Granite Construction Incorporated
) reported earnings of $2.7 million or 7 cents per share in the
second quarter of 2013 compared with $1.9 million or 5 cents a
share in the prior-year quarter. The results lagged the Zacks
Consensus Estimate of 32 cents.
Granite's net sales improved 2% year over year to $550.2 million.
The results however missed the Zacks Consensus Estimate of $652
million. Revenues benefited from the synergies of the Kenny
Gross profit during the quarter slipped 1.3% to $51.2 million
from $51.9 million in the prior-year quarter. Gross margin
contracted 30 basis points (bps) year over year to 9.3%.
Selling, general and administrative expenses increased 12% year
over year to $46 million. A significant portion of the increase
was led by the integration of Kenny. Adjusted operating gain was
$4.7 million compared with $10 million in the prior-year quarter.
Net sales grew 25.9% year over year to $308.6 million in the
quarter, primarily attributable to the acquisition of Kenny and
improved western markets, partly offset by the weakness in
California. Gross profit increased 40% to $25 million from $17.9
million in the year-ago quarter. Gross margin was 8.2%, about 90
basis points higher than the prior-year quarter.
Large Project Construction:
The segment reported sales of $181 million in the quarter
compared to $228.9 million in the year-ago quarter. The segment's
gross profit fell 21.7% year over year to $22 million. Gross
margin of 12.2% was in line with the year-ago quarter.
Net sales in the reported quarter went down 5% year over year to
$60 million. Consequently, gross profit fall 3.6% year over year
to $56 million. Gross margin declined 130 bps year over year to
Revenues at the Real Estate segment was $0.04 million compared
with $2.3 million in the year-ago quarter. Gross profit plummeted
99.8% to $0.01 million.
Total contract backlog as of Jun 30, 2013, was $2.79 billion
compared with $1.95 billion as of Jun 30, 2012. Backlog included
$426.2 million associated with the IH-35E project in Texas and
the I-440 project in North Carolina.
Cash and cash equivalents were $247.8 million as of Jun 30, 2013
compared with $237.9 million as of Jun 30, 2012. Long-term debt
amounted to $270 million as of Jun 30, 2013, compared with $209
million as of Jun 30, 2012. The debt-to-capitalization ratio
expanded to 24.4% as of Jun 30, 2013 from 20.5% as of Jun 30,
2012. Cash flow used in operating activities was $51.6 million in
the reported quarter compared with $34.6 million in the year-ago
For full-year 2013, Granite anticipates growth by at least double
digits in the top line of its business. Granite reaffirmed
construction segment revenues forecast in the range of $1.25-$1.4
billion for 2013, with a corresponding gross margin band of
8-10%. The company however revised the Large Project Construction
segment revenues range to $850-$950 million from its previous
band of $850-$1.05 billion. Construction Materials revenues were
also confirmed within $200-$230 million, with a gross margin
range of 6%-9%.
Selling, general and administrative expenses were reiterated in
the range of $210-$220 million. Cash flow from operations were
revised to the new band of $70-$100 million for the year from the
previous range of $80-$120 million.
Watsonville, Calif.-based Granite Construction is one of the
largest infrastructure contractors and construction materials
producers. Granite's project teams represent some of the best in
the industry serving owners in the transportation, power,
federal, tunneling, underground, and industrial, mining and water
resources markets, which serve both public and private-sector
Granite Construction currently retains a short-term Zacks Rank #3
Chicago Bridge & Iron Company N.V.
) reported second-quarter adjusted earnings of $112.3 million or
$1.04 per share, in line with the Zacks Consensus Estimate.
However, adjusted net income was up 38.6% year over year on the
back of strong project activities and robust backlog during the
) adjusted earnings increased 21% to 47 cents per share in the
second quarter of 2013 from the earnings of 39 cents a share in
the year-ago quarter. The results were ahead of the Zacks
Consensus Estimate of 43 cents as well as management's previous
guidance of 42 cents a share.
EMCOR Group Inc.
) second-quarter 2013 adjusted earnings dipped 4% to 48 cents
from 50 cents in the year ago quarter falling short of Zacks
Consensus Estimate of 53 cents.
CHICAGO BRIDGE (CBI): Free Stock Analysis
EMCOR GROUP INC (EME): Free Stock Analysis
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