Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q2 2015 Earnings Presentation
21 slides from Granite Construction's earnings presentation, September 2015
Slide 1: Second Quarter 2015 Investor Update
2015 Second Quarter INVESTOR UPDATE September 2015 Homer East End Road Project – Homer, Alaska
Slide 2: Safe Harbor
SAFE HARBOR Statements made in this presentation are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, outcomes and results, that may be forward looking in nature. Under the Private Securities Litigation Reform Act of 19
Slide 3: Vision
VISION To be one of America's leading infrastructure companies Proud to be one of the World’s Most Ethical Companies 6 years in a row 3
Slide 4: Construction Industry Sustainability Leader
CONSTRUCTION INDUSTRY SUSTAINABILITY LEADER Commitment to: Safety & Health Compliance & Ethics Community Employees Environment Sustainable Infrastructure Quality 4
Slide 5: Revenue, Gross Profit, SG&A
REVENUE GROSS PROFIT SG&A $569M Total Company $66M Total Company $49M Total Company $720 $82 $80 $56 $586 $590 $67 $66 $569 $52 $51 $420 $49 $40 $47 9% 12% 7% 10% 9% 14% 14% 10% 12% 9% Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Slide 6: Net Income, Per Share, Cash
NET INCOME $ PER SHARE CASH $10M Total Company $0.24 Net Income Per Share $276M Cash and Marketable Securities $358 $17 $0.43 $339 $14 $15 $0.38 $0.34 $276 $10 $259 $269 $0.24 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 ($9) ($0.22) Q2 14 Q3 14 Q4 14 Q1 15 Q2 15
Slide 7: Backlog $3.0B
BACKLOG $3.0B Total Company $3.0B $3.0B $2.9B $2.7B $2.6B Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 SouthEast Connector | Reno, NV
Slide 8: Funding and Market Trends
FUNDING AND MARKET TRENDS State & Federal Geography End Market Local P3s Strategy Public & Private Private State actions, steady economic improvement spur opportunities; Federal highway bill remains incremental 8
Slide 9: Large Projects $20B
San Clemente Dam | Carmel Valley, CA LARGE PROJECTS $20B In Large Projects to Bid over the Next Two Years I-405 Huntington Beach California El Paso Street Car Texas Hartford Conveyance Tunnel Connecticut Grand Central Station Caverns New York I-26 Port Access Road South Carolina Project Neon Nevada
Slide 10: Construction $600M
El Centro Airport | CA CONSTRUCTION $600M In Construction Projects Bidding in Sept. 2015 Notable projects include: Highway 140 Ferguson | Yosemite, CA Salt Creek Intercepting Sewer 2 Stickney, IL Copper Mountain Solar Reno, NV Hwy 99 Widening Visalia, CA Hwy 101 Overlay Soledad, CA Bus Rapid Transit
Slide 11: Executing on Strategic Plan
EXECUTING ON STRATEGIC PLAN TRANSFORM GROW GROW OPTIMIZE and GROW the the large projects through our business vertically-integrated business diversification business 11
Slide 12: Executing on Strategic Plan: Transform and Grow Vertically-Integrated Business
EXECUTING ON STRATEGIC PLAN TRANSFORM and GROW the vertically-integrated business Focus on: • Execution • Cost-efficiency opportunities • Growing customer relationships • Expansion of VI footprint More than 750 million tons of permitted aggregate reserves (owned and leased) 12
Slide 13: Executing on Strategic Plan: Grow the Large Projects Business
EXECUTING ON STRATEGIC PLAN GROW the large projects business Focus on: • Proactive business development • Growing capabilities • Alternative procurement • Project selection 13
Slide 14: Executing on Strategic Plan: Grow through Diversification
EXECUTING ON STRATEGIC PLAN GROW through diversification Pavement Federal Preservation Contracting Transportation Construction Infrastructure Materials Water & Mining Tunneling Wastewater Oil & Power Underground Gas 14
Slide 15: Executing on Strategic Plan: Optimize Our Business
EXECUTING ON STRATEGIC PLAN OPTIMIZE our business Focus on: • National Purchasing • Continuous Improvement Challenging ourselves to be better every day 15
Slide 16: Executing on Strategic Plan
EXECUTING ON STRATEGIC PLAN TRANSFORM GROW GROW OPTIMIZE and GROW the the large projects through our business vertically-integrated business diversification business 16
Slide 17: Appendix
Appendix Note: The reader is cautioned that any non-GAAP financial measures provided by the Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with GAAP. Items that may have a significant impact on the Company's financial position,
Slide 18: Revenue, Gross Profit, SG&A
REVENUE GROSS PROFIT SG&A $2.3B Total Company $250M Total Company $204M Total Company $2.3 $2.3 $248 $250 $2.1 $235 $200 $204 $2.0 $192 $185 $1.8 $185 $162 $178 11% 8% 9% 9% 9% 10% 12% 8% 11% 11% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 In millions. Years ended Dece
Slide 19: Net Income, Per Share, Cash
NET INCOME $ PER SHARE CASH $25M Total Company $0.64 Net Income Per Share $358M Cash and Cash Equivalents $1.31 $1.15 $433 $51 $45 $396 $407 $0.64 $358 $25 $346 2010 2011 2011 2012 2012 2013 2014 2014 2010 2011 2011 2012 2012 2013 2014 2014 ($36) ($0.94) ($59) ($1.56) 2010 2011 2012 2013 2014 Net in
Slide 20: EBITDA
EBITDA GRANITE CONSTRUCTION INCORPORATED EBITDA(1) (Unaudited - dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income (loss) attributable to Granite Construction Incorporated $ 9,613 $ 13,641 $ 1,053 $ (6,913) (2) Depreciation, depletion and amort
Slide 21: Investor Update
The New NY Bridge | NY 2015 Second Quarter INVESTOR UPDATE Ron Botoff Director of Investor Relations O: (831) 728-7532 E: ronald.botoff@gcinc.com