Lost Creek Dam Modifications Strawberry Valley, CA 2019 ANNUAL MEETING OF SHAREHOLDERS J UNE 6, 2019
Albany Park Stormwater Diversion Tunnel Chicago, IL A GENDA W ELCOME & I NTRODUCTIONS R EPORT OF THE S ECRETARY GRANITE IS P RESENTATION OF B ALLOT I TEMS AMERICA’S INFRASTRUCTURE E LECTION R ESULTS COMPANY™ CEO P RESENTATION 2018 ANNUAL REPORT & 2019 PROXY STATEMENT
Honolulu Authority for Rapid Transit (HART) Elevated Guideway and Stations Honolulu, HI President & Chief Executive Officer Jim Roberts
S AFE H ARBOR Any statements contained in this presentation that are not based on historical facts, including statements regarding future events, occurrences, circumstances, activities, performance, growth, demand, strategic plans, outcomes, guidance, backlog, Committed and Awarded Projects (CAP), and results, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are identified by words such as “future,” “outlook,” “assumes,” “believes,” “expects,” “estimates,” “anticipates,” “intends,” “plans,” “appears,” “may,” “will,” “should,” “could,” “would,” “continue,” and the negatives thereof or other comparable terminology or by the context in which they are made. These forward - looking statements are estimates reflecting the best judgment of senior management and reflect our current expectations regarding future events, occurrences, circumstances, activities, performance, growth, demand, strategic plans, outcomes, guidance, backlog, CAP, and results. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, those described in greater detail in our filings with the Securities and Exchange Commission, particularly those specifically described in our Annual Report on Form 10-K and quarterly reports on Form 10-Q. Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this presentation and, except as required by law; we undertake no obligation to revise or update any forward-looking statements for any reason.
Welcome, Molly!
G RANITE I S A MERICA ’ S I NFRASTRUCTURE C OMPANY TM Granite is in the business of delivering Infrastructure Solutions for public and private clients in the Americas Infrastructure Solutions are the consistent delivery of ideas, innovations, products and services to power today’s mobile society and improve the everyday life of our clients 6
“ Boldly contending for that which is right… CONSECUTIVE YEARS …and firmly Forbes rejecting that Most Trustworthy Companies America’s Best Mid -Size Employers which is wrong. ” CONSECUTIVE YEARS
SAFETY OSHA INC IDE NT R AT E 0.78 2019 YTD* .95 2.7 2.5 2.1 2.1 2.1 2018 1.60 GRANITE LEGACY 1.42* 1.21 1.11 1.18 1.0 0.78* 0.95 2018 & 2019 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 TARGET YTD * Including 2018 acquisitions of Layne Christensen Company and LiquiForce
S TRATEGIC P LAN F OCUS : 2023 Business Growth & Sustainability Increase the size, diversity, and profitability of our business through acquisition and organic growth GVA Excellence in Execution S TAKEHOLDER Consistently and safely provide infrastructure V ALUE solutions that exceed stakeholder expectations and create value for Granite C REATION Focus on our People Our employees pursue excellence, know what is expected of them, have proper resources, and are accountable for results
S USTAINABILITY SUSTAINABILITY PILLARS: Safety & Health • Sustainability is our strategic approach Community • to managing our business with the Our People • future in mind. Compliance & Ethics • Environment – Keep • 2018 Report available to download: Granite Green graniteconstruction.com/sustainability Sustainable • Solutions 2018 report just published; transition to annual reporting • Invested to add Sustainability Specialist to drive Company efforts • Operational Excellence • Strategic investment, end-market growth highlights growing Client Alignment • • opportunity, responsibility to build sustainable business for Innovation • Granite stakeholders Infrastructure Investment •
G RANITE I S A MERICA ’ S I NFRASTRUCTURE C OMPANY TM • Per Engineering News-Record, May 2019: • #1 Highways • #2 Sanitary Storm Sewers • #4 Domestic Heavy Contractors • #5 Mining; #5 Sewerage & Solid Waste • #6 Transportation Contractors; #6 Solar • #7 Bridges • #8 Transmission/Distribution 11
2018 S TRATEGIC H IGHLIGHTS • Completed acquisitions of Layne Christensen Company and LiquiForce, valued at more than $600 million • Re-segmentation aligns financial reporting with strategic end markets • Transportation • Water • Specialty • Materials • Defeat of California Proposition 6 • Welcomed transition of new senior leadership 12
2018 Financial Results Fresno Campus Parkway Merced, CA
A NNUAL R ESULTS R E V E N U E G R O S S P R O F I T $3.3B $389M $3.3 $389 $3.0 $2.5 $315 $301 12.0% 11.7% 10.5% 2016 2017 2018 2016 2017 2018 G R O S S P R O F I T M A R G I N $ revenue in billions, $ gross profit in millions 14
A NNUAL R ESULTS ADJUSTED * $ PER SHARE $ PER SHARE $0.96 $2.34 $2.34 2018* $1.71 Adjusted EPS up $1.42 $1.71 36.8% $1.42 $0.96 Adjusted EBITDA up 38.9% 2016 2017 2018 2016 2017 2018 $ per diluted share. * FY 2016 and FY 2017 GAAP results; FY 2018 non-GAAP (adjusted) results include acquisition-related expenses. Please refer to the description and reconciliation of non-GAAP measures, including net income, earnings per share, and EBITDA, available at investor.graniteconstruction.com. 15
C OMMITTED AND A WARDED P ROJECTS $4.4B TOTAL COMPANY CMGC SPECIALTY WATER TRANSPORTATION COMMITTED & AWARDED PROJECTS (CAP) AT DECEMBER 31, 2018 $4.4 $3.7 $0.7 $3.5 $0.5 $0.7 $2.9 $0.8 $0.3 $0.1 $0.4 $0.2 $0.2 $2.9 $2.8 $2.5 $2.3 2015 2016 2017 2018 * Committed and Awarded Projects includes contract backlog (unearned revenue and other awards) $ I N B I L L I O N S and certain alternative procurement projects.
L OOKING A HEAD IN 2019 1 Strong CAP, strong outlook 2 Broad-based demand Strategy driving results 3 17
L OOKING A HEAD B EYOND 2019 • Improving State, Local, Municipal funding • Broad, steady private-sector opportunity set • Federal: Foundational today, catalyst ahead (FY 2021+)
Q&A T HANK Y OU
Building 2019 ANNUAL MEETING Value OF SHAREHOLDERS Together J UNE 6, 2019 Investor Contact: Corporate Office: Lisa Curtis 585 West Beach St. Head of Investor Relations Watsonville, CA 95076 (281) 475-2632 (831) 724-1011 www.graniteconstruction.com lisa.curtis@gcinc.com
APPENDIX Non-GAAP Financial Information The presentation tables contain financial information calculated other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Specifically, management believes that non -GAAP financial measures such as EBITDA and EBITDA margin are useful in evaluating operating performance and are regularly used by securities analysts, institutional investors and other interested parties, and that such supplemental measures facilitate comparisons between companies that have different capital and financing structures and/or tax rates. We are also providing additional non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to Granite Construction Incorporated and adjusted diluted earnings per share to indicate the impact of non-recurring acquisition, integration, acquired intangible amortization expenses and synergy costs related to the acquisition of Layne Christensen Company and LiquiForce. Management believes that these additional non-GAAP financial measures facilitate comparisons between securities analysts, institutional investors and other interested parties. However, the reader is cautioned that any non-GAAP financial measures provided by the Company are provided in addition to, and not as alternatives for, the Company's reported results prepared in accordance with GAAP. Items that may have a significant impact on the Company's financial position, results of operations and cash flows must be considered when assessing the Company's actual financial condition and performance regardless of whether these items are included in non-GAAP financial measures. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non- GAAP financial measures provided by the Company may not be comparable to similar measures provided by other companies.
Recommend
More recommend
