Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q1 2021 Earnings Presentation
20 slides from Granite Construction's earnings presentation, Jul 29, 2021
Slide 1: Granite Construction Q1 FY 2021 Earnings Conference Call
Granite Construction Q1 | FY 2021 Earnings Conference Call © 2021 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this statements are estimates reflecting the described in greater detail in our filings presentation that are not based on best judgment of senior management and with the Securities and Exchange historical facts, including statements reflect our current expect
Slide 3: Company Update
Company Update Kyle Larkin, President © 2021 Granite Construction. All Rights Reserved.
Slide 4: Core Values
Core Values © 2021 Granite Construction. All Rights Reserved.
Slide 5: Safety by Choice
Safety by Choice Safety and well-being of our people, our partners, and the public is our greatest responsibility. Training Planning Engagement Educate and Empower Approach every task with safety Engage every level of Employees to make Safe Choices planned into process organization in safety culture
Slide 6: Inclusive Diversity – Is about all of us
Inclusive Diversity – Is about all of us We embrace individual differences and similarities and are committed to our inclusive environment where everyone is welcomed. Create Clarity Develop Talent Build Capability Build internal and external Strengthen talent pipeline with a Train leaders and unders
Slide 7: Transportation Segment
Transportation Segment • Continued transformation of Transportation CAP • Execution in Old Risk Portfolio on track • Robust bid schedule in a competitive environment • Improving Federal, State, and Local funding environment Q1’21 Revenue Q1’21 CAP 5% 9% 20% 32% 37% $351M 28% $3,029M 13% 6% 30% 19% C
Slide 8: Water Segment Overview
Water Segment Overview • Gradual recovery from COVID-19 pandemic • Positive bidding environment • Water CAP continues to grow with recently awarded $160 million Texas dam project to be added to Q2 CAP Q1’21 Revenue Q1’21 CAP 2% 11% 8% 7% 7% 2% $100M $339M 80% 83% Water & Mineral Heavy Civil Federal
Slide 9: Specialty Segment Overview
Specialty Segment Overview • All operating groups contributing to revenue growth in the segment • Continued strong market for site development work in public and private markets • Growth in CAP with $267 million Ohio tunnel project added in Q1 Q1’21 Revenue Q1’21 CAP 14% 11% 15% 29% 13% 18% $156M 33
Slide 10: Materials Segment Overview
Materials Segment Overview • Exceptional performance in our seasonally slowest quarter • Materials orders in 2021 continue to outpace 2020 • Volume growth in both aggregates and asphalt year-over-year Q1’21 Revenue* California 8% 13% Nevada 6% 1% 3% Oregon 3% Q1 Utah 2021 Washington 66% Alaska Arizo
Slide 11: CAP Update | Reshaping the Project Portfolio, Q1 CAP at $4,452M
CAP Update | Reshaping the Project Portfolio, Q1 CAP at $4,452M Exposure to Key End Markets Allocating Risk Diversified Operating Groups 2% 3% 6% 8% 14% 30% 24% 34% Q1 68% Q1 Q1 2021 2021 48% 2021 25% 16% 22% Transportation | $3,029M Bid Build | $2,155M California | $1,324M Midwest | $608M Specialty
Slide 12: Q1 2021 Financial Results
Q1 2021 Financial Results Lisa Curtis, EVP, Chief Financial Officer © 2021 Granite Construction. All Rights Reserved.
Slide 13: Q1 2021 Financial Highlights
Q1 2021 Financial Highlights Revenue Gross Profit Transportation +5% +166% • Increase in California Operating Group revenue offset by decrease in Heavy Civil Operating Group • Decreased losses from Old Risk $636 $670 Portfolio $63 $133 $156 Water $17 • Continued recovery from COVID-19 $50 $63 $2 $10
Slide 14: Q1 2021 Financial Performance
Q1 2021 Financial Performance Q1 Q1 Key Non-GAAP 1 Metrics 2021 2020 Adjusted EBITDA $16.9 ($18.4) Adjusted EBITDA Margin 2.5% (2.9%) Adjusted Net Income (Loss) ($4.9) ($31.6) Adjusted EPS ($0.11) ($0.69) $ in millions except per share 1See appendix for reconciliation of these Non-GAAP figures © 202
Slide 15: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Operating Cash Flow Liquidity Total Debt $691 $364 $492 $340 $227 $38 $244 $464 $248 ($20) Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Revolver Availability Cash and Marketable Securities $ in millions © 2021 Granite Construction. All Rights Reserved. 15
Slide 16: Concluding Remarks
Concluding Remarks Kyle Larkin, President © 2021 Granite Construction. All Rights Reserved.
Slide 17: Concluding Remarks
Concluding Remarks Concluding Remarks • Strong Q1 performance • Litigation settlement cleared way for focus on execution • Bidding environment active • Funding outlook positive © 2021 Granite Construction. All Rights Reserved. 17
Slide 18: Q&A
Q&A © 2021 Granite Construction. All Rights Reserved.
Slide 19: Appendix: Non-GAAP Financial Information
Appendix Non-GAAP Financial Information net loss per share, non-GAAP measures, to Company's actual financial condition and The tables below contain financial information indicate the impact of the following: performance regardless of whether these items calculated other than in accordance with U.S.
Slide 20: Adjusted EBITDA and NI Reconciliations
Adjusted EBITDA and NI Reconciliations © 2021 Granite Construction. All Rights Reserved. 20