2014

Goldfield Reports 2013 Second Quarter Results

MELBOURNE, Fla., Aug. 13, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced its operating results for the three and six months ended June 30, 2013. The Goldfield Corporation headquartered in Florida, through its subsidiary, Southeast Power Corporation, 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.

Six months ended June 30, 2013

Revenue for the six months ended June 30, 2013 increased 19.0% to $43.1 million from $36.2 million in the comparable prior year period. This increase was attributable to higher electrical construction revenue.

Income from continuing operations before tax decreased 56% or $3.7 million to $2.9 million for the six months ended June 30, 2013, from $6.7 million in the same period in 2012. Substantially all of this decrease resulted from a strategic business decision to incur significant additional subcontractor and equipment costs, to assure completion of the South Texas Electric Cooperative ("STEC") project, by the contracted completion date of August 30, 2013. These additional costs contributed approximately $3.7 million of the total decrease in operating income. These costs largely represented additional manpower and equipment necessary to make up for project delays due to unanticipated adverse weather conditions, experienced mainly during the second quarter of 2013. As a result of these additional efforts, the project is expected to be energized and virtually completed by the August 30, 2013 deadline.

Net income for the six months ended June 30, 2013 was $1.1 million, or $0.04 per share, compared to net income of $5.1 million, or $0.20 per share, in the comparable prior year period. This decrease almost entirely resulted from the aforementioned $3.7 million charges on the STEC project and a special charge of $748,000 (after tax) in discontinued operations in connection with an EPA matter. As previously announced, Goldfield has recorded a contingent liability of $1.2 million to provide for the estimated remediation costs relating to a mining property owned over 50 years ago.

Three months ended June 30, 2013

Revenue for the three months ended June 30, 2013 increased by $2.1 million to $20.6 million from $18.5 million in the comparable prior year period.

Income from continuing operations before tax decreased 98% or $3.9 million to $97,000 for the three months ended June 30, 2013, from $4.0 million in the same period in 2012. This decrease almost entirely resulted from the aforementioned $3.7 million charges on the STEC project.

Net loss for the three months ended June 30, 2013 was ($706,000), or $(0.03) loss per share, compared to net income of $2.4 million, or $0.10 per share, in the comparable prior year period. This decrease almost entirely resulted from the aforementioned $3.7 million charges on the STEC project and the special charge of $748,000 (after tax) in discontinued operations in connection with an EPA matter.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "The business and prospects of our electrical construction operation remain strong, notwithstanding the income decline caused by unanticipated factors beyond our control --- extraordinary weather conditions and an environmental condition at a property sold over half a century ago. The successful and on-time completion of the largest construction project in the Company's history attest to the strength and competence of our electrical construction operation," Mr. Sottile added.

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 second 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 Operations

(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2013


2012


2013


2012

Revenue








Electrical construction

$

20,122,325


$

18,475,053


$

42,646,626


$

35,584,993

Other

444,262


5,700


446,024


639,300

               Total revenue

20,566,587


18,480,753


43,092,650


36,224,293

Costs and expenses








Electrical construction

17,743,041


12,986,120


35,294,933


25,910,605

Other

357,604


5,415


359,366


398,523

Selling, general and administrative

993,264


849,195


1,871,029


1,764,720

Depreciation

1,267,303


833,185


2,411,873


1,619,441

Gain on sale of property and equipment

(24,955)


(186,694)


(27,455)


(197,259)

               Total costs and expenses

20,336,257


14,487,221


39,909,746


29,496,030

                    Total operating income

230,330


3,993,532


3,182,904


6,728,263

Other income (expenses), net








Interest income

5,479


5,321


11,268


11,325

Interest expense

(154,470)


(52,748)


(285,332)


(101,001)

Other income, net

15,443


11,485


28,561


20,552

               Total other expenses, net

(133,548)


(35,942)


(245,503)


(69,124)

Income from continuing operations before income taxes

96,782


3,957,590


2,937,401


6,659,139

Income tax provision

54,589


1,517,379


1,099,700


1,568,611

Income from continuing operations

42,193


2,440,211


1,837,701


5,090,528

Loss from discontinued operations, net of tax provision of ($451,560) in 2013

(748,440)



(748,440)


Net (loss) income

$

(706,247)


$

2,440,211


$

1,089,261


$

5,090,528









Net (loss) income per share of common stock — basic and diluted








Continuing operations

$

0.00


$

0.10


$

0.07


$

0.20

Discontinued operations

(0.03)



(0.03)


               Net (loss) income

$

(0.03)


$

0.10


$

0.04


$

0.20

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)



June 30,


December 31,


2013


2012

ASSETS




Current assets




Cash and cash equivalents

$

11,106,063


$

7,845,943

Accounts receivable and accrued billings, net

12,270,010


13,288,812

Real estate inventory

395,062


351,634

Costs and estimated earnings in excess of billings on uncompleted contracts

5,352,811


7,411,544

Income taxes receivable

727,875


Deferred income taxes

753,242


773,307

Residential properties under construction

873,056


215,648

Prepaid expenses

1,087,803


974,278

Other current assets

80,546


193,737

               Total current assets

32,646,468


31,054,903





Property, buildings and equipment, at cost, net

30,763,663


23,817,328

Notes receivable, less current portion

127,996


151,861

Deferred charges and other assets

2,015,626


2,094,435

Total assets

$

65,553,753


$

57,118,527





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable and accrued liabilities

$

7,110,966


$

6,637,932

Current portion of notes payable

5,487,227


4,219,720

Income taxes payable


1,001,062

Accrued remediation costs

300,000


Other current liabilities

2,129,226


374,052

               Total current liabilities

15,027,419


12,232,766





Deferred income taxes

4,656,627


4,045,820

Other accrued liabilities

12,164


10,556

Notes payable, less current portion

16,574,853


13,535,956

Accrued remediation costs

900,000


Total liabilities

37,171,063


29,825,098

Commitments and contingencies




Stockholders' equity




Common stock

2,781,377


2,781,377

Capital surplus

18,481,683


18,481,683

Retained earnings

8,427,817


7,338,556

Common stock in treasury, at cost

(1,308,187)


(1,308,187)

               Total stockholders' equity

28,382,690


27,293,429

Total liabilities and stockholders' equity

$

65,553,753


$

57,118,527

 

 

SOURCE The Goldfield Corporation



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