Rock Products

JUL 2015

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8 • ROCK products • July 2015 www.rockproducts.com I N D U S T RY N E W S IN THE KNOW G ranite Construction Inc. reported a net loss of $8.6 million for the quar- ter ended March 31, 2015, compared to a loss of $20.6 million in the first quarter of 2014. Losses per share in the quarter were $0.22, compared to $0.53 in the prior-year period. "For some time, we have noted that re- covery for our business would appear first in our Construction Materials seg- ment. This solid performance is a good first step in 2015, and it reinforces our confidence in the continued execution of our Strategic Plan," said James H. Roberts, president and CEO of Granite Construction Inc. "Overall market activity remains sta- ble and competitive," he said. "Contin- ued backlog progression has Granite teams across the country focusing on growing our business, while remaining keenly aware of the need for improved execution in all of our segments." • Construction Materials revenue in the first quarter of 2015 increased 16.8 percent to $41.4 million, com- pared with $35.5 million last year. • Gross profit for the quarter was $0.7 million, compared to a gross loss of $3.5 million last year, thanks in part to increased market demand and mild weather in the West. • Revenue for the first quarter of 2015 increased 10.6 percent to $420.2 mil- lion compared with $379.8 million last year. • Gross profit margin in the first quar- ter was 9.5 percent compared with 5.6 percent in 2014, driven primarily by improved performance in Con- struction and Construction Materials. • Construction revenue in the first quarter of 2015 increased 20.0 per- cent to $188.5 million, compared with $157.0 million last year. • Gross profit margin was 11.5 per- cent, compared with 5.8 percent a year ago, driven by increased rev- enue and by recognition of certain contract claims. • Large Project Construction revenue in the first quarter of 2015 increased 1.6 percent to $190.3 million, com- pared with $187.3 million last year. "A good start to the year, coupled with solid project execution, bodes well for improved results in 2015," Roberts said. "As we discussed in February, we are committed to growing across geog- raphies and end markets, despite the lack of a federal spending catalyst. "It is well past the time for Congress to act swiftly and appropriately to pass a well-funded, long-term highway bill this year," said Roberts. "While Con- gress delays their actions, we are ac- tively ramping up the execution of our Strategic Plan." FAST FACT Construction Ma- terials revenue in the first quarter of 2015 increased 16.8 percent. Granite Construction Sees Increase in Construction Materials Segment B ill Schmitz with Gernatt Asphalt Prod- ucts Inc. in Collins, N.Y., testified June 3 on behalf of the National Stone, Sand and Gravel Association (NSSGA) before the House Small Business Committee at their hearing, "The Road Ahead: Small Businesses and the Need for a Long- Term Surface Transportation Reautho- rization." The hearing emphasized the importance of action on a long-term and stably funded highway bill. Schmitz's testimony focused on the im- portance of the nation's surface trans- portation system to small businesses – particularly small aggregates compa- nies. He told the committee, "Congress needs to do what they were elected to do. Stop kicking the can down the road and address the long-term funding of our nation's surface transportation infrastructure. No more short-term extensions. Seventy percent of NSSGA members are small businesses. Reau- thorization is critical to us." Producer Testifies Before Congress on Transportation Reauthorization FAST FACT Bill Schmitz with Gernatt Asphalt Products Inc. in Col- lins, N.Y., testified June 3 on behalf of the NSSGA.

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