Goldfield Reports Improved First Quarter Operating Results

MELBOURNE, Fla., May 9, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced improved revenue and operating income for the three months ended March 31, 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.

Revenue for the three months ended March 31, 2013 increased 27.0% to $22.5 million from $17.7 million in the comparable prior year period. This increase was attributable to higher demand for our electrical construction services, primarily our transmission work.

Operating income grew 8.0% to $3.0 million for the three months ended March 31, 2013, from $2.7 million during the same period in 2012.

Net income for the three months ended March 31, 2013 was $1.8 million, or $0.07 per share, compared to net income of $2.7 million, or $0.10 per share, in the comparable prior year period. Net income in the first quarter of 2013 included income tax expense of $1.0 million (36.8%), compared to $51,000 (1.9%) in the first quarter of 2012. The income tax rate for the three months ended March 31, 2012 was lower as a result of the Company's ability to utilize net operating loss carryovers and tax credits.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "With the strong team we have now assembled at Southeast Power and the robust industry environment, we believe we are well positioned to expand our customer base and to take advantage of future opportunities. We are seeing significant prospects developing from both existing and new customers, some of which we believe will likely materialize later in the year," 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 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

 

- Tables to Follow -

 

The Goldfield Corporation and Subsidiaries

Consolidated Statements of Income

(Unaudited)




Three Months Ended March 31,


2013


2012

Revenue




Electrical construction

$

22,524,301



$

17,109,940


Other

1,762



633,600


Total revenue

22,526,063



17,743,540


Costs and expenses




Electrical construction

17,551,892



12,924,484


Other

1,762



393,108


Selling, general and administrative

877,765



915,525


Depreciation

1,144,569



786,257


Gain on sale of property and equipment

(2,500)



(10,565)


Total costs and expenses

19,573,488



15,008,809


Total operating income

2,952,575



2,734,731


Other income (expenses), net




Interest income

5,788



6,004


Interest expense

(130,862)



(48,253)


Other income, net

13,118



9,067


Total other expenses, net

(111,956)



(33,182)


Income from continuing operations before income taxes

2,840,619



2,701,549


Income tax provision

1,045,111



51,232


Net income

$

1,795,508



$

2,650,317






Net income per share of common stock — basic and diluted

$

0.07



$

0.10






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,


2013


2012

ASSETS




Current assets




Cash and cash equivalents

$

2,195,696



$

7,845,943


Accounts receivable and accrued billings, net

14,842,862



13,288,812


Real estate inventory

355,019



351,634


Costs and estimated earnings in excess of billings on uncompleted contracts

6,667,243



7,411,544


Deferred income taxes

704,440



773,307


Residential properties under construction

571,783



215,648


Prepaid expenses

1,371,288



974,278


Other current assets

136,661



193,737


Total current assets

26,844,992



31,054,903






Property, buildings and equipment, at cost, net

29,275,369



23,817,328


Notes receivable, less current portion

140,023



151,861


Deferred charges and other assets

2,163,208



2,094,435


Total assets

$

58,423,592



$

57,118,527






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable and accrued liabilities

$

7,429,121



$

6,637,932


Current portion of notes payable

4,438,175



4,219,720


Income taxes payable

531,230



1,001,062


Other current liabilities

95,504



374,052


Total current liabilities

12,494,030



12,232,766






Deferred income taxes

4,520,691



4,045,820


Other accrued liabilities

10,665



10,556


Notes payable, less current portion

12,309,269



13,535,956


Total liabilities

29,334,655



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

9,134,064



7,338,556


Common stock in treasury, at cost

(1,308,187)



(1,308,187)


Total stockholders' equity

29,088,937



27,293,429


Total liabilities and stockholders' equity

$

58,423,592



$

57,118,527


 

 

SOURCE Goldfield Corporation



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