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Granite Construction Incorporated (GVA)

NYSE - NYSE Delayed price. Currency in USD
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27.60+0.71 (+2.64%)
At close: 04:00PM EDT
27.60 0.00 (0.00%)
After hours: 05:24PM EDT

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  • F
    Followup
    Steel Dynamics, Inc.
    almost 1 year since the infrastructure bill was signed, but the money does not seem to have trickled down to the US steel industries and construction companies. $nue $flr $j $acm $gva
  • L
    Long Term
    Finally some good news this morning.
  • S
    Sigma
    I just saw the announcement of the recent settlement with the SEC ($12 million) against Granite and a former SVP. Anyone know any details about the wrongdoing (ahem, alleged wrongdoing - no admission of guilt).
  • L
    LOPERA
    Do you guys follow (http://Themaxgains.tech)? It seems way better than all the spam on the GVA board - The alerts have been great!
  • A
    Antero
    investing with Mrs Florence j theodore is mind blowing .Her regards and concerns on my trades is pretty cool profiting😊😊😊
  • S
    Sacket
    I am staying far away from GVA - It looks like it is going to drop off a cliff. I actually get way better stocks at (http://Themaxgains.tech)
  • 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.
  • B
    Bobby
    GVA finally drops the ax on Jigisha. Ms. Desai was one of the parties responsible for the multimillion dollar debacle centered around large projects. From the top - Roberts, Swanburg, the head of HR, several managers and now finally the CFO that oversaw the financials.
  • 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 ...