Granite Construction, one of the largest diversified construction and construction materials companies in the United State, has provided a business update and third quarter 2020 preliminary select financial information.
The company did not make any borrowings during the quarter on its credit facility and continues to focus on strategic cash management. The company ended the third quarter of 2020 with a CAP of $4.2 billion, which includes over $ 1 billion of best- value procurement work. The CAP balance is modestly higher from second quarter 2020 levels with increased best-value procurement work offsetting lower Heavy Civil operating group backlog which is consistent with the procurement strategy shared in the second half of 2019.
In February of 2020, Granite’s Audit/compliance committee, assisted by independent counsel began an investigation of prior-period reporting for the Heavy civil operating group, and the extent to which these matters affect the effectiveness of Granite’s internal control over the financial reporting.
The investigation is substantially completed and the company has evaluated the impact of the investigation on its prior period financial statements and implemented appropriate remediation actions.