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May 30, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today released the comments to be made later today by Mr.
John H. Sottile, President and Chief Executive Officer, at The Goldfield Corporation's annual meeting of stockholders. 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.
THE GOLDFIELD CORPORATION
JOHN H. SOTTILE
AT ANNUAL MEETING OF SHAREHOLDERS
May 30, 2013
Welcome to the 106
th Annual Shareholders Meeting of the Goldfield Corporation. I would like to give you a snapshot of the Company's activities during 2012, discuss recent business, and outline our strategy to continue maximizing shareholder value in the future. I will be providing some financial specifics but would encourage you to review the more detailed information which can be found in our SEC filings and our Annual Report available on our website at
www.goldfieldcorp.com. After the comments, I would be pleased to entertain questions you may have.
2012 was a record year for Goldfield. Revenue more than doubled to
$81.6 million from
$32.8 million in 2011. Net income grew to
$12 million (
$0.47 per share) from
$874 thousand (
$0.03 per share) in the prior year. These results reflect not only markedly increased demand for services by utilities upgrading and expanding their transmission infrastructure, but also the strengthening of the capability of our electrical construction subsidiary, Southeast Power.
In 2012 Southeast Power more than doubled its investment in plant and equipment necessary to service efficiently our higher level of business over an expanded geographic footprint. We invested
$16.8 million in new capital equipment to support our expanded operations, enhance productivity and improve safety. I believe that our upgraded equipment and dedicated workforce rival any in the industry. We are lean and nimble in staffing projects. We are now seeing the preliminary impact of our strategy to move beyond our historic
Florida base into
Texas, the Carolinas and Virginia. Further expansion is planned as projects become available for bid from new customers.
In addition to increased operating income and revenue, we are experiencing strongly improved operating margins. Operating margins at Southeast Power increased to 24.7% in 2012 compared to 10.8% in 2011. We expect quarter to quarter fluctuations in operating margins depending on projects under construction at the time. We believe that improved operating margins have resulted from several factors which promote efficiency: - increased responsibility and accountability of our regional officers; improved market conditions; geographical expansion leading to exposure to a greater number of projects and customers; a revitalized fleet of equipment; and smaller and more flexible crews.