Granite Construction announced results for the fourth quarter and year ended Dec. 31, 2020. Fiscal year 2020 net loss totaled $145.1 million, or $3.18 per diluted share, compared to a net loss of $60.2 million, or $1.29 per diluted share, in the prior year.
- Revenue increased 3.4% in 2020 to $3.6 billion, compared to $3.4 billion in the prior year.
- Gross profit increased 55.5% in 2020 to $344.8 million, compared to $221.7 million in the prior year.
- Selling, general and administrative (SG&A) expenses in 2020 were $353.3 million or 9.9% of revenue, compared to $308.0 million or 8.9% of revenue in the prior year. The increase was primarily attributable to $35.6 million of non-recurring legal and accounting investigation fees.
- Materials segment revenue and gross profit increased compared to 2019 largely due to increased sales volumes and operational efficiencies.
Results for the fourth quarter of 2020 were net income of $8.0 million, or $0.17 per diluted share compared to a net loss of $19.4 million, or $0.42 per diluted share, in the prior year. Adjusted net income for the fourth quarter of 2020, which excludes transaction costs, amortization of debt discount and non-recurring legal and accounting investigation costs, was $18.8 million, or $0.41 per diluted share compared to an adjusted net loss of $12.5 million, or $0.27 per diluted share, in the prior year.
- Revenue increased 6.8% in the fourth quarter of 2020 to $945.6 million compared to $885.6 million in the fourth quarter of 2019.
- Gross profit increased to $106.6 million in the fourth quarter of 2020 compared to $51.2 million in the fourth quarter of 2019.
- SG&A expenses in the fourth quarter of 2020 were $100.8 million or 10.7% of revenue, compared to $83.4 million or 9.4% of revenue in the fourth quarter of 2019. The increase was primarily attributable to non-recurring legal and accounting investigation fees.
- Materials segment revenue and gross profit increased year-over-year compared to the prior year quarter reflecting strong sales volumes due in part to favorable weather in the West.
“Fiscal year 2020 was one of the most challenging years in Granite’s history as we navigated the pandemic and the Audit/Compliance Committee’s internal investigation,” said Kyle Larkin, Granite president. “Despite these challenges, our teams performed well, particularly in our vertically integrated businesses. Our continued focus on enhancing profit and cash flow produced record operating cash flow in 2020. Looking ahead, we remain committed to positioning our balance sheet and CAP for future growth and success. While we continue to manage risk in the Heavy Civil Operating Group, I am confident that we have established the appropriate parameters to not only execute on existing projects, but also rebuild the portfolio by prioritizing projects with an appropriate risk profile as we leverage federal, state and local infrastructure funding opportunities.”