GRANITE © 2021 Granite Construction. All Rights Reserved. Granite Construction Q1 | FY 2021 Earnings Conference Call Safe Harbor 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, outlook, guidance, backlog, Committed and Awarded Projects (CAP), and results, constitute forward-looking statements within the meaning of the Private Secu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-12911 Granite Construction Incorporated (Exact name of registrant as specified in its charter) Delaware 77-0239383 (State or other jur ...

GRANITE® © 2021 Granite Construction. All Rights Reserved. Granite Construction Q4 | FY 2020 Earnings Conference Call Safe Harbor 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, outlook, guidance, backlog, Committed and Awarded Projects (CAP), and results, constitute forward-looking statements within the meaning of the Private Sec ...

Granite Construction Incorporated (NYSE:GVA) Q4 2020 Earnings Conference Call March 30, 2020 11:00 AM ET Company Participants Michael Barker - Controller & Vice President Kyle Larkin - President Lisa Curtis - Executive VP and Chief Financial Officer Conference Call Participants Michael Dudas - Vertical Research Partners Steven Ramsey - Thompson Research Group Jerry Revich - Goldman Sachs Brent Thielman - D. A. Davidson Operator Good morning. My name is Kate, and I will be your conference facilitator today. ...

Granite Construction, Inc. (NYSE:GVA) Q3 2020 Earnings Conference Call February 25, 2021 11:00 AM ET Company Participants Michael Barker - Vice President of Finance Claes Bjork - Chairman of the Board Kyle Larkin - President Lisa Curtis - Executive Vice President, Chief Financial Officer Conference Call Participants Michael Dudas - Vertical Research Partners Steve Ramsey - Thompson Research Adam Bubes - Goldman Sachs Eugene Gilligan - Inframation News Operator Good morning. My name is Anita, and I will be y ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 1-12911 GRANITE CONSTRUCTION INCORPORATED State of Incorporation: I.R.S. Employer Identification Number: Delaware 77-02 ...

Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 1-12911 GRANITE CONSTRUCTION INCORPORATED State of Incorporation: I.R.S. Employer Identification Number: Delaware 77-0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-12911 Granite Construction Incorporated (Exact name of registrant as specified in its charter) Delaware 77-0239383 (State or other jur ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (unaudited)](index=2&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Granite Construction Incorporated, reflecting a significant net loss for the nine months ended September 30, 2019, primarily due to downward revisions in project estimates [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2019, total assets slightly decreased to **$2.63 billion**, while total liabilities increased to **$1.37 billion**, leading to a decrease in total equity to **$1.26 billion** Condensed Consolidated Balance Sheet Highlights (in thousands) | | Sep 30, 2019 | Dec 31, 2018 | Sep 30, 2018 | | :--- | :--- | :--- | :--- | | **Total current assets** | $1,504,808 | $1,415,389 | $1,557,283 | | **Total assets** | $2,633,773 | $2,476,601 | $2,643,848 | | **Total current liabilities** | $855,841 | $677,842 | $847,505 | | **Total liabilities** | $1,370,507 | $1,078,967 | $1,237,449 | | **Total equity** | $1,263,266 | $1,397,634 | $1,406,399 | [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2019, revenue increased to **$1.09 billion**, but net income fell to **$20.5 million**, and the nine-month period reported a net loss of **$111.9 million** due to increased cost of revenue Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $1,088,110 | $1,055,591 | $2,497,451 | $2,426,089 | | **Gross profit** | $91,432 | $144,491 | $79,506 | $281,143 | | **Operating income (loss)** | $22,365 | $67,406 | $(146,379) | $48,842 | | **Net income (loss) attributable to Granite** | $20,488 | $55,672 | $(111,922) | $35,864 | | **Diluted EPS** | $0.43 | $1.17 | $(2.39) | $0.84 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for the nine months ended September 30, 2019, was **$26.5 million**, a significant decrease from the **$14.7 million** provided in the prior year, driven by net loss and working capital changes Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(26,498) | $14,743 | | **Net cash used in investing activities** | $(45,208) | $(81,313) | | **Net cash (used in) provided by financing activities** | $(16,592) | $68,717 | | **Net (decrease) increase in cash** | $(88,298) | $2,147 | [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, project profitability impacts from estimate revisions, joint venture financial information, and a new securities class action lawsuit - Revisions in estimates on certain projects resulted in a decrease to gross profit of **$264.1 million** for the nine months ended Sep 30, 2019, compared to a **$57.8 million** decrease in the prior-year period, primarily in the Transportation segment due to increased costs, schedule delays, and lower productivity[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - The company's share of net losses from unconsolidated construction joint ventures was **$173.0 million** for the nine months ended Sep 30, 2019, a substantial increase from a loss of **$16.3 million** in the same period of 2018, primarily due to differences in estimated revenue and costs compared to partners on four projects[69](index=69&type=chunk) - A putative securities class action lawsuit was filed on August 13, 2019, against the Company and its CEO and CFO, alleging false and misleading statements regarding the company's business, operations, and prospects between October 2018 and August 2019[93](index=93&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant decline in profitability for the first nine months of 2019 due to revisions on large legacy projects, strategic review of the Heavy Civil group, robust market demand, and efforts to manage liquidity [Current Economic Environment and Outlook](index=25&type=section&id=Current%20Economic%20Environment%20and%20Outlook) Management reports robust market demand and multi-year funding visibility for public infrastructure, while completing a strategic review of the Heavy Civil operating group to reduce risk and align its footprint - The company's Committed and Awarded Projects (CAP) totaled nearly **$4.6 billion** as of September 30, 2019, including **$3.6 billion** in contract backlog and an additional **$1.0 billion** of construction manager/general contractor projects[103](index=103&type=chunk) - The company has completed a strategic review of the Heavy Civil operating group, taking steps to reduce risk and exposure to large, complex projects by narrowing its footprint and aligning it with the company's vertically integrated model[107](index=107&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For the nine months ended Sep 30, 2019, total revenue increased to **$2.50 billion**, but gross profit plummeted to **$79.5 million**, resulting in an operating loss of **$146.4 million**, primarily due to negative revisions in the Transportation segment Gross Profit (Loss) by Segment - Nine Months Ended Sep 30 (in thousands) | Segment | 2019 | 2018 | | :--- | :--- | :--- | | **Transportation** | $(64,996) | $138,401 | | **Water** | $34,412 | $41,117 | | **Specialty** | $75,376 | $65,311 | | **Materials** | $34,714 | $36,314 | | **Total gross profit** | $79,506 | $281,143 | - Transportation segment gross profit decreased by **$203.4 million** year-over-year for the nine-month period, primarily due to negative revisions in estimates within the Heavy Civil operating group[129](index=129&type=chunk) - Total contract backlog stood at **$3.65 billion** at September 30, 2019, an increase from **$3.24 billion** at September 30, 2018, but a decrease from **$3.82 billion** at June 30, 2019[118](index=118&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity weakened with **$26.5 million** cash used in operating activities for the first nine months of 2019, and total cash decreased to **$232.6 million**, though management expects sufficient liquidity from existing cash and available borrowings - Net cash used in operating activities was **$26.5 million** for the nine months ended Sep 30, 2019, a **$41.2 million** decrease from the same period in 2018, driven by the net loss and changes in working capital[149](index=149&type=chunk) - As of September 30, 2019, the company had **$67.7 million** available for borrowing under its revolving credit facility[140](index=140&type=chunk) - During Q3 2019, the company repurchased approximately **100,000 shares** for **$2.9 million**, with **$187.1 million** remaining available under the share repurchase authorization as of September 30, 2019[157](index=157&type=chunk)[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant change in its exposure to market risks since December 31, 2018 - There has been no significant change in the company's exposure to market risks since December 31, 2018[160](index=160&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2019, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2019, the company's disclosure controls and procedures were effective[161](index=161&type=chunk) - No changes were made during the quarter ended September 30, 2019, that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[164](index=164&type=chunk) [PART II. OTHER INFORMATION](index=34&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, updated risk factors, equity security sales, and mine safety disclosures [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings information from Note 18, highlighting a putative securities class action lawsuit filed in August 2019 - This section refers to Note 18, which details a securities class action lawsuit filed on August 13, 2019, alleging false and misleading statements about the company's business and prospects[93](index=93&type=chunk)[165](index=165&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) The company highlights updated risk factors concerning potential adverse litigation outcomes and the impact of worse-than-anticipated results in its Heavy Civil operating group - A new risk factor highlights that the company's results of operations, cash flows, and liquidity could be materially impacted by underperformance in its Heavy Civil operating group, even after the strategic review and actions taken[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2019, the company repurchased approximately **100,000 shares** of common stock for **$2.9 million** as part of its publicly announced share repurchase program Share Repurchase Summary - Q3 2019 | Period | Total Shares Purchased | Avg. Price Paid | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | Jul 2019 | 951 | $43.35 | — | | Aug 2019 | 168 | $32.39 | 100,000 | | Sep 2019 | 356 | $32.82 | — | | **Total** | **1,475** | **$39.56** | **100,000** | - The company purchased approximately **100,000 shares** for **$2.9 million** during the third quarter of 2019 under its share repurchase program[169](index=169&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information regarding mine safety violations and other regulatory matters is included in Exhibit 95 of this quarterly report - Information concerning mine safety violations is included in Exhibit 95 to this Form 10-Q[170](index=170&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, mine safety disclosures, and interactive data files

Financial Data and Key Metrics Changes - Granite's consolidated third quarter 2019 revenues were $1.1 billion, up more than 3% year-over-year, while year-to-date revenues were $2.5 billion, also up modestly compared to last year [35] - Third quarter 2019 earnings per share were $0.43 compared to $1.17 last year, with a year-to-date loss of $2.39 per share compared to earnings of $0.84 per share in the prior year [36] - Third quarter 2019 gross profit was $91.4 million compared to $144.5 million last year, with year-to-date gross profit down from $281.1 million in 2018 to $79.5 million [36][37] Business Line Data and Key Metrics Changes - Transportation segment revenue was $598.6 million, down about 2% from $610.8 million in 2018, with year-to-date revenue down about 9% [39] - Water segment revenues increased to $135.9 million compared to $124.3 million in 2018, with year-to-date revenues up more than 50% from last year [41][42] - Specialty segment revenue grew nearly 18% year-over-year to $224.5 million in the third quarter, with year-to-date revenue up more than 17% from 2018 [43][44] - Materials segment revenue was $129.1 million, down slightly from last year, with year-to-date revenues down about 3% [45] Market Data and Key Metrics Changes - Granite's Committed and Awarded Projects (CAP) increased 44.5% to $4.7 billion, with a greater mix of smaller, best-value negotiated work [38][32] - The backlog composition is shifting to shorter duration lower value contracts due to a diversification and risk reduction strategy [33] Company Strategy and Development Direction - The company is focused on turning around the Heavy Civil operating group, which has faced challenges, particularly with large fixed price design build projects [15][21] - A strategic review has led to a narrowing of market focus and a decision to cease bidding on large design build jobs in markets lacking competitive advantages [22][24] - The company aims to align operational capabilities with strategic opportunities and has implemented risk and scope reduction parameters for the Heavy Civil group [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the Heavy Civil industry faces structural issues impacting project delivery and profitability [51] - The company anticipates improved profitability and cash flow for the foreseeable future, driven by strong core operational performance in healthy markets [14][30] - Preliminary expectations for 2020 include mid single-digit consolidated revenue growth and an adjusted EBITDA margin of 6.5% to 8.5% [49] Other Important Information - The company has been recognized as a great place to work for the second consecutive year, reflecting its commitment to employee engagement [10] - Safety performance has improved significantly, with year-to-date safety incident tracking at the lowest rate in the company's history [11][12] Q&A Session Summary Question: Can you elaborate on the third quarter charges taken in Heavy Civil? - Management indicated that the charges were a result of a strategic review and included a combination of legacy projects and new issues identified [58] Question: What is the preliminary guidance for 2020? - The guidance is conservative, focusing on stabilizing the Heavy Civil business without expecting it to contribute to the bottom line in 2020 [60][61] Question: How strong was the vertical business performance? - The vertical business showed strong operating performance, offsetting losses in the Heavy Civil segment, with a reported $69 million loss in that business [68][70] Question: What proportion of the Heavy Civil backlog is booked under new parameters? - Approximately $700 million of the backlog has been booked under new, lower-risk parameters since 2017 [119][121] Question: What is the cash that has yet to be collected from disputes? - Management indicated that the amount is significant, involving hundreds of millions, but specific figures were not disclosed [147]