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Dec 31, 2019
Granite Q4 2019 Earnings Report
Granite reported preliminary select unaudited financial information for fiscal year 2019.
Key Takeaways
Granite ended the year with cash and marketable securities of $295.1 million. The company's CAP is expected to total $4.4 billion. An investigation of prior-period reporting for the Heavy Civil Operating Group is underway, delaying the Form 10-K filing.
Year-end cash and marketable securities balance totaled $295 million.
Committed and Awarded Projects (CAP) ended the year at $4.4 billion.
Audit/Compliance Committee investigation of prior-period reporting for the Heavy Civil Operating Group is in progress.
Form 10-K filing is delayed.
Granite
Granite
Forward Guidance
The Company’s guidance for 2020 includes mid-single digit consolidated revenue growth and an Adjusted EBITDA margin of 6.0 percent to 8.0 percent.
Positive Outlook
- Mid-single digit consolidated revenue growth
- Adjusted EBITDA margin of 6.0 percent to 8.0 percent
- Granite’s value proposition has not changed
- Strategy continues to position the company well to deliver in 2020 and beyond
- Vertically integrated businesses performed at very high levels in 2019
Challenges Ahead
- No contribution to adjusted EBITDA margin from the Heavy Civil Operating Group portfolio of projects
- Selling, general & administrative expenses as a percentage of revenue of 9 percent
- Capital expenditures between $70 million and $80 million
- Depreciation and amortization expense between $110 million and $130 million
- Effective tax rate of low-to-mid 20 percent range