First Quarter INVESTOR UPDATE · Quarterly figures; percentages represent gross profit margin and...
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First Quarter INVESTOR UPDATE 2015 May 2015 Houston Metro Project | TX
Transcript of First Quarter INVESTOR UPDATE · Quarterly figures; percentages represent gross profit margin and...
First Quarter INVESTOR UPDATE
2015
May 2015
Houston Metro Project | TX
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 1995, a “safe harbor” may be provided to us for certain of these forward-looking statements. Words such as “future,” “outlook,” “believes,” “expects,” “appears,” “may,” “will,” “should,” “anticipates,” “estimates,” “intends,” “plans,” “could,” “would,” “continue,” or the negative thereof or comparable terminology, are intended to identify these forward-looking statements. In addition, other written or oral statements which constitute forward-looking statements have been made and may in the future be made by or on behalf of Granite. These forward-looking statements are estimates reflecting the best judgment of our senior management and are based on our current expectations and projections concerning future events, many of which are outside of our control, and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. Factors that might cause or contribute to such differences include, but are not limited to, those risks described in the Company’s Annual Report on Form 10-K under “Item 1A. Risk Factors” and in “Part II, Item 1A. Risk Factors” in the Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason. As a result, the audience is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Except as required by law, we undertake no obligation to revise or update any forward-looking statements for any reason.
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VISION
To be one of America's leading infrastructure companies
Proud to be one of the
World’s Most
Ethical
Companies
years in a row 6 3
CONSTRUCTION INDUSTRY SUSTAINABILITY LEADER
Commitment to:
Safety & Health
Compliance & Ethics
Community
Employees
Environment
Sustainable Infrastructure
Quality
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REVENUE
$379
$586
$720
$590
$420
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
$21
$82
$67
$80
$40
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
6% 14%
9% 14%
10%
Total
Company $420M
GROSS PROFIT
Total
Company $40M
SG&A
Total
Company $52M
$49
$51
$47
$56
$52
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
13% 9% 7%
10% 12%
In millions. Quarterly figures; percentages represent gross profit margin and selling, general & administrative expenses as a percent of revenue.
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$339M Cash and
Cash Equivalents
Net Loss
Per Share $(0.22)
NET INCOME
Total
Company $(9)M
$ PER SHARE CASH
($21)
$14 $15 $17
($9)
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
($0.53)
$0.34 $0.38 $0.43
($0.22)
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
$313
$259 $269
$358 $339
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Net income and Cash in millions. Quarterly figures.
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$2.6B $2.6B
$3.0B
$2.7B
$2.9B
Q1 14 Q2 14 Q3 14 Q4 14 Q1 15
Total
Company $2.9B
BACKLOG
Net income and Cash in millions. Quarterly figures.
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FUNDING & FINANCING ENVIRONMENT
Federal State &
Local
Private
P3s
TIFIA* and P3s* driving growth opportunities * Transportation Infrastructure Finance and Innovation Act; Public-Private Partnerships. 8
MARKET ENVIRONMENT
Geography End Market
Public & Private
Strategy
Diversification drives synergies 9
Walk Bridge Replacement Connecticut
El Paso Street Car Arizona
South Capitol Corridor Washington D.C.
Ohio Canal Interceptor Ohio
Calexico Port Entry California
Project Neon Nevada
Loop 202 So. Mountain Fwy Arizona
Purple Line - Light Rail Maryland
Grand Parkway Texas
Amtrak New Haven-Springfield Connecticut
Grand Central Station Caverns New York
Waterfront MACC Federal 10
LARGE PROJECTS
In Large Projects to Bid
over the Next Two Years $18B
Projects >$10M include:
Union Pacific Railroad Arizona
Vandenberg Air Force Base Santa Clara, CA
Newark Airport Power Station Newark, NJ
Easton Hill/Kachess River Selah, WA
Creek Flood Protection Santa Clara, CA
Oasis Area Irrigation Indio, CA
11/25/905 Connector San Diego, CA
I-10/SR-83 to SR-90 Phoenix, AZ
Auto Mall St. Improvements Ventura, CA 11
CONSTRUCTION
In Construction Projects
Bidding in May 2015 $400M
EXECUTING ON STRATEGIC PLAN
TRANSFORM
and GROW the vertically-integrated business
GROW the large projects business
GROW through
diversification
OPTIMIZE our business
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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
More than 750 million tons of permitted aggregate reserves (owned and leased)
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EXECUTING ON STRATEGIC PLAN
GROW the large projects business
Focus on:
• Proactive business development
• Growing capabilities
• Alternative procurement
• Project selection
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EXECUTING ON STRATEGIC PLAN
GROW through diversification
Power
Water & Wastewater
Oil & Gas
Mining
Underground
Tunneling
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Transportation Infrastructure
Pavement Preservation
Construction Materials
Federal Contracting
EXECUTING ON STRATEGIC PLAN
OPTIMIZE our business
Focus on:
• National Purchasing
• Continuous Improvement
Challenging ourselves to be better every day
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EXECUTING ON STRATEGIC PLAN
TRANSFORM
and GROW the vertically-integrated business
GROW the large projects business
GROW through
diversification
OPTIMIZE our business
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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, results of operations and cash flows
must be considered when assessing the Company's actual financial
condition and performance regardless of whether these items are
included in non-GAAP financial measures. The methods used by the
Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute
similar measures. As a result, any non-GAAP financial measures
provided by the Company may not be comparable to similar measures
provided by other companies.
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REVENUE
$1.8 $2.0
$2.1 $2.3 $2.3
2010 2011 2012 2013 2014
$178
$248 $235
$185
$250
2010 2011 2012 2013 2014
10% 12% 11% 8% 11%
Total
Company $2.3B
GROSS PROFIT
Total
Company $250M
SG&A
Total
Company $204M
$192
$162
$185 $200 $204
2010 2011 2012 2013 2014
11% 8% 9% 9% 9%
In millions. Years ended December 31; percentages represent gross profit margin and selling, general & administrative expenses as a percent of revenue.
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$358M Cash and
Cash Equivalents
Net Income
Per Share $0.64
NET INCOME
Total
Company $25M
$ PER SHARE CASH
($59)
$51 $45
($36)
$25
2010 2011 2012 2013 2014
($1.56)
$1.31 $1.15
($0.94)
$0.64
2010 2011 2012 2013 2014
$396 $407
$433
$346 $358
2010 2011 2012 2013 2014
Net income and Cash in millions. Years ended December 31.
2011 2012 2014 2011 2012 2014
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(1) We define EBITDA as GAAP net loss attributable to Granite Construction Incorporated, adjusted for
interest, taxes, depreciation, depletion and amortization. We believe this non-GAAP financial measure and
the associated margin are useful in evaluating operating performance and are regularly used by security
analysts, institutional investors and other interested parties in reviewing the Company. However, 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. The methods used by the Company to calculate its non-GAAP financial measures may differ
significantly from methods used by other companies to compute similar measures. As a result, any non-
GAAP financial measures provided by the Company may not be comparable to similar measures provided
by other companies.
2) Amount includes the sum of depreciation, depletion and amortization which are classified as Cost of
Revenue and Selling, General and Administrative expenses in the condensed consolidated statements of
operations of Granite Construction Incorporated.
(3) Represents EBITDA divided by consolidated revenue. Consolidated revenue was $420,249 and
$379,847 for the periods ending March 31, 2015 and 2014, respectively.
Non-GAAP Information
(in thousands)
EBITDA(1)
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Earnings Before Interest Taxes Depreciation &
Amortization (EBITDA)
2015 2014
Net loss attributable to Granite Construction Incorporated (8,560)$ (20,553)$
Depreciation, depletion and amortization expense(2) 15,627 15,832
Benefit from income taxes (4,506) (8,064)
Interest expense, net of interest income 3,054 3,120
EBITDA(1)
5,615$ (9,665)$
Consolidated EBITDA Margin(3)
1.3 % (2.5)%
Three Months Ended
March 31,
State Route 520 | WA
2015
Ron Botoff
Director of Investor Relations
O: (831) 728-7532
First Quarter INVESTOR
UPDATE May 2015
