Granite Construction Incorporated (NYSE:GVA) Q4 2014 Earnings Conference Call - Final Transcript

Feb 27, 2015 • 11:00 am ET


Granite Construction Incorporated (NYSE:GVA) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning. My name is Katherine and I will be your conference facilitator today. At this time I would like to welcome everyone to the Granite Construction Investor Relations' Fourth Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise, and after the speakers' remarks there will be a question-and-answer period. [Operator Instructions].

It is now my pleasure to turn the floor over to your host, Granite Construction's Director of Investor Relations, Ron Botoff. Sir, the floor is yours.

Ron Botoff

Thank you, Katherine. Good morning. Welcome to the Granite Construction Incorporated fourth quarter 2014 earnings conference call. I'm here today with our President and CEO, Jim Roberts and our Senior Vice President and CFO, Laurel Krzeminski. We'll begin today with an overview of the Company's Safe Harbor language. Some of the discussions today may include forward-looking statements. Actual results could differ materially from the statements made today. So please refer to Granite's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

A reconciliation of non-GAAP results is included as part of our fourth quarter earnings press release. Certain non-GAAP measures may be discussed during the call and from time-to-time by the Company's executives. For more information please visit our Investor Relations website at Thank you.

Now, I would like to turn the call over to Granite Construction Incorporated, Chief Executive Officer, Jim Roberts.

James H. Roberts

Thank you, Ron and good morning everyone. Before Laurel discusses our financial results and our initial 2015 outlook, today I begin by congratulating Granite teams from coast-to-coast. As 2014, was the safest year in our Company's history. This is a continuation of more than a decade long trend of safety improvement for Granite. We are far from finished. We continue to raise the bar in this area, always targeting an ultimate goal of zero injuries.

It is this commitment that helped drive operational and financial improvement over the last 12-months. And it is this commitment that gives me confidence that operational efficiency and execution continue to gain momentum now in 2015. I also want to take just a moment to recognize Patrick Kenny, who will be retiring as Kenny Constructions Group Manager. Thank you, Patrick, for your four plus decades of service and leadership at Granite, at Kenny and in the construction industry.

Last November I explained that fourth quarter results would be dependent on four factors; Project execution is the first item that we talked about last quarter. And we were pleased to see improved operating trends drive continued margin growth across the Company. Excluding the impact of 2013's restructuring charges, profit margin performance in the fourth quarter of 2014 translated into a net income increase of more than $14 million year-over-year, with 2014 annual net income improving more than $30 million compared to last year.

Maintaining momentum