Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q3 2014 Earnings Presentation
26 slides from Granite Construction's earnings presentation, Nov 13, 2014
Slide 1: Investor Update 3rd Quarter 2014
INVESTOR UPDATE 3rd Quarter 2014 Washoe County | Lake Tahoe, NV
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 5 years in a row
Slide 4: Construction Industry Sustainability Leader
CONSTRUCTION INDUSTRY SUSTAINABILITY LEADER Commitment to: Health & Safety Community Compliance & Ethics Environment Infrastructure Investment Quality
Slide 5: Revenue, Gross Profit, SG&A
REVENUE GROSS PROFIT SG&A $719M Total Company $67M Total Company $47M Total Company $740 $51 $51 $719 $82 $598 $586 $67 $49 $56 $50 $47 $379 $45 $21 14% 6% 9% 13% 9% 8% 8% 9% 7% 6% Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Slide 6: Net Income, $ Per Share, Cash
NET INCOME $ PER SHARE CASH $15M Total Company $0.38 Net Income Per Share $269M Cash and Cash Equivalents $15 $346 $13 $14 $313 $0.38 $0.34 $0.34 $299 $269 $258 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 ($21) ($29) ($0.53) ($0.74) Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Slide 7: Funding & Financing Environment
FUNDING & FINANCING ENVIRONMENT State & Federal Local P3s Private TIFIA* and P3s* driving growth opportunities * Transportation Infrastructure Finance and Innovation Act; Public-Private Partnerships.
Slide 8: Market Environment
MARKET ENVIRONMENT Geography End Market Strategy Public & Private Diversification drives synergies
Slide 9: 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
Slide 10: Executing on Strategic Plan: Transform and Grow
EXECUTING ON STRATEGIC PLAN TRANSFORM and GROW the vertically-integrated business Focus on: • Execution • Cost-efficiency opportunities • New, expanded customer relationships • Expansion of VI footprint
Slide 11: Executing on Strategic Plan: Grow Large Projects
EXECUTING ON STRATEGIC PLAN GROW the large projects business Focus on: • Proactive business development • Growing capabilities • Alternative procurement • Project selection
Slide 12: Executing on Strategic Plan: Grow through Diversification
EXECUTING ON STRATEGIC PLAN GROW through diversification Pavement Preservation Transportation Construction Infrastructure Materials Water & Mining Tunneling Wastewater Oil & Power Underground Gas
Slide 13: Executing on Strategic Plan: Optimize Our Business
EXECUTING ON STRATEGIC PLAN OPTIMIZE our business Focus on: • Continuous Improvement • National Purchasing
Slide 14: Continuous Improvement Investment
CONTINUOUS IMPROVEMENT INVESTMENT Investment: 2013-2014 • Employing Lean Six Sigma techniques • $5-$7 million expected total cost Return: 2015 and beyond • Expect at least $10 million by end of 2015 • Efficiency gains drive recurring savings, enable growth Challenging ourselves to be better every da
Slide 15: 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
Slide 16: Backlog $3.0B
BACKLOG Homer East End Road | AK $3.0B Total Company $3.0B $2.8B Apple Headquarters | CA Ave 52 Grade Separation | CA $2.5B $2.6B $2.8B Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 (Delinquent Bridge) Rapid Bridge Replacement Project | PA
Slide 17: Large Projects $11B
Houston Light Rail | TX IH-35E | TX LARGE PROJECTS $11B In Large Projects to Bid Through End of 2015 Iliana Expressway (P3) Illinois MDMTA Purple Line Transit (P3) Maryland Harbor Bridge US 181 Texas Folsom Dam | CA SR 58 – Kramer Junction California I-395 Miami Florida Asheboro Bypass North Carolin
Slide 18: Construction $780M
CONSTRUCTION $780M In Construction Projects Bidding in November 2014 Prunedale Improvement Project | CA Mule Creek Prison Infill Project | CA Projects >$10M include: TOK River Bridge Alaska I-5 Panel Replacement Bakersfield Sterling Highway Alaska I-5 Santa Nella Fresno Highway 101 Overlay Ukiah Mea
Slide 19: 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 20: Historical Financial Snapshot
HISTORICAL FINANCIAL SNAPSHOT* REVENUE CASH SG&A $2.3B Total Company $346M Total Company $200M Total Company $458 $433 $2.3 $407 $228 $396 $200 $2.0 $2.1 $192 $2.0 $185 $346 $1.8 $162 18.0% 11.6% 10.9% 8.9% 8.1% 8.8% 11.3% 9.8% 11.5% 8.2% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2
Slide 21: Historical Financial Snapshot
HISTORICAL FINANCIAL SNAPSHOT NET INCOME (in millions) $ PER SHARE (diluted) $1.90 $74 $1.31 $1.15 $51 $45 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 $(36) ($0.94) $(59) (Years ending December 31) ($1.56)
Slide 22: Consolidated Statements of Operations
Consolidated Statements of Operations 2013 Nine Months Ended September 30, 2014 As Revised Revenue $1,685,481 $1,668,803 Consolidated Gross profit 170,515 135,513 Selling, general and administrative Statements expenses 147,731 149,477 of Operations Net income (loss) Amount attributable to non-contro
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets September September December 30, 2013 30, 2014 31, 2013 As Revised Total assets $1,683,043 $1,617,155 $1,727,134 Cash, cash equivalents and Consolidated marketable securities 269,264 346,323 299,369 Balance Sheets Working capital Current maturities of long- 476,662 452,63
Slide 24: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 2013 Nine Months Ended September 30, 2014 As Revised Net cash used in operating activities $(46,833) $(64,515) Net cash (used in) provided by investing Consolidated activities (11,298) 7,713 Statements Net cash used in financing activities (3,816) (52,725) of Ca
Slide 25: Adjusted Information: EBITDA
Earnings Before Interest Taxes Depreciation & Amortization (EBITDA) Nine Months Ended September 30, 2014 Net income attributable to Granite Construction Incorporated $8,370 Depreciation, depletion and amortization expense 49,968 Provision for income taxes 8,301 Non-GAAP EBITDA1 Adjusted Information
Slide 26: 3rd Quarter 2014
INVESTOR UPDATE 3rd Quarter 2014 Ron Botoff Director of Investor Relations O: (831) 728-7532 E: ronald.botoff@gcinc.com Tappan Zee Bridge/Left Coast Lifter | NY