Granite Construction Inc (GVA) has reported a 43.60 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $16.17 million, or $0.40 a share in the quarter, compared with $28.67 million, or $0.72 a share for the same period last year.
Revenue during the quarter grew 5.80 percent to $666.68 million from $630.16 million in the previous year period. Gross margin for the quarter contracted 378 basis points over the previous year period to 12.19 percent. Total expenses were 95.66 percent of quarterly revenues, up from 91.62 percent for the same period last year. That has resulted in a contraction of 405 basis points in operating margin to 4.34 percent.
Operating income for the quarter was $28.90 million, compared with $52.82 million in the previous year period.
“Momentum to rebuild America's infrastructure is growing, an encouraging sign for our Company, our industry, and our country. Today, Granite's business stands in its best position in many years,” said James H. Roberts, president and chief executive officer of Granite Construction Incorporated. "Despite fourth quarter results that were negatively impacted by particular weakness in the Large Project Construction segment, overall operational performance remained strong. The Construction segment remains the largest, most profitable portion of our business, producing near-record gross margins and a record segment backlog level in 2016.
Operating cash flow improves
Granite Construction Inc has generated cash of $73.15 million from operating activities during the year, up 9.21 percent or $6.17 million, when compared with the last year.
The company has spent $96.39 million cash to meet investing activities during the year as against cash outgo of $30.71 million in the last year. It has incurred net capital expenditure of $78.02 million on net basis during the year, up 151.44 percent or $46.99 million from year ago.
The company has spent $40.27 million cash to carry out financing activities during the year as against cash outgo of $39.40 million in the last year period.
Cash and cash equivalents stood at $189.33 million as on Dec. 31, 2016, down 25.12 percent or $63.51 million from $252.84 million on Dec. 31, 2015.
Working capital increases
Granite Construction Inc has recorded an increase in the working capital over the last year. It stood at $559.06 million as at Dec. 31, 2016, up 7.68 percent or $39.88 million from $519.18 million on Dec. 31, 2015. Current ratio was at 2.05 as on Dec. 31, 2016, down from 2.11 on Dec. 31, 2015.
Debt comes down
Granite Construction Inc has recorded a decline in total debt over the last one year. It stood at $244.29 million as on Dec. 31, 2016, down 5.72 percent or $14.83 million from $259.12 million on Dec. 31, 2015. Total debt was 14.09 percent of total assets as on Dec. 31, 2016, compared with 15.92 percent on Dec. 31, 2015. Debt to equity ratio was at 0.26 as on Dec. 31, 2016, down from 0.30 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.34 for the quarter from 16.05 for the same period last year.
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