The Goldfield Corporation (NYSEMKT:GV), today announced strong results for the three and nine months ended September 30, 2016. The Goldfield Corporation headquartered in Florida, through its subsidiaries, Power Corporation of America, Southeast Power Corporation and C and C Power Line, Inc., is a leading provider of electrical construction services for the utility industry and industrial customers, with operations primarily in the Southeast and mid-Atlantic regions of the United States and Texas.
Nine months ended September 30, 2016, compared to the same period in 2015:
| • | Revenue grew 8.4% to $98.7 million from $91.1 million. Electrical construction revenue grew 5.4%, attributable to significant growth in non-MSA electrical construction projects. |
| • | Income from continuing operations before taxes increased to $16.6 million from $4.3 million. This increase was fueled by more than a two-fold increase in electrical construction operations income before income taxes(1) resulting mainly from higher revenues and improved operating efficiencies. Margins on electrical construction operations operating income increased to 20.9% from 8.9%.(1) Results for the nine month period in 2015 included a pre-tax operating loss of approximately $4.4 million on certain Texas projects completed in the second quarter of 2015. |
| • | Net income grew to $10.4 million ($0.41 per share) from $2.2 million ($0.09 per share). |
| • | EBITDA(1) improved to $21.6 million from $9.2 million, as a result of the same factors which drove the growth in our pre-tax operating income. |
Three months ended September 30, 2016, compared to the same period in 2015:
| • | Revenue increased 13.3% to $30.7 million from $27.1 million. Electrical construction revenue increased 10.6%, mainly attributable to the increase in non-MSA work. |
| • | Income from continuing operations before taxes increased to $3.6 million from $3.0 million. This increase was fueled by a 9.8% increase in electrical construction operations income before income taxes(1) resulting mainly from revenue growth. Margins on electrical construction operations operating income remained steady at 15.5% compared to 15.8% in the same period last year.(1) The decrease in such margin from 20.9% in the current nine month period to15.5% in the current quarterly period largely resulted from the conclusion of certain particularly high margin projects in the first two quarters of 2016. |
| • | Net income grew to $2.3 million ($0.09 per share) from $1.7 million ($0.07 per share). |
| • | EBITDA(1) improved to $5.3 million from $4.8 million, as a result of the same factors which drove the growth in our pre-tax operating income. |
Backlog
As of September 30, 2016, backlog was $170.3 million compared to $214.5 million as of the same date last year. We expect approximately $75.9 million of this backlog to be completed within 12 months. Backlog is only estimated at a particular point in time and is not determinative of total revenue in any particular period. It does not reflect future revenue from a significant number of short-term projects undertaken and completed between the estimated dates. The decline in backlog resulted primarily from completion of work under existing master service agreements (“MSA”) not yet eligible for renewal. The size and amount of future projects awarded under MSAs cannot be determined with certainty and revenue from such contracts may vary substantially from current estimates.
President and Chief Executive Officer John H. Sottile said, “Our strong results reflect the successful efforts of our team in improving operating efficiencies. We have been able to achieve continued growth while maintaining healthy profit margins. We are committed to the high level of service provided to our existing customers while, at the same time, working to expand our geographic footprint and customer base.”
About Goldfield
Goldfield 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 and mid-Atlantic regions of the United States and in Texas.
For additional information on our 2016 third quarter results, please refer to our report on Form 10-Q being filed with the Securities and Exchange Commission and visit the Company’s website at http://www.goldfieldcorp.com.
