Granite Construction Incorporated · NYSE:GVA
Granite Construction — Q3 2022 Earnings Presentation
17 slides from Granite Construction's earnings presentation, November 2022
Slide 1: Granite Construction Q3 2022 Earnings Presentation
Granite Construction Q3 2022 Earnings Presentation © 2022 Granite Construction. All Rights Reserved.
Slide 2: Safe Harbor
Safe Harbor Any statements contained in this presentation made. These forward-looking statements are and uncertainties include, but are not limited to, that are not based on historical facts, including estimates reflecting the best judgment of senior those described in greater detail in our filings
Slide 3: Construction Segment Overview
Construction Segment Overview • Construction segment includes the Water Resources and Mineral Services divisions • Executing the plan - Focus on our home markets and strengthening vertical integration • Funding levels are high and markets have been resilient • Winding down ORP © 2022 Granite Constru
Slide 4: Central Group, Texas Region Transformation – Building a Home Market
Central Group, Texas Region Transformation – Building a Home Market • Three recent highway project wins in Southwest Houston totaling ~$145 million o Growth market with healthy funding levels o Resilient pipeline of job opportunities • Growing Houston into a home market o Targeted bidding strategy o
Slide 5: Reshaping the Project Portfolio, Q3 CAP at $4.1B
Reshaping the Project Portfolio, Q3 CAP at $4.1B Diverse Geographically Balanced Procurement Type Operating Groups 3% 31% 20% Q3 44% 26% Q3 2020 2020 24% 33% 19% Bid Build Best Value California Mountain 1% Design Build Other Old Risk Portfolio Central 5% 35% 37% Q3 Q3 51% 43% 2022 2022 4% 24% *Best
Slide 6: Materials Segment Overview
Materials Segment Overview • Increased aggregate volumes across all groups • Asphalt volumes declined in California partially offset by Mountain and Central • Margin impacted by decreased asphalt volumes and inflation offset by energy surcharges Q3’22 Revenue Q3’22 Revenue by Product by Group 17% 7%
Slide 7: Q3 2022 Review
Q3 2022 Review © 2022 Granite Construction. All Rights Reserved.
Slide 8: Q3'2022 Revenue and Gross Profit
Q3’2022 Revenue and Gross Profit Materials Revenue Gross Profit • Revenue growth led by aggregate sales volume and price increases • GP relatively flat to the prior year and increased GPM from the second quarter driven by energy surcharges $1,062 $1,010 ORP $138 • Central Group transformation $162 $
Slide 9: Q3'22 Financial Performance
Q3’22 Financial Performance Key Non-GAAP 1 Metrics Q3’21 Q3’22 Adjusted EBITDA $81.0 $96.6 Adjusted EBITDA Margin 7.6% 9.6% Adjusted Net Income $43.2 $62.7 Adjusted Diluted EPS $0.93 $1.41 $ in millions except per share 1See appendix for a presentation of the most directly comparable GAAP measure an
Slide 10: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Operating Cash Flow Liquidity Total Debt $703 $584 $340 $228 $288 $267 $60 $475 $317 ($15) YTD 2021 YTD 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Revolver Availability Cash and Marketable Securities $ in millions © 2022 Granite Construction. All Rights Reserved. 10
Slide 11: 2022 Guidance Update
Concluding Remarks 2022 Guidance Update • Revenue range between $3.2 billion and $3.3 billion • SG&A % of revenue unchanged at 8% to 8.5% • Adjusted effective tax rate in low to mid 20's • Adjusted EBITDA margin raised to a range of 6% to 7% • Capital Expenditures between $120 to $130 million © 2022
Slide 12: Concluding Remarks
Concluding Remarks Kyle Larkin, President & Chief Executive Officer © 2022 Granite Construction. All Rights Reserved.
Slide 13: Concluding Remarks
Concluding Remarks Concluding Remarks • ORP burn is at its tail end with focus shifting towards claim resolution • Gross margin excluding ORP continued to improve in Q3 • Strong aggregate volumes and asphalt backlog • Robust market environment and CAP and improvement expected from the infrastructure
Slide 14: Q&A
Q&A © 2022 Granite Construction. All Rights Reserved.
Slide 15: Appendix
Appendix The tables below contain financial information • Other costs which include a legal settlement Company to calculate its non-GAAP financial calculated other than in accordance with U.S. charge, legal and accounting investigation fees, an measures may differ significantly from methods used gen
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation © 2022 Granite Construction. All Rights Reserved. 16
Slide 17: Adjusted NI Reconciliation
Adjusted NI Reconciliation © 2022 Granite Construction. All Rights Reserved. 17