In 2015, we achieved strong
growth in revenue and significantly improved our operating margin over 2014. This
resulted from higher demand for our electrical construction services, as well
as our focus on promoting operating efficiencies and securing well-qualified
labor. Additionally, the completion of unprofitable Texas projects in the
second quarter allowed us to concentrate on seeking projects from both new and
Comparing 2015 to
Revenue increased 22.6% to $120.6 million from
$98.4 million attributable to strong growth in master service agreements and
other electrical construction work.
Income from continuing operations
before taxes increased almost ten-fold
to $8.2 million from $778,000, despite losses recognized in the first two
quarters of 2015 on the now completed Texas projects. This increase was fueled
by over 212% growth in electrical construction operations income before income
taxes (a non-GAAP measure) (1) resulting from sharply higher
revenues and improved margins. Margins on electrical construction operations
operating income increased to 11.0% from 4.9% (a non-GAAP measure). (1)
Net income grew to $4.5 million ($0.18 per share),
from a net loss of $319,000 ($0.01 loss per share).
twelve month electrical construction backlog remained steady. At year-end 2015,
backlog expected to be realized within the next twelve months was $84.7 million
compared to $85.3 million at year-end 2014.
The results we achieved in 2015
represented a major turnaround for our electrical construction operations, with
significant strides in both growing our business and strengthening our
operations. The foundation we built in 2015 should position us well for 2016. We
believe Goldfield has solid market opportunity, a sound business model and
I continue to appreciate the support of so many Goldfield shareholders
over the years and am grateful to our employees who are dedicated to moving
Goldfield forward.2014 was a year of both
significant accomplishments—and disappointments. On the positive side:
Our acquisition of C and C Power Line, Inc.
(C&C) in January 2014 made a positive contribution to the year’s
results—representing approximately 24% of our electrical construction revenues.
Our revenue increased 10.3% to $98.4 million
from $89.2 million in the prior year—attributable to both C&C and growth in
construction under master service agreements (MSAs).
Our estimated construction backlog at year end
almost quadrupled to $275.0 million from $74.5 million in the prior
year—largely through growth in our MSAs. About $85.3 million of our MSA and project-specific backlog at year end is expected
to be recognized in 2015—compared to about $38.2 million at prior year end.
On the negative side, our pretax income from continuing operations
declined 90.0% to $778,000 from $7.8 million in the prior year. This decline
largely resulted from losses aggregating $5.0 million on projects for two Texas
utilities recognized in the fourth quarter—attributable to a combination of
factors, including start-up delays in material procurement and adverse weather
conditions which negatively impacted allocation of labor and equipment
resources. As a result, we incurred a net loss for the year of $(319,000), or
$(0.01) loss per share, compared to net income of $3.8 million, or $0.15 per
share, in the prior year.
The platform for our electrical
construction operations remains stronger than ever, notwithstanding the
problems experienced on certain of our Texas projects. Our challenge going
forward is to reduce—to the extent possible—the risk of adverse operational
surprises of the nature encountered on these projects. We believe that
management and operational changes we have made should permit us to achieve
I appreciate the support of so
many Goldfield shareholders over the years and am grateful to our employees who
are dedicated to moving Goldfield forward.