Goldfield Reports 2013 Third Quarter Results

MELBOURNE, Fla., Nov. 12, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced its earnings for the three and nine months ended September 30, 2013. The Goldfield Corporation headquartered in Florida, through its subsidiary, Southeast Power Corporation, is a leading provider of construction services to electric utilities, with operations primarily in the southeastern, mid-Atlantic, and western regions of the United States.

Nine months ended September 30, 2013

Revenue for the nine months ended September 30, 2013 increased 18.8% to $66.4 million from $55.9 million in the comparable prior year period. This increase was attributable to higher electrical construction revenue.

Income from continuing operations before tax for the nine months ended September 30, 2013, decreased to $5.2 million from $10.5 million in the same period in 2012. This decrease largely resulted from approximately $3.7 million of additional subcontractor and equipment expenses on the South Texas Electric Cooperative ("STEC") project, to make up for delays occasioned by unanticipated weather conditions in order to ensure completion by the August 30th target date. Also contributing to the decrease in operating income were project losses of approximately $1.1 million, resulting from the unsatisfactory performance of a subcontractor which had to be replaced on two other large projects.

Net income for the nine months ended September 30, 2013 was $2.4 million, or $0.09 per share, compared to net income of $7.7 million, or $0.30 per share, in the comparable prior year period. This decrease resulted from the expenses noted above and a special charge of $748,440 (after tax) in discontinued operations in connection with an EPA matter relating to a mining property owned over 50 years ago.

Three months ended September 30, 2013

Revenue for the three months ended September 30, 2013 increased 18.5% to $23.3 million from $19.7 million in the comparable prior year period.

Income from continuing operations before tax for the three months ended September 30, 2013, decreased to $2.2 million from $3.9 million in the same period in 2012. This decrease was mainly due to project losses of approximately $1.1 million, attributable to the unsatisfactory performance of a subcontractor which had to be replaced on two other large projects noted above. In addition, special expenses were incurred to achieve the timely completion of the STEC project in August 2013.

Net income for the three months ended September 30, 2013 was $1.3 million, or $0.05 per share, compared to net income of $2.6 million, or $0.10 per share, in the comparable prior year period. This decrease was mainly due to the aforementioned project losses recognized during the three months ended September 30, 2013, as well as additional expenses on the STEC project.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "The steadily increasing revenues reflect the inherent strength of our electrical construction operation. Our challenge is to avoid, to the extent possible, the sort of special charges that have dampened our results." "We are working on this," 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, mid-Atlantic, and western regions of the United States. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. 

For additional information on our third quarter 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.

For further information, please contact:
The Goldfield Corporation
Phone:  (321) 724-1700
Email:   investorrelations@goldfieldcorp.com


The Goldfield Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)




Three Months Ended


Nine Months Ended



September 30,


September 30,



2013


2012


2013


2012

Revenue









Electrical construction


$

23,308,530



$

19,127,906



$

65,955,156



$

54,712,899


Other


1,762



550,510



447,786



1,189,810


Total revenue


23,310,292



19,678,416



66,402,942



55,902,709


Costs and expenses









Electrical construction


18,590,749



13,474,473



53,885,682



39,385,078


Other


1,762



381,956



361,128



780,479


Selling, general and administrative


1,075,834



858,009



2,946,863



2,622,729


Depreciation


1,281,946



953,604



3,693,818



2,573,045


Loss (gain) on sale of property and equipment


27,888



42,757



433



(154,502)


Total costs and expenses


20,978,179



15,710,799



60,887,924



45,206,829


Total operating income


2,332,113



3,967,617



5,515,018



10,695,880


Other income (expenses), net









Interest income


6,238



5,974



17,506



17,300


Interest expense


(159,065)



(106,513)



(444,398)



(207,515)


Other income, net


57,479



605



86,040



21,157


Total other expenses, net


(95,348)



(99,934)



(340,852)



(169,058)


Income from continuing operations before income taxes


2,236,765



3,867,683



5,174,166



10,526,822


Income tax provision


955,108



1,253,117



2,054,808



2,821,728


Income from continuing operations


1,281,657



2,614,566



3,119,358



7,705,094


 

Loss from discontinued operations, net of tax benefit of

$451,560 in 2013






(748,440)




Net income


$

1,281,657



$

2,614,566



$

2,370,918



$

7,705,094











 

Net income per share of common stock — basic and diluted









Continuing operations


$

0.05



$

0.10



$

0.12



$

0.30


Discontinued operations






(0.03)




Net income


$

0.05



$

0.10



$

0.09



$

0.30


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,



2013


2012

ASSETS




Current assets





Cash and cash equivalents


$

9,332,522



$

7,845,943


Accounts receivable and accrued billings, net


13,439,389



13,288,812


Real estate inventory


395,062



351,634


Costs and estimated earnings in excess of billings on uncompleted

contracts


5,392,282



7,411,544


Income taxes receivable


949,474




Deferred income taxes


474,050



773,307


Residential properties under construction


1,217,179



215,648


Prepaid expenses


764,388



974,278


Other current assets


74,392



193,737


Total current assets


32,038,738



31,054,903







Property, buildings and equipment, at cost, net


30,950,456



23,817,328


Notes receivable, less current portion


115,710



151,861


Deferred charges and other assets


2,586,255



2,094,435


Total assets


$

65,691,159



$

57,118,527







LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities





Accounts payable and accrued liabilities


$

7,745,038



$

6,637,932


Current portion of notes payable


5,894,888



4,219,720


Income taxes payable




1,001,062


Accrued remediation costs


228,682




Other current liabilities


1,074,753



374,052


Total current liabilities


14,943,361



12,232,766







Deferred income taxes


5,155,933



4,045,820


Other accrued liabilities


20,939



10,556


Notes payable, less current portion


15,006,579



13,535,956


Accrued remediation costs


900,000




Total liabilities


36,026,812



29,825,098


Commitments and contingencies





Stockholders' equity





Common stock


2,781,377



2,781,377


Capital surplus


18,481,683



18,481,683


Retained earnings


9,709,474



7,338,556


Common stock in treasury, at cost


(1,308,187)



(1,308,187)


Total stockholders' equity


29,664,347



27,293,429


Total liabilities and stockholders' equity


$

65,691,159



$

57,118,527



 

SOURCE Goldfield Corporation