ý
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
¨
|
Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
State
of Incorporation:
|
I.R.S.
Employer Identification Number:
|
Delaware
|
77-0239383
|
Large
accelerated filer
ý
|
Accelerated
filer
¨
|
Non-accelerated
filer
¨
|
Class
|
Outstanding
|
|
Common
Stock, $0.01 par value
|
41,836,755
shares
|
Item
1.
|
Granite
Construction Incorporated
(Unaudited
- in thousands, except share and per share data)
|
||||||||||
June
30,
2006
|
December
31,
2005
|
June
30,
2005
|
||||||||
Assets
|
||||||||||
Current
assets
|
||||||||||
Cash
and cash equivalents
|
$
|
304,976
|
$
|
199,881
|
$
|
116,988
|
||||
Short-term
marketable securities
|
74,775
|
68,540
|
60,751
|
|||||||
Accounts
receivable, net
|
530,882
|
476,453
|
498,892
|
|||||||
Costs
and estimated earnings in excess of billings
|
32,882
|
43,660
|
51,233
|
|||||||
Inventories
|
39,532
|
33,161
|
34,377
|
|||||||
Real
estate held for sale
|
42,572
|
46,889
|
42,950
|
|||||||
Deferred
income taxes
|
22,830
|
22,996
|
20,947
|
|||||||
Equity
in construction joint ventures
|
31,641
|
27,408
|
21,167
|
|||||||
Other
current assets
|
47,373
|
57,960
|
19,226
|
|||||||
Total
current assets
|
|
1,127,463
|
976,948
|
866,531
|
||||||
Property
and equipment, net
|
419,757
|
397,111
|
397,476
|
|||||||
Long-term
marketable securities
|
47,688
|
32,960
|
23,718
|
|||||||
Investments
in affiliates
|
16,076
|
15,855
|
10,844
|
|||||||
Other
assets
|
46,313
|
49,356
|
49,306
|
|||||||
Total
assets
|
$
|
1,657,297
|
$
|
1,472,230
|
$
|
1,347,875
|
||||
Liabilities
and Shareholders’ Equity
|
||||||||||
Current
liabilities
|
||||||||||
Current
maturities of long-term debt
|
$
|
29,424
|
$
|
26,888
|
$
|
22,639
|
||||
Accounts
payable
|
309,199
|
232,807
|
256,888
|
|||||||
Billings
in excess of costs and estimated earnings
|
278,499
|
208,883
|
148,161
|
|||||||
Accrued
expenses and other current liabilities
|
178,989
|
140,569
|
125,926
|
|||||||
Total
current liabilities
|
796,111
|
609,147
|
553,614
|
|||||||
Long-term
debt
|
105,757
|
124,415
|
130,427
|
|||||||
Other
long-term liabilities
|
53,885
|
46,556
|
43,044
|
|||||||
Deferred
income taxes
|
37,325
|
37,325
|
44,135
|
|||||||
Commitments
and contingencies
|
||||||||||
Minority
interest in consolidated subsidiaries
|
18,741
|
33,227
|
27,520
|
|||||||
Shareholders’
equity
|
||||||||||
Preferred
stock, $0.01 par value, authorized 3,000,000 shares, none
outstanding
|
-
|
-
|
-
|
|||||||
Common
stock, $0.01 par value, authorized 150,000,000 shares as of June
30, 2006
and 100,000,000 shares as of December 31, 2005 and June 30, 2005;
issued
and outstanding 41,836,889 shares as of June 30, 2006, 41,682,010
shares
as of December 31, 2005 and 41,714,138 as of June 30, 2005
|
418
|
417
|
417
|
|||||||
Additional
paid-in capital
|
70,636
|
80,619
|
79,603
|
|||||||
Retained
earnings
|
572,601
|
549,101
|
480,979
|
|||||||
Accumulated
other comprehensive income
|
1,823
|
1,602
|
1,516
|
|||||||
Unearned
compensation
|
-
|
(10,179
|
)
|
(13,380
|
)
|
|||||
Total
shareholders’ equity
|
645,478
|
621,560
|
549,135
|
|||||||
Total
liabilities and shareholders’ equity
|
$
|
1,657,297
|
$
|
1,472,230
|
$
|
1,347,875
|
Granite
Construction Incorporated
(Unaudited
- in thousands, except per share data)
|
|||||||||||||
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Revenue
|
|||||||||||||
Construction
|
$
|
703,486
|
$
|
592,128
|
$
|
1,137,824
|
$
|
966,841
|
|||||
Material
sales
|
108,551
|
84,576
|
170,181
|
130,797
|
|||||||||
Total
revenue
|
812,037
|
676,704
|
1,308,005
|
1,097,638
|
|||||||||
Cost
of revenue
|
|||||||||||||
Construction
|
638,253
|
534,431
|
1,042,213
|
888,812
|
|||||||||
Material
sales
|
80,674
|
65,566
|
132,447
|
105,179
|
|||||||||
Total
cost of revenue
|
718,927
|
599,997
|
1,174,660
|
993,991
|
|||||||||
Gross
profit
|
93,110
|
76,707
|
133,345
|
103,647
|
|||||||||
General
and administrative expenses
|
48,935
|
40,606
|
97,191
|
79,476
|
|||||||||
Provision
for legal judgment
|
-
|
9,300
|
-
|
9,300
|
|||||||||
Gain
on sales of property and equipment
|
4,049
|
2,189
|
8,287
|
2,215
|
|||||||||
Operating
income
|
48,224
|
28,990
|
44,441
|
17,086
|
|||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
4,944
|
1,968
|
9,677
|
4,127
|
|||||||||
Interest
expense
|
(1,391
|
)
|
(1,636
|
)
|
(2,786
|
)
|
(3,667
|
)
|
|||||
Equity
in income (loss) of affiliates
|
828
|
(17
|
)
|
751
|
(77
|
)
|
|||||||
Other,
net
|
3,314
|
(651
|
)
|
2,708
|
(724
|
)
|
|||||||
Total
other income (expense)
|
7,695
|
(336
|
)
|
10,350
|
(341
|
)
|
|||||||
Income
before provision for income taxes and minority
interest
|
55,919
|
28,654
|
54,791
|
16,745
|
|||||||||
Provision
for income taxes
|
17,045
|
8,220
|
16,272
|
4,528
|
|||||||||
Income
before minority interest
|
38,874
|
20,434
|
38,519
|
12,217
|
|||||||||
Minority
interest in consolidated subsidiaries
|
(5,585
|
)
|
(5,480
|
)
|
(6,652
|
)
|
(5,530
|
)
|
|||||
Net
income
|
$
|
33,289
|
$
|
14,954
|
$
|
31,867
|
$
|
6,687
|
|||||
Net
income per share
|
|||||||||||||
Basic
|
$
|
0.81
|
$
|
0.37
|
$
|
0.78
|
$
|
0.16
|
|||||
Diluted
|
$
|
0.80
|
$
|
0.36
|
$
|
0.77
|
$
|
0.16
|
|||||
Weighted
average shares of common stock
|
|||||||||||||
Basic
|
40,896
|
40,638
|
40,818
|
40,562
|
|||||||||
Diluted
|
41,466
|
41,212
|
41,378
|
41,118
|
|||||||||
Dividends
per share
|
$
|
0.10
|
$
|
0.10
|
$
|
0.20
|
$
|
0.20
|
Granite
Construction Incorporated
(Unaudited
- in thousands)
|
|||||||
Six
Months Ended June 30,
|
2006
|
2005
|
|||||
Operating
Activities
|
|||||||
Net income
|
$
|
31,867
|
$
|
6,687
|
|||
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation,
depletion and amortization
|
34,176
|
31,142
|
|||||
Gain
on sales of property and equipment
|
(8,287
|
)
|
(2,215
|
)
|
|||
Change
in deferred income taxes
|
-
|
80
|
|||||
Stock-based
compensation
|
3,819
|
2,867
|
|||||
Common
stock contributed to ESOP
|
1,995
|
1,994
|
|||||
Minority
interest in consolidated subsidiaries
|
6,652
|
5,530
|
|||||
Equity
in (income) loss of affiliates
|
(751
|
)
|
77
|
||||
Changes in assets and liabilities:
|
|||||||
Accounts
receivable
|
(55,150
|
)
|
(138,585
|
)
|
|||
Inventories
|
(6,371
|
)
|
(2,666
|
)
|
|||
Real
estate held for sale
|
71
|
(9,132
|
)
|
||||
Equity
in construction joint ventures
|
(4,233
|
)
|
(272
|
)
|
|||
Other
assets
|
11,279
|
25,133
|
|||||
Accounts
payable
|
76,392
|
65,106
|
|||||
Billings
in excess of costs and estimated earnings, net
|
80,394
|
6,911
|
|||||
Accrued
expenses and other liabilities
|
36,200
|
8,491
|
|||||
Net
cash provided by operating activities
|
208,053
|
1,148
|
|||||
Investing
Activities
|
|||||||
Purchases
of marketable securities
|
(59,782
|
)
|
(25,130
|
)
|
|||
Maturities
of marketable securities
|
41,015
|
56,414
|
|||||
Additions
to property and equipment
|
(68,419
|
)
|
(53,688
|
)
|
|||
Proceeds
from sales of property and equipment
|
14,245
|
3,706
|
|||||
Contributions
to affiliates
|
-
|
(196
|
)
|
||||
Issuance
of notes receivable
|
(500
|
)
|
-
|
||||
Collection
of notes receivable
|
2,912
|
-
|
|||||
Other
investing activities
|
(633
|
)
|
-
|
||||
Net
cash used in investing activities
|
(71,162
|
)
|
(18,894
|
)
|
|||
Financing
Activities
|
|||||||
Additions
to long-term debt
|
20,800
|
26,585
|
|||||
Repayments
of long-term debt
|
(25,901
|
)
|
(40,220
|
)
|
|||
Dividends
paid
|
(8,353
|
)
|
(8,333
|
)
|
|||
Repurchases
of common stock
|
(6,367
|
)
|
(4,702
|
)
|
|||
Contributions
from minority partners
|
5,650
|
804
|
|||||
Distributions
to minority partners
|
(18,374
|
)
|
(1,210
|
)
|
|||
Other
financing activities
|
749
|
183
|
|||||
Net
cash used in financing activities
|
(31,796
|
)
|
(26,893
|
)
|
|||
Increase
(decrease) in cash and cash equivalents
|
105,095
|
(44,639
|
)
|
||||
Cash
and cash equivalents at beginning of period
|
199,881
|
161,627
|
|||||
Cash
and cash equivalents at end of period
|
$
|
304,976
|
$
|
116,988
|
|||
Supplementary
Information
|
|||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
3,470
|
$
|
3,728
|
|||
Income
taxes
|
11,041
|
3,664
|
|||||
Non-cash
investing and financing activity:
|
|||||||
Restricted
stock issued for services
|
|
9,639
|
5,363
|
||||
Dividends
accrued but not paid
|
|
4,184
|
4,171
|
||||
Financed
acquisition of assets
|
2,500
|
2,337
|
|||||
Escrow
funds from sale of assets
|
-
|
2,500
|
|||||
Debt
repayments from sale of assets
|
13,521 | - |
1.
|
Basis
of Presentation:
|
2.
|
Recently
Issued Accounting Pronouncements
:
|
3.
|
Change
in Accounting Estimate:
|
Heavy
Construction Division Change in Accounting
Estimate
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||
(dollars
in millions)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Reduction
in gross profit
|
$
|
(34.7
|
)
|
$
|
(11.0
|
)
|
$
|
(51.0
|
)
|
$
|
(22.5
|
)
|
|
Increase
in gross profit
|
7.6
|
-
|
10.4
|
-
|
|||||||||
Net
reduction in gross profit
|
$
|
(27.1
|
)
|
$
|
(11.0
|
)
|
$
|
(40.6
|
)
|
$
|
(22.5
|
)
|
|
Number
of projects with significant downward estimate changes
|
8
|
5
|
14
|
8
|
|||||||||
Range
of reduction to gross profit from each project
|
$
|
1.0
- 8.1
|
$
|
1.0
- 3.0
|
$
|
1.1
- 9.1
|
$
|
1.2
- 6.8
|
|||||
Number
of projects with significant upward estimate changes
|
2
|
-
|
4
|
-
|
|||||||||
Range
of increase to gross profit from each project
|
$
|
2.2
- 2.5
|
$
|
-
|
$
|
1.0
- 2.5
|
$
|
-
|
4.
|
Inventories:
|
5.
|
Property
and Equipment, Net:
|
(in
thousands)
|
June
30,
2006
|
December
31,
2005
|
June
30,
2005
|
|||||||
Land
|
$
|
58,925
|
$
|
54,782
|
$
|
55,191
|
||||
Quarry
property
|
107,647
|
104,662
|
101,449
|
|||||||
Buildings
and leasehold improvements
|
69,168
|
77,788
|
76,692
|
|||||||
Equipment
and vehicles
|
783,527
|
746,014
|
739,978
|
|||||||
Office
furniture and equipment
|
22,288
|
21,047
|
18,780
|
|||||||
Property
and equipment
|
1,041,555
|
1,004,293
|
992,090
|
|||||||
Less:
accumulated depreciation, depletion and amortization
|
621,798
|
607,182
|
594,614
|
|||||||
Property
and equipment, net
|
$
|
419,757
|
$
|
397,111
|
$
|
397,476
|
6.
|
Intangible
Assets:
|
(in
thousands)
|
June
30,
2006
|
December
31,
2005
|
June
30,
2005
|
|||||||
Goodwill
by segment:
|
||||||||||
Heavy
Construction Division
|
$
|
18,011
|
$
|
18,011
|
$
|
18,011
|
||||
Branch
Division
|
9,900
|
9,900
|
9,900
|
|||||||
Total
goodwill
|
$
|
27,911
|
$
|
27,911
|
$
|
27,911
|
7.
|
Construction
Joint Ventures:
|
8.
|
Stock-based
Compensation:
|
Three
Months Ended
June
30, 2006
|
Six
Months Ended
June
30, 2006
|
||||||||||||
(shares
in thousands)
|
Shares
|
Weighted-average
grant-date fair value per share
|
Shares
|
Weighted-average
grant-date fair value per share
|
|||||||||
Restricted
shares outstanding, beginning balance
|
969
|
|
|
27.09
|
|
|
1,005
|
|
|
21.44
|
|||
Restricted
shares granted
|
-
|
-
|
212
|
47.94
|
|||||||||
Restricted
shares vested
|
(41
|
)
|
26.73
|
(288
|
)
|
22.65
|
|||||||
Restricted
shares forfeited
|
(11
|
)
|
29.01
|
(12
|
)
|
28.61
|
|||||||
Restricted
shares outstanding, ending balance
|
917
|
27.09
|
917
|
27.09
|
9
.
|
Weighted
Average Shares
Outstanding:
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Weighted
average shares outstanding:
|
|||||||||||||
Weighted
average common stock outstanding
|
41,838
|
41,712
|
41,764
|
41,653
|
|||||||||
Less:
weighted average restricted stock outstanding
|
942
|
1,074
|
946
|
1,091
|
|||||||||
Total
basic weighted average shares outstanding
|
40,896
|
40,638
|
40,818
|
40,562
|
|||||||||
Diluted
weighted average shares outstanding:
|
|||||||||||||
Basic
weighted average shares outstanding
|
40,896
|
40,638
|
40,818
|
40,562
|
|||||||||
Effect
of dilutive securities:
|
|||||||||||||
Common
stock options and units
|
50
|
63
|
46
|
62
|
|||||||||
Restricted
stock
|
520
|
511
|
514
|
494
|
|||||||||
Total
weighted average shares outstanding
|
41,466
|
41,212
|
41,378
|
41,118
|
10.
|
Comprehensive
Income:
|
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Net
income
|
$
|
33,289
|
$
|
14,954
|
$
|
31,867
|
$
|
6,687
|
|||||
Other
comprehensive (loss) income:
|
|||||||||||||
Changes
in net unrealized gains on investments
|
(383
|
)
|
253
|
221
|
41
|
||||||||
Total
comprehensive income
|
$
|
32,906
|
$
|
15,207
|
$
|
32,088
|
$
|
6,728
|
11
.
|
Provision
for Income Taxes:
|
12
.
|
Legal
|
13.
|
Business
Segment Information:
|
Three
Months Ended June 30,
|
||||||||||
(in
thousands)
|
HCD
|
Branch
|
Total
|
|||||||
2006
|
||||||||||
Revenue
from external customers
|
$
|
315,868
|
$
|
462,520
|
$
|
778,388
|
||||
Inter-segment
revenue transfer
|
(8,777
|
)
|
8,777
|
-
|
||||||
Net
revenue
|
307,091
|
471,297
|
778,388
|
|||||||
Depreciation,
depletion and amortization
|
3,611
|
12,757
|
16,368
|
|||||||
Operating
(loss) income
|
(18,871
|
)
|
61,495
|
42,624
|
||||||
2005
|
||||||||||
Revenue
from external customers
|
$
|
285,919
|
$
|
390,528
|
$
|
676,447
|
||||
Inter-segment
revenue transfer
|
(9,638
|
)
|
9,638
|
-
|
||||||
Net
revenue
|
276,281
|
400,166
|
676,447
|
|||||||
Depreciation,
depletion and amortization
|
3,792
|
10,839
|
14,631
|
|||||||
Operating
income
|
8,000
|
30,546
|
38,546
|
Six
Months Ended June 30,
|
||||||||||
(in
thousands)
|
HCD
|
Branch
|
Total
|
|||||||
2006
|
||||||||||
Revenue
from external customers
|
$
|
567,222
|
$
|
707,104
|
$
|
1,274,326
|
||||
Inter-segment
revenue transfer
|
(15,291
|
)
|
15,291
|
-
|
||||||
Net
revenue
|
551,931
|
722,395
|
1,274,326
|
|||||||
Depreciation,
depletion and amortization
|
7,188
|
24,748
|
31,936
|
|||||||
Operating
(loss) income
|
(30,965
|
)
|
80,327
|
49,362
|
||||||
Property
and equipment
|
46,945
|
349,348
|
396,293
|
|||||||
2005
|
||||||||||
Revenue
from external customers
|
$
|
495,516
|
$
|
601,608
|
$
|
1,097,124
|
||||
Inter-segment
revenue transfer
|
(17,279
|
)
|
17,279
|
-
|
||||||
Net
revenue
|
478,237
|
618,887
|
1,097,124
|
|||||||
Depreciation,
depletion and amortization
|
7,483
|
20,998
|
28,481
|
|||||||
Operating
income
|
6,705
|
29,477
|
36,182
|
|||||||
Property
and equipment
|
51,289
|
309,690
|
360,979
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Total
operating income for reportable segments
|
$
|
42,624
|
$
|
38,546
|
$
|
49,362
|
$
|
36,182
|
|||||
Other
income (expense), net
|
7,695
|
(336
|
)
|
10,350
|
(341
|
)
|
|||||||
Gain
on sales of property and equipment
|
4,049
|
2,189
|
8,287
|
2,215
|
|||||||||
Unallocated
other corporate expense
|
(15,139
|
)
|
(11,401
|
)
|
(28,720
|
)
|
(20,272
|
)
|
|||||
Granite
Land Company operating income
|
16,690
|
(344
|
)
|
15,512
|
(1,039
|
)
|
|||||||
Income
before provision for income taxes and minority interest
|
$
|
55,919
|
$
|
28,654
|
$
|
54,791
|
$
|
16,745
|
14.
|
Line
of Credit:
|
15.
|
Reclassifications:
|
Comparative
Financial Summary
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Revenue
|
$
|
812,037
|
$
|
676,704
|
$
|
1,308,005
|
$
|
1,097,638
|
|||||
Gross
profit
|
93,110
|
76,707
|
133,345
|
103,647
|
|||||||||
General
and administrative expenses
|
48,935
|
40,606
|
97,191
|
79,476
|
|||||||||
Provision
for legal judgment
|
-
|
9,300
|
-
|
9,300
|
|||||||||
Gain
on sales of property and equipment
|
4,049
|
2,189
|
8,287
|
2,215
|
|||||||||
Operating
income
|
48,224
|
28,990
|
44,441
|
17,086
|
|||||||||
Net
income
|
33,289
|
14,954
|
31,867
|
6,687
|
Total
Revenue
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||||||||||||||
(in
thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||
Revenue
by Division:
|
|||||||||||||||||||||||||
Branch
Division
|
$
|
471,297
|
58.0
|
$
|
400,166
|
59.1
|
$
|
722,395
|
55.2
|
$
|
618,887
|
56.4
|
|||||||||||||
Heavy
Construction Division
|
307,091
|
37.8
|
276,281
|
40.8
|
551,931
|
42.2
|
478,237
|
43.6
|
|||||||||||||||||
Other
|
33,649
|
4.2
|
257
|
0.1
|
33,679
|
2.6
|
514
|
-
|
|||||||||||||||||
Total
|
$
|
812,037
|
100.0
|
$
|
676,704
|
100.0
|
$
|
1,308,005
|
100.0
|
$
|
1,097,638
|
100.0
|
Branch
Division Revenue
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||||||||||||||
(in
thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||
California:
|
|||||||||||||||||||||||||
Public
sector
|
$
|
132,486
|
47.7
|
$
|
87,493
|
41.3
|
$
|
204,759
|
46.8
|
$
|
142,675
|
43.6
|
|||||||||||||
Private
sector
|
73,922
|
26.6
|
72,896
|
34.4
|
121,001
|
27.6
|
102,831
|
31.4
|
|||||||||||||||||
Material
sales
|
71,336
|
25.7
|
51,292
|
24.3
|
111,940
|
25.6
|
81,838
|
25.0
|
|||||||||||||||||
Total
|
$
|
277,744
|
100.0
|
$
|
211,681
|
100.0
|
$
|
437,700
|
100.0
|
$
|
327,344
|
100.0
|
|||||||||||||
West
(excluding California):
|
|||||||||||||||||||||||||
Public
sector
|
$
|
120,060
|
62.0
|
$
|
111,288
|
59.0
|
$
|
160,984
|
56.5
|
$
|
164,380
|
56.4
|
|||||||||||||
Private
sector
|
36,278
|
18.7
|
43,977
|
23.3
|
65,570
|
23.0
|
78,354
|
26.9
|
|||||||||||||||||
Material
sales
|
37,215
|
19.3
|
33,220
|
17.7
|
58,141
|
20.5
|
48,809
|
16.7
|
|||||||||||||||||
Total
|
$
|
193,553
|
100.0
|
$
|
188,485
|
100.0
|
$
|
284,695
|
100.0
|
$
|
291,543
|
100.0
|
|||||||||||||
Total
Branch Division Revenue:
|
|||||||||||||||||||||||||
Public
sector
|
$
|
252,546
|
53.6
|
$
|
198,781
|
49.7
|
$
|
365,743
|
50.6
|
$
|
307,055
|
49.6
|
|||||||||||||
Private
sector
|
110,200
|
23.4
|
116,873
|
29.2
|
186,571
|
25.8
|
181,185
|
29.3
|
|||||||||||||||||
Material
sales
|
108,551
|
23.0
|
84,512
|
21.1
|
170,081
|
23.6
|
130,647
|
21.1
|
|||||||||||||||||
Total
|
$
|
471,297
|
100.0
|
$
|
400,166
|
100.0
|
$
|
722,395
|
100.0
|
$
|
618,887
|
100.0
|
HCD
Revenue
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||||||||||||||
(in
thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||||||
Revenue
by Geographic Area:
|
|||||||||||||||||||||||||
South
|
$
|
67,370
|
21.9
|
$
|
54,073
|
19.6
|
$
|
116,457
|
21.1
|
$
|
93,820
|
19.6
|
|||||||||||||
West
|
74,004
|
24.1
|
60,773
|
22.0
|
139,675
|
25.3
|
97,590
|
20.4
|
|||||||||||||||||
Southeast
|
59,765
|
19.5
|
44,900
|
16.3
|
107,495
|
19.5
|
86,521
|
18.1
|
|||||||||||||||||
Northeast
|
82,478
|
26.9
|
84,430
|
30.6
|
151,920
|
27.5
|
157,889
|
33.0
|
|||||||||||||||||
Other
|
23,474
|
7.6
|
32,105
|
11.5
|
36,384
|
6.6
|
42,417
|
8.9
|
|||||||||||||||||
Total
|
$
|
307,091
|
100.0
|
$
|
276,281
|
100.0
|
$
|
551,931
|
100.0
|
$
|
478,237
|
100.0
|
|||||||||||||
Revenue
by Market Sector:
|
|||||||||||||||||||||||||
Public
sector
|
$
|
301,513
|
98.2
|
$
|
267,728
|
96.9
|
$
|
541,277
|
98.1
|
$
|
462,762
|
96.8
|
|||||||||||||
Private
sector
|
5,578
|
1.8
|
8,489
|
3.1
|
10,554
|
1.9
|
15,325
|
3.2
|
|||||||||||||||||
Material
sales
|
-
|
-
|
64
|
-
|
100
|
-
|
150
|
-
|
|||||||||||||||||
Total
|
$
|
307,091
|
100.0
|
$
|
276,281
|
100.0
|
$
|
551,931
|
100.0
|
$
|
478,237
|
100.0
|
|||||||||||||
Revenue
by Contract Type:
|
|||||||||||||||||||||||||
Fixed
unit price
|
$
|
71,257
|
23.2
|
$
|
84,732
|
30.7
|
$
|
139,687
|
25.3
|
$
|
159,041
|
33.3
|
|||||||||||||
Fixed
price, including
design/build
|
235,834
|
76.8
|
191,453
|
69.3
|
412,125
|
74.7
|
319,013
|
66.7
|
|||||||||||||||||
Other
|
-
|
-
|
96
|
-
|
119
|
-
|
183
|
-
|
|||||||||||||||||
Total
|
$
|
307,091
|
100.0
|
$
|
276,281
|
100.0
|
$
|
551,931
|
100.0
|
$
|
478,237
|
100.0
|
Total
Backlog
|
June
30, 2006
|
March
31, 2006
|
June
30, 2005
|
||||||||||||||||
(in
thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|||||||||||||
Backlog
by Division:
|
|||||||||||||||||||
Branch
Division
|
$
|
978,384
|
39.2
|
$
|
877,455
|
34.5
|
$
|
647,862
|
25.9
|
||||||||||
Heavy
Construction Division
|
1,514,482
|
60.8
|
1,669,280
|
65.5
|
1,852,445
|
74.1
|
|||||||||||||
Total
|
$
|
2,492,866
|
100.0
|
$
|
2,546,735
|
100.0
|
$
|
2,500,307
|
100.0
|
|
|||||||||||||||||||
Branch
Division Backlog
|
June
30, 2006
|
March
31, 2006
|
June
30, 2005
|
||||||||||||||||
(in
thousands)
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||||
California:
|
|||||||||||||||||||
Public
sector
|
$
|
370,513
|
70.7
|
$
|
304,714
|
61.3
|
$
|
188,304
|
62.4
|
||||||||||
Private
sector
|
153,735
|
29.3
|
192,704
|
38.7
|
113,699
|
37.6
|
|||||||||||||
Total
|
$
|
524,248
|
100.0
|
$
|
497,418
|
100.0
|
$
|
302,003
|
100.0
|
||||||||||
West
(excluding California):
|
|||||||||||||||||||
Public
sector
|
$
|
338,417
|
74.5
|
$
|
298,820
|
78.6
|
$
|
281,069
|
81.3
|
||||||||||
Private
sector
|
115,719
|
25.5
|
81,217
|
21.4
|
64,790
|
18.7
|
|||||||||||||
Total
|
$
|
454,136
|
100.0
|
$
|
380,037
|
100.0
|
$
|
345,859
|
100.0
|
||||||||||
Total
Branch Division backlog:
|
|||||||||||||||||||
Public
sector
|
$
|
708,930
|
72.5
|
$
|
603,534
|
68.8
|
$
|
469,373
|
72.4
|
||||||||||
Private
sector
|
269,454
|
27.5
|
273,921
|
31.2
|
178,489
|
27.6
|
|||||||||||||
Total
|
$
|
978,384
|
100.0
|
$
|
877,455
|
100.0
|
$
|
647,862
|
100.0
|
HCD
Backlog
|
June
30, 2006
|
March
31, 2006
|
June
30, 2005
|
||||||||||||||||
(in
thousands)
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
|
||||||||||||
Backlog
by Geographic Area:
|
|||||||||||||||||||
South
|
$
|
322,458
|
21.3
|
$
|
300,303
|
18.0
|
$
|
435,588
|
23.5
|
||||||||||
West
|
399,573
|
26.4
|
423,735
|
25.4
|
301,995
|
16.3
|
|||||||||||||
Southeast
|
395,178
|
26.1
|
452,019
|
27.1
|
297,159
|
16.0
|
|||||||||||||
Northeast
|
351,736
|
23.2
|
428,112
|
25.6
|
695,789
|
37.6
|
|||||||||||||
Other
|
45,537
|
3.0
|
65,111
|
3.9
|
121,914
|
6.6
|
|||||||||||||
Total
|
$
|
1,514,482
|
100.0
|
$
|
1,669,280
|
100.0
|
$
|
1,852,445
|
100.0
|
||||||||||
Backlog
by Market Sector:
|
|||||||||||||||||||
Public
sector
|
$
|
1,466,091
|
96.8
|
$
|
1,615,908
|
96.8
|
$
|
1,781,419
|
96.2
|
||||||||||
Private
sector
|
48,391
|
3.2
|
53,372
|
3.2
|
71,026
|
3.8
|
|||||||||||||
Total
|
$
|
1,514,482
|
100.0
|
$
|
1,669,280
|
100.0
|
$
|
1,852,445
|
100.0
|
||||||||||
Backlog
by Contract Type:
|
|||||||||||||||||||
Fixed
unit price
|
$
|
266,784
|
17.6
|
$
|
329,772
|
19.8
|
$
|
516,645
|
27.9
|
||||||||||
Fixed
price including design/build
|
1,247,698
|
82.4
|
1,339,508
|
80.2
|
1,335,800
|
72.1
|
|||||||||||||
Total
|
$
|
1,514,482
|
100.0
|
$
|
1,669,280
|
100.0
|
$
|
1,852,445
|
100.0
|
Gross
Profit
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Branch
Division
|
$
|
86,886
|
$
|
61,656
|
$
|
130,495
|
$
|
81,423
|
|||||
Percent
of division revenue
|
18.4
|
%
|
15.4
|
%
|
18.1
|
%
|
13.2
|
%
|
|||||
Heavy
Construction Division
|
$
|
(11,242
|
)
|
$
|
15,212
|
$
|
(14,200
|
)
|
$
|
22,308
|
|||
Percent
of division revenue
|
(3.7
|
)%
|
5.5
|
%
|
(2.6
|
)%
|
4.7
|
%
|
|||||
Other
gross profit
|
$
|
17,466
|
$
|
(161
|
)
|
$
|
17,050
|
$
|
(84
|
)
|
|||
Total
gross profit
|
$
|
93,110
|
$
|
76,707
|
$
|
133,345
|
$
|
103,647
|
|||||
Percent
of total revenue
|
11.5
|
%
|
11.3
|
%
|
10.2
|
%
|
9.4
|
%
|
Revenue
from Contracts with Deferred Margin
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Branch
Division
|
$
|
41,607
|
$
|
22,469
|
$
|
49,206
|
$
|
24,195
|
|||||
Heavy
Construction Division
|
56,201
|
49,383
|
83,009
|
80,132
|
|||||||||
Total
revenue from contracts with
deferred margin
|
$
|
97,808
|
$
|
71,852
|
$
|
132,215
|
$
|
104,327
|
General
and Administrative Expenses
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Salaries
and related expenses
|
$
|
25,435
|
$
|
22,129
|
$
|
55,328
|
$
|
46,705
|
|||||
Incentive
compensation, discretionary profit sharing and other variable
compensation
|
8,634
|
4,920
|
11,581
|
7,317
|
|||||||||
Other
general and administrative expenses
|
14,866
|
13,557
|
30,282
|
25,454
|
|||||||||
Total
|
$
|
48,935
|
$
|
40,606
|
$
|
97,191
|
$
|
79,476
|
|||||
Percent
of revenue
|
6.0
|
%
|
6.0
|
%
|
7.4
|
%
|
7.2
|
%
|
Provision
for Legal Judgment
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Provision
for legal judgment
|
$ |
-
|
$
|
9,300
|
$ |
-
|
$
|
9,300
|
Gain
on Sales of Property and Equipment
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Gain
on sales of property and equipment
|
$
|
4,049
|
$
|
2,189
|
$
|
8,287
|
$
|
2,215
|
Other
Income (Expense)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Interest
income
|
$
|
4,944
|
$
|
1,968
|
$
|
9,677
|
$
|
4,127
|
|||||
Interest
expense
|
(1,391
|
)
|
(1,636
|
)
|
(2,786
|
)
|
(3,667
|
)
|
|||||
Equity
in income (loss) of affiliates
|
828
|
(17
|
)
|
751
|
(77
|
)
|
|||||||
Other,
net
|
3,314
|
(651
|
)
|
2,708
|
(724
|
)
|
|||||||
Total
|
$
|
7,695
|
$
|
(336
|
)
|
$
|
10,350
|
$
|
(341
|
)
|
Provision
for Income Taxes
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Provision
for income taxes
(in thousands)
|
$
|
17,045
|
$
|
8,220
|
$
|
16,272
|
$
|
4,528
|
|||||
Effective
tax rate
|
30.5
|
%
|
28.7
|
%
|
29.7
|
%
|
27.0
|
%
|
Minority
Interest in Consolidated Subsidiaries
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
(in
thousands)
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Minority
interest in consolidated subsidiaries
|
$
|
(5,585
|
)
|
$
|
(5,480
|
)
|
$
|
(6,652
|
)
|
$
|
(5,530
|
)
|
Six
Months Ended June 30,
|
|||||||
(in
thousands)
|
2006
|
2005
|
|||||
Cash
and cash equivalents
|
$
|
304,976
|
$
|
116,988
|
|||
Net
cash provided by (used in):
|
|||||||
Operating
activities
|
208,053
|
1,148
|
|||||
Investing
activities
|
(71,162
|
)
|
(18,894
|
)
|
|||
Financing
activities
|
(31,796
|
)
|
(26,893
|
)
|
|||
Capital
expenditures
|
68,419
|
53,688
|
|||||
Working
capital
|
331,352
|
312,917
|
Item
4.
|
Item
1.
|
Period
|
Total
number of shares purchased
1
|
|
Average
price paid per share
|
|
Total
number of shares purchased as part of publicly announced plans or
programs
2
|
|
Approximate
dollar value of shares that may yet be purchased under the plans
or
programs
2
|
||||||
April
1, 2006 through April 30, 2006
|
-
|
-
|
-
|
$
|
22,787,537
|
||||||||
May
1, 2006 through May 31, 2006
|
45,300
|
44.11
|
-
|
$
|
22,787,537
|
||||||||
June
1, 2006 through June 30, 2006
|
8,278
|
41.33
|
-
|
$
|
22,787,537
|
||||||||
53,578
|
43.68
|
-
|
1
|
The
total number of shares purchased includes: (i) shares purchased in
May
2006 for contribution to our Employee Stock Ownership Plan; and
(ii) shares purchased in connection with employee tax withholding for
shares granted under our 1999 Equity Incentive
Plan.
|
2
|
On
October 16, 2002, we publicly announced that our Board of Directors
had
authorized us to repurchase up to $25.0 million worth of shares of
our Company’s common stock, exclusive of repurchases related to employee
benefit plans, at management’s discretion.
|
Item
3.
|
Votes
|
|||
Affirmative
|
Withhold
|
||
Linda
Griego
|
36,697,126
|
2,415,019
|
|
David
H. Kelsey
|
36,709,575
|
2,402,570
|
|
James
W. Bradford
|
36,698,223
|
2,413,922
|
Votes
|
|||||||
Affirmative
|
Against
|
Abstain
|
Broker
Non-Votes
|
||||
Proposal
to amend Granite’s Certificate of Incorporation so as to increase the
authorized shares of common stock.
|
34,165,639
|
|
4,167,520
|
|
30,845
|
|
748,141
|
Proposal
to ratify the appointment by the Audit/Compliance Committee of
PricewaterhouseCoopers LLP as Granite’s independent auditor for the fiscal
year ending December 31, 2006.
|
37,792,281
|
|
549,372
|
|
22,350
|
749,142
|
Item
5.
|
Item
6.
|
†
|
||
†
|
||
†
|
||
†
|
||
†
|
||
††
|
||
†
|
Filed herewith | |
|
††
|
Furnished herewith |
|
GRANITE CONSTRUCTION INCORPORATED | ||||
Date:
|
August
4, 2006
|
By:
|
/s/
William E. Barton
|
||
William
E. Barton
|
|||||
Senior
Vice President and Chief Financial Officer
|
By:
|
/s/ Michael Futch |
Michael Futch | |
Secretary |
Name
|
Mailing
Address
|
|
David H. Watts | 585 West Beach St. | |
Watsonville, CA 95076 |
Pricing
Level
|
Pricing
Level Leverage
Ratio
|
Applicable
Rate
(Commitment
Fee)
|
Applicable
Rate
(Eurodollar
Rate
Loans)
|
Applicable
Rate
(Base
Rate
Loans)
|
Applicable
Rate
(Financial
Letter
of
Credit
Fee)
|
Applicable
Rate
(Performance
Letter
of
Credit
Fee)
|
Applicable
Rate
(Utilization
Fee)
|
1
|
Less
than 0.50 to 1.00
|
0.125%
|
0.600%
|
00.0%
|
0.600%
|
0.450%
|
0.100%
|
2
|
Less
than 1.00 to 1.00 but
greater
than
or
equal
to
0.50
to 1.00
|
0.150%
|
0.700%
|
00.0%
|
0.700%
|
0.525%
|
0.100%
|
3
|
Less
than 2.00 to 1.00 but
greater
than
or
equal
to
1.00
to 1.00
|
0.200%
|
0.800%
|
00.0%
|
0.800%
|
0.600%
|
0.100%
|
4
|
Greater
than or equal to
2.00
to 1.00
|
0.250%
|
1.000%
|
00.0%
|
1.000%
|
0.750%
|
0.100%
|
David H. Watts | Chairman of the Board |
William G. Dorey | President and Chief Executive Officer |
Mark E. Boitano | Executive Vice President and Chief Operating Officer |
William E. Barton | Senior Vice President, Chief Financial Officer, Corporate Compliance Officer and Assistant Secretary |
Michael F. Donnino | Senior Vice President and Manager, Heavy Construction Division and Assistant Secretary |
James H. Roberts | Senior Vice President, Branch Division Manager and Assistant Secretary |
Michael Futch | Vice President, General Counsel and Secretary |
Roxane C. Allbritton | Vice President, Treasurer, Assistant Financial Officer and Assistant Secretary |
Darryl W. Goodson | Vice President, Heavy Construction Division Assistant Manager and Assistant Secretary |
Brian C. Kaub | Vice President, Assistant Manager, Heavy Construction Division & Assistant Secretary |
Randy J. Kremer | Vice President, Branch Division Manager of Construction Materials and Assistant Secretary |
John A. Franich | Vice President, Branch Division Manager of Construction & Assistant Secretary |
Mary G. McCann-Jenni | Vice President, Assistant Financial Officer, Controller and Assistant Secretary |
David R. Grazian | Director of Corporate Taxation and Assistant Secretary |
Jigisha Desai | Assistant Treasurer and Assistant Secretary |
William G. Dorey | President and Chief Executive Officer |
Mark E. Boitano | Executive Vice President and Chief Operating Officer |
William E. Barton | Senior Vice President, Chief Financial Officer, Corporate Compliance Officer and Assistant Secretary |
Michael F. Donnino | Senior Vice President and Manager, Heavy Construction Division and Assistant Secretary |
James H. Roberts | Senior Vice President, Branch Division Manager and Assistant Secretary |
Michael Futch | Vice President, General Counsel and Secretary |
Roxane C. Allbritton | Vice President, Treasurer, Assistant Financial Officer and Assistant Secretary |
Darryl W. Goodson | Vice President, Heavy Construction Division Assistant Manager and Assistant Secretary |
Brian C. Kaub | Vice President, Assistant Manager, Heavy Construction Division & Assistant Secretary |
Randy J. Kremer | Vice President, Branch Division Manager of Construction Materials and Assistant Secretary |
John A. Franich | Vice President, Branch Division Manager of Construction & Assistant Secretary |
Mary G. McCann-Jenni | Vice President, Assistant Financial Officer, Controller and Assistant Secretary |
David R. Grazian | Director of Corporate Taxation and Assistant Secretary |
Jigisha Desai | Assistant Treasurer and Assistant Secretary |
James M. Cady | Assistant General Counsel and Assistant Secretary |
Kenneth M. Smith | Heavy Construction Division Counsel and Assistant Secretary |
Richard A. Watts | Branch Division Counsel and Assistant Secretary |
William
G. Dorey
|
President
and Chief Executive Officer
|
Mark
E. Boitano
|
Executive
Vice President and Chief Operating Officer
|
William
E. Barton
|
Senior
Vice President, Chief Financial Officer, Corporate Compliance Officer
and
Assistant Secretary
|
Michael
F. Donnino
|
Senior
Vice President, Heavy Construction Division Manager and Assistant
Secretary
|
James
H. Roberts
|
Senior
Vice President, Branch Division Manager and Assistant
Secretary
|
Roxane
C. Allbritton
|
Vice
President, Treasurer, Assistant Financial Officer and Assistant
Secretary
|
Darryl
W. Goodson
|
Vice
President, Heavy Construction Division Assistant Manager and Assistant
Secretary
|
Brian
C. Kaub
|
Vice
President, Heavy Construction Division Assistant Manager and Assistant
Secretary
|
Randy
J. Kremer
|
Vice
President, Branch Division Manager of Construction Materials and
Assistant
Secretary
|
John
A. Franich
|
Vice
President, Branch Division Manager of Construction and Assistant
Secretary
|
Mary
G. McCann-Jenni
|
Vice
President, Assistant Financial Officer, Controller and Assistant
Secretary
|
Brian
R. Dowd
|
Vice
President, Director of Human Resources and Assistant
Secretary
|
David
R. Grazian
|
Director
of Corporate Taxation and Assistant Secretary
|
Jigisha
Desai
|
Assistant
Treasurer and Assistant Secretary
|
William
G. Dorey
|
President
and Chief Executive Officer
|
Mark
E. Boitano
|
Executive
Vice President and Chief Operating Officer
|
William
E. Barton
|
Senior
Vice President, Chief Financial Officer, Corporate Compliance Officer
and
Assistant Secretary
|
Michael
F. Donnino
|
Senior
Vice President, Heavy Construction Division Manager and Assistant
Secretary
|
James
H. Roberts
|
Senior
Vice President, Branch Division Manager and Assistant
Secretary
|
Darryl
W. Goodson
|
Vice
President, Heavy Construction Division Assistant Manager and Assistant
Secretary
|
Brian
C. Kaub
|
Vice
President, Heavy Construction Division Assistant Manager, and Assistant
Secretary
|
Randy
J. Kremer
|
Vice
President, Branch Division Manager of Construction Materials and
Assistant
Secretary
|
John
A. Franich
|
Vice
President, Branch Division Manager of Construction and Assistant
Secretary
|
Mary
G. McCann-Jenni
|
Vice
President, Assistant Financial Officer, Controller and Assistant
Secretary
|
David
R. Grazian
|
Director
of Corporate Taxation and Assistant Secretary
|
Alan
W. Ramsay
|
Assistant
Controller
|
Name
|
Office
|
Signature
|
Jigisha Desai |
Assistant
Treasurer and
Assistant
Secretary
|
/s/ Jigisha Desai |
Brian Robert Dowd | VP, Human Resources and Assistant Secretary | /s/ Brian Dowd |
1. I
have reviewed this quarterly report on Form 10-Q of Granite
Construction Incorporated;
|
||
2. Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
||
3. Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations, and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
||
4. The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15(d)-15(f)) for the registrant and have:
|
||
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b)
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
|
|
|
c)
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
|
d)
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5. The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of registrant’s board of
directors:
|
||
|
||
a)
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
||
b)
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Dated:
August 4, 2006
|
/s/
William G. Dorey
|
William
G. Dorey
|
|
President
and Chief Executive Officer
|
1. I
have reviewed this quarterly report on Form 10-Q of Granite
Construction Incorporated;
|
||
2. Based
on my knowledge, this report does not contain any untrue statement
of a
material fact or omit to state a material fact necessary to make
the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
||
3. Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects
the
financial condition, results of operations, and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
||
4. The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15(d)-15(f)) for the registrant and have:
|
||
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
|
b)
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision,
to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c)
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness
of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
d)
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely
to
materially affect, the registrant’s internal control over financial
reporting; and
|
||
5. The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting,
to
the registrant’s auditors and the audit committee of registrant’s board of
directors:
|
||
|
||
a)
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
||
b)
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
Dated:
August 4, 2006
|
/s/
William E. Barton
|
William
E. Barton
|
|
Senior
Vice President and Chief Financial Officer
|
|
|
Dated:
August 4, 2006
Dated:
August 4, 2006
|
/s/
William G. Dorey
|
William
G. Dorey
President
and Chief Executive Officer
/s/
William E. Barton
|
|
William
E. Barton
Senior
Vice President
and
Chief Financial Officer
|