Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q3 2021 Earnings Presentation
18 slides from Granite Construction's earnings presentation, 2021
Slide 1: Granite Construction Q3 | FY 2021 Earnings Conference Call
Granite Construction Q3 | FY 2021 Earnings Conference Call © 2021 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this in which they are made. These forward- financial condition, results of operations, presentation that are not based on looking statements are estimates cash flows and liquidity. Such risks and historical facts, including statements reflecting the best judg
Slide 3: Company Update
Company Update Kyle Larkin, President & CEO © 2021 Granite Construction. All Rights Reserved.
Slide 4: 2020 Sustainability Report Unveils New ESG Priorities
2020 Sustainability Report Unveils New ESG Priorities Strategic Vision to be the leading provider of sustainable infrastructure solutions, differentiated by our pursuit of social, environmental, and financial excellence Environmental Stewardship Social Responsibility Dependable Governance Protecting
Slide 5: Transportation Segment
Transportation Segment • YTD strong performance from the vertically-integrated businesses despite tough Q3 comp • ORP backlog burn on schedule • Strong CAP led by the vertically-integrated California Group • CA up 18% year-over-year and up 14% sequentially • Long-term infrastructure bill under negot
Slide 6: Water Segment Overview
Water Segment Overview • Revenue increase in Water & Mineral Services Operating Group • Water supply and maintenance services demand remained strong through the 3rd quarter • Continued improvement in trenchless and pipe rehabilitation services • Water CAP up 51% year-over-year, slightly down sequent
Slide 7: Specialty Segment Overview
Specialty Segment Overview • Growth in projects with the Federal government • Strength in the mining industry support by commodity prices • Renewable/solar energy market strategy drives opportunities for growth • CAP up 19% year-over-year with $267 million Lower Olentangy Tunnel added in Q1 Q3’21 Re
Slide 8: Materials Segment Overview
Materials Segment Overview • Continued strong volumes driving top line growth despite tough YOY comp • Fuel and liquid asphalt prices returned to 2019 levels • Shifts of volumes among geographies YTD Revenue* 3% California 10% 7% Nevada 10% Oregon YTD Utah 10% 1% 2021 54% Washington 5% Alaska Arizon
Slide 9: CAP Update | Reshaping the Project Portfolio, Q3 CAP at $4.3B
CAP Update | Reshaping the Project Portfolio, Q3 CAP at $4.3B Exposure to Key End Markets Allocating Risk Diversified Operating Groups 2% 3% 6% 12% 12% 34% 21% Q3 39% Q3 Q3 67% 48% 2021 2021 2021 26% 11% 19% Transportation | $2,921M Bid Build | $2,100M California | $1,484M Midwest | $525M Specialty
Slide 10: Q3 2021 Financial Results
Q3 2021 Financial Results Lisa Curtis, EVP, Chief Financial Officer © 2021 Granite Construction. All Rights Reserved.
Slide 11: Q3 2021 Financial Highlights
Q3 2021 Financial Highlights Specialty Revenue Gross Profit Strength in mineral exploration and federal (0.3%) (4.8%) site development driving revenue increase GP decrease due to ongoing disputed work $126 $120 on a tunnel project and changes in project $1,065 mix $1,062 $33 $31 $205 $234 Materials
Slide 12: Q3 2021 Financial Performance
Q3 2021 Financial Performance Q3 Q3 Key Non-GAAP 1 Metrics 2021 2020 Adjusted EBITDA $80.7 $95.1 Adjusted EBITDA Margin 7.6% 8.9% Adjusted Net Income (Loss) $43.2 $53.8 Adjusted EPS $0.93 $1.16 $ in millions except per share 1See appendix for reconciliation of these Non-GAAP figures. Net income (los
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Operating Cash Flow Liquidity Total Debt $703 $414 $139 $550 $340 $228 $156 $60 $394 $475 YTD 2020 YTD 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Revolver Availability Cash and Marketable Securities $ in millions © 2021 Granite Construction. All Rights Reserved. 13
Slide 14: Concluding Remarks
Concluding Remarks Kyle Larkin, President & CEO © 2021 Granite Construction. All Rights Reserved.
Slide 15: Concluding Remarks
Concluding Remarks Concluding Remarks • Execution in the ORP on schedule to begin 2022 with approximately $275 million in ORP CAP • CAP balance is strong with many opportunities to leverage our expertise • Cash and liquidity provides flexibility to increase shareholder value • Positive public and pr
Slide 16: Q&A
Q&A © 2021 Granite Construction. All Rights Reserved.
Slide 17: Appendix: Non-GAAP Financial Information
Appendix Non-GAAP Financial Information • Other costs which includes the settlement charge, financial measures. The methods used by the Company legal and accounting investigation fees, integration to calculate its non-GAAP financial measures may differ The tables below contain financial information
Slide 18: Adjusted EBITDA and NI Reconciliations
Adjusted EBITDA and NI Reconciliations © 2021 Granite Construction. All Rights Reserved. 18