The Goldfield Corporation (NYSE American: GV) released the comments
made earlier today by Mr. John H. Sottile, President, Chief
Executive Officer and Chairman of the Board, at The Goldfield
Corporation’s annual meeting of stockholders. Goldfield is
headquartered in Melbourne, Florida, and through its subsidiaries,
Power Corporation of America, C and C Power Line, Inc., Southeast
Power Corporation and Precision Foundations, Inc., is a leading
provider of electrical construction services for the utility
industry and industrial customers, with operations primarily in the
Southeast, mid-Atlantic and Texas-Southwest regions of the United
States. To a lesser extent, Goldfield is also engaged in real
estate operations focused on the development of residential
properties on the east coast of Central Florida.
THE GOLDFIELD CORPORATION
ANNUAL SHAREHOLDERS’ MEETING MAY 22, 2020
COMMENTS BY JOHN H. SOTTILE, PRESIDENT
In 2019, Goldfield achieved its highest level of
revenue in its 113-year history as a public company and recorded
strong earnings growth and a healthy electrical construction
margin. We achieved these results across all geographic regions
through the acquisition of new customers, continued growth with
existing customers, as well as a service line expansion. This
performance reflects our commitment to strengthen our operations
while successfully and safely executing customer projects and
delivering to our shareholders.
We experienced solid growth in 2019 compared to
2018. Revenue increased almost 31% year over year to a record $181
million in 2019 from $138 million in 2018 resulting from improved
results in both real estate development and electrical construction
operations. Electrical construction revenue in 2019 improved
approximately 23% year over year due to increases in project work
under both master and non-master service agreements. Specifically,
in 2019 we experienced growth in transmission project activity in
both the Southeast and Texas-Southwest regions, combined with
service line expansion in the Texas-Southwest and mid-Atlantic
regions. Additionally, net income increased to $6.7 million from $5
million, fueled by revenue growth and improved margins. Finally,
earnings per share improved to $0.27 from $0.20.
In 2019 Goldfield had another year of strong
safety performance, taking a proactive approach with a “Zero
Incident” accident prevention policy. We are very proud to be a
member of the OSHA Electrical Transmission & Distribution
Partnership, a formal collaboration of industry stakeholders
including premier electrical contractors, OSHA, EEI, IBEW, NECA,
working together to improve safety for all workers.
We entered 2020 with a record backlog and a
strong balance sheet. Our results for the first quarter of 2020
also included improved electrical construction revenue and margin
compared to the first quarter of 2019.
At the end of the first quarter 2020, electrical
construction total backlog more than doubled to a near record $473
million, from $208 million one year ago, providing opportunity for
growth across multiple service lines over several years.
Additionally, work under recently awarded MSAs began to ramp up in
the second quarter, which we believe will significantly enhance
2020 results.
We remain committed to the safety and the
well-being of employees during the COVID-19 pandemic. To date, our
operations have not been materially affected. We have proactively
taken measures to mitigate the spread of the virus and are
continuing to monitor the impact of the pandemic. We believe we are
prepared to react to changes that we may encounter. Importantly, we
continue to deliver our commitment to our shareholders by executing
projects and securing future work. We cannot predict with any
certainty the future effects of this virus on our operations.
However, we believe the critical infrastructure services we provide
and the nature of our principal customers and business operations
will provide relative stability during this current period of
economic uncertainty.
Looking forward, the strategies which helped us
to achieve our 2019 results should continue to serve us well in
2020 and beyond. We believe our rigorous focus on operating
efficiencies, maintaining a well-qualified work force and the
strength of our long-standing customer relationships provide a
solid trajectory for strong performance. National and regional
initiatives to prioritize infrastructure projects and ensure grid
reliability remain strong. Additionally, our expansion into
substation and distribution services, award of new MSAs, securing
of major project awards and strong backlog are expected to have a
material positive effect on our results in the second quarter and
throughout 2020. This accomplishment, combined with our strong
balance sheet and successful efforts to expand our target market,
should provide the opportunity for continued growth in revenue and
shareholder value. We look forward to the rest of 2020 with
confidence.
We appreciate the support of The Goldfield
Corporation stockholders over the years and are grateful to our
employees who are dedicated to moving Goldfield forward.
____________________________
(1) Represents Non-GAAP
Financial Measure - The non-GAAP financial measures used
in this earnings release are more fully described in the
accompanying supplemental data and reconciliation of the non-GAAP
financial measures to the reported GAAP measures. The EBITDA
non-GAAP measure in this press release and on The Goldfield
Corporation’s website is provided to enable investors and analysts
to evaluate the Company’s performance excluding the effects of
certain items that impact the comparability of operating results
between reporting periods and compare the Company’s operating
results with those of its competitors. EBITDA should be used to
supplement, and not in lieu of, results prepared in conformity with
GAAP. Because not all companies use identical calculations, the
presentations of EBITDA and Backlog may not be comparable to other
similarly-titled measures of other companies. The Backlog non-GAAP
financial measure in this press release enables management to more
effectively forecast our future capital needs and results and
better identify future operating trends that may not otherwise be
apparent. The Company believes this measure is also useful for
investors in forecasting our future results and comparing us to our
competitors. While the Company believes that our methodology of
calculation is appropriate, such methodology may not be comparable
to that employed by some other companies.
About GoldfieldGoldfield is a
leading provider of electrical construction services engaged in the
construction of electrical infrastructure for the utility industry
and industrial customers, primarily in the Southeast, mid-Atlantic
and Texas-Southwest regions of the United States. To a lesser
extent, Goldfield is also engaged in real estate operations focused
on the development of residential properties on the east coast of
Central Florida.
For additional information on our results,
please refer to our filings with the Securities and Exchange
Commission which can be found on the Company’s website at
http://www.goldfieldcorp.com.
Forward-Looking Statements
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; global pandemics; 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 CorporationKristine WalczakT:
312-898-3072kwalczak@effectivecorpcom.com
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