Granite Q4, 2012 revenues up, net income down
Granite Construction‘s fourth-quarter 2012 and overall 2012 revenues at a glance, according to the company’s report released on Feb. 28:
- Revenues for the year increased 4 percent to $2.1 billion
- Net income of $45.3 million in 2012 compared with $51.2 million in 2011
- Large Project Construction gross margins improved to 17.2 percent
- Balance Sheet remains strong with $433.4 million in cash and marketable securities
- Total contract backlog at December 31, 2012 of $1.7 billion, which does not include approximately $1.0 billion related to Granite’s portions of the Tappan Zee Bridge project in New York and IH-35E project in Texas
- Acquisition of Kenny Construction Company completed on December 31, 2012
Granite Construction Inc. on Feb. 28 reported a net income of $45.3 million for 2012, compared to $51.2 million the prior year. Diluted earnings per share (EPS) for the year was $1.15 compared to $1.31 in 2011.
For the fourth quarter of 2012, Granite reported a net income of $18.0 million, compared to $18.8 million for the fourth quarter of 2011. Diluted EPS for the quarter ended December 31, 2012 was $0.46 compared to $0.48 in the prior year period.
“Our fourth quarter results highlight the strength of our Large Project portfolio as well as the challenging market conditions our Construction and Construction Materials businesses continued to face in the West,” said James H. Roberts, president and CEO of Granite Construction, in a press release. “We remain focused on our strategic growth plan and are pleased with the progress we have made to diversify our business portfolio, grow the Large Projects segment and optimize our overall asset base.”
Fiscal Year 2012 Highlights:
- Revenues for the year were $2.1 billion, compared with $2.0 billion recorded in 2011.
- Gross profit margin was 11.3 percent compared with 12.3 percent in 2011 due to lower gross profit in both the Construction and Construction Materials segments partially offset by an increase in margins in the Large Project segment.
- SG&A expenses for the year were $185.1 million, compared with $162.3 million last year. The increase reflects $5.4 million associated with large project bid costs, $4.4 million associated with the acquisition of Kenny Construction and $2.0 million related to earnings in the Company’s deferred compensation plan.
- Gain on sales of property and equipment was $27.4 million in 2012, compared with $15.8 million in 2011. The increase is associated with an $18.0 million gain on the sale of a quarry investment.
- Operating income was $80.8 million in 2012, compared with $99.3 million in 2011.
- Total other income (expense) for the year was $0.2 million, compared with $(9.8) million in 2011. Other income for 2012 included a $7.4 million gain related to the sale of gold, a by-product of aggregate production, partially offset by a $2.8 million non-cash impairment loss on an investment in a solar-related business.
- Net income attributable to non-controlling interests was $14.6 million, compared with $14.9 million the prior period.
- Total contract backlog at December 31, 2012, was $1.7 billion compared with $2.0 billion a year ago. 2012 backlog includes $357 million attributable to the Kenny acquisition and does not include Granite’s approximate $733 million portion of the Tappan Zee Bridge project in New York or the IH-35E highway reconstruction project in Texas of which Granite’s portion is nearly $297 million.
- Construction revenues for the year were $1.0 billion, in line with 2011.
- Gross profit margin was 7.9 percent compared with 11.9 percent a year ago reflecting challenging market conditions, as well as increased costs to complete certain projects due to lower productivity than anticipated.
Large Project Construction
- Large Project Construction revenue for the year increased 19 percent to $863.2 million due largely to the progress on projects awarded in late 2010 and early 2011.
- Gross profit margin was 17.2 percent compared with 14.4 percent in 2011 reflecting successful execution on several large projects across the country offset by a downward forecast adjustment on a project in Washington.
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