts 8,914 1,119
Gain on sales of property and equipment (4,564) (8,053)
Change in deferred income taxes 1,116 (11)
Stock-based compensation 5,135 4,600
Excess tax benefit on stock-based
compensation (743) (3,042)
Minority interest in consolidated
subsidiaries 31,058 13,750
Equity in loss (income) of affiliates 1,436 (4,359)
Acquisition of minority interest (16,616) -
Changes in assets and liabilities, net of the
effects of acquisitions (79,854) (21,955)
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Net cash provided by operating activities 104,897 137,567
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Investing activities
Purchases of marketable securities (68,732) (126,464)
Maturities of marketable securities 64,090 140,225
Release of funds for acquisition of minority
interest 28,332 -
Additions to property and equipment (76,098) (82,744)
Proceeds from sales of property and equipment 12,253 12,765
Acquisition of businesses (14,022) (76,313)
Contributions to affiliates (5,345) (3,772)
Other investing activities 626 3,459
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Net cash used in investing activities (58,896) (132,844)
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Financing activities
Proceeds from long-term debt 2,660 111,634
Long-term debt principal payments (15,748) (49,376)
Cash dividends paid (15,081) (12,572)
Purchase of common stock (45,489) (5,083)
Contributions from minority partners 4,955 30,436
Distributions to minority partners (37,713) (22,458)
Acquisition of minority interest (11,716) -
Excess tax benefit on stock-based compensation 743 3,042
Other financing, net - 366
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Net cash (used in) provided by financing
activities (117,389) 55,989
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(Decrease) Increase in cash and cash equivalents (71,388) 60,712
Cash and cash equivalents at beginning of period 352,434 204,893
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Cash and cash equivalents at end of period $ 281,046 $ 265,605
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GRANITE CONSTRUCTION INCORPORATED
Business Segment Information
(Unaudited - In Thousands)
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Three Months Ended September 30,
Granite Land
Granite West Granite East Company
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2008
Revenue $ 749,487 $ 146,932 $ 1,369
Gross profit (loss) $ 133,738 $ 9,750 $ 482
Gross profit (loss) as a
percent of revenue 17.8% 6.6% 35.2%
Operating income (loss) $ 93,404 $ 3,653 $ (191)
Operating income (loss) as a
percent of revenue 12.5% 2.5% -14.0%
2007
Revenue $ 642,428 $ 182,647 $ 21,238
Gross profit $ 124,656 $ 2,075 $ 9,571
Gross profit as a percent of
revenue 19.4% 1.1% 45.1%
Operating income (loss) $ 89,755 $ (3,174) $ 8,241
Operating income (loss) as a
percent of revenue 14.0% -1.7% 38.8%
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Nine Months Ended September 30,
Granite Land
Granite West Granite East Company
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2008
Revenue $ 1,506,952 $ 531,826 $ 8,142
Gross profit (loss) $ 267,057 $ 87,868 $ (1,704)
Gross profit (loss) as a
percent of revenue 17.7% 16.5% -20.9%
Operating income (loss) $ 155,284 $ 67,795 $ (3,795)
Operating income (loss) as a
percent of revenue 10.3% 12.7% -46.6%
2007
Revenue $ 1,482,969 $ 585,324 $ 36,556
Gross profit $ 286,394 $ 8,478 $ 17,090
Gross profit as a percent of
revenue 19.3% 1.4% 46.8%
Operating income (loss) $ 186,476 $ (13,359) $ 14,120
Operating income (loss) as a
percent of revenue 12.6% -2.3% 38.6%
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GRANITE CONSTRUCTION INCORPORATED
Backlog
(Unaudited - In Thousands)
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Backlog by
Division September 30, 2008 June 30, 2008 September 30, 2007
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Granite
West $ 915,472 50.3% $1,188,948 55.5% $ 950,833 40.7%
Granite
East 906,116 49.7% 952,700 44.5% 1,385,688 59.3%
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Total $1,821,588 100.0% $2,141,648 100.0% $2,336,521 100.0%
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Source:
