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

Feb 27, 2015 • 11:00 am ET

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

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Q & A
Operator
Operator

[Operator Instructions].

Our first question comes from Nick Coppola with Thompson Research Group.

Analyst
Nicholas Coppola

On the slower large project progression, in your opening comments you referenced award delays and weather and was that largely about I-4 and broad-based winter weather? Is there any further color you can add on really the drivers of that -- that four large project progressions?

Executive
James H. Roberts

Yeah, thank you Nick and nice to hear from you. Yeah, I think two things; First of all, the start on I-4 was later than we anticipated and I mentioned that a couple of times along with Laurel. And the progression on the Pennsylvania job, it looks like it will be put into backlog when the financial close occurs, hopefully in March. I said in late first quarter maybe even in the second quarter.

And then on top of that we also have two large alternative procurement projects that we're negotiating now that we had anticipated to put into backlog last year and they did not occur last year, but we're now strongly anticipate to occur in the first part of this year. So kind of that's the combination of large project slowdowns that I talked about.

Analyst
Nicholas Coppola

Okay. And we're looking for I-4 to reach profit recognition in '15 now?

Executive
James H. Roberts

No, I think that our anticipation is that it will progress as planned. We'll move forward in 2015 what the expectation that will probably have some type of recognition on that job in 2015.

Analyst
Nicholas Coppola

Okay. And then last question for you just on weather in Q1 and so a lot country having some pretty severe winter weather, clearly last year was pretty bad as well. So just any kind commentary -- or anything -- in Q1 in terms of project actually given the winter weather?

Executive
James H. Roberts

Well Nick it's interesting, because when you cover the whole country, you get the good, the bad and the ugly every single day with weather. So certainly in the Northeast and the Southeast and the Midwest were slow, because of the weather. But then again on the West Coast for the last month, it's been dry, unusually dry. So we got a good start on the West Coast. So that's the advantage of having a diversified geographic businesses, you're going to be slow in some areas and have the benefit in another areas.

So, probably pretty much as planned right now, I would say that, one of key factors we're looking at in the East is how quickly they come out of this winter weather. And we typically do not anticipate a great deal of work in the first quarter in the East or the Northwest due to the weather in the Midwest and hopefully by the end of March, Mother Nature cooperates and we're able to get back on the ground on most of our projects at the end of March or early April.

Analyst
Nicholas Coppola

Okay, that's great. Thanks for taking my question.

Executive
James H. Roberts

Thanks Nick.

Operator
Operator

Our next question comes from Jerry Revich with Goldman Sachs.

Analyst
Jerry Revich

Hi, good