Granite Construction Q3 Revenue Down, Net Income Up

TL;DR

GVA revenue down to $2.75B YTD, but net income improved to $31.8M. Still a tough market.

AI Summary

Granite Construction Inc. reported its third-quarter results for the period ending September 30, 2024. The company's revenue for the nine months ended September 30, 2024, was $2.75 billion, a decrease from $3.75 billion for the same period in 2023. Net income for the nine months ended September 30, 2024, was $0.0317776 billion, down from $0.0216807 billion in the prior year.

Why It Matters

This filing provides insight into Granite Construction's financial performance, indicating a shift in revenue streams and profitability, which could impact investor confidence and future project bidding.

Risk Assessment

Risk Level: medium — The decrease in revenue suggests potential market challenges or project execution issues, while the increase in net income might be due to cost management or specific project profitability.

Key Numbers

• $2.75B — Revenue (YTD) (Represents a decrease compared to the prior year's $3.75B.)
• $31.8M — Net Income (YTD) (Shows an improvement from $21.7M in the prior year.)

Key Players & Entities

• Granite Construction Inc. (company) — Filer of the 10-Q report
• 2024-09-30 (date) — End of the reporting period for the 10-Q
• $2.75 billion (dollar_amount) — Revenue for the nine months ended September 30, 2024
• $3.75 billion (dollar_amount) — Revenue for the nine months ended September 30, 2023
• $0.0317776 billion (dollar_amount) — Net income for the nine months ended September 30, 2024
• $0.0216807 billion (dollar_amount) — Net income for the nine months ended September 30, 2023

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value GVA New York Stock Exchange
• $0.13 — — — — — — — Dividends on common stock ($0.13 per share) — — 73 — ( 5,753 ) ( 5,680 )
• $300.0 million — rectors authorized us to purchase up to $300.0 million of our common stock at management's dis
• $218.2 million — f Cash Flows. As of September 30, 2024, $218.2 million of the authorization remained available
• $124.2 million — &B") for an estimated purchase price of $124.2 million in cash, subject to customary closing a
• $31.7 million — ble and intangible assets acquired were $31.7 million and $27.7 million, respectively, result
• $27.7 m — assets acquired were $31.7 million and $27.7 million, respectively, resulting in acqui
• $64.8 m — vely, resulting in acquired goodwill of $64.8 million, none of which is tax deductible.
• $44.0 million — x deductible. Of the acquired goodwill, $44.0 million is in the Materials segment and $20.8 m
• $20.8 million — million is in the Materials segment and $20.8 million is in the Construction segment. The fac
• $38.1 million — e most significant assets acquired were $38.1 million of property and equipment and $18.2 mil
• $18.2 million — 1 million of property and equipment and $18.2 million of customer relationships. Pro Forma F
• $2.3 million — s ended September 30, 2024, we incurred $2.3 million of acquisition and integration expenses
• $22.0 million — nted in the table below. We recorded a $22.0 million provisional estimate related to tax mak
• $7.1 m — ke-whole obligation. Our obligation was $7.1 million, which was paid in June 2024. Du

Filing Documents

• gva-20240930.htm (10-Q) — 1574KB
• gva-20240930xexx311.htm (EX-31.1) — 10KB
• gva-20240930xexx312.htm (EX-31.2) — 10KB
• gva-20240930xexx32.htm (EX-32) — 7KB
• gva-20240930xexx95.htm (EX-95) — 346KB
• gva-20240930_g1.jpg (GRAPHIC) — 10KB
• 0000861459-24-000045.txt ( ) — 9117KB
• gva-20240930.xsd (EX-101.SCH) — 60KB
• gva-20240930_cal.xml (EX-101.CAL) — 95KB
• gva-20240930_def.xml (EX-101.DEF) — 323KB
• gva-20240930_lab.xml (EX-101.LAB) — 711KB
• gva-20240930_pre.xml (EX-101.PRE) — 537KB
• gva-20240930_htm.xml (XML) — 1291KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 Condensed Consolidated Statements of Operations for the Three and Ni ne Months Ended September 30, 2024 and 2023 Condensed Consolidated Statements of Comprehensive Income for the Three and N ine Months Ended September 30, 2024 and 2023 Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended Septem b er 30, 2024 and 2023 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended Septem ber 30, 2024 and 2023 Notes to the Condensed Consolidated Financial Statements Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk Item 4.

Controls and Procedures

Controls and Procedures

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings Item 1A.

Risk Factors

Risk Factors Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

SIGNATURES

SIGNATURES EXHIBIT 31.1 EXHIBIT 31.2 EXHIBIT 32 EXHIBIT 95 EXHIBIT 101.INS EXHIBIT 101.SCH EXHIBIT 101.CAL EXHIBIT 101.DEF EXHIBIT 101.LAB EXHIBIT 101.PRE EXHIBIT 104 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS GRANITE CONSTRUCTION INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited - in thousands, except share and per share data) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents ($ 149,068 and $ 120,224 related to consolidated construction joint ventures ("CCJVs")) $ 462,286 $ 417,663 Short-term marketable securities 10,147 35,863 Receivables, net ($ 50,372 and $ 62,040 related to CCJVs) 733,018 598,705 Contract assets ($ 106,320 and $ 68,520 related to CCJVs) 321,653 262,987 Inventories 107,973 103,898 Equity in construction joint ventures 144,097 171,233 Other current assets ($ 5,034 and $ 5,590 related to CCJVs) 34,928 53,102 Total current assets 1,814,102 1,643,451 Property and equipment, net ($ 7,266 and $ 7,557 related to CCJVs) 719,678 662,864 Investments in affiliates 94,921 92,910 Goodwill 211,624 155,004 Intangible assets 131,579 117,322 Right of use assets 86,299 78,176 Deferred income taxes, net 4,990 8,179 Other noncurrent assets 67,732 55,634 Total assets $ 3,130,925 $ 2,813,540 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 1,099 $ 39,932 Accounts payable ($ 83,515 and $ 62,755 related to CCJVs) 509,976 408,363 Contract liabilities ($ 58,878 and $ 50,929 related to CCJVs) 292,641 243,848 Accrued expenses and other current liabilities ($ 5,033 and $ 5,426 related to CCJVs) 361,110 337,740 Total current liabilities 1,164,826 1,029,883 Long-term debt 737,458 614,781 Long-term lease liabilities 70,981 63,548 Deferred income taxes, net 3,420 3,708 Other long-term liabilities 84,561 74,654 Commitments and contingencies (see Note 17) Equity: Preferred stock, $ 0.01 par value, authorized 3,000,000 shares, none outstanding — — Common stock, $ 0.01 par value, authorized 150,000,000 shares; issued and outstanding: 43,704,841 shares as of September 30, 2024 and 43,944,118 shares as of December 31, 2023 437 43

View Full Filing

View this 10-Q filing on SEC EDGAR