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Form 8-K GOLDFIELD CORP For: May 15

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May 15, 2015 6:19 AM 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) May 15, 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 May 15, 2015, The Goldfield Corporation issued a press release announcing its results for the three months ended March 31, 2015. 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 May 15, 2015, announcing The Goldfield Corporation First Quarter 2015 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: May 15, 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 May 15, 2015, announcing The Goldfield Corporation First Quarter 2015 results.


3
Exhibit 99.1


GOLDFIELD ANNOUNCES FIRST QUARTER 2015 RESULTS
MELBOURNE, Florida, May 15, 2015 - The Goldfield Corporation (NYSE MKT: GV) today announced its results for the three months ended March 31, 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 to electric utilities, with operations primarily in the southeastern and mid-Atlantic regions of the United States including Texas.
Revenue for the three months ended March 31, 2015, increased 39.3% to $30.5 million from $21.9 million in the comparable prior year period. This increase was attributable to additional revenue from growth in our electrical construction under master service agreements (“MSAs”).
For the three months ended March 31, 2015, the loss before income taxes was $1.6 million compared to income before income taxes of $533,000 in the same period in 2014. This decrease largely resulted from losses aggregating $3.9 million recognized in the first quarter on four projects for two utilities in Texas. The largest loss was mainly attributable to adverse weather conditions and to a four week delay caused by a safety incident on one project. Adverse weather conditions on two other projects also caused losses from completion delays. Extraordinary rain levels in the area of Texas where our projects are located (as much as twice normal precipitation), in some cases accompanied by flooding, seriously delayed our work and made it more difficult and time consuming to complete.
The first quarter losses on our Texas projects were in large part offset by improved operating results elsewhere. For the quarter ended March 31, 2015, the operating profit from our other electrical construction operations grew 43.4% to $1.3 million, from the same period last year.
As a result of the foregoing, the net loss for the three months ended March 31, 2015, was $(846,000), or $(0.03) loss per share, compared to net income of $335,000, or $0.01 per share in the comparable prior year period.
Backlog
Total backlog as of March 31, 2015 more than tripled to $249.6 million compared to $73.1 million as of March 31, 2014. The $249.6 million represents total revenue estimated over the life of the MSAs, as well as estimated revenue from fixed-price contracts, of which about $76.8 million (30.8%) are estimated to be realized within twelve months.
As of March 31, 2015, compared to December 31, 2014, our total backlog declined $25.4 million (9.2%) and our 12-month backlog declined $8.5 million (10.0%). These declines resulted primarily from completion of some MSA work, not replaced by new work and the reduction in estimated work under certain MSAs. Growth in non MSA firm contracts partially offset the decrease in MSAs.

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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 (54.4%) of our total estimated MSA backlog as of March 31, 2015.
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, “With our positive revenue growth and significant backlog, the platform for our electrical construction operations remains strong, notwithstanding the problems encountered on our Texas projects, in large part caused by extraordinary weather conditions.” “We have made operational and management changes to our Texas operations designed to improve operating efficiencies. The challenges in Texas are not systemic. Our operations outside of Texas have shown strongly improved results,” Mr. Sottile added.
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 first 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

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

 
Three months ended March 31,
 
2015
 
2014
Revenue
 
 
 
Electrical construction
$
30,400,162

 
$
21,519,115

Other
146,645

 
412,130

Total revenue
30,546,807

 
21,931,245

Costs and expenses
 
 
 
Electrical construction
29,233,723

 
18,328,257

Other
127,734

 
308,304

Selling, general and administrative
1,001,710

 
1,114,227

Depreciation and amortization
1,613,845

 
1,498,904

Loss (gain) on sale of property and equipment
5,627

 
(8,004
)
Total costs and expenses
31,982,639

 
21,241,688

Total operating (loss) income
(1,435,832
)
 
689,557

Other income (expense), net
 
 
 
Interest income
5,865

 
7,693

Interest expense
(170,053
)
 
(177,813
)
Other income, net
15,376

 
13,984

Total other expense, net
(148,812
)
 
(156,136
)
(Loss) income before income taxes
(1,584,644
)
 
533,421

Income tax provision
(738,309
)
 
198,140

Net (loss) income
$
(846,335
)
 
$
335,281

 
 
 
 
Net (loss) income per share of common stock — basic and diluted
$
(0.03
)
 
$
0.01

Weighted average shares outstanding — basic and diluted
25,451,354

 
25,451,354




The Goldfield Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
5,648,264

 
$
9,822,179

Accounts receivable and accrued billings, net
18,554,812

 
17,840,680

Costs and estimated earnings in excess of billings on uncompleted contracts
7,623,993

 
6,537,280

Deferred income taxes
2,183,067

 
2,274,896

Income taxes receivable
1,570,878

 
763,821

Residential properties under construction
385,790

 
—

Prepaid expenses
946,858

 
613,765

Other current assets
607,001

 
315,962

Total current assets
37,520,663

 
38,168,583

 
 
 
 
Property, buildings and equipment, at cost, net
37,157,555

 
37,002,843

Deferred charges and other assets
4,337,186

 
4,798,510

Total assets
$
79,015,404

 
$
79,969,936

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
$
9,950,947

 
$
9,674,961

Contract loss accruals
2,342,372

 
2,547,816

Current portion of notes payable
3,772,370

 
3,685,859

Accrued remediation costs
1,016,386

 
1,048,380

Other current liabilities
757,286

 
1,537,971

Total current liabilities
17,839,361

 
18,494,987

 
 
 
 
Deferred income taxes
7,958,252

 
7,988,539

Other accrued liabilities
63,825

 
55,766

Notes payable, less current portion
23,227,630

 
22,657,973

Accrued remediation costs, less current portion
15,000

 
15,000

Total liabilities
49,104,068

 
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
9,956,463

 
10,802,798

Common stock in treasury, at cost
(1,308,187
)
 
(1,308,187
)
Total stockholders' equity
29,911,336

 
30,757,671

Total liabilities and stockholders' equity
$
79,015,404

 
$
79,969,936




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