Granite Construction Incorporated (NYSE:GVA) Q3 2017 Earnings Conference Call Transcript

Oct 27, 2017 • 11:00 am ET


Granite Construction Incorporated (NYSE:GVA) Q3 2017 Earnings Conference Call Transcript


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Good morning. My name is Andrea and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite Construction IR Third Quarter 2017 Earnings Conference Call. Today's call is being recorded. 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) Please note we will take one question and one follow-up question from each participant.

It is now my pleasure to turn the floor over to your host, Granite Construction VP of IR and Government Affairs, Mr. Ron Botoff. Sir, the floor is yours.

Ron Botoff

Welcome to the Granite Construction Incorporated third quarter 2017 earnings conference call. I'm pleased to be here today with President and CEO, Jim Roberts; and EVP and CFO, Laurel Krzeminski.

(Forward-Looking Cautionary Statements)

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

Jim Roberts

Thank you, Ron and good morning, everyone, and thank you for joining us to discuss our third quarter results. Today, I begin by thanking Granite employees and teams for their effort and execution in the third quarter, which resulted in a top-line performance, as well as improved bottom-line results. Safety performance remains steady and though we need to finish strongly to get there. We still target 2017 to be the safest year in our company's history. With that mind, we expect our teams to maintain a consistent safety focus enabling are very busy people to finish the 2017 construction year by getting everyone home safely every single day.

This year's growth and outlook continues to be supported by steady economic print and steady to improving funding environments. Across geographies by the public demand continues to trend positively. So even with another quarter of strong growth bookings remain strong and again we posted another all-time company backlog record at quarter's end of $4.2 billion.

Before I give the call over to Laurel to discuss our results and guidance, let's focus first on our operational performance and on our growth outlook. I begin today with a large project construction segment. In the third quarter performance was impacted by accelerated work on a number of challenging projects that representative significant amount of segment revenue. We are working diligently to finish these projects as quickly as possible in the remainder of 2017 and 2018. We continue to focus on project selection, partner selection, project duration and owner dynamics was significantly higher return expectations and our sights and in our bids.

Looking ahead, steady performance across the newer project in our large project portfolio combined with the steady stream of project wins provides our teams with diverse opportunities to improve operational and financial performance. We were pleased to add two new projects to segment backlog in the quarter. Our federal group was awarded a $165 million contract by the Naval Facilities Engineering Command Pacific better known as NAVFAC, for the Finegayan Utilities and Site Improvements Phase I project in Guam.