Goldfield Announces Improved Results
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E-mailMELBOURNE, FL -- (Marketwired) -- 11/12/15 -- The Goldfield Corporation (NYSE MKT: GV) today announced significantly improved financial results for the three and nine-month periods ended September 30, 2015. The Goldfield Corporation, headquartered in Florida, through its subsidiaries Power Corporation of America, Southeast Power Corporation and C and C Power Line, Inc., is a leading provider of construction services for electric utilities, with operations primarily in the southeastern and mid-Atlantic regions of the United States including Texas.
Nine-Months Ended September 30, 2015
For the nine-months ended September 30, 2015 compared to the same period last year:
- Revenue increased 30.2% to $91.1 million from $69.9 million -- mainly attributable to growth in master service agreement (MSA) work.
- Income from continuing operations before income taxes increased 35.5% to $4.3 million despite losses recognized in the first two quarters of this year on the now completed projects in Texas.
- Net income almost doubled to $2.2 million ($0.09 per share) from $1.3 million ($0.05 per share). Net income for the nine-months ended September 30, 2015 and 2014, included after tax charges of $300,000 and $665,000, respectively, in discontinued operations from a previously disclosed environmental remediation project, which is now completed.
Three-Months Ended September 30, 2015
For the three-months ended September 30, 2015 compared to the same period last year:
- Revenue increased 19.4% to $27.1 million from $22.7 million -- mainly attributable to higher revenue from MSA work.
- Income from continuing operations before income taxes increased 59.0% to $3.0 million from $1.9 million, with our operating margin growing to 15.8% from 13.0%.
- Net income rose 47.1% to $1.7 million ($0.07 per share) from $1.2 million ($0.05 per share). Net income for the three-months ended September 30, 2015 included after tax charges of $99,000 in discontinued operations from the environmental remediation project mentioned above.
Backlog
Twelve-month electrical construction backlog has remained steady. As of September 30, 2015, $88.5 million of backlog is expected to be realized within twelve months, compared to $87.4 million at the same date last year. Total backlog, which includes total revenue estimated over the life of an MSA plus estimated revenue from fixed-price contracts, was $214.5 million as of September 30, 2015, compared to $287.3 million as of the same date last year. This decline resulted from completion of some MSA work, not replaced by new work and the reduction in estimated work under certain MSAs. The size and amount of future projects awarded under MSAs cannot be determined with certainty and revenue from such contracts may vary substantially from current estimates.
John H. Sottile, President and Chief Executive Officer of Goldfield said, "We are pleased with the strong growth in our revenue and our improved operating margin. With the drag from our unprofitable Texas projects and the environmental remediation work completed, we have a positive outlook."
About Goldfield
Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry, primarily in the southeastern and mid-Atlantic regions of the United States including Texas. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities.
For additional information on our third quarter 2015 results, please refer to our Quarterly Report on Form 10-Q being filed with the Securities and Exchange Commission and visit the Company's website at http://www.goldfieldcorp.com.
This press release includes forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995 throughout this document. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "estimate," "plan," and "continue" or similar words. We have based these statements on our current expectations about future events. Although we believe that our expectations reflected in or suggested by our forward-looking statements are reasonable, we cannot assure you that these expectations will be achieved. Our actual results may differ materially from what we currently expect. Factors that may affect the results of our operations include, among others: the level of construction activities by public utilities; the concentration of revenue from a limited number of utility customers; the loss of one or more significant customers; the timing and duration of construction projects for which we are engaged; our ability to estimate accurately with respect to fixed price construction contracts; and heightened competition in the electrical construction field, including intensification of price competition. Other factors that may affect the results of our operations include, among others: adverse weather; natural disasters; effects of climate changes; changes in generally accepted accounting principles; ability to obtain necessary permits from regulatory agencies; our ability to maintain or increase historical revenue and profit margins; general economic conditions, both nationally and in our region; adverse legislation or regulations; availability of skilled construction labor and materials and material increases in labor and material costs; and our ability to obtain additional and/or renew financing. Other important factors which could cause our actual results to differ materially from the forward-looking statements in this press release are detailed in the Company's Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operation sections of our Annual Report on Form 10-K and Goldfield's other filings with the Securities and Exchange Commission, which are available on Goldfield's website: http://www.goldfieldcorp.com. We may not update these forward-looking statements, even in the event that our situation changes in the future, except as required by law.
The Goldfield Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
--------------------------- ---------------------------
Three months ended Nine months ended September
September 30, 30,
--------------------------- ---------------------------
2015 2014 2015 2014
------------- ------------- ------------- -------------
Revenue
Electrical
construction $ 26,813,125 $ 22,111,299 $ 90,509,971 $ 66,520,732
Other 249,236 548,052 553,102 3,399,954
------------- ------------- ------------- -------------
Total revenue 27,062,361 22,659,351 91,063,073 69,920,686
------------- ------------- ------------- -------------
Costs and expenses
Electrical
construction 20,966,266 17,849,577 77,422,210 56,141,402
Other 231,163 420,331 502,040 2,738,397
Selling, general
and administrative 1,072,870 997,214 3,552,001 3,249,188
Depreciation and
amortization 1,677,097 1,495,141 4,949,367 4,515,441
Gain on sale of
property and
equipment (84,179) (161,035) (66,988) (323,936)
------------- ------------- ------------- -------------
Total costs and
expenses 23,863,217 20,601,228 86,358,630 66,320,492
------------- ------------- ------------- -------------
Total operating
income 3,199,144 2,058,123 4,704,443 3,600,194
------------- ------------- ------------- -------------
Other income
(expense), net
Interest income 4,918 7,647 14,903 16,758
Interest expense (175,651) (163,632) (509,478) (516,127)
Other income, net 14,216 11,830 47,053 40,059
------------- ------------- ------------- -------------
Total other
expense, net (156,517) (144,155) (447,522) (459,310)
------------- ------------- ------------- -------------
Income before income
taxes 3,042,627 1,913,968 4,256,921 3,140,884
Income tax provision 1,199,211 728,243 1,746,602 1,192,826
------------- ------------- ------------- -------------
Income from
continuing
operations 1,843,416 1,185,725 2,510,319 1,948,058
Loss from
discontinued
operations, net of
tax benefit of
($39,395), $0,
($194,249) and
($405,478),
respectively (98,918) - (299,956) (665,347)
------------- ------------- ------------- -------------
Net income $ 1,744,498 $ 1,185,725 $ 2,210,363 $ 1,282,711
============= ============= ============= =============
Net income (loss) per
share of common
stock -- basic and
diluted
Continuing
operations $ 0.07 $ 0.05 $ 0.10 $ 0.08
Discontinued
operations 0.00 - (0.01) (0.03)
------------- ------------- ------------- -------------
Net income $ 0.07 $ 0.05 $ 0.09 $ 0.05
============= ============= ============= =============
Weighted average
shares outstanding
-- basic and diluted 25,451,354 25,451,354 25,451,354 25,451,354
============= ============= ============= =============
The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
------------- -------------
September 30, December 31,
2015 2014
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 7,645,491 $ 9,822,179
Accounts receivable and accrued billings, net 18,786,292 17,840,680
Costs and estimated earnings in excess of
billings on uncompleted contracts 11,612,548 6,537,280
Deferred income taxes 581,909 2,274,896
Income taxes receivable 815,737 763,821
Residential properties under construction 1,097,094 -
Prepaid expenses 685,620 613,765
Other current assets 339,928 315,962
------------- -------------
Total current assets 41,564,619 38,168,583
------------- -------------
Property, buildings and equipment, at cost, net 37,039,527 37,002,843
Deferred charges and other assets 4,295,516 4,798,510
------------- -------------
Total assets $ 82,899,662 $ 79,969,936
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 9,669,477 $ 9,674,961
Contract loss accruals 267,702 2,547,816
Current portion of notes payable 8,133,482 3,685,859
Accrued remediation costs 164,631 1,048,380
Other current liabilities 29,286 1,537,971
------------- -------------
Total current liabilities 18,264,578 18,494,987
Deferred income taxes 7,868,045 7,988,539
Other accrued liabilities 69,227 55,766
Notes payable, less current portion 23,665,518 22,657,973
Accrued remediation costs, less current portion 64,260 15,000
------------- -------------
Total liabilities 49,931,628 49,212,265
------------- -------------
Commitments and contingencies
Stockholders' equity
Common stock 2,781,377 2,781,377
Capital surplus 18,481,683 18,481,683
Retained earnings 13,013,161 10,802,798
Common stock in treasury, at cost (1,308,187) (1,308,187)
------------- -------------
Total stockholders' equity 32,968,034 30,757,671
------------- -------------
Total liabilities and stockholders' equity $ 82,899,662 $ 79,969,936
============= =============
For further information, please contact:The Goldfield CorporationPhone: (321) 724-1700Email: [email protected]
Source: The Goldfield Corporation
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