SOURCE: The Goldfield Corporation

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November 12, 2015 08:08 ET

Goldfield Announces Improved Results

MELBOURNE, FL--(Marketwired - November 12, 2015) - 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  

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