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Form 8-K GOLDFIELD CORP For: Mar 30

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March 30, 2015 5:13 PM EDT
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
FORM 8-K
___________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 30, 2015
___________________________________________
THE GOLDFIELD CORPORATION
(Exact name of registrant as specified in its charter)
 ___________________________________________
 
 
 
 
 
Delaware
 
1-7525
 
88-0031580
(State or other jurisdiction of
incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
 
1684 West Hibiscus Blvd.
Melbourne, FL
 
32901
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code (321) 724-1700
 ___________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 






Item 2.02.    Results of Operations and Financial Condition.
Item 7.01.    Regulation FD Disclosure.
The information in this Current Report on Form 8-K, including the exhibit, is furnished pursuant to Item 2.02 and Item 7.01, “Results of Operations and Financial Condition” and “Regulation FD Disclosure” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that Section. Furthermore, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into the filings of The Goldfield Corporation under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.
On March 30, 2015, The Goldfield Corporation issued a press release announcing its results for the year ended December 31, 2014. A copy of this press release is attached and incorporated by reference herein as Exhibit 99.1.
Item 9.01.    Financial Statements and Exhibits.
Exhibit        Description of Exhibit

99.1.
Press release, dated March 30, 2015, announcing The Goldfield Corporation 2014 results.





1


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Dated: March 30, 2015



THE GOLDFIELD CORPORATION



By:
/s/ STEPHEN R. WHERRY
 
Stephen R. Wherry
 
Senior Vice President, Chief Financial Officer (Principal Financial and Accounting Officer), Treasurer and Assistant Secretary



2



EXHIBIT INDEX

Exhibit    Description of Exhibit

99.1.
Press release, dated March 30, 2015, announcing The Goldfield Corporation 2014 results.


3
Exhibit 99.1


GOLDFIELD ANNOUNCES 2014 RESULTS
MELBOURNE, Florida, March 30, 2015 - The Goldfield Corporation (NYSE MKT: GV) today announced its results for the year ended December 31, 2014. 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 to electric utilities, with operations primarily in the southeastern and mid-Atlantic regions of the United States including Texas.
Year Ended December 31, 2014
Revenue for the year ended December 31, 2014, increased 10.3% to $98.4 million from $89.2 million in the prior year. This increase was attributable to additional revenue from our acquisition of C and C Power Line, Inc. in January 2014 and growth in our construction under master service agreements (“MSAs”).
Income from continuing operations before taxes for the year ended December 31, 2014, decreased 90.0% to $778,000 from $7.8 million in 2013. This decrease largely resulted from losses aggregating $5.0 million recognized in the fourth quarter on projects for two different utility companies in Texas. These losses were attributable to a combination of factors, including start-up delays in material procurement and adverse weather conditions which adversely affected the allocation of labor and equipment resources. We have made management changes in our Texas operations designed to improve project management.
Our projects are accounted for using the percentage of completion method. In calculating the periodic gains and/or losses on a project, we utilize the most recent information and operating results available. A provision is made in the period for the full amount of an expected loss through project completion. The aforementioned Texas projects are scheduled to be completed by May 2015. In providing for the full amount of expected losses through completion on the Texas projects, we utilized information available through late March 2015.
Operating margins on electrical construction operations were 4.9% in 2014, compared to 13.2% in 2013. Most of this decrease was attributable to the losses on the Texas projects discussed above.
As a result of the foregoing, the net loss for the year ended December 31, 2014, was $(319,000), or $(0.01) loss per share, compared to net income of $3.8 million, or $0.15 per share in the prior year.


- more -
- 1 -

Three months ended December 31, 2014
Revenue for the three months ended December 31, 2014, increased 24.7% to $28.4 million from $22.8 million in the prior year.
Income (loss) from continuing operations before taxes for the three months ended December 31, 2014, decreased $5.0 million to a loss of $(2.4) million from income of $2.6 million in the same period in 2013. This decrease was primarily due to the losses incurred in the fourth quarter of 2014 on the Texas projects discussed above.
Net loss for the three months ended December 31, 2014 was $(1.6) million, or $(0.06) loss per share, compared to net income of $1.4 million, or $0.06 per share in the prior year.
Backlog
As previously announced, the Company has been focusing on developing and growing electrical construction services under multi-year MSAs, which provide opportunities for more consistent work load and improved operating efficiencies. This effort scored significant success in 2014. Total backlog as of December 31, 2014 almost quadrupled to $275.0 million compared to $74.5 million as of December 31, 2013. The $275.0 million represents total revenue estimated over the life of the MSAs, as well as estimated revenue from fixed-price contracts, of which about $85.3 million (31.0%) are estimated to be realized within twelve months.
Our backlog represents the uncompleted portion of services to be performed under existing project-specific fixed-price and maintenance contracts and the estimated value of future services that we expect to provide under our existing MSAs. The existing MSAs have initial terms ranging from one year to four years, and some provide for additional renewals at the option of the customer. Our total MSA calculation assumes exercise of the renewal options. Revenue from the assumed exercise of renewal options represents $114.0 million (47.4%) of our total estimated MSA backlog as of December 31, 2014.
The estimated amount of backlog for work under the MSAs is calculated by using recurring historical trends in current MSAs and projected customer needs based upon ongoing communications with the customer. The size and amount of projects we may be awarded under MSAs cannot be determined with certainty and actual future revenue from such contracts may vary substantially from our current estimates.
John H. Sottile, President and Chief Executive Officer of Goldfield said, “The business and prospects of our electrical construction operations remain strong, notwithstanding the problems experienced in the fourth quarter on Texas projects. The revenue growth and dramatic backlog increase in 2014 portend well for the future.” “Our current personnel and resources should permit us to capitalize on our opportunities,” Mr. Sottile added.

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- 2 -



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 2014 results, please refer to our Annual Report on Form 10-K 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.

For further information, please contact:
The Goldfield Corporation
Phone:    (321) 724-1700
Email:     [email protected]


- Tables Follow -
- 3 -

The Goldfield Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)

 
Three Months Ended
 
Year Ended
 
December 31,
 
December 31,
 
2014
 
2013
 
2014
 
2013
Revenue
 
 
 
 
 
 
 
Electrical construction
$
28,305,888

 
$
22,800,080

 
$
94,826,620

 
$
88,755,236

Other
136,696

 
1,115

 
3,536,650

 
448,902

Total revenue
28,442,584

 
22,801,195

 
98,363,270

 
89,204,138

Costs and expenses
 
 
 
 
 
 
 
Electrical construction
27,926,540

 
17,795,195

 
84,067,942

 
71,680,877

Other
120,302

 
1,115

 
2,858,699

 
362,243

Selling, general and administrative
1,072,063

 
1,090,090

 
4,321,250

 
4,036,955

Depreciation and amortization
1,549,194

 
1,273,494

 
6,064,636

 
4,967,311

Gain on sale of property and equipment
(8,246
)
 
(100,666
)
 
(332,182
)
 
(100,233
)
Total costs and expenses
30,659,853

 
20,059,228

 
96,980,345

 
80,947,153

Total operating (loss) income
(2,217,269
)
 
2,741,967

 
1,382,925

 
8,256,985

Other income (expense), net
 
 
 
 
 
 
 
Interest income
6,062

 
11,955

 
22,820

 
29,461

Interest expense
(164,974
)
 
(150,234
)
 
(681,101
)
 
(594,632
)
Other income, net
13,438

 
13,835

 
53,497

 
99,875

Total other expense, net
(145,474
)
 
(124,444
)
 
(604,784
)
 
(465,296
)
(Loss) income from continuing operations before income taxes
(2,362,743
)
 
2,617,523

 
778,141

 
7,791,689

Income tax provision
(539,384
)
 
1,229,839

 
653,442

 
3,284,647

(Loss) income from continuing operations
(1,823,359
)
 
1,387,684

 
124,699

 
4,507,042

Gain (loss) from discontinued operations, net of tax benefit of $267,736 in 2014 and $476,261 in 2013
221,587

 
24,701

 
(443,760
)
 
(723,739
)
Net (loss) income
$
(1,601,772
)
 
$
1,412,385

 
$
(319,061
)
 
$
3,783,303

Net (loss) income per share of common stock — basic and diluted
 
 
 
 
 
 
 
Continuing operations
$
(0.07
)
 
$
0.05

 
$
0.00

 
$
0.18

Discontinued operations
0.01

 
0.00

 
(0.02
)
 
(0.03
)
Net (loss) income
$
(0.06
)
 
$
0.06

 
$
(0.01
)
 
$
0.15

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,
 
December 31,
 
2014
 
2013
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
9,822,179

 
$
20,214,569

Accounts receivable and accrued billings, net
17,840,680

 
14,194,959

Costs and estimated earnings in excess of billings on uncompleted contracts
6,537,280

 
4,991,754

Income taxes receivable
763,821

 
452,099

Real estate inventory
—

 
395,062

Residential properties under construction
—

 
1,616,916

Prepaid expenses
613,765

 
471,221

Deferred income taxes
2,274,896

 
621,632

Other current assets
315,962

 
74,976

Total current assets
38,168,583

 
43,033,188

 
 
 
 
Property, buildings and equipment, at cost, net
37,002,843

 
31,853,982

Deferred charges and other assets
4,798,510

 
2,691,818

Total assets
$
79,969,936

 
$
77,578,988

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
$
9,674,961

 
$
7,767,977

Contract loss accruals
2,547,816

 
84,360

Current portion of notes payable
3,685,859

 
13,046,080

Accrued remediation costs
1,048,380

 
155,667

Other current liabilities
1,537,971

 
55,846

Total current liabilities
18,494,987

 
21,109,930

Deferred income taxes
7,988,539

 
5,982,368

Accrued remediation costs, less current portion
15,000

 
900,000

Notes payable, less current portion
22,657,973

 
18,485,681

Other accrued liabilities
55,766

 
24,277

Total liabilities
49,212,265

 
46,502,256

Commitments and contingencies
 
 
 
Stockholders' equity
 
 
 
Common stock
2,781,377

 
2,781,377

Capital surplus
18,481,683

 
18,481,683

Retained earnings
10,802,798

 
11,121,859

Common stock in treasury, at cost
(1,308,187
)
 
(1,308,187
)
Total stockholders' equity
30,757,671

 
31,076,732

Total liabilities and stockholders' equity
$
79,969,936

 
$
77,578,988




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