Granite reports Q4 and fiscal 2011 results
Granite Construction Inc. has reported a net income of $51 million for the full year 2011, compared to a net loss of $59 million the prior year. Diluted earnings per share (EPS) for the year was $1.31 compared to a loss per share of $(1.56) in 2010.
For the fourth quarter of 2011, Granite reported a net income of $19 million, compared to a net loss of $50 million for the fourth quarter of 2010. Diluted EPS for the quarter ended Dec. 31, 2011, was $0.48 compared to a loss per share of $(1.32) in the prior year period. Included in the fourth quarter of 2010 were restructuring charges of $107 million associated with the company’s Enterprise Improvement Plan.
“Our solid performance in 2011 is the result of our continued successful project execution, the tremendous efforts of our people to improve efficiencies throughout the company and the significant reductions we have made to our cost structure,” said James H. Roberts, Granite president and chief executive officer, in a press release announcing the results.
Fiscal 2011 Highlights:
- Revenue totaled $2.0 billion compared with $1.8 billion in 2010, driven by increases in both Construction and Large Project Construction revenue.
- Gross profit margin was 12 percent compared with 10 percent in 2010.
- SG&A expenses decreased $29 million to $162 million primarily due to a workforce reduction in 2010 and restructuring of administrative services.
- Operating income was $99 million in 2011 compared with an operating loss of $109 million in 2010. Fiscal 2010 includes restructuring charges of approximately $109 million.
- Total other (expense) income decreased $13 million from 2010 due primarily to previously deferred income and impairment charges on other investments.
- Net income attributable to non-controlling interests was $15 million compared with a net loss attributable to non-controlling interests of $4 million in 2010.
- Total contract backlog at Dec. 31, 2011, was $2.0 billion compared with $1.9 billion a year ago.
- Construction revenue increased 11 percent to $1.0 billion driven by a higher volume of work and mild weather in the fourth quarter.
- Gross profit margin was 12 percent compared with 10 percent a year ago reflecting successful execution on projects and improved cost management.
Large Project Construction
- Large Project Construction revenue increased 24 percent to $725 million aided by the progress on several large projects.
- Gross profit margin was 14 percent compared with 12 percent in 2010 reflecting an increase in the volume of projects that reached the profit recognition threshold during the year.
- Construction Materials revenue was $221 million compared with $222 million last year.
- Gross profit on the sale of construction materials was 8 percent compared with 5 percent in 2010 driven by production efficiencies.
Fourth Quarter 2011 Highlights
- Revenue totaled $540 million compared with $417 million in 2010, driven by increases in both Construction and Large Project Construction revenue.
- Gross profit margin was 15 percent compared with 11 percent in 2010.
- Selling, general and administrative expenses for the fourth quarter increased $3 million to $43 million due to higher incentive compensation related to higher earnings.
- Operating income for the quarter was $40 million compared with an operating loss of $99 million in the prior year. The fourth quarter 2010 includes restructuring charges of $107 million related to workforce reductions as well as real estate and fixed asset impairment charges.
- Net income attributable to non-controlling interests was $6 million compared with net loss attributable to non-controlling interest of $15 million in 2010. The results for 2010 include $20 million associated with impairment charges related to the implementation of the company’s Enterprise Improvement Plan.
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