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EX - 99.1 2 ex_203054.htm EXHIBIT 99.1 Third Quarter Year - To - Date Results Exhibit 99.1 Granite Reports Third Quarter 2020 Results Revenue of $ 2.6 billion , up 2.2 % year - over - year Gross profit of $ 238.1 million , up 39.7 % year - over - year Strong core operations results dampened by Heavy Civil Operating Group performance Cash and marketable securities increased $ 161.1 million year - over - year Operating cash flow of $ 138.7 million , highest since 2006 WATSONVILLE , Calif . ( February 25 , 2021 ) - Granite Construction Incorporated ( NYSE : GVA ) today reported a net loss of ( $ 153.1 ) million and ( $ 3.36 ) per diluted share for the nine months ended September 30 , 2020 , compared to a net loss of ( $ 40.8 ) million and ( $ 0.87 ) per diluted share year - over - year . The net loss for the nine months ended September 30 , 2020 included $ 194.4 million of transaction costs ( 2 ) , amortization of debt discount , non - recurring legal and accounting investigation costs , and non - cash impairment charges , after - taxes , compared to $ 26.1 million year- over - year . Excluding the impact of these expenses and charges , adjusted net income ( 1 ) for the nine months ended September 30 , 2020 was $ 41.3 million and $ 0.89 per diluted share compared to an adjusted net loss of ( $ 14.7 ) million and ( $ 0.31 ) per diluted share year - over - year . Prior period financial information included herein reflects the impact of the previously disclosed restatement of the first three quarters in the year ended December 31 , 2019 . For the nine months ended September 30 , 2020 , our strong vertically - integrated business results continued and we reduced project write downs within the Heavy Civil Operating Group . Revenue increased $ 56.9 million to $ 2.6 billion year - over - year , and gross profit margin increased to 9.1 % , compared to 6.7 % year - over - year . For the first nine months of 2020 , SG & A expenses totaled $ 252.6 million , up $ 28.0 million year - over- year from $ 224.6 million . The 2020 increase is attributable to non - recurring legal and accounting costs of $ 28.4 million related to the Audit / Compliance Committee investigation . Excluding non - recurring legal and accounting costs , non - cash impairment charges , and transaction costs , adjusted EBITDA ( 1 ) was $ 126.7 million for the nine months ended September 30 , 2020 , compared to $ 63.3 million year - over - year . Adjusted EBITDA margin for 2020 and 2019 was 4.8 % and 2.5 % , respectively . As previously reported in our Q3 2020 Business Update , the Company ended the third quarter of 2020 with Committed and Awarded Projects ( " CAP " ) ( 3 ) of $ 4.2 billion , up sequentially , which includes $ 1.4 billion of best - value procurement work . CAP balance decreased $ 0.5 billion year- over - year reflecting lower Heavy Civil Operating Group contract backlog . Cash and marketable securities totaled $ 393.7 million as of September 30 , 2020 , compared to $ 232.6 million as of September 30 , 2019 , reflecting Granite's disciplined cash management and the favorable settlement of several claims during 2020 . " We shortly expect to achieve another significant milestone as we become current with our SEC filings and compliant with NYSE listing requirements , " said Kyle Larkin , Granite President . " I am very proud of the teams that have worked long hours to make this happen . We still have work to do , as we have already announced we will be late with our 2020 Form 10 - K filing . Importantly , this should not adversely affect our listing status with the NYSE or other stakeholder relationships subject to reporting requirements . " " Despite the pandemic and its challenges , most of our businesses performed very well , all the while building quality work for our customers , " said Larkin . " Our vertically integrated businesses have delivered exceptional results despite the unprecedented environment . Further , the newly established leadership team in the Heavy Civil Operating Group continues to make solid progress working through their portfolio of projects while pursuing new opportunities that meet our updated risk criteria . These efforts , in addition to prudent cash management and the favorable settlement of several significant claims , culminated in the highest operating cash flow we have achieved since 2006. I am confident in Granite's outlook and look forward to sharing more with you when we finalize the review of our strategic plan . " ( 1 ) Adjusted net income ( loss ) , adjusted diluted income ( loss ) per share , earnings before interest , taxes , depreciation , and amortization ( " EBITDA ” ) , EBITDA margin , adjusted EBITDA , and adjusted EBITDA margin are non - GAAP measures . Please refer to the description and reconciliation of non - GAAP measures in the attached tables . ( 2 ) Transaction costs include acquisition , integration , acquired intangible amortization expenses , acquisition - related depreciation and synergy costs . ( 3 ) CAP is comprised of contract backlog ( unearned revenue and other awards ) , as well as awarded construction management / general contractor , construction management at - risk and progressive design build projects not yet included in contract backlog .