<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
FOR THE QUARTER ENDED MARCH 31, 1998
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ___________ to ____________
Commission File No. 0-18350
GRANITE CONSTRUCTION INCORPORATED
State of Incorporation: I.R.S. Employer Identification Number:
Delaware 77-0239383
Corporate Administration:
585 West Beach Street
Watsonville, California 95076
(408) 724-1011
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes[X] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of May 7, 1998.
<TABLE>
<CAPTION>
Class Outstanding
----------------------------- -----------------
<S> <C>
Common Stock, $0.01 par value 18,412,526 shares
</TABLE>
This report on Form 10-Q, including all exhibits, contains 17 pages. The exhibit
index is located on page 16 of this report.
<PAGE> 2
GRANITE CONSTRUCTION INCORPORATED
INDEX
<TABLE>
<CAPTION>
Page
-----------
<S> <C> > <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance
Sheets as of March 31, 1998 and
December 31, 1997 .............................................. 4
Condensed Consolidated Statements
of Income for the Three Months
Ended March 31, 1998 and 1997 .................................. 5
Condensed Consolidated Statements
of Cash Flows for the Three Months
Ended March 31, 1998 and 1997 .................................. 6
Notes to the Condensed Consolidated
Financial Statements ........................................... 7 - 8
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations .................................................. 9 - 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings .............................................. none
Item 2. Changes in Securities .......................................... none
Item 3. Defaults upon Senior Securities ................................ none
Item 4. Submission of Matters to a Vote
of Security Holders ............................................ none
Item 5. Other Information .............................................. none
Item 6. Exhibits and Reports on Form 8-K ............................... 14
Exhibit Index .................................................. 16
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
3
<PAGE> 4
GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
=====================================================================================================
MARCH 31, December 31,
1998 1997
- -----------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 34,487 $ 54,359
Short-term investments 38,489 18,410
Accounts receivable 134,063 168,968
Costs and estimated earnings in excess of billings 27,634 22,585
Inventories 14,719 12,251
Deferred income taxes 13,365 13,365
Equity in joint ventures 10,199 12,951
Other current assets 13,319 11,394
-----------------------------
Total current assets 286,275 314,283
- -----------------------------------------------------------------------------------------------------
Property and equipment 197,844 194,339
- -----------------------------------------------------------------------------------------------------
Other assets 45,657 43,187
- -----------------------------------------------------------------------------------------------------
$ 529,776 $ 551,809
=====================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $ 11,321 $ 12,921
Accounts payable 58,479 80,809
Billings in excess of costs and estimated earnings 40,952 51,573
Accrued expenses and other current liabilities 57,149 65,070
-----------------------------
Total current liabilities 167,901 210,373
- -----------------------------------------------------------------------------------------------------
Long-term debt 79,341 58,396
- -----------------------------------------------------------------------------------------------------
Deferred income taxes 25,606 25,606
- -----------------------------------------------------------------------------------------------------
Stockholders' equity
Preferred stock, $0.01 par value, authorized
3,000,000 shares, none outstanding -- --
Common stock, $0.01 par value, authorized 27,000,000
shares; 1998- issued and outstanding 18,409,224 shares;
1997- issued and outstanding 18,266,375 shares 185 183
Additional paid-in capital 44,193 39,836
Retained earnings 221,291 223,498
-----------------------------
265,669 263,517
Unearned compensation (8,741) (6,083)
-----------------------------
256,928 257,434
- -----------------------------------------------------------------------------------------------------
$ 529,776 $ 551,809
=====================================================================================================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE> 5
GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED - IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
================================================================================
THREE MONTHS ENDED MARCH 31, 1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
Revenue $ 183,322 $ 146,821
Cost of revenue 164,148 130,971
-----------------------------
GROSS PROFIT 19,174 15,850
General and administrative expenses 18,232 16,643
-----------------------------
OPERATING PROFIT (LOSS) 942 (793)
- --------------------------------------------------------------------------------
Other income (expense)
Interest income 2,500 1,480
Interest expense (1,902) (1,433)
Gain on sales of property
and equipment 609 620
Other, net 80 511
-----------------------------
1,287 1,178
- --------------------------------------------------------------------------------
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,229 385
Provision for income taxes 847 142
- --------------------------------------------------------------------------------
NET INCOME $ 1,382 $ 243
================================================================================
Net income per share
Basic $ 0.08 $ 0.01
Diluted $ 0.08 $ 0.01
Weighted average shares
of common stock
Basic 17,636 17,547
Diluted 17,932 17,721
Dividends per share $ 0.195 $ 0.18
================================================================================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
5
<PAGE> 6
GRANITE CONSTRUCTION INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED- IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
===============================================================================================================
THREE MONTHS ENDED MARCH 31, 1998 1997
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities
Net income $ 1,382 $ 243
Add (deduct) noncash items included in net income:
Depreciation, depletion and amortization 9,193 9,386
Gain on sales of property and equipment (609) (620)
Decrease in unearned compensation 720 583
Equity in loss of affiliates 357 114
Cash provided by (used in):
Accounts and notes receivable 33,694 8,328
Inventories (2,468) (813)
Equity in construction joint ventures 2,752 (15,470)
Other assets (1,644) 2,228
Accounts payable (22,330) (5,253)
Billings in excess of costs and estimated earnings, net (15,670) (880)
Accrued expenses (10,403) (13,217)
-------------------------
Net cash used by operating activities (5,026) (15,371)
- ---------------------------------------------------------------------------------------------------------------
Investing Activities
Additions to property and equipment (13,004) (21,558)
Proceeds from sales of property and equipment 1,129 740
Investment in affiliates (289) (733)
Additions to notes receivable -- (92)
Repayments of notes receivable 128 456
Additions to investments and other assets (961) (1,240)
Purchases of short-term investments (27,543) (3,794)
Maturities of short-term investments 7,464 13,160
-------------------------
Net cash used by investing activities (33,076) (13,061)
- ---------------------------------------------------------------------------------------------------------------
Financing Activities
Additions to long-term debt 60,000 --
Repayments of long-term debt (40,655) (429)
Employee stock options exercised 266 93
Repurchase of common stock (285) (464)
Dividends paid (1,096) (1,088)
-------------------------
Net cash provided (used) by financing activities 18,230 (1,888)
- ---------------------------------------------------------------------------------------------------------------
Decrease in cash and cash equivalents (19,872) (30,320)
Cash and cash equivalents at beginning of period 54,359 38,663
-------------------------
Cash and cash equivalents at end of period $ 34,487 $ 8,343
===============================================================================================================
Supplementary Information
Cash paid during the period for:
Interest $ 1,902 $ 1,435
Income taxes 3,921 32
Noncash investing and financing activity:
Restricted stock issued for services $ 3,795 $ 3,498
===============================================================================================================
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
6
<PAGE> 7
GRANITE CONSTRUCTION INCORPORATED
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
1. BASIS OF PRESENTATION: The condensed consolidated financial statements
included herein have been prepared by Granite Construction Incorporated
(the "Company"), without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted, although the Company believes the disclosures
which are made are adequate to make the information presented not
misleading. Further, the condensed consolidated financial statements
reflect, in the opinion of management, all normal recurring adjustments
necessary to present fairly the financial position at March 31, 1998
and the results of operations and cash flows for the periods presented.
The December 31, 1997 condensed consolidated balance sheet data was
derived from audited financial statements, but does not include all
disclosures required by generally accepted accounting principles.
Interim results are subject to significant seasonal variations and the
results of operations for the three months ended March 31, 1998 are not
necessarily indicative of the results to be expected for the full year.
2. INVENTORIES: Inventories consist primarily of quarry products valued at
the lower of average cost or market.
3. PROPERTY AND EQUIPMENT:
<TABLE>
<CAPTION>
MARCH 31, December 31,
1998 1997
--------------------------
(UNAUDITED)
<S> <C> <C>
Land $ 20,880 $ 20,654
Quarry property 35,863 35,862
Buildings and leasehold improvements 17,175 17,175
Equipment and vehicles 426,192 416,073
Office furniture and equipment 4,288 5,467
------------------------
504,398 495,231
Less accumulated depreciation,
depletion and amortization 306,554 300,892
------------------------
$197,844 $194,339
========================
</TABLE>
4. LONG-TERM DEBT: In March 1998 the Company issued long-term debt in the
amount of $60.0 million to a group of institutional holders. The notes
are due in nine equal annual installments beginning in 2002 and bear
interest at 6.54% per annum. Of the proceeds of the notes, $39.0
million was used to retire the Company's outstanding bank revolving
credit notes.
7
<PAGE> 8
GRANITE CONSTRUCTION INCORPORATED
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
- --------------------------------------------------------------------------------
5. EARNINGS PER SHARE: In accordance with the disclosure requirements of
SFAS 128, a reconciliation of the numerator and denominator of basic
and diluted earnings per share is provided as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
NUMERATOR - BASIC AND DILUTED EARNINGS PER SHARE
Net income $ 1,382 $ 243
================================================================================
DENOMINATOR - BASIC EARNINGS PER SHARE
Common stock outstanding 18,332 18,199
Less restricted stock outstanding 696 652
--------------------
TOTAL 17,636 17,547
--------------------
Basic earnings per share $ 0.08 $ 0.01
================================================================================
DENOMINATOR - DILUTED EARNINGS PER SHARE
Denominator - Basic Earnings per Share 17,636 17,547
Effect of Dilutive Securities:
Common stock options 46 54
Warrants 62 --
Restricted stock 188 120
--------------------
TOTAL 17,932 17,721
--------------------
Diluted earnings per share $ 0.08 $ 0.01
================================================================================
</TABLE>
6. CONTINGENCIES: The Company is currently a party to various claims and
legal proceedings, none of which is considered by management to be
material to the Company's financial position.
7. RECLASSIFICATIONS: Certain prior year financial statement items have
been reclassified to conform to the current year's presentation.
8. RECENT ACCOUNTING PRONOUNCEMENTS: In June 1997, the Financial
Accounting Standards Board issued Statement of financial Accounting
Standards No. 130, (SFAS 130), "Reporting Comprehensive Income", which
specifies the computation, presentation and disclosure requirements for
comprehensive income. The Company implemented SFAS 130 during the first
quarter of 1998. There was no impact on the Company's financial
position, results of operations or cash flows. Comprehensive income and
net income are the same.
In June 1997 the FASB issued Statement of Financial Accounting
Standards No. 131 ("SFAS 131"), "Disclosures about Segments of an
Enterprise and Related Information". SFAS 131 requires publicly-held
companies to report financial and other information about key
revenue-producing segments of the entity for which such information is
available and is utilized by the chief operations decision maker.
Specific information to be reported for individual segments includes
profit or loss, certain revenue and expense items and total assets. A
reconciliation of segment financial information to amounts reported in
the financial statements would be provided. SFAS 131 is effective for
the Company at year-end 1998 and the impact of adoption has not been
determined.
8
<PAGE> 9
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the quarter ended March 31, 1998 was $183.3 million, an increase of
$36.5 million, or 24.9%, from last year. The increase was primarily attributable
to a strong backlog and the successful execution of work from both operating
divisions. The increase also reflects unanticipated contributions made from
emergency work on the West Coast caused by severe weather conditions.
For the three months ended March 31, 1998, revenue from public sector contracts
increased $33.4 million to $136.3 million, or 74.3% of total revenue, from
$102.8 million, or 70.0% of total revenue in 1997. Revenue in the Company's
primary geographical area, California, increased to $94.5 million of total
revenue in 1998 from $84.2 million in 1997, but decreased as a percentage of
total revenue from 57.4% of total revenue in 1997 to 51.6% of total revenue in
1998.
REVENUE BY MARKET SECTOR
THREE MONTHS ENDED MARCH 31,
(IN MILLIONS)
<TABLE>
<CAPTION>
1998 1997
------------------ ------------------
$ % $ %
------ ------ ------ ------
<S> <C> <C> <C> <C>
Public 136.3 74.3% 102.8 70.0%
Private 28.1 15.4% 26.0 17.7%
Materials 18.9 10.3% 18.0 12.3%
------ ------ ------ ------
183.3 100.0% 146.8 100.0%
====== ====== ====== ======
</TABLE>
Backlog at March 31, 1998 was $917.4 million, a $16.7 million decrease from
March 31, 1997 and a $7.6 million increase from December 31, 1997. New awards
for the first quarter of 1998 totaled $191.0 million versus $483.0 million for
the same period in 1997. New awards in 1998 were consistent with those in the
first quarter of 1997 after adjusting for the Company's $303.1 million portion
of the Utah I-15 contract which was awarded in the first quarter of 1997.
The public sector backlog increased to 93.9% of total backlog from 93.4% at
December 31, 1997 and 92.6% at March 31,1997.
AWARDS AND BACKLOG
END OF PERIOD
(IN MILLIONS)
<TABLE>
<CAPTION>
AWARDS BACKLOG
------ -------
<S> <C> <C> <C>
1994
----
Q1 112 665
Q2 149 640
Q3 195 595
Q4 128 550
1995
----
Q1 200 644
Q2 303 721
Q3 143 557
Q4 289 590
1996
----
Q1 188 624
Q2 260 636
Q3 383 716
Q4 106 598
1997
----
Q1 483 934
Q2 318 1,009
Q3 370 1,050
Q4 170 910
1998
----
Q1 191 917
</TABLE>
Gross profit for the quarter ended March 31, 1998 was $19.2 million, or 10.5% of
revenue, as compared to $15.9 million, or 10.8% of revenue, for the first
quarter of 1997. The slight decrease in gross profit margin percent relates to
an increase in revenue from work that had not met the 25% completion threshold
for profit recognition.
General and administrative expenses for the three months ended March 31, 1998
were $18.2 million, or 9.9% of revenue versus $16.6 million, or 11.3% of revenue
in the same period last year. The increase reflects higher variable compensation
due to higher profit levels and the impact of increased business development and
estimating activities with offices in Florida, Maryland and Nevada opened after
the first quarter of 1997.
9
<PAGE> 10
Net income for the quarter ended March 31, 1998, was $1.4 million, or $0.08 per
diluted share, an increase of $1.2 million or $0.07 per diluted share from the
net income of $0.2 million, or $0.01 per diluted share for the same period in
1997.
OUTLOOK
(1) With respect to the federal transportation funding, congressional
conferees continue to iron out the differences between the House and
Senate versions of the federal surface transportation reauthorization
bill. The major issues being debated at this time include the levels of
funding for highways and transit and identifying where the necessary
budget off-sets will come from. Also still unknown is what the Republican
leadership's response will be to President Clinton's request that $18
billion be pared from the highway portion of the six-year bill. There is a
chance the President could decide to veto the bill, primarily because the
current funding levels exceed the amounts previously set in the budget
resolution. According to our industry trade association lobbyists,
Congress is hopeful of having a bill on the President's desk before the
Memorial Day recess. The short-term extension to the previous
authorization expired May 1, 1998. However, at this time, we do not
anticipate any major delays or cancellations of projects in the states
where we are actively bidding and building work.
BACKLOG BY MARKET SECTOR
(IN MILLIONS)
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
------------------- -------------------
$ % $ %
------ ------ ------ ------
<S> <C> <C> <C> <C>
Public 861.7 93.9% 849.5 93.4%
Private 55.7 6.1% 60.3 6.6%
------ ------ ------ ------
917.4 100.0% 909.8 100.0%
====== ====== ====== ======
</TABLE>
(1) Meanwhile, a strong economy in California is producing
larger-than-anticipated gasoline tax revenues, according to a recent
California Department of Transportation (Caltrans) report. Caltrans
forecasts the state highway account will have a $2 billion cash reserve by
December 1999. Presumably, this money will be spent on projects in the
State Transportation Improvement Program, California's long-term
transportation plan and on maintenance of the state's highway and transit
systems. In the meantime, there is the worry that the money in the highway
account could be siphoned for other non-highway programs and purposes. To
prevent this, Granite and other transportation interests are supporting
Assembly Constitutional Amendment 30, a bill that would place an
initiative on the November ballot to tighten the current constitution
limiting the borrowing of gas tax funds and local transit revenues for
general purposes. ACA 30 has cleared various Assembly committees. The bill
must pass the full Assembly and Senate by mid-June to appear on the
November 1998 ballot.
SEASONALITY OF BUSINESS
REVENUE AND NET INCOME BY QUARTER
(IN MILLIONS)
<TABLE>
<CAPTION>
NET
REVENUE INCOME
------- ------
<S> <C> <C> <C>
1994
----
Q1 107 (2)
Q2 174 5
Q3 240 14
Q4 173 3
1995
----
Q1 105 1
Q2 227 8
Q3 307 13
Q4 256 6
1996
----
Q1 154 0
Q2 249 9
Q3 303 15
Q4 224 3
1997
----
Q1 147 0
Q2 243 8
Q3 329 14
Q4 310 6
1998
----
Q1 183 1
</TABLE>
10
<PAGE> 11
(1) Also on the political front, we are working with a broad coalition to
defeat Proposition 224, the so-called "Competitive Bidding" initiative.
This measure is an attempt by a state employees union to effectively
prevent Caltrans and other public agencies from contracting out design
work to private engineering and architectural companies. If Proposition
224 should pass, the design for all state projects--highways, schools and
other state facilities--would be limited to state employees. This would
create a significant bottleneck, affecting between $4 billion and $6
billion worth of projects annually and prompting projects to be delayed by
at least 18 months, according to Taxpayers Against 224, a broad coalition
opposing the measure. We strongly urge our California stockholders and
employees to vote against Proposition 224.
(1) Our continued concern is the growing shortage of craft workers in all of
the areas where we work--a common problem in our industry. The lack of
skilled workers could inhibit our ability to take on new work. It also
could have a negative impact on our business through higher job costs
associated with decreased productivity. We are addressing this problem by
expanding our training and development programs to the field and by
broadening our recruiting efforts in both divisions. We are also examining
ways in which technology can play a role in helping us to mitigate this
problem.
(1) Looking ahead, our Heavy Construction Division has some excellent
opportunities to bid over the next six months, including the $1.0 billion
Alameda Corridor project in Southern California, several large highway
projects in the Southeastern U.S., and the San Francisco Bay Area bridge
retrofit projects. As a result of a mild Utah winter, our Interstate 15
rebuild joint venture project in Utah is currently ahead of schedule, and
we now expect it could reach the 25% completion threshold, at which our
company recognizes earnings on a job, in the second quarter of 1998.
(1) Our Branch Division is off to a good start in 1998, buoyed by emergency
work created by El Nino-related flood damage. We have some concern that
the very wet weather has forced the delay of construction of our sizeable
Branch backlog creating a relatively short work season. The Branch
Division should continue to benefit this year from healthy transportation
budgets and strong economies in California, Utah and Nevada.
(1) This "Outlook" section contains forward-looking statements which are made
in reliance on the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such
forward-looking statements involve risks and uncertainties, including,
without limitation, changes in the composition of applicable federal and
state legislation appropriation committees; federal and state
appropriation changes for infrastructure spending; the general state of
the economy; competition and pricing pressures; state referendums and
initiatives; and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission.
11
<PAGE> 12
LIQUIDITY AND CAPITAL RESOURCES
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DOLLARS IN THOUSANDS 1998 1997
================================================================================
<S> <C> <C>
Cash and cash equivalents, March 31 $ 34,487 $ 8,343
Net cash provided (used) by:
Operating activities (5,026) (15,371)
Investing activities (33,076) (13,061)
Financing activities 18,230 (1,888)
Capital expenditures 13,004 21,558
Working capital 118,374 75,451
- --------------------------------------------------------------------------------
</TABLE>
Cash used by operating activities of $5.0 million for the three months ended
March 31, 1998 represents an $10.3 million decrease from the 1997 amount for the
same period. The decrease primarily reflects the higher profit level and
collection of the Company's accounts and notes receivable. Changes in cash
provided from operations reflect seasonal variations based on the amount and
progress of work being performed.
Cash used by investing activities in 1998 increased $20.0 million primarily due
to an increase in short-term investments offset by a decrease in property and
equipment purchases.
Cash provided by financing activities for the three months ended March 31, 1998
increased considerably due to the issuance of long-term debt in March 1998 in
the amount of $60 million to a group of institutional holders. The notes are due
in nine equal annual installments beginning in 2002 and bear interest at 6.54%
per annum. Of the proceeds of the debt, $39.0 million was used to retire
existing debt.
The Company's current borrowing capacity under its revolving line of credit is
$75 million of which $71.4 was available on March 31, 1998. The Company believes
that its current cash balances combined with cash flows from operations and cash
available under its revolving credit agreements will be sufficient to meet its
operating needs, anticipated capital expenditure plans and other financial
commitments at least through 1998.
12
<PAGE> 13
PART II. OTHER INFORMATION
13
<PAGE> 14
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
Exhibit 27 - Financial Data Schedule
b) Reports on Form 8-K
None
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRANITE CONSTRUCTION INCORPORATED
By: /s/ William E. Barton
------------------------------------------
Date: May 12, 1998 William E. Barton
------------ Vice President and Chief Financial Officer
15
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRANITE CONSTRUCTION INCORPORATED
By:
------------------------------------------
Date: May 12, 1998 William E. Barton
------------ Vice President and Chief Financial Officer
15
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION PAGE
- ------- ----------- ----
<S> <C> <C>
27 Financial Data Schedule 17
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONDENSED
CONSOLIDATED BALANCE SHEETS, CONDENSED CONSOLIDATED STATEMENTS OF INCOME, AND
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FORM 10-Q, MARCH 31, 1998.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 34,487
<SECURITIES> 38,489
<RECEIVABLES> 134,953
<ALLOWANCES> 890
<INVENTORY> 14,719
<CURRENT-ASSETS> 286,275
<PP&E> 504,398
<DEPRECIATION> 306,554
<TOTAL-ASSETS> 529,776
<CURRENT-LIABILITIES> 167,901
<BONDS> 0
79,341
0
<COMMON> 185
<OTHER-SE> 256,743
<TOTAL-LIABILITY-AND-EQUITY> 529,776
<SALES> 183,322
<TOTAL-REVENUES> 183,322
<CGS> 164,148
<TOTAL-COSTS> 182,380
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,902
<INCOME-PRETAX> 2,229
<INCOME-TAX> 847
<INCOME-CONTINUING> 1,382
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,382
<EPS-PRIMARY> 0.08
<EPS-DILUTED> 0.08
</TABLE>
