This is just one finding revealed in the company's results for the fourth quarter and year ended 31 December.
Fiscal year 2020 results confirm revenue increased 3.4% in 2020 to $3.6 billion, compared to $3.4bn in the prior year while gross profit increased 55.5% in 2020 to $344.8m, compared to $221.7m in the prior year.
Selling, general & administrative (SG&A) expenses in 2020 were $353.3m or 9.9% of revenue, compared to $308.0m or 8.9% of revenue in the prior year. The increase was primarily attributable to $35.6m of non-recurring legal and accounting investigation fees.
Findings for the fourth quarter of 2020 were net income of $8.0m, or $0.17 per diluted share compared to a net loss of $19.4m, or $0.42 per diluted share, in the prior year. Adjusted net income for the fourth quarter of 2020, which excludes transaction costs, amortisation of debt discount and non-recurring legal and accounting investigation costs, was $18.8m, or $0.41 per diluted share compared to an adjusted net loss of $12.5m, or $0.27 per diluted share, in the prior year.
Revenue increased 6.8% in the fourth quarter of 2020 to $945.6m compared to $885.6m in the fourth quarter of 2019 while gross profit increased to $106.6m in the fourth quarter of 2020 compared to $51.2m in the fourth quarter of 2019.
SG&A expenses in the fourth quarter of 2020 were $100.8m or 10.7% of revenue, compared to $83.4m or 9.4% of revenue in the fourth quarter of 2019. The increase was primarily attributable to non-recurring legal and accounting investigation fees.
Granite president Kyle Larkin says: “Fiscal year 2020 was one of the most challenging years in Granite’s history as we navigated the pandemic and the Audit/Compliance Committee’s internal investigation. Despite these challenges, our teams performed well, particularly in our vertically integrated businesses. Our continued focus on enhancing profit and cash flow produced record operating cash flow in 2020. Looking ahead, we remain committed to positioning our balance sheet and CAP for future growth and success. While we continue to manage risk in the Heavy Civil Operating Group, I am confident that we have established the appropriate parameters to not only execute on existing projects, but also rebuild the portfolio by prioritizing projects with an appropriate risk profile as we leverage federal, state and local infrastructure funding opportunities.”
