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
¨
|
Smaller reporting company
¨
|
Class
|
Outstanding
|
|
Common
Stock, $0.01 par value
|
38,802,826
shares
|
GRANITE
CONSTRUCTION
INCORPORATED
|
||||||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(Unaudited
- in thousands, except share and per share data)
|
||||||||||||
March
31,
|
December
31,
|
March
31,
|
||||||||||
2010
|
2009
|
2009
|
||||||||||
ASSETS
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and cash equivalents
|
$ | 222,095 | $ | 338,956 | $ | 390,483 | ||||||
Short-term
marketable securities
|
76,963 | 42,448 | 22,276 | |||||||||
Receivables,
net
|
197,658 | 280,252 | 233,867 | |||||||||
Costs
and estimated earnings in excess of billings
|
33,445 | 10,619 | 54,400 | |||||||||
Inventories
|
49,483 | 45,800 | 59,254 | |||||||||
Real
estate held for development and sale
|
137,183 | 139,449 | 79,409 | |||||||||
Deferred
income taxes
|
31,150 | 31,034 | 43,484 | |||||||||
Equity
in construction joint ventures
|
71,693 | 67,693 | 44,423 | |||||||||
Other
current assets
|
56,033 | 50,467 | 52,488 | |||||||||
Total
current assets
|
875,703 | 1,006,718 | 980,084 | |||||||||
Property
and equipment, net
|
519,909 | 520,778 | 526,734 | |||||||||
Long-term
marketable securities
|
90,440 | 76,937 | 46,387 | |||||||||
Investments
in affiliates
|
30,823 | 24,644 | 21,768 | |||||||||
Other
noncurrent assets
|
80,371 | 80,498 | 79,534 | |||||||||
Total
assets
|
$ | 1,597,246 | $ | 1,709,575 | $ | 1,654,507 | ||||||
LIABILITIES AND
EQUITY
|
||||||||||||
Current
liabilities
|
||||||||||||
Current
maturities of long-term debt
|
$ | 8,350 | $ | 15,017 | $ | 15,355 | ||||||
Current
maturities of non-recourse debt
|
40,565 | 43,961 | 18,863 | |||||||||
Accounts
payable
|
100,102 | 131,251 | 141,783 | |||||||||
Billings
in excess of costs and estimated earnings
|
142,935 | 156,041 | 190,540 | |||||||||
Accrued
expenses and other current liabilities
|
156,374 | 159,843 | 159,323 | |||||||||
Total
current liabilities
|
448,326 | 506,113 | 525,864 | |||||||||
Long-term
debt
|
225,203 | 225,203 | 233,553 | |||||||||
Long-term non-recourse debt | 16,895 | 19,485 | 17,798 | |||||||||
Other
long-term liabilities
|
52,471 | 48,998 | 45,836 | |||||||||
Deferred
income taxes
|
27,217 | 27,220 | 17,917 | |||||||||
Commitments and contingencies | ||||||||||||
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; issued and
outstanding 38,801,232 shares as of March 31, 2010,
38,635,021
shares as of December 31, 2009 and 38,679,123 shares as
of March 31, 2009
|
388 | 386 | 387 | |||||||||
Additional
paid-in capital
|
93,688 | 94,633 | 88,158 | |||||||||
Retained
earnings
|
689,634 | 735,632 | 686,129 | |||||||||
Total
Granite Construction Incorporated shareholders’ equity
|
783,710 | 830,651 | 774,674 | |||||||||
Noncontrolling
interests
|
43,424 | 51,905 | 38,865 | |||||||||
Total
equity
|
827,134 | 882,556 | 813,539 | |||||||||
Total
liabilities and equity
|
$ | 1,597,246 | $ | 1,709,575 | $ | 1,654,507 |
GRANITE
CONSTRUCTION
INCORPORATED
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
(Unaudited
- in thousands, except per share data)
|
||||||||
Three Months Ended March 31, |
2010
|
2009
|
||||||
Revenue
|
||||||||
Construction
|
$ | 81,186 | $ | 168,049 | ||||
Large project
construction
|
106,325 | 149,060 | ||||||
Construction
materials
|
26,164 | 29,846 | ||||||
Real
estate
|
7,008 | 417 | ||||||
Total revenue
|
220,683 | 347,372 | ||||||
Cost
of revenue
|
||||||||
Construction
|
79,340 | 132,873 | ||||||
Large
project construction
|
96,842 | 115,396 | ||||||
Construction
materials
|
33,289 | 30,160 | ||||||
Real
estate
|
5,498 | 207 | ||||||
Total cost of revenue
|
214,969 | 278,636 | ||||||
Gross
profit
|
5,714 | 68,736 | ||||||
Selling,
general and administrative expenses
|
55,292 | 54,355 | ||||||
Gain
on sales of property and equipment
|
4,452 | 2,521 | ||||||
Operating
(loss) income
|
(45,126 | ) | 16,902 | |||||
Other income
(expense)
|
||||||||
Interest
income
|
939 | 2,061 | ||||||
Interest
expense
|
(3,734 | ) | (3,488 | ) | ||||
Equity
in loss
of affiliates
|
(319 | ) | (444 | ) | ||||
Other
income, net
|
2,897 | 3,785 | ||||||
Total other (expense)
income
|
(217 | ) | 1,914 | |||||
(Loss)
income before (benefit from) provision for income taxes
|
(45,343 | ) | 18,816 | |||||
(Benefit
from) provision for income taxes
|
(7,613 | ) | 4,829 | |||||
Net
(loss) income
|
(37,730 | ) | 13,987 | |||||
Amount attributable
to noncontrolling interests
|
(3,224 | ) | (5,067 | ) | ||||
Net
(loss) income attributable to Granite Construction
Incorporated
|
$ | (40,954 | ) | $ | 8,920 | |||
Net
(loss) income per share attributable to common
shareholders
(see Note
12
)
|
||||||||
Basic
|
$ | (1.09 | ) | $ | 0.23 | |||
Diluted
|
$ | (1.09 | ) | $ | 0.23 | |||
Weighted
average shares of common stock
|
||||||||
Basic
|
37,688 | 37,476 | ||||||
Diluted
|
37,688 | 37,600 | ||||||
Dividends
per common share
|
$ | 0.13 | $ | 0.13 |
GRANITE
CONSTRUCTION
INCORPORATED
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(
Unaudited - in
thousands
)
|
||||||||
Three
Months Ended March 31,
|
2010
|
2009
|
||||||
Operating
activities
|
||||||||
Net
(loss) income
|
$ | (37,730 | ) | $ | 13,987 | |||
Adjustments
to reconcile net (loss) income to net cash
used
in
operating
activities:
|
||||||||
Depreciation,
depletion and amortization
|
18,662 | 20,623 | ||||||
Provision
for (recovery of) doubtful accounts
|
508 | (2,723 | ) | |||||
Gain
on sales of property and equipment
|
(4,452 | ) | (2,521 | ) | ||||
Stock-based
compensation
|
3,158 | 2,777 | ||||||
Gain
on company owned life insurance
|
(1,748 | ) | - | |||||
Changes
in assets and liabilities, net of the effects of
consolidations:
|
||||||||
Receivables
|
80,800 | 87,722 | ||||||
Inventories
|
(3,683 | ) | (4,031 | ) | ||||
Real
estate held for development and sale
|
(1,687 | ) | (4,383 | ) | ||||
Equity
in construction joint ventures
|
(4,631 | ) | 258 | |||||
Other
assets, net
|
(4,932 | ) | 5,201 | |||||
Accounts
payable
|
(31,469 | ) | (32,843 | ) | ||||
Accrued
expenses and other current liabilities, net
|
(1,218 | ) | (20,120 | ) | ||||
Billings
in excess of costs and estimated earnings, net
|
(35,932 | ) | (77,929 | ) | ||||
Net
cash
used in
operating activities
|
(24,354 | ) | (13,982 | ) | ||||
Investing
activities
|
||||||||
Purchases
of marketable securities
|
(47,511 | ) | (29,258 | ) | ||||
Maturities
of marketable securities
|
- | 15,610 | ||||||
Additions
to property and equipment
|
(14,712 | ) | (29,601 | ) | ||||
Proceeds
from sales of property and equipment
|
5,674 | 3,741 | ||||||
Purchase
of private preferred stock
|
(6,400 | ) | - | |||||
Contributions
to affiliates
|
(165 | ) | (2,219 | ) | ||||
Other
investing activities, net
|
(288 | ) | 148 | |||||
Net
cash
used in
investing activities
|
(63,402 | ) | (41,579 | ) | ||||
Financing
activities
|
||||||||
Proceeds
from long-term debt
|
53 | 2,435 | ||||||
Long-term
debt principal payments
|
(8,739 | ) | (7,282 | ) | ||||
Cash
dividends paid
|
(5,023 | ) | (4,975 | ) | ||||
Purchase
of common stock
|
(3,296 | ) | (2,017 | ) | ||||
Distributions
to noncontrolling partners
|
(12,142 | ) | (3,153 | ) | ||||
Other
financing activities
|
42 | 193 | ||||||
Net
cash
used
in
financing activities
|
(29,105 | ) | (14,799 | ) | ||||
Decrease
in
cash and cash equivalents
|
(116,861 | ) | (70,360 | ) | ||||
Cash
and cash equivalents at beginning of period
|
338,956 | 460,843 | ||||||
Cash
and cash equivalents at end of period
|
$ | 222,095 | $ | 390,483 |
GRANITE
CONSTRUCTION INCORPORATED
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
|
||||||||
(
Unaudited - in
thousands
)
|
||||||||
Three
Months Ended March 31,
|
2010
|
2009
|
||||||
Supplementary
Information
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 1,576 | $ | 963 | ||||
Income
taxes
|
66 | 2,687 | ||||||
Non-cash
investing and financing activities:
|
||||||||
Restricted
stock issued for services, net
|
$ | 6,734 | $ | 18,675 | ||||
Accrued
cash dividends
|
5,044 | 5,028 | ||||||
Debt
payments from sale of assets
|
4,075 | - |
1.
|
Basis
of Presentation
|
i)
|
determination of
a VIE’s primary beneficiary using a qualitative analysis (see Notes 7
and 8);
|
ii)
|
ongoing
evaluation of a VIE’s primary beneficiary;
and
|
iii)
|
disclosures
about a company’s involvement with a VIE including
separate presentation
on
the condensed consolidated balance sheets of a
consolidated VIE’s non-recourse debt
(see
Note 8)
.
|
2.
|
Recently
Issued Accounting
Pronouncement
|
3.
|
Revisions
in Estimates
|
Three
Months Ended March 31,
|
|||||||
(dollars
in millions)
|
2010
|
2009
|
|||||
Number
of projects with upward estimate changes
|
1
|
4
|
|||||
Range
of increase in gross profit from each project,
net
|
$
|
3.2
|
$
|
1.1
- 17.3
|
|||
Effect
on project profitability
|
$
|
3.2
|
$
|
21.5
|
Three
Months Ended March 31,
|
|||||||
(dollars
in millions)
|
2010
|
2009
|
|||||
Number
of projects with downward estimate changes
|
3
|
-
|
|||||
Range
of reduction in gross profit from each project,
net
|
$
|
1.1
- 2.9
|
$
|
-
|
|||
Effect
on project profitability
|
$
|
(6.0
|
)
|
$
|
-
|
|
4.
|
Marketable
Securities
|
March 31,
2010
|
Held-to-Maturity
|
Trading
|
Total
|
|||||||||
U.S.
Government and agency obligations
|
$ | 16,471 | $ | - | $ | 16,471 | ||||||
Commercial paper | 34,979 | - | 34,979 | |||||||||
Municipal
bonds
|
|
20,975
|
|
-
|
|
20,975
|
||||||
Mutual
funds
|
-
|
4,538
|
4,538
|
|||||||||
Total
short-term marketable securities
|
72,425
|
4,538
|
76,963
|
|||||||||
U.S.
Government and agency obligations
|
84,760
|
-
|
84,760
|
|||||||||
Municipal
bonds
|
5,680
|
-
|
5,680
|
|||||||||
Total
long-term marketable securities
|
90,440
|
-
|
90,440
|
|||||||||
Total
marketable securities
|
$
|
162,865
|
$
|
4,538
|
$
|
167,403
|
December
31, 2009
|
||||||||||||
U.S.
Government and agency obligations
|
$
|
14,508
|
$
|
-
|
$
|
14,508
|
||||||
Commercial paper | 4,993 | - | 4,993 | |||||||||
Municipal
bonds
|
21,019
|
-
|
21,019
|
|||||||||
Mutual
funds
|
-
|
1,928
|
1,928
|
|||||||||
Total
short-term marketable securities
|
40,520
|
1,928
|
42,448
|
|||||||||
U.S.
Government and agency obligations
|
71,254
|
-
|
71,254
|
|||||||||
Municipal
bonds
|
5,683
|
-
|
5,683
|
|||||||||
Total
long-term marketable securities
|
76,937
|
-
|
76,937
|
|||||||||
Total
marketable securities
|
$
|
117,457
|
$
|
1,928
|
$
|
119,385
|
March 31,
2009
|
||||||||||||
U.S.
Government and agency obligations
|
$
|
10,846
|
$
|
-
|
$
|
10,846 | ||||||
Municipal
bonds
|
11,430
|
-
|
11,430 | |||||||||
Total
short-term marketable securities
|
22,276
|
-
|
|
22,276 | ||||||||
U.S.
Government and agency obligations
|
29,361
|
-
|
29,361 | |||||||||
Municipal
bonds
|
17,026
|
-
|
17,026 | |||||||||
Total
long-term marketable securities
|
46,387
|
-
|
46,387 | |||||||||
Total
marketable securities
|
$
|
68,663
|
$
|
-
|
$
|
68,663 |
March 31, 2010 | ||||
Due
within one year
|
$
|
72,425
|
||
Due
in one to five years
|
90,440
|
|||
Total
|
$
|
162,865
|
5.
|
Fair
Value Measurement
|
March 31, 2010 |
Fair
Value Measurement at Reporting Date Using
|
|||||||||||
(in
thousands)
|
Level
1
1
|
Level
2
2
|
Level
3
3
|
Total
|
||||||||
Cash equivalents | ||||||||||||
Money
market funds
|
$
|
184,754
|
$
|
-
|
$
|
-
|
$
|
184,754
|
||||
Trading securities | ||||||||||||
Debt securities - mutual
funds
|
$ |
4,538
|
$ | - | $ | - | $ |
4,538
|
||||
Total
|
$ |
189,292
|
$ | - | $ | - | $ |
189,292
|
December
31, 2009
|
||||||||||||
(in
thousands)
|
||||||||||||
Cash equivalents | ||||||||||||
Money
market funds
|
$ | 337,817 | $ | - | $ | - | $ | 337,817 | ||||
Trading securities | ||||||||||||
Debt securities - mutual
funds
|
$ | 1,928 | $ | - | $ | - | $ | 1,928 | ||||
Total
|
$ | 339,745 | $ | - | $ | - | $ | 339,745 |
March
31, 2009
|
|
|
|
|
||||||||
(in
thousands)
|
||||||||||||
Cash equivalents | ||||||||||||
Money
market funds
|
$ | 385,460 | $ | - | $ | - | $ | 385,460 | ||||
Total
|
$ | 385,460 | $ | - | $ | - | $ | 385,460 |
March
31,
|
December
31,
|
|||||||
(in
thousands)
|
2010
|
2009
|
||||||
Carrying
amount
|
||||||||
Senior
notes payable (including current maturities)
|
$
|
233,333
|
$
|
240,000
|
||||
Fair
value
|
||||||||
Senior
notes payable (including current maturities)
|
$
|
248,809
|
$
|
249,159
|
6.
|
Receivables,
net
|
March 31, |
December
31,
|
March 31, | ||||||||
(in
thousands)
|
2010
|
2009
|
2009 | |||||||
Construction
contracts:
|
||||||||||
Completed
and in progress
|
$
|
75,021
|
$
|
121,083
|
$ | 99,940 | ||||
Retentions
|
91,799
|
96,887
|
106,456 | |||||||
Total
construction contracts
|
166,820
|
217,970
|
206,396 | |||||||
Construction
material sales
|
19,074
|
22,817
|
19,012 | |||||||
Other
|
15,340
|
43,382
|
15,421 | |||||||
Total
gross receivables
|
201,234
|
284,169
|
240,829 | |||||||
Less:
allowance for doubtful accounts
|
(3,576
|
)
|
(3,917
|
) |
|
(6,962 | ) | |||
Total
net receivables
|
$
|
197,658
|
$
|
280,252
|
$ | 233,867 |
7.
|
Construction
and Line Item Joint
Ventures
|
·
|
determination
of a VIE’s primary beneficiary using a qualitative approach based
on:
|
i)
|
the
power to direct the activities that most significantly impact the economic
performance of the VIE; and
|
ii)
|
the
obligation to absorb losses or right to receive benefits of the VIE that
could be significant.
|
·
|
ongoing
evaluation of a VIE’s primary beneficiary;
and
|
·
|
disclosures
about a company’s involvement with a VIE including
separate presentation
on
the
condensed consolidated
balance sheets of a
consolidated VIE’s non-recourse debt.
|
March 31, | December 31, | March 31, | ||||||||
(in
thousands)
|
2010 | 2009 | 2009 | |||||||
Cash and cash equivalents | $ | 99,268 | $ | 122,438 | $ | 120,743 | ||||
Other current assets | 11,953 | 3,220 | 11,042 | |||||||
Total
current assets
|
$ |
111,221
|
$ | 125,658 | $ | 131,785 | ||||
Noncurrent
assets
|
948
|
1,443 | 4,483 | |||||||
Total
assets
1
|
$ |
112,169
|
$ | 127,101 | $ | 136,268 | ||||
Accounts payable | $ | 20,506 | $ | 23,057 | $ | 31,595 | ||||
Billings in excess of costs and estimated earnings | 64,779 | 69,354 | 70,195 | |||||||
Accrued expenses and other current liabilities | 11,475 | 11,834 | 11,221 | |||||||
Total
current liabilities
|
$ |
96,760
|
$ | 104,245 | $ | 113,011 | ||||
Noncurrent
liabilities
|
4
|
3 | 30 | |||||||
Total
liabilities
1
|
$ |
94,764
|
$ | 104,248 | $ | 113,041 |
March 31, | December 31, | March 31, | ||||||||
(in
thousands)
|
2010
|
2009
|
2009 | |||||||
Assets:
|
||||||||||
Total
|
$
|
353,203
|
$
|
337,959
|
$ | 264,663 | ||||
Less
partners’ interest
|
218,680
|
219,777
|
186,784 | |||||||
Granite’s
interest
|
134,523
|
118,182
|
77,879 | |||||||
Liabilities:
|
||||||||||
Total
|
193,350
|
168,114
|
148,344 | |||||||
Less
partners’ interest
|
130,520
|
117,625
|
114,888 | |||||||
Granite’s
interest
|
62,830
|
50,489
|
33,456 | |||||||
Equity
in construction joint ventures
|
$
|
71,693
|
$
|
67,693
|
$ | 44,423 |
Three
Months Ended March 31,
|
|||||||
(in
thousands)
|
2010
|
2009
|
|||||
Revenue:
|
|||||||
Total
|
$
|
121,806
|
$
|
101,200
|
|||
Less
partners’ interest
|
87,760
|
80,696
|
|||||
Granite’s
interest
|
34,046
|
20,504
|
|||||
Cost
of revenue:
|
|||||||
Total
|
109,175
|
91,832
|
|||||
Less
partners’ interest
|
74,487
|
71,648
|
|||||
Granite’s
interest
|
34,688
|
20,184
|
|||||
Granite’s
interest in gross (loss) profit
|
$
|
(642
|
) |
$
|
320
|
8.
|
Real
Estate Entities and Investments in
Affiliates
|
March 31, | December 31, | March 31, | ||||||||
(
in
thousands
)
|
2010 | 2009 | 2009 | |||||||
Other
current assets
|
$ |
4,565
|
$ | 5,477 | $ | 5,577 | ||||
Real estate held for development and sale | 137,183 | 139,449 | 79,409 | |||||||
Total
current assets
|
141,748 | 144,926 | 84,986 | |||||||
Property and equipment, net | 15,090 | 14,905 | 19,300 | |||||||
Other
noncurrent assets
|
2,822
|
11,989 | 15,090 | |||||||
Total
assets
|
$ |
159,660
|
$ | 171,820 | $ | 119,376 | ||||
Current
maturities of non-recourse debt
|
$ |
40,565
|
$ | 43,961 | $ | 18,863 | ||||
Other current liabilities | 5,402 | 5,845 | 6,851 | |||||||
Total
current liabilities
|
45,967 | 49,806 | 25,714 | |||||||
Long-term non-recourse debt | 16,895 | 19,485 | 17,798 | |||||||
Other
noncurrent liabilities
|
571
|
553 | 477 | |||||||
Total
liabilities
|
$ |
63,433
|
$ | 69,844 | $ | 43,989 |
March
31,
|
December
31,
|
March
31,
|
|||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
||||||||
Residential
1
|
$
|
123,661 |
$
|
121,101
|
$
|
69,427 | |||||
Commercial
|
13,522 |
18,348
|
9,982 | ||||||||
Total
|
$
|
137,183 |
$
|
139,449
|
$
|
79,409 | |||||
Washington
1
|
$
|
82,597 |
$
|
80,703
|
$
|
31,731 | |||||
California
|
16,327 |
20,848
|
11,571 | ||||||||
Texas
|
8,765 |
8,618
|
8,153 | ||||||||
Oregon
|
29,494 |
29,280
|
27,954 | ||||||||
Total
|
$
|
137,183 |
$
|
139,449
|
$
|
79,409 |
March 31, | December 31, | March 31, | ||||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
|||||||||
Equity
method investments in real estate affiliates
|
$
|
13,479
|
$
|
13,325
|
$ |
18,540
|
||||||
Equity
method investments in other affiliates
|
10,944
|
11,319
|
3,228
|
|||||||||
Total
equity method investments
|
|
24,423
|
|
24,644
|
|
21,768
|
||||||
Cost method investments | 6,400 | - | - | |||||||||
Total investments
in affiliates
|
$ | 30,823 | $ | 24,644 | $ | 21,768 |
March
31,
|
December
31,
|
March
31,
|
||||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
|||||||||
Residential
|
$ | 8,868 | $ | 8,759 | $ | 13,917 | ||||||
Commercial
|
4,611 | 4,566 | 4,623 | |||||||||
Total
|
$ | 13,479 | $ | 13,325 | $ | 18,540 | ||||||
Texas
|
$ | 13,479 | $ | 13,325 | $ | 13,366 | ||||||
Washington
|
- | - | 5,174 | |||||||||
Total
|
$ | 13,479 | $ | 13,325 | $ | 18,540 |
March
31,
|
December
31,
|
March
31,
|
||||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
|||||||||
Total
assets
|
$
|
160,356
|
$
|
169,325
|
$
|
194,117
|
||||||
Net
assets
|
83,310
|
84,939
|
90,439
|
|||||||||
Granite
’
s
share of net assets
|
24,423
|
24,644
|
21,768
|
9.
|
Property
and Equipment, net
|
March
31,
|
December
31,
|
March
31,
|
||||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
|||||||||
Land
and land improvements
|
$ | 134,386 | $ | 126,162 | $ | 121,662 | ||||||
Quarry
property
|
161,754 | 160,618 | 142,744 | |||||||||
Buildings
and leasehold improvements
|
97,155 | 96,725 | 97,507 | |||||||||
Equipment
and vehicles
|
816,322 | 829,195 | 856,041 | |||||||||
Office
furniture and equipment
|
41,574 | 38,096 | 35,662 | |||||||||
Property
and equipment
|
1,251,191 | 1,250,796 | 1,253,616 | |||||||||
Less:
accumulated depreciation and depletion
|
731,282 | 730,018 | 726,882 | |||||||||
Property
and equipment, net
|
$ | 519,909 | $ | 520,778 | $ | 526,734 |
10.
|
Intangible
Assets
|
March
31,
|
December
31,
|
March
31,
|
||||||||||
(in
thousands)
|
2010
|
2009
|
2009
|
|||||||||
Goodwill
1
|
$ | 9,900 | $ | 9,900 | $ | 9,900 | ||||||
Use
rights and other
|
1,319 | 1,319 | 2,954 | |||||||||
Total
unamortized intangible assets
|
$ | 11,219 | $ | 11,219 | $ | 12,854 |
March 31, 2010 |
Accumulated
|
|||||||||||
(in
thousands)
|
Gross
Value
|
Amortization
|
Net
Value
|
|||||||||
Permits
|
$ | 33,582 | $ | (5,568 | ) | $ | 28,014 | |||||
Trade
names
|
158 | (67 | ) | 91 | ||||||||
Covenants
not to compete
|
1,588 | (1,208 | ) | 380 | ||||||||
Customer
lists and other
|
3,122 | (2,000 | ) | 1,122 | ||||||||
Total
amortized intangible assets
|
$ | 38,450 | $ | (8,843 | ) | $ | 29,607 |
December 31,
2009
|
|
|
|
|||||||||
(in
thousands)
|
||||||||||||
Permits
|
$ | 33,582 | $ | (5,151 | ) | $ | 28,431 | |||||
Trade
names
|
158 | (59 | ) | 99 | ||||||||
Covenants
not to compete
|
1,588 | (1,106 | ) | 482 | ||||||||
Customer
lists and other
|
3,122 | (1,818 | ) | 1,304 | ||||||||
Total
amortized intangible assets
|
$ | 38,450 | $ | (8,134 | ) | $ | 30,316 |
March
31, 2009
|
|
|
|
|||||||||
(in
thousands)
|
||||||||||||
Permits
|
$ | 36,070 | $ | (4,145 | ) | $ | 31,925 | |||||
Trade
names
|
913 | (788 | ) | 125 | ||||||||
Covenants
not to compete
|
1,588 | (798 | ) | 790 | ||||||||
Customer
lists and other
|
3,725 | (1,875 | ) | 1,850 | ||||||||
Total
amortized intangible assets
|
$ | 42,296 | $ | (7,606 | ) | $ | 34,690 |
11.
|
Weighted
Average Shares
Outstanding
|
Three
Months Ended March 31,
|
|||
(in
thousands)
|
2010
|
2009
|
|
Weighted
average shares outstanding:
|
|||
Weighted
average common stock outstanding
|
38,667
|
38,330
|
|
Less:
weighted average unvested restricted stock outstanding
|
979
|
854
|
|
Total
basic weighted average shares outstanding
|
37,688
|
37,476
|
|
Diluted
weighted average shares outstanding:
|
|||
Weighted
average common stock outstanding, basic
|
37,688
|
37,476
|
|
Effect
of dilutive securities:
|
|||
Common
stock options and units
1
|
-
|
124
|
|
Total
weighted average shares outstanding assuming dilution
|
37,688
|
37,600
|
12.
|
Earnings
Per Share
|
Three
Months Ended March 31,
|
||||||||
(in
thousands, except per share amounts)
|
2010
|
2009
|
Basic | ||||||||
Numerator: | ||||||||
Net
(loss) income attributable to Granite
|
$ |
(40,954
|
) | $ | 8,920 | |||
Less:
net income allocated to participating securities
|
-
|
193 | ||||||
Net (loss)
income allocated to common shareholders for basic
calculation
|
$ |
(40,954
|
) | $ | 8,727 |
Denominator: | ||||||||
Weighted
average common shares outstanding
|
37,688
|
37,476
|
||||||
Net (loss)
income per share, basic
|
$ |
(1.09
|
) | $ | 0.23 |
Diluted | ||||||||
Numerator: | ||||||||
Net (loss)
income attributable to Granite
|
$ |
(40,954
|
) | $ |
8,920
|
|||
Less:
net income allocated to participating securities
|
-
|
192 | ||||||
Net
(loss) income allocated to common shareholders for diluted
calculation
|
$ |
(40,954
|
) | $ | 8,728 |
Denominator: | ||||||||
Weighted
average common shares outstanding
|
37,688
|
37,600
|
||||||
Net (loss)
income per share, diluted
|
$ |
(1.09
|
) | $ | 0.23 |
13.
|
Equity
and Other Comprehensive (Loss)
Income
|
|
The
following tables summarize our equity activity for the periods
presented:
|
(in
thousands)
|
Granite
Construction Incorporated
|
Noncontrolling
Interests
|
Total
Equity
|
||||||||
Balance
at December 31, 2009
|
$ | 830,651 | $ | 51,905 | $ | 882,556 | |||||
Purchase of common
stock
1
|
(3,296 | ) |
-
|
(3,296 | ) | ||||||
Other
transactions with shareholders
|
2,353 | - | 2,353 | ||||||||
Transactions
with noncontrolling interests, net
3
|
- | (11,705 | ) | (11,705 | ) | ||||||
Comprehensive
(loss) income:
|
|||||||||||
Net
(loss) income
|
(40,954 | ) | 3,224 | (37,730 | ) | ||||||
Total
comprehensive (loss) income
|
(40,954 | ) | 3,224 | (37,730 | ) | ||||||
Dividends on common stock | (5,044 | ) | - | (5,044 | ) | ||||||
Balance
at March 31, 2010
|
$ | 783,710 | $ | 43,424 | $ | 827,134 |
(in
thousands)
|
|
|
|
Balance
at December 31, 2008
|
$
|
767,509
|
$ |
36,773
|
$
|
804,282
|
|||||
Purchase
of common stock
2
|
(2,017
|
)
|
-
|
(2,017
|
)
|
||||||
Other
transactions with shareholders
|
5,144
|
-
|
5,144
|
||||||||
Transactions
with noncontrolling interests, net
3
|
-
|
(2,975
|
) |
(2,975
|
) | ||||||
Comprehensive
income:
|
|||||||||||
Net
income
|
8,920
|
5,067
|
13,987
|
||||||||
Other
comprehensive income
|
146
|
|
-
|
146
|
|
||||||
Total
comprehensive income
|
9,066
|
5,067
|
14,133
|
||||||||
Dividends
on common stock
|
(5,028
|
)
|
-
|
(5,028
|
)
|
||||||
Balance
at March 31, 2009
|
$
|
774,674
|
$ |
38,865
|
$
|
813,539
|
|
The
components of other comprehensive income are as
follows:
|
Three
Months Ended March 31,
|
|||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Changes
in unrealized gain on investments
|
$ | - | $ | 238 | |||||
Tax
provision on unrealized loss
|
- | (92 | ) | ||||||
Total
other comprehensive income
|
$ | - | $ | 146 |
14.
|
Legal
Proceedings
|
15.
|
Business
Segment Information
|
Three
Months Ended March 31,
|
||||||||||||||||||||
(in
thousands)
|
Construction
|
Large
Project Construction
|
Construction Materials |
Real
Estate
|
Total
|
|||||||||||||||
2010
|
||||||||||||||||||||
Total
revenue from reportable segments
|
$ | 81,217 | $ | 106,325 | $ | 33,720 | $ | 7,008 | $ | 228,270 | ||||||||||
Elimination
of intersegment revenue
|
(31 | ) | - | (7,556 | ) | - | (7,587 | ) | ||||||||||||
Revenue
from external customers
|
81,186 | 106,325 | 26,164 | 7,008 | 220,683 | |||||||||||||||
Gross
profit (loss)
|
1,846 | 9,483 | (7,125 | ) | 1,510 | 5,714 | ||||||||||||||
Depreciation,
depletion and amortization
|
5,516 | 927 | 8,100 | 191 | 14,734 | |||||||||||||||
Segment
assets
|
142,150 | 80,960 | 385,431 | 160,610 | 769,151 | |||||||||||||||
2009
|
||||||||||||||||||||
Total
revenue from reportable segments
|
$ | 168,079 | $ | 149,060 | $ | 38,852 | $ | 417 | $ | 356,408 | ||||||||||
Elimination
of intersegment revenue
|
(30 | ) | - | (9,006 | ) | - | (9,036 | ) | ||||||||||||
Revenue
from external customers
|
168,049 | 149,060 | 29,846 | 417 | 347,372 | |||||||||||||||
Gross
profit (loss)
|
35,176 | 33,664 | (314 | ) | 210 | 68,736 | ||||||||||||||
Depreciation,
depletion and amortization
|
7,781 | 1,594 | 7,666 | 176 | 17,217 | |||||||||||||||
Segment
assets
|
153,626 | 58,086 | 396,409 | 98,768 | 706,889 |
Three
Months Ended March 31,
|
|||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Total
gross profit for reportable segments
|
$ | 5,714 | $ | 68,736 | |||||
Selling, general and administrative expenses | 55,292 | 54,355 | |||||||
Gain on sales of property and equipment | 4,452 | 2,521 | |||||||
Other
(expense) income
|
(217 | ) | 1,914 | ||||||
(Loss)
income before provision for income taxes
|
$ | (45,343 | ) | $ | 18,816 |
Comparative
Financial Summary
|
Three
Months Ended March 31,
|
||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Total
revenue
|
$ | 220,683 | $ | 347,372 | |||||
Gross
profit
|
5,714 | 68,736 | |||||||
Operating
(loss) income
|
(45,126 | ) | 16,902 | ||||||
Other
(expense) income, net
|
(217 | ) | 1,914 | ||||||
(Benefit from) provision for income taxes | (7,613 | ) | 4,829 | ||||||
Amount attributable
to noncontrolling interest
|
(3,224 | ) | (5,067 | ) | |||||
Net
(loss) income attributable to Granite
|
(40,954 | ) | 8,920 |
Total Revenue by Segment |
Three
Months Ended March 31,
|
||||||||||||||
(dollars
in thousands)
|
2010
|
2009
|
|||||||||||||
Construction
|
$ | 81,186 | 36.7 | % | $ | 168,049 | 48.4 | % | |||||||
Large
Project Construction
|
106,325 | 48.2 | 149,060 | 42.9 | |||||||||||
Construction
Materials
|
26,164 | 11.9 | 29,846 | 8.6 | |||||||||||
Real
Estate
|
7,008 | 3.2 | 417 | 0.1 | |||||||||||
Total
|
$ | 220,683 | 100.0 | % | $ | 347,372 | 100.0 | % |
Construction Revenue |
Three
Months Ended March 31,
|
||||||||||||||
(dollars
in thousands)
|
2010
|
2009
|
|||||||||||||
California:
|
|||||||||||||||
Public
sector
|
$ | 32,543 | 40.2 | % | $ | 72,811 | 43.3 |
%
|
|||||||
Private
sector
|
7,232 | 8.9 | 9,970 | 5.9 | |||||||||||
West,
excluding California:
|
|||||||||||||||
Public
sector
|
22,433 | 27.6 | 40,461 | 24.1 | |||||||||||
Private
sector
|
690 | 0.8 | 4,819 | 2.9 | |||||||||||
East:
|
|||||||||||||||
Public
sector
|
17,081 | 21.0 | 38,299 | 22.8 | |||||||||||
Private
sector
|
1,207 | 1.5 | 1,689 | 1.0 | |||||||||||
Total
|
$ | 81,186 | 100.0 | % | $ | 168,049 | 100.0 | % |
Large Project Construction Revenue 1 |
Three
Months Ended March 31,
|
||||||||||||||
(dollars
in thousands)
|
2010
|
2009
|
|||||||||||||
California
|
$ | 11,986 | 11.3 | % | $ | 10,796 | 7.2 |
%
|
|||||||
West,
excluding California
|
5,763 | 5.4 | 6,638 | 4.5 | |||||||||||
East
|
88,576 | 83.3 | 131,626 | 88.3 | |||||||||||
Total
|
$ | 106,325 | 100.0 | % | $ | 149,060 | 100.0 | % |
Construction Materials Revenue |
Three
Months Ended March 31,
|
||||||||||||||
(dollars
in thousands)
|
2010
|
2009
|
|||||||||||||
California
|
$ | 20,462 | 78.2 | % | $ | 20,563 | 68.9 | % | |||||||
West,
excluding California
|
2,650 | 10.1 | 4,727 | 15.8 | |||||||||||
East | 3,052 | 11.7 | 4,556 | 15.3 | |||||||||||
Total
|
$ | 26,164 | 100.0 | % | $ | 29,846 | 100.0 | % |
Total
Contract Backlog by Segment
|
|
|
||||||||||||||||||||||
(dollars
in thousands)
|
March
31, 2010
|
December
31, 2009
|
March
31, 2009
|
|||||||||||||||||||||
Construction
|
$ | 487,751 | 30.9 | % | $ | 359,360 | 25.6 | % | $ | 587,076 | 37.4 | % | ||||||||||||
Large
Project Construction
|
1,091,251 | 69.1 | 1,042,628 | 74.4 | 982,998 | 62.6 | ||||||||||||||||||
Total
|
$ | 1,579,002 | 100.0 | % | $ | 1,401,988 | 100.0 | % | $ | 1,570,074 | 100.0 | % |
Construction Contract
Backlog
|
|
|
|
|||||||||||||||||||||
(dollars
in thousands)
|
March
31, 2010
|
December
31, 2009
|
March
31, 2009
|
|||||||||||||||||||||
California:
|
||||||||||||||||||||||||
Public
sector
|
$ | 176,919 | 36.2 | % | $ | 150,873 | 42.0 | % | $ | 261,062 | 44.4 | % | ||||||||||||
Private
sector
|
6,602 | 1.4 | 7,608 | 2.1 | 19,380 | 3.3 | ||||||||||||||||||
West,
excluding California:
|
||||||||||||||||||||||||
Public
sector
|
222,767 | 45.7 | 125,439 | 34.9 | 233,526 | 39.8 | ||||||||||||||||||
Private
sector
|
4,934 | 1.0 | 4,562 | 1.3 | 7,914 | 1.3 | ||||||||||||||||||
East:
|
||||||||||||||||||||||||
Public
sector
|
75,042 | 15.4 | 68,902 | 19.2 | 61,945 | 10.6 | ||||||||||||||||||
Private
sector
|
1,487 | 0.3 | 1,976 | 0.5 | 3,249 | 0.6 | ||||||||||||||||||
Total
|
$ | 487,751 | 100.0 | % | $ | 359,360 | 100.0 | % | $ | 587,076 | 100.0 | % |
Large
Project Construction Contract Backlog
1
|
|
|
||||||||||||||||||||||
(dollars
in thousands)
|
March
31, 2010
|
December
31, 2009
|
March
31, 2009
|
|||||||||||||||||||||
California
|
$ | 40,842 | 3.7 | % | $ | 50,755 | 4.9 | % | $ | 93,558 | 9.5 | % | ||||||||||||
West,
excluding California
|
61,907 | 5.7 | 62,250 | 6.0 | 103,653 | 10.6 | ||||||||||||||||||
East
|
988,502 | 90.6 | 929,623 | 89.1 | 785,787 | 79.9 | ||||||||||||||||||
Total
|
$ | 1,091,251 | 100.0 | % | $ | 1,042,628 | 100.0 | % | $ | 982,998 | 100.0 | % |
|
Three
Months Ended March 31,
|
|||||||||
(dollars
in thousands)
|
2010
|
2009
|
||||||||
Construction
|
$
|
1,846
|
$
|
35,176
|
||||||
Percent
of segment revenue
|
2.3 |
%
|
20.9
|
%
|
||||||
Large
Project Construction
|
$
|
9,483
|
$
|
33,664
|
||||||
Percent
of segment revenue
|
8.9
|
%
|
22.6
|
%
|
||||||
Construction
Materials
|
$ | (7,125 | ) | $ | (314 | ) | ||||
Percent
of segment revenue
|
-27.2 | % | -1.1 | % | ||||||
Real
Estate
|
$
|
1,510
|
$
|
210
|
||||||
Percent
of segment revenue
|
21.5
|
%
|
50.4
|
%
|
||||||
Total
gross profit
|
$
|
5,714
|
$
|
68,736
|
||||||
Percent
of total revenue
|
2.6 |
%
|
19.8
|
%
|
|
Three
Months Ended March 31,
|
||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Construction
|
$ | 6,158 | $ | 18,104 | |||||
Large
Project Construction
|
34,945 | 4,651 | |||||||
Total
revenue from contracts with deferred profit
|
$ | 41,103 | $ | 22,755 |
|
Three
Months Ended March 31,
|
||||||||
(dollars
in thousands)
|
2010
|
2009
|
|||||||
Selling | |||||||||
Salaries
and related expenses
|
$ | 13,770 | $ | 12,356 | |||||
Other
selling expenses
|
2,776 | 3,476 | |||||||
Total selling
|
$ | 16,546 | $ | 15,832 | |||||
General
and administrative
|
|||||||||
Salaries
and related expenses
|
$ | 20,700 | $ | 20,881 | |||||
Incentive
compensation, discretionary profit sharing and other variable
compensation
|
3,458 | 5,523 | |||||||
Provision
for (recovery of) doubtful accounts, net
|
508 | (2,723 | ) | ||||||
Other
general and administrative expenses
|
14,080 | 14,842 | |||||||
Total general
and administrative
|
$ | 38,746 | $ | 38,523 | |||||
Total
|
$ | 55,292 | $ | 54,355 | |||||
Percent
of revenue
|
25 .1 | % | 15.6 | % |
|
Three
Months Ended March 31,
|
||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Interest
income
|
$ | 939 | $ | 2,061 | |||||
Interest
expense
|
(3,734 | ) | (3,488 | ) | |||||
Equity
in loss of affiliates
|
(319 | ) | (444 | ) | |||||
Other
income, net
|
2,897 | 3,785 | |||||||
Total
other (expense) income
|
$ | (217 | ) | $ | 1,914 |
|
Three
Months Ended March 31,
|
|||||||||
(dollars
in thousands)
|
2010
|
2009
|
||||||||
(Benefit
from) provision for income taxes
|
$ | (7,613 | ) | $ | 4,829 | |||||
Effective
tax rate
|
16.8 | % | 25.7 | % |
|
Three
Months Ended March 31,
|
||||||||
(in
thousands)
|
2010
|
2009
|
|||||||
Amount attributable
to noncontrolling interest
s
|
$ | ( 3,224 | ) | $ | (5,067 | ) |
March
31,
|
|||||||||
(in
thousands)
|
2010 |
2009
|
|||||||
Cash
and cash equivalents excluding consolidated joint ventures
|
$ | 122,827 | $ | 269,740 | |||||
Consolidated
joint venture cash and cash equivalents
|
99,268 | 120,743 | |||||||
Total
consolidated cash and cash equivalents
|
222,095 | 390,483 | |||||||
Short-term
and long-term marketable securities
1
|
167,403 | 68,663 | |||||||
Total
cash, cash equivalents and marketable securities
|
$ | 389,498 | $ | 459,146 |
Item
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
Item
4.
|
CONTROLS
AND
PROCEDURES
|
Item
1.
|
LEGAL
PROCEEDINGS
|
Item
1
A
.
|
RISK
FACTORS
|
Item
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
Item
3.
|
DEFAULTS
UPON SENIOR
SECURITIES
|
Item
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
Item
5.
|
OTHER
INFORMATION
|
Item
6.
|
10.1 | ||
†
|
Filed
herewith
|
|
††
|
Furnished
herewith
|
GRANITE
CONSTRUCTION INCORPORATED
|
|||||
Date:
|
May
4
,
2010
|
By:
|
/s/
LeAnne M. Stewart
|
||
LeAnne
M. Stewart
|
|||||
Senior
Vice President and Chief Financial 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(s) 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 15d-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 (the registrant’s fourth fiscal quarter in the case of an
annual report) 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(s) 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 the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
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: May
4, 2010
|
/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(s) 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 15d-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 (the registrant’s fourth fiscal quarter in the case of an
annual report) 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(s) 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 the registrant’s
board of directors (or persons performing the equivalent
functions):
|
|
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: May
4, 2010
|
/s/
LeAnne M. Stewart
|
LeAnne
M. Stewart
|
|
Senior
Vice President
|
|
and
Chief Financial Officer
|
Dated: May
4, 2010
Dated: May
4, 2010
|
/s/
William G. Dorey
|
William
G. Dorey
|
|
President
and Chief Executive Officer
/s/
LeAnne M. Stewart
|
|
LeAnne
M. Stewart
|
|
Senior
Vice President
|
|
and
Chief Financial Officer
|