News Column

Goldfield Announces 2014 First Quarter Results

May 15, 2014

MELBOURNE, Fla., May15, 2014 /PRNewswire/ --The Goldfield Corporation (NYSE MKT: GV) today announced its earnings for the three months ended March31, 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, mid-Atlantic, and western regions of the United States.

Revenue for the three months ended March31, 2014, was $21.9 million compared to $22.5 million in the comparable prior year period. This small decline was attributable to the completion of the South Texas Electric Cooperative ("STEC") project in August 2013. The revenue from STEC was largely replaced by revenue from several large projects in the Carolinas, Florida, and Texas, as well as additional revenue from our newly acquired company, C and C Power Line, Inc. ("C&C").

Income before income taxes for the three months ended March31, 2014, was $533,000 compared to $2.8 million in 2013. This decrease largely resulted from increases in our electrical construction operations overhead costs attributable to strengthening our supervisory personnel appropriate to our expanded operations, as well as integration expenses relating to the C&C acquisition. Also contributing to the decrease, to a lesser extent, were some unanticipated project losses caused by unusual adverse weather conditions.

Net income for the three months ended March31, 2014, was $335,000, or $0.01 per share, compared to net income of $1.8 million, or $0.07 per share, in the comparable prior year period.

Backlog

As of March31, 2014 our total backlog was $73.1 million, compared to $60.2 million as of March31, 2013. We expect approximately 49.3% of this backlog to be completed during 2014.

Our total backlog as of March31, 2013, included $15.1 million (25.0%) from the completed STEC project. Excluding the STEC project, our backlog increased 62.0% from March31, 2013 to March31, 2014, growing from $45.2 million to $73.1 million.

Our backlog represents the uncompleted portion of services to be performed under existing project-specific fixed-price contracts and the estimated value of future services that we expect to provide under our existing master service agreements ("MSAs"). As of March 31, 2014, MSAs had grown to 68.3% of our backlog from 52.5% as of March 31, 2013.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "We are pleased with the acquisition of C&C, a full service electrical contractor with a unionized workforce. We believe C&C will provide a platform for future growth. We are also encouraged by the growth of our backlog despite the completion of the large STEC project -- and the increase represented by MSAs. We intend to continue to focus on developing MSA business -- which generally provides longer term contracts and operating efficiencies."

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 first 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 March 31,



2014



2013

Revenue











Electrical construction

$

21,519,115





$

22,524,301



Other

412,130





1,762



Total revenue

21,931,245





22,526,063



Costs and expenses











Electrical construction

18,328,257





17,551,892



Other

308,304





1,762



Selling, general and administrative

1,114,227





877,765



Depreciation and amortization

1,498,904





1,144,569



Gain on sale of property and equipment

(8,004)





(2,500)



Total costs and expenses

21,241,688





19,573,488



Total operating income

689,557





2,952,575



Other income (expense), net











Interest income

7,693





5,788



Interest expense

(177,813)





(130,862)



Other income, net

13,984





13,118



Total other expense, net

(156,136)





(111,956)



Income before income taxes

533,421





2,840,619



Income tax provision

198,140





1,045,111



Net income

$

335,281





$

1,795,508















Net income per share of common stock basic and diluted

$

0.01





$

0.07



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,



December 31,



2014



2013

ASSETS











Current assets











Cash and cash equivalents

$

7,955,879





$

20,214,569



Accounts receivable and accrued billings, net

11,746,922





14,194,959



Costs and estimated earnings in excess of billings on uncompleted contracts

7,179,726





4,991,754



Income taxes receivable

508,033





452,099



Remediation insurance receivable

160,540









Real estate inventory

2,051,289





395,062



Residential properties under construction







1,616,916



Prepaid expenses

981,255





471,221



Deferred income taxes

480,804





621,632



Other current assets

191,394





74,976



Total current assets

31,255,842





43,033,188















Property, buildings and equipment, at cost, net

36,638,494





31,853,982



Deferred charges and other assets

3,890,619





2,691,818



Total assets

$

71,784,955





$

77,578,988















LIABILITIES AND STOCKHOLDERS' EQUITY











Current liabilities











Accounts payable and accrued liabilities

$

6,711,083





$

7,852,337



Current portion of notes payable

6,710,961





13,046,080



Accrued remediation costs

178,400





155,667



Other current liabilities

77,525





55,846



Total current liabilities

13,677,969





21,109,930















Deferred income taxes

5,983,781





5,982,368



Accrued remediation costs

978,180





900,000



Notes payable, less current portion

19,699,921





18,485,681



Other accrued liabilities

33,091





24,277



Total liabilities

40,372,942





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

11,457,140





11,121,859



Common stock in treasury, at cost

(1,308,187)





(1,308,187)



Total stockholders' equity

31,412,013





31,076,732



Total liabilities and stockholders' equity

$

71,784,955





$

77,578,988









SOURCE Goldfield Corporation


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