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Granite Construction Incorporated (GVA)

NYSE - NYSE Delayed price. Currency in USD
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40.73-0.70 (-1.69%)
At close: 4:00PM EDT
40.73 0.00 (0.00%)
After hours: 05:37PM EDT
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  • L
    Long Term
    Will gain from road bill - just need to buy ORN for that extra kick..................then could see over $50 plus.
  • T
    Tracey
    Is anyone hearing earnings whispers on Granite? A strong couple of quarters may reestablish the investability of this stock....also an infrastructure package that focuses on traditional infrastructure (which doesn't seem to be what is proposed at this time) would be a positive signal.
  • T
    Tom
    Per ENR 2/23/21... Internal financial controls broke down, inflating Granite Construction's initial financial performance report for 2019, and some staff and managers provided auditors investigating what had happened with "potentially misleading" information, the company said in its newly released 2019 annual report.

    The wording of the Granite statement appears to open the door to further investigation for civil or criminal violations of securities law. The contractor, which had already informed the Securities and Exchange Commission of its investigation, says the agency has now issued subpoenas related to the financial disclosure problems.

    In its restatement of 2019 results, the Watsonville, Calif.-based company reported: "Forecasts were not always prepared to reflect the most probable outcome" about costs, project risks and potential claims.

    In addition, employees sometimes provided internal and external auditors "incomplete and potentially misleading information" about "projects and forecasts" in the heavy-civil operating group. Forecasts sometimes reflected aggressive or optimistic projections, achievable targets, management directives or hoped-for efficiencies, the company stated.

    In some cases, the company's auditors found that employees and management "knew or should have known" that forecasts and directives from management didn't comply with company policies and would have shown higher forecasted costs and project risks.

    The company lost $90 million in 2019, on revenue of $3.4 billion, compared to net income of $600,000 in 2018. Project losses in Granite's heavy-civil operating unit were the biggest cause of a sharp decline in gross profit in 2019, the company reported.

    In 2019 and 2018, the company now states, its heavy-civil operating group sustained gross losses of $138.7 million and $54.4 million, respectively.

    Going back almost two years, the tone of the Granite's financial reporting was brighter.

    In April 2019, the company attributed much of a $34-million loss in the first quarter, up from an $11-million loss in the first quarter of 2018, to cold and inclement weather. The backlog was growing, and the company was fine-tuning its bidding and pricing of work, noted James Roberts, chief executive at the time.

    In new reports, Granite now states that it has determined it did not maintain effective internal control over financial reporting and disclosure procedures due to the existence of material weaknesses. As a result, it has implemented "certain" personnel and organizational changes.

    Class-action securities and stockholder lawsuits filed in 2019 and 2020 against Granite, traded as GVA on the NY Stock Exchange, still are pending.
  • C
    Chief
    Stock declines more on convertible notes offering as the potential buyers short the stock to lock in a better conversion price. What more can be done to rake us over the coals any more vigorously?
  • B
    Bill
    Cashing out my last 10,000 shares tomorrow. Completely lost confidence in a company that needs 11 1/2 months to produce 2019 financials. Hope I'm wrong, but I don't see this having anything but a bad ending.
  • E
    Energy Saver
    This stock is going nowhere for many quarters until one of three things (1) replace CEO (2) show a quarter or two of solid
    performance and no more "surprises" (3) acquisition.

    How many more "surprises" before the Board finally takes their fiduciary responsibility seriously.

    GVA missed out on one of the great 2-3 year periods for construction stocks (MLM, VMC, STRL, etc)
  • K
    Kenneth
    GVA - HAYWIRE BUSINESS PLAN - lacks proper training for management of multiple projects. The intense public works competition prevents making big profits but doesn't prevent big time loses. GVA urgently needs to develop a division that trains managers so that they will be able to recognize and document increased scopes of work to ensure payment for the same. GVA also needs to lead a political group which over turns the present in equitable contract provisions in all public works contracts which eliminates jury trials and mandates arbitration for contract disputes. GVA et. al. are in a business with no allies -- only competitors: banks, sureties, insurance companies, unions, sub- contractors, material suppliers, design engineers, public works owners [ Caltrans ] equipment suppliers, public works mandates for 15% of the bid price for minority contractor participation, disadvantage war veterans 3% of the bid price. The culmination of these issues reduces the general contractor's ability to earn a profit to the one percent[ at best ] which eventually puts even the best managed general contractors out of business.
  • C
    Chief
    Granite Construction Incorporated (NYSE: GVA) announced today that it has further strengthened its position in the water and wastewater market by acquiring certain assets of Lametti & Sons, Inc. ("Lametti"), a Minnesota-based company with expertise in cured-in-place pipe (CIPP) rehabilitation and trenchless renewal.
  • B
    Bill
    Why are they posting notices of small contract awards? Is a $10 million contract for a $3 billion company supposed to impress investors? Make some money for a change, Slick Jimmy. That's what will impress us.
  • B
    Bobby
    Granite pats itself on the back for PC focused sustainability progress while 2019 year end financials and all 2020 financials remain unreported. As a stockholder I would like to see Granite's CEO and BOD shelf such initiatives until the company can ensure investors that profitability goals are being taken care of.
  • C
    Chief
    Goldman Sachs spreads the wet blanket over Roberts: "Goldman Sachs lowered the price target for Granite Construction Inc. (NYSE: GVA) from $29 to $26. Granite Construction closed at $27.68 on Friday." (Benzinga)
  • T
    Thermobaric
    GVA is the Enron of Construction. The primary reason Gimmie Jimmy provided misleading responses to worried analysts during the last year is because Jimmy can't handle the truth.

    GVAs VIEs (Variable Interest Entities) + Covid-19 + Write Downs + Performance Guarantees = Bankruptcy.

    You don't need a an MBA, or a CPA, or a GED to see this coming.

    Pull up the most recent 10-K, and flip to page F-27. The most recent 10-K is ancient (2018) because Slick Jimmy can't process the truth, hence he won't release the audited financials from 2019.

    "Due to the joint and several nature of the performance obligations under the related owner contracts, if any of the partners fail to perform, WE [GVA] and the remaining partners, if any, WOULD BE RESPONSIBLE for performance of the outstanding work (i.e., we provide a performance guarantee). At December 31, 2018, there was $3.1 billion of construction revenue to be recognized on unconsolidated and line item construction joint venture contracts of which $1.0 billion represented our share and the remaining $2.1 billion represented our partners’ share. We are not able to estimate amounts that may be required beyond the remaining cost of the work to be performed......"

    https://www.sec.gov/Archives/edgar/data/861459/000156459019003791/gva-10k_20181231.htm

    For the TL;DR employees, lenders, and investors, I capitalized the relevant portion from the 10-K.
    gva-10k_20181231.htm
    www.sec.gov
  • J
    Johnny
    Roberts, Desai, & Krzeminski all have their own independent lawyers now. All being represented by someone different than the company and each other. Investigation must be getting down to the bottom of things ...
  • C
    Chief
    The $200 million convertible notes deal was sold last night and since the damage to the stock has been done, I'm hoping they can place the $30 million shoe. I suppose we're to conclude the buyers of the notes believe the stock will be $30 somewhere down the line. GVA needs to be acquired with the C-suite and board room cleaned out. Roberts' performance has been disgraceful along with the board which enabled it.
  • C
    Chief
    Q2 results not bad, some sequential improvement, but the year will obviously be a back end story. Now is the time to enter or add. Wish I could do more.
  • T
    Tracey
    Is this new management a good signal? Why is SP down so significantly? I wish these financials would be published.
  • C
    Chief
    More Heavy Civil Division disputes and charge offs negatively impacted Q3 results. Roberts' tacit assurances at Q2 that all was behind them do not seem to have held up. Heads have rolled at the top of Heavy Civil, but I'm not sure that is enough. Roberts' previous assurances that the back half of 2019 would be a winner and save the year are obviously at risk.
  • B
    Bobby
    BOD Election. We have the following up for re-election. David Darnell - Bank of America. Director of a museum. Age 68. On the audit/compliance panel. He has to be held responsible for 2019 HCG issues. He is audit. Celeste Mastin - Past CEO of petro lube company. GVA highlights her chemical and building materials sector experience. That doesn't tie closely enough to heavy highway construction. Gaddi Vasquez - govmnt affairs of Edison International. Dir. of the Peace Corps? Lots of Calif. boards. No hands on heavy highway experience. BA in Public Service Management... Age 66. Molly Campell - GVA's newest token minority member. How can getting a job based on your race, religion, ect not be as much as discrimination as not getting the job?? Part of the Audit/compliance team but not there in 2018 but has been there through the cleanup. Not going to vote to give someone a job because they are a minority. It isn't a good business decision and it's not fair to the workforce of GVA. People who are actually working for a living. Oh. Molly's resume. she was with Treasury. Dir of the Port of New York and New Jersey. On another BOD. Degree in political science?? David Kelsey - CFO of Verdezyne. A chemical company. No heavy highway experience. Past CFO Chaired the Audit/Compliance group. He is definitely responsible for the recent GVA problems. McNally - nominated to take of for Bjork. Another Skanska executive. 66 I link him with the recent failures of Bjork. GVA needs to punish this BOD. They accept good pay to guide GVA and they have failed in a colossal manner.
  • R
    Robert
    Looks like audit may be complete. SA just posted article whereby they admit their 2018 and 2019 financials are overstated. By how much is the real question.
  • B
    Bill
    I hope Larkin's promotion to COO is an indication that Slick Jimmy is about out the door. Big boost in the stock price when that happens.