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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