Granite Construction reported net income of $14.1 million for the quarter ended June 30, 2016, compared to net income of $9.6 million in the second quarter of 2015.
Construction Materials revenue in the second quarter decreased 6.0 percent to $75.9 million, compared with $80.7 million last year. The business reported gross profit of $10.5 million compared to $10.8 million last year.
Gross profit margin increased to 13.8 percent, up 40 basis points from last year. Operational performance remains strong, with solid levels of committed volumes driving accelerated activity late in the second quarter, the company said.
“Steady improvement and balance across our portfolio once again drove our improved second quarter results,” said James H. Roberts, president and chief executive officer. “Today's balance is positively weighted by the ninth consecutive quarter of year-over-year margin expansion in the Construction segment, which continues to offset our Large Project segment performance still well below expectations,” Roberts continued.
“Granite teams across the country created momentum as the second quarter progressed, highlighted by activity and results that accelerated late in the quarter. We congratulate our employees, as new and enhanced client relationships helped spur our backlog of work to a new record of nearly $3.8 billion. Our teams continue their focus on safety and excellence in execution to deliver results,” Roberts said.
Revenue for the second quarter increased 6.2 percent to $604.6 million compared with $569.2 million last year. On a year-to-date basis, consolidated revenue increased 5.5 percent to $1,044.0 million in the first half of 2016.
Gross profit in the second quarter increased 14.0 percent to $73.2 million compared with $64.2 million last year. On a year-to-date basis, gross profit increased 9.0 percent to $112.4 million in the first half of 2016.
Gross profit margin in the quarter was 12.1 percent compared with 11.3 percent in 2015. For the first half of 2016, gross profit margin of 10.8 percent reflects modest improvement from last year.
Second quarter selling, general and administrative (SG&A) expenses increased 2.5 percent to $48.7 million. For the first half of 2016, SG&A totaled $104.8 million, up 6.4 percent year-over-year, with the increase primarily related to salary and compensation expenses.
“Opportunities for growth remain steady and broad across end markets and geographies. We continue to expect that as we move toward the end of 2016, the FAST Act will begin to provide public markets with some of the well-overdue stability needed to equalize the difficult balance of modern infrastructure funding demands,” said Roberts. “Record backlog provides us with opportunities for focused and improved execution, organic and diversified growth, as well as improved financial results. Across geographies and end markets, the balance of our business remains on track to create solid growth in 2016 and beyond,” Roberts said.