SOURCE: The Goldfield Corporation

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March 16, 2016 06:34 ET

Goldfield Announces Sharply Improved 2015 Results

MELBOURNE, FL--(Marketwired - March 16, 2016) - The Goldfield Corporation (NYSE MKT: GV) today announced significantly improved financial results for the year ended December 31, 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 electrical construction services for the utility industry and industrial customers, with operations primarily in the Southeast and mid-Atlantic regions of the United States, including Texas.

Year Ended December 31, 2015

For the year ended December 31, 2015 compared to 2014:

  • Revenue increased 22.6% to $120.6 million from $98.4 million, attributable to strong growth in master service agreements and other electrical construction work.
  • Income from continuing operations before taxes increased almost ten-fold to $8.2 million from $778,000, despite losses recognized in the first two quarters of this year on the now completed Texas projects. This increase was fueled by over 212% growth in electrical construction operations income before income taxes (a non-GAAP measure)(1) resulting from sharply higher revenues and improved margins. Margins on electrical construction operations operating income increased to 11.0% from 4.9% (a non-GAAP measure).(1)
  • Net income grew to $4.5 million ($0.18 per share) from a net loss of $319,000 ($0.01 loss per share).

Three months ended December 31, 2015

For the three months ended December 31, 2015 compared to 2014:

  • Revenue increased 3.7% to $29.5 million from $28.4 million, despite the absence of large Texas projects that were not replaced in 2015. In the last quarter of 2014, the now completed Texas projects represented over 20% of electrical construction revenue.
  • Income from continuing operations before taxes increased to $3.9 million from a loss of $2.4 million. The loss in the 2014 period primarily resulted from the Texas projects. Margins on electrical construction operations operating income increased to 17.7% from (4.3)% (a non-GAAP measure).(1)
  • Net income grew to $2.3 million ($0.09 per share) from a net loss of $1.6 million ($0.06 loss per share).

Backlog

Twelve-month electrical construction backlog has remained steady. As of December 31, 2015, $84.7 million of backlog is expected to be realized within twelve months, compared to $85.3 million as of 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 $202.9 million as of December 31, 2015, compared to $275.0 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, "The results achieved in 2015 represented a major turnaround for our electrical construction operations. We have made significant strides in both growing our business and improving operating efficiencies. The foundation we have built in 2015 should position us well for 2016."

About Goldfield

Goldfield is a leading provider of electrical construction services engaged in the construction of electrical infrastructure for the utility industry and industrial customers, primarily in the Southeast and mid-Atlantic regions of the United States, including Texas.

For additional information on our 2015 results, please refer to our Annual Report on Form 10-K being filed with the Securities and Exchange Commission and visit the Company's website at http://www.goldfieldcorp.com.

(1) Non-GAAP Financial Measures - The non-GAAP financial measures used in this earnings release are more fully described in the accompanying supplemental data and reconciliation of non-GAAP financial measures to the reported GAAP measures. The non-GAAP measures in this press release and on The Goldfield Corporation's website are provided to enable investors and analysts to evaluate the Company's performance excluding the effects of certain items that impact the comparability of operating results between reporting periods and compare the Company's operating results with those of its competitors. These measures should be used to supplement, and not in lieu of, results prepared in conformity with GAAP. Because not all companies use identical calculations, this presentation of electrical construction operations operating income may not be comparable to other similarly-titled measures of other companies.

Forward-Looking Statements

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 Operations  
(Unaudited)  
   
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
Revenue                                
  Electrical construction   $ 29,106,590     $ 28,305,888     $ 119,616,561     $ 94,826,620  
  Other     401,508       136,696       954,610       3,536,650  
    Total revenue     29,508,098       28,442,584       120,571,171       98,363,270  
Costs and expenses                                
  Electrical construction     22,304,579       27,926,540       99,726,789       84,067,942  
  Other     283,365       120,302       785,405       2,858,699  
  Selling, general and administrative     1,195,492       1,072,063       4,747,492       4,321,250  
  Depreciation and amortization     1,609,873       1,549,194       6,559,241       6,064,636  
  Loss (gain) on sale of property and equipment     44,148       (8,246 )     (22,840 )     (332,182 )
    Total costs and expenses     25,437,457       30,659,853       111,796,087       96,980,345  
      Total operating income (loss)     4,070,641       (2,217,269 )     8,775,084       1,382,925  
Other income (expense), net                                
  Interest income     5,824       6,062       20,727       22,820  
  Interest expense     (158,118 )     (164,974 )     (667,596 )     (681,101 )
  Other income, net     28,828       13,438       75,880       53,497  
    Total other expense, net     (123,466 )     (145,474 )     (570,989 )     (604,784 )
Income (loss) from continuing operations before income taxes     3,947,175       (2,362,743 )     8,204,095       778,141  
Income tax provision (benefit)     1,631,602       (539,384 )     3,378,205       653,442  
Income (loss) from continuing operations     2,315,573       (1,823,359 )     4,825,890       124,699  
(Loss) gain from discontinued operations, net of tax (benefit) expense of ($6,509), $137,742 ($200,759) and ($267,736)     (32,793 )     221,587       (332,748 )     (443,760 )
Net income (loss)   $ 2,282,780     $ (1,601,772 )   $ 4,493,142     $ (319,061 )
Net income (loss) per share of common stock - basic and diluted                                
  Continuing operations   $ 0.09     $ (0.07 )   $ 0.19     $ 0.00  
  Discontinued operations     0.00       0.01       (0.01 )     (0.02 )
    Net income (loss)   $ 0.09     $ (0.06 )   $ 0.18     $ (0.01 )
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)  
   
    December 31,     December 31,  
    2015     2014  
ASSETS                
Current assets                
  Cash and cash equivalents   $ 11,374,238     $ 9,822,179  
  Accounts receivable and accrued billings, net     17,250,067       17,840,680  
  Costs and estimated earnings in excess of billings on uncompleted contracts     10,292,199       6,537,280  
  Income taxes receivable     -       763,821  
  Prepaid expenses     1,210,780       585,678  
  Deferred income taxes     773,245       2,274,896  
  Other current assets     1,334,080       315,962  
    Total current assets     42,234,609       38,140,496  
                 
Property, buildings and equipment, at cost, net     34,671,947       37,002,843  
Deferred charges and other assets     4,257,051       4,766,397  
Total assets   $ 81,163,607     $ 79,909,736  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities                
  Accounts payable and accrued liabilities   $ 10,002,231     $ 9,674,961  
  Contract loss accruals     65,322       2,547,816  
  Current portion of notes payable, net     5,815,510       3,657,772  
  Income taxes payable     483,763       -  
  Accrued remediation costs     135,786       1,048,380  
  Other current liabilities     234,161       1,537,971  
    Total current liabilities     16,736,773       18,466,900  
Deferred income taxes     8,328,492       7,988,539  
Accrued remediation costs, less current portion     107,429       15,000  
Notes payable, less current portion, net     20,656,402       22,625,860  
Other accrued liabilities     83,698       55,766  
Total liabilities     45,912,794       49,152,065  
Stockholders' equity                
  Common stock     2,781,377       2,781,377  
  Capital surplus     18,481,683       18,481,683  
  Retained earnings     15,295,940       10,802,798  
  Common stock in treasury, at cost     (1,308,187 )     (1,308,187 )
    Total stockholders' equity     35,250,813       30,757,671  
Total liabilities and stockholders' equity   $ 81,163,607     $ 79,909,736  
                 
                 
The Goldfield Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Electrical construction operations operating income (loss), is defined as consolidated operating income (loss) adjusted for non-electrical construction activity within operating income (loss) including: other operations gross margins and non-electrical construction selling, general and administrative, depreciation and amortization, and gain or loss on sale of property and equipment. Electrical construction operations operating income (loss), a non-GAAP financial measure, does not purport to be an alternative to the Company's operating income (loss) as a measure of operations. Because not all companies use identical calculations, this presentation of electrical construction operations operating income (loss) may not be comparable to other similarly-titled measures of other companies. We believe investors may benefit from the presentation of electrical construction operations operating income (loss) in evaluating our operating performance because it provides our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations and is useful in comparing our operating results with those of our competitors.

             
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
Electrical Construction Operations Operating Income (Loss)   2015     2014     2015     2014  
Total operating income (loss) (GAAP as reported)   $ 4,070,641     $ (2,217,269 )   $ 8,775,084     $ 1,382,925  
Total operating income (GAAP as reported) as a percentage of consolidated revenue     13.8 %     (7.8 )%     7.3 %     1.4 %
  Other operations gross margin     (118,143 )     (16,394 )     (169,205 )     (677,951 )
  Non-electrical construction selling, general and administrative     1,144,854       998,712       4,443,178       3,878,861  
  Non-electrical construction depreciation & amortization     41,834       24,528       134,771       89,236  
  Non-electrical construction (gain) loss on sale of property and equipment     113       122       113       122  
Electrical construction operations operating income (loss)   $ 5,139,299     $ (1,210,301 )   $ 13,183,941     $ 4,673,193  
Electrical construction operations operating income (loss) as a percentage of electrical construction revenue     17.7 %     (4.3 )%     11.0 %     4.9 %
                                 
                                 
The Goldfield Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Electrical construction operations income (loss) before income taxes, is defined as consolidated income (loss) from continuing operations before income taxes adjusted for non-electrical construction activity within income (loss) from continuing operations before income taxes including: other operations gross margins and non-electrical construction selling, general and administrative, depreciation and amortization, gain or loss on sale of property and equipment, interest income, interest expense, and other income. Electrical construction operations income (loss) before income taxes a non-GAAP financial measure, does not purport to be an alternative to the Company's consolidated income (loss) from continuing operations before income taxes as a measure of income (loss). Because not all companies use identical calculations, this presentation of electrical construction operations income (loss) before income taxes may not be comparable to other similarly-titled measures of other companies. We believe investors may benefit from the presentation of electrical construction operations income (loss) before income taxes in evaluating our performance because it provides our investors with an additional tool to compare our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core results and is useful in comparing our results with those of our competitors.

             
             
    Three Months Ended     Year Ended  
    December 31,     December 31,  
Electrical Construction Operations Income (Loss) Before Income Taxes   2015     2014     2015     2014  
Total income (loss) from continuing operations before income taxes (GAAP as reported)   $ 3,947,175     $ (2,362,743 )   $ 8,204,095     $ 778,141  
  Other operations gross margin     (118,143 )     (16,394 )     (169,205 )     (677,951 )
  Non-electrical construction selling, general and administrative     1,144,854       998,712       4,443,178       3,878,861  
  Non-electrical construction depreciation and amortization     41,834       24,528       134,771       89,236  
  Non-electrical construction loss on sale of property and equipment     113       122       113       122  
  Non-electrical construction interest (income)     (1,501 )     (2,592 )     (7,672 )     (9,603 )
  Non-electrical construction interest expense     -       718       -       718  
  Non-electrical construction other (income), net     (28,083 )     (43,803 )     (72,109 )     (47,606 )
Electrical construction operations income (loss) before income taxes   $ 4,986,249     $ (1,401,452 )   $ 12,533,171     $ 4,011,918  
                                 
                                 

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