NYSE$GVA

Granite Construction Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a net loss due to challenges in the Old Risk Portfolio and inclement weather, while making progress on strategic initiatives.

Granite Construction Incorporated reported a net loss for the fourth quarter of 2021, impacted by challenges in its Old Risk Portfolio and adverse weather conditions. However, the company highlighted progress in its strategic initiatives, including the planned divestiture of the Water and Minerals Services Group and a focus on civil construction and materials business.

  • Net loss of ($13.2) million, or ($0.28) per diluted share, compared to a net income of $8.0 million, or $0.17 per diluted share, in the same period last year.
  • Adjusted net income totaled $1.9 million, or $0.05 per diluted share compared to an adjusted net income of $19.5 million, or $0.42 per diluted share, in the same period last year.
  • Construction revenue decreased due to inclement weather and the transformation of the Central group portfolio.
  • Materials revenue decreased due to lower aggregate and asphalt volumes in the California group because of wet weather.

Headline financials

Total Revenue

$806M

Previous: $946M-14.8%
EPS (adj)

$0.05

Previous: $0.41-87.8%
Capital Expenditures

$21.8M

Previous: $18.4M+19.0%
Free Cash Flow

-$59.8M

Previous: $111M-153.7%
Net Income

-$13.2M

Previous: $8M-265.0%
Operating Income

$5.08M

Previous: $32M-84.1%
Gross Profit

$51.7M

Previous: $107M-51.6%
Cash & Equivalents

$396M

Previous: $425M-7.0%
Total Assets

$2.49B

Previous: $2.38B+4.8%
Stock-Based Comp

$1.23M

Previous: $1.17M+4.4%

Revenue & EPS history

Granite · Revenue · Quarterly

$806M

Q4 2021-14.8%vs Q4 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Granite · $1.12B total across 2 segments · Q3 2023

  • Construction
    $946M+13.3%
  • Materials
    $171M-2.2%

Forward guidance

Granite expects to grow revenue in the California and Mountain groups, but that growth will be offset by lower revenue in the Central group. The company anticipates growing CAP while strengthening its home markets in alignment with its new strategic plan and expects its profitability to increase with an adjusted EBITDA margin range from continuing operations of 6% to 8%.

Tailwinds

  • Expect to grow revenue in the California and Mountain groups.
  • Anticipate growing CAP.
  • Strengthening our home markets in alignment with our new strategic plan.
  • Expect our profitability to increase
  • Adjusted EBITDA margin range from continuing operations of 6% to 8%.

Headwinds

  • Lower revenue in the Central group
  • Transform that business and work through the ORP.
  • Still have work to do
  • Central group revenue is expected to decline
  • Burning through the ORP

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+0.8%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+3.1%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+25.9%

Q3 2023

Best reaction

-30.3%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.2%+15.6%+11.6%
Q4 2025-3.0%-3.4%-9.3%
Q3 2025-3.4%-0.3%+5.2%
Q1 2025-2.4%+1.1%+10.0%
Q4 2024+0.6%+1.2%-14.6%
Q3 2024+5.4%+11.3%+21.1%
Q2 2024+1.5%+0.7%+9.8%
Q1 2024+8.0%+8.2%+13.3%
Q4 2023-1.3%-0.3%+9.7%
Q3 2023+25.9%+33.9%+33.9%
Q2 2023-7.8%-4.2%-6.3%
Q1 2023-7.4%-6.4%-4.7%
Q4 2022+6.1%+3.1%-2.9%
Q3 2022+18.1%+22.5%+26.2%
Q2 2022-1.9%-0.6%+0.9%
Q1 2022-1.0%+4.3%+10.5%
Q4 2021-12.4%+0.5%-8.7%
Q3 2021-3.9%-5.0%+5.4%
Q2 2021-0.2%+1.8%+8.0%
Q1 2021-3.7%-7.8%-3.5%
Q4 2020+6.7%+5.9%+3.2%
Q3 2020-5.2%-0.6%+6.5%
Q2 2020-5.2%-0.6%+6.5%
Q1 2020-5.2%-0.6%+6.5%
Q4 2019-3.5%-13.9%-24.2%
Q3 2019-30.3%-34.4%-29.2%
Q2 2019-10.2%-12.9%-16.4%
Q1 2019+2.4%+4.6%-7.4%
Q4 2018+3.3%+3.9%-4.9%
Q3 2018+13.4%+12.7%+26.7%
Q2 2018-12.6%-16.6%-15.5%
Q1 2018+1.6%+1.6%+7.8%
Q4 2017+4.0%+3.2%+4.9%
Q3 2017+10.3%+8.6%+11.2%
Q2 2017+8.6%+8.4%+12.7%
Q1 2017-0.3%-1.1%-11.1%
Q4 2016+0.1%-1.2%-10.9%
Q3 2016+15.1%+8.8%+43.1%
Q2 2016-1.2%-1.3%-5.1%
Q1 2016-2.8%
Q4 2015+3.3%
Q3 2015+7.2%
Q2 2015-1.8%
Q1 2015+9.9%
Q4 2014-4.1%
Q3 2014-3.8%
Q2 2014+1.1%
Q1 2014-1.7%
Q4 2013+7.9%
Q3 2013-11.7%
Q2 2013+6.4%
Q1 2013+5.5%
Q4 2012-14.3%
Q3 2012-4.9%
Q2 2012-2.0%
Q1 2012-3.0%
Q4 2011+11.6%
Q3 2011+13.9%
Q4 2010-8.1%
Q2 2011-8.1%
Q1 2010+3.3%
Q1 2011-0.2%
Q4 2008+3.8%
Q3 2009+6.0%
Q3 2010+6.0%
Q2 2010+5.4%
Q2 2009+5.4%
Q4 2009+5.4%

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