Source: Granite Construction Incorporated Granite Construction © 2023 Granite Construction. All Rights Reserved. 2 "should," "could," "would," "guidance," "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, opportunities, targets, activities, performance, growth, d ...

• Materials revenue and gross profit increased YOY driven by higher asphalt and aggregates sales and improved aggregate sales volume • Record CAP of $5.4 billion, up $1.2 billion YOY and $334 million sequentially • Strong public market environment • Strong balance sheet and liquidity position • 2023 guidance revised with revenue between $3.35 billion and $3.45 billion and adjusted EBITDA margin between 7.5% and 8.5% CAP $5,438 MSee appendix for a presentation of the most directly comparable GAAP measure and ...

UNITED STATES Table of Contents SECURITIES AND EXCHANGE COMMISSION o 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 Washington, D.C. 20549 FORM 10-Q GRANITE CONSTRUCTION INCORPORATED x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 77-0239383 State of Incorporation: I.R.S. Employer Identification Number: For the quarterly period ...

Granite Construction Incorporated (NYSE:GVA) Q2 2023 Earnings Conference Call July 27, 2023 11:00 AM ET Company Participants Mike Barker - Vice President-Investor Relations Kyle Larkin - President & Chief Executive Officer Lisa Curtis - Executive Vice President & Chief Financial Officer Conference Call Participants Brent Thielman - D.A. Davidson Brian Russo - Sidoti Steven Ramsey - Thompson Research Group Michael Dudas - Vertical Research Operator Good morning. My name is Sarah, and I will be your conferenc ...

Granite Construction Incorporated (NYSE:GVA) Q1 2023 Earnings Conference Call May 2, 2023 11:00 AM ET Company Participants Mike Barker – Vice President-Investor Relations Kyle Larkin – President and Chief Executive Officer Conference Call Participants Steven Ramsey – Thompson Research Group Brent Thielman – D.A. Davidson Brian Russo – Sidoti Michael Dudas – Vertical Research Partners Jerry Revich – Goldman Sachs Operator Good morning. My name is Andrea and I will be your conference facilitator today. At thi ...

EXPLANATORY NOTE [Restatement and Recast Background](index=3&type=section&id=Restatement%20and%20Recast%20Background) Unaudited Q1-Q3 2022 financial information was restated for deferred tax errors and reclassified Water and Mineral Services businesses - Restatement of unaudited quarterly financial information for the first three quarters of 2022 was necessary to correct errors related to **deferred taxes** and **income tax expense** from the Inliner business sale and other immaterial errors[9](index=9&type=chunk) - Financial information for Q1 2022 includes adjustments to retrospectively reclassify **Water and Mineral Services businesses** from discontinued to continuing operations[10](index=10&type=chunk) PART I. FINANCIAL INFORMATION [Item 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section provides unaudited condensed consolidated financial statements, including balance sheets, income statements, and cash flow statements, with explanatory notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | March 31, 2023 | December 31, 2022 | | :--------------- | :------------- | :---------------- | | **Total assets** | $2,077,387 | $2,167,933 | | **Total liabilities** | $972,411 | $985,145 | | **Total equity** | $925,457 | $953,016 | - Total assets decreased by **$90.5 million** from December 31, 2022, to March 31, 2023[14](index=14&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated and Recast) | | :--------------- | :-------------------------------- | :------------------------------------------------------- | | **Total revenue** | $560,068 | $653,886 | | **Gross profit** | $32,359 | $60,092 | | **Operating loss** | $(43,249) | $(15,709) | | **Net loss attributable to Granite Construction Incorporated** | $(23,023) | $(26,733) | | **Basic net loss per share** | $(0.53) | $(0.58) | - Total revenue decreased by **$93.8 million (14.3%)** year-over-year (YoY)[16](index=16&type=chunk) - Gross profit decreased by **$27.7 million (46.1%)** YoY[16](index=16&type=chunk) - Operating loss widened by **$27.5 million** YoY[16](index=16&type=chunk) - Net loss attributable to Granite Construction Incorporated improved by **$3.7 million** YoY[16](index=16&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated) | | :--------------- | :-------------------------------- | :---------------------------------------------- | | **Net loss** | $(25,772) | $(25,095) | | **Other comprehensive income (loss), net of tax** | $(135) | $4,932 | | **Comprehensive loss attributable to Granite Construction Incorporated, net of tax** | $(23,158) | $(21,801) | - Other comprehensive income shifted from a gain of **$4.9 million** in Q1 2022 to a loss of **$0.1 million** in Q1 2023[19](index=19&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Condensed Consolidated Statements of Shareholders' Equity (in thousands) | (in thousands) | March 31, 2023 | December 31, 2022 | | :--------------- | :------------- | :---------------- | | **Total Granite Shareholders' Equity** | $925,457 | $953,016 | | **Non-controlling Interests** | $46,954 | $32,129 | | **Total Equity** | $972,411 | $985,145 | - Total equity decreased by **$12.7 million** from December 31, 2022, to March 31, 2023[22](index=22&type=chunk) - Common stock repurchases for employee tax withholding amounted to **$3.5 million** in Q1 2023, compared to **$20.2 million** in Q1 2022 (which included share repurchase program activity)[22](index=22&type=chunk)[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated) | | :--------------- | :-------------------------------- | :---------------------------------------------- | | **Net cash used in operating activities** | $(76,688) | $(50,180) | | **Net cash used in investing activities** | $(24,336) | $89,396 | | **Net cash provided by (used in) financing activities** | $6,784 | $(82,904) | | **Net decrease in cash, cash equivalents and restricted cash** | $(94,240) | $(43,688) | - Cash used in operating activities increased by **$26.5 million** YoY[26](index=26&type=chunk) - Investing activities shifted from providing **$89.4 million** cash in Q1 2022 to using **$24.3 million** in Q1 2023, primarily due to proceeds from the Inliner business sale in 2022[26](index=26&type=chunk) - Financing activities shifted from using **$82.9 million** cash in Q1 2022 to providing **$6.8 million** in Q1 2023, mainly due to decreased debt principal repayments and common stock repurchases[26](index=26&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. General](index=11&type=section&id=Note%201.%20General) - The financial statements are unaudited and prepared in accordance with **SEC rules**, condensing or omitting certain GAAP disclosures[30](index=30&type=chunk) - Operations are typically affected by **weather conditions** in Q1 and Q4, leading to variability in revenues and profitability, thus Q1 results are not indicative of the full year[31](index=31&type=chunk) - On April 24, 2023, the company acquired **Coast Mountain Resources (2020) Ltd.** for approximately **$27 million**, an acquisition not expected to materially impact results[32](index=32&type=chunk) [Note 2. Recently Issued and Adopted Accounting Pronouncements](index=11&type=section&id=Note%202.%20Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements) - No recently issued accounting pronouncements are expected to have a **material impact**, and no new pronouncements adopted in Q1 2023 had a material impact[33](index=33&type=chunk) [Note 3. Restatement and Recast](index=12&type=section&id=Note%203.%20Restatement%20and%20Recast) - Restatement of Q1-Q3 2022 financial information was due to errors in **deferred taxes** and **income tax expense** related to the Inliner sale, and other immaterial errors[36](index=36&type=chunk) - The **Water and Mineral Services (WMS) businesses**, previously classified as held for sale, were reclassified to continuing operations in Q1 2022, impacting the condensed consolidated statement of operations[37](index=37&type=chunk) Impact of Restatement and Recast on Q1 2022 Operations (in thousands) | Metric | As Previously Reported | Restatement Impacts | As Restated | Discontinued Operations Reclassification Impacts | As Restated and Recast | | :----- | :--------------------- | :------------------ | :---------- | :--------------------------------------------- | :--------------------- | | Total revenue | $547,586 | $1,893 | $549,479 | $104,407 | $653,886 | | Gross profit | $49,775 | $(4,126) | $45,649 | $14,443 | $60,092 | | Net loss | $(9,821) | $(15,274) | $(25,095) | $- | $(25,095) | | Basic loss per share | $(0.29) | $(0.29) | $(0.58) | $- | $(0.58) | [Note 4. Revisions in Estimates](index=15&type=section&id=Note%204.%20Revisions%20in%20Estimates) - Profit recognition on construction contracts is based on estimates, which can vary, and revisions are accounted for using the **cumulative catch-up method**[43](index=43&type=chunk)[44](index=44&type=chunk) Downward Revisions in Estimates (Q1 2023) | Metric | Three Months Ended March 31, 2023 | | :----- | :-------------------------------- | | Number of projects with downward estimate changes | 2 | | Range of reduction in gross profit from each project, net | $6.2 - $11.4 million | | Decrease to project profitability, net | $17.6 million | | Decrease to net income/increase to net loss attributable to Granite Construction Incorporated | $7.5 million | | Decrease to net income/increase to net loss per diluted share | $0.17 | - Decreases in Q1 2023 were due to **additional costs** from changes in project duration, increased labor and materials costs, lower productivity, and unfavorable weather[46](index=46&type=chunk) [Note 5. Disaggregation of Revenue](index=16&type=section&id=Note%205.%20Disaggregation%20of%20Revenue) Disaggregated Revenue by Operating Group (in thousands) | Operating Group | Q1 2023 Construction | Q1 2023 Materials | Q1 2023 Total | Q1 2022 Construction (As Restated and Recast) | Q1 2022 Materials (As Restated and Recast) | Q1 2022 Total (As Restated and Recast) | | :-------------- | :------------------- | :---------------- | :------------ | :-------------------------------------------- | :----------------------------------------- | :------------------------------------- | | California | $148,947 | $30,138 | $179,085 | $146,309 | $45,687 | $191,996 | | Central | $171,002 | $11,556 | $182,558 | $219,894 | $10,362 | $230,256 | | Mountain | $183,467 | $14,958 | $198,425 | $212,063 | $19,571 | $231,634 | | **Total** | **$503,416** | **$56,652** | **$560,068** | **$578,266** | **$75,620** | **$653,886** | - Total revenue decreased by **$93.8 million (14.3%)** YoY, with Construction revenue down **12.9%** and Materials revenue down **25.1%**[16](index=16&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) [Note 6. Unearned Revenue](index=16&type=section&id=Note%206.%20Unearned%20Revenue) Unearned Revenue (in thousands) | Operating Group | March 31, 2023 | December 31, 2022 | | :-------------- | :------------- | :---------------- | | California | $1,011,489 | $945,971 | | Central | $1,437,759 | $1,444,983 | | Mountain | $714,320 | $486,524 | | **Total** | **$3,163,568** | **$2,877,478** | - Total unearned revenue increased by **$286.1 million (9.9%)** from December 31, 2022, to March 31, 2023, with approximately **$2.1 billion** expected to be recognized within the next twelve months[50](index=50&type=chunk) [Note 7. Contract Assets and Liabilities](index=17&type=section&id=Note%207.%20Contract%20Assets%20and%20Liabilities) - Revenue recognized from changes in contract transaction price was **$44.2 million** in Q1 2023 and **$35.2 million** in Q1 2022[51](index=51&type=chunk) Contract Assets (in thousands) | Component | March 31, 2023 | December 31, 2022 | | :-------- | :------------- | :---------------- | | Costs in excess of billings and estimated earnings | $125,918 | $80,357 | | Contract retention | $162,228 | $161,559 | | **Total contract assets** | **$288,146** | **$241,916** | Contract Liabilities (in thousands) | Component | March 31, 2023 | December 31, 2022 | | :-------- | :------------- | :---------------- | | Billings in excess of costs and estimated earnings, net of retention | $141,702 | $152,294 | | Provisions for losses | $18,543 | $20,992 | | **Total contract liabilities** | **$160,245** | **$173,286** | [Note 8. Receivables, net](index=17&type=section&id=Note%208.%20Receivables,%20net) Receivables, net (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Contracts completed and in progress (Billed) | $190,635 | $220,809 | | Contracts completed and in progress (Unbilled) | $108,931 | $120,348 | | Materials sales | $31,955 | $52,182 | | Other | $66,807 | $71,790 | | Less: allowance for credit losses | $1,097 | $1,142 | | **Total net receivables** | **$397,231** | **$463,987** | - Total net receivables decreased by **$66.8 million (14.4%)** from December 31, 2022, to March 31, 2023[54](index=54&type=chunk) [Note 9. Fair Value Measurement](index=18&type=section&id=Note%209.%20Fair%20Value%20Measurement) Fair Value Measurement of Assets and Liabilities (March 31, 2023, in thousands) | Category | Level 1 | Level 2 | Level 3 | Total | | :------- | :------ | :------ | :------ | :---- | | Cash equivalents (Money market funds) | $42,821 | $— | $— | $42,821 | | Accrued and other current liabilities (Diesel collars) | $— | $934 | $— | $934 | | Accrued and other current liabilities (Commodity swaps) | $— | $138 | $— | $138 | - The company held commodity swaps for crude oil with a notional amount of **$14.0 million** as of March 31, 2023, all maturing by October 31, 2023[56](index=56&type=chunk) - Entered into diesel collar contracts in Q1 2023, resulting in an unrealized loss of **$0.9 million**, treated as mark-to-market derivatives[57](index=57&type=chunk) [Note 10. Construction Joint Ventures](index=19&type=section&id=Note%2010.%20Construction%20Joint%20Ventures) - At March 31, 2023, the company was engaged in **eleven active Consolidated Construction Joint Ventures (CCJVs)** with a combined total contract value of **$1.7 billion**, of which Granite's share was **$1.0 billion**[63](index=63&type=chunk) - Total revenue from CCJVs was **$61.3 million** in Q1 2023, down from **$104.3 million** in Q1 2022[63](index=63&type=chunk) - At March 31, 2023, the company was engaged in **seven active unconsolidated joint venture projects** with a combined total contract value of **$7.9 billion**, of which Granite's share was **$2.3 billion**[65](index=65&type=chunk) Granite's Interest in Unconsolidated Construction Joint Ventures (in thousands) | Metric | Q1 2023 | Q1 2022 | | :----- | :------ | :------ | | Revenue (Granite's interest) | $14,845 | $49,655 | | Cost of revenue (Granite's interest) | $13,967 | $53,269 | | Gross profit (loss) (Granite's interest) | $878 | $(3,614) | | Net income (loss) (Granite's interest) | $911 | $(3,627) | [Note 11. Investments in Affiliates](index=21&type=section&id=Note%2011.%20Investments%20in%20Affiliates) Investments in Affiliates (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Foreign | $61,919 | $58,579 | | Real estate | $8,022 | $8,517 | | Asphalt terminal | $13,394 | $13,629 | | **Total investments in affiliates** | **$83,335** | **$80,725** | - Total investments in affiliates increased by **$2.6 million (3.2%)** from December 31, 2022, to March 31, 2023[72](index=72&type=chunk) [Note 12. Property and Equipment, net](index=22&type=section&id=Note%2012.%20Property%20and%20Equipment,%20net) Property and Equipment, net (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Equipment and vehicles | $1,016,327 | $994,602 | | Quarry property | $226,682 | $219,843 | | Land and land improvements | $107,816 | $105,733 | | Buildings and leasehold improvements | $105,190 | $103,658 | | Office furniture and equipment | $83,860 | $82,465 | | **Property and equipment, net** | **$531,457** | **$509,210** | - Net property and equipment increased by **$22.2 million (4.4%)** from December 31, 2022, to March 31, 2023[75](index=75&type=chunk) [Note 13. Accrued Expenses and Other Current Liabilities](index=22&type=section&id=Note%2013.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued Expenses and Other Current Liabilities (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Accrued insurance | $84,156 | $78,427 | | Deficits in unconsolidated construction joint ventures | $14,496 | $13,989 | | Payroll and related employee benefits | $63,072 | $80,910 | | Performance guarantees | $58,190 | $64,703 | | Short-term lease liabilities | $17,552 | $18,662 | | Other | $29,075 | $31,778 | | **Total** | **$266,541** | **$288,469** | - Total accrued expenses and other current liabilities decreased by **$21.9 million (7.6%)** from December 31, 2022, to March 31, 2023[76](index=76&type=chunk) - The decrease in performance guarantees is due to receiving customer acceptance on **two unconsolidated construction joint ventures**[76](index=76&type=chunk) [Note 14. Long-Term Debt and Credit Arrangements](index=23&type=section&id=Note%2014.%20Long-Term%20Debt%20and%20Credit%20Arrangements) Long-Term Debt (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | 2.75% Convertible Notes | $230,000 | $230,000 | | Credit Agreement - revolver | $50,000 | $50,000 | | Other, net of debt issuance costs | $8,456 | $8,381 | | **Total debt** | **$288,456** | **$288,381** | | Less current maturities | $1,456 | $1,447 | | **Total long-term debt** | **$287,000** | **$286,934** | - As of March 31, 2023, unused availability under the Credit Agreement was **$269.5 million**, with **$50.0 million** drawn[79](index=79&type=chunk) - The company was in compliance with financial covenants: Consolidated Leverage Ratio of **1.4** (max 3.25) and Consolidated Interest Coverage Ratio of **15.7** (min 3.00)[80](index=80&type=chunk) [Note 15. Weighted Average Shares Outstanding and Net Loss Per Share](index=24&type=section&id=Note%2015.%20Weighted%20Average%20Shares%20Outstanding%20and%20Net%20Loss%20Per%20Share) Weighted Average Shares Outstanding and Net Loss Per Share (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated) | | :----- | :-------------------------------- | :---------------------------------------------- | | Net loss attributable to common shareholders | $(23,023) | $(26,733) | | Weighted average common shares outstanding, basic | 43,764 | 45,730 | | Weighted average common shares outstanding, diluted | 43,764 | 45,730 | | Net loss per share, basic | $(0.53) | $(0.58) | | Net loss per share, diluted | $(0.53) | $(0.58) | - Restricted Stock Units (RSUs) (**583,000 shares** in Q1 2023) and potential dilution from **2.75% Convertible Notes** (**7,309,000 shares**) were excluded from diluted EPS calculation due to the antidilutive effect from net losses[84](index=84&type=chunk) [Note 16. Income Taxes](index=24&type=section&id=Note%2016.%20Income%20Taxes) Provision for (Benefit from) Income Taxes (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated and Recast) | | :----- | :-------------------------------- | :------------------------------------------------------- | | Provision for (benefit from) income taxes | $(9,469) | $6,352 | | Effective tax rate | 26.9% | (33.9%) | - The effective tax rate for Q1 2023 was **26.9%**, compared to **(33.9%)** in Q1 2022, primarily due to non-deductible goodwill associated with the Inliner sale in Q1 2022[85](index=85&type=chunk) [Note 17. Contingencies - Legal Proceedings](index=25&type=section&id=Note%2017.%20Contingencies%20-%20Legal%20Proceedings) - Total liabilities recorded for legal proceedings as of March 31, 2023, and December 31, 2022, were **immaterial**[87](index=87&type=chunk) - The company's subsidiary, **Layne Christensen Company**, is involved in a lawsuit and arbitration related to allegedly defective work on the Salesforce Tower foundation, seeking damages up to approximately **$100 million**[91](index=91&type=chunk) - Layne intends to vigorously defend against the claims and prosecute counterclaims, not believing a material loss is probable, but acknowledging a possible loss up to **$100 million**[91](index=91&type=chunk) [Note 18. Reportable Segment Information](index=26&type=section&id=Note%2018.%20Reportable%20Segment%20Information) - Reportable segments are **Construction and Materials**, aligned with how the Chief Operating Decision Maker (CODM) reviews financial information[92](index=92&type=chunk) Segment Revenue and Gross Profit (in thousands) | Segment | Q1 2023 Revenue | Q1 2023 Gross Profit | Q1 2022 Revenue (As Restated and Recast) | Q1 2022 Gross Profit (As Restated and Recast) | | :------ | :-------------- | :------------------- | :--------------------------------------- | :-------------------------------------------- | | Construction | $503,416 | $36,705 | $578,266 | $58,479 | | Materials | $56,652 | $(4,346) | $75,620 | $1,613 | | **Total** | **$560,068** | **$32,359** | **$653,886** | **$60,092** | - Construction gross profit decreased by **$21.8 million (37.2%)** YoY, primarily due to increased negative net impact from revisions in estimates and higher depreciation[113](index=113&type=chunk) - Materials gross profit decreased by **$6.0 million** YoY, driven by lower sales volumes due to inclement weather[114](index=114&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operating results, economic drivers, and liquidity, including the impact of the IIJA and Salesforce Tower litigation - The company delivers infrastructure solutions primarily in the U.S., with public sector work accounting for approximately **65%** of revenue[96](index=96&type=chunk)[107](index=107&type=chunk) - The **$1.2 trillion Infrastructure Investment and Jobs Act (IIJA)** is expected to increase project lettings in 2023 and more significantly in 2024 and beyond, improving programming visibility for state and local governments[98](index=98&type=chunk) - Committed and Awarded Projects (CAP) stood strong at **$5.1 billion** at the end of Q1 2023, an increase of **$618.8 million** from December 31, 2022[101](index=101&type=chunk)[111](index=111&type=chunk) [Overview](index=27&type=section&id=Overview) - Granite is a diversified infrastructure company in the U.S., serving public and private clients with projects including roads, highways, mass transit, airports, bridges, and site preparation[96](index=96&type=chunk) - Business is driven by **U.S. economy health**, **public funding levels**, population growth, aging infrastructure needs, and commodity pricing[97](index=97&type=chunk) [Current Economic Environment and Outlook](index=27&type=section&id=Current%20Economic%20Environment%20and%20Outlook) - Public work funding, accounting for approximately **65%** of work, is supported by federal (**IIJA**) and state/local measures (e.g., California's SB-1)[98](index=98&type=chunk)[99](index=99&type=chunk) - The company is mitigating **inflation**, **supply chain**, and **labor constraints** through proactive measures like fixed forward purchase contracts and energy surcharges[100](index=100&type=chunk) - Committed and Awarded Projects (CAP) reached **$5.1 billion** at the end of Q1 2023, indicating strong future opportunities[101](index=101&type=chunk) [Subsequent Event](index=28&type=section&id=Subsequent%20Event) - On April 24, 2023, the company acquired **Coast Mountain Resources (2020) Ltd.**, a Canadian construction aggregate producer, for approximately **$27 million**, with no material impact expected on operations[102](index=102&type=chunk) [Litigation Matter](index=28&type=section&id=Litigation%20Matter) - **Layne Christensen Company**, a subsidiary, faces a lawsuit and arbitration seeking approximately **$100 million** for allegedly defective work on the Salesforce Tower foundation[103](index=103&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Financial Summary (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 (As Restated and Recast) | | :----- | :-------------------------------- | :------------------------------------------------------- | | Total revenue | $560,068 | $653,886 | | Gross profit | $32,359 | $60,092 | | Selling, general and administrative expenses | $73,122 | $70,120 | | Operating loss | $(43,249) | $(15,709) | | Net loss attributable to Granite Construction Incorporated | $(23,023) | $(26,733) | - Total revenue decreased by **$93.8 million (14.3%)** YoY, with Construction revenue down **12.9%** and Materials revenue down **25.1%**[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - Gross profit decreased by **$27.7 million (46.1%)** YoY, primarily due to increased negative net impact from revisions in estimates in the Central operating group and lower Materials sales volumes due to inclement weather[113](index=113&type=chunk)[114](index=114&type=chunk) - Selling, general and administrative expenses increased by **$3.0 million (4.3%)** YoY, driven by higher stock-based compensation and changes in deferred compensation plan liability, partially offset by the Inliner sale[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - The effective tax rate for Q1 2023 was **26.9%**, compared to **(33.9%)** in Q1 2022, mainly due to non-deductible goodwill from the Inliner sale[118](index=118&type=chunk) - Amount attributable to non-controlling interests increased by **$4.4 million** YoY, primarily due to the negative impact from revisions in estimates on one project[119](index=119&type=chunk) [Committed and Awarded Projects (CAP)](index=30&type=section&id=Committed%20and%20Awarded%20Projects) - CAP includes unearned revenue (future revenue on executed contracts) and other awards (CM/GC contracts, unexercised options/task orders)[109](index=109&type=chunk)[110](index=110&type=chunk) Committed and Awarded Projects (CAP) (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Unearned revenue | $3,163,568 | $2,877,478 | | Other awards | $1,940,385 | $1,607,661 | | **Total CAP** | **$5,103,953** | **$4,485,139** | - CAP increased by **$618.8 million (13.8%)** from December 31, 2022, to March 31, 2023, with significant additions from broadband infrastructure, Guam construction, and highway projects[111](index=111&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources are **cash**, **investments**, **available borrowing capacity**, and **cash from operations**[121](index=121&type=chunk)[123](index=123&type=chunk) Cash, Cash Equivalents and Marketable Securities (in thousands) | Category | March 31, 2023 | December 31, 2022 | | :------- | :------------- | :---------------- | | Cash and cash equivalents excluding CCJVs | $87,411 | $191,444 | | CCJV cash and cash equivalents | $112,340 | $102,547 | | Short-term and long-term marketable securities | $56,329 | $65,943 | | **Total cash, cash equivalents and marketable securities** | **$256,080** | **$359,934** | - Total cash, cash equivalents, and marketable securities decreased by **$103.9 million (28.9%)** from December 31, 2022, to March 31, 2023[126](index=126&type=chunk) - Capital expenditures for Q1 2023 were **$40.5 million**, up from **$31.3 million** in Q1 2022, primarily due to acquisitions of materials reserves[129](index=129&type=chunk) - Anticipated 2023 capital expenditures are **$100 million to $120 million**[129](index=129&type=chunk) - Cash used in operating activities increased by **$26.5 million** YoY, mainly due to timing of working capital receipts and payments[130](index=130&type=chunk) - Investing activities shifted from providing **$89.4 million** to using **$24.3 million** YoY, primarily due to the Inliner sale proceeds in 2022[132](index=132&type=chunk) - Financing activities shifted from using **$82.9 million** to providing **$6.8 million** YoY, driven by decreased debt repayments and stock repurchases[133](index=133&type=chunk)[134](index=134&type=chunk) - The company maintains bonding capacity for **$2.6 billion** of its **$5.1 billion** Committed and Awarded Projects (CAP), requiring satisfactory cash and working capital balances[137](index=137&type=chunk) - The company was in compliance with all financial covenants under its **Credit Agreement** as of March 31, 2023[140](index=140&type=chunk) - As of March 31, 2023, **$231.5 million** remained available under the **$300.0 million** share repurchase authorization[141](index=141&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no material changes in the company's market risk exposure since the last Annual Report - No **material change** in market risk exposure from what was previously disclosed in the Annual Report[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a material weakness, though financial statements are fairly presented, with remediation efforts focused on income tax controls - Disclosure controls and procedures were **not effective** as of March 31, 2023, due to a **material weakness** in internal control over financial reporting[145](index=145&type=chunk) - Despite the material weakness, management concluded that the financial statements in this Form 10-Q **fairly present** the company's financial position, results of operations, and cash flows[145](index=145&type=chunk) - Remediation plan includes enhancing **income tax controls** for significant transactions and adding reviews for quarterly effective tax rate calculations[146](index=146&type=chunk)[153](index=153&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates legal proceedings from Note 17, confirming no new material developments - The description of legal proceedings from **Note 17** of the financial statements is incorporated by reference[148](index=148&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the last Annual Report - No **material changes** in the risk factors previously disclosed in the Annual Report[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details Q1 2023 common stock repurchases for employee tax withholding and remaining share repurchase authorization Common Stock Repurchases (Q1 2023) | Period | Total number of shares purchased | Average price paid per share | Approximate dollar value of shares that may yet be purchased | | :----- | :------------------------------- | :--------------------------- | :--------------------------------------------------------- | | January 1, 2023 through January 31, 2023 | 85 | $35.20 | $231,535,405 | | February 1, 2023 through February 28, 2023 | 386 | $41.70 | $231,535,405 | | March 1, 2023 through March 31, 2023 | 86,789 | $40.38 | $231,535,405 | | **Total** | **87,260** | **$40.38** | **$231,535,405** | - Shares purchased were in connection with **employee tax withholding** for restricted stock units vested under equity incentive plans[150](index=150&type=chunk) - As of March 31, 2023, **$231.5 million** of the **$300.0 million** share repurchase authorization remained available[151](index=151&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures and regulatory matters are referenced in Exhibit 95 as required by the Dodd-Frank Act - Information concerning **mine safety violations** or other regulatory matters is included in **Exhibit 95**[154](index=154&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications, mine safety disclosures, and XBRL documents - The report includes various exhibits such as **certifications (31.1, 31.2, 32)**, **Mine Safety Disclosure (95)**, and **Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)**[155](index=155&type=chunk) SIGNATURES [Signature](index=38&type=section&id=Signature) The report is signed by Elizabeth L. Curtis, Executive Vice President and Chief Financial Officer, on May 2, 2023 - The report was signed by **Elizabeth L. Curtis**, Executive Vice President and Chief Financial Officer, on **May 2, 2023**[158](index=158&type=chunk)

Financial Performance - Total revenue was $560 million [22], with a negative adjusted EBITDA of $(9) million [22] resulting in an adjusted EBITDA margin of (1.6)% [22] - Adjusted net loss attributable to Granite Construction Incorporated was $(17.83) million [42], leading to an adjusted diluted loss per share of $(0.41) [34, 42] - Materials revenue was $57 million [22] CAP (Committed and Awarded Projects) - Total CAP reached a record of $5.1 billion [6, 44], up by $619 million sequentially, representing a 14% increase, and a 30% increase year-over-year [6] - California Group's CAP totaled $1.4 billion [14], a sequential increase of $364 million or 34%, and a year-over-year increase of 40% [14] - Mountain Group's CAP was $1.8 billion [29], up $89 million or 5% sequentially, and 22% year-over-year [29] - California Group's CAP was $1.9 billion [6], up $167 million or 10% sequentially, and 29% year-over-year [6] Segment Performance - Asphalt volumes decreased by 39% year-over-year [21] and aggregate volumes decreased by 21% year-over-year [21] in the materials segment due to inclement weather [21] Outlook - The company maintains its 2023 guidance with revenue expected to be between $3.4 billion and $3.6 billion [24], and an adjusted EBITDA margin between 7.5% and 9.0% [24, 36]

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, 2022 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) (State or other jurisdiction of incorpo ...

Granite Construction Incorporated (NYSE:GVA) Q4 2022 Earnings Conference Call February 16, 2023 11:00 AM ET Company Participants Mike Barker - VP, IR Kyle Larkin - President and CEO Lisa Curtis - EVP and CFO Conference Call Participants Steven Ramsey - Thompson Research Group Brent Thielman - D.A. Davidson Brian Russo - Sidoti Operator Good morning. My name is Dave, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite Construction Investor Relations ...

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 September 30, 2022 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 ...