Granite(US:GVA)2024-08-01 21:05Financial Performance - Total revenue for Q2 2024 reached $1,082,486,000, a 20.4% increase from $898,552,000 in Q2 2023[81] - Gross profit for Q2 2024 was $164,711,000, compared to $103,086,000 in Q2 2023, reflecting a significant improvement[81] - Total revenue for the three months ended June 30, 2024, was $5,576,219, a 1.4% increase from $5,499,129 in the previous quarter[87] - Public sector revenue accounted for 77.9% of total revenue, while private sector revenue made up 22.1% as of June 30, 2024[87] - Gross profit for the three months ended June 30, 2024, was $164,711, representing 15.2% of total revenue, up from 11.5% in the same period of 2023[89] - Construction segment gross profit increased by $56.2 million, or 71.0%, compared to the same period in 2023, primarily due to higher revenue[89] Revenue Sources - Construction revenue for Q2 2024 increased by $168.5 million, or 22.5%, driven by operations in California, Nevada, and Alaska[84] - Materials revenue for Q2 2024 rose by $15.4 million, or 10.3%, primarily due to revenue increases from newly acquired businesses[85] - Public work projects account for approximately 80% of the company's portfolio, heavily influenced by federal, state, and local funding levels[76] Acquisitions and Projects - The company completed two acquisitions in 2023, including Coast Mountain Resources and Lehman-Roberts Company, which are now contributing to revenue[79] - The company plans to acquire Dickerson & Bowen, Inc., expected to close in Q3 2024, which will enhance its aggregates and asphalt capabilities[80] - Committed and Awarded Projects (CAP) balance stood at $5.6 billion at the end of Q2 2024, supported by a positive public funding environment[78] - The Infrastructure Investment and Jobs Act (IIJA) has provided $550 billion in incremental funding over five years, enhancing project visibility for state and local governments[76] Cost Management - The company has implemented proactive measures to mitigate the impacts of inflation and supply chain constraints on its operations[78] - Total selling, general, and administrative expenses for the three months ended June 30, 2024, were $70,052, which is 6.5% of revenue, down from 7.2% in the previous year[91] - Other costs, net for the three months ended June 30, 2024, decreased by $3.4 million compared to the prior year, primarily due to a non-recurring litigation charge[94] - Total other expense, net decreased by $17.4 million for the three months ended June 30, 2024, mainly due to lower debt extinguishment costs[95] Tax and Compliance - The provision for income taxes for the three months ended June 30, 2024, was $20,693, with an effective tax rate of 34.7%[96] - The company maintained compliance with financial covenants in the Credit Agreement as of June 30, 2024[108] Cash Flow and Capital Expenditures - Cash provided by operating activities for the six months ended June 30, 2024, was $22.1 million, representing a $141.0 million increase compared to the same period in 2023[102] - Cash used in investing activities decreased by $14.3 million to $50.1 million for the six months ended June 30, 2024, compared to the same period in 2023[104] - Cash used in financing activities increased by $126.7 million to $22.9 million for the six months ended June 30, 2024, primarily due to a decrease in proceeds from debt issuances[105] - Capital expenditures for the six months ended June 30, 2024, were $66.9 million, a decrease from $79.7 million in the same period of 2023, with anticipated capital expenditures for 2024 projected to be between $130 million and $150 million[101] - Significant additions to capital assets during the three months included $183 million for highway projects in California and $114 million for a bridge project in Michigan[88] Shareholder Returns - The company repurchased 225,000 shares under the $300 million share repurchase program, with $218.2 million remaining available as of June 30, 2024[109] Assets and Liabilities - As of June 30, 2024, total cash, cash equivalents, and marketable securities amounted to $377.2 million, down from $453.5 million as of December 31, 2023[100] - Non-controlling partners' share of capital assets increased to $351.6 million as of June 30, 2024, from $219.4 million in the previous quarter[88] - The amount attributable to non-controlling interests decreased by $8.8 million and $13.1 million for the three and six months ended June 30, 2024, respectively, compared to the prior year, primarily due to decreased losses from a consolidated construction joint venture[97] - As of June 30, 2024, the total unused availability under the Credit Agreement was $333.4 million[99] - The company had $29.2 million of contract retention receivables from Brightline, representing 9.4% of total contract assets as of June 30, 2024[99]