Market Overview

Goldfield Posts Record 2012 Results

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MELBOURNE, Fla., March 26, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced record results for the year ended December 31, 2012, driven by dramatic growth in its electrical construction business.  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. 

Net income increased in 2012 to $12 million ($0.47 per share) from $874 thousand ($0.03 per share) in 2011. Revenue grew to $81.6 million in 2012 from $32.8 million the prior year. 2012 revenue and net income represented record highs in Goldfield's 106 year history.

Net income for the fourth quarter ended December 31, 2012 was $4.2 million ($0.17 per share) compared to $1.6 million ($0.06 per share) for the comparable prior year period. Revenue for the fourth quarter ended December 31, 2012 increased to $25.7 million from $11.4 million in the same period in 2011.

According to John H. Sottile, Goldfield's President and Chief Executive Officer, these results reflect not only markedly increased demand for services by utilities upgrading and expanding their transmission and distribution infrastructure, but also the strengthening of Goldfield's capability in a larger service area. "Our strategy of moving beyond our historic Florida base -- and expanding our operations in Texas, the Carolinas and Virginia -- has paid handsome dividends," Mr. Sottile said. 

"Southeast Power's fine reputation in the industry, together with our growth, has enabled us to attract very experienced and highly regarded new leadership," Mr. Sottile said. As previously announced, John Davis, former Chief Operating Officer of Southeast Power, took over as President of Southeast Power on January 1, 2013.  John E. White, formerly Senior Vice President with one of the country's largest electrical construction companies, is now joining the Southeast Power team, with responsibility for new business development.

"With the strong team we have assembled, we believe we are well positioned to take advantage of future opportunities to build on our record growth," Mr. Davis said.  At December 31, 2012, Southeast Power's construction backlog was $40.9 million, compared to $12.2 million at 2011 year-end. The 2012 backlog included $23.8 million relating to a project scheduled for completion this August. "We believe we will meet the challenge of generating new business more than sufficient to offset completion of this project," Mr. Davis 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 2012 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.

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 electrical construction 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; our 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



Year Ended







December 31,



December 31,







2012



2011



2012



2011

Revenue



















Electrical construction

$      25,720,012



$      11,419,363



$      80,432,911



$      31,742,626



Other

6,461



5,700



1,196,271



1,088,647





Total revenue

25,726,473



11,425,063



81,629,182



32,831,273





















Costs and expenses

















Electrical construction

17,573,191



8,150,697



56,958,270



25,276,055



Other

4,944



(751)



785,423



718,584



Selling, general and administrative

937,420



757,632



3,560,149



2,856,034



Depreciation 

997,077



674,635



3,570,122



2,808,150



Impairment of real estate property

-



112,219



-



112,219



(Gain) loss on sale of assets

(104,674)



657



(259,177)



6,878





Total costs and expenses

19,407,958



9,695,089



64,614,787



31,777,920





     Total operating income

6,318,515



1,729,974



17,014,395



1,053,353









































Other income (expenses), net 

















Interest income

6,226



6,763



23,526



26,001



Interest expense

(140,857)



(44,788)



(348,372)



(168,165)



Other income, net 

33,863



7,439



55,020



35,151





Total other expenses, net

(100,768)



(30,586)



(269,826)



(107,013)





















Income from continuing operations before income taxes

6,217,747



1,699,388



16,744,569



946,340





















Income tax provision

1,961,612



51,772



4,783,340



73,608





















Income from continuing operations

4,256,135



1,647,616



11,961,229



872,732





















Gain from discontinued operations, net of 

















tax provision of  $0 in 2011

-



-



-



992





















Net income

$        4,256,135



$        1,647,616



$      11,961,229



$           873,724





















Income per share of common stock -- basic and diluted

















Continuing operations

$                 0.17



$                 0.06



$                 0.47



$                 0.03



Discontinued operations

-



-



-



-





Net income

$                 0.17



$                 0.06



$                 0.47



$                 0.03





















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, 











2012



2011

ASSETS









Current assets











Cash and cash equivalents



$        7,845,943



$        3,319,824



Accounts receivable and accrued billings, net 



13,288,812



8,991,109



Real estate inventory  



351,634



346,829



Costs and estimated earnings in excess of 













billings on uncompleted contracts 



7,411,544



946,525



Deferred income taxes



773,307



-



Residential properties under construction 



215,648



222,818



Prepaid expenses 



974,278



399,458



Other current assets



193,737



188,033





Total current assets



31,054,903



14,414,596

















Property, buildings and equipment, at cost, net 



23,817,328



10,481,705

Notes receivable, less current portion



151,861



196,632

Deferred charges and other assets



2,094,435



1,518,004

Total assets



$      57,118,527



$      26,610,937

















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities











Accounts payable and accrued liabilities 



$        6,637,932



$        3,639,919



Current portion of notes payable 



4,219,720



1,791,429



Income taxes payable



1,001,062



-



Other current liabilities



374,052



934,714





Total current liabilities



12,232,766



6,366,062

Deferred income taxes



4,045,820



-

Other accrued liabilities



10,556



1,595

Notes payable, less current portion 



13,535,956



4,911,080

Total liabilities



29,825,098



11,278,737

Commitments and contingencies 









Stockholders' equity











Common stock



2,781,377



2,781,377



Capital surplus 



18,481,683



18,481,683



Retained earnings (accumulated deficit)



7,338,556



(4,622,673)



Common stock in treasury, at cost



(1,308,187)



(1,308,187)







Total stockholders' equity



27,293,429



15,332,200

Total liabilities and stockholders' equity



$      57,118,527



$      26,610,937

































 

SOURCE Goldfield Corporation

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