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Dec 31, 2021
Granite Q4 2021 Earnings Report
Reported a net loss due to challenges in the Old Risk Portfolio and inclement weather, while making progress on strategic initiatives.
Key Takeaways
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.
Granite
Granite
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%.
Positive Outlook
- 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%.
Challenges Ahead
- 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