Market conditions drive decision to retain the Water Resources and Mineral Services businesses
Form 8-K with segment information for historical periods to be filed prior to our third quarter Form 10-Q filing
WATSONVILLE, Calif., September 19, 2022--(BUSINESS WIRE)--Granite Construction Incorporated (NYSE: GVA) today announced its decision to retain the Water Resources and Mineral Services businesses that were previously classified as held for sale and reported in discontinued operations. The financial results for these businesses will be reported within continuing operations, and their assets and liabilities will no longer be classified as held for sale. A Form 8-K with segment information for each of the previously reported 2022 and 2021 quarterly periods and for the years ended 2021 and 2020 will be filed with the Securities and Exchange Commission prior to our third quarter Form 10-Q filing.
"Although we saw significant interest in the Water Resources and Mineral Services businesses, current market conditions undermined our efforts to secure appropriate value for the businesses," stated Kyle Larkin, Granite President and Chief Executive Officer. "Both businesses have performed very well this year, supported by strong underlying market demand which remains resilient. The ongoing drought concerns across much of the country, coupled with the strong demand for mineral resources, makes us optimistic about the outlook for these businesses. Our teams’ ability to identify and develop new water sources and deliver potable water to communities complements our civil construction business. We believe these businesses will drive greater shareholder value and be accretive to EBITDA margin."
Larkin continued, "During 2022, we have invested in our businesses and returned value to shareholders with over 2.3 million shares repurchased, including 367,000 shares in the third quarter as we completed the final settlement of the accelerated share repurchase. Granite’s liquidity remains strong. In the near term, our priority is to continue to invest in, strengthen, and grow our businesses in alignment with our plan."
Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite provider of civil construction. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, and connect with Granite on LinkedIn, Twitter, Facebook and Instagram.
Any statements contained in this news release that are not based on historical facts, including statements regarding future events, including the filing of a Form 8-K with segment information for historical periods, the reclassification of the Water Resources and Mineral Services businesses as continuing operations and no longer being held for sale, the outlook for the retained businesses, and retained businesses will drive greater shareholder value and be accretive to EBITDA margin, the near term priority to invest in, strengthen, and grow our businesses, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, guidance, Committed and Awarded Projects ("CAP") and results, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by words such as "future," "outlook," "assumes," "believes," "expects," "estimates," "anticipates," "intends," "plans," "appears," "may," "will," "should," "could," "would," "continue," "guidance" and the negatives thereof or other comparable terminology or by the context in which they are made. These forward-looking statements are estimates reflecting the best judgment of senior management and reflect our current expectations regarding future events, including the filing of a Form 8-K with segment information for historical periods, the reclassification of the Water Resources and Mineral Services businesses as continuing operations and no longer being held for sale, the outlook for the retained businesses, the retained businesses will drive greater shareholder value and be accretive to EBITDA margin, the near term priority to invest in, strengthen, and grow our businesses, occurrences, opportunities, circumstances, activities, performance, growth, demand, strategic plans, shareholder value, outcomes, outlook, guidance, CAP and results. These expectations may or may not be realized. Some of these expectations may be based on beliefs, assumptions or estimates that may prove to be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being realized or otherwise materially affect our business, financial condition, results of operations, cash flows and liquidity. Such risks and uncertainties include, but are not limited to, those described in greater detail in our filings with the Securities and Exchange Commission, particularly those described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Due to the inherent risks and uncertainties associated with our forward-looking statements, the reader is cautioned not to place undue reliance on them. The reader is also cautioned that the forward-looking statements contained herein speak only as of the date of this news release and, except as required by law; we undertake no obligation to revise or update any forward-looking statements for any reason.
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Wenjun Xu, 831-761-7861
Erin Kuhlman, 831-768-4111