MELBOURNE, Fla., March 26,
2014 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV)
today announced its earnings for the year ended December 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.
Year Ended December 31,
2013
Revenue for the year ended December 31, 2013, increased
9.3% to $89.2 million from
$81.6 million in the comparable prior
year period. This increase was attributable to higher electrical
construction revenue.
Income from continuing operations before tax for the year ended
December 31, 2013, decreased 53.5% to $7.8 million from $16.7
million in 2012. This decrease largely resulted from
approximately $5.7 million of
unanticipated charges, including $3.7
million of special expenses incurred on the South Texas
Electric Cooperative ("STEC") project necessary to make up for
delays caused by severe weather conditions in order to ensure
completion by the August 30th target
date; and an additional $2.0 million
of special expenses on two other large projects resulting from the
unsatisfactory performance of a subcontractor which had to be
replaced, as well as unusual severe weather conditions.
Operating margins on electrical construction operations were
13.2% in 2013, compared to 24.7% in 2012. Most of this decrease was
attributable to the special expenses discussed above.
Net income for the year ended December 31, 2013, was
$3.8 million, or $0.15 per share, compared to net income of
$12.0 million, or $0.47 per share, in the comparable prior year
period. This decrease resulted from the expenses noted above and a
charge of $724,000 (after tax) in
discontinued operations in connection with an EPA matter relating
to a mining property owned over 50 years ago.
Three months ended December 31,
2013
Revenue for the three months ended December 31, 2013, decreased 11.4% to
$22.8 million from $25.7 million in the comparable prior year
period.
Income from continuing operations before tax for the three
months ended December 31, 2013,
decreased 57.9% to $2.6 million from
$6.2 million in the same period in
2012. This decrease was mainly due to the decrease in revenue and
approximately $933,000 of
unanticipated special expenses incurred in the fourth quarter 2013,
as noted above.
Net income for the three months ended December 31, 2013 was $1.4
million, or $0.06 per share,
compared to net income of $4.2
million, or $0.17 per share,
in the comparable prior year period.
Backlog
As of December 31, 2013 our total backlog was $74.5 million compared to $76.4 million as of December 31, 2012. Of
our total backlog as of December 31, 2013, we expect
approximately 51.3% to be completed during 2014.
As of December 31, 2012, our total backlog included
$23.8 million (31.1%) from the STEC
project. Excluding the STEC project, our backlog increased 41.5%
from December 31, 2012 to December 31, 2013, growing from
$52.6 million to $74.5 million.
Our backlog represents the uncompleted portion of services to be
performed under existing project-specific fixed-price contracts and
the estimated value of future services that we expect to provide
under our existing master service agreements ("MSAs"). The backlog
as of December 31, 2012, has been revised to conform to the
2013 presentation.
John H. Sottile, President and
Chief Executive Officer of Goldfield said, "We are pleased with the
strength of our revenue in 2013 despite the completion of the STEC
project - - and the significant increase in the non-STEC backlog
from year to year. We are, of course, disappointed that
unanticipated special expenses adversely affected our 2013 income."
Mr. Sottile further noted that, "The acquisition of C and C Power
Line, Inc., completed on January 3, 2014, should provide
another platform for our future growth."
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 2013 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 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 Income
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenue
|
|
|
|
|
|
|
|
Electrical
construction
|
$
|
22,800,080
|
|
|
$
|
25,720,012
|
|
|
$
|
88,755,236
|
|
|
$
|
80,432,911
|
|
Other
|
1,115
|
|
|
6,461
|
|
|
448,902
|
|
|
1,196,271
|
|
Total
revenue
|
22,801,195
|
|
|
25,726,473
|
|
|
89,204,138
|
|
|
81,629,182
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Electrical
construction
|
17,795,195
|
|
|
17,573,191
|
|
|
71,680,877
|
|
|
56,958,270
|
|
Other
|
1,115
|
|
|
4,944
|
|
|
362,243
|
|
|
785,423
|
|
Selling, general and
administrative
|
1,090,090
|
|
|
937,420
|
|
|
4,036,955
|
|
|
3,560,149
|
|
Depreciation
|
1,273,494
|
|
|
997,077
|
|
|
4,967,311
|
|
|
3,570,122
|
|
Gain on sale of
property and equipment
|
(100,666)
|
|
|
(104,674)
|
|
|
(100,233)
|
|
|
(259,177)
|
|
Total costs and
expenses
|
20,059,228
|
|
|
19,407,958
|
|
|
80,947,153
|
|
|
64,614,787
|
|
Total operating
income
|
2,741,967
|
|
|
6,318,515
|
|
|
8,256,985
|
|
|
17,014,395
|
|
Other income
(expense), net
|
|
|
|
|
|
|
|
Interest
income
|
11,955
|
|
|
6,226
|
|
|
29,461
|
|
|
23,526
|
|
Interest
expense
|
(150,234)
|
|
|
(140,857)
|
|
|
(594,632)
|
|
|
(348,372)
|
|
Other income,
net
|
13,835
|
|
|
33,863
|
|
|
99,875
|
|
|
55,020
|
|
Total other expense,
net
|
(124,444)
|
|
|
(100,768)
|
|
|
(465,296)
|
|
|
(269,826)
|
|
Income from
continuing operations before income taxes
|
2,617,523
|
|
|
6,217,747
|
|
|
7,791,689
|
|
|
16,744,569
|
|
Income tax
provision
|
1,229,839
|
|
|
1,961,612
|
|
|
3,284,647
|
|
|
4,783,340
|
|
Income from
continuing operations
|
1,387,684
|
|
|
4,256,135
|
|
|
4,507,042
|
|
|
11,961,229
|
|
Gain (loss) from
discontinued operations, net of tax benefit of
$476,261 in 2013
|
24,701
|
|
|
—
|
|
|
(723,739)
|
|
|
—
|
|
Net income
|
$
|
1,412,385
|
|
|
$
|
4,256,135
|
|
|
$
|
3,783,303
|
|
|
$
|
11,961,229
|
|
Net income per share
of common stock — basic and diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.05
|
|
|
$
|
0.17
|
|
|
$
|
0.18
|
|
|
$
|
0.47
|
|
Discontinued
operations
|
0.00
|
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
Net income
|
$
|
0.06
|
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
$
|
0.47
|
|
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,
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
20,214,569
|
|
|
$
|
7,845,943
|
|
Accounts receivable
and accrued billings, net
|
14,194,959
|
|
|
13,288,812
|
|
Costs and estimated
earnings in excess of billings on uncompleted contracts
|
4,991,754
|
|
|
7,411,544
|
|
Income taxes
receivable
|
452,099
|
|
|
—
|
|
Real estate
inventory
|
395,062
|
|
|
351,634
|
|
Residential
properties under construction
|
1,616,916
|
|
|
215,648
|
|
Prepaid
expenses
|
471,221
|
|
|
974,278
|
|
Deferred income
taxes
|
621,632
|
|
|
773,307
|
|
Other current
assets
|
74,976
|
|
|
193,737
|
|
Total current
assets
|
43,033,188
|
|
|
31,054,903
|
|
|
|
|
|
Property, buildings
and equipment, at cost, net
|
31,853,982
|
|
|
23,817,328
|
|
Deferred charges and
other assets
|
2,691,818
|
|
|
2,246,296
|
|
Total
assets
|
$
|
77,578,988
|
|
|
$
|
57,118,527
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
7,852,337
|
|
|
$
|
6,637,932
|
|
Current portion of
notes payable
|
13,046,080
|
|
|
4,219,720
|
|
Income taxes
payable
|
—
|
|
|
1,001,062
|
|
Accrued remediation
costs
|
155,667
|
|
|
—
|
|
Other current
liabilities
|
55,846
|
|
|
374,052
|
|
Total current
liabilities
|
21,109,930
|
|
|
12,232,766
|
|
Deferred income
taxes
|
5,982,368
|
|
|
4,045,820
|
|
Accrued remediation
costs
|
900,000
|
|
|
—
|
|
Notes payable, less
current portion
|
18,485,681
|
|
|
13,535,956
|
|
Other accrued
liabilities
|
24,277
|
|
|
10,556
|
|
Total
liabilities
|
46,502,256
|
|
|
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
|
11,121,859
|
|
|
7,338,556
|
|
Common stock in
treasury, at cost
|
(1,308,187)
|
|
|
(1,308,187)
|
|
Total stockholders'
equity
|
31,076,732
|
|
|
27,293,429
|
|
Total liabilities and
stockholders' equity
|
$
|
77,578,988
|
|
|
$
|
57,118,527
|
|
SOURCE Goldfield Corporation