Goldfield Announces Second Quarter 2015 Results
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E-mailMELBOURNE, FL -- (Marketwired) -- 08/14/15 -- The Goldfield Corporation (NYSE MKT: GV) today announced financial results for the three and six-month periods ended June 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.
Three-Months Ended June 30, 2015
For the three-months ended June 30, 2015 compared to the same period last year:
- Revenue increased 32.1% to $33.5 million from $25.3 million -- attributable to higher revenue from both master service agreement (MSA) and non-MSA work.
- Income from continuing operations before income taxes tripled to $2.8 million from $693,000 despite losses of $1.2 million incurred from continued adverse weather conditions causing construction delays in the current quarter on Texas projects, which are now substantially complete.
- Net income rose to $1.3 million ($0.05 per share) from a net loss of $238,000 ($0.01 loss per share). Net income (loss) for the three-months ended June 30, 2015 and 2014 included special after tax charges of $201,000 and $665,000, respectively, in discontinued operations from a previously disclosed environmental remediation project, which is now substantially complete.
Six-Months Ended June 30, 2015
For the six-months ended June 30, 2015 compared to the same period last year:
- Revenue increased 35.4% to $64.0 million from $47.3 million -- mainly attributable to growth in MSAs.
- Income from continuing operations before income taxes remained approximately the same at $1.2 million despite losses aggregating $5.1 million recognized in the six-months ended June 30, 2015 (largely in the first quarter) on the substantially completed projects in Texas.
- Net income increased over three-fold to $466,000 ($0.02 per share) from $97,000 (nil per share). Net income for the six-months ended June 30, 2015 and 2014, included special after tax charges of $201,000 and $665,000, respectively, in discontinued operations from the environmental remediation project mentioned above.
Backlog
Total backlog as of June 30, 2015 was $218.2 million compared to $223.5 million as of June 30, 2014. Backlog represents total revenue estimated over the life of an MSA plus estimated revenue from fixed-price contracts. Of this backlog, $73.0 million (33.4%) is expected to be realized within twelve months.
Compared to December 31, 2014, backlog as of June 30, 2015 declined $56.8 million (20.6%) and 12-month backlog declined $12.4 million (14.5%). These declines largely resulted from completion of certain MSA work and reduction of some future estimated work from these MSAs. Growth in non-MSA contracts partially offset the decrease in MSA backlog.
Existing MSAs have initial terms ranging from one to four years and generally provide for extensions. Total MSA backlog assumes the exercise of renewal options. Revenue from the exercise of renewal options represent $101.1 million (59.5%) of total estimated MSA backlog as of June 30, 2015. The estimated backlog from MSAs is calculated by using recurring historical revenue from current MSAs and projected needs based upon ongoing communications with customers. 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 have now substantially completed our unprofitable Texas projects and have accomplished a reorganization of this operation. This will permit us to seek other projects from new and existing customers. Fortunately, our work outside Texas has remained strong. The general demand for electrical construction services is positive. Our focus is to achieve operating efficiencies, improved profit margins and to secure well qualified labor to take advantage of these opportunities."
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 second 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 Operations
(Unaudited)
Three months ended June
30, Six months ended June 30,
--------------------------- ---------------------------
2015 2014 2015 2014
------------- ------------- ------------- -------------
Revenue
Electrical
construction $ 33,296,684 $ 22,890,318 $ 63,696,846 $ 44,409,433
Other 157,221 2,439,772 303,867 2,851,903
------------- ------------- ------------- -------------
Total revenue 33,453,905 25,330,090 64,000,713 47,261,336
------------- ------------- ------------- -------------
Costs and expenses
Electrical
construction 27,222,221 19,963,568 56,455,944 38,291,826
Other 143,143 2,009,762 270,878 2,318,066
Selling, general
and
administrative 1,477,422 1,137,747 2,479,131 2,251,974
Depreciation and
amortization 1,658,424 1,521,395 3,272,269 3,020,300
Loss (gain) on
sale of property
and equipment 11,564 (154,896) 17,192 (162,901)
------------- ------------- ------------- -------------
Total costs and
expenses 30,512,774 24,477,576 62,495,414 45,719,265
------------- ------------- ------------- -------------
Total
operating
income 2,941,131 852,514 1,505,299 1,542,071
------------- ------------- ------------- -------------
Other income
(expense), net
Interest income 4,120 1,418 9,985 9,111
Interest expense (163,775) (174,682) (333,828) (352,494)
Other income, net 17,461 14,245 32,837 28,228
------------- ------------- ------------- -------------
Total other
expense, net (142,194) (159,019) (291,006) (315,155)
------------- ------------- ------------- -------------
Income before income
taxes 2,798,937 693,495 1,214,293 1,226,916
Income tax provision 1,285,701 266,443 547,392 464,583
------------- ------------- ------------- -------------
Income from
continuing
operations 1,513,236 427,052 666,901 762,333
Loss from
discontinued
operations, net of
tax benefit of
$154,855 in 2015
and $405,478 in
2014 (201,037) (665,347) (201,037) (665,347)
------------- ------------- ------------- -------------
Net income (loss) $ 1,312,199 (238,295) $ 465,864 $ 96,986
============= ============= ============= =============
Net income (loss)
per share of common
stock -- basic and
diluted
Continuing
operations $ 0.06 $ 0.02 $ 0.03 $ 0.03
Discontinued
operations (0.01) (0.03) (0.01) (0.03)
------------- ------------- ------------- -------------
Net income
(loss) $ 0.05 $ (0.01) $ 0.02 $ 0.00
============= ============= ============= =============
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)
December 31,
June 30, 2015 2014
----------------- -----------------
ASSETS
Current assets
Cash and cash equivalents $ 7,279,986 $ 9,822,179
Accounts receivable and accrued
billings, net 14,035,315 17,840,680
Costs and estimated earnings in excess
of billings on uncompleted contracts 15,499,404 6,537,280
Deferred income taxes 948,459 2,274,896
Income taxes receivable 1,631,271 763,821
Residential properties under
construction 673,817 -
Prepaid expenses 697,842 613,765
Other current assets 634,819 315,962
----------------- -----------------
Total current assets 41,400,913 38,168,583
----------------- -----------------
Property, buildings and equipment, at
cost, net 37,204,360 37,002,843
Deferred charges and other assets 4,340,879 4,798,510
----------------- -----------------
Total assets $ 82,946,152 $ 79,969,936
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued
liabilities $ 10,757,469 $ 9,674,961
Contract loss accruals 182,572 2,547,816
Current portion of notes payable 7,952,926 3,685,859
Accrued remediation costs 800,113 1,048,380
Other current liabilities 361,275 1,537,971
----------------- -----------------
Total current liabilities 20,054,355 18,494,987
Deferred income taxes 7,889,933 7,988,539
Other accrued liabilities 66,755 55,766
Notes payable, less current portion 23,696,574 22,657,973
Accrued remediation costs, less current
portion 15,000 15,000
----------------- -----------------
Total liabilities 51,722,617 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 11,268,662 10,802,798
Common stock in treasury, at cost (1,308,187) (1,308,187)
----------------- -----------------
Total stockholders' equity 31,223,535 30,757,671
----------------- -----------------
Total liabilities and stockholders'
equity $ 82,946,152 $ 79,969,936
================= =================
For further information, please contact: The Goldfield Corporation Phone: (321) 724-1700 Email: [email protected]
Source: The Goldfield Corporation
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