Goldfield Announces Improved Results

MELBOURNE, 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 September 30,   Nine months ended September 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, 2015   December 31, 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 Corporation
Phone: (321) 724-1700
Email: investorrelations@goldfieldcorp.com

Source: The Goldfield Corporation