Granite Construction Inc. reported a net loss of $8.6 million for the quarter ended March 31, 2015, compared to a loss of $20.6 million in the first quarter of 2014. Losses per share in the quarter were $0.22, compared to $0.53 in the prior-year period.
“For some time, we have noted that recovery for our business would appear first in our Construction Materials segment. This solid performance is a good first step in 2015, and it reinforces our confidence in the continued execution of our Strategic Plan.” said James H. Roberts, president and CEO of Granite Construction Inc.
“Overall market activity remains stable and competitive," he said. "Continued backlog progression has Granite teams across the country focusing on growing our business, while remaining keenly aware of the need for improved execution in all of our segments.”
- Construction Materials revenue in the first quarter of 2015 increased 16.8 percent to $41.4 million, compared with $35.5 million last year.
- Gross profit for the quarter was $0.7 million, compared to a gross loss of $3.5 million last year. The improvement was driven by increased market demand and mild weather in the West.
- Revenue for the first quarter of 2015 increased 10.6 percent to $420.2 million compared with $379.8 million last year.
- Gross profit margin in the first quarter was 9.5 percent compared with 5.6 percent in 2014, driven primarily by improved performance in the Construction and Construction Materials segments.
- SG&A expenses for the first quarter of 2015 increased 6.0 percent to $52.2 million driven partially by the timing of pre-bid and estimating (selling) costs.
- Construction revenue in the first quarter of 2015 increased 20.0 percent to $188.5 million, compared with $157.0 million last year.
- Gross profit margin was 11.5 percent, compared with 5.8 percent a year ago, driven by increased revenue and by recognition of certain contract claims.
- Large Project Construction revenue in the first quarter of 2015 increased 1.6 percent to $190.3 million, compared with $187.3 million last year.
- Gross profit margin for the quarter was 9.3 percent, compared with 8.4 percent in 2014, driven by project progression, which was offset partially by a reduction in contract claim recognition.
“A good start to the year, coupled with solid project execution, bodes well for improved results in 2015,” Roberts said. “As we discussed in February, we are committed to growing across geographies and end markets, despite the lack of a federal spending catalyst.
“It is well past the time for Congress to act swiftly and appropriately to pass a well-funded, long-term highway bill this year,” said Roberts. “While Congress delays their actions, we are actively ramping up the execution of our Strategic Plan.”