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
|
38,640,740
shares
|
EXIHIBT 10.1 | |||
EXHIBIT 101.INS
|
|||
EXHIBIT 101.SCH
|
|||
EXHIBIT 101.CAL
|
|||
EXHIBIT 101.LAB
|
|||
EXHIBIT 101.PRE
|
GRANITE
CONSTRUCTION
INCORPORATED
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(Unaudited - in thousands, except share and per share data)
|
||||||||||||
March 31,
|
December 31,
|
March 31,
|
||||||||||
2011
|
2010
|
2010
|
||||||||||
ASSETS
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
$ | 240,768 | $ | 252,022 | $ | 222,095 | ||||||
Short-term marketable securities
|
83,084 | 109,447 | 76,963 | |||||||||
Receivables, net
|
170,441 | 243,986 | 197,658 | |||||||||
Costs and estimated earnings in excess of billings
|
33,302 | 10,519 | 33,445 | |||||||||
Inventories
|
56,899 | 51,018 | 49,483 | |||||||||
Real estate held for development and sale
|
77,128 | 75,716 | 137,183 | |||||||||
Deferred income taxes
|
52,583 | 53,877 | 31,150 | |||||||||
Equity in construction joint ventures
|
78,773 | 74,716 | 71,693 | |||||||||
Other current assets
|
44,059 | 42,555 | 56,033 | |||||||||
Total current assets
|
837,037 | 913,856 | 875,703 | |||||||||
Property and equipment, net
|
468,929 | 473,607 | 519,909 | |||||||||
Long-term marketable securities
|
46,251 | 34,259 | 90,440 | |||||||||
Investments in affiliates
|
28,893 | 31,410 | 30,823 | |||||||||
Other noncurrent assets
|
83,478 | 82,401 | 80,371 | |||||||||
Total assets
|
$ | 1,464,588 | $ | 1,535,533 | $ | 1,597,246 | ||||||
LIABILITIES AND EQUITY
|
||||||||||||
Current liabilities
|
||||||||||||
Current maturities of long-term debt
|
$ | 8,351 | $ | 8,359 | $ | 8,350 | ||||||
Current maturities of non-recourse debt
|
17,740 | 29,760 | 40,565 | |||||||||
Accounts payable
|
94,688 | 129,700 | 100,102 | |||||||||
Billings in excess of costs and estimated earnings
|
113,347 | 120,185 | 142,935 | |||||||||
Accrued expenses and other current liabilities
|
144,584 | 150,773 | 156,374 | |||||||||
Total current liabilities
|
378,710 | 438,777 | 448,326 | |||||||||
Long-term debt
|
216,852 | 217,014 | 225,203 | |||||||||
Long-term non-recourse debt | 30,454 | 25,337 | 16,895 | |||||||||
Other long-term liabilities
|
47,943 | 47,996 | 52,471 | |||||||||
Deferred income taxes
|
11,048 | 10,774 | 27,217 | |||||||||
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 38,634,470 shares as of March 31, 2011,
38,745,542
shares as of December 31, 2010 and 38,801,232 shares as of March 31, 2010
|
386 | 387 | 388 | |||||||||
Additional paid-in capital
|
102,548 | 104,232 | 93,688 | |||||||||
Retained earnings
|
642,354 | 656,412 | 689,634 | |||||||||
Total Granite Construction Incorporated shareholders’ equity
|
745,288 | 761,031 | 783,710 | |||||||||
Noncontrolling interests
|
34,293 | 34,604 | 43,424 | |||||||||
Total equity
|
779,581 | 795,635 | 827,134 | |||||||||
Total liabilities and equity
|
$ | 1,464,588 | $ | 1,535,533 | $ | 1,597,246 |
GRANITE
CONSTRUCTION
INCORPORATED
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(Unaudited - in thousands, except per share data)
|
||||||||
Three Months Ended March 31, |
2011
|
2010
|
||||||
Revenue
|
||||||||
Construction
|
$ | 92,692 | $ | 81,186 | ||||
Large project construction
|
137,820 | 106,325 | ||||||
Construction materials
|
23,798 | 26,164 | ||||||
Real estate
|
2,421 | 7,008 | ||||||
Total revenue
|
256,731 | 220,683 | ||||||
Cost of revenue
|
||||||||
Construction
|
87,139 | 79,340 | ||||||
Large project construction
|
106,522 | 96,842 | ||||||
Construction materials
|
31,068 | 33,289 | ||||||
Real estate
|
2,014 | 5,498 | ||||||
Total cost of revenue
|
226,743 | 214,969 | ||||||
Gross profit
|
29,988 | 5,714 | ||||||
Selling, general and administrative expenses
|
43,372 | 55,292 | ||||||
Gain on sales of property and equipment
|
2,704 | 4,452 | ||||||
Operating loss
|
(10,680 | ) | (45,126 | ) | ||||
Other income (expense)
|
||||||||
Interest income
|
1,244 | 939 | ||||||
Interest expense
|
(3,356 | ) | (3,734 | ) | ||||
Equity
in loss
of affiliates
|
(257 | ) | (319 | ) | ||||
Other income, net
|
570 | 2,897 | ||||||
Total other expense
|
(1,799 | ) | (217 | ) | ||||
Loss before benefit from income taxes
|
(12,479 | ) | (45,343 | ) | ||||
Benefit from income taxes
|
(5,223 | ) | (7,613 | ) | ||||
Net loss
|
(7,256 | ) | (37,730 | ) | ||||
Amount attributable to noncontrolling interests
|
(1,751 | ) | (3,224 | ) | ||||
Net loss attributable to Granite Construction Incorporated
|
$ | (9,007 | ) | $ | (40,954 | ) | ||
Net loss per share attributable to common shareholders
(see Note 13
)
|
||||||||
Basic
|
$ | (0.24 | ) | $ | (1.09 | ) | ||
Diluted
|
$ | (0.24 | ) | $ | (1.09 | ) | ||
Weighted average shares of common stock
|
||||||||
Basic
|
37,963 | 37,688 | ||||||
Diluted
|
37,963 | 37,688 | ||||||
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,
|
2011
|
2010
|
||||||
Operating activities
|
||||||||
Net loss
|
$ | (7,256 | ) | $ | (37,730 | ) | ||
Adjustments to reconcile net loss to net cash provided by (
used in)
operating activities:
|
||||||||
Depreciation, depletion and amortization
|
15,291 | 18,662 | ||||||
Gain on sales of property and equipment
|
(2,704 | ) | (4,452 | ) | ||||
Change in deferred income taxes
|
1,568 | (119 | ) | |||||
Stock-based compensation
|
3,149 | 3,158 | ||||||
Gain on company owned life insurance
|
(550 | ) | (1,829 | ) | ||||
Changes in assets and liabilities, net of the effects of consolidations:
|
||||||||
Receivables
|
76,415 | 81,308 | ||||||
Inventories
|
(5,881 | ) | (3,683 | ) | ||||
Real estate held for development and sale
|
(1,715 | ) | (1,687 | ) | ||||
Equity in construction joint ventures
|
(4,057 | ) | (4,631 | ) | ||||
Other assets, net
|
(1,105 | ) | (4,732 | ) | ||||
Accounts payable
|
(35,012 | ) | (31,469 | ) | ||||
Accrued expenses and other liabilities, net
|
(7,846 | ) | (1,218 | ) | ||||
Billings in excess of costs and estimated earnings, net
|
(29,621 | ) | (35,932 | ) | ||||
Net cash provided by (
used in)
operating activities
|
676 | (24,354 | ) | |||||
Investing activities
|
||||||||
Purchases of marketable securities
|
(27,341 | ) | (47,511 | ) | ||||
Maturities of marketable securities
|
24,000 | - | ||||||
Proceeds from sale of marketable securities
|
14,268 | - | ||||||
Additions to property and equipment
|
(11,760 | ) | (14,712 | ) | ||||
Proceeds from sales of property and equipment
|
4,623 | 5,674 | ||||||
Purchase of private preferred stock
|
- | (6,400 | ) | |||||
Distributions from affiliates
|
1,325 | - | ||||||
Other investing activities, net
|
(104 | ) | (453 | ) | ||||
Net cash provided by (
used in)
investing activities
|
5,011 | (63,402 | ) | |||||
Financing activities
|
||||||||
Proceeds from long-term debt
|
906 | 53 | ||||||
Long-term debt principal payments
|
(7,235 | ) | (8,739 | ) | ||||
Cash dividends paid
|
(5,038 | ) | (5,023 | ) | ||||
Purchase of common stock
|
(3,515 | ) | (3,296 | ) | ||||
Distributions to noncontrolling partners, net
|
(2,062 | ) | (12,103 | ) | ||||
Other financing activities
|
3 | 3 | ||||||
Net cash
used in
financing activities
|
(16,941 | ) | (29,105 | ) | ||||
Decrease
in cash and cash equivalents
|
(11,254 | ) | (116,861 | ) | ||||
Cash and cash equivalents at beginning of period
|
252,022 | 338,956 | ||||||
Cash and cash equivalents at end of period
|
$ | 240,768 | $ | 222,095 |
Supplementary Information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 936 | $ | 1,576 | ||||
Income taxes
|
33 | 66 | ||||||
Non-cash investing and financing activities:
|
||||||||
Restricted stock/units issued, net of forfeitures
|
$ | 3,964 | $ | 6,734 | ||||
Accrued cash dividends
|
5,023 | 5,044 | ||||||
Debt payments from sale of assets
|
837 | 4,075 |
1.
|
Basis of Presentation
|
2.
|
Revisions in Estimates
|
Three Months Ended March 31,
|
|||||||
(dollars in millions)
|
2011
|
2010
|
|||||
Number of projects with upward estimate changes
|
3
|
1
|
|||||
Range of increase in gross profit from each project, net
|
$
|
1.0 - 4.2
|
$
|
3.2
|
|||
Increase on project profitability
|
$
|
8.8
|
$
|
3.2
|
Three Months Ended March 31,
|
|||||||
(dollars in millions)
|
2011
|
2010
|
|||||
Number of projects with downward estimate changes
|
1
|
3
|
|||||
Range of reduction in gross profit from each project, net
|
$
|
2.9
|
$
|
1.1 - 2.9
|
|||
Decrease on project profitability
|
$
|
2.9
|
|
$
|
6.0
|
|
3.
|
Marketable Securities
|
March 31, 2011
|
Held-to-Maturity
|
Trading
|
Total
|
|||||||||
U.S. Government and agency obligations
|
$ | 48,240 | $ | - | $ | 48,240 | ||||||
Commercial paper | 19,986 | - | 19,986 | |||||||||
Municipal bonds
|
|
9,825
|
|
-
|
|
9,825
|
||||||
Corporate bonds
|
5,033
|
-
|
5,033
|
|||||||||
Total short-term marketable securities
|
83,084
|
-
|
83,084
|
|||||||||
U.S. Government and agency obligations
|
39,415
|
-
|
39,415
|
|||||||||
Municipal bonds
|
3,625
|
-
|
3,625
|
|||||||||
Corporate bonds | 3,211 | - | 3,211 | |||||||||
Total long-term marketable securities
|
46,251
|
-
|
46,251
|
|||||||||
Total marketable securities
|
$
|
129,335
|
$
|
-
|
$
|
129,335
|
December 31, 2010
|
||||||||||||
U.S. Government and agency obligations
|
$
|
40,047
|
$
|
-
|
$
|
40,047
|
||||||
Commercial paper | 33,971 | - | 33,971 | |||||||||
Municipal bonds
|
10,896
|
-
|
10,896
|
|||||||||
Corporate bonds | 10,122 | - | 10,122 | |||||||||
Equity securities - mutual funds
|
-
|
14,411
|
14,411
|
|||||||||
Total short-term marketable securities
|
95,036
|
14,411
|
109,447
|
|||||||||
U.S. Government and agency obligations
|
30,618
|
-
|
30,618
|
|||||||||
Municipal bonds
|
3,641
|
-
|
3,641
|
|||||||||
Total long-term marketable securities
|
34,259
|
-
|
34,259
|
|||||||||
Total marketable securities
|
$
|
129,295
|
$
|
14,411
|
$
|
143,706
|
March 31, 2010
|
||||||||||||
U.S. Government and agency obligations
|
$
|
16,471
|
$
|
-
|
$
|
16,471 | ||||||
Commercial paper | 34,979 | - | 34,979 | |||||||||
Municipal bonds
|
20,975
|
-
|
20,975 | |||||||||
Equity securities - 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 |
March 31, 2011 | ||||
Due within one year
|
$
|
83,084
|
||
Due in one to five years
|
46,251
|
|||
Total
|
$
|
129,335
|
4.
|
Fair Value Measurement
|
March 31, 2011 |
Fair Value Measurement at Reporting Date Using
|
|||||||||||
(in thousands)
|
Level 1
1
|
Level 2
2
|
Level 3
3
|
Total
|
||||||||
Cash equivalents | ||||||||||||
Money market funds
|
$
|
197,714
|
$
|
-
|
$
|
-
|
$
|
197,714
|
||||
Total
|
$ | 197,714 | $ | - | $ | - | $ |
197,714
|
December 31, 2010
|
||||||||||||
(in thousands)
|
||||||||||||
Cash equivalents | ||||||||||||
Money market funds
|
$ | 226,009 | $ | - | $ | - | $ | 226,009 | ||||
Trading securities | ||||||||||||
Debt securities - mutual funds
|
14,411 | - | - | 14,411 | ||||||||
Total
|
$ | 240,420 | $ | - | $ | - | $ | 240,420 |
March 31, 2010
|
|
|
|
|
||||||||
(in thousands)
|
||||||||||||
Cash equivalents | ||||||||||||
Money market funds
|
$ |
184,754
|
$ | - | $ | - | $ |
184,754
|
||||
Trading securities | ||||||||||||
Debt securities - mutual funds
|
4,538 | - | - | 4,538 | ||||||||
Total
|
$ |
189,292
|
$ | - | $ | - | $ |
189,292
|
March 31,
|
December 31,
|
March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
2010 | |||||||
Money market funds
|
$ | 197,714 | $ | 226,009 | $ | 184,754 | ||||
Held-to-maturity commercial paper | 14,993 | 4,999 | 16,999 | |||||||
Cash
|
|
28,061 |
|
21,014
|
20,342 | |||||
Total cash and cash equivalents
|
$ | 240,768 | $ | 252,022 | $ | 222,095 |
March 31,
|
December 31,
|
March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
2010 | |||||||
Carrying amount
|
||||||||||
Senior notes payable
|
$
|
225,000
|
$
|
225,000
|
$ | 233,333 | ||||
Fair value
|
||||||||||
Senior notes payable
|
$
|
246,910
|
$
|
245,911
|
$ | 248,809 |
5.
|
Receivables, net
|
March 31, |
December 31,
|
March 31, | ||||||||
(in thousands)
|
2011
|
2010
|
2010 | |||||||
Construction contracts:
|
||||||||||
Completed and in progress
|
$
|
69,095
|
$
|
121,664
|
$ |
75,021
|
||||
Retentions
|
77,523
|
96,333
|
91,799 | |||||||
Total construction contracts
|
146,618
|
217,997
|
166,820
|
|||||||
Construction material sales
|
13,964
|
17,674
|
19,074 | |||||||
Other
|
13,024
|
11,612
|
15,340 | |||||||
Total gross receivables
|
173,606
|
247,283
|
201,234 | |||||||
Less: allowance for doubtful accounts
|
3,165
|
|
3,297
|
|
3,576
|
|||||
Total net receivables
|
$
|
170,441
|
$
|
243,986
|
$ |
197,658
|
●
|
Federal – includes federal agencies such as the Bureau of Reclamation, the Army Corp of Engineers, and the Bureau of Indian Affairs. The obligations of these agencies are backed by the federal government. Consequently there is minimal risk of not collecting the amounts we are entitled to receive.
|
●
|
State – primarily state departments of transportation. The risk of not collecting on these accounts is small; however, we have experienced occasional delays in payment as states have struggled with budget issues
.
|
●
|
Local – these customers include local agencies such as cities, counties and other local municipalities. The risk of not collecting on these accounts is small; however, we have experienced occasional delays in payment as some local agencies have struggled to deal with budget issues
.
|
●
|
Private – includes individuals, developers and corporations. The majority of our collection risk is associated with these customers. We perform ongoing credit evaluations of our customers and generally do not require collateral, although the law provides us the ability to file mechanics’ liens on real property improved for private customers in the event of non-payment by such customers
.
|
March 31, | December 31, | March 31, | ||||||||
(in thousands)
|
2011
|
2010
|
2010 | |||||||
Federal
|
$
|
3,587 |
$
|
3,080
|
$ | 1,050 | ||||
State
|
7,994 |
9,507
|
10,691 | |||||||
Local
|
21,476 |
29,451
|
24,578 | |||||||
Private
|
9,521 |
10,454
|
11,135 | |||||||
Total
|
$
|
42,578 |
$
|
52,492
|
$ | 47,454 |
March 31, 2011
|
Current
|
0 - 90 Days
Past Due
|
Over 90 Days
Past Due
|
Total
|
|||||||||
Federal
|
$
|
2,690 |
$
|
666 |
$
|
231 |
$
|
3,587 | |||||
State
|
6,177 | 600 | 1,217 | 7,994 | |||||||||
Local
|
16,698 | 2,426 | 2,352 | 21,476 | |||||||||
Private
|
8,783 | 315 | 423 | 9,521 | |||||||||
Total
|
$
|
34,348 |
$
|
4,007 |
$
|
4,223 |
$
|
42,578 |
December 31, 2010
|
Current
|
0 - 90 Days
Past Due
|
Over 90 Days
Past Due
|
Total
|
|||||||||
Federal
|
$
|
2,587
|
$
|
174
|
$
|
319
|
$
|
3,080
|
|||||
State
|
4,443
|
628
|
4,436
|
9,507
|
|||||||||
Local
|
22,641
|
2,800
|
4,010
|
29,451
|
|||||||||
Private
|
9,243
|
175
|
1,036
|
10,454
|
|||||||||
Total
|
$
|
38,914
|
$
|
3,777
|
$
|
9,801
|
$
|
52,492
|
March 31, 2010
|
Current
|
0 - 90 Days
Past Due
|
Over 90 Days
Past Due
|
Total
|
|||||||||
Federal
|
$
|
506 |
$
|
174 |
$
|
370 |
$
|
1,050 | |||||
State
|
8,964 |
924
|
803 | 10,691 | |||||||||
Local
|
15,411 | 7,494 | 1,673 | 24,578 | |||||||||
Private
|
9,319 | 720 | 1,096 | 11,135 | |||||||||
Total
|
$
|
34,200 |
$
|
9,312 |
$
|
3,942 |
$
|
47,454 |
6.
|
Construction and Line Item Joint Ventures
|
March 31, | December 31, | March 31, | ||||||||
(in thousands)
|
2011 | 2010 | 2010 | |||||||
Cash and cash equivalents | $ | 107,978 | $ | 109,380 | $ | 99,268 | ||||
Other current assets 1 | 26,666 | 50,344 | 38,588 | |||||||
Total current assets
|
134,644 | 159,724 |
137,856
|
|||||||
Noncurrent assets
|
6,686 | 2,561 | 948 | |||||||
Total assets
2
|
$ | 141,330 | $ | 162,285 | $ |
138,804
|
||||
Accounts payable | $ | 25,952 | $ | 33,078 | $ | 20,506 | ||||
Billings in excess of costs and estimated earnings | 40,413 | 46,475 | 64,779 | |||||||
Accrued expenses and other current liabilities | 8,526 | 11,633 | 11,475 | |||||||
Total current liabilities
|
74,891 | 91,186 | 96,760 | |||||||
Noncurrent liabilities
|
1
|
3 | 4 | |||||||
Total liabilities
2
|
$ | 74,892 | $ | 91,189 | $ |
96,764
|
March 31, | December 31, | March 31, | ||||||||
(in thousands)
|
2011
|
2010
|
2010 | |||||||
Assets:
|
||||||||||
Total
|
$
|
535,235
|
$
|
531,319
|
$ | 353,203 | ||||
Less partners’ interest
|
325,454
|
324,485
|
218,680 | |||||||
Granite’s interest
|
209,781
|
206,834
|
134,523
|
|||||||
Liabilities:
|
||||||||||
Total
|
363,681
|
364,253
|
193,350
|
|||||||
Less partners’ interest
|
232,673
|
232,135
|
130,520 | |||||||
Granite’s interest
|
131,008
|
132,118
|
62,830 | |||||||
Equity in construction joint ventures
|
$
|
78,773
|
$
|
74,716
|
$ | 71,693 |
Three Months Ended March 31,
|
|||||||
(in thousands)
|
2011
|
2010
|
|||||
Revenue:
|
|||||||
Total
|
$
|
199,768
|
$
|
121,806
|
|||
Less partners’ interest
1
|
126,346
|
87,760
|
|||||
Granite’s interest
|
73,422
|
34,046
|
|||||
Cost of revenue:
|
|||||||
Total
|
150,880
|
109,175
|
|||||
Less partners’ interest
1
|
101,864
|
74,487
|
|||||
Granite’s interest
|
49,016
|
34,688
|
|||||
Granite’s interest in gross profit (loss)
|
$
|
24,406
|
$
|
(642
|
) |
7.
|
Real Estate Entities and Investments in Affiliates
|
March 31, | December 31, | March 31, | ||||||||
(
in
thousands
)
|
2011 | 2010 | 2010 | |||||||
Real estate held for development and sale | $ | 77,128 | $ | 75,716 | $ | 137,183 | ||||
Other current assets
|
3,521 | 2,453 |
4,565
|
|||||||
Total current assets
|
80,649 | 78,169 | 141,748 | |||||||
Property and equipment, net | 3,283 | 3,771 | 15,090 | |||||||
Other noncurrent assets
|
1,043 | 1,095 |
2,822
|
|||||||
Total assets
|
$ | 84,975 | $ | 83,035 | $ |
159,660
|
||||
Current maturities of non-recourse debt
|
$ | 17,240 | $ | 29,760 | $ |
40,565
|
||||
Other current liabilities | 2,171 | 2,619 | 5,402 | |||||||
Total current liabilities
|
19,411 | 32,379 | 45,967 | |||||||
Long-term non-recourse debt | 30,454 | 25,337 | 16,895 | |||||||
Other noncurrent liabilities
|
309 | 404 |
571
|
|||||||
Total liabilities
|
$ | 50,174 | $ | 58,120 | $ |
63,433
|
March 31, 2011
|
December 31, 2010 | March 31, 2010 | ||||||||||||||
(dollars in thousands)
|
Amount
|
Number of Projects |
Amount
|
Number of Projects
|
Amount
|
Number of Projects
|
||||||||||
Residential
|
$
|
55,972 | 5 | $ | 55,289 | 5 | $ | 123,661 |
|
6 | ||||||
Commercial
1
|
21,156 | 6 | 20,427 | 5 | 13,522 | 3 | ||||||||||
Total
|
$
|
77,128 | 11 | $ | 75,716 | 10 | $ | 137,183 |
|
9 | ||||||
Washington
|
$
|
45,586 | 2 | $ | 44,598 | 2 | $ | 82,597 | 2 | |||||||
California
1
|
14,355 | 7 | 13,437 | 6 | 16,327 | 5 | ||||||||||
Texas
|
8,859 | 1 | 8,859 | 1 | 8,765 | 1 | ||||||||||
Oregon
|
8,328 | 1 | 8,822 | 1 | 29,494 | 1 | ||||||||||
Total
|
$
|
77,128 | 11 | $ | 75,716 | 10 | $ | 137,183 | 9 |
March 31, | December 31, | March 31, | ||||||||||
(in thousands)
|
2011
|
2010
|
2010
|
|||||||||
Equity method investments in real estate affiliates
1
|
$
|
12,147 |
$
|
12,128
|
$ |
13,803
|
||||||
Equity method investments in other affiliates
1
|
10,346 |
12,882
|
10,620
|
|||||||||
Total equity method investments
|
|
22,493 |
|
25,010
|
|
24,423
|
||||||
Cost method investments | 6,400 | 6,400 | 6,400 | |||||||||
Total investments in affiliates
|
$ | 28,893 | $ | 31,410 | $ | 30,823 |
March 31, 2011
|
December 31, 2010
|
March 31, 2010 | ||||||||||||||
(dollars in thousands)
|
Amount
|
Number of Projects |
Amount
|
Number of Projects |
Amount
|
Number of Projects | ||||||||||
Residential
|
$ | 8,989 | 2 | $ | 9,029 | 2 | $ | 8,868 | 2 | |||||||
Commercial
|
3,158 | 3 | 3,099 | 3 | 4,935 | 3 | ||||||||||
Total
|
$ | 12,147 | 5 | $ | 12,128 | 5 | $ | 13,803 | 5 | |||||||
Texas
|
$ | 12,147 | 5 | $ | 12,128 | 5 | $ | 13,803 | 5 | |||||||
Total
|
$ | 12,147 | 5 | $ | 12,128 | 5 | $ | 13,803 | 5 |
March 31,
|
December 31,
|
March 31,
|
||||||||||
(in thousands)
|
2011
|
2010
|
2010
|
|||||||||
Total assets
|
$
|
153,652 |
$
|
156,868
|
$
|
160,356
|
||||||
Net assets
|
80,546 |
84,368
|
83,310
|
|||||||||
Granite
’
s share of net assets
|
22,493 |
25,010
|
24,423
|
8.
|
Property and Equipment, net
|
March 31,
|
December 31,
|
March 31,
|
||||||||||
(in thousands)
|
2011
|
2010
|
2010
|
|||||||||
Land and land improvements
|
$ | 124,932 | $ | 120,342 | $ | 134,386 | ||||||
Quarry property
|
173,067 | 174,231 | 161,754 | |||||||||
Buildings and leasehold improvements
|
84,772 | 85,655 | 97,155 | |||||||||
Equipment and vehicles
|
774,111 | 778,443 | 816,322 | |||||||||
Office furniture and equipment
|
44,174 | 42,509 | 41,574 | |||||||||
Property and equipment
|
1,201,056 | 1,201,180 | 1,251,191 | |||||||||
Less: accumulated depreciation and depletion
|
732,127 | 727,573 | 731,282 | |||||||||
Property and equipment, net
|
$ | 468,929 | $ | 473,607 | $ | 519,909 |
9.
|
Intangible Assets
|
March 31,
|
December 31,
|
March 31,
|
||||||||||
(in thousands)
|
2011
|
2010
|
2010
|
|||||||||
Goodwill
1
|
$ | 9,900 | $ | 9,900 | $ | 9,900 | ||||||
Use rights and other
|
1,319 | 1,319 | 1,319 | |||||||||
Total unamortized intangible assets
|
$ | 11,219 | $ | 11,219 | $ | 11,219 |
March 31, 2011 |
Accumulated
|
|||||||||||
(in thousands)
|
Gross Value
|
Amortization
|
Net Value
|
|||||||||
Permits
|
$ | 29,713 | $ | (6,468 | ) | $ | 23,245 | |||||
Customer lists | 2,198 | (1,772 | ) | 426 | ||||||||
Covenants not to compete
|
1,588 | (1,364 | ) | 224 | ||||||||
Other
|
871 | (470 | ) | 401 | ||||||||
Total amortized intangible assets
|
$ | 34,370 | $ | (10,074 | ) | $ | 24,296 |
December 31, 2010
|
|
|
|
|||||||||
(in thousands)
|
||||||||||||
Permits
|
$ | 29,713 | $ | (6,100 | ) | $ | 23,613 | |||||
Customer lists | 2,198 | (1,715 | ) | 483 | ||||||||
Covenants not to compete
|
1,588 | (1,325 | ) | 263 | ||||||||
Other
|
871 | (432 | ) | 439 | ||||||||
Total amortized intangible assets
|
$ | 34,370 | $ | (9,572 | ) | $ | 24,798 |
March 31, 2010
|
|
|
|
|||||||||
(in thousands)
|
||||||||||||
Permits
|
$ | 33,582 | $ | (5,568 | ) | $ | 28,014 | |||||
Customer lists | 2,198 | (1,544 | ) | 654 | ||||||||
Covenants not to compete
|
1,588 | (1,208 | ) | 380 | ||||||||
Other
|
1,082 | (523 | ) | 559 | ||||||||
Total amortized intangible assets
|
$ | 38,450 | $ | (8,843 | ) | $ | 29,607 |
10.
|
Restructuring
|
11.
|
Covenants and Events of Default
|
12.
|
Weighted Average Shares Outstanding
|
Three Months Ended March 31,
|
|||
(in thousands)
|
2011
|
2010
|
|
Weighted average shares outstanding:
|
|||
Weighted average common stock outstanding
|
38,712 |
38,667
|
|
Less: weighted average unvested restricted stock outstanding
|
749 |
979
|
|
Total basic weighted average shares outstanding
|
37,963 |
37,688
|
|
Diluted weighted average shares outstanding:
|
|||
Weighted average common stock outstanding, basic
|
37,963 |
37,688
|
|
Effect of dilutive securities:
|
|||
Common stock options and restricted stock units
1
|
-
|
-
|
|
Total weighted average shares outstanding assuming dilution
|
37,963 |
37,688
|
13.
|
Earnings Per Share
|
14.
|
Income Taxes
|
15.
|
Equity and Other Comprehensive (Loss) Income
|
|
The following tables summarize our equity activity for the periods presented:
|
(in thousands)
|
Granite Construction Inc.
|
Noncontrolling Interests
|
Total Equity
|
||||||||
Balance at December 31, 2010
|
$ | 761,031 | $ | 34,604 | $ | 795,635 | |||||
Purchase of common stock
1
|
(3,515 | ) |
-
|
(3,515 | ) | ||||||
Other transactions with shareholders
|
1,802 | - | 1,802 | ||||||||
Transactions with noncontrolling interests, net
3
|
- | (2,062 | ) | (2,062 | ) | ||||||
Comprehensive (loss) income:
|
|||||||||||
Net (loss) income
|
(9,007 | ) | 1,751 | (7,256 | ) | ||||||
Total comprehensive (loss) income
|
(9,007 | ) | 1,751 | (7,256 | ) | ||||||
Dividends on common stock | (5,023 | ) | - | (5,023 | ) | ||||||
Balance at March 31, 2011
|
$ | 745,288 | $ | 34,293 | $ | 779,581 |
(in thousands)
|
|
|
|
Balance at December 31, 2009
|
$
|
830,651
|
$ |
51,905
|
$
|
882,556
|
|||||
Purchase of common stock
2
|
(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
|
16.
|
Legal Proceedings
|
17.
|
Business Segment Information
|
Three Months Ended March 31,
|
||||||||||||||||||||
(in thousands)
|
Construction
|
Large Project Construction
|
Construction Materials |
Real Estate
|
Total
|
|||||||||||||||
2011
|
||||||||||||||||||||
Total revenue from reportable segments
|
$ | 92,692 | $ | 137,820 | $ | 30,656 | $ | 2,421 | $ | 263,589 | ||||||||||
Elimination of intersegment revenue
|
- | - | (6,858 | ) | - | (6,858 | ) | |||||||||||||
Revenue from external customers
|
92,692 | 137,820 | 23,798 | 2,421 | 256,731 | |||||||||||||||
Gross profit (loss)
|
5,553 | 31,298 | (7,270 | ) | 407 | 29,988 | ||||||||||||||
Depreciation, depletion and amortization
|
4,078 | 768 | 7,107 | 88 | 12,041 | |||||||||||||||
Segment assets
|
120,059 | 85,931 | 378,601 | 88,614 | 673,205 | |||||||||||||||
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 |
Three Months Ended March 31,
|
|||||||||
(in thousands)
|
2011
|
2010
|
|||||||
Total gross profit from reportable segments
|
$ | 29,988 | $ | 5,714 | |||||
Selling, general and administrative expenses | 43,372 | 55,292 | |||||||
Gain on sales of property and equipment | 2,704 | 4,452 | |||||||
Other expense
|
(1,799 | ) | (217 | ) | |||||
Loss before benefit from income taxes
|
$ | (12,479 | ) | $ | (45,343 | ) |
Comparative Financial Summary
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
|||||||
Total revenue
|
$ | 256,731 | $ | 220,683 | |||||
Gross profit
|
29,988 | 5,714 | |||||||
Selling, general and administrative expenses
|
43,372 | 55,292 | |||||||
Net loss
|
(7,256 | ) | (37,730 | ) | |||||
Amount attributable to noncontrolling interests
|
(1,751 | ) | (3,224 | ) | |||||
Net loss attributable to Granite Construction Incorporated
|
(9,007 | ) | (40,954 | ) |
Total Revenue by Segment |
Three Months Ended March 31,
|
||||||||||||||
(dollars in thousands)
|
2011
|
2010
|
|||||||||||||
Construction
|
$ | 92,692 | 36.1 | % | $ | 81,186 | 36.7 | % | |||||||
Large Project Construction
|
137,820 | 53.7 | 106,325 | 48.2 | |||||||||||
Construction Materials
|
23,798 | 9.3 | 26,164 | 11.9 | |||||||||||
Real Estate
|
2,421 | 0.9 | 7,008 | 3.2 | |||||||||||
Total
|
$ | 256,731 | 100.0 | % | $ | 220,683 | 100.0 | % |
Construction Revenue |
Three Months Ended March 31,
|
||||||||||||||
(dollars in thousands)
|
2011
|
2010
|
|||||||||||||
California:
|
|||||||||||||||
Public sector
|
$ | 43,404 | 46.8 | % | $ | 32,543 | 40.2 |
%
|
|||||||
Private sector
|
9,476 | 10.2 | 7,232 | 8.9 | |||||||||||
Northwest:
|
|||||||||||||||
Public sector
|
22,622 | 24.4 | 22,433 | 27.6 | |||||||||||
Private sector
|
3,487 | 3.8 | 690 | 0.8 | |||||||||||
East:
|
|||||||||||||||
Public sector
|
13,642 | 14.7 | 17,081 | 21.0 | |||||||||||
Private sector
|
61 | 0.1 | 1,207 | 1.5 | |||||||||||
Total
|
$ | 92,692 | 100.0 | % | $ | 81,186 | 100.0 | % |
Large Project Construction Revenue 1 |
Three Months Ended March 31,
|
||||||||||||||
(dollars in thousands)
|
2011
|
2010
|
|||||||||||||
California
|
$ | 15,008 | 10.9 | % | $ | 11,986 | 11.3 |
%
|
|||||||
Northwest
|
23,980 | 17.4 | 5,763 | 5.4 | |||||||||||
East
|
98,832 | 71.7 | 88,576 | 83.3 | |||||||||||
Total
|
$ | 137,820 | 100.0 | % | $ | 106,325 | 100.0 | % |
Construction Materials Revenue |
Three Months Ended March 31,
|
||||||||||||||
(dollars in thousands)
|
2011
|
2010
|
|||||||||||||
California
|
$ | 18,893 | 79.4 | % | $ | 20,462 | 78.2 | % | |||||||
Northwest
|
2,125 | 8.9 | 2,650 | 10.1 | |||||||||||
East | 2,780 | 11.7 | 3,052 | 11.7 | |||||||||||
Total
|
$ | 23,798 | 100.0 | % | $ | 26,164 | 100.0 | % |
Total Contract Backlog by Segment
|
|
|
||||||||||||||||||||||
(dollars in thousands)
|
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
|||||||||||||||||||||
Construction
|
$ | 696,055 | 34.7 | % | $ | 465,271 | 24.5 | % | $ | 487,751 | 30.9 | % | ||||||||||||
Large Project Construction
|
1,307,622 | 65.3 | 1,433,899 | 75.5 | 1,091,251 | 69.1 | ||||||||||||||||||
Total
|
$ | 2,003,677 | 100.0 | % | $ | 1,899,170 | 100.0 | % | $ | 1,579,002 | 100.0 | % |
Construction Contract Backlog
|
|
|
|
|||||||||||||||||||||
(dollars in thousands)
|
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
|||||||||||||||||||||
California:
|
||||||||||||||||||||||||
Public sector
|
$ | 383,032 | 55.0 | % | $ | 185,115 | 39.9 | % | $ | 176,919 | 36.2 | % | ||||||||||||
Private sector
|
15,295 | 2.2 | 15,054 | 3.2 | 6,602 | 1.4 | ||||||||||||||||||
Northwest:
|
||||||||||||||||||||||||
Public sector
|
215,810 | 31.0 | 181,996 | 39.1 | 222,767 | 45.7 | ||||||||||||||||||
Private sector
|
10,840 | 1.6 | 13,941 | 3.0 | 4,934 | 1.0 | ||||||||||||||||||
East:
|
||||||||||||||||||||||||
Public sector
|
70,482 | 10.1 | 68,508 | 14.7 | 75,042 | 15.4 | ||||||||||||||||||
Private sector
|
596 | 0.1 | 657 | 0.1 | 1,487 | 0.3 | ||||||||||||||||||
Total
|
$ | 696,055 | 100.0 | % | $ | 465,271 | 100.0 | % | $ | 487,751 | 100.0 | % |
Large Project Construction Contract Backlog
1
|
|
|
||||||||||||||||||||||
(dollars in thousands)
|
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
|||||||||||||||||||||
California
|
$ | 154,678 | 11.8 | % | $ | 166,084 | 11.6 | % | $ | 40,842 | 3.7 | % | ||||||||||||
Northwest
|
478,301 | 36.6 | 501,297 | 34.9 | 61,907 | 5.7 | ||||||||||||||||||
East
|
674,643 | 51.6 | 766,518 | 53.5 | 988,502 | 90.6 | ||||||||||||||||||
Total
|
$ | 1,307,622 | 100 .0 | % | $ | 1,433,899 | 100.0 | % | $ | 1,091,251 | 100.0 | % |
|
Three Months Ended March 31,
|
|||||||||
(dollars in thousands)
|
2011
|
2010
|
||||||||
Construction
|
$
|
5,553 |
$
|
1,846
|
||||||
Percent of segment revenue
|
6.0 |
%
|
2.3
|
%
|
||||||
Large Project Construction
|
$
|
31,298 |
$
|
9,483
|
||||||
Percent of segment revenue
|
22.7 |
%
|
8.9
|
%
|
||||||
Construction Materials
|
$ | (7,270 | ) | $ | (7,125 | ) | ||||
Percent of segment revenue
|
-30.5 | % | -27.2 | % | ||||||
Real Estate
|
$
|
407 |
$
|
1,510
|
||||||
Percent of segment revenue
|
16.8 |
%
|
21.5
|
%
|
||||||
Total gross profit
|
$
|
29,988 |
$
|
5,714
|
||||||
Percent of total revenue
|
11.7 |
%
|
2.6
|
%
|
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
|||||||
Construction
|
$ | 8,983 | $ | 6,158 | |||||
Large Project Construction
|
47,223 | 34,945 | |||||||
Total revenue from contracts with deferred profit
|
$ | 56,206 | $ | 41,103 |
|
Three Months Ended March 31,
|
||||||||
(dollars in thousands)
|
2011
|
2010
|
|||||||
Selling | |||||||||
Salaries and related expenses
|
$ | 10,810 | $ | 13,770 | |||||
Other selling expenses
|
1,658 | 2,776 | |||||||
Total selling
|
12,468 | 16,546 | |||||||
General and administrative
|
|||||||||
Salaries and related expenses
|
14,921 | 20,700 | |||||||
Restricted stock amortization
|
2,990 | 3,041 | |||||||
Other general and administrative expenses
|
12,993 | 15,005 | |||||||
Total general and administrative
|
30,904 | 38,746 | |||||||
Total selling, general and administrative
|
$ | 43,372 | $ | 55,292 | |||||
Percent of revenue
|
16.9 | % | 25.1 | % |
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
|||||||
Interest income
|
$ | 1,244 | $ | 939 | |||||
Interest expense
|
(3,356 | ) | (3,734 | ) | |||||
Equity in loss of affiliates
|
(257 | ) | (319 | ) | |||||
Other income, net
|
570 | 2,897 | |||||||
Total other expense
|
$ | (1,799 | ) | $ | (217 | ) |
|
Three Months Ended March 31,
|
|||||||||
(dollars in thousands)
|
2011
|
2010
|
||||||||
Benefit from income taxes
|
$ | (5,223 | ) | $ | (7,613 | ) | ||||
Effective tax rate
|
41.9 | % | 16.8 | % |
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2011
|
2010
|
|||||||
Amount attributable to noncontrolling interest
s
|
$ | (1,751 | ) | $ | (3,224 | ) |
March 31, | December 31, | March 31, | ||||||||
(in thousands)
|
2011 | 2010 | 2010 | |||||||
Cash and cash equivalents excluding consolidated joint ventures
|
$ | 132,790 | $ | 142,642 | $ | 122,827 | ||||
Consolidated joint venture cash and cash equivalents
1
|
107,978 | 109,380 | 99,268 | |||||||
Total consolidated cash and cash equivalents
|
240,768 | 252,022 | 222,095 | |||||||
Short-term and long-term marketable securities
2
|
129,335 | 143,706 | 167,403 | |||||||
Total cash, cash equivalents and marketable securities
|
$ | 370,103 | $ | 395,728 | $ | 389,498 |
Cash Flows
(in thousands)
|
Three Months Ended March 31, | ||||||||
|
2011
|
2010
|
|||||||
Net cash provided by (
used in)
:
|
|||||||||
Operating activities
|
$ | 676 | $ | (24,354 | ) | ||||
Investing activities
|
5,011 | (63,402 | ) | ||||||
Financing activities
|
(16,941 | ) | (29,105 | ) |
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
|
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
|
Approximate dollar value of shares that may yet be purchased under the plans or programs
2
|
|||||||||
January 1, 2011 through January 31, 2011
|
2,323
|
$
|
27.43
|
-
|
$
|
64,065,401
|
|||||||
February 1, 2011 through February 28, 2011
|
-
|
-
|
-
|
$
|
64,065,401
|
||||||||
March 1, 2011 through March 31, 2011
|
121,868
|
28.32
|
-
|
$
|
64,065,401
|
||||||||
124,191
|
$
|
28.30
|
-
|
Item 3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
Item 4.
|
RESERVED
|
Item 5.
|
OTHER
INFORMATION
|
(dollars in thousands) | Three Months Ended March 31, 2011 | |||||||||
Name of Mine
|
Section 104
1
|
Section 104(d)
2
|
Proposed Assessments
3
|
|||||||
Indio
|
1
|
-
|
$
|
3
|
||||||
Lockwood Quarry
|
1
|
-
|
-
|
|||||||
Total
|
2
|
-
|
$
|
3
|
Item 6.
|
10.1 | ||
101.INS
|
††
|
XBRL Instance Document
|
101.SCH
|
††
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
††
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.LAB
|
††
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
††
|
XBRL Taxonomy Extension Presentation Linkbase
|
†
|
Filed herewith
|
|
††
|
Furnished herewith
|
GRANITE CONSTRUCTION INCORPORATED
|
|||||
Date: | May 5 , 2011 | By: | /s/ Laurel J. Krzeminski | ||
Laurel J. Krzeminski
|
|||||
Vice President and Chief Financial Officer
|
|||||
(Principal Financial and Accounting Officer) |
/s/ Terry K. Eller | |||||
Terry K. Eller
|
Dated:____________________________
|
___________________________________________
[Employee Name]
|
Dated:____________________________
|
[Company]
By:___________________________________
|
Dated:____________________________
|
__________________________________________
[Employee Name]
|
Dated:____________________________
|
[Company]
By:__________________________________
|
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 5, 2011
|
/s/ James H. Roberts
|
James H. Roberts
|
|
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 5, 2011
|
/s/ Lauel J. Krzeminski
|
Laurel J. Krzeminski
|
|
Vice President and Chief Financial Officer
|
Dated: May 5, 2011
Dated: May 5, 2011
|
/s/ James H. Roberts
|
James H. Roberts
|
|
President and Chief Executive Officer
/s/ Laurel J. Krzeminski
|
|
Laurel J. Krzeminski
|
|
Vice President and Chief Financial Officer
|