Goldfield Reports 2013 Third Quarter Results
MELBOURNE, Fla., Nov. 12, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced its earnings for the three and nine months ended September 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.
Nine months ended September 30, 2013
Revenue for the nine months ended September 30, 2013 increased 18.8% to $66.4 million from $55.9 million in the comparable prior year period. This increase was attributable to higher electrical construction revenue.
Income from continuing operations before tax for the nine months ended September 30, 2013, decreased to $5.2 million from $10.5 million in the same period in 2012. This decrease largely resulted from approximately $3.7 million of additional subcontractor and equipment expenses on the South Texas Electric Cooperative ("STEC") project, to make up for delays occasioned by unanticipated weather conditions in order to ensure completion by the August 30th target date. Also contributing to the decrease in operating income were project losses of approximately $1.1 million, resulting from the unsatisfactory performance of a subcontractor which had to be replaced on two other large projects.
Net income for the nine months ended September 30, 2013 was $2.4 million, or $0.09 per share, compared to net income of $7.7 million, or $0.30 per share, in the comparable prior year period. This decrease resulted from the expenses noted above and a special charge of $748,440 (after tax) in discontinued operations in connection with an EPA matter relating to a mining property owned over 50 years ago.
Three months ended September 30, 2013
Revenue for the three months ended September 30, 2013 increased 18.5% to $23.3 million from $19.7 million in the comparable prior year period.
Income from continuing operations before tax for the three months ended September 30, 2013, decreased to $2.2 million from $3.9 million in the same period in 2012. This decrease was mainly due to project losses of approximately $1.1 million, attributable to the unsatisfactory performance of a subcontractor which had to be replaced on two other large projects noted above. In addition, special expenses were incurred to achieve the timely completion of the STEC project in August 2013.
Net income for the three months ended September 30, 2013 was $1.3 million, or $0.05 per share, compared to net income of $2.6 million, or $0.10 per share, in the comparable prior year period. This decrease was mainly due to the aforementioned project losses recognized during the three months ended September 30, 2013, as well as additional expenses on the STEC project.
John H. Sottile, President and Chief Executive Officer of Goldfield said, "The steadily increasing revenues reflect the inherent strength of our electrical construction operation. Our challenge is to avoid, to the extent possible, the sort of special charges that have dampened our results." "We are working on this," 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 third 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: [email protected]
| The Goldfield Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) |
||||||||||||||||
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, |
September 30, |
|||||||||||||||
| 2013 |
2012 |
2013 |
2012 |
|||||||||||||
| Revenue |
||||||||||||||||
| Electrical construction |
$ |
23,308,530 |
$ |
19,127,906 |
$ |
65,955,156 |
$ |
54,712,899 |
||||||||
| Other |
1,762 |
550,510 |
447,786 |
1,189,810 |
||||||||||||
| Total revenue |
23,310,292 |
19,678,416 |
66,402,942 |
55,902,709 |
||||||||||||
| Costs and expenses |
||||||||||||||||
| Electrical construction |
18,590,749 |
13,474,473 |
53,885,682 |
39,385,078 |
||||||||||||
| Other |
1,762 |
381,956 |
361,128 |
780,479 |
||||||||||||
| Selling, general and administrative |
1,075,834 |
858,009 |
2,946,863 |
2,622,729 |
||||||||||||
| Depreciation |
1,281,946 |
953,604 |
3,693,818 |
2,573,045 |
||||||||||||
| Loss (gain) on sale of property and equipment |
27,888 |
42,757 |
433 |
(154,502) |
||||||||||||
| Total costs and expenses |
20,978,179 |
15,710,799 |
60,887,924 |
45,206,829 |
||||||||||||
| Total operating income |
2,332,113 |
3,967,617 |
5,515,018 |
10,695,880 |
||||||||||||
| Other income (expenses), net |
||||||||||||||||
| Interest income |
6,238 |
5,974 |
17,506 |
17,300 |
||||||||||||
| Interest expense |
(159,065) |
(106,513) |
(444,398) |
(207,515) |
||||||||||||
| Other income, net |
57,479 |
605 |
86,040 |
21,157 |
||||||||||||
| Total other expenses, net |
(95,348) |
(99,934) |
(340,852) |
(169,058) |
||||||||||||
| Income from continuing operations before income taxes |
2,236,765 |
3,867,683 |
5,174,166 |
10,526,822 |
||||||||||||
| Income tax provision |
955,108 |
1,253,117 |
2,054,808 |
2,821,728 |
||||||||||||
| Income from continuing operations |
1,281,657 |
2,614,566 |
3,119,358 |
7,705,094 |
||||||||||||
|
Loss from discontinued operations, net of tax benefit of $451,560 in 2013 |
— |
— |
(748,440) |
— |
||||||||||||
| Net income |
$ |
1,281,657 |
$ |
2,614,566 |
$ |
2,370,918 |
$ |
7,705,094 |
||||||||
|
Net income per share of common stock — basic and diluted |
||||||||||||||||
| Continuing operations |
$ |
0.05 |
$ |
0.10 |
$ |
0.12 |
$ |
0.30 |
||||||||
| Discontinued operations |
— |
— |
(0.03) |
— |
||||||||||||
| Net income |
$ |
0.05 |
$ |
0.10 |
$ |
0.09 |
$ |
0.30 |
||||||||
| 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) |
||||||||
| September 30, |
December 31, |
|||||||
| 2013 |
2012 |
|||||||
| ASSETS |
||||||||
| Current assets |
||||||||
| Cash and cash equivalents |
$ |
9,332,522 |
$ |
7,845,943 |
||||
| Accounts receivable and accrued billings, net |
13,439,389 |
13,288,812 |
||||||
| Real estate inventory |
395,062 |
351,634 |
||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts |
5,392,282 |
7,411,544 |
||||||
| Income taxes receivable |
949,474 |
— |
||||||
| Deferred income taxes |
474,050 |
773,307 |
||||||
| Residential properties under construction |
1,217,179 |
215,648 |
||||||
| Prepaid expenses |
764,388 |
974,278 |
||||||
| Other current assets |
74,392 |
193,737 |
||||||
| Total current assets |
32,038,738 |
31,054,903 |
||||||
| Property, buildings and equipment, at cost, net |
30,950,456 |
23,817,328 |
||||||
| Notes receivable, less current portion |
115,710 |
151,861 |
||||||
| Deferred charges and other assets |
2,586,255 |
2,094,435 |
||||||
| Total assets |
$ |
65,691,159 |
$ |
57,118,527 |
||||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
| Current liabilities |
||||||||
| Accounts payable and accrued liabilities |
$ |
7,745,038 |
$ |
6,637,932 |
||||
| Current portion of notes payable |
5,894,888 |
4,219,720 |
||||||
| Income taxes payable |
— |
1,001,062 |
||||||
| Accrued remediation costs |
228,682 |
— |
||||||
| Other current liabilities |
1,074,753 |
374,052 |
||||||
| Total current liabilities |
14,943,361 |
12,232,766 |
||||||
| Deferred income taxes |
5,155,933 |
4,045,820 |
||||||
| Other accrued liabilities |
20,939 |
10,556 |
||||||
| Notes payable, less current portion |
15,006,579 |
13,535,956 |
||||||
| Accrued remediation costs |
900,000 |
— |
||||||
| Total liabilities |
36,026,812 |
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 |
9,709,474 |
7,338,556 |
||||||
| Common stock in treasury, at cost |
(1,308,187) |
(1,308,187) |
||||||
| Total stockholders' equity |
29,664,347 |
27,293,429 |
||||||
| Total liabilities and stockholders' equity |
$ |
65,691,159 |
$ |
57,118,527 |
||||
SOURCE Goldfield Corporation
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