Granite Construction (NYSE: GVA) reported Q1 EPS of ($0.57), $0.39 worse than the analyst estimate of ($0.18). Revenue for the quarter came in at $619.8 million versus the consensus estimate of $651.72 million.

First Quarter 2019 Consolidated Results

• Revenue increased to $619.8 million, compared with $563.4 million last year.
• Gross profit decreased to $40.5 million, compared with $56.3 million last year.
• Selling, general & administrative (“SG&A”) expenses were $81.2 million, compared to $61.3 million last year. The increase is attributable primarily to businesses acquired by Granite in 2018, coupled with increases attributable to weather delays that moved operations employees from projects to office assignments.
• Company effective tax rate in the first quarter was 22.8 percent.
• Net loss was $(34.6) million, compared to net loss of $(11.4) million last year.
• Adjusted net loss3 was $(26.4) million, compared to adjusted net loss of $(5.0) million last year.
• Adjusted EBITDA3 totaled $(9.4) million in 2019, compared to $9.3 million last year.
• CAP, which is comprised of unearned revenue, other awards, as well as an estimated $884.0 million of CMGC and alternative procurement projects in the Transportation segment, totaled $4.5 billion.
• Our balance sheet remains strong with cash and marketable securities of $266.3 million as of March 31, 2019. Our capital structure is well positioned to support the execution of our strategic plan for growth both organically and through future acquisitions.

“Unusually cold and wet weather across the U.S. in 2019 negatively impacted Granite’s first quarter operations, but it has not dampened demand,” said James H. Roberts, President and Chief Executive Officer of Granite Construction Incorporated. “Public- and private-market demand remains strong across Granite’s end markets. The Company’s continued focus on bidding discipline and end-market diversification resulted in improved positioning for 2019. Committed and Awarded Projects (‘CAP’), which includes backlog1 and Construction Manager/General Contractor (‘CMGC’) and alternative procurement projects, now totals $4.5 billion.”

“These projects comprise an increasingly strategic portfolio of ‘stored energy’ for the Company,” Roberts continued. “Across the enterprise, project demand points to significant opportunities for both near- and mid-term growth opportunities for all segments of our business. We continue our focus on bidding strategies, balancing pricing and project win rates, and positioning our teams to expand Granite’s platforms for growth in the Transportation, Water, Specialty, and Materials segments.”

Outlook and Guidance

“2019 will be a strong year of growth and strategic execution for Granite, despite the extreme winter and spring weather that impacted our results in the first quarter,” Roberts said. “Historically strong Committed and Awarded Projects and booking trends, along with healthy funding and demand, continue to fuel our confidence that we will deliver on our previously stated 2019 growth and earnings expectations.”

For earnings history and earnings-related data on Granite Construction (GVA) click here.