Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q4 2020 Earnings Presentation
20 slides from Granite Construction's earnings presentation, February 2021
Slide 1: Granite Construction Q4 | FY 2020 Earnings Conference Call
Granite Construction Q4 | FY 2020 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: Sustainability/ESG
Sustainability/ESG Managing Our Business With The Future In Mind New strategic foundations for sustainability: Social Environmental Sustainable Dependable Responsibility Stewardship Economics Governance Recent Progress Current Efforts & Looking Forward ✓ Completed materiality assessment • Aligning t
Slide 6: Transportation Segment
Transportation Segment • Strength of vertically-integrated businesses in established California and Northwest markets • Growth in Midwest civil transportation business • Transformation of the Heavy Civil Operating Group portfolio • Positive Federal, State, and Local funding environment 2020 Revenue
Slide 7: Water Segment Overview
Water Segment Overview • Geographic diversity across operating groups, led by the Water & Mineral Services Operating Group • Diverse end markets across the country o Trenchless and pipe rehabilitation services o Pump sales and services, well rehabilitation, and water treatment services o Water trans
Slide 8: Specialty Segment Overview
Specialty Segment Overview • Growth driven by capabilities in diverse end markets led by site development and reclamation, tunneling, and mineral exploration services • Record-high CAP reflects results of strengthening private and public client relationships • CAP expected to grow as a percentage of
Slide 9: Materials Segment Overview
Materials Segment Overview • Materials assets provide crucial competitive advantage to vertically-integrated businesses • Continuous strategic reinvestment in materials assets o Added 125 million tons of permitted reserves in the last two years • Internal and external demand strong led by California
Slide 10: CAP Update | Reshaping the Project Portfolio, Q4 CAP at $4,281M
CAP Update | Reshaping the Project Portfolio, Q4 CAP at $4,281M Exposure to Key End Markets Allocating Risk Diversified Operating Groups 2% 6% 2% 7% 8% 18% 31% 36% Q4 Q4 Q4 2020 75% 2020 45% 2020 26% 18% 27% Transportation | $3,193M Bid Build | $1,916M California | $1,338M Midwest | $353M Specialty
Slide 11: Q4 2020 Financial Results
Q4 2020 Financial Results Lisa Curtis, EVP, Chief Financial Officer © 2021 Granite Construction. All Rights Reserved.
Slide 12: Full Year 2020 Financial Highlights
Full Year 2020 Financial Highlights Transportation Gross Profit • Core vertically-integrated businesses driven Revenue primarily by strength in California • Profitability negatively impacted by heavy +3% +56% civil old risk portfolio $345 Water $3,446 $3,562 • Performance rebounded in Q4 due to $92
Slide 13: Full Year 2020 Financial Performance
Full Year 2020 Financial Performance Key Non-GAAP 1 Metrics 2020 2019 % Change Adjusted EBITDA $189.7 $71.7 164% Adjusted EBITDA Margin 5.3% 2.1% 152% Adjusted Net Income (Loss) $60.0 ($27.2) 321% Adjusted EPS $1.30 ($0.58) 324% $ in millions except per share 1See appendix for reconciliation of thes
Slide 14: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Operating Cash Flow Liquidity Total Debt $671 $588 $364 $339 $230 $293 $268 $111 $441 $295 2019 2020 Q4 19 Q4 20 Q4 19 Q4 20 Revolver Availability Total Debt Cash and Marketable Securities • Record cash flow from operations in 2020 • Q4 cash and cash equivalents of • Divi
Slide 15: 2021 Outlook
2021 Outlook Guidance Revenue Low- to Mid-single digit growth Adjusted EBITDA Margin 5.5% - 7.5% 8.5% to 9% of revenue SG&A Expense (Excluding non-recurring legal expenses) Tax Rate Mid-20s percentage range Capital Expenditure $80 - $100 million © 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 • Full compliance with all reporting requirements • Strong performance expected in 2021 • Revisiting strategic plan to maximize shareholder value © 2021 Granite Construction. All Rights Reserved. 17
Slide 18: Q&A
Q&A © 2021 Granite Construction. All Rights Reserved.
Slide 19: Appendix
Appendix Non-GAAP Financial Information transaction costs, professional fees and internal expense excluding non-recurring legal expenses The tables below contain financial information travel. Synergy costs include expenses incurred to the most directly comparable forward-looking calculated other tha
Slide 20: Adjusted EBITDA and NI Reconciliations
Adjusted EBITDA and NI Reconciliations © 2021 Granite Construction. All Rights Reserved. 20