GOLDFIELD ANNOUNCES 2014 FIRST QUARTER RESULTS
MELBOURNE, Florida, May 15, 2014 - The Goldfield Corporation (NYSE MKT: GV) today announced its earnings for the three months ended March 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, mid-Atlantic, and western regions of the United States.
Revenue for the three months ended March 31, 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 March 31, 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 March 31, 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 March 31, 2014 our total backlog was $73.1 million, compared to $60.2 million as of March 31, 2013. We expect approximately 49.3% of this backlog to be completed during 2014.
Our total backlog as of March 31, 2013, included $15.1 million (25.0%) from the completed STEC project. Excluding the STEC project, our backlog increased 62.0% from March 31, 2013 to March 31, 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 |
|
